1999 ANNUAL REPORT

1999 was an exceptionally successful year for our children’s charity. For the fifth straight year the organization has experienced a great deal of growth in all areas of operations and programming in addition to suffering a very sad moment. The most prevalent and noticeable growth included the participation of new companies, the ever-growing number of new and past volunteers and the induction of new board members including former Arizona Cardinal's linebacker Garth Jax. In addition, the charity also received an increase in the amount of charitable contributions from individuals, corporations and special events. The saddest moment of our charity's history came on October 6 with the passing of our poster child and "Champion of the Year" Michael Joseph Arias.

This year the organization received more outside financial contributions and, again, received more support through the sale of our charity water at Sun Devil Stadium, Arizona Public Services (APS), Arizona Thunder, the Arizona State Fair and the water club program. Every Kid Counts also rolled out another expansion chapter in Lompoc California this December. In addition, for the second straight year, we implemented EKC’s Interactive Educational Enhancement Program at Carl Hayden Community High School. The charity’s long-standing tradition of service continued with the presentation of the 5^th Annual Christmas Party with the ASU Phi Sigma Kappa Fraternity and the Single Parents Association and the 2^nd Annual Christmas Party in Flagstaff with the help of the NAU Phi Sigma Kappa Fraternity brothers and CASA. The charity president and volunteers ended the year of giving by hosting the 2^nd annual President’s Christmas Party - Food and Toy Drive which was catered by Fine Host Corporation. The event was also supported greatly by Stonecreek Golf Club and American Golf Corporation with the donation of several hundred toys.

Overall the year was another fun and exciting one to say the least. The expectation for fiscal year 2000 is already beginning to unfold and looks to be even better than this past one.

Proudly Submitted,

Robert J. Perelka

President, Every Kid Counts Inc.

Financial Reporting

The following is EKC’s year-end status and the financial programming statement that is being reported to the Corporation Commission and the IRS on our 990 Form for 1999:

Executive Council:             Board of Directors Elected:

Calvin Schexnayder                    Robert Perelka     Mark Gefroh

Gordon Le Blanc                         Garth Jax            Patrice Parker

Mike Gibson                              John Komlos        Joseph & Carla Arias

Sherdrick Bonner                        Dan Perovich       Mike Briody

Mike Muraco                               Steve Chanen       DC Headily

Ken Petersen                             Dave Freeman

President & Executive Director: Robert J. Perelka

Vice President: Calvin Schexnayder

Special Events Director: Mike Long

Volunteer Coordinator: Barbara Kehl

Media/Public Relations: Lori Basa

Communications Director:

Northern Arizona Chapter in Flagstaff - Board of Directors:

Rob Perelka

Dan Perovich

LaDonna Wiley

Sgt. Gerald Blair

Financial Income Activity:

1/1/1998 through 12/31/1998

Corporate Contribution $12,215.47

Individual Donations 7512.93

Grants 12,386.61

Special Events 27,484.28

Product Sales 7,992.00

Income form Credit line: 8,500.00

Subtotal EKC Main Bank One Account Income Categories: $76,091.29

Every Kid Counts of Northern Arizona – Flagstaff

Income Categories: Total:

Fund-raisers/Special events 912.85

Subtotal EKC NAZ Total: $912.85

Total charity income from all accounts: $77,004.03

Interactive Educational Enhancement Program: Over the past five years, EKC Children’s Charity has provided numerous educational, athletic and social enrichment events, mentoring and various support to over forty-five schools, parks and community organizations. In 1996 our Board of Directors requested the establishment of a "Program Development Team" for the purpose of developing educational programs, which resulted in the Interactive Educational Enhancement Program.

The development team’s main focus was to research and design a positive interactive program to be integrated into high school curriculum through synergistic programming, mentoring and community involvement. Program cost: $1,500.

Champion of the Year Program: To best serve the community, especially in the areas of education and special assistance, Every Kid Counts developed the "Champion of the Year Program." This program has been designed to feature young children who have shown great courage through very challenging times. The children are featured as part of our Every Kid Counts, Inc. retail water bottle label program.

For our inaugural champion we chose five-year-old Michael Joseph Arias from Chandler, Arizona to be featured. In April of 1997, Michael was diagnosed with Neuroblastoma cancer, a solid tumor cancer that effects the nervous system. Michael passed away on October 6^th due to complications from his disease. Every Kid Counts has committed to support the Arias Family and we share in their loss. We will miss Michael but we will never forget him. The board of directors has elected to name the "Champion of the Year" program after him.

Program cost: $4,756.

Athlete Intramural & Mentoring Program: Over the past five years, EKC has placed professional athletes in schools for one-time visits. This mentoring program helps the school administrators alleviate the problems that were causing difficulties during the lunch time periods. This past year the program was provided to the campus of Carl Hayden Community High School and consisted of Arizona Thunder Soccer player Greg Archuleta administering a Lunch and After-school Intramural Program.

This proactive approach is designed to build self-esteem, encourage academic growth, reduce absenteeism and keep students from dropping out of school. Carl Hayden High School has been the recipient of this program for this past year. The program has provided this school with very positive results. It has reduced the ongoing fighting on campus to nearly non-existing. The moral and school spirit is beginning to rise and the student involvement in the community is at an all time high. As funding allows, we look forward to the expansion and implementation of other programs to be appropriated in the fiscal year 2000. Program cost: $9,560.

Single Parent’s Association Christmas Party: For the fifth year in a row, brothers of ASU’s Phi Sigma Kappa Fraternity along with the sisters of Kappa Alpha Theta Sorority played host to 44 boys, girls and their parents on December 8^th for our 5th Annual Christmas Party. This party consisted of dinner, games and a special visit from Santa Claus. Each member from the fraternity and sorority contributed a gift for a child and spent the entire evening with that child to help ensure a special evening. This event was a major success and we are looking forward to next year's event. (Rumor has it the adults had as much fun as the children). Program cost: $3,750

Drug Prevention Assemblies: This year we were able to visit a good number of elementary, junior and senior high schools throughout the state of Arizona. Professional athletes visited the schools with the messages of staying away from drugs, the importance of a good education, setting goals, and making the right choices. Program cost: $1,500

Product Donations: In keeping with EKC’s tradition of providing other non-profits and youth groups with support, EKC provided nearly 10,000 bottles of product to other groups for their event programs or fund-raisers. This includes the Phoenix Parks and Recreation, Single Parents Association, Arizona Youth Baseball, CASA and many schools and church groups throughout the state. Program cost: $1,945

Tickets to Events: This past year saw a great deal of support from many of the local professional sports teams such as the Arizona Thunder, Arizona Diamondbacks, Arizona Rattlers. Through their generosity, we were able to provide literally thousands of tickets to underprivileged youths throughout the state of Arizona. Program cost: $23,500.

Equipment/Service Donations: Every year we seek to provide assistance by donating equipment to schools and/or parks and recreation facilities as well as material support. This past year turned out to be a very special one for our organization. EKC not only continued its traditional support of two Valley parks, we also provided materials to the Thomas J. Pappas School and assisted in the purchase of a copy machine for CASA. In addition, EKC supported the efforts of the East Valley Boys & Girls Club by providing a dunk tank, bounce houses and carnival games to support two events they hosted this past summer. Program cost: $6,200.

EKC Toy and Food Drive Christmas Party: On December 12, 1999, Board of Director member Bryant Sewall opened his home once again to the 2^nd Annual EKC Toy and Food Drive Christmas Party. Of the many friends of EKC that were invited, 80 joined in the holiday festivities. In addition, Fine Host Corporation catered this year’s event and provided a fantastic feast for all the participants and American Golf Corporation donated more than 1,300 toys to enhance the cause. We received a good amount of food and an immense amount of toys that benefited several Scottsdale and Phoenix Families and the Thomas J. Pappas School for homeless children. It was a fantastic event and we look forward to holding it again in December 2000. Program cost: $2,323.

Red Ribbon Campaign: This program provides red ribbons and posters to children from grades K - 12 in conjunction with Citizens Against Substance Abuse (CASA). The ribbons signify that the student wearing it will remain drug free. The posters signify the partnerships of organizations and agencies working together and "Teaming up Against Drugs." This event has been on going for the past nine years as part of the National Red Ribbon Campaign.

This event benefits more than 35,000 youths in Northern Arizona. This includes the communities of Freedonia, Flagstaff, Williams, Parks, Tuba City and Page. Every Kid Counts’ roll was to present posters and red ribbons for the communities outside of Flagstaff. In addition, we provided the funding for the professional athletes who visited the schools. The professional athlete participants were Greg Archuleta representing the Arizona Thunder Professional Soccer Team and Oscar Sturgis representing the Arizona Rattlers Arena Football Team to present the posters and ribbons to the kids in the aforementioned communities. The program was a huge success. Program cost: $8,000.

CASA Partnership: Every Kid Counts of Northern Arizona - Flagstaff continues to work closely with CASA on many worthwhile projects. CASA allows EKC to share office space with them while teaming up with various programs benefiting the youth in Northern Arizona.

Children of Single Parents Christmas Event: The Christmas party provided an opportunity for under privileged youth from all over Flagstaff to experience and enjoy some of the Christmas Spirit. This program is a joint venture of EKC, the brothers of Phi Sigma Kappa Fraternity, Pi Beta Phi Sorority, Single Parents Association (SPA) and CASA. This year's event included the pairing up of a big brother and sister from the Greek organizations for the children, dinner, games and a visit from Santa Claus.

We invited 35 youths from Flagstaff to participate in this event and are pleased to report that the event went off without a hitch. The fraternity and sorority both had a fantastic time, the parents had a chance to relax while their kids were being taken care of and, best of all, the kids had a great time. Special thanks to SAM's Club for their fundraising efforts ($2,000) and volunteer help to make this event possible. Program cost: $2,210.

Total Expenses: $2,998

These grants provided assistance in the area of education, athletic and substance abuse awareness programming. With funding of public education on the down swing, EKC is working to do its part in providing alternative funding to ensure the development of our youth’s mental and social environment.

Combined Program Costs: $68,242

5th Annual Celebrity Golf Tournament: Gainey Ranch Golf Club was the sight of this year’s 6th Annual Celebrity Golf Tournament. The event was held on June 18 and brought in $11,868 in revenues. The cost of the tournament $6,147.00. Net Funds Generated: $5,721.00

1999 Arizona State Fair: Through the dedicated efforts of Every Kid Counts’ Volunteer Coordinator Barbara Kehl and all her volunteers, EKC made its third appearance at the Arizona State Fair with an information and products booth. During this 18-day event, we sold a great deal of water and presented may pieces of EKC literature to the fair goers. Everyone did an outstanding job for the charity. The Fair brought in $9,016 in revenues. The cost of this event $5,814.00, (Mainly for product cost and booth rental) Net Funds Generated: $3202.00

Country Thunder USA: In late April, for the second straight year, EKC participated in the biggest Country and Western Show in the state of Arizona. 122 volunteers braved the elements and volunteered nearly 700 hours of community service staffing the VIP Tent.

This event brought in $4,858.00 in revenues. The cost of this event $1,128.00, (Mainly for volunteer shirts and food) Net Funds Generated: $3,730.00

Phoenix Coyotes Fund-raiser: On February 10 the Phoenix Coyotes invited our charity to participate in their 50/50 raffle. Thirty volunteers assisted in selling the raffle tickets. Total funds raised: $588

Arizona Thunder Raffle: During several Arizona Thunder soccer games this past season many volunteers assisted in selling 50/50 raffle tickets. Total funds raised: $752

Wine and Food Tasting: On July 13^th, Kim Melhouse from American Golf chaired EKC’s Inaugural Wine and Food Tasting event at Meza Luna Restaurant. This event brought in $1,045.00 in revenues. The cost of this event $637.00, (Mainly for food and supplies) Net Funds Generated: $408.00

Champion of the Year Water/Lemonade Club: The EKC Products program had another banner year with the addition of private labels for APS and Arizona Thunder. Combining the corporate and the individual participants, the charity received a great deal of support.

Funds Raised: $4700.00

Sam’s Club Promotions and Events: During the year Sam’s Clubs from around the state provided a number of opportunities to promote and assist our charity. In June, Sam’s Club in Gilbert presented Kids Festival One and chose our charity to be the recipient of funds raised from this special community event. This event was a big success and we were proud to help out in the second event on July 10^th, which benefited the Gilbert Boys and Girls Club. This second event offered the opportunity to create a new partnership with this organization. The associates hosted a BBQ, games and rides during the day and members of the Arizona Rattlers and Arizona Thunder joined in by signing autographs and giving away memorabilia.

Funds contributed: $1, 055.

Sam’s Club Helping Hands Campaign: This program was also of benefit to EKC. Through the help of Sam’s Club employees from three valley clubs, EKC was able to raise more than $2,000 that directly effected the lives of underprivileged youth. This program brought in $2,303.00 in revenues. The cost of these events were $320.00, (Mainly for cost of the die and supplies) Net Funds Generated: $1,983.00

Parties Picnics and Promotions: Through the support of Ken Woods, President – Parties Picnics and Promotions, and many volunteers form all over Arizona, EKC was able to generate several thousands of dollars to support its Fall programming. Total Funds raised: $7235.

Coconino County Fair: This Northern Arizona event helped EKC to further spread its message of helping "Today’s Youth become Tomorrow’s Leaders." Response was very positive and EKC passed out many information brochures to help spread the word for Flagstaff and its surrounding communities.

Funds Raised: $973

Sam’s Club Helping Hands Campaign: This program was also of benefit to EKC’s Northern Arizona chapter. Through the help of Sam’s Club employees, EKC was able to raise more than $2,000 that directly effected the lives of underprivileged youth. A portion of the proceeds also went to benefit the Christmas Party for Children of Single Parents held in Flagstaff.

Administrative and office expenses:

Because of low budgeting and funding, EKC has only been able to pay minimal salary expenses to support the charities day-to-day operations. However, the following is the breakdown of the cost of running the charity office:

Salaries Paid:

Executive Directors: (Rob Perelka) $3,450

Associate Director Salary: (Dan Perovich) $2,950

Total $6,400

Operation Expenses:

Office Rent: ($465.50 Per Month) $5,587

Utilities: $ 697

Storage Rental $ 493

Mailings $ 327

Office Supplies: $ 231

Bank Fees $ 138

Volunteer Shirt Printing $ 468

Other Business Expenses: $ 265

Food for meetings: $ 88

Phone Services $1,340

Cell Phones: $2,260

Pagers: $ 91

Office Supplies $1,827

Printing Costs $2,500

General Liability Insurance: $ 812

Auto Loan: $ 973

Truck Down Payment: (Donated by the sale of Dan’s Truck) $3,951

Auto Insurance: $ 793

Auto Repair, Parts and services: $ 640

Total Expenses: $23,481

Total Product Cost: ($22,921)

Total Program Cost: ($68,242)

Total Operational Expenses including Salaries: ($29,481)

Total Inkind Services: $44,220

Total Revenues $77,004

Total Expenses ($74,681)

Surplus/Loss $2,323.00

1999 CONTRIBUTORS

In 1999, EKC was honored to have many supporters of our charity programs. One of our main goals was to provide the most recognition possible for those who have chosen to be partners in our programs. The following are the various businesses that sponsored the charity during the 1999 fiscal year:

Crown Press: For the fifth consecutive year, Crown Press has participated in all aspects of the charity’s operations with support and donations of nearly $10,000 in printing. Mark Gefroh, a partner in the firm, first joined the Board of Advisors in 1996 and has been re-elected to the Board of Directors. His enthusiasm continues to be a great contribution to the communication and development aspects of our programs. We appreciate his dedication and the support of his staff.

Sam’s Club: Patrice Parker and several other clubs throughout Arizona have continued to be of great help and assistance in the development of our program as well as developing new relationships with other kid’s programs. We are greatly appreciative to Patrice who was appointed to the Board of Directors in the last quarter of our 1997 fiscal year. Sam’s Club at 20^th Street and Indian School Road continues to participate and remains a large part of many of our charity events.

Arizona Thunder Professional Indoor Soccer Team: The players and staff joined in partnership with our organization and were inspirational in their participation in our youth outreach and mentoring programs throughout the second half of the year. Participating in the charity program were new board of director member Mike Briody, Mark Kerlin, Mac Magee, Milo Iniguez and Freddy Haase. In addition, Mike also provided thousands of tickets which we presented to many underprivileged youth throughout Arizona. Director of Public Reactions Rick Elder provided a number of memorabilia items that we were able to utilize during our fund-raising events. We truly appreciate their dedication to our community’s youth and our programs.

Ryder Transportation Services: Ryder has been providing truck services to support our ASU Water Program for the past three years. Ryder has provided their trucks to EKC for low mileage and gas fees, with no cost on the rental if returned within three hours. Heather Sullivan, Area General Manager, and her fantastic crew from all three Valley locations contributed well over $1,800 in services to our charity.

Arizona Diamondbacks: 1999 saw the continuation of the relationship between Every Kid Counts and the Diamondbacks. A special thanks to the Diamondback organization for several contributions of memorabilia, tickets and special meetings with the players for some of the kids.

Fast Signs @ 32nd Street and Indian School Road: Ross Meager and his staff continue to provided a great deal of support by donating all of our banners and signs. For this, EKC is proud to have them as a major partner in our organization.

Sedona Bottling Company: Again in 1999 the water label took on a whole new look for the ASU Sun Devil Stadium and Water Club program. The label now has a more colorful look to it as well as the logos of companies that donated money to help in our charity’s programming. We are also in our fourth year working with our water manufacturer, Sedona Bottling Co. (Dan Delaney is the company’s president). We greatly appreciate the support that Dan and the Sedona Bottling Company have provided over these years.

Fine Host Corporation: The Every Kid Counts water program has made it through its fourth straight year at Sun Devil Stadium thanks to the Fine Host Corporation. It was the biggest year we have ever had. The first year Fine Host purchased over 4,100 cases of water. In 1998, they sold nearly 5,200 cases and in 1999, they sold over 10,400 cases of water raising nearly $4,700 to support youth in the Valley. In late September, the label took on a whole new look. In addition to the water sales, Brian Hartman, Regional Manager for Fine Host Corporation, continues to be a part the Board of Advisors and has participated in a number of programs throughout the year. We appreciate Brian, his staff and the Fine Host Corporation’s dedication and support of our organization and our community’s youth. We look forward to yet another productive season.

Ramirez Roofing Incorporated: President and owner Eddie Ramirez and wife Linda continued to be a large part of our charity program this past year. Ramirez Roofing provided $4,700 in corporate donations (label sponsorships) as well as $1,500 in purchases of the EKC water. Their support paved the way to continue our Annual Christmas Party for Children of Single Parents, 5th Annual Celebrity Golf Tournament, and again joined Crown Press as the first ever Water Label Charity Partners. We greatly appreciate the dedication that both Eddie and Linda provided not only to our program but to other youth organizations as well. They are definitely heroes of our community.

Arizona Major League Baseball Alumni Association: Many of the members have been very generous in their support of our organization. For the past five years they have been involved in all of our golf tournaments, they have donated funds to help Carl Hayden Community High School and memorabilia and financial assistance for our fund raising events. A special thanks to Lou Klimchock, JayD Schlueter, Robin Yount, Bert Campaneris, Ethan Blackaby, Jim Cox, Jim Umbarger, Ken Rudolph, Byron Browne and many others. We appreciate their dedication and support to our community’s youth.

Arizona Public Service: APS became the first corporation to partake in the EKC Bottled Water Private Label Program. This raised funds for the charity and expanded the recognition to new consumers. APS also provided many volunteers for our events this year and we thank them all.

American Golf: In the past, American Golf assisted EKC on several different projects but this year they became one of our best supporters. The company sponsored the ASU water label in cash and trade because of the efforts of Tim Gray, the manager at Stonecreek Golf Course and a long-time EKC supporter and Kim Melhouse, regional group sales manager. It is because of their support that the 7^th Annual EKC Celebrity Golf Tournament is at Stonecreek in 2000.

Sandella's Café: One of our newest supporters, EKC became the beneficiary of the Grand Opening at Sandella's at Scottsdale Road and Thomas this winter. Thanks to Mike Woodhead and Chad Smalley, the managers.

Consolidated Human Resources: A long time EKC supporter, Randy Bragg and his father W. Tom Bragg, the owners of CHR continued and increased their support of the charity this year. They are water club partners, sponsors of the ASU water label, golf tournament sponsors, the tax people and many other things to this charity. Thank you for the support for another year.

Parties, Picnics & Promotions: With the help of owner Ken Wood, Every Kid Counts and our fantastic volunteers were able to raise nearly $10,000 for the programs last year. EKC staffed events for PPP over the course of the year and Mr. Wood donated the labor costs to the charity. We thank him and we look forward to continued collaboration in the future.

Every Kid Counts, Inc., would like to also acknowledge other sponsors and contributors who have faithfully assisted us in the past year and, whether large or small, it made a difference:

Yoshi's Restaurant

For any questions please contact us at(480) 248-6753 or email us at: everykidcounts1994@msn.com

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