Annual Report

2008-09CAUCUS OF DEVELOPMENT NGO NETWORKS, INC.

ANNUAL REPORT TEAMDodo MacasaetCezar BelangelRoselle RasayYanee Aguirre

Photos of National Board of Trustees and National Secretariatby Garrie David

Cover Photos byLizel Mones and Yanee Aguirre

Annual Report

2008-09CAUCUS OF DEVELOPMENT NGO NETWORKS, INC.

CONTENTS

1

Message from the Chairperson 2Vision, Mission, Thrusts 3 History 4CODE-NGO Accomplishments 6

Successor Generation Program NGO Good Governance and Accountability Caring for NGO Workers Sharing Information and Knowledge Recognizing our Partners in Development

Civil Society Index Civil Society Assessment of the MTPDP 2004-10 Philippines-Japan Partnerships (PJP) DA Budget Monitoring Project Civil Society Advocacy for Constitutional Reform

Member Networks 10Financial Highlights 25 The National Board of Trustees 36The Secretariat 37

Strengthening Members' Capacity and Institutional Stability

Influencing Public Policy

Establishing the Inter-network, Multisectoral Regional Anti-Poverty Partnerships (IMRAPP)

Confronting Financial Challenges

Message from the Chairperson

2

The past fiscal year 2008-2009 has been especially challenging for CODE-NGO. The global economic crisis hit home, negatively affecting our income from investments leading to painful budget cuts for some of our programs and activities. We were still whirling from the plunging of the stock market when typhoons struckthe country at a scale we have not experienced before. The recent calamities have made our work more difficult because many of our member organizations, particularlyin the National Capital Region and the Cordilleras, areworking directly with poor communities that were hardesthit by the typhoons. Moreover, the impact of these calamities have never been as personal to us as in the past, until Ondoy and Pepeng claimed properties, and for some even homes, of several of our very own colleagues.

Last year also saw us outraged by the excesses of the administration in the middle of the crisis, with the president scandalously spending 1 million Pesos for dinner at Le Cirque in New York. We were indignant at this administration's hunger for power, pushing for Charter change for its term extension agenda and the president's frequent visits to Pampanga,allegedly in preparation for running for Congress in the next elections. And most recently, the infamy brought to our nation bythe Maguindanao massacre represents the most evil consequence of the politics of self-interest that has pervaded the GMA administration.

Amidst all these, CODE-NGO focused on building its internal strengths, by assessing the organizational development needs of some of its member networks and identifying interventions for network sustainability. Our National Board also made decisive steps to address the continuing downturn of the market, by keeping an investment portfolio that would provide a stable and predictable revenue stream for the organization. We compensated for internal constraints brought by the effects of the financial crisis by strengthening our linkages and undertaking projects with our local and international partners such as the UN Civil Society Assembly, Civicus and National Platform Coalition for Asia.

As we strengthen our own governance mechanisms, we continue to demand public accountability, by monitoring the agriculture budget, beginning to review government's performance against its Medium-Term Development Plan (MTPDP) targets, and starting a new phase for our Constitutional Reform advocacy. With other civil society groups, we also went through reflection sessions as a collective, to think through the inter-connection between development work, politics and governance. In our desire not to leave politics in the hands of corrupt politicians, we have prepared early to get actively involved in both partisan and non-partisan engagements in the 2010 elections, through support for the Change Politics Movement and Task Force 2010, respectively, and to critically engage with a fresh administration right after.

The theme of our 13th General Assembly is timely: "Rebuilding Resilient Communities, Reconstructing Democratic Institutions (Hope for Change after Ondoy, Pepeng and GMA)." We find parallels between the necessity to start reconstructing communities that were damaged by the recent disasters, and the need to restore our democratic institutions that have been undermined by the politics of self-interest. In these most trying times, the outpouring of support and voluntary contributions from various sectors to help victims of calamities, as well as the promise of change in the coming elections, bring hope that we will overcome these crises sooner. It is always the worst of times that brings out the best in us Filipinos, as exemplified by CNN Hero of the Year Efren Penaflorida.

The report that follows hopes to demonstrate CODE-NGO's resiliency as a network in overcoming the challenges of the past year and its resolve to confront the demands of the times, thanks to the collective energy and unity brought by its members and partners in development work.

Anna Marie A. KaraosChairperson

Our Vision

CODE-NGO is the largest coalition of development NGOs in the Philippines, which, because of its scale and synergy, influences public policy, provides leadership in civil society and increases the effectiveness of social development work in the country.

Our Mission

We commit ourselves to taking civil society leadership in policy advocacy and partnership building in the public arena, as well as developing the capacity and accountability of our member networks, towards the realization of peaceful, just and sustainable Philippine society.

Vision for Philippine Society

We dream of a society ... That promotes the total well-being of the Filipino people and the full realization of our human rightsWhere social justice and equitable distribution of wealth prevailsWhere the basic needs of the broad majority are met and fulfilled, along with maintaining the sustainability of human survivalWhere all spheres of national development are participated in by all sectorsWhere the culture of the Filipino peoples are continuously promoted and enhanced.

Strategic Thrusts for 2008-2011

3

1990 Established by the

10 largest NGO networks in the Philippines, to scale up the NGO sector's impact on national development and promote standards for NGO governance

Held its 1st National Congress, convening 1,000 NGO, PO and co-op leaders, which ratified the Covenant on Philippine Development and the Code of Conduct for Development NGOs

Played an instrumental role in setting up the Foundation for Philippine Environment (FPE), an NGO-managed funding mechanism created from USAid Debt-for-Nature-Swap agreement

Helped establish the Foundation for Sustainable Society(FSSI), another local funding mechanism created from a debt swap agreement with Swiss government and NGOs

1998. Engaged in preparing the Philippine Medium-Term Development Plan (MTPDP) as a member of the NEDA MTPDP Steering Committee since 1992, and has since periodically monitored the government’s performance against its own MTPDP targets

Established the Philippine Council for NGO Certification (PCNC) with other civil society groups, a self-regulating mechanism for NGOs which sets a stringent standard for NGO professionalism and accountability

Co-convened the Tri-Sectoral Conference with government and business sectors, which presented the Administration with a reform agenda for effective governance

1991

1990

1993

1995

1998

1998

2000

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CODE-NGO HISTORY

Co-convened the Kongreso ng Mamamayang Pilipino (KOMPIL II) with other civil society groups, which became the backbone of People Power II

2001

2001

Conceptualized the Peace Bonds, an innovative financial instrument that raised funds from the capital market, the proceeds of which are now being managed by the Peace & Equity Foundation to support NGO projects that address poverty and inequality in marginalized communities

2005

Initiated the Priority Development Assistance Fund (PDAF) Watch to monitor the usage of the legislators’ ”pork barrel” funds

2006. Through the Coalition for a Citizen’s Constitution(C4CC), CODE-NGO mobilized members to participate in nationwide protests against the government’s deceptive People’s Initiative and Constituent Assembly for a self-interested Charter Change

2006

Today, CODE-NGO, with its 12 national and regional networks representing 2,000 development NGOs, people‘s organizations and cooperatives, maximizes its scale and synergy to influence public policy, provide leadership in civil society and increase the effectiveness of social development work in the country. P

rese

nt

2009

5

Implemented the Localized Anti-Poverty Program in 100 barangays, enabling citizens and communities to participate in tracking poverty incidence in their own areas, advocating that projects which address their needs are budgeted by their local government units, and demanding their local governments to be transparent and accountable in their spending.

200

3

Capacity Building Assistance for Member Networks

Successor Generation Program

NGO Good Governance and Accountability

CODE-NGO's Commission on Institution and Capacity Building (CICB) focused this year on strategies to assess the technical assistance needed by selected member networks to strengthen their capacities for networking and sustainability. Among the activities done towards this end are (1) assessment of organizational development/technical assistance needs of priority networks CBD, CenVISNET, EVNet, MINCODE and NCSD, (2) participation in the strategic planning sessions of CenVISNET and CBD and (3) coaching for NCSD for its application for accreditation by the Philippine Council for NGO Certification (PCNC).

Member networks also accessed their grant allocations under the Network Strengthening Fund (NSF) to support the above activities, as well as their basic network operations. The fund also subsidized the general assemblies of all member networks, with the exception of NATCCO and PBSP, who opted to waive their NSF share this year given the limited earnings of the endowment fund of CODE-NGO. Further, this year's NSF Competitive Grant of Php162,500.00 was awarded to PBSP for its project "Technical Assistance in Enhancing the Capacity of the Business Assistance Program (BAP) through the Value Chain Clustering Methodology." Four other member networks competed for this grant. A total of Php815,000.00 under the NSF program was released as grants to member networks this year.

To sustain a successor generation of leaders and workers for the social development sector, CODE-NGO continued to support the professional development of the leaders and workers of its member networks through the Scholarship Fund program. CenVISNET sent 6 finance officers of its member networks/NGOs to the Accounting for NGOs Seminar organized by the League of NGO Accountants for Development (LEAD) held in Cebu last January 2009. MINCODE also accessed the grant to support one of its regular Secretariat staff to pursue a 2-year ICT training course. Acknowledging the importance of this resource to support the HRD program of its member networks, the CODE-NGO National Board extended the Scholarship Fund program for another 2 years, with a commitment to allocate Php810,000 until FY2010-11.

Apart from supporting the professional development of NGO workers, CODE-NGO also encouraged more students to get involved in social development work as a Successor Generation strategy. With PHILSSA's lead, CODE-NGO partnered with the social involvement offices of the Ateneo schools network, De La Salle University network, women colleges network (particularly Miriam College and Assumption College) and the UP Students Catholic Action. It helped organize two workshops last December 2008 and March 2009 for 55 student formation officers and student leaders from these schools. The workshop delegates discussed the qualities and interests of today's student leaders and how NGOs can contribute to the schools' formation programs so that more young people will be encouraged to take on social development work as volunteers or as future NGO leaders.

Accreditation by the Philippine Council for NGO Certification (PCNC) remains to be one of the key good governance indicators among CODE-NGO member networks and organizations. To date, however, only 23% of the organizations affiliated with CODE-NGO and eligible for PCNC certification are actually certified. Of the 12 CODE-NGO member networks, the Association of Foundations (AF) has already reached, and even surpassed, the target of getting 50% of its members PCNC-certified by 2010, with 52% of its members certified, while the National Council of Social Development (NCSD) has approached the target with 47% of its members certified.

Strengthening Members' Capacity and Institutional Sustainability

CODE-NGO ACCOMPLISHMENTS

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Three member networks - AF, PhilDHRRA and CenVISNET - received grants of Php20,000 each this year for PCNC-coaching activities for their members being targeted for PCNC certification. CODE-NGO has set to review its PCNC certification targets as well as to intensify promotion of PCNC certification among its members next year.

As NGOs demand accountability from government, they must also be models of accountability. To further promote accountability in the NGO sector, CODE-NGO actively participated in the discussions of the informal NGO Accountability Group (NAG) convened by PCNC. An off-shoot of this activity was the national forum entitled Quo Vadis: NGO Accountability? organized during the Social Development Week in December 2008, where various stakeholders discussed the value of and approaches to upholding the integrity of NGOs. CODE-NGO also initiated a rewards system to recognize the active participation of member networks in its programs and activities, naming AF and MINCODE as its "Best Performing Member Networks for 2007-2008."

To promote the welfare of NGO workers as well as to maximize economies and other benefits of scale, CODE-NGO encouraged member networks and organizations to enroll their staff in PHILSSA's group health insurance program. Enrollees from the networks outside of PHILSSA doubled, from 3 organizations (or 20 personnel) last year to 6 organizations (or 43 personnel) this year.

CODE-NGO developed a new website www.code-ngo.org that is based on free and open source software (FOSS), to facilitate updating and sharing of information to its various publics. 575 organizational profiles (36% of its member networks and affiliated organizations) are now accessible through this site. 5 issues of our e-newsletter were also sent to 2,054 e-newsletter subscribers informing them of developments about CODE-NGO and the Philippine NGO sector.

Caring for NGO Workers

Sharing Information and Knowledge

Influencing Public Policy

Civil Society Index

Civil Society Assessment of the MTPDP 2004-10

The Civil Society Index (CSI) is an action-research project that aims to assess the state of civil society in countries around the world. It has been developed and its implementation coordinated and supported by Civicus World Association for Citizen Participation. In its first phase between 2003 and 2006, the CSI was implemented in over 50 countries worldwide.

In 2008, CODE-NGO was approved to be the National Coordinating Organization in the Philippines by CIVICUS for the next phase of CSI. The research project is currently being undertaken by its lead researcher, Mr. Randy Tuaño of the Ateneo de Manila University, with the guidance of its Civil Society Specialist, Dr. Ma. Olivia Domingo of the UP National College of Public Administration. The project seeks to increase the shared body of knowledge on the state of civil society in the Philippines and to identify crucial recommendations for strengthening Philippine civil society.

CODE-NGO, together with other civil society organizations (CSOs), has undertaken periodic assessments of the government's performance vis-à-vis its commitments in its Medium Term Philippine Development Plan (MTPDP). This year's assessment looks into the government's accomplishments towards 1) reducing poverty and inequality, 2) promoting a sustainable economy, and 3) ensuring empowerment and democratization.

The Assessment was divided into 21 themes, which include Agriculture, Agrarian Reform, Fisheries, Housing, Mining, Trade, Micro-, Small and Medium Enterprises, the Macro-economic Policy, Tourism, Peace Building, and Constitutional Reform. Each theme is being assessed by a CSO co-convenor, and the Thematic Assessments have undergone consultations from the Advisers of the Assessment, from the Thematic focused group discussions (FGDs), and from the Regional FGDs. The Assessment also aims to build consensus among the convenors/advisers and other CSOs on key policy recommendations for the MTPDP for 2010-16 and to advocate these recommendations to the national candidates in the 2010 elections and the new President and Cabinet starting July 2010.

CODE-NGO Annual Report 2008-09

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Change Politics Movement

Philippines-Japan NGO Partnership (PJP)

DA Budget Monitoring Project

Civil Society Advocacy for Constitutional Reform

Many civil society leaders have come to realize that participation in partisan and electoral politics has become imperative to effectively push for development reforms at a scale that will achieve greater impact.

As a response, the Change Politics Movement was launched simultaneously in 10 different cities last May 10, 2009 as a first step towards reclaiming politics from politicians who have betrayed public trust. The movement aims to organize a critical mass of NGO/PO/co-op leaders and other volunteers who are dedicated to catalyzing active citizenship and help support the emergence of transformative politics that will pave the way for the election of reform politicians. Members of the movement recognize that political reform will not occur overnight, and are thus committed to this engagement until the year 2022!

CODE-NGO, while remaining non-partisan, presents the Change Politics Movement as an option for its members who wish to engage in active and partisan electoral engagement.

The PJP network continues to foster stronger partnerships between Japanese and Philippine NGOs. The network has conceptualized and is advocating for the creation of a Philippine-Japan Partnership Fund which seeks to provide support for development projects implemented jointly by Japanese and Philippine NGOs.

The Department of Agriculture in recent years has been plagued by numerous scams and fund anomalies, foremost of which was the fertilizer scam. It was under such a circumstance that CODE-NGO decided to undertake the DA Budget Monitoring Project..

Through the project, training workshops on the DA budget cycle and dialogues with regional DA offices were implemented. These activities increase the capacity of participants to understand the budget process and to engage in budget monitoring. An analysis of the DA Budget Process was also undertaken culminating in a report entitled “Of Scams and Lumpsums" which was used to advocate for greater transparency and people participation in the budget of the Department of Agriculture during the congressional budget hearings.

The Coalition for a Citizen's Constitution (C4CC), of which CODE-NGO is a member, concluded this year the Civil Society Advocacy for Constitutional Reform Project Phase 2. This initiative helped sustain civil society's engagement in defending the Constitution from the anti-poor Charter change initiatives of the GMA administration through the deceptive People's Initiative and Constitutional Assembly (Con-Ass). It has also put more details in crafting a citizens' constitution and strengthening the capacities of NGOs and basic sectors in understanding Constitutional reform issues.

This year, C4CC focused on finalizing its Specific Proposals for Constitutional Reform. This document is a synthesis of the 10 researches commissioned by C4CC on the reform agenda of basic sectors - farmers, fishers, indigenous peoples, urban poor, labor, youth and women - and research studies on federalism, national patrimony and electoral reform. The specific proposals were again subjected to 43 provincial/city consultations and mobilizations participated by about 1,800 civil society and basic sector leaders in mid-2008. It was subsequently confirmed in a national conference of 48 C4CC provincial/city chapter leaders in October 10 to 11, 2008. C4CC's constitutional reform work also gained recognition by churches, academe and civil society groups in broader reform movements such as in BUSINA's Truth, Accountability and Reform campaign and Former Senior Government Officials (FSGO) and the “Ibasura ang Chacha” group's calls against Arroyo's term extension.

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CODE-NGO Annual Accomplishments

Establishing the Inter-network, Multisectoral Regional Anti-Poverty Partnerships (IMRAPP)

Sustaining Partnerships and Linkages

Confronting Financial Challenges

The IMRAPP project is CODE-NGO's effort to bring together its members - collaborating with other sectors of society – to address the issue of poverty at the local level. The participating member networks are CBD for Region 5-Bicol, EVNet for Region 8-Eastern Visayas and MINCODE for Regions 9-Western Mindanao and ARMM. An important element of the IMRAPP framework is for civil society organizations to engage more effectively with the local government units, which hold the resources to address people's basic needs.

In a national workshop conducted last March 2009, the basic development framework that supports the IMRAPP concept was clarified. Emerging models for national development and the impact of the global economic crisis were discussed, and the evolution of the process of development planning in the Philippines was reviewed. The participants also identified their challenges, common issues and next steps for implementing the IMRAPP strategy in their respective regions. The ensuing regional level discussions focused on specifying the action plans or a possible project for each region that will address a key poverty issue in their respective areas, and mobilizing resources to carry out such action. MinCODE, for example, has established a working relationship with the sub-office of the Peace and Equity Foundation in Zamboanga to systematically consult its various possible partners for a common anti-poverty action in the region.

CODE-NGO has maintained its active membership in international NGO coalitions such as Civicus, the Affinity Group of National Associations (AGNA) and the National Platform Coalition of Asia (NPC Asia). Because of its linkages with Civicus, our country was included in the new round of Civil Society Index study, being done in more than 50 countries, with CODE-NGO as the national coordinating organization for the Philippines. CODE-NGO was also represented in the International Conference of NGO National Platforms in Paris last October 2008, and drafted the by-laws of NPC Asia.

For FY 2008-09, CODE-NGO had to decisively face the challenge brought by the continuing downturn of the market resulting to the decline of the value of its investments. The National Board had to confront the fact that the operation of the organization was dependent heavily on the annual income of its endowment fund. Thus, it could not gamble on potentially high-yielding yet unpredictable and riskier equity investments. By the third quarter of 2008, the Board made the difficult decision of converting a portion of its unitized mixed (equity and fixed income) investment to fixed income investment. In the process, however, the organization incurred a loss of around Php16 Million.

This action of the Board emphasized their resolve to keep an investment portfolio that should provide a stable and predictable revenue stream for the organization. The Board re-affirmed the existing policy of maintaining an 80%-20% fixed income-equity over-all portfolio mix. In addition, it passed a resolution to treat unitized mixed investments as totally non-fixed investment and to set a 40% ceiling on investment/placement in any single financial institution or fund manager. The effect of the Board's decision was the improvement in the total earnings from Php4.4 Million in the last fiscal year to Php 7.7 Million on this fiscal year.

During the year, CODE-NGO secured grants for a number of projects totaling Php6.3 Million, with an additional Php15 Million grant approved in principle for another 3-year project.

The organization had already benefited from the over-all improvement in its financial accounting and reporting, which the organization had worked on diligently for the last two years. Long outstanding accounts receivables were liquidated, validated or written off. The annual audit was conducted on time, with no major problems identified.

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CODE-NGO Annual Report 2008-09 CODE-NGO Accomplishments

MEMBER NETWORKS

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Recognizing our Partners in Development

We value the support of the following organizations and individuals who have helped us carry out our various programs for FY 2008-09:

The Management Systems International (MSI), The International Center for Innovation, Transformation and Excellence in Governance (InciteGov) and the La Salle Institute of Governance for our DA Budget Monitoring Project.

Our co-convenors in C4CC for our Constitutional Reform Project: Gaston Z. Ortigas Peace Institute (GZO-PI), Institute for Popular Democracy (IPD), Institute for Electoral and Political Reform (IPER), Local Governarnance Citizens Network (LGC Net), People's Alternative Study Center for Research and Education on Social Development (PASCRES), Philippine Commmunity Organizers Society (PhilCOS), PILIPINA and Misereor.

Oxfam Great Britain, ICCO Netherlands, Initiatives for Dialogue and Empowerment thru Alternative Legal Services (IDEALS), Foundation for the Philippine Environment (FPE), PHILSSA and Urban Poor Alliance (UP-ALL), PHILDHRRA, People's Campaign for Agrarian Reform Network (AR Now!), Pambansang Kilusan ng mga Samahang Magsasaka (PAKISAMA), NGOs for Fisheries Reform (NFR), Alyansa Tigil Mina (ATM), Katutubong Samahan ng Pilipinas (KASAPI), MINCODE, Transparency And Accountability Network (TAN), AF, Trade Advocacy Group (TAG), NATCCO, PBSP, National Institute for Policy Studies (NIPS), Philippine Legislative Committee on Population and Development (PLCPD), Ateneo School of Government (ASOG), Civil Society Resource Institute (CSRI), NCSD, Asia Pacific Projects, Inc., Foundation for Media Alternatives (FMA), and our panel of advisers Dr. Cielito Habito, Archbishop Antonio Ledesma, SJ, Mr. Alberto Lim, Atty. Christian Monsod, Dr. Mary Racelis and Prof. Leonor Briones for our Medium-Term Philippine Development Plan (MTPDP) Review Project.

The National Endowment Fund for Democracy (NED), Nutrilinc, PAKISAMA, InciteGov, PHILDHRRA-Mindanao, Zamboanga del Norte Center for Social Concerns and Development, MINCODE, Task Force 2010 and Change Politics Movement and its volunteer staff Pete Rahon for our Democracy and Change Politics Project.

The Civicus World Alliance for Citizen Participation, United Nations Development Programme (UNDP), Commission on Human Rights (CHR), The Asia Foundation (TAF), the Project's National Advisory Committee and its Project Team Randy Tuano, Rachel Reyes-Sescon and Dr. Ma. Oliva Domingo for our Civil Society Index (CSI) Project.

For our IMRAPP project: Peace & Equity Foundation (PEF), our implementing member networks MINCODE, EVNet and CBD, and our national working group members, Jaybee Garganera of PHILDHRRA, Dick Balderrama of PHILSSA and Gil Salazar of PBSP.

The Institutional Network for Social Action (INSA) of Miriam College, Center for Social Concern and Action (COSCA) of De La Salle University, Office of Social Concern and Involvement (OSCI) of Ateneo de Manila University, the social formation offices of the Ateneo schools network, De La Salle schools network, Women Colleges Consortium (including Miriam College and Assumption College) and PHILSSA for our efforts towards our Successor Generation program.

National Council of Social Development Foundation of the Philippines (NCSD)

CODE-NGO Annual Accomplishments

Association of Foundations (AF)

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Now on its 37th year, the Association of Foundations (AF)is the country's first heterogeneous network of foundationsand NGOs engaged in programs on education, art and culture, science and technology, governance, social development, micro-finance, environment, and sustainable development. AF currently has 135 members nationwide and is governed by a 15-member Board of Trustees. It has made achievements in information management activities, database gathering on foundation profiles and best practices, trends in development work, and institution and capacity building opportunities. It is the steward of the Philippine Foundation Center (PFC) – Southeast Asia's first one-stop resource and information center on Philippine civil society sector.

With local and global partner institutions, AF works to improve the enabling environment for Philippine philanthropy and foundation development. It gives recognition to and helps establish community foundations (CF) – private, non-profit organizations which mobilize local resources for grant giving in a defined geographical area. AF sees the CF as a sustainability strategy to improve the quality of life of a particular community. It also actively pursues the formation of strategic local alliances in efforts to promote a program of partnership or collaboration among its member organizations as well as other sectors in society.

Rm. 1102 11/F Aurora Tower, Araneta Center Cubao, Quezon City

Tel. +632 9119792; Fax. +632 9137231E-mail. afonline@info.com.ph; Website. www.afonline.org

Contact Person: Mr. Norman Joseph Jiao, Executive Director

Major Programs/Projects (August 2008 – July 2009)

On-going Programs/Projects:

Board Governance Workshop: “Managing with Effective Board Governance,” 2-3 December 2008, Pasig City - The board governance module “Managing with Effective Board Governance” was designed by AF in 2004 to address the growing concern for stronger and more effective governance of NGOs in the country. This was tailor-fit for chief executive officers of NGOs and is meant to: recognize the value and requirements of strategic thinking for effective board engagement and governance; understand the basic responsibilities of boards and do a preliminary diagnosis of his/her board; identify the areas where he/she can help strengthen his/her working relationship with the Board; and draw up a strategy for improving board meetings and generating a more active involvement of their boards.

Forum on “Perspectives on Good Governance and Civil Society” and “Coping with the Financial Crisis”, 20-21 April 2009, Makati City - As AF held its 37th General Assembly, it organized forums for its members on "Perspectives on Good Governance and Civil Society" with speakers Dr. Eddie Dorotan (Galing Pook Foundation), Dr. Nene Guevara (Movement for Good Governance), Mayor Sonia Lorenzo (San Isidro, Nueva Ecija & Kaya Natin! Movement), and Gov. Grace Padaca (Province of Isabela & Kaya Natin! Movement). The speakers gave their thoughts about effecting good governance and encouraged the audience to take part in efforts to bring back accountability in public office. AF also organized a forum on coping with the financial crisis with Mr. Dan Songco (PinoyME Foundation) and Mr. Joey Bermudez (Maybridge Asia & Management Association of the Philippines) as resource persons, to help members manage the effects of the crisis better.

Conference-Workshop: “Bringing the Community Foundation Movement in the Philippines to Higher Ground”, 22-24 April 2009, Pasig City - In the past four years, AF has been at the forefront of advocating for the establishment of community foundations (CFs), a sustainability and development strategy for local communities. After a series of capability building activities, e.g. facilitation, consultations and one-on-one mentoring, AF stepped-up in the CF program by convening a conference-workshop among CF practitioners. Participants discussed strategies and challenges, exchanged insights, and learned from each other's experiences. The activity was facilitated by Ms. Terry Lynn Holley, Senior Vice President for Programs and Regional Development of the East Tennessee Foundation.

Community Foundations: Peer Learning Visit to Pondong Batangan Community Foundation Capacity Building: Resource Mobilization Seminar-Workshops in Visayas and Mindanao Strategic Partnerships: Building Local Alliances - initiated among AF members in Batangas, South

Cotabato-Sarangani and Negros

Coalition for Bicol Development (CBD)

Established in November 1996, CBD is a network of NGOs/POs in Bicol whose main purpose is to establish aninstitutionalized effort to unify and strengthen capacities of NGOs/POs in the Bicol Region and maximize their potentials in responding to the challenges of regional development. At thenetwork's General Assembly last March 2009, the network resolved to streamline and clarify its membership by focusing on 6 provincial networks - CAMSDEV for Camarines Norte, PANGOPOD for Sorsogon, ALPRODEV for Albay, Catanduanes CSO Network for Catanduanes, Camarines Sur NGO/PO Alliance for Camarines Sur and the NGO/PO Formation for Masbate - and a city network (NCPC in Naga City). The 4 regional clusters of national networks (Phildhrra, PhilSSA, AF, and NCSD) were now encouraged to join in the provincial networks in which their base organizations operate. Leadership in CBD is now provided by a 7-person Board of Trustees that gets its mandate from the CBD General Assembly.

It was a tough year for CBD in terms of generating financial resources. Capacity-building activities for members were put on hold, but CBD enjoined its members to participate in short-term projects implemented by the network, such as the DA Budget Monitoring, Bantay Lansangan Project and the promotion of PCNC certification. Regular meetings of the Board were also conducted, which enabled the network to identify strategies on generating resources to implement the network's plans and to respond to the needs of its members.

Major Programs/Projects (August 2008 and July 2009)

On-going Projects:

FGD on Election Related Violence Incidence (ERVIS) - CBD in partnership with The Asia Foundation (TAF) organized a focus group discussion to draw actual experiences from church leaders, civil society organizations, and representatives from the academe, PNP, CHR and COMELEC and other affected sectors on the various election related violence usually experienced before, during and after election period. The concerns raised in the FGD provided inputs to crafting actions to lessen the cases of election-related violence in the region in the 2010 elections.

Advancing people's issues and Agenda for Reforms and Development - In terms of advocating for good governance within the local government, CBD has spearheaded the Bantay Lansangan and DA Budget Monitoring Projects in Bicol.

CBD 10th General Assembly - Held last March 2009, the CBD General Assembly (GA) renewed its commitment to pursue concrete actions to sustain social development work in the Bicol Region. The assembly also made important decisions on how it will engage in the upcoming 2010 elections. Resource persons, former DSWD Secretary Dinky Soliman on partisan engagement through the concept of“Change Politics: Politics for Change” and CODE-NGO Deputy Executive Director Cezar Belangel on CODE-NGO's plans for electoral engagement in 2010, provided inputs for the GA's decisions.

Building and Strengthening the NGOs-POs-CSOs Capacities for Effective Partnership with the Local

Government of Iriga for Transparent and Accountable GovernanceBantay Lansangan ProjectMaximizing Multi-Sectoral Stakeholders Approach Towards Reducing the Cases of Election-Related Violence in Bicol.

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CODE-NGO Member Networks

Coalition for Bicol Development (CBD), Inc.CASAFI Compound, Liboton Street, 4400 Naga City

Telefax (054) 4722569; E-mail: cbdbicol@yahoo.com

Contact Person: Ms. Joy Oropesa-Bañares, Coordinator

Central Visayas Network of NGOs (CenVISNET)

YMCA Complex, 151 North Road, Piapi, Dumaguete City, Philippines

Telefax No. (035)422-4402 Email: cenvistnet@gmail.com

Contact Person: Mr. Gregorio Fernandez, Jr. Regional Coordinator

CenVISNET is one of the off-shoots of the then Visayas Network of NGOs (VISNET) which decided to transform itself into 3 independent regional networks and later applied separately as members of CODE-NGO. It formally registered as CenVISNET with the Securities and Exchange Commission on July 26, 2007, with 4 provincial networks as regular members: BANGON (Bohol Alliance of NGOs), Kaabag sa Sugbo, NEGORNET (Negros Oriental Network of NGOs) and the Siquijor Caucus of People's Organizations (SIQCODE).

Its areas of engagements are primarily carried out by its member provincial networks, which are: local governance partnership, community organizing, sustainable agriculture, cooperative development, enterprise development, agrarian reform, primary health care, gender and development, coastal resource management, water and sanitation, nutrition, basic education, youth and child development, reproductive health, and labor advocacy.

Major Programs/Projects:

On-going Projects:

1. Basic Management Training for NGO Secretariat - Training designed to capacitate the Secretariat of the member provincial networks and impart some of the current trends in network management.

2. Basic course on Board Governance and Leadership �C capacity development activity to enhance the leadership skills of the officers and members of the CenVISNET Board and some representatives of the Boards of the member provincial networks.

3. Financial Management and Internal Control System Installation - as part of its institution building, the CenVISNET has contracted the manualization of its financial system and internal control system.

1. Explore the possibility of providing scholarship program to the staff of at least 2 provincial networks

2. Plan to hold a 2-day Social Enterprise Development Workshop before the year ends.3. Rehabilitate and/or organize a new provincial network in the province of Siquijor.

13

CODE-NGO Annual Report 2008-09

Cordillera Network of Development NGOs and POs

(CORDNET)c/o Shontoug Foundation, Inc., 18

Gibraltar Road, Baguio CityTelefax. (074) 4447197;

E-mail. cordilleranetwork@gmail.comContact Person: Ms. Marietta P. Paragas, President

CORDNET is a regional coalition of 5 provincial networks in the Cordillera region and NGOs based in Baguio City. Its totalmembership includes 21 NGOs, 55 people's organizations and 16 cooperatives. As a 10-year old regional network in the Northern Philippines, CORDNET has been promoting a development paradigm that harnesses cultural diversity and eco-efficient production systems within a unique multi-cultural and socio-economic landscape.

One of the significant milestones for CORDNET this year was the institutionalization of its Sustainability Plan through the birth of its business arm, the CORDNET Village Social Enterprises, Inc. The network considers this as a breakthrough on economic governance through the promotion of income-earning activities with clear social mission.

Major Programs/Projects

Four COPS to Improve Service Delivery of Health Products and Services in Asipulo, Ifugao – A winner in the 2008 World Bank Panibagong Paraan, this project employs a multi-stakeholder approach to local governance in addressing 4 major health-related problems through 4 innovative strategies by 4 committed project partners. It is a breakthrough in community-based health service delivery in the Cordilleras, where health services in mountainous and far-flung villages are typically difficult to access. The project has so far resulted to institutionalizing the Local Health Board, which was formerly inactive, which set a goal of delivering effective community-based health services and zero emergency case in the local hospital. A municipal ordinance was also passed to ensure annual budget allocation for health and inclusion of the Health and Nutrition Agenda in the Asipulo Development Agenda. CORDNET plans to replicate this health governance model in other remote villages in Asipulo, Ifugao.

Development Intervention on Cordillera Weaving Through Semi-Mechanized Local Fiber Processing and Product Development – Weaving is considered a dying industry in the Cordilleras because of lack of competitiveness, unsteady supply of imported yarn and lack of improvement in designs and product quality. CORDNET's proposed intervention is on upgrading product quality through market-driven designs and use of local fibers. It partnered with the DTI-CAR and International Network of Bamboo and Rattan (China) and sought the help of an Indian designer-consultant to improve product designs and develop a niche market for woven products. CORDNET also visited a weaving community in Daet, Camarines Sur to observe how they process local fibers through their decorticating machine. New woven products were also developed with the use of recycled paper, while natural dye from local fibers is currently being tested. These recent developments will hopefully open new avenues for Cordillera woven products and accessories in the market.

Enhancing the Capability of CORDNET and Its Members on Policy Advocacy and Sustainability – A series of training and coaching to CORDNET members were held to strengthen capacity to advocate for policies and develop sustainability mechanisms. Among the priority advocacies of CORDNET is on good governance, sustainable agriculture and poverty alleviation. Levels of engagement by members in policy advocacy vary. CORDNET as a regional network is active in advocating policies in the Regional Development Council. Three provincial networks are working on social enterprises for sustainability but only one has demonstrated relative success. CORDNET has set up its CORDNET Village Social Enterprises, Inc. to promote and support village-based social enterprises of its members.

14

CODE-NGO Member Networks

Eastern Visayas Network Of NGOs and POs (EVNet)

Corner Monge and San Salvador Streets, Palo, LeyteTelefax. +6353 5244903; E-mail. easternvisayas@ymail.com

Contact Person: Ms. Paulina Lawsin-Nayra, Vice Chairperson

EVNet works to promote partnership among NGOs and POs and other sectors in pursuing sustainable

development in Eastern Visayas. Its members are operating in the islands of Leyte, Biliran and Samar in

advocating for pro-poor and gender responsive budgets and services in local governments; transparency and

accountability in national project implementation; and in building the capacities of its partner people's

organizations to improve livelihoods, participation and environmental sustainability.

Major Programs/Projects: EVNet trained its members and mobilized volunteers to

undertake social accountability projects

EVNet's involvement in the National Agriculture Budget

Monitoring drew the interest of people's organizations, that they

resolved to undertake steps to make their voices heard in the

planning and implementation of agriculture projects in their

respective LGUs

EVNet likewise participated in the Bantay Lansangan project.

With the support and training from Transparency and

Accountability Network (TAN), the network recruited and

mobilized volunteers to conduct monitoring of selected

infrastructure projects

EVNet members continued to undertake information sharing,

referrals and common advocacy activities and at the same time

built its secretariat and office systems to make it more

responsive and ready to implement its Strategic Plan starting

2010.

CODE-NGO Annual Report 2008-09

15

Mindanao Coalition of Development NGO

Networks (MINCODE)No. 3 Juna Avenue corner Camia Street, Juna Subdivision

Matina, Davao City; Tel. (082) 2990625; Fax. (082) 2991722E-mail. dolores.corro@yahoo.com; Website. www.mincode.org

Contact Person: Ms. Dolores Corro, Coordinator

MINCODE is an umbrella organization of 12 Mindanao-based NGO networks with a total membership of 425 individual NGOs and POs spread all over Mindanao. Drawing inspiration from the PCJC-HRD experience in the early 1990's, when the 10 members of the Regional Committee agreed on a development agenda for Mindanao communities, MINCODE was established with a development goal to address the issues of inequity and parity in Mindanao. Seventeen years later, MINCODE is confronted with the same issues and concerns with more urgent issues of peace and poverty. MINCODE serves as a forum for discussion, dialogue and coordination among Mindanao networks and NGOs concerning development programs and its impact to the Mindanao community. It also serves as advocacy center of NGOs in Mindanao on issues related to development of tripeoples - Lumad, Moro and settlers. MINCODE's decision-making process is done by consensus giving respect to and recognition of the autonomy of each network at all times. It upholds transparency and open and healthy criticism among its members.

Recently, its five year strategic plan (2008-2012) identified three major goals that will lead to the achievement of MINCODE objectives. These goals are: 1) To establish an advocacy center for equitable peace and sustainable development in Mindanao, 2) To become a resource center for CSOs that will provide appropriate and relevant services for CSO strengthening and 3) To become an efficient, capable and sustainable MINCODE organization.

16

CODE-NGO Member Networks

Major Programs/Projects:

Current Programs/Projects:

Tripeople/Peace-Building Program: Supporting Development Activities and Sustaining Grassroots Peace-building Initiatives in Tripeople Communities in Mindanao - MINCODE and partner organizations MASS-SPECC and NDMC-CES sustain the peace-building initiatives it started in 2003 involving eight communities in Talakag, Bukidnon and Banisilan, Cotabato. Currently focusing on economic aspects, MINCODE, with fund support from Bread for the World, set up the agriculture support fund (ASF) to support the economic activities of the POs in assisted communities. The support hopes to contribute to increasing agricultural production and promoting sustainable agriculture through diversified farming methods, while sustaining peace efforts.

Politics and Governance Program: Bantay Lansangan; CSOs Monitoring of the DA Budget and Capacitating BLGU Towards the Formulation of Participatory, Conflict-Sensitive, Peace Promoting, Rights-Based BDP in 17 barangays in CARAGA - MINCODE participated in the initiatives of TAN and CODE-NGO that involved monitoring of roads and budget of DA Regional offices, respectively. It mobilized 19 volunteer organizations in monitoring 1 ODA and 18 GAA funded road project across Regions 9,10,11,12 & 13. The results of the monitoring were integrated in the road sector status report card. A dialogue was conducted between CSOs and key officers of DA-RFU 11 and 13 to enhance the participation of CSOs in regional budgeting and planning processes. To sustain the dialogue, core groups per region were organized and an action plan was formulated towards enhancing the participation of CSOs in agriculture and fishery councils (municipal, provincial & regional) in two regions. MINCODE also provided consultancy to UNDP-Act for Peace Programme in formulating peace-promoting and right-based BDP in 17 BLGUs in CARAGA.

Economic Program: Davao City Partnership and Access Center - MINCODE continues its monitoring of grant and loan funds for the center. About Php2.36M worth of projects supported under the grant fund were already completed. These included initiatives such as construction and improvement of potable water system, building capacities of community members towards diversification of agri-related economic activity and strengthening community-based organizations. Php1.27M under the loan component was mobilized for community enterprise projects such as hog raising, food business, handicraft and souvenir items making and micro-lending.

a. Davao City Partnership and Access Centerb. Consultancy with UNDP-Act for Peace Program – Development of Manual on Participatory, Peace-

Promoting and Rights Based Barangay Development Planning

National Confederation of Cooperatives

(NATCCO) 227 J.P. Rizal Street, Project 4, 1109 Quezon City

Tel. +632 9137011; Fax. +632 9137016E-mail. ceo@natcco.coop; Website. www.natcco.coop

Contact Person: Ms. Sylvia O. Paraguya, Chief Executive Officer

NATCCO is one of the biggest co-op federations in the country with 330 member co-ops nationwide. It provides valuable services to cooperatives aimed at improving services, as illustrated in its Mission Statement: “We deliver superior, relevant and ethical financial products and allied services anytime, anywhere.” Its vision: “We are the most trusted World-Class Financial Cooperative Network.”

NATCCO's Services to Members:

Major Accomplishments:

CENTRAL FUND, which provides Fund Management and Loan services. Loans released in 2008 amounted to P289 million. Loans outstanding as of September 2009 stood at P567.3 million. Portfolio at Risk stands at 0.69%.TRAINING & CONSULTANCY for cooperative leaders. To make cooperatives trusted, if not the preferred, financial institution, NATCCO trained 804 co-op leaders and staff in 2008 and 1,156 individuals from 447 cooperatives between January and August 2009. INFORMATION TECHNOLOGY such as ATM installation, developing cooperative-specific accounting software, co-op branch connectivity, website development, software and hardware seminars, ICT Business Development, and others.ENTERPRISE DEVELOPMENT provides cooperatives, individual co-op members and communities with profitable and reasonably-priced business ventures. It franchises Co-op Mart retail outlets, Fonus funeral services, Western Union remittance outlets (131 branches as of September 2009) and NATCCO Travel & Tours. HOUSING COOPERATIVES. NATCCO partners with cooperatives to build housing projects for its members. MICOOP, or Microfinance Innovation in Cooperatives. Provides microfinancing to poor but enterprising people in areas where banks and even cooperatives are reluctant to put up shop. NATCCO partners with a local cooperative under a 50-50 investment or build-operate-and-transfer scheme. NATCCO Mutual Benefit Association (MBA) gives low-cost life insurance for individual co-op members. Principals and family members are insured for life after 240 payments. NATCCO Hostel. Travelers can have safe, clean, and reasonably-priced accommodation while in Manila for business or pleasure. Primarily for co-op members but open to the public as well. MEMBER RELATIONS & NETWORKING. NATCCO cares for its members and maintains its relationships with the academe, government agencies, NGO community, and the cooperative sector of the Philippines. It has a network of links with cooperatives nationwide, as well as international NGOs such as the International Cooperative Alliance and the Association of Asian Confederation of Credit Unions.

The Coop-NATCCO Partylist was instrumental in the drafting and enactment of the new Cooperative Code of 2008 in February 2009Coop-NATCCO acquired a second seat in the House of Representatives when the Supreme Court decided on April 22, 2009 to increase the number of Party-list seats from 22 to 55In February 2009, NATCCO was awarded Certification in Quality Management (ISO 9001:2000), Environment Management (ISO 14001:2004) and Occupational Health & Safety Management (ISO 18001:2007) by the Swiss-based International Standardization Organization (ISO).

17

CODE-NGO Annual Report 2008-09

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Central VisayasNetwork of NGOs and POs

EVNet

ASSOCIATION OF FOUNDATIONS (AF)

COALITION FOR BICOL DEVELOPMENT (CBD)

MINDANAO COALITION OF DEVELOPMENT NGO NETWORKS (MINCODE)

AND

CODE-NGO Member Networks

18

o poNATCCO

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ICSW Member

Founded 1949

NCSD

Philippine Businessfor Social Progress

PBSP

NATIONAL CONFEDERATION OF COOPERATIVES (NATCCO)

NATIONAL COUNCIL OF SOCIAL DEVELOPMENT FOUNDATION OF THE PHILIPPINES (NCSD)

PHILIPPINE BUSINESS FOR SOCIAL PROGRESS (PBSP)

PHILSSA

PHILIPPINE PARTNERSHIP FOR THE DEVELOPMENT OF HUMAN RESOURCES IN RURAL AREAS (PHILDHRRA)

PARTNERSHIP OF PHILIPPINE SUPPORTSERVICE AGENCIES (PHILSSA)

WESTERN VISAYAS NETWORK OF SOCIAL DEVELOPMENT NGOs (WEVNET)

CODE-NGO Annual Report 2008-09

19

National Council of Social Development

Foundation of the Philippines (NCSD)900 United Methodist Church Headquarters Building

United Nations Avenue, Ermita, ManilaTel. +632 5234836; Fax. +632 5248043;

E-mail. ncsdphils@yahoo.comContact Person: Marian Opena, Officer-in-Charge

NCSD is registered as a non-profit, non-stock Corporation with Securities and Exchange Commission under SEC No. 73711. It is also licensed and accredited by DSWD and its application for PCNC certification was submitted already and will be up for review and assessment soon. NCSD is the only member of the International Conference for Social Welfare (ICSW) in the Philippines. Founded in 1949, NCSD is the oldest network of NGOs in the country and currently has 160 member organizations. Its constituency is composed mainly of the affiliate organizations in the nine (9) regional councils/cluster composed of NGOs and people's organizations implementing programs for children in need of special protection (CNSP), women and families in marginalized areas.

Major Projects (August 2008 to July 2009):

Current projects (August 2009 to July 2010):

Street Children Congress - Sponsored by UNICEF Philippines, the project is an integrative component of the NCSD's program and advocacy policies to address the problems and issues concerning the Children in Need of Special Protection (CNSP), particularly the street children and currently the street families. The Congress attended by street children, street educators, program coordinators and workers convened to discuss and recommend appropriate measures to resolve common issues and problems of street children. The issues identified were used as basis for planning and recommending new legislations and advocacy directions for the protection and development of street children and street families in NCR and in the country in general.

Vocational Skills Training for Children in Need of Special Protection (CNSP) - Except in Manila and Makati, the other 15 cities and municipalities in NCR have no provisions for low cost (almost free) tertiary education for the high school graduates. Thus, most of the school drop-outs among young people living below the poverty threshold in the cities are in risk of delinquency, substance abuse, early pregnancy, commercial sex exploitation, domestic employment and other forms of child labor. Without the opportunity for alternative education such as dual-tech skills training, these children will be into cycles of poverty. The costs and opportunities for vocational and technical education are also beyond the reach of many CNSPs. Thus, the major thrust of the nine NCSD regional council/clusters for 2006-2010 is to provide alternative education and dual-tech vocational and technical education for street children. To date, 197 CNSPs were enrolled and graduated in vocational course and livelihood skills and given opportunities to have access to decent jobs and be gainfully employed. Courses offered include automotive mechanics, electronics, basic electricity, food processing, welding, cellphone repair, beauty culture, etc.

Educational Assistance Program (EAP) - In cooperation with the five (5) NCR Clusters for CNSP, a total of 500 street children will be screened as recipients of the Php500,000.00 fund support from UNICEF. NCSD decided as to the scheme of providing educational supplies to 500 street children after consultations with Chairpersons of the five (5) clusters, namely Metro West, Metro Quezon, Metro South, Caloocan and MANAVA for two years now.

“Mini Concert” showcasing the multi-talents of Children in Need of Special Protection (CNSP) partners of NCSDLaunching of the book entitled “Learning from Past Gains; Successful Models of Practice in the Philippines”, documenting the success stories and practices of NCSD member organizations Celebration of NCSD 60th Diamond Year Anniversary with the Theme: “@ 60... Remembering the Glory, Building New Dreams.”

CODE-NGO Member Networks

20

CODE-NGO Member Networks

Philippine Business for Social

Progress (PBSP)Philippine Social Development Center Building

Real corner Magallanes Streets, Intramuros, ManilaTel. +632 5277741: Fax. +632 5273743

E-mail. pbsp@pbsp.org.ph; Website. www.pbsp.org.phContact Person: Mr. Gil T. Salazar, Executive Director

Committed to poverty reduction, PBSP is the largest corporate-led social development foundation in the Philippines. PBSP is the first of its kind in Asia leading the promotion and practice of corporate social responsibility (CSR). More than 250 large, medium-scale and small businesses comprise PBSP. Together, PBSP members help the poor rise above poverty and become self-reliant. PBSP operates nationwide, with programs in Education, Health, Sustainable Livelihood, and Micro, Small and Medium Enterprise Development implemented with partners and communities as empowered players in development.

Since its inception in 1970, PBSP has benefited 4.5 Million Filipinos and assisted over 6,200 social development projects through more than P7 Billion in grants and development loans. Leading the way in the practice of corporate citizenship, PBSP has been influencing companies to integrate CSR into their core businesses, and advocating the application of business solutions to poverty. PBSP has 252 member companies as of September 2009.

Major Programs/Projects:

Current Programs/Projects:

STEP-UP (Strategic Private Sector Partnerships for Urban Poverty Reduction) - STEP-UP is a large-scale urban poverty reduction program in 45 slum communities in 12 cities in Metro Manila. Through STEP-UP, PBSP members and partners have helped improve roads and other community infrastructure, built and upgraded homes, provided families access to health services and education, increased income through livelihood opportunities, and built the capacities of community leaders and homeowners' associations to ensure the Program's sustainability.

Health Program - The Health Program aims to prevent diseases and improve health management in partnership with the government and the private sector. Through these, the poor in PBSP sites now have access to services such as maternal and child health, reproductive health, and management of infectious diseases such as tuberculosis, malaria and sexually transmitted diseases. PBSP also helped companies install health programs beneficial to employees, and in compliance with laws. Enterprise Development Program - Micro, small and medium enterprises have access to loans and business advisory services through PBSP's enterprise development program. Volunteers helped entrepreneurs improve their businesses through expert advice on marketing, production/operations management, financial and human resource management, and others. The results include more competitive MSMEs, increased profitability, and jobs created. PBSP also influences businesses to become good corporate citizens.

Post-disaster Rehabilitation (in NCR STEP-UP communities, Bicol and Northern Luzon)Sustainable Livelihood Program Micro, Small and Medium Enterprise (MSME) Development

21

CODE-NGO Annual Report 2008-09

Philippine Partnership for the Development of Human Resources

in Rural Areas (PHILDHRRA)

59 C. Salvador Street, Loyola Heights, 1108 Quezon CityTel. +632 4266740; Fax. +632 4260385

E-mail. nc@phildhrra.net; Website. www.phildhrra.net Contact Person: Fr. Enrico Montano, Chairperson

PhilDHRRA is a national network of 65 NGOs operating in rural areas andinvolved in a wide range of development activities, such as community-organizing,appropriate technology, education and leadership formation among the grassroots, agricultural extension, primary health care, cooperative and enterprise development, CSO participation in local governance, and advocacy for agrarian reform and rural development.

In partnership with various development players, PhilDHRRA has implemented several programs servicing the needs of farmers, fisherfolk, indigenous peoples, women, children, youth and the elderly. The tripartite approach was utilized to enhance implementation of asset reform (TriPARRD, TriPUD, TriMARRD and Local Governance). These social experiments culminated in the crafting of PhilDHRRA's central strategy – Sustainable Integrated Area Development or SIAD. The twenty-five years of intensive and rigorous rural development work have provided PhilDHRRA with the distinctive competence in the areas of community organizing, basic services delivery, project development and management, agrarian reform, local governance, gender sensitivity promotion, and policy research and advocacy.

The network also takes pride in taking part in the formation of the Pambansang Kilusan ng mga Samahang Magsasaka (PAKISAMA), a national federation of peasant groups. PhilDHRRA is also part of a larger community advocating sustainable rural development through CODE-NGO, AsiaDHRRA, Asian NGO Coalition for Agrarian Reform and Rural Development (ANGOC) and World Rural Forum (WRF).

22

CODE-NGO Member Networks

Major Programs/Projects (August 2008 to 2009):

On-going Programs/Projects:

Alyansa Tigil Mina (ATM) - The Alyansa Tigil Mina (ATM) is a coalition of organizations and individuals from mining-affected communities, NGOs, POs, church-based organizations and academic institutions, that decided to disengage from the series of consultations convened by the DENR regarding the revitalization of the mining industry through the aggressive promotion of large-scale mining in the country.

Linking Small Farmers to Market (LSFM) Project - To contribute to rural poverty reduction in South East Asia, LSFM is aimed at strengthening the capacity of small farmers and their organizations as they establish on-ground marketing links and collaborate with policy makers at national, sub-regional, and regional levels. Some of LSFM's major activities in the Philippines are capacity building, marketing intermediation mechanism, partnership building, and policy advocacy.

Raising Awareness on the Social Dimensions of Climate Change: A PhilDHRRA Pilot Activity - In its aim to integrate climate change issues in its framework, PhilDHRRA takes off by raising awareness on the social dimensions of climate change through the conduct of regional and national forums/workshops backed with knowledge fair. This is geared to eventually engage its network members in climate change – related initiatives and enhance their capacity to dialogue with the government (both at the local and national levels) for policy formulation and mainstreaming of climate change as a social issue.

Network Capacity-Building for Resource Mobilization (January 2008-December 2010)Alyansa Tigil Mina (ATM) Alternative Mining Bill Campaign (January 2009-onwards)DAR Budget Monitoring Project (June 2008 - November 2009)MTPDP Assessment (June – December 2009)Social Accountability Training (March – December 2009)Raising Awareness on the Social Dimensions of Climate Change: A PhilDHRRA Pilot Activity (May - October 2009)Linking Small Farmers to Market (LSFM) Project (February 2008-December 2009)

NAGKASAMA Sugar Marketing Project (July 2008-June 2010)

Partnership of Philippine Support Service Agencies

(PHILSSA) 3/F Cardinal Hoffner Building, Social Development Complex

Ateneo de Manila University, Loyola Heights 1108, Quezon City Tels. +632 4264328; 4266001 ext. 4854; Fax. +632 4264327

E-mail. philssa@pldtdsl.net; Website. www.philssa.org.phContact Person: Benedict O. Balderrama, National Coordinator

PHILSSA is a partnership network of social development and non-government organizations mostly based in urban centers nationwide. PHILSSA envisions itself as a partnership network and resource center of social development experts and practitioners committed to advocate and work toward a gender-sensitive, transformative and sustainable urbanization with preference for marginalized individuals and poor communities. PHILSSA's main role as a network of NGOs is both pro-active and responsive as it provides both leadership and coordination with its member- NGOs and partners in development work. To date, PHILSSA has 53 member NGOs nationwide.

Specifically, PHILSSA aims for the following:Build capacities of the network and its partner organizations by instituting mechanisms for experiential learning, sharing of resources and competence towards good NGO governance; Facilitate and implement trailblazing initiatives through relevant programs and services geared towards the attainment of sustainable urban development; Provide assistance in fund sourcing and other resource mobilization efforts of partner organization towards sustainability; Serve as organic link and catalyst between and among various service agencies working as partners in advocating and realizing the networks sustainable urbanization agenda.

Major Programs/Projects:

Current Projects:

National Budget Monitoring for Social Housing (supported by USAID/ Management Service International) - Capacity-building project for enhanced civil society participation in national budget monitoring and advocacy, involving training of NGO/PO leaders, development and piloting of budget and project monitoring tools, and budget advocacy agenda-building, all focusing on government programs and budget on social housing.

Piloting Integrated Urban Development Strategies in Selected Barangays in Quezon City (supported by PEF) - A project to strengthen NGO-PO-Barangay cooperation through pilot projects in enterprise development, solid waste management and urban gardening.

Network Strengthening towards a Gender-Sensitive, Transformative and Sustainable Urbanization (supported by Cordaid) - a network support project towards strengthening NGOs' understanding of the urbanisation process and efforts to promote a gender-sensitive, transformative and sustainable urbanization.

Institutionalising Local and National Partnerships to Address Urban Poverty and Homelessness in the Philippines (with support from UK Department for International Development)Urban Partnerships for Sustainable Upgrading, Renewal, Governance and Empowerment (UPSURGE) ( with support from World Bank – JSDF)Broadening Solutions and Stakeholders in Addressing Livable and Secure Habitats for the Urban Poor of the Philippines (with support from Misereor)

23

CODE-NGO Annual Report 2008-09

Western Visayas Network of Social Development NGOs (WEVNet)

72 Villa Matilde Subdivision, Jalandoni Street, Jaro, Iloilo City Tel. 033 3203590, Fax. 033 5086527

E-mail. icode@skyinet.net, Website. www.wevnet.orgContact Person: Emmanuel C. Areno, Executive Director

WEVNet is a regional network of 6 provincial caucuses, namely: Iloilo CODE NGOs, Negros Caucus,

Antique Federation of NGOs, Capiz CODE, Guimaras NGO-PO Caucus and Aklan Caucus of NGOs. It works

towards strengthening the network through partnerships with development organizations at the local, national

and international community; building the capacity of its members on innovative programs for sustainable

development and good governance; and assisting in the transformation of communities through pro-

development advocacy and appropriate technologies. Among its key development programs include:1) Poverty Reduction Management Program – modeling sustainable integrated area development and

transparent and accountable governance in LGUs and communities 2) Sustainable Integrated Area Development (Disaster Risk Reduction and Climate Change Adaptation

Framework) – strengthening capacity of NGOs and development partners on building communities

of resilience3) Participatory, Accountable and Transparent Governance – public-private partnership in combating

corruption 4) Popularizing community-driven development (CDD) in the effective delivery of social services –

Creating CDD communities of practice in KALAHI-CIDDS areas5) Capacity Development through Education and Skills Training – community organizing, resource

mobilization and promotion of active citizenship.

Major Projects:

Public-Private Partnership for Counter Corruption in Roxas City – a development innovation in

WEVNet's transparent and accountable governance program

Creation of the Disaster Risk Reduction Network (DRR Net) Western Visayas – the DRR Net was

borne out of the Social Accountability Leaders Network (SALNet) to respond to emerging

environment crisis, particularly after the typhoon Frank disaster in 2008

Municipal Learning Network for Community-Driven Development (CDD) – ICODE and WEVNet

partners were commissioned by the World Bank and DSWD to popularize CDD best practices on

KALAHI-CIDDS in Iloilo and Capiz through communities of sharing and learning.

Advocacy Projects with CODE-NGO: Constitutional Reform and DA Budget Watch

CODE-NGO Member Networks

24

INDEPENDENT AUDITOR’S REPORT

To the Board of Trustees and Members ofCaucus of Development NGO Networks, Inc.(A Nonstock, Not-for-profit Corporation)69 Esteban Abada St., Loyola Heights, Quezon City

We have audited the accompanying financial statements of Caucus of Development NGO Networks, Inc., which comprise the statement of assets, liabilities and fund balances as of July 31, 2009, and the statement of revenues and expenses, changes in fund balances and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. The July 31, 2008 financial statements of Caucus of Development NGO Networks, Inc. were audited by other auditors, whose report dated October 21, 2008 expressed an unqualified opinion on those financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the assets, liabilities and fund balances of Caucus of Development NGO Networks, Inc. as of July 31, 2009, and of its revenues and expenses and its cash flows for the year then ended in accordance with Philippine Financial Reporting Standards.

For the Firm: BDO Alba Romeo and Co.

LETICIA C. TAGLEPartnerCPA Certificate No. 0017358PTR No. 1592077, January 23, 2009, Makati CityTIN 123-048-280SEC Accreditation No. 0039-AR-2 (Individual)SEC Accreditation No. 0007-FR-1 (Firm)BIR Accreditation No. 08-001682-6-2009PRC/BOA Accreditation No. 0005Makati City, Philippines

FINANCIAL HIGHLIGHTS

MEMBER OF THE

FORUM OF FIRMSBDO Alba Romeo & Co is part of the BDO International network, Member of the Forum of Firms

Alba Romeo & Co Certified Public Accountants

7th Flr. Multinational Bancorporation Centre6805 Ayala Avenue, Makati City, PhilippinesTel. Nos. : (632) 844-2016Facsimile : (632) 844-2045http://www.bdoalbaromeo.comBranches: Bacolod / Cagayan de Oro / Cebu

25

26

Financial Highlights

2008

Notes 2009 (As restated)

Current Assets

Cash and cash equivalents 4 P2,554,156 P4,402,293

Receivables, net 5 4,531,008 6,045,929

Total Current Assets 7,085,164 10,448,222

Non-current Assets

Held-to-maturity investments 6 86,032,404 41,238,711

Available-for-sale investments 7 49,407,490 92,192,291

Property and equipment, net 8 837,702 367,191

Total Non-current Assets 136,277,596 133,798,193

P143,362,760 P144,246,415

Current Liabilities

Accrued expenses and other liabilities 9 P2,979,273 P3,610,300

Deferred grants 10 1,575,264 950,600

Total Current Liabilities 4,554,537 4,560,900

Fund Balances

Endowment fund 16 138,149,244 143,930,774

Membership fund 1,662,821 1,421,656

Equipment fund 596,195 -

General fund (1,600,037) (5,666,915)

Total Fund Balances 138,808,223 139,685,515

P143,362,760 P144,246,415

(With Comparative Figures as of July 31, 2008)

CAUCUS OF DEVELOPMENT NGO NETWORKS, INC.

(A Nonstock, Not-for-profit Corporation)

STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCES

See accompanying Notes to Financial Statements.

July 31, 2009

A S S E T S

LIABILITIES AND FUND BALANCES

27

CODE-NGO Annual Report 2008-09

2008

No

tes

Un

restr

icte

d

Restr

icte

dTo

tal

Unre

strict

ed

Reven

ues

Gra

nts

and d

onatio

ns

11P

7,0

45,8

26

P-

P7,0

45,8

26

P10,1

35,7

53

Inve

stm

ent in

com

e, net

4,6

,77,7

49,2

22

-

7,7

49,2

22

4,3

54,7

41

Oth

er

inco

me

671,3

60

-

671,3

60

801,0

05

15,4

66,4

08

-

15,4

66,4

08

15,2

91,4

99

Exp

en

ses

Pro

ject

exp

ense

s12

7,0

96,8

15

-

7,0

96,8

15

10,1

39,0

85

Pro

gra

m e

xpense

s13

3,7

77,0

75

-

3,7

77,0

75

8,0

28,2

69

Opera

ting e

xpense

s14

3,0

51,6

01

-

3,0

51,6

01

3,5

11,7

73

Doubtful a

ccounts

exp

ense

51,1

61,4

42

-

1,1

61,4

42

-

15,0

86,9

33

-

15,0

86,9

33

21,6

79,1

27

Oth

er

inco

me (

exp

en

se)

Loss

on d

isposa

l of A

FS

inve

stm

ent

-

(16,0

22,6

31)

(16,0

22,6

31)

-

Fore

ign e

xchange g

ain

(lo

ss)

4,6

3,6

87,4

03

-

3,6

87,4

03

(1,3

66,5

22)

3,6

87,4

03

(16,0

22,6

31)

(12,3

35,2

28)

(1,3

66,5

22)

Excess (

Defi

cie

ncy)

of

Reven

ues o

ver

Exp

en

ses

P4,0

66,8

78

(P16,0

22,6

31)

(P11

,955,7

53)

(P7,7

54,1

50)

See a

ccom

panyi

ng N

ote

s to

Fin

anci

al S

tate

ments

.

CA

UC

US

OF

DE

VE

LO

PM

EN

T N

GO

NE

TW

OR

KS

, IN

C.

(A N

onst

ock

, N

ot-

for-

pro

fit C

orp

ora

tion)

For

the Y

ear

Ended J

uly

31, 2009

STA

TE

ME

NT

OF

RE

VE

NU

ES

AN

D E

XP

EN

SE

S

(With

Com

para

tive F

igure

s fo

r th

e Y

ear

Ended J

uly

31, 2008)

2009

28

Financial Highlights

Un

restr

icte

d

Gen

era

l M

em

bers

hip

En

do

wm

en

tE

qu

ipm

en

t

No

tes

Fu

nd

Fu

nd

Fu

nd

Fu

nd

To

tal

Bala

nce

s at A

ugust

1, 2007, as

pre

viousl

y re

port

ed

P1,7

71,5

99

P1,2

10,5

96

P157,1

53,9

40

P-

P160,1

36,1

35

Prior

period a

dju

stm

ents

22

315,6

36

-

-

-

315,6

36

Bala

nce

s at A

ugust

1, 2007, as

rest

ate

d2,0

87,2

35

1,2

10,5

96

157,1

53,9

40

-

160,4

51,7

71

Additi

onal f

unds

rece

ived

-

211

,060

-

-

211

,060

Fair v

alu

e lo

sses

- net

7-

-

(1

3,2

23,1

66)

-

(1

3,2

23,1

66)

Defic

iency

of re

venues

ove

r exp

ense

s fo

r th

e y

ear

(7,7

54,1

50)

-

-

-

(7

,754,1

50)

Bala

nce

s at Ju

ly 3

1, 2008, as

rest

ate

d(5

,666,9

15)

1,4

21,6

56

143,9

30,7

74

-

139,6

85,5

15

Additi

onal f

unds

rece

ived

-

241,1

65

-

-

241,1

65

Donate

d c

apita

l8

-

-

-

614,8

16

614,8

16

Fair v

alu

e g

ain

s -

net

7-

-

10,2

41,1

01

-

10,2

41,1

01

Depre

ciatio

n for

the y

ear

8-

-

-

(1

8,6

20)

(18,6

20)

4,0

66,8

78

-

(1

6,0

22,6

31)

-

(1

1,9

55,7

53)

Bala

nces a

t Ju

ly 3

1, 2009

(P1,6

00,0

37)

P1,6

62,8

21

P138,1

49,2

44

P596,1

96

P138,8

08,2

24

CA

UC

US

OF

DE

VE

LO

PM

EN

T N

GO

NE

TW

OR

KS

, IN

C.

See a

ccom

panyi

ng N

ote

s to

Fin

anci

al S

tate

ments

.

(A N

onst

ock

, N

ot-

for-

pro

fit C

orp

ora

tion)

For

the Y

ear

Ended J

uly

31, 2009

STA

TE

ME

NT

OF

CH

AN

GE

S IN

FU

ND

BA

LA

NC

ES

(With

Com

para

tive F

igure

s fo

r th

e Y

ear

Ended J

uly

31, 2008)

Restr

icte

d

Exc

ess

(defic

iency

) of re

venues

ove

r exp

ense

s fo

r th

e y

ear

29

CODE-NGO Annual Report 2008-09

Notes 2009 2008

Cash Flows from Operating Activities

Deficiency of revenues over expenses (P11,955,753) (P7,754,150)

Adjustments for:

Investment income and interest income 4,6,7 (7,749,222) (4,308,646)

Unrealized foreign exchange loss (gain) 6 (3,648,135) 1,335,138

Realized foreign exchange loss (gain) 4 (39,268) 31,384

Loss on disposal of AFS investment 7 16,022,631 -

Doubtful accounts expense 5 1,161,442 -

Donated capital 596,196 -

Depreciation 8 158,263 152,511

Contributions to retirement fund 15 233,243 211,930

Loss on disposal of property and equipment 10,135 -

Operating loss before working capital changes (5,210,468) (10,331,833)

Decrease in receivables 353,478 3,589,528

Increase (decrease) in -

Accrued expenses and other liabilities (864,270) 238,456

Deferred grants 624,664 (310,355)

Net cash used in operating activities (5,096,596) (6,814,204)

Cash Flows from Investing Activities

Acquisition of held-to-maturity investments (41,145,558) -

Proceeds from sale of AFS investments 7 40,000,000 -

Disposal (acquisition) of AFS investments 7 (2,996,729) 561,294 Acquisition of property and equipment 8 (638,909) (141,810)

Investment and interest income received 4,6,7 7,749,222 4,584,406

Net cash provided by investing activities 2,968,026 5,003,890

Cash Flows from Financing Activity

Additional funds received 241,165 211,060

Effects of Exchange Rate Changes on Cash

and Cash Equivalents 4 39,268 (31,384)

Net Decrease in Cash and Cash Equivalents (1,848,137) (1,630,638)

Cash and Cash Equivalents, Beginning 4,402,293

6,032,931

Cash and Cash Equivalents, Ending P2,554,156 P4,402,293

CAUCUS OF DEVELOPMENT NGO NETWORKS, INC.

STATEMENT OF CASH FLOWS

(A Nonstock, Not-for-profit Corporation)

For the Year Ended July 31, 2009

See accompanying Notes to Financial Statements.

(With Comparative Figures for the Year Ended July 31, 2008)

Financial Highlights

SELECTED NOTES TO THE FINANCIAL STATEMENTS(The complete Notes to the Financial Statements may be viewed at CODE-NGO website - www.code-

ngo.org - and may be requested from the Secretariat)

Note 1 – Organizational Information and Approval of Financial Statements

Organizational Information

Caucus of Development NGO Networks, Inc. (the Organization) was incorporated and registered in the Philippine Securities and Exchange Commission on January 31, 1991. It is an umbrella organization consisting of six (6) national and six (6) regional development non-government organization networks in the Philippines. The organization's activities are funded principally through the earnings of its endowment fund, grants received from external grantors, membership fees and donations.

The registered address of the Organization is located at 69 Esteban Abada Street, Loyola Heights, Quezon City.

Approval of Financial Statements

The Organization's financial statements were approved and authorized for issue by the Board of Trustees (BOT) on October 29, 2009.

Note 4 – Cash and Cash EquivalentsNote

The details of the account are as follows:

Cash on handCash in bankCash equivalentsCash for projects

P10,000417,337300,000

1,826,819

P2,554,156

P15,0001,518,1341,609,861

259,298

4,402,293

2009 2008

Cash in bank consists of peso and dollar-denominated accounts as follows:

Philippine PesoUS Dollar

P2,389,823US$3,415

P4,121,168US$6,369

2009 2008

The US Dollar accounts were translated based on the prevailing exchange rates at fiscal year-end, which were P48.121:US$1 and P44.140:US$1 in 2009 and 2008, respectively.

Cash in banks generally earn interest at rates based on daily bank deposit rates. Cash equivalents are composed of money market placements with original maturity of three months or less and earn interest ranging from 4% to 7% per annum. Interest earned from cash and cash equivalents amounted to P75,932 and P46,095 in 2009 and 2008 respectively, and are reported as part of Other income in the statement of revenues and expenses.

Foreign exchange gain from dollar-denominated deposits amounts to P39,268 in 2009 and foreign exchange loss amounts to P31,384 in 2008.

Note 5 – Receivables, net

The details of this account are as follows:

Investment income receivableGrants receivableOther receivables

Allowance for doubtful accounts

P2,945,6771,021,501

563,830

4,531,008-

P4,531,008

P1,513,9903,242,2102,184,929

6,941,149(895,200)

P6,045,929

2009 2008

30

CODE-NGO Annual Report 2008-09

Other receivables include due from member and non-member networks as well as advances and loans to officers and employees of the Organization.

A reconciliation of the allowance for impairment at beginning and end of fiscal years 2009 and 2008 is shown below:

Beginning balanceAdditional provisionWrite-offReversal

Ending Balance

P895,2001,161,442

(2,056,642)-

P-

P1,192,356--

297,156

P895,200

2009 2008

The accounts written off during the year pertains to grants receivables, advances to member and non-member networks and advances and loans to officers and employees which are long outstanding and are considered impaired after the management has exerted efforts to collect from them.

Note 6 – Held-to-maturity Investments

The details of this account are as follows:

Republic of the Philippines (ROP) bondsGovernment and other debt securitiesPreferred equity shares

P44,631,69926,400,708

15,000,00

P86,032,404

P41,238,711--

P41,38,711

2009 2008

The ROP bonds are managed by a local bank and has a book value of P43,308,900 and an unamortized premium of P1,322,796 in 2009, and P39,726,000 and P1,512,711, respectively in 2008.

The investment in government and other securities is managed my AB Capital and Investment Corporation. The fund yielded an annualized net rate of return of 12.58%.

The preferred equity shares pertain to the shares of National Confederation of Cooperatives (NATCCO) with a par value of P100 per share. It has a term of 4 years and will mature on November 3, 2012 and has interest rate of 11% per annum.

Investment income earned from these investments, net of premium amortization and investment management fees amounted to P4,962,899 and P3,047,286 in 2009 and 2008, respectively. Foreign exchange gain from investment in ROP bonds amounted to P3,648,135 in 2009 and foreign exchange loss in 2008 amounted to P1,335,138.

The total fair value of the HTM investments as of July 31, 2009 and 2008 is P91,380,441 and P45,390,589, respectively.

Note 7 – Available-for-sale Investments

The details of the account are as follows:

Unit investment trust fund (UITF)Loan fund

P31,954,67817,452,812

P49,407,490

P77,736,20814,456,083

P92,192,291

2009 2008

The reconciliation of the carrying amounts of AFS investments are as follows:

Balance at August 1, 2008AdditionsDisposals (at cost)Fair value gains (losses)

Balance at July 31, 2009

P92,192,2912,996,729

(56,022,631)10,241,101

P49,407,490

P106,035,2572,165,539

(2,785,339)(13,223,166)

P92,192,291

2009 2008

31

Financial Highlights

The UITF is a collectible investment scheme that pools the investments of small investors into a larger fund under professional management that is able to access more superior investment opportunities normally not available to individual retail players. The investors share in the gains or losses of the fund, proportionate to their respective participation in the pool. The Organization intends to hold the investment in unitized investment trust fund on a long-term basis.

The loan fund pertains to investment in the loan fund of NATCCO which earns interest at 10% annually.

Investment income earned from AFS investments amounted to P2,710,391 and P1,261,360 in 2009 and 2008, respectively.

Net fair value gain amounted to P10,241,101 for the fiscal year ended July 31, 2009 and net fair value loss amounted to P13,223,166 for the fiscal year ended July 31, 2008. This revaluation reserve on market value of the AFS investments is presented as part of the Endowment Fund.

In October 2008, the Organization sold part of its UITF amounting to P56,022,631 for P40,000,000 from which it incurred a loss of P16,022,631 and which it recognized in the statement of revenues and expenses.

Note 11 – Grants and Donations

Foreign grants: Katholische Zentralstelle fur Entroicklungshilfe e.V Management Systems Internantional (MSI) United Kingdom Charity Commission (UKCC) National Endowment for Democracy (NED) United Nations (UN) Park Won Soon Fund Embassy of Japan Japan Foundation/ACC21

P3,500.0041,418,428

137,510767,459

55,96122,887

--

P5,911,249

2009 2008

P5,524,42188,826

829,437--

122,154363,756

11,655

P6.940,249

Grants and donations represent several project funds received from local and foreign funding agencies to carry out specific national programs based on budgets submitted and approved. All related expenses pertaining to such programs have been classified under the Project expenses account in the statement of revenues and expenses. Grants realized in 2009 and 2008 are as follows:

Local grants: Peace and Equity Foundation (PEF) Commission on Human Rights (CHR) Initiatives for Dialogue and Empowerment through Alternative Legal Services, Inc. (IDEALS) Ateneo School of Governemt

784,815319,275

30,487-

1,134,577

P7,045,826

2009 2008

2,836,955-

-358,549

3,195,504

P10,135,753

32

CODE-NGO Annual Report 2008-09

Note 12 – Projects and Expenses

The details of the account for the fiscal years ended July 31, 2009 and 2008 are as follows:

Project Funding Agencies 2009 2008 Civil Society Advocacy on

Constitutional Reform (Phase 2) Katholische

Zentralstelle fur Entroicklungshilfe e.V.

P3,559,749

P5,526,287 Department of Agriculture Budget

Monitoring

MSI

1,418,428

88,826 Pilot NGO Assessment Tool UKCC 137,540 830,065 Social Development Week and Multi

Sectoral Regional Anti-Poverty Partnerships PEF

784,815

- Development and Change Politics

NED

767,459

- Implementing the Civil Society Index

in the Philippines

CHR

319,489

- United Nations- Civil Society Advisory

Committee

UN

55,961

- MTPDP Assessment IDEALS 30,487 - Park Won Soon Fund Park Won Soon 22,887 122,154 Priority Development Assistance Fund

Watch

PEF

-

1,919,910 Multi-Sectoral Regional Anti-Poverty

Partnerships

PEF

-

917,883

Social Development Week Embassy of Japan - 363,756

Economic Policy Reform Advocacy III Ateneo School of

Government

-

358,549

Philippine-Japan Partnership

Japan Foundation/ ACC21

-

11,655 P7,096,815 P10,139,085

Note 13 – Program Expenses

The details of the account for the fiscal years ended July 31, 2009 and 2008 are as follows:

2009 2008 Personnel Costs – Programs P1,543,090 P1,572,799 Network Strengthening Fund 1,332,500 3,000,000 Board Meetings, National Assembly 394,072 598,640 Democracy Fund 360,000 629,500 CODE-NGO Advocacy 49,416 235,041 Scholarship Grant Program 42,164 - Commission on Institution and Capacity Building 32,151 1,340,751 Commission Internal Reform Initiative 23,682 651,538

P3,777,075 P8,028,269

33

34

Financial Highlights

Note 14 – Operating Expenses

The details of the account for the fiscal years ended July 31, 2009 and 2008 are as follows:

2009 2008 Personnel costs P2,017,068 P2,027,850 Professional fees 300,000 410,415 Depreciation 139,643 152,511 Travel and transportation 69,673 149,544 Office tools and supplies 55,105 93,279 Utilities 21,405 87,354 Rent - 57,412 Others 448,707 533,408 P3,051,601 P3,511,773

Note 16 – Endowment Fund

The amount of the endowment fund of the Organization was set up at P147,964,530 through a resolution by

the BOT on December 6, 2004. The amount shall be restricted and only its earnings shall be utilized for

operations and strengthening of the networks and its members.

The BOT promulgated policies restricting a certain percentage of the annual earnings which must be plowed

back to the endowment fund in order to maintain the real value of the fund. The latest policy of the BOT,

passed in December 2005, resolved that the reflows to the endowment fund must be at least equivalent to the

prevailing annual inflation rate.

This account consists of the following:

2009 2008 Cash and cash equivalents P- P4,137,995 Receivables 2,709,350 6,045,929 Investments in:

Bonds 44,631,696 41,238,711 Government and other debt securities

26,400,708

- Preferred equity shares 15,000,000 - Unit investment trust fund

31,954,678

77,736,208 Loan fund 17,452,812 14,456,083

Property and equipment -

315,848

P138,149,244 P143,930,774

35

CODE-NGO Annual Report 2008-09

Mr. Park Won Soon, a Ramon Magsaysay Awardee for Public Service in 2006, donated to the Organization

his award money amounting to US$50,000 on February 25, 2007. The peso equivalent of this was

P2,476,000. The Organization's BOT decided to use P476,000 to support PO/NGO activities related to

engagement in the 2007 elections. The BOT also decided that the remaining P2,000,000 will be pooled with

the endowment fund of the Organization and its earnings will be used to fund projects for social justice and

democracy based on guidelines to be approved by the Board. Due to the losses incurred by the endowment

fund investments in 2008 (as a result of the global economic crisis), the value of the fund declined by 0.8% or

from P2,000,000 in March 2007 to only P1,983,443 as of July 31, 2009.

The following table shows the movement on the fund from Mr. Park Won Soon from fiscal years 2006 to 2009:

Share in

Share in Income

Inc. (Dec.) in Endowment Fund

Balance Net Effect

Fund Balance, Ending

Fund Balance, Beginning P2,000,000

FY 2006-2007 P29,359 P35,400 P64,759 2,064,759

FY 2007-2008 68,202 (173,732) (105,530) 1,959,229

FY 2008-2009 102,914 (78,700) 24,214 1,983,443

Total P200,475 (P217,032) (P16,557)

The movements in the fund are as follows:

2009 2008 Beginning balance, at cost

P154,421,021

P155,040,821 Additional investments

40,000,000

2,165,539 Disposal of investments

(56,022,631)

(2,785,339) Ending balance, at cost

138,398,390

154,421,021

Beginning fair value adjustm ent

(10,490,247)

2,732,919 Unrealized gain (loss) for the year

10,241,101

(13,223,166) Ending fair value adjustment

(249,146)

(10,490,247)

P138,149,244 P143,930,774

From Mindanao: Ian Digal, Louise Lampon and Rolando Abando (MINCODE).

From the Visayas: Atty. Raul Barbarona (CenVISNET), Mona Liza Diones (WEVNet) and Agustin Docena (EVNet).

From the National Networks: Dolora Carde o (NCSD), Emelina Santos (NATCCO), Treasurer Felicitas Rixhon (AF), Vice Chairperson Patricia Calilong (PBSP) and Chairperson Anna Marie Karaos (PHILSSA).

Fr. Enrico Montano (PHILDHRRA),

ñ

THE NATIONAL BOARD

OF TRUSTEES

36 From Luzon: Fr. Granwell Pitapit (CBD) and Sr. Celerina Zabala (CORDNet) Atty. Ferdinand Casis

Corporate Secretary

Sixto Donato MacasaetExecutive Director

Cezar BelangelDeputy Executive Director

Wilhelmina Carmona-BostonFinance Manager

Roselle RasayProgram Specialist for Membership

Patrick LimProgram Specialist for AdvocacyCecil Delfin

Finance Assistant

Michael TimajoOffice Assistant

Raul Socrates BanzuelaC4CC National Coordinator

Rowel CandelariaC4CC Coalition Builder for Luzon

Artemio Cusi, Jr.C4CC Media Officer

January AguirreC4CC Technical Assistant

37

Ma. Magdalena Labios-DemataC4CC Finance Assistant

Tristan Tresvalles Development & Change Politics, Project Coordinator

Sandino SolimanProject Assistant

NATIONAL SECRETARIAT

69 Esteban Abada Street, Loyola Heights, Quezon CityTel. Nos. (+632) 435-8816 . (+632) 926-8131 . (+632) 920-2595

Email: caucus@code-ngo.org

www.code-ngo.org