Kids & Future Annual Report Sustainable Hope Report 2008
CONTENTS Introduction 02
Welcome 03
2008 Highlights 04
2008 Transparent Fund Raising Result 08
2009 Major Strategies 05
2008 Account Settlement Overview 10
2008 Projects Review 06 Audit Report 11
Financial Statements 12
Foundation Operation 18
Introduction Kids&Future, a private independent foundation
●⊙ Mission Kids&Future supports children and juveniles by offering
established by funds of willing venture entrepreneurs,
opportunities where they can stably learn, work and play so that they may prepare for their own future on their own feet.
sprouted the burgeon of love in March 2000 to conduct ●⊙ Vision
practical yet differentiated support project in order that
We pursue to encourage the dreams and imaginative power of children and brighten up their future. To that end, we will figure
children may design their own future and grow dreams
out the problems of poverty and health of children, contributing to children and juveniles of the world as an foundation of humanity
voluntarily beyond simply getting financial and physical support.
service that offers education and specialized programs.
●⊙ Key 5 Strategies 1. Pursue Global Standard
- Establish foundation, business strategy and evaluation Foundation Name
Social Welfare Foundation Kids&Future
Chief Executive Officer
Song Ja
ID Number
120-82-05310
Location
5th FL Nunnopi Boramae Center 729-21 Bongcheon dong, Gwanak gu, Seoul city, R.O.Korea
Establishment Approval
Approval No. 832 by Ministry of Healthy and Welfare (present Ministry for Health, Welfare and Family Affairs)
Foundation Nature
Social Welfare Foundation
Applicable Law for Approval
Social Welfare Business Act Article 16
Business Subjects
Children-juvenile related social welfare facility and professionals, estranged children-juveniles
Established Date
Mar. 28, 2000
Donation Deduction
Designated donated amounts, which are donations according to Income Tax Act Article 34 Paragraph 1, are eligible for tax deduction for applicable groups - 15% for individual and 5% for corporation
system that suit global standard - Strengthen collaboration of global projects with overseas foundations and multi-nationality companies 2. Strengthen Network and Partnership - Build up strategic partnership with donors like enterprise, foundations and individuals and what not - Induce participation of various social members and create values through trusted brand by strengthening public relations 3. Lead Transparent and Development Oriented Culture of Sharing - Conduct sustainable survey and research on blind spots for children and juvenile welfare - Reinforce transparency and responsibility of fund-raising and operation of the foundation 4. Propose Model for Private Independent Foundation with Humanity Service Venture Mind - Establish plan for fund-raising and long term development based on independence and autonomy - Seek efficiency of profit-making enterprise and spontaneity of nonprofit organization 5. Build Up Management System for Maintenance of Business Specialization and Sustainability - Heighten efficiency by adopting specialized program - Establish stable and sustainable management system
>3
< Introduction > Welcome
Welcome I would like to thank all of you for having been with Kids&Future last year as well. In 2008, Kids&Future has been with some 1,000 field organizations working on 30,000 or so children and juveniles in blind spots of social welfare while extending and executing projects in various fields of planning allotment, partnership distribution, community support and fund development. What enabled all these are the sincere interest and warm support of you all. In order to pay back to such love of yours and to present transparent information on overall operation at this time of stage when looking toward the 10th anniversary in 2010, Kids&Future prepared "Sustainable Hope Report", a annual report of new look. This Sustainable Hope Report composed based on the review of the guidelines of advanced overseas annual report and the non-profit evaluation regulations etc of specialized organizations presented a retrospect of the current situation of projects, fund-raising/allotment, organization and accounting etc of foundation unlike simple listing style annual report so far and proposed sustainable planning of the future. Looking back now, wrapping up the last 1 year that we ran hard enough, though we miss quite a lot, we realize it was the presence of those that gave us Kids&Future encouragements and trust that enabled to conduct business in happiness. For such reason, each and every period mark placed at each end of the sentences of this report carries our gratitude to you. Thank you again for being with us for the last year. March 2009 CEO
Kids&Future, the only global partner in the nation for IYF(International Youth Foundation), is a foundation "Certified as Excellent Foundation" of 2004. This certification is granted based on evaluations of independence, objectivity, transparency, effectiveness and sustainability etc such as the method of the foundationâ&#x20AC;&#x2122;s operation, effectiveness of strategy and effects on juveniles according to 13 partner evaluation indicators specified by IYF.
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2008 Highlights Jan. - Conducted ceremony for transfer of support money of "Upgrade Your Future" on shelter juveniles career support project and working personnel workshop
Seoul National University
- Extended and moved Kids&Future foundation executive office
- Conducted Dream Art Workshop fine arts camp by the regions in Seoul Gyeonggi, Gwangju, Busan and Daejeon
Feb.
Aug.
- Conducted juveniles economy security class led by Samsung Securities and offered special lectures by outstanding college student volunteer
- Executed "Sports and Hope", the project for the support of estranged class for production and airing by MBC ESPN under the sponsorship of Sports Toto
- Conducted "Ceremony for Bestowment of Pangyo Middle School Scholarship Student Scholarship", a fund for estranged branch school network
- Conducted Kids Love Fund science camp participated by Simens executives and employees and the beneficiary children
- Conducted the event "We Are Strong With Beckham", an estranged children soccer clinic led by Adidas
- Conducted ceremony of delivering scholarship to estranged children and juveniles in 2008 Global Leaders Prize award grant under the administration by Korea Economy Newspaper and SnCS Management Institute
Mar. - New recruits of Samsung Securities performed volunteer activity as lecturers of juvenile economy securities class in 15 social welfare facilities - Conducted education on "Endangered juveniles vocation and career design program" for working personnels of juveniles group
Apr. - Conducted ceremony for delivery of K&F Talent Scholarship in association with year end charity auction event of Event Group We Co.,Ltd.
Sept. - Conducted ceremony of granting scholarship of "Adidas Sports Dream Tree 1st Team" offered to Adidas sports talent students - Executed "2008 Professional Baseball Big Event" cheering text message donation event led by UFO Town, MBC ESPN - Started "Talent Relay Ami Letter Poem&Picture Open Contest", an estranged children talent sponsorship project
- Offered economy education to elementary school 1-3 graders of "Aloysius" a Seoul municipal house of boys with 50 newly recruited employees of Samsung Securities
Oct.
- Conducted "Ceremony of granting Love Musicians Group Scholarship Student Grant Endowment" with members of Love Musicians Group, a group of music college professors in Seoul region.
- Operated booth for the event of "Story of Healthy Growth in the Midst of Happy Sharing with Children", 2008 Social Contribution Grand Festival
- Operated booth for the public relations for "Run for Love", 2008 Adidas MBC Han River Marathon - Started "Sharing Plus", a project for the support of local children centers led by EBS
May - Performed ceremony of inauguration of Maya, the public relations ambassador singer of Kids&Future - Executed "Sending 100 Hope Soccer Balls", a project in support of EURO 2008 soccer pursuers led by Adidas - Conducted ceremony of agreement of Dazilian Tea for Sharing, a sharing commodity for donation - Started "Catch Your Dream" project, a vocation experience exposition led by Hanhwa Group
Jun. - Supported 300 children and juveniles for watching of performance by Mast Media Co.,Ltd., Blue Man Group - Invited working personnels and fine arts lecturers for 20 community centers for children and conducted orientation for Dream Art Workshop - Started "Nationwide Itinerary Concert Juveniles Shelter Facility Support" led by Maya, the public relations singer
Jul. - Established the 2nd Hiddink Dream Field, a soccer field dedicated for visually disabled in Handong University of Pohang - Conducted ceremony of agreement for joint with Hunet Co.,Ltd. and Hope Lever Campaign - Executed special study program on branch school(Pangyo middle school) in alienated area for 4 nights 5 days with Pronesis Sharing Practice Group of
- Conducted "Sweet Silver", a joint campaign between Calvin Klein-Metro News led by 10 celebrities
- Started support of the performance of "Alegria" for estranged children and juveniles of 2008, a Cirque du Soleil - Conducted "Dancing Baseball Player", a vocation experience project of 1 night 2 days led by Hanhwa Group - Executed support for social welfare facility A Span Library establishment and estranged children study, a campaign of Hope Lever - Started "KB Hope Gongbubang - KB Study Star" project, community centers for children study support
Nov. - Conducted "Happiness Baking Pizza Party" for 150 disabled led by Papa John's - Executed support of "2010 High Gongbubang", a music treatment project which is for low income household estranged children
Dec. - Executed the 3rd Seoul Auction White Sale, a charity auction performed led by Cho Young Nam - Conducted "Dream Art Workshop Excellent Works Exhibition" for 7 days - Started "KB Hope Gongbubang - KB Study Sharp" project, a project of study support for community centers for children - Conducted "Low Income Household Children English Camp" for 5 days in support of 100 estranged children - Executed "FAPLE Sharing Campaign", a fund-raising for school uniform support led by Adigm
>5
< 2008 Highlights > 2009 Major Strategies
2009 Major Strategies Through SWOT analysis on outside environment and inside environment, we set up year 2009 foundation goals. Kids&Future secures sustainability of the foundation by establishing strategies by the goals of next year by analyzing the yearly activities of previous year each year.
●⊙ Strategies by the Foundation Goals
Strengthen the stance as specialized foundation for corporate social responsibility ● Sustainably maintain and extend social contribution projects of existing project company partners ● Sustainably develop social responsibility projects of large companies and multi-nationality companies ● Establish domestic corporate social responsibility related communities
Develop and lead major social issues in children and juveniles field ● Develop niche field and tune up social issues in social welfare, education and culture ● Strengthen expertise and social effects via joints and networks by the projects
Obtain stable financial source for new leap of the foundation ● Prepare stable operating foundation for the foundation by activating donations both on-line and off-line ● Build up capability for the development of individual donors and foundation operating cost donors
Systematically prepare 10th anniversary of the foundation for 2010 ● Evaluate foundation operation for the 10 years ● Conduct business for 10th anniversary commemoration project ● Establish long time development plan for sustainable growth of the foundation
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2008 Projects Review In view of 2008 project activities, it is notable that the scales are extended across the project. Kids&Future supported some 900 social welfare facilities for 25,000 or so children and juveniles with 40 groups, and 68 advisory/collaborating organizations for one year. Not specified as they were in the projects overview below, there have been support of goods like performance ticket and sports items etc to about 1,000 children as other support. The projects expenditure represents the sum of 2007 carryover project expenditure and 2008 new donation amounts, and with ‘project period’ of each project explanation the total conducted period, all the evaluations were done only on the basis of 2008 activities.
●⊙ 2008 Overview Table (Unit: EA, Won, Persons)
No. of Projects
No. of Sponsored Groups
Project Expenditure
No. of Beneficiary Children and Juveniles
No. of Beneficiary Working Personnels
No. of Beneficiary Organizations
Volunteers
No. of Collaborating Groups
Planning Allotment Project
12
11
1,272,241,996
24,082
573
539
831
26
★★★★☆
Sponsorship Allotment Project
9
10
383,217,339
192
135
144
48
0
★★★☆
Community Support Project
6
8
738,313,191
600
0
15
0
42
★★★☆
Fund Development Project (Event/Campaign)
4
11
29,282,013
404
14
218
39
0
★★★
Total
31
40
2,423,054,539
25,278
722
916
918
68
★★★☆
Class
Degree of Meeting Internal Conditions1)
※ Star points assignment : ☆ 0.5, ★ 1.0
If project expenditures are divided into 4 project fields, planning allotment project is shown to take up the largest proportion. The reason is because most of planning allotment project is operated through periodic program, and about 24,000 which take up 95% of the entire children and juveniles are supported. Kids&Future largely classifies project expenditure items into 8 execution fields. Next year carryover amount, which occurs because projects by the business are long projects by multiple years project agreement with sponsoring company, is used consecutively, being carried over to applicable purported project. In 2008, it was shown that less than average 5% were used as operation and management cost, and most were used as pure support amount and program activity cost, with expenditure operation based on beneficiaries. Such amount, if carryover is excluded, runs for up to 84%.
1) Kids&Future pursues to include volunteer participation, manual and evaluation report composition, advisory and collaboration opinion reflection, proper use of budget and analysis of change of beneficiary subjects as required items in all projects, and depending on whether the requirements are met, executes self-assessment of project.
>7
< 2008 Projects Review
●⊙ Expenditure Table by the Project/Execution (Unit: Won)
Class
Total Amount by Project Field
Support Amount
Education /Workshop
Monitoring and Evaluation
Program Activity
Public Relations
Project Operation
Project Management
2009 Carryover
Total Amount by Execution Field
2,423,054,539 1,144,686,801
42,941,676 288,207,458
23,047,400 102,852,043
17,330,897
95,934,824
708,053,440
Planning Allotment Project
1,272,241,996
457,590,861
40,083,036 227,381,688
23,047,400
67,075,050
15,763,557
74,600,000
366,700,404
Sponsorship Allotment Project
383,217,339
223,170,230
2,858,640
60,625,450
0
0
953,740
15,200,032
80,409,247
Community Support Project
738,313,191
451,874,000
0
0
0
31,559,093
226,000
2,310,740
252,343,358
Fund Development Project (Event/Campaign)
29,282,013
12,051,710
0
200,320
0
4,217,900
387,600
3,824,052
8,600,431
●⊙ Tree of Expenditure Composition by Projects/Execution Fields 2009 carryover
52.51
%
Community support project
1.21%
30.47
%
15.82%
29.22%
Planning allotment project
Fund development project Sponsorship allotment project
Status by the Project Fields
Excellent Support Case
47.24%
Support amount
1.77% Program activity
Project management
11.89% 3.96%
Education/Workshop 0.95%
Monitoring and evaluation Project operation
0.72%
4.24
%
Public relations
Status by the Execution Fields
Goh Seong-Jin(alias, 10, Gwangju Jinwol Children Center) that participated in Dream Art Workshop
Seong-Jin, a child of a low income family with both parents working, has been living mostly at school and at the center. Optimistic and feeble-natured, he was very slow in speech and action in the center and could not remain concentrated on one thing easily, and with serious forgetfulness, he barely could arrange anything. Even if reproached, he forgot soon, and often was reprimanded for teasing other weak child with words and action. During Dream Art Workshop, at first, he did not have any eye contact with the teacher but acted with his head bowed, and during conversation, he looked unstable, shaking his body to the left and to the right. In addition, with low task executing ability and problem solving ability, he had hard times expressing his own emotion or feeling if not stimulated or helped by lecturer, showing very little motivation to do on his own all the time. Somehow, as the sessions of fine arts activity went on, the kid so passive in using fine arts materials grew active in his action, exploring and using materials diversely and demonstrated positive interactions with group members, shrunk and unstable behavior reduced. In particular, while drawing picture with ink in 'world in black and white', the 15th session, the kid who always used to be so dependent to the help of nearby adults and hesitant in action acted so boldly without expecting any help or showing any hesitation, instead completing over 5 sheets of practice sheets with affirmative subjects, and with a remark saying that he liked his last work, he submitted 'A Man with Beard', his work. Since then, he demonstrated sense of confidence in his expressions and his degree of completing works rose, using more diverse scope of colors as the session progressed.
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2008 Transparent Fund Raising Result Total fund raised during the one year of 2008 is 2,155,930,831 won. Due to the contribution by sustainable increase of group contribution, in particular increase in small amount individual donors and extension of goods donation, the fund raised increased 21.49% over previous year. Individual donors amounted totally up to 930 persons, and as a result of various campaigns and events to activate working class donation culture, 500 persons that fall within 54% of total individual donors started donation from 2008. While individual donation amount takes up 7.27% the entire fund raised, group fund raised amount was 87.35%, showing biased trend, and that is because the characteristics of the operation of the foundation that has been conducting business mostly with focus on entrepreneurial social contribution projects were reflected, and to activate individual donation culture and to obtain stable source of fund for the foundation, we are planning to develop individual fund raising development more actively. Goods donations, 116,028,500 won which is an increase of as much as 587.8% over 2007, took up 5.38% the total amount.
●⊙ Trend of 2008 by the Months In view of the trend of year 2008 by the months, it is shown that in the case of individuals, fund raising was conducted comparatively regularly, however in the case of groups, irregular increase and decrease repeated. Such trend resulted from fund raising according to the progress of entrepreneurial social contribution project, and in particular, in September, a great deal of new entrepreneurial social contribution funds were raised, temporarily showing steep rising curve. On the other hand, in May, group donation amount entered in distributed condition between the months before and after, so amount of fund raised was summarized plummeted. Monthly average funds raised were 13,054,162 won in the case of individuals and 156,937,699 won in the case of groups.
2008 Status of Donation Amount by the Months
Individuals
Goods
2008 Composition of Totals by the Donation Types Group
Amount (unit: won)
Sum
87.35
%
Goods
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sept.
Oct.
Nov.
5.38%
7.27%
Group
Individuals
Dec.
●⊙ Individual Donors Statistics By the Gender Class No. of donors (persons) Fund raised amount (won)
Male
Female
No response
Others
Sum
581
321
31
-
933
99,915,180
52,299,824
2,467,710
1,967,232
156,649,946
In the case of individual donors, males were 62.27% and females 34.41%, and thus the ratio of donation participation is higher with males than females.
>9
< 2008 Transparent Fund Raising Result
By the Age Class
Teen
20s
30s
40s
50s
60s
No response
Others
Sum
No. of donors (persons)
1
104
481
238
54
24
31
-
933
Fund raised amount (won)
5,000
9,589,824
56,300,180
47,340,000
18,150,000
20,830,000
2,467,710
1,967,232
156,649,946
Across all the age ranges, 30s took up 51.55% of all, showing the largest distribution. By the Regions Region
Kangwon
No. of donors (persons) Fund raised amount (won)
Gyeon ggi
1
Gyeong sang
Gwang ju
Dae jeon
Daegu
Busan
25
3
1
3
2
240,000 3,940,824
160,000
50,000
245,000
330,000
Seoul
2
Ulsan
856
70,000 145,279,180
Incheon 1
Chung No Others cheong response
4
4
20,000 1,490,000
31
Sum
-
933
390,000 2,467,710 1,967,232 156,649,946
In view of the statistics by the regions, it was shown that 95.54% of individual donors are living intensively in Seoul region. Donation Period Donation Period
Below 6 months
No. of donors (persons) Fund raised amount (won)
Below 1 year
Below 2 years
Below 3 years
Over 3 years
Others
Sum
83
418
115
290
27
-
933
10,613,714
47,864,000
29,270,000
37,705,000
29,230,000
1,967,232
156,649,946
Donation Frequency Donation Period
Regular
Temporary
Other
Individual donors of less than 1 year take up
Sum
over 50% of all, and the ratio of regular No. of donors (persons) Fund raised amount (won)
883
50
-
933
145,752,000
8,930,714
1,967,232
156,649,946
donors, 94.64%, takes up higher proportion than temporary donors.
●⊙ Group Donors Statistics By the Industries
Group Donors List (In the Ascending Order of Donated Amount)
Business Type
No.
Construction
3
100,000,000
Amount
Finance
8
1,273,680,000
Media
1
18,000,000
Service
2
291,219,567
Sports
1
14,003,840
Logistics
4
1,444,013
Electronics communication
2
65,442,160
Pharmaceutical
1
54,941,820
Consulting
4
13,320,672
Fashion
1
6,000,000
IT
3
11,010,000
Others
1
34,190,313
Sum
31
1,883,252,385
일양무역
Companies and groups of various types are participating in donation, and in particular, finance field, 25.81%, takes up high percentage.
10 <
2008 Account Settlement Overview (Revenue and Expenditure) Other revenues
Carryover
0.68%
61.83
33.57 %
%
1.16%
Donation revenue Carryover
29.54%
Last year expenditure
Last year revenue
52.26%
1.07% 0.91 %
2.76%
Office expense
Property revenue
Carryover
%
1,107,746,924won
33.57%
90,927,393won
2.76%
Last year revenue
38,342,325won
1.16%
Sub-total
2,039,902,331won
61.83%
Donation Individual revenue Group
156,649,946won
4.75%
1,883,252,385won
57.08%
22,450,964won
0.68%
3,299,369,937won
100%
Revenue Total
Property organizing cost Payables
Expenditure
Property revenue
Other revenues
16.05
% 0.17
Revenue
Project cost
Office expense Property organizing cost Project cost Last year expenditure Payables Carryover Expenditure Total
529,545,142won
16.05%
30,141,500won
0.91%
1,724,234,646won
52.26%
35,313,274won
1.07%
5,640,390won
0.17%
974,494,985won
29.54%
3,299,369,937won
100%
Donation revenue of 2008 revenues represents the sum of only pure cash donations excluding 116,028,500 won, goods donation amount, and â&#x20AC;&#x2DC;2008 Transparent Fund Raising Resultâ&#x20AC;&#x2122; of this report will show detailed fund raising analysis.
> 11
< 2008 Account Settlement Overview > Audit Report
Audit Report ●⊙ Internal Auditors’ Report
accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
The principal etc executed auditing of all the proof documents and
presentation. We believe that our audits provide a reasonable
books on the work execution contents, revenues and expenditures
basis for our opinion.
of Kids&Future, social welfare foundation for the fiscal year from Jan. 1, 2008 to Dec. 31, 2008 according to general auditing criteria
In our opinion, the financial statements referred to above present
in compliance with Social Welfare Corporation Financial
fairly, in all material respects, the financial position of the
Accounting Rule Article 42 provision. The contents of work
Foundation as of December 31, 2008 and 2007, and the changes in
execution and each item of account settlement were accurate, and
its net assets and its cash flows for the years then ended, in
the account processes were appropriate.
conformity with accounting principles for private, non-profit and social welfare corporations established under the Social Welfare
Mar. 3, 2009
Act of the Republic of Korea and, where applicable, accounting
Auditor, Baik Young Bae Chair of Yoo Young Industry Co., Ltd.
principles generally accepted in the Republic of Korea .
Auditor, Choi Kyung Soo Certified Public Accountant of Samkyeong Accounting Corporation
Our audits also comprehended the translation of Korean won
Kids&Future, Social Welfare Foundation
amounts into U.S. dollar amounts and, in our opinion, such translation has been made in conformity with the basis in Note 2. Such U.S. dollar amounts are presented solely for the convenience of readers outside of Korea.
●⊙ Independent Auditors’ Report Accounting principles and auditing standards and their application To the Board of Directors of Kids & Future
in practice vary among countries. The accompanying financial statements are not intended to present the financial position,
We have audited the accompanying balance sheets of Kids &
results of operations and cash flows in accordance with accounting
Future (the "Foundation") as of December 31, 2008 and 2007, and
principles and practices generally accepted in countries other than
the related statements of activities and cash flows for the years
the Republic of Korea. In addition, the procedures and practices
then ended, all expressed in Korean won. These financial
utilized in the Republic of Korea to audit such financial statements
statements are the responsibility of the Foundation’s
may differ from those generally accepted and applied in other
management. Our responsibility is to express an opinion on these
countries. Accordingly, this report and the accompanying financial
financial statements based on our audits.
statements are for use by those knowledgeable about Korean accounting procedures and auditing standards and their
We conducted our audits in accordance with auditing standards
application in practice.
generally accepted in the Republic of Korea. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
Mar.11, 2009
Kids&Future is receiving verification of transparency by executing outside inspection by certified accounting corporation once a year, and has been conducting outside inspections 7 times so far since 2002. The foundation keeps it a rule to receive auditing by a company within top 5 accounting corporation in Korea in joint agreement with top 5 accounting corporations in the U.S. which is a requirement for partner of International Youth Foundation(IYF).
12 <
Financial Statements
BALANCE SHEETS DECEMBER 31, 2008 AND 2007
Translation into U.S.dollar(Note 2)
Korean won in thousands 2007
2008
2008
ASSETS Current assets: Cash and cash equivalents(Notes 2, 4 and 5)
￦
Short-term financial instruments(Notes 2, 4 and 9)
557,747
￦
974,495
US$
774,946
2,450,000
600,000
477,137
78,080
92,332
73,425
3,085,827
1,666,827
1,325,508
Investments(Notes 2, 6 and 9)
870,660
2,181,899
1,735,108
Leasehold and other refundable deposits(Note 9)
201,250
201,250
160,040
88,618
101,578
80,777
(62,455)
(60,261)
(47,921)
26,163
41,317
32,856
Other receivables Total current assets
Property and equipment, at cost Less: accumulated depreciation Property and equipment, net(Notes 2 and 7) Total assets
￦
4,183,900
￦
4,091,293
US$
3,253,512
￦
28,223
￦
10,250
US$
8,151
LIABILITIES AND NET ASSETS Current liabilities: Other payables Withholdings
7,090
10,343
8,225
35,313
20,593
16,376
15,327
-
-
50,640
20,593
16,376
Unrestricted(Note 3)
687,907
355,874
283,001
Temporarily restricted(Notes 3 and 10)
445,353
714,826
568,450
Permanently restricted(Notes 3 and 9)
3,000,000
3,000,000
2,385,685
4,133,260
4,070,700
3,237,136
Total current liabilities Severance and retirement benefits(Note 2) Total liabilities Net assets :
Total net assets Total liabilities and net assets
￦
4,183,900
￦
4,091,293
US$
3,253,512
> 13
< Financial Statements
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
Translation into U.S.dollar(Note 2)
Korean won in thousands 2007
2008
2008
Cash flows from operating activities : Net increase (decrease) in net assets per statements of activities
￦
115,159
￦
(62,560)
US$
(49,750)
Adjustments to reconcile net increase (decrease) in net assets to net cash provided by operating activities : Depreciation
6,594
12,824
10,198
15,326
29,768
23,672
(11,237)
(8,936)
36,364
-
-
Loss on retirement of property and equipment
-
9
7
Payment of severance and retirement benefits
(4,368)
(45,095)
(35,861)
Decrease (Increase) in accrued income
197,769
(36,706)
(29,189)
Decrease (Increase) in other receivables
(25,615)
22,452
17,854
17,683
(17,973)
(14,292)
3,227
3,253
2,587
Total adjustments
246,980
(42,705)
(33,960)
Net cash provided by operating activities
362,139
(105,265)
(83,710)
Provision for severance and retirement benefits Gain on valuation of financial instrument Loss on sale of property and equipment
Increase (Decrease) in other payables Increase in withholdings
Cash flows from investing activities : Withdrawal of short-term financial instruments
￦
1,800,000
￦
2,450,000
US$
1,948,311
Withdrawal of long-term investment securities
1,099,975
-
-
Acquisition of short-term financial instruments
(2,750,000)
(600,000)
(477,138)
(14,343)
(27,987)
(22,256)
(700,000)
(1,300,000)
(1,033,798)
(564,368)
522,013
415,119
-
-
-
(202,229)
416,748
331,409
759,976
557,747
443,537
Acquisition of property and equipment Acquisition of long-term investment securities Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
￦
557,747
￦
974,495
US$
774,946
14 <
STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
Translation into U. S. dollar(Note 2)
Korean won in thousands Temporarily restricted
Unrestricted 2008 Revenues, gains and other support(Note 2) : General donations Designated donations(Note 10)
￦
Commodity donations Stock donations Interest income(Note 10) Other revenues, net Functional expenses: Programs : Guide star activity General social welfare activity Public activity Designated donation activity General and administrative expenses(Note 8) Other expenses, net Total expenses Reclassification(Notes 3 and 10) Increase (Decrease) in net assets Net assets at beginning of year Net assets at end of year 2007 Revenues, gains and other support(Note 2) : General donations Designated donations(Note 10)
￦
174,163
US$
138,499 1,484,150 -
148,758 11,291 334,212
694
-
1,867,013
-
149,452 11,291 2,201,225
118,849 8,979 1,750,477
1,597,540 1,597,540 269,473 445,353 ￦ 714,826
3,000,000 ￦ 3,000,000
20,000 80,299 26,396 1,597,540 539,541 9 2,263,785 (62,560) 4,133,260 ￦ 4,070,700
US$
15,905 63,856 20,991 1,270,410 429,058 7 1,800,227 (49,750) 3,286,886 3,237,136
￦
￦
￦
US$
465,724
￦
-
1,866,319 -
￦
Designated donation activity General and administrative expenses(Note 8) Other expenses, net Total expenses Reclassification(Notes 3 and 10)
￦
-
￦
Functional expenses : Programs : Guide star activity General social welfare activity Public activity
-
Total
1,866,319
539,541 9 666,245 (332,033) 687,907 355,874
Other revenues, net
￦
Total
-
20,000 80,299 26,396
Commodity donations Stock donations Interest income(Note 10)
Increase (Decrease) in net assets Net assets at beginning of year Net assets at end of year
174,163
Permanently restricted
1,120,950
-
146,028 9,890 621,642
891
-
1,121,841
150,000 195,649 31,491 380,990 36,364 794,494 87,626 (85,226) 773,133 687,907
￦
465,724
496,402
-
1,120,950 146,919 9,890 1,743,483
1,194,788 156,597 10,541 1,858,328
-
-
150,000 195,649 31,491
159,881 208,537 33,565
833,830 833,830 (87,626) 200,385 244,968 445,353
3,000,000 ￦ 3,000,000
833,830 380,990 36,364 1,628,324 115,159 4,018,101 ￦ 4,133,260
888,755 406,086 38,759 1,735,583 122,745 4,282,777 4,405,522
US$
> 15
Financial Statements
NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
1. GENERAL Kids & Future (the "Foundation") is a non-profit organization established on March 28,
trading, available-for-sale and held-to-maturity securities depending on the
2000 in accordance with the Social Welfare Service Act of the Republic of Korea, which
acquisition purpose and nature. As of December 31, 2007 and 2008, securities owned
was originally funded by contribution of KTB Network Co., Ltd. (KTB Investment &
by the Foundation consist of available-for-sale and held-to-maturity securities.
Securities), Virtualtek, Daum, Auction, Handysoft and others in Korea. It is dedicated to
If the maturity of the debt and equity securities is within one year from the balance
improve the condition and prospects of Korean children and youth.
sheet date, it is presented as a current asset (See Note 6).
f. Property and Equipment 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Property and equipment are stated at acquisition cost, which includes the expenses
a. Basis of Presentation of Financial Statements
directly related to ready the property or equipment for its intended use. Major
The Foundation maintains its official accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in conformity with the accounting principles generally accepted in the Republic of Korea and reporting practices applicable to private, non-profit and social welfare organization in the Republic of Korea. Certain accounting principles applied by the Foundation that conform with financial accounting standards and accounting principles in the Republic
renewals and betterments, which prolong the useful life or enhance the value of assets, are capitalized. The Foundation does not capitalize financing cost associated with acquisitions, construction and development of assets but is expensed as incurred. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over 5 years (See Note 7).
of Korea may not conform with accounting principles generally accepted in other
g. Impairment Loss on Assets
countries. Accordingly, these financial statements are intended for use by those who
When the recoverable amount is significantly less than the carrying value of
are informed about Korean accounting principles and practices. The accompanying
investment, property and equipment due to obsolescence, physical damage, decline in
financial statements have been condensed, restructured and translated into English
market value or other causes, except for the assets recorded at fair value in the
with certain expanded descriptions from the Korean language financial statements.
balance sheets, the difference between the recoverable amount and the carrying
The accompanying 2008 financial statements of the Foundation were approved at the
value is recorded in other expense as impairment loss. Accumulated impairment loss
board of directors’ meeting on March 11, 2009.
is reflected as a contra account to the related asset and there is no appropriated
The accompanying financial statements are stated in Korean won, the currency of the
amount on impairment loss in prior and current years.
country in which the Foundation was established and operates. The translation of
h. Accrued Severance and Retirement Benefits
Korean Won amounts into U.S. dollar amounts is included solely for the convenience of readers outside of the Republic of Korea and has been made at the rate of ￦257.50
In accordance with the Foundation's policy, all employees were entitled to receive
to US$ 1.00 at December 31, 2008, the Base Rate announced by Seoul Money
current rates of salary and length of service. The accrual for severance and
Brokerage Services, Ltd.
retirement benefits is computed as if all employees were to terminate at the balance
The significant accounting policies followed by the Foundation in the preparation of its
sheet dates. After internal deliberation, the Foundation has an intermediate
financial statements are summarized as follows :
calculation for the accrual for severance and retirement benefits to all employees
b. Adoption of Statements of Korea Accounting Standards ("SKAS")
from current year.
Through December 31, 2008, Korea Accounting Standard Board has promulgated the
The accrual for severance and retirement benefits amounted to ￦15,327 thousand as
Statements of Korea Accounting Standards ("SKAS") No.1~25. SKAS No. 1~25 (except
of December 31 2007. Actual payments for severance indemnities amounted to ￦10,264 thousand and ￦45,095 thousand for the years ended December 31, 2007 and
11) were adopted by the Foundation on or before January 1, 2008.
c. Classification of Cash Equivalents Marketable securities and short-term financial instruments, which are readily
lump-sum severance payments upon termination of their employment, based on their
2008, respectively.
i. Revenue & Expense Recognition
convertible to cash, whose risk of value fluctuation arising from changes of interest
Donations are recognized as revenue at fair value when the donations are
rate is not material and have maturities (or date of redemption) of three months or
substantially received. Generally, revenues are recognized when cash is received
less from the balance sheet date are regarded as cash equivalents.
rather than when earned and expenses are recognized on accrual basis.
d. Financial Instruments Financial instruments such as time deposits and restricted bank deposits, which are
3. CLASSIFICATION OF NET ASSETS
traded by financial institutions and held for short-term cash management purposes or
Donations received, revenues and functional expenses are classified based on the
will mature within one year, are accounted for as short-term financial instruments.
existence or absence of donor-imposed restrictions. Accordingly, the activities and
Financial instruments other than cash equivalents and shorts-term financial
net assets of the Foundation and changes therein are classified and recorded as
instruments are recorded as long-term financial instruments.
follows :
e. Investment Securities
a. Unrestricted net assets : Net assets that are not subject to donor-imposed
Debt and equity securities are initially stated at their acquisition costs (fair value of
stipulations.
considerations paid) including incidental cost incurred in connection with acquisition
b. Temporarily restricted net assets : Net assets whose usage has been limited
of the related securities using the weighted average method and classified into
by donors to a specific time period and/or purpose. When the donor restriction
16 <
expires, which is when a stipulated time restriction ends or purpose restriction is met, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.
6. INVESTMENT SECURITIES Investment securities consisting of available-for-sale and held-to-maturity securities as of December 31, 2007 and 2008 are as follows (Korean won in
c. Permanently restricted net assets : Net assets that were contributed when
thousands) :
the Foundation was established. These net assets will be used solely upon the
6-1. Available-for-sale securities
approval of the board of directors and relevant governmental body. Expenses are reported as decreases in unrestricted net assets. Income, gains and losses on investments are reported as increases or decreases in unrestricted net
Investee
Share
assets unless their use is restricted by explicit donor stipulations or by law.
4. CASH AND CASH EQUIVALENTS, AND SHORT-TERM FINANCIAL INSTRUMENTS Cash and cash equivalents and short-term financial instruments as of December 31, 2007 and 2008 are summarized as follows (Korean won in thousands) :
Classification Financial institution Cash and cash equivalents : Cash on hand Ordinary deposits Repurchase agreement
Shinhan Bank KTB Investment & Securities Sub-total Short-term financial instruments : Time deposits Woori Bank Bond Woori Investment Securities Beneficiary certificate Bond
Shinhan Bank Sub-total Total
2007 ￦
807
2008 ￦
Acquisition cost
Fair value
Korean won Carrying value 2007 2008
Kalton 14,000 0.88% ￦ 7,000 ￦ 7,000 ￦ 7,000 Chemistry Kyobo private derivative 500,000 474,874 investment trust Total ￦ 507,000 ￦ 481,875 ￦ 7,000
￦
7,000
Translation into U.S. dollar (Note 2) Carrying value 2008 US$
5,567
474,874
377,633
￦ 481,874
US$ 383,200
The Foundation received the above as a donation in 2002. The donated securities’
Translation into U.S. dollar (Note 2)
Korean won
Equity ratio
face value is ￦500.
2008
243
US$
193
556,940 -
774,252 200,000
615,707 159,046
557,747
974,495
774,946
200,000 800,000 1,150,000
600,000 -
477,137 -
300,000 2,450,000 ￦ 3,007,747
600,000 ￦ 1,574,495
477,137 US$ 1,252,083
6-2. Held-to-maturity securities Translation into U.S. dollar (Note 2) 2007 2008 2008 Classification Maturity Face value Book value Face value Book value Book value Beneficiary More than 1 year ￦ 463,636 ￦ 463,636 ￦ - ￦ - US$ certificate and less than 5 years Bonds 200,024 200,024 1,100,025 1,100,025 874,771 〃 Sub-total 1,600,000 663,660 1,100,025 1,100,025 874,771 Bonds over 5 years 200,000 200,000 600,000 600,000 477,137 Sub-total 200,000 600,000 600,000 477,137 ￦ 863,660 ￦ 863,660 ￦ 1,700,025 ￦ 1,700,025 US$ 1,351,908 Total Korean won
5. RESTRICTED CASH AND CASH EQUIVALENTS Cash and cash equivalents whose use has been limited by donors to designated activities as of December 31, 2007 and 2008 are summarized as follows (Korean won in thousands) :
Cash and cash equivalents
Total
The changes in book-value of property and equipment for the years ended December 31, 2007 and 2008 are as follows (Korean won in thousands) :
Translation into Korean won U.S. dollar (Note 2) Bank 2007 2008 2008 Shinhan ￦ 14,769 US$ 281 IYF ￦ 353 Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Shinhan Woori Kookmin Shinhan Shinhan Shinhan Kookmin Kookmin
7. PROPERTY AND EQUIPMENT
27,023 113,572 4,406 21,365 6,468 9,818 5,759 14,398 6,499 15,014 189,599 28,676 457,366
26,594 21,148 83,101 66,084 10,760 8,557 11,046 8,784 9,028 7,179 13,497 10,733 3 2 6,416 5,102 240,488 191,243 6 5 1,100 875 8,290 6,592 12,462 9,910 212,799 169,224 44,925 36 680,868 US$505,755
(2008) Account Designated activity
Love Concert Independent Fund Economy Education Love Sharing Foundation KTB Investment and Securities Project The Spring of Hope Fund Siemens Project Community Chest of Korea Community Chest of Korea and EBS Project Ernest&Young Fund Running Shoes of Hope Fund The Hiddink Foundation KB Bank Study Room Fund MBC ESPN, Sports Toto Fund Adidas Han-Hwa Fund KB Bank Fund KB Bank Fund
Equipment
January 1 Purchase 2008 ￦ 26,163 ￦ 27,987
Disposal
January 1 Purchase 2007 ￦ 18,414 ￦ 14,343
Disposal
￦
Increase by transfer ￦ 12,824 ￦ 9 Translation into U.S dollar (Note 2)
December 31 2008 ￦ 41,317 US$32,856
Increase by transfer ￦ -
December 31 2007 ￦ 26,163
Depreciation
(2007) Account Equipment
￦
-
Depreciation ￦ 6,594
8. GENERAL AND ADMINISTRATIVE EXPENSES Details of general and administrative expenses for the years ended December 31, 2007 and 2008 are as follows (Korean won in thousands) : Korean won
Account Salaries Severance indemnities Employee benefits Responsibility subsidy Travel
2007 ￦ 281,310 21,222 35,422 1,187
2008 ￦ 400,394 29,768 45,282 3,929 2,214
Translation into U.S. dollar (Note 2) 2008 US$ 318,405 23,672 36,010 3,124 1,761
> 17
Public utility charges Taxes and Dues Depreciation Rental Maintenance Seminar Consumable supplies Commission and fee Miscellaneous Total
23,619 6,594 3,458 1,276 1,590 355 4,556 401 ￦ 380,990
35,493 48 12,825 2,541 2,155 275 4,617 ￦ 539,541
28,225 38 10,198 2,021 1,714 219 3,671 US$ 429,058
Financial Statements
11. THE MAIN GRANT AGREEMENTS The Foundation entered into a grant agreement with IYF, whereby IYF shall grant US$126,397 to the Foundation from October 1, 2007 to October 1, 2010 for the support of project to wandering youth, classified as temporarily restricted.
The Foundation entered into a grant agreement with Samsung Securities Corp, whereby Samsung Securities Corp. shall grant ￦380,000 thousand to the Foundation from May 1, 2005 to May 31, 2008 for assistance in education of youth’s economics and security. In connection with this grant agreement, the Foundation received ￦120,000 thousand in 2005, ￦120,000 thousand in 2006 and US$150,602 (￦140,000
9. PERMANENTLY RESTRICTED NET ASSETS
thousand), classified as temporarily restricted.
Permanently restricted net assets as of December 31, 2007 and 2008 are summarized as follows (Korean won in thousands) : The Foundation entered into another grant agreement with Samsung Securities Translation into U.S. dollar (Note 2) 2008 477,137 397,614 1,351,889 159,045 US$2,385,685
Korean won
Account Short-term financial instruments Available-for sale securities Held-to-maturity securities Lease deposits Total
2007 ￦ 1,200,000 1,600,000 200,000 ￦ 3,000,000
2008 600,000 500,000 1,700,000 200,000 3,000,000
Corp, whereby Samsung Securities Corp. shall grant ￦180,000 thousand to the Foundation from September 1, 2008 to August 31, 2009 for assistance in education of youth’s economics and security, classified as temporarily restricted.
The Foundation entered into a grant agreement with Korea Exchange (KRX), whereby Korea Exchange shall grant ￦100,000 thousand to the Foundation from May 1, 2007 to May 1, 2008 for the support of art education of alienation children (Dream Art
10. TEMPORARILY RESTRICTED NET ASSETS
Workshop), classified as temporarily restricted.
Temporarily restricted donations/expenses and temporarily restricted commodity donations are summarized as follows (Korean won in thousands) : Donors Monetary contributions : IYF(Note 11) Samsung Securities The Spring of Hope Fund Korea Exchange The Hiddink Foundation The Hiddink Foundation Love Sharing Foundation Love Concert Fund Community Chest of Korea Community Chest of Korea KTB Siemens Ernest&Young Kookmin Bank(KB) Adidas Community Chest of Korea Calvin klein MBC ESPN, Sports Toto Han-Hwa Community Chest of Korea Kookmin Bank (KB) Community Chest of Korea Total
January 1 2008 (*17)
Donations (*17)
*1 *2 *3 *4 *5 *6 *7
￦ 14,769 113,572 6,438 189,599 4,405
34,198 90,059 85,931 100,000 201,448 100,000 20,355
48,614 120,530 83,341 100,000 250,559 14,000
353 83,101 9,028 140,488 100,000 10,760
*7 *8 *9 *10 *11 *12 *12 *13 *14 *15 *16 *17 *18 *19 *20
27,023 14,398 2,779 21,365 9,908 6,497 28,676 11,796 5,759 24,511 ￦ 481,495
8,901 2 72,684 103,353 60,007 16 12,077 15,262 18,000 100,023 180,000 502,644 104,019 1,808,979
9,330 14,400 2,779 83,003 99,764 60,088 28,686 14,999 21,018 24,511 16,900 87,561 180,000 289,845 59,094 1,609,022
26,594 11,046 13,497 6,416 6 8,874 3 1,100 12,462 212,799 44,925 681,452
Activities
Expenses (*18)
The Foundation entered into a grant agreement with Kookmin Bank (KB), whereby December 31 2008
*1: Upgrade your future *2: Economy Education *3: Scholarship Enterprise *4: Dream Art Workshop *5: Support to visually handicapped *6: Dream Soccer Class *7: Private Fund *8: Late fruit keeps well *9: GO!ARTI! *10: Support to dysfunctional family *5: Support to visually handicapped *6: Private fund *7 :Support to designated organization *8: Late fruit keeps well *9: GO!ARTI! *10: Support to kids of dysfunctional family *11: Love Kids Fund *12: Support to study room and others *13: Support to sports *14: Plus I Project *15: Alternative School *16: Sports and Hope *17: Catch Your Dream *18: Kids English Camp *19: KB Study *20: Sharing +
Donations included interest income of ￦511 thousand.
Kookmin Bank has decided to support college student mentoring programs and learning specialization programs from September 1, 2008 to October 1, 2009 through the project "KB Hope Studyroom, Study Star, Sharp".
18 <
Foundation Operation ●⊙ Organization Chart
Children and Juveniles of the World
Chief Executive Officer
CEO
Song Ja | Advisor, Daekyo Co., Ltd.
Deputy CEO
Lee Jae Hong | CEO, Taeseong Company Consultation Co.,Ltd.
Director
Kim Han Sub | CEO, KTB Securities Co., Ltd. Kim Hae Rhyun | CEO, Adigm Co., Ltd. Sohn Kyung Hee | Professor Emeritus, Yonsei University
100 persons committee
Chung Moo Sung | Dean, Social Welfare Graduate School of Soongsil University Joo Tae San | CEO, Max Movie
Executive Director
Operation Director Yang Ok Kyung | Professor, Department of Social Welfare, Ehwa Woman's University Auditor
Strategic Alliance Department
Public Relations Fund Development Department
Planning allotment project
Public relations publishing project
Sponsorship allotment project
Fund development project/on-line fund raising development
Community support project Research development evaluation project Employees education workshop
Company CSR consulting Donors management Domestic and overseas network project
Choi Kyung Soo | Partner, Sam Kyeong Accounting Corp
Management Planning Department Board of directors and committee members support General affairs, human resource organization work Finance and accounting management
Baik Young Bae | CEO, Yoo Young Industry Co., Ltd.
100 Persons Committee
In order to support the development and supply of programs actually needed for children and juveniles of the world being conducted through practical participation of Noblesse Oblige, Kids&Future is operating 100 persons committee participated by venture and company CEOs and experts.
Assets management Basic property, fund and donors management
Executive Office : 16 persons (100% regular employees) Executive Director (1 person) : Overall supervision of executive office
●⊙ Internal Members Board of Directors
Board of directors is the top decision making organization of Kids&Future. Compose of totally 10 persons, 8 directors including 1 operation director and 2 auditors including chief director, board of director evenly consists of company executives and non-profit fields professors with prolonged experiences and extensive specialized knowledge on overall aspects of foundation operation. Board of directors is offering sustainable vision so that Kids&Future may be in transparent and healthy operation and fulfill its responsibility and duty for the socially disadvantaged based on their experience and expertise on the operation of companies and non-profit organization.
Strategic Alliance Department (7 persons)
Public Relations Fund Development Department (6 persons)
Management Planning Department (2 persons)
The fragrant story of heart in the CI of â&#x20AC;&#x2DC;Kids&Futureâ&#x20AC;&#x2122; Knowing the warm heart of donors
that wish to deliver love and the yearning minds of estranged children
that are headed for dream, Kids&Future
flaps its wings of happiness today as well.
The three images of heart that were integrated to one for a future full of hope blooms beautiful flower
of miracle, hope by becoming fragrant flower leaves.
Note: The CI of Kids&Future is registered with Korean Intellectual Property Office with registration No.0125731 for service mark.
Issued Date Mar. 31, 2009
Publishing Company Kids&Future
Publisher Song Ja
Editor Park Du Jun
Planner Lee Young Mi
KIDS & FUTURE FOUNDATION 5th FL Nunnopi Boramae Center 729-21 Bongcheon dong, Gwanak gu, Seoul city, R.O.Korea tel 02-843-8478~81 fax 02-843-8482 e-mail kidsfuture@kidsfuture.or.kr www.kidsfuture.or.kr www.donation.or.kr