The success of the 2002 fiscal year rests on the accomplishments of the year’s Season of Giving Campaign. During the 2002 fiscal year, Every Kid Counts, Inc participated in 63 events, ranging from small fundraisers to a large toy drive and presentation of gifts to the kids at the TJ Pappas School. It was a year that started out fast and furious. It began on January 6^th, the first day of operations in 2002, and continued with the same energy until the last toys were distributed December 24^th. EKC surpassed all expectations of the goals set for the year. The most notable growth came from the increased participation in the Golf Tournaments, the overwhelming success of the Country Thunder Music Festival and the many new participants in the Food and Toy Drives.

During Fiscal Year 2002, EKC received consistent support from last year’s contributors through the sale of our charity water, as well as gaining additional financial contributors. Kidco’s Products developed and implemented its newest retail label in June. The label was test-marketed throughout the Phoenix Metro area. The water, with the new label, was well received by the community and surpassed all sales expectations. Our current client base continues to place consistent orders, with Apothecary Shops of Arizona joining the ranks of Van Chevrolet as a Corporate Private Water Label Partner with EKC.

Regretfully, EKC experienced decreased levels of activity with the Interactive Educational Enhancement Program at Carl Hayden Community High School. It is our goal to resume program activity in the Fall of 2003. The charity’s tradition of holiday events, however, continued. EKC sponsored its 9^th Annual Christmas Party for the children of Single Parents Association (SPA), with the assistance of ASU Phi Sigma Kappa Fraternity Alumni, as well as the 5^th Annual Season of Giving Campaign in Flagstaff, with the assistance of NAU Phi Sigma Kappa Fraternity. The Winter Classic Golf tournament set the tone for the season and the Annual EKC President’s Holiday Celebration, along with the Food/Toy Drives wrapped up the season with the collection and delivery of more than 3,700 toys, presented to many underprivileged children, families and organizations throughout Arizona. A new addition to the year’s campaign was the partnership with Randy Johnson and the Arizona Diamondbacks Charities for the Angel Party December 14^th , 2002, at Bank One Ball Park.

As we embark on our 10^th year, Fiscal Year 2003, we look ahead to the challenges of fewer large programs and a reduction in the smaller programs. The two first quarters are designated for major fund raising projects, the development of the new Florida Chapter of EKC under the Direction of Kerri Ballinger, early preparation for the Season of Giving Campaign and Fall programming.

The attached details EKC’s year-end status and the financial statements for submittal to the Corporation Commission and the IRS on Form 990 for fiscal year 2002.

Proudly submitted by,

Robert J. Perelka Jeffrey Goe

EKC President – Executive Director EKC Treasurer

Tim Orscheln* – President, Bandango World Class Clothing Apparel

Joseph & Carla Arias* – Engineer, Arizona Public Services 

Craig Fouhy* – Sports Anchor, ABC 15 (Phoenix)

Eddie Ramirez* – President, Ramirez Roofing, Inc.

Bryant E. Sewall- Major, USMCR 3d Anglico Demand Reduction Coordinator

Gaspar Mata* – Area Manager, Sam’s Club

Ernalee Phelps* – Resource Director, Thomas J. Pappas School

Rick Stoddard – President, Stoddard Enterprises

Bob Smith – President, Coronado Industries

Michael Cormier – Chiropractor, Preferred Chiropractic

Sue Boettcher – General Manager, ARAMARK@ ASU Sun Devil Stadium

Bill Holmes – General Manager, Baja Fresh

Jim Reagan – President, Reagan Financial Services, Inc.

John Swan* – Sr. Vice President, CUE Financial

Brian Chambers – President, Jurkey Guy Distributions

Hugh Duke - Financial Planner

Kevin McGraw - General Manager, AGC's Foothills Golf Club

* Two year term has ended and affirmation renewal pending

Calvin Schexnayder –  Pro Football Player, Arizona Rattlers

Gordon & Kay Le Blanc – President, Tiger Co.

Mike Gibson – Former Manager, Sam’s Club #6607

Mike Muraco – Sales Manager, WB61

Schedrick Bonner - Pro Football Player, Arizona Rattlers

Ken Petersen – District Manager, Wal-Mart Stores

Mark Gefroh - President, Crown Press, Inc. (Inducted 1/2002)

January 1, 2002 through December 31, 2002

Contribution-Cash $ 77,488

Label Sponsorships $ 1,600

Restricted (Colter & Associates) $ 18,617

Unrestricted $ 44,682

Water Club $ 12,541

Income Interest $ 48

Fundraising $ 88,186

Grants $ 8,500

Special Event (CTUSA) $314,865

Contribution-Non Cash $ 12,400

93 Oldsmobile Van $7,000

92 Ford Taurus $5,400

In-kind Contributions-Non Cash $137,350

Toys $86,000

Food $ 4,000

Clothing $ 1,500

Golf Certificates (AGC) $18,000

Professionals Services $ 3,500

Printing and Reproduction $10,350

Champion of the Year Program: To best serve the community, especially in the areas of education and special assistance, EKC developed the Champion of the Year Program. The name changed after the passing of our inaugural champion to Michael J. Arias Champions Program, in honor of Michael and his family. The program saw little growth in 2002 due to the down-turn in the economy and decline in water club participants. Michael J. Arias Champions Water Club Program water labels were redesigned, exhibiting a new "look" with the addition of Thomas J. Pappas School logo and information, as well as a classic southwest scenic background. With the funds raised from the contributions of the water sales, EKC continued its support to Phoenix Children’s Cancer Center’s Annual Summer Camp, as well as the Ronald McDonald House.

Product Donations: Keeping with the tradition of providing other non-profit organizations and youth groups with support, EKC provided approximately 17,000 bottles of water to groups for program events or fundraisers. Some of the groups include: Phoenix Parks and Recreation, Single Parents Association, Arizona Youth Baseball, CASA, as well as many schools and church groups throughout the state.

Tickets to Events: EKC acknowledges the great deal of support provided through many local professional sports programs. Because of their generosity, EKC was able to provide thousands of tickets to various sporting events to underprivileged youth throughout the state of Arizona.

Equipment/Service Donations: Continuing tradition, EKC was instrumental in providing equipment and other materials to schools and/or parks and recreation facilities throughout the state. Beneficiaries include: Thomas J. Pappas School, Aid to Adoption of Special Kids, Gilbert Boys & Girls Club, Ronald McDonald House, Single Parents Association (AASK), Carl Hayden Community High School, Dobson High School, Chaparral High School and many worthwhile, smaller organizations throughout the State.

Season of Giving Campaign: Encompassing all of the programs of the holiday season, the Season of Giving Campaign was our most successful program of the year. Companies such as American Golf Corporation, KISS FM 104.7, Alaskan Airlines, Preferred Chiropractic, Bally Total Fitness, along the students at Dobson High School and many other local businesses, in a collaborative effort with EKC, were successful in collecting clothing, food, and over 3,700 toys. This collaborative effort helped provide a modest Christmas for children and families throughout the state of Arizona. Additionally, EKC held its traditional holiday events which continue to be highly successful and fun for all who participate. These events include:

CASA Partnership: Every Kid Counts of Northern Arizona-Flagstaff is proud to be working closely with Citizens Against Substance Abuse on many worthwhile projects.

Children of Single Parents Christmas Event: Every Kid Counts of Northern Arizona-Flagstaff and Phi Sigma Kappa, in a collaborative effort, held the Annual Christmas Party for Children of Single Parents, December 8, 2002.

Reading is Fundamental: For the past 5 years, EKC has participated in the Reading Is Fundamental in Flagstaff Schools. Though a small role, EKC purchases books for the program.

Grants/Donations Program: Grants and donations provided assistance in the areas of education, athletics and substance abuse awareness programming. With the decrease of public education funding, EKC is working to provide alternative funding, ensuring the positive development of our youth’s mental and social growth.

EKC Charity Water 17,000 bottles to various programs $2,919

Food/Materials for various groups/programs and University Park $ 500

Water Club: The EKC Products Program was a success. Combining the corporate and individual participants, the charity received $12,541 in contributions.

Parties Picnics & Promotions, The parent company of Sunbelt Special Events: Thanks to owner Ken Wood's support and the assistance of many volunteers, the charity staffed many Sunbelt Projects during the year.

Coronado Industries 2002 Winter Classic Golf Tournament/Toy Drive Kick-off: The tournament was held at Stonecreek Golf Club November 4, 2002, with over 104 participants enjoying a great afternoon of golf and an evening of fun. Special thanks to American Golf Corporation and our sponsors: Crown Press, Right Toyota, Pinnacle Infiniti, Phoenix Coca Cola Bottling Co., Scottsdale Sunrise Kiwanis Club, Bob Smith and the many golf participants. EKC raised close to $12,000.00.

January 1, 2002 through December 31, 2002

Includes EKC Executive Director, CFO, Special Events Coordinator and Office Administrator

Below is a breakdown of expenses for the charity’s overall 2002 operation and programs:

Office Rent: $ 6,730

Utilities $ 802

Repairs and Maintenance $ 396

Telephone Services $ 3,223

Credit Card Services Fees $ 647

Bank Fees $ 364

Automobile Expenses (Truck Loans, Fuel, Registration & Services) $ 3,797

Contract Labor $ 1,517

Dues and Subscriptions $ 429

Insurance $ 5,613

Interest Expenses $ 3,157

Misc. Expenses (Licenses and Permits) $ 400

Office/Building Maintenance/Supplies $ 1,507

Postage and Delivery $ 403

Printing Costs $ 8,910

Travel & Entertainment Expenses $ 1,992

Event Supplies $ 930

CTUSA Expenses $238,861

Equipment Purchase and Rentals $ 3,360

Fundraising Expenses (2 Golf Tournaments) $ 11,623

Programming Expenses $ 32,824

Contributions and Donations $ 75,947

Costs of Goods Sold $ 20,908

In 2002, EKC was honored to have many supporters of our programs. One of our traditions is to provide the most recognition possible for those who have chosen to partner with our programs. The following list highlights the various businesses which sponsored the charity during the 2002 fiscal year.

Parties, Picnics & Parties: One of the largest contributors of financial and material support, not only for EKC, but for many other groups as well, owner, Ken Wood, continues to assist others throughout Arizona. Through his support, Ken has allowed EKC to develop the Youth Work and Volunteer Programs, while raising the necessary funding to support our programs. In 2001, Ken presented EKC and Kidco Products Inc. with the ownership of the Sunbelt Special Events Company name. This contribution has kept the charity going by raising the necessary funding for our charity. Thanks Ken!

Sam’s Club and Wal-Mart Stores: The source of all EKC grants in 2002, Gaspar, Cindy, and Gina, along with the thousands of Associates throughout Arizona, have continued to support and aide in the development of EKC programs, as well as developing new relationships with other programs centered around children. We are appreciative of the Sam’s Clubs and Wal*Mart Stores which have supported our cause since our inception. EKC is looking forward to your continued participation.

Arizona Rattlers, Arizona Cardinals, Arizona Diamondbacks, Phoenix Coyotes and the Phoenix Suns: These professional teams continue to help support the efforts of the charity by providing tickets, funding, memorabilia and player/coach support throughout the year.

Sedona Bottling Company: In 2002, the water label took on many new looks - from ASU Fine Host Corporate label to the Water Club Program label. The labels continue to exhibit the logos of companies which have money to help in the charity’s programs. This is EKC’s seventh year in partnership with Sedona Bottling Co. (Special thanks to Dan, Pat, & Al). We greatly appreciate the support of Dan and the Sedona Bottling Company staff have provided.

Fine Host Corporation: The Every Kid Counts Water Program recorded its seventh year with Fine Host. Though the water is no longer sold at Sun Devil Stadium, in 2002 over 5,500 cases of water were sold at various non-sporting events on the campus of ASU. In addition to the water sales, Sue Boettcher and her staff proudly supplied the food for our 5^th Annual EKC President’s Toy Drive/Holiday Party. We appreciate Fine Host Corporation’s dedication and support of our organization. Thanks for this continued partnership. EKC will always be in your debt. With ARAMARK as the new company now providing the stadium with its food/concession services, we are hoping to sustain our current relationship. Fine Host Corp. will be missed.

Van Chevrolet: John McEniry and our friends at Van Chevrolet continue to sponsor the charity events. Van Chevrolet teamed up with Pinnacle Infiniti to sponsor the Pairings Party before our 9^th Annual Celebrity Golf Tournament. In addition, Van Chevrolet helped EKC established the first ever Corporate Private Label Program by creating the EKC/Van Chevrolet water label. Van continues to provide these water bottles to their customers during the summer months. Thanks John and Van Chevrolet for your generosity and support. We look forward to a lasting partnership.

Arizona Major League Baseball Alumni Association: Many of the members have been very generous in their continued support of our organization.

American Golf Company, Bally’s Total Fitness, The Pacioni Family, Preferred Chiropractic, Dobson High School and Alaska Airlines together, helped make the 2002 Season of Giving a huge success by collecting over 3,700 toys, which were distributed throughout the Valley to underprivileged youths of all ages and ethnicities.

Apothecary Shops of Arizona: As the Private Label Sponsor, John Musil and his staff kept the charity busy by purchasing water for their many locations. They have also helped by spreading the word about EKC and sponsoring various projects throughout the year. Thanks for your ever-growing support.

Keller Reality Group: Matt Keller became big part of the EKC family during the Kick-off of the Season of Giving Campaign through his companies participation in the 2002 Winter Classic Golf Tournament. Not only did he participate in the event, he donated several thousands of dollars during the auction and made an offer to donate 1% of his commission on any house purchased in affiliation with the charity. Thanks Matt – we look forward to a lasting relationship.

There are many companies, organizations and individuals who have been truly inspirational in supporting our efforts for 2002. Our sincerest thanks to the following:

There are many others who have made contributions throughout the year. Although not listed, they are no less appreciated. THANK YOU ALL. We appreciate your continued generosity and support in helping us help the kids.