Research Sample

COLUMBAN COLLEGE INC.
#1 1st. St. New Asinan Olongapo City

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Email: ccrespub@gmail.com
"PEOPLE’S RECOVERY, EMPOWERMENT, AND DEVELOPMENT

ASSISTANCE FOUNDATION”: A CASE STUDY OF TRANSPARENCY AND
GOVERNANCE OF A THIRD AND PUBLIC SECTOR ORGANIZATION
BY:
ANGELA MAE F. BANAL
JOAN MARIE V. BOQUIREN
EXEQUIEL B. CARREON
RAYE ANNE N. CONCEPCION
A Manuscript
Submitted in Partial Fulfillment of the
Course Requirements for the Degree of
Bachelor of Science in Accountancy
June 2023
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APPROVAL SHEET
In partial fulfillment of the requirement for the degree of Bachelor of

Science in Accountancy, this thesis entitled “People’s Recovery,
Empowerment and, Development Assistance Foundation” a Case Study
of Transparency and Governance in Third and Public Sector
Organization”, has been prepared by Angela Mae F. Banal, Joan Marie V.
Boquiren, Exequiel B. Carreon, and Raye Anne N. Conception who hereby
recommended for an Oral Examination.
Prof. John Paul D. Redondo, LPT, MBA

Research Adviser
Approved by the Committee for Oral Examiners
Prof. Dolly V. Abasta, CPA, MBA Prof. Eric A. Matriano, Ed. D, Ph. D
Panel Member Panel Member
Dr. Peter O. Tulio, CPA, LPT

Panel Member
Accepted and approved in partial fulfillment of the requirement for the

degree of Bachelor of Science in Accountancy.
______________________ Prof. Eric A. Matriano, Ed. D, Ph. D

Date Dean, CBA
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Abstract
“People’s Recovery, Empowerment and, Development Assistance Foundation” a

Case Study of Transparency and Governance in Third and Public Sector
Organization
By:
Angela Mae F. Banal
Joan Marie V. Boquiren
Exequiel B. Carreon
Raye Anne N. Concepcion
College of Business and Accountancy
Mr. John Paul D. Redondo, LPT, MBA

Adviser
This study explores the role of transparency and good governance in the People's
Recovery, Empowerment, and Development Assistance Foundation (PREDA) a third-
sector and public organization in Olongapo City. Organizations are commonly founded
by entrepreneurs with the sole intent of making a profit for themselves. However, there
are times when an organization is founded not to raise funds for the entrepreneur's own
benefit, but to raise funds for the benefit of others especially those whom the government
failed to serve. This is commonly referred to as a non-profit organization. PREDA
Foundation caters to those unfortunate women and sexually abused children wherein
they help them provide therapeutic home and healing activities that aid them dignify
themselves. This paper aims to know how transparency and good governance of the
PREDA Foundation help them in achieving their goal as a third sector and public
organization. Through a qualitative case study approach, the study examines the
transparency and governance of the foundation in achieving its goals of assisting
families, particularly sexually abused children. This study utilized the use of a self-made
interview questionnaire to gather the information that is needed to answer the objective
of this paper. The persons from whom the data was acquired are the founder of the
PREDA Foundation himself, Fr. Shay Cullen, together with their president Mr. Francisco
Bermido Jr., and some of PREDA's staff. The significant finding of this study is that
PREDA viewed transparency and good governance as pertinent factors in acquiring the
needed resources in order to fund its organization's operation and function effectively as
a third sector. Furthermore, it is found out that through PREDA Foundation being
transparent, more donors are more likely to bring donations and support this type of
organization. It is recommended to continue being transparent as this reflects to their
management as having good governance.
Keywords: Transparency, Good Governance, Third Sector and Public Organization,

Non-Government Organization, PREDA Foundation, Case Study Approach, Olongapo
City
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TABLE OF CONTENTS
TITLE PAGE………………………………………………………………
APPROVAL SHEET.............................................................................. 1
ABSTRACT ........................................................................................... 2
TABLE OF CONTENTS........................................................................ 3
Chapter 1: The Problem and Its Background
Introduction ........................................................................................ 5
Framework of the Study.................................................................... 15
Statement of the Problem .................................................................. 22
Assumption of the Study ................................................................... 24
Scope and Delimitation
Significance of the Study ................................................................... 25
Definition of Terms ........................................................................... 28
Chapter 2: Research Methodology
Research Design ................................................................................ 30
Participants and its Setting................................................................ 32
Instrumentation................................................................................. 34
Ethical Consideration ........................................................................ 35
Data-Gathering Procedure
Data Analysis Technique ................................................................... 36
Chapter 3: Results and Discussion ....................................................... 37
Chapter 4: Summary, Conclusion, and Recommendations
Summary ........................................................................................... 62
Conclusion ......................................................................................... 65
Recommendations ............................................................................. 69
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REFERENCES..................................................................................... 72
ACKNOWLEDGEMENT.................................................................... 80
APPENDICES ...................................................................................... 81
Appendix A
Appendix B........................................................................................ 82
Appendix C........................................................................................ 83
Appendix D........................................................................................ 84
Appendix E........................................................................................ 85
Appendix F........................................................................................ 86
Appendix G ....................................................................................... 87
Appendix H ....................................................................................... 88
Appendix I......................................................................................... 89
Appendix J ........................................................................................ 90
Appendix K ....................................................................................... 91
Appendix L........................................................................................ 92
Appendix M....................................................................................... 93
Appendix N........................................................................................ 94
BIONOTE ............................................................................................ 95
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Chapter 1
THE PROBLEM AND ITS BACKGROUND
Introduction
Organizations in general are primarily established by an entrepreneur
for the sole purpose of generating profit for themselves. However, there are
instances wherein an organization is built not because an entrepreneur desires
to raise money for himself but for a reason of raising money for the sake of
other people. This type of organization is commonly called a non -profit
organization. Non-profit organizations or third/public sector organizations or
NGOs as commonly known, are institutions that are created for several
reasons. In many instances, these organizations provide opportunities to those
who are in need, or in other terms, charity services. The essence of their
establishment is not for the usual profit making but to provide services to help
society, the community, or a country. They earned or generate funds using
donations, fund-raising activities, membership fees, and selling products and
services to attain their entity's goals.

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But how can we be sure of the legitimacy of a non-profit organization,
be it big or small it is? Perhaps transparency in the governance of these
organizations should be looked into.
Transparency is either a characteristic or a state of being transparent.
metaphorical manner of referring to a state in which nothing is being
attempted to keep anything hidden. Transparency can be a way to solve errors
in organizational ethics and misdeeds that can reinstate trust and reduce
reputational risk or damage, (Auger, G. A., 2014). Since NGOs have grown
and influenced international politics and the excesses of globalization, there
has been a greater focus on NGO accountability. Where the sector adopts the
same norms of responsibility that it requires from the government and
business has come under scrutiny, (Dhanani, A., & Connolly, C., 2015). In
general, it is believed transparency enables international organizations to
better address difficult issues about environmental concerns. Non-
governmental organizations (NGOs) that serve non-profit public interests are
frequently regarded as crucial elements and drivers of transparency among
civil society participants, (Petersson, M. T., 2020).

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Transparency is popular among a small but expanding group of
government reformers. Governments, international organizations, civil
society, the commercial sector, and practically every level of governance are
placing greater transparency reforms on their agendas, from local initiatives
like the Ugandan intervention to the Open Government Partnership initiated
by US President Obama in 2011, (Kosack, S., & Fung, A., 2014). In the United
Kingdom (UK), social enterprise organizations (SEOs) have expanded to
provide more services that were previously provided by the public sector, and
as a result, they now play a large role in the economy. Use of an accountability
framework (differentiating between legal, constructive, and voluntary
responsibility) created specifically for SEOs, 129 UK SEOs' annual reports.
The results demonstrate that a large number of SEOs neglect to include
voluntary and helpful accountability information in their annual reports.
Instead, they focus on complying with legal disclosure requirements in order
to maintain legitimacy and build a reputation with significant resource
sources. The third sector relies on non-government funders (NGFs) for a
substantial amount of its funding. In the field of private philanthropy, there is
a lack of literature and access to stakeholders and institutional processes is

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limited, which makes empirical studies difficult. The public's ability to hold
government leaders responsible is limited by the minimal public disclosure of
federal tax law. They examine how NGFs "account" for their grant -making
decisions in an Australian context. In contrast to a reliance on hierarchical
accountability and transparency, it is discovered a sense of trust is established
as part of the decision-making process through a more socializing kind of
responsibility, based on human interaction. The study is focused on how
NGFs estimate likely success, (Coyte, R., Rooney, J., & Phua, B., 2013). The
Norwegian NGOs, on the other hand, are generally well-liked by their
Palestinian business associates. The Norwegian NGOs being studied are
keenly aware of the value of reputation development, even though they lack a
formal framework for doing so. As a result, their procedures, rules, and
activities are all created to benefit their reputation. The organizational identity
is so strong that employees in the country offices are aware of representing
their companies not only at work but also outside of the office as
"spokespersons" for them. But because Norwegian NGOs, like most NGOs,
rely on outside funding, they work to establish a good reputation and to be
perceived by their funders as responsible, extremely skilled, and impartial,

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(Ali, H. S. S., 2019). The United Nations (UN) administers a global
monitoring or accountability system for non-governmental organizations
(NGOs) looking to gain access to the UN, its conferences and meetings, and
the member state representatives. NGOs nowadays that seek to benefit from
these rights under the Economic and Social Council ("ECOSOC") only need
to be accredited. Although the accreditation procedure can be long, it is not
difficult. NGO accreditation is based on ECOSOC Resolution 1996/31 and
Article 71132 of the UN Charter. According to ECOSOC, all accredited
NGOs must "be of recognized standing within the particular field of its
competence or of a representative character," have a representative structure,
a democratically elected constitution, and " possess proper systems for
holding itself accountable to its members, who will exert effective control
over its decisions through the exercise of voting rights or other suitable
democratic and open procedures.," and any public funding must be disclosed
to the ECOSOC. A foreign NGO cannot be accredited by ECOSOC unless it
is "of a representative character and of recognized international standing; it
shall represent an important portion and express the views of major sections
of the general population or of the organized persons within the specific area
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of competence, covering, where possible, a significant number of countries in
various areas of the world."
NGOs, particularly those that carry out development and humanitarian
programs, have emerged as key players to fill the gaps left by governments'
dwindling ability to provide services to society. In China, the rise from 1995
to 2000 of the first generation of Chinese grassroots NGOs has widened to 31
cities in the country. Their activities stretched to serving the migrant
population, serving people with AIDS, providing legal aid, and working as
civil think tanks. Since 1995, China's NGOs have gone through two rounds of
capacity building. Prior to 1995, the Chinese were not familiar with the idea
of an NGO. Few academic research had been done on these organizations, and
they had very little social influence. Since 1995, China's NGOs have
undergone significant change, which points to two trajectories for the sector's
future growth, (Deng, G., 2017). South Korea found that a key variable
positively influencing people's views toward their government was people's
understanding that the government has transparent and open practices, which
helped them comprehend more thoroughly the connections between the
increasing number of critical people and the repercussions for trust in

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government, (Porumbescu, G. A., 2017). Thailand, on the other hand, has tried
to open and make its public institutions more transparent, especially following
the 1997 ratification of the so-called People's Constitution. So, when
Thailand's social media user base has considerably increased in r ecent years,
the public sector has decided to embrace social media and take advantage of
its potential as an alternative communication channel and tool to improve
openness and transparency since it has become an increasingly important
aspect of Thai people's lives, (Gunawong, P., 2014). Indonesia's NGO's
transparency, however, focuses on its beneficiary accountability in which they
develop a sustainable program by involving the intended recipient. Effective
requirement evaluations and justifications for service design and delivery
should be made centered on recipients, and so, they believed. Participating
actively in NGO programs encourages recipients to feel more connected to
them and work effectively with them to ensure their success. In this method,
NGOs can guarantee that recipients take charge of their own programs and
become self-sufficient after their period of help. While NGOs in other
ASEAN nations have tried hard to build transparency in accordance with
society's expectations, India claimed that its GDP would be 2-3% greater if it
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weren't for some NGOs' anti-development efforts. It also claimed that NGO
activities had ruined mega-industrial projects and imperiled the nation's vital
mining, agricultural biotechnology, and energy sectors. Additionally, India
accused donors from the US, UK, Scandinavia, the Netherlands, and Germany
of utilizing NGOs and "people-centric" concerns like gender equality and
human rights to incite unrest, obstruct development, and damage India's
reputation worldwide, (Sharma, A., 2016).
Transparency was initially meant for NGOs that had received
contributions from donors rather than the government. In order to be
responsible to people or funders, NGOs must conduct their business in a
transparent manner. The NGOs must be transparent with funders about how
they use the funding they receive. Assuming that dishonesty occurs in NGOs,
this was a method for avoiding it. Though, in the end, the government has
adopted it in its governance. In the Philippines, cronyism and corruption are
still pervasive in both the public and commercial sectors. Just a year ago,
Transparency International's survey of 183 corrupt nations placed the
Philippines at position 129. And already, this was seen as an improvement
above the 134 we received in 2010, (Asia Society Philippines, 2012). On

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November 8, 2013, smallholder farming communities in the Central
Philippines suffered severe destruction because of Super Typhoon Haiyan.
The Visayas area of the Philippines was destroyed, and efforts were made to
rehabilitate the local populations' systems of subsistence, including a program
in Calubian, Leyte. By the end of 2017, the Building Resiliency and
Sustainable Agribusiness in Typhoon-Damaged Areas of Central Philippines
(BReSA Rehab Haiyan Project) aims to assist families destroyed by the
typhoon in rebuilding their livelihoods and increasing their source of income
and property. However, issues have arisen with the media, if projects have
really made a successful outcome for the affected community, (Preciados, et.
al., 2020). In the province of Bataan, an isolated Indigenous tribe called The
Aeta Magbukún, has been affected by the increase of forestry, agriculture, and
urban development by non-Indigenous Philippine communities. This has put
the Aeta Magbukún in greater danger during the past ten years, aggravating
historical dispossession, poverty, and political discrimination. While Aeta
Magbukún is increasingly looking for a degree of autonomy in local decision-
making, they do not want to be "left alone" to manage a depleted resource
base with limited competence and a variety of organizations with diverse

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interests. In the end, NGOs are often required to be intermediaries, (Balilla,
et.al., 2014).
With all these studies gathered, it led the researchers to explore various
conditions and circumstances of being a third and public sector organization,
non-profit organization, or non-government organization (NGO), be it World,
ASEAN, and in the Philippine setting. The researchers discovered that
transparency is like a tool that builds trust, whereby the more open an
organization turns into the more reputable they will be viewed by the public,
donors as well as and authorities. As a result, it is crucial for non -profit
organizations to explicitly state their purpose while conveying the results of
their actions to the outside world. Furthermore, accountability and openness
promote a more moral nonprofit organization and foster a climate of trust
among group members, which is the basis of a fruitful and inspiring
philanthropic connection. Lastly, this paper aims to discuss the transparency
and governance in a third and public sector organization in Olongapo City,
particularly the People's Recovery, Empowerment, and Development
Assistance Foundation, and how they manage to attain their objectives in

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terms of the flow of their management and accounting as a non-government
organization.
Framework of the Study
The term "third sector" means a wide array of organizations that have
different structures and objectives belonging to neither the government nor
the private sector. Words that commonly describe this organization are
voluntary sector, non-governmental organization, and non-profit
organization, (Northern Bridge, 2010). Tayo Ang Tinig at Gabay Inc.
(TATAG) is supposedly the focus of the study, the researchers went to their
office which is located at 25th St. East Bajac, Olongapo City to get approval
and encourage them to be the participant of the case study. Unfortunately, the
researchers found out that they ceased to operate for more or less ten (10)
years. The person whom the researchers talked to suggested inquiring at the
PREDA Foundation as they are still very active in their operations. Thereafter,
the researchers decided not to continue with TATAG and instead, they
pursued PREDA Foundation. Many NGOs are operating in Olongapo City

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including A Child's Trust Is Ours To Nurture (ACTION), and the highlight of
this study, is the People’s Recovery, Empowerment, and Development
Assistance (PREDA) Foundation.
PREDA Foundation is a public non-profit organization located at
Kilometre 129, National Highway, Upper Kalaklan, Olongapo City,
Zambales, Philippines. It was founded in 1974 and has been promoting social
development and human rights in the Philippines. Through public lectures and
an international touring play company, they are aiming to promote and protect
human rights, particularly those of children. They advocate for a just and
equitable society in which social equality, fairness, and respect for human
rights are upheld for all. They fight to abolish sex tourism and the commercial
sexual abuse of the underprivileged in slums, sex bars, as well as on the
streets. They also support schooling for females, healthy job opportunities,
and efforts to live with dignity for young people.
This study is based primarily on the concept of how People's Recovery,
Empowerment, and Development Assistance Foundation, a third public sector
organization displays its transparency and governance given that they are a
charitable institution having its operations susceptible to corruption by means

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of handling its accumulated funds from organization's activities. According to
Rodriquez et al., (2020), to achieve sustainable development, both peace and
the governance of institutions are needed. One of the objectives that should
be accomplished to attain social sustainability is reducing corruption and
boosting openness.
Transparency and good governance are significant strategic
considerations for NPOs. Demonstrating to society that funds received are
managed effectively and that they are primarily allocated to the NPO's
objective is one of the biggest issues the third sector faces. It is essential to
use ethical management techniques for NPOs. Therefore, emphasis is placed
on providing relevant and trustworthy information to all stakeholders.
Transparency and good governance are concepts that provide an NPO with
legitimacy in the eyes of society and increase the reputation and trust required
by donors to furnish the funds necessary for the survival of the organization,
(Rodriguez et al., 2020). These charities and non-profits frequently engage in
weak financial reporting and accounting procedures. Weak management and
bad decision-making are part of the problems faced by these organizations
painting a picture of bad governance, (Chokkalingam et al., 2015). Since

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NPOs are responsible to numerous stakeholders, including the general public
and resource suppliers, detailed reporting is essential. NPOs rely heavily on
the support of outside parties to operate sustainably and carry out their social
missions. These parties require NPOs to be more reliable and transparent in
reporting to help encounter their concern about the effectiveness and
efficiency of the funds' management, (Arshad et al., 2017). One of the
methods for demonstrating accountability and winning over stakeholders is
still viewed as financial reporting. Because stakeholders have access to
financial data, funders are aware of how their contributions are used for
carrying out their activities. Thus, an organization that discloses more
information about management and finances will gain more support and
confidence from the public, (Basri et al., 2010).
According to de las Casas et al., (2006), while setting standards on good
internal governance, financial management, and reporting is important, it is
crucial that the accountability promoted through self-regulation systems is not
hijacked by a narrow technical understanding of the term. Since benefactors
are the main reason NGOs operate, NGO accountability must also focus on
defining and enhancing accountability to them. In order to execute an

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organization's objective and uphold its credibility, accountability to
benefactors must be achieved. This calls for a stronger emphasis on
beneficiary accountability in the requirements established by self-regulation
programs. Popular support must not be taken for granted. In pursuing good
governance, the state must develop adequate policies that will resolve
economic, political, social, and environmental challenges. In this account, all
citizens must be p ersonally responsible for the overall outcome of their
country's development. A fair and effective government must not only
successfully express the will of the state through the representation of political
leaders, but it must also carry out the welfare of all other citizens, and all
organizations at all levels in national and local communities, private sectors,
agencies, or groups. It is very necessary that everyone recognize the welfare
of the many, relates to common ethical/cultural standards, and must indicate
solidarity irrespective of their cultural, political, and economic differences,
(Abitona, 2014).
Managing an NGO's finances may be compared to driving a car. The
car's general functionality decreases and won't run properly if they don't
regularly repair it and fill it up with good gasoline and oil. If left unattended,
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the car will eventually malfunction and not make it to its destination. In
actuality, financial management entails maintaining an organization's
financial stability rather than relying on luck. This will involve managing
scarce resources, managing risk, managing strategically, and managing by
objectives, (Lewis, 2009). A crucial element of the program and management
of organizations, effective and responsible financial management is an
essential component of NGO accountability and sustainability. NGOs need to
have and execute effective financial management systems that satisfy
accountability standards while enhancing the sustainability of the
organization in order to exist and grow. Developing professional and strategic
financial management will not only increase supporters' trust, but it can also
enhance an organization's ability to manage its own resources for
sustainability, (Karanth, 2015).
According to Rodriquez et al., (2020), transparency becomes a matter
of vital importance that needs to be made visible. NPOs must therefore create
internal monitoring systems that let their stakeholders evaluate where
resources go after completing their social mission. For an organization to

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continue and fulfill its objectives, social credibility, which may be attained
through transparency and good administration, is essential.
Gaining loyal donors through the transparency of the nonprofit
organization is the very foundation of the charity. Donors want to see how
their every single action up to the smallest produces results that affect and
change the life of the beneficiaries, and this established a long-trusted
connection over the time. The long-term outcomes of this donor's loyalty
create a consistently growing revenue to fund the organization's activities, it
as well increases the participation of people in events by donor's
encouragement to others through securing their trust by spreading positive
feedback through their experiences with the organization, (Woloszyn, 2022).
And all these products of donor loyalty and trust lead to a nonprofit
organization achieving its goals.

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“People’s Recovery, Empowerment, and Development Assistance

Foundation”: A Case Study of Transparency and Governance in a Third
and Public Sector Organization
PEOPLE’S RECOVERY, EMPOWERMENT,

AND DEVELOPMENT ASSISTANCE
FOUNDATION
TRANSPARENCY GOVERNANCE
ACHIEVE THE ORGANIZATION’S GOAL
Figure 1. Conceptual Framework of the Study
Statement of the Problem
This study aims to determine the impact of how transparency and good
governance of the " People's Recovery, Empowerment, and Development
Assistance " Foundation helped in achieving its goals as a third sector and
public organization in Olongapo City, with the purpose of exploring its
management and accounting flows towards maintaining their objectives,
mission, and vision to provide assistance to families.

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1. What is the profile of "People’s Recovery, Empowerment, and
Development Assistance" Foundation as a Third and Public Sector
Organization:
1.1 Reasons for Founding a Third and Public Organization
1.2 Complied Requirements as a Third and Public Organization
1.3 Years of Service as a Third and Public Organization
2. How does the "People’s Recovery, Empowerment, and Development
Assistance" Foundation view the concept of transparency and good
governance as useful to fulfilling their organization’s goals?
3. How are their sources of funds continuously supporting their cause and
other means to defray necessary expenses of the organizations?
4. What are the problems and challenges encountered by the organization that
affects its transparency and governance?

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Assumption of the Study
As stated by Simon (2013), assumptions are a necessary element in
proposals, because they are required to enable and conduct the study. There
are frequently assumptions in the proposed study that must be made in order
to carry it out, but which cannot be proven. PhDStudent (2013), also states
that assumptions are things that are accepted as true, or at least plausible, by
researchers and peers who will read the dissertation or thesis.
At the end of this study, the researchers assume that the People's
Recovery, Empowerment, and Development Assistance Foundation view
transparency and good governance as pertinent factor to achieving its
organizational goals.
Scope and Delimitation
This study focuses on transparency and good governance in a third and
public sector organization particularly the People's Recovery, Empowerment,
and Development Assistance Foundation, Olongapo City. No other non-profit
sectors are included in this research as it is exclusively focused on the People's
Recovery, Empowerment, and Development Assistance Foundation. The data

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collection was conducted for the members of the People's Recovery,
Empowerment, and Development Assistance Foundation, who will represent
the entire population.
This study gathered the information and profile of the organization and
its founding as a third and public organization in Olongapo City. This study
did not cover other problems not considered part of the organization's
transparency and good governance.
This study was done through an interview as data gathering and
reference. Through this strategy, the researchers were able to gather data about
the organization's transparency and good governance.
Significance of the Study
This study will be undertaken to find out the significance of
transparency and good governance in a third and public organization in
achieving their organizational goals.

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Benefiting the study are the various sectors as follows:
Donors/Volunteers. The outcome of the study will help the donors
regarding where their donations go. This will affect their decision-making in
terms of funding the not-for-profit organization and giving them the
opportunity to reflect on supporting the said organization.
Government. The study will help them identify practical solutions to
such existing issues in transparency and good governance towards the
Nonprofit Organization. They could come up with a more effective policy
towards the disclosure of the third sector organization to achieve a corrupt-
free third-sector organization.
Members of nonprofit organizations. The entity's members are the
ones who are sacrificing their time and effort to make a change in the world,
hence they are affected as well especially if their respective members are the
ones committing fraud or corruption. This paper will help them b e more
observant of their co-members and in the long run, will create trust resulting
in a more successful and healthy relationship among them.
People who rely on non-profit organizations/beneficiaries. This
paper will help the beneficiaries see whether the respective organization they
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part with is transparent and true to their transactions and goals since they are
the ones directly affected by any anomalies the sectors have or will have.
PREDA Foundation. The result of the study will be beneficial for
them to gain more donors to support their work and the whole organization.
They can also assess their transparency and good governance in achieving
their organizational goals and consider the stated recommendations in this
study.
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Definition of Terms
The following terms are defined to give clarification to some technical
terms used in the study:
Entrepreneur – This refers to somebody who has thought and strives
to turn it into a good or service that customers will purchase, as well as the
company that will help that endeavor.
Fraud – This refers to a person or thing that aims to deceive others,
usually by fraudulently claiming or even being credited with achievements or
qualities.
Good Governance – This refers to emphasizing participation,
openness, responsibility, efficiency, and the application of the law in business,
government, and administrative agencies and processes.
Nonprofit Organization –This refers to a group established without
the intention of making money and in which none of the profits are given to
the directors, officers, or members.
Public Sector Organization – This refers to an organization that is
concerned with providing services to the general public.

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Socioeconomic communities – This refers to a system for categorizing
people according to their occupation, income, and education. Typically,
socioeconomic status is categorized as low, middle, or high. People with
lower socioeconomic levels often have limited access to resources for
finances, education, social interaction, and health.
Third Sector – It consists of non-profit and non-governmental
organizations whose mission is to provide public services.
Transparency – This refers to being open and honest, transparency is
the attribute of being easily seen through. This calls for the disclosure of all
pertinent information as part of best practices for business management so that
others can make wise decisions.

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Chapter 2
RESEARCH METHODOLOGY
This chapter presents the description of the research design, participants
and research setting, instrument and its validation, data gathering procedures,
ethical considerations, and analysis of data.
Research Design
With the aim of achieving the goals and purpose of this study, the
research design that was used by the researchers is the case and field study. A
case study is, in other words, small-scale research with meaning, (Tight,
2017). The attention given to case studies in the social research methods
literature varies, (Bryman, 2015). One of the strongest contemporary
advocates of case study, Yin (2018), offers rather, more hope, discussing a
range of different approaches that have been taken towards addressing validity
and generalization in case study evaluations, including alternative
explanations, triangulation, logic models and analytic generalization theory.

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This study is Qualitative Research. Adi Bhat (2018), defines qualitative
research as a market research method that focuses on obtaining data through
open-ended and conversational communication. This approach considers
"why" people think what they do as well as "what" they think. According to
Pathak, Jena, & Kalra (2013), qualitative methods are used to understand
people's beliefs, experiences, attitudes, behavior, and interactions. It produces
data that is not numerical. Cause and effect are rarely sought after in
qualitative research. Instead, it considers viewpoints, motivations, and
meaning. By explaining an occurrence in its context, qualitative research is a
great tool for examining challenging, novel, or little-studied topics. The
qualitative approach's fundamental principle is that researchers cannot be
wholly objective or disengaged from the collection and analysis of data.
Qualitative research values the experience of the research participant and can
offer valuable insight into the settings and situations (Clarke, A.M., & Jack,
B., 1998). The research interview is one of the most crucial qualitative data
collection techniques, claimed by Qu & Dumay (2011). It has been
extensively used in field research and ethnographic studies. The goal of a
qualitative research interview is to examine a subject's or topic's experiences,

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viewpoints, or beliefs. In qualitative research methods, interviews help you to
get a deeper understanding of social trends as compared to the data collected
using quantitative methods such as questionnaires, (Bhasin 2019).
Participants and its Setting
People's Recovery Empowerment and Development Assistance
Foundation, Inc. was the chosen research locale of the researchers with the
use of the purposive sampling method. Dudovskiy (2022), states that
purposive sampling (also known as judgment, selective, or subjective
sampling) is a sampling technique in which the researcher chooses members
of the population to participate in the study based on his or her own judgment.
The researcher used this type of sampling method in order to select t hose who
have the information they need to obtain. It allows the researcher to select
participants who possess the necessary knowledge, expertise, or experiences
related to the research topic rather than including individuals from a larger
and potentially less relevant population. Purposive sampling can be a time and
resource-efficient sampling method compared to other probability sampling
techniques. The purposive sampling method aligns well with qualitative

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research designs that emphasize in-depth exploration and understanding
rather than showing numbers or quantitative data.
PREDA Foundation is a public non-profit organization located at
Kilometre 129, National Highway, Upper Kalaklan, Olongapo City,
Zambales, Philippines. A Philippine human rights and social development
group called PREDA Foundation has been active since 1974. Through public
lectures and an international touring play company, they are aiming to
promote and protect human rights, particularly those of children. They
advocate for a just and equitable society in which social equality, fairness, and
respect for human rights are upheld for all. They fight to abolish the practice
of sex travel and the commercial sexual abuse of the underprivileged in
brothels, sex bars, and on the streets. They also support education for females,
healthy labor, and work to dignify young individuals.
The participants in the study are the founder of the PREDA Foundation,
Fr. Shay Cullen. He is an 80-year-old missionary from Ireland who began
serving in the Philippines in 1969 and established the PREDA Foundation in
1974. A humanitarian organization fighting to end sex slavery and human
trafficking while defending the rights of women and children. Also, the
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President of PREDA Foundation Mr. Francisco Bermido Jr. along with some
of their staff were among the respondents of the study.
Instrumentation
Construction and Development. The research instrument is a self-
made interview questionnaire with questions developed to determine what
must be sought to further understand the study. It is composed of two parts,
mainly the profile and the interview proper. The first part focuses on the
profile gathering and the necessary information pertaining to the foundation
of a Third and Public Sector Organization, reasons for founding it, the
requirements to be complied with, and years of service. The second part is the
interview proper, which discusses the transparency and good governance of
that particular organization.
Validation and Reliability. The instrument was checked by the
research adviser for some comments, suggestions, and revisions. Also, the
revised questionnaire was again checked by the research adviser for
finalization and approval. After which, it was then considered valid and
reliable.
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Ethical Consideration
The researchers prepared a letter of approval to conduct an interview
signed and approved by the Research Professor and the Dean of Business, and
Accountancy. The researchers strictly assured the confidentiality of the
answers to the concerned respondents and made sure that everything was in
accordance with the Data Privacy Act. The time and effort of the respondents
were highly appreciated.
Data-Gathering Procedure
The researchers have decided to utilize their self-made interview
questionnaire as part of their data-gathering procedures. Prior to conducting
an interview, a letter of approval was first submitted to the research adviser as
well as to the Dean for validation purposes. Afterward, the researchers then
notify PREDA through a written e-mail to ask permission if it is possible to
conduct some interviews with them. The PREDA then scheduled a specific
day for the planned interview in their good office of People's Recovery,
Empowerment, and Development Assistance Foundation, Inc. which is

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located at Kilometre 129, National Highway, Upper Kalaklan, Olongapo City,
Zambales.
Data Analysis Technique
Since the researchers' study was all about a case study of a particular
Third and Public Sector Organization which is the People's Recovery,
Empowerment, and Development Assistance Foundation they would use
narrative analysis as their data analysis technique. The researchers intend to
explore and understand more of the participants' knowledge, insights, and
perceptions regarding the study in relation to their lived experiences. The
researchers gathered the data through the use of smartphones to record the
whole interview process in the audio format while simultaneously taking
down notes. Afterward, the researchers compiled all written down notes and
all the recorded audio and transcribed them into words to further analyze the
collected data. The data gathered based on the narratives of the respondents
was then interpreted and analyzed thoroughly along with the summary of
findings.
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Chapter 3
RESULTS AND DISCUSSION
This chapter emphasizes the results and discussion of the respondents'
answers regarding the conducted interview with the researchers and interprets
them meaningfully.
The respondents of the study are the founder himself, Father Shay
Cullen together with their president Mr. Francisco Bermido Jr., and some of
the PREDA's staff. Irish missionary Father Shay Cullen, 80 years old, started
serving in the Philippines in 1969 and established the PREDA Foundation in
1974. a humanitarian organization fighting to end sex slavery and human
trafficking while defending the rights of women and children.
1. What are the significant reasons for being a Third and Public
Organization?
PREDA Foundation is an NGO committed to serving the public and
helping the poor. As PREDA states that their organization is structured to
deliver the maximum impact with many people as possible with limited
resources of NGOs because they are not government and the whole point of
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NGOs is to serve those people whom the government does not serve. Their
mission and goals are to serve victims of child sexual abuse. Their priority is
the prevention of education and the community, especially the prevention of
human rights violations to dignify the rights of women and children. As for
PREDA, its purpose is to educate the public on human rights and the rights of
women and children.
According to the Northen Bridge (2010), most third-sector
organizations typically devote themselves to either a specific problem that
needs to be solved (for example, climate change or unaffordable housing), or
to a specific group in society that needs support and representation (for
example, dementia patients or women facing cultural barriers to education).
They might provide services pertaining to these problems (such as managing
a women's shelter or providing legal counsel). While some organizations
focus on a broad variety of issues, they do it from a particular philosophical
and political perspective. They may have a local, national, or global focus.
Wess (2021), states that organizations in the public sector are focused
primarily on infrastructure and essential services for society, like education,
electricity, defense, agriculture, transport, and so on. Heaslip (2020), also

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states that a nonprofit organization is one that qualifies for tax-exempt status
by the IRS because its mission and purpose are to further a social cause and
provide a public benefit. Healthcare facilities, educational institutions,
national charities, and foundations are examples of nonprofit institutions.
According to UpCounsel Technologies, Inc (2020), the purpose of nonprofit
organizations is generally to improve the quality of life for others at a
community, local, state, national, or even global level. These groups are
committed to advancing the public interest rather than private or monetary
benefit. Machula (2017), argues that a nonprofit organization serves the public
or mutual benefits and interests. Becoming a nonprofit does not indicate that
the company does not make a profit; rather, it merely means that no revenue
is generated to be collected as income. Typically, they are used for
philanthropic, educational, religious, or scientific purposes.

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2. What are the essential requirements to be established as a third
and public organization?
In conformity with the PREDA, to be established as a third public
organization they must be SEC and DSWD registered and be accredited to be
effective. The accreditation and license by the DSWD are high standards so
that the organization can operate, although most NGOs are not accredited. The
PREDA is also a member of PCNC (Philippine Council of NGO Certification)
which is a very high-level accreditation of NGOs in the Philippines. There are
only 300-400 accredited NGOs of PCNC, but PREDA has achieved that level
already. PCNC ensures that all NGOs like PREDA have complied with the
provisions of the taxation law, that is the board of trustees are not receiving
remuneration, and the income of the foundation is spent on activities and
projects that promote its vision, mission, and goals.
The researchers verified Fr. Shay's statement concerning PREDA
having an accreditation and license by the DSWD through looking over their
certifications issued by the latter. The researchers were able to find the said
certificate of accreditation and license to operate on their official Facebook

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page which covers 3 years of validity from November 9, 2021, to November
10, 2024, for the license and also covering 3 years of validity starting June 19,
2020, to June 20, 2023, for its accreditation. For PREDA's accreditation of
PCNC, researchers visited the official site of the latter and they were able to
confirm that PREDA is indeed accredited by PCNC as the PCNC issued a
certification to PREDA on July 29, 2020, and is valid up to July 29, 2023. The
picture of the certification is posted on PREDA's official website. All of the
certifications are also displayed at PREDA's main office, and it is as well
attached to this study's appendices.
According to Olivia, M. and Domingo, Z (2013), Third Sector
Organizations (TSOs) are permitted to exist and conduct business without first
registering with a government body. Only those TSOs who want to access or
raise money, open a bank account, make contracts, take part in government
programs, or just have a legal existence are required to register. Some donors
do not even care if the TSOs are registered; instead, they base their donations
on the individuals involved and the causes that the TSOs support. A TSO may
register with, obtain a license from, or become authorized with several

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governmental organizations, and the processes are straightforward. Globally,
the Third Sector is typically against heavy regulation. According to Tax and
Accounting Center (2014), a non-stock and non-profit corporation in the
Philippines is one that operates for a not-for-profit undertaking such as
charitable institutions, associations, foundations, health organizations,
environmental activities, and others in the line. Instead of giving investors
shares in the company, it instead accepts members in accordance with the
guidelines outlined in its bylaws. Donations, contributions from members, and
a portion of the earnings from fundraising efforts could all be used to support
its operations. According to a BIR ruling, it can be free from income tax and
value-added tax on sales. However, it is required to deduct taxes from its
income payments and compensation, and it may be required to pass on a 12%
value-added tax on its purchases from suppliers who are registered for VAT.
Britanico (2021), states that non-stock corporations may be formed for
charitable, religious, educational, professional, cultural, fraternal, literary,
scientific, social, civic service, or similar purposes, like trade, industry,
agricultural and like chambers, or a combination of these. A non-stock
corporation's revenue is not distributed as dividends to its members, trustees,

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or officials like it is with a corporation organized for profit. A non -stock
corporation should instead spend whatever profits it makes from operations
towards the goals for which it was set up. According to the Council on
Foundations (2013), accredited NGOs must be set up and run solely for one
or more of the following objectives (Revenue Regulation No. 13-98 Section
1(b)): scientific, research, academic character-building, sports, and youth
development, well-being, the welfare of society, cultural, or charitable
purposes. According to Rudder and Main (2023), to start a nonprofit, begin
by doing some research to ensure that they will meet their goals when they
start their nonprofit. Then, start putting together a foundation that will aid in
bringing in donations, and be ready to submit the required documentation to
obtain their tax-exempt status. After that, submit the necessary documentation
to be recognized as a tax-exempt organization, including the articles of
incorporation. Finally, perform the following actions each year to maintain
their tax-exempt status: Research Feasibility and Need; Build a Strong
Foundation; File Articles of Incorporation; File for Tax-exempt Status; and
Maintain Their Tax-exempt Status.

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3. How are they generating the necessary funds to finance its
multifarious activities?
As per PREDA, their foundation is operated and supported by a private
business of fair trade which is known as "PREDA Fair Trade." According to
them, it is important because there are very few NGOs that are self-supporting.
The official and registered name of the company in the BIR is "Pro Fair Trade
Development Enterprise" which helps the indigenous people of Zambales, the
Aetas. The Pro Fair Trade Development Enterprise is a trading and
development organization that exports products that are processed in Bulacan.
They are buying reject Indian mangoes and they are selling them at a markup.
The funds they raised go back to the farmers and they are using the proceeds
and earnings from it to fund the children's homes. PREDA's 4 children's
homes are funded by about 50% by the PREDA Fair Trade. They also have
international short-term donors for anti-slavery funds, anti-trafficking funds,
and other funds to support their works. They were earning from trading and
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therefore can support their own foundation. At the s ame time, they are
receiving support from other organizations and from individual donors.
Ibrisevic (2020), states that for nonprofit professionals, identifying
funding sources and deciding on the right funding model for their organization
is one of the most challenging tasks at hand. It might be difficult to decide
how to manage nonprofit funds in the best possible way. According to Willis
(2023), One of the greatest challenges for nonprofit organizations relates to
funding. Nonprofit organizations frequently struggle to raise the money
necessary to deliver free or inexpensive services to underserved communities.
However, there are chances in the charity sector to create additional revenue
streams, just as there are in most industries. Nonprofit organizations that can
secure numerous sources of money not only operate in a more sustainable
manner that is not entirely reliant on one source of income, but they also
appear more enticing to potential donors. Folger (2019), also states that as
nonprofit organizations, NGOs rely on various sources for funding projects,
operations, salaries, and other overhead costs. The success and continuation
of the NGO depend on its fundraising efforts. Membership dues, sales of
goods and services, for-profit businesses in the private sector, philanthropic

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foundations, funds from state, local, and federal organizations, funds from
foreign governments, and individual donations are some of the funding
sources.
4. Do they view transparency and good governance as a pertinent
factor to achieving its organizational goals?
PREDA states that the organization must be transparent. Their
transparency is all done by audits which is strict because they are audited not
just locally but internationally. "Auditing at PREDA is super strict because
it's united nations, it's not local only, we have to report to the SEC, we have
to report to everybody." Without those audits, they will not be able to get
donations. So, they are working hard to keep all the big paperwork for all the
transparency. They conduct at least two (2) formal audits, internal and
external, that are internationally inspired and make about five (5) reports a
year. This is because aside from the stakeholders, the management, and the
board of trustees of PREDA also use the result of the audited report, hence,
they are making sure that every expenditure is correct and proper and is
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recorded duly in the books of PREDA. The top rule of the foundation when it
comes to transparency is that they should never tolerate hand cash vouchers
because there are many temptations in cash. "Human nature is very weak.
When they see cash, people change. All those religious churches go when they
see cash, they forget religion and grab the money. Sorry! That is the way
nature is. That is why we have a job, to protect the organization from being
stolen." Their expenses for food and everything are all by checks. The
organization also promotes accountability for anyone to take necessary
actions for the actions they take.
Further findings by the researchers are the external audit being
conducted at PREDA but not the audit required by the BIR or SEC, but an
external audit commissioned and paid for by the funding agencies which is
called Recipient Contracted Audit. To give an example, they received funds
from the United Nations anti-slavery fund, this donor does not rely on audits
required by the government they want their own audits. They would pay their
trusted auditors who know what they want to see in an organization. The
PREDA stated that if they received funds from these funding agencies, they
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are committed to agreeing to this Recipient Contracted Audit. The PREDA
then added that so far there are no negative findings by their external audit
and all the opinions made by their external auditors are unqualified opinions.
According to O'Malley (2017), cash is an area with a high risk of error
and fraud. Considering there exist so many potential controls in this area of
high risk, each one that is chosen should be assessed based on cost toward
value in order to identify and get rid of fraud and error. Jules (2023), states
that the purpose of having detailed and efficient cash handling procedures is
to crack down on nonprofit fraud, inappropriate spending, or very simple
mistakes. Making sure that everyone on staff is aware of the right ways to
handle money in the company is possible by making a thorough policy for the
operation available. Making a “checks and balances” system lowers money
theft and ensures that everyone involved in transactions is held accountable
while enabling quick and straightforward transactions. WECAN Advocacy
Network (2023), states that A major problem, particularly in non-profit
organizations, is proper governance. They must uphold their reputation for
honesty and integrity, and they must have efficient decision-making processes
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if they are to succeed in their purpose. They must exhibit a high level of
accountability for their neighborhood and the general public. Organizations
must establish their decision-making policies and put in place an internal
system of checks and balances to make sure the public interest is served if
they are to develop into successful non-profits. Additionally, since reputation,
integrity, and trust are among non-governmental organizations (NGOs) most
valuable assets, openness is crucial. The organization may be in existential
danger if its reputation and public trust are damaged. Organizations must
therefore understand what it means to be transparent, what information should
be shared, and how to declare interests. According to the National Council of
Nonprofits (2023), there are various reasons why a charitable organization
might choose to carry out an independent audit, regardless of whether
government or federal legal obligations for audits do not apply to that specific
nonprofit. To show the humanitarian organization's dedication to financial
transparency is one of the main justifications. Donors and the public have
grown to expect charitable NGOs to engage in transparent processes, such as
posting an independent audit report on the organization's website or making

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the report available upon request. Potential donors might desire reassurance
that the benevolent nonprofit follows approved financial practices .
5. Is it the lived experience of people and community or the sense of
willingness and voluntariness they display that drives them most
into founding this kind of organization?
According to PREDA, very few are paid volunteers. Everyone is a paid
professional employee. The founder himself says that he is the only volunteer
in their organization because he is a missionary from Ireland since 1969, 53
years ago. Father Shay Cullen also went here to the Philippines to establish
PREDA in 1974. As for their NGO, they insist on a high professional standard.
Moreover, they have professional people in accounting, management,
business management, and in organizational management. The founder said
that their president Mr. Francisco Bermido Jr. is a graduate of public
administration and Mr. Emmanuel Drewery who has a Ph.D. in public
administration. They have high-level professionals running the PREDA

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Foundation and everyone is a paid employee at all levels following all the
strict labor laws and benefits, paying high salaries as high as possible.
The only source of funding for Chnang, an NGO restaurant and
hospitality school in Cambodia, is the sales of meals at the training restaurant
to tourists. Chnang is a well-known social enterprise in Siem Reap with the
goal of achieving sustainable, local ownership and management. It was
created to graduate disadvantaged young adults into stable employment within
the region's growing hospitality sector', (Asia Life, 2014). The Thai Ministry
of Social Development and Human Security has had regulations about income
support for women and children who are in need of immediate assistance and
are having financial challenges for several years. A single payment of up to
10,000 Baht (about $400) is available to them as emergency financial
assistance. When someone is in an emergency, it could be due to the death of
a family member, a critical sickness, a life-threatening situation, or any other
reason. Services must be rendered in this situation right away. Clients can
receive financial support in non-emergency situations up to 2,000 Baht (about
$80) three times per year. In 2015, they allocated 0.4% of the national budget
to look after those living in difficult circumstances, (Bureau of The Budget,

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2015). On the other hand, people with intellectual disability in Australia were
living in state-funded "large residential facilities/institutions," 554 people in
state-funded "small residential facilities/institutions", most of which were run
by non-government agencies, and 243 in hostels run by non-government
agencies, (AIHW, 2013).
6. How are the conditions of their management and accounting flows
over the years of their operation?
PREDA Foundation has been operating since 1974. Since then, they
have been growing their flow and expanding their financial income with
international support and business expansion over the years. According to
them, their conditions have always been challenging as they are working in
the human rights sector. Their work has always been challenging in recent
years by the authorities. They say that the government is not very supportive
of human rights or women's rights as there's discrimination. They do not
recognize the equal rights of all people, so they are fighting against it, and
because of it, they get opposition from the government. Furthermore, in the
management of NGOs, as they are working on human rights, women's rights,

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and children's rights, and are responsible for challenging sexual abuse and
drug abuse in society, they get strong reactions from the government. And
Olongapo city government from many years until recently under the Gordon
is trying to kill PREDA. They want them to close and have Father Shay
deported because they expose all the sexual abuse under the administration of
the Gordon family like for wanting a sex city for servicemen, for the US Navy.
So, PREDA opposes that, and they campaign, and their management decision
is to save PREDA's home and close the military base. It is start in 1983, their
biggest campaign for economic change for the whole city of Olongapo is when
they decided to campaign to convert the military base. They want to close it
down but convert it so that jobs will be dignified for all Filipinos. Their
campaign went down from 1983 to 1993, totaling ten (10) years of
campaigning until the PH Senate agreed and they did not renew the bases
agreement. And in 1992, the last US Navy ship left and the conversion to an
economic zone began. A big administrative challenge for everybody. The
biggest contribution to the geopolitical shear that PREDA was able to make.
Of course, they have been galvanizing national support, but it took them ten
(10) years to get that support. They say it is a long time, but it works.
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"We must be determined and persistent, especially in this kind of work,
it's important not to give up and bravely faced all the hardships they give
because in the end all the hard work and efforts would be paid off," said Father
Cullen. So, what drives them forward is their commitment to the rise and
dignity of people.
In Uganda, monitoring and evaluation (M&E) is a procedure that aids
in performance improvement and outcome achievement. Its objective is to
enhance the management of outputs, results, and impact both now and in the
future. It is employed to evaluate the effectiveness of initiatives, institutions,
and programs established by governments, nongovernmental groups, and the
like. It establishes links between past, present, and future actions, (Rist, Boily
& Martin, 2011). According to a statewide survey conducted by the Uganda
NGO coordination board in 2013, certain NGOs' sustainability and survival
rested on founder members or chief executives rather than institutional
systems, which had an impact on their performance. For instance, it was noted
that some organizations hired relatives despite the minimum qualifications
needed in some jobs, undermining the professionalism of NGO management.
Other NGO officials additionally utilized the money from the project for
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personal gain at the expense of the project's intended actual beneficiaries.
Capital structure, capital budgeting, and short-term financial management
(sometimes known as working capital management) are the three main
divisions of financial management. However, because an NPO typically
depends on outside funding and does not generate its own income, debt is
extremely risky and therefore unfavorable, (C. Masters, CEO of C Master's
Development Services (CMDS), personal communication, 10 June 2010).
7. What are the problems and challenges encountered by the
organization that affects their transparency and governance?
The researchers found out through the interview that the government's
incompetence and corruption are the problems PREDA Foundation faces that
affect their governance. "Because we are on human rights work, NGO PREDA
has always been challenged many recent years by the authorities," PREDA
then added "government is not very supportive of human rights or women
rights as there's discrimination. They do not recognize the equal rights of all
people in government, so we are fighting against that, so we get oppositions

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to the extent that they are trying to kill our foundation and have me deported."
Thesen (2012), argues that opposing parties frequently answer to unfortunate
news because they see negative improvement in the issue of society for which
the government could take responsibility and in return, the government is also
forced to react when news threatening their image and competence is being
jeopardized.
Furthermore, the researcher discovered that although PREDA
Foundation is in conflict with the government, the government relies on them
to accept all children who experience sexual abuse from Central Luzon as they
have no homes and proper therapeutic centers to help them heal. The
government brings them the children with no money or very little allowances
if there is to support them so the PREDA Foundation caters to them all will
all their resources in which this also contributes to one factor that challenges
their governance. In the article, Top Challenges for Non-Profit Organizations
2022, most non-profit organizations end up getting less funding from the
government than they need to operate effectively, while some are left with no
funding at all.
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Additional findings of the challenges encountered by PREDA that
affect their transparency come from the nature of their work, hence there are
a lot of people who want them to fail in their mission. They have experienced
being reported at the SEC by one of their critics who anonymously reported
that PREDA Foundation is mishandling the fund they are receiving from the
donors. The SEC then conducted a special audit by sending two (2) auditors
to review the documents of PREDA particularly the Articles of Incorporation
and the By-laws. They studied the vision, mission, and goals of PREDA and
looked at the actual projects being implemented by the foundation, and
observed if they are actually doing it. The auditors found no anomalies. The
auditors then proceed by looking at their statements of account to see where
their funds are being spent, especially if the board of trustees of the PREDA
is receiving salary and even honorarium and tokens. The auditors found again
no anomalies. The PREDA Foundation then applied for a certificate of no
derogatory records from the SEC. A certification confirming that PREDA has
no pending case or open case in the SEC. Every year PREDA secures this
kind of certificate. This certificate can be found on PREDA's official site and
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even at their main office. The certificate is also attached to this study's
appendices.
For the minimization of risk or misappropriation of funds, corruption,
and graft of an organization, PREDA established an Internal Control System
in which all the bank accounts of PREDA are checking accounts. To be able
to withdraw funds, they need at least two (2) signatories. So even the founder
or the director alone cannot withdraw some funds without an additional
signature. Most of the transactions of more than five hundred (500) pesos must
be in a cheque, including the payment of food for the children so they find a
supplier who will supply all the food and pay them by cheque rather than what
they do back then which is buying at a supermarket where cheques are not
commonly used, and issuance of official receipts are not practice in which
failure of internal control will occur.
PREDA discloses its audited financial reports to the main government
agencies, which are the SEC, DSWD, and BIR. The Foundation as well gives
their stakeholders individual copy of their audited financial reports. They
refrain now from disclosing it publicly or posting it on their official website

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because it informs the critics of the fund balance of PREDA that occurred
many years ago. The founder and donor of PREDA Fr. Shay who also happen
to be the president back then receives an anonymous call saying that they are
from Davao and on their way to Zambales with a paid mission to assassinate
Fr. Shay. However, since they know the background of PREDA by reading
their website, they know that Fr. Shay are doing good for the Philippines so
they will stop the mission by Fr. Shay sending them money. They do not
disclose it to the public however the public can request a copy of PREDA's
audited financial statements to the SEC. The researchers acquired PREDA's
latest report to the SEC by disclosing it to them by the director of the
foundation.
8. Are there any compensation/allowances for the members or
volunteers?
The researchers asked if there are any compensation or allowances the
members or volunteers receive and the PREDA Foundation stated that "very
few here are volunteers, everyone is a paid professional employee." This is

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to ensure that all staff perform a quality performance in their duties. Chandra
(2018), found in his study that compensation management practices affect the
employee's motivation to work hard.
PREDA Foundation insists on following all labor laws and benefits and
paying their employees a high salary. The success and continuance of the
organization rest upon on how they treat its human resources, (Lawler, 2003)
this results in the organization attracting talented people. A motivated
employee tends to produce positive significant factors in organizational
prosperity that leads to more efficiently and more effectively reaching their
organization's goal. Hafiza et al (2011), conclude that monetary compensation
is a potentially powerful tool to motivate employees to perform an activity.
PREDA Foundation has a big profile and reputation to maintain, hence the
strict monitoring and compensation of their employees.
To confirm Fr. Shay's statement about the compensation the PREDA
Foundation is issuing, the researcher asked some of PREDA's staff in which
they disclosed that the starting salary of new staff in their foundation even
with no experience is sixteen thousand pesos (16,000) per month. That is
738.46 pesos per day compared to the minimum salary rate of four hundred
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pesos (460) per day in Region 3. It corroborates with what Fr. Shay said in the
interview.
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Chapter 4
Summary, Conclusion, and Recommendations
This chapter highlights the study's findings, conclusions, and
recommendations.
Summary
The purpose of this study is to learn how the "People's Recovery,
Empowerment, and Development Assistance" Foundation's transparency and
good governance helped them achieve its goals as a third sector and public
organization in Olongapo City, to explore its management and accounting
flows towards maintaining their objectives, mission, and vision to aid
families. Furthermore, the study sought to provide answers to the following
questions which include the profile of the PREDA Foundation as a third and
public sector organization, how they view the concept of transparency and
good governance as useful to fulfilling their organization's goal, how are their
sources of funds continuously support their cause and other means to defray
necessary expenses of the organizations and what are the problems and
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challenges encountered by the organization that affects their transparency and
governance
The research design used by the researchers is a case study understood
to be qualitative research which uses interviews as an instrument to provide
thorough information and high-quality data. The participants in the study are
the founder of the PREDA Foundation, Fr. Shay Cullen, as well as their
director, Sir Francisco Bermido Jr., and some of PREDA's staff. PREDA
Foundation is a Philippine human rights social development operating since
1974 with its main office in Kilometre 129, National Highway, Upper
Kalaklan, Olongapo City, Zambales. The researchers use a self-made
interview questionnaire consisting of various questions developed to
determine what must be sought to have a much further understanding of the
study. The researchers prepared a letter of approval to conduct an interview
signed and approved by the Research Professor and Dean of Business and
Accountancy. The researchers strictly assured the confidentiality of the
answers to the concerned respondents and make sure that everything will be
in accordance with the Data Privacy Act. Since the researcher's study is all
about a case study of a specific Third and Public Sector Organization, which
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64
is the People's Recovery, Empowerment, and Development Assistance
Foundation, a narrative analysis will be used as their data analysis technique.
The researchers intend to learn more about the participants' knowledge,
insights, and perceptions of the study in relation to their lived experiences.
The data gathered based on the respondents' narratives will then be thoroughly
interpreted and analyzed, along with a summary of findings.

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Conclusion
The following are the findings of the study, which was concluded,
based on its findings:
1. Every Third and Public Organization serves a specific purpose in which
the PREDA found theirs in a way of helping serve those ill-treated
individuals especially those sexually abused children whom the
government failed to serve find healing and provide a comfortable
home as well as education to help them restore their dignity. So as to
make the public aware that such cruelty exists, hence encouraging them
to fight this.
2. PREDA Foundation complied with all the necessary requirements
needed to be established as a third and public organization. Not only
did they conform to the SEC and DSWD they are as well members of
PCNC (Philippine Council of NGO Certification). Nonprofit
organizations need to be accredited at a prominent level so that the
organization can operate and be effective to accomplish its goals and
objectives.
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3. It is important for the nonprofit organization to also generate their own
funds than relying only on donations and support from the government
and others. PREDA Foundation has a good strategy for sourcing the
funds they need to improve their work and to support the development
of the foundation. As they have the "PREDA Fair Trade" to support
their own organization to generate more funds in expanding the
foundation, in addition to those local and international donors.
4. The PREDA Foundation conducts an internal and external audit at least
twice a year as which a way to determine that such an organization is
indeed transparent and has good governance. Moreover, the
foundation's funding agencies also conduct their own external audit of
PREDA by sending them their own auditors, which is called Recipient
Contracted Audit. PREDA viewed being transparent as a way to
persuade more donors to donate as they can see where their donations
are being used, hence, they are being strict and particular in this.
5. PREDA Foundation consists of a few paid volunteers, the founder,
Father Shay Cullen, is the only volunteer. The foundation ensures that
everyone is a paid professional employee to achieve high professional

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standards in running and managing all their operations in accounting,
management, business management, and organizational management
as well.
6. PREDA Foundation has been growing the flow of their management
and accounting since 1974 despite many challenges they have
encountered every step of the way such as the way they are challenged
by government authorities under the Gordon Administration by not
giving support and continue opposing with their cause over their years
of operation and even the problems of prostitution in Olongapo during
the US Navy base occupation.
7. PREDA's opposition towards the government's incompetence and
corruption stems from the nature of their work which is fighting
oppression and sexual abuse on children together with working on
human rights, create a negative reaction on the part of the government
because of their competence as an authority as well as their credibility
is being questioned. The transparency and governance of PREDA have
been challenged by its critics in a way of reporting the PREDA to the
SEC with some mishandling of funds received, however, PREDA was

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able to overcome this by staying true and clean to its reason of
foundation. To also avoid corruption among the staff, PREDA
implemented in their Internal Control System the use of a checking
account and at least two (2) signatories to be able to withdraw. Most of
the disbursement must also be made by cheque. PREDA Foundation
was also able to secure every year a certificate of no derogatory record.
PREDA discloses its audited financial statements to the SEC, DSWD,
and BIR and its stakeholders. They do not disclose it publicly anymore
due to extortion that happened many years ago, however, the public can
request a copy from the SEC. Therefore, it is concluded that they lack
transparency due to the failure of public disclosure of financial reports.
8. PREDA having a big profile viewed compensation to their employees
as one way to keep improving and maintaining the quality of their work
in which results in achieving their organizational goals that reflect as
positive governance as well as being transparent to which attracts
donors to give more to the PREDA Foundation, hence they insist on
hiring professionals with high standard education.

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Recommendations
The researchers would like to suggest the following based on the
results:
1. The PREDA Foundation should continue to develop and achieve its
mission and goals to inspire others to take necessary actions for the
certain issue one is trying to resolve, especially issues regarding of
exploitation and sexual abuse, as this is rampant nowadays. They
should also conduct specific advocacies for public awareness about
women's and children's rights.
2. The foundation should continue to comply with all requirements
necessary to maintain a good image and reputation with the public.
3. PREDA Foundation should continue expanding its fair-trade business
so that it will not only rely on the funding of the government and
donations of individuals to support its organization's operational
expenses.
4. Being transparent about where the donations are being utilized attracts
more suppliers and donors to support the foundation, hence, it is
recommended that they should observe and maintain their transparency

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and good governance to gain more public interest so that they will
achieve what they set as their goals and objectives are, as a third sector.
5. PREDA should encourage and recruit more volunteers, especially
youth volunteers in the future. This way, youth volunteers who want to
join in this kind of cause will be given an opportunity to help the
oppressed people and be a part of providing a new life and beginnings
for them.
6. PREDA should continue with their dedication and determination in
helping oppressed people especially women and children who
experienced violations of their rights such as discrimination, sexual
abuse, and other injustices. Non-government organizations like
PREDA serve as the protector of the rights of the oppressed people and
their continuous work and effort is a great contribution to society and a
big change for the world.
7. PREDA should conduct more programs in which they will be able to
voice out and show to the government that they are relevant in society,
and they have a greater purpose. Since the government often relies on
them in rescuing sexually abused children, the government imposes

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additional burden and responsibility on them to which they will need
more funding to cater to those children and function well as a
foundation. Also, it is recommended to follow its auditor's
recommendation to further improve the governance and transparency
of their foundation. Moreover, PREDA must come up with an
alternative solution on how they would disclose their reports to the
public as this is the crucial point of displaying its transparency, for
instances, posting it on their website and modifying the contents to
further avoid future blackmailing while simultaneously showing their
openness to all as this is one of the SEC’s encouragements to promote
transparency in all NPOs based on Chapter 3 of SEC Memorandum
Circular No. 25 Series of 2019.
8. It is recommended that the head of the foundation should have a close
conversation with every employee regarding the purpose of why the
foundation was established, that is to help those unfortunate women and
children so that the employee will not rely solely on money to bring out
their full potential in the workplace.

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ACKNOWLEDGEMENT
The researchers wish to extend their profound thanksgiving to the

following persons who have played a vital role in the making of this study. It
is with immense pride that we hereby present our research.
To Fr. Shay Cullen and Sir Francisco Bermido Jr. and to the whole
PREDA Foundation for extending their arms in accommodating us in all our
concerns, and for giving their precious time to conduct an interview with us.
Their willingness and honesty in answering the prepared questions are much
appreciated.
To Dr. Eric A. Matriano, who gave us the opportunity to conduct this

study. We are also grateful for the patience and support he gave us to finish
this study.
To our research professor, Mr. John Paul Redondo, for his

encouragement to complete all the parts and chapters and for guiding and
directing us on what to do. For his patience and efforts in trying to get off our
negativities.
To all the faculty and professors who did not ignore us when we were
asking questions and never hesitated to entertain us in our concerns. Their
advice and assistance helped us in keeping our progress on schedule.
To our parents who supported us emotionally and financially. We are

extremely grateful to them for their love, prayers, caring, and encouragement
throughout our study.
To our friends, for their help and useful recommendation on this study.
We are also thankful for saying the words "kaya ninyo yan" that have inspired
and cheered us up every time we feel so tired and hopeless.
And lastly, we would like to express our deepest appreciation to our

God Almighty Father, who has given us the strength, wisdom, and knowledge
to finish this research.
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APPENDICES
Appendix A
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Appendix B
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Appendix C
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Appendix D
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Appendix E
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Appendix F
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Appendix G
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Appendix H
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Appendix I
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Appendix J
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Appendix K
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Appendix L
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Appendix M
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Appendix N
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BIONOTE
Angela Mae F. Banal was born on July 28, 2002, in Gordon Heights,
Olongapo City, Zambales. She is also a bookkeeping NCIII passer. She is
currently taking up a Bachelor of Science Major in Accountancy at Columban
College Inc., as she hopes to become a CPA someday and live a contented
life. She was also a consistent honor student in both of her junior and senior
high school journeys.
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96
BIONOTE
Joan Marie V. Boquiren was born on July 11, 2002, in Castillejos,

Zambales. She is currently a third-year student studying for a Bachelor of
Science Major in Accountancy at Columban College, Inc. Her greatest
achievement in life so far is making it this far in pursuing her chosen career
path. She is hardworking and persistent enough to attain her goals and is
always ready to learn new things.
Tel No: (047) 222-3329, 224-1581
97
BIONOTE
Exequiel B. Carreon was born on November 11, 2001, in Balanga

Bataan. He is currently taking up a Bachelor of Science Major in Accountancy
at Columban College, Inc. He is eager and determined to become a CPA
someday and live a happy and successful life. His skills include leadership
skills, and being competent, for he is a hardworking and clever student. Other
than that, he is also a consistent honor student from his elementary days up
until his senior high years.
Tel No: (047) 222-3329, 224-1581
98
BIONOTE
Raye Anne N. Concepcion was born on December 16, 2001, in San

Antonio, Zambales. She is taking up a Bachelor of Science Major in
Accountancy at Columban College, Inc., where she developed core
knowledge and skills in accounting. She is committed to advancing her skills
in her chosen career field by pursuing chances that let her advance
professionally while efficiently applying her broad set of skills.

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COLUMBAN COLLEGE INC.

#1 1st. St. New Asinan Olongapo City

"PEOPLE’S RECOVERY, EMPOWERMENT, AND DEVELOPMENT

In partial fulfillment of the requirement for the degree of Bachelor of

Prof. John Paul D. Redondo, LPT, MBA

Approved by the Committee for Oral Examiners

Dr. Peter O. Tulio, CPA, LPT

Accepted and approved in partial fulfillment of the requirement for the

______________________ Prof. Eric A. Matriano, Ed. D, Ph. D

“People’s Recovery, Empowerment and, Development Assistance Foundation” a

Mr. John Paul D. Redondo, LPT, MBA

Keywords: Transparency, Good Governance, Third Sector and Public Organization,

THE PROBLEM AND ITS BACKGROUND

Organizations in general are primarily established by an entrepreneur

instances wherein an organization is built not because an entrepreneur desires

other people. This type of organization is commonly called a non -profit

organization. Non-profit organizations or third/public sector organizations or

reasons. In many instances, these organizations provide opportunities to those

society, the community, or a country. They earned or generate funds using

donations, fund-raising activities, membership fees, and selling products and

services to attain their entity's goals.

be it big or small it is? Perhaps transparency in the governance of these

organizations should be looked into.

Transparency is either a characteristic or a state of being transparent.

metaphorical manner of referring to a state in which nothing is being

attempted to keep anything hidden. Transparency can be a way to solve errors

and influenced international politics and the excesses of globalization, there

same norms of responsibility that it requires from the government and

general, it is believed transparency enables international organizations to

better address difficult issues about environmental concerns. Non-

governmental organizations (NGOs) that serve non-profit public interests are

frequently regarded as crucial elements and drivers of transparency among

civil society participants, (Petersson, M. T., 2020).

government reformers. Governments, international organizations, civil

placing greater transparency reforms on their agendas, from local initiatives

like the Ugandan intervention to the Open Government Partnership initiated

Kingdom (UK), social enterprise organizations (SEOs) have expanded to

framework (differentiating between legal, constructive, and voluntary

responsibility) created specifically for SEOs, 129 UK SEOs' annual reports.

The results demonstrate that a large number of SEOs neglect to include

voluntary and helpful accountability information in their annual reports.

Instead, they focus on complying with legal disclosure requirements in order

to maintain legitimacy and build a reputation with significant resource

sources. The third sector relies on non-government funders (NGFs) for a

substantial amount of its funding. In the field of private philanthropy, there is

a lack of literature and access to stakeholders and institutional processes is

government leaders responsible is limited by the minimal public disclosure of

decisions in an Australian context. In contrast to a reliance on hierarchical

accountability and transparency, it is discovered a sense of trust is established

as part of the decision-making process through a more socializing kind of

responsibility, based on human interaction. The study is focused on how

Norwegian NGOs, on the other hand, are generally well-liked by their

Palestinian business associates. The Norwegian NGOs being studied are

is so strong that employees in the country offices are aware of representing

rely on outside funding, they work to establish a good reputation and to be

perceived by their funders as responsible, extremely skilled, and impartial,

monitoring or accountability system for non-governmental organizations

to be accredited. Although the accreditation procedure can be long, it is not