DEPARTMENT OF HEALTH

Consolidated Detailed Balance Sheet

As of December 31, 2009
With Comparative Figures for CY 2008

(In Thousand Pesos)

2009 2008
ASSETS
Current Assets
Cash (Note 4)
Cash-Collecting Officers P 32,881 P 69,724
Cash-Disbursing Officers 3,555 12,617
Petty Cash Fund 15,202 9,576
Payroll Fund 16,701 28,719
Cash - National Treasury, MDS 8,650 12,677
Cash in Bank - Local Currency, Current Acct. 2,234,526 2,290,145
Cash in Bank - Local Currency, Savings Account 27,201 18,394
Cash in Bank - Foreign Currency, Curent Account 60 52
Cash in Bank - Foreign Currency, Savings Account 65,492 222,671
Total Cash 2,404,268 2,664,575

Receivables (Note 5)
Accounts Receivable 724,330 512,296
Less: Allowance for Doubtful Accounts 47,201 44,947
Accounts Receivable, Net 677,129 467,349
Notes Receivables 23,612 28,263
Due from Officers & Employees 27,577 34,120
Due from National Treasury 549,844 319,236
Due from NGAs 554,062 497,336
Due from GOCCs 308,795 439,611
Due from LGUs 671,538 552,269
Due from NGOs/POs 997,791 1,167,219
Due from Central Office 15,305 17,889
Due from Regional Offices/Staff Bureaus 67,049 93,671
Due from Operating Units 39,498 42,331
Due from Other Funds 3,692 5,967
Receivables-Disallowances/Charges 138,092 137,706
Advances to Officers & Employees 17,846 32,726
Other Receivables 61,405 55,553
Total Receivables 4,153,235 3,891,246

Inventories (Note 6)
Raw Materials Inventory 166 96
Finished Goods Inventory 6,700 6,406

5
 ASSETS
Merchandise Inventory 269,177 292,424
Office Supplies Inventory P 523,279 P 441,417

6
 ASSETS

Accountable Forms Inventory P 9,082 P 10,795

Animal/Zoological Supplies Inventory 44 147
Food Supplies Inventory 5,651 8,171
Drugs and Medicines Inventory 2,168,948 1,783,926
Medical,Dental & Lab. Supplies Inventory 746,528 734,273
Gasoline, Oil and Lubricants Inventory 4,592 1,642
Textbooks & Instructional Materials Inventory 926 1,360
Other Supplies Inventory 171,629 153,468
Spare Parts Inventory 6,048 12,331
Construction Materials Inventory 12,506 13,790
Total Inventories 3,925,276 3,460,246

Prepayments (Note 7)
Prepaid Rent 45 80
Prepaid Insurance 6,049 8,969
Deposit on Letters of Credit 82,071 78,489
Advances to Contractors 140,573 110,073
Deferred Charges 18 18
Other Prepaid Expenses 21,840 18,736
Total Prepayments 250,596 216,365

Other Current Assets (Note 8)

Guaranty Deposits 14,412 18,796
Other Current Assets 673 519
Total Other Current Assets 15,085 19,315

Total Current Assets 10,748,460 10,251,747

Investments
Investments in Securities
Investments in Stocks 320 320
Other Investments & Marketable Securities 59 59
Total Investments 379 379

Property, Plant and Equipment (Note 9)

Land 180,923 308,690
Land Improvements 149,659 169,390
Electrification, Power & Energy Structures 6,173 6,125
Office Buildings 1,375,880 1,635,274
Hospitals and Health Centers 4,076,452 5,400,532
Other Structures 139,739 193,350
Other Leasehold Improvements 1,996 1,996
Office Equipment 745,140 752,335
Furniture and Fixtures 175,329 211,741
IT Equipment and Software 585,355 545,775

7
 ASSETS
Library Books 8,769 9,437
Machineries P 87,548 P 92,553

8
 ASSETS

Communication Equipment P 117,795 P 105,220

Construction and Heavy Equipment 1,300 1,300
Firefighting Equipment & Accessories 25,609 31,794
Hospital Equipment 4,653,458 5,319,063
Medical, Dental & Laboratory Equipment 2,001,074 2,182,377
Military and Police Equipment 4 130
Sports Equipment 330 337
Technical & Scientific Equipment 918,898 893,039
Other Machineries and Equipment 409,327 416,920
Motor Vehicles 371,504 500,975
Watercrafts 43,098 29,498
Other Transportation Equipment 4 32
Other Property, Plant and Equipment 216,647 508,466
Artesian Wells, Reservoirs, Pumping Sta. & Cond. 9,820 10,518
Const. in Progress-Agency Assets 1,726,506 1,186,435
Const. in Progress - Other Public Infrastructures 5,467 52,706
Total Property, Plant & Equipment 18,033,804 20,566,008
Less: Accumulated Depreciation 5,547,095 6,644,316
Property, Plant and Equipment - Net 12,486,709 13,921,692

Other Assets (Note 10)

Work/Other Animals 1 1
Breeding Stocks 5 5
Items in Transit 865,056 683,134
Other Assets 130,236 109,845
Total Other Assets 995,298 792,985

Total Assets 24,230,846 24,966,803

LIABILITIES & EQUITY

Current Liabilities (Note 11)

Accounts Payable 4,138,332 2,424,801
Due to Officers and Employees 163,863 148,888
Due to National Treasury 9,273 9,433
Due to BIR 88,478 117,333
Due to GSIS 34,550 27,421
Due to PAG-IBIG 6,419 4,402
Due to PHILHEALTH 3,660 3,289
Due to Other NGAs 40,021 49,509
Due to Other GOCCs 38,664 52,575
Due to LGUs 53,530 9,102
Due to Central Office 36,914 43,446
Due to Regional Offices/Staff Bureaus 46,640 36,434

9
 ASSETS
Due to Operating Units 3,644 13
Due to Other Funds P 8,070 P 10,395

10
 ASSETS

Guaranty Deposits Payable P 164,214 P 73,802

Performance/Bidders/Bail Bonds Payable 292,908 258,245
Tax Refunds Payable 3,700 8,054
Other Payables 1,082,310 1,068,673
Total Current Liabilities 6,215,190 4,345,815

Long - Term Liabilities (Note 12)

Loans Payable - Domestic 3 4,858
Other Long-Term Liabilities 6,237 6,237
Total Long-Term Liabilities 6,240 11,095

Deferred Credits (Note 13)

Other Deferred Credits 145,629 186,649
Total Deferred Credits 145,629 186,649

Total Liabilities 6,367,059 4,543,559

Equity (Note 14)

Government Equity, January 1 16,989,994 19,693,930
Retained Operating Surplus
Current Operations 1,362,026 1,563,172
Prior Years' Adjustments (481,608) (838,403)
Sub-total 880,418 724,769
Property, Plant and Equipment (6,625) 4,545

Government Equity, December 31 17,863,787 20,423,244

Total Liabilities and Equity P 24,230,846 P 24,966,803

See Accompanying Notes to Financial Statements

11
 DEPARTMENT OF HEALTH
Consolidated Detailed Statement of Income and Expenses
For the Year Ended December 31, 2009
With Comparative Figures for CY 2008

(In Thousand Pesos)

2009 2008
Income (Note 15)
Subsidy Income from Nat'l. Gov't. P 12,465,327 P 12,297,709
Add: Subsidy from Other National Government 40,905 271,408
Subsidy from Central Office 857,000 843,256
Subsidy from Reg'l Office/Staff Bureau 14,843 5,608
Subsidy from Operating Units 193 1,459
Subsidy from LGUs 3,211 3,495
Subsidy from Other Funds 1,413 1,221
Total 13,382,892 13,424,156
Less: Reversion of Unused Notice of Cash Allocation 195,712 195,032
Subsidy to National Government Agencies 97,970 1,169
Subsidy to Regional Office/Staff Bureaus 382,102 200,861
Subsidy to LGUs 1,107,274 549,215
Subsidy to Operating Units 75,632 19,877
Subsidy to GOCCs 72,276 18,790
Subsidy to NGOs/POs 37,453 19,835
Subsidy to Other Funds 1,753 0
Sub -Total 1,970,172 1,004,779
Subsidy Income - Net 11,412,720 12,419,377
Franchising and Licensing Fees 2 0
Registration Fees 90,589 22,433
Other Permits and Licenses 60,539 3,143
Affiliation Fees 49,476 56,652
Clearance and Certification Fees 5,162 3,895
Diploma and Graduation Fees 14 11
Library Fees 0 66
Medical, Dental & Laboratory Fees 966,401 928,018
Processing Fees 4,022 2,454
Seminar Fees 21,555 10,176
Transcript of Records Fees 51 63
Other Service Income 190,996 236,634
Fines & Penalties - Service Income 4,735 1,296
Hospital Fees 1,431,112 1,490,944
Income from Canteen Operations 18 22
Income from Dormitory Operations 393 270
Rent Income 18,027 23,083
Tuition Fees 1,245 818
Other Business Income 30,917 259,353
Fines & Penalties - Business Income P 4,260 P 1,896

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 2009 2008

Dividend Income P 194 P 127

Income from Grants and Donations 246,179 429,494
Interest Income 2,525 2,460
Miscellaneous Income 185,836 50,707
Other Fines and Penalties 2,474 3,805
Sale of Confiscated/Abandoned Goods & Properties 7 11
Gain/Loss on foreign Exchange (3,255) 16,913
Gain/Loss on Sale of Assets (4,134) 37
Sales Revenue 1,105,477 1,546,261
Less: Cost of Goods Sold 859,549 1,199,460
Net Sales Revenue 245,928 346,801
Total Income 14,967,988 16,310,959

Expenses (Note 16)

Personal Services
Salaries & Wages - Regular Pay 3,595,312 3,854,527
Salaries & Wages - Part-time 108,626 88,112
Salaries & Wages - Substitute 6 168
Salaries & Wages - Casual 38,631 36,326
Salaries & Wages - Contractual 112,396 94,200
Personnel Economic Relief Allowance 217,318 155,239
Additional Compensation 271,158 446,646
Representation Allowance 18,912 20,733
Transportation Allowance 14,671 16,224
Clothing/Uniform Allowance 82,393 104,358
Subsistence, Laundry & Quarter Allowance 354,222 450,018
Productivity Incentive Allowance 47,897 53,680
Other Bonuses and Allowances 117,734 206,332
Honoraria 43,658 75,712
Hazard Pay 627,402 740,001
Longevity Pay 69,740 76,901
Overtime and Night Pay 1,713 1,571
Cash Gift 103,179 123,067
Year End Bonus 334,069 350,433
Life & Retirement Insurance Contributions 436,246 472,720
PAG-IBIG Contributions 25,477 30,716
PHILHEALTH Contributions 39,733 44,280
ECC Contributions 24,905 26,852
Pension Benefits - Civilian 4,423 0
Retirement Benefits - Civilian 3,808 5,855
Terminal Leave Benefits 90,589 105,395
Health Workers' Benefits 33,703 45,264
Other Personnel Benefits 477,887 441,947
Total Personal Services P 7,295,808 P 8,067,277

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 2009 2008

Maintenance and Other Operating Expenses

Travelling Expenses - Local P 142,192 P 172,121
Travelling Expenses - Foreign 7,546 8,323
Training Expenses 266,496 241,122
Scholarship Expenses 15,883 38,657
Office Supplies Expense 125,501 142,288
Accountable Forms Expenses 13,858 16,493
Animal/Zoological Supplies Expenses 309 391
Food Supplies Expenses 351,763 414,404
Drugs and Medicines Expenses 581,215 669,353
Medical, Dental & Lab. Supplies Expenses 1,367,532 1,381,169
Gasoline, Oil & Lubricants Expenses 40,605 72,835
Agricultural Supplies Expenses 25 12
Textbooks & Instructional Materials Expenses 8,722 502
Other Supplies Expense 223,726 193,993
Water Expenses 163,216 162,547
Electricity Expenses 404,807 478,208
Cooking Gas Expenses 17,123 23,509
Postage and Deliveries 3,273 2,896
Telephone Expenses - Landline 35,509 39,126
Telephone Expenses - Mobile 11,810 12,854
Internet Expenses 8,252 5,761
Cable, Satellite, Telegraph & Radio Expense 1,717 1,603
Membership Dues and Contributions to Org 1,746 1,768
Awards and Indemnities 206 72
Advertising Expenses 71,576 47,620
Printing and Binding Expenses 11,123 7,303
Rent Expenses 37,264 63,682
Representation Expenses 24,928 35,989
Transportation and Delivery Expenses 25,882 21,454
Storage Expenses 6 6
Subscription Expenses 1,221 1,500
Survey Expenses 249 81
Rewards and Other Claims 690 25
Legal Services 3,179 2,737
Auditing Services 4,026 6,493
Consultancy Services 65,088 35,895
Environment/Sanitary Services 9,266 8,684
General Services 127,821 139,666
Janitorial Services 156,512 189,081
Security Services 141,784 165,462
Other Professional Services 194,881 131,867
Repairs and Maintenance - Land Improvements 63 477
Repairs and Maintenance - Elect., Power & Energy 920 1,200
Repairs and Maintenance - Office Buildings 13,482 7,260

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 2009 2008
Repairs and Maintenance - Hosp & Health Centers 104,664 98,262
Repairs and Maintenance - Other Structures P 524 P 3,206

12
 2009 2008

Repairs and Maintenance - Office Equipment P 5,049 P 6,494

Repairs and Maintenance - Furniture & Fixtures 3,248 795
Repairs and Maintenance - IT Equip & Software 5,264 4,498
Repairs and Maintenance - Machineries 79 90
Repairs and Maintenance - Communication Equip 531 319
Repairs and Maintenance - Construction & Heavy Equip 0 0
Repairs and Maintenance - Firefighting Equip.
and Accessories 403 563
Repairs and Maintenance - Hospital Equipment 27,173 26,683
Repairs and Maintenance - Medical, Dental
and Laboratory Equipment 8,861 16,826
Repairs and Maintenance - Technical and
Scientific Equipment 2,305 480
Repairs and Maintenance - Other Mach. & Equip 5,236 3,952
Repairs and Maintenance - Motor Vehicles 19,445 39,719
Repairs and Maintenance - Watercrafts 326 270
Repairs and Maintenance - Other Transp. Equip. 0 5
Repairs and Maintenance - Other Property,
Plant and Equipment 4,033 5,536
Repairs and Maintenance - Artesian Wells,
Reservoirs, Pumping Stations & Conduits 463 436
Donations 185,214 242,414
Extraordinary Expenses 2,075 2,525
Miscellaneous Expenses 20,315 87,398
Taxes, Duties and Licenses 160,716 78,363
Fidelity Bond Premiums 6,494 8,160
Insurance Expenses 26,599 31,645
Bad Debts Expense 4,314 35,739
Depreciation - Land Improvements 5,360 5,506
Depreciation - Elect., Power & Energy Structures 137 69
Depreciation - Office Buildings 20,965 23,056
Depreciation - Hospitals and Health Centers 101,196 114,918
Depreciation - Other Leasehold Improvement 183 179
Depreciation - Other Structures 2,619 4,395
Depreciation - Office Equipment 24,924 24,719
Depreciation - Furniture and Fixtures 9,151 8,713
Depreciation - IT Equipment & Software 45,883 34,521
Depreciation - Library Books 220 305
Depreciation - Machineries 3,583 15,355
Depreciation - Communication Equipment 4,069 3,962
Depreciation - Construction and Heavy Equipment 0 0
Depreciation - Firefighting Equipment & Acc 2,862 2,811
Depreciation - Hospital Equipment 175,215 216,643
Depreciation - Medical, Dental & Laboratory Equip. 102,335 103,629
Depreciation - Sports Equipment 20 32

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 2009 2008
Depreciation - Technical and Scientific Equip. 23,127 19,450
Depreciation - Other Machineries & Equipment P 15,230 P 23,659

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 2009 2008
Depreciation - Motor Vehicles P 15,404 P 17,303
Depreciation - Watercrafts 1,795 1,390
Depreciation - Other Property, Plant & Equipment 7,848 14,843
Depreciation - Artesian Wells, Reservoirs, etc. 52 52
Remittance to the Nat'l Treas. From Asset Disposal 141 3
Other Maintenance & Operating Expenses 468,046 399,435
Loss on Sale of Disposed Assets 2,847 3,661
Total Maintenance & Other Operating Expenses 6,309,536 6,679,476

Financial Expenses
Bank Charges 141 376
Documentary Stamps Expenses 0 0
Interest Expenses 198 644
Other Financial Charges 8 14
Total Financial Expenses 347 1,034

Total Expenses 13,605,691 14,747,787

Excess of Income over Expenses P 1,362,297 P 1,563,172

See Accompanying Notes to Financial Statements

15
 DEPARTMENT OF HEALTH
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2009
With Comparative Figures for CY 2008

(In Thousand Pesos)

2009 2008

Cash Flow from Operating Activities:

Cash Inflows:
Receipt of Notice of Cash Allocation (NCA) P 13,424,486 P 12,837,511
Receipt of Notices of Transfer of Cash Allocations 325,339 260,974
Receipt of Cash from DOH - Central Off. 58,473 81,419
Receipt of Cash from DOH - Regional Off. 910 1,193
Receipt of Cash from Other NGAs 30,200 0
Receipt of Cash from GOCCs 20,000 7,250
Receipt of Cash from LGUs 1,327 0
Collection of Income/Revenues 2,973,274 3,121,204
Collection of Receivables 708,175 1,017,341
Collection of other receipts 94,328 259,690
Receipt of Refunds of Cash Advances & overpayments 14,029 15,810
Receipt from Sale of Goods & Other Inventories 717,058 848,636
Receipt of inter-agency cash transfers 27,044 51,614
Receipt of intr1-agency cash transfers 9,557 4,906
Cash receipt of grants and donations 241,630 326,136
Transfer of cash to Payroll Fund 233,004 221,171
Receipt of cash dividends/Interest from Bank Deposits 3,739 4,771
Receipt of refund of guaranty deposits 4,255 35,969
Receipt of funds entrusted to NGAs for specific purpose 235,831 194,308
Establishment of Petty Cash Fund 1,343 140
Receipt From Other Funds 15,907 0
Receipt of guarantee payments/endowment from PCSO 29,773 250
Receipts Held in Trust/Medicare, Prof Fees/Affi. Remu. 88,248 198,842
Receipt of Performance/Bidders Bond 170,919 124,247
Unreleased Checks 16 4,383
Cancellation of Stale Checks 5,142 173,269
Receipt of other payables - trust 122,407 38,188
Receipt of patients' deposit 15,784 11,037
Others 107 40
Adjustments 14,472 47,734
Total Cash Inflows 19,586,777 19,888,033

Cash Outflows:
Cash Payment of Operating Expenses 8,863,978 9,502,425
Cash Payment of Payables Incurred in Operations P 2,349,754 P 2,648,706

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 2009 2008
Cash Purchase of Inventories P 1,435,019 P 1,641,347
Cash Payment for PriorYears Accounts Payables 159,211 145,594
Cash Payment of Prepayments 29,068 36,280
Cash Payment of guaranty deposit 40,783 19,649
Granting of Cash Advances/Petty Cash Fund 401,551 433,145
Remittance of With. Taxes except thru TRA 223,319 252,272
Remittance of With. Taxes thru TRA 5,479 1,372
Remittance of GSIS/PAG-IBIG/PHILHEALTH Payables 1,182,842 1,296,160
Remittance of Income/Revenues to BTR 491,484 501,094
Remittance of Other Payables 131,488 119,723
Remittance of Due to DOH Central Office 1,305 619
Refund of Performance/Bidders/Bail Bonds Payable 218,735 115,618
Refund of Cash Advance 508 331
Payment of Medicare Sharing/Affiliation of Employees 32,385 28,075
Refund of income fromGrants & Donation 874 11,595
Payment of Other Payables 110,258 124,820
Payment of retirement /terminal Leave 47,123 47,197
Payment of honorarium 2,428 1,158
Replacement of unreleased/stale/cancelled checks 878 54
Payment of Due to GOCCs 3,307 0
Payment of Due to NGAs 155 0
Payment from funds entrusted to NGAs for specific purpose 144,310 186,880
Transfer of NTCA to CHDs & Hospitals/OUs 46,382 0
Granting of Subsidies 153,849 68,838
Release of Funds as inter-agency Cash Transfers 155,236 509,468
Release of Funds as intra-agency Cash Transfers 1,026,209 752,726
Reversion of Unused NCA 801,119 331,203
Fund transfer to other funds/LGUs 277,251 33,348
Deposit of Collections 2,996 2,800
Unliquidated cash advances 1,331 143
Return of unused/unexpended balance 46 254
Refund of tax/other payables 11,378 4,999
Refund of payment to patients 8,038 4,596
Reversion of accounts Payable 570 0
Refund of guaranty deposits payable 1,235 0
Adjustments 5,931 33,184
Others 546 1,772
Total Cash Outflows 18,368,359 18,857,445

Cash Provided by Operating Activities 1,218,418 1,030,588

Cash Flow from Investing Activities:

Cash Inflows:
Proceeds from sale of property 8 10,719
Proceeds from sale of unserviceable property 281 0
Total Cash Inflows P 289 P 10,719

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 2009 2008

Cash Outflows:
Cash purchase of Property, Plant & Equipment P 598,935 P 476,461
Payment of Progress Billings of Construction 234,714 192,466
Payment of advances to contractors 19,850 15,848
Payment of refund of guaranty deposits 2,845 1,785
Remittance to National Treasury 0 0
Other Investments 9,395 345
Total Cash Outflows 865,739 686,905

Cash Provided by Investing Activities P (865,450) P (676,186)

Cash Flow from Financing Activities

Cash Inflows
Cash Received from domestic loan 2,678 0
Total Cash Inflows 2,678 0

Cash Outflows:
Payment of domestic loan 5,056 5,944
Total Cash Outflows 5,056 5,944

Cash Provided by Financing Activities (2,378) (5,944)

Total Cash Provided by Operating, Investing and

Financing Activities 350,590 348,458

Add: Cash Balance, January 1 2,053,678 2,316,117

Cash Balance, December 31 P 2,404,268 P 2,664,575

16