2013 annual report - east-west seed foundation€¦ · · 2015-05-252013 annual report . ......

2013 ANNUAL REPORT

2 Annual Report 2013 East-West Seed Foundation Inc.

CONTENTS

Our Mission, Our Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i

Message from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii

Year in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

East-West Seed Foundation: A Builder of Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1

Building Hope in the School: ―Oh My Gulay-Tanim sa Kinabukasan Program‖ . . . . . . . . . . . . 5

Events and Other Outreach Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19

Board of Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Executive Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27

Corporate Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

2013 Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Literature Cited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

i Annual Report 2013 East-West Seed Foundation Inc.

For the last three decades,

East-West Seed Phi l ippines has

remained true to i ts miss ion of

providing innovative products and

services that help increase the income

of farmers.

Through the East-West Seed

Foundation, East-West Seed Phi l ippines

bui lds on i ts role as the farmer‘s

champion, to become a bui lder of

communities .

Our Vision

EWSF envisions a future where every Filipino

enjoys proper nutrition through improved

vegetable consumption and where vegetable

farmers are economically and socially

empowered to provide themselves and their

families a better quality of life.

Our Mission

By collaborating with selected partners, EWSF is

committed to realize its Vision through:

Educational programs that instill in the youth

the value of growing and eating vegetables for

nutrition and economic purposes

Innovative and repl icable advisory

services that impact positively on the

productivity and family income of vegetable

farmers

Policy advocacy and social marketing

campaigns that influence behavioral change

among Filipinos stimulating increased vegetable

consumption and healthy lifestyle

Collaborative partnerships with like-minded

organizations to develop and scale-up

development approaches in support of EWSF‘s

Vision

ii Annual Report 2013 East-West Seed Foundation Inc.

MESSAGE FROM THE PRESIDENT

2013 was a successful and fulfilling year for the East-West Seed Foundation (EWSF). Notwithstanding the

natural tragedies that lashed the country, the Foundation was still able to accomplish what it has set to do.

Its flagship school vegetable gardening program, Tanim sa Kinabukasan (TSK), saw implementation in

several public schools nationwide. Kids in the elementary levels were taught the technology of vegetable

growing and were won over to eating their greens. The pages that follow spell out in more detail the

Foundation‘s accomplishments and activities the past year.

From a simple aim of promoting vegetable consumption among children, the Foundation‘s core program

has become a collaborative effort of parents, schools, local government units (LGU), the Department of

Education, corporate donors, OMG! Foundation, Inc., and EWSF. This should be a good template of

successful partnership building that other organizations aspiring to support the nation‘s growth can

follow.

The Foundation‘s Post-Yolanda Sustainable Livelihoods Recovery Initiative deserves highlight, as this

model for rehabilitation stood out from the conventional relief operations and reconstruction efforts which

normally take six months to a year before results are seen. EWSF‘s innovative approach provided an

immediate source of nutrition within 30 days and helped restore the livelihood of smallholder farmers in

100 days. Some 739 farmers from 15 municipalities in Leyte and Samar received farming kits with short-

gestating vegetable crops, fertilizers, and implements. The harvests provided fresh vegetables for

household consumption, as well as a good means of income from the surplus production which

commanded good farm gate prices.

―The Foundation is grateful to all its

supporters who have devoted their

valuable time and resources to help fulfill

its mission.‖

iii Annual Report 2013 East-West Seed Foundation Inc.

In 2014, the Foundation has its sight set to implement the OMG!-TSK Program in more schools, and

thereafter grow this number steadily. The Post-Yolanda Sustainable Livelihoods Recovery Initiative is also

high in its agenda, with plans to scale it up to include 10,000 farming families in the next 36 months.

The Foundation is grateful to all its supporters, especially the Department of Education, LGUs, host

communities, OMG! Foundation, and our corporate donors—BDO Foundation, GT Metro Foundation,

Global Business Power Corp., Infant and Pediatric Nutrition Association of the Philippines, Zuellig Family

Foundation, and Novartis Healthcare Philippines—who have devoted their valuable time and resources to

help fulfill its mission.

Recognizing that the East-West Seed Foundation cannot achieve its goals on its own, we call upon other

groups that share our aspirations for support on the medium and long term sustainability of our efforts.

Juan B. Santos

President

iv Annual Report 2013 East-West Seed Foundation Inc.

YEAR IN REVIEW

TANIM SA KINABUKASAN: 2013 PROGRAM HIGHLIGHTS

The combat against the worldwide prevalence of malnutrition, characterized by inadequate and excess

intake of nutrients, has a long history. Today, this widespread health crisis remains a serious concern

worldwide especially on developing countries, including the Philippines. In the country, increased

prevalence of malnutrition, which can be attributed to the country‘s low vegetable and fruit consumption,

mainly affects school-aged children.

Since 2012, East-West Seed Foundation has continued to work with the Department of Education and

nongovernmental organizations to help the nation in combating malnutrition through the Tanim sa

Kinabukasan (TSK) Program, East-West Seed Foundation‘s flagship program. The TSK Program is leading

the charge against malnutrition by increasing community awareness on the values of growing and eating

vegetables and at the same time creating healthier environments, particularly public elementary schools,

where healthy eating is accessible and encouraged.

2013 has been a great year as it opens wide opportunity for the Foundation to grow as a corporate

foundation as well as to strengthen its support to one of its primary stakeholders, the Filipino school-aged

children. In 2013, the TSK Program, in close collaboration with the Oh My Gulay! Program – a nutrition

campaign of Oh My Gulay! Foundation, successfully received new commitments from 6 private donor

partners who whole-heartedly braces the program‘s noble purpose. Through its partners‘ commitments,

the OMG!-TSK Program was able to mobilize the implementation of vegetable gardening into its

identified beneficiary schools.

Through the intervention of OMG!-TSK Program, 43 public elementary schools became healthier places to

work and learn; 2,580 school children and 86 supervising teachers gained technical knowledge from basic

vegetable production and school garden management training; 1,000 community partners (i.e. parents,

teachers, & barangay officials) have gained awareness on the benefits of growing and eating vegetables.

Since the inception of the Program, 93 percent of the 1135 school children respondents have become

more familiar with the common vegetables while 87 percent of them have improved acceptance towards

eating vegetables. Apart from the impalpable benefits from the Program, the beneficiary schools also

gained tangible good reaps from the vegetable garden by adopting new technologies and good

vegetable growing practices. As the program closes, harvested produce worth P102 thousand was

obtained from the top 10 crops grown in the vegetable gardens of all the 43 beneficiary schools.

v Annual Report 2013 East-West Seed Foundation Inc.

A NEW MILESTONE AS A CORPORATE FOUNDATION

Since 2012, East-West Seed Foundation actively participated in the annual CSR Expo initiated by the

League of Corporate Foundations (LCF). In August 2013, the Foundation was able to achieve an

important milestone as it joined the LCF community which seeks to contribute to sustainable development

in the country by promoting and enhancing the effective practice of corporate social responsibility among

its participating members and the larger business community.

POST-YOLANDA SUSTAINABLE LIVELIHOODS RECOVERY INITIATIVE

In the latter part of 2013, the whole nation was deeply saddened as Typhoon Yolanda struck and wreaked

havoc in the Philippines. Typhoon Yolanda, the most powerful typhoon to make landfall in recorded

history, left trails of losses at the eastern part of Visayas making millions of its people lose access to food

security, proper nutrition, shelter and settlements, and livelihood.

As an immediate response to the needs of heavily affected families, the Foundation innovatively mobilized

a response relief through the Post-Yolanda Sustainable Livelihoods Recovery Initiative and extended

support particularly to the farming communities of Samar and Leyte. The Initiative seeks to provide the

farming households source of safe and nutritious food within 30 days and restore their livelihood in 100

days.

As of December 2013, through the Initiative‘s implementing body – the Technology Transfer Department,

the Foundation was able to reach out to 739 farming households by distributing start-up farming kits

which enable them to gain access to food and nutrition. The farmer-beneficiaries were provided with

capacity building and market linkages supports which allow them to market their products while they

continue to produce in quantity and in quality. Through the Initiative, the Foundation allows the typhoon-

affected farming communities to increase their harvest, generate extra income, support their families, and

improve and uplift their communities.


THE CONTEXT

Under-nutrition in the Philippines remains a serious

problem. According to the latest studies presented

by the Food and Nutrition Research Institute (FNRI)

at the recent National Nutrition Summit, almost

one in every three Filipino children aged six to ten

years old are underweight and under-height for

their age (FNRI, 2011). Another study conducted

by the United Nations Children‘s Fund (UNICEF)

reveals that approximately six million Filipino

children are malnourished (UNICEF, 2008).

Available data also show large numbers of Filipino

children are undernourished: 3.6 million of children

aged 0-59 months are underweight; and 4 million

are stunted (UNICEF, 2008).

This malnutrition makes the Filipino children the

third poorest and most disadvantaged sector in

the Philippines, next to fishermen and farmers. The

Department of Education (DepEd) revealed that

562,262 pupils in kindergarten and elementary

levels currently enrolled in public schools are

considered ―severely wasted.‖

The National Nutrition Survey of 2008 showed that

children below five years old who are underweight

are at 26 percent while children who are below the

average height-to-age ratio are at 27.9 percent.

Families who do not get the 100 percent dietary

energy requirement even increased from 57

percent of the population in 2003 to 66.9 percent

in 2008, the survey said (FNRI, 2008).

Malnutrition has now become a global concern.

This does not exclude anybody from making steps

in combating hunger. No action is too small in

reducing the prevalence of such situation. All

development actors – government, non-

government organizations (NGOs), civil society

organization (CSOs), people‘s organizations (POs),

international players, media, etc. – must align their

efforts in stitching up the systems in order to

address the growing numbers of children who are

undernourished.

EAST-WEST SEED FOUNDATION:

A BUILDER OF COMMUNITIES


THE PRINCIPLE

According to the government National Nutrition

Survey in 2008, chronic malnutrition (a shortage of

intake of vitamins and nutrients) among children is

directly related to the country‘s low vegetable and

fruit consumption (FNRI, 2008).

An estimated 29 percent of children under five

years old and 33 percent of children younger than

10 years were too short for their age groups,

which is one measurement of chronic malnutrition

(FNRI, 2008).

The Philippines‘ produce consumption of 60

kilograms per person per year in 2007 was one of

the lowest in Asia, according to the World Health

Organization (WHO) (WHO, 2011). WHO

recommends a daily intake of 400 grams of

vegetables and fruits per person (150 kilograms

per year) to help prevent vitamin and mineral

deficiencies as well as heart disease, some cancers,

diabetes and obesity.

Increasing produce consumption is the key to

reducing the malnutrition-related illnesses that

affect some 200 million children.

It‘s in this light that Tanim sa Kinabukasan (TSK)

was conceived. It‘s an advocacy project that is

aimed at teaching school kids improved

techniques of planting vegetables and eventually

influence them to love eating the same. It also

aims to encourage the whole community (parents,

teachers, LGUs, and other stakeholders) to learn

and appreciate the value of growing and eating

vegetables thereby promoting food security, good

nutrition, clean and green environment and

creating livelihood opportunities.

The program is set to intervene in public schools

where high incidences of ‗severely wasted‘ pupils

are observed. This will serve as an entry point in

transforming the whole community in engaging

into a healthy and vibrant living. The program

intended to create awareness at the local level of

the nutritive value one can get out of consuming

vegetables.


THE BENEFICIARY

Pupils from public schools are the primary

beneficiary of the foundation‘s core program.

Schools were selected based on the list provided

by Food and Nutrition Research Institute (FNRI) of

the Department of Science and Technology

(DOST). These schools were considered as

‗nutritionally-challenged‘ schools where high

incidence of ‗severely wasted‘ pupils is observed.

Alongside with pupils, EPP (Edukasyon Pantahanan

at Pangkabuhayan) Teachers, and School

Administrator/Principal deliberately served as

beneficiaries as well.

On the other hand, members of the community –

PTCA (Parent-Teacher Community Association),

local officials both in barangay and municipal

levels and other enthusiasts within the locality are

considered as indirect beneficiary.

At the onset, the 43 schools revealed the percent

distribution of the nutritional indicators of pupils

directly engaged in Oh My Gulay! – Tanim sa

Kinabukasan Program (see Figure 1). This greatly

facilitates the implementing team in aligning

related activities within the context of the program.

Figure 1. Percent distribution of the nutritional

indicators.


WHERE WE ARE

Cognizant to the goals of increasing vegetable

consumption and inculcating healthy eating habits

in the young minds of public elementary school

pupils, the Foundation together with its partner

organizations strategically partnered with schools

in Bulacan (1 school), Tarlac (10 schools), National

Capital Region (10 schools), Laguna (2 schools),

Batangas (4 schools), Sorsogon (5 schools), Ilo-Ilo

Province (5 schools), and Cebu Province (6

schools) (see Figure 2).

Figure 2. Distribution of adopted schools.


PARTNERSHIP BUILDING. Guided by its

Mission of instilling in the youth the value of

growing and eating vegetables for nutrition and

economic purposes, East-West Seed Foundation

partnered with Oh My Gulay! Foundation,

Department of Education (DepEd), and other

organizations with similar and/or complimenting

programs (i.e. BDO Foundation, GT Metro

Foundation, Global Business Power Corp., Infant

and Pediatric Nutrition Association of the

Philippines (IPNAP), Zuellig Family Foundation

(ZFF) and Novartis Healthcare Philippines.

Driven by the common goal of alleviating

malnutrition, collective efforts were formed

through multi-sectoral partnership for the

improvement of school gardens. The schools will

be the ground in stimulating pupils and other

individuals‘ interest in growing the vitamin and

mineral-rich vegetable.

BUILDING HOPE IN THE SCHOOL:

“OH MY GULAY-TANIM SA KINABUKASAN PROGRAM”


East-West Seed Foundation’s Program Partners

Donor partners actively participates in the various activities of the OMG!-TSK Program. Clockwise from top left: Community Day

activity at Ticud ES with the staff of Global Business Power Corp. Community Day activity at Malibo Matanda ES with Novartis

Healthcare Phils. Program Launching at Concepcion West CS with the volunteers of BDO Foundation. Community Day activity at

La Paz ES with IPNAP Executive Director Alex Castro and OMG Executive Director Josie Paule.

RESOURCE BUILD-UP AND MOBILIZATION.

In 2013, the Foundation were able to mobilize

resources of about Php 5,752,920.00 from partner

organizations - BDO Foundation (Php

1,200,000.00), GT Metro Foundation and Global

Business Power Corp. (Php 935,000.00), IPNAP

(Php 725,000.00), Novartis Healthcare Philippines,

Inc (Php 100,000.00), Zuellig Family Foundation

(Php 100,000.00), East-West Seed Company, Inc.

(Php 1,842,120) and OMG! Foundation Inc. (Php

850,800.00) sponsoring a total of 43 schools

distributed in Luzon – NCR, Central Luzon, South

Luzon – and Visayas – Toledo City, Cebu City and

Ilo-Ilo Province (see Table 1 for the list of donors,

donations & adopted Schools).


Table 1. List of donors, donations and their adopted schools.

Donor Donations (Php) Adopted Schools

BDO Foundation 1,200,000.00 (1) Almanza Elementary School, Las Pinas City

(2) Isabelo Delos Reyes, Tondo, Manila

(3) Eulogio Rodriguez ES, Mandaluyong City

(4) Kapitbahayan ES, Navotas City

(5) Nasugbu West Central School,

Nasugbu, Batangas

(6) Balayan West Central School,

Balayan Batangas

(7) Bauan East Central School,

Bauan, Batangas

(8) San Jose ES, Concepcion, Tarlac

(9) Concepcion South CES,

Concepcion, Tarlac

(10) Concepcion West Central School,

Concepcion, Tarlac

(11) Pardo ES, Cenbu City

(12) Lahug ES, Cebu City

(13) Zapatera ES, Cebu City

(14) Rizal ES, Ilo-Ilo City

(15) Lapaz ES, Ilo-Ilo City

GT Metro Foundation Inc. &

Global Business Power

Corporation

935,000.00 (1) Almendras ES, Concepcion, Tarlac

(2) Concepcion North Central School,

Concepcion, Tarlac

(3) Mayantoc Central School, Mayantoc,

Tarlac

(4) San Bartolome ES, Mayantoc, Tarlac

(5) Surgui ES, Camiling, Tarlac

(6) Sangi ES, Toledo City


(7) South City Central,Toledo City

(8) Talavera ES, Toledo City

(9) N.J. Ingore ES, Ilo-Ilo City

(10) Ticud ES, Ilo-Ilo City

(11) Balabago ES, Jaro, Ilo-Ilo

Infant & Pediatric Nutrition

Association of the Philippines

(IPNAP)

725,000.00 (1) La Paz ES, Makati City

(2) Aguinaldo ES, Quezon City

(3) Barangka ES, Marikina City

(4) E.Delos Santos ES, Malabon City

(5) Moonwalk ES, Las Pinas City

(6) Canlalay ES, Binan, Laguna

(7) Pulo ES, Cabuyao, Laguna

(8) R. Venturanza ES, Lemery, Batangas

Zuellig Family Foundation

(ZFF) 100,000.00 (1) Abucay ES, Pilar, Sorsogon

Novartis Healthcare

Philippines, Inc. 100,000.00 (1) Malibo Matanda ES, Pandi, Bulacan

East-West Seed Company,

Inc.

1,842,120.00 (1) Camiling Central School, Camiling, Tarlac

(2) Malacampa ES, Camiling, Tarlac

(3) Catmon IS, Malabon City

(4) Lourdes ES, Pilar Sorsogon

(5) Pilar II Central School, Pilar, Sorsogon

(6) Salvacion ES, Pilar Sorsogon

(7) San Jose ES, Pilar Sorsogon


Top: Signing of Letter of Understanding at Almendras ES during the celebration of Nutrition Month participated by EWSF Project

Coordinator Adriel Daligdig; GT Metro Foundation Program Officer Liselle Flipphi; and other distinguished stakeholders. Bottom

left: EWSF Project Coordinator Fritz Collantes signing the Letter of Understanding at San Bartolome ES together with the school

partners. Bottom right: EWSF Project Coordinator Roselyn Bumanlag taking the lead in signing the Letter of Understanding at

Epifanio delos Santos ES.

BUILDING-UP AND STRENGTHENING

COMMITMENT. Part of strengthening the

partnership at the local level is binding the

agreement into a ―letter of understanding‖ (LOU),

otherwise known as ‗Localized MOA‘. The

document contains the specific roles and tasks of

each stakeholder involved in the implementation.

This plays a vital role as well especially in the issue

of sustainability. Through the LOU, the

stakeholders' hopes to ensure the continuity of the

project even after the support of external actors

have been pulled-out.

All 43 school heads, partner barangays and LGUs

signed their commitment of sustaining this

worthwhile endeavor and making a significant

change in the lives of the future generation – the

children of today.


Through lecture discussion and hands-on activities, pupils from public elementary schools learned about the basics and improved

techniques of growing vegetables, from soil preparation to harvesting. Top left: Project Coordinator Shiela Anunciado holding a

lively lecture discussion at Pulo ES. Right and bottom left: Establishment of garden at Isabelo delos Reyes ES actively participated

by Grades V & VI pupils.

KNOW-HOW AND SKILLS BUILD-UP.

One significant aspect of the program is pupils‘

engagement through a series of lecture

discussions of the customized modules to meet

the learning needs of Grade V & VI pupils in the

area of growing vegetables, i.e. growing various

crops, knowing the nutritive value of vegetables,

and taking care of the garden.

The methods by which pupils are being engaged

are done through theory build-up and practice of

theory or the demonstration part. The experiential

learning is intentionally designed to ease pupils‘

learning process by allowing them to see and

practice the actual work required in vegetable

production.

In 2013, about 3,991 pupils have been directly

involved in Oh My Gulay! Program while about

1,000 individuals – parents, teachers, barangay

officials and representative from LGUs partake in

this noble undertaking.


Vegetable Awareness

Part of truly engaging the pupils in the program is

determining their level of awareness on the

common vegetables. Leveling of awareness was

done during the pre and post-implementation

phase. Clustered in donor basis, results showed a

range of 3 to 9 percent increase on the student‘s

familiarity with common vegetables (see Table 2).

IPNAP sponsored schools gained the highest

increase in the students‘ level of awareness at 9

percent which can be attributed to the series of

lecture discussions and hands-on sessions. In

general, after the intervention OMG!-TSK Program,

5 percent of the pupil respondents became more

familiar with the vegetables introduced by the

Program as shown in Figure 3.

Figure 3. Vegetable awareness of students before and after inception of the Program.

-2%

18%

38%

58%

78%

98%

IPNAP BDO EWSF GTMF ZFF GBPC NOVARTIS All Schools

88%85%

81%

89%

94%

82%

98%

88%

98%

93%88%

95%99%

85%

96%93%

9%7% 6% 6% 5%

3% -2%5%

Pre-survey (%) Post-survey (%) % INCREASE


Table 2. Vegetable awareness of students before and after inception of the Program.

Donor Partners IPNAP GTMF ZFF GBPC EWSF BDO FOUNDATION NOVARTIS All Schools

Respondents 257 129 33 61 204 418 33 1135

Vegetable Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Ampalaya 97% 99% 2% 92% 95% 3% 97% 100% 3% 91% 93% 3% 94% 96% 3% 90% 96% 6% 100% 100% 0% 94% 97% 3%

Kalabasa 97% 99% 1% 93% 98% 5% 97% 100% 3% 95% 90% -5% 99% 99% 0% 94% 98% 4% 100% 100% 0% 97% 98% 1%

Kamatis 97% 99% 2% 93% 96% 3% 97% 100% 3% 90% 96% 6% 99% 100% 1% 94% 97% 3% 100% 100% 0% 96% 98% 2%

Kangkong 91% 99% 8% 88% 96% 8% 97% 100% 3% 73% 83% 11% 97% 99% 2% 88% 96% 8% 100% 100% 0% 91% 96% 5%

Litsugaas 54% 89% 35% 60% 83% 23% 97% 100% 3% 65% 77% 12% 55% 71% 16% 52% 68% 16% 82% 55% -27% 66% 78% 12%

Pakwan 97% 99% 3% 95% 97% 1% 79% 85% 6% 87% 85% -3% 99% 99% 0% 97% 99% 1% 100% 100% 0% 93% 95% 2%

Papaya 95% 99% 4% 94% 98% 3% 94% 100% 6% 84% 76% -8% 98% 100% 2% 92% 97% 5% 100% 100% 0% 94% 96% 2%

Patola 77% 97% 20% 86% 94% 8% 91% 100% 9% 75% 76% 2% 94% 97% 3% 72% 87% 15% 97% 97% 0% 84% 93% 9%

Pechay 92% 98% 6% 94% 95% 1% 97% 100% 3% 68% 85% 17% 98% 99% 0% 90% 95% 4% 100% 100% 0% 91% 96% 5%

Pipino 81% 97% 16% 90% 97% 7% 85% 100% 15% 86% 84% -2% 88% 93% 5% 78% 92% 15% 91% 94% 3% 85% 94% 9%

Repolyo 90% 98% 8% 91% 95% 4% 94% 100% 6% 82% 85% 3% 94% 98% 3% 90% 93% 3% 97% 100% 3% 91% 95% 4%

Sitaw 92% 99% 7% 91% 95% 4% 97% 100% 3% 78% 76% -1% 96% 97% 1% 86% 93% 7% 100% 100% 0% 91% 94% 3%

Talong 98% 100% 1% 92% 97% 5% 97% 100% 3% 95% 96% 1% 96% 100% 3% 96% 98% 3% 100% 100% 0% 96% 99% 3%

Upo 77% 97% 20% 88% 93% 5% 97% 100% 3% 78% 84% 5% 97% 99% 2% 75% 88% 13% 100% 100% 0% 87% 94% 7%

Average 88% 98% 9% 89% 95% 6% 94% 99% 5% 82% 85% 3% 81% 88% 6% 85% 93% 7% 98% 96% -2% 88% 93% 5%


ZFF GTMF NOVARTIS EWSF BDO IPNAP GBPC All Schools

80% 82% 80%82%

76% 76%79%

86%

92% 93%90% 88%

82%79%

82%

92%

12% 11% 10%6% 5%

3% 2%7%

Pre-survey (%) Post-survey (%) % Increase

Vegetable Acceptance

Closely related to vegetable awareness is the

student‘s willingness to eat vegetables. Being

aware is not sufficient enough if

transformation on eating habits and healthy

lifestyle are to be considered. The program

would want to determine the reason for liking

such vegetables and for not liking the others.

While reason greatly varies from pupil to pupil,

the program decided to measure pupils‘

acceptance on the common vegetables.

Results showed a range of increase from 2 to

12 percent. Low acceptance of pupil

respondents in IPNAP and Global Business

Power Corporation-sponsored schools can be

attributed to the location of the adopted

schools. Most of the adopted schools of the

said donor partners were located in urban

areas like NCR and Ilo-ilo City (see Figure 4).

In general, willingness of the participating students

to eat vegetables increased at 7 percent since the

inception of the OMG!-TSK Program as shown in

Figure 4.

Figure 4: Increase in vegetable acceptance of students.


Table 3. Willingness of students to eat vegetables before and after inception of the Program.

Donor Partner IPNAP GTMF ZFF GBPC EWSF BDO FOUNDATION NOVARTIS

All Schools

Respondents 257 129 33 61 204 418 33 1135

Vegetable Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post

(%)

%

Incr.

Pre

(%)

Post (%) %

Incr.

Ampalaya 60% 56% -4% 72% 91% 16% 61% 91% 30% 88% 84% -4% 65% 75% 10% 55% 59% 4% 61% 88% 27% 66% 78% 11%

Kalabasa 93% 93% 0% 90% 93% 3% 97% 100% 3% 95% 86% -9% 95% 96% 1% 87% 97% 10% 94% 100% 6% 93% 95% 2%

Kamatis 84% 85% 1% 86% 98% 13% 91% 100% 9% 88% 90% 2% 89% 95% 6% 83% 87% 4% 91% 100% 9% 87% 94% 7%

Kangkong 85% 87% 2% 72% 94% 21% 100% 100% 0% 60% 78% 18% 88% 94% 7% 83% 86% 3% 97% 100% 3% 84% 91% 7%

Litsugaas 42% 54% 12% 47% 70% 20% 4% 25% 21% 66% 69% 3% 37% 47% 9% 55% 63% 8% 23% 4% -18% 39% 47% 8%

Pakwan 96% 95% -1% 93% 94% 1% 82% 100% 18% 85% 80% -6% 95% 97% 4% 94% 96% 2% 85% 100% 15% 90% 95% 5%

Papaya 79% 82% 3% 93% 96% 3% 97% 100% 3% 83% 72% -11% 92% 99% 7% 87% 94% 8% 97% 97% 0% 90% 92% 2%

Patola 63% 68% 5% 77% 89% 10% 77% 97% 20% 72% 69% -3% 78% 78% -1% 60% 65% 5% 70% 94% 24% 71% 80% 9%

Pechay 84% 84% 0% 90% 97% 6% 97% 100% 3% 67% 77% 9% 91% 96% 5% 85% 86% -1% 97% 100% 3% 87% 91% 4%

Pipino 65% 71% 6% 75% 87% 7% 66% 97% 31% 84% 76% -8% 79% 85% 6% 71% 76% 5% 72% 97% 25% 73% 84% 11%

Repolyo 83% 84% 1% 89% 96% 8% 81% 88% 7% 81% 79% -2% 89% 94% 5% 86% 87% 1% 94% 97% 3% 86% 89% 3%

Sitaw 79% 85% 6% 88% 92% 2% 94% 100% 6% 77% 70% -7% 83% 90% 7% 76% 84% 8% 84% 100% 16% 83% 89% 6%

Talong 77% 83% 6% 87% 99% 10% 84% 100% 16% 95% 91% -4% 83% 93% 9% 83% 87% 4% 85% 97% 12% 85% 93% 8%

Upo 70% 74% 4% 80% 90% 10% 72% 91% 19% 76% 73% -3% 75% 89% 14% 66% 75% 10% 72% 85% 13% 73% 82% 11%

Average 76% 79% 3% 82% 93% 11% 80% 92% 12% 79% 82% 2% 82% 88% 6% 76% 82% 5% 80% 90% 10% 79% 87% 8%


The Fruit ful Harvest

It was during the peak of harvest when the

culminating activity of the program commonly

known as ‗Community Day‘ is being held. The

highlight event is set in festive mood with

various activities like harvesting of vegetables,

cooking festival, art-making contest and

showcasing pupils‘ talents.

In 2013, the program was able to hold 20

Community Day activities, engaging 37 schools to

actively participate in the activities lined-up in the

program. The steering committee and other local

partners – representative from LGU, & barangay –

graced the occasion.

For the record, the program was able to utilize 2.1

hectares in all 43 partner-schools. Planted with

various crops – eggplant, tomato, ampalaya,

squash, string beans and others, the implementing

team was able to gather significant harvest as

shown in the Figure 5. Translated in peso value,

Table 4 shows the corresponding value for the top

10 vegetables in terms of yield.

Indeed, partners can testify that given the right

assistance and resources, a school-based

vegetable garden program could be an excellent

source of not only vitamin and mineral-rich

vegetables but also a better source of livelihood

for the whole community.


Table 4. Peso value of vegetables produced in school garden.

Figure 5. Top 10 vegetables with excellent yield (kg).

Crops Selling Price/kg Quantity (kg) Total (Php)

Bottle Gourd (Upo) 10 757.40 7,574.00

Eggplant (Talong) 25 728.00 18,200.00

Tomato (Kamatis) 30 415.60 12,468.00

Cucumber (Pipino) 20 211.80 4,236.00

Bitter Gourd (Ampalaya) 40 210.40 8,416.00

Ridge Gourd (Patola) 25 198.85 4,971.25

Squash (Kalabasa) 10 194.75 1,947.50

Pechay 20 148.60 2,972.00

Hot Pepper (Siling Labuyo) 250 114.20 28,550.00

Hot Pepper (Sili Panigang) 150 98.07 14,710.50

Total = Php 102,056.75

757.4728

415.6

211.8 210.4 198.85 194.75

148.6114.2 98.07


Beneficiaries’ Program Satisfaction

Part of the program‘s exit conference is collecting

feedbacks from the beneficiaries on how well the

program delivers its critical success factors and

dimensions. Respondents, which were comprised

of school administrator, EPP coordinator, pupils,

and other stakeholders who actively participated in

the program, were asked to rate the program in

five (5) categories: staff support, methods and

techniques used, training relevancy, materials and

inputs sufficiency and content appropriateness.

During the exit conference, the beneficiaries also

provided their overall rating on how well the

program performs.

Ratings for the following categories are as follows:

1=needs improvement, 2=fair, 3=good, 4=very

good and 5= excellent.

From among the categories, training relevancy

obtained the highest score with a rating of 4.6

percent; this was followed by staff support and

content appropriateness both with 4.5 percent

rating as shown in Figure 6.

Generally, all of the program categories got a ―very

good‖ rating with an average of 4.5 percent as

shown in Figure 7.

Figure 6. Beneficiaries‘ feedback result on each program category.

Staff support Methods & Techniques Used

Training Relevancy Materials & Input Sufficiency

Content Appropriateness

4.5

4.4

4.6

4.4

4.5


Figure 7. Beneficiaries‘ overall rating of the program clustered per donor.

BDO Foundation

GT Metro Foundation

Inc.

Global Business Power

IPNAP Novartis Healthcare

Phils.

Zuellig Family

Foundation

East West Seed

Foundation

4.4

4.6

4.5

4.6 4.6

4.5 4.5


LCF MEMBERSHIP

In 2013, East-West Seed Foundation was officially

listed as the 77th member of the League of

Corporate Foundations (LCF). LCF is a network of

over 80 operating and grant-making corporate

foundations and corporations that promotes and

enhances the strategic practice of Corporate Social

Responsibility among its members and the larger

business community towards sustained national

development.

In support to LCF, the Foundation participated in

the annual CSR Expo held last July 5-6, 2013 – an

annual event of LCF to support the CSR program

of its members. This year‘s theme ―Isang Bansa,

Isang Bukas, Sabay sa Pag-unlad‖ aims to refocus

efforts in making a genuine impact in contributing

to more inclusive economic growth. It encourages

member foundations to go beyond margins,

transform the lives of marginalized and excluded

communities, and commit to bring CSR where it is

needed the most.

East-West Seed Foundation (EWSF) joined the community of the League of Corporate Foundations on August 29, 2013.

From left: LCF Secretary: Monette Iturralde-Hamlin; LCF Former Vice Chair: Natalie Christine Jorge; LCF Vice Chair: Camille

Buenaventura EWSF Exec. Director: Dr. Roberto Acosta; EWSF Program Officers: Joyce Gaviola & Ivy De Guzman; EWSF Finance &

Administrative Assistant: Ruby Mandac.

EVENTS AND OTHER OUTREACH ACTIVITIES


East-West Seed Foundation took part in the largest and longest running CSR event in the country initiated by the LCF

community last July 04-05, 2013 at the SMX Convention Centre.


OH MY GULAY! “GREEN LUNCH” ACTIVITY

In support to Oh My Gulay! (OMG!) Program, East-

West Seed Foundation participated in the ―Green

Lunch‖ event hosted by OMG! Foundation Inc. last

August 27, 2013. It‘s a full house event where

current donors, partners and would-be donors

gathered together to witness OMG!‘s milestones

and determine ways and means by which the

program will move forward or accelerate to a

more challenging level for the benefit of the

Filipino children.

From left: EWSF Executive Director: Dr. Robert Acosta; Program Officer Ivy De Guzman; Finance and Administrative Assistant:

Ruby Mandac; Program Officer: Joyce Gaviola during the OMG! Green Lunch held on the 27th

of August 2013 at Arakama

Restaurant.


EMPOWERING SCHOOL CHILDREN FOR A HEALTHIER GENERATION

Schools are considered as powerful places to

shape the education, well-being and health of

its students as well as its people. The birth of

the Tanim sa Kinabukasan Prorgam has paved

the way for the Foundation to engage with and

empower the schools as well as its neighboring

community to lead a healthy lifestyle through

increased vegetable consumption.

As the TSK Program closes its year, it has

continued to enhance the capacity and

encourage the students to eat more vegetables

through its culminating activity, dubbed as the

‗Community Day‘. During the TSK Program‘s

Community Day activity, the beneficiary schools

recognize the efforts of the individuals who

helped them in realizing the purpose of the

Program. One of its highlight activities is a

cooking competition wherein the participants

(students, parents and teachers) showcased

innovative ways of cooking vegetables that are

appealing to the palate of students. Through

this competition, the TSK Program encourages

the students and the broader community to eat

more vegetables and helps the new generation

become leaders and advocates for healthy

changes.


SPREADING THE SEEDS OF HOPE:

POST-YOLANDA SUSTAINABLE LIVELIHOODS RECOVERY INITIATIVE

On November 8, 2013, the central part of the

country experienced the apocalyptic effect of

Super Typhoon Yolanda, the most powerful

typhoon ever recorded in history. According to the

National Disaster Risk Reduction and Management

Council (NDRRMC), as of January 2014 there are

about 16 million people that need assistance and

support as they rise up from the massive

devastation caused by Typhoon Yolanda

(NDRRMC, 2014).

While the Central Philippines was continuously

being poured in with their immediate needs such

as food, nutrition, and shelter from different

government agencies, private institutions, and

international community, East-West Seed

Foundation together with its mother company,

East-West Seed Company, took an innovative

approach of aiding the typhoon-affected families,

particularly the farming households, by providing

immediate source of food and nutrition within 30

days, and restoring the livelihood of smallholder

farmers in 100 days.

Having a strong will to help thousands of families

recover and rebuild their lives after the havoc of

Super Typhoon Yolanda, the Foundation and the

Company spearheaded a fund drive and managed

to raise P1.4 million in donations from its

employees and satellite offices who immediately

heed calls for help in times of need.


Top left and right: EWSF Executive Director Dr. Roberto Acosta and volunteers from the Technology Transfer Department

distributing start-up farming kits to the Initiative‘s first batch of farmer beneficiaries in Samar & Leyte. Bottom: Volunteers from the

EWSC Technology Transfer Department conducting vegetable training to the recipients of Post-Yolanda Sustainable Livelihoods

Recovery Initiative in Samar and Leyte.

Seed donations consisting of 22, 650 seed

pouches and 520 seed cans worth P200 thousand

from its seed fund were provided to the local

government units and other relief organizations in

the provinces of Leyte, Samar, Bohol, Iloilo, Capiz,

Aklan, Antique and Cebu. Instead of using the

remaining funds for relief activities, the

contributions were translated into a more

sustainable form of support and assistance. The

group identified an initial target of 1,000 farming

households in Samar and Leyte as the recipient of

the Post-Yolanda Sustainable Livelihoods Recovery

Initiative.

During times of disaster, volunteerism became

more evident among East-West Seed employees

as the Technology Transfer Department took the

lead in implementing the initiative. Four weeks

after the disaster, the volunteer group has begun

to distribute start-up farming kits which include

assorted short-gestating vegetable seeds (i.e.

kangkong, pechay, sitao, eggplant, yardlong bean,

mung bean, glutinous corn, and calabaza),

fertilizers, agricultural chemicals, and farming tools.

As of December 2013, the team distributed

package of assorted vegetable seeds and training

brochures to 739 farming-households in


Leyte and Samar. The identified farmer-

beneficiaries were also given technical support

through vegetable production training and

periodic monitoring of their vegetable farms. Apart

from technical assistance and farming inputs, the

beneficiaries were also provided with market

linkage support for easier marketing of their

harvested produce. To complete the target of

1,000 farming families, a second phase of seed

distribution and farmer training will be done

towards the end of February or early March.

The Foundation and East-West Seed Company

believed that more effort should be done to help

rebuild and rehabilitate the lives of the farming

communities in Eastern Visayas. Having that in

mind, EWSF and its mother company is now

working to scale up what they have started. The

group are looking into increasing the number of

farmer-beneficiaries from 1,000 to 10,000 farming

households in partnership with private sector

donors to reach more farming communities in the

heavily-devastated typhoon areas.

Farmer-beneficiaries in Tacloban City and Tabango, Leyte finally have access to nutritious food and ways to earn

extra income after the havoc of Typhoon Yolanda through the seeds donated by the program.


Bert van der Feltz

Trustee

Francisco C. Eizmendi, Jr.

Trustee

Joost Pekelharing

Trustee

Ramon B. Magsaysay, Jr.

Trustee

BOARD OF TRUSTEES

Juan B. Santos

President

Senen C. Bacani

Vice President & Auditor

Dr. Mary Ann P. Sayoc

Treasurer & Corporate Secretary


EXECUTIVE COMMITTEE

Juan B. Santos

President

Senen C. Bacani

Vice President & Auditor

Dr. Mary Ann P. Sayoc

Treasurer & Corporate Secretary

Roberto R. Acosta, Ph.D.

Executive Director


Clockwise from top left:

Michelle Calica

Project Coordinator

Jomar Basco

Project Coordinator

Kim Enot

Project Coordinator

Fritz Collantes

Project Coordinator

Adriel Daligdig

Project Coordinator

Ryan Maribojoc

Project Coordinator

Shiela Anunciado

Project Coordinator

Ruby Mandac

Finance & Administrative Assistant

Joyce Gaviola

Program Officer

Ivy De Guzman

Program Officer

Roselyn Bumanlag

Project Coordinator

CORPORATE STAFF


INDEPENDENT AUDITOR’S REPORT

The Board of Trustees

East-West Seed Foundation, Inc.

Report on the Financial Statements

We have audited the accompanying financial statements of East-West Seed Foundation, Inc. (a non-stock,

non-profit organization), which comprise the statements of assets, liabilities, and fund balances as at

December 31, 2013, and the statements of revenues and expenses, statements of fund balances and

statements of cash flows for the year ended December 31, 2013 and for the period from July 4, 2012 to

December 31, 2012, and a summary of significant accounting policies and other explanatory information.

Management‘s Responsibility for the Financial Statements

Management is responsible for the operation and fair presentation of these financial statements in

accordance with Philippine Financial Reporting Standard for Small and Medium-sized Entities, and for

such 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.

2013 FINANCIAL REPORT


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 East-

West Seed Foundation, Inc. as at December 31, 2013 and 2012, and its financial performance and its cash

flows for the year ended December 31, 2013 and for the period from July 4, 2012 to December 31, 2012,

in accordance with Philippine Financial Reporting Standard for Small and Medium-sized Entities.

Report on the Supplementary Information Required Under Revenue Regulations 15-2010

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken

as a whole. The supplementary information required under Revenue Regulations 15-2010 in Note 10 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 the management

of East-West Seed Foundation Inc. Such information has been subjected to the auditing procedures

applied in our audit 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.

SYCIP GORRES VELAYO & CO.

Maria Veronica Andresa R. Pore

Partner

CPA Certificate No. 90349

SEC Accreditation No. 0662-AR-2 (Group A),

March 26, 2014, valid until March 25, 2017

Tax Identification No. 164-533-282

BIR Accreditation No. 08-001998-71-2012,

April 11, 2012, valid until April 10, 2015

PTR No. 4225202, January 2, 2014, Makati City

March 26, 2014


EAST-WEST SEED FOUNDATION, INC.

SCHEDULE OF RECEIPTS

FOR THE YEAR ENDED DECEMBER 31, 2013

Donor/Receipts Address Date Amount

GT Metro Foundation, Inc. 4th Floor Executive Offices, Metrobank

Plaza,Sen. Gil J. Puyat Avenue,

Makati City

April 25, 2013 P=935,000

Infant and Pediatrics

Nutrition Association

of the Philippines

6A 6/F DAO 1 Condominium, 189

Salcedo Street,Legaspi Village,

Makati City

April 25, 2013 725,000

Oh My Gulay, Inc. Room 504 GSIS Building, Financial Center,

Pasay City April 25, 2013 300,000

BDO Unibank, Inc. BDO Corporate Center, 7899 Makati

Avenue, Makati City May 31, 2013 1,200,000

Oh My Gulay, Inc. Room 504 GSIS Building, Financial Center,

Pasay City June 28, 2013 550,800


Inc.

Km. 54, Cagayan Valley Road, Brgy.

Sampaloc, San Rafael, Bulacan July 26, 2013 1,842,120

Novartis Healthcare

Philippines, Inc.

Asian Reinsurance Bldg., Salcedo cor.

Gamboa St., Legaspi Village, Makati City July 26, 2013 100,000

Zuellig Family Foundation Km. 14 West Service Road, Brgy. Sun

Valley, Parañaque City

October 29,

2013 100,000


Incorporated

Km. 54, Cagayan Valley Road, Brgy.

Sampaloc, San Rafael, Bulacan

December 27,

2013 3,224,550

TOTAL

P=8,977,470



SCHEDULE OF DISBURSEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2013

Project Undertaken Beneficiary Project description Project Status Cost

Tanim sa Kinabukasan

(TSK) Project

Department of

Education

Elementary

Schools

Teach vegetable

gardening to public

school children

nationwide

Multi-year program and

on-going as of

December 2013

P=4,931,178

Juan B. Santos

President

Unit 308 Vicars Bldg.

31 Visayas Ave. cor. Road 1

Brgy. Vasra, Quezon City

Contact number: (02) 921-4875

Roberto R. Acosta

Executive Director





Project Office:

East-West Seed Foundation, Inc.







(A Non-stock, Not-for-profit Organization)

STATEMENTS OF ASSETS, LIABILITIES AND FUND BALANCES

December 31

2013 2012

ASSETS

Current Assets

Cash P=3,923,047 P=1,422,153

Advances to employees 27,428 15,500

Materials and supplies 88,756 –

Prepayment and other asset (Note 4) 30,240 52,800

Total Current Assets 4,069,471 1,490,453

Noncurrent Asset

Property and equipment (Note 5) 102,363 109,354

TOTAL ASSETS P=4,171,834 P=1,599,807

LIABILITIES AND FUND BALANCES

Current Liabilities

Accrued expenses and other payables (Note 6) P=322,172 P=75,257

Advances from a related party (Note 7) – 1,010,876

Total Current Liabilities 322,172 1,086,133

Fund balances 3,849,662 513,674

TOTAL LIABILITIES AND FUND BALANCES P=4,171,834 P=1,599,807

See accompanying Notes to Financial Statements.




STATEMENTS OF REVENUES AND EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2013 AND

FOR THE PERIOD FROM JULY 4, 2012 TO DECEMBER 31, 2012*

2013 2012

(One Year) (Six Months)

REVENUES

Donations:

Restricted (Note 9) P=5,752,920 P=450,000

Unrestricted 3,224,550 1,000,000

Interest income 7,431 1,876

8,984,901 1,451,876

EXPENSES

Project expenses (Note 9)

Outside contracting 1,242,880 299,427

Salaries and benefits 973,420 9,134

Materials and supplies 967,817 23,461

Travel and transportation 579,182 180,449

Farm inputs 337,928 –

Community day 301,095 –

Trainings, conferences and meetings 232,484 –

Communications 217,840 41,702

Tools 78,532 –

Professional fees – 90,000

Miscellaneous – 6,070

Total project expenses 4,931,178 650,243

General and administrative expenses (Note 8) 717,735 287,959

5,648,913 938,202

EXCESS OF REVENUES OVER EXPENSES BEFORE

OTHER COMPREHENSIVE INCOME 3,335,988 513,674

OTHER COMPREHENSIVE INCOME – –

EXCESS OF REVENUES OVER EXPENSES P=3,335,988 P=513,674

* The Foundation was established and registered with the Philippine Securities and Exchange Commission on July 4, 2012.





STATEMENTS OF FUND BALANCES



Fund balance at July 4, 2012 P=–

Excess of revenues over expenses 513,674

Fund balance at December 31, 2012 513,674

Excess of revenues over expenses 3,335,988

Fund balance at December 31, 2013 P=3,849,662






STATEMENTS OF CASH FLOWS



2013 2012


CASH FLOWS FROM OPERATING ACTIVITIES

Excess of revenues over expenses P=3,335,988 P=513,674

Adjustments for:

Depreciation (Note 5) 44,191 3,886

Interest income (7,431) (1,876)

Operating income before working capital changes 3,372,748 515,684

Decrease (increase) in:

Materials and supplies (88,756) –

Advances to employees (11,928) (15,500)

Prepayment and other asset 22,560 (52,800)

Increase in accrued expenses and other payables 246,915 75,257

Net cash generated from operations 3,541,539 522,641

Interest received 7,431 1,876

Net cash flows from operating activities 3,548,970 524,517

CASH FLOWS FROM AN INVESTING ACTIVITY

Additions to property and equipment (Note 5) (37,200) (113,240)

CASH FLOWS FROM A FINANCING ACTIVITY

Increase (decrease) in advances from a related party (1,010,876) 1,010,876

NET INCREASE IN CASH 2,500,894 1,422,153

CASH AT BEGINNING OF PERIOD 1,422,153 –

CASH AT END OF PERIOD P=3,923,047 P=1,422,153






NOTES TO FINANCIAL STATEMENTS

1. Corporate Information

The East-West Seed Foundation, Inc. (the Foundation) was organized and registered with the

Philippine Securities and Exchange Commission as a non-stock, not-for-profit organization on July 4,

2012. The Foundation is envisioned to be the corporate social responsibility arm of the East-West

Seed Company, Incorporated, the leading hybrid vegetable seed producer in the Philippines. The

purposes of the Foundation are as follows:

a) To promote, undertake, advocate for, support or implement various programs and initiatives that

will impact on the development of the Philippine vegetable industry and increase the per capita

consumption of vegetables among Filipinos for improved nutrition and better health for all;

b) To provide financial and technical support to public schools and other social institutions in order

to grow vegetables for consumption purposes, either at home or in school-based feeding centers,

as a strategy to address the growing incidence of malnutrition especially among children and

youth;

c) To increase awareness among Filipinos on the importance of vegetable consumption to meet

their daily nutritional requirements and thus, contribute to improved health status and well-being;

d) To engage in and/or support research, training and technology transfer activities aimed at helping

vegetable farmers/growers develop and adopt appropriate technologies to increase their farm

productivity and income levels;

e) To engage in or promote social entrepreneurship and agricultural lending activities in order to

provide vegetable farmers/growers with equitable access to capital and other production inputs;

f) To provide educational opportunities and/or scholarship grants to deserving children of low-

income families who are strongly inclined to pursue a career in agriculture, especially vegetable

farming;

g) To enter into and sustain project partnerships with like-minded organizations both local and

foreign, in furtherance of the Foundation‘s vision and mandate;


h) To solicit, accept and receive any gift, donation, contribution, endowment plan, bequest or devise

of money or any kind or real or personal properties necessary, desirable or proper for the

Foundation to hold, acquire or administer;

i) To hold, purchase, acquire, sell, exchange, lease, mortgage or otherwise deal in real and/or

personal property, and invest its funds, money or properties in such undertaking and to pursue

such activities as may be desired or necessary, provided the profits do not inure to the benefit of

the members or officers or any other private individual;

j) To engage the services of professionals in order to ensure that attainment of the objectives and

goals of the Foundation;

k) To generate funds, borrow or raise money, and establish and secure credit facilities to meet the

financial requirements of the Foundation.

The Foundation is a non-stock and not-for-profit organization qualified under Section 30(e), (g) and

(h) of National Internal Revenue Code as amended by Executive Order 273, and is therefore exempt

from income taxes on its charitable operations.

The Foundation filed its application for accreditation with the Philippine Council for NGO Certification

(PCNC) on December 10, 2013. PCNC is scheduled to visit the Foundation on

May 5, 2014 to do verification procedures for finalization of its accreditation.

The registered principal office address of the Foundation is Unit 308 Vicars Bldg., 31 Visayas Ave. cor.

Road 1, Brgy. Vasra, Quezon City.

The Foundation‘s financial statements as of December 31, 2013 and 2012 and for the year ended

December 31, 2013 and for the period from July 4, 2012 to December 31, 2012 were authorized for

issue by the Board of Trustees on March 26, 2014.

2. Summary of Significant Accounting Policies

Basis of Preparation

The financial statements have been prepared under the historical cost basis and are presented in

Philippine peso (P=), which is the Foundation‘s functional currency.


Statement of Compliance

The financial statements of the Foundation have been prepared in accordance with Philippine

Financial Reporting Standard for Small and Medium-sized Entities (PFRS for SMEs).

Cash

Cash includes cash on hand and with a bank.

Advances to Employees

Advance to employees are classified as current assets when they are expected to be realized within

twelve months after the reporting date or within the normal operating cycle, whichever is longer.

Otherwise, these are classified as noncurrent assets.

Advances to employees are recognized initially at fair value, which normally pertains to the billable

amount. After initial measurement, it is subsequently measured at amortized cost using the effective

interest rate method, less allowance for impairment losses. Amortized cost is calculated by taking into

account any discount or premium on acquisition and fees that are an integral part of the effective

interest rate. The amortization, if any, is included in the statement of revenues and expenses. The

losses arising from impairment of advances to employees are recognized in the statement of

revenues and expenses. The level of allowance for impairment losses is evaluated by management

on the basis of factors that affect the collectibility of accounts.

The Foundation assesses at each reporting date whether the advances to employees are impaired. If

there is objective evidence that an impairment loss on advances to employees has been incurred, the

amount of the loss is measured as the difference between the assets‘ carrying amount and the

present value of estimated future cash flows discounted at the asset‘s original effective interest rate.

Time value is generally not considered when the effect of discounting is not material. The carrying

amount of the asset shall be reduced through the use of an allowance account. The amount of the

loss shall be recognized in the statement of revenues and expenses.

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 the statement of revenues and expenses to the extent that the carrying value of the asset does not

exceed its amortized cost at the reversal date.

Materials and Supplies

Materials and supplies consist of office supplies and farm materials, and are stated at the lower of cost

and net realizable value (NRV). NRV is the replacement cost of the materials and supplies.


Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization and any

accumulated impairment in value. The initial cost of property and equipment consists of its purchase

price and any directly attributable costs of bringing the asset to its working condition and location for

its intended use. Expenditures incurred after the property and equipment have been put into

operation, such as repairs and maintenance and overhaul costs, are normally charged to expense in

the period in which the costs are incurred. In situations where it can be clearly demonstrated that the

expenditures have resulted in an increase in the future economic benefits expected to be obtained

from the use of an item of property and equipment beyond its originally assessed standard of

performance, the expenditures are capitalized as an additional costs of property and equipment.

Depreciation and amortization is computed using the straight-line method over the estimated useful

lives of the assets. Leasehold improvements are amortized using the straight-line method over the

estimated useful lives of the improvements or term of the lease, whichever is shorter. The estimated

useful lives of the assets are as follows:

Category Number of Years

Office equipment 3

Leasehold improvements 3-5

Furniture 3

The depreciation method and estimated useful lives are reviewed periodically. Changes in the

expected useful lives or the expected pattern of consumption of future economic benefits embodied

in the items of property and equipment are accounted for by changing the depreciation method and

useful lives, as appropriate, and treated as a change in accounting estimates. The depreciation

expense on the items of property and equipment is recognized in profit or loss.

When property and equipment are retired or otherwise disposed of, their cost, accumulated

depreciation and any allowance for impairment in value are eliminated from the accounts and any

gain or loss resulting from their disposal is included in statement of revenues and expenses.

Fully depreciated property and equipment are retained in the accounts until these are no longer in

use.

Property and equipment is reviewed for impairment whenever events or changes in circumstances

indicate the carrying values may not be recoverable. If any such indication exists and where the

carrying values exceed the estimated recoverable amount, the asset or cash-generating units are


written down to its recoverable amount. The estimated recoverable amount is the higher of an asset‘s

fair value less costs to sell and value in use. The fair value less costs to sell is the amount obtainable

from the sale of an asset in an arm‘s length transaction less the costs of disposal while value in use is

the present value of estimated future cash flows expected to arise from the continuing use of an asset

and from its disposal at the end of its useful life. For an asset that does not generate largely

independent cash inflows, the recoverable amount is determined for the cash-generating unit to

which the asset belongs. Impairment losses are recognized in the statement of revenues and

expenses.

Recovery of impairment losses recognized in prior years is recorded when there is an indication that

the impairment losses recognized for the asset no longer exist or have decreased. The recovery is

recorded in the statement of revenues and expenses. However, the increased carrying amount of an

asset due to a recovery of an impairment loss is recognized to the extent it does not exceed the

carrying amount that would have been determined (net of depreciation and amortization) had no

impairment loss been recognized for that asset in prior years.

Accrued Expenses and Other Payables

Accrued expenses and other payables are obligations arising directly from the Foundation‘s

operations on the basis of normal credit terms and do not bear interest. Accrued expenses and other

payables are recognized in the statement of assets, liabilities and fund balances when it is probable

that an outflow of resources embodying economic benefits will result from the settlement of a present

obligation and the amount at which the settlement will take place can be measured reliably.

Fund Balance

Fund balance represents the cumulative balance of excess or deficiency of revenues over expenses.

Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the

Foundation and the revenue can be reliably measured. The following specific recognition criteria

must also be met before revenue is recognized:

Donations

Donations are recognized when earned and received and is available for use by the Foundation and

when donor-imposed conditions are substantially complied. Restricted donation represents the

amount set aside for special projects and other contingencies while unrestricted donation represents

the portion of expendable funds available to support the Foundation‘s operations.

Interest Income

Interest income from bank deposits are recognized as it accrues using effective interest rate method.


Expenses

Expenses are decreases in economic benefits during the accounting period in the form of outflows or

depletions of assets or incurrence of liabilities that result in decreases in equity, other than those

relating to distributions to equity participants. The Foundation‘s expenses consist primarily of project

expenses and general and administrative expenses.

Project Expenses

Project expenses are incurred for livelihood and employment, education, health, environment,

institution building and organizational development projects and are generally recognized when the

services are used or the expenses arise.

General and Administrative Expenses

General and administrative expenses are incurred in the normal course of business and are generally

recognized when the services are used or the expenses arise. They comprise mainly of repairs and

maintenance, office rental, office supplies and others.

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 resources embodying economic benefits will be

required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are made by discounting the expected

future cash flows at a pre-tax rate that reflects current market assessments of the time value of money

and, where appropriate, the risks specific to the liabilities. Where discounting is used, the increase in

the provision due to the passage of time is recognized as an interest expense.

Where the Foundation expects some or all of a provision to be reimbursed, the reimbursement is

recognized as a separate asset but only when the reimbursement is virtually certain. The expense

relating to any provision is presented in the statement of revenues and expenses, net of any

reimbursement.

Contingencies

Contingent liabilities are not recognized in the financial statements. They 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 are disclosed when an inflow of economic benefits is

probable.

Events After the Reporting Date


Post year-end events that provide additional information about the Foundation‘s position at the

reporting date (adjusting events), are reflected in the financial statements. Post year-end events that are

not adjusting events are disclosed in the notes to financial statements when material.

3. Significant Accounting Judgment and Estimate

The Foundation‘s financial statements prepared in accordance with PFRS for SMEs require

management to make judgments and estimates that affect the amounts reported in the financial

statements and related notes. The judgments and estimates used in the financial statements are

based upon management‘s evaluation of relevant facts and circumstances as of the date of the

Foundation‘s financial statements. Actual results could differ from such estimates.

Judgment and estimate are continually evaluated and are based on historical experience and other

factors including expectations of future events that are believed to be reasonable under the

circumstances.

Judgment

Determining Functional Currency

The functional currency of the Foundation has been determined to be the Philippine peso. The

Philippine peso is the currency of the primary economic environment in which the Foundation

operates.

Determining Operating Lease - Foundation as Lessee

The Foundation has entered into lease agreement as a lessee. The Foundation has determined that

the lessor retains all the significant risks and rewards of ownership of these properties. The lease

agreement is accounted for as operating lease.

Estimate

Estimating Impairment of Advances to Employees

Management reviews the age and status of advances to employees and identifies whether the

advances is to be provided with allowance on a continuous basis. To determine whether there is

objective evidence of impairment, the Foundation considers factors such as the probability of

insolvency or significant financial difficulties of the employees and default or significant delay in

liquidation of expenses. Where there is objective evidence of impairment, the amount and timing of

future cash flows are estimated based on age and status of the financial asset, as well as on historical

loss experience.

Allowance for impairment loss is provided when management believes that the balance cannot be

collected or realized after exhausting all efforts and courses of action.


As of December 31, 2013 and 2012, no allowance for impairment loss on advances to employees was

recognized by the Foundation.

Estimating Impairment of Materials and Supplies and Property and Equipment

The Foundation assesses impairment on assets whenever events or changes in circumstances indicate

that the carrying amount of an asset may not be recoverable. The factors that the foundation

considers important which could trigger an impairment review include the following:

• Significant underperformance relative to expected historical or projected future operating results;

• Significant changes in the manner of use of the acquired assets or the strategy for overall

business; and

• Significant negative industry or economic trends.

An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable

amount. The recoverable amounts are computed using value in use. The value in use is the present

value of estimated future cash flows expected to arise from the continuing use of an asset and from its

disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or, if it is

not possible, for the cash-generating unit to which the asset belongs. In determining the present

value of estimated future cash flows expected to be generated from the continued use of the assets,

the Foundation is required to make estimates and assumptions that can materially affect the financial

statements.

No impairment loss on materials and supplies and property and equipment was recognized in 2013

and 2012. The aggregate net book values of materials and supplies and property and equipment

amounted to P=191,119 and P=109,354 as of December 31, 2013 and 2012, respectively

(see Note 5).

Estimating Useful Lives of Property and Equipment

The useful lives of property and equipment are estimated based on the period over which these

assets are expected to be available for use. The estimated useful lives of property and equipment are

reviewed periodically and are updated if expectations differ from previous estimates due to physical

wear and tear, technical or commercial obsolescence and legal or other limits on the use of the

property and equipment. In addition, the estimation of the useful lives is based on collective

assessment of internal technical evaluation and experience with similar assets. It is possible that future

results of operations could be materially affected by changes in these estimates brought about by

changes in the factors mentioned above. Any reduction in the estimated useful lives of property and

equipment would increase the Foundation‘s recorded operating expenses. The net book values of

property and equipment amounted to P=102,363 and P=109,354 as of

December 31, 2013 and 2012, respectively (see Note 5).


4. Prepayment and Other Asset

2013 2012

Prepaid rent P=– P=26,400

Rent deposit 30,240 26,400

P=30,240 P=52,800

The rent deposit serves as security for the full and faithful compliance of each and every term,

provision, covenant, and conditions of the lease and shall remain intact during the entire term of the

lease. The rent deposit shall be refunded within sixty (60) days from the expiration of the lease term

on April 2014.

5. Property and Equipment

2013

Office Leasehold

Equipment Improvements Furniture Total

Cost:

Balances at beginning of year P=99,920 P=– P=13,320 P=113,240

Additions 24,300 12,900 – 37,200

Balances at end of year 124,220 12,900 13,320 150,440

Accumulated depreciation and

amortization:

Balances at beginning of year 2,776 – 1,110 3,886

Depreciation and

amortization (see Note 8) 38,031 1,720 4,440 44,191

Balances at end of year 40,807 1,720 5,550 48,077

Net book values P=83,413 P=11,180 P=7,770 P=102,363

2012

Office

Equipment Furniture Total

Cost: P=99,920 P=13,320 P=113,240

Less depreciation (see Note 8) 2,776 1,110 3,886


2013

Office Leasehold

Equipment Improvements Furniture Total

Net book values P=97,144 P=12,210 P=109,354

6. Accrued Expenses and Other Payables

2013 2012

Accounts payable P=59,508 P=75,257

Advances from employees 120,859 –

Accrued expenses 141,805 –

P=322,172 P=75,257

Accrued expenses and other payables pertain to accrual of project reimbursements, unpaid utilities,

professional fees and salaries and wages, other third party services and other payables to suppliers

that are noninterest-bearing and are due and demandable.

7. Related Party Transactions

Parties are considered to be related if one party has the ability to control, directly or indirectly, the

other party or exercise significant influence over the other party in making financial and operating

decisions. Parties are also considered to be related if they are subject to common control or common

significant influence.

Advances from a related party is as follows:

Year

Transactions

During the Year

Outstanding

Balance Terms Condition

Under common control


Incorporated

2013 P=2,229,788 P=–

Due and demandable;

noninterest-bearing Unsecured 2012 P=1,010,876 P=1,010,876

8. General and Administrative Expenses

2013 2012


Repairs and maintenance P=250,481 P=11,283

Office rental 146,640 132,000

Office supplies 67,616 33,961

Depreciation (see Note 5) 44,191 3,886


Professional fees 37,720 25,000

Taxes and licenses 34,544 7,342

Membership fees 28,000 –

Utilities 23,327 35,416

Security and janitorial 17,800 3,500

Others 67,416 35,571

P=717,735 P=287,959

Others include processing fees and other incidental expenses incurred by the Foundation.


9. Other Matters

As of December 31, 2013 and 2012, the Foundation undertakes to provide funding for the Tanim sa

Kinabukasan (TSK) Project. TSK is an advocacy project that is aimed at teaching school kids improved

techniques of planting vegetables and eventually influence them to love eating the same. It also aims

to encourage the whole community (parents, teachers, local government agencies, and other

stakeholders) to learn and appreciate the value of growing and eating vegetables thereby promoting

food security, good nutrition, clean and green environment and creating livelihood opportunities. The

Foundation has incurred project costs of P=4,931,178 and P=650,243 for the year ended December 31,

2013 and for the period from July 4, 2012 to December 31, 2012, respectively.

10. Supplementary Information Required Under RR 15-2010

The taxes and fees paid by the Foundation for the year ended December 31, 2013 classified under

―Taxes and licenses‖ account under ―General and Administrative Expenses‖ section in the statement of

revenues and expenses are as follows:

Local

Licenses and fees P=24,835

Municipal license 9,209

P=34,044

National

Annual registration fee - BIR P=500


LITERATURE CITED

Food and Nutrition Research Institute (2008). 7th National Nutrition Survey: Philippines, 2008: Initial Results.

http://www.ndap.org.ph/files/upload/7th-National%20Nutrition%20Survey.pdf (accessed March 25, 2014)

Food and Nutrition Research Institute (2011). Nutritional Status of Filipino Children and Other Population

Groups: 2011. http://www.fnri.dost.gov.ph/images/stories/nutrition_summit/nutrition_summit_files.pdf

(accessed March 25, 2014)

Mapa, D. S., et al., (2010). Hunger Incidence in the Philippines: Facts, Determinants and Challenges.

http://mpra.ub.uni-muenchen.de/23670/1/MPRA_paper_23670.pdf (accessed March 25, 2014)

National Disaster Risk Reduction and Management Council (2014). NDRRMC Update: SitRep No. 92

Effects of Typhoon ―Yolanda‖ (Haiyan).

http://ndrrmc.gov.ph/attachments/article/1125/NDRRMC%20Update%20re%20Sit%20Rep%2092%20Effec

ts%20of%20%20TY%20%20YOLANDA.pdf (accessed April 22, 2014)

World Health Organization (n.d.). Malnutrition in the Philippines-How Will World Health Organization Deal

With It? http://www.who.org.ph/malnutrition.html (accessed March 25, 2014)

World Health Organization (2011). Country Health Information Profile: Philippines Country Profile 2011.

http://www.wpro.who.int/countries/phl/26PHLpro2011_finaldraft.pdf (accessed March 25, 2014)

UNICEF Philippines (n.d.). Health and Nutrition Issue.

http://www.unicef.org/philippines/health_nutrition.html (accessed March 25, 2014)

http://www.ndap.org.ph/files/upload/7th-National%20Nutrition%20Survey.pdf

http://www.fnri.dost.gov.ph/images/stories/nutrition_summit/nutrition_summit_files.pdf

http://mpra.ub.uni-muenchen.de/23670/1/MPRA_paper_23670.pdf

http://ndrrmc.gov.ph/attachments/article/1125/NDRRMC%20Update%20re%20Sit%20Rep%2092%20Effects%20of%20%20TY%20%20YOLANDA.pdf

http://ndrrmc.gov.ph/attachments/article/1125/NDRRMC%20Update%20re%20Sit%20Rep%2092%20Effects%20of%20%20TY%20%20YOLANDA.pdf

http://www.who.org.ph/malnutrition.html

http://www.wpro.who.int/countries/phl/26PHLpro2011_finaldraft.pdf

http://www.unicef.org/philippines/health_nutrition.html

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