Tuesday, November 13, 2007 Council to assess foundation on fiesta By Lizanilla J. Amarga
THE private entity Promote CDO Foundation, Inc. may have handled the Kagay-an Festival 2007 for the first time and reported around P1.82 million profit, but this is not enough cause to "clap our hands" just yet.
Administration City Councilor President Elipe said this during their regular City Council session Monday when City Councilor Alden Bacal, his colleague in administration, issued a special report on this matter.
A post-evaluation conference is now set on November 20, 2007. It will determine whether the Promote CDO Foundation, Inc. will be handling the Kagay-an Festival next year.
Bacal, head of the committee on tourism, reported Monday how there was around P973,147 or almost P1 million excess income obtained by Promote CDO when it handled the Kagay-an Festival last August.
This as contained in a memorandum signed by Kagay-an Festival 2007 Finance Committee chairperson Jasmin Agbon for the Board of Directors of the Promote CDO Foundation, Inc. through president Rodolfo Meñes and Kagay-an Festival 2007 chairperson Ruben Vegafria.
Bacal quoted Agbon's memorandum in saying that the financial report on the Kagay-an Festival 2007 was audited by BDO Alba Romeo & Co. CPAs.
He pointed out how Abgon's financial report shows that, as of October 16, 2007, there is an excess of receipts over disbursements of P973,147.
Bacal said there is a standing memorandum of agreement between the Promote CDO Foundation, Inc. and City Government of Cagayan de Oro.
He said this memorandum states that 30 percent or P291,944.10 of this P973,147 "will be the share of the City Government, which amount will be used for activities and projects related to the further promotions of the city and its environs."
"The balance of P681,202.90 is considered realized profit for Promote CDO," he said quoting Agbon's letter reads.
Bacal reported how Accounts Receivable amounting to P847,600 is expected to be collected within the year and that once this is realized, Promote CDO can make a supplemental report and fund release to the City Government by year-end on the 70-30 sharing arrangement.
"Based on the foregoing, total expected profit from this event is estimated at P1,820,747 of which P1,274,522.90 will be retained by Promote CDO and P546,224 will be the City's 30 percent share," he said quoting Agbon's letter.
Bacal also touched on the Schedule of Sponsorship for the period of March 28 to October 16, 2007.
It contained how Smart Communications, Inc. donated P2.5 million and Oro Graphics/Samsung with P200,000.
Those companies, which donated P100,000 each include Ayala Land with P100,000, Cepalco, Nestle Philippines, Pepsi Cola, and STEAG State Power.
Those sponsors who gave P50,000 are Coca-Cola Bottlers Phils., Inc., Gaisano City, Hapee Toothpaste-Lamoyan, Jetti, Philcom, Pueblo de Oro, San Miguel Corp., SM Prime Holding, UKC Builders.
The P10,000 sponsors include Bank of Commerce, Philippine Sinter Corp., Phividec Industrial Authority and Sun.Star Cagayan de Oro.
Bacal said this came to a total of P3.69 million, thus Promote CDO Inc. was actually doing well as it is "gaining and not losing" despite how their financial report is still incomplete.
City Councilors Ian Mark Nacaya, Elipe, and Ian Acenas congratulated Promote CDO Foundation saying they too handled city fiesta activities in the past but were never able to generate huge funds from sponsors.
But Elipe pointed out that Smart's P2.5 million already included the expenses of the company's own fiesta-promotional activities and that Promote CDO Foundation, Inc. was still soliciting funds using the name of the City Government of Cagayan de Oro.
He said they were never able to gather so much funds because the "sources of funds are through solicitations."
"And Mayor Vicente Emano was very conscious on how this income from the solicitations be used which is that there should be no extravagant expenses," he added.
Elipe said there is still not enough grounds to sing praises yet for Promote CDO Foundation, Inc. until after the post-evaluation and a complete financial report including the breakdown of their expenses.
"We should not clap our hands just yet," he said.
Acenas, for his part, said he is glad with the financial report but that these collectibles must be really collected.
He said there will be an expectation by next year that Promote CDO will be able to gather more funds for the fiesta activities. "And a merrier fiesta next year," he said.
Nevertheless, Acenas asked on how this "sharing scheme" will be facilitated to the City Government of Cagayan de Oro. "Will this be in the form of a trust fund?" he asked.
A post-evaluation of Promote CDO Foundation, Inc.'s handling of the fiesta activities this year is slated next week on November 20, 2007 at 10 a.m. at the City Council Session Hall.
