Gawad Kalinga Community Development Foundation, Inc.

(a non- stock, non- profit organization)

SUBMITTED BY:

CM 01

CADUGO, BIANCA DAYAO, JOHN MICHAEL SANSOLIS, RACHEL MAE JOAN

SUBMITTED TO:

MS. ANGELITA SALTING PROFESSOR

ABOUT THE ORGANIZATION

Gawad Kalinga Community Development Foundation is a non-stock, non-profit organization which aims to uphold an integrated, holistic and sustainable community development program. Its mission is to end poverty for 5 million families in 2024, providing land for the landless, home for the homeless and food for the hungry. The programs of the Foundation are usually done in partnership with corporate entities, local government units, government agencies, schools and universities and international partner. These partnership can take the form of land donations, monetary contribution, materials and volunteer work.

CHARACTERISTICS AND FEATURES The foundations financial statements are in accordance with the Philippine Financial Reporting Standards for Small and Medium-sized Entities issued by the Financial Reporting Standard Council and approved by the SEC. There are two types of funds maintained by the Foundation: o General Fund (Undesignated)- represents the resources available for the Foundations operations and administrative functions. o Designated Fund- represents the resources which carry restrictions and are to be used only for purposes specified by their donors and be utilized for the main programs of the Foundation.

FUNDS

The foundations main source of funds is through the donations from the partnerships that they establish and from other individuals or groups.

ACCOUNTING PECULIARITIES

Advances to GK Areas These pertain to unutilized and unliquidated advances. These are recognized initially at the transaction price and subsequently measured at amortized cost using the effective interest method, less provision for impairment. (Refer to Note 5)

Property and equipment Donated Land is presented at fair value at the time of donation. All other property and equipment are carried at historical cost less subsequent depreciation. Donated property and equipment which are designated for specific purposes and to be utilized for main programs of the Foundation are classified under the Designated Fund and those that are used for administrative purposes are recorded under General fund.

Support and Donations Designated support and donations are recognized upon fulfillment of the donor-imposed conditions attached to the support and/or to the extent that the expenses are incurred. Designated support for which restrictions and conditions have not yet been met, are deferred in the accounts.

General support and donations are recognized upon receipt of the support and expenses are reported when incurred.

Expenses Administrative expenses are recognized when incurred while program expenses are recognized upon receipt of liquidation and completion reports for specified projects.

Impairment of advances to GK areas Impairment is based on the foundations assessment of the receipt of liquidation reports and collectability of payments from related foundations and other debtors, respectively.

Cash & cash equivalents

Short-term placements are made for varying periods of up to three (3) months, depending on the immediate cash requirements of the foundation. Deferred grant These are restricted support and donations wherein the restrictions and conditions have not yet been made. (Refer to Note 10)

LEARNINGS