KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. (A Non-stock, Not-for-profit Organization) FINANCIAL STATEMENTS DECEMBER 31, 2015 AND 2014Felomino $. Belinario Certified Public Accountant BOA Accreditation No. 1054" Bt No, 05-003822-07-2014 * SEC No. 1991-4 Independent Auditor's Report To the Board of Trustees and Members of KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. {A NONSTOCK, NON-PROFIT ORGANIZATION) 17 Salvador Street Loyola Heights, Quezon City (Page 1 of 3) Report on the Financial Statements Ihave audited the accompanying financial statements of KALOOB DEVELOPMENT OFFICE FOUNDATION, ING, (the “Foundation”) which comprise the statements of financial position as at December 31, 2015 and 2014, and the statements of activities and changes in net assets and cash flows for the year then ended ‘and a summary of significant accounting policies and other explanatory information. ‘Management's responsibilty for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the Philippine Financial Reporting Standards for Small and Medium-sized Entities (PFRS for SMEs) 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 My responsibility is to express an opinion on these financial statements based on my audit. ! conducted my audit in accordance with Philippine Standards on Auditing. Those Standards require that | comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. ‘An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control, An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence | have obtained is sufficient and appropriate idgyg basis for my aust opinion ieere f {O15 Ago St, Mala, Manda” 1010 Pines “Fei No +092) @OG40- Tole lax No (1002) GOGOFelomino $. Belinario Certified Public Accountant ‘BOA Accreditation No. 4054" Bt No. 06 008222 01-2044 *SEC No. 107A Independent Auditor’s Report To the Board of Trustees and Members of KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. (Page 2 of 3) Opinion In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. as at December 31, 2015 and 2014, and its financial performance and its cash flows for the year then ended in accordance with the PFRS for SMEs. Other matter The financial statements of KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. for the year ended December 31, 2014, were audited by another auditor whose report thereon dated April 14, 2015, expressed an unqualified opinion on those statements. APR 1.5 206 "1915 Agoncllo St, Malate, Manila * 1015 Philippines * Tel No +632) 596-6449 > Tole fax No. (+682) 595-0449Felomino S. Belinario Certified Public Accountant [BOA Accreditation No. 1054 * BIR No. 06-003322-01-2014 ~ SEC No, 1391-4 Independent Auditor's Report To the Board of Trustees and Members of KALOOB DEVELOPMENT OFFICE FOUNDATION, INC, (Page 3 of 3) Report on the Supplementary Information Required Under Revenue Regulations 15-2010 of the Bureau of Internal Revenue and Securities Regulations Code 68 of the Securities and Exchange Commission My audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information in Schedule A to the financial statements is presented for purposes of filing with Bureau of Internal Revenue and on taxes and licenses in Note 17 of 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 has been subjected to the auditing procedures applied in my audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. aa Li BELINARIO CPA License No. 51526 TIN: 102-048-228-000 SEC No. 1391-A/Valid until February 17, 2017 BOA No. 1054/Valid until December 31, 2016 BIR Accreditation No. 06-003322-001-2014/Valid until March 27, 2017 PTR No. 4924179/January 4, 2016, City of Manila April 14, 2016 Makati City “15 Agancilo St, Molat, Mania * 1076 Philippines * Tei Na s62) SBE-B440™ Vale fav No (699) SGRaaFelomino S. Belinario Certified Public Accountant {OK Actediation No, 1054 BIR No, O6-009322.07.2014 SEC No. 1204-A ‘Statements Required by Section 8-A. Revenue Regulations N To the Board of Trustees and Members of KALOO® DEVELOPMENT OFFICE FOUNDATION, INC. (A NON STOCK, NON-PROFIT ORGANIZATION} 17€ Salvador Streot Layo Heights, Quezon Cihy have audited the financial statements of KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. for the year ended December 31, 2015 on which I have rendered the attached report dated April 14, 2016. In compliance with Revenue Regulation V-20, | am stating the following: 1. The taxes paid or accrued by the above company for the year ended December 31, 2015 are shown, in the Schedule of Taxes and Licenses attached to the Annual Income Tax Return. 2. lam not related by consanguinity or affinity to the president, manager or member of the Board of Trustees and Members. CPA License No. 51526 TIN: 102-048-228-000 SEC No. 1391-A/Valid until February 17, 2017 BOA No. 1054/Valid until December 31, 2016 IR Accreditation No. 06-003322-001-2014/Valid until March 27, 2017 PIR No. 49241 79/January 4, 3016, City of Manila ‘April 14, 2016 Makati City prt 9 208 7815 Agonco St, Malate, Marlla 1076 Philippines" Tel No( +632) 636-8440" Telefax No. (+052) 536-0449 \Felomino S$. Belinario Certified Public Accountant ‘BOA Accreditation No, 1064 IR No 06-005922-01-2014" SEC No. 1997-8 Independent Auditor's Report On Supplementary Schedules To the Board of Trustees and Members of KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. (A NowStock, Non-Profit Organization) 17 CSalvador Street Loyola Heights, Quezon City | have audited in accordance with Philippine Standards on Auditing, the financial statements of KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. and have Issued my report dated April 14, 2016. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplementary schedules as at December 31, 2014 are the responsibility of the Company's ‘management. These supplementary schedules include the following ‘+A Sworn Statement of the Organization's President and Treasurer on the accuracy and completeness of the Schedule of Recelpts or Income Other than Contributions and Donations, ‘Schedule of Contributions and Donations and Schedule of Disbursements ‘These schedulas aro prosnted for purposes of complying with Securities Regulation Code Rule 68 and are not part of the basic financial statements. These schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements, including comparing such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the financial statements themselves. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. ey BELINARIO CPA License No. 51526 TIN: 102-048-228-000 SEC No. 1391-A/Valid until February 17, 2017 BOA No. 1054/Valid until December 31, 2016 BIR Accreditation No. 06-003322-001-2014/Valid until March 27, 2037 PTR No. 4924179/lanuary 4, 2016, City of Manila April 14, 2016 Makati City 701 Agana St, Malate, Mania” 1015 Philippines "Tei No +632) 606-8440" Tala fox No, (HES2) 536-810 u \KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. (A Non-stock, Not-for-profit Organization) STATEMENTS OF FINANCIAL POSITION Notes 2015 2014 ASSETS Current assets Cash 22,4 446,207 1,288,178 Prepayments and other current assets 24,5 989,030, 2,850,667 Total current assets 1,435,237 4,138,845 Non-current assets Property and equipment, net 26,6 : 38,667 Total non-current assets = 38,667 TOTAL ASSETS 1,435,237, 4,177,512 LIABILITIES AND NET ASSETS, Current liabilities Trade and other payables 2.10,7 122,367 44,800 ies 122,367 44,800 Total current fiabi Non-current liabilities ‘Advances from related party 2128 1,703,434 5 Total non-current liabilities “4,703,434 . TOTAL LIABILITIES 3,825,801. 44,800 NET ASSETS Temporarily restricted 215,13 (2,935,313) 7 Unrestricted 215,13 2,544,779 4,332,712 TOTAL NET ASSETS (390,564) 4,132,712 TOTAL LIABILITIES AND NET ASSETS 1,435,237 4,377,512 ‘See accompanying Notes to Financial Statements apr $2006KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. (A Non-stock, Not-for-profit Organization) STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (Amounts in Philippine Peso) Temporarily 2035 ane Notes Unrestricted Restricted TOTAL TOTAL REVENUES, GAINS AND OTHER SUPPORTS Donations 215,9 114467 6,010,506 6,125,073 12,562,260 Other income 25,9 13,028 . 13,028 520 Finance charge— net 24,10 (38,472) (38,472) (52,835) TOTAL SUPPORTS 89,023 6,010,606 6,099,628 12,503,945 EXPENSES AND LOSSES Project implementation u 8,945,950 8,945,950 7,998,161 General and administrative 121,676,956 = 1,676,956 _ 1,703,383 TOTAL EXPENSES 1,676,956 8,945,950 10,622,906 9,701,544 EXCESS OF EXPENSES AND LOSSES OVER REVENUE (1,587,933) (2,935,343) (4,523,277) 2,808,401 Net assets, beginning 215 4132,712 4,132,712 1,324,311 NET ASSETS, ENDING 2,544,779 __(2,935,343)__(390,564) _ 4,132,712 ‘See accompanying Notes to Financial Statements 4 APR1 S206 ~ aeKALOOB DEVELOPMENT OFFICE FOUNDATION, INC. (A Non-stock, Not-for-profit Organization) STATEMENTS OF CASH FLOWS (Amounts in Philippine Peso) 2014 eH a Notes 2015 Cash flows from operating acti Excess of expenses over receipts (4,523,277) 2,808,401 ‘Adjustments for: Depreciation 26,6 38,668 22,313 Finance charge — net _ 21,10 38,472 52,835, Operating profit before working capital changes (4,446,137) 2,883,549 (Increase) decrease in: Prepayments and other current assets 24,5 1,861,637 (2,869,158) Increase (decrease) in: Trade and other payables 2.10,7 7,567 (999) Cash generated from operations (2,506,933) 1,013,392 Finance charge — net 2.1, 10 (38,472) (52,835) Net cash (used from) provided by operating activities (2,545,405) 1,014,337 Cash flows from financing activities . - ‘Net cash used from financing activities - = Cash flows from investing activities ‘Advances from related party 212,8 1,703,434. : Net cash provided by investing activities 1,703,434 : ‘Net increase (decrease) (841,971) 1,014,337 Cash, beginning 22,4 1,288,178 327,621 Cash, ending 445,207 1,288,178 ‘See accompanying Notes to Financial StatementsKALOOB DEVELOPMENT OFFICE FOUNDATION, INC. (A.Non stock, Not-for-Profit Organization) NOTES TO FINANCIAL STATEMENTS ~ DECEMBER 31, 2015 AND 2014 Note - 1 Corporate Information KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. (the “Foundation”) was established in the Philippines and registered with the Securities and Exchange Commission on October 19, 2009 as a ‘non-stock, not-for-profit organization with SEC Reg. No. CN200916231. The purposes for which the Foundation is formed are to provide formation and education to young people while undertaking social development work in cooperation with the poor. These will be done by offering scholarships, training workshops/ seminars and income generating opportunities. The scholarships will be provided to poor/disadvantaged/underprivileged but deserving young people living in the NCR. ‘As a non-stock, not-for-profit organization intended for religious purposes, the Foundation’s income. is exempt from payment of income tax as set forth in Section 30(¢) of the National Internal Revenue Code (NIRC) as amended by Executive Order (E.0.) 273. ‘The registered office of the Foundation is located at 17 C Salvador Street, Varsity Hills Subdivision, Loyola Heights, Quezon City Note - 2 Summary of Significant Accounting Policies 2.1 Basis of Preparation of Financial Statements The significant accounting policies that have been used in the preparation of these financial statements are summarized below. The policies have been consistently applied to all the years presented, unless otherwise stated. Basis of Presentation These financial statements have been prepared in accordance with Philippine Financial Reporting Standard for Small and Medium-Sized Entities (PERS for SMEs). These financial statements have been prepared on the basis of historical costs, unless otherwise stated. Statement of Compliance The preparation of financial statements in conformity with the PFRS for SMEs requires the Use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Foundation’s accounting policies, Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimations are significant to the financial statements are disclosed in the following notes.22 23 24 25 Foreign Currency Translation Funetional and Presentational Currency Moms included in the financial statements of the Foundation are measured using the currency of the primary economic environment in which the entity operates ("functional currency’. The financial statements are presented in Philippine Peso, which is the Foundation’s functional currency. Transactions and Balances Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting, from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. The Foundation had unrealized foreign exchange loss amounted to PhP38,692 as at December 31, 2015, cash Cash includes cash on hand and cash in banks which are subject to insignificant risk of changes in value and are presented in the statement of financial position at nominal amounts. Trade and Other Receivables Trade and other receivables are recognized initially at the transaction price. They are subsequently measured at amortized cost using the effective interest method, less provision for impairment, A provision for impairment of trade receivables is established when there is objective evidence that the Foundation will not be able to collect all amounts due according to the original terms of the receivables. ‘The Foundation had no receivables as al December 31, 2015. Prepayments and Other Current Assets Prepayments and other current assets are initially recognized at cost and subsequently ‘artied at historical cost net of provision for impairment-These are expenses that are paid in advance and are amortized over the period it will benefit the Foundation. These are current assets that the Foundation expects to realize or consume within its normal operating cycle ‘and applied over the period it will benefit the Foundation, This account represents temporary cash advances to officers, volunteers and other communities amounting to PhP989,030 and PhP2,850,667 for 2015 and 2014 respectively. Inventories Inventories are initially recognized at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. At each @2.6 27 reporting date, inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognized immediately in profit of oss. The Foundation did not hold inventories as at December 31, 2015. Property and Equipment-net Property and equipment are initially measured at cost less any subsequent accumulated depreciation, amortization and impairment losses. The cost of an asset comprises its purchase price and directly attributable costs of bringing the asset to working condition for its intended use. Expenditures for additions, Improvements and renewals are capitalized; expenditures for repairs and maintenance are charged to expense as incurred. When assets are sald, retired or otherwise disposed of, the cost and their related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized for the period. Any addition in the estimated life of the property and equipment would decrease the Foundation’s recorded direct cost and operating expenses and increase non-current assets, The useful lives and depreciation re reviewed, and adjusted wf appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The estimated useful lives range as follows: Useful Description ives Office equipment 4 years Office furniture S years Fully depreciated and fully amortized assets are retained by the Foundation as part of Property and equipment until their disposal. Further change in depreciation is made with respect to these assets, The Foundation have property and equipment with a total cost of PhP139,409 and it is fully depreciated. The said assets are retained and stil in used. Other Non-Current Asset Other non-current assets are initially recognized at cost which is determined based on amounts stipulated in contracts and carried at historical cast. The Foundation’s other non- current assets consists of long-term advances to suppliers. ‘The Foundation had no other non-current asset as at December 31, 2015. @)2.8 29 2.10 2a Impairment of Non-Financial Assets Other than Inventories Assets that are subject to depreciation or amortization are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash- generating unit to which the asset has been allocated) is tested for impairment. An Impatrment loss ts recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are erouped at the lowest levels for which there are separately identifiable cash flows (CGUs).. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date, Borrowings Borrowings are recognized initially at the transaction price (that is, the present value of cash payable to the bank, including transaction costs). Borrowings are subsequently stated at amortized cost. Interest expense is recognized on the basis of the effective interest method and is included in finance costs. Dorrowings are classified a> current liabilities unless the Foundation has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Trade and Other Payables Trade and other payables are recognized initially at the transaction price and subsequently measured at amortized cost using the effective interest method, ‘The Foundation’s trade and other payables amounted to PhP122,367 as at December 31, 2015. Provisions and Cor fingencies Provisions for restructuring costs and legal claims are recognized when: the Foundation has 2 present logal or constructive obligation az a result of pest events; it is probable thal « transfer of economic benefits will be required to settle the obligation; and the amount can be reliably estimated. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognized for future operating losses. Provisions are measured at the present value of the amount expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. Contingent liabilities are not recognized in the financial statements. These are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are not recognized in the financial statements but are disclosed in the notes to the financial statements when an inflow of economic benefits is probable. @2.12 Related Perty Transactions 2.43 234 245 Related party relationship exists when one party has the ability to control, directly, of indirectly through one or more intermediaries, the other party or exercises significant influence over the other party in making financial and operating decisions. Such relationships also exist between and/or among entities which are under common control with the reporting enterprise, or between, and/or among the reporting enterprise and its key management personne, trustees, or its members. in considering each possible related Party relationship, attention is directed to the substance of the relationship, and not merely the legal form. Transactions between related parties are accounted for at arms! length prices or on terms lar to those offered to non-related entities in an economically comparable market. The Foundation had advances from related party as at December 31, 2015 amounting to PhP1,703,434, Retirement Benefits The Fauindation does not have a formal retirement benefit plan for its employees, Retirement benefits are provided to qualified employees based on the requirements of RA 7641. There was no actuarial valuation made during the year because the management believes that the amount of retirement benefit obligation will not materially affect the fair Presentation of the financial statements considering that the Foundation has very few emplayees. Leases Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. Leases of Property and equipment, where the Foundation has substantially all the risks and rewards of. ‘ownership, are classified as finance leases, Finance leases are capitalized at the lease’s ‘commencement at the lower of the fair value of the leased pennerty and the present value of the minimum lease payments. The Foundation did not enter into any lease transactions as at December 31, 2015. Net Assets Net assets are divided into Unrestricted and Restricted. Restrictions may be imposed by the donor or limited by legal requirements. Unrestricted Net Assets represent the resources of the Foundation that are not controlled by the donor or limited by legal requirements. Restricted net assets are those whose use is limited by either a time or purpose restriction. A time restriction requires that the resources be used during a certain period of time. Sometimes time restrictions specify that the resources cannot be used until after a specific point in time. A purpose restriction, as its name suggests, requires that resources be used for a specific, such as a specific program/project of the organization. °The Foundation reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of donated assets. When a danor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are classified to unrestricted net assets and reported In the statement of activities as net assets released from restrictions. Gifts consisting of longulived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Note - 3 Information about Key Sources of Estimations Uncertainty and Judgments Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future. Key Sources of Estimation Uncertainty The Foundation makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below. Changes in Accounting Estimates A change in accounting estimates is an adjustment of the carrying amount of an asset or a liability, or the amount of periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities. Change in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors. When it is difficult to distinguish a change in accounting policy from a change in an accounting estimate, the change is treated as a change in accounting estimate. The Foundation recognised the effect of change in an accounting estimate prospectively by including it in profit or loss in: {a) the period of change, if the change affects that period only, or (b) the period of the change and future periods, ifthe change affects both, To the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, or relates to an item of equity, the entity shall recognise it by adjusting the carrying amount of the related asset, liability or equity item in the period of the change. ‘The Foundation management has reassessed the useful life of the transportation equipment beginning of 2015 and was found out that its useful life is 4 years. Income taxes ‘Thare are many transactions and calculations for which the ultimate tax determination is ©Uncertain. The Foundation recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due, Where the final tax autcome of these matters is different {rom the amounts that were initially recorded, such differences will have an impact on the current and deferred income tax assets and liabilities in the period in which such determination is made. Note-4Cash This account consists of: 2015 2014 Cash in bank 422,190 1,250,796 Cash onhand 24,017 37,382 446,207 4,288,178 Cash on hand represents petty cash funds as well as local and foreign currency donations which are used for current operations. Cash in bank generally earns interest at rates based on daily bank deposit rates. Foreign currency deposits were translated to Philippine peso at BSP closing rate as of December 31, 2015. Note - 5 Prepayments and Other Current Assets ‘This account consists of: if = 2015 2014 Other current assets 989,030 2,850,667 963,030 2,850,657 ‘This account represents temporary cash advances to officers and other community which are not yet paid as of year-end aNote - 6 Property and Equipment-net ‘Movement of Property and Equipment is shown below: Office Furniture quipment and Fixtures Total Year ended January 1, 2014 Opening net book value 60,980 - Depreciation charge __ (22,313) : Closing net book value i sar asiee7 ie eran en Year ended December 31, 2014 Cost 111,963 27,446 139,409 Accumulated depreciation (73,296) ___(27,446)_(200,742) Net book value 38,667 = 38,657 pening net book value 38,667 - 38,667 Depreciation charge (38,667) : (33,667) Closing net book value : : : Yoar onded December 31, 2015 Cost 111,963 27,446 139,409 Accumulated deprect (233,953) (7,446) (139,409) Net book value = : ‘The Foundation have property and equipment with a total cost of PhP139,409 and it is fully depreciated. The said assets are retained and still in used. Note-7 Trade and Other Payables This account consists of: 2015 2014 Accrued expenses 122,367 a Accounts payable : 44,200 122,367 44,800 Accrued expenses represent estimated amounts due for services and/or supplies/materials already received but which remain unpaid for at the end of the year. Accounts payables represent tuition and other payable to the schools under scholarship programs of the Foundation, 8)Note 8 Related Party Transaction Parties are considered to be related if one has the ability, directly or indirectly, to control the other party or exercise significant influence over the party in making financial and operating decisions. ‘The related parties of the Foundation include its own members, Outstanding balances a5 at December 31, 2015 are unsecured. There have been no guarantees provided for any related party transactions. For the year ended December 31, 2015, the Foundation assessed that no impairment losses relating to amounts owed to related parties is necessary. This assessment is undertaken at each reporting date through examining the financial position and the amount and timing of future cash flows of the related parties. Unless otherwise stated, the transactions were carried out on commercial terms and conditions, ‘As at December 31, 2015, the balances of these related party transactions are as follows: 8.1 Advances from/to Related Party Name of related party: Related party Relationship: Kelated party Nature of Amount/ Outstanding Mode of transactions Volume balance ms Condit payment clean and have nofixed Unsecured, No ‘Advances from = 1,703,434 Fepayment terms impairment Cash = 4,703,434 Note 9 - Donations and Revenues This account consists of 2015 2014 Donations 6,125,073 12,562,260 Interest and other income 13,248 1,465 6,138,321 12,563,725 Donations represent unrestricted and restricted contributions received by the Foundation from local and international donors. These are recognized in the period received at fair value. Interest and other income comprise of income earned from US and Euro bank accounts and sale of mass card and processing of VISA. (9)Note 10 - Finance charge - net 2015 zon Interest income aii Cea 945 Foreign exchange loss (38,692) (53,780) a (38,472) (52,835) Note 11 - Project implementation This account consists of: 2015 2014 Donation support 5,783,680 3,473,859 Board and lodging 1,410,217 3,133,621 Supplies/taaterials 742,944 2,274,518 Education 459,536 637,416 Books and instructional materials 245,800 153,605 Volunteer’s expensos 234,090 216,000 Retreats/Workshops/Seminars 36,167 38,750 Medical 21,784 59,318 Livelihood program 6,945 5,474 Feeding program 3,887 5,600 8,945,950 7,998,161 (19)Note 12 - General and Administrative Expenses Detailed schedule of the Foundation’s expenses for project implemented for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 Wages and benefits 597,425 493,627 Food 386,493 113,666 Travel and transportation 371,706 592,916 Professionat and technical services 144,439 80,873 Utilities 54,623 51,772 Depreciation (Note 6) 38,668 22,313, Events 34,686 32,750 Communication 28,705 32,282 ‘Taxes and licenses (Note 17) 11,555 11,918 Repairs and maintenance 4,090 4791 Printing and binding 722 2,675 Allowances : 263,800 Miscellaneous 2,844 : 1,676,956 1,703,383 Note 13 - Capital Management The primary objective of the Foundation’s capital management policies is to devote its funds to scholarship grants, youth and social development activities to afford the financial flexibility to support its operations and to maximize the funds available. The Foundation’s source of capital is its total net assets, which is composed of unrestricted, temporarily restricted and permanently restricted net assets. ” 2015 2014 Unrestricted 2,544,779 w ABE NAL ‘Temporarily restricted (2,935,343) (390,564) 4,132,712 Note 14- Income Taxes ‘The Foundation is exempt from payment of income tax provided that it devotes no more than 30% of its total expenses for the taxable year to administrative expenses (Section 1(b) (ii, Revenue Regulation No. 13-98). For the years December 31, 2015 and 2014, the total expenses incurred are as follows: 2015 2014 Project implementation 8,945,950 7,998,161 General and administrative expenses 16, 383 10,622,906 ~__9,701,544_ myTotal percentage share of general and administrative expenses from total expenses incurred for the years December 31, 2015 and 2014 is equivalent to sixteen percent (16%) and eighteen percent (18%), respectively, The Foundation is also exempt from income tax on donations, grants and gifts, provided that the income does not inure to the benefit of any private members or individual, However, profits generated from business activities are taxed, regardless of the disposition of the incame (Sec. 30, Tax Code) Note 15 - Events after the Reporting Date Post year-end events that provide additional information about the Foundation’s position at the financial position date (adjusting events] are reflected in the financial statements. Post year-end events that are not adjusting events are disclosed in the notes to the financial statements when material, ‘As at December 31, 2015 and 2014, the Foundation did not identify any aforementioned events relevant for the financial statements and notes to the financial statement for the periods presented. Note 16 - Approval of Financial Statements The accompanying financial statements of the Foundation as at December 31, 2015 were approved and authorized for issuance by the Board of Trustees on April 14, 2016. Note 17 - Supplementary Information ‘On November 25, 2010, the Bureau of Internal Revenue (BIR) issued Revenue Regulation (RR) 15+ 2010, which required certain information on taxes, duties and licenses paid or accrued during the taxable year to be disclosed as part of the notes to financial statements. 17.1 Value Added Tax The Foundation is not registered under the VAT law. Hence, no VAT or percentage taxes were incurred for the year 2015 and 2014, respectively. 17.2 Withholding Tax The Foundation had no withholding taxes as at December 31, 2015. 173 Excise Tax The nature of the Foundation’s business does not include importations subject to custom duties, tariff fees, and locally produced or imported excisable items. (12)17.4 Documentary Stamp Tax During 2015, there were no transactions related to loan instruments, shares of stocks and other transactions subject to DST 17.5 Taxes and Licences This account consists of: 2015 Mayor's permit 9,337 Barangay clearance 1,000 Registration fee 500 Doc stamp and CTC 500 Fire inspection fee 218 14,555 17.6 Deficiency Tax ‘There were na defiriency tax assessments, tax casas, litigations or prosecution in courts or bodies outside the BIR as at December 31, 2015. (13)Schedule A - Receipts and Disbursement of Non-stock Non-profit Organizations On October 20, 2011, the Security and Exchange Commission amended the SRC Rule 68 and shall become effective on audited financial statements starting the first quarter of 2012, that provides additional disclosures in the audited financial statements for non-profit organization mandated under PFRS for SMEs is presented below: ae is a 2015 CCASH RECEIPTS FROM Donation 6,125,073 Trade and other receivables 11861,637 Advances from related party 1,703,434 Trade and other payables 77567 Depreciation 38,668, Other income 13,028 TOTAL CASH RECEIPTS FROM : 9,819,407 CCASH DISBURSEMENTS FOR Projectimplementation 8,945,950 General and administrative expense 1,976,956 Finance charge—net__ a 38,472 TOTAL CASH DISBURSEMENTS —_ : 30,661,378 NET CASH DISBURSEMENTS 841,971\ Kaloo Development Offce Found, ne. E ! 17. Sahador Sree, LoylaHeigs, Quezon Cl, Philppres j X ad? ED Prove: 6528254573 7 eH Email Adress: floc mania@gmal-com ming leaders, buildi cumunicd Wiebe: wr taloob ph STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS The management of KALOOB DEVELOPMENT OFFICE FOUNDATION, INC. is responsible for the preparation and fair presentation of the financial statements for the year(s) ended December 31, 2015 and 2014, in accordance with the prescribed financial reporting framework indicated therein. This responsibility includes designing and implementing internal controls relevant to the preparation and fair presentation of financial statements that are free from material statement, whether due to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. The Board of Trustees reviews and approves the financial statements and submits the same to the members. FELOMINO S. BELINARIO and AUGUSTO C. DE LEON & CO., CPAS, are the independent auditors, appointed by the members for the year(s) ended December 31, 2015 and 2014 respectively, have examined the financial statements of the company in accordance with Philippine Standards on Auditing, and its report to ‘the members or members, have expressed its opinion on the fairness upon completion of such examination. ae FR, BERNARD HOLZER, A.A. President and Chairman of the Board BRO. RODEL CERVANTES, A.A. Treasufer dayof__} £ APR 2015 Signed this.COVER SH for AUDITED FINANCIAL STATEMENTS. 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