I am pleased to report on the financial status and results of financial operations of our organization for the fiscal year ending March 31, 2014. Included in your kit is the audited financial statements and management will provide details when it renders its report.
We closed the fiscal year with a Fund Balance of Php 78.66M with more than 70% in Program-related assets. In other words, most of the funds are currently deployed in projects in pursuit of PDAP’s vision and mission. The Endowment fund continued to grow and stood at P7.8M.
Total revenues for the period amounted to Php 8.6M or roughly 10% lower than projected and 30% lower than the actual fiscal year 2012 figures. This was largely due to the completion of the KnH-funded project in the middle of CY 2012 and the deferment of major activities for the seaweed project in Surigao at the instance of our Spanish NGO partner, Fundacion Codespa. Due to this, grants received was 45% below target or over Php 2.0M. Revenue from program-related investments (largely guarantee deposits) plus income from other investments amounted to P3.95M or almost 93% of target. Other receipts, although largely non-recurring, contributed almost Php 2M or more than three (3) times the budget.
Total expenses increased significantly to Php 21.9M with Direct program expenses accounting for 87% with the remaining 13% going to Program administration expenses. Direct program expenses and Program administration expenses stood at more than 220% and 33%, respectively, of Total receipts or revenues.
Direct program expenses included Php 13.96M in provision for bad debts (more than 70%) consisting primarily of the outstanding balances of 11 loan accounts guaranteed by PDAP during the PRIME project and which were “called” last fiscal year.
All told, the Deficiency of Receipts or Revenues against Expenses amounted to Php 13.34M. This is a little over the expected deficiency of Php12.98M as provided in the budget. Note, however, that the financial operation this fiscal year, as projected, should result in much lower deficit of Php2.1M.
Thank you very much.
FLORINDA M. LACANLALAY
Treasurer, FY 2013-2014