Neighborhood Chest, a charitable organization in Davao City, has a standing agreement with Encino Bank. The agreement allows Neighborhood Chest to overdraw its cash balance at the bank when donations are running low. In the past, Neighborhood Chest managed funds wisely and rarely used this privilege. Greg Alas has recently become the president of Neighborhood Chest. To expand operations, Alas is acquiring office equipment and spending large amounts for fundraising. During his presidency, Neighborhood Chest has maintained a negative bank balance of approximately P1,000.

Required:

What is the ethical issue in this situation? State why you approve or disapprove of Alas'management of Neighborhood Chest funds.