2011 Ramon Aboitiz Foundation Inc. Annual Report

12010 ANNUAL REPORT

Every year, we look for fresh approaches and have the opportunity to improve on past performances. 2011 was such a year. Our partnerships are very important in our development model. Through this relationship involving mutual trust, we are given the opportunity to collaborate and roll out our focused initiatives. We remain grateful for the continued trust and support we experience in our work. Together we are building our future.

President's Message

Roberto E. Aboitiz

In the environment sphere, we continue our successful approach to tree-growing through the Run 2 Plant 4 GREENIN Philippines. Our goal is to ensure the survival of five million planted trees in the Province of Cebu in the next five years. This regional effort, in cooperation with Catholic Educational Association of the Philippines (CEAP), to grow native trees reflects our desire to scale up our program, thus, creating a larger impact.

Every year, our programs in Culture & Heritage increase in scope, content and participation. A new set of grassroots leaders from the Visayas and Mindanao have been recognized in the 5th RAFI Triennial Awards program in the individual and organization categories. We continue to train more youth in leadership skills in our Kool Adventure Camp, Young Minds Academy and other youth programs. Our efforts enable the participants to become leaders who aspire to become model citizens.

We are on our seventh year in our School Rehabilitation Program. To date, we have rebuilt over 470 classrooms in 34 towns benefiting over 20,000 public school learners. This year we initiated a project that focuses on the restoration of Gabaldon school buildings in the Cebu Province, in partnership with the Provincial Government, local government units, and the Department of Education, with the support of the University of San Carlos-College of Architecture and the United Architects of the Philippines-Cebu District.

Our Dolores Aboitiz Children’s Fund continues to support projects and programs that promote children’s welfare and development.

Internally, we continuously upgrade our systems and processes to make ourselves responsive and relevant to our partners and clients.

At the Ramon Aboitiz Foundation, Inc., our effort over the last 45 years has been to develop best practices and explore innovative solutions in development work. Throughout this time, we have supported commendable programs and causes and worked with many like-minded individuals and organizations. This is how we manifest our being a role model in social development and act as an architect of change.

This strategy is reflected in our work in the towns and cities of Cebu. Through the Our Cebu Program, we developed and utilize a scorecard with liveablity and governance indicators, which enhances the local government’s ability to record desired outcomes. We assisted in developing a model for improving the urban poor settlements in a barangay in Mandaue City by implementing a social transformation process that enables the community to manage their own development agenda. We have worked with Mandaue City to strengthen its Solid Waste Management Board’s systems and structures and to capacitate the city’s 27 barangays so that they become effective implementers of the program. We engaged the Bajau community in Cebu City through the Bajau Integrated Area Development Project, looking for breakthrough opportunities. We are the co-chair in the Mega Cebu Project where we collaborate with stakeholders from government, business and the private sector to come up with a common vision and a long-term strategic development plan for 13 towns and municipalities that constitute the Cebu “Region City”.

We contribute to uplifting the lives of Filipino families by providing financial and entrepreneurial support through our Micro-finance program involving 16,169 micro-finance clients (as of December 31, 2011) with 14,329 clients in Cebu, Leyte and Bohol.

2 RAMON ABOITIZ FOUNDATION INC.

Chief Operating Officer's Message

Dominica B. Chua

This year we are focusing on the RAFI

attribute role model. The reason is we

wanted to highlight what the Foundation

aspires to become, at the same time

assess ourselves where we are in the

45 years of working in community

development.

For us, role modeling is an offshoot of

other RAFI traits. Such state, we believe,

can be achieved when we are holistic

in our approach in finding answers to

societal problems and when we involve

stakeholders, experts, and like-minded

groups and individuals in coming up with

solutions.

In this annual report, we focus on best

practices developed and new solutions

derived from experience and study of

issues. We also support causes and

projects of other development partners

working along our areas of focus.

Thus, we showcase our models in

community development, environment,

governance, and education. We

underscore our initiatives in health,

micro-finance, culture and heritage, and

leadership.

As always, we will never be able to move

toward realizing our promise of elevating

lives of communities without our partners

who drive us to constantly give our best in

the work we do.

32011 ANNUAL REPORT

in INTEGRATED DEVELOPMENT

Role Modeling Change


A model framework for governance

The evolution and deepening of the Our Cebu Program scorecard is a response to the leveling up of local development in the 51 local government units (LGUs) in Cebu. The program scorecard and scope expand to include criteria for schools and highways.

The Municipalities of Oslob and Liloan adopt and institutionalize the purok system of San Francisco, Camotes as an effective governance mechanism in implementing various development programs and projects.

The third year of the Our Cebu Program culminated with the 3rd Our Cebu Program Partners’ Conference, with the theme “Strengthening Public-Private Partnerships in Governance”, where LGUs were able to address the needs of their constituents and delivery of social services by improving network and linkages with the private sector.

Vice Mayor Alfredo Arquillano of San Francisco has attributed the 2011 United Nations Sasakawa Award for Disaster Risk Reduction Award his LGU received to the implementation of the Our Cebu Program.

GOVERNING BETTER. Vice Mayor Alfredo Arquillano receives the UN Sasakawa Award for Disaster Risk

Reduction (DRR) Award for San Francisco, Camotes Island. He cites the Our Cebu Program for the

implementation of the LGU’s DRR plan.

HIGHWAY TO LIVEABILITY. The Our

Cebu Program widened its scope to include

the search for the expanded Green and

Wholesome Environment that Nurtures Highway.

The memorandum of agreement signing

for the search (photo below) involved (L-R) the

Department of Public Works and Highways

represented by its, Region 7 Director Pedro

Herrera; Province of Cebu, represented by Governor

Garcia; RAFI, represented by Board of Trustees

member Fr. Ernesto Javier, S.J.; and the Department

of Tourism, represented by its Region 7 Director

Rowena Montecillo.

PARTNERS. (L-R) Valentino Bagatsing, senior country officer of International Finance Corp., Cebu Provincial Governor Gwendolyn Garcia and Vice Governor Agnes Magpale, and RAFI President Roberto E. Aboitiz, join hands to exemplify public-private partnerships, the theme in the 3rd year of the Our Cebu Program

Partners’ Conference.

52011 ANNUAL REPORT

Governance from the grassroots

It must be the clear blue waters and fine white sand, or perhaps its many natural heritage sites, like its lake, that make you want to visit San Francisco, Camotes Island in the province of Cebu. There is, however, something that makes you want to stay: its people and the way they work together to make their place more than a place to visit.

A form of community organization harnessed and perfected by San Francisco, the purok system was earlier implemented in the 1980s by the Department of Education as a program used in non-financial education. San Francisco revived this system under the leadership of then mayor and incumbent Vice Mayor Alfredo Arquillano Jr.

The system is utilized by the municipality to efficiently deliver basic services and community development initiatives. It addresses people’s needs in the areas of health and nutrition, agriculture and livelihood, education, and solid waste management, peace and order and protection, tourism, infrastructure, and youth development.

In 2004, local officials strategically divided the LGU into purok districts, which are headed by purok coordinators. Given the island’s limited access to the internet, cellphones, and radios, the coordinators act as couriers of information for residents.

Organizing the puroks has many advantages: issues and concerns are easier to address and domestic violence is dealt with as early as in the purok level. San Francisco takes pride in a very low crime rate.

In times of calamities, the purok system is of great help in rescue and rehabilitation operations as it is easier to determine the number of households and residents of each purok through their respective data and information center. A vital feature in San Francisco’s adaptation of the purok system is its aim to improve citizens’ disaster reduction and risk

management abilities. In 2011, the municipality won the prestigious United Nations Sasakawa Award for Disaster Reduction.

It was not an easy journey for San Francisco to successfully implement this rigorous system and it has been recognized and acknowledged for its commendable efforts.

“It took five years full of trial-and-errors for us to formulate what is now the San Fran System. Partnership, a bottom-up approach, participatory, no dole-out policy is the formula of what we are now,” Vice Mayor Arquillano notes.

Since 2009, RAFI has been supporting San Francisco. This year, RAFI has included how a municipality taps the purok as an indicator in the Our Cebu Program scorecard. There is an ongoing communication between RAFI and the local government unit (LGU) to partner in the latter’s proposal to help four other LGUs—Alcoy, Alegria, Catmon, and Tuburan–replicate the San Fran System.

Constantine Samson, Program Officer of the Integrated Development unit, attests to the visibly inspiring changes brought about by the purok system in San Francisco.

“It generates ownership and pride. Makita gyud nimo nila ang ilang sense of pride (You can really see the sense of pride among them),” he states.

Through the purok system, talents and potentials are discovered among the local residents. Along with the revenue generated by the well-managed tourism program, the various livelihood activities they engage in draw income for the municipality.

Through its efforts in establishing the purok system, San Francisco has provided its citizens with a good eye for community building, where collaboration has emerged because of a unified goal.

A purok meeting in San Francisco, Camotes.


Building a modelurban poor settlement

As part of the process of socially transforming communities, RAFI assisted the Kobe Resettlement Site in Barangay Canduman, Mandaue City in setting up a homeowners association that will oversee and manage community development. The community is registered with the Securities and Exchange Commission and is presently managing a weaving business for women using recycled paper.

The Solid Waste Management Board (SWMB) in Mandaue City lobbied for a cleaner and healthier city through the crafting of executive orders and ordinances that will enable the city to implement initiatives indicated in the 10-year SWM plan. The Board also reviewed existing ordinances to make them relevant and responsive to the present conditions as well as to fill in the requirements of the said ordinance.

INTEGRATED. (top photo) RAFI sits as secretariat to Mandaue City’s Solid Waste Management Board. RAFI also assisted the homeowners’ association of the Kobe Resettlement site in

Mandaue in setting up its weaving business using recycled paper (photo above).

72011 ANNUAL REPORT

Elevating Cebu’s Bajau community

Through its Bajau Integrated Area Development Project (BIAD-P), RAFI broke ground on the almost 6,000 sq.m. Bajau site at Sitio Puntod, Alaska Mambaling, wherein concrete, socialized houses are now being built to house 140 Bajau families. Two quad housing units have been completed and ready for turn over to eight families. The project is going to build 33 more quads for 140 families.

Aside from housing, the project also includes site development, which consists of provision of perimeter fence, access to water and electricity, community health clinic, livelihood center, and multi-purpose center.

RAFI is strengthening the capacity of the Bajaus to manage development in their community. Together with partner organizations, other initiatives to uplift the socio-economic well-being of the Bajaus were also implemented.

DIGNIFIED. To uplift the lives and bring pride to the Bajaus, RAFI initiated a project that provides them concrete

shelters (main photo) and taught them backyard gardening (bottom left photo).

Children were also treated to a day of fun and learning in their very own Children’s

Festival (bottom right photo).


Fast-tracking forest rehabilitation

The number of seedling stocks in the RAFI Native Trees Nursery has grown to 117,000, representing 210 species. The nursery provided 12,500 seedlings planted in Talisay City and over 10,000 seedlings in various municipalities and cities during the Run 2 Plant 4 GREENIN Philippines in June 25.

RAFI, through its GREENIN Philippines Program (Generation REdemption and Expansion of Natural resources INitiatives in the Philippines Program), became one of the partners of Sacred Heart School-Ateneo de Cebu’s “Blue Tree Project” and provided training to the students on the proper planting and caring of seeds. The project features a campus native tree nursery, which is RAFI’s first school-based satellite nursery.

The Run 2 Plant 4 GREENIN Philippines won the “Quill Award of Merit for communication management: economic, social, and environmental development” in the Philippine Quill Awards. The “Tree of the Month”, which comes out in The Freeman twice a month, was also hailed as a finalist under the writing category of the communication skills division of the Quill Awards.

GREEN INITIATIVES. The first Run 2 Plant 4 GREENIN Philippines (top photo), a massive tree-planting activity, won for RAFI a Philippine Quill Award. At the awarding

ceremony (photo above) were RAFI Communications Officer Haidee Emmie Palapar, Deputy Operations Officer Amaya Aboitiz, Executive Committee Chair

Ma. Cristina Aboitiz, Chief Operating Officer Dominica B. Chua, Integrated Development Executive Director Rowena Bandola-Alensonorin, Biodiversity Assistant Myryl Mendoza, and GREENIN Philippines Program

Coordinator Neil Papas, with The Freeman News Editor Lucky Malicay. RAFI also trained students of Sacred

Heart School-Ateneo de Cebu for their “Blue Tree Project (second photo).

92011 ANNUAL REPORT

Spurring action to save the forest

Seeing the call to hasten forest rehabilitation because of the alarming impact of climate change, RAFI has embarked on the ambitious task to plant five million trees in five years. The trees will be planted in more than 2,900 hectares of vacant lots declared as protected watersheds.

One of the means to achieve this goal is to organize a massive tree planting activity all over the province. In an effort to make the activity fun and beneficial to the Cebuanos, the run component was added. Thus, the creation of the Run 2 Plant 4 GREENIN Philippines.

GREENIN Philippines Program, which stands for Generation REdemption and Expansion of Natural resources INitiatives in the Philippines Program, seeks to develop, protect, enhance, and co-manage denuded forestlands, brush lands and degraded residual natural forests by planting native tree species.

“The event has two segments—the run and the planting. It is a unique approach since it does not only promote health among people by running but also promotes the health of the environment by planting native tree species, thus benefiting both people and environment,” said RAFI’s Integrated Development Executive Director Rowena Bandola-Alensonorin.

The event was held on June 25, 2011 in commemoration of the Philippine Environment Month and in relation with the World Environment Day celebration. It is also organized in collaboration with the Cebu Provincial Government, local government units (LGUs), Department of Environment and Natural Resources (DENR), and various government institutions and corporate groups.

Through the Cebu Provincial Government, the Run 2 Plant 4 GREENIN Philippines was integrated in the Our Cebu Program’s environmental protection and enhancement component. The Province of Cebu and RAFI implemented the expanded Green and Wholesome Environment that Nurtures Our Cebu Program with the aim of making Cebu the ideal place to live, work, play, invest, and do business in.

Alensonorin also pointed out that sustainability has always been considered under the GREENIN Philippines Program, thus, the activity did not end after June 25, 2011. Through the Our Cebu Program, the Cebu Provincial Government and RAFI will undertake post-planting activities in collaboration with DENR, various LGUs, partners, and volunteers to ensure that the native tree seedlings planted will grow and become forests after a few years.

The Run 2 Plant 4 GREENIN Philippines

was organized to be able to meet RAFI’s goal of

planting five million trees in five years in Cebu’s

protected watersheds.


RAFI initially targeted to plant 100,000 native tree seedlings planted by 20,000 participants in 56 hectares of land in Cebu Province. Actual accomplishment reached 239,580 native tree seedlings planted by 55,372 participants in 115.052 hectares.

“This only shows that the 48 towns and cities who participated in the event are taking action in rehabilitating our environment,” Alensonorin said.

In the central event held in Jaclupan, Talisay City, the target of 5,000 participants was surpassed and reached 10,000.

“Unlike other running events in which we are made to pay for registration fee, Run 2 Plant 4 GREENIN Philippines does not require us (to pay). It is also a good event because it gives us a chance to do something for the environment to mitigate the effects of climate change,” event participant Renato Boy Novero shared.

RAFI expressed support and committed its GREENIN Philippines Program to complement DENR’s National Greening Program developed under Executive Order No. 26 issued by President Benigno Aquino III last Feb. 24, 2011. The Run 2 Plant 4 GREENIN Philippines was used as a launching pad of the National Government’s National Greening Program for the Central Visayas.

RAFI also supported the Department of the Interior and Local Government’s (DILG) Billion Trees Program. DILG has sealed an agreement with RAFI and the Cebu Provincial Government to help in the implementation of the National Greening Program.

“This is to make sure that the energies and resources of DILG and its development partners are directed toward the realization of the National Greening Program (NGP),” DILG Secretary Jesse Robredo said in his letter to RAFI Chief Operating Officer Dominica B. Chua.

The Run 2 Plant 4 GREENIN Philippines drew a lot of runners (top right photo). Whether the planting was held on the mountain (third photo) or in the coast (left photo), the event drew even more planters, including RAFI Board of Trustees member Roberto Gothong (second photo). As launching pad of the National Greening Program, a memorandum of agreement signing was done between the Department of Environment and Natural Resources, represented by Region 7 Executive Director Maximo Dichoso, and the Provinces of Cebu and Negros Oriental, represented by Governors Gwendolyn Garcia and Roel Degamo, respectively (top left photo).

112011 ANNUAL REPORT

Leading initiatives in cancer protection

In Oct. 18, Moonwalk: A Walk for Breast Cancer Awareness gathered 3,000 participants from different sectors, reflecting a 100 percent increase in participation from last year. They formed the first human pink ribbon. This annual event of the Eduardo J. Aboitiz Cancer Center (EJACC) is in collaboration with private companies and organizations, cancer support groups, government agencies, schools, and communities. Proceeds of the activity benefited high-risk women who were offered free mammography screening.

A total of 2,400 women were screened through the active screening activities—six center-based, 16 outreach, three private companies, and one school—organized by EJACC in partnership with hospitals and clinics. Destiny Medical Fund supported these activities by providing funds for supplies and logistics for cervical screening that benefited 886 recipients. EJACC also assisted 27 patients who availed of free cancer treatment.

A total of 2,327 participants benefited from the 26 cancer fora and lectures, six of which were organized by EJACC in its center, 16 in communities, three in private companies, and one in a school.

Eleven volunteer nurses were trained to hone their psycho-social skills.

PINK ALOUD. The participants of the 7th Moonwalk: A Walk for Breast Cancer

Awareness formed the first ever human pink ribbon (top photo) EJACC also trained

nurses in psycho-social skills (photo above).


Exposing cancer

Before implementing any program of cancer control, it is necessary to understand the burden of cancer in a community. Cancer refers not only to a single disease but to other types of diseases as well.

“It is not sufficient to know the total number of cancer cases in a population because patterns of occurrence widely vary according to geographical areas, ethnic groups, socio-economic categories, occupation, and other cultural factors. Data on cancer have to show the distribution of the different types of cancer in a population,” Ronald delos Reyes, Program Coordinator of the Eduardo J. Aboitiz Cancer Center (EJACC), said.

The collection of data, a basic tool in any cancer activity, is one of the important programs of EJACC that started in 1988. It is called the Metro Cebu Population-based Cancer Registry, the only active registry in the Visayas and one of three cancer registries in the country.

“The role of the population-based cancer registry is to collect data that will give an accurate picture of cancer in a population, in order to understand, thus, control, the impact of cancer in the population of Cebu,” delos Reyes explained.

Knowledge of the types of common cancers in

a certain population permits studies to identify the causes. At the same time, the registry data can evaluate the effects of screening programs or other activities designed to reduce cancer incidence in the population, as well as to study the effects of early diagnosis and treatment. The cancer registry data can also be used to plan requirements for the personnel, medical facilities, and equipment needed for the diagnosis and treatment of cancer patients.

“The cancer registry is, indeed, a great help for me as a nurse because it helps me keep track, more or less, on the accurate population of cancer incidents here in Metro Cebu. It helps me gain a better understanding of cancer and its available treatment,” Niña Kristine Alinsonorin, a registered nurse, said.

Being the sole repository and source of local cancer information, the Metro Cebu Population-based Cancer Registry has played a crucial role in the passage of the Cebu City Ordinance no. 2162, an ordinance creating the “Cebu City Task Force for the Protection and Welfare of Persons with Cancer and Providing Funds Therefore.”

Local information on cancer from the different local government units (LGUs) of Metro Cebu has been very valuable in our cancer advocacy campaign as it provides us with an objective eye

The Metro Cebu Population-based

Cancer Registry of the RAFI Eduardo J. Aboitiz Cancer Center gathers data from the different

hospitals and civil registries in Metro Cebu

(photo above and top photo in next page).


The cancer registry guides EJACC in coming up with interventions on cancer, such as free breast

examinations (photo above).

in prioritizing programs and projects aimed at controlling the common types of cancer in a given city or municipality.

“With the existence of a Population-based Tumor Registry in our locality, the Metro Cebu has created a great impact not only on the medical community but also on the general populace. This is a basic tool in any cancer activity. Our linkage with the International Agency for Research on Cancer (IARC) based in Lyon, France has validated these results, following their standard process of registration and data analysis,” Dr. Ma. Noemi Alsay-Uy, consultant to the Metro Cebu Population-based Cancer Registry, said.

Delos Reyes recalled that when the EJACC opened in 1988, the program was focused on cancer data-gathering and information dissemination, believing that these thrusts contribute to stemming correct information on cancer in Cebu.

“However, that mindset soon changed, thus, with research comes the screening, early detection and treatment,” he said.

Alsay-Uy pointed out that EJACC, to date, has already made efforts in the prevention of liver cancer through hepatitis B vaccination, cervical cancer screening through pap smear and, recently, active breast cancer screening through mammography.

“Based on the data gathered, liver cancer, cervical cancer and breast cancer are among the top ten cancer cases,” Alsay-Uy said.

At present, local cancer information available in the Metro Cebu Population-based Cancer Registry includes all types of cancer cases covering the period of 2010 and earlier. An on-going data gathering that covers the 2011 reports is in progress.

“The cancer registry is seriously considering partnering with research groups or centers in conducting an in-depth study on cancers common to one area or gender but not to another. Likewise, we are also planning to conduct a study on the economic impact of cancer in Cebu,” delos Reyes said.


Uplifting the lives of the homeless

After signing a memorandum of agreement in Sept. 5 for the construction of a home for 100 elders and persons with disabilities, called “The House of the Lord”, RAFI and the Missionaries of the Poor (MOP) broke ground on a 4,500 sq.m. land last Nov. 21 at Uldog Street, Poblacion, Talisay, Cebu.RAFI also turned over the second phase of the

SHELTER FOR THE HOMELESS. RAFI President Roberto E. Aboitiz (second from left), together with the Missionaries of the Poor brothers and Msgr. Esteban

Binghay (rightmost) of the Archdiocese of Cebu, breaks ground for the proposed home for the homeless elderly and disabled.

Monastery and Formation House, a center that houses aspirants and professed brothers of MOP.


in MICRO-FINANCE & ENTREPRENEURSHIP



Boostingmicro-financing

RAFI Micro-finance recorded 16,122 total active clients and 7,099 new clients in 2011, increasing its loan portfolio by 24.87% in 2011 as compared to 2010.

RAFI Micro-finance also enhanced the coverage of its insurance products and still continues to develop new product packages that are relevant to meet the needs of its clientele.

A group of Young Minds Academy Season 5 scholars whose members are from the University of the Philippines High School in Cebu helped the RAFI Micro-finance clients sell their products through online marketing, in a project called “Ingenious Products from Brilliant Minds, from Able Hands”.

RAFI Micro-finance signed a memorandum of understanding with the University of San Carlos and PinoyME Foundation on March 2 to manifest a tripartite collaboration in coming up with a micro-finance course to enable students to learn the concepts and principles of the industry.

In order to improve customer satisfaction, RAFI Micro-finance lets its staff and managers undergo skills and team-building trainings.

SUPPORTING EMPLOYEES AND THE INDUSTRY. RAFI Micro-finance staff and managers underwent the Kool Adventure Camp

expedition program (top photo) to develop its people. It also signed a memorandum of understanding (photo above) with University of

San Carlos, represented by President Dionisio Miranda (center), and PinoyME Foundation, represented by President and Chief Executive

Officer Danilo Songco (fourth from left), to come up with a micro-finance course in Cebu.


Celebrating clients

NANAYS DAY OUT. The 8th General Assembly of RAFI

Micro-finance assembled a huge number of its clients (top photos) for a day of recognition (leftmost photo)

and fun (bottom photos). RAFI Board of Trustees member Agnes Lacson

(left photo) was keynote speaker.

The 8th General Assembly of the RAFI Micro-finance, which carries the theme, “Spreading the RAFI Brand, Celebrating Success”, gathered nearly 4,000 clients from Cebu, Bohol, and Leyte on Dec. 3 at the University of San Carlos Gymnasium.

The traditional awards program recognized clients and officers of the Client Advisory Board.

The sidelights of the General Assembly included a trade fair, where various products from the different towns in Cebu were showcased; medical mission conducted in partnership with RAFI’s Eduardo J. Aboitiz Cancer Center, which offered consultations and cervical screening to 450 women and children; and a Kid’s Corner where the children of the clients enjoyed a film showing, courtesy of the Dolores Aboitiz Children’s Fund of RAFI.


A Leader in her own right

Example is better than precept.

When Espelita Sordilla was declared Best Chairwoman during the Client Awards of the RAFI Micro-finance in 2011, she jumped for joy and with tears in her eyes, hugged her group mates tightly. She went to the stage and accepted her award like she did many times before. Her face glowed and she was in awe, overwhelmed that she won again, with four other nominees also coveting the title.

She raised her prizes proudly to the crowd of 4,000 people as she walked down the stage with joy and confidence.

Espelita is a family woman, a micro-entrepreneur for more than 30 years, and the very dynamic, self-motivated and driven chairwoman of the Solid Rock group from Bato, Sibonga, Cebu.

Life’s challenges did not hinder her to achieve great things. She may not have the material wealth, but she made a great impact on the lives of her groupmates, who also strive for a better life. Since her membership in 2000, she remained consistent in upholding her duties as a chairwoman with independence and trustworthiness.

Espelita has always implemented policies for her group. Nobody in the Solid Rock group ever failed to pay their weekly dues. When they are absent during their meeting, as a rule, they would submit excuse letters, which are then properly documented and arranged in their center meeting place.

“It is better to have few people in the group who show love and passion rather than having so many

Espelita Sordilla with the women from Solid Rock (top right photo)

and at her center meeting place (photo above). When she is not with her group,

she is busy with her hog-raising business (bottom right photo).

members but are not united in harmony,” Espelita said in Cebuano.

She constantly reminds her group of RAFI Micro-finance’s policies on credit and savings. Updates are discussed to keep everyone well-informed, giving them no reason to violate any provision.

Every time the Solid Rock group members come for their regular meeting on Wednesdays, the singing of the Philippine National Anthem, reading of the minutes from the previous meeting, and Bible sharing are part of their activities.

Espelita facilitates the Bible sharing and asks the members to impart their thoughts. She wants her group to be empowered, keeping them motivated to share their insights and to let their voices be heard. She encouraged the members of Solid Rock to apply for membership with Philhealth, to have insurance, and apply for legal benefits.

Her group is considered as one of the most organized groups under the RAFI Micro-finance program. It organizes various activities for the community, such as feeding programs for children, tree planting, clean and green drive within the barangay, and participating in the Flores de Mayo, among others.

Over the years of membership in RAFI Micro-finance, Espelita’s life has changed significantly. She is able to provide the needs of her household and send her children, and even nephews and nieces, to school through her farming and hog-raising business.

She may not be the best athlete or best speaker but her unwavering perseverance to improve her life and that of others makes her a leader.


in CULTURE & HERITAGE



A one-of-a-kind heritage tour

Gabii sa Kabilin (Night of Heritage) saw its fifth successful

run on May 27. The number of participating museums

and heritage sites doubled from nine to 18. The route was

geographically expanded to include Mandaue City, which

showcased its culinary heritage.

The Municipality of Argao successfully staged its own

Gabii sa Kabilin on the same evening.

EVENING TO REMEMBER. The Gabii sa Kabilin became bigger in its 5th run, with longer queues (second photo) and more participating museums and heritage sites, such as the Mandaue City Plaza, which showcased its

culinary heritage (bottom photo). The Marigondon Children String Orchestra (top photo) performed at the Casa Gorordo Museum.


Through RAFI’s memorandum of understanding with the

University of San Carlos, Kabataan, Kultura ug Kabilin

(KKK) successfully held its third run in 2011. Nearly 1,700

youths (a leap from the previous year’s 400) in Filipiniana

costumes promenaded the city’s historic district during

the event.

Student participants picked up lessons anchored in their

anthropology, sociology, and history curricula as they took

a guided tour of Cebu City’s museums and historic sites.

CONVERGING THE YOUNG. Kabataan, Kultura ug Kabilin attracted a large number

of youth (right photo), most of them wearing Filipiniana costumes while visiting participating museums (second

photo) and riding the tartanilla (top photo).

Engaging the youth in culture and heritage


Teaching heritage to kids

In 2011, 325 children (270 from nine inner-city barangays and 55 from Cordova town’s eight public schools) attended the Kids at the Museum, a significant increase from the 180 participants in 2010.

The workshops in visual, literary, and performing arts were accomplished through partnerships with cultural workers from the city’s various museums, educators from Cebu Normal University and Cordova’s elementary schools, writers from the Women in Literary Arts, corporate sponsors, and the Dolores Aboitiz Children’s Fund.

One of the highlights of Cebu City’s year-long celebration as an ASEAN City of Culture, the program’s culminating activity was graced by Mayor Michael Rama and Councilor Margarita Osmeña.

CULTURED KIDS. Cebu City Mayor Michael Rama took

time out to be with the children during the culmination of Kids at the Museum

(top photo). It was the first time that Kids at the Museum reached Cordova, Cebu

(above photo).


Preserving house traditions

KEEPING PROMISES. Yearly, RAFI celebrates Home Traditions, like the Sinug sa Casa Gorordo (top photo) and Pista ni San Juan (photo above), as part of its commitment when it acquired the Casa Gorordo from its former owners.


Leading by faith

Nang Titang picks up her drum. It is a contraption made of brass and cowhide wound with hemp at its side for her to hold. The old thing looks almost too big for her old, bent body. She takes her time to sit down beside a well and lay it on the bricks. This is the cue for the dancers. They spread out on the lawn and fall into formation. With a piercing glance and a slight tilt of her head, she strikes the taut leather, and the dancing begins.

Near-total deafness claimed the ears of Estelita “Nang Titang” Diola by the time she turned eighty, but the rhythm of the sinug dance-prayer, which she has been performing since she was a seven-year-old little girl, has become an instinctive memory that defies forgetfulness in old age. She now feels, rather than hears, the bass of the sinug beat like her own heart.

The sound that comes from her drum is a low throbbing and blends with a sharper staccato executed by two drummers beside her. She had taught these two young men the beat when they were still small boys. Their playing enlivens the dancers who shuffle their feet to the movement of the water current. Lances, swords,

and shields are waved; prayers to the Señor are woven into the dance; and the story of the Bisaya’s conversion to Christianity is retold.

For Nang Titang, the performance of the Sinug is more than just an occupation, it is a devotion. Performing it yearly and ensuring the survival of its dance steps, oraciones and beat are her offerings to the Santo Niño, the pre-eminent icon of Cebuano culture. Thus, it is her year-round vocation to teach the tradition to younger people, especially children, in her barangay.

For many years now, RAFI, through its Culture & Heritage focus area has been with her in taking the lead to preserve this cultural tradition.

It had been the practice of Nang Titang’s family to perform the sinug for Parian families, like the Gorordos, as a prayer for departed loved ones. When RAFI acquired Casa Gorordo and turned it into a museum, it pledged to continue the traditions of the family as part of its advocacy to conserve and share with confidence Cebuano culture with the world. Thus, it is considered, to this day, a Casa Gorordo Museum House Tradition.

Estelita “Nang Titang” Diola and the kids

she trained to dance performs the Sinug at the

Casa Gorordo Museum grounds.


Nang Titang is called the “Keeper of the sinug beat”

(top photo). During many Sinug sa Casa Gorordo,

she chants prayers for souls (second photo),

leads the dance-prayer (third photo), and teaches

the audience to dance their petitions (last photo).

In the 1980s, the Sinulog festival was tagged as a main feature of the Cebu brand. The dance’s choreography was modified and embellished to attract tourists. This was the beginning of the street dancing popularly associated with the Sinulog. While this brought prestige to the city, it overshadowed the sinug dance tradition and sinug dance troupes disappeared. But Nang Titang and her Turang Sinug Dance Troupe continued to perform it, thanks to the unwavering patronage of some Cebuano families and RAFI.

Recently, in large part due to RAFI’s efforts to bring the public’s attention to the sinug, more and more people are regaining knowledge and appreciation of the dance-prayer. A palpable result is the growth of the number of young people and heritage enthusiasts who come to Casa Gorordo Museum in January to witness the Turang Sinug Dance Troupe perform. In effect, the spectacle of the Sinulog festivities is complemented by a more intelligent understanding of its history.

“For her efforts and contributions, Nang Titang was endowed with the Perlas Award as Filipina Keeper of Faith by the Philippines Foundation, Inc., a recognition of her qualities as a role model,” said Dr. Jocelyn B. Gerra, Executive Director of the Culture & Heritage unit of RAFI. She said RAFI is happy being Nang Titang’s partner in keeping faith in religious traditions.


Always new exhibits

VARIETY OF EXHIBITS. The Casa Gorordo Museum puts up exhibits from the religious, like the “Semana Santa” (second photo); historical, like the “Mga Bayani sa Sugbo” (last photo), to the avant-garde, such as the “Next Wave” exhibit (top photo).

The Casa Gorordo Museum housed familiar as well as breakthrough exhibits in 2011. These include “Sangpit kang Senyor!” and “Semana Santa”, which supported the two house traditions Sinug sa Casa Gorordo and Kuwaresma procession, respectively.

As a tribute to the Foundation, the exhibit “RAFI @ 45” was put up in November. Candelaria earmarked the February religious observance of the same name. Casa Gorordo Museum pleased patrons and visitors by toying with avant-garde art through “Next Wave”, which showcased works of winners of the 2009 Ateneo Art Awards. “Mga Bayani sa Sugbo”, launched in August, brought to the fore Cebuano contributions to nation-building.


in LEADERSHIP & CITIZENSHIP



Bringing together leaders for Cebu

TAPPING EXPERTS. RAFI brought in two sets of volunteers

who offered their expertise for the Mega Cebu Project. Here, the IBM Executive

Service Corps volunteers present their findings and recommendations to Mega Cebu Project members and

representatives of the 13 cities and municipalities.

RAFI increased awareness, appreciation, and motivation of various stakeholders on the need for a collaborative mechanism for planning and implementation and on the thrust and relevance of a city-region/smart growth framework through the Mega Cebu Project.

In collaboration with 34 multi-sectoral members, RAFI formed the Metro Cebu Development Coordinating Board (MCDCB). In the process, the Foundation was designated as anchor of the Research, Program and Organizational Development (RPOD) of the MCDCB.

RAFI assisted and collaborated with three IBM Corporate Service Corps, six IBM Executive Service Corps volunteers, and one IBM ASEAN volunteer. They came up with a framework and roadmap for information management, planning framework, and technology initiatives, as well as identified priority areas for cooperation for the Mega Cebu Project.


Dreaming big for Cebu

A vision of a city-region where cities and municipalities collaborate with each other while maintaining geopolitical integrity, prompted the creation of the Mega Cebu Project.

The Province of Cebu, 13 cities and municipalities, and partners in the private sector and civil society are working together to push for integrated development and planning geared towards sustainability, founded on economic prosperity, livability, social equity and inclusion, and ecological integrity. This collaboration and undertaking is the Mega Cebu Project

Cebu’s progress and urbanization have led to increasing challenges and problems in different social, economic, and environmental dimensions. This has led to a decline in Cebu’s competitiveness and attractiveness as an area for investment and settlement. Cebu is at a critical juncture in its development, and it is important to establish directions and strategies to determine its near term and future position. This includes rethinking and planning its development and growth as a metropolitan region, which needs to be guided and informed by a collective brand and anchored on a shared agenda and vision of the future.

On April 1, 2011, the Metro Cebu Development Coordinating Board (MCDCB) was organized with the signing of a Memorandum of Agreement. This move was anchored on the Philippine Constitution’s and the Local Government Codes’ premises and provisions for inter-local coordination and cooperation, and the principle of public-private partnership.

As agreed among members and recognized by the Regional Development Council, the MCDCB roles and functions include the formulation of integrated development strategies, policies and standards addressing issues in several priority areas. It also facilitates and monitors implementation of its recommendations and plans, and is responsible for generating resources to support its operations.

Currently, the MCDCB is chaired by Cebu Governor Gwendolyn Garcia, and co-chaired by Cebu City Mayor Michael Rama and RAFI President Roberto E. Aboitiz from the private sector. The members of the board are the mayors, regional directors or heads of NGOs, and heads of civil society and private sector organizations.

RAFI President Roberto E. Aboitiz, as co-chair from the private sector to the

Metro Cebu Development Coordinating Board,

addresses the Board in one of its sessions (photo

below and top photo in next page).


RAFI was designated as the Research, Program and Organizational Development (RPOD)-Project Management Office of the MCDCB. As the RPOD, RAFI serves as the coordinating and operations unit and process facilitator, providing technical support and guidance and facilitating the organization, integration, and complementation of MCDCB’s various functions, structures, plans, programs, and efforts.

Under the MCDCB-RPOD are focus area-based committees, which includes integrated development and planning; environment and public safety; human resources, assets and partnerships; and information and communications technology (ICT) and knowledge management, composed of chairs, co-chairs and members from MCDCB as well as other select individuals and organizations from the Cebu community.

Roberto E. Aboitiz shared the vision of Mega Cebu

in a forum.

The Mega Cebu Project covers several phases: the initial phase involves organizing, which includes gathering and consolidating leaders’ and citizens’ views and identifying priorities.

The next phases require creating a shared brand and common vision and agenda. This will serve as the framework and foundation in building and deciding on an integrated development plan for the city-region in the future.

The Mega Cebu Project process is a journey where stakeholders—citizens and leaders alike—are involved in creating the city-region’s vision-brand and collective agenda, and in developing and implementing the plan. The Mega Cebu Project is still in its early stages of organization and there are many challenges ahead. Multiple perspectives and multi-sectoral factors need to be considered through a multi-disciplinary, multi-level and multi-modal process of engagement.

The strong support from key local government units, leaders of the private sector and business, NGOs, the academe, and other local leaders, including Cebu Archbishop Jose Palma, is a positive indication that it will move forward.

Though much needs to be done and addressed to make the Mega Cebu Project work, the passion to create a better Cebu through a coordinated city-region and to improve the living conditions of Cebuanos remain to be the driving force for its proponents to press on and continue their efforts towards realizing their collective goals and reach desired outcomes.


Upscaled leadership training for the next generation

PREPARING THE YOUTH. YMA season 5 graduates (top photo) went through

extensive immersions related to the theme on poverty. In the photo above, the scholars experienced hard labor while sorting charcoals in Taboan, Cebu City.

The Young Minds Academy (YMA) season 5, an eight-month leadership and citizenship development program of RAFI, produced 83 scholar graduates.

For this run, the scholars whose proposals passed implemented their projects under YMA’s service track component. The rest underwent the internship and social marketing component.

YMA season 5 is supported by the City Savings Bank and Unionbank of the Philippines.


Socializing change

The first thing Jessica does when she opens her computer is access her Facebook account. Just like many young people today, she used to spend long hours checking status updates and chatting with friends. But now, she uses her time promoting her supported cause online.

Jessica Therese Vestil, 15, together with four other teammates from the Young Minds Academy (YMA) of the Eduardo Aboitiz Development Studies Center (EADSC) of RAFI, partnered with the Philippine Business for Social Progress (PBSP) in coming up with a social marketing initiative to promote water conservation and contribute to the alleviation of poverty. Their initiative entitled, “Operation Agua”, aims to gather support and raise awareness on the importance of the Buhisan Dam and watersheds towards integrated water resources management and sustainable livelihood for upland communities.

“Many people do not know it, but the Buhisan Dam has been operating for a hundred years already,” Maria Luisa Largo, PBSP Coordinator, explained. “Because Cebu is groundwater dependent, we need to protect our watersheds.”

PBSP, in collaboration with various groups, organizes tree planting activities around the Buhisan watershed. Upland farmers are tasked to produce the seedlings, thus, providing them with an alternative source of income. PBSP also implements other projects in the area, including

the area’s development for ecotourism.

Through Operation Agua, Jessica and her team came up with creative ways of doing social marketing for the Buhisan Watershed program. Taking advantage of the popularity of social networking sites, the team came up with a Facebook page containing information about the Buhisan Dam and on how people can support its protection. They encouraged friends and networks to visit and like the page, to read and be informed, and to help. The page received more than a thousand hits in less than a month.

The team’s flagship campaign, “Buy a Seedling”, brought in most of the funds that they raised.

“Each seedling costs only Php 20. Once the seedlings are bought, local farmers will plant them in areas within the watershed. So you don’t only help us raise funds, you also make local farmers happy by providing them livelihood,” according to the team’s Facebook page.

The team also encourage people to participate in tree planting activities, to donate funds, and to sign a pledge of commitment indicating their willingness to help spread information about the cause, do volunteer work, or simply start conserving water.

“Apart from the supporters we got from the online campaign, we also convinced our school to buy seedlings and organize a tree planting

Jessica Therese Vestil (second from right) with

her YMA groupmates: (L-R) Kimberly Garces, Althea

Anog, Mary Ann Langomez, and Charilyn Lopez.


The team was awarded “Creative Young Minds” when they graduated from YMA (top left photo), for

promoting the Buhisan Dam and Cebu’s watersheds, such as gathering signatures of commitments (right

photo) and planting trees in the area (top right photo).

activity,” recalled Jessica. “We even went around malls and approached people we don’t know to buy seedlings or sign the pledge of commitment. It was a challenging, yet meaningful, experience for us.”

By adopting the “service track” in the YMA project development phase, YMA Season 5 scholars were given the opportunity to start implementing their community-based projects, if qualified, within the YMA program. This was made possible through the help of partner organizations like PBSP, which served as field mentor and co-implementing partner of the scholars. RAFI gave the grants to support the qualified projects.

Other partner organizations were the Fellowship for Organizing Endeavors (FORGE) Inc., Mag-uugmad Foundation Inc., Gawad Kalinga - Cebu, Lihok Pilipina Foundation Inc., Kadasig Parents Association Inc. (KAPAI), Millennium Island Residents Association Inc. (MIRAI), RAFI Integrated Development unit, RAFI Micro-finance, and the local government units of Cebu City, Consolacion, Liloan, and Cordova.

“We wanted to provide more opportunities for on-the-ground citizenship,” Evelyn Nacario-Castro, EADSC Executive Director, said. “Social marketing, including the use of social networking

sites which have become very popular among the youth, is one way of engaging young people in development service by using their channel of communication.”

This was the first season where YMA adopted the Internship and Social Marketing track. Through the projects of the YMA scholars, like the Operation Agua, RAFI hopes to encourage more young people to channel their enthusiasm in social networking towards promoting and supporting community development initiatives.

After around a month of social marketing, Jessica’s team was able to sell close to 500 seedlings, got more than 700 signatures of commitment, and raised around Php 15,000. The team was given the Creative Young Minds Award for having the best social marketing initiative in their generation during the Best of Young Minds Conference, Awards and Graduation in October 29. But more than the recognition, the experience they had in YMA inspired them to do more.

“Because of YMA, I am inspired to devote more of my time for the good of others,” added Jessica. “I am inspired to sacrifice my happiness and time for the sake of service. The change has started in me already; now it’s my time to be a ripple and change others as well.”


Expanding cross-cultural understanding

DIFFERENT. The MYX participants (top photo) underwent volunteer work-cum-immersion in Cebu City’s Bajau community, like building houses (second photo) and helping Bajau women weave mats (left photo).

Twelve Dutch youth and three adult leaders and eight Belgian youth and two adult leaders underwent the first Multi-city Youth Xchange (MYX), a three-week youth exchange and immersion program organized by RAFI in collaboration with the Vereniging Haarlemmermeer-Cebu, City Government of Kortrijk, Cebu City Government, Aboitiz Leaders of Excellence, 28 other local groups, and various individuals.


Deepening understanding of issues

AIRING PUBLIC CONCERNS. The Understanding Choices Forum was

used as venue for IBM Executive Service Corps’ to hand recommendations to

improve the Cebu landscape (top photo) and to present to the public the 5th RAFI Triennial Awards finalists (photo above).

With urban development as the theme, RAFI conducted four fora and round table discussions through its Understanding Choices Forum to 344 multi-sectoral participants, engaging 20 local and international experts/resource persons representing nine different countries.

In different sessions, the fora facilitated and broadened understanding on the impacts of urban development and governance and identified policies and programs to respond to such issues; presented a sustainability framework; and discussed the role of businesses in ensuring sustainable development beyond local economic growth.


RAFI started construction of the Philippines’ first outdoor experiential education center in Barangay Cansumoroy in Balamban, Cebu in 2011. The tropical modern-inspired center, anchored on the Kool Adventure Camp of RAFI, is designed to appeal to both local and foreign users of the camp. The camp aims to train 5,100 youth and 2,400 adults every year.

As of December 2011, the center is 70 percent complete. It will open in 2013.

Building the first outdoor experiential education center

FIRST. The group of world-renowned furniture designer Kenneth Cobonpue (second from left) designed the iconic

structure for RAFI Kool Adventure Camp’s first outdoor experiential

education center.


Fitting programs for the youth

In collaboration with Outward Bound Singapore, RAFI, through its Kool Adventure Camp (KAC), conducted a 10-day land and sea expedition to 19 college students of Catholic Junior College of Singapore from May 30 to June 8.

To discover their capabilities when exposed in a challenging environment, the campers paddled their way around the islands of Olango, Caohagan, and Pandanon, and trekked to the watershed areas and mountains of Mt. Manunggal. The expedition also included a service learning component wherein participants engaged in a mangrove planting activity and a feeding program for the children of Pandanon Island.

KAC facilitated a three-day discovery camp for 59 beneficiaries of the Child and Family Healing, Recovery and Re-Integration Program

to help them improve their self-awareness, build positive outlook and confidence, and set personal goals, through games, creative presentations, self-evaluation, and small group sharing. Before the camp, the participants experienced corporal punishment, substance abuse, juvenile delinquency, and other child-related issues.

KAC also conducted an Urban Backpacking Challenge for 46 Grade 4 to 6 students of Sacred Heart School-Ateneo de Cebu from July 22 to 24. With the aim of developing a deeper sense of servant leadership among the participants, KAC led the students to explore various areas of downtown and uptown Cebu City to gain a deeper understanding and appreciation of the culture, history, and people of the community.

OUT OF COMFORT ZONES. Youth from OBS went through challenges in their expedition program (above left photo) and service component (top right photo). Elementary school kids from the Sacred Heart School – Ateneo de Cebu rode a jeepney for the first

time in their Urban Backpacking Challenge (photo above).


Updating trainors

BUILDING SKILLS. Facilitators from RAFI’s Kool Adventure Camp attempt to build a fire from whatever materials they could find,

as part of their continuous adventure training.

The Kool Adventure Camp (KAC) of RAFI conducted the first Leave No Trace (LNT) Outdoor Ethics Trainors Backpacking Program held in the Philippines (as sanctioned by the LNT Center for Outdoor Ethics based in Boulder, Colorado, USA) for 12 individuals at the Central Cebu Protected Landscape. The participants are now certified by LNT Center for Outdoor Ethics and equipped with the proficiency and skills to teach LNT techniques and ethics to their clients, students, and outdoor users in critical protected areas.

Peter Jay Alera, technical engineer and security and safety officer of KAC, passed the ACCT Practitioner Certification Standard (Level 2), the

only Filipino of the three takers (the two others were Americans).

The ACCT Practitioner Certification Standard (Level 2) is a credential held by an individual, which demonstrates the capability of the holder to conduct adventure programming and challenge course programs delivery experience, and that he passed the accompanying knowledge and skills test that meet the standards established by the ACCT Standards, USA.

With Alera’s feat, KAC has advanced its challenge course proficiency and leveled up its standards.


Advocating experiential education

The Kool Adventure Camp (KAC) of RAFI is building this year the first and only outdoor experiential education center in the Philippines. It broke ground on March 26, 2011.

KAC, existing for more than a decade, is a pioneering adventure-based education program that provides learning and development opportunities for individuals as well as organizations through experiential education.

Experiential education enables participants to learn through various physical challenges, such as the ropes courses.

The primary target beneficiaries of KAC for youth adventure camps are public high school students. Since 1999, KAC organized more than 200 camps, with 30 percent from public high schools, benefiting more than 2,000 students. KAC also has 450 expedition-journey undertaken by a group of people with a definite objective—since 2008.

Its program offerings seek to build character, develop competences and inspire active citizenship.

“We aim to equip individuals and organizations with the right tools so that they may discover life’s abundance, appreciate its challenges and thrive in its fullness,” Edvan Loh, former deputy director of OBS for 15 years and now KAC’s Director, said.

KAC also provides professional development programs, such as culture building program, value integration program, leadership

enhancement adventure program, leadership expedition program, and other customized programs based on the training needs of companies and adult organizations.

“KAC is the preferred partner in adventure training of Outward Bound Singapore in the Philippines,” Loh said.

One of KAC’s milestones was in 2008 when the first Outward Bound Singapore overseas youth expedition program was conducted in Cebu through KAC. From then on, OBS still partnered with KAC in organizing youth expedition programs.

Loh shared how partnership between OBS and RAFI started. “When KAC first approached OBS for training opportunities in 2006, OBS conducted a detailed study of what RAFI and KAC does, as part of OBS’s standard practice when partnering with another organization. What OBS found was an organization with a mission closely aligned with its own; that is, developing and unleashing the potential of youths and individuals, regardless of age, gender and background.”

OBS is a member of the global Outward Bound network and ranks as one of the best in facilities, training expertise, and safety. It is Singapore’s leading organization which provides outdoor education and adventure learning programs to help people realize their full potential. Since 1967, more than 250,000 people have benefited from their journey of self-discovery at OBS and emerged mentally and physically stronger.

RAFI Kool Adventure Camp team, headed by

its Director Edvan Loh (center of photo).


Loh added that the relationship between OBS and RAFI is not completely one-way. In his opinion, OBS could learn a lot from RAFI’s overall mission and programs. Community development, citizenship, culture and heritage, and environmental advocacy are areas in which OBS has much to learn.

He believes that OBS offered him the opportunity to teach more than just knowledge. It offered him the opportunity to impart real life skills that cannot be found in textbooks.

“To me, adventure education forms a critical component of any person’s development. It enables a person to learn about oneself, the environment, and the community at large. It empowers him or her with the belief to be the best for oneself and others. No other learning enables you to do this,” Loh said.

Experiential education also develops and/or improves the leadership, self-concept, academic performance, personality, interpersonal behavior, and adventuresomeness of the individual.

KAC has competent and professional staff dedicated to ensuring effectiveness and safety

RAFI President Roberto E. Aboitiz (second from right) led the groundbreaking of

the new Kool Adventure Campsite. With him are

(L-R) Cebu Provincial Board Member Alex

Binghay, Balamban Mayor Ace Binghay, and Ben

Azel Ponio, president of BSR & Company Inc., the

main contractor for the construction of the site.

of adventure trainings. As part of upscaling the program, Loh will take a big responsibility in leading the team.

“As the leader of the KAC team, I have the responsibility of setting the destination, the direction, and the pace. We have the hardware tools in terms of the new center, the facilities, and the training methodologies. Equally important is the software. As we build a bigger team of highly competent professional educators, we would be able to increase our outreach,” he said.

“We will develop new and greater range of programs for different participant groups so that they can come back for the next step in their learning development. As we expand our capacity and capability, we will achieve international recognition and become a model for others to follow. When the work is done, people will say: we did it ourselves,” he added.

KAC acquired the associate membership/Level 1 for Association for Challenge Course Technology (ACCT) in 2005. Association for Experiential Education (AEE) organization membership was also acquired in 2004.


The year 2011 marked the thorough validation and selection of the 5th RAFI Triennial Awards. After receiving 262 nominations and going through a series of screenings, the search committee has selected top five finalists per category (individual and institutional).

This run’s screening process included an experiential component, bringing the top 10 semi-finalists per category and the search committee together to create a venue for collaboration and to assist the search committee in further assessing the leadership and character of the semi-finalists.

The top five finalists for the Ramon Aboitiz Award for Exemplary Individual are Fr. Angelo Buenavides (General Santos), Dr. Estrella Cantallopez (Cotabato City), Apolinario Leyson Sr. (Cebu City), Fr. Dennis G. Tamayo (formerly based in Basilan), and Rene Vendiola (Dumaguete City). For the Eduardo Aboitiz Award for Outstanding Institution, the top five finalists are Agri-Aqua Development Coalition-Mindanao Inc. (Davao), Alternative Indigenous Development Foundation Inc. (Bacolod City), Negros Women for Tomorrow Foundation Inc. (Bacolod City), SOS Children’s Villages - Philippines (multiple locations in the Visayas and Mindanao), and The Great Physician Rehabilitation Foundation Inc. (Dumaguete City).

Searching for more grassroots heroes

DISCOVERING HEROES. RAFI staff conducts validation of Rene “Tatay Ete”

Vendiola (top photo) and the Negros Women for Tomorrow Foundation (photo above) for the 5th run of

the RAFI Triennial Awards.


RAFI provided a venue for the RAFI Triennial Awards laureates to share their inspiring stories and work through public fora, conferences, and learning visits. The learning activities were conducted in different parts of the Visayas and Mindanao and hosted by the RAFI Triennial awardees and finalists.

Constantly empowering grassroots heroes

CONTINUING INSPIRATION. The 3rd Leaders of Change Forum (top photo) was conducted at the Foundation University in

Dumaguete City, as well as the Xchange Series 8 (photo above).


Finding grassroots heroes

The paradise-like environment of Moalboal may have appeared to be a comfortable haven for twelve strangers, but it was more than that. It became a venue for the semi-finalists of the 5th RAFI Triennial Awards to prove one’s ability to effectively interact and react to unexpected situations.

A crucial stage in the painstaking recognition process is the screening and selection phase of the RAFI Triennial Awards wherein the interaction/teambuilding activity of the semi-finalists, with the Search Committee, takes place.

In the fifth run of the RAFI Triennial Awards, the physical skills, mental competence, emotional aptitude, and social fitness of the semi-finalists were put to the test.

From May 31 to June 1, the 20 semi-finalists—10 for the Ramon Aboitiz Award for Exemplary Individual category and 10 for the Eduardo Aboitiz Award for Outstanding Institution

category—showed their best in the two-day adventure synergy program without knowing that they are already coordinating with the people who would judge them.

“This was the first time that a teambuilding activity with the semi-finalists was done, and I must say it was a very good idea. Of course the semi-finalists had no idea who we (the Search Committee) were. They thought that we were also semi-finalists as we participated in all the exercises. The activity itself was very useful for the Search Committee as we were able to interact firsthand with all the semi-finalists and the process enabled us to know each of them better. We were also able to ‘put faces’ to the validation reports,” Margarita dela Cruz, chair of the Search Committee for the 5th RAFI Triennial Awards, said.

Piloted by the RAFI Kool Adventure Camp, the activity served as an experiential field validation for the Search Committee. It prompted each

Semi-finalists of the 5th RAFI Triennial

Awards went through an adventure synergy

program, together with the Search Committee,

as a way for the latter of getting to know better the candidates and recognize

deserving finalists.


individual to examine their leadership character, stewardship, visioning, and conflict management. It also brought out the team’s ability to communicate and collaborate while exuding the virtues of respect, integrity, and honesty.

The semi-finalists’ response and reactions to the different situations became very helpful for the Search Committee in evaluating and finding out what they really look for in an awardee.

“Did it affect our decisions? Yes, particularly for the Exemplary Individual category because the person is as important as his or her accomplishments,” said dela Cruz. For Search Committee member Valeriano “Bobbit” S. Avila, reading the bio-data of a semi-finalist does not give the big picture of the person.

“I have been a judge in previous events and it is the first time for me to have a real interaction with the person we are judging, and it truly helped me come up with a better decision about the semi-finalists. We have to weed out those who seek recognition for recognitions’ sake and recognize

only the truly deserving ones,” he said.

Ultimately, the teambuilding activity turned out to be perhaps the most important facet in choosing the final candidates for the RAFI Triennial Awards. It transparently revealed whether or not the candidates had servant leadership and problem-solving skills, humility, and teamwork, among others.

Launched in 1996, the RAFI Triennial Awards in the Visayas and Mindanao recognizes individuals and institutions committed to building more humane, equitable, and compassionate society.

It honors the men and women who, through their efforts, bring about change and improve the lives of the less-privileged, reflecting the philanthropic, humanitarian, and holistic ideals and values of Don Ramon Aboitiz and Don Eduardo Aboitiz.

The RAFI Triennial Awards is conferred every three years, and it is the processes, like the two-day adventure synergy program, that trim down the options to eventually come up with the cream of the crop.


in EDUCATION



A comprehensive education program

RAFI launched its comprehensive program for education during the RAFI Brand Launch for Education in May 3 and presented to the education partners and stakeholders the refreshed brand of RAFI and the Foundation’s new education direction. The launch featured the education initiatives of RAFI, including a new campaign for the rehabilitation of dilapidated public school buildings in Cebu.

DIRECTION FOR EDUCATION. RAFI Vice President Jon Ramon Aboitiz presented

RAFI’s plan for Education in the next five years during the RAFI Brand Launch for Education (top photo). In

the launch, RAFI, represented by President Roberto E. Aboitiz and Vice President Jon Ramon Aboitiz (above

photo, second and first from the right, respectively), signed a memorandum of agreement with the

Department of Education, represented by its Region 7 Director Recaredo Borgonia and its Undersecretary for

Finance and Administration Francisco Varela, for the School Rehabilitation Program campaign.

before

before


RAFI inked a memorandum of agreement with the Provincial Government of Cebu, Department of Education), and the League of Municipalities of the Philippines-Cebu Chapter for the repair and restoration of Gabaldon school buildings in Cebu for the Gabaldon Restoration Project in Dec. 21.

Supported by the Cebu Artists Inc. (CAI), University of San Carlos-Conservation and Heritage Research Institute and Workshop, and United Architects of the Philippines, the project aims to restore heritage school structures known as the Gabaldons, which are post-American war era school buildings, and to improve the learning environment of Cebuano schoolchildren.

To increase awareness and generate support from various stakeholders and the public, RAFI, with the support of CAI, mounted a two-week painting exhibit dubbed “Mugna-Lambigit” at SM City Cebu and raised more than Php 50,000, from paintings sold and cash donations.

Saving heritage school buildings

RESCUING GABALDONS. (Top photo) RAFI, represented by President Roberto E. Aboitiz (seated second from left) signs a memorandum

of agreement with the Province of Cebu, represented by Governor Gwedolyn Garcia (seated second from right)

and League of Municipalities of the Philippines Cebu Chapter President and Cordova, Cebu Mayor Adelino

Sitoy (seated first from left), and the Department of Education, represented by its Region 7 Director

Recaredo Borgonia (seated first from right), to save Gabaldon school building. (photo above) RAFI also raised funds for the Gabaldon Restoration Project

through the “Mugna-Lambigit” exhibit in SM City Cebu opened by (L-R) RAFI Executive Committee Chair Ma. Cristina Aboitiz, Cebu Provincial Governor Gwendolyn

Garcia, SM City Cebu Mall Manager Sherry Tuvilla, and Cebu Provincial Board Member Wilfredo Caminero.


RAFI signed a memorandum of agreement with public elementary schools and local government units of Cebu Province in Nov. 28, signaling the start of the third phase of the School Rehabilitation Program, a unique and effective framework of collaboration to rebuild old and dilapidated classrooms into “good-as-new” learning environment. The signing also formalized the partnership of RAFI with 12 schools from four municipalities—Asturias, Bantayan, Catmon, and Tuburan—of Cebu Province.

In collaboration with the GREENIN Philippines (Generation REdemption and Expansion of Natural resources INitiatives in the Philippines) Program of RAFI, the new phase will also incorporate the establishment of native tree nurseries in the recipient schools.

RAFI also signed a memorandum of agreement in July 1 with the Don Bosco

Consistently supporting programs to improve education

BACK TO LIFE. Rehabilitated and turned

over in 2011 was the Marcos-type school

building of the Cabalawan Elementary School.

ALL FOR EDUCATION. RAFI, represented by

Chief Operating Officer Dominica B. Chua and

Deputy Director for Operations Amaya Aboitiz

signed a memorandum of agreement with the

Don Bosco Training and Youth Center-Pasil

to give assistance to the latter’s vocational technical education,

while Education grantee, the University

of the Philippines Open University, had their training on blended

mentorship.

Training and Youth Center-Pasil for aPhp 1.4 million worth of educational assistance for the one-year training cost of 10 vocational technical students every year for five years and for the six-month training cost of 10 garment technology students every year for five years.

Twenty elementary school science teachers from Cebu Province participated in the 12-day face-to-face training on blended mentorship held in May 10-21. The Blended Mentorship for Science Teachers is a project of University of the Philippines Open University and RAFI in partnership with Department of Education. Its aims to improve science education in Grades 3 and 4 in selected public schools in Cebu by developing a research culture among the teachers through the use of face-to-face and distance education ICT-enabled learning.


The Gabaldon school building of the Sta. Lucia Elementary School in Asturias, Cebu, went through

the School Rehabilitation Program of RAFI.

Preserving the Gabaldon legacy

School administrators and teachers conduct

the inventory of delivered construction

materials as their counterpart for the

School Rehabilitation Program.

We, Filipinos, are all familiar with this building made of wood that has capiz windows, wide corridors, high ceilings, and is usually elevated from the ground—the Gabaldon.

Gabaldon schoolhouses are remnants of the country’s American colonial past. If massive Baroque churches were to the Spanish period, public schools were to the American era.

Gabaldon public schools were created through a legislative act, known as the Gabaldon Act, authored by Assemblyman Isauro Gabaldon of Nueva Ecija. The construction of Gabaldon school buildings has been prompted by the Americans’ desire to establish a public school system, and having a Filipino to put it forward showed the nation’s yearning for education and love of learning.

The building design of a Gabaldon school being patterned after the bahay kubo, which is attuned to the country’s tropical conditions, gives it a very Filipino quality.

Over the years these school buildings have witnessed generations of young Filipinos embrace knowledge and have been a home to memories of their childhood, to stories of labor and hope in their journey towards a good life.

Following the fate of almost every age-old structure, many of the country’s Gabaldons today are either crumbling and in the verge of rotting away or demolished and replaced with the ones of current architectural design standards.

“From capiz to jalousies, wood to concrete,” Ricky Morillo, Project Engineer of RAFI’s Education Development Unit, described the


changes done to Gabaldons.

In the province of Cebu alone, more than a hundred schools are of the Gabaldon type, of which many are in the state of dilapidation.

Morillo said that the side walls, flooring, and the windows are usually the most damaged parts of the Gabaldons that they have inspected.

“The side walls being constantly exposed to wind and rain rot as time passes. The construction of comfort rooms in the classrooms has damaged the flooring due to the seeping in of water,” he explained.

RAFI has partnered with the government, the private sector, and the schools with Gabaldon buildings in Cebu in championing the restoration of these structures through the Gabaldon Restoration Project (GRP) under the School Rehabilitation Program (SRP).

But the work ahead is not an easy one.

“We have done repairs in the past, but this is a different one. The goal is to restore, which means using the original construction methods and materials and retaining the original design as much as possible,” Morillo said.

Before kicking off the GRP, a conservation management plan must be created. With this, RAFI tapped the University of San Carlos College of Architecture and Fine Arts-Conservation and Heritage Research Institute (USC CAFA-CHERISH) to train architects in coming up with a conservation management plan of the Gabaldon school buildings in the municipalities of Liloan, Consolacion, and Argao.

From the recommendation of these architects, the project engineers carry on the restoration.

For Morillo, the GRP is challenging work given the many factors crucial to achieving the goal, such as the availability or supply and cost of materials, and the careful planning required to putting back the original Gabaldon design.

“Some of the materials used in the construction of Gabaldons are not available nor mass produced in the market anymore. So we have to have them specially fabricated and that would be quite expensive,” Morillo explained.

“Since we should restore, we also look for the closest material available. If there’s no capiz, we look for what’s closest to it, or what would be a good alternative to wood lattice,” he added.

Aside from construction standards, the process before a restoration project, which includes communicating with the local government units and the provincial government, commitment of

concerned parties to a budget counterparting, and evaluating the Gabaldon school buildings proved to be meticulous.

RAFI launched in 2004 the SRP through its Education Development Unit to address the problem of limited resources in public schools.

As of July 2012, the SRP has repaired 459 classrooms in 136 schools in 34 towns in the province of Cebu.

Teachers attribute positive changes in behavior and academic performance of the students to the rehabilitated classrooms.

“After the school renovation of the Gabaldon building, I felt happy because the school has become convenient for the school children, most especially for their learning,” Celso Cimagala, school head of Badian Community School, said.

He shared that in the last four years, their school’s National Achievement Test (NAT) performance has greatly improved. At present, they have an 85 percent passing rate in NAT 6.

The rehabilitation efforts certainly provided safer classrooms for the students and teachers.

“The students’ second home, the school, is now safer and more conducive to learning. They are proud to stay in the newly repaired classrooms,” Erlinda Gerodias, school head of Suba Elementary School in Samboan, said.

The impact of SRP also extends to the stakeholders and the communities involved.

“The community supported well in every school activity, such as keeping the school building clean and beautiful,” Gerodias said.

Cimagala added, “Teachers have become more eager to teach the pupils. The community was also happy of the changes brought by the support of RAFI and its partners.”

With the GRP on its way to being implemented, it promises much not only to providing quality classrooms the schoolchildren deserve but also to making communities aware, especially the students, of the value of the Gabaldons as heritage structures.

“With the restoration of the Gabaldons, we are hopeful that we can instill a sense of nationality and identity and an appreciation of the Filipino culture,” Tanya Flores, Senior Program Officer of RAFI Education Development unit, said.

As education is an intangible legacy Filipinos hold dear, it is only fitting to bring back the symbol of this legacy, its tangible counterpart—the once-imposing Gabaldons.


Tragedy to success story

Ranny Arbiol, receives his diploma on B.S.

Electronics and Communication

Engineering from the Cebu Institute of

Technology.

When a devastating tragedy struck, Ranny Arbiol neither whined nor give up; instead he stood up and persevered.

Arbiol is a simple farmer’s son living in a remote farming community, aspiring for nothing but to live simply, go to school and finish his studies to become a professional. He knew his dreams compose of one grand illusion because his family depended on their little farm to make ends meet. Still, he continued to hope for elementary and high school studies.

Then, one day, his aspirations were put on hold when, in Feb. 17, 2006, his village in Guinsaugon, Leyte was buried by a mudslide. Witnesses stated that the mountain nearby seemed to explode and mud and rocks came in a matter of seconds. Guinsaugon, Southern Leyte was covered by a mud of up to 10 meters thick at around 9 to 10 a.m.

Arbiol, only 21 then, survived but the catastrophe left him an orphan. He lost his parents and one of his siblings, his dreams, his home, and the family’s only source of livelihood. He was the youngest of eight siblings.

In the midst of grieving over their great loss, the survivors needed to pick themselves up with what was left of their lives and village. Arbiol was one of them. He found a way to transcend beyond the tragedy and hold on to his dreams despite the seemingly insurmountable odds.

“I miss my parents very much, even though they were strict with their rules. So for those who still have parents, please treasure them and do your best in your studies so that they will be proud and happy,” Arbiol said.

He became one of the scholars of the Leyte Educational Assistance Program (LEAP) of RAFI and other partners. It is a scholarship project for the children of the landslide victims in Ginsaugon, St. Bernard. This project was initiated and conceptualized by various institutions and individuals who wished to make a difference in the lives of the victims, especially children, whose future already seemed to be uncertain.

“Our municipality introduced me to RAFI. They prioritized those youth who belong to less fortunate

families, especially those who lost their parents like I did,” Arbiol said.

For Arbiol, the scholarship was an opportunity for him to jump-start his life after the landslide. He grabbed it and worked hard for it because he believed it will fulfill his dreams.

“I felt relieved and comforted. At first, I found the scholarship as a way of forgetting the tragedy. But as time went on, I felt that it was an opportunity for me to do what I want to do and inspire me to do my best,” he said.

He took up Bachelor of Science in Electronics and Communication Engineering. As a scholar, he worked diligently. The fruit of his hard labor was evident in his consistent above-average grades.

“In my studies, I met a lot of obstacles. My situation almost had me giving up, but I kept myself determined and positive. I always think of my family, my parents, and my dreams,” Arbiol said.

He showed resourcefulness with his projects during times when he was short on funds. There was even a time, because he could not afford the materials for a project, he had to recycle materials from his classmates’ project, and reassemble it.

Arbiol’s perseverance and resourcefulness paved the way for him to achieve his dreams as he was able to graduate from the five-year course on time with the help of RAFI, which provided him his stipend and meal, and Buddhist Compassion Relief Tzuchi Foundation that paid for his tuition and books. He was granted an extension of his allowance as he pursued his licensure review.

Arbiol finally fulfilled his dream now that he is a licensed engineer. According to him, his success is because of the trust and support of RAFI, who served as his “parents” and a “bridge” to make his dreams a reality.

“I am so thankful to God for the many groups that helped me become a better person. All of us have tragedies in our lives. The point is we should remain standing strong and believe that there are reasons why they happened. God’s plans are always better than ours,” Arbiol said.


A holistic approach for disadvantaged children

The Dolores Aboitiz Children’s Fund provided support to The Lord Who Cares Foundation Inc’s. Holistic Life Preparedness Program for disadvantaged children in vulnerable public schools in Mandaue City. The program, which was carried out in partnership with the Department of Education Mandaue, assisted 87 children who are over-aged for their grade level in the public elementary schools in Canduman, Guizo, Labogon, Opao, and Jagubiao, all in Mandaue City.

The Holistic Life Preparedness Program provides students a quality alternative education, livelihood preparedness and skills for out-of-school youth and adult learners, as well as values education to develop students’ characters.

READY FOR LIFE. Disadvantaged students learn housekeeping skills, such as setting the table and making the bed, in the Holistic Life

Preparedness Program of The Lord Who Cares Foundation Inc., supported by RAFI.


Children from Ermita perform during the

Sistemang Pilipino Benefit Concert held at the Cebu

Metropolitan Cathedral on Jan. 26, 2012.

Harnessing children’s talents

Children from depressed communities like Barangay Ermita in Cebu City, where almost 90 percent of the children are out of school, were given opportunities to develop their artistic and expressive skills as well as their self-confidence through the Children’s Art Project.

The project is part of the therapeutic program for children, particularly those who are victims of domestic violence and were in conflict with the law, in order for them to learn the value of cooperation, commitment, and persistence, and grow to become better individuals.

The project features visual arts, choir and orchestra lessons, and performing arts.


Standardizing day care centers

Bulacao Day Care Center, donated by RAFI Dolores Aboitiz Children’s Fund

Recognizing the long-term effect that early childhood care and education can have on both the individual and society as a whole, the RAFI through the Dolores Aboitiz Children’s Fund (DACF) is committed to supporting communities as they prepare young children to become successful students and responsible citizens of the Philippines.

Through the infrastructure component of its program, DACF partners with local governments to provide materials for the construction of a safe and conducive learning environment for young children. DACF has come up with a standard design that meets DSWD accreditation standards for day care centers and has the following child-friendly features:

√ The center is built on 150 square meters. The size of the day care center classroom is

54 square meters. √ The building is constructed using high-quality,

sturdy materials.√ Doorknobs and lights are placed within

children’s reach to encourage independent access of the facilities in the room.

√ Bathrooms are equipped with two child-sized sinks to encourage hand washing.

√ Windows are low enough so that children can see outside and have a sense of what is going on around them.

√ Each child gets a cubby to store his/her things and is responsible for his/her belongings.

√ The classroom furniture and layout are flexible to allow the teacher to make changes depending on what activities she has planned for the day. There is also enough empty space on the walls of the classroom so that teachers can display children’s work for everyone to see.

The standard day care center also features a play area, where children can further develop their physical and social skills. Having a space to play fosters children’s optimal growth through opportunities for exploration and learning.

“DACF believes that working with communities and local governments to provide a safe, child-friendly day care facility is an essential step towards helping communities prepare their children for a better future,” Amaya Aboitiz, DACF Executive Director, said.

As an example, in Barangay Bulacao in Talisay City, officials collaborated with DACF in building the first standard day care center in Cebu Province, based on the Early Childhood Care and Development program in the Philippines. The barangay’s day care center serves the barangay’s poorest children and their families.

Even after the DACF day care center was completed, more groups collaborated to ensure the sustainability of the infrastructure. The barangay youth leaders used their resources to support the enrolled children by giving them school supplies. Fifty percent of the children’s uniform is shouldered by the barangay, while the other fifty is the parent’s counterpart. The City Social Welfare Office conducts feeding program for the children in the day care center.

This project materialized through Bulacao’s functional Barangay Council for the Protection of Children (BCPC) that is influential in ensuring that a barangay is child-friendly.

“We now have a standard day care center that has a spacious room and is safe for the children. The children are enthusiastic to go to school everyday,” Enriquita Monteroyo, day care teacher of Bulacao Day Care Center, said in Cebuano.

For its collaborative efforts with different stakeholders and leaders in the barangay, Barangay Bulacao was awarded the most child-friendly barangay in Talisay City in 2011.


within RAFI



Taking care of its employees

To heal the “woundedness” of the past towards fullness and wholeness, RAFI and RAFI Micro-finance team leaders and members gathered together to attend the Reparenting the Child Within (RCW) Careshop at the Don Bosco Center of Spirituality Retreat House. RAFI team leaders also underwent a teambuilding program to identify and address the “Five Dysfunctions of a Team”.

EMPOWERING RAFINIANS. RAFI also looks into the well-being of its employees

by providing them workshops for the team and for the self.


Celebrating 45 years of community development work

RAFI employees gathered together in Nov. 16 to celebrate the RAFI Founders’ Day, which kicked off the year-long celebration of RAFI’s 45th anniversary.

The event started with a mass in the morning celebrated by University of San Carlos President Fr. Dionisio Miranda and Cathedral Museum of Cebu Curator Fr. Brian Brigoli, followed by the ribbon cutting of the “RAFI at 45 years” exhibit at the Casa Gorordo Museum gallery, where the RAFInians revisited the important milestones in the history of RAFI and its founders, Ramon Aboitiz and Eduardo Aboitiz. The exhibit also shows RAFI’s emergence and evolution as an institution.

During the Employee Recognition Program at Casino Español de Cebu in the afternoon, RAFI Executive Committee Chair Ma. Cristina Aboitiz shared her RAFI experiences in the past decades.

Service awardees recognized were Regina Andoy (25 years); Constantine Samson, Roseller Caumeran, and Donald Alfoja (15 years); and Edwin Marfil (10 years). The RAFI Communications Team also handed out the RAFI Correspondents Awards to individuals and teams who have gone the extra mile to bring their programs and initiatives closer to the community through various means of communication.

CELEBRATION. RAFI commemorated its 45th anniversary with an exhibit (bottom left photo), a sharing of RAFI past experiences by RAFI Executive Committee Chair Ma. Cristina Aboitiz (top photo), and recognition

of service awardees (bottom center and right photos).


When I joined RAFI in May 2010, I only had a

vague notion of what my job would be. Sure, I

went over my job description like every new hire,

but going over the list is different from “living up”

to the responsibilities and tasks that are assigned

to you.

My first few months in RAFI were especially

difficult because there were many things that I

had to adjust to—the new working environment

(different from my previous, less “formal”

former workplace), teammate (someone I knew

Best collaboration storyby Golda Epondulan

beforehand but never was really friends with),

and the workload (quite a challenge considering

we were only three in the team, including our

team leader). I must have come across as a loner

for I was always huddled in my desk, facing my

computer, even eating lunch in my desk, and

rarely talking to other RAFInians.

Despite this, I managed to “survive” those

grueling months largely due to the fact that there

was a strong support from my team. I could

still remember my team leader telling me during

RAFI Communications Team: (standing, L-R)

Graphic Artist John Michael Cañeda,

Communications Assistant for Production Fatrick

Tabada, Communications Specialist for Media and Public Relations Nancy

Cudis, Communications Officer Haidee Emmie

Palapar, Communications Assistant for Tri-Media

Hannah Marie Aranas, and (seated) Communications Assistant for Publications

Golda Epondulan


my interview that she welcomed questions

and clarifications. And so I did exactly that—

every time I was unsure if I were doing the right

thing, I came knocking at her office to ask for

suggestions and answers. My co-team member,

on the other hand, was the same. Though we

were barely on speaking terms at that time,

she would politely answered my questions and

helped out whichever way she can. She even

went as far as extending the deadlines of some

of my deliverables, seeing that I was already too

burdened with a lot of workload.

I saw that there was teamwork. There was

always collaboration going on, which I think was

important because we were only three then.

Without this, I don’t know how we could have

accomplished the tasks that were assigned to

us. For example, there were some Saturdays

that I was not available for the “Pagtuki” radio

show because I was assisting in the branding

photoshoots. It was then that my teammate

stepped up and took over the management of the

show even if it meant that she would have to give

up her Saturdays, so to speak.

A year and seven months later, I am appreciative

of the working relationship I have with my

teammates. The support that they’ve showed

me during my first months on the job remained

constant. I have also managed to build a good

working relationship with my other co-team

members—including the new hires and the ones

who are no longer working for the company.

We are teammates, in every sense of the word.

We look out after each other’s back and give

assistance when it is needed.

Perhaps this is why I am hard pressed to name

a specific instance where the brand attribute

collaboration was manifested by the team. We

have time and again showed that we are a

group that works as a cohesive unit in order to

accomplish tasks.

From completing all the collaterals of the Gabii

sa Kabilin 2011 and facilitating the media during

that night, to finishing the expanded Green and

Wholesome Environment that Nurtures Our Cebu

Program Partners’ Conference and Run 2 Plant

4 GREENIN Philippines requirements, to building

the branding library of photos, the team has

always showed its willingness to go beyond what

is required in order to help accomplish the task at

hand.

Even if we are not a program team and our output

does not directly translate to improvement in the

lives of the people we are serving, we recognize

that our role is important in the overall direction

of the Foundation. I think this is why we find it

hard to turn down “last-minute” requests even if it

means that we would have to keep up in order to

deliver the service that we promised.

There will be more challenges ahead but because

I am part of this team, I am sure we will be

able to accomplish what is required of us. As

the program teams continue to upscale their

initiatives next year and in the years to come,

we will be playing an even more important role

in making the public aware and understand

their programs and projects. I know that our

performance will have an impact on the positive

change that the Foundation wants to create in

the communities it is serving. I know that we

at the team will continue to work hard because

we welcome challenges, and we see them as

opportunities for growth. More than that, we see

ourselves as a piece of the RAFI puzzle—we may

be small but we are equally as important as the

other teams who may make up the bigger piece

of the puzzle.


Ramon Aboitiz Foundation Inc.Board of Trustees

Roberto E. AboitizPresident

Jon Ramon Aboitiz Vice President

Manuel S. GoSecretary

Mikel A. AboitizTreasurer

Roberto D. GothongMember

Fr. Ernesto O. Javier, S.J.Member

Agnes A. LacsonMember


Dominica B. ChuaMember

Ramon Aboitiz Foundation Inc.Executive Committee

Ma. Cristina C. AboitizChair

Mikel A. AboitizMember

Dolores Aboitiz Children’s Fund Executive Committee

Ma. Cristina A. AboitizChair

Ma. Rosario V. AboitizMember

Robin Elizabeth T. AboitizMember

Dominica B. ChuaMember


Ramon Aboitiz Foundation Inc.Management Committee

Dominica B. ChuaChief Operating Officer

Amaya C. AboitizDeputy Director for Operations/Executive Director, Dolores Aboitiz Children’s Fund

Rowena Bandola-AlensonorinExecutive Director, Integrated Development

Ronald M. delos ReyesProgram Coordinator, Eduardo J. Aboitiz Cancer Center

Ma. Theresa G. CatipayExecutive Director, RAFIMicro-finance

Jocelyn B. GerraExecutive Director, Culture & Heritage

Evelyn Nacario-CastroExecutive Director, Eduardo Aboitiz Development StudiesCenter

Edvan K. LohDirector, Kool Adventure Camp

Anthony C. DignadiceExecutive Director, Education Development Unit

Ermme A. VeltranFinance and Administration Manager

Jeanette S. ZuluetaHuman Resources Officer

Haidee Emmie K. PalaparCommunications Officer

Edwin T. MarfilInformation Technology Manager

Iris Mae G. EchavezAudit Head

Independent Auditors’ Report Independent Auditors’ Report

PB 63RAMON ABOITIZ FOUNDATION INC. 2011 ANNUAL REPORT

INDEPENDENT AUDITOR’S REPORT

The Members and the Board of TrusteesRAMON ABOITIZ FOUNDATION, INC.(A Non–Stock, Non–Profit Organization)35 Lopez Jaena StreetCebu City

Report on the Financial Statements

We have audited the accompanying financial statements of RAMON ABOITIZ FOUNDATION, INC., which comprise the statements of financial position as at December 31, 2011 and 2010, and the statements of operations, statements of comprehensive income, statements of changes in fund balance and statements of cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

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 and for such other internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s 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 about 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.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of RAMON ABOITIZ FOUNDATION, INC. as at December 31, 2011 and 2010, and its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards.

Report on the Supplementary Information Required Under Revenue Regulation 15-2010 and Revenue Regulation 19-2011

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information in Note 25 to the financial statements is presented for purposes of filing with the Bureau of Internal Revenue and is not a required part of the basic financial statements. Such information is the responsibility of management. The information has been subjected to the auditing procedures applied in our audits of the basic financial statements. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

LUIS CAÑETE & COMPANY

LUIS A. CAÑETEPartnerCPA Certificate No. 6507BOA/PRC Reg. No. 0127 (Until December 31, 2013)SEC Accreditation No. 1078-A (Until January 19, 2014)BIR AN 13-004894-1-2009 (Until October 22, 2012)TIN 114-622-040, PTR No. 2155859 – January 02, 2012, Cebu City

March 26, 2012Cebu City


64 65RAMON ABOITIZ FOUNDATION INC. 2011 ANNUAL REPORT

EXHIBIT “A”RAMON ABOITIZ FOUNDATION, INC.(A Non-Stock, Non-Profit Organization)STATEMENTS OF FINANCIAL POSITIONDecember 31, 2011 and 2010(Amounts Expressed in Whole Philippine Pesos)

Note 2011 2010

ASSETS

CURRENT ASSETSCash and cash equivalentsAccounts receivablePrepaid expenses

34

π923,563,686 63,655,846

158,671

π389,374,573 53,460,753

108,743

Total Current Assets 987,378,203 442,994,069

NON-CURRENT ASSETSAvailable for sale investmentsProperty and equipmentTrust fundsOther assets

56

7 &108

17,357,950,398 200,519,116 140,281,080

2,578,724

16,047,206,675 95,425,950

102,875,082 2,357,951

Total Non-Current Assets 17,701,329,318 16,247,865,658

TOTAL ASSETS π18,688,707,521 π16,690,809,727

LIABILITIES AND FUND BALANCE

CURRENT LIABILITIESAccounts payableDeferred credits

910

432,771,267151,866,784

439,071,747115,897,708

Total Current Liabilities

NON-CURRENT LIABILITIESAccrued retirement obligation 19

584,638,051

3,658,079

554,969,455

626,056

TOTAL LIABILITIES 588,296,130 555,595,511

FUND BALANCE (Exhibit "C") 18,100,411,391 16,135,214,216

TOTAL LIABILITIES AND FUND BALANCE π18,688,707,521 π16,690,809,727

(See accompanying notes to financial statements)

EXHIBIT “B”RAMON ABOITIZ FOUNDATION, INC.(A Non-Stock, Non-Profit Organization)STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2011 and 2010(Amounts Expressed in Whole Philippine Pesos)

Note 2011 2010

SUPPORTS AND OTHER GAINS Dividend incomeCounterparty contributionInterest incomeDonation and contributionOther incomeGrants and sub-grants

5133

111412

π681,068,899130,839,473 29,149,43013,357,536 3,432,298 2,246,326

π224,568,085 49,566,114 10,625,993 20,015,545 6,813,2027,545,418

860,093,962 319,134,357

EXPENSESProject utilizationGeneral and administrativeGrant and sub-grants expendituresHerside expenses

151612

188,872,234 14,516,033 2,246,326

68,363

107,843,169 12,527,417

7,545,418 1,109,868

205,702,956 129,025,872

EXCESS OF SUPPORTS AND OTHER GAINS OVER EXPENSES π654,391,006 π190,108,485


EXHIBIT “C”RAMON ABOITIZ FOUNDATION, INC.(A Non-Stock, Non-Profit Organization)STATEMENTS OF COMPREHENSIVE INCOMEFor the Years Ended December 31, 2011 and 2010(Amounts Expressed in Whole Philippine Pesos)

Note 2011 2010

EXCESS OF SUPPORTS AND OTHER GAINS OVER EXPENSES

OTHER COMPREHENSIVE INCOMEUnrealized gain on fair value change of AFS investments during the year 5

π654,391,006

1,310,806,169

π190,108,485

12,055,083,129

TOTAL COMPREHENSIVE INCOME FOR THE YEAR π1,965,197,175 π12,245,191,614


EXHIBIT “D”RAMON ABOITIZ FOUNDATION, INC.(A Non-Stock, Non-Profit Organization)STATEMENTS OF CHANGES IN FUND BALANCEFor the Years Ended December 31, 2011 and 2010(Amounts Expressed in Whole Philippine Pesos)

Revaluation Reserve on Fair

Value Changes of AFS Investments

(Note 5)

Cumulative Excess of

Supports and Other Gains

over Expenses Total Fund

Balance

Balance, January 1, 2010 π3,341,998,034 π548,024,568 π3,890,022,602

Excess of supports and other gains over expensesOther comprehensive income

-

12,055,083,129

190,108,485

-

190,108,485

12,055,083,129

Total comprehensive income for the year 12,055,083,129 190,108,485 12,245,191,614

Balance, December 31, 2010 π15,397,081,163 π738,133,053 π16,135, 214,216

Balance, January 1, 2011 π15,397,081,163 π738,133,053 π16,135,214,216

Excess of supports and other gains over expensesOther comprehensive income

-

1,310,806,169

654,391,006

-

654,391,006

1,310, 806,169

Total comprehensive income for the year 1,310,806,169 654,391,006 1,965,197,175

Balance, December 31, 2011 π16,707,887, 332 π1,392,524,059 π18,100,411 ,391




RAMON ABOITIZ FOUNDATION, INC.(A Non – Stock, Non – Profit Organization)NOTES TO FINANCIAL STATEMENTSDecember 31, 2011(Amounts Expressed in Whole Philippine Pesos)

1. BACKGROUND

The Ramon Aboitiz Foundation, Inc., the “Foundation” is a non-stock, non-profit foundation registered with the Securities and Exchange Commission under Philippine laws on November 16, 1966. Its principal office is located at 35 Lopez Jaena Street, Parian, Cebu City. The Foundation is primarily a socio-economic assistance body; as such it operates by extending financial aid, technical aid, or both to pre-qualified deserving service agencies or communities. It is a donee institution in accordance with revenue laws, rules and regulations. On December 4, 2010, the Articles of Incorporation of the Foundation was amended to include in the purpose for which the Foundation was formed the following:

• To equip government, non-government organizations, community groups, and other institutions with strong developmental initiatives through training and dialogue, policy studies and development, knowledge management, research and other related services;

• To elevate the lives of individuals and communities through holistic approach that champions best practices in community development;

• To educate, develop and empower the youth to make them responsible and proactive citizens and accountable leaders;

• To conduct, implement and advocate programs and policies that will promote and improve access to education and enhance the quality of education in the country;

• To support, conduct and implement initiatives that support the survival, total development and welfare of the children in the country.

• To establish, strengthen, empower and transform individuals to make them participants in the development of their communities;

• To develop women entrepreneurs through the provision of access to micro credit, technical and business development services.

• To advocate and conduct programs and projects that strengthens public awareness and accountability towards restoring and maintaining ecological balance.

EXHIBIT “E”RAMON ABOITIZ FOUNDATION, INC.(A Non-Stock, Non-Profit Organization)STATEMENTS OF CASH FLOWSFor the Years Ended December 31, 2011 and 2010(Amounts Expressed in Whole Philippine Pesos)

2011 2010

CASH FLOWS FROM OPERATING ACTIVITIES

Excess of supports and other gains over

expenses

Adjustments for

Dividend income

Interest income

Depreciation and amortization

Retirement benefit expense

Grants and sub-grants

Provision for doubtful accounts

Loss on impairment

Unrealized foreign exchange loss (gain)

Gain on sale of equipments

π654,391,006

(681,068,899)

(29,149,430)

6,007,665

4,943,459

(2,982,126)

543,872

62,446

(21,920)

(14,999)

π190,108,485

(224,568,085)

(10,625,993)

5,091,488

3,355,931

(7,545,418)

-

-

62,988

-

Operating cash flow before working fund

changes

Decrease (increase) in:

Accounts receivable

Prepaid expenses

Other assets

Decrease in accounts payable

(47,288,926)

(10,938,363)

(49,927)

(283,651)

(6,300,479)

(44,120,604)

(45,217,511)

155,134

210,020

(10,462,468)

Cash used for operations

Contribution to retirement fund

Grants and sub-grants received

(64,861,364)

(1,911,437)

1,545,204

(99,435,429)

(1,546,510)

8,463,592

Net cash used in operating activities (65,227579) (92,518,347)

CASH FLOWS FROM INVESTING ACTIVITIES

Cash dividends received

Acquisition of property and equipment

Interest received

Proceeds from sale of equipment

Additions to AFS investments

681,068,899

(111,037,954)

29,348,827

15,000

-

224,568,085

(54,852,054)

24,426,525

-

(90,382,602)

Net cash provided by investing activities 599,394,772 103,759,954

CASH FLOWS FROM FINANCING ACTIVITIES - -

NET INCREASE IN CASH

EFFECT OF EXCHANGE RATE CHANGES ON

CASH

CASH BALANCE AT BEGINNING OF YEAR

534,167,193

21,920

389,374, 573

11,241,607

(62,988)

378,195,954

CASH BALANCE AT END OF YEAR π923,563,686 π389,374,573




2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

Basis of Preparation. The financial statements of the Foundation have been prepared under historical cost basis except for available for sale investments which are measured at fair value. The financial statements are presented in whole Philippine pesos. Statement of Compliance. The financial statements have been prepared in accordance with the Philippine Financial Reporting Standards (PFRS). Changes in Accounting Policies and Disclosures. The Foundation adopted the following new amendments and improvement to PFRS effective as of January 1, 2011. The application did not have any material impact on the financial statements.

• PAS 24, Related Party Disclosures (as revised in 2009). PAS

24 has been revised in 2009 on the following aspects: a) Change in the definition of a related party which new definitions emphasize a symmetrical view on related party relationships as well as clarifying in which circumstances persons and key management personnel affect related party relationships of an entity and b) Introduction of an exemption from the general related party disclosures, for transactions with a government and entities that are controlled, jointly controlled or significantly influenced by the same government as the reporting entity.

• Amendment to PAS 32, Financial Instruments: Presentation - Classification of Rights Issues. The definition of a financial liability in the standard has been amended to classify right issues (and certain options or warrants) as equity instruments if: (a) the rights are given pro rata to all of the existing owners of the same class of an entity’s non-derivative equity instruments, and (b) the instruments are used to acquire fixed number of the entity’s own equity instruments for a fixed amount in any currency.

• Amendment to IFRIC 14, Prepayments of a Minimum Funding Requirement. The interpretation has been amended to permit an entity to treat the prepayment of a minimum funding requirement as an asset. The amendment should be applied to the beginning of the earliest period presented in the first financial statements in which the entity applied the original interpretation.

• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instrument. The interpretation clarifies that equity instruments issued to a creditor to extinguish a financial liability are consideration paid. As a result, the financial liability is derecognized and the equity instruments issued are treated as consideration paid to extinguish that financial liability. The interpretation states that equity instruments issued in a debt for equity swap should be measured at the fair value of the equity instruments issued, if this can be determined reliably. If the fair value of the equity instruments issued is not reliably determinable, the equity instruments should be measured by reference to the fair value of the financial liability extinguished as of the date of extinguishment. Any difference between the carrying amount of the financial liability that is extinguished and the fair value of the equity instruments issued is recognized immediately in profit or loss.

Improvements to PFRS

• PFRS 7, Financial Instruments – Disclosures - The amendment was intended to simplify the disclosures provided by reducing the volume of disclosures around collateral held and improving disclosures by requiring qualitative information to put the quantitative information in context.

• PAS 1, Presentation of Financial Statements - The amendment clarifies that an analysis of each component of other comprehensive income maybe presented either in the statement of changes in equity or in the notes to the financial statements.

Summary of Significant Accounting Policies.

a. Financial assets and financial liabilities. The Foundation recognizes a financial asset or a financial liability in the statement of financial position when the Foundation becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are recognized initially at cost which is the fair value at inception. Transaction costs, if any, are included in the initial measurement of all financial assets and liabilities, except for financial instruments measured at fair value through profit or loss (FVPL).

Financial instruments are classified as liabilities or capital funds in accordance with the substance of the contractual arrangement. Interest, dividends, gains and losses relating to a financial instrument or a component that is a financial liability, are reported as expense or income. Distributions to holders of financial instruments classified as capital funds are charged directly to capital funds net of any related income tax effects. Financial instruments are offset when there is a legally enforceable right to offset and intention to settle either on a net basis or to realize the asset and settle the liability simultaneously.

Financial assets and financial liabilities are further classified into the following categories: Financial asset or financial liability at fair value through profit or loss (FVPL), loans and receivables, held-to-maturity (HTM), available for sale (AFS) financial assets and other financial liabilities. The Foundation determines the classification at initial recognition and re-evaluates this designation at every reporting date, where appropriate.

All regular way purchases and sales of financial assets are recognized on the trade date, which is the date that the Foundation commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace.

Categories of Financial Assets and Financial Liabilities.

Financial asset or financial liability at FVPL.

Financial assets at FVPL include financial assets classified as held for trading and financial assets designated upon initial recognition as FVPL. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term or upon initial recognition if it is designated by management as FVPL. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated and considered as effective hedging instruments. Gains or losses on financial assets held for trading are recognized in profit or loss.



dispose such assets within twelve months from the reporting date.

Included in this category is the Foundation’s investment in equity securities.

Other financial liabilities.

These are the financial liabilities which are not designated at FVPL.

Financial liabilities not designated as FVPL are measured at cost or 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. The amortization is included in interest expense in the statements of operations.

Included in this category are the Foundation’s accounts payable.

Derecognition of Financial Assets and Liabilities.

Financial assets.

A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognized where:

• 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 (a) has transferred substantially all the risks and rewards of the asset, or (b) 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 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.

Financial liabilities.

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

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 profit or loss.

Impairment of Financial Assets.

The Foundation assesses at each reporting date whether there is objective evidence that a financial asset maybe impaired. A financial asset is deemed to be impaired 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 and that loss event has an impact on the estimated

Where a contract contains one or more embedded derivatives, the entire hybrid contract may be designated as financial asset at FVPL, except where the embedded derivative does not significantly modify the cash flows or it is clear that separation of the embedded derivative is prohibited

Financial assets may be designated at initial recognition as FVPL if the following criteria are met:

• The designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or recognizing gains or losses on them on a different basis.

• The assets are part of a group of financial assets which are managed and their performance evaluated on a fair value basis, in accordance with a documented risk management strategy.

• The financial asset contains an embedded derivative that would need to be separately recorded.

The Foundation has no financial assets and financial liabilities at FVPL as of reporting date.

Loans and receivables.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are not entered into with the intention to sell immediately or in the near term and are not classified as held for trading, designated as AFS investments or financial assets at FVPL.

Amortization is determined using the effective interest rate method.

Included in this category are the Foundation’s cash and cash equivalents, accounts receivable and trust funds.

Cash and cash equivalents include cash on hand, cash in banks and short-term highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less and that are subject to insignificant risk and changes in value.

Held to maturity (HTM) investments.

HTM investments are quoted non-derivative financial assets with fixed or determinable payments and fixed maturities wherein the Foundation has the positive intention and ability to hold to maturity. HTM assets are carried at cost or amortized cost in the statements of financial position. Amortization is determined by using the effective interest rate method. Assets under this category are classified as current assets if maturity is within twelve months of the reporting date and non-current assets if maturity is more than a year.

The Foundation has no held to maturity investments as of reporting date.

Available for sale (AFS) financial assets.

AFS investments are non-derivative financial assets that are either designated as AFS or not classified in any of the categories. AFS investments are measured at fair value with gains or losses being recognized as a separate component of equity, until the investments are derecognized or until the investments are determined to be impaired at which time, the accumulated gain or loss previously reported in equity is included in the statement of comprehensive income. AFS are classified as non-current assets unless there is an intention to



future cash flows of the financial asset that can be reliably estimated.

Financial assets at amortized cost.

If there is objective evidence that an impairment loss on loans and receivables carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset shall be reduced either directly or through use of an allowance account. The amount of the loss shall be recognized in profit or loss.

The Foundation first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If it is determined that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessed for impairment. 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 of impairment.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to 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 profit or loss, to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date.

Financial assets carried at cost.

If there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset.

AFS financial assets.

If there is objective evidence that an AFS financial asset is impaired, the Foundation removes the net unrealized loss on AFS financial assets from revaluation reserves and transfers to profit or loss, the difference between the acquisition cost (net of any principal repayment and amortization) and current fair value, less any impairment loss on that financial asset previously recognized in profit or loss.

In the case of equity investments classified as AFS, impairment losses are not reversed through profit or loss. Increases in fair value are recognized directly in profit or loss.

In the case of debt instruments, if subsequently the fair value increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss is reversed through profit or loss.

b. Prepaid expenses. Prepaid expenses are carried at the amounts paid and are amortized as they are used in operations or as they expire with the passage of time.

c. Property and equipment.

Property and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses.

Cost of property and equipment comprises its net purchase price and directly attributable costs of bringing the asset to working condition for its intended use.

Subsequent expenditures related to property and equipment for maintenance or repairs are expensed. Improvements are capitalized and depreciated over expected useful life.

Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Annual depreciation rates are as follows:

Annual Rates(%)

Building and accessoriesLeasehold improvementsTransportation equipmentOffice equipment, furniture and fixturesMuseum equipment and fixturesTools and equipmentLibrary reference books and equipment

5%5%

20%20%20%20%20%

The useful lives of the assets and depreciation method used are reviewed periodically for any significant change in utility of the assets and in the expected pattern of economic benefits to ensure that current and future depreciation charges are adjusted accordingly.

Gain or loss on disposal or retirement of property and equipment are generally reflected in profit or loss.

At each reporting date, property and equipment are assessed for any indication of impairment in value based on internal and external sources. If any indication exists, recoverable amount of the asset is estimated and an impairment loss is recognized in profit and loss.

d. Deferred credits.

Funds received that are restricted by the donors for specific purposes are recognized as deferred credits upon receipt. These are deemed donated and reported as revenue only upon the occurrence of the events specified by donors.

e. Fund balance.

Revaluation reserve includes the current and prior period unrealized gains and losses due to revaluation of AFS financial assets reported in the statement of other comprehensive income.

Cumulative excess of supports and other gains over expenses includes the current and prior period results reported in the statements of operations.

f. Revenue and expense recognition.

Donations are recognized as revenue when no significant uncertainly to its collection exists.



Grants and sub-grants are recognized as revenue over periods to match them with the related costs which they are intended to compensate. Grants related to depreciable assets are recognized as revenue over the periods and in proportion in which depreciation on those assets is charged.

Interest is recognized as income using the effective interest method.

Dividends are recognized as income when the right to receive payment is established.

Other revenues are recognized when earned.

Expenses are recognized when incurred.

g. Foreign currency transactions.

Foreign currency transactions are recorded in Philippine peso at exchange rate on transaction date. Foreign currency assets and liabilities are restated to Philippine pesos at closing rates. Foreign exchange differentials are generally reflected in profit or loss.

h. Retirement benefits. Retirement benefits are actuarially determined using the projected unit credit cost method which reflects the services rendered by employees up to valuation date and incorporates assumptions concerning employees' projected salaries. Retirement costs include current service cost plus amortization of past service cost, experience adjustments and changes in actuarial assumptions. Actuarial gains or losses are recognized in profit or loss if the cumulative actuarial gains and losses exceeded the higher of 10% of the defined benefit obligation or 10% of the fair value of the plan assets at the end of the previous reporting period, over the future average working lives of the employees.

i. Provisions. Provisions are recognized when the Foundation has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is presented in the statements of operations.

j. 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.

k. Events after reporting date. Post year end events that provided additional information about the Foundation’s position at reporting date (adjusting events) are reflected in the financial statements. Post year end events that are not adjusting events are disclosed when material.

Judgments and Accounting Estimates.

In the process of applying the accounting policies of the Foundation, management has made following judgments and estimates which have the most significant effect on the amounts recognized in the financial statements:

Judgments.

Provisions and contingencies.

The Foundation applies judgment on when to recognize provisions or contingent liabilities. Provisions are recognized when the Foundation has a present obligation (legal or constructive) as a result of a past event, it is possible 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.

Estimates and Assumptions.

Allowance for doubtful accounts.

The Foundation maintains an allowance for doubtful accounts on receivables at a level adequate to provide for potential uncollectible accounts. Management determines the level of this allowance through identification of specific accounts that are to be provided with an allowance based on an evaluation of collection and credit experience, prevailing and anticipated economic condition, and present value of future cash collections.

As of December 31, 2011 and 2010, allowance for doubtful accounts on receivables amounted to π1,908,491 and π4,784,254 and receivables – net of allowance amounted to π63,655,846 and π53,460,753, respectively.

Useful lives of property and equipment. The Foundation estimates the useful lives of depreciable assets based on the period over which the assets are expected to be available for use. The estimated useful lives of these assets are reviewed annually and are updated if expectations differ from previous estimates due to physical wear and tear and technical or commercial obsolescence. It is probable that the results of future operations could be materially affected by changes in the estimates due to changes in aforementioned factors. Reduction in estimated useful lives of depreciable assets would increase depreciation expense and decrease non current assets.

Carrying value of depreciable assets amounted to π30,790,091 and π28,765,452 as of December 31, 2011 and 2010, respectively.

Impairment of non-financial assets.

The Foundation assesses the impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The impairment review requires an estimation of the present value of the expected future cash flows from continued use of the assets and selection of an appropriate discount rate that can materially affect the financial statements.

Carrying value of non-financial assets as of December 31, 2011 and 2010 were as follows:

December 312011

December 312010

Prepaid expensesProperty and equipment – netOther assets

π158,671200,519,116

2,578,724

π108,74395,425,9502,357,951

Retirement benefits.

The determination of the obligation and cost of retirement benefits is dependent on the selection of certain assumptions used by actuaries in calculating such amounts. Those assumptions include, among others, discount rates, expected return on plan assets and salary increase rates. (see Note 19) Actual results



that differ from the 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 changes between actual experiences and assumptions may materially affect the cost of retirement benefits and related obligation. Retirement benefit expense amounted to π4,943,459 and π3,355,931 in 2011 and 2010, respectively. Accrued retirement payable included in accounts payable amounted to π3,658,079 and π626,057 as of December 31, 2011 and 2010, respectively.

Financial assets and liabilities.

PFRS requires that certain financial assets and liabilities be carried at fair value, which requires the use of accounting judgment and estimates. While significant components of fair value measurement are determined using verifiable objective evidence (e.g. foreign exchange rates, interest rates, volatility rates), the timing and amount of changes in fair value would differ with the valuation methodology used. Any change in the fair value of these financial assets and liabilities would directly affect net profit or loss and equity. Fair value of financial assets and liabilities amounted to π18,485,451,010 and π432,771,267, respectively as of December 31, 2011, and amounted to π16,592,917,083 and π439,071,747, respectively as of December 31, 2010 (see Note 23).

Future Accounting Changes.

The Foundation expects to be applicable at a future date, the following standards which have been issued but are not yet effective. The Foundation will adopt the standards when they become effective.

• Amendment to PAS 12, Income Taxes – Deferred Income

Tax: Recovery of Underlying Assets - The amendment clarified the determination of deferred tax in investment property measured at fair value. The amendment introduces a rebuttable presumption that deferred tax on investment property using the fair value model in PAS 40 Investment Property should be determined on the basis that its carrying amount will be recovered through sale. Furthermore, it introduces the requirement to calculate deferred tax on non depreciable assets that are measured using the revaluation model in PAS 16 Property, Plant and Equipment always be measured on a sale basis of the asset. This amendment is effective for annual periods beginning on or after January 1, 2012. This amendment will have no impact on the financial position or performance of the Foundation as property and equipment are measured at cost.

• Amendment to PAS 1, Presentation of Financial Statements –Presentation of Items of Other Comprehensive Income - The amendments retain the option to present profit or loss and other comprehensive income in either a single statement or two separate but consecutive statements. The amendments however require additional disclosures to be made in the other comprehensive income section such that items of other comprehensive income are grouped into two categories: a) items that will not be reclassified subsequently to profit or loss; and b) items that will be reclassified subsequently to profit or loss when specific conditions are met. Income tax on items of other comprehensive income is required to be allocated on the same basis. This amendment is effective for annual periods beginning on or after July 1, 2012. The presentation of items of other comprehensive income will be modified accordingly when the amendments are applied in future accounting periods.

• PFRS 13 Fair Value Measurement - PFRS 13 defines fair value,

establishes a framework for measuring fair value, and requires

disclosures about fair value measurements. The standard applies to both financial instrument items and non financial instrument items for which other PFRS require or permit fair value measurements and disclosures about fair value measurements, except in specified circumstances. In general, the disclosure requirements in PFRS 13 are more extensive than those required in the current standards. The standard is effective for annual periods beginning on or after January 1, 2013, with earlier application permitted. The Foundation anticipates that the application of the standard may affect the amounts reported in the financial statements and result in more extensive disclosures in the financial statements.

• PFRS 9, Financial Instruments: Classification and

Measurement. - PFRS 9 was amended in December 2011 to defer the mandatory effective date of both the 2009 and 2010 versions to annual periods beginning on or after January 1, 2015. Prior to the amendments, application of PFRS 9 was mandatory for annual periods beginning on or after January 1, 2013. The amendments continue to permit early application. The amendments modify the existing comparative transition disclosures in PAS 8 Accounting Changes, Changes in Accounting Estimates and Errors and PFRS 7 Financial Instruments: Disclosures. Instead of requiring restatement of comparative financial statements, entities are permitted or required to provide modified disclosures on transition from PAS 39 Financial Instruments: Recognition and Measurement to IFRS 9 depending on the entity’s date of adoption and whether the entity chooses to restate prior periods.

The 2009 version of PFRS 9 introduces new requirements for

the classification of financial assets. The standard requires all recognized financial assets that are within the scope of PAS 39 Financial Instruments: Recognition and Measurement to be subsequently measured at amortized cost or fair value. A debt instrument that is held within a business model whose objective is to collect the contractual cash flows, and has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding are generally measured at amortized cost. All other debt instruments must be measured at fair value through profit or loss (FVTPL). A fair value option is available (provided certain specified conditions are met) as an alternative to amortized cost measurement. For debt instruments not designated at FVTPL under the fair value option, reclassification is required between FVTPL and amortized cost, or vice versa, if the entity’s business model objective for financial assets changes so that its previous measurement basis no longer applies.

All equity investments within the scope of PFRS 9 are to be

measured on the statement of financial position at fair value with the default recognition of gains and losses in profit or loss. Only if the equity investment is not held for trading can an irrevocable election be made at initial recognition to measure it at fair value through other comprehensive income (FVTOCI) with only dividend income recognized in profit or loss unless the dividend clearly represents a recovery of part of the cost of investment.

PFRS 9 does not retain PAS 39’s concept of embedded

derivatives for hybrid contracts if the host contract is a financial asset within the scope of PFRS 9. Consequently, embedded derivatives that would have been separately accounted for at FVTPL under PAS 39 because they were not closely related to the financial asset host will no longer be separated. Instead, the contractual cash flows of the financial asset are assessed in their entirety and the asset as a whole is measured at FVTPL if any of its cash flows do not represent payments of principal and interest as described by the standard.

The 2010 version of PFRS 9 retains the requirements for

the classification and measurement of financial assets



that were published in 2009 and also includes guidance on the classification and measurement of financial liabilities. Guidance on the derecognition of financial instruments and related implementation guidance from PAS 39 has also been incorporated into PFRS 9.

The guidance included in PFRS retains the classification

criteria for financial liabilities currently contained in PAS 39. However, there are two key differences, relating to presentation and measurement compared to PAS 39:

• The presentation of the effects of changes in fair value

attributable to a liability’s credit risk; and • The elimination of the cost exemption for derivative

liabilities to be settled by delivery of unquoted equity instruments.

The presentation of the effects of changes in a liability’s credit

risk. The revised guidance about a liability’s credit risk does

not apply to all liabilities measured as at FVTPL. Financial liabilities held for trading and financial guarantee contracts that are designated under the fair value option would continue to be measured at fair value with all changes being recognized in profit or loss. For all other financial liabilities designated as at FVPL, using the fair value option, the revised guidance requires the amount of change in the liability’s fair value attributable to changes in the credit risk to be recognized in other comprehensive income (OCI) with the remaining amount of change in fair value being recognized in profit or loss. However, if recognizing the changes in fair value attributable to credit risk within OCI creates or increases an accounting mismatch, an entity would present the entire change in fair value within profit or loss.

The elimination of the cost exemption for derivative financial

liabilities. The revised guidance removes the cost exemption for

unquoted equity instruments and related derivative assets where fair value was not reliably determinable. The 2009 version of PFRS 9 retained the cost exemption for derivative liabilities that will be settled by delivering unquoted equity instruments whose fair value cannot be determined reliably. However, the 2010 version of PFRS 9 removes the cost exemption so that all derivatives, whether assets or liabilities, are measured at fair value.

The Foundation anticipates that the application by the

Foundation of PFRS 9 may have a significant impact on amounts reported in respect to the Foundation’s financial assets and financial liabilities. However, it is not practicable to provide a reasonable estimate of that effect until a detailed review has been completed.

3. CASH AND CASH EQUIVALENTS

This account consists of:

December 312011

December 312010

Cash on hand and in banksCash equivalents

π1,746,709 921,816,977

π3,752,555385,622,018

π923,563,686 π389,374,573

Cash in banks and cash equivalents earn interest at current bank rates.

Sources of interest income recognized during the year were as follows:

2011 2010

Cash in banks and cash equivalentsOthers

π28,502,123647,307

π9,587,5151,038,478

π29,149,430 π10,625,993

4. ACCOUNTS RECEIVABLE


December 312011

December 312010

Accounts receivableLoans receivable

π65,564,337––

π54,825,3713,419,636

65,564,337 58,245,007

Allowance for doubtful accountsAccounts receivableLoans receivable

1,908,491––

1,364,6183,419,636

1,908,491 4,784,254

Net π63,655,846 π53,460,753

Accounts receivable consists mainly of advances to projects and advances subject to liquidation.

Loans receivables are financial advances to proponents in carrying out their social and community development projects which are within the Foundation’s program and which have met the criteria set by the Foundation. Financial advances are charged an administrative fee ranging from 8% to 14% per annum to cover cost of administering these projects. Maturity dates range from 1 to 10 years.

Changes in allowance for doubtful accounts are as follows:

2011 2010

Balance, beginningAdd: ProvisionsDeduct: Accounts written off

π4,784,254543,873

3,419,636

π4,784,254––––

π1,908,491 π4,784,254

5. AVAILABLE FOR SALE (AFS) INVESTMENTS

Details of AFS investments are as follows:

December 312011

December 312010

At fair valuesListed shares

At costUnlisted shares

π17,357,685,809

264,589

π16,046,879,640

327,035

π17,357,950,398 π16,047,206,675

Fair value of listed shares is based on quoted market price. Unlisted shares, which are shares that do not have quoted market price and no other reliable source of their fair value are carried at cost subject to impairment.

Revaluation reserves on AFS investments shown as a separate component of fund balance amounted to π16,707,887,332 and π15,397,081,163 as of December 31, 2011 and 2010, respectively. Net valuation gain reported in other comprehensive income amounted to π1,310,806,169 in 2011 and π12,055,083,129 in 2010.

Dividends received during the year amounted to π681,068,899 and π224,568,085 in 2011 and 2010, respectively.



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7. TRUST FUNDS

These are funds entrusted/conditionally donated to the Foundation to insure continuous support to certain charitable programs of the foundation. In accordance with the terms and conditions of the trust funds, the funds are disbursed only for the intended purpose for which each trust fund was created.

Trust fund principal are credited to deferred credits upon receipt and are recognized as revenue by the Foundation upon occurrence of a specified event.

8. OTHER ASSETS


December 312011

December 312010

Deferred charges – MCIT (Note 18)Computer softwareOthers

π79,024124,194

2,375,506

π167,70865,072

2,125,171

π2,578,724 π2,357,951

Amortization of computer software included in project utilization amounted to π62,878 π45,933 in 2011 and 2010, respectively.

Others include cost of antiques and items on display in the museum.

9. ACCOUNTS PAYABLE


December 312011

December 312010

Trade payablesWithholding tax payableOther payables

π8,188,812751,288

423,831,167

π6,401,817710,760

431,959,170

π432,771,267 π439,071,747

Trade payables have credit terms of 30 to 60 days.

Other payables are payables to certain entities for expenditures of the Foundation that were paid by the entities in behalf of the Foundation.

10. DEFERRED CREDITS

Deferred credits consist of:

December 312011

December 312010

Trust fund principals (Note 7)Grants and sub-grants (Note 12)

π140,281,08011,585,704

π102,875,08213,022,626

π151,866,784 π115,897,708

11. DONATIONS AND CONTRIBUTIONS

Donations and charitable contributions amounted to π13,357,536 and π20,015,545 in 2011 and 2010, respectively.

The Foundation is duly accredited by the Philippine Council for NGO Certification (PCNC) as a donee institution.

On June 2, 2011, the Bureau of Internal Revenue issued a certificate of registration to the Foundation as a donee institution in accordance with the provisions of Revenue Regulation No. 13-98 and donations received shall entitle the donors to full or limited deduction pursuant to Section 34(H)(1) or (2) an exemption from donor’s tax pursuant to Section 101(A)(3) of the National Internal Revenue Code of 1997. The certificate of registration is valid for five (5) years from date of issuance or upon withdrawal of the Certificate of Accreditation by PCNC.

12. GRANTS AND SUB-GRANTS EXPENDITURES

The Foundation is a recipient of grants and sub-grants as follows:

For the year 2011

GRANTS

Balance 12.31.2010

Grants 2011

Amortization/ Expended

2011Balance

12.31.2011

DeferredUnited States Agency for

International Development (USAID)

UnexpendedGovernance,

Empowerment and Transformation of the Urban Poor (GET UP)

Leyte Educational Assistance Program (LEAP)

Partnership of Philippine Support Service Agencies (PHILSSA)

Various grants for seminars and workshops

π10,631,196

2,258,828

354,299

(221,697)

—

––

62,319

10,215

917

735,953

π1,328,900

15,000

41,500

124,973

735,953

π9,302,296

2,306,147

323,014

(345,753)

––

π13,022,626 π809,404 π2,246,326 π11,585,704

For the year 2010

GRANTS

Balance 12.31.2009

Grants 2010

Amortization/ Expended

2010Balance

12.31.2010

DeferredUnited States Agency for

International Development (USAID)

UnexpendedGovernance,

Empowerment and Transformation of the Urban Poor (GET UP)

Leyte Educational Assistance Program (LEAP)

Partnership of Philippine Support Service Agencies (PHILSSA)

Various grants for seminars and workshops

π11,960,096

—

409,541

(265,185)

—

—

6,153,150

12,758

P369,160

1,928,524

π1,328,900

3,894,322

68,000

325,672

1,928,524

π10,631,196

2,258,828

354,299

(221,697)

—

π12,104,452 π8,463,592 π7,545,418 π13,022,626

The Foundation received a grant from the United States Agency for International Development (USAID) for the construction of the Eduardo Aboitiz Studies Center amounting to π33 million from 1991 to 1994. In accordance with PAS 20 – Accounting for Government Grants and Disclosures of Government Assistance, the grant is amortized over a period of 25 years at an amount that can compensate for the annual depreciation charges for the building.

On March 17, 2006, the Foundation entered into a Memorandum of Agreement with the Kapisanan ng mga Brodkaster sa Pilipinas (KBP), Junior Chamber of the Philippines – Visayas, Cebu City Government, and ABS-CBN Broadcasting Corporation for the implementation of a project called “Tabang: St. Bernard Leyte” with acronym of LEAP. Donations and financial assistance received are used in the scholarship program for the children of missing victims in the massive landslide which covered Barangay Ginsaugon, St. Bernard, Southern Leyte in February 2006.

PHILSSA has secured the services of the Foundation for the implementation of the on-site upgrading projects in Mandaue City for the period September 1, 2007 through February 28, 2009. Total management cost is π1,750,000 all of which π1,750,000 was received as of December 31, 2010. Grant fund for capability building and institutionalization was likewise given to the project. Grant for capability building amounted to π90,000 all of which was received as of December 31, 2010. Grant for institutionalization is π90,000, π4,500 of which was received in 2010 and π85,500 in 2009.



The Urban Partnerships for Sustainable Upliftment, Renewal, Governance & Empowerment (UPSURGE) Project. The primary objective of the project is to institutionalize in Local Government Units (LGUs) a viable model of civil society-local government-community partnership in addressing the shelter needs, improving the physical and environmental conditions, improving social well-being, and enhancing economic opportunities of urban poor communities. The project will be implemented for a period of two and a half (2 ½) years in urban poor communities in eight (8) key cities five of which have already been identified (Quezon City, Iligan City, Naga City, Mandaue City, and San Fernando City of San Fernando, La Union.

In 2010, the Mandaue City Local Government Unit (LGU) provided π6,000,000 for the development of the Kobe Resettlement Site under the UPSURGE - Government, Empowerment and Transformation of the Urban Poor (GET UP) Mandaue City Project.

13. COUNTERPARTY CONTRIBUTION

This amount represents contribution in kind and in cash from local partners of the Foundation. (see Note 15)

14. OTHER INCOME


2011 2010

Rental of facilitiesOthers

π2,080,1101,352,188

π2,441,7354,371,467

π3,432,298 π6,813,202

15. PROJECT UTILIZATION EXPENSES

This account consists of costs of the Foundation programs primarily addressing societal problems and concerns, which are in consonance with the plans and framework of the government. Project costs constitute costs in organizing, training and capability building, provision of basic services, environmental conservation, cultural preservation and restoration, human resource development and leadership development formation for the youth. These programs are managed and implemented by the Foundation using strategies and approaches unique to the organization.

Project Utilization – 2011

RAFI Local Partners Total 2010

Office of the Humanitarian Relations and Services

Eduardo Aboitiz Development Studies Center

Kool Adventure Camp

Integrated Development Unit

Cultural Heritage Program

Development Communications

Eduardo J. Aboitiz Cancer Center

Grants and sub-grants made by RAFI

π12,385,939

10,817,738

8,857,988

9,951,585

5,733,956

4,633,033

3,976,136

1,676,386

π7,471,175

19,006,746

1,977,007

55,658,156

29,219,274

––

17,507,115

––

π19,857,114

29,824,484

10,834,995

65,609,741

34,953,230

4,633,033

21,483,251

1,676,386

π34,135,263

14,366,436

7,442,800

26,553,939

12,605,097

3,585,257

7,781,767

1,372,610

π58,032,761 π130,839,473 π188,872,234 π107,843,169

The total amount of the project utilization expenses are expended for the following purposes:

2011 2010

Integrated development (health, environment and community development)

EducationLeadership and citizenship (youth development and

governance)Culture and heritage

π88,603,29221,585,343

42,002,14036,681,459

π31,788,01936,104,178

26,156,86913,794,103

π188,872,234 π107,843,169

Since 2004, the school rehabilitation project implemented by the Office of the Humanitarian Relations and Services (OHRS) had repaired 459 public elementary classrooms in 135 schools. The School Building Repair Project started in 2004 and aims to undertake major repairs in public elementary classrooms.

16. GENERAL AND ADMINISTRATIVE EXPENSES


2011 2010

Finance and administrative division expenses

Information technologyHuman resource division expensesAudit division expenses

π5,576,3203,728,8542,987,5322,223,327

π4,572,4263,431,5192,579,6371,943,835

π14,516,033 π12,527,417

17. PERSONNEL COSTS


2011 2010

Salaries and wagesRetirement benefits expense (Note 19)Other employee benefits

π21,717,9964,943,4594,430,124

π17,819,1453,355,9312,872,716

π31,091,579 π24,047,792

18. INCOMETAX

The Foundation is a non-stock, non-profit foundation organized and operated exclusively to provide financial aid and technical aid to prequalified deserving service agencies or communities. It is exempt from income tax pursuant to Section 30 of the Tax Reform Act of 1997 (R.A. 8424). However, income derived from its properties, real or personal, or from any of its activities conducted for profit regardless of the disposition made of such income, is subject to tax.

The Foundation has net operating loss carryover from its taxable passive income, however deferred tax asset thereof was not recognized as the Foundation does not expect to be in a tax position in the future relative to its taxable passive income.

Minimum corporate tax included in other assets (Note 8) amounting to π79,024, and π167,708 as of December 31, 2011 and 2010, respectively is creditable against normal income tax within the three immediately succeeding taxable years as follows:

Year incurredBalance

12.31.2010Additions

in 2011Expired in

2011Balance

12.31.2011 Expiry

2008 2010 2011

π96,211 71,497

––

——

π7,527

π96,211——

—π71,497

7,527

2011 2013 2014

π167,708 π7,527 π96,211 π79,024

19. RETIREMENT BENEFITS

The Foundation has a non-contributory benefit plan providing for retirement, death and disability benefits to permanent and regular employees. Retirement benefits under the plan is equal to 100% of final monthly salary for every year of service for services rendered prior to January 1, 2006 and 150% final monthly salary for every year of service rendered starting January 1, 2006. The plan is totally funded by the Foundation.

2011 2010

Changes in present value of obligationBalance, January 01Current service costInterest cost

π17,318,097179,944

6,504,677

π12,461,258176,391

4,680,448

Balance, December 31 24,002,718 17,318,097



Changes in present value of obligationBalance, January 01Expected return of plan assetsActuarial lossEmployer’s contribution

15,828,7471,741,162

(1,243,786)1,911,437

13,644,6221,500,908(863,293)

1,546,510

Balance, December 31 18,237,560 15,828,747

Obligation net of plan assetsUnrecognized actuarial loss

5,765,158(2,107,079)

1,489,350(863,293)

Liability recognized in statement of financial position π3,658,079 π626,057

2011 2010

Retirement cost (pension income) recognized in supports and other gains

Current service costInterest costExpected return of plan assets

π179,9446,504,677

(1,741,162)

π176,3914,680,448

(1,500,908)

π4,943,459 π3,355,931

Actual return of plan assets for the year π497,376 π637,615

Assumptions used to determine retirement benefits

Discount rateExpected rate of return on plan assetsRate of salary increase

37.56%11.00%9.00%

37.56%11.00%9.00%

Major categories of plan assets as a percentage of the fair value of the total plan assets are as follows:

December 312011

December 312010

Short term investmentsTime deposits

67%33%

67%33%

20. COMPENSATION OF KEY MANAGEMENT PERSONNEL

The aggregate compensation and benefits paid during the year to key management personnel are as follows:

2011 2010

Short term employee benefitsPost employment benefits

π10,036,0551,599,663

π6,730,8901,083,235

21. CAPITAL MANAGEMENT

The primary objective of the Foundation’s capital management is to ensure the ability of the Foundation to continue as a going concern so that the Foundation can continue to support its projects and programs and thus achieve the purpose for which it was created.

The Foundation manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Foundation may sell its AFS investments. No changes were made in the objectives, policies or processes during the years ending December 31, 2011 and December 31, 2010.

The Foundation manages capital using the gearing ratio. It is the Foundation’s policy to keep the gearing ratio at 30% or less. Gearing ratio is net debt divided by equity plus net debt. The Foundation determines net debt as the total liabilities less cash and cash equivalents. Equity comprises the cumulative excess of supports and other gains over expenses.

Gearing ratios of the Foundation at reporting date were as follows:

December 312011

December 312010

Net debtTotal liabilitiesCash and cash equivalents

π588,296,130(923,563,686)

π555,595,111(389,374,573)

Net debt (a)Equity

(335,267,556)1,392,524,059

166,220,538738,133,053

Equity and net debt (b) π1,057,256,503 π904,353,591

Gearing ratio (a/b) –– 18.38%

22. FINANCIAL RISKS MANAGEMENT POLICIES AND OBJECTIVES

The Foundation is exposed to a variety of risks arising from financial instruments which are from its operating and investing activities. These financial instruments comprise of cash and cash equivalents, accounts receivable, available for sale investments, trust funds, accounts payable, and deferred credits.

The main risks arising from the Foundation’s financial instruments are equity price risk on its traded equity instruments, credit risk involving possible exposure to counter-party default by debtors and on its cash investments and trust funds and liquidity risk in terms of proper matching of financing for its projects and programs.

Equity price risk

Equity price risk is the risk that the fair value of traded equity instruments decreases as the result of the changes in the levels of equity indices and the value of the individual stocks.

The Foundation is exposed to equity price risk on its investments carried at fair value classified under AFS investments. It manages this risk by constantly monitoring the changes of the market price of its investments.

The observed volatility rates of the fair value of the Foundation’s investments held at fair value and their impact on the fund balance as of December 31, 2011 and 2010 are as follows:

Volatility Rate Effect on Fund Balance

Increase Decrease Increase Decrease

Equity securities listed in the Philippines

20112010

10%10%

5%5%

π1,735,795,0401,604,720,668

π(867,897,520) (802,360,334)

Credit risk.

Credit risk is the risk that the Foundation will incur a loss because its counterparties failed to discharge their contractual obligation.

Credit risks arising from debtors are mitigated by subjecting debtors to credit verification and setting of credit limits. Furthermore, the Foundation monitors receivables continuously.

Receivables of the Foundation that are neither past due nor impaired and are of standard credit quality amounted to π63,655,846 and π53,460,753 as of December 31, 2011 and 2010, respectively. Past due receivables amounted to π1,908,491 and π4,784,254 as of December 31, 2011 and 2010, respectively, have been fully provided an allowance for bad debts.

Credit risk from other financial assets, which comprise mainly of cash and cash equivalents, and trust funds, is mitigated by maintaining depository accounts and cash investments with financial institutions of high credit rating. Cash and cash equivalents, and trust funds amounted to π1,063,844,766 and 492,249,655 as of December 31, 2011 and 2010, respectively.

Liquidity risk.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

To manage this risk, the Foundation regularly monitors its projected and actual cash flows information. Any excess cash is invested in short term placements.

The following table presents the Foundation’s liabilities by contractual maturities and settlement dates as of December 31, 2011 and 2010:

As of December 31, 2011

Contractual Undiscounted Payments

Total Carrying ValueFinancial liabilities

Less than1 Year

1 to 5 Years

> 5 Years Total

Accounts payable π432,771,267 — — π432,771,267 π432,771,267


Independent Auditors’ Report

As of December 31, 2010

Contractual Undiscounted Payments

Total Carrying ValueFinancial liabilities

Less than1 Year

1 to 5 Years

> 5 Years Total

Accounts payable π439,071,747 — — π439,071,747 π439,071,747

23. FINANCIAL INSTRUMENTS

Set out below is a comparison, by category, of carrying amounts and fair values of the Foundation’s financial instruments that are carried in the financial statements at other than fair values.

December 31, 2011 December 31, 2010

Financial assetsCarrying

ValueFair

ValueCarrying

ValueFair

Value

Loans and receivable

Cash and cash equivalents

Accounts receivable

Trust funds

Available for sale investments

π923,563,686

63,655,846140,281,080

17,357,950,398

π923,563,686

63,655,846140,281,080

17,357,950,398

π389,374,573

53,460,753102,875,082

16,047,206,675

π389,374,573

53,460,753102,875,082

16,047,206,675

π18,485,451,010 π18,485,451,010 π16,592,917,083 π16,592,917,083

Financial liabilities

Accounts payable π432,771,267 π432,771,267 π439,071,747 π439,071,747

Fair value is defined as the amount at which the financial instrument could be exchanged in a current transaction between knowledgeable willing parties in an arm’s length transaction, other than in a forced liquidation or sale.

The methods and assumptions used to estimate the fair value of each class of financial instrument is as follows:

The carrying amounts of the Foundation’s cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the relatively short term maturity of these financial assets and financial liabilities.

Fair Value Hierarchy

As of December 31, 2011 and 2010, the Foundation’s AFS investments are the only financial instruments held that are measured at fair value:

December 31, 2011

Total Level 1 Level 2 Level 3

AFS investments π17,357,685,809 π17,357,685,809 –– ––

December 31, 2010

Total Level 1 Level 2 Level 3

AFS investments π16,046,879,640 π16,046,879,640 –– ––

The Foundation uses the following hierarchy for determining the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or 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.

24. APPROVAL OF FINANCIAL STATEMENTS

The financial statements of the Foundation as of and for the year ended December 31, 2011 (including the comparatives for the year ended December 31, 2010) were authorized for issue by the Board of Trustees on March 26, 2012.

25. SUPPLEMENTARY TAX INFORMATION UNDER REVENUE REGULATION 15-2010 AND REVENUE REGULATION 19-2011

The Foundation reported the following tax types in 2011:

Value added tax (VAT).

The Foundation reported the following receipts for VAT at rate of 12%:

2011

Net receipts Output VAT

Rental of facilitiesOther income subject to VAT

π2,080,111596,052

π249,61371,526

π2,676,163 π321,139

The amount of input tax claimed for the year is as follows

Input tax beginning of the year:Carried over from previous quarters

Input tax on current transactions:Domestic purchase of goods (other than CG) Goods other than for resale

Creditable input VAT for transactions with the government

π43,536

274,332

14,449

Total available input tax

Less: claims for TCC/refund others & other adjustments:

332,317

25,530

Total allowable input tax

Input tax applied against output tax

306,787

306,787

Balance of input tax carried over to next year ––

Withholding taxes.

2011

CompensationExpanded

π4,655,7002,004,436

Other taxes and licenses.

Payments of other taxes and licenses included in project utilization expenses are as follows:

2011

CITY TREASURER OF CEBUCommunity tax certificateBusiness permitReal estate taxFire safety permit

LAND TRANSPORTATION OFFICEVehicle registration

π1,93035,68056,115

670

15,880

π110,275

The schedule and information of taxable income and deductions taken for 2011 are as follows:

a. Schedule of Revenues

2011

Interest income π376,359

b. Itemized deductions

2011

Finance and administrative expensesInformation technologyHuman resource divisionMiscellaneous

π4,970,0003,728,8542,987,5332,829,646

π14,516,033


Fund Uti l izat ion

Integrated Development

Culture & Heritage

Leadership & Citizenship

Education

47%

19%

22%

12%

Integrated Development

Culture & Heritage

Leadership & Citizenship

Education

47%

19%

22%

12%

FUND UTILIZATION

2011 Ramon Aboitiz Foundation Inc. Annual Report

Documents

Transcript of 2011 Ramon Aboitiz Foundation Inc. Annual Report