I. Activity report in Myanmar (January-December 2021) (draft)
Overview
This year, the second year of Sustainabridge's (SB) activities, the organization was
not able to operate as planned due to the Coronavirus (COVID-19) pandemic and to
the turmoil caused by the military's seizure of power on February 1, when the second
administration led by Aung San Suu Kyi was about to begin. As a result, the economy
stagnated, unemployment abounded, the financial sector was dysfunctional, andmuch of what Myanmar had accomplished fell apart, resulting in a major setback forthe country's overall development. There is still no route to a recovery.
This year, a new vocational training project was to be launched at the Lay Kay Kaw
Vocational Training Center, which symbolized the peace. However, the area wasengulfed in conflict that resulted in a suspension of the project, the closure of the officeand dismissal of its staff. Although there was controversy over signing a memorandumof understanding (MOU) with the quasi-military-affiliated Ministry of Border Affairs, theMOU was signed in July in order to continue providing the youth with opportunities togain skills to improve their income. Since the school was to remain closed for a periodof time because of the COVID-19 pandemic as well as the deteriorating security
situation, SB attempted to conduct part of the training online, but could not obtain
permission from the counterparts. Eventually, in-person training resumed on
November 22, but the staff members on the counterpart side, who participated in thecivil disobedience movement were dismissed, and the number of those who workedon the premises (potential future instructors of the school) were drastically reduced,
which impeded the implementation of the project.

1. Management for the Hpa-an Technical Training School(1) Preparation for resumption of training
Since the school closed in April 2020, we explored the possibility of resuming thecourse, by preparing to put some courses online. We then conducted demo online
classes to show how to prepare PowerPoint presentations, use Zoom, etc., with theaim of bringing some of the training online, but we could not obtain the approval fromour counterparts.
It took a long time to resume the program on November 22, 2021, due to thedeteriorating security situation caused by the coup d'état in February 2021. The 90
trainees who had been on stand-by were contacted, and eventually 33 returned tocontinue the training.
We reviewed and translated into Japanese the curriculum for each course. We alsointerviewed companies and workshop owners to find out what kind of employees they
were looking for, and shared this information with the instructors in order to increase
the employment rate. In the future, instructors will not only teach technical knowledge
16and skills, but also life skills required for establishing relationships and continuing towork in society.
(2) Improvement of school facility environment
Prior to the resumption of training, we made necessary repairs to the premises. Inparticular, the water pump was repositioned and adjusted to provide sufficient water
flow. In the meantime, the site was designated as the COVID-19 Response Hospital,
resulting in the temporary relocation of office functions by moving equipment andsupplies to the downtown area.
(3) General knowledge, life skills courses, special lectures on Saturdays
To help trainees acquire the general knowledge and life skills needed to live and work,
external/internal resource persons are planned to be invited about twice a month toprovide learning opportunities. A course was held to date, and the staff members of
the SB also participated in this course to deepen their knowledge.
DateOrganization
Contents
Life skills
December 18 (Sat) Save the Children(4) Expansion of employment opportunities, public relations and communication
We visited relevant companies and contacted them online to gather information andexchange views in an effort to help trainees find employment. Details are as follows:
DateCompany/Organization
Contents
Employment for the trainees
1 January 20
BHN Associationof the Department ofElectrical Engineering
Water Issues in Karen State

2 January 20
3 February 26

PWJ

4 February 26

Wountain Pro Paint

5 February 26

Ever Glory Co., Ltd

6 March 17

UNHCR

Qualy, Inc

Employment of Myanmar
nationals
Employment for the traineesof the Department ofAutomobile Maintenance andWelding
Employment for the traineesof the Department ofMaintenance Department
Introduction of SB activities
and cooperation in public
relations and communication(5) Drafting of technical and operational manuals
The manual has been planned to be drafted over two years, in 2021 and 2022, in
anticipation of the handover of this training school to its counterpart. The technical andadministrative sections were divided into two sections, and about 60% of the document
was drafted through a series of meetings.
(6) Microfinance support2

We were working with a Japanese microfinance company (Medium-scale loans) toprovide microfinance services to two graduates who had started a business on theirown. Based on the results of previous monitorings, we contacted potential beneficiaries.
However, the business opportunities had decreased due to the COVID-19 pandemic
that none of the identified youth were willing to take out a mid-size loan. Since thesituation has changed drastically from the initial plan, it was decided to temporarilysuspend this activity.
(7) Support for improving women's income
We started a training for women in support of a local NGO. After interviewing two local
NGOs, we promoted a partnership agreement with Women Organization Network(Kayin), which is more relevant to the activities conducted by the SB. A basic sewing
course will be offered to five women for three months. After the training, they are
expected to take their sewing machines home and earn an income while making useof the skills they learned during the training.
2. Project of the Lay Kay Kaw Vocational Training Center(1) Preparations for the start of training
In an attempt to start the training in February, we purchased equipment and recruited
trainees behind the scenes. The reason these preparatory activities could not be madeofficial was that the government and the former armed forces (KNU) continued to playdelicate games and the project agreement was not signed. Ultimately, the coup d'étatof February 1 forced the start of training to be postponed.
(2) Freezing of the project
The decision was made to freeze the project because the project site, which had beena symbol of peace, had become a battleground. We proceeded to office closure andstaff dismissals. The office was closed at the end of September. The materials andequipment installed at the center were handed over to the former armed forces (KNU)
along with its list. However, movable electronic equipment will be transferred to Hpaan office and kept there until the resumption of the activity. Three instructors willing towork there will be transferred to Hpa-an office to gain experience until the resumptionof this project.
3.Yangon office(1) Banking services and receiving external audits
It was fortunate that the first remittance for the project for FY(Fiscal Year) 2021 wasdelivered at the end of January. After the coup, banking operations were in chaos.
There were rumors of currency closures, restrictions on cash withdrawals, suspensionof counter services, restrictions on ATM withdrawals, and other issues that required
constant information gathering and a great deal of time and effort.
The project for FY2020 was extended for six months and ended at the end of June
2021, therefore, we responded to the on-site external audit investigation in July. We
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received a few observations in the audit report concerning incomplete documents,
which we shared with the stakeholders to avoid similar observations.
(2) Conclusion of memorandum of understanding for project implementation
The memorandum of understanding (MOU) for the management of the Hpa-an
technical training school was scheduled to be signed in February, but was postponeddue to the coup on February 1. Under the complex circumstances, we had somehesitation about whether to conclude the MOU. Nevertheless, we signed the MOU on
July 30 since it was essential for the SB to be present in Myanmar and to promote its
activities there.
(3) Extension of project term and request for second remittance
Since the project for 2021 could not be completed as planned, a request to extend theproject term was made to the Nippon Foundation, and was approved. It was extendeduntil the end of December 2022. The 2nd remittance was also requested in December.
Currently, overseas remittances to Myanmar and dollar deposits appear to be working
without any problems. However, since cash withdrawals in dollars are still not possible,
withdrawals must be made in local currency.

II. Activity report in Japan (January-December 2021) (Draft)
1. Organizational management and fundraising・ The FY2020 General Meeting of Members and Board of Directors was held on
Saturday, February 27, and the new directors and auditors were appointed.
・ The General Meeting of Members and Board of Directors for the first half of
FY2021 was held on Saturday, July 31, and projects were approved and related
discussion was held.
・ The change of the entity type was made to increase social credibility. The change
from an "ordinary type" to a "non-profit type" was made, and the Articles ofIncorporation were also changed accordingly, which were accepted on March 11.
・ The Board of Directors was officially established and the change to the Articles ofIncorporation was eventually accepted on May 7.
・ The donation of 200,000 yen was received for the first time from a company. We
plan to use it as a source of low-interest loans for graduates and SB staff.

2. Administration / Finances / Human resources
・ Every month, a cashbook had been sent to the contracted accountant/ the Certified
Public Tax Accountant and subsequently some clarifications were provided, thentax payments were also made.
・ Japanese project manager of Hpa-an office, worked remotely from Japan fromApril 2020. From July 2021, his contract had been revised and his duties werelimited to those of a liaison officer, and his contract terminated in December.

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・ President Ms. Mori contracted COVID-19 in Myanmar in July, and temporarilyreturned to Japan in August to convalesce and have vaccinations. Due to thedeteriorating security situation, she did not return to Myanmar, but worked
remotely from Japan.
・ In November, SB joined the social insurance system in Japan and signed anadvisory contract with a labor management firm.
3. Communication and public relations
・ The 2019 and 2020 annual reports (Japanese and English) were posted on thewebsite.
・ We did not update any SNS (Social Networking Service) or blogs to avoidunnecessary misunderstandings due to the coup d’état.
・ We made efforts to maintain constant communication through monthly e-mails tothe experts who have provided technical guidance to us and other concerned
parties, so that they can be updated on the situation in Myanmar and the training
school.
・ We also sought opportunities to meet with business people in Japan to promote
the organization's activities and to explore sustainable mechanisms. Specifically,
we narrowed down our approach to the introduction of e-commerce, contribution
to the shortage of human resources in Japan, and seeking donations by visualizing
the benefits of the project.

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■ Financial Statement< Balance Sheet> as of 31 December 2021
( Unit:JPY)
Account title

Current year

Previous year

increase/decrease

ⅠAssets
1. Current assets
Cash and Deposit

27,266,806

43,137,831△ 15,871,025

Total current assets

27,266,806

43,137,831△ 15,871,025

2,040,817

2,613,204△ 572,387

Fixed asset

2,040,817

2,613,204△ 572,387

Total asset

29,307,623

45,751,035△ 16,443,412

4,950

4,95002. Fixed assets(1) Property, machinery and equipment
tools, equipment and fixtures, tools

ⅡLiabilities

１．Current liabilites
Account payable
Income taxes payable

201,5940201,594

Advanced grant

52,500561,200△ 508,700

Deposit476,358

416,52259,8360258,991△ 258,991

Total for current liabilites

735,4021,241,663△ 506,261

Total Liabilities

735,4021,241,663△ 506,261

Private grant

33,057,165

42,892,699△ 9,835,534

Total restricted assets

33,057,165

42,892,699△ 9,835,534

２．Unrestricted Net Assets△ 4,484,944

1,616,673△ 6,101,617

Total Net Assets

28,572,221

44,509,372△ 15,937,151

Total Liabilites and Net Assets

29,307,623

45,751,035△ 16,443,412

Suspense receipts

ⅢNet Assets

１．Restricted Net Assets

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<Net property increase / decrease statement>
Duration: 1 January 2021 to 31 Dewcember 2021

( Unit:JPY)
Item
Ⅰ

Current year

Previous year

increase/decrease

Unrestricted Net Assets

1.Operating Activities(1) Revenues and Gains from Operating Activities①Grants

58,018,881

76,201,529△ 18,182,648

Transferred Grants

58,018,881

76,201,529△ 18,182,648②Donation Expense

220,000

0220,000③Other Income

592,557

321,365

271,192

Total Income

58,831,438

76,522,894△ 17,691,456① Project Expense

37,559,503

48,806,631△ 11,247,128

Salary for Internationa Staff

3,001,053

5,325,389△ 2,324,336

Salary for National Staff

19,275,262

19,840,977△ 565,715

Expert Invitation

254,006

862,678△ 608,672

Training Cost

1,828,568

6,117,289△ 4,288,721

Infrastructure Cost

01,981,271△ 1,981,271

Meeting

063,872△ 63,872

1,132,578

3,796,938△ 2,664,360（２）Expediture

Traveling and TransportationCommunication

411,825

2,595,070△ 2,183,245

Expendable Supply

999,067

1,315,517△ 316,450

Office Supply and Equipment

841,792

399,832

441,960

5,880,121

89,3005,790,821

Office Hiring

1,088,134

4,550,459△ 3,462,325

Safety and Security

2,526,037

1,688,228

837,809

Miscellaneous Expenses

321,060

179,811141,249②Administrative Expenses

27,320,452

25,256,949

2,063,503

Board Members Compesation

8,704,105

9,194,261△ 490,156

Staff Salary for National Staff

1,660,543

Vehicle5,638,387

3,977,844

Legal Benefits

201,5940201,594Welfare

41,086

152,151△ 111,065△ 1,664,237

Capacity Developing
Meeting
Traveling and Transportation

01,664,237

1,580

8,641

△ 7,061

1,772,068

2,661,862△ 889,794

Communication

158729232,135△ 73,406

Expendable Supply

34,6201,873,371△ 1,838,751

Office Supply and Equipment

177,869

479,718△ 301,849

02,177△ 2,177

2,148,416

180,000

1,968,416△ 10,120

MaintenanceBusiness Consignment
Book and Subscription

010,120694,3140694,314

Office Hiring

2,648,963

2,259,711

389,252

Insurances

51,640051,640

Bank Services

39,6093,080

36,529Safety and Security

2939301,045,421△ 751,491

Printing and Publishing

153,550

206,001△ 52,451

Taxes and Dues

30,600030,600

Depreciation572,387

184,082

388,305
2,213,773

VehiclesExchenge Loss

2,808,143

594,370

1,148,862

527,767

621,095

64,879,955

74,063,580△ 9,183,625

Profit or loss from valuation before adjustment in total charges of current operation△ 6,037,517

2,459,314△ 8,496,831

Total changes in unrestricted assets△ 6,037,517

2,459,314△ 8,496,831

64,100561,200△ 497,100△ 6,101,617

1,898,114△ 7,999,731

Miscellaneous Expenses
Total Expediture

Corporate, inhabitant, and enterprises taxes
Total changes in unrestricted net assets
Unrestricted net assets at beginning of year

1,616,673△ 281,441

1,898,114△ 4,484,944

1,616,673△ 6,101,617①Grants

48,183,347

119,094,228△ 70,910,881②Transfer to Unrestricted Net Assets

58,018,881

76,201,529△ 18,182,648△ 52,728,233

Unrestricted net assets at end of year
ⅡRestricted Net Assets

Total Changes of Restricted Net Assets for The YearⅢ

△ 9,835,534

42,892,699

Restricted Net Assets at Beginning of Year42,892,699

042,892,699

Restricted Net Assets at End of Year

33,057,165

42,892,699△ 9,835,534

Net Asset at End of Year

28,572,221

44,509,372△ 15,937,151

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