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CEF
Centennial Endowment Fund

 

THE ECP CENTENNIAL ENDOWMENT FUND
 
 
The Centennial Endowment Fund [CEF] was set up in 2001 as a major capital funding mechanism for self-support. This Fund, conceptualized during the meeting of the Joint Committee on the Philippine Covenant [JCPC] in March 2001 in Santiago City, was envisioned to be a joint fund-raising effort of the Episcopal Church in the USA [formerly known as “ECUSA” and now “TEC” or The Episcopal Church] and ECP to raise a target of $1,500.00, between 2001, the ECP Centennial Year, and 2007, the planned time and celebration of full fiscal autonomy. It was designed to be held in trust as an endowment, with only its interest income to be used to augment the annual budget of the ECP. 
 
The establishment of the CEF was approved by both ECUSA [now TEC] in Resolution No. B-012 of its 73rd General Convention and the ECP in Resolutions No. EC-4-01-90D and EC-4-01-90E of its Executive Council. In a subsequent action, the ECP Executive Council raised the total target from $1,500 to P200 million. This envisioned capital fund would enable the ECP to have a solid base of financial support and thus ensure long-term sustainability. It shall serve as a “perpetual legacy” and a “permanent, stable, predictable and adequate source of income that will allow the Church to accomplish its mission, innovate and grow”.
 
Following the action of its General Convention, ECUSA [now TEC] approved and released  what it referred to as a “foundational grant” in the amount of $250,000 or P12,500,000.00. The United Society for the Propagation of the Gospel [USPG] added P3,000,000.00.
 
As of 31 December 2008, total CEF amounts to P148,593,469.35, sourced out from the following:
 

 
EPISCOPAL CHURCH IN THE PHILIPPINES
Centennial Endowment Fund
Sources of Funds
As of December 31, 2008
SOURCES
Dioceses
Sched. 1
 24,457,912.69
Donation from Institutions & Organizations
Sched. 2
        265,285.00
Donation from Individuals
Sched. 3
     5,223,500.00
Other Sources
Sched. 4
 106,147,596.66
The Episcopal Church
   12,499,175.00
TOTAL
 
 148,593,469.35

 

Schedule 1. Dioceses
      Episcopal Diocese of Central Philippines
       180,592.75
      Episcopal Diocese of North Central Philippines
   3,845,125.68
      Episcopal Diocese of Southern Philippines
    3,327,973.41
      Episcopal Diocese of Northern Luzon
    4,408,244.24
      Episcopal Diocese of Santiago
    2,889,636.17
      Episcopal Diocese of Northern Philippines
    9,806,340.44
      Total
   24,457,912.69

 

 Schedule 2. Institutions/Organizations
      St. Agnes Ladies Dormitory
        100,000.00
      St. Andrew's Theological Seminary
        100,000.00
      Cathedral of St. Mary & St. John
           4,000.00
      ECP Mission Center Employees Association
         37,600.00
      ECP Pension Fund
           2,200.00
      National Office
           11,485.00
      Horeb House Incorporated
         10,000.00
      Total
        265,285.00

 

 Schedule 3. Individuals
      Mr. Celso De Los Angeles
     5,000,000.00
      Dr. Rafael Rodriguez
           5,000.00
      Ms. Leonor Sacuy-ap
           2,500.00
      Mr. Romeo W. Ma (EDSP)
           5,000.00
      Ms. Joa Ann Chapman 
         10,000.00
      Atty. Floyd Lalwet 
        180,000.00
      Mr. Marion Luckey  
         10,000.00
      Atty. D. Cruz
         10,000.00
      Mr. Wayland Cabanban
           1,000.00
      Total
     5,223,500.00

 

 4. Other sources approved by Executive Council
      25% of Investment Income 
     9,879,927.15
      25% of National Income from Rentals
   22,321,719.03
      Subsidy from ECUSA from 2002 to 2005
   49,027,333.26
      Income from Trust Funds (General Purpose)
     1,808,540.18
      SLMC Parking
     8,000,000.00
      75% of Income not disbursed (excess)
     3,327,071.31
      Reclassified Endowment Funds
     8,582,636.73
      USPG 
     3,200,369.00
      Total
 106,147,596.66

 
The CEF is invested, as follows:
 

 

 
  1.  Short-term Investments
Bank
Account No.
Rate
Maturity
Amount
 Security Bank & Trust Company 
117046
4.25%
 
   547,567.34
 Security Bank & Trust Company
116981
5.11%
09/01/09
      2,007,491.66
 Security Bank & Trust Company
017770
5.00%
03/29/09
       1,561,959.60
 Security Bank & Trust Company
017773
03/29/09
       2,012,340.59
 Security Bank & Trust Company
017771
03/29/09
       2,041,088.31
 China Bank 
123020006301
5.00%
 
         699,722.27
 Coop Bank of Mountain Province
for EDNL
9.00%
5/18/2009
       2,000,000.00
TOTAL
 
   10,870,169.77
 

  1. Dollar Treasury bonds with Agent Banks
Book rate of PhP50.00/dollar
  
  
Amount in
 Amount in 
 Bank
Account No.
Rate
Maturity
Peso @ 50/dollar
Dollar
 Bank of the Philippine Islands                  
12400132
8.30%
 01/15/14
       4,988,281.50
   99,765.63
Bank of the Philippine Islands                 
12400132
8.30%
 01/15/14
       2,490,625.00
   49,812.50
Bank of the Philippine Islands                 
12400180
8.40%
 01/15/14
       4,932,031.50
   98,640.63
 Rizal Commercial Bank Corp.   
00029
8.25%
 01/15/14
       4,975,000.00
   99,500.00
 Rizal Commercial Bank Corp.   
00307
8.25%
 01/15/14
       2,454,640.50
   49,092.81
 Metro Bank & Trust Company  
1011545
8.25%
 01/15/14
       4,875,000.00
   97,500.00
Metro Bank & Trust Company  
1015713
8.00%
 01/15/16
       2,750,000.00
   55,000.00
Metro Bank & Trust Company  
1032777
6.375%
 01/15/32
       1,479,375.00
   29,587.50
Banco De Oro
004953
8.60%
 06/15/27
       1,156,250.00
   23,125.00
Banco De Oro  
004393
8.60%
 06/15/27
       4,538,732.22
   90,774.64
 China Bank  
0084712
8.75%
 10/07/16
       4,714,375.00
   94,287.50
 China Bank 
0086385
7.00%
 11/22/10
       5,500,000.00
 110,000.00
 China Bank 
0093003
5.90%
 02/15/11
       2,650,937.50
   53,018.75
 China Bank 
0097557
6.375%
 01/15/32
       1,486,875.00
   29,737.50
 China Bank  
0097541
6.375%
 01/15/32
       3,717,187.50
       74,343.75
 China Bank
0097941
6.375%
 01/15/32
       1,940,500.00
       38,810.00
Security Bank & Trust Company
1001490
7.35%
 02/15/11
       2,538,374.00
       50,767.48
Security Bank & Trust Company
006821
6.375%
 01/15/32
       1,876,250.00
       37,525.00
Security Bank & Trust Company
006522
6.375%
 01/15/32
       2,447,375.00
       48,947.50
Security Bank & Trust Company
000812
6.80%
 02/15/13
       3,910,765.00
       78,215.30
Security Bank & Trust Company
004333
5.60%
 03/16/10
       3,020,090.00
       60,401.80
TOTAL
 
   68,442,664.72
$1,368,853.29

 























































  1.  Peso Treasury Bonds with Agent Banks
Bank
Account No.
Rate
Maturity
Amount
Bank of the Philippine Islands                 
 1351607
7.125%
08/01/12
        5,000,000.00
Rizal Commercial Bank Corp.  
 81373
11.75%
07/16/09
       5,000,000.00
Rizal Commercial Bank Corp.  
 1097312 
6.775%
08/01/12
       2,132,502.46
Metro Bank & Trust Company  
 3593209
5.75%
02/21/12
         640,819.72
Metro Bank & Trust Company  
 3598041
7.125%
08/01/12
       7,330,000.00
Metro Bank & Trust Company  
 3602361
6.875%
08/01/10
       1,900,000.00
Metro Bank & Trust Company  
 0991546
9.00%
07/31/13
     19,500,000.00
 China Bank 
 0098037
5.625%
02/21/12
       1,429,806.34
 China Bank  
 0079736
11.75%
07/19/09
       1,760,000.00
 China Bank  
 0079654
11.725%
08/12/09
       4,937,000.00
Security Bank & Trust Company
 010394
6.875%
08/01/10
       1,000,000.00
 Banco De Oro  
 391796
10.625%
09/09/10
       2,500,000.00
TOTAL
   53,130,128.52

 

 4. Other Long-term Deposit
 China Bank
 51891230006
8.250%
08/08/13
       1,250,000.00
 5. IN TRUST FUND - TEC (US$155,442.00)
       7,772,100.00
 6. Receivable from RBP
       5,000,000.00
 7. Cash in Bank
       2,128,406.34

 
On 9th September 2004, the Executive Council approved the division of the CEF among the dioceses in order to bring self-reliance down to the diocesan level. This division hopes to address the erstwhile reliance of the dioceses upon an external source of income since, over the years, while ECUSA subsidy has gradually decreased, there has been a considerable growth in the support of the dioceses from the national church. In effect, the dependence of the dioceses upon an external source has not actually substantially decreased but it was merely transferred from ECUSA to the ECP national church. By building their respective capital funds to cover their budgetary requirements, the dioceses are then expected to finally assume fiscal autonomy.
 
The division of the CEF among the dioceses provided a fresh impetus in the over-all sustainability thrust as each diocese actually exercised ownership and control over their respective shares in the CEF and has a direct interest and stake in its growth. Recording the CEF in the diocesan books has unleashed the potential of giving to such fund as it eliminated the hesitance if not indifference of the general membership in contributing to a fund whose benefit is not directly perceived to be felt, seen or enjoyed by them.
 
The division of the CEF does not mean actual disbursement of shares to the dioceses. While the dioceses have ownership over their respective shares in the CEF, the investment and administration of the whole fund remains centralized under the policy oversight and control of the Executive Council in order to ensure that the fund will not be dissipated and to maximize income from a larger principal base. The dioceses however can suggest how their shares may be invested but this needs the approval of the Council.
 
The initial division of the CEF in 2004 was made in accordance with the following formula: The amount of P49 million CEF raised as of August 31, 2004 was allocated as follows: a] an equal share of P1 million to each of the 6 dioceses; b] the remaining 43 million was divided according to Need (70% or P30.1 M) and CEF Contribution in 2004 (30% or P12.9 M).  Thus, the actual division was, as shown below:
 

 Equally
 According to Need
 Diocesan CEF
 Total
EDNP
        1,000,000.00
          6,327,685.37
    1,640,046.58
      8,967,731.95
EDCP
        1,000,000.00
          2,084,881.80
       750,301.01
      3,835,182.81
EDNCP
        1,000,000.00
          2,139,224.17
    4,379,228.57
      7,518,452.74
EDSP
        1,000,000.00
          6,072,725.06
    1,310,348.52
      8,383,073.58
EDS
        1,000,000.00
          7,165,143.23
    1,123,453.91
      9,288,597.14
EDNL
        1,000,000.00
          6,715,778.98
    3,870,380.80
    11,586,159.78
Total
        6,000,000.00
        30,505,438.60
 13,073,759.40
    49,579,198.00

 
 
For 2005 and onwards, the division was: a] according to need = 30%; b] matching challenge = 35%; and, c] reserved for other criteria = 35%. “Need” was defined as the sum of the following: 2004 ECUSA grant share; 2004 National Allocation; and, 2003 Deficit based on last Audited Financial Statement.
 
Started in 2005, the matching program was a scheme whereby CEF matched on a ratio of 1:1 the funds raised by the dioceses for the CEF which are actually remitted to the National Office. For every one peso raised by a diocese for the CEF, a similar amount from the existing CE is alloted to that diocese to form part of its total share in the CEF.
 
The division of the CEF among the dioceses, as of 31st December 2008, is as shown below.
 

 
2004 Initial
Fund
2005 to 2008
Collection
2005 to 2008
Matching
25% of
income
 
Total
EDNP
9,467,731.95
9,749,896.29
9,749,896.29
1,427,607.36
3,0395,131.89
EDS
9,788,597.14
2,850,971.17
2,850,971.17
939,293.63
16,429,833.11
EDNL
12,086,159.78
4,275,040.49
4,275,040.49
1,244,108.56
21,880,349.32
EDSP
8,883,073.58
3,282,876.21
3,282,876.21
755,873.66
16,204,699.66
EDCP
4,335,182.81
154,770.25
154,770.25
346,148.42
4,990,871.73
EDNCP
8,018,452.74
3,694,409.33
3,694,409.33
901,331.40
16,308,602.8
National Office
0.00
150,030.00
150,030.00
13,510.53
313,570.53
Sub-total
 
 
 
 
106,523,059.04

 

 
SKEP
PhP3M allocated by Executive Council per EC No.06-151-2006 (11/15/2006 meeting)
 
105,900.00
 
3,105,900.00
General Fund
 
38,964,510.31
 
GRAND T0TAL
 
 
148,593,469.35