CEVI Annual Report FY 2011

8/19/2019 CEVI Annual Report FY 2011

1/21


2/21

age 2 I www.cevi.org.ph Community Economic Ventures, Inc. (CEVI) I

Annual Repocontents3 about CEVI

4 messages

8 board of trustees

10 CEVI coverage areas

11 product portfolio

14 endorsing quotes

16 CEVI highlights

28 what our partners say about us

12 social performance

32 stories of change

35 audited nancial statements

40 network and partners

about CEVI

Vision

People Experiencing Fullness of Life.

Mission

As a sustainable Micronance Institution, we follow Jesus Christ in promotintransformation in the lives of poor families and communities through the provisiappropriate micronance services with values formation, training and consulta

Social Mission

Serve the economically active poor by providing appropriate andquality micronance products and services to help their business.

The Island of Bohol is no

famous tourist destinatio

Philippines. It is also the

home of Community Eco

Ventures, Inc. (CEVI), a

micronance organizatiointegrates values format

in its provision of nanciand technical assistance

micro-entrepreneur, eng

in trading, manufacturing

agriculture and service-t

businesses.

CEVI was born in 1998. It started as a micro-enterprise development program to address

the pressing need for livelihood among families

covered by the Area Development Program of

World Vision Development Foundation (WVDF).

As a Christian, non-stock, non-prot, non-governmental organization (NGO), CEVI providesa better alternative to access credit, build up

capital, micro-insurance and savings, consultancy

services and trainings to help transform the lives

of thousand of Filipino families.

It operates with the understhat by equipping clients wknowledge, and instilling tthe right values, in additioncapital, clients would be absustain and, eventually, grbusinesses.

CEVI is a micronance suof World Vision Developm

Foundation (WVDF), a par

a global network of VisionFInternational (VFI) and a m

of the Micronance Counc

Philippines.


3/21

The Board is happy to see more of you achieving much recognition. We are delighted to know that the CEVIis now being recognized globally through the Grameen Foundation for being the very rst MFI to becomePPI Certied in the entire VFI Network and the second one to get certied in Asia. May all of you in CEVI willcontinue to pursue excellence in our P PI integration.

On behalf of the Board, I am with you in your prayers. Let us contemplate once again what the Lord haspromised to us in Jeremiah 29:11, for He declares, “For I know the plans I have for you, plans to prosper youand not to harm you, plans to give you hope and a future”.

To CEVI, there is always a bright future ahead of us. God Bless to all!

ELNORA B. AVARIENTOS

BOT President


Annual Repo

messagesMessage of the President

Over the past 12 months, CEVI has remarkably achievedorganizational effectiveness in terms of providingappropriate nancial services, which go directly toward toits more than 37,000 clients in the country. With this, wetruly recognize the faithfulness and blessings of God, forHe is with us in every step of our way.

As a micronance subsidiary of World VisionDevelopment Foundation, CEVI continues to provide

adequate nancial support in the creation and expansionof small businesses, whilst also providing credit pluseducation through its Christian nurturing program that

adds value to its clients and stakeholders.

The relationship between CEVI and World Vision is veryoutstanding. They work together to deliver an effectiveintervention in the aspect of micro enterprise development

to help improve lives and create transformation on people,

community and their children. For three straight years, the

CEVI has consistently achieved the highest rating in terms

of integration with World Vision, which shows the deepand breadth of its partnership.

implementation of the Social Performance Management including the adoption of the Progress out of PovIndex tool, which allows the CEVI to refocus its target on the poor in designing its products and services.also undertook a Christian Witness Program, tree planting and feeding outreach in selected communitiesstrengthens the quality of living of its clients and stakeholders.

Indeed, we are grateful of these achievements and very excited to see the impact that we continue to mathe lives of the families and children, who are covered by our micronance services.

I would like to acknowledge the World Vision Development Foundation (WVDF) and Vision Fund Internat(VFI) for their contributions to the success of our organization.

To all our partners and stakeholders, thank you for making the works of CEVI to remain relevant and meaWithout your continued support, much of what we do would simply not be possible.

Above all to our sovereign God, who is the true source of the CEVI’s accomplishments.

God Bless us all!

JONAR B. DORADO, CPA CEVI Executive Director

Message of the

Executive Director

The year 2011 has brought us many opportunitieswhen it comes to strengthening our partnership withe World Vision Development Foundation (WVDFother networks, which provided valuable support acontributions to our organization.

However, it is also a year where challenges are bias we take strides to uphold capacity building of oemployees and enhance our existing structure to bto extend appropriate micronance services to ourand become more efcient on the way we deliver products and services.

This year, we saw how the CEVI achieved a 10% gin terms of Loan Portfolio and 9% increase in termnumber of families availing of its micronance servThe loan portfolio of CEVI has increased to over 2Million, which beneted a total of 37, 233 families.

The year has also brought opportunities to us in acorganizational effectiveness and obtaining recognifrom the international community.

At present, the CEVI is recognized globally throug


4/21


Annual Repo

A Letter from VisionFund President and CEO, Scott Brown

As a member of Vision Fund’s globalnetwork, CEVI has played an integral partin providing nancial resources to the poor.Working in 30 branches throughout 13provinces and cities across the Philippines,

CEVI has increased its total loans by 10%from Php 187 million in 2010, to PhP 205million in 2011, now serving over 37,000clients.

We are proud of these achievements

including the steps CEVI has taken to

provide transparency and advice to

clients. In order to ensure it is targeting the

right level of the poor, it has adopted the

industry’s ‘Progress out of Poverty Index’tool. CEVI also offers services on, loans,

capital build-up fund reserves and micro-

insurance.

Working in partnership with World Vision, VisionFundis well on its way to impact 3.5 million children everyyear, by 2015. In doing so we are creating one of theworld’s leading micronance networks that leveragesthe development and relief work of World Vision to

support those living in poverty. Our MFI staff aresupported by specialists at our Operations centrewho provide systems development, training andfundraising. Together we achieve repayment ratesof over 97.3% on our gross portfolio of $360 millionwhich CEVI has contributed to.

We are thankful to all our global partners and

supporters in helping CEVI make a difference to

economically empower local people, who desireto see themselves, their families and communities

ourish in sustainable environments.

Sincerely,

Scott BrownPresident and Chief Executive

VisionFund International

This year we have seen our5,000 staff in 38 countrieshelp more than 650, 000rural poor lift themselves

from hardship and suffering,

despite natural disastersand difcult economicenvironments.

We are proud of our

global network of MFIs(micronance institutes)who have worked withpassion and expertise and

are encouraged by donors,

lenders and consultants

offering their generous

support to our MFIs such as

CEVI.


5/21

Florelyn Plaza Tiu

Elnora B. Avarientos

Eduardo C. Jimenez


Annual Repo

board of trustees

Elnora Avarientos is the National Director of World Vision DevelopmentFoundation in the Philippines. She has 31 years of work experience inWorld 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 theircapacity to lead, manage and deliver quality ministry, through coaching

and mentoring. She is also the former Director for Diversity Management

at World Vision International.

Mr. Eduardo C. Jimenez is presently working as MicronanceConsultant of the Bangko Sentral ng Pilipinas. Looking at policy issuesaffecting the practice of micronance in the banking sector, he is also theHousing Micronance Consultant of the Asian Development Bank. Mr.Jimenez has previously worked as consultant of United Nation (UN) andother UN attached agencies as well as with other bilateral organizations.

Florelyn Plaza Tiu is currently the Director of the HumanitarianEmergency Affairs and Executive Associate for Governance of WorldVision Development Foundation (WVDF). Before taking this lead role,

she was also the Frontline Sponsorship Initiatives Manager of WorldVision International, wherein she was able to provide supports inenhancing the effectiveness and efciency of eld based sponsorshipoperations.

Danilo Lucero, CPA

Eduardo O. Robert

Atty. Gregorio Aust

Rommel Peter D. C

Rommel Peter Caringal is the VisionFund International Regional

Director, in Asia Pacic Region. He provides leadership in the executionof Vision Fund strategies involving 11 countries of Asia Pacic region.He has more than 15 years of extensive experience in microenterprise/ micronance sector in the areas of setting up commercial companies,organizational management, product and services development,human resource, organizational development, Management InformationSystem (MlS), capacity building, board development, various program

innovations for greater sustainability.

Gregorio Austral is a Certied Public Accountant and a Lawyer fromTagbilaran Ciy Bohol. Currently, he serves as a college professor and

a Dean of the University of Bohol College of Law. With extensive legalexperience, he became instrumental in producing competent lawyersand in building strong reputation of the University.

Danilo Lucero is a Certied Public Accountant and a Senior Pastorof JESUS Our Hope International Assemblies Inc. (JOHIA) in MarikinaCity, Philippines. He is also the President of the CROSS-CountryFarms and Parks, Inc., Chairperson of Saver’ Club and a formerDeputy Director of World Vision Development Foundation, Inc.

Eduardo O. Roberto Jr. is an author, entrepreneur, speaker andinternational award-winning seminar producer. He co-writes a weeklycolumn, MarketingRx, for the Philippine Daily Inquirer together with hisfather, marketing guru, Dr. Ned Roberto. He is a co-founder and CEOof Salt & Light Ventures, Inc. a learning event organizer that have wonboth local and international awards for the seminars and conferencesthat it produced and marketed.


6/21

37 %

16 %

47 %

5 2 %

3 6 %

1 %

11 %

age 10 I www.cevi.org.ph Community Economic Ventures, Inc. (CEVI) I P

Annual Repor

coverage areas

LUZON

• Cavite• Roxas• Puerto Princesa• Brooke’s Point

VISAYAS

• Isabel• Baybay• Hilongos• Dulag• Carmen Cebu• Barili• Moalboal• Balasan• Sara• Bais• Talibon• Trinidad• Ubay• Tubigon• Carmen Bohol• Jagna• Tagbilaran

MINDANAO

• Trento

• Nabunturan• Butuan• Davao• Zamboanga• Isulan• Surallah• General Santos• Tandag

CEVI currently operates with30 branches across the Philippines.

product portfolio

CEVI offers four loan products, whare designed to cater the needs o

economically active poor.

CROP Loan, which targets the mientrepreneurs engaged in agricult

occupies the biggest portion of the

total loan portfolio of CEVI at 52%The YAMAN Loan, which targets tentrepreneurs engaged in trading

As a member of the Vision Fund’sNetwork, the CEVI continues to pnancial resources to the poor all

out the country.

CEVI’s Loan Portfolio was seen hin Mindanao and Visayas Regionsand 37%, respectively. Luzon Reghas occupied only 16% of the totaPortfolio of CEVI.

Product Distribution %

Portfolio Distribution % Region

Loan Product

commerce is second in rank at 36%. The ASENSO Loan, which is intended for the small and medium scentrepreneurs is third in rank at 11%, while the BABE Loan, which is offered in Bais, Estancia and Sara Iilo and is intended only for micro-entrepreneurs engaged in hog raising business is only 1% of the total loportfolio of CEVI.


7/21


Annual Repo

On Poverty Level of

New Client

Beside is the overall poverty

level of the 14,155 newclients of CEVI for the

scal year of 2011. Startingfrom the rst column, 37%represents the poverty rate

below the national poverty

line, 21% is below $1.25/day, 55% is below $2.50/daywhile the 16% is the USAID“Extreme” Poverty Line.

Comparing the Philippines’Poverty incidence with theCEVI poverty outreach for

the last 4 quarters, it showsthat the CEVI were able toreach more than the poverty

incidence of the country.

On Poverty Outreach Comparison of the Philippines’ Poverty Incidence with the CEVI Poverty Outre

Poverty distribution

by Sector

Still on average belowthe national poverty line,

clients that are engaged in

Production business have

the highest concentration

of poor clients with 43%,Commerce or Trading

with 39%, Service type ofBusiness with 37%, whileonly 32% in Agriculture

sector.

social performance


8/21


Annual Repo

T h e jour ne y o f CEVI wa s never perf ect. T h ere were ma n y u p s a nd d ow n s al o n g i t s

wa y. B ut d e s pi te t h o se d i f f icul t mome nt s , CEVI d emo n strated a stro n g re si l i e nce a nd

remai ned su stai nab l e a s a n or ga nizatio n.

CEVI e x peri e nced a p h e nome nal growt h i n term s o f em pl o yee s, outreac h a nd port f ol i o i n i t s

more th a n 1 0 year s o f o perati o n s. B ut b e h ind th e se ach i eveme nts are stori e s o f h ard wor k ,

commi tme nt s , d ed i cated servi ce a nd pra yer o f t h e CEVI em pl o yee s.

I wi s h t h at t h e CEVI wi l l co nti nue to b ecome a su stai nab l e or ga ni zatio n so t h at i t would

co ntinue to h el p in b ui l d i n g a nd su stai ni n g more f ami l i e s.

Marilou M. de la Paz

OIC -Finance Manage r

endorsing quotes

I coul d reall y sa y t h at m y seve n year s i n t h i s or ga ni zati o n i s f ul l o f mea ni n g f ul

e x peri e nce s a nd memori es. CEVI wa s t h ere w h e n I need ed gui d a nce i n m y wor k a nd

I am th a n k f ul f or al l t h e o p portu nitie s t h at th e or ga ni zati o n h a s gi ve n me f or th e pa st

year s. I n CEVI you wi l l h ave ma n y o p portu ni ti e s to grow b ecau se th e y wi l l provid e you

wi t h c h al l e n gi n g ta s k w h ere you ca n a p ply your s k i l l s a nd e x peri e nce s more e f f ecti vel y.

I am real l y proud t h at I am part o f t h i s great or ga nizatio n.

Joel C. Ga tus

Netwo r k and Se r ve r Admini st r ato


9/21


Annual Repo

highlightsINSTITUTION AND INDUSTRY

BUILDING

CEVI continues to enhance its capacity to serve

its clients and contribute to the development of the

micronance industry.

• Gold Award Certication from CGAP for SocialPerformance Reporting since 2010.

• Maintained a Green rating in its operationsbased on the global standards of Vision Fund

International.

• Achieved a satisfactory rating based on the PESOstandards for micronance.

• Became the rst MFI in the VFI network andsecond in Asia to receive a PP I certication fromGrameen Foundation for its excellent povertymeasurement.

• Served as a Board of the MCPI, and activelyparticipated in all the conferences and meetings

facilitated by its network.

ORGANIZATIONAL

GOVERNANCE AND STAFFWELL BEING

CEVI ensures that its employees are equipped and

well cared for.

• Provided and improved medical and insurancepremium coverage to all its employees.

• Implemented a Leadership and Managerial

Strengthening Program, which increase thecapacity of its Management staff.• Improved staff competency and knowledge about

micronance by participating to the 2011 COOtraining, Regional Audit Conference and Finance

Exposure in Bangkok, Thailand.

• Enhanced the Leadership and Governance of theBoard by conducting a client visit during Board

Retreat.

NETWORK AND RESOURC

CEVI has continued to generate resources, and

same time consistently contributed and beneteinitiatives and programs of the MFI network

• Maintained a strong partnership with theMicronance Council of the Philippines(MCPI), PlaNet Finance, BPI Globe, P eople

Credit and Finance Corporation, KIVA, LBPPLANIS, VisionFund International, World VDevelopment Foundation, World Vision AD

partners and the support ofces of World VCanada, Germany, Hongkong and Singapo

• Conducted an orientation about the CEVI ause of Progress Out of Poverty Index tool torepresentative.

• Participated and presented a paper about SPerformance Management during the WV A

Pacic Policy and Programme Conference Bangkok, Thailand.

• Presented a paper to the volunteers of Banwith Vision in Singapore, who provided strotechnical support to VisionFund Internation

its afliated MFIs.• Availed of the consultancy assistance from

Wyman to review the CEVI organizational sand develop a strategy template for VisionF

International.

• Availed of the opportunities to enhance Micproduct and institutionalize Social Performawith the assistance from PlaNet Finance.

V ALUES AND INTEGRATION

VI has continued to implement its program, whichmote Christian values and full integration with Worldon Development Foundation.

Achieved a high Integration rating from the World

Vision Development Foundation

Completion of the Christian Witness Initiative Project

and pilot testing of an Islamic Compliant Product.

Conducted a Joint Retreat with the Board of Trusteesand Management of World Vision Development

Foundation (WVDF).

Generated a devotional and prayer guide for CEVI,

which are used for the spiritual nurturing of the CEVIclients and employees.

Conceptualized a social protection product that willincrease the number of the ADPs covered by the

CEVI Micronance Program.Invited the Filipino Pride advocates Dale Dennis

David and Ma. Julie Tanada to speak about the

value and signicance of national pride and love ofcountry to the CEVI Management and Staff during

the CEVI Strategic Realignment Workshop in

Tagbilaran City, Bohol last March 28, 2011.

MPACT AND INCLUSIVENESS

VI continues to provide communities and families

h an appropriate loan product design and delivery.

Institutionalized the client protection program in itsoperations by means of establishing an Integrity and

Protection hotline to seek feedback from clients toensure that they are given with a fair and respectfultreatment.

Adopted the use of Progress Out of Poverty Indextool in client selection and provided credit, capital

build-up and micro-insurance services to the poor

especially in the ADP covered communities.

Provided social protection to more than 37,000

families through its micro-insurance program.

SUSTAINABILITY AND SYSTEM

CEVI continues to strengthen its systems and processes

to achieve organizational effectiveness and sustainability.

• CEVI operates with 30 branches in 13 provinces andcities across the Philippines.

• Increased Total Assets by 19% from Php 252.8Million in 2010 to PhP 301.7 Million in 2011.

• Increased Total Number of Borrowers by 9 % from34,097 to 37,233.

• Achieved unqualied opinion and acceptable ratingfrom its latest external and internal audits, whichshows strong internal control and policy compliance


10/21


Annual Repo

Only on a rare occasion, that the Board of Trustees(BOT) and the Senior Management Team of theWorld Vision Development Foundation (WVDF) and

Community Economic Ventures Inc. (CEVI) will havean opportunity to meet together.

Finally, on July 14-16, 2011, CEVI and WVDF helda joint retreat for its Board and Senior Management

Team in Moalboal Cebu, Philippines.

The entire team was able to tour to Alcantara, Cebuand was able to connect with the local ofcials during

their courtesy call at the Alcantara Town Hall. the dialogue, the Board of Trustees and Mana

of WVDF and CEVI made their way to the WVofce. They also visited a small community anthe chance to speak with the CEVI borrowers

There were many interesting opportunities hapduring the retreat. The Board and Senior Man

of WVDF and CEVI were able to reect on theperformance of each organization and at the stime, they were able to share some strategiesa stronger integration and partnership.

CEVI and WVDF Hold

A Joint Retreat

Board of Trustees and Management of WVDF and CEV

the Joint Annual Retreat in Moalboal,

he Community Economic Ventures Inc. (CEVI)

onducted a Coaching for Performance Workshop for

s selected supervisors and managers last March 28-9, 2011 in Tagbilaran City Bohol.

he Director of People and Culture of World Vision

evelopment Foundation (WVDF), Ms. Joy Alvarezas the resource speaker of the workshop.

he Coaching for Performance is comprised with

series of presentation about the Benets of antegrated HR System, Core Capabilities Frameworknd Coaching for Performance System, Leadershiparadigm and New Practices, and Establishingerformance Agreements.

According to Ms. Alvarez, constant coaching by asupervisor would help increase the performance levelof the employees and would help them achieve theirfull potential.

The workshop was part of the staff developmentprogram of CEVI in order to equip and help its

supervisors and managers to administer their critical

role in the organization.

The workshop also provided a wide array ofopportunities to the CEVI employees in understanding

their leadership strengths, areas for further

development and the different types of people they

will need to lead in the future.

Coaching for Performance

EVI Management and Supervisors during Coaching for Performance workshop.


11/21


Annual Repo

Admin Manager

The Community Economic Ventures

Inc. (CEVI) in partnership with the LocalGovernment Unit (LGU) of Baclayon Bohol,and the CEVI Credit Cooperative has

conducted a tree plan ting drive in Brgy. Tanday

Baclayon Bohol, Philippines last September 2,2010.

The planting trip was a big challenge for usgiven that we had feared a low volunteerturnout due to the limited time of preparations

that we had for the activity.

However, we were pleasantly grateful to thesupport of the LGU Ofcials and surprised tosee over 70 volunteers on the jeep, ready for a

beautiful day of planting.

From Tagbilaran City, we arrived at 8:00 in themorning in Baclayon Bohol and were able toconnect with the local ofcials. It took us onlyone hour to get to and meet the Municipal Agriculturist, Ms. Rhea Mendoza. We also hada great time to listen to the orientation from the Agriculture Ofce before we nally started ouractivity.

After the orientation, we made our way tothe planting site. We planted a total of 200

Mahogany seedlings in a wide terrain ofTanday Bohol with the assistance of theSangguniang Kabataan and Brgy. Ofcials.

Everybody has enjoyed the activity and hopeful

that every single tree that we planted wouldcontribute to clean water and healthy ecologyof the community.

CEVI Turns Green:Tree Planting Drive

CEVI staffer, Hermilyn Mijares shared her experience dtree planting activity in Tanday, Baclayo

his year, the employees of Community Economic

entures, Inc. (CEVI) based at the CEVI Headquarterseld its team building activity at the White Beach

esort in Panglao Island, Bohol.

EVI Operations Manager, Edwin Crescencio andransformation Program Coordinator, Joy May Undaggether with the CEVI Senior Management team

pearheaded the activity last June10, 2011.

he team building was comprised of tough grouphallenges, wherein each member of the group hase chance to become closer to one another and

ecome more comfortable to work with the otherembers of the group while performing various tasks.he team building was also part of the staff-

development program of CEVI in building condenceand trust. It was also held to build capability,relationship and cooperation of its employees.

By teaching the employees with the values ofteamwork, commitments and hard work, CEVIemployees would contribute to a great degree in theattainment of the CEVI’s goals and objectives.

The group has also reected the Words of God from1 Corinthians 12:12 “Just as a body, though one, hasmany parts, but all its many parts form one body, so

it is with Christ.” CEVI employees were remindedthat every part of the body is unique, necessary,

has an important role, takes responsibility, and must

continuously engage.

CEVI Team Building Activity

EVI staff during the Team Building activity.


12/21


Annual Repo

There were only four days left before Christmas, when theCommunity Economic Ventures Inc. (CEVI) has brought gladtidings to the children of Purok 8, Poblacion, Panglao Bohol,Philippines.

A Feeding Activity was conducted on December 21, 2010 atwhere the all-time famous fri ed chicken and spaghetti were fedto some sixty kids and Christmas gifts were also distributed.

The CEVI Staff and the volunteers from Tagbilaran Christian Alliance Church entertained the children.

There was a fun game and singing, which the children havegladly enjoyed. There was also a sharing of story about the birth

of Jesus Christ, which was narrated by a CEVI employ

Mr. Jonar B. Dorado, Executive Director of CEVI, togethe members of the CEVI Senior Management Team hthe feeding program.

The CEVI’s team-up with the Tagbilaran Christian AlliaChurch (TCAC) in arranging a feeding activity for the c

has concluded successfully.

The CEVI Senior Management Team also gratefully

acknowledged all the volunteers for sharing their t ime talents in making the event possible.

CEVI staff held a Christmas feeding activity with the children in Panglao

“Every man shall give as he is able, according to the blessing of the LORD your Godwhich He has given you”. -Deuteronomy 16:17

PPI Certicate of Completion

ast November 2010, the Grameen Foundation hasonducted a review on the CEVI’s process of usinge Progress-Out of Poverty Index (PPI) in targeting

s intended clientele.

ccording to the Grameen Foundation, the reviewas covered an intent, data collection, training,

ocessing and reporting. It was also based on thePI Certication Standards, which were developedth input from a variety of stakeholders, from MFIs tovestors, across the micronance eld that represente minimum quality standards a PPI user should

ave in place to collect and report poverty level

formation accurately in a transparent manner.

The results of the evaluation revealed that the process

used for PPI data collection at CEVI is sound and

should produce accurate results for analysis and

dissemination to stakeholders.

Grameen Foundation has certied the CEVI with aBasic and Advanced level of certication last March

31, 2011.

The steps that the CEVI has undertaken in adopting

the PPI tool help the organization to target on the poorin designing its product and services.

CEVI is the rst MFI within the VFI network andsecond in Asia to receive a B asic and Advance PPI

Certication from the Grameen Foundation.

CEVI Receives Progress-Out of Poverty Index (PPI) Certication


13/21

MFI Senior Operations staff during VFI COO meeting.

he recently concluded VisionFund Chief Operationsfcer (COO) Meeting has brought togetherakeholders from various micronance organizationVFI to discuss about the issues that are recently

onfronting the micronance industry.

he meeting was held in Bangkok, Thailand andarticipated by more than 20 Senior Operations staff ofFI held last June 13-17, 2011.

he meeting comprised with a series of presentationbout Deliquency Management, People Management,

Integration Management and Fraud Management in

the micronance organization.

There was also a sharing of best practices of the MFIregarding the strategies they used in managing their

operations.

CEVI Operations Manager, Mr. Edwin Crescencio; Assistant Operations Manager, Glenn Anciano; AndRecruitment Specialist, Yandy Grace Timogtimoghave attended this 5-day COO meeting and were ableto share the works of CEVI and its best practices

Chief Operations Ofcer Meeting


Annual Repo

The City of Bangkok in Thailand becomes the

meeting place of the VisionFund OrientationTraining of Trainers last March 7-9, 2011 at wherethe MFI from VisionFund including the CEVI of the

Philippines obtain an understanding of the VisionFund

International as a Christian organization.

The CEVI’s delegation has learned through themodules being introduced during the training, the

VisionFund (VFI) and World Vision’s (WV) faith-based approach to development. What does it mean

by having an appropriate Christian Witness. What

Christian witness is not, including our rejectionproselytism and discrimination. And what shouour relationship with the staff, churches, and pother faiths.

Mr. Edwin Crescencio, CEVI Operations ManaMs. Madeline Guibao Sinfuego, Human ResouManager attended this three-day orientation tra

and aimed to implement the alignment of Visio

International (VFI) Christian identity and appro

all CEVI staff.

CEVI participates in the VisionFund OrientationTraining of Trainers in Thailand

Delegates during the World Vision and VisionFund Training of Trainers in Th


14/21


Annual Repo

VisionFund Staffer Reects on CEVI and

the Micronance Community Bank Model

Brad Stave, the manager of marketing at

VisionFund International, the micronancesubsidiary of World Vision, spent a remarkable

week in November 2010 with his colleaguesat the World Vision and VisionFund afliatedmicronance institution (MFI), CommunityEconomic Ventures, Inc (CEVI), in the Philippines.

The delegation from VisionFund was able to tour

CEVI’s headquarters, while connecting with seniorleadership and management. After dialoguing

on the current state of micronance at CEVI, thegroup traveled to witness micronance operationsvia the branch ofce in Cebu.

The group was able to connect with the branchofce management, visit with loan ofcers,witness the transforming power of small loansadministered through the World Vision Micro

partnership, and participate in a cluster group

meeting.

CEVI is making a

tremendous difference

in the lives of thousands

of entrepreneurs across

the Philippines; it really

is an exceptional MFI.

The cluster group of borrowers would meeton a weekly basis during a formal timethat includes bible study, prayer, nancialinstruction, and a time to get current and

pay back their weekly loan installment.

At most MFIs, cluster groups, or

“community banks,” include 20-30members who cross guarantee eachother’s loans. This is done becausemembers don’t have existing capital orcollateral to guarantee outstanding loans.

Brad explains, “It’s a brilliant system.Consumer banking in the industrializedworld is made possible through attachingeither collateral or a credit score to an

individual. However, the majority of theworld’s population does not have either

adequate collateral or a credit rating tosecure a loan.”

Towards the end of the meeting, a younglady, stood up and introduced herself to

the group. She was known throughout hercommunity as an upstanding woman, whohad a strong work ethic and the tenacity tosucceed. To increase prots of her family’s

shing business she was requesting tadded to the cluster group, and receiv

loan from CEVI.

Half way through the young woman’sappeal, a micro borrower in the audiespoke up and declared, “I will cosign her!” This led to an avalanche of grouendorsement, and the woman wasinvited to join the small circle of micro

entrepreneurs and secure a loan thro

CEVI.

Brad reected, “Now that this youngwoman has been accepted into this cgroup, and will soon receive a small lofrom CEVI, it will only be a matter of tbefore she can expand her family’s sbusiness and provide a better future f

herself and her family. Through fosterthe development of small businesses

families are now able to buy enough ffurther their educational aspirations, a

access healthcare services that allowto thrive. CEVI is making a tremendou

difference in the lives of thousands of

entrepreneurs across the Philippines;really is an exceptional MFI.”


15/21


Annual Repo

what our partners say about us

Community Economic Ventures, Inc. (CEVI)

strives to live its mission of promoting

transformation in the lives of the less fortunate.

Its endeavours are geared towards giving the

best service and appropriate products to its

clients. The uptake and integration of social

performance management in its day-to-dayoperations demonstrates the organization’s

earnest desire to fulll the task it has set out to

do. CEVI gives utmost importance to protecting

the people it has embraced. MCPI supports

CEVI in its efforts for the good of its clients and

the communities it serves.Lalaine Joyas MCPI – Executive Director

The Micro Insurance department of Mercantile was established as part of the

company’s corporate social responsibility in contributing for alleviating poverty.

It was in 2005 when our valuable partnership with CEVI started. Throughout the years

this partnership has evolved into a pinnacle level of relationship, understanding, and

cooperation. Working together everyday towards our goal in promoting transformation

in the lives of poor families and communities.

Our highest level of commendation and appreciation

to the ofcers and staff of CEVI. Best regards to

everyone and God bless.

JOSE MARIA J. DADIVAS Manager, Micro Insurance Department

The Bohol Concerned Citizens Action for Progress (BCCAP) rejoices to all the

accomplishments that the CEVI has achieved this year. We are always with you in you

undertakings in helping the people to experience fullness of life through your provision

of appropriate micronance services to the economically active poor. We commend yo

transparency in your Operations and for being an excellent partner to

us. May you continue to become a channel of transformation and

blessing to a number of families that you have served.

Juliet Ampong Quijada

BCCAP - Program Team Leader

Kiva chose CEVI because of a broad range of effective loan, credit, insurance, and savings

products offered. These nancial products are well tailored to the economically active poor,

and help them to grow small income-generating businesses. Kiva wants to reward CEVI’s

product offerings because they increase the likelihood that CEVI will reach entrepreneurial

poor people.

Michael LooftKiva - Regional Director, Europe & Asia


16/21


Annual Repo

The People’s Credit and Finance Corporation (PCFC) takes great pride to have forged a

micronance business partnership with the Community Economic Ventures, Inc. (CEVI).

We share a common aspiration in harnessing the full potential of the microentrepreneur

sector by providing greater socioeconomic opportunities through micronance. May your

successes inspire and strengthen the resolve of all players in the micronance industry to

rededicate their efforts towards building a better and brighter nation.

Edgar V. GenerosoPCFC - President and CEO

BPI Globe would like to thank and salute Community Economic Ventures, Inc. (CEVI) for

its commitment in providing micronance loans to the unserved and marginalized sectors

in the province of Bohol. Through the years, CEVI has proven that it is one of the most

successful MFIs in the Visayas, expanding its outreach through innovative products and

services. We are condent that CEVI will be able to maintain the trust and condence of

its members as it continues to empower them by improving their economic conditions.

CEVI is our valued partner and we afrm our full support as it endeavors to ensure

nancial stability and uplift the lives of its beloved member and the community.

Jose Raul E. JerezaBPI Globe - Vice President

W h i l e wor k i n g in CEVI , I h ave a n o p portu ni t y to l ear n a nd e x peri e nce ma n y

great t h i n g s. CEVI h el ped me to ad va nce m y pro f e ssi o nal l i f e a nd provi d ed me wi t h ma n y

o p portu ni tie s to h ar ne s s m y s k i ll s a nd co n fi d e nce i n perf ormi n g m y wor k . I n CEVI ,

ever yo ne treat s o ne a not h er a s a f ami l y memb er. I t i s a great or ga ni zati o n t h at

val ue s peo pl e.

I n t h e f uture , I h o pe t h at t h e CEVI wi l l co nti nue to grow a nd provi d e ma ni f ol d

b l e s si n g s not o nl y to al l it s em plo yee s b ut to ever y f ami l y w h o too k part o f i t s

mi cro f ina nce pro gram.

Yand y Grace M. Timog timog

Rec r uitment Specialist

endorsing quotes


17/21


Annual Repo

stories of change

A Fish of OpportunitySelling sh really is not an easy job, says Susan Oribiana 39 yearsold, married woman from Barangay Barong-Barong, Sitio Tagusao,Brooke’s Point, Palawan. She is married to Marcelo Javier andthey were blessed with two children, Arlyne Jane 15, years oldand Stephanie, 14 years old, who are currently in third year andsecond year in high school, respectively. Both of her children make

consistently honors in their school, which makes her so proud as amother.

She started her shing business in 1990. She used to sell her sh onfoot during the time that she was just starting her business. But now,she already owns three motorcycles, which she uses in selling her

sh.

Susan’s suppliers are the shermen in their village. During normaldays, Susan buys 5-10 buckets of sh from the shermen, whichwill cost her around 1,700 Php per bucket. Each bucket weighs 25kilograms, which she said would allow her to earn an income of 3,400Php.

Aside from selling fresh sh, she also sells d ried sh in her community.She sold the dried sh for 200 Php per kilo, however if her customerswill buy in great volume, she provides discount and sold her dried shfor only 180 Php per kilo.

usan is highly skilled and very cautious when itmes to producing a dried sh in their village.

ccording to her, the period of sh drying undere heat of the sun should be done for four

ours only; otherwise it will become a salted

h, which is only sold for 100 Php per gallon.

usan shared to CEVI that dried sh businessnot easy especially during rainy season

ecause during this period there is always rainnd the surrounding is wet. So, while facings problem, her advise to her fellow dried shndor is to just sell fresh sh in the market orthe nearby villages. Susan also observed that

ring summer vacation, there are also fewer

people, who will buy a dried sh. And in order to remain stable in themarket, dried sh vendor should gure out when is the best time toproduce and not to produce dried sh.

Susan is happy that she was helped by Community Economic

Ventures, Inc. to have enough capital to grow her small business.Every time she takes a loan from CEVI, she makes necessary

improvements in her business.

Today, Susan is on her 8th cycle in CEVI with a loan of 25,000 Php.The income that she was able to generate from her business wasused in buying appliances for the family, and construction of their

new house. In the future, she also dreams that her children would beable to nish their studies and become a teacher and businessmansomeday.

Iluminda Porazo is a 64 year-old entrepreneur from BrPoint, Palawan. She is married to Antonio and is blesthree children, Hazel, Lemuel, and Jocelyn. The couplalso adopted a child, Jesabel, whom they considered fourth child.

In 1995, Iluminda started her multiple businesses. Sherice farming, retail and shing business. When she bea member of Community Economic Ventures Inc. (CEwas not only able to buy more merchandise for her retand improve her rice farming business, but she was al

A Farmer’s Journey

to start growing pigs, which give her additionalsource of income. Currently, Iluminda is in her 12thcycle in CEVI and has a loan of 25,000 Php.

Iluminda gets 60 sacks of rice from her rice farmevery harvest period. Half of the harvest is sold tothe market for 700 Php per sack while the other halfgoes towards the family consumption.

She also enjoys maintaining her small pig farm,wherein she has two sows and 1 boar. In every

3 months, her sow will produce a minimum of 7offsprings and she sold this offspring for 2,000 Php

each.

Iluminda’s husband and children are very supportiveto her when it comes to managing the family’sbusiness. Her husband helps her take care of therice and pig farm while her children help her intending the retail store and shing business. Every

member of her family works together and has made thbecomes easy to manage.

Iluminda has seven workers; ve of them work in her business while the other two work in her rice farm. Shegrateful that somehow she is able to provide employmher local community.

Like other businessmen, Iluminda also experienced uand downs in her business. She always worries every a typhoon will visit to their village because she knows

it will damage her rice crop and make her shing businoperations to be paralyzed.

To date, Iluminda is grateful because she was helped Community Economic Ventures, Inc. (CEVI) in purcha

a hand tractor, motorcycle and rice thresher for her farThrough her loan in CEVI, she was also able to buy enher shing boat and improve more her retail store.


18/21


Annual Repo

A Different PerspectiveCecilia Aranzado is a simple woman by nature.She nished a degree in Bachelor of Science inAccountancy but did not pursue the corporate lifebecause she wanted to start a business, manageher own time and at the same time become closerto her family most of the time.

Cecilia is a resident of Sto. Niño, South Cotabato,Philippines. She is 54 years old and married toArnel Aranzado. They have 2 children namelyArcie and Arcieli. Arcie, the oldest, nisheda degree in Bachelor of Science in MarineTransportation, which Cecilia claims would notbe possible without her loan from CEVI. Heryoungest child Arcie is still in rst year highschool and hopes to take up Commerce course in

college.

When Cecilia graduated from college, she got a

call from her town’s Municipal Ofce, which offersto her a position as an Accountant. She accepted

the position but did not stay long. Cecilia met herhusband Arnel and decided to settle down. Arnelurged Cecilia to quit her job and start a business.

It did not take long f or Cecilia to decide sinceshe also wanted to start a family. In 1996, Ceciliaventured into a General Merchandise and DryGoods business. She started a small store andrented a stall at the market, where she could sellhome and kitchen supplies.

Because Cecilia is a graduate of Accountancy,

she knows how to manage her nances andbusiness expenses. Cecilia also trained herselfto become a people person so that she would beable to handle her customers well.

When Cecilia’s business has started to ourish,she also started to rent a bigger space inthe market. Cecilia expanded the variety of

merchandise that she sells. She includeskitchenwares, bed sheets, stoves, and souvenirshirts.

To support the growth of her business, Ceciliaalso availed of the micronance services of CEVI.According to Cecilia, she had to strategize on howto maintain her business and sustain her son’seducation and save up for college.

Cecilia gave up her membership with the other nancing organizations.She said that joining a lot of nancing organizations would be a bigproblem in the future. Cecilia retained her membership in CEVI andenjoyed the company of other entrepreneurs who are also members ofthe CEVI cluster association. In the cluster association, Cecilia had an

opportunity to gain knowledge about business and reect the Words ofGod during Biblical reections.

Cecilia’s cluster association was not free of challenges. It came to a pointthat there were no members left other than her and one other member.In spite of this, Cecilia stayed in the CEVI program and helped recovered

their cluster.

Cecilia already took 10 loans from CEVI in the past. Then she applied foran ASENSO loan because she needed a bigger capital for her business.Later on, Cecilia opened a branch in Agusan Del Sur and hired herbrother-in-law to run the business for her since it is quite far from their

home.

To date, Cecilia owns and manages 3 stores at her town’s market. Shehas 4 regular employees and 2 extra staff that she hires during peak

season. Cecilia also allows her employees to have a sideline and earn anextra income. She said it would be a big help to them to support their ownfamilies.

Aside from managing a store, Cecilia and her husband also manage afarm. They grow rice crops and raise livestock.

In Cecilia’s words, “Through CEVI, I learned to manage my business welland to save daily. I also learned how to share the Gospel of God. WithoutCEVI, I would not be able to earn 10,000 Php a day, expand my businessand sustain my children’s education.”

Report of Independent Auditors

We have audited the accompanying nancial statements ofCommunity Economic Ventures, Inc. (a nonstock, nonprotorganization), which comprise the statements of assets,liabilities and fund balance as at September 30, 2011 and2010, and the statements of income and expenses, statementsof changes in fund balance and statements of cash owsfor the years then ended, and notes, comprising a summaryof signicant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair

presentation of these nancial statements in accordancewith Philippine Financial Reporting Standards for Small andMedium-sized Entities (PFRS for SMEs), and for such i nternalcontrol as management determines is necessary to enable thepreparation of nancial statements that are free f rom materialmisstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these nancialstatements based on our audits. We conducted our audits

in accordance with Philippine Standards on Auditing. Thosestandards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance

about whether the nancial statements are free from materialmisstatement.

An audit involves performing procedures to obtain auditevidence about the amounts and disclosures in the nancialstatements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of materialmisstatement of the nancial statements, whether due tofraud or error. In making those risk assessments, the auditors

consider internal control relevant to the entity’s preparation andfair presentation of the nancial statements in order to designaudit procedures that are appropriate in the circumstances,

but not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. An audit alsoincludes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates made bymanagement, as well as evaluating the overall presentation ofthe nancial statements.

We believe that the audit evidence we have obtainedsufcient and appropriate to provide a basis for our aopinion.

Opinion

ln our opinion, the nancial statements present fairly,all material respects, the nancial position of CommuEconomic Ventures, Inc. as at September 30,2011 anand its nancial performance and its cash ows for ththen ended in accordance with PFRS for SMEs.

Other Matter

The Bureau of Internal Revenue (BIR) issued on Nov25,2010 Revenue Regulations (RR) 15-2010 requiringcompanies to provide in the notes to nancial stateminformation on taxes, duties and license fees paid or aduring the taxable year. However, the Organization opto present such information in a separate schedule toattached to the nancial statements for ling with the The supplementary information is not a required part

basic nancial statements under PFRS for SMEs andrequired disclosure by Securities and Exchange Com

Our opinion on the basic nancial statements is not aby presenting such supplementary information in a seschedule.

MANABAT SANAGUSTIN & CO., CPAs

VIRGILIO L. MANGUILIMOTANPartner

CPA License No. 0035026SEC Accreditation No. 0047-AR-2 Issued March 26, 2009; Valid until March 25, 2012

Tax Identication No. 112-071-561BIR Accreditation No. 08-001987-11-2010 Issued June 30, 2010; Valid until June 29, 2013PTR No. 3174017MA Issued January 2, 2012 at Makati City

January 6, 2012Makati City, Metro Manila


19/21


Annual Repo


20/21


Annual Repo


21/21

back cover

Network and Partners

World Vision Development FoundationWorld Vision ADP Partners

VisionFund InternationalMicronance Council of the Philippines

Peoples Credit and Finance CorporationThe Mercantile Insurance Co., Inc.

Grameen FoundationMedia, Inc.BPI Globe

Community Economic Ventures, Inc. (CEVI)Sarabia-Co-Torralba Building 2, Espuelas Street, Tagbilaran City, 6300, Philippines

Telephone: (038) 412-2356 I 501-0170 I235-5463 Fax: (038) 412-2356http://www.cevi.org.ph

Annual Report 2011

To God be the glory.

CEVI Annual Report FY 2011

Documents