NOTES TO FINANCIAL STATEMENTS

Note 1 - Agency Profile

By the power of the Maura Law in 1893, Iloilo became a province and its capital became a
city. However, the civil government was formally established on April 1, 1901, when the
Philippine Commission headed by William H. Taft went to Iloilo to inaugurate the civil
government.

Pursuant to RA No. 7160, the Province like other LGU’s was given more power, authority,
responsibilities and resources to enable it to attain full development as a self-reliant
community and as an effective partner in the attainment of national goals.

Inclusions in the consolidated financial statements are the transaction of the four funds-
General Fund, Special Education Fund, Trust Fund and Philippine Rural Development
Project Fund.

The Philippine Rural Development Project (PRDP) Fund was created pursuant to the
Memorandum of Agreement between the Department of Agriculture and the Iloilo Provincial
Government. The agreement provides for a separate set of books. For consolidation
purposes – PRDP is included in the Trust Fund.

Note 2 - Basis of Financial Statements Presentation

The financial statements herein are being prepared in accordance with the Philippine Public
Sector Accounting Standards (PPSAS).

The monetary denomination used is the Philippine peso.

Note 3 - Summary of Significant Accounting Policies

Revenue recognition – Share from Internal Revenue Collections and Real Property Tax –
Basic provincial share on collections by municipalities are booked using the accrual method.

Other income receipts are recorded using the cash basis.

Recognition and depreciation/amortization of tangible and intangible assets

Property, plant and equipment are stated net of accumulated depreciation.

The straight-line method of depreciation is followed. Assets subject to depreciation are being
depreciated on the month following the purchased date.

10
Breakdown/Composition of, and explanatory notes on, major accounts

Note 4 - Cash and Cash Equivalents

This account is broken down as follows:

Account Total General Fund SEF Trust Fund

Cash on Hand
Cash on Local Treasury 18,368,580.72 12,257,395,13 5,430,693.44 680,492.15
Petty Cash 16,761.54 16,761.54 - -
Cash in Bank – Local
Currency
CIB - LCCA 2,422,678,700.88 1,141,452,174.39 275,259,829.72 1,005,966,696.77
CIB - LCSA 370,701.10 370,701.10 - -
Investment in Time
Deposits
CIB-LCTD 1,888,162,732.49 1,726,245,857.16 - 161,916,875.33
Total Cash and Cash
4,329,597,476.73 2,880,342,889.32 280,690,523.16 1,168,564,064.25
Equivalents

The Iloilo Provincial Government maintains current accounts and time deposit accounts with
the Land Bank of the Philippines, the Philippine Veterans’ Bank and the Development Bank
of the Philippines

Note 5 - Investments

The account is composed of the following:

Account Total General Fund SEF Trust Fund

Financial Assets – Held to
Maturity
Investments in T-Bills – Local 26,818.22 26,818.22 - -
Investments in Bonds – Local 29,101.36 - - 29,101.36
Financial Assets – Others
Guaranty Deposits 1,497,155.76 1,444,505.76 - 52,650.00
Other Investments 1,535,000.00 - - 1,535,000.00
Total Investments 3,088,075.34 1,471,323.98 - 1,616,751.36

The balance of Investment in Bonds under the Trust Fund amounting to P29,101.36 is the
unreconciled beginning balance since 2003.

Note 6 - Receivables

The account is composed of the following:

Account Total General Fund SEF Trust Fund

Loans and Receivables
Accounts
Account Receivables 35,818.00 35,818.00 - -
Real Property Tax Receivable 23,707,276.80 23,707,276.80 - -
Special Education Tax
Receivable 37,623,975.13 37,623,975.13 -
Loans Receivable – Others 43,537,934.22 43,537,934.22 - -
Inter-Agency Receivables

11
 Account Total General Fund SEF Trust Fund
Due from NGAs 27,174,477.31 8,960,715.67 18,213,761.64 -
Due from GOCCs 4,762,523.40 4,762,523.40 - -
Due from LGUs 287,396,384.18 203,725,580.33 82,833,960.43 836,843.42
Intra-Agency Receivables
Due from Other Funds 330,747,029.59 243,866,517.07 3,214,022.64 83,666,489.88
Due from LEEs 406,332,530.85 406,332,530.85 - -
Advances
Advances for Operating
Expenses 985,144.79 985,144.79 - -
Advances to Special Disbursing
Officer 4,428,348.19 4,428,348.19 - -
Advances for Officers and
Employees 917,030.40 917,030.40 - -
Other Receivables
Receivables-
Disallowances/Charges 134,913,337.73 134,911,638.30 - 1,699.43
Due from Officers and
Employees 17,732,339.53 1,745,266.43 - 15,987,073.10
Due from NGOs/POs 2,181,930.00 400,000.00 1,781,930.00
Other Receivables 7,641,571.24 7,026,833.22 85,668.83 529,069.19
Total Receivables 1,330,117,651.36 1,085,343,157.67 141,971,388.67 102,803,105.02

Loans extended to cooperatives are recorded using the account “Loans Receivable-Others”.
Collections of payments from loans extended to cooperatives are recorded liabilities within
the General Fund’s “Other Payables Account.”

The Real Property Tax-Basic (Provincial Share for General Fund and SEF based on the
Summary of Collections submitted by the different municipalities but not yet
remitted/liquidated to the provincial treasury) are booked under the Real Property Tax
Receivable Account at year-end.

The Advances to Special Disbursing Officers Account includes P3,500,000.00 cash advance
for confidential fund.

Starting January 1, 2014, district hospitals are being classified as economic enterprises. The
extent of subsidies is limited to MOOE requirements. This is in compliance to LBC 100 and
LBC 100-A. The amount released is recorded as “Due from Local Economic Enterprise”
while the district hospital recognizes a liability for the amount received.

Note 7 - Inventories

This account is composed of the following:

Account Total General Fund SEF Trust Fund

Inventory Held for
Distribution
Food Supplies 990,000.00 990,000.00
Agricultural Produce 55,150.00 55,150.00 - -
Textbooks and Inst. Materials 205,996.00 - 205,996.00 -
Property and Equipment 4,299,631.48 4,299,631.48 - -
Other Supplies 213,037.00 213,037.00 - -
Inventory Held for
Consumption
Office Supplies Inventory 33,121,828.72 33,015,888.72 105,940.00 -

12
 Account Total General Fund SEF Trust Fund
Accountable Forms, Plates and
Stickers 793,182.10 793,182.10 - -
Animal/Zoological Supplies 3,880,081.38 3,880,081.38 - -
Food Supplies 31,900.00 31,900.00 - -
Drugs and Medicines 99,301,318.26 99,301,318.26 - -
Med., Dental and Lab. Supplies 51,264,217.56 49,660,787.56 - 1,603,430.00
Fuel, Oil and Lubricants 98,240,217.78 91,388,556.31 - 6,851,661.47
Agricultural and Marine
Supplies 24,266,559.55 13,703,863.75 - 10,562,695.80
Textbooks and Other
Instructional Materials 39,218.36 39,218.36 - -
Military, Police and Traffic 303,015.60 303,015.60 - -
Construction Materials 819,679.55 819,679.55 - -
Other Supplies and Materials
Inventory 45,422,746.68 45,422,746.68 - -
Total Inventories 363,247,780.02 343,918,056.75 311,936.00 19,017,787.27

The amount appearing in the Fuel, Oil and Lubricants Inventory includes purchases of fuels
and lubricants to be used in the construction of provincial government’s projects and
inventories for each office for their motor fuel consumptions. Liquidations are submitted
once the projects are completed. Each department/office liquidates their inventories when
used.

Note 8 - Prepayments and Deferred Charges

This account consists of the following:

Account Total General Fund SEF Trust Fund

Prepayments
Advances to Contractors 130,252,767.54 15,014,262.09 - 115,238,505.45
Deferred Charges
Discount on Advance
Payments - - - -
Total Prepayments &
130,252,767.54 15,014,262.09 - 115,238,505.45
Deferred Charges

Note 9 - Non-Current Assets

This account consists of the following:

Account Total General Fund SEF Trust Fund

Non-Current Assets
Investments
Guarantee Deposits 1,778.10 1,778.10
Property, Plant and Equipment
Land
Land 63,999,586.47 63,999,586.47 - -
Land Improvements
Land Improvements, Aquaculture
Structures 5,045,625.91 5,045,625.91 - -
Other Improvements 32,739,692.36 32,739,692.36 - -
Infrastructure Assets
Road Networks 1,290,554,952.01 1,290,554,952.01 - -
Flood Control Systems 976,635.27 976,635.27 - -

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 Account Total General Fund SEF Trust Fund
Water Supply Systems 38,622,095.24 38,622,095.24 - -
Power Supply Systems 40,446,922.12 40,446,922.12 - -
Other Infrastructure Assets 12,285,861.54 12,285,861.54 - -
Building and Other Structures
Building 642,741,271.10 642,741,271.10 - -
School Buildings 2,671,680.69 1,483,963.42 1,232,717.27 -
Hospital and Health Centers 322,028,639.68 322,028,639.68 - -
Markets 94,150.00 94,150.00 - -
Other Structures 48,141,755.94 44,930,886.83 3,210,869.11 -
Machinery and Equipment
Office Equipment 39,908,320.75 38,558,372.25 1,349,948.50 -
Information and Communication
Technology Equipment 40,124,153.02 39,978,636.07 145,516.95 -
Agricultural and Forestry Equipment 17,855,650.50 17,827,300.50 - 28,350.00
Marine and Fishery Equipment 80,490.74 80,490.74 - -
Communication Equipment 12,682,008.53 12,645,297.74 36,710.79 -
Construction and Heavy Equipment 147,812,158.73 147,812,158.73 - -
Disaster Response and Rescue
Equipment 3,996,988.56 3,996,988.56 - -
Military, Police and Security
Equipment 371,370.03 371,370.03 - -
Medical Equipment 124,915,488.75 124,915,488.75 - -
Sports Equipment 1,139,160.90 885,721.70 253,439.20 -
Technical and Scientific Equipment 7,947,372.67 7,938,117.72 9,254.95 -
Other Machinery and Equipment 147,123,179.82 146,261,028.19 809,156.13 52,995.50
Transportation Equipment
Motor Vehicles 60,426,012.60 60,426,012.60 - -
Watercrafts 3,926,553.45 3,926,553.45 - -
Other Transportation Equipment 32,003.35 32,003.35 - -
Furniture, Fixtures and Books
Furniture and Fixtures 33,634,781.48 33,456,646.73 178,134.75 -
Books 487,064.15 487,064.15 - -
Construction in Progress
Infrastructure Assets 391,816,856.75 179,147,030.65 1,823,387.20 210,846,438.90
Buildings and Other Structures 348,088,312.35 307,503,057.05 - 40,585,255.30
Other Property, Plant and
Equipment
Other Property, Plant and Equipment 910,721.57 910,721.57 - -
Total Property, Plant and
3,883,627,517.03 3,623,065,342.48 9,049,134.85 251,513,039.70
Equipment
Biological Assets
Bearer Biological Assets
Breeding Stocks 5,182,939.00 5,182,939.00 - -
Total Biological Assets 5,182,939.00 5,182,939.00 - -
Intangible Assets
Computer Software 287,829.75 287,829.75 - -
Total Non-Current Assets 3,889,100,063.88 3,628,537,889.33 9,049,134.85 251,513,039.70

PPE accounts are net of accumulated depreciation except for Construction in Progress.

There is an on-going reconciliation of PPE accounts between the records of the Accounting
Office with the records maintained by the General Services Office.

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Note 10 - Current Liabilities

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Financial Liabilities
Payables
Accounts Payable 267,739,280.90 267,314,923.16 370,924.00 53,433.74
Due to Officers and Employees 36,973,829.23 36,868,870.10 - 104,959.13
Total Payables 304,713,110.13 304,183,793.26 370,924.00 158,392.87
Bills/Bonds/Loans Payables
Loans Payable - Domestic 48,749,135.26 48,749,135.26 - -
Total Bills/Bonds/Loans
Payable 48,749,135.26 48,749,135.26 - -
Total Financial Liabilities 353,462,245.39 352,932,928.52 370,924.00 158,392.87
Inter-Agency Payables
Due to BIR 27,475,459.51 20,573,580.83 13,396.04 6,888,482.64
Due to GSIS 14,528,889.25 14,527,214.48 1,674.77 -
Due to Pagibig 2,656,124.84 2,654,116.28 2,008.56 -
Due to Philhealth 1,264,068.89 1,227,286.95 950.00 35,831.94
Due to NGAs 984,048,602.30 4,397,783.43 1,707,500.00 977,943,318.87
Due to GOCCs 57,027.24 - - 57,027.24
Due to LGUs 72,488,409.41 53,391,167.51 704,522.00 18,392,719.90
Total Inter-Agency Payables 1,102,518,581.44 96,771,149.48 2,430,051.37 1,003,317,380.59
Intra-Agency Payables
Due to Other Funds 682,585,595.67 467,581,984.68 788,286.95 214,215,324.04
Due to LEEs 76,957,767.72 54,066,548.13 - 22,891,219.59
Total Intra-Agency Payables 759,543,363.39 521,648,532.81 788,286.95 237,106,543.63
Trust Liabilities
Trust Liabilities 154,375.15 - - 154,375.15
Trust Liabilities-DRRM 318,923,874.24 - - 318,923,874.24
Guaranty/Security Deposits
Payable 67,947,170.52 18,492,130.93 37,493.45 49,417,546.14
Total Trust Liabilities 387,025,419.91 18,492,130.93 37,493.45 368,495,795.53
Other Deferred Credits 2,981,281.32 - - 2,981,281.32
Other Payables 87,202,387.19 67,478,775.87 351,223.51 19,372,387.81
Total Current Liabilities 2,692,733,278.64 1,057,323,517.61 3,977,979.28 1,631,431,781.75

Accounts Payable (20101010) is used to record liability to supplier/creditor for transactions

arising from trade or business.

Due to Officers and Employees (20101020), included in this account are indebtedness to
officers and employees of the Provincial Government such as unclaimed travelling
allowances, salaries, allowances (PERA and hazard pay), overtime pay and
reimbursements as of December 31, 2017.

Fund received by the Provincial Government intended for a specific purpose are booked
under the 20201050 account in the Trust Fund.

The total undistributed Real Property Tax (RPT) collected by the Provincial Treasurer was
initially booked under Due to LGU’s (20201070) account.

Due to Economic Enterprises (20301030), included in this account are funds transferred to
the district hospitals which remain unclaimed as of December 31, 2017.

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The amount appearing in Trust Liability-DRRM represents cumulative amount of unobligated
balance of calamity fund from General Fund and donations received starting CY 2012.

Note 11 - Non-Current Liabilities

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Non-Current Liabilities
Financial Liabilities
Bills/Bonds/Loans Payable
Loans Payables – Domestic 198,846,954.45 198,846,954.45 - -
Total Financial Liabilities 198,846,954.45 198,846954.45
Total Non-Current Liabilities 198,846,954.45 198,846,954.45 - -

Note 12 - Long Term Debt

As of December 31, 2017, the Iloilo Provincial Government has an outstanding loan from the
Land Bank of the Philippines in the amount of P198,846,954.45 broken down, as follows:

Bank Purpose Rates Due Date Balance

LBP Hospital Enhancement 5.50% 193,332,493.89
LBP Capitol Building 8.00% 2/16/2019 5,514,460.56
TOTAL 198,846,954.45

Note 13–Tax Revenue

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Tax Revenue - Individual and
Corporation
Professional Tax 578,412.40 578,412.40 - -
Tax Revenue – Property
Real Property Tax- Basic 72,834,180.47 72,834,180.47 - -
Discount on Real Property Tax- (563,321.66) (563,321.66) - -
Basic
Special Education Tax 101,058,979.73 - 101,058,979.73 -
Discount on Special Education Tax (2,592,317.00) - (2,592,317.00) -
Real Property Transfer Tax 28,812,326.05 28,812,326.05 - -
Tax Revenue - Goods and Services
Business Tax 68,415.67 68,415.67
Tax on Sand, Gravel and Other 2,817,319.75 2,817,319.75 - -
Quarry Products
Tax on Delivery Trucks and Vans 7,357,118.81 7,357,118.81 - -
Amusement Tax 513,890.46 513,890.46 - -
Franchise Tax 4,388,967.96 4,388,967.96 - -
Tax Revenue - Fines and Penalties
Tax Revenue - Fines and Penalties
30,047,634.06 11,308,277.86 18,739,356.20
- Property Taxes -

16
 Account Total General Fund SEF Trust Fund
Tax Revenue - Fines and Penalties
1,220,134.73 1,220,134.73
- Other Taxes - -
Total Tax Revenue 246,541,741.43 129,335,722.50 117,206,018.93 -

Note 14 – Service and Business Income

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Service Income
Clearance and Certification Fees 4,725,717.10 4,725,717.10 - -
Inspection Fees 347,145.00 347,145.00 - -
Verification and Authentication Fees 630.00 630.00 - -
Occupation Fees 143,995.47 143,995.47 - -
Fines and Penalties - Service Income 223.00 223.00 - -
Other Service Income 1,482,947.30 1,482,947.30 - -
Business Income
Rent Income 3,997,309.13 3,997,309.13 - -
Parking Fees 2,040.00 2,040.00 - -
Sales Revenue 4,627,963.82 4,627,963.82 - -
Hospital Fees 455,212,946.46 455,212,946.46 - -
Interest Income 16,913,449.27 16,515,768.71 397,680.56 -
Fines and Penalties - Business 1,266,268.21 1,266,268.21 - -
Income
Other Business Income 178,658,781.69 178,658,781.69 - -
Total Service and Business Income 667,379,416.45 666,981,735.89 397,680.56 -

Note 15 – Share, Grants and Donation

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Share
Share from PAGCOR
Share from PCSO
Grants and Donations
Grants and Donations in Cash
Grants and Donations in Kind
Grants from Concessionary Loans
Total Shares, Grants and Donations
- - - -
- - - -
- - - -
37,733,127.17 37,733,127.17 - -
- - - -
37,733,127.17 37,733,127.17 -

17
Note 16– Gains

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Gains
Gain on Initial Recognition of Biological Assets 751,740.00 751,740.00 - -
Total Gains 751,740.00 751,740.00 - -

Note 17 – Personnel Services

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Salaries and Wages
Salaries and Wages – Regular 530,243,189.47 530,243,189.47 - -
Salaries and Wages - 8,531,351.12 8,531,351.12 - -
Casual/Contractual
Other Compensation
Personal Economic Relief Allowance 50,525,142.84 50,525,142.84 - -
(PERA)
Representation Allowance (RA) 6,117,058.80 6,117,058.80 - -
Transportation Allowance (TA) 5,674,750.00 5,674,750.00 - -
Clothing/Uniform Allowance 10,591,150.00 10,591,150.00 - -
Subsistence Allowance 11,195,010.03 11,195,010.03 - -
Laundry Allowance 1,822,566.77 1,822,566.77 - -
Honoraria 720,747.20 720,747.20 - -
Hazard Pay 50,842,936.60 50,842,936.60 - -
Overtime and Night Pay 16,414,542.90 16,414,542.90 - -
Year End Bonus 46,560,412.63 46,560,412.63 - -
Cash Gift 10,534,481.00 10,534,481.00 - -
Other Bonuses and Allowances 42,680,339.52 42,680,339.52 - -
Personnel Benefits Contributions
Retirement and Life Insurance Premiums 64,387,339.90 64,387,339.90 - -
Pag-IBIG Contributions 2,531,575.00 2,531,575.00 - -
PhilHealth Contributions 5,899,162.50 5,899,162.50 - -
Employees Compensation Insurance 2,539,811.95 2,539,811.95 - -
Premiums
Other Personnel Benefits
Terminal Leave Benefits 20,022,239.42 20,022,239.42 - -
Other Personnel Benefits 30,388,872.95 30,388,872.95 - -
Total Personnel Services 918,222,680.60 918,222,680.60 - -

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Note 18 – Maintenance and Other Operating Expenses

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Traveling Expenses
Traveling Expenses – Local 26,884,805.31 26,884,805.31 - -
Traveling Expenses – Foreign 700,965.45- 700,965.45- - -
Training and Scholarship Expenses
Training Expenses 12,369,327.92 12,369,327.92 - -
Scholarship Grants/Expenses 9,449,059.06 9,449,059.06 - -
Supplies and Material Expenses
Office Supplies Expenses 12,119,391.19 12,119,391.19 - -
Accountable Forms Expenses 4,046,071.79 4,046,071.79 - -
Animal/Zoological Supplies Expenses 2,782,964.05 2,782,964.05 - -
Food Supplies Expenses 42,371,062.01 42,371,062.01 - -
Drugs and Medicines Expenses 80,115,645.50 80,115,645.50 - -
Medical, Dental and Laboratory 56,651,373.60 56,651,373.60 - -
Supplies Expenses
Fuel, Oil and Lubricants Expenses 3,976,505.35 3,976,505.35 - -
Agricultural and Marine Supplies 132,240.00 132,240.00 - -
Expenses
Textbooks and Instructional Materials 42,580.00 42,580.00 - -
Expenses
Military, Police and Traffic Supplies
96,044.00 96,044.00 - -
Expense
Other Supplies and Materials 31,965,223.52 31,965,223.52 - -
Expenses
Utility Expenses
Water Expenses 2,062,410.86 2,062,410.86 - -
Electricity Expenses 58,636,761.68 58,636,761.68 - -
Communication Expenses
Postage and Courier Services 8,007.00 8,007.00 - -
Telephone Expenses 5,067,205.19 5,067,205.19 - -
Internet Subscription Expenses 1,760,925.03 1,760,925.03 - -
Cable, Satellite, Telegraph and Radio 41,977.54 41,977.54 - -
Expenses
Awards/Rewards and Prizes
Awards/Rewards Expenses 5,338,000.00 5,338,000.00 - -
Prizes 1,362,000.00 1,362,000.00 - -
Confidential, Intelligence and
Extraordinary Expenses
Confidential Expenses 7,500,000.00 7,500,000.00 - -
Extraordinary and Miscellaneous 1,505,755.65 1,505,755.65 - -
Expenses
Professional Services
Auditing Services 521,300.50 521,300.50 - -
Consultancy Services 1,051,136.36 1,051,136.36 - -
Other Professional Services 115,541,842.75 115,541,842.75 - -
General Services
Janitorial Services 5,874,831.71 5,874,831.71 - -
Security Services 9,417,516.30 9,417,516.30 - -
Other General Services 180,566,992.12 180,362,992.12 204,000.00 -
Repairs and Maintenance

19
 Account Total General Fund SEF Trust Fund
Repairs and Maintenance - Land
91,835.00 91,835.00 - -
Improvements
Repairs and Maintenance -
25,004,135.35 25,004,135.35 - -
Infrastructure Assets
Repairs and Maintenance - Buildings
3,444,045.82 3,444,045.82 - -
and Other Structures
Repairs and Maintenance - Machinery
5,969,288.34 5,969,288.34 - -
and Equipment
Repairs and Maintenance -
4,505,819.78 4,505,819.78
Transportation Equipment - -
Repairs and Maintenance - Furniture
and Fixtures 161,636.50 161,636.50 - -
Repairs and Maintenance - Other
Property, Plant and Equipment 276,575.10 276,575.10 - -
Taxes, Insurance Premiums and Other
Fees
Taxes, Duties and Licenses 101,899.89 101,899.89 - -
Fidelity Bond Premiums 1,408,494.75 1,408,494.75 - -
Insurance Expenses 7,089,001.66 7,089,001.66 - -
Other Maintenance and Operating
Expenses
Advertising Expenses 1,490,204.94 1,490,204.94 - -
Printing and Publication Expenses 1,219,573.75 1,219,573.75 - -
Representation Expenses 1,608,320.86 1,608,320.86 - -
Rent Expenses 12,000.00 12,000.00
Membership Dues and Contributions 482,240.00 482,240.00 - -
to Organizations
Subscription Expenses 598,031.25 598,031.25 - -
Donations 106,508,243.73 96,911,619.74 9,596,623.99 -
Other Maintenance and Operating 43,375,854.56 43,375,854.56 - -
Expenses
Total Maintenance and Other
883,307,122.72 873,506,498.73 9,800,623.99 -
Operating Expenses

Note 19 – Financial Expenses

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Financial Expenses
Interest Expenses 15,058,102.86 15,058,102.86 - -
Total Financial Expenses 15,058,102.86 15,058,102.86 - -

Note 20 – Non-Cash Expenses

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Depreciation
Depreciation - Infrastructure Assets 13,979,906.39 13,979,906.39 - -
Depreciation - Buildings and Other Structures 30,992,582.05 30,759,224.05 233,358.00 -
Depreciation - Machinery and Equipment 46,937,296.77 46,931,987.01 5,309.76 -

20
 Account Total General Fund SEF Trust Fund
Depreciation - Transportation Equipment 11,319,460.16 11,319,460.16 - -
Depreciation - Furniture, Fixtures and Books 2,353,833.79 2,353,833.79 - -
Depreciation - Other Property, Plant and 217,464.06 217,464.06 - -
Equipment
Amortization
Amortization, Intangible Assets 27,920.25 27,920.25 - -
Total Non-Cash Expenses 105,828,463.47 105,589,795.71 238,667.76 -

Note 21 – Transfers, Assistance and Subsidy From

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Assistance and Subsidy from
Subsidy from National Government - - - -
Subsidy from Local Government Units - - - -
Subsidy from Government-Owned and/or - - - -
Controlled Corporations
Subsidy from Other Funds - - - -
Subsidy from General Fund Proper/Other
36,289,305.22 36,289,305.22 - -
Special Accounts
Subsidy from Other Local Economic Enterprise - - - -
Transfers from
Transfers from General Fund of LGU - - - -
Counterpart/Equity Share
Transfers from General Fund of Unspent - - - -
DRRMF
Transfers from National Governments - - - -
Transfers from Other Local Governments - - - -
Total Transfers, Assistance and Subsidy from 36,289,305.22 36,289,305.22 - -

Note 22 – Transfers, Financial Assistance and Subsidy To

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Financial Assistance/Subsidy to
Subsidy to NGAs (12,410,079.93) (474,638.51) (11,935,441.42) -
Subsidy to Other Local Government (72,338,343.41) (49,088,854.97) (23,249,488.44) -
Units
Subsidies - Others (7,182,276.91) - (7,182,276.91) -
Transfers to
Transfers of Unspent Current Year (82,953,666.60) (82,953,666.60) - -
DRRM Funds to the Trust Funds
Transfers for Project Equity Share (60,000,000.00) (60,000,000.00) - -
/LGU Counterpart
Total Transfers, Assistance and
(234,884,336.85) (192,517,160.08) (42,367,206.77) -
Subsidy to

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Note 23–Other Non-Operating Income/Losses

This account is made up of the following:

Account Total General Fund SEF Trust Fund

Gains
Other Gains 49.73 49.73 - -
Miscellaneous Income
Miscellaneous Income 83,507,698.66 83,507,698.66 - -
Losses
Loss on Sale of PPE - - - -
Loss on Sale of Assets - - - -
Loss of Assets (105,000.00) (105,000.00) -
Net Other Non-Operating Income/(Losses) 83,402,748.39 83,402,748.39 - -

Note 24 - Local Disaster Risk Reduction Management Fund (LDRRMF)

The LDRRMF represents the amount set aside by the LGU to support its disaster risk
management activities pursuant to RA No. 10121 otherwise known as the “Philippine
Disaster Risk Reduction Management Act of 2010.” The amounts available for the quarter
ending December 31, 2016 are broken as follows:

Particulars Available Utilized Balance

Current Appropriation:
MOOE 84,846,838.60 1,893,172.00 82,953,666.60
Capital Outlay 151,359,305.40 - 151,359,305.40
Total 236,206,144.00 1,893,172.00 234,312,972.00
Continuing Appropriation:
Special Trust Fund
Donations Received from Other
Sources 5,477,576.55 993,690.00 4,483,886.55
CY 2012 39,450,207.21 5,845,565.00 33,604,642.21
CY 2013 25,336,944.81 4,542,425.25 20,794,519.56
CY 2014 50,987,902.22 50,987,902.22
CY 2015 57,393,578,85 57,393,578,85
CY 2016 68,705,678.25 68,705,678.25
CY 2017 82,953,666.60 82,953,666.60
Total 330,305,554.49 11,831,680.25 318,923,874.24

Unspent/unutilized CY 2012 balance will be transferred back to the General Fund after the
lapse of its prescription period.

Note 25 – Notes to Cash Flow Statement

a) Cash and Cash Equivalent

Cash and cash equivalents consist of cash on hand, balances with banks, and investment in
money market instruments.

Cash and cash equivalents included in the cash flow statement comprise the following

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statement of financial position amounts: (absolute amount)

PARTICULARS Total General Fund SEF Trust Fund

Cash on hand and balances
2,441,434,744.24 1,154,097,032.16 280,690,523.16 1,006,647,188.92
with banks
Cash Equivalents 1,888,162,732.46 1,726,245,857.16 - 161,916,875.30
Total Cash and Cash
4,329,597,476.73 2,880,342,889.32 280,690,523.16 1,168,564,064.25
Equivalent

b) Reconciliation of Net Cash Flows from Operating Activities to Surplus/(Deficit)

PARTICULARS Total General Fund SEF Trust Fund

Surplus/(Deficit) 1,107,286,570.16 1,042,089,369.19 65,197,200.97 -
Non-cash transactions 329,086,325.97 (265,041,307.37) (50,400,137.07) 644,527,770.41
Depreciation 105,800,543.22 105,561,875.46 238,667.76 -
Amortization 27,920.25 27,920.25 - -
Prior Year’s Adjustment (96,414.89) (96,414.89) - -
Increase (decrease) in payables 755,537,715.37 67,742,873.72 (351,485.43) (688,146,327.08)
Increase (decrease) in
provisions relating to employee (174,171.44) (174,171.44) - -
cost
Decrease (increase) in other (190,412,017.29) (170,683,090.62) (105,940.00) (19,622,986.67)
current assets
Increase in investments due to - - - -
revaluation
Decrease (increase) in (341,597,249.25) (267,420,299.85) (50,181,379.40) (23,995,570.00)
receivables
Net Cash from Operating
1,436,372,896.13 777,048,061.82 14,797,063.90 644,527,770.41
Activities

Note 26- Reconciliation - Actual Amounts in the SCBAA vs Statement of Financial

Performance
Personnel Financial
General Fund Proper Income MOOE Capital Outlay
Services Expenses
Comparison Statement of
2,321,070,252.14 675,798,794.93 962,232,593.85 36,760,996.28 247,813,114.14
Budget and Actual
Basis Differences:
Income not Considered
Budgetary Items
Non-cash Income 71,759,285.33
Gain on Sale of
751,740.00
Assets/Liquidated damages
Debt Service (Loan
Amortization, Retirement of (21,533,836.70)
Debt Instruments)
Capital Expenditures
(6,686,529.41) (186,725,369.02)

Timing Differences:
Prepayments charged to current
(315,485,974.51) (10,947,706.07)
appropriations
Unconsumed Inventory charged
(102,441,356.50)
to current appropriations

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 Personnel Financial
General Fund Proper Income MOOE Capital Outlay
Services Expenses
Consumed Inventories and
deferred charges charged to 34,210.79 281,717,280.01
prior period appropriations
Commitments (Obligated but
(18,173.82) (88,408,072.05) (169,056.72) (50,140,039.05)
not yet delivered/billed)
Per Statement of Financial
2,393,581,277.47 675,814,831.90 730,927,941.39 15,058,102.86 -
Performance

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