Dear Friends,

We thank you for your ongoing support for impoverished children in Kenya through Friends of Ngong Road (FoNR). In 2016 we faced the challenge of theft by the Ngong Road Children’s Foundation (NRCF) Executive Director and we worked hard to keep you apprised as we worked through that issue. Today we are pleased to provide an update on the results of our activities to strengthen governance and financial control in Kenya. 

NRCF has now received a “clean” audit opinion on 2017 financial results from Crowe Horwath, the Kenyan auditor for NRCF. Sammy Anunda, the lead auditor has shared a summary of their findings which amount to, in Sammy’s words, “…normal housekeeping issues that management has expressed commitment to address.” He recognized NRCF’s significant improvements in internal controls through the creation of an improved procurement process and minimization of cash handling. Crowe Horwath noted that there are no specific high-risk findings to bring to NRCF’s attention.

I wanted to update you on the changes we have made to NRCF’s financial infrastructure that led to this clean audit.

Independent Audit by a Qualified Firm
In 2015 FoNR insisted on the replacement of the existing auditor, a small local CPA firm engaged by the former NRCF Executive Director, with Crowe Horwath, an internationally recognized public assurance firm, to audit NRCF in Kenya. In the March 2016 audit exit interview, we learned that money had probably been stolen, and this conclusion was corroborated by the results of a forensic audit in April 2016. Subsequently, three employees including the former executive director were placed on leave prior to the forensic audit and then terminated in May 2016.

Outsourced Accounting to a CPA Firm
After an RFP process, in August 2016 NRCF outsourced accounting to KKCO East Africa, a third-party accounting firm in Kenya. KKCO helped NRCF establish sound internal control processes and is responsible for payroll, accounts payable, reconciliation, financial statement preparation, and tax management for NRCF. This has added oversight and controls to the financial practices in Kenya, as well as independent insight into best practices.

In September 2016, NRCF created a structured procurement program with support and oversight from KKCO. A procurement committee and policies were created, instilling discipline into the process of making significant purchases of goods and services needed to deliver the program. Acquisitions for items such as uniforms, books, office equipment, and services are approved by a finance committee after the procurement team has collected three independent bids and reviewed additional qualitative elements such as conflicts of interest with potential providers.

Stronger Governance in Kenya
Throughout 2016, the NRCF board successfully recruited new volunteer members. They meet monthly and have taken a more active role in the oversight of program activities than the previous board. NRCF board members include:

• Rajpreet Bains is the NRCF board chair and owner of a human resources consulting firm in Kenya. Rajpreet was trained in the UK, bringing extensive human resources leadership experience. She has been instrumental in recruiting new board members.

• Judy Nyaga is the Regional Head of Subsidiary Governance for Standard Chartered Bank in Africa.

• Robert Murimi is the Marketing Director and Chief Trainer at Impact Change, Ltd., a management training company.

• Anupa Sanghrajka was trained at the London School of Economics and worked in the UK for several years at KPMG. Upon returning to Kenya, she assumed leadership of a segment of a family-owned business that operates in the home construction industry. She takes the lead in Kenya for financial review.

• Steve Makimei owns an insurance agency in Kenya and serves on the boards of directors of two schools, bringing a thorough understanding of Kenyan education.

Qualified Personnel Experienced in NGO Leadership
Also in August 2016, the board chairs of FoNR and NRCF interviewed and hired a new program director, Maureen Mulievi. Maureen came to NRCF from Planned Parenthood Global where she managed programs in East Africa. She has brought integrity, effective NGO leadership skills, and a clear commitment to the mission.

Enhanced Oversight by Friends of Ngong Road 
In 2017, we created a finance committee to govern and oversee financial activities in Kenya. Committee members include the partner at KKCO (NRCF’s accounting provider in Kenya), the CFO, treasurer and accountant of FoNR, board members from both FoNR and NRCF, and the program director of NRCF. The committee meets monthly to review actual results versus budget, major procurement requests from the NRCF procurement process, planned funding and necessary adjustments, potential control issues, and proposed remediation plans.

To further strengthen our processes, FoNR hired a part-time, consultant CFO with experience working in the non-profit sector in the U.S. and internationally to ensure the effective implementation of financial controls in Kenya and to monitor progress on audit findings from 2015 and 2016. She got up-to-speed on organization processes in September through November 2017 and spent ten days in Kenya in December 2017. During her seven-month assignment she:

• Reworked the NRCF budgeting and financial reporting process to more closely mirror current management practices in Kenya.

• Strengthened the documentation and review processes for all key expenditures in Kenya, in which invoices are put on a shared drive and U.S. partners have visibility into them.

• Established electronic access to all financial tools in Kenya for U.S. partners to enable transparency and oversight of financial activities.

The clean audit results of NRCF’s 2017 finances are a welcome indicator that our leverage of highly qualified professional accountants and auditors, improved controls in Kenya and oversight from the U.S., engagement of experienced NGO leadership, and more capable governance are working. We believe the environment now ensures all of your contributions will be devoted to the program you have so faithfully supported over the years.

We value your continued support and welcome any questions.

Sincerely,

Amy K. Johnson
Chief Financial Officer and Board Member

In 2014 Jim Hacker was invited by his longtime friend, Bob Ackerman, to go to Friends of Ngong Road’s Annual Gathering to learn about a program Bob cared about. Bob knew the founder of the program, Paula Meyer, and had become a sponsor shortly after the organization was founded. Bob had told Jim several times about his involvement prior to the event, but Jim said it was like “reading readiness” for him that day – he was in the right mindset at the right time that year.

At the Annual Gathering, Jim was impressed with the transparency and strategy of the organization – to make a lifelong difference for students who otherwise wouldn’t have a chance. He saw an opportunity to teach his own granddaughters about the realities of global poverty and for them to potentially form a relationship with someone living a completely different life than theirs in Minnesota.

The day after the Annual Gathering, Jim went online to see the students waiting for sponsorship. He said that after reading their stories it would be hard not to do something. Having four granddaughters, Jim was drawn to sponsor Winnie. Winnie’s mother was doing well on her antiretroviral medications, but the family was struggling to pay their rent, afford food, and send Winnie, her sister, and her two cousins who were also living with them to school. Her mother ran a fruit stand, and the few shillings she made each day could not keep up with the family’s needs.

Winnie started going to Jagiet Primary School. She made new friends both at the school and in the program who gravitated toward her and her sunny personality. At camp that year, she was seen with friends all around her and sporting a constant, joyful smile. Winnie for the first time felt like she belonged and had a group of friends and counselors who understood her.

In the U.S., Jim anxiously awaited Winnie’s handwritten letters that included hand-drawn flower borders and pictures. He loved to share them with his granddaughters on their morning drives to school. Jim admits that the relationship has not gotten as deep and communications not as frequent as he would like, but in Winnie’s last letter, she wrote, “You know, I am now twelve years old.” He thinks that is a hint that she is ready to move into the more grown-up conversation.

Jim’s involvement in transforming Winnie’s life started by just saying “Yes!” to a night out with a friend. Since then, he has had a dramatic impact on one little girl’s life and encouraged his sister and son to also start sponsoring students. Jim is considering leaving a gift to Friends of Ngong Road in his will as he believes in the long-term impact the program can have and wants the mission to live on well beyond his own lifetime.

Jim is a hero to Winnie and all of the students at Friends of Ngong Road. Thank you for your support, Jim.