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
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.
forward
Contents
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87
88
The Chairman’s Message
The President’s Message
At a Glance
Operational Highlights
Q& A with the President
The Year Ahead
2009 Board of Trustees
Ayala Foundation Management and Staff 2009
Report of Independent Auditors
Acknowledgments
Directory
Mission and Vision
begin
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.
Message
The Chairman’s
The foundation also joined hands with different organizations
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
evacuation centers, establish guidelines for communitybased disaster response, provide training on disaster
preparedness, and set up an early warning system for
typhoons and other calamities. This way, we can prevent
death, destruction, and unneeded suffering, and our
fellow Filipinos will not feel helpless in the face of a
typhoon or any other calamity.
The spirit of volunteerism that informed our disasterrelief and disaster-preparedness efforts also helped
make our continuing advocacies flourish. Our
educational, entrepreneurial, environmental, and
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.
le
ad
In the face of all the difficulties that befell the country, our commitment to
enriching our artistic and cultural heritage also strengthened. The Ayala
Museum and the Filipinas Heritage Library, in particular, held on to their
mandate of celebrating the greatness of our country, not only for the
benefit of foreigners, but more importantly for our fellow Filipinos.
We at Ayala Foundation take pride in how much we and our
partners—past, present, and future—have achieved in pursuing
our goal of uplifting the quality of life of Filipinos. We are
also immensely grateful for the unflagging trust, faith, and
enthusiasm of our supporters, donors, managers, and
staff. Our continuing partnership brings us ever closer to
reaching our goals.
Jaime Zobel de Ayala
2
3
The word “tragedy” was
used
repeatedly
to
describe a number
of
harrowing,
unprecedented
events
that
occurred in our
country in 2009.
Still reeling from
the
damage
wrought by the
economic
crisis
that
began
in
2008, the country
was hit by several
natural calamities. We
wept over the death of
President Corazon Aquino,
we braved the destruction
brought by typhoons Ondoy and
Pepeng, and we stood in horror and anger
in the aftermath of the Maguindanao
massacre.
But as much as tragic events defined
the past year, these same events
provided Filipinos throughout the world
the opportunity to show our unity and
solidarity, as well as our dedication to
rebuilding our country and recovering
what we lost. Committed as we
are to eradicating the many
forms that poverty takes,
we at Ayala Foundation
also know that this goal
cannot
be
achieved
single-handedly.
We
are honored to report
to you just how much
the spirit of partnership
and
volunteerism
contributed significantly
to the success of our
undertakings.
The President’s
i
Message
In the wake of typhoons Ondoy
and Pepeng, Ayala Foundation deeply
immersed itself in relief operations,
in partnership with other institutions
as well as within the Ayala group. AFI
management and employees generously
shared their time, talent, and resources
in various activities, including the packing
and distribution of relief goods, as well as
the holding of soup kitchens. The Ayala
4
Young Leaders Alliance, for instance,
mobilized its nationwide network of 798
alumni to participate in rescue and relief
operations, and reached as many as 1,250
families in the hardest-hit areas, including
Rizal, Metro Manila, Bulacan, Pampanga,
and Benguet.
AFI also tapped its network of global
partners and supporters for numerous
fund-raising activities that were not
only meant to finance short-term relief
activities, but also to offer long-term,
preventive solutions. Ayala Foundation
USA actively informed Filipino-Americans
about the plight of Filipinos affected
by the typhoon, and organized special
events to raise funds for rescue and
rehabilitation activities, as well as
other existing AFI projects. AF USA held
Dining with the Chefs, a benefit dinner
that featured the cuisine of the most
promising Filipino-American culinary
talents, as well as a benefit concert, held
in New York, headlined by international
star Lea Salonga. AF USA raised over
$314,000 for typhoon victims and a
total of $1.42 million to finance its
numerous projects.
AFI raised over P16 million for
the benefit of families severely
affected by the typhoons. A
significant percentage of the funds raised
by AFI was reserved for collaborative
projects on disaster preparedness.
As much as Ayala Foundation took to
heart the importance of volunteerism in
the face of calamities, it also embarked
on and saw into fruition several projects
geared toward uplifting the lives of
Filipinos. As convener of Ayala Social
Initiatives, AFI took the lead in the
production of Ayala Corporation’s—as
well as the country’s—first conglomeratewide sustainability report. Launched in
September, the report, entitled Pioneering
for a Sustainable Future, affirmed the
Ayala group’s commitment to the triplebottom-line approach to sustainable
development. AFI was also one of the
key organizers of the Ayala group’s first
Sustainability Summit, which aimed to
raise awareness on the need to harmonize
one’s economic, social, and environmental
commitments.
In line with the Ayala group’s trailblazing efforts to
incorporate sustainability in its businesses, AFI strengthened
its environmental initiatives by expanding the Solid-Waste
Management program into the Ayala Green Resources for
Environmental Education and Networking (Ayala GREEN).
Through this program such issues as clean water, clean air,
and energy efficiency have also become priority areas in AFI’s
environmental initiatives. As one of its early projects Ayala
GREEN, in cooperation with 56 office and residential buildings
in the Makati Central Business District, conducted a study
on energy efficiency among the participating buildings. The
results of the study serve as a guide for future energy-saving
projects.
reach
Dear stakeholders,
Even with the establishment of Ayala GREEN, AFI’s SolidWaste Management (SWM) program continued to generate
significant response from numerous individuals and
organizations. One may immediately notice that the amount
of recyclables AFI and its partners collect during these fairs
has been slowly decreasing in the past few years—in 2007
about 1,800 tons of recyclables, worth nearly P10 million, was
recovered; in 2009 1,300 tons, worth nearly P7 million,
was collected. The decline, however, is actually
a good sign, because it represents a growing
awareness of the importance of proper solidwaste management, as well as the recognition
of the economic and environmental value of
trash. Because of our pioneering efforts, AFI’s
SWM program has become a model for many other
institutions in setting up their own recyclables fairs. In
addition, Filipinos are fast learning the value of segregating
their trash, instead of sending it indiscriminately to sanitary
landfills.
As a trailblazing institution in the area of education and
youth development, AFI marked a number of milestones
in its effort to make education and educational tools more
easily accessible to poor families. The Center of Excellence in
Public Elementary Education (CENTEX) celebrated 10 years
of providing quality public education for underprivileged
but gifted students. We are pleased that 53 from our first
batch of 75 CENTEX scholars, who had enrolled in our Tondo
campus in 1999, entered college this year. We are looking
forward to what our brilliant CENTEX graduates are bound to
achieve in the coming years.
AFI, as well as the other organizations and individuals that
comprise the Gearing up for Internet Literacy and Access for
Students (GILAS) consortium, continued its quest to connect
all of the country’s public high schools to the Internet. An
additional 415 schools are now wired to the World Wide
Web, bringing the total number of connected schools to
2,517. GILAS has also started exploring the benefits of using
satellite technology to address the Internet-connectivity
needs of schools in remote areas, particularly those where
the necessary infrastructure is unavailable.
Meanwhile, the multi-sectoral initiative Text2Teach was
introduced to 97 public elementary schools. As many as 302
schools and over a million students are now benefiting from
Text2Teach’s educational materials, delivered through 3G
technology. The project also continued getting the support
of local government agencies, as they vowed to provide the
counterpart funding for the success of Text2Teach in their
towns and provinces.
Just as the Ayala Young Leaders Congress organized the
training of 73 very promising student leaders from all over
the country, the Education and Livelihood Alliance (ELSA) also
involved itself in the training of individuals who could bring
positive change to Region XII and the Autonomous Region
of Muslim Mindanao. ELSA provided training in leadership,
fund-raising, and community engagement to 160 young
leaders and 144 officers and members of parent–teacher
associations.
The role of technology in developing an entrepreneurial
spirit among Filipinos was championed by the Ayala
Technology Business Incubator (Ayala TBI). In Ayala
TBI’s facility located at the University of the
Philippines–Ayala Land TechnoHub, a total of 13
startup companies were signed up, thus giving
them the chance to showcase and test their
innovative products and business models.
As we enter our 49th year, we at Ayala Foundation
are implementing organizational changes to help
us become more responsive to the needs of the people
we serve. We hope to achieve greater synergy among our
projects and activities. Starting in 2010, we will intensify our
commitment in five major areas: education; entrepreneurship;
environment and sustainability; history, art, and culture; and
community development.
We take pride and derive satisfaction as we look back on
the previous year and look forward to the year ahead.
Doing so proves, again and again, that Ayala Foundation,
through the generous and unfailing support of its partners
and benefactors, has provided the country with tools and
resources that can lead it to progress. We at AFI cannot take
full credit for the success of these undertakings, because
you, our stakeholders, have also put in enormous amounts
of resources to bring our country ever closer to sustained and
sustainable progress. Once again thank you very much, and
we hope to work with you again in 2010.
Victoria P. Garchitorena
5
Green
Resources for
Environmental Education and
Networking (Ayala GREEN)
Development
At a glance
Center
for
Social
The Center for Social
Development (CSD) contributes
to the improvement of the quality of life of
Filipinos by developing innovative and sustainable
social technologies that respond to pressing needs.
CSD also focuses on harnessing the potential of corporate
social responsibility within the Ayala group, and works together
with the public and private sectors to sustain its programs. CSD’s
core programs are in such areas as education and youth leadership
development, environment, and entrepreneurship.
Reach and Impact
CSD sustained its programs and projects by strengthening
partnerships with its stakeholders. Also, it began exploring
new communication and resource mobilization
strategies to elicit greater response, from existing
and potential partners, for its programs.
Ayala
Young Leaders
Congress
• Provided
training for 73 of
the country’s most
promising student leaders
at the 11th Ayala Young
Leaders Congress
(AYLC) in February
• Piloted an AYLCinspired training
program in five schools
in Mindanao, Visayas, Luzon,
and Metro Manila that
reached out to 300
young leaders
• Conducted
voter’s registration
and education
campaigns in over 400
schools and institutions,
reaching an estimated
50,000 individuals
• Carried out
disaster-response
operations in the
aftermath of typhoons
Ondoy and Pepeng. These
relief operations, spearheaded
by AYLC alumni, benefited 1,250
families in Rizal, Bulacan,
Pampanga, Baguio, and
Benguet
6
AF USA
• Organized
fund-raising events in
New York and California for
the benefit of Philippine
development initiatives
• Raised cash
and in-kind donations
amounting to $1.42 million
from Filipino-Americans
based in the United States
• Supported
programs of partners in the
Philippines
• Began the
process of transforming
AF USA into a more FilAm-driven organization, with
the name and brand to be
formally launched in
2010
• Expanded the SolidWaste Management program, which
became Ayala GREEN. Aside from solidwaste management, Ayala GREEN advocates
energy efficiency, water-use management, and
clean air, particularly in Ayala development
projects and the Makati Commercial
Business District (MCBD)
• Conducted a study on
the energy efficiency of 52 office
buildings in the MCBD
• Organized an Energy
Efficiency Forum and Knowledge
Sharing for 60 building
representatives
• Co-organized the Third
Annual Tigil Buga campaign along
Ayala Avenue to encourage motorists to
shut off their engines for one minute to
reduce carbon dioxide emissions
• Conducted free motor
vehicle smoke emissions testing
in six car parks managed by Ayala Land’s
Ayala Property Management Corporation (APMC),
in partnership with the Makati City Department of
Environmental Services and Anti-Smoke Belching Unit,
Metro Manila Anti-Smoke Belching Association,
and the Environment Management Bureau of
the Department of Environment and
Natural Resources
• Participated in
drafting the Science and
Technology Research and Development
road map, a project initiated by
the Department of Science and
Technology to address water
pollution
• Facilitated the
recovery of 1,300 tons of
assorted recyclables, with an
estimated worth of almost P7 million,
from 184 participating buildings in
the Makati Central Business
District
The GILAS
Social Consortium
• Connected an
additional 415
public high schools
to the Internet. By
the end of 2009, a total
of 2,517 public high schools
have access to the Internet,
while 88 more schools
are Internet-ready
and awaiting
connection
• Raised a total
of P47,244,646
in cash donations
and P6,328,510 worth
of in-kind donations
from the public sector,
private sector, and
overseas donors
• Used
satellite
technology in
bringing the Internet
to public high schools
in remote areas
• Continued to monitor
the weekly Recyclables Fairs
in five Ayala malls, two universities,
and subdivisions. These Recyclables Fairs
generated 100 tons of recyclables, as well
as 5,000 pieces of assorted junk (such as
lead-acid batteries and printer toner
cartridges), worth close to
P700,000
7
Development
At a glance
Center
for
i
Social
Other
Community
Development Projects
Education and
Livelihoods Skills Alliance
(ELSA)
Ayala Technology
Business Incubator
(AyalaTBI)
• Signed up 13 technology
startup companies at the
University of the Philippines–
Ayala Land TechnoHub.
Three of these are currently
assessing their products and
business models
• Held the first
Green TechBootCamp,
which focused on clean
technologies, renewable
energy, and sustainable
solutions that address
pressing environmental
problems
• Provided training for
200 young Muslims, Christians,
and indigenous peoples for the Cultures
Across Mindanao Program of the United
States Agency for International Development
(USAID), Education Quality and Access for
Learning and Livelihood Skills (EQuALLS),
and the United States Embassy
Ayala Social
Initiatives
• Published the first Ayala
Corporation Sustainability Report,
covering the economic, social, and
environmental performance of the
Ayala group of companies
• Raised close to
P130,000 in donations
to support youth-initiated
projects in Mindanao
• Helped organize the first
Ayala group Sustainability Summit
• Worked with the Ayala
Human Resource Council in
gathering over 205,000 storybooks
for distribution to public
elementary schools with low
reading scores
• Made
preparations for the
turnover of the management
of the Buklod Bahayan Daycare
Center to teachers, parents, and
homeowner’s association
• Conducted
daily feeding for 180
Mangyan children in the
Talipanan Elementary School
in Oriental Mindoro
• Established a
program for sustainable
development in Bohol through
the preservation of the natural
environment and cultural
heritage
• 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
many as 400 participants
• Launched Mobile
Xtreme!, a nationwide
competition challenging
developers to come up
with innovative mobile
applications
Text2Teach
Strategic Initiatives
• Brought the program to 97
public elementary schools in Northern
Luzon, benefiting some 18,000
students. Since its inception in 2003,
Text2Teach has reached 302 schools,
with over 1 million students continuing
to benefit from the program
• Continue to conduct training for youth leaders, parent–teacher
associations, and school administrators in Mindanao,
through ELSA
• Facilitated the
training of 523 teachers
on the use of Text2Teach
teaching tools
• Make Text2Teach accessible to a greater number of
public elementary schools, and develop new educational
materials
• Raised cash donations
amounting to over P16 million and
in-kind donations worth nearly
P700,000 from the Text2Teach
alliance and the public sector.
• Connect an additional 360 schools to the Internet through
GILAS
• 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
8
9
The Center of Excellence in
Public Elementary Education (CENTEX)
aims to provide intelligent, economically
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.
Reach and Impact
CENTEX operates two schools—one in Tondo, Manila, and another
in Bauan, Batangas—and has a total combined enrollment
of 951, as of school year 2009–2010. Since 2005, CENTEX has
facilitated the provision of high school scholarships to 242
alumni, in partner institutions like St. Bridget School
in Batangas, and the Santa Isabel College and
University of Santo Tomas High School in
Manila.
• Celebrated its
10th anniversary in a
special program held at
Onstage Greenbelt in
March
• Had a total
enrollment of 951
elementary school students
(511 in Manila and 440 in
Batangas) for school
year 2009–2010
At a glance
• Supported
33 alumni, now
college freshmen, in securing
scholarships from private
individuals, schools, or the
government
Center of Excellence
in
Public Elementary
Education
10
• Held free
parenting seminars
that promote “discipline with
dignity,” reaching as many as
950 parents of students
from both CENTEXoperated schools
• Launched
the Feed the Future
program, a fund-raising project
that aimed to support CENTEX
Manila’s feeding program for
students from kindergarten
to third grade
• Facilitated the
participation of 30 thirdyear high school students—15
alumni from CENTEX Manila, and
15 from Batangas—in Access, where,
aside from after-school language
classes, they joined an outreach
program for the benefit of
war veterans
• Received a
generous donation
from Hewlett-Packard,
which renovated CENTEX Manila’s
computer room, and provided new
personal computers, laptops,
a TouchSmart PC, digital
cameras, and printers
• Introduced
My Backyard, an
environmental-education
project in collaboration
with Hewlett-Packard
• Implemented
Linis Bakuran, the
community-outreach
component of My Backyard,
in three barangays in
Tondo, Manila
• Synergize
activities
with AFI’s other
education-related
initiatives
• Intensify fund-raising
activities so it can provide more
high school and college scholarships
for CENTEX alumni
• Held the
annual teacher-training
program, attended by teachers
from CENTEX Manila and
Batangas, the Food for Hungry
Minds School, and Buklod
Bahayan Daycare
Center
• Received a
grant from the United
States Embassy and the US
Department of State to implement the
English Access Microscholarship Program
(Access), a two-year program where
high school students study
English in after-school classes
and through intensive
summer activities
• Continue its Feed the Future campaign to
provide proper nutrition for CENTEX students
• Develop and implement skills training programs for
parents
Strategic Initiatives
11
• Held a lecture
on precolonial Philippine
history led by Ambeth
Ocampo, chair of the
National Historical
Institute
At a glance
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
presence in the
promotion of Philippine
art and culture and one of the
country’s principal private cultural
institutions, Ayala Museum spearheads major
artistic and cultural events for local and international
audiences. The museum promotes awareness and fosters
understanding of the rich heritage of the Filipino people through
its collection, exhibitions, and public programs.
AYALA
MUSEUM
Reach and Impact
Ayala Museum continued to establish links and partnerships
with local and international organizations to widen its
audience and present exhibitions and programs that
are fresh and relevant. Over 70,000 people visited
the museum for its exhibitions, workshops,
lectures, as well as to participate in its
educational programs and activities.
• Launched
a new audio
guide system for the
Diorama Experience,
made possible through
the financial support of the
Catawamteak Fund
• Established
the Ceramics
Study Center, which
houses a selection from
the Roberto T. Villanueva
Collection, along with
reference materials on loan
from John Forbes
12
• Featured
20 artists and
two groups at
ArtistSpace
• Held the following
shows: Monumental: Recent Work
by Arturo Luz; Pioneers of Philippine Art
(rotating exhibition); Rediscovering Romeo
Tabuena: The Later Work; Fernando Zobel
in the 1950s: The Formative Years; Romulo
Olazo: A Forty-Year Retrospective; Ring
of Fire: The First Southeast Asian
Ceramics Festival; the 42nd Shell
National Students Competition;
Architect Lor Calma: Paintings
and Sculptures; and
Pintores Mexicanos de
San Luis Potosí
• Partnered with
Ayala Land Inc. on a number
of projects including two separate
exhibitions of the latest works
of Arturo Luz and Lor Calma at
the museum lobby gallery and
at the Greenbelt Artpark; the
annual Greenbelt Summer
Art Workshops, held
at Greenbelt 5; and
Greenology, a junk-art
competition held
in Ayala malls
• Staged
art workshops
for Accenture
employees for the
second time
• Partnered
with the
Japan Foundation
to present Rakugo:
Japanese Sit-Down Comedy,
a cultural show
• Participated
in Zero In, the annual
themed event of a
consortium of five private
museums in the country,
by presenting Ring
of Fire: The First
Southeast Asian
Ceramics
Festival
• Develop and present exhibitions and educational programs
that contribute to the understanding of local art and culture while
fostering a greater sense of pride in Philippine art, creativity, and
artistry
• Continue to establish and pursue partnerships with local and
international organizations and institutions to strengthen
museum programs and diversify its audience
• Increase the number of visitors to the
museum through new and exciting public
programs
• Received grants
from the Bank of the
Philippine Islands and Shell
Philippines to publish the
exhibition catalogue for
Fernando Zobel in the
1950s: The Formative
Years
• Signed a
second five-year
memorandum of
understanding with
the National
Heritage Board of
Singapore
• Hosted
a lecture
led by John Guy,
curator of South and
Southeast Asian Art at the
Metropolitan Museum of
Art, New York
• Launched
I AM Art, a series
of Saturday arts and
crafts workshops that
were free with museum
admission
13
As
one of the
leading all-Filipiniana
libraries in the country, the
Filipinas Heritage Library (FHL)
promotes education and literacy in
Philippine history, art, and culture by
actively building its collection of books,
periodicals, and other traditional media,
while actively exploring the possibilities
offered by information and communication
technology. FHL is also actively involved
in helping Filipinos appreciate their history,
literature, and cultural heritage in the form
of workshops, lectures, exhibits, and special
events.
Filipinas
ii i
Heritage
i
Library
i
At a glance
Strategic Initiatives
• Organize a series of cultural events under
Bravo!, a festival celebrating the achievements of
Filipinos in music, film, visual art, dance, theater,
and fashion
• Help communities build or rehabilitate their
libraries through the MyLibrary program
with Chevron and Ayala Land Inc.
• Continue to develop
educational programs
in art, history, and culture for
students, teachers, librarians, and other
professionals
• Launched the official
website of Himig Collection
(www.himig.com.ph),
thus making some of the
country’s most important
musical treasures
accessible to Filipinos and
foreigners
• Developed the website
for BEZO Initiatives (www.
bezo.org.ph), which details
the cultural, socioeconomic,
and environmental activities
being implemented in Bohol
by stakeholders coming from
AFI, the community-based
BEZO Recreational and Aquatic
Activities in Bohol (BRAABO),
and the local government of
Baclayon, Bohol
• Organized two
sessions of Art
Connection, a lecture
series that aims to help
teachers enhance art
education in the country,
reaching out to 140
teachers from seven
schools
Reach and Impact
The use of information technology has
helped FHL reach out to a wider audience
than a traditional library. By making part
of its collection—particularly its photo
and music collection, as well as some of
its publications—available online, FHL
has become accessible to a greater
number of people all over the
world. Lectures, workshops, and
publications have also helped
strengthen FHL’s initiatives
for continuing education.
• Developed a
workshop series
on art, culture, and
other activities for
the Department of
Trade and Industry
• Helped stage a
performance reading
of Jose Rizal’s El
Filibusterismo and
Francisco Balagtas’s
Florante at Laura, as
well as storytelling
sessions
• Mounted
regular
photography
and writing
workshops, which
attracted over
1,000 participants
• Entered into a
partnership with
Chevron Philippines
for MyLibrary, which
seeks to establish
or rehabilitate
community libraries in
the country
• Partnered with
the National Book
Development Board in
organizing a series of
lectures on Philippine
language and
literature during Book
Development Month
• Published
three books
to promote
reading among
children and
teenagers
• 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
14
15
Center
for
Social
i Development
OPERATIONAL
Green Resources
for Environmental Education
and Networking (Ayala GREEN)
HIGHLIGHTS
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
AFI, together with other institutions with existing energy efficiency programs, advocated the use of energy-efficient
lights and air-cooling systems in the MCBD. It also conducted a study on the energy efficiency performance of 52
MCBD office buildings, the initial results of which showed how energy efficiency translates to financial savings and can
serve as a wise investment. After completing the study, AFI organized an Energy Efficiency Forum and Knowledge Sharing
for 60 MCBD building representatives.
Center
for Social
Development
(CSD)
implemented
programs and
projects related to
education, the environment,
youth development, technology
entrepreneurship, and sustainability.
For its advocacy on clean air, AFI was one of the organizers of the Third Annual Tigil Buga campaign along Ayala Avenue. Tigil Buga
encouraged motorists to shut off their engines for one minute to reduce carbon dioxide emissions. In partnership with the Makati
City Department of Environmental Services and Anti-Smoke Belching Unit, Metro Manila Anti-Smoke Belching Association, and the
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).
Ayala Social Initiatives
As convener of the Ayala Corporate Social Responsibility
(CSR) Council, Ayala Foundation Inc. (AFI) took on secretariat duties
in implementing activities under the Ayala Social Initiatives (ASI) program.
AFI oversaw the production of Pioneering for a Sustainable Future, the 2008
Ayala Sustainability Report, which followed the standards set by the Global
Reporting Initiatives (GRI). The report was released in October.
ASI supported Ayala Corporation in organizing the Ayala group’s first Sustainability Summit,
which served as platform for the promotion of the group’s sustainability efforts among its
managers and employees. Carrying the theme, Amplifying the Social and Environmental
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
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.
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.
AFI continued to draw supporters for its
properties outside Makati. A total of 1,300
P7 million, was recovered from 184 MCBD
this year were lower than in previous
market for these resources. Aside from
program in Barangay Ususan, Taguig City,
in five Ayala malls, two universities,
generated 100 tons of recyclables,
as printer toner cartridges and
junk, which came from over
estimated to be worth
1,300
tons of assorted
recyclables were
recovered from 184
MCBD buildings
SWM program in the MCBD and other Ayala
tons of assorted recyclables, worth close to
buildings. The amount of recyclables recovered
years because of the decline in the global
establishing a community-based SWM
AFI also monitored weekly recyclables fair
and subdivisions. These recyclables fairs
as well as 5,000 pieces of junk such
lead-acid batteries. The recovered
1,300 participant-sellers, was
P700,000.
205,000
16
17
A total of
200
Muslim,
Christian, and indigenous
youth attended leadership
camps
Ayala
Foundation USA
The second phase of Education and Livelihood
Skills Alliance (ELSA), a United States Agency for
International Development (USAID)–funded initiative,
continued this year. Some of ELSA’s activities included training
courses for parent–teacher associations (PTAs) in fund-raising and
resource-mobilization. Student leaders also received training in organizing
youth camps, which focus on the importance of good citizenship and community
engagement. Despite the volatile peace-and-order situation in the project sites, AFI,
through ELSA, reached officers and members of 144 PTAs, as well as 160 young leaders in
South Cotabato, Sultan Kudarat, Cotabato City, Basilan, and Tawi-Tawi.
Despite the lingering effects of the global
financial crisis, many Filipino-Americans
continued to support advocacies and fund-raising
activities of Ayala Foundation USA (AF USA).
Fund-raising events, including the highly successful Dining with
the Chefs and the benefit concert headlined by Lea Salonga, were warmly
welcomed by numerous Filipino-American organizations and individuals,
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
most significant support, with donations almost reaching $200,000.
AFI also conducted youth camps for the Cultures Across Mindanao Program of USAID,
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
camps, the first of which was held for those living in mainland Mindanao,
while the other was for those based in Basilan, Sulu, and Tawi-Tawi.
AF USA also used these fund-raising activities for disaster-relief operations, particularly
in the aftermath of typhoons Ondoy and Pepeng.
AF USA raised a
$1.42
total of
million
in donations—$1.18 million was
given as cash donations, while
$237,900 was in kind
Education and
Livelihood Skills
Alliance (ELSA)
In addition, ELSA, with the help of AFI and its partner organizations,
facilitated the distribution of storybooks and other
instructional materials to a number of
public schools in the ARMM and
Region XII.
In the next few months, AF USA sees itself transitioning into an
organization that empowers Filipino-Americans into taking active
leadership roles in the organization. AF USA will launch this
initiative in 2010.
GILAS
facilitated the
connection of an additional
415 schools to the
Internet
Gearing Up Internet Literacy and Access for
Students (GILAS)
The drive to provide all public high schools in the country access to computers and to the Internet
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
facilitated the connection of an additional 415 schools to the Internet, thus bringing the total
number of Internet-connected schools to 2,517. In addition, GILAS started using satellite technology
to bring the Internet to remote parts of the country.
Through resource leveraging and partnership building, GILAS matched the donations from local and
foreign companies and overseas Filipinos with the help of funds provided by local government units
and legislators all over the country. GILAS raised P47 milion in cash donations and over P6 million
worth of in-kind donations from the public sector, private sector, and overseas donors.
18
Text2Teach
Conceptualized in the United States and pilot-tested
in the Philippines, the technology used in Text2Teach is
now being used to improve classroom instruction in about 300
public elementary schools around the country.
In Northern Luzon, AFI led the implementation of Text2Teach’s
expansion phase. With funds from Nokia and other Text2Teach
partners as leverage, AFI successfully solicited additional financial
support from local government units. As a result, Text2Teach was
brought to 97 public elementary schools in Ilagan and Santiago
City, Isabela; Tuguegarao City, Cagayan; Vigan City and
Candon City, Ilocos Sur; Urdaneta City and Villasis,
Pangasinan; and La Trinidad, Benguet.
523
A total of
teachers from 97 public elementary
schools received training on how to use the
teaching tools, the short videos, and the
instructional guides
19
AFI gathered
73 of the country’s
most promising student
leaders for a three-day
summit
Ayala Young Leaders Congress
(AYLC)
On the 11th year of the Ayala Young Leaders Congress (AYLC), AFI gathered 73 of
the country’s most promising student leaders for a three-day summit.
There are now 798 AYLC alumni, many of whom were actively involved in a nationwide campaign to
encourage young voters to participate in the 2010 elections. The campaign, which featured short lectures
on voters’ rights and responsibilities, was carried out in over 400 schools and institutions and reached over
50,000 individuals.
AYLC alumni also actively participated in disaster-response operations in the wake of typhoons
Ondoy and Pepeng, which hit Metro Manila and Central and Northern Luzon. These relief
operations benefited 1,250 families in Rizal, Bulacan, Pampanga, and Benguet.
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
by AYLC partner colleges and universities for a
similar leadership-training program that can
be implemented at the school level.
Preparations are being made for
the formal introduction of
the program.
Ayala Technology
Business Incubator
Bohol Eco-Cultural
program
In Bohol, AFI pursued projects geared toward the sustainable
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
preserving the cultural heritage of the town, particularly in the restoration
of the Dauis church complex. AFI also provided the residents of Dauis
with technical assistance on enterprise development.
In the municipality of Baclayon, AFI worked closely with the local government
and the residents of the town for the construction of the Baclayon
Tourism Center, which now serves as the hub of the eco-cultural
tourism activities in the town, including the island of
Pamilacan.
OTHER
PROJECTS
The
Iraya Mangyan
Development 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
St. Anne to support the Amade Clinic, which sees to the daily
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.
Ayala TBI also continued to interact with its partners and supporters by holding eight Kape+Teknolohiya and
six Innovation Forums, which served as venues to discuss new technologies, markets, patents, and funding
opportunities. These forums also served as a launch pad for start-ups to present their product and services, a
venue for academics to present the results of research, and a platform for diaspora entrepreneurs and venture
capitalists to share their experience and knowledge.
The
first Green
Technology Boot Camp
(TechBootCamp) attracted
85 participants or 15
teams of three to six
members
20
The first Green Technology Boot Camp (TechBootCamp) attracted 85 participants or 15 teams of three to
six members. The three-day training program tackled issues related to environmental preservation and
sustainability, as well as opportunities for business. A total of 15 business concepts were pitched to a
panel of potential investors.
Before the end of the year Ayala TBI introduced a new track for entrepreneurship opportunities in social
enterprises, with particular focus on pervasive problems and clients who belong to the base
of the economic pyramid. Access to health care, water, and energy, which are
also Millennium Development Goals, are top priority.
Buklod
Bahayan Daycare
Center
Buklod Bahayan Daycare Center, an AFI-managed
daycare in Barangay Tartaria, Silang, Cavite, continued to serve
the community by holding daily classes and conducting supplemental
feeding for 192 children, aged 4 to 6. With the help of volunteers, AFI
organized other development activities for the children and their families,
including regular medical/dental missions.
Scholarships
were awarded to
35 high school and
11 vocational-technical
students from the
Iraya Mangyan
communities
AFI also started preparing the teachers, parents, and the homeowners’
association to assume the management of the daycare center upon its
turnover in June 2010. As part of the preparations for the turnover,
AFI helped the association formalize its registration
papers, and conducted training sessions on
project and financial management.
21
Funds Raised by GILAS
2007
2008
Funds Raised by Ayala Foundation USA
2009
2007
2008
2009
$2,266,370
$1,292,417
$1,177,162
P6,328,510
P32,750,500
P6,195,000
P47,244,646
P54,474,401
P48,799,530
Cash Donations
$242,113
$86,593
$237,900
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
39% (2,517)
Total = 6,511
61% (3,994)
Number of Internet-connected
High Schools in the Philippines
679
Recyclables Recovered
from the
Makati Central Business District
642
1,891 tons
448
333
2006
Connections made
2000–2005
facilitated by
Youth Tech
1,300 tons
2008
2009
415
2007
2000-2005
1,407 tons
2007
2008
2009
Connections made 2005–2009 facilitated by GILAS
P9,888,932
P9,269,410
P6,980,440
Total number of connected schools = 2,517
22
23
OPERATIONAL
Center
of Excellence in Public
Elementary Education
(CENTEX)
CENTEX’s
10th year also saw
its first batch of kindergarten
scholars graduate from high school.
Of the 71 students who completed
their elementary education at CENTEX
Manila in 2005, 55 became eligible
for college admission. Two of the 55,
however, opted to defer their college
enrollment due to personal financial
challenges.
HIGHLIGHTS
Through the Center of Excellence in
Public Elementary Education (CENTEX),
Ayala Foundation intensifies its advocacy
to eradicate various forms of poverty,
particularly in the area of primary
education. After a decade of existence,
CENTEX continues to provide high-quality
education to intelligent but poor children,
at a par with the kind of education
provided by the best private schools in
the country.
To
celebrate its 10th
year, CENTEX held
a special event at
Onstage Greenbelt
in March.
Key Ayala
officials,
partners, and
benefactors attended
the event.
Respected composer
Ryan Cayabyab wrote
a song especially for
the occasion,
The percentage of CENTEX
students who reached first-year
college (77 percent) was much
higher than the national average
(43 percent).
CENTEX considers developing and
nurturing partnerships as important
strategies in ensuring the success
and the sustainability of its projects.
One of the challenges is to look for
ways to ensure the continued college
education of its alumni. Thirty-three
CENTEX alumni were able to secure
college scholarships, provided by the
government, private individuals, or
the schools they enrolled in.
Partnerships
also played a
key role in helping
CENTEX-managed schools remain
competitive. Hewlett-Packard, one of
the world’s largest IT companies, helped
CENTEX Manila upgrade its computer
laboratory. The school’s computer
lab now boasts of new personal
computers, laptops,
a TouchSmart PC,
digital cameras, and
printers.
even
accompanying the
first batch of CENTEX
scholars as they
performed
the song.
nurture
24
25
The partnership with HewlettPackard continued with the launch
of My Backyard, a project that aimed
to instill environmental awareness
among Filipinos, children and adults
alike. The project also involved
clean-up drives to communicate the
serious problem of environmental
destruction and what Filipinos
can do to prevent it. Cleanup drives were conducted in
three barangays in Tondo, Manila.
Also, essays, short stories, photos,
and videos related to the project were
uploaded to the My Backyard website
(mybackyard.centexschool.org), as
well as other social-networking sites.
The United States government,
through the Department of State and
the US Embassy in the Philippines,
selected CENTEX as one
of the
educational
service providers
for the English Access
Microscholarship Program (Access).
This allowed 30 third-year high school
CENTEX alumni to study English
over two years at after-class and
summer intensive
sessions.
Feed the Future,
a month-long fund-raising
campaign was launched to ensure
that students from kindergarten
to the third grade in CENTEX Manila
receive proper nourishment.
In October, CENTEX held its annual
teacher-training program in
Antipolo, Rizal,
with a total of 75 teachers
from the two CENTEX
schools, the AFI-managed
Buklod Bahayan Daycare Center,
and Food for Hungry Minds. The
three-day training program featured
modules on “discipline with dignity”
and “brain-based education,” as well
as demonstrations featuring various
teaching applications and techniques
that can be used in the classroom.
disciplining
children with dignity
and providing techniques on
conflict resolution that could help
parents interact with their children
more constructively. About 900
parents attended the seminar.
CENTEX also reached out to the
parents of its students by
holding a seminar on the
importance of
service
26
27
AYALA MUSEUM
OPERATIONAL
HIGHLIGHTS
Partnerships and Exhibitions
Ayala
Museum, one of
the country’s leading private
museums, affirmed its commitment
to spread awareness and appreciation
of Philippine heritage by finding new ways
to educate its audience on its existing
collections and exhibitions. It also
strengthened existing partnerships
that supported its shows.
Many of the museum’s exhibitions were the result of strong and
creative partnerships with various groups and individuals
who support the museum’s initiatives in art, culture, and
history.
Ayala Land inaugurated ArtPark, located within the
Greenbelt complex, by collaborating with Ayala Museum on
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
The museum celebrated the 35th year of its famous Dioramas
on Philippine History by launching a new audio guide system.
Conceptualized by the first museum director, National Artist for
Historical Literature Carlos Quirino, the 60 dioramas on Philippine
history have been enjoyed by visitors for years.
With the support of the Catawamteak Fund, the museum recorded
narrations for each of the dioramas. The English version of the audio
guides featured the voice of broadcaster Mari Kaimo, and was launched in
July. Forty units are currently available for rental at the museum lobby.
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
Philippines provided grants that made possible the publication of the exhibition catalogue.
40
units
of audio guides are
currently available for
rental at the museum
lobby
Also in July, Ayala Museum honored Romulo Olazo, who over 40 years has produced consistently
intriguing and fresh works. The Olazo retrospective was a collaborative effort between the
museum, Azool Inc., and Paseo Gallery.
In August and September, the museum was one of the partners in the Ayala Malls
Group’s Greenology campaign, which featured a junk-art competition for
students.
A Filipino version of the guides will be available in 2010.
28
29
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
5 years, between AFI and
Singapore NHB was signed
Historian and professor Ambeth Ocampo, chair of the National Historical Institute,
delivered a lecture on precolonial Philippine history in November. His lecture
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
(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
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
signed in October during the opening reception of Land of the
Morning: The Philippines and Its People. The memorandum of
understanding covers five years.
The museum was also one of the partners in the 42nd
National Students Art Competition held by Shell
Philippines in October.
2009
70,041
2008
63,135
2007
59,830
30
31
FILIPINAS HERITAGE LIBRARY
OPERATIONAL
Also featured in the website
are the “Gems of Philippine
Music,” a collection of 250 songs
considered most representative
of the Filipino character and spirit.
Short descriptions, excerpts from
music scores, and audio snippets
of melodic lines are available for
these gems.
HIGHLIGHTS
As
it affirms its
commitment to the cultural
development of the nation, the Filipinas
Heritage Library (FHL) continues to make its
collection of books, documents, and multimedia
materials relevant and accessible to researchers on
Philippine history, art, and culture. FHL also explores
various ways to bring our country’s historical and cultural
heritage closer to the public, through educational programs,
cultural events, and publications. Many of these projects are
accomplished in partnership with individuals, institutions, and
other supporters.
FHL remains an important one-stop electronic research
center on Philippine history, art, and culture. A total of
1,909 visitors came to the library during the year—
1,370 of whom were individual researchers, while
the remaining 539 were tour participants. In
addition, 192 persons registered as library
members and came to the library
regularly.
A total of
1,909
researchers and
tour participants came to FHL
in 2009
Websites
FHL’s
online
presence
strengthened, as the websites it
manages continue to attract readers from
different parts of the world. Its main website,
www.filipinaslibrary.org.ph, received a total of 51,973
hits during the year.
The official website of the library’s Himig Collection, www.himig.com.ph,
was launched in December. This website serves as a gateway to the digital
versions of the library’s collection of more than 1,000 vintage vinyl recordings of
original Filipino music. Aside from being an online catalogue of the collection, the website
also features a gallery of album cover art, as well as short articles on Philippine music history
and biographical notes on important Filipino composers.
32
At present, the library has
digitized 2,572 songs
from
its
Himig
Collection. FHL
also continued
to convert more
materials
from Retrato,
its collection
of
vintage
Philippine
photographs. To
date, 3,186 photos
from Retrato were
converted to digital
format.
Educational Programs
FHL believes in the important role
of education in forming a new
generation of Filipinos who have
an understanding of their heritage.
Teachers contribute significantly
to molding the minds of the youth,
which is why FHL has come up
with teacher-training programs.
One of these is ArtConnection,
which is conducted in partnership
with the League of Corporate
Foundations and aims to sharpen
teachers’ skills in teaching art,
history, culture, and literature.
Started in 2008, ArtConnection has
so far reached over 1,000 teachers.
To ensure that the training received
by teachers through ArtConnection
is reinforced, a draft version of
the ArtConnection resource book
was released to teachers from
participating schools.
In partnership with the Department
of Trade and Industry (DTI), FHL
designed 38 workshops for DTI
employees. These workshops—
running the gamut from history,
art, literature, environmental
preservation, dance, to martial
arts—helped DTI in its pursuit to
help its staff become fully rounded
individuals.
The library also conducted writing,
storytelling, and photography
workshops in Metro Manila and
other locations during the year. A
total of 24 writing and storytelling
workshops were organized
under the leadership of
the library’s external
communities
department
during the year,
attracting young
children and
their parents,
students, and
professionals
from different
parts of Metro
Manila. Meanwhile,
The Alcove, FHL’s
photography
gallery,
conducted 25 photography
workshops and mounted six
exhibits.
Publications
As part of its mission to promote
a love of reading in the country,
particularly among children
and adolescents, FHL published
three books during the year.
Wigan Becomes a Sculptor and
Tominaman sa Rogong Becomes
a Painter are children’s books that
tell the story of Philippine art, as
seen through the myths of Filipino
ethnic groups. A book for young
adults, Displaced, was published
in cooperation with Adarna House.
FHL continued to serve as the
editorial office of Ayala Now, the
official newsletter of the Ayala
group of companies. Ayala Now,
published six times a year and
produced in cooperation with
representatives from different
Ayala companies, underwent a
major redesign during the year to
celebrate Ayala Corporation’s 175th
anniversary. FHL helped Ayala
Corporation produce Ayala@175, a
special commemorative magazine
for the anniversary celebrations.
33
Special Events
FHL was also actively involved in the writing, design, editing, and printing of Pioneering for a Sustainable Future, Ayala Corporation’s first
conglomerate-wide sustainability report.
FHL’s Ayala Memory unit, in cooperation with BEZO Initiatives, edited and printed Manila Observatory’s Sustainable
Development Guidebook for the Municipality of Baclayon, which
examines the geography, both physical and social, of
the town of Baclayon, Bohol, so that the municipal
government can have a guide in developing its disasterpreparedness programs.
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
different stakeholders who are all committed to the cultural, environmental, and socioeconomic development of the towns of Baclayon
and Dauis.
In May, the 2007 Ayala Foundation annual report received a silver award for annual or biennial reports from the United States–based Council
of Foundations, which administers the annual Wilmer Shields Rich Awards. The annual report was produced under the leadership of FHL.
FHL
and NBDB
staged a performance
reading of Francisco
Balagtas’s classic Florante
at Laura at TriNoma
34
FHL’s involvement in various activities that promote Philippine culture and history was particularly strong during the year. In February,
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
and emerging writers, a book exhibit, and performances.
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
activities for Transitio 1945, a multimedia memorial held at the historic Fort Santiago in March.
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.
As part of the celebration of the 17th National Children’s Book Day spearheaded by the Philippine Board on
Books for Young People, FHL organized a children’s book fair at TriNoma in July. The book fair served as a showcase of Philippine
children’s literature. It also encouraged children to read more.
FHL’s partnership with the National Book Development Board (NBDB) continued during the year. FHL and NBDB staged a performance
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.
The library also supported the NBDB in holding academic publishing seminars and book fairs in Baguio City and Davao City. The seminar
invited key players in the local publishing industry to encourage academic institutions to set up their own publishing arms.
In celebration of the 13th Philippine Book Development Month in November, FHL served as a venue and partner in a series of activities
that carried the theme, Galing Pinoy, Basahin!
35
Filipinas Heritage Library
Visitorship
This year’s celebration brought attention to the works of Filipino
writers, particularly the works of National Artist for Literature
Nick Joaquin, and those of international-award-winning authors.
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
published books for children, books on art, Philippine literature,
as well as rare books. Also exhibited were paintings, illustrations,
photographs, and crafts and accessories by local artists.
At
present, the
library has digitized
2,572 songs from its
Himig Collection
Also part of the Books and Arts Fest was a performance reading
of Jose Rizal’s El Filibusterismo. A sequel to the marathon
reading of Noli Me Tangere held in 2008, the El Filibusterismo
performance reading showcased performers and writers
interpreting chapters from one of the country’s most important
literary works.
1,370
2009
539
3,186
photos from Retrato
were converted to digital
format
964
2008
658
1,216
2007
935
Researchers
Tour Participants
36
37
1. The Ayala
Museum’s Gold of
Ancestors exhibition is
one of the most important
exhibitions of ancestral gold
in the world. What prompted
the Ayala Museum to put
on this exhibition?
When
the
Ayala Museum was
given custody of this collection, we
immediately recognized its significance. The
gold artifacts that comprise the collection provide
us with a picture of how the precolonial Filipino lived,
and therefore answer important questions related to Filipino
history, culture, and identity. We knew that the collection would
draw Filipinos who wish to understand their history and heritage
better, as well as foreigners and scholars who would like to investigate
the collection’s impact on Philippine and world history.
This exhibition is also key to the redevelopment of our fourth-floor galleries
that began in 2007 and was completed in 2008. Together with the loan
exhibitions A Millennium of Contact: Chinese and Southeast Asian Trade
Ceramics in the Philippines from the Roberto T. Villanueva Foundation
and Embroidered Multiples: 18th–19th Century Philippine Costumes
from the National Museum of Ethnology in Leiden, The Netherlands,
these exhibitions are an extraordinary part of the narrative of
our country’s history and cultural development. A visit to
the museum covers our precolonial past to Philippine
colonial society, from the Diorama Experience to
20th-century Philippine art, and to changing
exhibitions of contemporary local and
international art.
2. Please
share with us the
kinds of response that
the exhibition has received
from students, educators,
tourists, scholars, and
other visitors.
We find it pleasing
when museum guests and
visitors tell us they are impressed by
the exhibition design, or that they enjoy
the introductory film. But what satisfies us
immensely are the reactions that we receive
from students and young people, who after going
through this unique exhibition say that we have
helped them see Filipino history and culture in a
new light. More importantly, hearing them say
that the exhibition has helped them become
more proud of being Filipinos shows us that
we have done something significant
and lasting for the Filipino
youth.
3. How
would you assess
the impact of Gold of
Ancestors (and the rest of
the Crossroads of Civilization
exhibition) on the way
Filipinos understand their
history, identity, and
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 goldworking 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
Southeast Asian cultures.
Q and A
with
Victoria P. Garchitorena,
President
38
Ayala Foundation
will be publishing an exhibition
catalogue on Gold of Ancestors in
2010. The book will be enormously helpful
in promoting Filipinos’ appreciation of the
fact that we have precolonial ancestors who
lived in highly developed societies. The book will
also serve as tangible proof that the Philippines
achieved a high level of civilization before the
Spaniards came. Ayala Museum has also been
coordinating with the history departments
of universities and colleges to ensure that
teachers include a visit to the gold
collection in their curriculum.
4. What
steps is the Ayala
Museum taking to
make sure that the Gold
of Ancestors exhibition
reaches more
Filipinos?
39
The
p a s t
48 years of
Ayala Foundation
Inc.
have
been
characterized
by
its
capacity and readiness to
adapt to the changing times
and the needs of the communities
it serves. In 2010, we at AFI yet again
face the challenge of further improving
ourselves, so we can stay true to our mission
of contributing to the eradication of poverty in
its myriad forms.
We are realigning some of our organization’s
activities, so that there will be greater synergy in our
various programs. The “3Es” of education, environment,
and entrepreneurship—which we have used as a guiding
force behind the development and implementation of our
projects—are now expanding to cover more ground, and
to achieve greater reach and impact. Now, AFI has greater
resolve in working in five major mission areas—education;
environment; entrepreneurship; history, arts, and culture;
and community development.
The Year
Ahead
The Center of Excellence in Public Elementary Education
(CENTEX), one of our key educational endeavors, stays true
to its mission of providing high-quality public elementary
education, while finding ways to ensure that these students
also get good secondary and tertiary education. In addition,
CENTEX’s holistic view of child development encourages
us to continue our efforts in feeding (as in our Feed the
Future program for CENTEX students), parent training,
and teacher training.
The multi-stakeholder initiatives in which we play an
active role—Text2Teach, Education and Livelihood
Skills Alliance (ELSA), and Gearing up Internet
Literacy and Access for Students (GILAS)—will
continue to strengthen their fund-raising
capacities, so we can reach our
targets:
bring
Text2Teach
to 150 public elementary
We are
schools, provide training
realigning some
for 147 youth leaders in
of our organization’s
Mindanao, and connect at
activities, so that there
least 360 more public
will be greater synergy
high schools to the
in our various
Internet.
programs.
40
The Ayala Young Leaders’
Congress (AYLC), meanwhile, aside from
conducting the annual leadership camp, aims to
ensure its continued relevance by strengthening its alumni
network in outreach activities, as well as reaching out to more
schools and educational institutions.
One of
the more exciting
changes that we are
implementing in AFI
is the expansion of
our environmental
advocacies.
One of the more exciting changes that we are implementing in AFI is the
expansion of our environmental advocacies. This year, we are establishing an
integrated environment and sustainability division. We are going beyond our
highly successful solid-waste management program to implement programs in clean
water, clean air, and energy efficiency. In relation to sustainability, AFI will continue to play a
pivotal role in Ayala Social Initiatives (ASI), the Ayala group’s flagship sustainability program. After
facilitating the publication of the Ayala group’s first conglomerate-wide sustainability report in 2009,
as well as assisting in the holding of the group’s first Sustainability Summit, AFI will be involved in the
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.
Another important development within AFI is the expansion of our entrepreneurship programs. Through the
Ayala Social Enterprise Accelerator Program, AFI’s entrepreneurship programs are now seeking “innovative
solutions to critical social problems.” Aside from promoting the growth of technology start-ups, through our
Technology Business Incubators, we will now also focus
on entrepreneurship programs that
address the following pressing problems—public
health, with special attention to
Another
rural health care; clean, safe drinking water; and
renewable energy.
important
development within
Our initiatives on history, art, and culture—as
led by the Ayala Museum and
AFI is the expansion of
the Filipinas Heritage Library (FHL)—will
continue to expand their reach.
our entrepreneurship
Aside from fresh exhibitions, publications,
and public activities held in the
programs.
museum and the library, we will continue to
reach out to as many Filipinos,
in different parts of the country, as possible. In
cooperation with the Ayala group,
we are embarking on a major art and history
advocacy program in 2010. Called
Bravo! Celebrating the Filipino, this program will
involve public performances and shows
that run the gamut of the great Filipino art forms—music,
dance, film, fashion, photography, painting,
and sculpture. In addition, FHL will continue with its MyLibrary program, which helps build or improve library
facilities in various communities, as well as promote the importance of reading among children and adults.
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
over our projects to local government units. In Mindoro, AFI will continue its mission of providing education,
entrepreneurial training, and eco-tourism-related capacity-building initiatives for the Iraya Mangyan. Lastly,
we are preparing to turn over the Buklod Bahayan Daycare Center in Cavite to the community this year.
AFI has not forgotten the disasters that struck the country in 2009. And so together with 14 other
organizations, AFI will be actively involved in Project Noah’s Ark, a nationwide disaster preparedness
program. Through Project Noah’s Ark, AFI aims to help identify and develop suitable evacuation
centers in high-risk areas. Aside from building safe and hygienic evacuation facilities, Project
Noah’s Ark will also be providing training in disaster preparedness, developing guidelines
O u r
for disaster response, seeking the active participation of community members, and
community
setting up early warning systems.
development
programs will remain
We at AFI remain confident that our various stakeholders and partners will continue
committed to providing
to support our efforts, as we continue to evolve as an organization. And as we look
technical assistance to
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
2009 Board of Trustees
FERNANDO ZOBEL DE AYALA
Co–Vice Chairman of the Board
and Executive Committee
JAIME ZOBEL DE AYALA
Chairman of the Board
and Executive Committee
VICTORIA GARCHITORENA
President
JAIME AUGUSTO ZOBEL DE AYALA II
Co–Vice Chairman of the Board
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
42
ANTONINO AQUINO
Member of the Board of Trustees
JOSE TEODORO LIMCAOCO
Member of the Board of Trustees
43
Ayala Foundation, Inc.
Management and Staff
STATEMENT OF MANAGEMENT’S RESPONSIBILITY
FOR FINANCIAL STATEMENTS
(As of December 2009)
The management of Ayala Foundation, Inc. is responsible for all information and
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
ended December 31, 2009, and the summary of significant accounting policies and other
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
informed judgment of management with an appropriate consideration to materiality.
Jaime Zobel de Ayala
Chairman
Fernando Zobel de Ayala
Jaime Augusto Zobel de Ayala
Co–Vice Chairmen
Victoria P. Garchitorena
President
Center for Social Development
Mario A. Deriquito
Director
Guillermo M. Luz
Executive Vice President
Center
of Excellence in Public
Elementary Education
Dino Rey Abellanosa • Tita Aquino • Mercedes Barcelon • Julie Bergania
Chiara Cruza • Ma. Sergia Rosario Catangay • Adelia Licos • Cecilia Palma
Joseph Anthony Quesada • Tito Gonzalo Rivera • Archimedes Velasco
Managers
Mary Grace Abdon • Joysen Accad • Jerry Akut • Bayani Alonto Jr. • Joneil Ano
Meriam Badal • Mary Rose Erika Barja • Ma. Paz Baylon • Steffi Borromeo
Rodford Bucalon • Leopoldo Cailing II • Thello Jay Cardente • Paul Michael Castillo
Edward Dawatan • Florence Ann de Castro • Mariel Carla de Jesus
Kristine de la Cruz • Ireneo Demecais Jr. • Rizalyn Escovidal
John Christopher Paul Gulay • Ana Ciaren Hipolito • Sanima Kamenza
Jennifer Ligutom • Henry Lu • Samuel Macagba III • Abdulnasser Macarimbang
Dennis Mateo • Joseph Navarro • Mildred Ople • Mary Grace Parungao
Baby Zainab Penit • Sajid Peuto Jr. • Marrites Potenciano • Pureza Platon
Pepito Rabago • Ma. Carmela Anna Saavedra • Fernand Saldo
Celfredo Sanson • Glady Serrano • Hannah Vina Traviña
Romulo Valientes Jr. • Jo Anne Villarosa • Melissa Yamson
Maricar Yulo
Staff
Ramon R. Miranda
Director
Mariecar Fernando • Desiree Garcia
Christine Joy Sarigumba
Staff
In this regard, management maintains a system of accounting and reporting which provides for
the necessary internal controls to ensure that transactions are properly authorized and
recorded, assets are safeguarded against unauthorized use or disposition and liabilities are
recognized.
The President and Chief Financial Officer review the financial statements before such
statements are approved and submitted.
SyCip Gorres Velayo & Co., the independent auditors appointed by the Board of Trustees, has
audited the financial statements of the Ayala Foundation, Incorporated in accordance with
Philippine Standards on Auditing and has expressed their opinion on the fairness of
presentation upon completion of such audit, in the attached report.
Filipinas Heritage Library
Ma. Antonia C. Ortigas
Director
Suzanne Yupangco
Deputy Director
JAIME ZOBEL DE AYALA
Chairman
Graciela Cayton • Alexander Gregorio II
Managers
Office of the President
Sarah Sevilla
Ayala Museum
Ma. Antonia C. Ortigas
Director
Kenneth Esguerra • Ma. Bernadette Samson
Rinnah Sevilla • Aprille Tijam • Judy Villacruz
Managers
Miguel Carlos Acosta • Maria Loreta Busto
Claire Julia Cruz • Roland Cruz • Paula Nikola Fernandez
Valerie Floro • Jo Ann Gando • Justin Dominic Gatuslao
Ma. Elena Malgapo • Marinella Andrea Mina
Rosalinda Navera • Niño Charls Oliveros
Duffie Alejandrino Felizardo Osental • Antonio Par
Ma. de las Nieves Pedraja • Elena Robles
Pablo Ruiz • Therese Marie Sunga
Arnold Torrecampo
Staff
Office of the
Executive Vice President
Maureen Bañaga
Victor Philip Mariano
Jhoanne Abubakar • Anne Marie Alim • Jennifer Bascoguin
Cecilia Cruz • Faye Johanna Cura • Marjorie de Asis
Jin Paul de Guzman • Gilbert de Jesus • Rosemarie Figuerres
Micaella Angelica Gonzalez • Maria Cecilia Ingusan
Jose Reginald Juanico • Mary Clare Lambino
Arnaldo Legaspi • Jaime Martinez
Mary Rose Raguindin • January Salvador
Staff
Finance
and Corporate Services
VICTORIA P. GARCHITORE
GARCHITORENA
President
WILMA P. ZAPATA
Chief Financial Officer
Wilma P. Zapata
Director and Chief Financial Officer
Patricia Adrias • Jose Barcelona • Araceli Oasan
Managers
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
44
45
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
INDEPENDENT AUDITORS’ REPORT
-2-
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial
position of Ayala Foundation, Inc. as of December 31, 2009 and 2008, and its financial activities
and its cash flows for the years then ended in accordance with Philippine Financial Reporting
Standards.
The Board of Trustees
Ayala Foundation, Inc.
10th Floor, BPI Main Building
Ayala Avenue corner Paseo de Roxas
Legaspi Village, Makati City
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
explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with Philippine Financial Reporting Standards. This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation
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.
SYCIP GORRES VELAYO & CO.
Jessie D. Cabaluna
Partner
CPA Certificate No. 36317
SEC Accreditation No. 0069-AR-2
Tax Identification No. 102-082-365
PTR No. 2087369, January 4, 2010, Makati City
March 3, 2010
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.
accomplish
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cel
aim
46
evolve
ev
evo
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vo
olve
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create
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47
Current Assets
Cash and cash equivalents (Notes 4 and 12)
Receivables - net (Notes 5 and 12)
Merchandise inventories
Other current assets (Note 6)
Total Current Assets
Noncurrent Assets
Property and equipment - net (Note 7)
Available-for-sale financial assets (Notes 8 and 12)
Total Noncurrent Assets
LIABILITIES AND NET ASSETS
Net Assets
Unrestricted (Note 11)
Temporarily restricted (Note 11)
Permanently restricted (Note 11)
Unrealized losses on available-for-sale financial assets
(Note 8)
Total Net Assets
48
P
= 98,960,948
P
= 63,739,673
Noncurrent Liability
Pension liability (Note 10)
Total Liabilities
2,188,659
101,149,607
2,471,331
66,211,004
136,707,864
398,626,256
522,150,995
(1,817,599)
135,368,659
265,911,817
525,997,763
(94,430,053)
1,055,667,516
P
= 1,156,817,123
832,848,186
P
= 899,059,190
aim
evolve
ev
evo
e
vo
olve
lve
lve
See accompanying Notes to Financial Statements.
122,367,671
10,346,768
–
132,714,439
265,911,817
P
= 398,626,256
–
1,339,205
135,368,659
P
= 136,707,864
–
843,106
–
4,632,357
5,475,463
7,839,205
(6,500,000)
218,331,189
2,473,886
23,807,233
–
244,612,308
See accompanying Notes to Financial Statements.
Excess of revenue, gains and other supports over
expenses and losses (expenses over revenues)
Fund disbursement / allocation
Net unrealized gains (losses) for the year recognized in
net assets (Note 8)
CHANGES IN NET ASSETS
NET ASSETS AT BEGINNING OF YEAR
NET ASSETS AT END OF YEAR
Expenses and losses
Project (Note 11)
Investment
General and administrative (Note 11)
Net loss from other activities (Note 13)
P
= 328,951,895
12,400,905
2,515,716
38,744
(216,064,125)
127,843,134
–
(3,846,768)
525,997,763
P
= 522,150,995
–
(3,846,768)
–
–
–
–
–
P
=–
–
–
–
–
–
130,206,876
–
218,331,189
3,316,992
23,807,233
4,632,357
250,087,771
P
= 328,951,895
48,788,292
2,515,716
38,744
–
380,294,647
92,612,454
92,612,454
92,612,454
222,819,330
(94,430,053)
832,848,186
(P
= 1,817,599) P
= 1,055,667,516
–
–
–
–
–
–
–
P
=–
–
–
–
–
–
427,542
(3,846,768)
–
20,821,466
–
4,986,742
25,808,208
P
= 294,439,671
18,569,865
2,439,054
46,421
(289,259,261)
26,235,750
–
3,846,768
–
–
–
–
–
P
=–
–
–
–
–
–
Permanently
Restricted
(Note 11)
–
–
–
(16,099,683)
(3,419,226)
3,846,768
151,468,342
269,331,043
522,150,995
P
= 135,368,659 P
= 265,911,817 P
= 525,997,763
(16,099,683)
–
280,828,751
14,264,303
25,321,786
–
320,414,840
P
=–
12,721,784
–
2,334,112
289,259,261
304,315,157
Unrestricted
(Note 11)
ASSETS
2009
Total
(136,288,704)
(136,288,704)
41,858,651
(P
= 94,430,053)
–
–
–
–
–
–
–
P
=–
–
–
–
–
–
2008
Total
(136,288,704)
(151,960,845)
984,809,031
P
= 832,848,186
(15,672,141)
–
280,828,751
35,085,769
25,321,786
4,986,742
346,223,048
P
= 294,439,671
31,291,649
2,439,054
2,380,533
–
330,550,907
STATEMENTS OF FINANCIAL POSITION
P
=–
36,387,388
–
–
216,064,125
252,451,513
Unrestricted
(Note 11)
December 31
2009
2008
Unrealized
Losses on
AFS
Financial
Assets
(Note 8)
(A Nonstock, Not-for-Profit Organization)
Revenue, gains and other supports
Public support
Investment
Project
Others
Net assets released from restrictions (Note 11)
STATEMENTS OF ACTIVITIES
(A Nonstock, Not-for-Profit Organization)
Temporarily
Restricted
(Note 11)
Current Liability
Accounts and other payables (Notes 9 and 12)
Permanently
Restricted
(Note 11)
183,518,169
608,243,559
791,761,728
P
= 899,059,190
Temporarily
Restricted
(Note 11)
173,367,083
894,487,211
1,067,854,294
P
= 1,156,817,123
Years Ended December 31
P
= 56,948,377
33,146,215
12,847,654
4,355,216
107,297,462
Unrealized
Losses on
AFS
Financial
Assets
(Note 8)
P
= 45,427,232
25,568,797
13,708,453
4,258,347
88,962,829
AYALA FOUNDATION, INC.
AYALA FOUNDATION, INC.
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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
CASH FLOWS FROM OPERATING ACTIVITIES
Changes in net assets
Adjustments for:
Depreciation and amortization (Note 7)
Recovery of impairment losses (Note 5)
Provision for impairment losses (Notes 5 and 11)
Investment loss (income)
Net unrealized (gains) losses on AFS financial assets
Changes in net assets before changes in working capital
Decrease (increase) in:
Receivables
Merchandise inventories
Other current assets
Increase (decrease) in:
Accounts and other payables
Pension liability
Net cash provided by operating activities
P
= 222,819,330
11,973,056
(1,160,273)
226,008
3,794,120
136,288,704
(839,230)
11,712,515
(860,799)
96,869
35,454,665
(329,167)
1,838,783
35,221,275
(282,672)
145,312,854
(2,329,574)
543,173
34,338,650
(193,631,198)
(4,539,004)
41,336,203
(156,833,999)
10,453,456
(22,645,315)
2,006,740
(10,185,119)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
(11,521,145)
24,153,531
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR
56,948,377
32,794,846
P
= 45,427,232
P
= 56,948,377
CASH AND CASH EQUIVALENTS AT END
OF YEAR (Note 4)
Ayala Foundation, Inc. (the Foundation) was registered with the Securities and Exchange
Commission (SEC) on December 28, 1961 as a nonstock, not-for-profit organization
primarily for the following purposes:
(P
= 151,960,845)
14,690,090
–
–
(45,471,300)
(92,612,454)
99,425,666
CASH FLOWS FROM INVESTING ACTIVITIES
Net disposals (additions) to AFS financial assets
Net additions to property and equipment (Note 7)
Interest received
Net cash used in investing activities
1. Organization and Tax Exemption
a. To function and operate as a private science and research foundation;
b. To provide financial support or scholarships;
c. To undertake ventures together with organized rural communities for the transfer of
appropriate technologies;
d. To undertake integrated community organization and development programs;
e. To encourage the establishment of urban and rural micro, cottage and small enterprises
as a means of creating employment among the poor;
f.
To undertake social services; and
g. To preserve and enhance Philippine arts and culture as a means of developing national
pride and patriotism.
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
Internal Revenue Code (NIRC) as amended by Executive Order (E.O.) 273. The Foundation
has been certified as an entity organized for scientific advancement and that its funds are
dedicated to scientific pursuits within the meaning of Section 24 of Republic Act No. 2067,
as amended.
The Foundation is registered with the Bureau of Internal Revenue (BIR) as a donee
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
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.
See accompanying Notes to Financial Statements
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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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
financial statements with a securities commission or similar party.
Summary of Significant Accounting Policies
Basis of Preparation
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
Foundation’s presentation and functional currency is the Philippine Peso (P
= ).
•
Amendment to PAS 1, Presentation of Financial Statements
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
may choose to present all items in one statement, or to present two linked statements, a
separate statement of income and a statement of comprehensive income. This Amendment
also requires additional requirements in the presentation of the balance sheet and equity as well
as additional disclosures to be included in the consolidated financial statements. Adoption of
this Amendment did not have significant impact on the financial position or performance of the
Foundation.
•
Amendments to Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives, and
PAS 39, Financial Instruments: Recognition and Measurement
This Amendment to Philippine Interpretation IFRIC 9 requires an entity to assess whether an
embedded derivative must be separated from a host contract when the entity reclassifies a
hybrid financial asset out of the fair value through profit or loss category. This assessment is to
be made based on circumstances that existed on the later of the date the entity first became a
party to the contract and the date of any contract amendments that significantly change the
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
through profit or loss. Adoption of the amendment did not have a significant impact on the
financial statements of the Foundation.
Consistent with the requirement of Philippine Accounting Standard (PAS) 8, Accounting Policies,
Changes in Accounting Estimates and Errors, the Foundation applied Statement of Financial
Accounting Standards No. 117, Financial Statements of Not-for-Profit Organizations. This
Statement establishes standards for general-purpose external financial statements provided by a
not-for-profit organization. It specifies that those statements include a statement of financial
position, a statement of activities and a statement of cash flows.
Statement of Compliance
The accompanying financial statements have been prepared in compliance with Philippine Financial
Reporting Standards (PFRS).
Adoption of New and Amended Accounting Standards and Interpretations
The accounting policies adopted in the preparation of the Foundation’s financial statements are
consistent with those of the previous financial year except for the adoption of the following
Philippine Interpretations of International Financial Reporting Interpretations Committee (IFRIC)
interpretations and amendments to existing standards which became effective on January 1, 2009.
•
Amendments to PFRS 7, Financial Instruments: Disclosures - Improving Disclosures about
Financial Instruments
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
financial instruments to be disclosed by the source of inputs, using the following three-level
hierarchy: (a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level
1); (b) inputs other than quoted prices included in Level 1 that are observable for the asset or
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).
The level within which the fair value measurement is categorized must be based on the lowest
level of input to the instrument’s valuation that is significant to the fair value measurement in its
entirety.
Improvements to PFRS
In April 2009, the International Accounting Standards Board issued its omnibus of amendments to
certain standards, primarily with a view to removing inconsistencies and clarifying wordings. There
are separate transitional provisions for each standard:
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:
(a) exclusion of derivative liabilities from maturity analysis unless the contractual maturities are
essential for an understanding of the timing of the cash flows and (b) inclusion of financial
guarantee contracts in the contractual maturity analysis based on the maximum amount
guaranteed.
•
PFRS 8, Operating Segments
It will replace PAS 14, Segment Reporting, and adopts a full management approach to identifying,
measuring and disclosing the results of an entity’s operating segments. The information
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
different from that reported in the consolidated balance sheet and consolidated statement of
income and the Foundation will provide explanations and
•
PFRS 2, Share-based Payment
It clarifies that the contribution of a business on formation of a joint venture and combinations
under common control are not within the scope of PFRS 2 even though they are out of scope of
PFRS 3, Business Combinations. The amendment is effective for financial years on or after July 1,
2009.
•
PFRS 5, Noncurrent Assets Held for Sale and Discontinued Operations
It clarifies that the disclosures required in respect of non-current assets and disposal groups
classified as held for sale or discontinued operations are only those set out in PFRS 5. The
disclosure requirements of other PFRSs only apply if specifically required for such non-current
assets or discontinued operations.
•
PFRS 8, Operating Segment Information
It clarifies that segment assets and liabilities need only be reported when those assets and
liabilities are included in measures that are used by the chief operating decision maker.
•
PAS 1, Presentation of Financial Statements
It clarifies that the terms of a liability that could result, at anytime, in its settlement by the
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
It explicitly states that only expenditure that results in a recognized asset can be classified as a
cash flow from investing activities.
•
PAS 17, Leases
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
classified as either ‘finance’ or ‘operating’ in accordance with the general principles of PAS 17.
The amendments will be applied retrospectively.
•
PAS 18, Revenue
The amendment adds guidance (which accompanies the standard) to determine whether an
entity is acting as a principal or as an agent. The features to consider are whether the entity: (a)
has primary responsibility for providing the goods or service; (b) has inventory risk;
(c) has discretion in establishing prices; and (d) bears the credit risk.
•
PAS 36, Impairment of Assets
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
purposes.
•
PAS 38, Intangible Assets
It clarifies that if an intangible asset acquired in a business combination is identifiable only with
another intangible asset, the acquirer may recognize the group of intangible assets as a single
asset provided the individual assets have similar useful lives. Also clarifies that the valuation
techniques presented for determining the fair value of intangible assets acquired in a business
combination that are not traded in active markets are only examples and are not restrictive on
the methods that can be used.
•
PAS 39, Financial Instruments: Recognition and Measurement - Eligible Hedged Items
It clarifies the following: (a) that a prepayment option is considered closely related to the host
contract when the exercise price of a prepayment option reimburses the lender up to the
approximate present value of lost interest for the remaining term of the host contract; (b) that
the scope exemption for contracts between an acquirer and a vendor in a business combination
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
or losses on cash flow hedges of a forecast transaction that subsequently results in the
recognition of a financial instrument or on cash flow hedges of recognized financial instruments
should be reclassified in the period that the hedged forecast cash flows affect profit or loss.
•
Future Changes in Accounting Policies
The Foundation will adopt the following standards and interpretations enumerated below when
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
financial statements.
Effective in 2010
•
Philippine Interpretation IFRIC 18, Transfers of Assets from Customers
This Philippine Interpretation is to be applied prospectively to transfers of assets from customers
received. It also provides guidance on how to account for items of property, plant and equipment
received from customers or cash that is received and used to acquire or construct assets that are
used to connect the customer to a network or to provide ongoing access to a supply of goods or
services or both. When the transferred item meets the definition of an asset, the asset is
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
each identifiable service.
•
Revised PFRS 3, Business Combinations and PAS 27, Consolidated and Separate Financial
Statements
The revised PFRS 3 introduces a number of changes in the accounting for business combinations
that will impact the amount of goodwill recognized, the reported results in the period that an
acquisition occurs, and future reported results. The revised PAS 27 requires, among others, that
(a) change in ownership interests of a subsidiary (that do not result in loss of control) will be
accounted for as an equity transaction and will have no impact on goodwill nor will it give rise to
a gain or loss; (b) losses incurred by the subsidiary will be allocated between the controlling and
noncontrolling interests (previously referred to as ‘minority interests’), even if the losses exceed
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
recognized on disposal. The changes introduced by the revised PFRS 3 must be applied
prospectively, while changes introduced by the revised
PAS 27 must be applied retrospectively with a few exceptions. The changes will affect future
acquisitions and transactions with noncontrolling interests. The Foundation has concluded that
the amendment will have no impact on the financial position or performance of the Foundation.
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid
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
value.
Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives
It clarifies that it does not apply to possible reassessment at the date of acquisition, to
embedded derivatives in contracts acquired in a business combination between entities or
businesses under common control or the formation of joint venture.
Financial Instruments
Date of recognition
The Foundation recognizes a financial asset or a financial liability in the statement of financial
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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AFS financial assets
AFS financial assets are those which are designated as such or do not qualify to be classified as
designated as securities at FVPL, HTM investments, or loans and receivables. They are purchased
and held indefinitely, and may be sold in response to liquidity requirements or changes in market
conditions. AFS financial assets include equity investments.
Initial recognition of financial instruments
All financial assets and financial liabilities are initially recognized at fair value. Except for financial
assets and financial liabilities at FVPL, the initial measurement of financial instruments includes
transaction costs. The Foundation classifies its financial assets in the following categories: financial
assets at FVPL, held-to-maturity (HTM) investments, AFS financial assets, and loans and receivables.
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
liabilities incurred and whether they are quoted in an active market. Management determines the
classification of its investments at initial recognition and, where allowed and appropriate, reevaluates such designation at every reporting date.
After initial measurement, AFS financial assets are measured at fair value. The unrealized gains and
losses arising from the fair valuation of AFS financial assets are excluded from reported earnings
and are reported as “Unrealized gains (losses) on AFS financial assets” in the statement of activities.
When the security is disposed of, the cumulative gain or loss previously recognized in equity is
recognized in the reported income. Where the Foundation holds more than one investment in the
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.
Dividends earned on holding AFS financial assets are recognized in the statement of activities when
the right of the payment has been established. The losses arising from impairment of such
investments are recognized in the statement of activities.
The Foundation has no financial assets and financial liabilities designated as at FVPL and HTM
investments as of December 31, 2009 and 2008.
Determination of fair value
The fair value for financial instruments traded in active markets at the reporting date is based on
their quoted market price or dealer price quotations (bid price for long positions and ask price for
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
long as there has not been a significant change in economic circumstances since the time of the
transaction.
When the fair value of AFS financial assets cannot be measured reliably because of lack of reliable
estimates of future cash flows and discount rates necessary to calculate the fair value of unquoted
equity instruments, these investments are carried at cost, less any allowance for impairment losses.
Other financial liabilities
Other financial liabilities pertain to issued financial instruments that are not classified or designated
at FVPL and contain contractual obligations to deliver cash or other financial assets to the holder or
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
subsequently measured at amortized cost using the effective interest rate method. Amortized cost
is calculated by taking into account any discount or premium on the issue and fees that are an
integral part of the effective interest rate.
For all other financial instruments not listed in an active market, the fair value is determined by using
appropriate valuation techniques. Valuation techniques include net present value techniques,
comparison to similar instruments for which market observable prices exist, options pricing models,
and other relevant valuation models.
Day 1 profit
Where the transaction price in a non-active market is different to the fair value from other
observable current market transactions in the same instrument or based on a valuation technique
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
under the “Investment income” account. In cases where use is made of data which is not observable,
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
transaction, the Foundation determines the appropriate method of recognizing the
‘Day 1’ profit amount.
This accounting policy applies primarily to the Foundation’s accounts and other payables and other
obligations that meet the above definition.
Impairment of Financial Assets
The Foundation assesses at each reporting date whether there is objective evidence that a financial
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
more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and
that loss event (or events) has an impact on the estimated future cash flows of the financial asset or
the group of financial assets that can be reliably estimated. Evidence of impairment may include
indications that the borrower or a group of borrowers is experiencing significant financial difficulty,
default or delinquency in interest or principal payments, the probability that they will enter
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
conditions that correlate with defaults.
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments and fixed maturities
that are not quoted in an active market. They are not entered into with the intention of immediate
or short-term resale and are not designated as AFS financial assets or financial
assets at FVPL. This accounting policy relates to the statement of financial position caption
“Receivables”.
After initial measurement, the loans and receivables are subsequently measured at amortized cost
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.
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Loans and receivables
For loans and receivables carried at amortized cost, the Foundation first assesses whether objective
evidence of impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant. If the Foundation determines
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
characteristics and collectively assesses for impairment. Those characteristics are relevant to the
estimation of future cash flows for groups of such assets by being indicative of the debtors’ ability to
pay all amounts due according to the contractual terms of the assets being evaluated. Assets that
are individually assessed for impairment and for which an impairment loss is, or continues to be
recognized are not included in a collective assessment for impairment.
Derecognition of Financial Assets and Liabilities
Financial asset
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is derecognized when:
a.
b.
c.
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
estimated future cash flows (excluding future credit losses that have not been incurred). The
carrying amount of the asset is reduced through use of an allowance account and the amount of loss
is charged to the statement of activities. Interest income continues to be recognized based on the
original effective interest rate of the asset. Loans and receivables, together with the associated
allowance accounts, are written off when there is no realistic prospect of future recovery and all
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
recognized impairment loss is reversed. Any subsequent reversal of an impairment loss is
recognized in statement of activities, to the extent that the carrying value of the asset does not
exceed its amortized cost at the reversal date.
the rights to receive cash flows from the asset have expired;
the Foundation retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third party under a ‘pass-through’
arrangement; or
the Foundation has transferred its rights to receive cash flows from the asset and either (i) has
transferred substantially all the risks and rewards of the asset, or (ii) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
Where the Foundation has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, and has neither transferred nor retained substantially all the risks
and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of
the Foundation’s continuing involvement in the asset. Continuing involvement that takes the form
of a guarantee over the transferred asset is measured at the lower of original carrying amount of the
asset and the maximum amount of consideration that the Foundation could be required to repay.
Financial liability
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expired. Where an existing financial liability is replaced by another from the same lender on
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
new liability, and the difference in the respective carrying amounts is recognized in the statement of
activities.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis of
such credit risk characteristics as industry, past-due status and term.
Future cash flows in a group of financial assets that are collectively evaluated for impairment are
estimated on the basis of historical loss experience for assets with credit risk characteristics similar
to those in the group. Historical loss experience is adjusted on the basis of current observable data
to reflect the effects of current conditions that did not affect the 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 estimating future cash flows are reviewed
regularly by the Foundation to reduce any differences between loss estimates and actual loss
experience.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the statement of
financial position if, and only if, there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, or to realize the asset and settle the
liability simultaneously. This is not generally the case with master netting agreements, and the
related assets and liabilities are presented gross in the statements of financial position.
Merchandise Inventories
Merchandise inventories consist of books and other items held for sale. Merchandise inventories are
valued at the lower of cost or net realizable value (NRV). Cost is determined using the first-in, firstout method. NRV is the estimated selling price in the ordinary course of business less marketing
costs.
AFS financial assets
For AFS financial assets, the Foundation assesses at each balance sheet date whether there is
objective evidence that a financial asset or group of financial assets is impaired.
In case of equity investments classified as AFS financial assets, this would include a significant or
prolonged decline in the fair value of the investments below its cost. Where there is evidence of
impairment, the cumulative loss - measured as the difference between the acquisition cost and the
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.
Property and Equipment
Property and equipment except for land, are carried at cost less accumulated depreciation and
amortization and any impairment in value. Land is carried at cost less any impairment in value.
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The initial cost of property and equipment comprises its purchase price and any directly attributable
costs of bringing the asset to its working condition and location for its intended use. Expenditures
incurred after the property and equipment have been put into operation, such as repairs and
maintenance, are normally charged to expense in the period in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in
an increase in the future economic benefits expected to be obtained from the use of an item of
property and equipment beyond its originally assessed standard of performance, the expenditures
are capitalized as an additional cost of property and equipment.
is increased to its recoverable amount. That increased amount cannot exceed the carrying amount
that would have been determined, net of depreciation, had no impairment loss been recognized for
the asset in prior years. Such reversal is recognized in the statement of activities unless the asset is
carried at revalued amount, in which case, the reversal is treated as a revaluation increase. After
such reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised
carrying amount, less any residual value, on a systematic basis over its remaining useful life.
Provisions
Provisions are recognized when the Foundation has a present obligation (legal or constructive) as a
result of a past event, it is probable (i.e., more likely than not) that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation. Provisions, if any, are reviewed at each reporting date and
adjusted to reflect the current best estimate.
Depreciation and amortization of property and equipment commences once the property and
equipment are available for use and is computed using the straight-line method over the following
estimated useful lives of the property and equipment:
Leasehold improvements
Office furniture and equipment
Transportation equipment
5-25 years
3-5 years
5 years
Restricted Net Assets
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,
when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted
net assets are reclassified to unrestricted net assets and reported in the statement of activities as
net assets released from restrictions.
Leasehold improvements are amortized over the estimated useful life of the improvements or the
terms of the lease, whichever is shorter.
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
economic benefits from items of property and equipment.
Gifts consisting of long-lived assets with explicit restrictions that specify how the assets are to be
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
accumulated depreciation and amortization are removed from the accounts and any resulting gain or
loss is credited to or charged against current operations.
Revenue Recognition
Revenue is recognized on the following bases:
Public Support
Public support revenue represents contributions received by the Foundation. Unconditional
contributions received, including unconditional promises to give cash or other assets, are recognized
as revenue in the period received at their fair value. Conditional promises to give are recognized
when the conditions are met. Assets received subject to conditions are accounted for as refundable
advances until the conditions are met.
Impairment of Non-financial Assets
The Foundation assesses at each reporting date whether there is an indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required,
the Foundation makes an estimate of the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value
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
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
flows are discounted to their present value using a pre-tax discount rate that reflects current market
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
consistent with the function of the impaired asset.
Investment Income
Investment income represents interest income earned on AFS financial assets. Income is recognized
on a time proportion basis computed on the outstanding principal using the applicable rate.
Project
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
account consists of revenues arising from space rentals from various events held at the Ayala
Museum and Filipinas Heritage Library.
An assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment losses may no longer exist or may have decreased. If such indication exists,
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
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
for the purchase of the museum collections are classified as public support revenue when
acquisitions are made in accordance with the terms of the gifts. The cost of objects purchased or
donated is reported as a project expense.
3.
Management’s Accounting Judgments and Use of Estimates
The preparation of the accompanying financial statements in conformity with PFRS requires
management to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. The estimates and assumptions used in the accompanying
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
services rendered by employees up to the date of valuation and incorporates assumptions
concerning employees’ projected salaries. Actuarial valuations are conducted with sufficient
regularity, with option to accelerate when significant changes to underlying assumptions occur.
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.
Judgments
In the process of applying the Foundation’s accounting policies, management has made the following
judgments, apart from those involving estimations, which have the most significant effect on the
amounts recognized in the financial statements:
Operating lease commitments - Foundation as Lessee
The Foundation has entered into commercial property leases. All significant risks and rewards of
ownership of the leased property remain to the lessor since the leased property, together with the
buildings thereon and all permanent fixtures, will be returned to the lessor upon termination of the
lease.
The liability recognized in the statement of financial position in respect of the defined benefit
pension plan is the present value of the defined benefit obligation at reporting date. The defined
benefit obligation is calculated annually by independent actuary using the projected unit credit
method. The present value of the defined benefit obligation is determined by discounting the
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
prolonged decline in the fair value below its cost or where other objective evidence of impairment
exists. The determination of what is ‘significant’ or ‘prolonged’ requires judgment. The Foundation
treats ‘significant’ generally as 20% or more and ‘prolonged’ as greater than 6 months for quoted
equity securities. In addition, the Foundation evaluates other factors, including normal volatility in
share price for quoted equities and the future cash flows and the discount factors for unquoted
equities.
Actuarial gains and losses is recognized as income or expense if the cumulative unrecognized
actuarial gains and losses at the end of the previous reporting period exceeded the greater of 10% of
the present value of defined benefit obligation or 10% of the fair value of plan assets. These gains
and losses are recognized over the expected average remaining working lives of the employees
participating in the plans.
Leases
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating lease payments are recognized as an expense in the
statement of activities on a straight-line basis.
Management’s Use of Estimates
The key assumptions concerning the future and other key sources of estimation uncertainty at the
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
the transactions. Outstanding foreign currency-denominated monetary assets and liabilities at
year-end are translated to Philippine peso at prevailing Philippine Dealing System rate at reporting
dates. Exchange gains or losses arising from foreign currency transactions are credited to or charged
against changes in net assets.
Estimating allowance for impairment losses
The Foundation maintains allowance for impairment losses based on the result of the individual and
collective assessment under PAS 39. Under the individual assessment, the Foundation is required to
obtain the present value of estimated cash flows using the receivable’s original effective interest
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
receivables based on the credit risk characteristics (industry, customer type, customer location, pastdue status and term) of the customers. Impairment loss is then determined based on historical loss
experience of the receivables grouped per credit risk profile. Historical loss experience is adjusted on
the basis of current observable data to reflect the effects of current conditions that did not affect the
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
individual and collective assessments are based on management's judgment and estimate.
Therefore, the amount and timing of recorded expense for any period would differ depending on the
judgments and estimates made for the year. The carrying values of receivables amounted to P
= 25.57
million and P
= 33.15 million as of December 31, 2009 and 2008, respectively (see Note 5).
Contingencies
Contingent liabilities are not recognized in the financial statements. These are disclosed unless the
possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are
not recognized in the financial statements but disclosed when an inflow of economic benefits is
probable.
Subsequent Events
Post year-end events that provide additional information about the Foundation’s position at the
statement of financial position date (adjusting events) are reflected in the financial statements. Post
year-end events that are not adjusting events are disclosed in the notes to financial statements
when material.
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Estimating useful lives of property and equipment
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
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
these assets. It is possible that future results of operations could be materially affected by changes
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
P
= 183.52 million, respectively (see Note 7).
Evaluation of asset impairment
The Foundation reviews property and equipment and other noncurrent assets for impairment. This
includes considering certain indications of impairment such as significant changes in asset usage,
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.
4.
Cash and Cash Equivalents
This account consists of:
Cash on hand and in banks
Cash equivalents
2009
= 16,677,232
P
28,750,000
P
= 45,427,232
2008
P
= 23,247,591
33,700,786
P
= 56,948,377
Cash in banks earn interests at the respective bank deposit rates. Cash equivalents are made for
varying periods of up to three months depending on the immediate cash requirements of the
Foundation and earn interests at the respective short-term investment rates.
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
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
noncurrent assets. The Foundation believes that the carrying amounts of its assets approximate the
recoverable amounts and, as such, no impairment loss was recognized for the years ended December
31, 2009 and 2008.
This account consists of the following:
Trade
Services
Products
Advances
Accrued interest receivable
Advances to officers and employees
Others
Estimating pension obligation and other retirement benefits
The determination of the obligation and cost of pension and other retirement benefits is dependent
on the selection of certain assumptions used by actuaries in calculating such amounts. Those
assumptions are described in Note 10 and include, among others, discount rates and salary increase
rates. Actual results that differ from assumptions are accumulated and amortized over future
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,
significant differences in the actual experience or significant changes in the assumptions may
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
(see Note 10).
Less allowance for impairment losses
2009
2008
P
= 6,685,599
4,205,345
7,869,336
4,435,548
2,151,197
5,883,373
31,230,398
5,661,601
P
= 25,568,797
P
= 8,487,763
2,379,356
4,434,860
300,451
1,897,576
21,307,810
38,807,816
5,661,601
P
= 33,146,215
Trade receivables are collectibles from various entities arising from their availment of program
services provided by the Foundation and are collectible within one year.
Fair value of financial instruments
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
from observable markets where possible, but where this is not feasible, estimates are used in
establishing fair values. These estimates may include considerations of liquidity, volatility, and
correlation. See Note 12 for the related balances.
Movements in the allowance for impairment losses are as follows:
Balance at January 1
Provisions during the period (Note 11)
Reversals
Balance at December 31
2009
= 5,661,601
P
–
–
P
= 5,661,601
2008
P
= 6,595,866
226,008
(1,160,273)
P
= 5,661,601
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6.
- 17 -
8. Available-for-sale Financial Assets
Other Current Assets
This account consists of investments in:
This account consists of:
2009
P
= 2,713,179
1,234,150
311,018
P
= 4,258,347
Deposits to suppliers
Input tax
Prepaid expenses
7.
2008
P
= 1,863,257
2,206,452
285,507
P
= 4,355,216
Common trust fund
Shares of stock
Quoted securities
Unquoted securities
2009
= 595,487,042
P
2008
P
= 500,535,329
296,706,190
2,293,979
P
= 894,487,211
105,360,814
2,347,416
P
= 608,243,559
Property and Equipment
AFS financial assets consist of shares in various listed and unlisted companies held under a trust
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
Cost
At January 1
Additions
Disposals
At December 31
Accumulated Depreciation
and Amortization
At January 1
Depreciation and
amortization
Disposals
At December 31
Net Book Value at
December 31
Land
Leasehold
Improvements
Office
Furniture and
Equipment
Transportation
Equipment
Total
P
= 93,717,200
736,875
–
94,454,075
P
= 69,922,337
1,029,434
–
70,951,771
P
= 72,532,050
2,772,695
1,910,953
73,393,792
P
= 2,626,873
–
–
2,626,873
P
= 238,798,460
4,539,004
1,910,953
241,426,511
–
21,098,675
31,965,493
2,216,123
55,280,291
–
–
–
2,839,135
–
23,937,810
11,691,955
1,910,953
41,746,495
159,000
–
2,375,123
14,690,090
1,910,953
68,059,428
This account consists of:
P
= 94,454,075
P
= 47,013,961
P
= 31,647,297
P
= 251,750
P
= 173,367,083
Trade
Accrued expenses
Advances
Others
Balance at beginning of year
Unrealized gains (losses) recognized directly in
net
assets
Balance at end of year
Cost
At January 1
Additions
Transfers
Disposals
At December 31
Accumulated Depreciation
and Amortization
At January 1
Depreciation and
amortization
At December 31
Net Book Value at
December 31
Land
Office
Furniture and
Equipment
Transportation
Equipment
Total
P
= 93,858,560
–
–
(141,360)
93,717,200
P
= 89,972,594
14,493,919
(34,544,176)
–
69,922,337
P
= 29,695,118
8,292,756
34,544,176
–
72,532,050
P
= 2,626,873
–
–
–
2,626,873
P
= 216,153,145
22,786,675
–
(141,360)
238,798,460
–
18,356,407
22,893,704
2,057,124
43,307,235
–
–
2,742,268
21,098,675
9,071,789
31,965,493
158,999
2,216,123
11,973,056
55,280,291
P
= 93,717,200
P
= 48,823,662
P
= 40,566,557
P
= 410,750
P
= 183,518,169
92,612,454
(P
= 1,817,599)
(136,288,704)
(P
= 94,430,053)
2009
P
= 64,448,671
28,983,231
4,687,902
841,144
P
= 98,960,948
2008
P
= 32,439,158
26,001,954
4,357,205
941,356
P
= 63,739,673
Accounts payable and accrued expenses include payables to consignors and suppliers that are
noninterest-bearing and are normally settled on 30 to 60 day terms.
10. Employee Benefits
The Foundation has funded, noncontributory defined benefit retirement plan covering substantially
all of its regular employees. The benefits are generally based on defined contribution formula with
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
and P
= 11.97 million in 2009 and 2008, respectively.
Land amounting to P
= 92.65 million, which was donated in 2003, is subject to a leasehold right existing
thereon with a third party.
2008
P
= 41,858,651
9. Accounts and Other Payables
2008
Leasehold
Improvements
2009
= 94,430,053)
(P
The Foundation’s annual contributions to the plan consist principally of payments covering the
current service cost for the year and the required funding relative to the guaranteed minimum
benefits as applicable.
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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):
Current service cost
Interest cost on benefit obligation
Expected return on plan assets
Total pension expense
2009
P
= 2,601,813
1,878,990
(1,096,419)
P
= 3,384,384
The assumptions used to determine pension benefits for the Foundation for the years ended
December 31, 2009 and 2008 are as follows:
2008
P
= 3,553,764
1,514,271
(1,252,545)
P
= 3,815,490
Discount rate
Salary increase rate
Expected rate of return on plan assets
Benefit obligations
Plan assets
Unrecognized actuarial losses
Liability recognized in the statements of
financial position
2008
P
= 20,877,668
(16,867,990)
4,009,678
(1,538,347)
P
= 2,188,659
P
= 2,471,331
Benefit obligation
Plan assets
Deficit (surplus)
2009
P
= 20,877,668
2,601,813
1,878,990
(963,804)
2,696,101
P
= 27,090,768
2008
P
= 21,632,439
3,553,764
1,514,271
(3,272,317)
(2,550,489)
P
= 20,877,668
Gain (loss) on experience
adjustments on plan
liabilities
Gain (loss) on experience
adjustments on plan
assets
2009
P
= 16,867,990
1,096,419
3,667,056
(963,804)
213,673
P
= 20,881,334
2008
P
= 17,893,499
1,252,545
3,272,317
(3,272,317)
(2,278,054)
P
= 16,867,990
Fixed Income
Equities
2008
83.43%
16.57%
100%
–
2007
P
= 17,893,499
(21,632,439)
(P
= 3,738,940)
2006
P
= 20,728,153
(17,612,029)
P
= 3,116,124
2005
P
= 17,612,029
(20,728,153)
(P
= 3,116,124)
2009
2008
2007
2006
= 5,013,633
P
(P
= 2,618,367)
(P
= 156,553)
P
= 1,551,875
213,673
(2,278,054)
(4,285,625)
1,199,328
Short term employee benefits
Post-employment benefits
2009
P
= 5,496,185
532,065
P
= 6,028,250
2008
P
= 5,242,757
477,561
P
= 5,720,318
11. Net Assets
Permanently restricted net assets are those assets that the donor stipulates must be maintained by
the Foundation in perpetuity. Permanently restricted net assets increase when Foundation
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:
(1) contributions, with donor-imposed permanent restrictions; (2) increase or decrease in existing
assets that are subject to permanent restrictions by donor or by law (such as unrealized gains,
interest income); and (3) reclassification from another net asset class as a result of donor stipulation
or by law.
The Foundation expects to make contributions of P
= 4.18 million to its retirement fund in 2010.
The components of the Foundation’s plan assets consist mainly of investments in government
securities. The allocations of the fair value of plan assets follow:
2009
2008
P
= 20,877,668
(16,867,990)
P
= 4,009,678
Compensation of key management personnel by benefit type (included in the “Salaries and benefits”
account) in the Foundation expenses (see Note 11) follows:
Changes in the fair value of plan assets are as follows:
Balance at January 1
Expected return on plan assets
Contributions
Benefits paid
Actuarial gain (loss)
Balance at December 31
2009
P
= 27,090,768
(20,881,334)
P
= 6,209,434
Experience adjustments on plan assets and obligation are as follows:
Changes in the present value of the defined benefit obligation are as follows:
Balance at January 1
Current service cost
Interest cost on benefit obligation
Benefits paid
Actuarial loss (gain)
Balance at December 31
2008
9.0%
7.0%
7.0%
Amounts for the current and the previous periods follow:
The funded status and amounts recognized under pension liability in the statements of financial
position for the pension plan as of December 31, 2009 and 2008 are as follows:
2009
P
= 27,090,768
(20,881,334)
6,209,434
(4,020,775)
2009
8.25%
7.0%
6.5%
Temporarily restricted net assets refer to those net assets whose use by the Foundation is limited by
donors to later periods of time or after specified dates or specified purposes.
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Unrestricted net assets are those net assets that are neither temporarily restricted nor permanently
restricted. It includes all net assets with uses not restricted by donors, by Board of Trustees or by
law.
General and administrative expenses
Salaries and wages (see Note 10)
Premises, utilities and other equipment-related
cost
Advocacy and public information services
Employee benefits and welfare (see Note 10)
Professional and service fees
Taxes and licenses
Communication and postage
Office supplies
Meetings and conferences
Transportation and travel
Membership dues and fees
Provisions for impairment losses
Others
Net assets were released from donor restrictions by incurring expenses satisfying the restricted
purposes or by occurrence of other events specified by donors.
Details of the Foundation’s net assets as of December 31, 2009 and 2008 follow:
Unrestricted
Temporarily restricted
Education programs
Entrepreneurship programs
Environment & sustainability programs
Programs for community development
Plant, property and equipment
Support to administrative units
Any activities of the organization subject to
donor approval
Permanently restricted
Investment in perpetuity, the income of
which is expendable to support:
Education programs
Endowment requiring income to be added
to original gift to build up the fund
Unrealized losses on AFS financial assets
2008
P
= 10,376,609
5,626,828
936,370
3,401,415
1,223,472
897,427
669,428
611,841
289,011
197,364
194,054
–
597,098
P
= 23,807,233
1,091,263
3,818,168
1,173,725
155,980
722,464
707,482
255,066
243,169
156,923
226,008
768,101
P
= 25,321,786
2009
P
= 136,707,864
2008
P
= 135,368,659
37,980,136
6,504,784
14,596,146
30,875,060
173,367,083
37,555,448
28,728,748
7,561,364
11,083,180
22,428,946
183,518,169
12,591,410
97,747,599
398,626,256
–
265,911,817
Capital management
The primary objectives of the Foundation’s capital management policies are to devote its funds to
charitable projects, scholarship grants and cultural activities, to afford the financial flexibility to
support its operations and to maximize the funds available.
153,050,000
153,050,000
The Foundation’s source of capital is its total net assets, which is composed of unrestricted,
temporarily restricted and permanently restricted net assets, less net unrealized losses on AFS
financial assets.
369,100,995
522,150,995
(1,817,599)
P
= 1,055,667,516
372,947,763
525,997,763
(94,430,053)
P
= 832,848,186
Net Assets
Unrestricted
Temporarily restricted
Permanently restricted
Net unrealized losses on AFS
financial assets (see Note 8)
Total Net Assets
Details of the Foundation’s expenses as of December 31, 2009 and 2008 follow:
Project expenses
Project implementation
Education
Special projects
Entrepreneurship
Environment
Project management
Salaries and wages (see Note 10)
Monitoring and administrative
Employee benefits and welfare
Building overhead
2009
P
= 10,058,947
4,730,806
2009
2008
P
= 72,977,979
37,335,831
3,463,806
593,941
P
= 75,578,778
95,418,584
11,023,687
828,586
30,836,906
38,759,722
9,979,965
24,383,039
P
= 218,331,189
30,370,583
32,084,751
9,342,446
26,181,336
P
= 280,828,751
2009
2008
P
= 136,707,864
398,626,256
522,150,995
P
= 135,368,659
265,911,817
525,997,763
(1,817,599)
P
= 1,055,667,516
(94,430,053)
P
= 832,848,186
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Fair Value Hierarchy
As at December 31, 2009, the Foundation held the following financial instruments measured at fair
value:
12. Financial Instruments
Fair value information
The table below set forth the carrying values and estimated fair values of the Foundation’s financial
assets and liabilities as of December 31, 2009 and 2008:
2009
Carrying Value
Fair Value
Financial Assets
Loans and receivables
Cash and cash equivalents (see Note 4)
Receivables (see Note 5)
Trade
Advances
Accrued interest receivable
Advances to officers and employees
Others
Total loans and receivables
AFS financial assets (see Note 8)
Common trust fund
Shares of stock
Quoted securities
Unquoted securities
Total AFS financial assets
Total financial assets
Other financial liabilities
Accounts and other payables (see Note 9)
Trade
Accrued expenses
Advances
Others
Total other financial liabilities
2008
Carrying Value
The Foundation uses the following hierarchy for determining and disclosing the fair value of the
financial instruments by valuation technique:
Level 1: quoted (unadjusted prices) in active markets for identical assets and liabilities
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair
value are observable, either directly or indirectly
Level 3: techniques which use inputs which have a significant effect on the recorded fair value
that are not based on observable market data
Fair Value
P
= 45,427,232
P
= 45,427,232
P
= 56,948,377
P
= 56,948,377
10,890,944
7,869,336
4,435,548
2,151,197
5,883,373
76,657,630
10,890,944
7,869,336
4,435,548
2,151,197
5,883,373
76,657,630
10,867,119
4,434,860
300,451
1,897,576
21,307,810
95,756,193
10,867,119
4,434,860
300,451
1,897,576
21,307,810
95,756,193
P
= 595,487,042
P
= 595,487,042
P
= 500,535,329
P
= 500,535,329
296,706,190
2,293,979
894,487,211
P
= 971,144,841
296,706,190
2,293,979
894,487,211
P
= 971,144,841
105,360,814
2,347,416
608,243,559
P
= 703,999,752
105,360,814
2,347,416
608,243,559
P
= 703,999,752
P
= 64,448,671
28,983,231
4,687,902
841,144
P
= 98,960,948
P
= 64,448,671
28,983,231
4,687,902
841,144
P
= 98,960,948
P
= 32,439,158
26,001,954
4,357,205
941,356
P
= 63,739,673
P
= 32,439,158
26,001,954
4,357,205
941,356
P
= 63,739,673
Assets measured at fair value
AFS financial assets (Note 8)
Common trust fund
Shares of stock
Quoted securities
Unquoted securities
Total AFS financial assets
Level 1
Level 2
Level 3
Fair Value as
of December 31,
2009
P
= 595,487,042
P
=–
P
=–
P
= 595,487,042
296,706,190
–
P
= 892,193,232
–
2,293,979
P
= 2,293,979
–
–
P
=–
296,706,190
2,293,979
P
= 894,487,211
Financial Risk Management Objectives and Policies
The Foundation has various financial instruments such as cash and cash equivalents, receivables,
AFS financial assets, accounts and other payables which arise directly from its operations.
The main purpose of the Foundation’s financial instruments is to fund its operational and capital
expenditures. The main risks arising from the use of financial instruments are liquidity risk, credit
risk and foreign exchange risk.
The Foundation’s risk management policies are summarized below:
Liquidity risk
The Foundation maintains a level of cash and cash equivalents deemed sufficient to finance
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
opportunities to pursue fund-raising activities. Fund-raising activities may include investments in
quoted and unquoted securities.
The methods and assumptions used by the Foundation in estimating the fair value of each class of
financial instruments are as follows:
Loans and receivables and other financial liabilities - Carrying amounts approximate fair values due to
the relative short-term maturities of these investments and liabilities.
As of December 31, 2009 and 2008 the carrying amounts of accounts and other payables will be
settled within one year.
AFS quoted financial assets - Fair values are based on quoted prices published in markets.
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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- 25 -
The following table shows the maturity profile of the Foundation’s financial assets and liabilities
based on contractual undiscounted payments:
Within 1 Year
Financial Assets
Loans and receivables
Cash and cash equivalents (see Note 4)
Receivables (see Note 5)
Trade
Advances
Accrued interest receivable
Advances to officers and employees
Others
Total loans and receivables
AFS financial assets (see Note 8)
Common trust fund
Total financial assets
Other financial liabilities
Accounts and other payables (see Note 9)
Trade
Accrued expenses
Advances
Others
Total other financial liabilities
Other financial liabilities
Accounts and other payables (see Note 9)
Trade
Accrued expenses
Advances
Others
Total other financial liabilities
2009
More than 5
years
Total Gross
P
= 45,427,232
P
=–
P
=–
P
= 45,427,232
10,890,944
7,869,336
4,435,548
2,151,197
5,883,373
76,657,630
–
–
–
–
–
–
–
–
–
–
–
–
10,890,944
7,869,336
4,435,548
2,151,197
5,883,373
76,657,630
–
P
= 76,657,630
330,698,179
330,698,179
140,802,124
140,802,124
471,500,303
548,157,933
P
= 64,448,671
28,983,231
4,687,902
841,144
P
= 98,960,948
Within 1 Year
Financial Assets
Loans and receivables
Cash and cash equivalents (see Note 4)
Receivables (see Note 5)
Trade
Advances
Accrued interest receivable
Advances to officers and employees
Others
Total loans and receivables
AFS financial assets (see Note 8)
Common trust fund
Total financial assets
1-5 years
P
=–
–
–
–
P
=–
1-5 years
P
=–
–
–
–
P
=–
2008
More than 5
years
Credit risk
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
have been established. The treasury policy sets credit limits for each counterparty. Given the
Foundation’s diverse base of counterparties, it is not exposed to large concentrations of credit risk.
The table below shows the maximum exposure to credit risk for the components of the statements
of financial position.
Cash and cash equivalents (see Note 4)
Receivables (see Note 5)
Trade
Advances
Accrued interest receivable
Advances to officers and employees
Others
AFS financial assets
Common trust fund
Shares of stock
Quoted securities
Unquoted securities
P
= 64,448,671
28,983,231
4,687,902
841,144
P
= 98,960,948
P
=–
P
=–
P
= 56,948,377
10,867,119
4,434,860
300,451
1,897,576
21,307,810
95,756,193
–
–
–
–
–
–
–
–
–
–
–
–
10,867,119
4,434,860
300,451
1,897,576
21,307,810
95,756,193
2,121,222
P
= 97,877,415
167,320,461
P
= 167,320,461
157,442,195
P
= 157,442,195
326,883,878
P
= 422,640,071
P
=–
–
–
–
P
=–
P
=–
–
–
–
P
=–
10,890,944
7,869,336
4,435,548
2,151,197
5,883,373
10,867,119
4,434,860
300,451
1,897,576
21,307,810
595,487,042
500,535,329
296,706,190
2,293,979
P
= 971,144,841
105,360,814
2,347,416
P
= 703,999,752
Price Risk
The Foundation’s price risk exposure relates to its AFS securities where values will fluctuate as a
result of changes in market prices.
Such investment securities are subject to price risk due to changes in market values arising from
factors specific to individual instruments or their issuers or factors affecting all instruments traded
in the market.
The following table demonstrates the sensitivity to a reasonably possible change in the market
prices, with all variables held constant, of the Foundation’s equity on December 31, 2009 and
December 31, 2008.
2009
P
= 32,439,158
26,001,954
4,357,205
941,356
P
= 63,739,673
2008
P
= 56,948,377
Market Risk
The Foundation’s exposure to the risk for change in market value relates primarily to the
Foundation’s AFS financial assets. The Foundation’s AFS financial assets are managed by a trustee
bank.
Total Gross
P
= 56,948,377
2009
P
= 45,427,232
P
= 32,439,158
26,001,954
4,357,205
941,356
P
= 63,739,673
2008
accomplish
p
Increase
(decrease)
5%
(5%)
Effect on
net assets
P
= 44,724,361
(P
= 44,724,361)
Increase
(decrease)
5%
(5%)
Effect on
net assets
P
= 30,412,178
(P
= 30,412,178)
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- 26 -
Trade
Services
Products
Advances
Accrued interest receivable
Advances to officers and employees
Others
2008
Trade
Services
Products
Advances
Accrued interest receivable
Advances to officers and employees
Others
2009
evolve
ev
evo
e
vo
olve
lve
lve
P
= 544,042
337,110
–
–
95,808
23,500
P
= 1,000,460
<30 days
P
= 51,195
21,792
–
–
11,638
363,491
P
= 448,116
<30 days
P
= 743,508
75,764
–
–
22,073
72,296
P
= 913,641
30-60
days
P
= 185,289
190,745
–
–
–
153,474
P
= 529,508
30-60
days
P
= 1,538,276
80,996
–
–
–
71,457
P
= 1,690,729
- 27 -
P
= 308,186
212,007
–
–
5,125
51,626
P
= 576,944
P
= 478,039
186,660
–
–
14,554
156,815
P
= 836,068
Past Due but not Impaired
61-90
91-120
Days
days
P
= 55,507
43,374
–
–
–
52,681
P
= 151,562
Past Due but not Impaired
61-90
91-120
Days
days
P
= 1,523,763
238,059
–
–
48,986
699,610
P
= 2,510,418
>120
Days
P
= 60,090
2,069,892
–
–
20,775
1,096,297
P
= 3,247,054
>120
Days
Cash and cash equivalents
Receivables
Trade
Advances
Accrued interest receivable
Advances to officers and
employees
Others
AFS financial assets
Common trust fund
Shares of stock
Quoted securities
Unquoted securities
2009
1,617,845
–
–
210,047
845,706
–
–
–
P
= 2,673,598
528,207
7,869,336
4,435,548
1,731,731
–
595,487,042
296,706,190
2,293,979
P
= 954,479,265
High Grade
P
= 45,427,232
–
–
P
= 2,263,408
–
177,006
1,122,294
964,108
–
–
Neither Past Due nor Impaired
Medium Grade
Low Grade
P
=–
P
=–
296,706,190
2,293,979
P
= 959,416,271
595,487,042
2,118,784
1,968,000
3,110,160
7,869,336
4,435,548
Total
P
= 45,427,232
–
–
P
= 6,066,969
–
32,413
1,737,399
4,297,157
–
–
P
=–
Past due but
not impaired
Individually
Impaired
–
–
P
= 5,661,601
–
–
2,177,973
3,483,628
–
–
P
=–
Total
P
= 6,685,599
4,205,345
7,869,336
4,435,548
2,151,197
5,883,373
P
= 31,230,398
Total
296,706,190
2,293,979
P
= 971,144,841
595,487,042
2,151,197
5,883,373
10,890,944
7,869,336
4,435,548
Total
P
= 45,427,232
P
= 2,385,537 P
= 8,487,763
1,098,091
2,379,356
–
4,434,860
–
300,451
–
1,897,576
2,177,973
21,307,810
P
= 5,661,601 P
= 38,807,816
Individually
Impaired
P
= 2,385,537
1,098,091
–
–
–
2,177,973
P
= 5,661,601
Individually
impaired
P
= 3,597,538
1,049,600
–
–
186,546
1,003,847
P
= 5,837,531
Total
P
= 1,890,357
2,406,799
–
–
32,413
1,737,400
P
= 6,066,969
Total
receivables presented per class, are as follows:
The table below shows the credit quality of the Foundation’s financial assets as of December 31, 2009 and 2008.
P
= 2,504,688
231,665
4,434,860
300,451
1,711,030
18,125,990
P
= 27,308,684
Neither
Past Due
Nor
Impaired
P
= 2,409,705
700,455
7,869,336
4,435,548
2,118,784
1,968,000
P
= 19,501,828
Neither
Past Due
nor
Impaired
As of December 31, 2009 and 2008, the aging analysis of past due but not impaired trade
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105,360,814
2,347,416
P
= 703,999,752
The credit quality of the financial assets was determined as follows:
Cash and cash equivalents - based on the nature of the counterparty and the Foundation’s internal
rating system.
–
–
P
= 5,661,601
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
than 3 defaults in payment.
AFS financial assets - the quoted and unquoted financial assets are unrated.
Foreign exchange risk
The Foundation’s foreign exchange risk results primarily from movements of the Philippine Peso
against the United States Dollar.
105,360,814
2,347,416
P
= 692,500,620
The Foundation’s foreign currency-denominated financial instruments are included in cash and cash
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:$1, based on the Philippine Peso - U.S. dollar exchange rate as of
December 31, 2009 and 2008, respectively.
The following table demonstrates the sensitivity to a reasonably possible change in the US dollar
rate, with all variables held constant, of the Foundation’s net assets (due to changes in the fair value
of monetary assets) as of December 31, 2009 and 2008.
–
–
P
= 2,001,293
–
–
P
= 2,063,716
–
–
P
= 5,837,531
500,535,329
–
500,535,329
2009
105,360,814
2,347,416
P
= 688,435,611
500,535,329
–
–
–
21,307,810
1,003,847
16,541,800
672,202
911,988
18,125,990
2,177,973
10,867,119
4,434,860
300,451
1,897,576
3,483,628
–
–
–
4,647,138
–
–
186,546
2,736,353
4,434,860
300,451
1,711,030
867,363
–
–
284,365
1,250,964
–
–
78,127
618,026
4,434,860
300,451
1,348,538
P
=–
P
=–
High Grade
P
= 56,948,377
Neither Past Due nor Impaired
Medium Grade
Low Grade
P
=–
P
=–
- 28 -
Total
P
= 56,948,377
Past due but
not impaired
Individually
impaired
Total
P
= 56,948,377
- 29 -
2008
US$ depreciates
(appreciates)
P
= 1.0
(P
= 1.0)
Effect on
Net assets
P
= 116,327
(P
= 116,327)
US$ depreciates
(appreciates)
P
= 1.0
(P
= 1.0)
Effect on
Net assets
P
= 187,245
(P
= 187,245)
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:
Cash and cash equivalents
Receivables
Trade
Advances
Accrued Interest Receivable
Advances to officers and
employees
Others
AFS financial assets
Common trust fund
Shares of stock
Quoted securities
Unquoted securities
2008
13. Other Activities
Revenue
Expenses
Net loss
2009
P
= 23,394,883
28,027,240
P
= 4,632,357
2008
P
= 25,649,383
30,636,125
P
= 4,986,742
accomplish
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79
Ayala Land, Inc.–Ayala Malls Group
Ayala Land, Inc.–External Affairs Division
Ayala Property Management Corp.
Ayala Security Force
Ayala Theaters Management, Inc.
Aye Ubaldo, Adobo Magazine
Azool, Inc.
Azrael Coladilla
Bahay Tsinoy
Bangko Sentral ng Pilipinas
Bank of the Philippine Islands
Bank of the Philippine Islands, Tagbilaran
Bao Toan Nguyen
Barangay Magallanes, Makati City
Barangay San Lorenzo, Makati City
Barangay Ususan, Taguig City
Barbara Mae Dacanay
Bathma Kaew-Ngok
BBDC Parents’ Committee
Bea Zobel Jr.
Beatriz Narvadez
Ben Chan
Bernadette Nacario
Bernadette Sia
Bernard de Vera
Bernard Karganilla, Malaya
Bettina Araneta-Aboitiz
ACKNOWLEDGEMENTS
Ambasssador and Mrs. Antonio Lagdameo Sr.
Ambassador Delia Meñez Rosal
Am
mbassador Francisco M. Ortigas III
Ambassador Kristie Kenney
Ambassador. A. Selverajah
Ambeth Ocampo
Amelou Benitez-Reyes
Amgen Foundation
AMIDEAST
Am
morsolo Retrospective Committee
Ana Ordunez
Anastacia Dy
Andee Raymundo
Andrea Pasion-Flores
Araceli
Angel Guerrero, Adobo Magazine
Habaradas
Anna Maria Harper
Araceli Salas
Anna Marie de la Vega
Ariel Camannong
106.7 Dream FM
Anna Sobrepeña, Lifetstyle Asia
Aristón Estrada
A.A. Patawaran,
Anthony Trotter
Arlene Mellante
Manila Style Weekend
Anton San Diego, Philippine Tatler
Armin Sarthou Jr.
Abigail Nachura
Antonio Ortigas
Armita Rufino
Accenture
Anvil Publishing, Inc.
Arneil and Loverne Suratos
ACCM
A IInsurance and
Aon
d
Arnulfo Batac
Actimed Distribution
Reinsurance Brokers
ArtPost Asia
Adarna House, Inc.
Philippines, Inc.
Arvin Ello
Adults CD-ROM
Asia Society Philippines
Agnes Sayao
Asian Civilisations Museum, Singapore
Ahadiat Joedawinata
Association of Metro Manila Environment Officers
Aileen Fernandez
Ateneo Art Gallery
Alabang Commercial Center
Ateneo de Davao University
Alba Intl.
Ateneo de Manila University, Ateneo Innovation Center
Albert Avellana, Avellana Art Gallery
Atty. Benjamin Subido
Albert Balbuti
Augusto Villalon, Philippine Daily Inquirer
Balikbigay Foundation, Inc
Aurelio Montinola III
Alberto Emilio Ramos
Avella Lipata
Alejandro Padilla y Zóbel
Ayala Archives
Alexander Cordero
Ayala Center Association
Alfredo and Ellen Andres
Ayala Center Association–Traffic Group
Alice Guillermo, Business Mirror
Ayala Corporation
Alicia Herrera, BusinessWorld
Ayala Group HR Council
Alma Adajar
Ayala Group Talent Network
Alma Quinto
Ayala Land, Inc.
Alma Recinto
Alveo Land, Inc.
Alvin Benitez
Alvin Hilario
exce
exc
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xxc
cel
Alvin T.H. Tan
Alvin Uy
aim
evolve
ev
evo
e
vo
olve
lve
lve
Amadea Unisa
80
Beveerly
Licos
Board for
Librarrians,
Professional
Regulation Commission
Bonifacio Esttate Services
Corp.
Boy Garrovillo
BPI/MS Insurance
Brian Chan
Bryan E
Eclavea
clavea
Budeths Casinto
Buklod Bahayan Homeowners’ Association
n
Bulldog Security
Butch Bonsol, Expat Communications
Cabugao Sons & Daughters Association of Hawaii
Camille Dacanay-Mendoza
Carla Galinato
Carla Quintanilla
Carlomar Daoana, Manila Bulletin
n
Carlos A. Cordeiro Found
dation
Carlos Cojuangco
Carmela Toribio
Carmelo Cabrera
Carmencita Acosta, Expat Comm
municcations
Carole Guamen
Carpel Trading
Catherine Liamzon
accomplish
p
create
c
te
Dante
Ambrosio, PhD
Dave Henkel
Dave Miranda
David Dunleavy
David Scully
Dean Tina Colayco
Del Monte
Dennis Bahilango
Dennis Gonzalez
Department of Education
Department of Environment–
Environmental Management
Bureau
Cathy
Bengzon
Cathy Santamaria
CB Richard Ellis
Philippines, Inc.
CDA–Bohol Provincial Office
Cecille Jimeno
Celeste Torrefranca
Cesar and Fe Rodriguez
Chaco Molina
Chari Elinzano
Chemical Industries of the Phils.
Chevron Geothermal Philippines
Chevron Philippines, Inc.
Chickie Custodio
Chimara Café
Ching Jorge
Chitz Ramirez
Christian Taguos
Christopher Sandoval
Cid Reyes
Cielo Banal-Formoso, Philippine Daily Inquirer
Cielo Canta
City Government of Alaminos
City Government of Bais
City Government of Cagayan de Oro
City Government of Davao
City Government of Muntinlupa
City Government of Panabo
City Government of Silay
City Government of Talisay, Negros Occidental
Clarence Basa
Clarissa Militante
Clarito “Areng” Poblete
Claudette Lam
Clean Cities Makati Coalition
Cleotilde How, MD
CLSA, Asia Pacific Market
Congressman and Mrs. Antonio Lagdameo Jr.
Constantino Tejero, Philippine Daily Inquirer
Continental Temic ITCA Group
Corazon Alvina
Corazon Bautista
Corullon Holdings, Inc.
Cris and Ella Quintanilla
Cristelle Laulagnet, Museum Volunteers of the Philippines
Cristine Mojica
Crown Plastic Products, Inc.
Cultural Center of the Philippines
Cynthia Luz Rivera
Cynthia Valencia
Daniel and Petty Johannot
Danilo Songco
81
Department of Science and Technology,
Office of Undersecretary for Science
and Technology Services
Department of Science and Technology–Bohol
Provincial Office
Department of Science and Technology–
PCIERD
Department of Tourism
Department of Trade and Industry,
Bohol Provincial Office
Department of Trade and Industry,
Main Office, Human Resources Department
Department of Trade and Industry,
Regional Office I
Department of Trade and Industry,
Regional Office IV
Diana Principe
Dinah Ventura, Daily Tribune
Dindo Fernando
Diwa Guinigundo
Diwata Paredes
Doreen Yu, Philippine Starweek
Dornet Venturanza
Ed Alba
Eddia Chua
Eddie Ortigas
Edelwina Kimmel
Edgar Chatto
Edgar Mariano
Edgardo Chua
Edgardo Nofuente
Editha de la Paz
Edna Olan
Eduardo Chua
Edwin Maraya
Efren Meneses
Eileen Legaspi-Ramirez
Elena Salazar
Eleonor Misa
Elija Holdings, Inc.
Ella Gonzales
Embassy of the Philippines in Mexico
Emerald Headway
Emi de Lara
Emirate Security
Emma Aquino
Emma Flores
Emme Consultancy, Inc.
Enchanted Kingdom
Enrique Romualdez, Malaya
Eres Printing Corp
Eric de Jesus
Eric Francia
Erickberth Calupe
Erico Aumentado
Ericsson Telecommunications, Inc.–
Philippines
Ernesto Mellante
Erwin Locsin
Estela Lomat
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Estella Estolano
Ester Bermudez
Eulalia Calatin
Evelyn Diao, Village Voice
Evelyn Dimapilis
Evelyn Dy
Evelyn Lim Forbes
Fanny San Pedro
Fatima Reyes
FBC Holdings, Inc.
Fe de la Cruz
Felice Prudente Sta. Maria
Felipe de Leon Jr.
Fercat Holdings, Inc.
Ferdinand Alacar
Ferdinand Pantangco
Fernando and Catherine Zobel de Ayala
Filipino Heritage Festival, Inc.
Helena Z. Benitez
Hewlett-Packard Philippines Corporation
Himig Koenji Choir
HMR Envirocycle
Holy Family Choir
Holy Name University, OCAD
Honda Cars, Makati
Hubbert Christoper Dolor
Huism Tan
Hwee Min Low
Ian Carlo Jaucian
IBM Innovation Network
Igan D’Bayan, Philippine Star
Immaculate Conception Academy
Inah Bautista, Bluprint
Intelligraph Corp
International Finance Corp.
Ira Cruz
Irene Martel-Francisco, Philippine Tatler
Iris Cheng
Isa Susan
Isabel de Leon, Manila Bulletin
Isabel Padilla
Isah Red, Manila Standard Today
Isuzu Alabang
Isuzu Phils Corp.
Ivy Mendoza, Manila Bulletin
Jaferson Gelizon
Jaime (†) and Isabel Ongpin
Jaime and Beatriz Zobel de Ayala
Jaime Augusto and Lizzie Zobel de Ayala
Jaime de Guzman
James Seet
Filipino Web Services
Florentino Hornedo, PhD
Fort Bonifacio Development Corp.
Francis Gubatana
Francis Oca
Francisco and Sofia Elizalde
Frank Thong
Fundación Santiago
Gary Dolina
Genevieve Joson
Georgina Padilla y Zóbel
Geostate Development Corp.
Gerard Ramos, Business Mirror
Giancarla Espinosa
Gifts and Graces Trade Fair Foundation
Gilmon Holdings, Inc.
Giovanni Macatangay
Give2Asia
Gkynda Bathan
Glean Claridades
Glen Danugrao
Globe Platinum
Globe Telecom, Inc.
Globe Telecom, Inc., Bohol Business Center
GMA Network, Inc.
Goldman Sachs & Co.
Greenbelt
Greenpeace
Gretchen Cojuangco
Grupong Diwan
Guillermo Luz
Hadrian Mendoza
Hal and Rochelle McArthur
Hanna Pacua
Hannah Cunanan
Heidi Tan
Helen Yu Rivera
Jan
n Cacdac-Siena
Jan Liamson
Janet Mansfield
Janik Liepach
Japan Airlines
Jay Alonzo
Jeanette Lim
Jefffrey Valisno, BusinessWorld
Jehn Cerso
Jeny Pagkalinawan
Jessica Villanueva
Jessica Zafra
Jesssie Mendez Salon
Jesus and Maritess Pineda
accomplish
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Jewel Chuaunsu, Contemporary Art
Philippines
Jo Anne Salita
Jo Anne Villarosa
Joan Pasagui, Philippine Tatler
Joann Ruta
Joanne Gob
Joe Geraldo
Joel de Leon
Joel Uichico
Joey de Castro
John Armand Ong
John Forbes
John Orbeta
Jo
ohn Valenzuela
Jo
olly Gutierrez
Jon
n Pettyjohn
Jonathan Olazo
Jorge B. Vargas Museum and Filipiniana Research
Center
José Maria Treñas
Josefina Tuazon
Joselito and Ollie Campos
Joselito Sibayan
Joselyn Geneciran
Josemari Catubig
Joseph de Vera
Josephine Doctoro
Josephine Sestoso
Joyce Toh
JP Morgan Chase Bank, N.A.
Judith Juntilla, BusinessWorld Highlife
Judy Araneta-Roxas
Juliet Azanza
Jullie Lluch
Junie Lim
Junie Rodriguez
Karen Fassio
Karen Flores
Karina Cariaga
Karissa Aspillaga
Kate Villaseñor
Katherine Yulo
Kenson Kwok
Kontra-Gapi
Kwok Kian Chow
Lane Moving & Storage
Larry Ligunas
Laurent Lamasuta
Lawrence Tio
League of Corporate Foundations
Leonila Casanova
Leonore Torrefranca
Letty Sala
Lileng Wong
Lilia Sesperes
Lilia Tantoco
Linda Atayde
Lito Zulueta, Philippine Daily Inquirer
Little Candles
Lizette Cardenas
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Lope Bosaing
Lopez Memorial Museum
Lor Calma
Lor Calma Design, Inc.
Lourdes Baua
Ma. Celitas Jacob
Ma. Katrina Tioseco
Mac Valdezco
Mai Sangalang
Makati City Anti-Smoke Belching Unit
Makati City Department of Environmental Services
Makati Commercial Estate Association
Makati Environment Multi-Purpose Cooperative
Mangyan Mission
Manila Chamber Orchestra Foundation, Inc.
Manny Pangilinan
Mara Ciceron
Marchem
h
Margarita Araneta-Holigores
Margarita Ilagan
Maria Josefina OrtigasDuarte
Marian Legarda
Maricar
Adamos
Maricel Montero
Marino Sison
Mario and Mimi Que
Mark Daniel Dantes
Mark Escueta
Mark Gesite
Mark Valenzuela
Marlene Galeos
Martha Buckley
Martin Lopez
Martina Diokno
Mary Ann Pernia
Mary Grace Azurin
Maui Salang
Maureen Barreiro
May Lopez
May Pagsinohin
Maya Greenfield Thong
Meah Ang See
Melody Gocheco
Mercedes Lopez-Vargas
Mercedita Nolledo
Mermac, Inc.
Metro Manila Anti-Smoke Belching Association
Metropolitan Museum of Manila
Mia Borromeo, Philippine Tatler
Michael Koh
Michael Sta. Maria
Michael Tan, Philippine Daily Inquirer
Microsoft Corporation
Miguel Alba
Miguel Bernabe
Milagros del Rosario
Millet Mananquil, Philippine Star
84
Miriam College–Environmental
Studies Institute
MMLDC
Mona Lisa Sunio
Monique Villonco, Town and Country
Mr. and Mrs. Jose Manuel Lagdameo
Mr. and Mrs. Oca Villamiel
Mr. and Mrs. Ricardo Lagdameo
Municipal Government of Baclayon, Bohol
Municipal Government of Cawayan, Masbate
Municipal Government of Dimasalang, Masbate
Municipal Government of Esperanza, Masbate
Municipal Government of Milagros, Masbate
Municipal Government of Mobo, Masbate
Municipal Government of Mulanay, Quezon
Municipal Government of Palanas, Masbate
Municipal Social Welfare and Development–Silang, Cavite
Municipal Tourism Office,
Office Puerto Galera
Muntinlupa City Environmental Sanitation Center
Museo Pambata
Mylene Santos
Mylynn Maligaser
Narzalina Lim
Nathan Azarcon
National Book Development Board
National Commission for Culture
and the Arts
National
Heritage
Board, Singapore
National Museum
of the Philippines
National Solid Waste
Management Commission
Neal Oshima
Nelfa Querubin
Nestor Jardin
Nikie Lingad
Nikos Dacanay
Nina Aquino
Nina Lim-Yuson
Nona Torres
Nonette Climaca
Noreen Santos
Norma Liongoren
North Triangle Depot Commercial Center
Office of Representative Candido Pancrudo Jr.
(First District, Bukidnon)
Office of Representative Exequiel Javier
(Lone District, Antique)
Office of Representative Glenn Chong
(Lone District, Biliran)
Office of Representative Henedina Abad
(Lone District Batanes)
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Office of Representative Jocelyn
Sy-Limkaichong (First District, Negros Oriental)
Oscar and Connie Lopez
Oscar and Mary Lou Hilado
Serge Rega
Oscar Reyes
Service One
Pablo Capati
Shell companies in
Pam Casim, Manila Bulletin
the Philippines
Pamantasan ng Lungsod ng Maynila–Brotherhood of Medical Scholars
Siegrid Anne Bangyay
Paolo Mangubat
Simeon Ventura Jr.,
Paolo Suapengco
Mabuhay Magazine
Partnerships for Clean Air
Singapore Art Museum
Paseo de Magallanes Commercial Corp.
Sisters of Charity of St. Anne
Paseo Gallery
R. S.
Sisuk
Patricia Maningat
Mojica
Socorro Castro
Patricia Uy
Rachel Barawid,
Solid Waste Management
Patrick Flores
Manila Bulletin
Association of the Philippines
Patsy Zobel
Rachy Cuna
Solid Waste Management
Paulino and Hetty Que
Rafael Simpao Jr.
Office, Taguig City
Paulo Alcazaren, Bluprint
Ral Arrogante
PC Tech, Inc.
Ramon Magsaysay Jr.
Pennie de la Cruz, Sunday Inquirer
Ramon Opulencia
Magazine
Ramon Rufino
Perfecto Domingo
Ramon Zialcita
Perry Mallari, Manila Times
Randall Young
Pete Cortes
Raul Manzano, Metro Society
Regina Co Seteng
Reinosa Holdings, Inc.
Reli de Veyra
Pete
Remedios
Wingco
Jimenez
Rene
Almendras
Ph
hil
Rene and Anna Arellano
Ondaaatje
Rene Buenaventura
Philip
p Lee
Rey Flestado
Philippin
ne Army
Ria
Limjap,
Homestyle Magazine
Livelihood
d Training
Rica
Zamora
Philippine Baand of Mercy
Ricardo
Jacinto
Jinge Po
olicarpio
Ricardo
Nolasco,
PhD
Philippine Bussiness for the
Richie
Lerma
Environ
nment
Ricky Francisco
Philippine Green Building Council
Council
Rina
Duque-Mariano
Philippine High School for the Arts
Rivka
Nagtalon
Philippine Polytrader Plasttics, Inc.
Robert
Haley
Philippine Recyclers, In
nc.
Roberto
Kanapi
Philippine Women’s University
Rodney Dofitas
Phinma
Rolando Codes
Phyllis Zabalero
Rolando Sison
Pilipinas Shell Petroleum Corporat
ation
Rome
Jorge, Manila Times
Pinggot Zulueta, Manila Bulleti
tin
Romeo
Tabuena
Polystyrene Packaging Council of the Philippines
Romulo
and
Patricia
Olazo
Prince of Peace Collegge
Rosan
Cruz
Provincial Government of Camigguin
Rosario Cruz Lucero, PhD
Provincial Government of Davaao deel Norte
Rosario Manalo
Provincial Government of Soutth Co
otabato
Rosario Mayor
Provincial Government of Surigao del Norte
Rosario
Ventura
Queena Lee-Chua, Philippine Daily Inquirer
Rowena
Subino
Quezon City Environmental Pro
otecttion and
Rowena
Wendy
Lei
Waste Management Divvision
Roy Nudo
Rozzano Rufino B. Biazon
Ruben D.F. Defeo
Ruel Maranan
accomplish
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Sam Marcelo, BusinessWorld
San Fuente Holdings, Inc.
San Miguel Corporation
create
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Sanjiv Vohra
Sari Ortiga
Seafood City Supermarket
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Sonia Tejada
Starlog Manila, Inc.
Station Square East Commercial Corp.
Stephanie Asi, Daily Tribune
Stephanie Poserio
Steps Dance Studio
Susan Alonzo
Sydney de Claro
Sylvia Amorsolo-Lazo
Sylvie Maghirang
Tan Boon Hui
Tara F.T. Sering, Contemporary Art
Philippines
Tarlac Catechetical School
Tay Chungtungco
Teresita Ang See
Teresita Cruz
Tessie Luz
Tessy San Juan Pettyjohn
Tetra Pak Philippines
The Crucible Gallery
Thelma San Juan, Philippine Daily In
nquirer
Theodore Pe
Thomas Cheong
Tim and Cherry Daniels
Tina Fernandez
Toshiba Information Equipment Philip
ppines,
Inc.
Toyota Foundation Japan
Trend Microsystems, Inc.
Tricia Castro
Tricia Morente, HIPP
Trisha Aguilar
Trust International Paper Corp. (TIPCO)
Tugdaan Mangyan School
ULTREX Managers and Consultants, Inc
United Nations Population Fund for the Stan
nd
Up Take Action Campaign
United States Agency for International
Development
United States Embassy
United Way Worldwide / CITI Foundation
Universal Robina Corporation
University of the East Dental Health Team
Alumni Association
University of the Philippines Diliman
University of the Philippines Diliman
Information Office
University of the Philippines Diliman,
Office of the Chancellor
University of the Philippines,
Office of the President
University of the Philippines,
Office of the Vice Chancellor for Research
and Development
University of the Philippines,
Office of the Vice President for Development
Directory
UNTV Public Service Channel
USAID-Sustainable Energy Development Program
UWC-SEA
Valerie Prentice
Vangie Baga-Reyes, Philippine Daily Inquirer
Varichem Corporation
Vasquez & Co. LLP
Vic Lactaoen
Vicky Sumaria
Victoria Gamundoy
Victoria Garchitorena
Victoria Herrera
Victoria Padilla
Vipoo Srivilasa
Wanggo Gallaga, Metro Society
Wency Cruz
Wilfredo and Sherisa Nuesa
Wilma Zapata
Ayala Foundation, Inc.
Visayas Operations
4F Krizia Building
Gorordo Avenue, Lahug
Cebu City, Philippines
Tel/Fax (6332) 233 0824
Tel (6332) 412 2405
Winnie Go
World Bank, Asia Pacific Incubation
Network
World Bank, infoDev Program
World Wide Fund for Nature
www.hadrianmendoza.com
XL Insurance Company Ltd.
Yael Buencamino
Yeng Carmona
Yeow Seng Cheah
YGARC Trading Services
YKL/Fujifilm
Yolanda Sevilla
Ayala Foundation, Inc.
Mindanao Operations
2F CLIMBS Bldg., Tiano Pacana St.
Cagayan de Oro City, Philippines
Tel (638822) 729 497
Ayala Foundation USA
255 Shoreline Drive, Suite 428
Redwood City, CA 94065 USA
Tel (1 650) 598 3126
Fax (1 650) 508 8988
www.af-usa.org
Ayala Technology Business Incubator
Room 201, Tech Portal
University of the Philippines–AyalaLand
TechnoHub
Commonwealth Avenue, Diliman
Quezon City 1101 Philippines
Tel (632) 501 9817
Fax: (632) 441 1561
www.ayalatbi.org
Ayala Museum
Makati Avenue corner de la Rosa Street
Greenbelt Park, Makati City, Philippines
Tel (632) 757 7117 to 21
Fax (632) 757 2728
(632) 757 3588
www.ayalamuseum.org
Filipinas Heritage Library
Makati Avenue, Ayala Triangle
Makati City, Philippines
Tel (632) 892 1801
Fax (632) 892 1810
www.filipinaslibrary.org.ph
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Ayala Foundation, Inc.
10F Ayala Wing, BPI Building
6768 Ayala Avenue corner Paseo de Roxas
Makati City, Philippines
Tel (632) 752 1101 to 02
Fax (632) 813 4487 to 88
www.ayalafoundation.org
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VISION
Our vision is to be a leading foundation
committed to national development by harnessing corporate social
responsibility toward:
• developing social technologies that provide
a better quality of life;
• facilitating access to knowledge and learning;
• instilling pride in being a Filipino.
Mission
Our mission is to improve the
quality of life of the Filipino by
contributing to the eradication
of poverty in all its forms.
The cover of the 2009 Ayala Foundation, Inc. 2009 Annual Report is
printed on FSC®-certified Mohawk Options 100 percent PC, which is
made of 100 percent process chlorine-free post-consumer recycled
fiber, with the balance comprised of elemental chlorine-free virgin
fiber. This paper is made carbon neutral with Mohawk’s production
processes by offsetting thermal manufacturing emissions with verified
emission reduction credits (VERs), and by purchasing enough Green-e
certified renewable energy certificates (RECs) to match 100 percent of
the electricity used in our operations. This paper is certified by Green
Seal.
The financial statements section of this report is printed on Econobond,
which is 100 percent recycled uncoated paper made from postconsumer collected waste.
Ayala Foundation, Inc.
Annual Report 2009
Production
Filipinas Heritage Library
Ayala Foundation, Inc.
Editorial and Art Direction
Maritoni Ortigas
Alex Gregorio
Paul de Guzman
Design, Layout, and Illustrations
Sergio Bumatay III
Photography
Erik Liongoren
Additional Portraiture
and Cover Photography
Wig Tysmans
Cover Concept and Design
K2 Interactive (Asia), Inc.
88
AYALA FOUNDATION, INC.
10F Ayala Wing, BPI Building
6768 Ayala Avenue corner Paseo de Roxas
Makati City 1226 Philippines
www.ayalafoundation.org