Chapter 4

Presentation, Analysis, and Interpretation of Data

This chapter presents the findings, analysis and interpretation of data gathered by the

researchers whose main objective is to evaluate the performance of. and draw conclusions

from the results of such evaluation through the use of a Balanced Scorecard. Most

specifically, they sought to answer the following questions:

• What is the mission of C Inc.? What strategies do they employ in order to conform

to it? What factors hinder the organization from fulfilling its goals?

• What services/programs does the organization currently offer to its clients? Do

these services/programs adhere to its mission and vision? Are the stakeholders

(volunteers and beneficiaries) satisfied with the services it provides?

• Does the organization adhere to the Management Internationalis? In what areas

does fall short?

• Where does the organization’s funds come from? How do they spend it? Are they

efficient and effective in utilizing these funds?

• Will the organization be able to operate assuming no additional funds were received

for the year ended December 31, 2017?

The data that have been gathered include C Inc.’s mission and vision statements, their

objectives, manual of operations, actual balance sheet and income statement for the year

2015, 2016 and 2017, the 2016 annual report for management purposes, and list of

volunteers, beneficiaries, and employees. These data were essential in coming up with the

37
balanced scorecard necessary. It was imperative that we come up with the balanced

scorecard first as it will serve as the basis for the questions we would need to ask in our

surveys. Some of the data gathered also helped in the preparation of survey questionnaires. 


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 Statement of Functional Expenses
For the Year Ended December 31, 2016

Program Services Supporting Service

(FUN)
TOTAL (AK)/ (RER) / (DWS) / (GA) Gen Fundraising
EXPENSES Scholarship Calamity HIV/Aids Admin (Bugasan+CAER
P)

Salaries 571,137.25 175,191.30 89,073.18 28,503.41 153,258.80 125,110.56

Employee
242,649.33 75,537.78 41,717.23 28,607.79 72,033.64 24,752.89
Benefits

Total Personnel
813,786.58 250,729.08 130,790.41 57,111.20 225,292.44 149,863.45
Costs
Taxes & Licenses 8,463.06 - - - 8,463.06 -

Program
1,932,186.65 1,070,405.64 99,999.15 382,014.86 - 379,767.00
Expense

Professional Fees 1,136,840.45 4,813.00 392,505.32 686,825.22 6,600.50 46,096.41

Supplies 40,806.90 13,703.04 6,949.23 2,964.15 11,952.67 5,237.81

Periodicals,
Dues, And 12,848.00 - - - 12,848.00 -
Subscriptions

Postage/
117,267.38 19,667.03 24,980.60 24,049.79 42,622.62 5,947.34
Telephone
Insurance 9,331.25 1,679.63 2,332.81 746.50 4,012.43 559.88

Light & Water 463,193.24 73,503.39 102,088.05 68,614.87 175,591.44 43,395.49

Equipment
Rental And 110,210.89 11,498.41 50,767.52 16,570.23 27,532.93 3,841.80
Maintenance

Printing &
80,211.63 5,946.82 16,913.39 7,276.64 26,129.51 23,945.27
Publications

Travel 535,194.78 181,121.38 15,704.00 3,818.91 300,316.31 34,234.18

Conferences And
126,446.19 21,659.28 26,009.56 27,700.04 43,769.88 7,307.43
Meetings

Bank Charges - - - - - -
Security Services 375,402.64 67,572.48 93,850.66 30,032.21 161,423.13 22,524.16

Miscellaneous 4,436.25 224.00 77.00 14.00 4,121.25 -

Total Before 1,307,738.6

5,766,625.89 1,722,523.18 962,967.70 1,050,676.17 722,720.22
Depreciation 2

Depreciation 629,335.00 94,885.74 131,785.75 42,171.44 226,671.49 133,820.58

1,094,753.4 1,349,910.0
Total Expenses 6,395,960.89 1,817,408.92 1,277,347.66 856,540.80
5 6

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 Total Revenue 4,794,434.00 1,930,218.35 421,965.28 766,771.28 1,432,969.12 242,510.00

Net Income (1,601,526.8 (672,788.17 (583,138.78

112,809.43 155,621.46 (614,030.80)
(Net Loss) 9) ) )

Table 4.1 Statement of Functional Expenses of Cebu Caritas Inc. for 2016
For 2016, it shows that the professional fees expense for the DWS program is

almost twice its program expenses.

Regarding the RER program, the professional expense increased significantly

compared to the previous year. The light and water expense for the program also increased

although not by much.

The table also shows that the general administrative expense for light and water

decreased.

For the travel expenses, there is a slight decrease for the Scholarship program

though it still remains excessive. The opposite goes for the general administrative travel

expenses, which increased.

As to the expenses incurred for conferences and meetings of the Scholarship

program, it showed a huge decrease compared to the expense it had for the same thing

during the previous year.

Statement of Functional Expenses

For the Year Ended December 31, 2017

Program Services Supporting Service

(FUN) Fundraising
TOTAL (AK) / (RER) / (DWS) / (GA) Gen
(Bugasan+CAERP
EXPENSES Scholarship Calamity HIV/Aids Admin
)

Salaries 691,113.65 253,301.91 111,602.25 - 139,082.74 187,126.75

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 Employee
237,866.65 74,417.81 41,491.50 22,314.61 79,307.73 20,335.00
Benefits

Total Personnel
928,980.30 327,719.72 153,093.75 22,314.61 218,390.47 207,461.75
Costs
Taxes & Licenses 25,883.40 - - 19,824.80 6,058.60 -

Program
3,277,487.39 1,100,962.16 1,163,777.78 346,907.95 1,045.50 664,794.00
Expense

Professional Fees 532,598.26 14,533.04 13,143.04 422,736.10 41,143.04 41,043.04

Supplies 26,664.20 7,249.10 4,124.00 3,494.60 676.50 11,120.00

Periodicals,
Dues, And 3,077.50 - - - 3,077.50 -
Subscriptions
Postage &
110,702.92 25,255.73 23,255.73 15,680.00 23,255.73 23,255.73
Communication

Insurance 8,981.25 - - - 8,981.25 -

Light & Water 411,436.07 86,504.33 86,504.33 27,594.81 173,008.66 37,823.94

Equipment
Rental And 69,436.89 15,383.17 14,105.17 3,981.25 14,105.13 21,862.17
Maintenance

Printing &
9,119.06 2,109.77 1,749.77 1,760.00 1,749.75 1,749.77
Publications

Travel 150,514.85 18,318.00 17,311.00 7,054.00 28,332.12 79,499.73

Conferences And
74,245.45 - 279.00 20,305.95 53,660.50 -
Meetings

Security Services 348,618.43 87,154.61 87,154.61 87,154.61 87,154.60 -

Miscellaneous 24,077.52 - - - 24,077.52 -

Total Before
Depreciation 6,001,823.49 1,685,189.63 1,564,498.18 978,808.68 684,716.87 1,088,610.13

Depreciation 665,689.00 - - - 665,689.00 -

Total Expenses 6,667,512.49 1,685,189.63 1,564,498.18 978,808.68 1,350,405.87 1,088,610.13

Total Revenue 5,070,941.41 415,107.52 2,071,603.30 716,658.75 1,267,457.32 600,114.52

Net Income (1,596,571.0 (1,270,082.1

507,105.12 (262,149.93) (82948.55) (488,495.61)
(Net Loss) 8) 1)

Table 4.3 Statement of Functional Expenses of Cebu Caritas Inc. for 2017

The next figures and tables to be shown will be significantly relevant for financial

perspective. Researchers has made use of fundraising efficiency ratio, charitable

41
commitment and administrative cost ratio to determine whether Cebu Caritas Inc. is

utilizing its funds efficiently (operating efficiency).

CHARITABLE COMMITMENT

FORMULA: PROGRAM EXPENSE/TOTAL EXPENSE

2015 AK/SCHOLARSHIP RER/CALAMITY DWS/HIV/AIDS AVERAGE

Program expense 1,157,438.48 2,456,206.80 1,605,098.88 1,739,581.39
Total Expense 2,091,179.00 2,945,994.74 2,360,466.41 2,465,880.05
Charitable Commitment ratio 55% 83% 68% 0.69
TARGET 70% 70% 70% 0.70
STRETCH 80% 80% 80% 0.80
SCORE 50% 100% 76% 0.75

2016 AK/SCHOLARSHIP RER/CALAMITY DWS/HIV/AIDS AVERAGE

Program expense 1,070,405.64 130,790.41 382,014.86 527,736.97
Total Expense 1,817,408.92 421,965.28 766,771.28 1,002,048.49
Charitable Commitment ratio 59% 31% 50% 0.47
TARGET 70% 70% 70% 0.70
STRETCH 80% 80% 80% 0.80
SCORE 58% 2% 40% 0.33

2017 AK/SCHOLARSHIP RER/CALAMITY DWS/HIV/AIDS AVERAGE

Program expense 1,100,962.16 1,163,777.78 347,953.45 870,897.80
Total Expense 1,685,189.63 1,564,498.18 979,854.18 1,409,847.33
Charitable Commitment ratio 65% 74% 36% 0.58
TARGET 70% 70% 70% 0.70
STRETCH 80% 80% 80% 0.80
SCORE 70% 88% 12% 0.57

OVERALL AVERAGE
Charitable Commitment ratio 60% 63% 51% 58%
Score 60% 66% 42% 56%

Table 4.4 Charitable Commitment of Cebu Caritas Inc. for the past 3 years.

From the table presented, 60% of the total expenses incurred by the Scholarship

program was due to fulfilling its goals, 63% for the RER program and 51% for the DWS

program. The overall average of charitable commitment per program was further

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quantified using the scoring scale suggested by Cam Scholey, where each program

obtained 60%, 66%, and 42% respectively; and an overall score of 56%.

With the set target, the RER has able to surpass the set stretch for the year 2015 and

the set target in 2017 but during 2016 it only had 31% program expense to total expense

ratio thus its overall charitable commitment ratio was not able meet the target.

The Scholarship program on the other hand had an increasing charitable

commitment while the DWS program’s charitable commitment ratio was decreasing. Both

were not able to reach the set target in any year.

ADMINISTRATIVE COST RATIO

FORMULA: GEN ADMIN EXPENSE + PERSONNEL COST

TOTAL EXPENSE

2015 2016 2017 AVERAGE

Gen Admin Expense 1,955,087.34 1,277,347.66 1,349,360.37 4,581,795.37
Personnel Cost: -
Alay Kapwa/ Scholarship 114,605.88 250,729.08 327,719.72 693,054.68
RER/ Calamity 111,377.62 130,790.41 153,093.75 395,261.78
DWS/ HIV /AIDS 137,837.87 57,111.20 22,314.61 217,263.68
Fundraising 5,668.00 141,799.22 207,461.75 354,928.97
Total 2,324,576.71 1,857,777.57 2,059,950.20 6,242,304.48
TOTAL EXPENSE 10,177,198.42 6,395,960.89 6,667,512.49 23,240,671.80
Administratice Cost Ratio 23% 29% 31% 27%
! SCORE 48.00% 24.00% 16.00% 32.00%

Table 4.5 Administrative Cost Ratio of Cebu Caritas Inc. for the past 3 years.

Based on the table presented, more than 20% of the total expenses incurred by the

organization went directly for administrative expenses and it has an increasing trend. The

researchers has set a target administration cost ratio of 15% and a stretch target of 10%,

which is the benchmark suggested by a charity watchdog, charity navigator; Cebu Caritas

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Inc. failed to meet the set target. The honorarium expenses of CCI is one of the reasons

why it has large administrative expenses.

Fundraising Efficiency Ratio

FORMULA: Cost to Raise

Total Revenue Raised

2015 2016 2017 AVERAGE

Revenue from Fundraising Activities 448,626.34 242,510.00 600,114.52 430,416.95

Cost to Raise Funds 818,802.93 714,741.58 881,148.38 804,897.63
Net Income/Loss from Fundraising Activities (370,176.59) (472,231.58) (281,033.86) (374,480.68)

Fundraising Efficiency Ratio 183% 295% 147% 208%

Target 35% 35% 35%
Stretch 30% 30% 30%
! SCORE 0% 0% 0% 0%

Table 4.6 Fundraising Efficiency of Cebu Caritas Inc. for the past 3 years.

The table shows how much the organization spent in order to raise 1 peso.

Cebu Caritas Inc. is too inefficient in raising funds. In 2015, it has spent ₱1.83 in

order to raise 1 peso. In 2016, it has spent ₱2.95 and in 2017, ₱1.47. The set target and

stretch target were not met.

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 Operating Efficiency

RESULTS 2015 2016 2017 AVERAGE

Charitable Commitment 75% 33% 57% 55.11%

Administrative Cost Ratio 48% 24% 16% 29.33%
Fundraising Efficiency Ratio 0% 0% 0% 0.00%

OPERATING EFFICIENCY 41% 19% 24% 28%

!
Table 4.7 Operating Efficiency of Cebu Caritas Inc. for the past 3 years

This table shows the operating efficiency. It was computed as the average of score

obtained in charitable commitment, administrative cost ratio and fundraising efficiency.

The very low assessment of operating efficiency is due to its deficiencies in raising funds.

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 SAVINGS INDICATOR RATIO

FORMULA: (REVENUE-EXPENSE) / TOTAL EXPENSE

2017 REVENUE EXPENSE NET REVENUE TOTAL EXPENSE SAVINGS INDICATOR

ALAY KAPWA 415,107.52 1,685,189.63 (1,270,082.11) 1,685,189.63 -75%
CALAMNITY 2,071,603.30 1,564,498.18 507,105.12 1,564,498.18 32%
DWS/HIV/AIDS 716,658.75 979,854.18 (263,195.43) 979,854.18 -27%
BUGASAN+CAERP 600,114.52 1,088,610.13 (488,495.61) 1,088,610.13 -45%
GEN ADMIN 1,267,457.32 1,349,360.37 (81,903.05) 1,349,360.37 -6%
TOTAL 5,070,941.41 6,667,512.49 (1,596,571.08) 6,667,512.49 -24%

2016 REVENUE EXPENSE NET REVENUE TOTAL EXPENSE SAVINGS INDICATOR

ALAY KAPWA 1,930,218.35 1,817,408.92 112,809.43 1,817,408.92 6%
CALAMNITY 421,965.25 1,094,753.45 (672,788.20) 1,094,753.45 -61%
DWS/HIV/AIDS 766,771.28 1,349,910.06 (583,138.78) 1,349,910.06 -43%
BUGASAN+CAERP 242,510.00 856,540.80 (614,030.80) 856,540.80 -72%
GEN ADMIN 1,432,969.12 1,277,347.66 155,621.46 1,277,347.66 12%
TOTAL 4,794,434.00 6,395,960.89 (1,601,526.89) 6,395,960.89 -25%

2015 REVENUE EXPENSE NET REVENUE TOTAL EXPENSE SAVINGS INDICATOR

ALAY KAPWA 1,804,626.85 2,091,179.00 (286,552.15) 2,091,179.00 -14%
CALAMNITY 635,683.16 2,945,994.74 (2,310,311.58) 2,945,994.74 -78%
DWS/HIV/AIDS 1,548,432.30 2,360,466.41 (812,034.11) 2,360,466.41 -34%
BUGASAN+CAERP 448,626.34 824,470.93 (375,844.59) 824,470.93 -46%
GEN ADMIN 1,177,214.90 1,955,087.34 (777,872.44) 1,955,087.34 -40%
TOTAL 5,614,583.55 10,177,198.42 (4,562,614.87) 10,177,198.42 -45%

AVERAGE: (0.31)
TARGET: 1.5
! SCORE 0%

On the table presented, Cebu Caritas Inc. has not been adding up to its net assets

per year. Mostly of its savings indicator, separated based on how its funds were divided,

results to negative savings indicator ratio.

The researchers has set a target of 1.5 (150%), based on the book of Jack Siegel: A

Desktop Guide for Nonprofit Directors, Officers, and Advisors. Cebu Caritas had negative

average of 31% thus it has an equivalent score of 0%.

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 DEFENSIVEINTERVAL

FORMULA: CASH+MARKETABLESECURITIES+RECEIVABLES
AVERAGEMONTHLYEXPENSES

2015 2016 2017 TOTAL

CASH 4,860,408.05 2,961,560.57 2,661,405.90 10,483,374.52
MARKETABLESECURITIES -
RECEIVABLES 40,000.00 40,000.00
TOTAL 4860408.05 3001560.57 2661405.9 10,523,374.52
AVERAGEMONTHLYEXPENSES 848,099.87 532,996.74 522,890.83 1,903,987.44

DEFENSIVEINTERVAL 5.730938338 5.631480157 5.089792627 5.527018873

!

The table shows how long will the organization survive and continue its operation

if there will be no additional funds to be received. In 2015 it had a defensive interval of 5.7

months. In 2016, 5.6 months of defensive interval and in 2017, 5.1 months of defensive

interval.

Charity watchdogs suggest a defensive interval of at least 3 to 6 months. With the

results, Cebu Caritas is doing well, but the researchers believed that it should surpass the

set stretch target of 6 months for it to be proclaim that it is financially stable.

The table figure shown below is the established balanced scorecard together with

the actual results of the evaluation.

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 Balanced Scorecard

Perspective Objective Measure Target Stretch Result Score

Beneficiary
Answer Satisfaction ▪ 4 ▪5 ▪ 80%
▪ 4.14
Stakeholder stakeholde ▪ DWS ▪ 4 ▪5 ▪ 80%
▪ 4
Perspective rs’ varying ▪ RER ▪ 4 ▪5 ▪ 80%
▪ 3.95
needs ▪ Scholars
hip

Fundraisin ▪ Operatin
g (improve
g ▪ 28%
Efficienc ▪ 96.6
income ▪ 80% ▪ 28%
y ▪ 100% 5%
generating ▪ 3 ▪ 5.5
Financial
projects) ▪ Defensiv months ▪
6 mo.
mo. ▪ 0%
Perspective e Interval ▪ 200%
Efficienst ▪ 150% ▪ (31%
use of ▪ Savings )
Indicator
financial
Ratio
resources

Compliance
to
Achieve Management ▪ 82.
Operationa Standards of ▪ 70% 40%
▪ 95% ▪ 73 %
l Caritas ▪ 70% ▪ 74.
Internal ▪ 95% ▪ 63%
Excellence Internationali ▪ 70% 40%
Perspective ▪ 95% ▪ 71%
(Improve s ▪ 70% ▪ 80.
▪ 95% ▪ 67%
Internal ▪ MLEC 80%
Efficiency) ▪ G&O ▪ 77.
▪ MSFA 60%
▪ MSSI
Establish
Linkages
Attract &
Learning &
retain ▪ Volunteer
Satisfaction ▪ ▪ ▪ ▪ 80%
Growth 4 5 4
dedicated
Perspective
volunteers
&
employees

Table 4.3 The Balanced Scorecard of Cebu Caritas

Table 4.3 is the full Balanced Scorecard depicting the targets, stretch targets and

actual results of the CCI performance evaluation. Based on the results, CCI’s beneficiary

48
are satisfied enough with it services, volunteers are satisfied as well with their experience

as a volunteer of Cebu Caritas Inc. and the services it provides, the organization has failed

to meet the target operating efficiency and the target compliance rate as to management

standards set by Caritas Internationalis in the government and organizational area since it

does not have a clearly defined organizational chart, realistic and clear strategic plan and

established fund-raising plan.

49