The ‘FPE Fund’ Story

2nd RAC Visayas Meeting Bohol Tropics Resort

Tagbilaran City, Bohol

November 27-29, 2014

“Ang Kuwento sa Kuwenta”

Presentation Outline

• Beginnings of the Fund - Establishment of the FPE Environmental Endowment Fund

• FPE Milestones - Creation of FPE and the MOU for Fund Management

• FPE Finance Highlights - CY 1994 to FY 2013-2014

- Grants Approved

- FPE Special Projects and Funds Facilitated

• Fund Valuation & Utilization

Beginnings of the Fund

US$125 Million

NRMP Grant

Agreement Phase I

signed on Sep 28,1990

US$25 Million max

Natural Resource Protection

Component – to conserve

biological diversity & enhance

sustainable natural resources

management

Jan-1992: US$5 M

1st Debt Swap which bought

debt papers worth US$ 7.97

Million

Sep-1993: US$13 M

2nd Debt Swap which bought

debt papers worth US$ 13.76

Million

Beginnings of the Fund Total Debt Swap +

Bank of Tokyo

Donation

$21,731,745.4

0

119,590.15

$21,851,335.5

5

FPE Endowment Fund

P566,532,293.2

4

3,276,772.00

P569,809,083.2

4

FPE Endowment Fund

In US Dollars:

USAID => $21,731,745.40 ~P26.069 Bank of Tokyo => 119,590.15 ~P27.400 US$ 21,851,335.55

~ P26.0766 In Philippine Peso:

USAID => P 566,532,293.24 Bank of Tokyo => 3,276,772.00 Php 569,809,083.24

FPE Milestones January 1992:

FPE is registered with the SEC July 1992:

The officers and members of the first regular Board of Trustees (BOT) are elected to serve for 1992-1996. Fulgencio S. Factoran becomes the first BOT Chairperson

January 1993: Delfin J. Ganapin, Jr. becomes FPE’s first Executive Director

March 1993:

A MOU among the Philippine Government (DOF & DENR), U.S. Government (USAID), and FPE for the establishment of an Environment Endowment is signed. The MOU spells out the purpose of the endowment, stipulates the conditions for the transfer to FPE, and delineates the roles of the parties concerned in safeguarding the fund.

FPE Fund Management Memorandum of Understanding dated March 05 1993:

FPE to contribute, encourage, assist, and provide technical, managerial, and financial support to NGOs, POs and communities for environment protection, natural resource conservation & management, and sustainable development Only the investment income (interest & earnings) of the endowment fund shall be used for environmental activities of NGOs and POs in the Philippines specially focused on BCSD Permissible Investments - Invest the Funds and any interest earned only in special series Central Bank bills; or in such other investments as the parties may agree to in writing Up to 20% of the investment income received in a given fiscal year may be used for administrative purposes

FPE Fund Management

APRIL 1994:

Establishment of the Endowment Fund which was placed in Central Bank special series bills

JUNE 1994:

USAID transfers the full management of the Php569.8 million or US$21.8 million Environmental Endowment Fund to FPE

Memorandum of Agreement dated May 29, 1996:

The DOF and FPE agree in writing to invest the Funds and interests thereon in such investment portfolio that will maximize earnings provided that such portfolio will have prior approval of the FPE BOT

FPE Fund Managers As of JUNE 30, 2014

20%

18%

15%10%

3%

3%

16%

9%

6%

20% AB Cap

18% RCBC

15% MBTC

10% BDO

3% BPI

3% UCPB

16% Falcon

9% LGT

6% Cr.Agrc

FPE Finance Highlights TOTAL ASSETS:

1994 => P634.2 million; 1997 => P711.4 million 2003 => P803.96 million; 2006 => P857.7 million FY2007-08 => P765.8 million; FY2009-10 => P804.8 million FY2012-13 => P855.32 M FY2013-14 => P834.85 M

FUND BALANCE:

1995 => P610.9 million 2000 => P721.7 million In 2006, the fund level of P792.6 million was on its way to breach P800M when the Global Financial Crisis struck in 2007-2008 bringing down the fund level to P712.7 million again FY2012-13 => P789.32 M FY2013-14 => P774.89 M

FPE Statement of Financial Position CY1994 to FY2013-14

0100000000200000000300000000400000000500000000600000000700000000800000000900000000

CY94 CY97 CY00 CY03 CY06 FY

09-

10

FY

12-

13

Liab Gen Fund Restricted

Statement of Financial Position Comparative Results: FY13-14 and FY12-13

ACCOUNTS FY2013-2014 FY2012-2013 Variance

Cash, A/R & Others 16,853,148 20,472,347 (3,619,199)

Fund w/ Invst. Mgrs. 806,657,304 827,096,501 (20.44M)

Property & Equip. 11,334,553 7,754,525 3.58M

TOTAL ASSETS 834,845,005 855,323,373 (20.48M)

Total Liabilities 59,952,062 66,005,460 (6.05M)

Total Fund Balance 774,892,943 789,317,913 (14.42M)

TOTAL Liab. + FB 834,845,005 855,323,373 (20.48M)

Statement of Financial Position Comparative Results: FY13-14 and FY12-13

Liab. & Fund Bal. FY2013-2014 FY2012-2013 Variance

A/Payable & Accruals 6,418,750 9,585,808 (3.17M)

Funds-held-in-Trust 3,746,425 3,191,569 554,856

Grant Liabilities 36,724,224 39,173,523 (2.45M)

Gen Grant Provision 13,062,663 14,054,560 (991,897)

Total Liabilities 59,952,062 66,005,460 (6.05M)

Restricted Fund 584,391,064 578,057,383 6.33M

General Fund 190,501,879 211,260,530 (20.76M)

Total Fund Balance 774,892,943 789,317,913 (14.42M)

TOTAL Liab. + FB 834,845,005 855,323,373 (20.48M)

FPE Statement of Comprehensive Income CY1994 to FY2013-14

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

CY94

CY96

CY98

CY00

CY02

CY04

CY06

FY08

-09

FY10

-11

FY12

-13

Admin PDME Grants Revenues

Statement of Comprehensive Income Comparative Results: FY13-14 and FY12-13

FY2013-2014 FY2012-2013 % inc/(dec)

REVENUES 62,481,979 70,845,138 (11.8%)

EXPENSES (66,857,633) (66,244,411) 0.93%

Other Operating and Comprehensive Incomes:

For Ex Gain 2,418,603

43.65 vs. 43.20 8,827,415

43.20 vs. 42.12

Market Valuation (17,175,911)

6,844 vs. 6,465 25,885,825

6,465 vs. 5,246

Actuarial Gains 3,302,537 -0-

Net Income (Loss) (15,830,425) 39,313,967

FPE Budget Performance FY2013-2014 (Audited)

Revenues =

P62,481,979

Grants App. 40,976,950

PDME 14,235,206

Admin 11,645,477

Total Expenditures =

P66,857,633

Excess R-E =

(P 4,375,654)

GA

62%

PDME

21%

Adm

17%

Exc

0%

FPE Budget Performance JUNE 1994 to FY2013-2014

Revenues =

P1,179,872,486

Grants App. 743,260,600

PDME 176,958,909

Admin 225,980,449

Total Expenditures =

P1,146,199,958

Excess R-E =

P 33,672,528

GA

63%

PDME

15%

Adm

19%

Exc

3%

FPE Grants Approved JUNE 1994 to FY2013-2014

Total Grants =

P743,260,600

Luzon 198,102,336

Visayas 172,374,996

Mindanao 146,261,511

National 178,977,024

EO/Insti 47,544,733

LRU

27%

VRU

23%MRU

20%

EO

6%

Nat'l

24%

FPE: Funds Facilitated / Mobilized Year Amount Amount Particulars

Aug1997 $75,000 PhP 1.709M Ford Foundation – Management of

National Protected Area Sites

Nov1997 $350,000 PhP 9.224M John & Catherine MacArthur Foundation –

Community Forest Program (CFP)

Jun1998 $38,557 PhP 1.177M Keidanren Nature Conservation Fund

Sep1998 $214,939 PhP 8.598M USAID-Phil. Network on Climate Change

Dec1998 $141,609 PhP 5.544M Royal Netherlands Embassy – EnDefense

thru Radio Communication Network

Mar1999 $25,000 PhP 951,250 MacArthur Foundation

Jul1999 $25,000 PhP 957,499 UNDP – preparatory for BMTP

Jan-Aug

2003

PhP 525,440 Haribon, WWF-Phils., CI, DAI Eco Gov –

Counterpart funds for TFCA -> PTFCF

FPE: Funds Facilitated / Mobilized Year Amount Amount Particulars

Feb&Nov

2004

PhP 1.200M Philip Morris Philippines – PMI Fund for

Indigenous Peoples’ projects

Feb2004 PhP 100,000 Mirant Philippines – Mt. Banahaw POs

Aug2005

Jun2006

$10,044

$17,010

PhP 562,315

Php 898,835

Washington State University (WSU) for

Dasol Mangrove Rehabilitation

Nov2007

Feb2008

PhP 315,000

Php 360,000

UNDP thru DENR-ENR CORE for

Zambales IP project (PASS)

Dec2009 PhP 227,824 UNDP – SGP Writeshop for

Proj.Partners

May2010 PhP 750,000 PLDT-SMART Foundation – Punlaang

Bayan for Marikina Watershed Initiative

TOTAL $897,159 PhP29,620,544 + 3,478,264 = PhP33,098,808

FPE: Special Projects Year Amount Amount Particulars

2002 to

Jun2007

PhP 30,907,763 UNDP Bohol Marine Triangle

Conservation Project

Oct2008-

Nov2013

PhP 9,160,881 EU-AnthroWatch Project; Conso. IP

Forest Corridor thru Sustainable

Ancestral Domain Mgt. (CIPFC-SADM)

Mar2010-

Dec2013

E647,991 P 36,929,328 EU-FUNDESO Project; Mainstreaming IP

Participation in Environmental

Governance (MIPPEG); Ext.-NOV2014

Sep2011-

Aug2013

$1.172M P 52,942,543 USAID-FPE Project; Up scaling Forest

Restoration Efforts in KBA; DEC2013

Aug2014-

Jun2017

P9.11M PhP 1,287,349 UNDP GEF SGP5 Responsible Party

TOTAL P 131,227,864 SPECIAL PROJECTS

Fund Valuation & Utilization

P 569,809,065 $ 21,851,336 P 789,317,913 (Jun-2013) $ 18,271,248*

P 774,892,943 (Jun-2014) $ 17,752,416**

Ref. ForEx rate: *Jun-2013 = P43.20/ $ **Jun-2014 = P43.65/ $

P 1,921,092,901 as of Jun-2014

Total Grants Approved => P 743,260,600 64.9%

Total PDME Costs => 176,958,909 15.4%

Total Admin Expenses => 225,980,449 19.7%

P 1,146,199,958 100%

P1,179,872,486 => Cumulative Revenues from Jun-1994

Size of the Fund Original Fund Balance:

P 569,809,065 1.0

As of Dec-2001 As of JUN-2012 As of JUN-2014 Fund Bal. P719.44M 1.26 P748.87M 1.31 P774.89M 1.36 Expenses P456.46M 0.80 P 1.013B 1.78 P 1.146B 2.01 Total* P1,175,898,871 P1,762,447,373 P1,921,092,901 2.06 3.09 3.37 *Total Accumulated Value of the Fund

THANK YOU! www.fpe.ph

THANK YOU! www.fpe.ph