FSS I

FOUNDATION FOR A SUSTAINABLE SOqIETY, INC.

ANNUAL REPORT

l : r vo

FOUNDATION FOR A

S U STAI NAB LE

soc lETY rNC.

AN N UAL REPORT I 996

M F S S A G L

T H E F O U N D A T I O N 2

H l c H L - t G H _ t 0 F 1 9 9 6 . , . . . . , , . . , . , . . . . . . . . . . . . . . . . 4

P R O J E C T S A p p R O V E D . , . . . . . . , , , . . , . , . . . . . . . . . . . . . 1 0

R E P O R T O F I N D E P E N D E N I C E R T I F I E D

P U B L , C A C C O T J N T A \ T S , . , , , , . . . . . . . . . . . . . . . . .

S T A . I E M E N T o F F ] N A N C I A L P O s I T I O N , . . . , . , ,

1 6

1 7

1 aS T A T E M E N T O F A C T I V I T I E 5

S T A T E M E N T O F c A S H F L O W s . . , . . . . . . . . . , , , . , . . 1 9

N O T E S T O F I N A N C I A L S T A T E M E N T S . . . . . . . . . 2 O

G E N E R A L A S S E M B L Y M E M B E R S , . . . , . . , . . . . . . . 2 4

MESSAGE

Our first Iull year of operation.$'as ir ilsclJ hll of fircts. SoDle oI lhase

. The Foundation's Board of Trustees approvcd PhP 4r9,632,220 (USg 2.67r llion) worth of fhancial assistancc to NGOS and Cooperalives as wellas to Dri.ro, .ottage, and smal cnlarynsas.

. Nnrcty-five percent (95% ) of the assistancc was 1n rhe form of loans,credit thes, guarantecs, and cqdty invcstnents. Only five pcrceni (5%)was h the forn of granls.

. FSSI is thc firct Philippire nrstitutnn k) p()vidc grarantee fa.ilities Ior. lricro and cotlage erlterprises. Mofe than onc-third (38%) of our

assistance, or PhP 26,001),000 was 1lr the fornr of guaranlces.

r Throrgh our guararrtec schc cs, l,cncficiarics and intprurcdiaryorganizations ran gain acc€ss lo rrorc lhan PhP 75,000,000 h additl(xlalrcsources. This wiU double thc fhancial tupd.i oF orLr Rssistan(x, toNCOs, POs, cooperat ivcs and.ornDluni ly cntorpr lses.

. Alon8 wi lh o1lr partner-orta izat ions, FSSI is proa.t ivcly dcvolof ingecosyslcrr-based enk .pr. iso olodcls for thc upland, (ropldnd, .oastal ,and urban areas. Thcso Drod€ls shal l , hopeful iy, htoUra!o ( l rodI dcl ivory,tcchnologk:al innoval.rcn, L:apabi l ty-bui ldinS, cntcrprcnourjaLdcvclopurcnt/ and harket inS syst i"Drs k) prod(cc c(tDomi(:alLyviablc,c(ological ly so(nd, com lr l i ty-Lrdsed sustainablo enterpr iscs.

. Evcr afk r pfovidiDf i lho abovc assisiarccr af ld spondinE lor proSrarrsand opcratiorls, o11r total asscls havc gfown lrorn tho origjrlal ( alitaL ofPhP 454,822,597 in Scptcrrber 1995 Lo PhP 503,818,859 in assoLs ar Lho ondoI Dccember'1996.

I t has becl l qui te a yaar.

I wor d l iko io t lunk my fel low Trustccs, the Foundat ion staft , tho GeDeratMerrbarship, the Philippinc Covernrnont lhrough rho D€tar.!moit orFnran.e, and thc Swiss Cor oderal lon through i ls Eml,dssy an. l i rs FcdordlOffi(e for Foroi$r Econoni( Affairs for thctu coniirruillB ftDrrrrii1rlonr to rl.rc,econonic eDfo$,emont of ot1l rural and urban poor. Spe(:iat lhanks go r(,the Swiss Colrlitior of Dcvelopnrent Organizarions whose advocacy andsolidarity spaw,red thc Iounda!ion's cndowDrenr.

Mosi of all, wc thank olu par.tllers/ whosc nitiativcs,idoas, and idoals Drakelhis erltlowlnenl a11.1 its wort}whiie use possiLlle.

Mk*"r**7,1-+-tChairper3on

Board of Trustee6

STATEMENT OF ACTIVIT IESF o R T H E Y E A R E N D E D D E C E M B E R 3 I . 1 9 9 6

Income from funds held in hu6t PhP30,712155.0026,600,308.00

PhP57,3L7 463.OO

Provision for d€cline in markei value ol inveslnenrsPioject Grants (Note 7)Salaries and wages

M€etings

Triwol r n.l 16n.n^rri i i^n

F,nnl^vao<' hanof .

Offlce supplies

Bank chargesUtilities

Staff developmefltBooks and reference mat€rial8Re$t

4,331,220.402939,150.m

1,905,850.00529,945.00477,668.00432,237.OO401,258,00382,155.00250,553.00799,454.441s9,642.40158,519.00753,727.00702,575.00

59,352.0055,497.OO43,000.0031,600.0016,987.0016,880.0085,500.00

PhP72,732;175,00

Exc6s of Income over ExpensesAccunulated Savints, BeAinning

44,585,288,002,74t,293,0O

Ac(u'nllated Savi Bs, End PhP47,326,581,00

Se€ Notes to Inrancial Stat€menLs.

t

STATEMENT OF CASHFLO\ iVSF O R T H E Y E A R E N O E D D E C E M B E R 3 1 , 1 9 9 6

Operating A.tivitiegExcess of incoffe over expenses

Adjustmenis to .econcile ex.ess of income over expenses to net.ash provided byoperating activitie6:P.ovision for decline in narket valu€ of invesrm€nls

Iftrrease (decrease) du€ to change nrlLoans receivables-ProjecisAccrued nltercst receivablcsAdvallces to officeis aid empioyeesPioiect graranieesPrepaid oxpensesOthc. current assctsAccofirts payable a d acoued expensesOlher cur.cnt liabilities

PhP 44,581288.00

4,331,220.00132,237.OO

(4,519,891.00)(17s,961.00)(584,694.00)

(1,200,000.00)Q75,6AA.AA)

94,500.00112,000.00

1,456,083.00PhP44,355,182.00

lnvesti g ActivitiegFrnds held in tr stAcq!'isition ot prop€rty and cqujpnent

(157 ,717 ,198.A0)(10,081,093.00)

$67,798291.00)

N€t Declease in Carh and Cash EqrivalenrsCash atrd Cash Equivaienis Balance, Beginning

(123,443,109.00)137 ,375,603.AA

Cash and Cash Equivaletrts Balance/ End PhP L3t932,494.00

sec Notes ta linanclal Statcnients,

HIGHLIGHTS OF I996

iscal Year 1996 marked the slarl ofFSSI's full-blown operatlons towards itsnlissian oI serving as a resouccnrs[trtion for lhe econooricerrlpowerment of organized marghal

rural and urban cortnrurities in thePhi l ippines.

Thc year was highlighted by thcestdl'lish ent of thc Fo{ndation's office, stafffe.ruilnent, exlcnsivo propagatk)n of thPforndaik)n's guidchles anrong targetbencf i( iar ies and scrcening and approval oftho ini t ia l balch of proiects. During tha year,thf Bodrd of Trrslccs dlso (rdDre oLlt withrlrlior decisions regarding rrechanisDls anredal cnhanciLrg the Fot111dat ion's assislancc to{1)ttagc and sm a l1 antcrprises,

Off i .e E6tabl ishtnert . Pursuani to a Boardclocision i )r thc cslabl ishmcnt of iheFornda! ior1's off i ( :o. a housc and k) l locaLeddl Sdular Ave. in Quczon City was pffcllascdt)n l -1 Fcbr!ary '1996. lhc lay-oul oI thcljurlclin8, whl(h was thflr urdcr co strllciion/w!r$ rcvisad in a((r)rdanco with a dcsi811sugl} ,s ied Ly ihc Board ofTr!stecs. Whi l€ await ingihe.(,mplol lon ofronstru. i ion arrd f in ishingu.tivilies, FSSIteDrporarily rented a roomat lhc off i (e oI lhePhilipphes Canada

Dcvelopmenl ProSran ioservo as ' is oPerat ionsl)dse. The trui ld ing wasf inishcd in rnid-Atr i l .

Sta ff Recruitm€nt.Anolher lnajor.oncerl1during lhc start oI lheycar was ro recrr l rqUalilied individuals losta{I lhe Foundation.

After a three-norlh search which began tnth€ third quarter of 1995, the Board oITruslees appointed Mr. Eugedo M. Conzalcsas lhe Exe.utlve Director oI FSSI. Mr.Conzales, who was also involvcd asconsultan! in the dasign and negotiation ofthe debt .onversion thal led to theFoundation's cstablishnent, began his termon 1 FeLrr(ary 1996.

Also apponrted was Mr. Jun At ienza asAssociale Exe.ut ive Direcbr. Mr. At ienrdhas morc than a de.ade of experienre indHv, l , , f nrentJl 6rdnt- i rJ l i , r t thruLrth h;- lonlc\pcf l" , r , r i , r \Uf lM,ss,un., r , r or8Jn,, /r t , , 'nbascd in the United States. He assunred lr ispost wi lh FSS1 in l r l id-February l996.

Recr( i t f ient for tho reDraiuins l ivc posit idrso((: t |piod the monl)$ of March and Apri l .Scrccni g of appl i ( :ants was done with th, .assisia ce oF the Phi l ippine Business fofSocial ProBrcss and sonro mcnrbers of thcBoard, By lhe md of April, the {(11 stallconrpleDreni oJ seven persons was alreadl

Othcr rccluited stafl wcrciRicarclo 'Iorlcs,

Jr. (Sc orPro?,ra Officer)r Rdchel Reyes-Soscon(Pro8ra olr iccr) ,Cocilia Elauria-Roblos (Fino ceand Ad inistrat ion Manager),Avelina Lagnray(Admhistrative Assislant), andVirgilio Ninler (Driver/Messenger).

Pl1blic-Inf onnation Drive.Towards lhe cDd oI tho Iirsiqrarlcr, lhc loundationla{nchad a?ublic nrforDratiordrive regarding FSSI and ilsservices. More than l , (100copies of the Fourldation'sguidelhes were disrriL{ledanong various NCOS, POs and

cooperatives throrghour,thecountry. In addftio& theExecutive Director and rheAssociate Executive Director haveattended a number of NGOmeetings, workshops andconJ€rencas to nrhoduce rhefoundation and ts services as wellas to oblain inJormation and id€asfor program plannnrg antt

During the second qudrrer,meetings with cooperatives and NGOS wereheld nationwidc to gather and discuespotcntial collaboratiorr i1 innovarivef inanc'n& r i (c LradinB anLl orher ac( iv i t r .s.Likewise, more briefings in the diffcrer.rtislalrd-regions were held to explain in moredetail thc FSSI glidelincs and processes lorproiect appraisal ard developncrt.

The aggre6sive inlofinariy'n drive undertakcnrcsulted in Lhe.subDrisso{r of nrore than 70proposals to tho foundation during th€ yoar.

Se(ond ceneml Assel l rbly. Thc pounJahoheld its znd ceneral AsseDrbly on 22 April1996 in Quezon City.

The stalf were inrroduced to rhe generalDrcmbe$hip. Reporls and presentarioN onth€ activities and operations of rh€

1., ,"1, , ,"1 werc_ ordde. Mor. rbf ,orLJnLty.

rne rores or lY)emberc and membershippolicics were clarilied and a naw set ofBoard.oJ Tru6tees was elected, A majoran]el ldnlcnt was ]rradc in the FSSI l .y_law!whi( ' l l incrcased the numher of electedtru$tccs to sevon,

The following were elccted to theFouhdation's Boardr

Chairpercan

Ex-ofiua Mcntbet s

rvrd, AtLrora Io lenl inr)(PBSP)Salvacion Bulatao(EDCS)Marlenc Ramirez(PHILDHRRA)Renro Cesu(HELVETAS-Phils.)Jocelyn Cabo(PHtLSSA)Terosita dc L€on(NATCCO)Martin Tanchuling(NCO,CCD)Swiss EnrbassyDeparhnent oI Finarlce

s o c , E r x , N c t o a N N U A

M A J O R D E C I S I O N S O F T H E B O A R D

Psie.ts. During the fiscal year, the Board ofTrustees approved a total of 18 projectsdDrounling to PhP 69.63 nillion. TheIollowmg tablc shows the tund alocationa..ordnrg to the type of assistance providedk)r these projects:

O N B Y E N T E F P R ] S E , 1 9 9 6

AsSISTANCE PESOS

Gra nts

Equity

Credit l-ine

3,487,6sO 5.0011,343,s7O 20.61

800.000 1.152t000,000 37.3425,000,000 35.90

I0 addit ion, s ix projccts alno!1nl ing k)PhP19,{,{)00 were apFroved flrdcr theFot| r)daiion's Small Crants Facility.

Tolal 69,63't,224 100

N L ] M B E R A N O ' T Y F E O F E N ' T E F F R ] S E R I B U Y I O N , I 9 9 6

E N T E P R I S E ' f Y P E N C R N A T O N W ] D E T O T A L 9 5 s6 sHlnJiNTOTAL FSS|

i'1Y."".NIAlt f i \ r r l tura l prcduct ion,

tuassing, t rading1. . udi fg l ivesto(kUt land L jvdihood

Servnls ( t ransport ,

Consul tat iv{ : /Brs iness

39

1 6 1

2 1 1 1

I

0

U O

0 0

0

0

U

1

0 0 1

0 0 4

6 4

2 2 4

11 33

5 0.1

'lotnl 7

]].rttrt l)isttib tit)lt of 39Y.

i \ r i . r t shnt . i11 tot r l FSSI 11y,

3 , 117% 22%

2% 11%

271%

2 %

2r1,%

37v,

1 8100

M - M t \ D a N a o N C R - N n r j N A L c a p t r a L R L c r a N

100

T N S T R U M E N T . F S S l , l 9 9 6

O F I N V E S Y M E N ' I ' I O F A R T N E R J

F 5 S 1 , 1 9 9 6

Guarantee Schemes. To complementthe $ants and Ioans it providcs, FSSIset up various guarantee schenes toleveragc additiotal tunds for nicro,cottage as wel1 as small

Among such schemes is the guaranlccdeposit facility for rural balks whichencourages rffal banks to go inlomicro lending and other innovalivecredit sche es lor poveriyalleviation.

Through this s.hene, FSSI provided aguarantee frnd of PhPl ll1i1lton to theNew Rural Bank oI San Leonardo,N eva Ecija for iis rnicro-lendini; andland redeftption prograDrs. l'he hatkwas chosen as lhe Iircl nrternr-"diaryunder the scheme because oI ils microleLlding track record and cxpertise,high !epayoreAt rates ovcr the pa$Lyears/ in ovalivc approaches and il.ssound financial positbn. Bccalrso thebank and its bran(:hes aro ir a lillhclass fiunicipality/ it can activclyreadl out to Fovcrty groups.

Another scheDre p(t in place was th{rG11araflLec Faciljly for Cottdt]c alrdSriall Enterprises. The BankcrsAssociatio[ of the Phillpphe'J CreditCuaranty Corporation (BCGC), anilstitution astablished by thecounlry's conrmercial banks loperform lendnrg functjons to slrlalland mediuDr scalo anlerprises, waschosen as irteImediary.

Wilh lhe PhP25 nilljoD g araiieefund provided by FSSI 1llder thissche €, BCGC can expand jts lendnlgto cottage, snall and Drediulnenterpdscs by an additionalPhP75 rnillion.

Small Grants Fncility. FSSI guidelhesrequn€ a rninnnun funding reqllest of PhPllnillion lor proposals to be eligible forassistance. Du ng the fiscal year however,FSSI r€ceived a n11nlber of proposals for

trojects which had a high potential lor firturelcnding or investment but which did notmrct the lllinillrum Iundhg requjrernent.B.cause oI lhis, the FSSI Board of Tr(steesapproved lhe establishrcnt of a sDrall grantsfacilily iD its 27 Au$1st meetnrg lo respondk, such proposals.

gTRATEGIC FRAMEWORK

Givcn the potentials and limits of theFouldation's humai, fhancial and socialrosoLrr. e5 | qST h^pp< to dtLdir i t . v i . ior l i r drniqLlc, optimal and puryoselul mannerthrough the follownlg strategic thr{stsidentified by tha Board oI Trustees;

. Deaelapment oJ lttodels a1ld "winners" thalrutximize impact across ecosystems throltghdifle r en L econotni c act ixi ti es

Among such nodelsidenlified was s11stainableagricuhure beca(se of itspoiential hrpact on ForestecosysteDls/ coastal arldoratlne ecosysreDrs/ uroanecdsystems andcropland

In linc with this, lhcdcvcloFmcnt and prodrcii0rlof orgaric Icrtilizers, scen as aDrajor rrrpul to sustainableagricdtffc, was aggrcssivdyplrshed and supported by theFo(ndaLion. Twoprojeclsthat iL l teBrate technological ,

l'inanciai and [rarketing support to organicfcriilizer prodrctior and sustairiableagrict lLt(re were afproved in 1995.

On the outpu t $ide of sustainable agric! tuc,FSSI has been providing slrpporl forcoopcraiivos, h.hich aro saoi as poiential,iarkethg networks for agricdlural productspartic! arly organic rice, fruils, andvegetables.

Bltild Faltnerchips with key plaverc who c!:tus h p p l , a t n t o n t p l e m , a t o r b r t t r t i t p L n L c u tthe F ou11 dnL ion's s etL) i ces

During the year, corcept papers wcrc sharedand inilial conlacts tllade with other fuDdnrgard lendirg n$tihrtions such as theFoundation for the Philipphc Environment/

A( tiviiies eligible for 8rdrlls u dcr lhc facililyarc plcleasibility slr1dics, tcchnicalassisLancc, training/ (onferciaos and

workshops, awards for cxccllanco ino n J , - r ' . n r o h k d t o \ u r t r i n J h l c f r , ' d u . ' t i ' n .

c n J u L l . ' r < r r o i - t c r D " d . L r \ r t r o s t h a t , J n h e l ph u i l L l l i . . d p d r i t y . l n r . p o r ' , , 1 \ l u ' f t J t ^ , , ,

sustarrable prod11cllon Projeets.

Eligil,le organizatnDs are NGOS, POs,(oopc.ratives and other stu lar organizationswi lh at loas! one year track record and aninlcntion io go inlo proiects nr srctainabl.

The amo111rt of assisiance p€r project shouldnol cxceeLl PhP50,000. The facilily has anann[al budget of PhPl mi l l ion.

" . . . " . " . " " ^ . , " " " o F o R a s u s r A , N A B L E s o c , E r y

League of CorporateFoundatiors, and rheBanke$ Associarion ofthe Philipptues CredirGuaranty Corporarion(BCGC). Likewise, anumber of borrowers areconside.ed as potenriatkey partners for specific

. lnfiapate uith new .instnt lents and

the sethrg rp of a php25million guarantec funrt h:,rsnrall and cortageerterprrces la, h rheBCGC. The fund witlerable the BCCC iocxpand its lendingproSram tor smatl andcoltage enrerpdses byPhP75 miition

insl i . l t t t i .on< l l tat can taspanJ to l t tc. tMry;ngneeds of be ntfic iat ies

A guaranie€ depos facility for rural banksand si1nilar irlstituliols was dcveloDed.Towards the €nd of the fiscal year, a phprorillion deposit ftoDr the Foundation wa-nacle at thc Ncw R(ral Bank ot San.Lconardo, Nueva EciJa.

TIle Foundation ajso received a proposalIroll1 thc BCCC on a guaranty fllfld for 6ma1]cnn'rFri,,!'s. Such pr,,posal Idrcr rcsuIk,Ll rn

I -OOKING AHEAD

With tha fiflalizarion oI thc Foundatio|,sstratcgic plan durjng thc y€ar, FSSI sces rrsh J n J s I L r l l w j t h r h c J . v f t , , p I n , n r J n d p i t . . . l tor_1)1o. l€ts (sustainahlc dSri( L tL1r" anJot lrers) and ncw irrctrrLolenls ds wel i asdevelopurg l i r rkages w,th foL"nLrcl kcytarhr€rs. This strdll he lollowcd by ari, rsspssmcnt oI thc pi lor phas!. th. rcsLrl t6 . , fwhlch-wi l l lorot the base6 f , , r thc f inp_! l l ,uI l ;and full iDrplcDlentation of crltcrpr.iscnrodols ard financial instrunren; in thc ncxt

PROJECTS APPROVED

l) Nrtianal St\dy Canfercnce olr SLlstaitlable

Fi \ rn. i S la t the Poal

The pro je. t seeks to l :onsol idate some

si f l l i l i .ant exfer icn.cs of Phi l iPpnre NCOs,

POs and cooperat ives lowards the generat ion

of fo l i .y rccoo1l l lendat l ( ) r ls for ihc

govcrnDlenl , Ihan{e sector and ihc NCO/

PO/Coofcra l ive conrnuni ty on lhc

manaiteDroni and delivery of fhancial

serv iccs to t l re Poo1.

I ]SSI appft)ved a granl amoLrr l ing toPhP50,000Ior thc f | , () jed withHEl. .VEl AS, SWISSCONTACT andSNV provi( l rrrg . ldcl i t ional snttort

The project aims to dcierurine, through afeasibilitt study, rhc l1larke&1g, financiaLte.hnk:dl ard organizalional requn e erts ofa sustain. lblc cxport vent lr fe for aquaf iuDlf ish gathcrcrs. Another Drajor .onrponeft oflhc proje.t is an assessnlcnt of tha i1airi11gn A J \ . f J q , , J n , , , , , f r . l r [ . r t l r ' r - r ' - r r . l . h , r$, iv€s h sustahabld resou n e DranageDert.

FSSI provicled a granl oI PhP369,150 Ior iheconduct of the stlrdy. Prole(l sites 1rn:lud--

)

)

':WW

I

of PhP150,( l (r0. ' l 'ha projocl is bfnrg ,

InrnLfrnf f t , J l ,v th , Cunc,rs oI i ll ) fvciopnroni NCO Nclwolks, thchf l t ( 's l (odLitn)Lr oi dovoloImoutN C O s i n t h c P h i l i f f i n o s t o d a y . " l h osLudr vr i l l I 'c t r1ous|r ] in l \4ar.r l tt 9 9 7 .

2) St lstr i )nbtu Li t)ul ihaad farAqtLt ' i I I t t l I is l t Colhclots

ln Lha pasi , ihe pf r )por tnt , tho HARIBON

FotLndaLnxr I'(n thc Consorvalion of NailLral

Ros()rLr .es pfov idcd in i l id l ass is l -nn.e to an

rnvi ronnrenr f c t lc l ly aquar i ' rDr I ish

l la ihol ing venture o l th . Podorasvon nf , Mg.r

l\1iB-Aal(w'aryu nB Pilipnras (Fcdcrat(xr of

AqL,ar iunr F ish Col ler tors of lha Phi l ipp ines) .

Thc NGO l ra lned fcdefat ion urcnrbefs to usc

neis ns lcad ot r ]aniL le h) gaLher f ish. Ihe

assls idn,e enabL. . l thc Fcdcral iur to ndkc "

tu$ shpf lc f ts of aquar i rmr f ish to a

Can,L lLrn \CO, lhc O.ear Voice

ln l . . rnat io la l . Wj th the growing denland lor

,ddi i ional sh i tDrents, the HARIBON i lnd the

FeJ.r . r i ion now have to t ranslornr aquan!L11r

Iish gathernrg rnio a scdous Lrusincss

Bolnuo in Pangasrnan, Nal ipean in B"r l . rnSosanlt Sar Sdlvddor ls ldnd nr Za balos.

3) Fattulntia oJ All Islutld-Wide LiLiclilloodDclteloflne t Plttn .far San Saltwdor lslLtttd

Thc projccl , wl ich is also beuS inrt leDrentcdb) the HARTBON FonD(laln)rr for thcConsorvahon of Nat l , rr l Resonr.es secks !oiorrrrulati, a .om f rchonsivc livclihooddovolopmcnl proilrdrrr for Srn Salvadorlsland in \'lasinloc, ZaDrtralcs.

Thc is land is.r show.ase of i :om muDity-basc.1krrour.e .onsol\ ,at ion and managenent.Establishcd nl 1989 as a tl1adnc sanctlary, all

.,\i

terccnt and the increasirrg c()noDrkj activilyllr the Dldnrldnd are lx,gimrnrg ro pur prcsstlr.o()n thc is land's reso!r(cs. Thus,

iorns of destrucliveiishiug practi( es, €.g.d\ramitc, cyanideiishm& etc. have bcenlotal ly curbed. Fish.ah h has gone ba.kto i ts prcvious lcv-ol

. . ,nairs protected by

rrganization in thclsLand. Aside ftorrrl1sh, San Satvadoralso producos r icc

Populal ton growthrate oI ihfee (3)

lh! 'n.( ,d to develof dromFrohcnsiv0 l ivcl ihooddovoloFnr{ lLrt proiyd n.

sf . f i f | ( obj( .( l t iv0s of !h0 proiocl. , r . r io stren8thcn thc ncoplo,sorr! nizdt ion's ( :rFa(: i ty Lo handlolr ! ol ihood and srral l -scaie, ntc.rpr.iso doveiopDrorr proic(ts;. \ploro ways oF cxpanding rhe.\ ist ing.(x)pornr ivo servi .es;, 'nd, to devotop a managemonts.heme lor l.he livelihood

ProSranr 's inrt le er l taLior.

The projcct reccived a granr a1}1ounlin,{ roPhP310,950 fr(, Dr FSS1.

.l) LLpsc|ling flte Prad ction atLd Ma.tpLtry olMASIPAG Ri. .

lDrplc reLrtcd and nranaged try rhe KaanibFoundarion, Inc. (KFI), rhe froj-{ r aims I. \ d b l r \ l r r n r o . l l , r r ^ . r _ r J D r J r l n r | r D . t - J i nhrr ihc MASIPAC dce variety in Bukidnonand organize Dranagenren! and te(t .alsup?ort b Dlanrtanl the cfficicnt operatior of

A loan oI PhP 2.5 million was granredby FSSI to KFI to se.ve parrly asproducljon inpur ard nainly as se€cicapital for the procuenent aidnarkchlg of MASIPAG dc-" va.ier),. Agrart of PhP319,000.00 is being usccj forfte condu(.t of rraining and odc,rrla[io11lo at lcast 18 peopl€'s organizar ionsseeknlg to pur up tleir own MASI],AGriee product ion and markering chain.

Aside fron enahhrg KFI ro set rp aDusmess center to inrprovc i ts capacityfor self-rcliarce, rhc projec! is atsi)expe.ted to hrthcr fromore susianrableagri(ullure n1 ar least s-.venmunicipaiitics in Bukidnon.

5) PDLiert! AlleL)itlLion Tbaugh S stni lbleAgricjLltafnl Pfnd Ctio (Foc|s a CatltcFitlteniflg)

Ihe proie( r, which js bejng r]landgcct by rllcCertre for Altenarive R11ral rechrn)lory(CART)-Cagayan de Oio City, aims r(iprovido ar opporhrnity to increase thotucoue of hors-"hotds engaged ln cartlofattening.

Under thc rroject, CART witl use thc pht,j.2mrl l r , 'n i l borrow.d fru. ,r fssl r , r d, LI Ie rur lh F d d \ o r . a L I I F \ ^ h , , h w i X t . e d , - p o r * J , , . . ,

.-

Zn|rbales and tho

rdp.rhi l j lY and

bri ld lnS.orllPonents of thc

adLl iUorulI'jhP20{),000 ir loar

was. t lso Providedio scrvc a5 a ( redr t

sLrFnort to organic

tcrtiliTPr

Lodn to 5l) beneficiary-hotseholds belonging

to iU orsaiiza&)ns The Provisnn of s{ch

hvelfio;d facilily is exPected to assist 50

houschotcis k, in.rease their nlcorne by 40

Dcr.olrt jlr threc veals At lcast 450

iro.sehol.ls are expected to bencfit from the

loan fa.ilitY in threc Years

Anothcr PhP300,000 in grants shal lbe used

in acrivilies ained a! Pro ornrg stslainable

dsrir lture a ong 15 organizations in sevcrl

, ;nn u t ias in B*idnon, social

rnf f astru.iure develolmellt a|d erhancing

ihc i . ] rbrPrise Liase of 15 co Druni i ies withnr

L h . f r . r . r . " . . ' r l ' t . L r - l r u r d h l ' " 6 r i ' u l t L r i

q ar|Ltl1i. Fertilitcr DcPalolmekt and ZLlt baLes

FLlt t Rchdbi l i tn l ian

' I h , ' , r . - J . ! r f n , l r . t ' l r h " S t A t r g L r \ t r r c

Sdmb,r l t 's Area ManaUcrrent Banking and

Livcl i l loo. l l is! i lut(r seeks to: a) c lcvelop lul l

h lo\ \ 'n pfo. lucl ion arrd olarkel ing Plrrns ior

( onr nr u ni tv bas0d orgonic fer l i l izcr

p|o. luctnrn; h) i rnProvc thc ic( ini( la l ski l ls

u,rJ .r" rrnnt.- . ' f f ; r r :11'rs dnd froJui(15 in

the rsc and prodacLi()n of olganic fcr i j l izer;

all.l, c) rurprove the crrltrcp ronc u r ial skills of

POs u clor SASFI who wi l l pursue orSanlc(, ' r l i l izof f rodndicrr l as aLr cl l lerprrsc'

A qrdnt oI PhP807,800 was rnade by FSSI tur

aci iv iues relnted to t t re dcvelopnrcnt of the

Produ.lion and arkcting Plalls irr ihrac

7) Caopentioe l&oiesale BusineEs

Through lhe Project, the Misamis Oriental-

Cagayan de Oro CiLY Federatioi ot

Coo?erativcs, aims to provide cheaper

consumer goods to 46 ?rinary cooPeratlves

through a wholcsale-retail blrshess

A PhPlDriliion loanfrom the FSSIwill provide

additionalcapilal o11llaYfor lhecstablish entoI such

venturc whi.h

by 20 percMt

Likcwisc, thc

io lea, l to thc cxpansion oI thc nTembership of

lhc fedcration as well as to the financial

stahiliiy of iho mcnber cooPorativos

8)E tel fr ise Dertelofnt. t

far Lok-Cast Eco-Sful ter:

F.asibility StLtdll

Thc projcft whn h was

proposed bY thcHarnessnrg oI SelfRaliant hitiaiives and

Knowledse (HASIK) is

ir'I response to theinadequacy of shelterplovisions for urban

poor cornmuniiies a d

devclop111ent workers

HASIK and its partners, DACY Architectsand Plarrners and Huolan DimeDsionEnterpdses, intend to establish an enterpri6ewhich will explore the possibiiity oIproviding a nlore attractive altcmative tocrllent resettleircrt options, In line withthi6/ bw-co6t horcing nodols aimed atirrprovinS the qrality of the livinS conditionsof the poor 6ha11 be developcd and tcstod.

The PhP 712000 grant provided by FSSIcovered the first pha6e oI tho project, thecorsiruction oI a prototype afld the conductof a leasibility 6!&dy to assess the viability oftlle ploject as well a6 to deterDilrc theorganizational rcqrrirerneLrts oI thi Eltterpnscrhat wrl l bc tdskecl to rnpl&nre t the F(o-Shelter Prolect,

9 ) P alay -B uyil1g Pr aj ect

The projecl aiDls !o uplilt the socio-econonicconditior of the farnler-ll1ambers oI Tag(djnMultipurpose Cooperative through rheprovision of a ready arket for palay andother farn produce.

In line with this, a loan anourtnrS b Php2.5milion was approved by FSSI io expand thecooperative's palay buyl1rg/rice narketingprogram. fhe furrd :hdi l b, , uced ds spedcapital to buy and store enough rice supplyfor its members as well as sell to othercooperatives in Ilocos Sui, Abra, Baguio Cftyand Manila.

In addition to th€ loary FSSI alsoapproved a grant of PhP220,000 forkandng related to the palay buynlgproiect of TMPC for one year.

10) WometL Operatins a TrunsportScloice Through lhe Caopelative

The transport bushess js traditionallyperceived as a "male-dotllinaredactivity." Tlrough the proiect, theme)nbers of the Maligaya Women'sMultipulpose Cooperative, aim !odisprove such perceptior by slownlg

their skills and managerial capabilftes inop€rating a transport bruiness.

A lonr of PhP966,970Iao FSSI was used forthe acquisition of two urdts of ToyotaTafiaraw FX taxicabs. Th€ venture not onlyganerqtes additional incone lor thecooperative and its ircmbero but alsoprovides a non-traditionaI for:I ofomployirent/inco e-generating activity l()r601110 of its irombero (or their fami]ies) whoare taken ifl as drivers,

Likewise, the units also serve as servicevelliclc lor the cooperative duirg i[rportantactivities related to th€ conduct oI itsoPeratrolls.

'11 ) B fidge Loah for a Cothmunity Fareslry

Prajecl in Negras Occidental

This proieci oI the Broad Inftiarives forNegros Development (BIND) airrs to buildthe social and physical hlaastlucLure rhatwill onable a people's orga zation tosustainably malage a comrunity for€srryprogianl. Components of the projecrsirrclrrd€ the conduct of a loresr resourcenrventory lormulation of a comm111litytorestry manaSement plan, sertirrg up of, o D r D r u r r i t ) i e d r r r i | l U , e r r t p r s d n d . i n a n . . I g ̂ fputllp prinhg acri\rities of Lhe PO.

BIND was originally contracred by theDeparhnent oI Environment alld Narural

Resources (DENR) to

projed. With thefa 11Ie of ihe latterto provide thcagreed upon lundsdespiic the

reqrirements, BINDdecided to pursue

Iiotwithstandhg iheproblcns withDENR.

Thus, BINDrequasLcd Ior a loanof PhP380,000, which'\,ds approved by FSSI ifl July 1996, to fundth-" nrr cdiate irrplenenlation oI the

f roject's long-dclayad cdticai activitie6.

12) DeL,eLalklent Srppart to the MargiftalFatmets aI Bafthgd! GenetuI Climaco

KAKASAKA"SUgbds projecl is airned atincrcasjng the incoDe of farmer-nrembers ola cooperalivc by providing necessarysupport facilitie$ such as farnl prod(ctionorluipDrerl t ard credit .

ln linc wiih tllis, a loan oI PhP900,000 fromFSSI was partly tlscd lor Lhepur(hase ol tbree harld tractorunils which were then nadcaccessible to Iarnlerc. Alsopurchasod frotl tl,c loan was alhroc-torlller truck lo Iacilitatelhe cooperativa's wholesale

arketirg activities to and ftoCeb! Cily.

Part of the loan was allocated asa.start-up capilal to the.oopcraiivc h lha purchase offarrn products froDr its farlllermembers at better pdces. Toco]rrplement these, FSSI alsoprovided a PhP282,300 granl for

capability building activities ofmembers and potential members oI

13) Silang Waste ManaSenent Prograin

This project ofthe Institute for theDevelopment of Educational anrlEcological Altematives, Irc. oDEAS)centers arollnd generathg turtherawareness o1r environncntalpreseNation thlough wastesegre gation, recyclin& processhgand organic fertilizer markethg.

The major components of the proiectinclude: a) environmental edrcationand irfornatior campaign; b) wastesegrcgation and collection; c) setting

up oI an NGO-rna1taged nl11nicipal procesgingcenter for urban biodegradable waste in5,lanB, CavLl.e: dnd d) inshtution hurldhE foran environmentai (x)rporation/wastemanagement organization in the rrunicipality.

A loan of PhP2.2 rrillion was grarted for theprocurernent and cstabljshnent of facilities inco llcction with the wastc collection andprocessilrg activil.ies under tlle protect. Anadditional PhP800,000 ir equity was alsoprovided to serve as working capital.Likewise, a Brant of PhP200,000, which is also

converbible into additiondl eqdty, wdsapproved for capabfity and institution-Irdlding activities.

74) Guafantee Schefies and. Credit Lifles

Thr€e of th€ proiects approved durnrg theyear involved the setting up of gsarant€eschemes and cre&t 1i e6 for 6mall andcottage ent€rprises and cooperatives.

Ffst among these is th€ Guara[tee Furd forLana Redemption and Micro Enterpris€ withthe New Rulal Bark of San L€onardo inNueva Eciia as the int€rmediary. TheSuarantee firnd amounted to PhPl lllifton,

Another Guarartee Furd for Small andCottag€ Enterprfues was set-rp in Decembet1996 with the Bal*ers Association of thoPhilippines Credtt Guaranty Corporatiorl asthe intermediary. The guarantee fund ofPhP25 million traflslates into ar additioflalPhP75 mfion available for lending to 6malland cottage enterprises.

A credit line of PhP25 rnillion for rice tradilgby Mindanao cooperatives was ako approved

Laya Mananghaya Salgado & Co.cedined pubic accountants & manager.ent consuhams

Coqpers & Lybrand International

Meho NIaniia, PhilippinesMarch 10, 1997

3 / F C h e m p h I E u i l d i . g

Legaspi v r lage, [4akat ]

r " lcPo Bor No.34a3

ierepnone (63-? a1a 9492492 32.t144101a1

(53-2) a16 6595a\7 L426

RIPORT OF IIIDEPENDENI CERTIFIED PUBLIC ACCOLI}.ITANTS

The Board ofTrusteesFOL]}.IDATION FOR A SUSTAINABLE SOCIETY

(FSSI) INCORPOR{TED

We have audited the accompanying statement of financiai position of Foundahon for aSustainabie Society (FSSI) Incorporated (A Non-Stock, Non-pla|it Corporation) ̂ s afDecember 31, 1996 and the related statements of activttjes and cash flows for the year thenended. These flnancial statements are the responslbility of the Company,s management. Ourresponsibility is to express an opinjon on these financial statements based on our audit

We conducted our audit in accordance rvith generally accepted auditing standards.'fhose standards rcquire that we plan and perfoml th€ audit to obtain reasonable assurance aboutwhether the financial statements are ftee ofmatenal misstatement. An audit includes examrnlns.on a test basis, evidence supporting the amounts and dtsclosur€s in the financial statements. A]r:ludit also includcs assessing the accounting principles used and significant estimates maoe oymaDagement. as lvell as evaluating rhe oveell tlnancial statement presentation. We believe thatour tudrt provrdes e tca\unrble bts s for ou- oplnton.

In ou! opinion, lhe flnancial statcments .efeficd to above present iairly, in all materialrespects, the iinancial position of Foundation fbr a Sustainable Society (FSSI) Incorporated ANa -Stock, Non-PrcJit Coryora o ) as of Deccmber I l. 1996 and the results of its up€raLronsand its cash flows tbr the year then ended in conibmlity with generlily acceplcd accounnngpnncrples.

17* ,44"-"t9^ SJ.r"4 i U:'lTR No 8oo;49r9 uJanuar,v 14, 1997Makati Citv

STATEMENT OF F INANCIAL POSIT ION

ASSETS

Cash a1ld cash cquivaiefts (Nore 2)Loans ie.eivable Proje.ts (Note 3)A..r(€d intercst receivabl€Advances to office.s an.l employeesProjecl guarantees (Note 4)Prepanl cxpenses

TotalcuieutAssets

Funde Held h TNst/ Net (Notes 2 and

Property and Equiprent, Net (Notcs 2

5)

PhP13,932,494.00,1,519,891.00

1,75,961.00584,694.00

1,200,000.00175,600 00

20l588/640.00

473,541,3$,AO

9,648,856.00

PhP501818,859.00

LIABILIT1ES AND NET ASSETS

Cunetrt LiabilitiesA((r ) !nts pAyablc and accr !Rl expcns.sOther curfrrnt linbiliti(x;

PhP 1,172,181.00112,000.00

P1P 1,584,1E] 0r)

Me bers' contril)utioncrancl (Noro l )AccuDulakrd savings, End

PhP 85,500.00154,822,597.AA47,326,581.00

502,23,4,678.00

Dl , r r (nq Ara r (o n^

Sao NoLes to finan.ialSrarenrents.

THE FOUNDATION

,i.'[t+t:;**i."1*rffi''";.J, l;':ii:'::'*".",,,,n";;;:;J:il::,,""l,j,,i. l l l" i",, :."tin6 u rund rhdr wd5

r taierql . te1,r "- . . r . .Jlr,\ 'ne,,r bprw, ;) th" s*i..- ,", ,l l l l] i l

.,,r j i r . r ' . , ,nnL\ i , , f , , r rn .^r " " " , , , . " , " l ' l l lP . ". . ' r , ' I r u n i t , , . \ , . 1

TlruDsI r trp agr€Hnrenr, whk h . . - ."

i;',il;l 1l :, 9' d'';;';:';i:li:,';ll'i.'"t a d w r t h r h " .

;,1.1 l:li1':'.onl"tr'^: ;;;; :':il;"i:;'i'i-:,r ' " , ! " t or LhF dphr 's rdcc vqlup r r , -r r , . . / t in r , , ) , ,p rp j rh , . r ; re ;M: . , ' ro varu , , rr t1v . t5 t ,u22,s r7 r t , " , , " "_ , . . i , . .

.;lllj ;.,:l l:: :1.i. ;i ;.;,,.ifil.;i,11""ir;;.:1.- l.: l l j*,. "", D,.nt ,,rcanj;d t ions, ! , ,q, \ / , f orrptc s orudnrzat l , ,ns (pos)

,,l,l,ll.ilil,l.;:,"0 ',*',"'. ,, ',. ,.Th, f , ,LrrddLn,n t , , l i .vp{ r l r . r( ! . , , " , , - , .:..|]l i l: l_.*,. ",

_ Lh,. src,riri iq nt, " , r , , rvern,r r r t LJr rodl jn1, .or [es of h"" l

Ji:::,1;1,*::lrti; il:';; ;lfl;]i,,.,rh{ \ .1,,r'r,,, ;il. ii.,"l"'n',illl.ll.li.,"li,",ll-'l"' l' "'*"''''' "' 'r'"..]i"i'.,*,*l l:llill"' "'..i.';"il;.11" " " ""A\ d resorrre DrsrrtutroL) fur Ncr.) . ,_. , ,wh, , \h " . , . r i r u i ,o r . . , , . , . - , , : ' y ' " "J ro .., .r. t,, h. r"" odn,/FJ

".;;; : j l : l ' : ],..t'"., ",-, a,,,. "ia,",,i_,,. lii',lll,.llll''-'.",u"* to 1,.;"r,1,.,;";,1;,1"i*illl:.'o r t r ' a r o u , , J d r i , , , r ; s , , p , , , ; " ; r , . ' ; ; ; , , : . r ] , ,

the prjn.r'pjes of erceltpn.c. rransDar""

i:l"tll,:';:::;;;,t..i;:;t i::iill .,' ,ons"^ati ' ,n. ge dcr "";;;; : ": l. ' : l i""" 'd,\ prupD,nnr ,..1 *,_i"f l,,". " ",. ' ,. '

T H E F o u N D A T I o N , s V I s r o N , . .

ffjllt;::"ffiil"'cv rerDrs n,,ft c.

*F.. our ic Exrp(,werDent or M.-- i . -- ,r{uraj .rfid Urbcn p,,or

. Sustar ablc pr, ,ductord,onLror,,d b, .;,,;";:1.::::l: l "".::'"',"';;lr?.;:il ""; "'" "";;;r :;';'

. EconoDrrcdj jy vrdblo dnd c lv , ,^"^^- . -

ililll,lnli: lJ il;;;'J1i:l;lf",1,.;,:ili,"li ::illl"l"rr'{LjvtsrY rr) ih'(

Mrss loN . , .

".T.:: : :": : . : l*.""1 Jn\IItUtl(,n r^r lhe.4 ivu , e r r lpowcr |nar rL

o f o r r , ^ j -_ . r

ll,.liil;1.'j:l'' .."' 'n"" ,'."'i,,',in. ," ,,."

FSSI is co|rrftr'rt€cl b tlla -folowi1lg goals:

a) to t ' " arr a.rv, , " . -kcr and .1dv^",h ^.,trstness oriForhurjhe, ,t,", t,.,

" .l.il.\aro., , , br ins,ns ahou, ; i ; " " : :^: : , , . " 'empowerrne,rt of orga"r."a,, ,"-^""_l l

;i;1il:ll;;j;.,,"|. '","' ,,," ".u",, t""..

I

- l

!o be a source of financlal assistancc

0oans, guaranlees, eq(ity investnents andgrants) and busnress scNices (lrrarketass€ssnent, planning financialmanagenent, etc.), whenever Possible incolaboration wi*r othmstitutions, for orgailz€d margnlal.:omm|1nities and/or ihcir Partner NGOSNho undertake ecororlically viable andenvtr onlIlentally s01111d productiveenterprises that have thc potential to.onlpcic effe.tiv€1y in mainstreamPhilitpjne econo y,

to be a catalysl nr bdngnrg togeiher thercsorr.es of Philipphe developmentmsl i tut ions bolh government and pr ivatpse.tor, bwards the establ ishment of annrsti!utional funding mcrchanisn lhatrnvcsls in sustainablc productiolrcrllcrprises owncd and controlled byorganized margiral co fillnitics ior theiros n socjal and econo ic bcncl iLi

to bo a (r) l1lr ib11tor in the inrpLeDrentat ionof rho Phi l ippirc SovcrnLnent ' ! t ant i -

fr)vorty prograns, partic(l.uly thc Social

lo aintah thc origillal Philippine.urr{arcy valua of i is fund ir order k,cnsure tho long-torlrl existenre of theFo ndatn)n aDd the cont inui ty of i ts

b ilitiate and aht.irr a participatory

Flalrning process that activaly sceks lhcideas oI all its eDrployees and me bers nisettirlg tho directiorN aLid operations of dre

NOTES TO F INANCIAL STATEMENTS

l G E N E R A L

Thc Fo!ndation as a non stock, non-prolit corporation was registered with the Securitics 'nd

Exchangc Con'nission on SeptenLre. 6, 1995 1t5 prnnary purpose is !o cont'ibute' €ncourage/ 6s15t'

trovid.r lechni.al and mandgerial suFport to non governn€ntal organization (NGO)' people's

organizations ir sustaiiable pro.lu.tion.

On Septembd 6,1995, ihe Philippine Goveimlant, ihiolgh ihe D€Pa'tment of lil1dn'e' gianted

PhP +54 S million consisthg of 5% nr .ash and 95y" in govelmnent securitics to the Foxndatiofl

f,.o the p(xleds of d debt cancclla(ion unde. th€ Bilaieral Ag'eener! o! ihe Redt'Lion of

Eiternal D;( entered hto by th-" Govenlrenls of the PhiliPphes and Switz€rland on Augus( 11, 1995

The iund will be tLsed as g.ants o! L.ans to suppo.t Proj{:.ts oi NCOS, POs, coopdatives and simild'

private o.ganizatbns is slstahablc P.oduction which falls withnr thc 8lidehles set forLh in the

2 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S

Cnsn Eqriute Is

The Foundati(n conside$ highly liqoid dcbt hstrunerts PUrcha€ed with a nlalurity of Lhr-'e months

or loss lrott1 dakj ol acquisiiion to bc cash cquivalent€.

t \ av t vadEqu4"e t

Prcp€rty and equipnent afr) carried at $st lcss a(unNlaled dePreciaLiorl DePreciaijon i5

coi;putird or the straiShlLinc $0thod over |]ha estinated sefll lives of the assois The cosi of

mtrinLcnance afd rePair i3 charged to in.onre as nrcurr€d while significant fenewals and

bci ter c f ts dre caPi ta l iz€d.

F lr lfulti it1 lntsl

Flrncis held in tftsi are valred at the lower of.aggrcgare cost of Dlarker

3 . L O A N 5 R E C E I V A B L E - P R O J E C T S

Thesl l . .e loansgranicdtothefo l lowir rgcoope.a i ivesaldothe.orgal izat ionswi ih int f ias i raLes.anglngffoDr ll2% to 187" Per anuunrl

De.edbr, 11, 1996

PROJECT AMOUNT

PhP1,200.000924,291895,500600,000500,000346,10050,000

PhP4,519,891

ICenter fo. Alierfative Ruial Technology, Inc

Maligaya WoDen's Coopeiativ€. p u . u n 8 , ' A l u ' g c . R " s r d P d r 5 u g b u , " .Misanrjs Oriental-Cagayan de Oio Federatiotl

Kaanib Founddtion, Inc

Broad Initiaiives for Negros Development

4 . P R O J E C T G U A R A N T E E g .

Th€ loundation estabiished gueantee funds

fo owhg rural banks:io support small scale Proj€cts imPlemented by the

December 31, 1996

Sallba1i Co munity Orgdic Fertilizer 12%

La d Redemption 12%-15% 1,000,000.

PhP200,000

'The Urarantcelng portion of the delosib shall@aha Straiant€e fec oI 15%

lerannur whil€ tr^Ned Portion oi the guarantee rhali earn a timc delosit nrt€rest

raLe oI121l, Per dm!r'

5 , F U N D S H E L D I N T R U S T

Siartjng Jaruary 1996, the Fourdaiior aPPoinrcd fou| inv€stnent banks to act furd manager to ivest theFund in combinaiion of equities, securitiee and other instruments. A3 of D€c€mber 31, 1996, the fundconsist of the followingl

PhP1,200000

Dec€mber 31, 1996Trrstee Banks

Cityirust Banking CorporationMetro Bank and Trust CorpolalionAB Capital and Investment CorporationSo]id Bank Corporation 53,583,549

477,9't2,583

PhP729,159,794

172,647,587

ellowance for decline frarket vatue4,33'1,220

PhP473,581,363

6 . P R O P E R T Y A N D E Q U I P M E N T

This account cosist of the following:

December 31, 1996

Building

Transportation equiPmentFurniture and fixtures

PhP 2,900,0004,8'10,265

93A,a67855,075

Other DroDertv and equipmert 7.377

-

Accumulated dePreciation 432,237

PhP 9,64&856

7. PROJ ECT GRANTS

These repiesent graibs Prodd€d for deveioPmental activities s ch as lechnical assitancq e'ononic

.es6arch, feasibliiy st'rdles, Produci research and develoPm€nt, Pilot Ploduction' caPabilitv-building and

other activities The Foundation awarded granLs to the followinS:

December 31, 1996

Dat€ of GrantGraniee

Harnessing S€lf Reliant Initiatives and Knowledge, Inc

St. Augustine Sambales Area Management BankCoalition ofServices of the ElderlyPHILDHRRACauc!rs of D€velopment NGONetworksConvergenceKPPSKTagudin MultiPurPose CooPerativeManagenani and Organizational DeveloPnant

for Empowerment

Kapunugan Alang 6a Ka[swagan sa KasadPasugbuKaanib Foundation, IncCenter for Alternaiive Rural Technology, lnc. (CART)

HARIBON-FCNR

05,20.96a6.27,961D.27.9610.42.9609.18.9674,23.9610,25.9610.07.96

70.29.9611.29.9605.20.9608.27.9608.25.9648.27.96

PhP717,0AA807,800

6,00035,00050,00043,00010,00049,800

50,00050,000

282340319,000300,0002r9,254

PhPz,939,150

O T H E R M A T T E R 5

'l'nr Erenptiott Priailege

Th€ Foundation is a corporation not organized for profrt but oP€rated mamLy for- the prcmot'on 01 sdFL

*"itr- * -*"-p""j under sectioi ?6(g) of th€ iu' coa"' u" am€nded' and lherefoie' exenpl korr

the pavnent of income tax on incone rec€ived by it as such organizaton and thel€fore ne€d not file an

;;"#-;; .",".,. "."."inins

such income Furthermoi€' FssI is also exemPt fiom pdvment of donor s

i.* -*,.* "

t-t"" n4 (aj (3) of the Tar Code, as amended subject to the 'ondition that not flore than

30f of $e said girb shall be used bv ihe done€ FSSI for administrative purPoses

How€lei, it is subject to corresponding internal rev€nue tares imposed under the Naliona1 Int€ilal

n,,"""'" C.a" .. i," i""om€ deriv€d from anv ot ils prcp€'ties' real or Personal or anv aciivitv

condx.ted foi profit legardle$s ot thc disposition

lrohibitioll Agaittst Slnring h Caryantc Assets altd Effninss

Upon the dissolution ard winding up of the affaj's of the Forndation' no Pefson or Persons shall be

o, i tuoi . "n*" ' .

u ' , " o isk ibut ion o1any r :orporat€ assels Al l Dr 'mb€rs of tLre foundahon shal l b€

deoned io have expressly ̂ gre€d and consent€d that uPon 6uch dissrtution of ihe Foundalior' whether

'.l.lnt."y - i"*l"nt*y, tl'l(l assets of lhe Foundatioi' aftcr paying its liabilj!es' shall be co'lv€yed a'1cl

transfdre.l to afy qualified foundation ergagcd in activiti€s in the PhiliPPines s(bstantially sitnilar to

ir"o" .r U", rouna.iio'fs or to th€ RePublic of the PhiliPPincs or any of its aSenci€s' intNmcntalities of

political sul,divisions as thc Board ol Trustees ntay dccido

GENERAL ASSEMBLY MEMBERS

Patricia Ma. AranetaMait€t DioknoSalvacion BulataoFeliciano CarifroTeresita de Leon

Jocelyn CaboMardmo Kalaw, Jr.Sr. Rosann€ MalilinEvalyn UlsuaMarlene Ramirez

Marth TanchulingBarbara SalazarSen. Sanrarrirla RasulKarefi TaffadaMa. Aulora TolentrnoLourdes VlllaftrevaPaul WeiiersRemo GesuRomeo RoyandoyanMa. Cecilia Soriano

Josef Eisele

Association of FoundationsFreedom from Debl CoalitionEcumenical Develop:nent Alsociahon of the Philippin€sNational Council of Chlrch€s in the Philippin€sNational Confederation of CooperativesPartnership of Philippine Support Service AgenciesGreer'r ForumNational Sacretariat for Social ActionGrupo ng Lakas ng Kababaihan (G10)Philippine Partnership lor the Development oI HurnanResourceo in the Rural AreasNGO Canter for Cooperative Development

Magbasa Kita Founda(onWomens Action Network for Develop[rentPhilippine Bu3he6s for Social Progre8sNatlonal Council for Socidl DevelopmentSWISS CONTACTHELVETASCONVERCENCEDepartmont of FinanceSwiss EnlbaBoy