BPFSCI - FS2020 - Final Draft

BLESSED PETER FABER SPIRITUALITY CENTER INC.
(A Non-Stock, Non-Profit Organization)

Statements of Financial Position
As at May 31,
Note/s 2020 2019
A S S E T S
Current assets:
Cash 5 ₱ 1,309,934 ₱ 1,717,646
Receivables 7 626,924 495,912
Other current assets 8 346,303 317,367
Total current assets ₱ 2,283,161 ₱ 2,530,925
Non-current assets:
Property & equipment – net 9 ₱ 14,415,370 ₱ 15,583,551
Total non-current assets ₱ 14,415,370 ₱ 15,583,551
TOTAL ASSETS ₱ 16,698,531 ₱ 18,114,476
L I A B I L I T I E S & F U N D B A L A N C E
Current liabilities:
Accounts payable 10 ₱ 683,139 ₱ 444,685
Advances from affiliate – current portion 14 – 75,000
Total current liabilities ₱ 683,139 ₱ 519,685
Non-current liabilities:
Retirement benefit obligation – net 13 ₱ 1,515,893 ₱ 2,502,411
Total non-current liabilities ₱ 1,515,893 ₱ 2,502,411
Total liabilities ₱ 2,199,032 ₱ 3,022,096
Fund balance:
General fund ₱ 13,383,586 ₱ 14,000,467
Restricted fund 1,115,913 1,091,913
Total fund balance ₱ 14,499,499 ₱ 15,092,380
TOTAL LIABILITIES & FUND BALANCE ₱ 16,698,531 ₱ 18,114,476
See accompanying notes to the financial statements.
Blessed Peter Faber Spirituality Center Inc.

Financial Statements
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Statements of Support, Donations and Expenses
For the fiscal years ended May 31,

Note/s 2020 2019
Restricted Fund:
Love offering & donations 11 ₱ 24,000 ₱ 1,603,033
Program costs 12 – (1,415,638)
Excess of support and donations over expenses ₱ 24,000 ₱ 187,395
General Fund:
Love offering & donations 11 ₱ 18,513,987 ₱ 22,485,527
Expenses: 12
Program costs ₱ (13,206,699) ₱ (15,568,700)
General and administrative costs (5,926,972) (6,985,207)
₱ (19,133,671) ₱ (22,553,907)
Other income:
Interest income – net of final tax 11 ₱ 2,803 ₱ 2,509
Deficit of support and donations over expenses ₱ (616,881) ₱ (65,871)
Total excess (deficit) of support and donations
over expenses ₱ (592,881) ₱ 121,524

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Statements of Changes in Fund Balance

2020 2019
General fund:
Balance at the beginning of the year ₱ 14,000,467 ₱ 14,066,338
Deficiency of support and donations over expenses (616,881) (65,871)
Balance at the end of the year ₱ 13,383,586 ₱ 14,000,467
Restricted fund:
Balance at the beginning of the year ₱ 1,091,913 ₱ 904,518
Excess of support and donations over expenses 24,000 187,395
Balance at the end of the year ₱ 1,115,913 ₱ 1,091,913
Total fund balance at the end of the year ₱ 14,499,499 ₱ 15,092,380

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Statements of Cash Flows

Note/s 2020 2019
Cash flows from operating activities:
Excess (deficit) of support and donations over expenses ₱ (592,881) ₱ 121,524
Adjustments for:
Interest income – net of final tax 11 (2,803) (2,509)
Retirement benefits expense - net 13 (732,391) 1,063,931
Depreciation 9 2,330,325 2,311,724
Operating income before working capital adjustments ₱ 1,002,250 ₱ 3,494,670
Working capital adjustments:
Decrease (Increase) in:
Receivables (131,012) 340,527
Other current assets (28,936) (63,143)
Increase (Decrease) in:
Accounts payable 238,454 (715,213)
Net cash generated from operations ₱ 1,080,756 ₱ 3,056,841
Interest received 11 2,803 2,509
Retirements benefits paid 13 (14,127) –
Net cash provided by operating activities ₱ 1,069,432 ₱ 3,059,350
Cash flows from investing activities:

Acquisition of property & equipment 9 ₱ (1,162,144) ₱ (2,053,059)
Cash contribution to retirement plan 13 (240,000) (480,000)
Net cash used in investing activities ₱ (1,402,144) ₱ (2,533,059)
Cash flows from financing activities:

Repayments of amounts due to affiliates 14 ₱ (75,000) ₱ (420,000)
Net cash used in financing activities ₱ (75,000) ₱ (420,000)
Net increase (decrease) in cash ₱ (407,712) ₱ 106,291
Cash at beginning of the year 5 1,717,646 1,611,355
Cash at end of the year 5 ₱ 1,309,934 ₱ 1,717,646

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Notes to the Financial Statements
As at May 31, 2020 and 2019, and
for the fiscal years ended May 31, 2020 and 2019
1. Reporting Entity
1.1 Formation and Operations
Blessed Peter Faber Spirituality Center Inc. (the Center) was incorporated under the laws of the
Republic of the Philippines and duly registered with the Securities and Exchange Commission (SEC) on
November 5, 2007. Its main purpose is to administer and manage the properties and temporalities of
the church, this corporation being the one which does not in contemplate pecuniary gain or profit to
the members thereof.
The registered office address of the Center is located at 132 B. Gonzales St., Loyola Heights, Quezon
City.
1.2 Approval on the Release of the Financial Statements

The accompanying financial statements of the Center as at and for the fiscal year ended May 31, 2020
(including comparative amounts as at and for the fiscal year ended May 31, 2019) were approved and
authorized for issue by the Board of Trustees on September 7, 2020
2. Basis of Preparation
The accompanying financial statements of the Center have been prepared using the measurement bases for
each type of asset, liability, income and expense specified by the Philippine Financial Reporting Standards for
Small Entities (PFRS for SEs), which have been adopted by SEC and Financial Reporting Standards Council
(FRSC).
2.1 Statement of Compliance

The financial statements of the Center have been prepared in compliance with the PFRS for SEs and
are prepared for submission to the SEC and the Bureau of Internal Revenue (BIR).
2.2 Going Concern Assumption

The preparation of the accompanying financial statements of the Center is based on the premise that
the Center operates on a going concern basis which contemplate the realization of assets and
settlement of liabilities in the normal course of its activities. The management does not intend to
liquidate nor cease its operations.
2.3 Functional and Presentation Currency

The financial statements are presented in Philippine Pesos (₱), the Center’s functional and
presentation currency, and all values are rounded to the nearest peso except when otherwise
indicated.
3. Transition to the PFRS for SEs

These financial statements, for the year ended May 31, 2020, are the first the Center has prepared in
accordance with PFRS for SEs. For periods up to and including the year ended May 31, 2019, the Center
prepared in accordance with PFRS for Small and Medium-sized Entities (PFRS for SMEs).

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Accordingly, the Center has prepared financial statements that comply with PFRS for SEs applicable as at May
31, 2020, as described in the summary of significant accounting policies. In preparing the financial
statements, the Center’s opening statement of financial position was prepared as at June 1, 2019, the
Center’s date of transition to PFRS for SEs.
3.1 Basis of Transition

Pursuant to Revised Securities Regulation Code Rule 68 (SRC Rule 68), companies considered as small
entities shall use PFRS for SEs as their financial reporting framework. For purposes of Revised SRC Rule
68, small entities are those that meet all the following criteria:
 Total assets or total liabilities of between ₱3 Million to ₱100 Million;

 Are not required to file financial statements under Part II of SRC Rule 68;
 Are not in the process of filing their financial statements for the purpose of issuing any class of
instruments in a public market; and
 Are not holders of secondary licenses issued by regulatory agencies.
The Center meets all the above-mentioned criteria as at the end of May 31, 2020. Accordingly, the
Center has prepared the financial statements that comply with PFRS for SEs applicable as at May 31,
2020, any correction of prior period error and adjustments arising from the adoption of the new
framework are adjusted to the opening balance of the current year accumulated profits, as described
in the significant accounting policies.
3.2 Reconciliation of Equity and Total Income

The effects of the transition to PFRS for SEs have no significant impact on the Center’s assets, liabilities,
equity and profit or loss as of the reporting dates, as well as the opening statement of financial position
balances.
4. Summary of Significant Accounting Policies

The significant accounting policies that have been used in the preparation of the financial statements are
summarized below and have been applied consistently to all years presented, unless otherwise stated.
4.1 Financial Instruments

A financial instrument is a contract that gives rise to both a financial asset of one entity and a financial
liability or equity instrument of another entity.
Date of Recognition
The Center recognizes a financial asset or a financial liability in the statements of financial position
when it becomes a party to the contractual provisions of the instrument.
Initial Recognition
Financial instruments are recognized initially at transaction price. Transaction costs are included in
the initial measurement of all financial assets and liabilities.
Subsequent Measurement
Subsequent measurements of financial instruments are summarized below:
a) Cash
Cash includes cash in banks and petty cash funds set aside for current purposes. It is unrestricted
in use and is valued at face value.

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b) Basic Debt Instruments
Basic debt instruments are non-derivative financial instruments that entitles the Center to
unconditional collections (in the case of financial assets) or requires the Center to unconditional
payments or prepayments (in the case of financial liabilities) of fixed amount of return, a fixed
rate of return, or a variable rate of return equal to a single reference quoted or observable rate,
or some combination of fixed and variable rate of return throughout the life of the instrument.
Subsequent to initial recognition, basic debt instruments are measured at amortized cost using
the effective interest method. Those basic debt instruments classified as current shall be
measured at the undiscounted amount of cash or other consideration expected to be paid or
received. Any change in their value is recognized in profit or loss.
These instruments include receivables, utility deposits, accounts payable, and advances from
affiliate.
Receivables. Pledges receivable is an agreement between the donor and the Center where
the donor promises to contribute, at a later date, a cash or other assets to the Center.
Utility Deposits. Utility deposits represent deposits for electric and water meters and other
services usually refundable after the end of contract or services less any charges.
Accounts Payable. Accounts payable are obligations to pay for goods or services that have
been acquired in the ordinary course of operations from suppliers.
Advances from Affiliate. Advances represent advances made by an affiliate used for building
improvements expenditures. These are unsecured and non-interest bearing.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of financial assets)
is derecognized when (a) the contractual rights to receive cash flows from the asset have expired or
settled; (b) the Center transfers to another party substantially all the risks and rewards of ownership
of the asset.
Financial liabilities are derecognized from the reporting date only when the obligations are
extinguished either through discharge, cancellation or expiration. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or modification is treated as a derecognition of
the original liability and the recognition of a new liability, and the difference in the respective carrying
amounts is recognized in profit or loss. Gains and losses are recognized in the statement of support,
donations and expenses when liabilities are derecognized as well as through the amortization process.
Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there
is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a
net basis or realize the asset and settle the liability simultaneously.
4.2 Other Assets

Other assets include supplies and prepaid insurance. Other assets that are expected to be realized
within 12 months after reporting date are classified as current assets. Otherwise, these are classified
as non-current assets.
4.3 Property and Equipment

These are tangible assets that are held for use in production or supply of goods or services, for rental
to others, or for administrative purposes, and are expected to be used during more than one period.

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Initial Recognition
The initial cost of property and equipment comprises its purchase price, including legal and brokerage
fees, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates,
and any directly attributable costs of bringing the assets to their working condition and location for
their intended use.
Subsequent Expenditures
Expenditures incurred after the property and equipment have been put into operation, such as repairs,
maintenance and overhaul costs are normally charged to income in the period the costs are incurred.
In situations where it can be clearly demonstrated that the expenditures have resulted in an increase
in the future economic benefits expected to be obtained from the use of an item of property and
equipment beyond its originally assessed standard of performance, the expenditures are capitalized
as additional costs of property and equipment.
Subsequent Measurement
Property and equipment are stated at cost less accumulated depreciation and any accumulated
impairment losses.
Depreciation Method
Depreciation of property and equipment commences once the property and equipment are available
for use and computed using the straight-line method to allocate their cost over their estimated useful
lives, as follows:
Asset Estimated Useful Life

Buildings, facilities & improvements 2 – 10 years
Chapel & retreat house furniture &
equipment 2 – 10 years
Transportation equipment 5 – 10 years
Office equipment 2 – 5 years
The estimated useful lives and depreciation method are reviewed periodically to ensure that the
period and method of depreciation are consistent with the expected pattern of economic benefits
from the items of property and equipment.
Derecognition
Fully depreciated assets are retained in the accounts until they are no longer in use and no further
depreciation are credited or charged to current operations. When assets are retired or otherwise
disposed of, the cost and related accumulated depreciation and accumulated impairment loss, if any,
are removed from the accounts and any resulting gain or loss is credited or charged to current
operations.
4.4 Impairment of Assets

If an asset’s carrying amount is higher than its recoverable amount, the asset is judged to have suffered
an impairment loss. The asset shall therefore be written-down to its recoverable amount and the
difference shall be reported as impairment loss and recognized immediately in profit or loss.
Financial Assets
The Center assesses at the end of each reporting date whether there is objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of financial assets
is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one
or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and
that loss event (or events) has an impact on the estimated future cash flows of the financial asset or
group of financial assets that can be reliably estimated. Evidence of impairment may include a (a)
breach of contract by the debtor, such as a default or delinquency in interest or principal payments;
(b) the Center, for economic or legal reasons relating to the debtor’s financial difficulty, granting to

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the debtor a concession that the Center would not otherwise consider; or (c) significant financial
difficulty of the debtor or the issuer or it has become probable that the debtor or the issuer will enter
bankruptcy or other financial reorganization.
a) Financial Assets Carried at Amortized Cost

If there is an objective evidence that an impairment loss on financial assets carried at amortized
cost has been incurred, the amount of loss is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash flows (excluding future credit
losses that have not been incurred) discounted at the financial asset’s original effective interest
rate (i.e., the effective interest rate computed at initial recognition). If the financial asset has a
variable interest rate, the discount rate for measuring any impairment loss is the current effective
interest rate determined under the contract. The carrying amount of the asset shall be reduced
either directly or through use of an allowance account. The amount of the loss shall be recognized
in the statements of support, donations and expenses. Receivables, together with the associated
allowance accounts, are written-off when there is no realistic prospect of future recovery.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed either directly or by adjusting an allowance account. Any
subsequent reversal of an impairment loss is recognized in profit or loss immediately, to the extent
that the carrying amount of the asset does not exceed what the carrying amount would have been
had the impairment not previously been recognized.
Non-financial Assets
The carrying amounts of the Center’s non-financial assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the asset’s
recoverable amount is estimated.
a) Non-financial Assets other than Inventories

The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its value in use
and its fair value less costs to sell. Value in use is the present value of the future cash flows
expected to be derived from an asset or CGU, while fair value less costs to sell is the amount
obtainable from the sale of an asset or CGU in an arm’s length transaction between
knowledgeable, willing parties, less the costs of disposal. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. For
the purpose of impairment testing, assets that cannot be tested individually are grouped together
into the smallest group of assets that generate cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets or CGUs. An impairment loss
is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable
amount. Impairment losses are recognized in profit or loss.
Impairment losses recognized in prior periods are assessed at each reporting date for any
indications that the loss has decreased or no longer exists. If any such indication exists, the entity
shall determine whether all or part of the prior impairment loss should be reversed.
4.5 Fund Balances

The fund balances of the Center are maintained to reflect the resources for various activities which
observe the limitations and restrictions placed on the use of resources. On overall, the fund balances
of the Center are reported in two fund groups – general or undesignated fund and restricted or
designated fund.
Excess funds from fully completed and liquidated projects are transferred from restricted or
designated fund to the general or undesignated fund subject to the approval of the Board of Trustees.

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General or Undesignated Fund
General or undesignated fund represents the resources available for the Center’s operations and
administration functions.
Restricted or Designated Fund

Restricted or designated fund represents the resources which carry restrictions and are to be used
only for purposes specified by their donors and be utilized for the main programs of the Center.
4.6 Support and Donations Recognition

Support and donations either monetary or in-kind are initially recognized at the fair value of the
consideration received in the ordinary course of the Center’s activities.
Support and donations are recognized to the extent that it is probable that the economic benefits will
flow to the Center and the amount of support and revenue can be measured reliably. A specific criteria
must be met for each of the Center’s activities as described below:
Love offerings and Donations

Support and donations from love offerings and other donations are recognized in the period received
and reported as revenues of the fund for which they are intended. General or undesignated support
and donations comprise of unconditional contributions, including unconditional promises to give cash
or other assets, are recognized as revenue in the period received at their fair value.
Designated support and donations are recognized upon fulfillment of the donor-imposed conditions
attached to the support and/or to the extent that expenses are incurred. Designated support for which
assets have been received but restrictions and conditions have not yet been met, are deferred in
deferred grant account.
Interest Income
Interest income is recognized as the interest accrues (using the EIR method that is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial instrument to the
net carrying amount of the financial asset).
4.7 Cost and Expense Recognition

Costs and expenses are decreases in economic benefits during the accounting period in the form of
outflows or decrease of assets or incurrence of liabilities that result in decreases in equity, other than
those relating to distributions to equity participants. These costs, including all finance costs, are
recognized in the statements of support, donations and expenses when incurred.
Costs and expenses are recognized in the statements of support, donations and expenses:
 on the basis of a direct association between the costs incurred and the earning of specific items
of income;
 on the basis of systematic and rational allocation procedures when economic benefits are
expected to arise over several accounting periods and the association can only be broadly or
indirectly determined; or
 immediately when expenditure produces no future economic benefits or when, and to the extent
that, future economic benefits do not qualify or cease to qualify, for recognition in the statements
of financial position as an asset.
4.8 Employee Benefits

Employee benefits are all forms of consideration given by the Center in exchange for services rendered
by employees, including trustees and management.

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Short-term Benefits
These benefits are recognized as expense in the period when the economic benefit is given or as an
asset when such costs may be capitalized and is measured at an undiscounted basis. These include
salaries, wages and social security contributions, leave entitlement, profit-sharing, bonuses, and other
non-monetary benefits.
Employee entitlements to annual leave are recognized as a liability when they are accrued to the
employees. The undiscounted liability for leave expected to be settled wholly before twelve months
after the end of the annual reporting period is recognized for services rendered by employees up to
the end of the reporting period.
Retirement Benefits
The Center is covered by a non-contributory defined benefit retirement plan. Republic Act No. 7641
relates to a defined benefit plan. A defined benefit plan is a post-employment plan that defines an
amount of post-employment benefit that an employee will receive on retirement, usually dependent
on one or more factors such as age, years of service, and salary. The legal obligation for any benefits
from this kind of post-employment plan remains with the Center. The Center’s defined benefit post-
employment plan covers all regular full-time employees.
Accrual approach is applied by calculating the expected liability as of reporting date using the current
salary of the entitled employees and the employees’ years of service, without consideration of future
changes in salary rates and service periods.
The liability recognized in the statements of financial position for defined benefit plan uses the
simplified measurements permitted by Section 22 of PFRS for SEs, at the net total of the accrued
amount of the retirement benefits at the reporting date and the fair value of plan assets (if any) at the
reporting date out of which the obligations are to be settled directly.
4.9 Provisions and Contingencies

Provisions are recognized when the Center has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Where the Center expects some or all of a provision to be reimbursed, the reimbursement is
recognized as a separate asset but only when the reimbursement is virtually certain and shall not
exceed the amount of provision, it shall be presented in the statement of financial position without
offsetting against the provision. The expense relating to any provision is presented in the statements
of support, donations and expenses, net of any reimbursement. If the effect of time value of money
is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the
risks specific to the liability. Where discounting is used, the subsequent reduction in the present value
that results from the passing of time shall be recognized in profit or loss in the period it arises.
Contingent assets and liabilities are not recognized in the financial statements. Contingent assets are
disclosed in the notes to the financial statements when an inflow of economic benefits is probable but
not virtually certain. When the flow of future economic benefits to the entity is virtually certain, then
the related asset is not a contingent asset, and its recognition is appropriate. On the other hand,
contingent liabilities are disclosed in the notes to the financial statements unless the possibility of an
outflow of resources embodying economic benefits is remote.
4.10 Income Tax

The Center is exempt from the payment of taxes pursuant to Section 30 (E) of the Tax Reform Act of
1997, Exemption from Tax on Corporations. The receipts from activities conducted in pursuit of the
objectives for which the Center was established are exempt from income tax. However, any income
arising from its real or personal properties, or from activities conducted for profit, regardless of the
disposition made of such income, is subject to income tax.

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The Center is also a non-VAT registered entity, being a non-stock, non-profit organization, which shall
exclude the Center from paying value-added taxes.
4.11 Related Parties

A related party is a person or entity that is related to the Center that is preparing its financial
statements. These parties include: (a) individuals owning, directly or indirectly through one or more
intermediaries, control or are controlled by, or under common control with the Center; (b) associates;
(c) individuals owning, directly or indirectly, an interest in the voting power of the Center that gives
them significant influence over the Center and close members of the family of any such individual;
and, (d) the Center’s retirement plan, if any. In considering each possible related party relationship,
attention is directed to the substance of the relationship and not merely to the legal form.
4.12 Events After the End of Reporting Period

Any post year-end event up to the date of approval of the Board of Trustees of the financial statements
that provides additional information about the Center’s position at the reporting date is reflected in
the financial statements as an adjusting event. Any post year-end event that is not an adjusting event
is disclosed in the notes to the financial statements, when material.
5. Cash
Cash includes:
2020 2019
Cash in banks ₱ 1,241,934 ₱ 1,649,646
Petty cash fund 68,000 68,000
Total ₱ 1,309,934 ₱ 1,717,646
Cash in banks represent savings and demand deposit accounts in various universal banks that generally earn
interest at their respective daily bank deposit rates. Petty cash fund is used for payment of minor
disbursements and is maintained under an imprest fund system.
Interest income earned from cash in banks amounted to ₱2,803 in 2020 and ₱ 2,509 in 2019 (see Note 11).
6. Financial Instruments
This account consists of:
2020 2019
Financial Assets
At Amortized Cost:
Cash ₱ 1,309,934 ₱ 1,717,646
Receivables 626,924 495,912
Utility deposits 95,231 95,231
Total ₱ 2,032,089 ₱ 2,308,789
Financial Liabilities
At Amortized Cost:
Accounts payable ₱ 683,139 ₱ 444,685
Advances from affiliate – 75,000
Total ₱ 683,139 ₱ 519,685

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7. Receivables
2020 2019
Pledges receivable ₱ 626,924 ₱ 495,912
Total ₱ 626,924 ₱ 495,912
Pledges receivables are commitments from various sponsors which are non-interest bearing and collectible
within 12 months.
All of the Center’s receivables have been reviewed for indicators of impairment. Management did not
provide any allowance for impairment losses since majority of the receivables are not yet past due and all
receivables are still currently collectible.
None of the receivables were pledged as collateral to secure the Center’s liabilities.
8. Other Current Assets

2020 2019
Unused supplies ₱ 251,072 ₱ 209,018
Utility deposits 95,231 95,231
Prepaid insurance – 13,118
Total ₱ 346,303 ₱ 317,367
Unused supplies are the ending inventories of office, kitchen, chapel, laundry & household supplies.
Utility deposits represent deposits for electric and water meters and other services usually refundable after
the end of contract or services less any charges.
Prepaid insurance is the amount of insurance premiums paid which are to be applied as expenses for the
next taxable year.
9. Property & Equipment

The roll-forward analyses of this account are as follows:
Chapel & Retreat

Buildings, Facilities House Furniture & Transportation Office
& Improvements Equipment Equipment Equipment Total
Cost:
As at May 31, 2018 ₱ 24,409,583 ₱ 11,984,852 ₱ 1,071,173 ₱ 1,547,947 ₱ 39,013,555
Additions 1,673,767 312,408 – 66,884 2,053,059
As at May 31, 2019 ₱ 26,083,350 ₱ 12,297,260 ₱ 1,071,173 ₱ 1,614,831 ₱ 41,066,614
Additions 888,754 258,685 – 14,705 1,162,144
As at May 31, 2020 ₱ 26,972,104 ₱ 12,555,945 ₱ 1,071,173 ₱ 1,629,536 ₱ 42,228,758
Accumulated depreciation:
As at May 31, 2018 ₱ 12,225,955 ₱ 8,956,604 ₱ 515,173 ₱ 1,473,607 ₱ 23,171,339
Depreciation 1,552,046 632,585 69,500 57,593 2,311,724
As at May 31, 2019 ₱ 13,778,001 ₱ 9,589,189 ₱ 584,673 ₱ 1,531,200 ₱ 25,483,063
Depreciation 1,644,680 565,956 69,500 50,189 2,330,325
As at May 31, 2020 ₱ 15,422,681 ₱ 10,155,145 ₱ 654,173 ₱ 1,581,389 ₱ 27,813,388

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Carrying amount:
As at May 31, 2019 ₱ 12,305,349 ₱ 2,708,071 ₱ 486,500 ₱ 83,631 ₱ 15,583,551
As at May 31, 2020 ₱ 11,549,423 ₱ 2,400,800 ₱ 417,000 ₱ 48,147 ₱ 14,415,370
As at May 31, 2020 and 2019, there is no indication of any impairment loss on the carrying amount of property
& equipment since its recoverable amounts approximates its carrying amount.
There were no temporarily idle property & equipment and all fully-depreciated assets are still actively in use.
Depreciation is charged against administrative costs (see Note 12).
None of the property & equipment were pledged to secure the Center’s liabilities.
10. Accounts Payable

2020 2019
Accounts payables ₱ 683,139 ₱ 444,685
Total ₱ 683,139 ₱ 444,685
Accounts payables consist of accruals for operating expenses and other unsecured and non-interest bearing
payables to suppliers and third parties, expected to be settled within 12 months.
11. Support & Donations

Supports and donations are derived from various sources of funds, love offering, gifts and donations of
various organizations and private individuals.
2020 2019
Love offerings & donations – restricted ₱ 24,000 ₱ 1,603,033
Love offerings & donations – net of restricted 18,513,987 22,485,527
Total ₱ 18,537,987 ₱ 24,088,560
Interest Income
Interest income consists of interest earned from bank deposits net of 20% final tax, to wit:
2020 2019
Interest income ‒ net of final tax ₱ 2,803 ₱ 2,509
Total ₱ 2,803 ₱ 2,509
12. Expenses
Program Costs
This consists of developmental and institutional program costs incurred by the organization. Developmental
costs includes all costs incurred from initiation to implementation of a project. Institutional costs includes
costs attributable to institutional infrastructures.
Note/s 2020 2019

Food & subsistence ₱ 4,436,596 ₱ 5,492,122
Salaries & employee benefits 13 4,432,647 6,526,011
Security services 1,037,621 966,640
Utilities 983,463 1,615,493
Household & kitchen supplies 649,882 581,160

Page 18
Repairs & maintenance 484,973 452,130
Priests stipend 448,221 986,640
Representation & entertainment 64,690 61,626
Postage, telephone & telegraph 50,690 63,819
Transportation & travel 36,422 52,052
Miscellaneous 581,494 186,645
Total ₱ 13,206,699 ₱ 16,984,338
Administrative Costs
Note/s 2020 2019

Salaries & employee benefits 13 ₱ 2,055,966 ₱ 2,958,122
Management, accounting & legal fees 872,836 834,592
Security services 212,525 197,987
Library, chapel & office supplies 184,799 287,936
Utilities 173,416 284,864
Postage, telephone & telegram 25,386 31,962
Taxes & licenses 16 16,600 18,449
Insurance 13,118 15,653
Depreciation 9 2,330,325 2,311,724
Total ₱ 5,926,972 ₱ 6,985,207
13. Employee Benefits

Expenses recognized for salaries & employee benefits are presented below:
2020 2019
Short-term employee benefits ₱ 7,221,004 ₱ 8,420,202
Post-employment benefits (curtailment gain) (732,391) 1,063,931
Total ₱ 6,488,613 ₱ 9,484,133
The amount of salaries & employee benefits is allocated as follows:
Note/s 2020 2019

Program costs 12 ₱ 4,432,647 ₱ 6,526,011
Administrative costs 12 2,055,966 2,958,122
Total ₱ 6,488,613 ₱ 9,484,133
Short-term Employee Benefits

The amount of short-term employee benefits are broken down as follows:
2020 2019
Salaries & wages ₱ 5,773,684 ₱ 5,685,215
Statutory contributions 479,589 553,820
Other employee benefits 967,731 2,181,167
Total ₱ 7,221,004 ₱ 8,420,202

Page 19
Post-employment Defined Benefits
The Center has a funded, non-contributory defined benefit retirement plan covering substantially all of its
regular permanent employees. The plan has been registered in accordance with the provisions of the BIR
Revenue Regulations No. 1-68 as a formal, tax-qualified retirement plan and has been confirmed by BIR Ruling
No. ERP-74-2017 on June 14, 2017.
The Center’s annual contributions to the plan consist principally of payments which covers the current service
cost for the year and the required funding relative to the guaranteed minimum benefits as applicable. The
funds are administered by a trustee bank of the Center and subject to the investment objectives and
guidelines established by the plan and the rules and regulations issued by Bangko Sentral ng Pilipinas (BSP)
covering assets under trust and fiduciary agreements.
Republic Act No. 7641, The Philippine Retirement Pay Law, requires a provision for retirement pay to qualified
private sector employees in the absence of any retirement plan in the entity. The Center did not obtain
actuarial valuation to determine the balance of retirement benefit obligation and retirement benefit expense.
The Center accumulates the annual service costs, using the formula provided by law, in the Retirement
benefit obligation account.
Explanation of Amounts Presented in the Statements of Financial Position

The reconciliation of net defined benefit liability in the statements of financial position are as follows:
2020 2019
Present value of defined benefit
obligation ₱ 3,079,478 ₱ 3,730,301
Fair value of plan assets (1,563,585) (1,227,890)
Retirement benefit obligation – net ₱ 1,515,893 ₱ 2,502,411
The movements in the present value of defined benefit obligation follows:
2020 2019
Balance at beginning of year ₱ 3,730,301 ₱ 2,668,731
Current service costs 214,666 1,061,570
Benefits paid outside the plan (14,127) –
Curtailment gain (851,362) –
Balance at end of year ₱ 3,079,478 ₱ 3,730,301
The movements in the fair value of plan assets follows:
2020 2019
Balance at beginning of year ₱ 1,227,890 ₱ 750,251
Contributions to the plan 240,000 480,000
Interest income (loss) – net 95,695 (2,361)
Balance at end of year ₱ 1,563,585 ₱ 1,227,890
The composition of plan assets follows:
2020 2019
Cash & cash equivalents ₱ 10,900 ₱ 345,774
Debt instruments – government
bonds – 684,549

Page 20
Unit investment trust funds 1,552,269 –
Others 416 197,567
Total ₱ 1,563,585 ₱ 1,227,890
Explanation of Amounts Presented in the Statements of Support, Donations, and Expenses

The components of amounts recognized in the statements of support, donations, and expenses in
respect of the retirement benefit obligation follows:
2020 2019
Current service costs ₱ 214,666 ₱ 1,061,570
Interest (income) loss on plan assets (95,695) 2,361
Curtailment gain (851,362) –
Total ₱ (732,391) ₱ 1,063,931
The Center did not recognize deferred income tax assets for the tax effects of temporary differences arising
from retirement benefit obligation because of its tax-exempt status.
14. Related Party Transactions

The Center, in the normal course of business, has entered into transactions with related parties principally
consisting of:
2020 2019
Outstanding Outstanding
Amount of Receivable Amount of Receivable
Related Party Nature Terms & Conditions Transaction (Payable) Transaction (Payable)
₱2.0-million non-
interest bearing,
unsecured loan, 5-
Isabela Cultural Long-term loan for year monthly
Corporation – building repayment term,
Affiliate improvements payable in cash ₱ (75,000) ₱ – ₱ (420,000) ₱ (75,000)
Key management Compensation –

personnel Employee benefits N/A (808,079) – (808,079) –
Loan from Isabela Cultural Corporation

In November 2014, the Center availed of a long-term ₱2.0-million loan from Isabela Cultural Corporation, a
fund distribution arm of the Philippine Province of the Society of Jesus (the Philippine Jesuit Province) that is
responsible for managing and distributing funds raised by the Philippine Jesuit Province to its intended
programs and beneficiaries. The loans are non-interest bearing, unsecured and will mature in 5 years from
the date of availment. Repayment terms are spread over the 5-year term on a monthly basis.
Since availment, the Center has accelerated repayment amounts from the intended ₱33,333 per month to
₱35,000 per month.
15. Events After the End of the Reporting Period

There were no events that require adjustments or disclosures between the date of statement of financial
position and the date of issuance of the audited financial statements.

Page 21
16. Supplemental Information Required by the BIR
Revenue Regulations No. 15–2010
Pursuant to Revenue Regulations No. 15–2010 issued by the BIR on November 25, 2010, the following
information were mandated to be included in the notes to financial statements as additional disclosure on
taxes, duties and license fees paid or accrued during the taxable year:
Taxes & Licenses
2020 2019
National taxes:
BIR annual registration fees ₱ 500 ₱ 500
Local taxes:
Municipal license 14,100 12,414
Barangay clearance 2,000 2,000
LTO registration – 2,329
Corporate community tax certificate – 706
Penalty – 500
Total ₱ 16,600 ₱ 18,449

Page 22
Schedule of Receipts and Disbursements

2020 2019
Receipts:
Love offerings and donations ₱ 18,406,975 ₱ 24,429,087
Interest income net of final tax 2,803 2,509
Total Receipts ₱ 18,409,778 ₱ 24,431,596
Disbursements:
Program costs ₱ 13,700,331 ₱ 16,267,249
Payment of (addition to) payables (238,454) 715,213
Retirement benefits paid 14,127 –
Addition to property & equipment 1,162,144 2,053,059
Payment of long term payables 75,000 420,000
Cash contribution to the retirement plan 240,000 480,000
Administrative costs:
Salaries & employee benefits 2,294,725 2,611,280
Management, accounting & legal fees 872,836 834,592
Library, chapel & office supplies 226,853 353,614
Security services 212,525 197,987
Utilities 173,416 284,864
Postage, telephone & telegram 25,386 31,962
Taxes & licenses 16,600 18,449
Insurance – 13,118
Total Disbursements ₱ 18,817,490 ₱ 24,325,305

Schedule of Receipts and Disbursements

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BLESSED PETER FABER SPIRITUALITY CENTER INC.

(A Non-Stock, Non-Profit Organization)

Blessed Peter Faber Spirituality Center Inc.

For the fiscal years ended May 31,

Blessed Peter Faber Spirituality Center Inc.

For the fiscal years ended May 31,

Blessed Peter Faber Spirituality Center Inc.

For the fiscal years ended May 31,

Cash flows from investing activities:

Cash flows from financing activities:

Blessed Peter Faber Spirituality Center Inc.

1.2 Approval on the Release of the Financial Statements

2.1 Statement of Compliance

2.2 Going Concern Assumption

2.3 Functional and Presentation Currency

3. Transition to the PFRS for SEs

Blessed Peter Faber Spirituality Center Inc.

3.1 Basis of Transition

 Total assets or total liabilities of between ₱3 Million to ₱100 Million;

3.2 Reconciliation of Equity and Total Income

4. Summary of Significant Accounting Policies

4.1 Financial Instruments

Blessed Peter Faber Spirituality Center Inc.

Offsetting Financial Instruments

4.2 Other Assets

4.3 Property and Equipment

Blessed Peter Faber Spirituality Center Inc.

Asset Estimated Useful Life

4.4 Impairment of Assets

Blessed Peter Faber Spirituality Center Inc.

a) Financial Assets Carried at Amortized Cost

a) Non-financial Assets other than Inventories

4.5 Fund Balances

Blessed Peter Faber Spirituality Center Inc.

Restricted or Designated Fund

4.6 Support and Donations Recognition

Love offerings and Donations

4.7 Cost and Expense Recognition

4.8 Employee Benefits

Blessed Peter Faber Spirituality Center Inc.

4.9 Provisions and Contingencies

4.10 Income Tax

Blessed Peter Faber Spirituality Center Inc.

4.11 Related Parties

4.12 Events After the End of Reporting Period

Blessed Peter Faber Spirituality Center Inc.

8. Other Current Assets

9. Property & Equipment

Chapel & Retreat

Blessed Peter Faber Spirituality Center Inc.

Depreciation is charged against administrative costs (see Note 12).

10. Accounts Payable

11. Support & Donations

Note/s 2020 2019

Blessed Peter Faber Spirituality Center Inc.

Note/s 2020 2019

13. Employee Benefits

The amount of salaries & employee benefits is allocated as follows:

Note/s 2020 2019

Short-term Employee Benefits

Blessed Peter Faber Spirituality Center Inc.

Explanation of Amounts Presented in the Statements of Financial Position

The movements in the present value of defined benefit obligation follows: