Ayala Foundation 2009 Annual Report Shifting Paradigms
A teacher sits at her desk planning her next lesson. Her face brightens, as she thinks of a fresh approach to education—one that integrates technology, art and culture, and social awareness.
Over the years, Ayala Foundation Inc. (AFI) has contributed significantly to transforming the face of education in the country. AFI has pioneered successful projects in improving the quality of public education, bringing technological tools to poor students, opening world-class facilities for art and culture, building awareness on the need to protect the environment, and encouraging social entrepreneurship. These projects have truly helped shift paradigms in education in the country. As it enters its 49th year, AFI reaffirms its commitment to take the spirit of innovation to people and communities it serves.This forward Contents annual report presents the many ground-breaking programs that AFI has introduced and sustained over the years. Even the unique layout design of the report reflects AFI’s creativity and inventiveness.
2 The Chairman’s Message 4 The President’s Message 6 At a Glance 16 Operational Highlights 38 Q& A with the President 40 The Year Ahead 42 2009 Board of Trustees bbeginegin 44 Ayala Foundation Management and Staff 2009 45 Report of Independent Auditors 80 Acknowledgments 87 Directory 88 Mission and Vision Dear stakeholders,
We at Ayala Foundation are aware of the enormity of our mission: to eradicate the myriad forms that poverty takes. Over the last 48 years, we have worked hard to design and implement programs in areas where we could maximize our reach and create enormous impact. This is particularly true for our initiatives in the fields of education, entrepreneurship, the environment, and arts and culture.
We are also aware that addressing the problem of poverty requires a lot of flexibility. The needs of the people we serve constantly evolve, as do the tools required for us to carry out our projects.
In 2009 Ayala Foundation, its partners, and supporters demonstrated how best to address emerging needs without losing track of perennial problems. The onslaught of typhoons Ondoy and Pepeng brought to our attention the need to provide immediate relief to those affected by the typhoons, and at the same time come up with long-term, preventive solutions. The Ayala Young Leaders Congress, for instance, mobilized its network of alumni from all over the country to provide relief goods, as well as technical and logistical support for people living in devastated areas. The typhoons strengthened the spirit of volunteerism within the foundation, as employees, partners, and other stakeholders participated in nationwide relief operations. le Message ad
The foundation also joined hands with different organizations The Chairman’s to develop a program addressing the destructive effects of typhoons and other calamities. A multi-stakeholder initiative, Project Noah’s Ark does not only seek to provide immediate disaster relief, but also to come up with suitable In the face of all the difficulties that befell the country, our commitment to evacuation centers, establish guidelines for community- enriching our artistic and cultural heritage also strengthened. The Ayala based disaster response, provide training on disaster Museum and the Filipinas Heritage Library, in particular, held on to their preparedness, and set up an early warning system for mandate of celebrating the greatness of our country, not only for the typhoons and other calamities. This way, we can prevent benefit of foreigners, but more importantly for our fellow Filipinos. death, destruction, and unneeded suffering, and our fellow Filipinos will not feel helpless in the face of a We at Ayala Foundation take pride in how much we and our typhoon or any other calamity. partners—past, present, and future—have achieved in pursuing our goal of uplifting the quality of life of Filipinos. We are The spirit of volunteerism that informed our disaster- also immensely grateful for the unflagging trust, faith, and relief and disaster-preparedness efforts also helped enthusiasm of our supporters, donors, managers, and make our continuing advocacies flourish. Our staff. Our continuing partnership brings us ever closer to educational, entrepreneurial, environmental, and reaching our goals. community development initiatives continued to reach out to a greater number of Filipinos around the country, with more and more partners from different parts of the world joining us in our various campaigns, either as donors, supporters, or volunteers.
Jaime Zobel de Ayala
3 2 Dear stakeholders, Young Leaders Alliance, for instance, mobilized its nationwide network of 798 In line with the Ayala group’s trailblazing efforts to Meanwhile, the multi-sectoral initiative Text2Teach was The word “tragedy” was alumni to participate in rescue and relief incorporate sustainability in its businesses, AFI strengthened introduced to 97 public elementary schools. As many as 302 used repeatedly to operations, and reached as many as 1,250 its environmental initiatives by expanding the Solid-Waste schools and over a million students are now benefiting from describe a number families in the hardest-hit areas, including Management program into the Ayala Green Resources for Text2Teach’s educational materials, delivered through 3G of harrowing, Rizal, Metro Manila, Bulacan, Pampanga, Environmental Education and Networking (Ayala GREEN). technology. The project also continued getting the support unprecedented and Benguet. Through this program such issues as clean water, clean air, of local government agencies, as they vowed to provide the events that and energy efficiency have also become priority areas in AFI’s counterpart funding for the success of Text2Teach in their occurred in our AFI also tapped its network of global environmental initiatives. As one of its early projects Ayala towns and provinces. country in 2009. partners and supporters for numerous GREEN, in cooperation with 56 office and residential buildings Still reeling from fund-raising activities that were not in the Makati Central Business District, conducted a study Just as the Ayala Young Leaders Congress organized the the damage only meant to finance short-term relief on energy efficiency among the participating buildings. The training of 73 very promising student leaders from all over wrought by the activities, but also to offer long-term, results of the study serve as a guide for future energy-saving the country, the Education and Livelihood Alliance (ELSA) also economic crisis preventive solutions. Ayala Foundation projects. involved itself in the training of individuals who could bring that began in USA actively informed Filipino-Americans positive change to Region XII and the Autonomous Region 2008, the country about the plight of Filipinos affected Even with the establishment of Ayala GREEN, AFI’s Solid- of Muslim Mindanao. ELSA provided training in leadership, was hit by several by the typhoon, and organized special Waste Management (SWM) program continued to generate fund-raising, and community engagement to 160 young natural calamities. We events to raise funds for rescue and significant response from numerous individuals and leaders and 144 officers and members of parent–teacher wept over the death of rehabilitation activities, as well as organizations. One may immediately notice that the amount associations. President Corazon Aquino, other existing AFI projects. AF USA held of recyclables AFI and its partners collect during these fairs we braved the destruction Dining with the Chefs, a benefit dinner has been slowly decreasing in the past few years—in 2007 The role of technology in developing an entrepreneurial brought by typhoons Ondoy and that featured the cuisine of the most about 1,800 tons of recyclables, worth nearly P10 million, was spirit among Filipinos was championed by the Ayala Pepeng, and we stood in horror and anger promising Filipino-American culinary recovered; in 2009 1,300 tons, worth nearly P7 million, Technology Business Incubator (Ayala TBI). In Ayala in the aftermath of the Maguindanao talents, as well as a benefit concert, held was collected. The decline, however, is actually TBI’s facility located at the University of the massacre. in New York, headlined by international a good sign, because it represents a growing Philippines–Ayala Land TechnoHub, a total of 13 star Lea Salonga. AF USA raised over awareness of the importance of proper solid- startup companies were signed up, thus giving
But as much as tragic events defined $314,000 for typhoon victims and a reach waste management, as well as the recognition them the chance to showcase and test their the past year, these same events total of $1.42 million to finance its of the economic and environmental value of innovative products and business models. provided Filipinos throughout the world numerous projects. trash. Because of our pioneering efforts, AFI’s the opportunity to show our unity and SWM program has become a model for many other As we enter our 49th year, we at Ayala Foundation solidarity, as well as our dedication to AFI raised over P16 million for institutions in setting up their own recyclables fairs. In are implementing organizational changes to help rebuilding our country and recovering the benefit of families severely addition, Filipinos are fast learning the value of segregating us become more responsive to the needs of the people what we lost. Committed as we affected by the typhoons. A their trash, instead of sending it indiscriminately to sanitary we serve. We hope to achieve greater synergy among our are to eradicating the many significant percentage of the funds raised landfills. projects and activities. Starting in 2010, we will intensify our forms that poverty takes, by AFI was reserved for collaborative commitment in five major areas: education; entrepreneurship; we at Ayala Foundation projects on disaster preparedness. As a trailblazing institution in the area of education and environment and sustainability; history, art, and culture; and also know that this goal youth development, AFI marked a number of milestones community development. The President’si cannot be achieved As much as Ayala Foundation took to in its effort to make education and educational tools more single-handedly. We heart the importance of volunteerism in easily accessible to poor families. The Center of Excellence in We take pride and derive satisfaction as we look back on are honored to report the face of calamities, it also embarked Public Elementary Education (CENTEX) celebrated 10 years the previous year and look forward to the year ahead. Message to you just how much on and saw into fruition several projects of providing quality public education for underprivileged Doing so proves, again and again, that Ayala Foundation, the spirit of partnership geared toward uplifting the lives of but gifted students. We are pleased that 53 from our first through the generous and unfailing support of its partners and volunteerism Filipinos. As convener of Ayala Social batch of 75 CENTEX scholars, who had enrolled in our Tondo and benefactors, has provided the country with tools and contributed significantly Initiatives, AFI took the lead in the campus in 1999, entered college this year. We are looking resources that can lead it to progress. We at AFI cannot take to the success of our production of Ayala Corporation’s—as forward to what our brilliant CENTEX graduates are bound to full credit for the success of these undertakings, because undertakings. well as the country’s—first conglomerate- achieve in the coming years. you, our stakeholders, have also put in enormous amounts wide sustainability report. Launched in of resources to bring our country ever closer to sustained and In the wake of typhoons Ondoy September, the report, entitled Pioneering AFI, as well as the other organizations and individuals that sustainable progress. Once again thank you very much, and and Pepeng, Ayala Foundation deeply for a Sustainable Future, affirmed the comprise the Gearing up for Internet Literacy and Access for we hope to work with you again in 2010. immersed itself in relief operations, Ayala group’s commitment to the triple- Students (GILAS) consortium, continued its quest to connect in partnership with other institutions bottom-line approach to sustainable all of the country’s public high schools to the Internet. An as well as within the Ayala group. AFI development. AFI was also one of the additional 415 schools are now wired to the World Wide management and employees generously key organizers of the Ayala group’s first Web, bringing the total number of connected schools to shared their time, talent, and resources Sustainability Summit, which aimed to 2,517. GILAS has also started exploring the benefits of using Victoria P. Garchitorena in various activities, including the packing raise awareness on the need to harmonize satellite technology to address the Internet-connectivity and distribution of relief goods, as well as one’s economic, social, and environmental needs of schools in remote areas, particularly those where the holding of soup kitchens. The Ayala commitments. the necessary infrastructure is unavailable.
5 4 Green Resources for Environmental Education and Networking (Ayala GREEN)
The Center for Social • Expanded the Solid- Development (CSD) contributes Waste Management program, which to the improvement of the quality of life of became Ayala GREEN. Aside from solid- waste management, Ayala GREEN advocates Filipinos by developing innovative and sustainable energy efficiency, water-use management, and social technologies that respond to pressing needs. clean air, particularly in Ayala development CSD also focuses on harnessing the potential of corporate projects and the Makati Commercial Business District (MCBD) social responsibility within the Ayala group, and works together At a glance with the public and private sectors to sustain its programs. CSD’s core programs are in such areas as education and youth leadership • Conducted a study on development, environment, and entrepreneurship. the energy efficiency of 52 office buildings in the MCBD Reach and Impact • Organized an Energy Efficiency Forum and Knowledge CSD sustained its programs and projects by strengthening Sharing for 60 building partnerships with its stakeholders. Also, it began exploring representatives Center new communication and resource mobilization strategies to elicit greater response, from existing • Co-organized the Third and potential partners, for its programs. Annual Tigil Buga campaign along for Ayala Avenue to encourage motorists to Ayala shut off their engines for one minute to
Development The GILAS Social Young Leaders reduce carbon dioxide emissions Social Consortium Congress
• Provided • Conducted free motor • Connected an training for 73 of vehicle smoke emissions testing additional 415 the country’s most in six car parks managed by Ayala Land’s public high schools promising student leaders Ayala Property Management Corporation (APMC), to the Internet. By at the 11th Ayala Young in partnership with the Makati City Department of the end of 2009, a total Leaders Congress Environmental Services and Anti-Smoke Belching Unit, of 2,517 public high schools (AYLC) in February AF USA Metro Manila Anti-Smoke Belching Association, have access to the Internet, and the Environment Management Bureau of while 88 more schools the Department of Environment and are Internet-ready • Piloted an AYLC- • Organized Natural Resources and awaiting inspired training fund-raising events in connection program in five schools New York and California for in Mindanao, Visayas, Luzon, the benefit of Philippine • Participated in development initiatives drafting the Science and and Metro Manila that • Raised a total Technology Research and Development reached out to 300 of P47,244,646 road map, a project initiated by young leaders in cash donations the Department of Science and • Raised cash and P6,328,510 worth Technology to address water and in-kind donations of in-kind donations pollution • Conducted amounting to $1.42 million from the public sector, voter’s registration from Filipino-Americans private sector, and and education based in the United States overseas donors campaigns in over 400 • Facilitated the schools and institutions, recovery of 1,300 tons of reaching an estimated assorted recyclables, with an 50,000 individuals • Supported estimated worth of almost P7 million, • Used programs of partners in the from 184 participating buildings in satellite Philippines the Makati Central Business technology in District bringing the Internet • Carried out to public high schools disaster-response • Began the in remote areas operations in the process of transforming • Continued to monitor aftermath of typhoons AF USA into a more Fil- the weekly Recyclables Fairs Ondoy and Pepeng. These Am-driven organization, with in five Ayala malls, two universities, relief operations, spearheaded the name and brand to be and subdivisions. These Recyclables Fairs by AYLC alumni, benefited 1,250 formally launched in generated 100 tons of recyclables, as well families in Rizal, Bulacan, 2010 as 5,000 pieces of assorted junk (such as Pampanga, Baguio, and lead-acid batteries and printer toner Benguet cartridges), worth close to P700,000 7 6 At a glance Other Community Education and Development Projects Livelihoods Skills Alliance (ELSA) • Made preparations for the turnover of the management • Provided training for of the Buklod Bahayan Daycare Ayala Technology Ayala Social 200 young Muslims, Christians, Center to teachers, parents, and Business Incubator and indigenous peoples for the Cultures homeowner’s association Initiatives Across Mindanao Program of the United (AyalaTBI) States Agency for International Development Center (USAID), Education Quality and Access for • Published the first Ayala • Conducted Learning and Livelihood Skills (EQuALLS), • Signed up 13 technology Corporation Sustainability Report, daily feeding for 180 and the United States Embassy for startup companies at the covering the economic, social, and Mangyan children in the University of the Philippines– environmental performance of the Talipanan Elementary School
Sociali Development Ayala Land TechnoHub. Ayala group of companies in Oriental Mindoro Three of these are currently • Raised close to assessing their products and • Helped organize the first P130,000 in donations business models Ayala group Sustainability Summit to support youth-initiated • Established a • Held the first projects in Mindanao program for sustainable Green TechBootCamp, • Worked with the Ayala development in Bohol through which focused on clean Human Resource Council in the preservation of the natural technologies, renewable gathering over 205,000 storybooks environment and cultural energy, and sustainable for distribution to public heritage solutions that address elementary schools with low pressing environmental reading scores problems
• Drew as many as 200 participants in the continuing Innovation Forums in Makati
• Hosted eight Kape+Teknolohiya sessions at the UP–Ayala Land TechnoHub, attracting as Text2Teach many as 400 participants
• Launched Mobile Xtreme!, a nationwide • Brought the program to 97 Strategic Initiatives competition challenging public elementary schools in Northern developers to come up Luzon, benefiting some 18,000 with innovative mobile students. Since its inception in 2003, • Continue to conduct training for youth leaders, parent–teacher applications Text2Teach has reached 302 schools, associations, and school administrators in Mindanao, with over 1 million students continuing to benefit from the program through ELSA
• Facilitated the • Make Text2Teach accessible to a greater number of training of 523 teachers public elementary schools, and develop new educational on the use of Text2Teach teaching tools materials
• Raised cash donations • Connect an additional 360 schools to the Internet through amounting to over P16 million and in-kind donations worth nearly GILAS P700,000 from the Text2Teach alliance and the public sector. • Develop and implement an expanded version of AYLC
• Expand the coverage of AFI environmental initiatives to include energy efficiency, clean air, and responsible water use; these activities will will now be under the environment and sustainability division
• Expand its entrepreneurship-related projects, with special focus on projects that provide innovative solutions to critical social projects; these activities will now be under a new entrepreneurship division
9 8 • Held free • Received a parenting seminars generous donation • Celebrated its that promote “discipline with from Hewlett-Packard, 10th anniversary in a dignity,” reaching as many as which renovated CENTEX Manila’s special program held at 950 parents of students computer room, and provided new The Center of Excellence in Onstage Greenbelt in from both CENTEX- personal computers, laptops, Public Elementary Education (CENTEX) March operated schools a TouchSmart PC, digital aims to provide intelligent, economically cameras, and printers disadvantaged children with an education equal to that of the best private schools in the land. The program is geared toward the empowerment of underprivileged but very intelligent students, and offers a curriculum that seeks to enrich not only their knowledge but also their leadership skills. • Implemented Linis Bakuran, the • Launched • Introduced community-outreach Reach and Impact • Had a total the Feed the Future My Backyard, an component of My Backyard, enrollment of 951 program, a fund-raising project environmental-education in three barangays in CENTEX operates two schools—one in Tondo, Manila, and another elementary school students that aimed to support CENTEX project in collaboration Tondo, Manila in Bauan, Batangas—and has a total combined enrollment (511 in Manila and 440 in Manila’s feeding program for with Hewlett-Packard of 951, as of school year 2009–2010. Since 2005, CENTEX has Batangas) for school students from kindergarten facilitated the provision of high school scholarships to 242 year 2009–2010 to third grade alumni, in partner institutions like St. Bridget School in Batangas, and the Santa Isabel College and University of Santo Tomas High School in Manila.
• Supported 33 alumni, now college freshmen, in securing • Facilitated the scholarships from private participation of 30 third- individuals, schools, or the year high school students—15 government alumni from CENTEX Manila, and 15 from Batangas—in Access, where, • Synergize aside from after-school language activities classes, they joined an outreach with AFI’s other program for the benefit of education-related war veterans initiatives
• Intensify fund-raising activities so it can provide more high school and college scholarships for CENTEX alumni At a glance • Held the annual teacher-training • Continue its Feed the Future campaign to program, attended by teachers • Received a provide proper nutrition for CENTEX students from CENTEX Manila and grant from the United Center of Excellence Batangas, the Food for Hungry States Embassy and the US • Develop and implement skills training programs for in Minds School, and Buklod Department of State to implement the parents Bahayan Daycare English Access Microscholarship Program Public Elementary Center (Access), a two-year program where high school students study Strategic Initiatives Education English in after-school classes and through intensive summer activities
11 10 • Held a lecture on precolonial Philippine history led by Ambeth At a glance Ocampo, chair of the National Historical Institute Strategic Initiatives • Synergize its activities with the Filipinas Heritage Library, in keeping with the establishment of the new division on history, art, and culture
A leading • Develop and present exhibitions and educational programs presence in the that contribute to the understanding of local art and culture while promotion of Philippine • Participated fostering a greater sense of pride in Philippine art, creativity, and art and culture and one of the in Zero In, the annual artistry country’s principal private cultural AYALA themed event of a institutions, Ayala Museum spearheads major MUSEUM consortium of five private • Continue to establish and pursue partnerships with local and artistic and cultural events for local and international museums in the country, international organizations and institutions to strengthen audiences. The museum promotes awareness and fosters by presenting Ring museum programs and diversify its audience understanding of the rich heritage of the Filipino people through of Fire: The First its collection, exhibitions, and public programs. Southeast Asian • Increase the number of visitors to the Ceramics museum through new and exciting public Reach and Impact • Featured Festival programs 20 artists and Ayala Museum continued to establish links and partnerships two groups at with local and international organizations to widen its ArtistSpace audience and present exhibitions and programs that • Received grants are fresh and relevant. Over 70,000 people visited • Held the following from the Bank of the the museum for its exhibitions, workshops, shows: Monumental: Recent Work Philippine Islands and Shell lectures, as well as to participate in its by Arturo Luz; Pioneers of Philippine Art Philippines to publish the educational programs and activities. (rotating exhibition); Rediscovering Romeo exhibition catalogue for Tabuena: The Later Work; Fernando Zobel Fernando Zobel in the in the 1950s: The Formative Years; Romulo 1950s: The Formative Olazo: A Forty-Year Retrospective; Ring • Staged Years of Fire: The First Southeast Asian art workshops Ceramics Festival; the 42nd Shell for Accenture National Students Competition; employees for the Architect Lor Calma: Paintings second time and Sculptures; and • Launched Pintores Mexicanos de a new audio San Luis Potosí guide system for the • Signed a • Hosted Diorama Experience, second five-year a lecture made possible through memorandum of led by John Guy, the financial support of the understanding with curator of South and Catawamteak Fund the National Southeast Asian Art at the Heritage Board of Metropolitan Museum of • Partnered Singapore Art, New York • Partnered with with the Ayala Land Inc. on a number Japan Foundation of projects including two separate to present Rakugo: exhibitions of the latest works Japanese Sit-Down Comedy, • Established of Arturo Luz and Lor Calma at a cultural show the Ceramics the museum lobby gallery and Study Center, which at the Greenbelt Artpark; the • Launched houses a selection from annual Greenbelt Summer I AM Art, a series the Roberto T. Villanueva Art Workshops, held of Saturday arts and Collection, along with at Greenbelt 5; and crafts workshops that reference materials on loan Greenology, a junk-art were free with museum from John Forbes competition held admission in Ayala malls
13 12 As • Developed the website one of the for BEZO Initiatives (www. leading all-Filipiniana • Launched the official bezo.org.ph), which details libraries in the country, the website of Himig Collection the cultural, socioeconomic, Filipinasi i i Filipinas Heritage Library (FHL) (www.himig.com.ph), and environmental activities • Organized two promotes education and literacy in thus making some of the being implemented in Bohol sessions of Art Heritagei Philippine history, art, and culture by country’s most important by stakeholders coming from Connection, a lecture actively building its collection of books, musical treasures Libraryi AFI, the community-based series that aims to help periodicals, and other traditional media, accessible to Filipinos and BEZO Recreational and Aquatic teachers enhance art while actively exploring the possibilities foreigners Activities in Bohol (BRAABO), education in the country, offered by information and communication and the local government of reaching out to 140 technology. FHL is also actively involved Baclayon, Bohol teachers from seven in helping Filipinos appreciate their history, schools literature, and cultural heritage in the form of workshops, lectures, exhibits, and special events. At a glance Reach and Impact
The use of information technology has • Developed a helped FHL reach out to a wider audience workshop series than a traditional library. By making part on art, culture, and • Mounted of its collection—particularly its photo other activities for regular and music collection, as well as some of the Department of photography its publications—available online, FHL Trade and Industry • Partnered with and writing has become accessible to a greater the National Book workshops, which number of people all over the Development Board in attracted over world. Lectures, workshops, and organizing a series of 1,000 participants publications have also helped lectures on Philippine strengthen FHL’s initiatives language and Strategic Initiatives for continuing education. literature during Book Development Month
• Organize a series of cultural events under • Helped stage a Bravo!, a festival celebrating the achievements of performance reading Filipinos in music, film, visual art, dance, theater, of Jose Rizal’s El and fashion Filibusterismo and Francisco Balagtas’s • Entered into a • Published • Help communities build or rehabilitate their Florante at Laura, as partnership with three books libraries through the MyLibrary program well as storytelling Chevron Philippines to promote with Chevron and Ayala Land Inc. sessions for MyLibrary, which reading among seeks to establish children and • Continue to develop or rehabilitate teenagers educational programs community libraries in in art, history, and culture for the country students, teachers, librarians, and other professionals
• Publish additional titles for the series of children’s book on Philippine art and myths
• Prepare for the celebration of AFI’s 50th anniversary in 2011
15 14 Center for
OPERATIONAL Sociali Development
Green Resources for Environmental Education
HIGHLIGHTS and Networking (Ayala GREEN)
AFI’s environmental initiatives expanded from its Solid-Waste Management (SWM) program to the broader Green Resources for Environmental Education and Networking (Ayala GREEN). This environment program takes on urban environmental concerns—such as energy efficiency, water use management, and clean air—in Ayala development projects, particularly the Makati Central Business District (MCBD). The Center AFI, together with other institutions with existing energy efficiency programs, advocated the use of energy-efficient for Social lights and air-cooling systems in the MCBD. It also conducted a study on the energy efficiency performance of 52 Development MCBD office buildings, the initial results of which showed how energy efficiency translates to financial savings and can (CSD) serve as a wise investment. After completing the study, AFI organized an Energy Efficiency Forum and Knowledge Sharing implemented for 60 MCBD building representatives. programs and projects related to For its advocacy on clean air, AFI was one of the organizers of the Third Annual Tigil Buga campaign along Ayala Avenue. Tigil Buga education, the environment, encouraged motorists to shut off their engines for one minute to reduce carbon dioxide emissions. In partnership with the Makati youth development, technology City Department of Environmental Services and Anti-Smoke Belching Unit, Metro Manila Anti-Smoke Belching Association, and the entrepreneurship, and sustainability. Environmental Management Bureau (DENR-EMB) of the Department of Environment and Natural Resources, AFI offered free motor vehicle smoke emissions testing in six car parks managed by Ayala Land’s Ayala Property Management Corporation (APMC).
In keeping with its commitment to promoting the wise use of water, AFI participated in the drafting of the Science and Technology Research and Development Road Map organized by the Department of Science and Technology. The R&D Road Map seeks to address the continuing problem of water pollution in the country. AFI also supported the public information campaign of the DENR-EMB during World Water Day and the Philippine Water Week. Ayala Social Initiatives 1,300 AFI continued to draw supporters for its tons of assorted SWM program in the MCBD and other Ayala As convener of the Ayala Corporate Social Responsibility properties outside Makati. A total of 1,300 recyclables were tons of assorted recyclables, worth close to (CSR) Council, Ayala Foundation Inc. (AFI) took on secretariat duties P7 million, was recovered from 184 MCBD recovered from 184 buildings. The amount of recyclables recovered in implementing activities under the Ayala Social Initiatives (ASI) program. this year were lower than in previous MCBD buildings years because of the decline in the global AFI oversaw the production of Pioneering for a Sustainable Future, the 2008 market for these resources. Aside from establishing a community-based SWM Ayala Sustainability Report, which followed the standards set by the Global program in Barangay Ususan, Taguig City, AFI also monitored weekly recyclables fair Reporting Initiatives (GRI). The report was released in October. in five Ayala malls, two universities, and subdivisions. These recyclables fairs generated 100 tons of recyclables, as well as 5,000 pieces of junk such ASI supported Ayala Corporation in organizing the Ayala group’s first Sustainability Summit, as printer toner cartridges and lead-acid batteries. The recovered which served as platform for the promotion of the group’s sustainability efforts among its junk, which came from over 1,300 participant-sellers, was managers and employees. Carrying the theme, Amplifying the Social and Environmental estimated to be worth P700,000. Impact of Our Businesses in the Pursuit of Our Economic Objectives, the one-day summit featured lectures and symposiums that were Project 175KB designed to help participants explore and develop innovative, exceeded its target by sustainable solutions to business challenges that address social problems. Over 300 Ayala group executives and managers collecting over 205,000 attended the summit. books, which were distributed to 329 schools in 16 regions In celebration of Ayala Corporation’s 175th anniversary, AFI provided support and coordinated activities related to Project 175KB, a groupwide effort that enjoined Ayala employees to gather 175,000 story books, which would be distributed to the libraries of under-resourced public elementary schools. The project exceeded its target by collecting over 205,000 books, which were distributed to 329 schools in 16 regions.
17 16 A total of
200 Muslim, Christian, and indigenous youth attended leadership Education and camps Livelihood Skills Alliance (ELSA) Ayala Foundation USA The second phase of Education and Livelihood Skills Alliance (ELSA), a United States Agency for Despite the lingering effects of the global International Development (USAID)–funded initiative, financial crisis, many Filipino-Americans continued this year. Some of ELSA’s activities included training continued to support advocacies and fund-raising courses for parent–teacher associations (PTAs) in fund-raising and activities of Ayala Foundation USA (AF USA). resource-mobilization. Student leaders also received training in organizing youth camps, which focus on the importance of good citizenship and community Fund-raising events, including the highly successful Dining with engagement. Despite the volatile peace-and-order situation in the project sites, AFI, the Chefs and the benefit concert headlined by Lea Salonga, were warmly through ELSA, reached officers and members of 144 PTAs, as well as 160 young leaders in welcomed by numerous Filipino-American organizations and individuals, South Cotabato, Sultan Kudarat, Cotabato City, Basilan, and Tawi-Tawi. particularly those based in New York and California. Among AFI’s flagship projects, Gearing up Internet Literacy and Access for Students (GILAS) received some of the AFI also conducted youth camps for the Cultures Across Mindanao Program of USAID, most significant support, with donations almost reaching $200,000. Education Quality and Access for Learning and Livelihood Skills (EQuALLS), and the United States Embassy. A total of 200 Muslim, Christian, and indigenous youth attended the two AF USA also used these fund-raising activities for disaster-relief operations, particularly camps, the first of which was held for those living in mainland Mindanao, in the aftermath of typhoons Ondoy and Pepeng. while the other was for those based in Basilan, Sulu, and Tawi-Tawi.
In the next few months, AF USA sees itself transitioning into an In addition, ELSA, with the help of AFI and its partner organizations, AF USA raised a organization that empowers Filipino-Americans into taking active facilitated the distribution of storybooks and other instructional materials to a number of total of $1.42 million leadership roles in the organization. AF USA will launch this in donations—$1.18 million was initiative in 2010. public schools in the ARMM and given as cash donations, while Region XII. $237,900 was in kind
GILAS facilitated the connection of an additional
415 schools to the Text2Teach Internet Gearing Up Internet Literacy and Access for Conceptualized in the United States and pilot-tested Students (GILAS) in the Philippines, the technology used in Text2Teach is now being used to improve classroom instruction in about 300 The drive to provide all public high schools in the country access to computers and to the Internet public elementary schools around the country. continued through the multisectoral Gearing up Internet Literacy and Access for Students (GILAS) consortium. Despite the challenges posed by limited resources and Internet infrastructure, GILAS In Northern Luzon, AFI led the implementation of Text2Teach’s facilitated the connection of an additional 415 schools to the Internet, thus bringing the total expansion phase. With funds from Nokia and other Text2Teach number of Internet-connected schools to 2,517. In addition, GILAS started using satellite technology partners as leverage, AFI successfully solicited additional financial to bring the Internet to remote parts of the country. support from local government units. As a result, Text2Teach was brought to 97 public elementary schools in Ilagan and Santiago Through resource leveraging and partnership building, GILAS matched the donations from local and City, Isabela; Tuguegarao City, Cagayan; Vigan City and foreign companies and overseas Filipinos with the help of funds provided by local government units Candon City, Ilocos Sur; Urdaneta City and Villasis, and legislators all over the country. GILAS raised P47 milion in cash donations and over P6 million Pangasinan; and La Trinidad, Benguet. worth of in-kind donations from the public sector, private sector, and overseas donors. A total of 523 teachers from 97 public elementary schools received training on how to use the teaching tools, the short videos, and the instructional guides
19 18 AFI gathered Ayala Young Leaders Congress 73 of the country’s Bohol Eco-Cultural most promising student (AYLC) program leaders for a three-day summit On the 11th year of the Ayala Young Leaders Congress (AYLC), AFI gathered 73 of In Bohol, AFI pursued projects geared toward the sustainable the country’s most promising student leaders for a three-day summit. development of the towns of Dauis and Baclayon. In Dauis, the residents, the Parish of Our Lady of the Assumption, and AFI worked together in There are now 798 AYLC alumni, many of whom were actively involved in a nationwide campaign to preserving the cultural heritage of the town, particularly in the restoration encourage young voters to participate in the 2010 elections. The campaign, which featured short lectures of the Dauis church complex. AFI also provided the residents of Dauis on voters’ rights and responsibilities, was carried out in over 400 schools and institutions and reached over with technical assistance on enterprise development. 50,000 individuals. In the municipality of Baclayon, AFI worked closely with the local government AYLC alumni also actively participated in disaster-response operations in the wake of typhoons and the residents of the town for the construction of the Baclayon Ondoy and Pepeng, which hit Metro Manila and Central and Northern Luzon. These relief Tourism Center, which now serves as the hub of the eco-cultural operations benefited 1,250 families in Rizal, Bulacan, Pampanga, and Benguet. tourism activities in the town, including the island of Pamilacan. In 2009, an AYLC-inspired training program was pilot-tested in five schools in Mindanao, Visayas, Luzon, and Metro Manila. It was attended by a total of 300 student leaders. This training program was developed in response to the call made OTHER by AYLC partner colleges and universities for a PROJECTS similar leadership-training program that can The be implemented at the school level. Iraya Mangyan Preparations are being made for Development program the formal introduction of the program. AFI’s commitment to the education and health of Iraya Mangyan communities in Puerto Galera, Oriental Mindoro, remained strong, as it continued to support a daycare center, where more than 60 children are enrolled, and facilitated the daily supplemental feeding of 180 Mangyan children in the Talipanan Elementary School. Scholarships were also awarded to 35 high school and 11 vocational-technical students.
AFI also continued its partnership with the Sisters of Charity of Ayala Technology St. Anne to support the Amade Clinic, which sees to the daily Business Incubator medical needs of the Mangyan community.
The Ayala Technology Business Incubator (Ayala TBI) network continued to host Filipino start-up companies in four facilities—two within the University of the Philippines Diliman campus, one at the Asian Institute of Management, and another at the University of the Philippines Visayas. These facilities hosted a total of 29 start-ups, which worked in such areas as software applications, hardware development, and environmental technology. The economic downturn reduced the opportunities for these startups to expand to Japan and the United States, but they responded to this challenge by developing products and services for the local market. Scholarships Buklod were awarded to Ayala TBI also continued to interact with its partners and supporters by holding eight Kape+Teknolohiya and Bahayan Daycare six Innovation Forums, which served as venues to discuss new technologies, markets, patents, and funding Center 35 high school and opportunities. These forums also served as a launch pad for start-ups to present their product and services, a 11 vocational-technical venue for academics to present the results of research, and a platform for diaspora entrepreneurs and venture Buklod Bahayan Daycare Center, an AFI-managed students from the capitalists to share their experience and knowledge. daycare in Barangay Tartaria, Silang, Cavite, continued to serve Iraya Mangyan the community by holding daily classes and conducting supplemental communities The first Green Technology Boot Camp (TechBootCamp) attracted 85 participants or 15 teams of three to feeding for 192 children, aged 4 to 6. With the help of volunteers, AFI The six members. The three-day training program tackled issues related to environmental preservation and organized other development activities for the children and their families, first Green sustainability, as well as opportunities for business. A total of 15 business concepts were pitched to a including regular medical/dental missions. Technology Boot Camp panel of potential investors. (TechBootCamp) attracted AFI also started preparing the teachers, parents, and the homeowners’ Before the end of the year Ayala TBI introduced a new track for entrepreneurship opportunities in social association to assume the management of the daycare center upon its 85 participants or 15 enterprises, with particular focus on pervasive problems and clients who belong to the base turnover in June 2010. As part of the preparations for the turnover, teams of three to six of the economic pyramid. Access to health care, water, and energy, which are AFI helped the association formalize its registration members also Millennium Development Goals, are top priority. papers, and conducted training sessions on project and financial management.
21 20 Funds Raised by GILAS Funds Raised by Ayala Foundation USA 2007 2008 2009 2007 2008 2009
$2,266,370
$1,292,417 $1,177,162 P32,750,500 P6,195,000 P6,328,510 $242,113 P48,799,530 P54,474,401 P47,244,646 $237,900 $86,593 Cash Donations In-Kind Donations
In-kind Donations Cash Donations Internet-connected Public High Schools in the Philippines as of December 31, 2009
Connected Schools Unconnected Schools Total = 6,511 39% (2,517) Recyclables Recovered from the 61% (3,994) Makati Central Business District Number of Internet-connected High Schools in the Philippines 679 642
1,891 tons 448 1,407 tons 1,300 tons 333 415
2007 2008 2009
22000-2005000-2005 22006006 2 2007007 22008008 2 2009009
Connections made Connections made 2005–2009 facilitated by GILAS 2000–2005 P9,888,932 P9,269,410 P6,980,440 facilitated by Youth Tech
Total number of connected schools = 2,517
23 22 Center The percentage of CENTEX of Excellence in Public students who reached first-year CENTEX’s college (77 percent) was much Elementary Education 10th year also saw Partnerships OPERATIONAL higher than the national average its first batch of kindergarten also played a (CENTEX) (43 percent). scholars graduate from high school. key role in helping Of the 71 students who completed CENTEX-managed schools remain CENTEX considers developing and their elementary education at CENTEX competitive. Hewlett-Packard, one of HIGHLIGHTS nurturing partnerships as important Manila in 2005, 55 became eligible the world’s largest IT companies, helped strategies in ensuring the success for college admission. Two of the 55, CENTEX Manila upgrade its computer and the sustainability of its projects. however, opted to defer their college laboratory. The school’s computer One of the challenges is to look for enrollment due to personal financial lab now boasts of new personal ways to ensure the continued college challenges. computers, laptops, education of its alumni. Thirty-three a TouchSmart PC, CENTEX alumni were able to secure Through the Center of Excellence in digital cameras, and college scholarships, provided by the Public Elementary Education (CENTEX), printers. government, private individuals, or Ayala Foundation intensifies its advocacy to eradicate various forms of poverty, the schools they enrolled in. particularly in the area of primary education. After a decade of existence, CENTEX continues to provide high-quality Key Ayala education to intelligent but poor children, officials, at a par with the kind of education partners, and provided by the best private schools in To benefactors attended even the country. celebrate its 10th the event. accompanying the year, CENTEX held first batch of CENTEX a special event at Respected composer scholars as they Onstage Greenbelt Ryan Cayabyab wrote performed in March. a song especially for the song. the occasion,
nnurtureurture
25 24 Antipolo, Rizal, with a total of 75 teachers from the two CENTEX schools, the AFI-managed can do to prevent it. Clean- Feed the Future, Buklod Bahayan Daycare Center, disciplining up drives were conducted in a month-long fund-raising and Food for Hungry Minds. The children with dignity three barangays in Tondo, Manila. of the campaign was launched to ensure three-day training program featured and providing techniques on The partnership with Hewlett- Also, essays, short stories, photos, educational that students from kindergarten modules on “discipline with dignity” conflict resolution that could help Packard continued with the launch and videos related to the project were service providers to the third grade in CENTEX Manila and “brain-based education,” as well parents interact with their children of My Backyard, a project that aimed uploaded to the My Backyard website for the English Access receive proper nourishment. as demonstrations featuring various more constructively. About 900 to instill environmental awareness (mybackyard.centexschool.org), as Microscholarship Program (Access). teaching applications and techniques parents attended the seminar. among Filipinos, children and adults well as other social-networking sites. This allowed 30 third-year high school In October, CENTEX held its annual that can be used in the classroom. alike. The project also involved CENTEX alumni to study English teacher-training program in
clean-up drives to communicate the The United States government, over two years at after-class and CENTEX also reached out to the serious problem of environmental through the Department of State and summer intensive parents of its students by destruction and what Filipinos the US Embassy in the Philippines, sessions. holding a seminar on the selected CENTEX as one importance of
service
27 2626 AYALA MUSEUM
OPERATIONAL
HIGHLIGHTS
Ayala Partnerships and Exhibitions Museum, one of the country’s leading private Many of the museum’s exhibitions were the result of strong and museums, affirmed its commitment creative partnerships with various groups and individuals to spread awareness and appreciation who support the museum’s initiatives in art, culture, and of Philippine heritage by finding new ways history. to educate its audience on its existing collections and exhibitions. It also Ayala Land inaugurated ArtPark, located within the strengthened existing partnerships Greenbelt complex, by collaborating with Ayala Museum on that supported its shows. two exhibitions—Monumental: Recent Works of Arturo Luz and Architect Lor Calma: Paintings and Sculptures. In these exhibitions, large-scale sculptures by Luz, a National Artist for Visual Arts, and Calma, an acclaimed architect, became points of interest not only for museum goers, but also for those strolling around Greenbelt.
In celebration of National Heritage Month in May, the Philippine Embassy in Mexico partnered with the museum in the exhibition, Rediscovering Romeo Tabuena: The Later Work, which honored the work of an important Filipino artist, who is currently based in Mexico. The exhibition catalogue was published with the support of Globe Platinum.
The Diorama Audio Guides In July the museum commemorated the 25th death anniversary of pioneering Filipino abstract painter Fernando Zóbel by exhibiting his early semi-figurative works. The Bank of the Philippine Islands and Shell The museum celebrated the 35th year of its famous Dioramas Philippines provided grants that made possible the publication of the exhibition catalogue. on Philippine History by launching a new audio guide system. Conceptualized by the first museum director, National Artist for 40 units Also in July, Ayala Museum honored Romulo Olazo, who over 40 years has produced consistently Historical Literature Carlos Quirino, the 60 dioramas on Philippine of audio guides are intriguing and fresh works. The Olazo retrospective was a collaborative effort between the history have been enjoyed by visitors for years. currently available for museum, Azool Inc., and Paseo Gallery. rental at the museum With the support of the Catawamteak Fund, the museum recorded lobby In August and September, the museum was one of the partners in the Ayala Malls narrations for each of the dioramas. The English version of the audio Group’s Greenology campaign, which featured a junk-art competition for guides featured the voice of broadcaster Mari Kaimo, and was launched in students. July. Forty units are currently available for rental at the museum lobby.
A Filipino version of the guides will be available in 2010.
29 28 Education Programs
Aside from publishing six exhibition guides to complement its shows for the year, Ayala Museum organized lectures that aimed to further educate the public on its collections, as well as Philippine art, culture, and history.
The museum launched I AM Art, a series of weekend activities for the family. Each session, which came free with museum admission and was held every Saturday and Sunday at 3 p.m., featured museum staff teaching participants various arts and crafts, as well as giving them a tour of the museum’s collections. Several art workshops were also held, two of which were open to the public (Basic Watercolor Painting and Kids’ Art), and four in A new collaboration with Ayala Land for its annual Greenbelt Summer memorandum of Art Workshops, held at Greenbelt 5. understanding, which covers Historian and professor Ambeth Ocampo, chair of the National Historical Institute, years, between AFI and 5 delivered a lecture on precolonial Philippine history in November. His lecture Singapore NHB was signed attracted over 500 attendees. The museum also hosted Mr. John Guy, the curator of South and Southeast Asian Art for the Metropolitan Museum of Art in New York City.
The exhibitions on Arturo Luz and Lor Calma featured separate lectures given by respected art critic Cid Reyes, while the Philippine ambassador to Mexico delivered a special talk in connection with the Romeo Tabuena exhibit.
Ayala Museum Visitorship
September also saw Ayala Museum’s participation in Zero In, the annual themed event of a consortium of five private museums—Ayala Museum, Ateneo Art Gallery, Lopez Memorial Museum, Museo Pambata, and Bahay Tsinoy. Ayala Museum hosted an exhibition called Ring of Fire: The First Southeast Asian Ceramics Festival.
Under an existing memorandum of understanding between Ayala Foundation and the National Heritage Board 2009 (NHB) of Singapore, Ayala Museum co-curated and helped organize the Philippine exhibitions at the Asian Civilisations Museum (Land of the Morning: the Philippines and Its People) and at the Singapore 70,041 Art Museum (Thrice Upon a Time: A Century of Story in the Art of the Philippines). The Singapore exhibitions were held to celebrate the 40th year of diplomatic relations between Singapore and the Philippines. A new memorandum of understanding between AFI and NHB was 2008 signed in October during the opening reception of Land of the Morning: The Philippines and Its People. The memorandum of understanding covers five years. 63,135
The museum was also one of the partners in the 42nd National Students Art Competition held by Shell 2007 Philippines in October. 59,830
31 30 Also featured in the website preservation, dance, to martial are the “Gems of Philippine arts—helped DTI in its pursuit to Music,” a collection of 250 songs help its staff become fully rounded considered most representative individuals. FILIPINAS HERITAGE LIBRARY of the Filipino character and spirit.
OPERATIONAL Short descriptions, excerpts from The library also conducted writing, music scores, and audio snippets storytelling, and photography of melodic lines are available for workshops in Metro Manila and these gems. other locations during the year. A
HIGHLIGHTS total of 24 writing and storytelling At present, the library has workshops were organized As digitized 2,572 songs under the leadership of it affirms its from its Himig the library’s external commitment to the cultural Collection. FHL communities development of the nation, the Filipinas also continued department Heritage Library (FHL) continues to make its to convert more during the year, collection of books, documents, and multimedia materials attracting young materials relevant and accessible to researchers on from Retrato, children and Philippine history, art, and culture. FHL also explores its collection their parents, various ways to bring our country’s historical and cultural of vintage students, and heritage closer to the public, through educational programs, Philippine professionals cultural events, and publications. Many of these projects are photographs. To from different accomplished in partnership with individuals, institutions, and date, 3,186 photos parts of Metro other supporters. from Retrato were Manila. Meanwhile, converted to digital The Alcove, FHL’s FHL remains an important one-stop electronic research format. photography gallery, center on Philippine history, art, and culture. A total of conducted 25 photography 1,909 visitors came to the library during the year— Educational Programs workshops and mounted six 1,370 of whom were individual researchers, while exhibits. the remaining 539 were tour participants. In FHL believes in the important role addition, 192 persons registered as library of education in forming a new Publications members and came to the library generation of Filipinos who have regularly. an understanding of their heritage. As part of its mission to promote Teachers contribute significantly a love of reading in the country, to molding the minds of the youth, particularly among children which is why FHL has come up and adolescents, FHL published with teacher-training programs. three books during the year. Wigan Becomes a Sculptor and One of these is ArtConnection, Tominaman sa Rogong Becomes which is conducted in partnership a Painter are children’s books that with the League of Corporate tell the story of Philippine art, as Foundations and aims to sharpen seen through the myths of Filipino A total of teachers’ skills in teaching art, ethnic groups. A book for young history, culture, and literature. adults, Displaced, was published 1,909 researchers and Started in 2008, ArtConnection has in cooperation with Adarna House. tour participants came to FHL Websites so far reached over 1,000 teachers. in 2009 To ensure that the training received FHL continued to serve as the FHL’s online presence by teachers through ArtConnection editorial office of Ayala Now, the strengthened, as the websites it is reinforced, a draft version of official newsletter of the Ayala manages continue to attract readers from the ArtConnection resource book group of companies. Ayala Now, different parts of the world. Its main website, was released to teachers from published six times a year and www.filipinaslibrary.org.ph, received a total of 51,973 participating schools. produced in cooperation with hits during the year. representatives from different In partnership with the Department Ayala companies, underwent a The official website of the library’s Himig Collection, www.himig.com.ph, of Trade and Industry (DTI), FHL major redesign during the year to was launched in December. This website serves as a gateway to the digital designed 38 workshops for DTI celebrate Ayala Corporation’s 175th versions of the library’s collection of more than 1,000 vintage vinyl recordings of employees. These workshops— anniversary. FHL helped Ayala original Filipino music. Aside from being an online catalogue of the collection, the website running the gamut from history, Corporation produce Ayala@175, a also features a gallery of album cover art, as well as short articles on Philippine music history art, literature, environmental special commemorative magazine and biographical notes on important Filipino composers. for the anniversary celebrations. 33 32 Special Events
FHL was also actively involved in the writing, design, editing, and printing of Pioneering for a Sustainable Future, Ayala Corporation’s first FHL’s involvement in various activities that promote Philippine culture and history was particularly strong during the year. In February, conglomerate-wide sustainability report. FHL organized the book fair and the book launches for Taboan, the first international Philippine writers’ festival spearheaded by the National Commission for Culture and the Arts (NCCA). Taboan (which means tagpuan in Tagalog) featured discussions with established FHL’s Ayala Memory unit, in cooperation with BEZO Initiatives, edited and printed Manila Observatory’s Sustainable and emerging writers, a book exhibit, and performances. Development Guidebook for the Municipality of Baclayon, which examines the geography, both physical and social, of As part of the commemoration of the Battle of Manila in 1945, FHL organized an evening of literary reading. The reading was part of the the town of Baclayon, Bohol, so that the municipal activities for Transitio 1945, a multimedia memorial held at the historic Fort Santiago in March. government can have a guide in developing its disaster- preparedness programs. In partnership with the Ayala Museum and Ayala Land’s Ayala Malls Group, FHL celebrated love and music through Isang Harana: A Night of Filipino Love Songs on February 15 at the Greenbelt 5 Gallery. The music of acclaimed Filipino composers Ernani Cuenco, Levi Celerio, Nicanor Abelardo, Angel Peña, Francisco Santiago, and Willy Cruz came alive as they were performed by classical singers and musicians.
Also in cooperation with BEZO Initiatives, Ayala Memory designed and developed the BEZO Initiatives website, www.bezo.org.ph. The website, launched together with the Sustainable Development Guidebook in November, presents the projects being developed and sustained by As part of the celebration of the 17th National Children’s Book Day spearheaded by the Philippine Board on different stakeholders who are all committed to the cultural, environmental, and socioeconomic development of the towns of Baclayon Books for Young People, FHL organized a children’s book fair at TriNoma in July. The book fair served as a showcase of Philippine and Dauis. children’s literature. It also encouraged children to read more.
In May, the 2007 Ayala Foundation annual report received a silver award for annual or biennial reports from the United States–based Council FHL’s partnership with the National Book Development Board (NBDB) continued during the year. FHL and NBDB staged a performance of Foundations, which administers the annual Wilmer Shields Rich Awards. The annual report was produced under the leadership of FHL. reading of Francisco Balagtas’s classic Florante at Laura at TriNoma, also in February. Poets, musicians, dancers, professors, and actors participated in the reading event.
FHL The library also supported the NBDB in holding academic publishing seminars and book fairs in Baguio City and Davao City. The seminar and NBDB invited key players in the local publishing industry to encourage academic institutions to set up their own publishing arms. staged a performance reading of Francisco In celebration of the 13th Philippine Book Development Month in November, FHL served as a venue and partner in a series of activities Balagtas’s classic Florante that carried the theme, Galing Pinoy, Basahin! at Laura at TriNoma
35 34 This year’s celebration brought attention to the works of Filipino Filipinas Heritage Library writers, particularly the works of National Artist for Literature Nick Joaquin, and those of international-award-winning authors. Visitorship The events also acknowledged the contribution of young writers to the growth and development of Philippine literature.
Aside from a series of lectures and discussions on Philippine literature held at FHL’s reading room, an important feature of the celebrations was the Books and Arts Fest held at Greenbelt 3. The Books and Arts Fest featured a wide variety of locally 1,370 published books for children, books on art, Philippine literature, as well as rare books. Also exhibited were paintings, illustrations, 2009 photographs, and crafts and accessories by local artists. At 539 present, the Also part of the Books and Arts Fest was a performance reading library has digitized 3,186 of Jose Rizal’s El Filibusterismo. A sequel to the marathon photos from Retrato reading of Noli Me Tangere held in 2008, the El Filibusterismo 2,572 songs from its were converted to digital Himig Collection performance reading showcased performers and writers format interpreting chapters from one of the country’s most important literary works.
964
2008
658
1,216
2007
935
Researchers
Tour Participants
37 36 When the Ayala Museum was 1. The Ayala 2. Please We find it pleasing given custody of this collection, we Museum’s Gold of share with us the when museum guests and immediately recognized its significance. The Ancestors exhibition is kinds of response that visitors tell us they are impressed by gold artifacts that comprise the collection provide one of the most important the exhibition has received the exhibition design, or that they enjoy us with a picture of how the precolonial Filipino lived, exhibitions of ancestral gold from students, educators, the introductory film. But what satisfies us and therefore answer important questions related to Filipino in the world. What prompted tourists, scholars, and immensely are the reactions that we receive history, culture, and identity. We knew that the collection would the Ayala Museum to put other visitors. from students and young people, who after going draw Filipinos who wish to understand their history and heritage on this exhibition? through this unique exhibition say that we have better, as well as foreigners and scholars who would like to investigate helped them see Filipino history and culture in a the collection’s impact on Philippine and world history. new light. More importantly, hearing them say that the exhibition has helped them become This exhibition is also key to the redevelopment of our fourth-floor galleries more proud of being Filipinos shows us that that began in 2007 and was completed in 2008. Together with the loan we have done something significant exhibitions A Millennium of Contact: Chinese and Southeast Asian Trade and lasting for the Filipino Ceramics in the Philippines from the Roberto T. Villanueva Foundation youth. and Embroidered Multiples: 18th–19th Century Philippine Costumes 3. How from the National Museum of Ethnology in Leiden, The Netherlands, would you assess these exhibitions are an extraordinary part of the narrative of the impact of Gold of our country’s history and cultural development. A visit to Ancestors (and the rest of the museum covers our precolonial past to Philippine the Crossroads of Civilization colonial society, from the Diorama Experience to exhibition) on the way 20th-century Philippine art, and to changing Filipinos understand their exhibitions of contemporary local and history, identity, and international art. heritage?
The Crossroads of Civilization exhibitions open the door to research and inquiry into our history where there is still much to know and understand. The ornaments in the Gold of Ancestors exhibition point to a highly stratified society, where the elite wore spectacular necklaces, belts, and other pieces of adornment. They also clue us in on a fully developed gold- working tradition. The gold objects, as well as the trade vessels from A Millennium of Contact show the inter-island trade relationships, as well as affinities with the other Q and A Southeast Asian cultures. with
Ayala Foundation Victoria P. Garchitorena, will be publishing an exhibition catalogue on Gold of Ancestors in
President 2010. The book will be enormously helpful in promoting Filipinos’ appreciation of the 4. What fact that we have precolonial ancestors who steps is the Ayala lived in highly developed societies. The book will Museum taking to also serve as tangible proof that the Philippines make sure that the Gold achieved a high level of civilization before the of Ancestors exhibition Spaniards came. Ayala Museum has also been reaches more coordinating with the history departments Filipinos? of universities and colleges to ensure that teachers include a visit to the gold collection in their curriculum.
39 38 The Ayala Young Leaders’ Congress (AYLC), meanwhile, aside from One of The conducting the annual leadership camp, aims to ensure its continued relevance by strengthening its alumni the more exciting past changes that we are 48 years of network in outreach activities, as well as reaching out to more schools and educational institutions. implementing in AFI Ayala Foundation is the expansion of Inc. have been One of the more exciting changes that we are implementing in AFI is the our environmental characterized by its advocacies. capacity and readiness to expansion of our environmental advocacies. This year, we are establishing an adapt to the changing times integrated environment and sustainability division. We are going beyond our and the needs of the communities highly successful solid-waste management program to implement programs in clean it serves. In 2010, we at AFI yet again water, clean air, and energy efficiency. In relation to sustainability, AFI will continue to play a face the challenge of further improving pivotal role in Ayala Social Initiatives (ASI), the Ayala group’s flagship sustainability program. After ourselves, so we can stay true to our mission facilitating the publication of the Ayala group’s first conglomerate-wide sustainability report in 2009, of contributing to the eradication of poverty in as well as assisting in the holding of the group’s first Sustainability Summit, AFI will be involved in the its myriad forms. preparation of the next edition of the sustainability report, as well as communicating the importance of sustainability across the group, and to various external audiences. We are realigning some of our organization’s activities, so that there will be greater synergy in our Another important development within AFI is the expansion of our entrepreneurship programs. Through the various programs. The “3Es” of education, environment, Ayala Social Enterprise Accelerator Program, AFI’s entrepreneurship programs are now seeking “innovative and entrepreneurship—which we have used as a guiding solutions to critical social problems.” Aside from promoting the growth of technology start-ups, through our force behind the development and implementation of our Technology Business Incubators, we will now also focus on entrepreneurship programs that projects—are now expanding to cover more ground, and address the following pressing problems—public health, with special attention to Another to achieve greater reach and impact. Now, AFI has greater rural health care; clean, safe drinking water; and renewable energy. important resolve in working in five major mission areas—education; development within environment; entrepreneurship; history, arts, and culture; Our initiatives on history, art, and culture—as led by the Ayala Museum and AFI is the expansion of and community development. the Filipinas Heritage Library (FHL)—will continue to expand their reach. Aside from fresh exhibitions, publications, our entrepreneurship and public activities held in the programs. The Center of Excellence in Public Elementary Education museum and the library, we will continue to reach out to as many Filipinos, The Year (CENTEX), one of our key educational endeavors, stays true in different parts of the country, as possible. In cooperation with the Ayala group, to its mission of providing high-quality public elementary we are embarking on a major art and history advocacy program in 2010. Called Ahead education, while finding ways to ensure that these students Bravo! Celebrating the Filipino, this program will involve public performances and shows also get good secondary and tertiary education. In addition, that run the gamut of the great Filipino art forms—music, dance, film, fashion, photography, painting, CENTEX’s holistic view of child development encourages and sculpture. In addition, FHL will continue with its MyLibrary program, which helps build or improve library us to continue our efforts in feeding (as in our Feed the facilities in various communities, as well as promote the importance of reading among children and adults. Future program for CENTEX students), parent training, and teacher training. Our community development programs will remain committed to providing technical assistance to our service areas. In Bohol, AFI will be involved in setting up a sustainability mechanism in its project areas, before we turn The multi-stakeholder initiatives in which we play an over our projects to local government units. In Mindoro, AFI will continue its mission of providing education, active role—Text2Teach, Education and Livelihood entrepreneurial training, and eco-tourism-related capacity-building initiatives for the Iraya Mangyan. Lastly, Skills Alliance (ELSA), and Gearing up Internet we are preparing to turn over the Buklod Bahayan Daycare Center in Cavite to the community this year. Literacy and Access for Students (GILAS)—will continue to strengthen their fund-raising AFI has not forgotten the disasters that struck the country in 2009. And so together with 14 other capacities, so we can reach our organizations, AFI will be actively involved in Project Noah’s Ark, a nationwide disaster preparedness targets: bring Text2Teach program. Through Project Noah’s Ark, AFI aims to help identify and develop suitable evacuation to 150 public elementary centers in high-risk areas. Aside from building safe and hygienic evacuation facilities, Project We are schools, provide training Noah’s Ark will also be providing training in disaster preparedness, developing guidelines realigning some Our for 147 youth leaders in for disaster response, seeking the active participation of community members, and of our organization’s community Mindanao, and connect at setting up early warning systems. activities, so that there development least 360 more public programs will remain will be greater synergy We at AFI remain confident that our various stakeholders and partners will continue high schools to the committed to providing in our various to support our efforts, as we continue to evolve as an organization. And as we look Internet. technical assistance to programs. forward to celebrating our 50th anniversary in 2011, we continue to develop our service areas. and implement innovative and holistic programs that, we hope, will contribute to the fulfillment of our mission of eradicating poverty.
41 40 FERNANDO ZOBEL DE AYALA 2009 Board of Trustees Co–Vice Chairman of the Board and Executive Committee
JAIME ZOBEL DE AYALA Chairman of the Board and Executive Committee
JAIME AUGUSTO ZOBEL DE AYALA II VICTORIA GARCHITORENA Co–Vice Chairman of the Board President and Executive Committee
AURELIO MONTINOLA III Member of the Board of Trustees
JAIME AYALA Member of the Board of Trustees GERARDO ABLAZA JR. Member of the Board of Trustees
SOLOMON HERMOSURA Corporate Secretary
ARTHUR TAN Member of the Board of Trustees MERCEDITA NOLLEDO Member of the Board of Trustees
JOSE TEODORO LIMCAOCO ANTONINO AQUINO Member of the Board of Trustees Member of the Board of Trustees 43 42 Ayala Foundation, Inc. STATEMENT OF MANAGEMENT’S RESPONSIBILITY Management and Staff FOR FINANCIAL STATEMENTS (As of December 2009) Jaime Zobel de Ayala The management of Ayala Foundation, Inc. is responsible for all information and Chairman representations contained in the statements of financial position as at December 31, 2009 and 2008, and the statements of activities, and cash flows for each of the two years in the period Fernando Zobel de Ayala Jaime Augusto Zobel de Ayala ended December 31, 2009, and the summary of significant accounting policies and other Co–Vice Chairmen explanatory notes. The financial statements have been prepared in accordance with Philippine Financial Reporting Standards and reflect amounts that are based on the best estimates and Victoria P. Garchitorena President informed judgment of management with an appropriate consideration to materiality. Center for Social Development Guillermo M. Luz MMarioario AA.. DDeriquitoeriquito Executive Vice President In this regard, management maintains a system of accounting and reporting which provides for DDirectorirector Center the necessary internal controls to ensure that transactions are properly authorized and of Excellence in Public recorded, assets are safeguarded against unauthorized use or disposition and liabilities are DDinoino ReyRey AbellanosaAbellanosa • TTitaita AAquinoquino • MMercedesercedes BBarcelonarcelon • JJulieulie BBerganiaergania Elementary Education CChiarahiara CruzaCruza • MMa.a. SSergiaergia RRosarioosario CCatangayatangay • AAdeliadelia LLicosicos • CCeciliaecilia PPalmaalma recognized. JJosephoseph AnthonyAnthony QQuesadauesada • TTitoito GonzaloGonzalo RRiveraivera • AArchimedesrchimedes VVelascoelasco Ramon R. Miranda MManagersanagers Director The President and Chief Financial Officer review the financial statements before such MMaryary GraceGrace AAbdonbdon • JJoysenoysen AAccadccad • JJerryerry AAkutkut • BBayaniayani AAlontolonto JJr.r. • JJoneiloneil AAnono Mariecar Fernando • Desiree Garcia statements are approved and submitted. MMeriameriam BadalBadal • MaryMary RRoseose EErikarika BarjaBarja • Ma.Ma. PPazaz BaylonBaylon • SSteffiteffi BBorromeoorromeo Christine Joy Sarigumba RRodfordodford BucalonBucalon • LLeopoldoeopoldo CailingCailing IIII • TThellohello JJayay CCardenteardente • PPaulaul MMichaelichael CCastilloastillo Staff EEdwarddward DDawatanawatan • FFlorencelorence AAnnnn ddee CCastroastro • MMarielariel CCarlaarla ddee JJesusesus SyCip Gorres Velayo & Co., the independent auditors appointed by the Board of Trustees, has KKristineristine dede lala CCruzruz • IIreneoreneo DDemecaisemecais JJr.r. • RRizalynizalyn EEscovidalscovidal audited the financial statements of the Ayala Foundation, Incorporated in accordance with JJohnohn ChristopherChristopher PPaulaul GGulayulay • AAnana CCiareniaren HHipolitoipolito • SSanimaanima KKamenzaamenza Philippine Standards on Auditing and has expressed their opinion on the fairness of JJenniferennifer LigutomLigutom • HHenryenry LLuu • SSamuelamuel MMacagbaacagba IIIIII • AAbdulnasserbdulnasser MMacarimbangacarimbang presentation upon completion of such audit, in the attached report. DDennisennis MMateoateo • JosephJoseph NavarroNavarro • MMildredildred OOpleple • MMaryary GGracerace PParungaoarungao BBabyaby ZainabZainab PPenitenit • SajidSajid PeutoPeuto JJr.r. • MMarritesarrites PPotencianootenciano • PPurezaureza PPlatonlaton Filipinas Heritage Library PPepitoepito RabagoRabago • Ma.Ma. CarmelaCarmela AnnaAnna SSaavedraaavedra • FFernandernand SSaldoaldo CCelfredoelfredo SSansonanson • GGladylady SSerranoerrano • HHannahannah VVinaina TTraviñaraviña Ma. Antonia C. Ortigas RomuloRomulo ValientesValientes Jr.Jr. • JJoo AAnnenne VVillarosaillarosa • MMelissaelissa YYamsonamson Director MMaricararicar YuloYulo SStafftaff Suzanne Yupangco Deputy Director JAIME ZOBEL DE AYALA Chairman Graciela Cayton • Alexander Gregorio II Managers Office of the President Sarah Sevilla Jhoanne Abubakar • Anne Marie Alim • Jennifer Bascoguin Cecilia Cruz • Faye Johanna Cura • Marjorie de Asis Ayala Museum Office of the Jin Paul de Guzman • Gilbert de Jesus • Rosemarie Figuerres Executive Vice President Micaella Angelica Gonzalez • Maria Cecilia Ingusan Ma. Antonia C. Ortigas VICTORIAVICTORIA PP.. GGARCHITORENAARCHITORE Maureen Bañaga Jose Reginald Juanico • Mary Clare Lambino Director President Victor Philip Mariano Arnaldo Legaspi • Jaime Martinez Mary Rose Raguindin • January Salvador Kenneth Esguerra • Ma. Bernadette Samson Staff Rinnah Sevilla • Aprille Tijam • Judy Villacruz Managers
Miguel Carlos Acosta • Maria Loreta Busto Claire Julia Cruz • Roland Cruz • Paula Nikola Fernandez Finance WILMA P. ZAPATA Valerie Floro • Jo Ann Gando • Justin Dominic Gatuslao and Corporate Services Chief Financial Officer Ma. Elena Malgapo • Marinella Andrea Mina Rosalinda Navera • Niño Charls Oliveros Wilma P. Zapata Duffie Alejandrino Felizardo Osental • Antonio Par Director and Chief Financial Officer Ma. de las Nieves Pedraja • Elena Robles Pablo Ruiz • Therese Marie Sunga Patricia Adrias • Jose Barcelona • Araceli Oasan Arnold Torrecampo Managers Staff Wilma Theresa Alaban • Christian Martin Andrada Arwin Ayson • Rosanna Baetiong • Teresita Cailo Maria Louella Dizon • Francis Estolano • Imelda Fatalla Erwin Gopez • Odrie Joy Gungab • Mark Anthony Mariano Ronnie Marquez • Daniel Mejia • Niño Carlo Nevado Escolastica Nonog • Maria Cindy Poyaoan Clarissa Reforsado • Joan Paula Ruiz Sharon Sanchez • Kathrine Sison Monet Villanueva Staff 45 44 SyCip Gorres Velayo & Co. 6760 Ayala Avenue 1226 Makati City Philippines Phone: (632) 891 0307 Fax: (632) 819 0872 www.sgv.com.ph
BOA/PRC Reg. No. 0001 SEC Accreditation No. 0012-FR-2 - 2 -
INDEPENDENT AUDITORS’ REPORT Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial The Board of Trustees position of Ayala Foundation, Inc. as of December 31, 2009 and 2008, and its financial activities Ayala Foundation, Inc. and its cash flows for the years then ended in accordance with Philippine Financial Reporting 10th Floor, BPI Main Building Standards. Ayala Avenue corner Paseo de Roxas Legaspi Village, Makati City
SYCIP GORRES VELAYO & CO. We have audited the accompanying financial statements of Ayala Foundation, Inc. (a nonstock, not-for-profit organization), which comprise the statements of financial position as at December 31, 2009 and 2008, and the statements of activities and statements of cash flows for the years then ended, and a summary of significant accounting policies and other Jessie D. Cabaluna explanatory notes. Partner CPA Certificate No. 36317 Management’s Responsibility for the Financial Statements SEC Accreditation No. 0069-AR-2 Tax Identification No. 102-082-365 Management is responsible for the preparation and fair presentation of these financial PTR No. 2087369, January 4, 2010, Makati City statements in accordance with Philippine Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation March 3, 2010 and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. accomplishccomplish
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aaiimm crc eate evolveevoeevvoolvelveve 47 46 AYALA FOUNDATION, INC. ,186 2008 (A Nonstock, Not-for-Profit Organization) Total 848 STATEMENTS OF FINANCIAL POSITION =294,439,671 =832, P
=– P AFS Assets (Note 8) Financial Losses on Unrealized
December 31 =94,430,053) 2009 2008 =– P
ASSETS Restricted (Note 11) Permanently =525,997,763 (P Current Assets Cash and cash equivalents (Notes 4 and 12)P =45,427,232 P=56,948,377 (Note 11) Restricted
Receivables - net (Notes 5 and 12)2 5,568,797 33,146,215 Temporarily =294,439,671 P Merchandise inventories1 3,708,453 12,847,654 =265,911,817 P – 2,439,054 –– 4,986,742– –– (3,846,768) 2,439,054 – 3,846,768 – – – 4,986,742 – (136,288,704) – (136,288,704) =– P P
Other current assets (Note 6)4 ,258,347 4,355,216 1 3
r
Total Current Assets8 8,962,829 107,297,462 e b (Note 11) 2,334,112 46,421 – – 2,380,533 m 12,721,784 18,569,86514,264,303 –25,321,786 20,821,466 – – – 31,291,649 – – 35,085,769 – 25,321,786 (16,099,683) 427,542(16,099,683) (3,419,226) – 3,846,768 (136,288,704) (151,960,845) – (15,672,141) e Unrestricted 289,259,261304,315,157 (289,259,261) 26,235,750280,828,751 –320,414,840 – – 25,808,208 – – –151,468,342 – 330,550,907 269,331,043 – 522,150,995 – 41,858,651 – 280,828,751 984,809,031 346,223,048 c =135,368,659 P P e D Noncurrent Assets d l 5 6 9 6 2 7 – – 7 9 1 6 0 6 2 3 4 4 e a 9 1 0 1 9 5 4 8 7 7 3 8 9 3 5 4 t d 8 5 0 7 9 3 6 1 7 8 3 1 2 2 4 7 o , , , , , n Property and equipment - net (Note 7)1 73,367,083 183,518,169 , , , , , , , , , , 2 T 1 7 5 6 2 4 1 7 6 9 8 8 7 2 8 E
5 6 1 1 3 9 3 8 0 1 4 8 0 1 3 s 9 6 5 3 6 2 3 0 2 8 8 7 8 6 r , , , , , , , , , , , Available-for-sale financial assets (Notes 8 and 12)8 94,487,211 608,243,559 , , , a 8 5 2 3 4 0 8 0 0 2 2 8 3 2 e 2 5 8 1 5 3 2 3 4 2 9 Y 3 0 3 2 2 1 2 8 ,
Total Noncurrent Assets1 ,067,854,294 791,761,728 = P 1 = P ) ) – l s – – – – – – – – – – – – 3 S 4 4 P=1,156,817,123 P=899,059,190 d 9 n t a = P e 5 5 5 F i 9 o e z
0 4 4 c A , i , , 5 s , l s n 0 2 2 s 7 a e a 3 1 1 A 1 e s (Note 8) n 4 6 6 r , , , s 8 i , n 4 2 2 o F 1 9 U 9 9 L ( = P LIABILITIES AND NET ASSETS ( y ) ) l d 3 – 5 t – – – – – – – – – – – – 8 8 e 6 9 = P 6 6 n t 7 c 9 e 7 7 , , i , , r n 7 0 6 6 t a 9 5 Current Liability 4 4 s 9 1 8 8 , e , , , m (Note 11) r 5 2 3 3 R ( ( e 2 Accounts and other payables (Notes 9 and 12)P =98,960,948 P=63,739,673 2 5 P 5 = P ) y l d 5 i 6 7 3 – – 4 1 9 6 5 8 4 5 6 e r 9 – 1 5 6 3 7 3 0 0 6 4 2
Noncurrent Liability t 5 a 8 817 7 3 4 1 6 4 1 9 7 7 1 c , , r , , , , , , , , , , , 2 i , 1 1 r o 5 2 5 3 7 4 3 0 6 8 4 6 t 5 1 p 1 3 7 4 6 1 4 0 4 3 6
Pension liability (Note 10)2 ,188,659 2,471,331 2 s 9 9 5 6 4 8 3 7 8 4 3 0 , , , , , , , , , , , 6 e m (Note 11) , 8 5 2 4 5 7 2 2 2 0 6 e R 8 2 6 2 2 3 1 1 1 T 9 3
Total Liabilities1 01,149,607 66,211,004 2 1 1 1 2
3 ( = P = P ) d – 6 5 5 – – – – 5 3 9 8 9 0 8 3 e 4 = P 8 0 0 2 1 8 0 5 0 8 3 t 6 c 8 2 2 1 5 1 3 6 0 Net Assets 3 2 , , , i , , , , , , , , 8 , r 3 9 9 4 1 1 2 8 0 7 7 t 7 7 3 3 6 5 3 1 6 0 8 0 s 0 4 8 3 0 4 3 6 3 5 (Note 11) 3 8 e , , , , , , , , , , , ) 7
Unrestricted (Note 11)1 36,707,864 135,368,659 , r 2 7 1 6 2 8 4 5 6 6 3 6 ( n n 1 5 1 4 3 3 2 3 U 2 2 2 2 1 o Temporarily restricted (Note 11)3 98,626,256 265,911,817 1 i = P t
Permanently restricted (Note 11)5 22,150,995 525,997,763 a z i
Unrealized losses on available-for-sale financial assets (1,817,599) (94,430,053) n S a E . g (Note 8) I r C T I O
Total Net Assets1 ,055,667,516 832,848,186 N t I V i
I , f T P=1,156,817,123 P=899,059,190 o N r R C A P O E A I -
See accompanying Notes to Financial Statements. Y
r T F F o R O f
A A O G - E
t D N Y S I
T S o F N E N O T N S
N I
S D , U G N A E N
k T B E O B E c E E T T o F N A A
t M S S N I s
T T A E S E E n L E S S T o S S Investment 3 Othersnet assets (Note 8) – – Investment 2 Public supportProject (Note 11) P 2 Net assets released from restrictions (Note 11) 2 expenses and losses (expenses over revenues) 7 ProjectGeneral and administrative (Note 11)Net loss from other activities (Note 13) 2 – – G A A A A N
N
T T A Y T E E H A Net unrealized gains (losses) for the year recognized in Revenue, gains and other supports Expenses and losses Excess of revenue, gains and other supports over Fund disbursement / allocationC N N ( A ( S See accompanying Notes to Financial Statements. accomplishccomplish
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aaiimm crc eate evolveevoeevvoolvelveve 49 48 AYALA FOUNDATION, INC. (A Nonstock, Not-for-Profit Organization) AYALA FOUNDATION, INC. STATEMENTS OF CASH FLOWS (A Nonstock, Not-for-Profit Organization) NOTES TO FINANCIAL STATEMENTS
Years Ended December 31 2009 2008 1. Organization and Tax Exemption CASH FLOWS FROM OPERATING ACTIVITIES Ayala Foundation, Inc. (the Foundation) was registered with the Securities and Exchange Changes in net assetsP =222,819,330 (P=151,960,845) Commission (SEC) on December 28, 1961 as a nonstock, not-for-profit organization Adjustments for: primarily for the following purposes: Depreciation and amortization (Note 7)1 4,690,090 11,973,056 Recovery of impairment losses (Note 5)– (1,160,273) a. To function and operate as a private science and research foundation; Provision for impairment losses (Notes 5 and 11)– 226,008 Investment loss (income)( 45,471,300) 3,794,120 b. To provide financial support or scholarships; Net unrealized (gains) losses on AFS financial assets( 92,612,454) 136,288,704 Changes in net assets before changes in working capital 99,425,666 (839,230) c. To undertake ventures together with organized rural communities for the transfer of Decrease (increase) in: appropriate technologies; Receivables1 1,712,515 35,454,665 Merchandise inventories( 860,799) (329,167) d. To undertake integrated community organization and development programs; Other current assets9 6,869 1,838,783 Increase (decrease) in: e. To encourage the establishment of urban and rural micro, cottage and small enterprises Accounts and other payables3 5,221,275 (2,329,574) as a means of creating employment among the poor; Pension liability( 282,672) 543,173 Net cash provided by operating activities1 45,312,854 34,338,650 f. To undertake social services; and CASH FLOWS FROM INVESTING ACTIVITIES Net disposals (additions) to AFS financial assets( 193,631,198) 10,453,456 g. To preserve and enhance Philippine arts and culture as a means of developing national Net additions to property and equipment (Note 7)( 4,539,004) (22,645,315) pride and patriotism. Interest received4 1,336,203 2,006,740 Net cash used in investing activities( 156,833,999) (10,185,119) As a nonstock, not-for-profit organization intended for scientific purposes, the Foundation’s income is exempt from payment of income tax as set forth in Section 30(e) of the National NET INCREASE (DECREASE) IN CASH AND CASH Internal Revenue Code (NIRC) as amended by Executive Order (E.O.) 273. The Foundation EQUIVALENTS (11,521,145) 24,153,531 has been certified as an entity organized for scientific advancement and that its funds are CASH AND CASH EQUIVALENTS AT BEGINNING dedicated to scientific pursuits within the meaning of Section 24 of Republic Act No. 2067, OF YEAR 56,948,377 32,794,846 as amended. CASH AND CASH EQUIVALENTS AT END The Foundation is registered with the Bureau of Internal Revenue (BIR) as a donee OF YEAR (Note 4)P =45,427,232 P=56,948,377 institution in accordance with the provisions of BIR-National Economic and Development Authority Regulations No. 1-81 (as amended) and is entitled to the benefits set forth in See accompanying Notes to Financial Statements Section 29(h) of the NIRC, as amended by E.O. 273. As a registered donee, all donations and contributions to the Foundation are exempt from donor’s tax.
The Foundation’s registered office address is at 10th Floor, BPI Main Building, Ayala Avenue corner Paseo de Roxas, Legaspi Village, Makati City.
The financial statements of the Foundation for the years ended December 31, 2009 and 2008 were approved and authorized for issue by the Foundation’s President and Chief Financial Officer on March 3, 2010.
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2. Summary of Significant Accounting Policies reconciliations of the differences. This Standard is only applicable to an entity that has debt or equity instruments that are traded in a public market or that files (or is in the process of filing) its Basis of Preparation financial statements with a securities commission or similar party. The financial statements of the Foundation have been prepared using the historical cost basis, except for available-for-sale (AFS) financial assets that have been measured at fair value. The • Amendment to PAS 1, Presentation of Financial Statements Foundation’s presentation and functional currency is the Philippine Peso (P=). It introduces a new statement of comprehensive income that combines all items of income and expenses recognized in the profit or loss together with ‘other comprehensive income’. Entities Consistent with the requirement of Philippine Accounting Standard (PAS) 8, Accounting Policies, may choose to present all items in one statement, or to present two linked statements, a Changes in Accounting Estimates and Errors, the Foundation applied Statement of Financial separate statement of income and a statement of comprehensive income. This Amendment Accounting Standards No. 117, Financial Statements of Not-for-Profit Organizations. This also requires additional requirements in the presentation of the balance sheet and equity as well Statement establishes standards for general-purpose external financial statements provided by a as additional disclosures to be included in the consolidated financial statements. Adoption of not-for-profit organization. It specifies that those statements include a statement of financial this Amendment did not have significant impact on the financial position or performance of the position, a statement of activities and a statement of cash flows. Foundation. Statement of Compliance The accompanying financial statements have been prepared in compliance with Philippine Financial • Amendments to Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives, and Reporting Standards (PFRS). PAS 39, Financial Instruments: Recognition and Measurement This Amendment to Philippine Interpretation IFRIC 9 requires an entity to assess whether an Adoption of New and Amended Accounting Standards and Interpretations embedded derivative must be separated from a host contract when the entity reclassifies a The accounting policies adopted in the preparation of the Foundation’s financial statements are hybrid financial asset out of the fair value through profit or loss category. This assessment is to consistent with those of the previous financial year except for the adoption of the following be made based on circumstances that existed on the later of the date the entity first became a Philippine Interpretations of International Financial Reporting Interpretations Committee (IFRIC) party to the contract and the date of any contract amendments that significantly change the interpretations and amendments to existing standards which became effective on January 1, 2009. cash flows of the contract. Amendments PAS 39 now states that if an embedded derivative cannot be reliably measured, the entire hybrid instrument must remain classified as at fair value • Amendments to PFRS 7, Financial Instruments: Disclosures - Improving Disclosures about through profit or loss. Adoption of the amendment did not have a significant impact on the Financial Instruments financial statements of the Foundation. The amendments to PFRS 7 introduce enhanced disclosures about fair value measurement and liquidity risk. The amendments to PFRS 7 require fair value measurements for each class of Improvements to PFRS financial instruments to be disclosed by the source of inputs, using the following three-level In April 2009, the International Accounting Standards Board issued its omnibus of amendments to hierarchy: (a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level certain standards, primarily with a view to removing inconsistencies and clarifying wordings. There 1); (b) inputs other than quoted prices included in Level 1 that are observable for the asset or are separate transitional provisions for each standard: liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and (c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). • PFRS 2, Share-based Payment The level within which the fair value measurement is categorized must be based on the lowest It clarifies that the contribution of a business on formation of a joint venture and combinations level of input to the instrument’s valuation that is significant to the fair value measurement in its under common control are not within the scope of PFRS 2 even though they are out of scope of entirety. PFRS 3, Business Combinations. The amendment is effective for financial years on or after July 1, 2009. Additional disclosures required in the amendments to PFRS 7 are shown in Note 12. The amendments to PFRS 7 also introduce two major changes in liquidity risk disclosures as follows: • PFRS 5, Noncurrent Assets Held for Sale and Discontinued Operations (a) exclusion of derivative liabilities from maturity analysis unless the contractual maturities are It clarifies that the disclosures required in respect of non-current assets and disposal groups essential for an understanding of the timing of the cash flows and (b) inclusion of financial classified as held for sale or discontinued operations are only those set out in PFRS 5. The guarantee contracts in the contractual maturity analysis based on the maximum amount disclosure requirements of other PFRSs only apply if specifically required for such non-current guaranteed. assets or discontinued operations.
• PFRS 8, Operating Segments • PFRS 8, Operating Segment Information It will replace PAS 14, Segment Reporting, and adopts a full management approach to identifying, It clarifies that segment assets and liabilities need only be reported when those assets and measuring and disclosing the results of an entity’s operating segments. The information liabilities are included in measures that are used by the chief operating decision maker. reported would be that which management uses internally for evaluating the performance of operating segments and allocating resources to those segments. Such information may be • PAS 1, Presentation of Financial Statements different from that reported in the consolidated balance sheet and consolidated statement of It clarifies that the terms of a liability that could result, at anytime, in its settlement by the income and the Foundation will provide explanations and issuance of equity instruments at the option of the counterparty do not affect its classification.
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• PAS 7, Statement of Cash Flows Future Changes in Accounting Policies It explicitly states that only expenditure that results in a recognized asset can be classified as a The Foundation will adopt the following standards and interpretations enumerated below when cash flow from investing activities. these become effective. Except as otherwise indicated, the Foundation does not expect the adoption of these new and amended PFRS and Philippine Interpretations to have a significant impact on its • PAS 17, Leases financial statements. It removes the specific guidance on classifying land as a lease. Prior to the amendment, leases of land were classified as operating leases. The amendment now requires that leases of land are Effective in 2010 classified as either ‘finance’ or ‘operating’ in accordance with the general principles of PAS 17. The amendments will be applied retrospectively. • Philippine Interpretation IFRIC 18, Transfers of Assets from Customers This Philippine Interpretation is to be applied prospectively to transfers of assets from customers • PAS 18, Revenue received. It also provides guidance on how to account for items of property, plant and equipment The amendment adds guidance (which accompanies the standard) to determine whether an received from customers or cash that is received and used to acquire or construct assets that are entity is acting as a principal or as an agent. The features to consider are whether the entity: (a) used to connect the customer to a network or to provide ongoing access to a supply of goods or has primary responsibility for providing the goods or service; (b) has inventory risk; services or both. When the transferred item meets the definition of an asset, the asset is (c) has discretion in establishing prices; and (d) bears the credit risk. measured at fair value on initial recognition as part of an exchange transaction. The service(s) delivered are identified and the consideration received (the fair value of the asset) allocated to • PAS 36, Impairment of Assets each identifiable service. It clarifies that the largest unit permitted for allocating goodwill, acquired in a business combination, is the operating segment as defined in PFRS 8 before aggregation for reporting • Revised PFRS 3, Business Combinations and PAS 27, Consolidated and Separate Financial purposes. Statements The revised PFRS 3 introduces a number of changes in the accounting for business combinations • PAS 38, Intangible Assets that will impact the amount of goodwill recognized, the reported results in the period that an It clarifies that if an intangible asset acquired in a business combination is identifiable only with acquisition occurs, and future reported results. The revised PAS 27 requires, among others, that another intangible asset, the acquirer may recognize the group of intangible assets as a single (a) change in ownership interests of a subsidiary (that do not result in loss of control) will be asset provided the individual assets have similar useful lives. Also clarifies that the valuation accounted for as an equity transaction and will have no impact on goodwill nor will it give rise to techniques presented for determining the fair value of intangible assets acquired in a business a gain or loss; (b) losses incurred by the subsidiary will be allocated between the controlling and combination that are not traded in active markets are only examples and are not restrictive on noncontrolling interests (previously referred to as ‘minority interests’), even if the losses exceed the methods that can be used. the noncontrolling equity investment in the subsidiary; and (c) on loss of control of a subsidiary, any retained interest will be remeasured to fair value and this will impact the gain or loss • PAS 39, Financial Instruments: Recognition and Measurement - Eligible Hedged Items recognized on disposal. The changes introduced by the revised PFRS 3 must be applied It clarifies the following: (a) that a prepayment option is considered closely related to the host prospectively, while changes introduced by the revised contract when the exercise price of a prepayment option reimburses the lender up to the PAS 27 must be applied retrospectively with a few exceptions. The changes will affect future approximate present value of lost interest for the remaining term of the host contract; (b) that acquisitions and transactions with noncontrolling interests. The Foundation has concluded that the scope exemption for contracts between an acquirer and a vendor in a business combination the amendment will have no impact on the financial position or performance of the Foundation. to buy or sell an acquiree at a future date applies only to binding forward contracts, and not derivative contracts where further actions by either party are still to be taken; and (c) that gains Cash and Cash Equivalents or losses on cash flow hedges of a forecast transaction that subsequently results in the Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid recognition of a financial instrument or on cash flow hedges of recognized financial instruments investments that are readily convertible to known amounts of cash with original maturities of three months from dates of acquisitions or less and that are subject to an insignificant risk of changes in should be reclassified in the period that the hedged forecast cash flows affect profit or loss. value.
• Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives Financial Instruments It clarifies that it does not apply to possible reassessment at the date of acquisition, to Date of recognition embedded derivatives in contracts acquired in a business combination between entities or The Foundation recognizes a financial asset or a financial liability in the statement of financial businesses under common control or the formation of joint venture. position when it becomes a party to the contractual provisions of the instrument. Purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace are recognized on the settlement date.
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Initial recognition of financial instruments AFS financial assets All financial assets and financial liabilities are initially recognized at fair value. Except for financial AFS financial assets are those which are designated as such or do not qualify to be classified as assets and financial liabilities at FVPL, the initial measurement of financial instruments includes designated as securities at FVPL, HTM investments, or loans and receivables. They are purchased transaction costs. The Foundation classifies its financial assets in the following categories: financial and held indefinitely, and may be sold in response to liquidity requirements or changes in market assets at FVPL, held-to-maturity (HTM) investments, AFS financial assets, and loans and receivables. conditions. AFS financial assets include equity investments. The Foundation classifies its financial liabilities into financial liabilities at FVPL and other financial liabilities. The classification depends on the purpose for which the investments were acquired or After initial measurement, AFS financial assets are measured at fair value. The unrealized gains and liabilities incurred and whether they are quoted in an active market. Management determines the losses arising from the fair valuation of AFS financial assets are excluded from reported earnings classification of its investments at initial recognition and, where allowed and appropriate, re- and are reported as “Unrealized gains (losses) on AFS financial assets” in the statement of activities. evaluates such designation at every reporting date. When the security is disposed of, the cumulative gain or loss previously recognized in equity is The Foundation has no financial assets and financial liabilities designated as at FVPL and HTM recognized in the reported income. Where the Foundation holds more than one investment in the investments as of December 31, 2009 and 2008. same security these are deemed to be disposed of on a first-in first-out basis. Interest earned on holding AFS financial assets are reported as investment income using the effective interest rate. Determination of fair value Dividends earned on holding AFS financial assets are recognized in the statement of activities when The fair value for financial instruments traded in active markets at the reporting date is based on the right of the payment has been established. The losses arising from impairment of such their quoted market price or dealer price quotations (bid price for long positions and ask price for investments are recognized in the statement of activities. short positions), without any deduction for transaction costs. When current bid and asking prices are not available, the price of the most recent transaction provides evidence of the current fair value as When the fair value of AFS financial assets cannot be measured reliably because of lack of reliable long as there has not been a significant change in economic circumstances since the time of the estimates of future cash flows and discount rates necessary to calculate the fair value of unquoted transaction. equity instruments, these investments are carried at cost, less any allowance for impairment losses.
For all other financial instruments not listed in an active market, the fair value is determined by using Other financial liabilities appropriate valuation techniques. Valuation techniques include net present value techniques, Other financial liabilities pertain to issued financial instruments that are not classified or designated comparison to similar instruments for which market observable prices exist, options pricing models, at FVPL and contain contractual obligations to deliver cash or other financial assets to the holder or and other relevant valuation models. to settle the obligation other than the exchange of a fixed amount of cash or another financial asset for a fixed number of own equity shares. After initial measurement, other financial liabilities are Day 1 profit subsequently measured at amortized cost using the effective interest rate method. Amortized cost Where the transaction price in a non-active market is different to the fair value from other is calculated by taking into account any discount or premium on the issue and fees that are an observable current market transactions in the same instrument or based on a valuation technique integral part of the effective interest rate. whose variables include only data from observable market, the Foundation recognizes the difference between the transaction price and fair value (a Day 1 profit) in the statement of activities This accounting policy applies primarily to the Foundation’s accounts and other payables and other under the “Investment income” account. In cases where use is made of data which is not observable, obligations that meet the above definition. the difference between the transaction price and model value is only recognized in the statement of activities when the inputs become observable or when the instrument is derecognized. For each Impairment of Financial Assets transaction, the Foundation determines the appropriate method of recognizing the The Foundation assesses at each reporting date whether there is objective evidence that a financial ‘Day 1’ profit amount. asset or group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or Loans and receivables more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and Loans and receivables are financial assets with fixed or determinable payments and fixed maturities that loss event (or events) has an impact on the estimated future cash flows of the financial asset or that are not quoted in an active market. They are not entered into with the intention of immediate the group of financial assets that can be reliably estimated. Evidence of impairment may include or short-term resale and are not designated as AFS financial assets or financial indications that the borrower or a group of borrowers is experiencing significant financial difficulty, assets at FVPL. This accounting policy relates to the statement of financial position caption default or delinquency in interest or principal payments, the probability that they will enter “Receivables”. bankruptcy or other financial reorganization and where observable data indicate that there is measurable decrease in the estimated future cash flows, such as changes in arrears or economic After initial measurement, the loans and receivables are subsequently measured at amortized cost conditions that correlate with defaults. using the effective interest rate method, less allowance for impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees that are an integral part of the effective interest rate. The amortization is included in the “Investment income” account in the statement of activities. The losses arising from impairment of such loans and receivables are recognized in the statement of activities. accomplishccomplish
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Loans and receivables Derecognition of Financial Assets and Liabilities For loans and receivables carried at amortized cost, the Foundation first assesses whether objective Financial asset evidence of impairment exists individually for financial assets that are individually significant, or A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial collectively for financial assets that are not individually significant. If the Foundation determines assets) is derecognized when: that no objective evidence of impairment exists for individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk a. the rights to receive cash flows from the asset have expired; characteristics and collectively assesses for impairment. Those characteristics are relevant to the b. the Foundation retains the right to receive cash flows from the asset, but has assumed an estimation of future cash flows for groups of such assets by being indicative of the debtors’ ability to obligation to pay them in full without material delay to a third party under a ‘pass-through’ arrangement; or pay all amounts due according to the contractual terms of the assets being evaluated. Assets that c. the Foundation has transferred its rights to receive cash flows from the asset and either (i) has are individually assessed for impairment and for which an impairment loss is, or continues to be transferred substantially all the risks and rewards of the asset, or (ii) has neither transferred nor recognized are not included in a collective assessment for impairment. retained substantially all the risks and rewards of the asset, but has transferred control of the asset. If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the Where the Foundation has transferred its rights to receive cash flows from an asset or has entered estimated future cash flows (excluding future credit losses that have not been incurred). The into a pass-through arrangement, and has neither transferred nor retained substantially all the risks carrying amount of the asset is reduced through use of an allowance account and the amount of loss and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of is charged to the statement of activities. Interest income continues to be recognized based on the the Foundation’s continuing involvement in the asset. Continuing involvement that takes the form original effective interest rate of the asset. Loans and receivables, together with the associated of a guarantee over the transferred asset is measured at the lower of original carrying amount of the allowance accounts, are written off when there is no realistic prospect of future recovery and all asset and the maximum amount of consideration that the Foundation could be required to repay. collateral has been realized. If, in a subsequent year, the amount of the estimated impairment loss decreases because of an event occurring after the impairment was recognized, the previously Financial liability recognized impairment loss is reversed. Any subsequent reversal of an impairment loss is A financial liability is derecognized when the obligation under the liability is discharged or cancelled or recognized in statement of activities, to the extent that the carrying value of the asset does not expired. Where an existing financial liability is replaced by another from the same lender on exceed its amortized cost at the reversal date. substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis of new liability, and the difference in the respective carrying amounts is recognized in the statement of such credit risk characteristics as industry, past-due status and term. activities.
Future cash flows in a group of financial assets that are collectively evaluated for impairment are Offsetting Financial Instruments estimated on the basis of historical loss experience for assets with credit risk characteristics similar Financial assets and financial liabilities are offset and the net amount reported in the statement of to those in the group. Historical loss experience is adjusted on the basis of current observable data financial position if, and only if, there is a currently enforceable legal right to offset the recognized to reflect the effects of current conditions that did not affect the period on which the historical loss amounts and there is an intention to settle on a net basis, or to realize the asset and settle the experience is based and to remove the effects of conditions in the historical period that do not exist liability simultaneously. This is not generally the case with master netting agreements, and the currently. The methodology and assumptions used for estimating future cash flows are reviewed related assets and liabilities are presented gross in the statements of financial position. regularly by the Foundation to reduce any differences between loss estimates and actual loss experience. Merchandise Inventories Merchandise inventories consist of books and other items held for sale. Merchandise inventories are AFS financial assets valued at the lower of cost or net realizable value (NRV). Cost is determined using the first-in, first- For AFS financial assets, the Foundation assesses at each balance sheet date whether there is out method. NRV is the estimated selling price in the ordinary course of business less marketing objective evidence that a financial asset or group of financial assets is impaired. costs.
In case of equity investments classified as AFS financial assets, this would include a significant or Property and Equipment prolonged decline in the fair value of the investments below its cost. Where there is evidence of Property and equipment except for land, are carried at cost less accumulated depreciation and impairment, the cumulative loss - measured as the difference between the acquisition cost and the amortization and any impairment in value. Land is carried at cost less any impairment in value. current fair value, less any impairment loss on that financial asset previously recognized in the statement of activities - is removed from the “Unrealized gain (loss) AFS financial assets” account and recognized in the statement of activities. Impairment losses on equity investments are not reversed through income. Increases in fair value after impairment are recognized directly under “Unrealized gain (loss) on AFS financial assets” account in the statement of activities.
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The initial cost of property and equipment comprises its purchase price and any directly attributable is increased to its recoverable amount. That increased amount cannot exceed the carrying amount costs of bringing the asset to its working condition and location for its intended use. Expenditures that would have been determined, net of depreciation, had no impairment loss been recognized for incurred after the property and equipment have been put into operation, such as repairs and the asset in prior years. Such reversal is recognized in the statement of activities unless the asset is maintenance, are normally charged to expense in the period in which the costs are carried at revalued amount, in which case, the reversal is treated as a revaluation increase. After incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in such reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised an increase in the future economic benefits expected to be obtained from the use of an item of carrying amount, less any residual value, on a systematic basis over its remaining useful life. property and equipment beyond its originally assessed standard of performance, the expenditures are capitalized as an additional cost of property and equipment. Provisions Provisions are recognized when the Foundation has a present obligation (legal or constructive) as a Depreciation and amortization of property and equipment commences once the property and result of a past event, it is probable (i.e., more likely than not) that an outflow of resources equipment are available for use and is computed using the straight-line method over the following embodying economic benefits will be required to settle the obligation and a reliable estimate can be estimated useful lives of the property and equipment: made of the amount of the obligation. Provisions, if any, are reviewed at each reporting date and adjusted to reflect the current best estimate. Leasehold improvements 5-25 years Office furniture and equipment 3-5 years Restricted Net Assets Transportation equipment 5 years The Foundation reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, Leasehold improvements are amortized over the estimated useful life of the improvements or the when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted terms of the lease, whichever is shorter. net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. The useful lives and depreciation and amortization method are reviewed periodically to ensure that the period and method of depreciation and amortization are consistent with the expected pattern of Gifts consisting of long-lived assets with explicit restrictions that specify how the assets are to be economic benefits from items of property and equipment. used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. When property and equipment are retired or otherwise disposed of, the cost and the related Revenue Recognition accumulated depreciation and amortization are removed from the accounts and any resulting gain or Revenue is recognized on the following bases: loss is credited to or charged against current operations. Public Support Impairment of Non-financial Assets Public support revenue represents contributions received by the Foundation. Unconditional The Foundation assesses at each reporting date whether there is an indication that an asset may be contributions received, including unconditional promises to give cash or other assets, are recognized impaired. If any such indication exists, or when annual impairment testing for an asset is required, as revenue in the period received at their fair value. Conditional promises to give are recognized the Foundation makes an estimate of the asset’s recoverable amount. An asset’s recoverable when the conditions are met. Assets received subject to conditions are accounted for as refundable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value advances until the conditions are met. in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the Investment Income carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash Investment income represents interest income earned on AFS financial assets. Income is recognized flows are discounted to their present value using a pre-tax discount rate that reflects current market on a time proportion basis computed on the outstanding principal using the applicable rate. assessments of the time value of money and the risks specific to the asset. Impairment losses of continuing operations are recognized in the statement of activities in those expense categories Project consistent with the function of the impaired asset. Project revenue account represents income generated from the sale of books and catalogues, paper products, and other shop items such as home decors and giftwares, and desk accessories. The An assessment is made at each reporting date as to whether there is any indication that previously account consists of revenues arising from space rentals from various events held at the Ayala recognized impairment losses may no longer exist or may have decreased. If such indication exists, Museum and Filipinas Heritage Library. the recoverable amount is estimated. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case the carrying amount of the asset
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Museum Collections 3. Management’s Accounting Judgments and Use of Estimates Artworks, ethnographic, archeological and rare book collections purchased for or donated to the museum are not included in the accompanying financial statements. Gifts of cash or property used The preparation of the accompanying financial statements in conformity with PFRS requires for the purchase of the museum collections are classified as public support revenue when management to make estimates and assumptions that affect the amounts reported in the financial acquisitions are made in accordance with the terms of the gifts. The cost of objects purchased or statements and accompanying notes. The estimates and assumptions used in the accompanying donated is reported as a project expense. financial statements are based upon management’s evaluation of relevant facts and circumstances as of the date of the financial statements. Actual results could differ from such estimates. Pension Cost Pension cost is actuarially determined using the projected unit credit method. This method reflects Judgments services rendered by employees up to the date of valuation and incorporates assumptions In the process of applying the Foundation’s accounting policies, management has made the following concerning employees’ projected salaries. Actuarial valuations are conducted with sufficient judgments, apart from those involving estimations, which have the most significant effect on the regularity, with option to accelerate when significant changes to underlying assumptions occur. amounts recognized in the financial statements: Pension cost includes current service cost, interest cost, expected return on any plan assets, actuarial gains and losses and the effect of any curtailment or settlement. Operating lease commitments - Foundation as Lessee The liability recognized in the statement of financial position in respect of the defined benefit The Foundation has entered into commercial property leases. All significant risks and rewards of pension plan is the present value of the defined benefit obligation at reporting date. The defined ownership of the leased property remain to the lessor since the leased property, together with the benefit obligation is calculated annually by independent actuary using the projected unit credit buildings thereon and all permanent fixtures, will be returned to the lessor upon termination of the method. The present value of the defined benefit obligation is determined by discounting the lease. estimated future cash outflows using risk-free interest rates of government bonds that have terms to maturity approximating the terms of the related pension liability. Impairment of AFS financial assets The Foundation treats AFS financial assets as impaired when there has been a significant or Actuarial gains and losses is recognized as income or expense if the cumulative unrecognized prolonged decline in the fair value below its cost or where other objective evidence of impairment actuarial gains and losses at the end of the previous reporting period exceeded the greater of 10% of exists. The determination of what is ‘significant’ or ‘prolonged’ requires judgment. The Foundation the present value of defined benefit obligation or 10% of the fair value of plan assets. These gains treats ‘significant’ generally as 20% or more and ‘prolonged’ as greater than 6 months for quoted and losses are recognized over the expected average remaining working lives of the employees equity securities. In addition, the Foundation evaluates other factors, including normal volatility in participating in the plans. share price for quoted equities and the future cash flows and the discount factors for unquoted equities. Leases Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are Management’s Use of Estimates classified as operating leases. Operating lease payments are recognized as an expense in the The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of activities on a straight-line basis. balance sheet date that have a significant impact to the carrying amounts of assets and liabilities are discussed below: Foreign Currency Transactions Transactions denominated in foreign currencies are recorded using the exchange rate at the date of Estimating allowance for impairment losses the transactions. Outstanding foreign currency-denominated monetary assets and liabilities at The Foundation maintains allowance for impairment losses based on the result of the individual and year-end are translated to Philippine peso at prevailing Philippine Dealing System rate at reporting collective assessment under PAS 39. Under the individual assessment, the Foundation is required to dates. Exchange gains or losses arising from foreign currency transactions are credited to or charged obtain the present value of estimated cash flows using the receivable’s original effective interest against changes in net assets. rate. Impairment loss is determined as the difference between the receivables’ carrying balance and the computed present value. The collective assessment would require the Foundation to group its Contingencies receivables based on the credit risk characteristics (industry, customer type, customer location, past- Contingent liabilities are not recognized in the financial statements. These are disclosed unless the due status and term) of the customers. Impairment loss is then determined based on historical loss possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are experience of the receivables grouped per credit risk profile. Historical loss experience is adjusted on not recognized in the financial statements but disclosed when an inflow of economic benefits is the basis of current observable data to reflect the effects of current conditions that did not affect the probable. period on which the historical loss experience is based and to remove the effects of conditions in the historical period that do not exist currently. The methodology and assumptions used for the Subsequent Events individual and collective assessments are based on management's judgment and estimate. Post year-end events that provide additional information about the Foundation’s position at the Therefore, the amount and timing of recorded expense for any period would differ depending on the statement of financial position date (adjusting events) are reflected in the financial statements. Post judgments and estimates made for the year. The carrying values of receivables amounted to P=25.57 year-end events that are not adjusting events are disclosed in the notes to financial statements million and P=33.15 million as of December 31, 2009 and 2008, respectively (see Note 5). when material.
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Estimating useful lives of property and equipment 4. Cash and Cash Equivalents The Foundation estimates the useful lives of its property and equipment based on the period over which these assets are expected to be available for use. The estimated useful lives of property and This account consists of: equipment are reviewed at least annually and are updated if expectations differ from previous estimates due to physical wear and tear and technical or commercial obsolescence on the use of 2009 2008 these assets. It is possible that future results of operations could be materially affected by changes Cash on hand and in banks P=16,677,232 P=23,247,591 in estimates brought about by changes in factors mentioned above. As of December 31, 2009 and 2008, the carrying values of property and equipment amounted to P=173.37 million and Cash equivalents 28,750,000 33,700,786 P=183.52 million, respectively (see Note 7). P=45,427,232 P=56,948,377
Evaluation of asset impairment Cash in banks earn interests at the respective bank deposit rates. Cash equivalents are made for The Foundation reviews property and equipment and other noncurrent assets for impairment. This varying periods of up to three months depending on the immediate cash requirements of the includes considering certain indications of impairment such as significant changes in asset usage, Foundation and earn interests at the respective short-term investment rates. significant decline in assets’ market value, obsolescence or physical damage of an asset, significant underperformance relative to expected historical or projected future operating results and significant negative industry or economic trends. 5. Receivables As described in the accounting policy, the Foundation estimates the recoverable amount as the higher of the net selling price and value in use. In determining the present value of estimated future This account consists of the following: cash flows expected to be generated from the continued use of the assets, the Foundation is required to make estimates and assumptions that may affect property and equipment and other 2009 2008 noncurrent assets. The Foundation believes that the carrying amounts of its assets approximate the Trade recoverable amounts and, as such, no impairment loss was recognized for the years ended December ServicesP =6,685,599 P=8,487,763 31, 2009 and 2008. Products4 ,205,345 2,379,356 Estimating pension obligation and other retirement benefits Advances7 ,869,336 4,434,860 The determination of the obligation and cost of pension and other retirement benefits is dependent Accrued interest receivable4 ,435,548 300,451 on the selection of certain assumptions used by actuaries in calculating such amounts. Those Advances to officers and employees2 ,151,197 1,897,576 assumptions are described in Note 10 and include, among others, discount rates and salary increase Others5 ,883,373 21,307,810 rates. Actual results that differ from assumptions are accumulated and amortized over future 31,230,398 38,807,816 periods and therefore, generally affect the recognized expense and recorded obligation in such future periods. While the Foundation believes that the assumptions are reasonable and appropriate, Less allowance for impairment losses5 ,661,601 5,661,601 significant differences in the actual experience or significant changes in the assumptions may P=25,568,797 P=33,146,215 materially affect the pension and other retirement obligations. Net pension liability as of December 31, 2009 and 2008 are P=2.19 million and P=2.47 million, respectively Trade receivables are collectibles from various entities arising from their availment of program (see Note 10). services provided by the Foundation and are collectible within one year. Fair value of financial instruments Movements in the allowance for impairment losses are as follows: Where the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be derived from active markets, they are determined using internal valuation techniques using generally accepted market valuation models. The inputs to these models are taken 2009 2008 from observable markets where possible, but where this is not feasible, estimates are used in Balance at January 1 P=5,661,601 P=6,595,866 establishing fair values. These estimates may include considerations of liquidity, volatility, and Provisions during the period (Note 11)– 226,008 correlation. See Note 12 for the related balances. Reversals– (1,160,273) Balance at December 31P =5,661,601 P=5,661,601
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6. Other Current Assets 8. Available-for-sale Financial Assets
This account consists of: This account consists of investments in:
2009 2008 2009 2008 Deposits to suppliersP =2,713,179 P=1,863,257 Common trust fund P=595,487,042 P=500,535,329 Input tax1 ,234,150 2,206,452 Shares of stock Prepaid expenses3 11,018 285,507 Quoted securities2 96,706,190 105,360,814 P=4,258,347 P=4,355,216 Unquoted securities2 ,293,979 2,347,416 P=894,487,211 P=608,243,559
AFS financial assets consist of shares in various listed and unlisted companies held under a trust 7. Property and Equipment fund are carried at market value and cost, respectively.
The rollforward analysis of this account follows: The rollforward of unrealized losses on AFS financial assets are as follows:
2009 Office 2009 2008 Leasehold Furniture and Transportation Balance at beginning of year (P=94,430,053) P=41,858,651 Land Improvements Equipment Equipment Total Cost Unrealized gains (losses) recognized directly in At January 1P =93,717,200 P=69,922,337 P=72,532,050 P=2,626,873 P=238,798,460 net assets 92,612,454 (136,288,704) Additions7 36,875 1,029,434 2,772,695 – 4,539,004 Balance at end of year( P=1,817,599) (P=94,430,053) Disposals– – 1,910,953 – 1,910,953 At December 319 4,454,075 70,951,771 73,393,792 2,626,873 241,426,511 Accumulated Depreciation and Amortization At January 1– 21,098,675 31,965,493 2,216,123 55,280,291 9. Accounts and Other Payables Depreciation and amortization– 2,839,135 11,691,955 159,000 14,690,090 This account consists of: Disposals– – 1,910,953 – 1,910,953 At December 31– 23,937,810 41,746,495 2,375,123 68,059,428 Net Book Value at 2009 2008 December 31 P=94,454,075 P=47,013,961 P=31,647,297 P=251,750 P=173,367,083 TradeP =64,448,671 P=32,439,158 Accrued expenses 28,983,231 26,001,954 2008 Office Advances4 ,687,902 4,357,205 Leasehold Furniture and Transportation Others8 41,144 941,356 Land Improvements Equipment Equipment Total Cost P=98,960,948 P=63,739,673 At January 1 P=93,858,560 P=89,972,594 P=29,695,118 P=2,626,873 P=216,153,145 Additions – 14,493,919 8,292,756 – 22,786,675 Transfers – (34,544,176) 34,544,176 – – Accounts payable and accrued expenses include payables to consignors and suppliers that are Disposals (141,360) – – – (141,360) noninterest-bearing and are normally settled on 30 to 60 day terms. At December 31 93,717,200 69,922,337 72,532,050 2,626,873 238,798,460 Accumulated Depreciation and Amortization At January 1 – 18,356,407 22,893,704 2,057,124 43,307,235 10. Employee Benefits Depreciation and amortization – 2,742,268 9,071,789 158,999 11,973,056 At December 31 – 21,098,675 31,965,493 2,216,123 55,280,291 The Foundation has funded, noncontributory defined benefit retirement plan covering substantially Net Book Value at all of its regular employees. The benefits are generally based on defined contribution formula with December 31 P=93,717,200 P=48,823,662 P=40,566,557 P=410,750 P=183,518,169 minimum lump-sum guarantee of 1.5 months’ basic salary per year of service.
Depreciation and amortization charged against unrestricted net assets amounted to P=14.69 million The Foundation’s annual contributions to the plan consist principally of payments covering the and P=11.97 million in 2009 and 2008, respectively. current service cost for the year and the required funding relative to the guaranteed minimum benefits as applicable. Land amounting to P=92.65 million, which was donated in 2003, is subject to a leasehold right existing thereon with a third party. accomplishccomplish
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The components of pension expense included in employee benefits and welfare under “General and administrative expenses” in the statements of activities are as follows (see Note 11): The assumptions used to determine pension benefits for the Foundation for the years ended December 31, 2009 and 2008 are as follows: 2009 2008 Current service costP =2,601,813 P=3,553,764 2009 2008 Interest cost on benefit obligation1 ,878,990 1,514,271 Discount rate8 .25% 9.0% Expected return on plan assets( 1,096,419) (1,252,545) Salary increase rate7 .0% 7.0% Total pension expenseP =3,384,384 P=3,815,490 Expected rate of return on plan assets6 .5% 7.0%
The funded status and amounts recognized under pension liability in the statements of financial Amounts for the current and the previous periods follow: position for the pension plan as of December 31, 2009 and 2008 are as follows: 2009 2008 2007 2006 2005 2009 2008 Benefit obligation P=27,090,768 P=20,877,668 P=17,893,499 P=20,728,153 P=17,612,029 Benefit obligationsP =27,090,768 P=20,877,668 Plan assets (20,881,334) (16,867,990) (21,632,439) (17,612,029) (20,728,153) Plan assets( 20,881,334) (16,867,990) Deficit (surplus) P=6,209,434 P=4,009,678 (P=3,738,940) P=3,116,124 (P=3,116,124) 6,209,434 4,009,678 Unrecognized actuarial losses( 4,020,775) (1,538,347) Experience adjustments on plan assets and obligation are as follows: Liability recognized in the statements of financial position P=2,188,659 P=2,471,331 2009 2008 2007 2006 Gain (loss) on experience adjustments on plan Changes in the present value of the defined benefit obligation are as follows: liabilities P=5,013,633 (P=2,618,367) (P=156,553) P=1,551,875 Gain (loss) on experience 2009 2008 adjustments on plan Balance at January 1P =20,877,668 P=21,632,439 assets 213,673 (2,278,054) (4,285,625) 1,199,328 Current service cost2 ,601,813 3,553,764 Interest cost on benefit obligation1 ,878,990 1,514,271 Compensation of key management personnel by benefit type (included in the “Salaries and benefits” Benefits paid( 963,804) (3,272,317) account) in the Foundation expenses (see Note 11) follows: Actuarial loss (gain)2 ,696,101 (2,550,489) Balance at December 31P =27,090,768 P=20,877,668 2009 2008 Short term employee benefits P=5,496,185 P=5,242,757 Changes in the fair value of plan assets are as follows: Post-employment benefits5 32,065 477,561 P=6,028,250 P=5,720,318 2009 2008 Balance at January 1P =16,867,990 P=17,893,499 Expected return on plan assets1 ,096,419 1,252,545 11. Net Assets Contributions3 ,667,056 3,272,317 Benefits paid( 963,804) (3,272,317) Permanently restricted net assets are those assets that the donor stipulates must be maintained by Actuarial gain (loss)2 13,673 (2,278,054) the Foundation in perpetuity. Permanently restricted net assets increase when Foundation Balance at December 31P =20,881,334 P=16,867,990 receives contributions for which donor-imposed restrictions limiting the Foundation’s use of an asset or its economic benefits neither expire with the passage of time nor can be removed by the Foundation’s meeting certain requirements. Permanently restricted net assets generally come from: The Foundation expects to make contributions of P=4.18 million to its retirement fund in 2010. (1) contributions, with donor-imposed permanent restrictions; (2) increase or decrease in existing The components of the Foundation’s plan assets consist mainly of investments in government assets that are subject to permanent restrictions by donor or by law (such as unrealized gains, securities. The allocations of the fair value of plan assets follow: interest income); and (3) reclassification from another net asset class as a result of donor stipulation or by law. 2009 2008 Temporarily restricted net assets refer to those net assets whose use by the Foundation is limited by Fixed Income8 3.43% 100% donors to later periods of time or after specified dates or specified purposes. Equities1 6.57% – accomplishccomplish
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Unrestricted net assets are those net assets that are neither temporarily restricted nor permanently General and administrative expenses restricted. It includes all net assets with uses not restricted by donors, by Board of Trustees or by law. 2009 2008 Salaries and wages (see Note 10)P =10,058,947 P=10,376,609 Net assets were released from donor restrictions by incurring expenses satisfying the restricted Premises, utilities and other equipment-related 4,730,806 5,626,828 purposes or by occurrence of other events specified by donors. cost Advocacy and public information services9 36,370 1,091,263 Details of the Foundation’s net assets as of December 31, 2009 and 2008 follow: Employee benefits and welfare (see Note 10)3 ,401,415 3,818,168 Professional and service fees1 ,223,472 1,173,725 2009 2008 Taxes and licenses8 97,427 155,980 Unrestricted P=136,707,864 P=135,368,659 Communication and postage6 69,428 722,464 Temporarily restricted Office supplies6 11,841 707,482 Education programs 37,980,136 28,728,748 Meetings and conferences 289,011 255,066 Entrepreneurship programs 6,504,784 7,561,364 Transportation and travel1 97,364 243,169 Environment & sustainability programs 14,596,146 11,083,180 Membership dues and fees1 94,054 156,923 Provisions for impairment losses– 226,008 Programs for community development 30,875,060 22,428,946 Others5 97,098 768,101 173,367,083 183,518,169 Plant, property and equipment P=23,807,233 P=25,321,786 Support to administrative units 37,555,448 12,591,410 Any activities of the organization subject to Capital management 97,747,599 – donor approval The primary objectives of the Foundation’s capital management policies are to devote its funds to 398,626,256 265,911,817 charitable projects, scholarship grants and cultural activities, to afford the financial flexibility to Permanently restricted support its operations and to maximize the funds available. Investment in perpetuity, the income of which is expendable to support: The Foundation’s source of capital is its total net assets, which is composed of unrestricted, Education programs 153,050,000 153,050,000 temporarily restricted and permanently restricted net assets, less net unrealized losses on AFS Endowment requiring income to be added financial assets. to original gift to build up the fund3 69,100,995 372,947,763 522,150,995 525,997,763 2009 2008 Net Assets Unrealized losses on AFS financial assets (1,817,599) (94,430,053) Unrestricted P=136,707,864 P=135,368,659 P=1,055,667,516 P=832,848,186 Temporarily restricted 398,626,256 265,911,817 Permanently restricted 522,150,995 525,997,763 Details of the Foundation’s expenses as of December 31, 2009 and 2008 follow: Net unrealized losses on AFS financial assets (see Note 8) (1,817,599) (94,430,053) Project expenses Total Net Assets P=1,055,667,516 P=832,848,186 2009 2008 Project implementation Education P=72,977,979 P=75,578,778 Special projects3 7,335,831 95,418,584 Entrepreneurship3 ,463,806 11,023,687 Environment5 93,941 828,586 Project management Salaries and wages (see Note 10)3 0,836,906 30,370,583 Monitoring and administrative3 8,759,722 32,084,751 Employee benefits and welfare9 ,979,965 9,342,446 Building overhead2 4,383,039 26,181,336 P=218,331,189 P=280,828,751 accomplishccomplish
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12.FFinancial Instruments Fair Value Hierarchy As at December 31, 2009, the Foundation held the following financial instruments measured at fair value: Fair value information The table below set forth the carrying values and estimated fair values of the Foundation’s financial The Foundation uses the following hierarchy for determining and disclosing the fair value of the assets and liabilities as of December 31, 2009 and 2008: financial instruments by valuation technique: Level 1: quoted (unadjusted prices) in active markets for identical assets and liabilities 2009 2008 Level 2: other techniques for which all inputs which have a significant effect on the recorded fair Carrying Value Fair Value Carrying Value Fair Value value are observable, either directly or indirectly Financial Assets Level 3: techniques which use inputs which have a significant effect on the recorded fair value Loans and receivables that are not based on observable market data Cash and cash equivalents (see Note 4) P=45,427,232 P=45,427,232 P=56,948,377 P=56,948,377 Receivables (see Note 5) Assets measured at fair value Trade 10,890,944 10,890,944 10,867,119 10,867,119 Advances 7,869,336 7,869,336 4,434,860 4,434,860 Fair Value as Accrued interest receivable 4,435,548 4,435,548 300,451 300,451 of December 31, Level 1 Level 2 Level 3 2009 Advances to officers and employees 2,151,197 2,151,197 1,897,576 1,897,576 AFS financial assets (Note 8) Others 5,883,373 5,883,373 21,307,810 21,307,810 Common trust fund P=595,487,042 P=– P=– P=595,487,042 Total loans and receivables 76,657,630 76,657,630 95,756,193 95,756,193 Shares of stock AFS financial assets (see Note 8) Quoted securities 296,706,190 ––2296,706,190 Common trust fund P=595,487,042 P=595,487,042 P=500,535,329 P=500,535,329 Unquoted securities – 2,293,979 –22,293,979 Shares of stock Total AFS financial assets P=892,193,232 P=22,293,979 P=– P=894,487,211 Quoted securities 296,706,190 296,706,190 105,360,814 105,360,814 Unquoted securities 2,293,979 2,293,979 2,347,416 2,347,416 Financial Risk Management Objectives and Policies Total AFS financial assets 894,487,211 894,487,211 608,243,559 608,243,559 The Foundation has various financial instruments such as cash and cash equivalents, receivables, Total financial assets P=971,144,841 P=971,144,841 P=703,999,752 P=703,999,752 AFS financial assets, accounts and other payables which arise directly from its operations. Other financial liabilities Accounts and other payables (see Note 9) The main purpose of the Foundation’s financial instruments is to fund its operational and capital Trade P=64,448,671 P=64,448,671 P=32,439,158 P=32,439,158 expenditures. The main risks arising from the use of financial instruments are liquidity risk, credit Accrued expenses 28,983,231 28,983,231 26,001,954 26,001,954 risk and foreign exchange risk. Advances 4,687,902 4,687,902 4,357,205 4,357,205 Others 841,144 841,144 941,356 941,356 The Foundation’s risk management policies are summarized below: Total other financial liabilities P=98,960,948 P=98,960,948 P=63,739,673 P=63,739,673 Liquidity risk The methods and assumptions used by the Foundation in estimating the fair value of each class of The Foundation maintains a level of cash and cash equivalents deemed sufficient to finance financial instruments are as follows: operations. As part of its liquidity risk management, the Foundation regularly evaluates its projected and actual cash flows. It also continuously assesses conditions in the financial markets for Loans and receivables and other financial liabilities - Carrying amounts approximate fair values due to opportunities to pursue fund-raising activities. Fund-raising activities may include investments in the relative short-term maturities of these investments and liabilities. quoted and unquoted securities.
AFS quoted financial assets - Fair values are based on quoted prices published in markets. As of December 31, 2009 and 2008 the carrying amounts of accounts and other payables will be settled within one year. AFS unquoted financial assets – Fair values are based on estimates of future cash flows and the discount rates necessary for the unquoted equities.
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The following table shows the maturity profile of the Foundation’s financial assets and liabilities Credit risk based on contractual undiscounted payments: The Foundation’s holding of cash and cash equivalents exposes the Foundation to credit risk of the counterparty. Credit risk management involves dealing only with institutions for which credit limits 2009 have been established. The treasury policy sets credit limits for each counterparty. Given the Within 1 Year 1-5 years More than 5 Total Gross Foundation’s diverse base of counterparties, it is not exposed to large concentrations of credit risk. years Financial Assets The table below shows the maximum exposure to credit risk for the components of the statements Loans and receivables of financial position. Cash and cash equivalents (see Note 4) P=45,427,232 P=– P=– P=45,427,232 Receivables (see Note 5) 2009 2008 Trade 10,890,944 – – 10,890,944 Cash and cash equivalents (see Note 4)P =45,427,232 P=56,948,377 Advances 7,869,336 – – 7,869,336 Accrued interest receivable 4,435,548 – – 4,435,548 Receivables (see Note 5) Advances to officers and employees 2,151,197 – – 2,151,197 Trade1 0,890,944 10,867,119 Others 5,883,373 – – 5,883,373 Advances7 ,869,336 4,434,860 Total loans and receivables 76,657,630 – – 76,657,630 Accrued interest receivable4 ,435,548 300,451 AFS financial assets (see Note 8) Advances to officers and employees2 ,151,197 1,897,576 Common trust fund – 330,698,179 140,802,124 471,500,303 Others5 ,883,373 21,307,810 Total financial assets P=76,657,630 330,698,179 140,802,124 548,157,933 AFS financial assets Other financial liabilities Common trust fund5 95,487,042 500,535,329 Accounts and other payables (see Note 9) Shares of stock Trade P=64,448,671 P=– P=– P=64,448,671 Quoted securities2 96,706,190 105,360,814 Accrued expenses 28,983,231 – – 28,983,231 Unquoted securities2 ,293,979 2,347,416 Advances 4,687,902 – – 4,687,902 P=971,144,841 P=703,999,752 Others 841,144 – – 841,144 Total other financial liabilities P=98,960,948 P=– P=– P=98,960,948 Market Risk The Foundation’s exposure to the risk for change in market value relates primarily to the 2008 Foundation’s AFS financial assets. The Foundation’s AFS financial assets are managed by a trustee Within 1 Year 1-5 years More than 5 Total Gross bank. years Financial Assets Price Risk Loans and receivables The Foundation’s price risk exposure relates to its AFS securities where values will fluctuate as a Cash and cash equivalents (see Note 4) P=56,948,377 P=– P=– P=56,948,377 result of changes in market prices. Receivables (see Note 5) Trade 10,867,119 – – 10,867,119 Such investment securities are subject to price risk due to changes in market values arising from Advances 4,434,860 – – 4,434,860 factors specific to individual instruments or their issuers or factors affecting all instruments traded Accrued interest receivable 300,451 – – 300,451 in the market. Advances to officers and employees 1,897,576 – – 1,897,576 Others 21,307,810 – – 21,307,810 The following table demonstrates the sensitivity to a reasonably possible change in the market Total loans and receivables 95,756,193 – – 95,756,193 prices, with all variables held constant, of the Foundation’s equity on December 31, 2009 and AFS financial assets (see Note 8) December 31, 2008. Common trust fund 2,121,222 167,320,461 157,442,195 326,883,878 Increase Effect on Total financial assets P=97,877,415 P=167,320,461 P=157,442,195 P=422,640,071 (decrease) net assets Other financial liabilities 2009 5% P=44,724,361 Accounts and other payables (see Note 9) (5%) (P=44,724,361) Trade P=32,439,158 P=– P=– P=32,439,158 Accrued expenses 26,001,954 – – 26,001,954 Increase Effect on Advances 4,357,205 – – 4,357,205 (decrease) net assets Others 941,356 – – 941,356 2008 5% P=30,412,178 Total other financial liabilities P=63,739,673 P=– P=– P=63,739,673 (5%) (P=30,412,178) accomplishccomplish
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aaiimm crc eate evolveevoeevvoolvelveve 75 74 l 8 9 5 6 8 7 3 a 9 9 4 3 4 9 7 t 3 5 , 3 3 5 1 3 o , , , , , , 0 T 5 5 9 5 1 3 3 8 0 6 3 5 8 2 6 , 2 8 4 1 8 , , , , , , l 1 4 2 6 8 7 3 1 6 0 9 2 4 7 4 2 5 a 3 4 4 3 4 9 7 4 t 9 7 3 = P =8,487,763 9 0 3 5 1 3 = 8 P o 1 9 2 , , , , , , , =38,807,816 , , , T 0 7 9 5 1 3 4 6 3 7 9 8 6 3 5 8 4 0 9 2 1 8 y 4 8 4 1 8 – – – 1 1 3 d 7 2 4 , , , , , , , l 7 , , , 0 l e 9 7 0 5 7 4 2 5 1 3 6 2 5 r 6 a 0 9 , i 1 9 7 , , 5 9 4 , u 1 a 5 9 8 7 2 = P 5 d 6 p i 9 7 = P 8 6 v 0 1 , i , , m 3 , I 5 1 2 d 2 = =2,385,537 P P
=5,661,601 P follows: n I = P – 1 y – – – – – – 8 3 d l 0 = P l e 2 7 6 r a , 6 9 i , , l 1 u a 9 – – 3 9 0 7 3 7 a 6 d p 6 1 9 0 5 i 8 7 t 6 9 , v 4 7 4 3 4 1 o , , , , , i , , m 5 i T 6 2 6 7 0 3 2 d = P 6 3 0 3 9 n I 0 4 7 8 , , , , 6 2 1 1 =5,837,531 P = P =3,597,538 P = P t – 9 – – – – – 0 3 7 9 d 4 – – 5 2 7 u 6 = P 9 e 1 5 9 5 7 9 9 r b 9 0 4 1 3 , i 0 7 8 2
, , , , , , , , a 6 e 0 2 7 7 s 0 7 0 9 6 6 p u y 6 3 9 3 2 4 2 6 9
0 d a 2 7 , 1 2 0 0 , ,
m , , , = P i t 6 > D
4 1 3 2 1 s t = P =2,510,418 P = =1,523,763 P P a o n P 9 – – – 6 7 6 2 9 5 d 7 7 9 4 e , 0 2 , , l , r s 2 0 0 6 8 4 0 9 2 1 i 0 2 a 0 1 8 y 4 9 6 3 4 8 0 7 t 3 7 a 9 1 8 7 3 a 0 1 1 3 5 7 0 9 o 2 2 - p , , , , , , , , 6 , , , 5 d , T 1 7 6 0 9 5 8 8 3 7 6 =836,068 P 1 =478,039 P m 1 9 8 0 1 6 3 1 6 9 I
2 1 =
P 4 7 1 8 4 1 9 2 4 4 t = P , , , , , , , , , , o 5 6 3 7 4 2 1 2 5 9 n 9 9 4 5
5 2 t 9 = P 7 u – – – 4 1 = 2 P 0 b 7 8 6
5 3 6 5 0 , s e , , , 9 5 y 3 2 u 1 - 5 a – 8 4 5 5
D 1 – – – – – 8 6 4
0 = P D 1 = P t 6 0 0 9 e 4 - 27 - 26 =576,944 P =308,186 P = , P s 1 0 2 d d , , , 3 a a e 4 7 2 6 r r Past Due but not Impaired P i 6 7 2 2 G , a
9 1 1 , 2 p 8 9 1 – – – 5 4 w = P 0 8 4 7 o m I 5 2 , L 7 4 0
, , , r s 9 6 5 0 3 o y - 2 8 9 5 n a 0 5 1
1 1
d 3 = P e =913,641 P =743,508 P = P u – 8 e – – – – – 7 6 5 D 9 =
P d 4 0 4 t 5 , a 0 7 8 , , , s r 3 a 0 5 7 G 7
1 4 1 P s 5 – – 2 8 1 6
6 , 2 8 6 y 9 r 9 3 9 , 1 m 2 a 1 e 7 6 4 1 1 , , , u , , i = d P h 1
1 1 3 8 t d i 5 0 2 1 6 4
e e 3 3 4 = P < M N =544,042 P = P
=1,000,460 P
2
5 – 2 0 7 6 8 1 9
3 6 4 9 0 3 4 3 7
5 r r 8 e 5
6 8 4 0 d 2 2 0 1 2
3 5 7 9 e , , e 0 o , , , 2 , , , ,
u e 5 3 4 8 0
7 d 9 7 r h n 7 6 8 8 9 5 1 3
Nor 30-60 61-90 91-120 >120 Individually , 4 3 5 7 0 , i D
, , , , , t a 2 7
8 0 2 6 3 3 9 i 9 a 1
r 0 9 5 8 8 t 4
4 4 7 e 5 8 4 7 2 , , 0
, , 0 , , , , p s 0 6 3 1 6 G
5 4
4 N Neither 5 6 5 7 4 1 2 a , 7
8 4 1 9 , , , , , m
4 h 5 9 9 I Impaired <30 days days Days days Days Total Impaired Total
2 P Past Due 9 7 4 2 1
g 9 = P 5 2
i 1 = P
=2,504,688 P = P = H P =27,308,684 P P Unquoted securities 2 Quoted securities 2 employees 1 AdvancesAccrued interest receivableAdvances to officers and Others 4 Shares of stock 7 – TradeCommon trust fund 5 5 ServicesProducts P 7 Services P Products 231,665 337,110 75,764 212,007 186,660 238,059 1,049,600 1,098,091 2,379,356 9 9 0 0 0 0 The table below shows the credit quality of Foundation’s financial assets as December 31, 2009 and 2008. 2 As of December 31, 2009 and 2008, the aging analysis past due but not impaired trade receivables presented per class, are as 2 2008 Cash and cash equivalentsReceivables P AFS financial assets Trade AdvancesAccrued interest receivableAdvances to officers and employeesOthers 2 4 7 1 Trade AdvancesAccrued interest receivableAdvances to officers and employeesOthers 1,711,030 300,451 95,808 22,073 4,434,860 – 5,125 18,125,990 – – 14,554 23,500a 48,986ccomplishccom – 72,296 –p 186,546lish 51,626 – – 156,815 – 1,897,576 699,610 – 1,003,847 – 2,177,973 21,307,810 – – – – 300,451 – 4,434,860
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The credit quality of the financial assets was determined as follows:
Total Cash and cash equivalents - based on the nature of the counterparty and the Foundation’s internal rating system. =56,948,377 =703,999,752 Receivables - high grade pertains to receivables with no default in payment; medium grade pertains to receivables with up to 3 defaults in payment; and low grade pertains to receivables with more =– P than 3 defaults in payment. impaired
=5,661,601 P AFS financial assets - the quoted and unquoted financial assets are unrated. Individually
Foreign exchange risk The Foundation’s foreign exchange risk results primarily from movements of the Philippine Peso =– P against the United States Dollar.
=5,837,531 P The Foundation’s foreign currency-denominated financial instruments are included in cash and cash not impaired Past due but equivalents amounting to US$0.12 million in 2009 and US$0.19 million in 2008. The Philippine peso values of these instruments amounted to P=5.37 million and P=8.90 million in 2009 and 2008, respectively.
In translating the foreign currency-denominated monetary assets into peso amounts, the exchange rate used was P=46.20:$1 and P=47.52:$1, based on the Philippine Peso - U.S. dollar exchange rate as of =56,948,377 P
=692,500,620 P December 31, 2009 and 2008, respectively.
=– P The following table demonstrates the sensitivity to a reasonably possible change in the US dollar - 28 rate, with all variables held constant, of the Foundation’s net assets (due to changes in the fair value of monetary assets) as of December 31, 2009 and 2008. =2,063,716 P US$ depreciates Effect on (appreciates) Net assets =– P 2009 P=1.0 P=116,327 (P=1.0) (P=116,327) =2,001,293 P US$ depreciates Effect on (appreciates) Net assets 2008 P=1.0 P=187,245 (P=1.0) (P=187,245) 1,348,538 78,127 284,365 1,711,030 186,546 – 1,897,576 =56,948,377 P Neither Past Due nor Impaired =688,435,611 P P High Grade Medium Grade Low Grade Total 13.O ther Activities
Statements of revenue and expenses on the Foundation’s museum and library operations for the years ended December 31, 2009 and 2008 are as follows:
2009 2008 RevenueP =23,394,883 P=25,649,383 Expenses2 8,027,240 30,636,125 Net lossP =4,632,357 P=4,986,742 Quoted securitiesUnquoted securities 105,360,814 2,347,416 – – – – 105,360,814 2,347,416 – – – – 105,360,814 2,347,416 TradeAdvancesAccrued Interest ReceivableAdvances to officers and employees 300,451 4,434,860 618,026 – 1,250,964 – – 867,363 2,736,353 300,451 – 4,647,138 4,434,860 3,483,628 – 10,867,119 – – 300,451 – 4,434,860 OthersCommon trust fundShares of stock 500,535,329 16,541,800 – 672,202 911,988 – 18,125,990 500,535,329 1,003,847 2,177,973 – 21,307,810 – 500,535,329 2008 Cash and cash equivalentsReceivables P AFS financial assets accomplishccomplish
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aaiimm crc eate evolveevoeevvoolvelveve 79 78 Ayala Land, Inc.–Ayala Malls Group Ayala Land, Inc.–External Affairs Division Ayala Property Management Corp. Ayala Security Force Ayala Theaters Management, Inc. Dante Aye Ubaldo, Adobo Magazine Ambrosio, PhD Azool, Inc. Dave Henkel Azrael Coladilla Dave Miranda ACKNOWLEDGEMENTS Bahay Tsinoy David Dunleavy Bangko Sentral ng Pilipinas David Scully Bank of the Philippine Islands Dean Tina Colayco Bank of the Philippine Islands, Tagbilaran Del Monte Bao Toan Nguyen Dennis Bahilango Barangay Magallanes, Makati City Dennis Gonzalez Barangay San Lorenzo, Makati City Cathy Department of Education Barangay Ususan, Taguig City Bengzon Department of Environment– Barbara Mae Dacanay Cathy Santamaria Environmental Management Ambassador and Mrs. Antonio Lagdameo Sr. Bathma Kaew-Ngok CB Richard Ellis Bureau Ambassador Delia Meñez Rosal BBDC Parents’ Committee Philippines, Inc. Ammbassador Francisco M. Ortigas III Bea Zobel Jr. CDA–Bohol Provincial Office Ambassador Kristie Kenney Beatriz Narvadez Cecille Jimeno Ambassador. A. Selverajah Ben Chan Celeste Torrefranca Ambeth Ocampo Bernadette Nacario Cesar and Fe Rodriguez Amelou Benitez-Reyes Bernadette Sia Chaco Molina Amgen Foundation Bernard de Vera Chari Elinzano AMIDEAST Bernard Karganilla, Malaya Chemical Industries of the Phils. Ammorsolo Retrospective Committee Bettina Araneta-Aboitiz Chevron Geothermal Philippines Ana Ordunez Chevron Philippines, Inc. Anastacia Dy Beverly Chickie Custodio Andee Raymundo Licos Chimara Café Board for Andrea Pasion-Flores Araceli Ching Jorge Librarians, Angel Guerrero, Adobo Magazine Habaradas Chitz Ramirez Professional Anna Maria Harper Araceli Salas Christian Taguos Regulation Commission 106.7 Dream FM Anna Marie de la Vega Ariel Camannong Christopher Sandoval Bonifacio Estate Services A.A. Patawaran, Anna Sobrepeña, Lifetstyle Asia Aristón Estrada Cid Reyes Corp. Manila Style Weekend Anthony Trotter Arlene Mellante Cielo Banal-Formoso, Philippine Daily Inquirer Boy Garrovillo Abigail Nachura Anton San Diego, Philippine Tatler Armin Sarthou Jr. Cielo Canta BPI/MS Insurance Accenture Antonio Ortigas Armita Rufino City Government of Alaminos Brian Chan ACCM Anvil Publishing, Inc. Arneil and Loverne Suratos City Government of Bais Bryan Eclavea E Actimed Distribution AIAon Insurance an d Arnulfo Batac City Government of Cagayan de Oro Budeths Casinto Adarna House, Inc. Reinsurance Brokers ArtPost Asia City Government of Davao Buklod Bahayan Homeowners’ Associationn Adults CD-ROM Philippines, Inc. Arvin Ello City Government of Muntinlupa Bulldog Security Agnes Sayao Asia Society Philippines City Government of Panabo Butch Bonsol, Expat Communications Ahadiat Joedawinata Asian Civilisations Museum, Singapore City Government of Silay Cabugao Sons & Daughters Association of HHawaii Aileen Fernandez Association of Metro Manila Environment Officers City Government of Talisay, Negros Occidental Camille Dacanay-Mendoza Alabang Commercial Center Ateneo Art Gallery Clarence Basa Carla Galinato Alba Intl. Ateneo de Davao University Clarissa Militante Carla Quintanilla Albert Avellana, Avellana Art Gallery Ateneo de Manila University, Ateneo Innovation Center Clarito “Areng” Poblete Carlomar Daoana, Manila BulletinB n Albert Balbuti Atty. Benjamin Subido Claudette Lam Carlos A. Cordeiro Foundation Balikbigay Foundation, Inc Augusto Villalon, Philippine Daily Inquirer Clean Cities Makati Coalition Carlos Cojuangco Alberto Emilio Ramos Aurelio Montinola III Cleotilde How, MD Carmela Toribio Alejandro Padilla y Zóbel Avella Lipata CLSA, Asia Pacific Market Carmelo Cabrera Alexander Cordero Ayala Archives Congressman and Mrs. Antonio Lagdameo Jr. Carmencita Acosta, Expat Commmuniccations Alfredo and Ellen Andres Ayala Center Association Constantino Tejero, Philippine Daily Inquirer Carole Guamen Alice Guillermo, Business Mirror Ayala Center Association–Traffic Group Continental Temic ITCA Group Carpel Trading Alicia Herrera, BusinessWorld Ayala Corporation Corazon Alvina Catherine Liamzon Alma Adajar Ayala Group HR Council Corazon Bautista Alma Quinto Ayala Group Talent Network Corullon Holdings, Inc. Alma Recinto Ayala Land, Inc. Cris and Ella Quintanilla Alveo Land, Inc. Cristelle Laulagnet, Museum Volunteers of the Philippines accomplishccomplish Alvin Benitez Cristine Mojica Alvin Hilario excexexceel Crown Plastic Products, Inc. Alvin T.H. Tan Cultural Center of the Philippines Cynthia Luz Rivera Alvin Uy aaiimm crc eate Amadea Unisa evolveevoeevvoolvelveve Cynthia Valencia 81 80 Daniel and Petty Johannot Danilo Songco Department of Science and Technology, Estella Estolano Office of Undersecretary for Science Jewel Chuaunsu, Contemporary Art Ester Bermudez and Technology Services PPhilippines Eulalia Calatin Helena Z. Benitez Department of Science and Technology–Bohol Jo Anne Salita Evelyn Diao, Village Voice Hewlett-Packard Philippines Corporation Provincial Office Jo Anne Villarosa Evelyn Dimapilis Himig Koenji Choir Department of Science and Technology– Joan Pasagui, Philippine Tatler Evelyn Dy HMR Envirocycle PCIERD Joann Ruta Evelyn Lim Forbes Holy Family Choir Department of Tourism Joanne Gob Fanny San Pedro Holy Name University, OCAD Department of Trade and Industry, Joe Geraldo Fatima Reyes Honda Cars, Makati Bohol Provincial Office Joel de Leon FBC Holdings, Inc. Hubbert Christoper Dolor Department of Trade and Industry, Joel Uichico Fe de la Cruz Huism Tan Main Office, Human Resources Department Joey de Castro Felice Prudente Sta. Maria Hwee Min Low Department of Trade and Industry, John Armand Ong Felipe de Leon Jr. Ian Carlo Jaucian Regional Office I John Forbes Fercat Holdings, Inc. IBM Innovation Network Department of Trade and Industry, John Orbeta Ferdinand Alacar Igan D’Bayan, Philippine Star Regional Office IV Joohn Valenzuela Ferdinand Pantangco Immaculate Conception Academy Diana Principe Joolly Gutierrez Fernando and Catherine Zobel de Ayala Inah Bautista, Bluprint Dinah Ventura, Daily Tribune Jon Pettyjohn Filipino Heritage Festival, Inc. Intelligraph Corp Dindo Fernando International Finance Corp. Diwa Guinigundo Ira Cruz Diwata Paredes Irene Martel-Francisco, Philippine Tatler Doreen Yu, Philippine Starweek Filipino Web Services Jonathan Olazo Iris Cheng Dornet Venturanza Florentino Hornedo, PhD Jorge B. Vargas Museum and Filipiniana Research Isa Susan Ed Alba Fort Bonifacio Development Corp. Center Isabel de Leon, Manila Bulletin Eddia Chua Francis Gubatana José Maria Treñas Isabel Padilla Eddie Ortigas Francis Oca Josefina Tuazon Isah Red, Manila Standard Today Edelwina Kimmel Francisco and Sofia Elizalde Joselito and Ollie Campos Isuzu Alabang Edgar Chatto Frank Thong Joselito Sibayan Isuzu Phils Corp. Edgar Mariano Fundación Santiago Joselyn Geneciran Ivy Mendoza, Manila Bulletin Edgardo Chua Gary Dolina Josemari Catubig Jaferson Gelizon Edgardo Nofuente Genevieve Joson Joseph de Vera Jaime (†) and Isabel Ongpin Editha de la Paz Georgina Padilla y Zóbel Josephine Doctoro Jaime and Beatriz Zobel de Ayala Edna Olan Geostate Development Corp. Josephine Sestoso Jaime Augusto and Lizzie Zobel de Ayala Eduardo Chua Gerard Ramos, Business Mirror Joyce Toh Jaime de Guzman Edwin Maraya Giancarla Espinosa JP Morgan Chase Bank, N.A. James Seet Efren Meneses Gifts and Graces Trade Fair Foundation Judith Juntilla, BusinessWorld Highlife Eileen Legaspi-Ramirez Gilmon Holdings, Inc. Judy Araneta-Roxas Giovanni Macatangay Juliet Azanza Give2Asia Jullie Lluch Gkynda Bathan Junie Lim Glean Claridades Elena Salazar Junie Rodriguez Glen Danugrao Eleonor Misa Jan Cacdac-Siena Karen Fassio Globe Platinum Elija Holdings, Inc. Jan Liamson Karen Flores Globe Telecom, Inc. Ella Gonzales Janet Mansfield Karina Cariaga Globe Telecom, Inc., Bohol Business Center Embassy of the Philippines in Mexico Janik Liepach Karissa Aspillaga GMA Network, Inc. Emerald Headway Japan Airlines Kate Villaseñor Goldman Sachs & Co. Emi de Lara Jay Alonzo Katherine Yulo Greenbelt Emirate Security Jeanette Lim Kenson Kwok Greenpeace Emma Aquino Jeffrey Valisno, BusinessWorld Kontra-Gapi Gretchen Cojuangco Emma Flores Jehn Cerso Kwok Kian Chow Grupong Diwan Emme Consultancy, Inc. Jeny Pagkalinawan Lane Moving & Storage Guillermo Luz Enchanted Kingdom Jessica Villanueva Larry Ligunas Hadrian Mendoza Enrique Romualdez, Malaya Jessica Zafra Laurent Lamasuta Hal and Rochelle McArthur Eres Printing Corp Jessie Mendez Salon Lawrence Tio Hanna Pacua Eric de Jesus Jesus and Maritess Pineda League of Corporate Foundations Hannah Cunanan Eric Francia Leonila Casanova Heidi Tan Erickberth Calupe Leonore Torrefranca Helen Yu Rivera Erico Aumentado Letty Sala Ericsson Telecommunications, Inc.– Lileng Wong Philippines accomplishccomplish Lilia Sesperes Ernesto Mellante Lilia Tantoco excexexceel Erwin Locsin Linda Atayde Estela Lomat Lito Zulueta, Philippine Daily Inquirer aaiimm crc eate evolveevoeevvoolvelveve Little Candles Lizette Cardenas 83 82 Office of Representative Jocelyn Lope Bosaing Miriam College–Environmental Sy-Limkaichong (First District, Negros Oriental) Lopez Memorial Museum Studies Institute Oscar and Connie Lopez Lor Calma MMLDC Oscar and Mary Lou Hilado Lor Calma Design, Inc. Mona Lisa Sunio Oscar Reyes Serge Rega Lourdes Baua Monique Villonco, Town and Country Pablo Capati Service One Ma. Celitas Jacob Mr. and Mrs. Jose Manuel Lagdameo Pam Casim, Manila Bulletin Shell companies in Ma. Katrina Tioseco Mr. and Mrs. Oca Villamiel Pamantasan ng Lungsod ng Maynila–Brotherhood of Medical Scholars the Philippines Mac Valdezco Mr. and Mrs. Ricardo Lagdameo Paolo Mangubat Siegrid Anne Bangyay Mai Sangalang Municipal Government of Baclayon, Bohol Paolo Suapengco Simeon Ventura Jr., Makati City Anti-Smoke Belching Unit Municipal Government of Cawayan, Masbate Partnerships for Clean Air Mabuhay Magazine Makati City Department of Environmental Services Municipal Government of Dimasalang, Masbate Paseo de Magallanes Commercial Corp. Singapore Art Museum Municipal Government of Esperanza, Masbate Makati Commercial Estate Association Paseo Gallery R. S. Sisters of Charity of St. Anne Municipal Government of Milagros, Masbate Makati Environment Multi-Purpose Cooperative Patricia Maningat Mojica Sisuk Municipal Government of Mobo, Masbate Mangyan Mission Patricia Uy Rachel Barawid, Socorro Castro Municipal Government of Mulanay, Quezon Manila Chamber Orchestra Foundation, Inc. Patrick Flores Manila Bulletin Solid Waste Management Municipal Government of Palanas, Masbate Manny Pangilinan Patsy Zobel Rachy Cuna Association of the Philippines Municipal Social Welfare and Development–Silang, Cavite Mara Ciceron Paulino and Hetty Que Rafael Simpao Jr. Solid Waste Management MunicipaMunicipall Tourism OfOfficefice, Puerto Galera Galera Marchem Paulo Alcazaren, Bluprint Ral Arrogante Office, Taguig City Muntinlupa City Environmental Sanitation Center Margarita Araneta-Holigores PC Tech, Inc. Ramon Magsaysay Jr. Museo Pambata Margarita Ilagan Pennie de la Cruz, Sunday Inquirer Ramon Opulencia Mylene Santos Maria Josefina Ortigas- Magazine Ramon Rufino Mylynn Maligaser Duarte Perfecto Domingo Ramon Zialcita Narzalina Lim Marian Legarda Perry Mallari, Manila Times Randall Young Nathan Azarcon Maricar Pete Cortes Raul Manzano, Metro Society National Book Development Board Adamos Regina Co Seteng National Commission for Culture Reinosa Holdings, Inc. and the Arts Pete Reli de Veyra Jimenez Remedios Wingco Phhil Rene Almendras National Maricel Montero Ondaatje Rene and Anna Arellano Heritage Marino Sison Philip Lee Rene Buenaventura Board, Singapore Mario and Mimi Que Philippine Army Rey Flestado National Museum Mark Daniel Dantes Livelihood Training Ria Limjap, Homestyle Magazine of the Philippines Mark Escueta Philippine Band of Mercy Rica Zamora National Solid Waste Mark Gesite Jinge Policarpio Ricardo Jacinto Management Commission Mark Valenzuela Philippine Business for the Ricardo Nolasco, PhD Neal Oshima Marlene Galeos Environnment Richie Lerma Nelfa Querubin Martha Buckley Philippine Green Building CouncilC Ricky Francisco Nestor Jardin Martin Lopez Philippine High School for the Arts Rina Duque-Mariano Nikie Lingad Martina Diokno Philippine Polytrader Plastics, Inc. Rivka Nagtalon Nikos Dacanay Mary Ann Pernia Philippine Recyclers, Innc. Robert Haley Nina Aquino Mary Grace Azurin Philippine Women’s University Roberto Kanapi Nina Lim-Yuson Maui Salang Phinma Rodney Dofitas Nona Torres Maureen Barreiro Phyllis Zabalero Rolando Codes Nonette Climaca May Lopez Pilipinas Shell Petroleum Corporatation Rolando Sison Noreen Santos May Pagsinohin Pinggot Zulueta, Manila BulletiB tin Rome Jorge, Manila Times Norma Liongoren Maya Greenfield Thong Polystyrene Packaging Council of thet PhilippinesP Romeo Tabuena North Triangle Depot Commercial Center Meah Ang See Prince of Peace Collegge Romulo and Patricia Olazo Office of Representative Candido Pancrudo Jr. Melody Gocheco Provincial Government of Camigguin Rosan Cruz (First District, Bukidnon) Mercedes Lopez-Vargas Provincial Government of Davaao deel Norte Rosario Cruz Lucero, PhD Office of Representative Exequiel Javier Mercedita Nolledo Provincial Government of Soutth Cootabato Rosario Manalo (Lone District, Antique) Mermac, Inc. Provincial Government of Surigao ddel Norte Rosario Mayor Office of Representative Glenn Chong Metro Manila Anti-Smoke Belching Association Queena Lee-Chua, Philippine DailyD InquirerI Rosario Ventura (Lone District, Biliran) Metropolitan Museum of Manila Quezon City Environmental Prootecttion and Rowena Subino Office of Representative Henedina Abad Mia Borromeo, Philippine Tatler Waste Management Divvision Rowena Wendy Lei (Lone District Batanes) Michael Koh Roy Nudo Michael Sta. Maria Rozzano Rufino B. Biazon Michael Tan, Philippine Daily Inquirer Ruben D.F. Defeo Microsoft Corporation accomplishccomplish Ruel Maranan Miguel Alba Sam Marcelo, BusinessWorld Miguel Bernabe excexexceel San Fuente Holdings, Inc. Milagros del Rosario San Miguel Corporation aaiimm crc eate Millet Mananquil, Philippine Star evolveevoeevvoolvelveve Sanjiv Vohra Sari Ortiga 85 84 Seafood City Supermarket Sonia Tejada Starlog Manila, Inc. Station Square East Commercial Corp. Stephanie Asi, Daily Tribune Stephanie Poserio Steps Dance Studio Susan Alonzo Sydney de Claro Directory Sylvia Amorsolo-Lazo Sylvie Maghirang UNTV Public Service Channel Tan Boon Hui USAID-Sustainable Energy Development Program Tara F.T. Sering, Contemporary Art UWC-SEA Philippines Valerie Prentice Tarlac Catechetical School Vangie Baga-Reyes, Philippine Daily Inquirer Tay Chungtungco Varichem Corporation Teresita Ang See Vasquez & Co. LLP Ayala Foundation, Inc. Teresita Cruz Vic Lactaoen 10F Ayala Wing, BPI Building Tessie Luz Vicky Sumaria 6768 Ayala Avenue corner Paseo de Roxas Tessy San Juan Pettyjohn Victoria Gamundoy Makati City, Philippines Tetra Pak Philippines Victoria Garchitorena Tel (632) 752 1101 to 02 The Crucible Gallery Victoria Herrera Fax (632) 813 4487 to 88 Thelma San Juan, Philippine Daily Innquirer Victoria Padilla www.ayalafoundation.org Theodore Pe Vipoo Srivilasa Thomas Cheong Wanggo Gallaga, Metro Society Tim and Cherry Daniels Wency Cruz Tina Fernandez Wilfredo and Sherisa Nuesa Toshiba Information Equipment Philipppines, Wilma Zapata Inc. Toyota Foundation Japan Trend Microsystems, Inc. Tricia Castro Ayala Foundation, Inc. Ayala Technology Business Incubator Tricia Morente, HIPP Visayas Operations Room 201, Tech Portal Trisha Aguilar 4F Krizia Building University of the Philippines–AyalaLand Trust International Paper Corp. (TIPCO) Winnie Go Gorordo Avenue, Lahug TechnoHub Tugdaan Mangyan School World Bank, Asia Pacific Incubation Cebu City, Philippines Commonwealth Avenue, Diliman ULTREX Managers and Consultants, Inc Network Tel/Fax (6332) 233 0824 Quezon City 1101 Philippines United Nations Population Fund for the Stand World Bank, infoDev Program Tel (6332) 412 2405 Tel (632) 501 9817 World Wide Fund for Nature Fax: (632) 441 1561 www.hadrianmendoza.com Ayala Foundation, Inc. www.ayalatbi.org XL Insurance Company Ltd. Mindanao Operations Yael Buencamino Up Take Action Campaign 2F CLIMBS Bldg., Tiano Pacana St. Ayala Museum Yeng Carmona United States Agency for International Cagayan de Oro City, Philippines Makati Avenue corner de la Rosa Street Yeow Seng Cheah Development Tel (638822) 729 497 Greenbelt Park, Makati City, Philippines YGARC Trading Services United States Embassy Tel (632) 757 7117 to 21 YKL/Fujifilm United Way Worldwide / CITI Foundation Ayala Foundation USA Fax (632) 757 2728 Yolanda Sevilla Universal Robina Corporation 255 Shoreline Drive, Suite 428 (632) 757 3588 University of the East Dental Health Team Redwood City, CA 94065 USA www.ayalamuseum.org Alumni Association Tel (1 650) 598 3126 University of the Philippines Diliman Fax (1 650) 508 8988 Filipinas Heritage Library University of the Philippines Diliman www.af-usa.org Makati Avenue, Ayala Triangle Information Office Makati City, Philippines University of the Philippines Diliman, Tel (632) 892 1801 Office of the Chancellor Fax (632) 892 1810 University of the Philippines, www.filipinaslibrary.org.ph Office of the President University of the Philippines, Office of the Vice Chancellor for Research and Development University of the Philippines, accomplishccomplish Office of the Vice President for Development excexexceel
aaiimm crc eate evolveevoeevvoolvelveve 87 86 VISION
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