(c) The applicant must show, in a duly certified financial statement that at least sixty (60) percent of its funds are disbursed for direct social work services; (d) The applicant keeps a social work record of all cases and welfare activities handled by it; and (e) The applicant has paid the authorized fees. (3) A certificate of registration may be revoked if, after due investigation, the Department finds that the social welfare agency has failed to perform its function or has violated existing laws, rule and regulations. SEC. 17. Child Welfare Agency. - (1) No person, natural or juridical, shall establish any child welfare agency without first securing a license from the Department. Such license shall not be transferable and shall be used only to the person or institution to which it was issued at the place stated therein. No license shall be granted unless the purpose or function of the agency is clearly defined and stated in writing. Such definition shall include the geographical area to be served, the children to be accepted for care, and the services to be provided. If the applicant is a juridical person, it must be registered in accordance with Philippine laws. (2) The operations of all registered and licensed child welfare agencies shall be supervised and coordinated by the Department; (3) The Department may, after notice and hearing, suspend or revoke the license of a child welfare agency on any of the following grounds: (a) That the agency is being used for immoral purposes; (b) That the agency is insolvent or is not in financial position to support and maintain the children therein or to perform the functions for which it was granted; (c) That the children therein are being neglected maltreated or are undernourished; (d) That the place is unsanitary as to make it fit for children; (e) That said agency is located in a place or community where children should not be, or is physically dangerous to children or would unduly expose children to crime, vice, immorality, corruption or severe cruelty; and (f) That said agency has by any act or omission shown its incompetence or unworthiness to continue acting as a child welfare agency. During the period of suspension, the agency concerned shall not accept or admit any additional children. In any case, the Department shall make such order as to the custody of the children under the care of such agency as the circumstances may warrant. The suspension may last for as long as the agency has not complied with the order of the Department to remove or remedy the condition which has given rise to the suspension. The aggrieved agency may appeal the suspension or revocation in a proper court action. In such case, the court shall within fifteen (15) days from the 151

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