2015 AFR National Govt Volume I

FY 2015
Annual Financial Report
National Government
Volume I
TABLE OF CONTENTS
Page
I. INTRODUCTION 1
II. FINANCIAL HIGHLIGHTS

Financial Position 6
Financial Performance 12
Cash Flows 14
Changes in Net Assets/Equity 15
Comparison of Budget and Actual Amounts 16
III. APPROPRIATIONS, ALLOTMENTS, OBLIGATIONS AND BALANCES

Appropriations 17
Allotments 23
Unreleased Appropriations 32
Obligations 38
IV. CURRENT SURPLUS OF THE NATIONAL GOVERNMENT

Unappropriated Surplus 48
Unalloted Continuing Appropriations 49
Alloted Continuing Appropriations 50
Overdraft in Allotments 50
V. FINANCIAL STATEMENTS
Statement of Financial Position - CY 2015 and CY 2014 Restated 51
Statement of Financial Performance - CY 2015 and CY 2014 Restated 52
Statement of Cash Flows - CY 2015 and CY 2014 Restated 53
Statement of Changes in Net Assets/Equity - CY 2015 and CY 2014 Restated 54
Statement of Comparison of Budget and Actual Amounts 55
Notes to Financial Statements
Financial Position and Changes in Net Assets/Equity 56
Financial Performance 133
Cash Flows 147
Comparison of Budget and Actual Amounts 152
Annex A 154
VI. NATIONAL GOVERNMENT DEBT 165
VII. SIGNIFICANT AND COMMON AUDIT OBSERVATIONS AND

RECOMMENDATIONS 176
VIII. SUMMARY OF AUDIT OPINIONS 274
IX. HIGHLIGHTS OF ACCOMPLISHMENT OF THE

TOP TEN DEPARTMENTS 388
i
ACRONYMS
ACRONYMS
ACEF Agricultural Competitiveness Enhancement Fund
ACPC Agricultural Credit Policy Council
ADB Asian Development Bank
AFP Armed Forces of the Philippines
AFR Annual Financial Report
AGPF Agricultural Guarantee Pool Fund
AITTP Agro-Industrial Technology Transfer Fund
AMCFP Agro Industry Modernization Credit Financing Program
AMLC Anti-Money Laundering Council
APT Asset Privatization Trust
ARDA Amended and Restated Definitive Agreement
ARMM Autonomous Region of Muslim Mindanao
BAC Bids and Awards Committee
BIR Bureau of Internal Revenue
BOC Bureau of Customs
BSF Bond Sinking Fund
BSP Bangko Sentral ng Pilipinas
BSU Batangas State University
BTr Bureau of the Treasury
BUB Bottoms Up Budgeting
CA Court of Appeals
CAAP Civil Aviation Authority of the Philippines
CARP Comprehensive Agrarian Reform Program
CB-BOL Central Bank Board of Liquidators
CE California Energy
CENRO Community Environment and Natural Resources Office
CHED Commission on Higher Education
CIB-FC Cash in Bank – Foreign Currency
CIB-FC - TD Cash in Bank – Foreign Currency, Time Deposit
CIIF Coconut Industry Investment Fund
CISFA Consolidated Inventory of Seized and Forfeited Assets
CO Central Office
COA Commission on Audit
CTA Court of Tax Appeal
DA Department of Agriculture
DBM Department of Budget and Management
DBP Development Bank of the Philippines
DENR Department of Environment and Natural Resources
DepEd Department of Education
DFA Department of Foreign Affairs
DFA-OSEC Department of Foreign Affairs – Office of the Secretary
DILG Department of Interior and Local Government
DND Department of National Defense
DOE Department of Energy
DOF Department of Finance
DOH Department of Health
ii
ACRONYMS
DOJ Department of Justice
DOLE Department of Labor and Employment
DOT Department of Tourism
DOTC Department of Transportation and Communications
DPWH Department of Public Works and Highways
DSWD Department of Social Welfare and Development
DTI Department of Trade and Industry
EIMPF Export Industry Modernization Program Fund
EMD Equipment Management Division
EO Executive Order
FCTD Foreign Currency Time Deposit
FOs Field Offices
FSD Foreign Swiss Deposited
FSs Financial Statements
FTD Fund Transfer Division
GAM Government Accounting Manual
GFIs Government Financial Institutions
GHI G. Holdings, Inc.
GHQ General Headquarter
GOCCs Government-Owned and/or Controlled Corporations
HIGC Home Insurance and Guaranty Corporation
HLURB Housing and Land Use Regulatory Board
HSDC Human Settlements Development Corporation
IMF International Monetary Fund
JEV Journal Entry Voucher
KALAHI CIDSS Kapit Bisig Laban sa Kahirapan – Comprehensive and
Integrated Delivery of Social Services
LBP Land Bank of the Philippines
LGUs Local Government Units
LRMC Light Rail Manila Consortium
LRT I Light Rail Transit I
LRTA Light Rail Transit Authority
LTFRB Land Transportation and Franchising Regulatory Board
LTO Land Transportation Office
MCCT Modified Conditional Cash Transfer
MDFO Municipal Development Fund Office
MDS Modified Disbursements System
MIGA Multilateral Investment Guarantee Agency
MRT3 Metro Rail Transit 3
MRTC Metro Rail Transit Corporation
MRTDC Metro Rail Transit Development Corporation
MWSS Metropolitan Waterworks and Sewerage System
NAIA Ninoy Aquino International Airport
NCDDP National Community-Driven Development Program
NDC National Development Company
NEDA National Economic Development Authority
NFA National Food Authority
iii
ACRONYMS
NG National Government
NGAs National Government Agencies
NIA National Irrigation Administration
NMIC Nonoc Mining and Industrial Corporation
NO National Office
OBSF Oil Price Stabilization Fund
OEO Other Executive Offices
OSEC Office of the Secretary
OUs Operating Units
PAGCOR Philippine Amusement and Gaming Corporation
PAMDEVCO Pamintuan Development Company
PARVI Pamplona Redwood and Veneer Corporation
PCF Petty Cash Fund
PCGG Presidential Commission on Good Government
PCIERRD Philippine Council Industry, Energy and Emerging Technology
Research and Development
PCOO Presidential Communications Operations Office
PCOs Public Calling Offices
PDAF Priority Development Assistance Fund
PENRO Provincial Environment and Natural Resources Office
PFPSI Philharbor Ferries and Port Services, Inc.
PMO Project Management Office
PNB Philippine National Bank
PNP Philippine National Police
PNRI Philippine Nuclear Research Institute
POL Petroleum, Oil and Lubricant
PPE Property, Plant, and Equipment
PPSAS Philippine Public Sector Accounting Standards
PSALM Power Sector Assets and Liabilities Management Corporation
PSB Philippine Savings Bank
PVAO Philippine Veterans Affairs Office
PVB Philippine Veterans Bank
RAD Revenue Accounting Division
RCO Revenue Collecting Officer
RO Regional Office
ROP Republic of the Philippines
ROs Regional Offices
RR Revenue Regulation
SCBAA Statement of Comparison of Budget and Actual Amounts
SCF Statement of Cash Flows
SCO Special Collecting Officer
SEI Science Education Institute
SGF Special Guaranty Fund
SL Subsidiary Ledger
SRF Special Reserved Fund
SSF Securities Stabilization Fund
iv
ACRONYMS
SUCs State Universities and Colleges
SWIP Small Water Impounding Project
TAD,SA Treasury/Agency Deposit, Special Account
TCCs Tax Credit Certificates
TD Time Deposit
TDM Tax Debit Memos
TOP Treasury of the Philippines
TRO Temporary Restraining Order
TSA Treasury Single Account
TWG Technical Working Group
UCI Unimasters Conglomeration, Inc.
UPS University of the Philippines System
WASH Water, Sanitation, and Hygiene
v
I. INTRODUCTION
INTRODUCTION
Legal Basis
The Commission on Audit (COA) is mandated under Section 4, Article IX-D of

the Philippine Constitution to submit to the President and the Congress, within the time
fixed by law, an annual report covering the financial condition and operation of the
Government, its subdivisions, agencies and instrumentalities, including government-
owned or controlled corporations and non-governmental entities subject to its audit,
and recommend measures necessary to improve their effectiveness and efficiency.
Section 41, Presidential Decree No. 1445, the Government Auditing Code of the
Philippines, provides that the Commission on Audit shall submit to the President and
the Congress the said Annual Report not later than the last day of September of each
year.
The 2015 Annual Financial Report (AFR) is prepared by the Government

Accountancy Sector pursuant to Section 12, Presidential Decree No. 1445 and COA
Resolution No. 2013-021, dated November 20, 2013, the Restructuring of the
Government Accountancy Sector of this Commission. This AFR covers the financial
condition and operation of the National Government Agencies (NGAs).
Objectives
This AFR is prepared to provide essential information on the financial position,

financial performance, changes in net assets/equity, cash flows and comparison of
budget and actual amounts of NGAs. It also provides data on appropriations,
allotments, obligations, unreleased appropriations and unobligated balances. These
information will serve as useful tools for the President, the legislators and other
oversight government agencies in making sound economic decisions as a result of the
evaluation on how government resources were allocated and utilized, formulation of
economic policies, and in aid of legislation of future budgets during deliberations on
the general appropriations bill and other related bills.
The AFR also provides the significant and common audit observations,
including the summary of audit opinions, as a result of audit conducted in each agency
and the corresponding recommendations to improve performance efficiency and
effectiveness in the delivery of services of NGAs to the general public.
1
Contents
This AFR features the second year implementation of the Philippine Public
Sector Accounting Standards (PPSAS) per COA Resolution No. 2014-003 dated
January 24, 2014 and the updates of the Philippine Government Chart of Accounts
under COA Circular 2015-007 dated October 22, 2015.
The Report is highlighted by a brief write-up on the financial position, financial

performance, changes in net assets/equity, cashflows, comparison of budget and actual
amounts, the National Government debt and presentation of the budget information on
appropriations, allotments, obligations and balances.
It also highlights the comparative condensed Statement of Financial Position

(SFPos), Statement of Financial Performance (SFPer), Statement of Changes in Net
Assets/Equity (SCNA/E), Statement of Cash Flows (SCF) and Statement of
Comparison of Budget and Actual Amounts (SCBAA) for Calendar Years 2015 and
2014, as restated.
The highlights of accomplishments of the top ten departments, as to amount of

appropriations, excluding DBM as administrator of Funds for LGUs, are featured also
for the first time in this Report.
This Report is presented in two volumes, as follows:
Volume I - Financial Highlights; Appropriations, Allotments, Obligations and

Balances; Current Surplus of the National Government;
Condensed Financial Statements; Notes to Financial Statements;
National Government Debt; Significant and Common Audit
Observations and Recommendations; Summary of Audit Opinions;
and Highlights of Accomplishments of the Top Ten Departments.
Volume II - CY 2015 Detailed FSs; Statement of Appropriations, Allotments,

Obligations and Balances (SAAOB); Statement of Current
Surplus (by department/office); supporting schedules (by
agency); and CY 2014 Restated Detailed FSs.
Methodologies
To facilitate the consolidation of FSs and reports, the COA-GAS developed the
Annual Financial Reporting System (AFRS), an on-line application tool that enables
the NGAs to submit their FSs and other reports required by COA. This system was
continuously enhanced.
2
Some Trial Balances (TBs) and FSs were uploaded by the agency accountants
to the AFRS, while some were submitted in printed and electronic copies. The
concerned COA-GAS analysts reviewed, analyzed and reconciled the uploaded TBs
and FSs as well as those received in printed and electronic copies and consolidate them
by department, by agency and by fund cluster. The consolidated agency TBs and FSs
for all funds are compared with the audited FSs and all discrepancies/deficiencies noted
are being communicated to the concerned auditors or accountants for their guidance
and appropriate actions.
A parallel testing of this year’s manually consolidated and the System’s

generated FSs is done to ensure correctness, reliability and completeness of the FSs that
will be generated from the System in the preparation of AFR for the ensuing years.
Financial Statements
The overall consolidated financial data presented in this AFR were taken from
the 2015 and restated 2014 FSs of the NGAs which were prepared by the agency
accountants and budget officers in accordance with the PPSAS and in conformity with
the requirements of the enhanced Unified Accounts Code Structure and updated
Revised Chart of Accounts. Separate Trial Balances (TBs) and FSs were prepared and
submitted by the NGAs by fund cluster, as follows:
a. Regular Agency Fund

b. Foreign Assisted Projects Fund
c. Special Accounts – Locally Funded/Domestic Grants Fund
d. Special Accounts – Foreign Assisted/Foreign Grants Fund
e. Internally Generated Fund
f. Business Related Funds
g. Trust Receipts
Since not all NGAs were able to submit TBs and FSs by fund cluster, we opted
not to present the consolidated FSs by fund cluster.
Balances of the inter-agency accounts were not eliminated in the absence of

data as to the source and implementing agencies. Intra-agency accounts were likewise
not eliminated as these are the balances after the elimination made by the agencies
within the agency.
Appropriations, Allotments, Obligations and Balances
The COA-GAS keeps the Registry of Appropriations and Allotments (RAPAL)

to record and monitor the appropriations authorized by law and the allotments released
by the Department of Budget and Management (DBM) to the different NGAs and some
3
GOCCs. To ensure the accuracy of the budget data, reconciliation between the records
of the COA-GAS, DBM and the agencies were undertaken.
The COA-GAS also keeps the Registry of Allotments, Obligations and

Disbursements (RAOD) and Registry of Overdraft in Allotments (ROA) to record the
obligations, disbursements and overdraft in allotments based on the Budget and
Financial Accountability Reports (BFARs) submitted by the NGAs. Necessary
corrections and overdraft in allotments were communicated to the Budget Officers of
the concerned agencies for proper adjustment in their Registries and for them to request
release of allotment for obligations incurred not covered by allotments.
National Government Debt
The data on NG debt were taken from the CY 2015 reports submitted by the
National Government Debt Accounting Division (NGDAD) and Debt Management
Analysis Division (DMAD) of the Bureau of the Treasury (BTr), such as:
 Audited Financial Statements

 Analyses of Loans and Bonds Payable, Domestic and Foreign
 Status Report of NG External Debt
 Actual Debt Service Expenditures
Significant and Common Audit Observations and Recommendations and Summary

of Audit Opinions
The summaries of significant and common audit observations and

recommendations, and of audit opinions were prepared by the COA National
Government Sector and COA Regional Office - ARMM. The complete details of which
are presented in the individual Annual Audit Report of each agency which are
published at the COA Website at http://www.coa.gov.ph.
Highlights of Accomplishments of the Top Ten Departments
The highlights on the accomplishments of the following departments were taken

from their respective Annual Report for CY 2015:
1. Department of Agrarian Reform

2. Department of Agriculture
3. Department of Education
4. Department of the Environment and Natural Resources
5. Department of the Interior and Local Government
6. Department of National Defense – Armed Forces of the Philippines
7. Department of Finance – Bureau of Internal Revenue
8. Department of Health
4
9. Department of Social Welfare and Development
10. Department of Transportation and Communications
Coverage
The financial data for this year’s AFR were obtained from the
advance/uploaded and audited copies of FSs and reports of 316 out of the total number
of 318 agencies. Only the Construction Industry Authority of the Philippines (CIAP)
under the Department of Trade of Industry, Provincial Agrarian Reform Office –
ARMM (Fund 158) under the Department of Agrarian Reform, and the Tourism
Promotions Board (TPB), a GOCC under the Department of Tourism, failed to submit
their FSs on or before the final deadline set by COA-GAS. This is the second
consecutive year that CIAP failed to submit its FSs and was not included in the AFR
for NG.
The TPB on the other hand, which received total allotments this year of
P1,130,552,000 is not maintaining a separate book for Special Account in the General
Fund (SAGF) hence, not included in this Report; transactions for a number of years
pertaining to receipts and utilizations of funds from the NG were integrated in its
Corporate Fund and were reported in the AFR for GOCCs instead. Considering that the
TPB is receiving regularly/annually allotments from the NG, the Chief Accountant was
advised to maintain a separate book and prepare FSs for SAGF starting CY 2016.
The General Fund of the National Irrigation Authority (NIA) and the SAGF of
Philippine Coconut Authority (PCA), both GOCCs under the Department of
Agriculture, are combined with their Corporate Funds, thus, are to be reported in the
AFR for GOCCs and not with the NG. This is in compliance with Presidential
Memorandum Order No. 70 dated May 5, 2014, “Providing for the Functions of the
Presidential Assistant for Food Security and Agricultural Modernization.” This is also
in consonance with the release of allotments by DBM under the Special Purpose Fund
(SPF) Budgetary Support to GOCCs of CY 2015 General Appropriations Act, R. A.
No. 10651, to the Bureau of the Treasury for NIA and PCA as NG subsidy.
5
II. FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
2.1 Financial Position
As of December 31, 2015, the aggregate assets of the NG reached P4.818

trillion showing an increase of P328.34 billion or 7.31 percent over last year’s
P4.489 trillion. Matching the total resources with the overall liabilities of
P6.354 trillion resulted to a negative net assets/equity of P1.537 trillion. Chart
II-1 shows the financial position for CYs 2015 and 2014.
Chart II-1 - Financial Position for 2015 and 2014 R
6.354 T 6.177 T
7000
6000 4.818 T 4.489 T
5000
4000
3000
2000 (1.688 T)
(1.537 T)
1000
0
2015 2014
-1000
-2000
Assets Liabilities Net Assets/Equity
2.1.1 Assets – P4.818 trillion
The Total Assets of P4.818 trillion is composed of Current Assets

of P1.635 trillion and Non-Current Assets of P3.183 trillion.
 Current Assets – P1.635 trillion
Current Assets of P1.635 trillion constituted 33.93 percent of

the Total Assets. It showed a decrease of P105.56 billion or 6.07
percent from the 2014 level of P1.740 trillion. The reduction was
due to the decrease in Cash and Cash Equivalent and Investments in
the amount of P164.66 billion or 21.98 percent and P37.50 billion or
42.22 percent, respectively, and partially offset by a total increase of
P96.60 billion in Receivables, Inventories and Other Current Assets.
Table II-1 shows the comparison of Current Assets for CYs 2015
and 2014.
6
Table II-1 Current Assets
(in million pesos)
Amount
Particulars CY2014 Increase/ Percent
CY 2015
Restated (Decrease)
Cash and Cash Equivalent 584,634.76 749,293.63 (164,658.87) (21.98)
Investments 51,316.63 88,814.44 (37,497.82) (42.22)
Receivables 866,741.38 811,296.62 55,444.75 6.83
Inventories 52,831.93 40,051.21 12,780.72 31.91
Other Current Assets 79,271.26 50,901.12 28,370.14 55.74
Total Current Assets 1,634,795.96 1,740,357.02 (105,561.07) (6.07)
Difference between totals and sum of components is due to rounding off.
As shown in Chart II-2, Receivables share the largest portion

of Current Assets for CY 2015. The Receivables account is
composed substantially of Inter-Agency Receivables – P683.34
billion, of which, P531.78 billion or 77.82 percent is Due from
GOCCs.
Chart II-2 Composition of Current Assets
866.74 B
53.02%
52.83 B
51.32 B 3.23%
3.14% 584.63 B 79.27 B
35.76% 4.85%
Cash & Cash Equivalents Investments

Receivables Inventories
Other Current Assets
Cash and cash equivalents which shared the second largest

portion of current assets, includes Cash in Bank, local and foreign of
P716.78 billion, Treasury/Agency Cash accounts of (P135.36)
billion, Cash on Hand of P2.55 billion and Cash Equivalents of
P670.69 million.
 Non-Current Assets – P3.182 trillion
Non-Current Assets of P3.182 trillion constituted 66.07

percent of the total assets. It showed an increment of P433.90 billion
or 15.78 percent from the 2014 level of P2.749 trillion. The progress
was due to the increase in Property, Plant and Equipment – P450.23
7
billion or 34.63 percent, Other Non-Current Assets of P14.83 billion
or 10.25 percent, Intangible Assets – P1.31 billion or 173.49 percent
and Investment Property of P3.47 billion or more than 44 times,
respectively, and partially offset by a total reduction of P35.94
billion in Investments, Receivables and Biological Assets. Table II-2
shows the comparison of Non- Current Assets for CYs 2015 and
2014.
Table II-2 Non-Current Assets

(in million pesos)
Amount
CY 2015
Restated (Decrease)
Investments 1,062,175.23 1,097,986.80 (35,811.56) (3.26)
Receivables 202,882.94 203,007.42 (124.47) (0.06)
Investment Property 3,547.10 77.62 3,469.47 4,469.68
Property, Plant and
Equipment 1,750,469.58 1,300,239.66 450,229.92 34.63
Biological Assets 2,148.65 2,152.08 (3.43) (0.16)
Intangible Assets 2,068.92 756.50 1,312.43 173.49
Other Non-Current Assets 159,557.19 144,729.05 14,828.14 10.25
Total Non-Current
Assets 3,182,849.63 2,748,949.13 433,900.50 15.78
Among the composition of Non-Current Assets, the Property,

Plant and Equipment and Investments comprised the bulk,
representing 55.00 percent and 33.37 percent, respectively. Chart II-
3 shows the composition of Non-Current Assets.
Chart II-3 Components of Non-Current Assets
2.07 B 159.56 B
0.07% 5.01%
2.15 B
0.07%
1.062 T
33.37%
1.750 T
55%
202.88 B
6.37%
3.55 B
0.11%
Investments
Receivables
Investment Property
Property, Plant & Equipment
Biological Assets
Intangible Assets
8
Of the total PPE, the Construction in Progress and
Infrastructure Assets got the highest share at P718.78 billion or
22.58 percent and P513.08 billion or 16.12 percent, respectively.
2.1.2 Liabilities – P6.354 trillion
This year’s reported Liabilities of P6.354 trillion posted an

increment of P176.96 billion or 2.86 percent compared to last year’s
amount of P6.177 trillion. Of the total, P1.232 trillion or 19.40 percent
pertains to Current Liabilities and P5.122 trillion or 80.60 percent refers
to Non-Current Liabilities.
 Current Liabilities – P1.232 trillion
The Current Liabilities of P1.232 trillion posted an increment

of P288.73 billion or 30.59 percent from last year’s balance of
P943.82 billion. This was due to the increase in the balance of
Financial Liabilities – P391.78 billion or 62.18 percent, Trust
Liabilities – P11.00 billion or 39.10 percent and Intra-Agency
Payables – P3.22 billion or 50.88 percent. There were, however,
decreases in Inter-Agency Payables of P58.60 billion or 32.91
percent, Other Payables of P58.55 billion or 60.74 percent and
Deferred Credits/Unearned Income of P120.92 million or 2.50
percent. Table II-3 shows the comparison of Current Liabilities for
CYs 2015 and 2014.
Table II-3 Current Liabilities

(in million pesos)
Amount
CY 2015
Restated (Decrease)
Financial Liabilities 1,021,849.16 630,067.99 391,781.17 62.18
Inter-Agency Payables 119,464.12 178,064.50 (58,600.39) (32.91)
Intra-Agency Payables 9,539.37 6,322.53 3,216.84 50.88
Trust Liabilities 39,131.37 28,131.36 11,000.01 39.10
Other Payables 37,851.34 96,400.74 (58,549.40) (60.74)
Deferred Credits/
Unearned Income 4,708.14 4,829.06 (120.92) (2.50)
Total Current
Liabilities 1,232,543.49 943,816.19 288,727.30 30.59
Among the components of Current Liabilities, the largest

portion pertains to Financial Liabilities of P1.022 trillion. The
Financial Liabilities include the current portion of public debt, both
foreign and domestic in the amount of P805.14 billion, of which,
98.97 percent or P796.84 billion was reported by the BTr, the agency
mandated to manage, control and service the public debt of the
government. Chart II-4 shows the composition of Current Liabilities.
9
Chart II-4 Composition of Current Liabilities
1.021T 119.46 B
82.91% 9.69%
210.69 B
17.09%
9.54B, 0.77%
39.13 B, 3.17%
37.85, 3.07%
4.71, 0.38%
Financial Liabilities Inter-Agency Payables

Intra-Agency Payables Trust Liabilities
Other Payables Deferred Credits/Unearned Income
 Non-Current Liabilities – P5.122 trillion
There was a decrease in the balance of Non-Current

Liabilities in the amount of P111.77 billion or 2.14 percent
compared to the last year’s level of P5.234 trillion. This was
primarily due to the decrease in the balance of Financial Liabilities –
P119.68 billion or 2.32 percent and Trust Liabilities – P66.26
million or 0.56 percent. These were partly offset by the increase in
the balances of Other Payables – P7.70 billion or 19.81 percent and
Deferred Credits/Unearned Income – P277.94 million or 1.65
percent. Table II-4 shows the comparison of CYs 2015 and 2014
Non-Current Liabilities.
Table II-4 Non-Current Liabilities

(in million pesos)
Amount
CY 2015
Restated (Decrease)
Financial Liabilities 5,046,466.74 5,166,145.01 (119,678.27) (2.32)
Trust Liabilities 11,675.57 11,741.82 (66.26) (0.56)
Deferred Credits/
Unearned Income 17,089.73 16,811.79 277.94 1.65
Other Payables 46,550.78 38,854.91 7,695.87 19.81
Total Current
Liabilities 5,121,782.82 5,233,553.53 (111,770.71) (2.14)
The bulk or 98.53 percent of Non-Current Liabilities pertain

to Financial Liabilities of P5.046 trillion. The Financial Liabilities
10
likewise include the non-current portion of public debt, both foreign
and domestic in the amount of P5.045 trillion, of which, 99.97
percent or P5.044 trillion was reported by the BTr. Chart II-5 shows
the composition of Non-Current Liabilities.
Chart II-5 - Composition of Non-Current Liabilities
11.68B
0.23%
5.046 T 75.32B
98.53% 17.09B
1.47%
0.33%
46.55B
0.91%
Financial Liabilities Trust Liabilities

Deferred Credits/Unearned Income Other Payables
2.1.3 Net Assets/Equity – (P1.537 trillion)
The Net Assets/Equity of the NG as of December 31, 2015 is a

negative balance of P1.537 trillion reflecting an increase of P151.38
billion from the negative balance of P1.688 trillion in the previous year.
The decrease in the Accumulated Deficit of P130.06 billion or 7.70
percent was partly complemented by the Unrealized Gain – P21.31
billion and Contributed Capital – P8.00 million reported by the BTr NG
and PMO, respectively. Table II-5 shows the Net Assets/Equity for CYs
2015 and 2014.
Table II-5 Net Assets/Equity of the National Government

(in million pesos)
Amount
CY 2015
Restated (Decrease)
Government Equity (1,557,992.48) (1,688,063.56) 130,071.09 (7.71)
Accumulated
Surplus/(Deficit) (1,558,000.48) (1,688,063.56) 130,063.09 (7.70)
Contributed Capital 8.00 - 8.00 -
Unrealized Gain/(Loss) 21,311.76 - 21,311.76 -
Net Assets/Equity (1,536,680.72) (1,688,063.56) 151,382.84 (8.97)
11
2.2 Financial Performance
For CY 2015, the operation of the NG resulted to a Deficit of P3.26

billion. The increase in Revenue of P143.21 billion or 7.41 percent and Sale of
Assets of P88.75 million or 10.85 percent was counterbalanced by the increase
in Current Operating Expenses in the amount of P233.36 billion or 19.88
percent, Net Financial Assistance/Subsidy to NGAs, LGUs, GOCCs,
NGOs/POs of P56.54 billion or 10.45 percent and Losses of P99.31 billion or
more than 75 times, and decrease in Gains of P15.91 billion or 39.67 percent.
Table II-6 presents the Financial Performance of NG for CYs 2015 and 2014.
Table II-6 Financial Performance of the National Government

(in million pesos)
Amount
CY 2015
Restated (Decrease)
Revenue 2,077,144.17 1,933,929.49 143,214.68 7.41
Less: Current Operating
Expenses 1,407,064.84 1,173,702.39 233,362.45 19.88
Surplus/(Deficit ) from
Current Operations 670,079.34 760,227.10 (90,147.76) (11.86)
Net Financial Assistance/
Subsidy (597,815.93) (541,278.57) (56,537.36) 10.45
Sale of Assets 906.59 817.83 88.75 10.85
Gains 24,200.63 40,114.66 (15,914.03) (39.67)
Losses (100,627.51) (1,316.24) (99,311.27) 7,545.05
Surplus/(Deficit) for the
Period (3,256.88) 258,564.79 (261,821.67) (101.26)
2.2.1 Revenue – P2.077 trillion
Total Revenue during the year reached P2.077 trillion, higher by

P143.21 billion or 7.41 percent than the prior year’s level of P1.934
trillion. Total Revenue consists of Tax Revenue – P1.824 trillion,
Service and Business Income P204.56 billion, Shares Grants and
Donations – P48.23 billion, Gains – P35.46 million and Miscellaneous
Income – P7.53 million.
Tax Revenue generated during the year is higher by P108.57

billion or 6.33 percent. Of the aggregate Tax Revenue, 99.25 percent or
P1.811 trillion was reported by the two revenue collecting agencies
namely, the BIR – P1.441 trillion and the BOC – P369.23 billion.
Actual tax revenue collections of the BIR and BOC this year fell short of
target by P366.67 billion.
12
Collections from Service and Business Income of P204.56 billion
posted an increment of P41.73 billion or 25.63 percent than last year’s
level of P162.82 billion. The comparison of Revenue collections for
CYs 2015 and 2014 is presented in Chart II-6.
Chart II-6 Total Revenues for CYs 2015 and 2014
1.824 T 1.716 T
2,000.00
1,500.00
1,000.00
204.56B
162.82B
500.00 48.23B 0.05B
0.01B 55.31B 0.28M
0.04 B
-
2015 2014
Tax Revenue
Service & Business Income
Shares, Grants and Donations
Miscellaneous Income
Gains
2.2.2 Expenses – P1.407 trillion
Total Expenses amounted to P1.407 trillion, composed of

Personnel Services – P692.46 billion, Maintenance and Other Operating
Expenses – P234.29 billion, Financial Expenses – P397.71 billion and
Non-Cash Expenses – P82.61 billion. Non-Cash Expenses consists of
Depreciation – P81.26 billion, Amortization – P141.40 million,
Impairment Losses – P1.20 billion and Losses – P952.67 thousand.
All the components of Expenses registered increases in amounts

when compared to the previous year’s level, the amount and percent of
increases are as follows: Personnel Services – P55.63 billion or 8.74
percent, Maintenance and Other Operating Expenses – P43.31 billion or
22.68 percent, Financial Expenses – P72.62 billion or 22.34 percent and
Non-Cash Expenses – P61.80 billion or 297.00 percent. Chart II-7
shows the comparison of Expenses for CYs 2015 and 2014.
13
Chart II-7 - Total Expenses for CYs 2015 and 2014
692.46 B 636.82B
700.00
600.00 397.71B
500.00 325.09 B
400.00 234.29B 190.98B
300.00 82.61B
200.00 20.81B
100.00
-
2015 2014
Personnel Services
Maintenance & Other Operating Expenses
Financial Expenses
Non-Cash Expenses
.
2.3 Cash Flows
The Statement of Cash Flows of the NG showed P5.269 trillion inflows

and P5.337 trillion outflows. Compared with the previous year’s level of
P5.006 trillion inflows and P4.882 trillion outflows, this year’s amounts are
higher by P262.94 billion or 5.25 percent and P454.50 or 9.31 percent,
respectively.
Chart II-8 CYs 2015 and 2014 Cash Flows, by Activities

(in billion pesos)
4,500.00
2015 2014
4,000.00
3,500.00
3,000.00
2,500.00
2,000.00 Outflow
1,500.00
Inflow
1,000.00
500.00
-
Operating Investing Financing Operating Investing Financing
Outflow 3,909.22 320.07 1,107.62 3,374.15 280.47 1,227.79
Inflow 4,194.73 175.08 899.25 3,859.03 150.12 996.97
2.3.1 Cash Inflows –P5.269 trillion
Of the total cash inflows, 79.61 percent or P4.195 trillion falls

under the Operating Activities while the remaining 20.39 percent or
P1.074 trillion is shared by the Investing and Financing Activities. Of
the total cash inflows under Operating Activities, 48.52 percent or
14
P2.035 trillion and 45.01 percent or P1.888 trillion pertain to collection
of income/revenue and receipt of NCA.
2.3.2 Cash Outflows – P5.337 trillion
The largest amount of Cash Outflows amounting to P3.909 trillion

or 73.25 percent pertains to Operating Activities. Major transactions
under this category include replenishment of negotiated MDS checks –
P1.716 trillion, payment of operating expenses – P679.78 billion, grant
of financial assistance/subsidy – P542.75 billion and remittance of
personnel benefit contributions and mandatory deductions – P294.50
billion.
2.4 Changes in Net Assets/Equity
Accumulated Surplus/(Deficit)
(in million pesos)
FY 2015 FY 2014
Restated
Balance at January 1 (1,688,930.18) (1,997,855.36)
Changes in Accounting Policy (6,427.05) 12,390.09
Prior Period Adjustments/Unrecorded Income
and Expenses (12,903.06) (66,257.91)
Other Adjustments ___20,139.70 62,839.40
Restated Balances (1,688,120.59) (1,988,883.78)
Changes in Net Assets/Equity for Calendar
Year 130,120.11 300,820.22
Adjustment of Net Revenue recognized
directly in Net Asset/Equity (1,435.35) 49,118.65
Surplus/(Deficit) for the Period (3,256.88) 258,564.78
Total Recognized Revenue and Expenses for
the Period (4,692.23) 307,683.43
Others 134,812.34 (6,863.21)
Balance at December 31 (1,558,000.48) (1,688,063.56)
Difference between total and sum of components is due to rounding off.
From the restated beginning balance of (P1.688) trillion, the year-end

balance of Accumulated Surplus/(Deficit) amounted to (P1.558) trillion brought
about by the following adjustments: Adjustment of Net Revenue recognized
directly in Net Assets/Equity – (P1.44) billion, Surplus/(Deficit) for the Period –
(P3.26) billion, and Other Adjustments during the Period – P134.81 billion.
The difference in the amount of P57.03 million between the Restated

Ending Balance as of December 31, 2014 and the Restated Beginning Balance
at January 1, 2015 pertains to the balance of Construction Manpower
Development Foundation which was merged to CIAP in CY 2015 but failed to
submit its FSs for two consecutive years.
15
2.5 Comparison of Budget and Actual Amounts
The Comparison of the Budget and Actual amounts presents the Receipts
and Payments classified into Budgeted Amounts (Original and Final) and the
Actual Amounts on Comparable Basis which pertain either to the actual
revenues or to the disbursements. The final budgeted amounts are then
compared with the actual amounts on comparable basis to get the difference or
variance thereof. Table II-7 shows the Comparison of Budget and Actual
Amounts for CY 2015.
For CY 2015, the Original and Final Budgeted Amounts under Receipts
totaled P2.334 trillion and P2.944 trillion, respectively, while the Actual
Amounts on Comparable Basis amounted to P2.936 trillion. The Variance
between the Final Targeted and Actual Revenue amounting to P8.36 billion
represents the under collections of the NG during the year.
For the year, the Original and Final Budgeted Amounts under Payments
amounted to P2.930 trillion and P3.185 trillion, respectively while the Actual
Amounts on Comparable Basis amounted to P2.167 trillion. The difference of
P1.018 trillion on Final Budget vs. Actual Budget represents the unreleased
appropriations, unobligated allotments and unpaid obligations for CY 2015.
For CY 2015, Payments exceeded the Receipts both for the Original and
Final Budgeted Amounts by P595.80 billion and P240.82 billion, respectively,
while Receipts were more than the Payments under the Actual Amounts by
P768.50 billion.
Table II-7 Comparison of Budget and Actual Amounts
(in million pesos)
Budgeted Amount Actual Amounts Difference Final
Particulars on Comparable Budget and
Original Final
Basis Actual Amounts
RECEIPTS
Tax Revenue 2,193,252.19 1,825,232.25 1,824,055.65 1,176.60
Service and Business
Income 138,439.66 190,223.58 181,396.12 8,827.47
Assistance and Subsidy - 1.41 1.41 -
Shares, Grants and
Donations 2,273.67 24,531.67 26,216.82 (1,685.15)
Gains 4.50 23.63 6.19 17.43
Others 38.54 903,971.90 903,948.15 23.75
Total Receipts 2,334,008.56 2,943,984.44 2,935,624.35 ____8,360.10
PAYMENTS
Personnel Services 689,683.92 693,347.38 664,023.12 29,324.26
Maintenance and Other 963,170.83 1,039,357.66 848,805.39 190,552.27
Operating Expenses
Capital Outlay 512,027.33 686,804.27 193,698.84 493,105.43
Financial Expenses 374,543.38 374,908.59 258,399.00 116,509.58
Debt Service Principal
Amortization 390,386.00 390,386.00 202,200.82 188,185.18
Total Payments 2,929,811.47 3,184,803.91 2,167,127.18 1,017,676.73
NET RECEIPTS/
(PAYMENTS) (595,802.90) (240,819.46) 768,497.17 (1,009,316.63)
16
III. APPROPRIATIONS,
ALLOTMENTS,
OBLIGATIONS AND
BALANCES
APPROPRIATIONS, ALLOTMENTS, OBLIGATIONS AND BALANCES
3.1 APPROPRIATIONS - P3.508 trillion
Appropriations are authorizations made by a legislative body to

allocate funds for purposes specified by law or similar authority. Total
appropriations approved for the operations of the National Government for
CY 2015 amounted to P3.508 trillion. Of the amount, P1.863 trillion was
appropriated in the New General Appropriations under R. A. No. 10651, the
2015 General Appropriations Act (GAA), and the balance of P1.645 trillion
was provided under the following: Automatic Appropriations – P1.229
trillion, and Unreleased and Allotted Continuing Appropriations in the
amount of P222.94 billion and P192.85 billion, respectively.
By allotment class, the components of this year’s total

appropriations of P3.508 trillion is as follows: PS – P739.01 billion, MOOE
– P1.129 trillion, FE – P374.91 billion and CO – P1.265 trillion. Chart III-1
shows the breakdown of appropriations by allotments class.
Chart III-1 Appropriations, by Allotment Class
PS
P739.01B
CO 21.07%
P 1.265T
36.06%
MOOE
P 1.129T
32.18%
FE,
P 374.91B
10.69%
 Sources of Appropriations
As shown in Table III-1, the appropriations of P1.863 trillion

provided under R. A. No. 10651 consists of Agency Specific Budget
(ASB) – P1.347 trillion and Special Purpose Funds (SPFs) – P515.45
billion.
17
The Automatic Appropriations of P1.229 trillion was sourced from
various special laws and the General Provisions of the GAA providing
for funds to support obligations for purposes or projects which amounts
are not fixed by law.
The Unreleased Continuing Appropriations of P222.94 billion

consists of the unallotted balances of previous year GAA, R. A. No.
10633 – P200.47 billion and Supplemental Appropriation, R. A. No.
10652 – P22.47 billion.
The Allotted Continuing Appropriations in the amount of P192.85

billion consists of the unobligated balances of allotments from prior
years’ GAAs – P190.34 billion and automatic appropriations – P2.50
billion.
Table III-1 Appropriations, By Source and Allotment Class

(In million pesos)
Prior Years’
Current Year’s Appropriations
Continuing Appropriations
Source
New General Automatic
Unreleased Allotted
Appropriations Appropriations
General Appropriations 1,862,824.65 - 200,469.18 190,343.18

Agency Specific Budget 1,347,378.57 - 41,543.74 174,724.37
Personnel Services 475,425.64 - - 780.69
Maintenance and Other
Operating Expenses 381,315.35 - 8,126.68 55,863.00
Financial Expenses 1,701.06 - 244.11
Capital Outlay 488,936.52 - 33,417.06 117,836.57
Special Purpose Funds 515,446.08 - 158,925.45 15,618.81
Capital Outlay 73,106.20 - 127,898.32 8,963.06
Supplemental
Appropriations, RA 10652 - - 22,467.61 -
Operating Expenses - - 14,834.76 -
Financial Expenses - - 100.41 -
Capital Outlay - - 7,532.44 -
Automatic Appropriations - 1,229,189.00 - 2,504.10
Retirement and Life
Insurance Premium - 32,666.14 - 16.22
Personnel Services - 32,666.14 - 16.22
Pension of Ex-Presidents/Ex-
Presidents Widows - 0.33 - -
18
(Table III.1, continued)
Prior Years’
Continuing Appropriations
Source
Unreleased Allotted
Personnel Services - 0.33 - -

SAGF - 8,056.53 - 2,468.09
Personnel Services 1,047.60 - -
Operating Expenses - 6,144.71 - -
Financial Expenses - 0.01 - -
Capital Outlay - 864.21 - 2,468.09
Grants and Donations - 1,952.32 - 15.60
Operating Expenses - 925.01 - 15.05
Financial Expenses - @ -
Capital Outlay - 1,024.60 - 0.55
Tax Expenditure Fund
(Customs Duties and Taxes) - 18,148.42 - -
Motor Vehicle Users Charge - 14,399.77 - -
Capital Outlay - 11,805.42 - -
Military Camp Sales
Proceeds Fund - 51.17 - 4.19
Operating Expenses - 31.47 - -
Capital Outlay - 19.70 4.19
AFP Modernization Act
Trust Fund - 804.89 - -
Capital Outlay 804.89 - -
Internal Revenue Allotment - 389,860.43 - -
Debt Service - 763,249.00 - -
Financial Expenses - 372,863.00 - -
Total 1,862,824.65 1,229,189.00 222,936.79 192,847.29
@ - Less than P10,000
19
 CY 2015 Appropriations vs. CY 2014
Compared to the previous year’s level of P3.078 trillion, this year’s

appropriations increased by P430.22 billion as shown in Table III - 2. Both
the current year and prior year’s continuing appropriations registered
positive growth of 8.24 percent and 88.08 percent, respectively.
Table III-2 Comparative Appropriations, by Source

(In million pesos)
Amount
Particulars Increase/ Percent
2015 2014
(Decrease)
Current Year’s
Appropriations 3,092,013.66 2,856,504.30 235,509.36 8.24
New General Appropriations 1,862,824.65 1,608,503.08 254,321.57 15.81
Agency Specific Budget 1,347,378.57 1,154,957.91 192,420.66 16.66
Special Purpose Funds 515,446.08 453,545.17 61,900.91 13.65
Automatic Appropriations 1,229,189.00 1,225,533.61 3,655.40 0.30
Supplemental Appropriations - 22,467.61 (22,467.61) (100.00)
Continuing Appropriations 415,784.08 221,069.49 194,714.59 88.08
Unreleased Appropriations 222,936.79 139,442.87 83,493.92 59.88
Allotted Appropriations 192,847.29 81,626.62 111,220.67 136.26
Total 3,507,797.74 3,077,573.79 430,223.95 13.98
The decrease in current year’s appropriations for supplemental

appropriations in the amount of P22.47 billion was offset by the increase
in continuing appropriations where it was forwarded in CY 2015 under
unreleased continuing appropriations.
From the previous year’s level of P81.63 billion, the allotted

continuing appropriations registered the highest percentage increase of
136.26 percent, even if its beginning balance was adjusted for the
unobligated balance of automatic appropriations in the amount of
P256.62 billion. This is in compliance with the provision of National
Budget Circular No. 551 dated January 2, 2014 that “all programmed
automatic appropriations in CY 2014 shall be available for release and
obligation up to December 31, 2014 only.”
 Appropriations of Department/Offices for CY 2015
Among the departments, the DOF reported the highest amount of

appropriations at P918.42 billion or accounting for 26.18 percent, of
which, P763.25 billion or 83.10 percent was for Debt Service. The
DPWH, DBM and DepEd trailed with P470.48 billion, P410.24 billion
and P355.87 billion, respectively.
20
In terms of the highest amount of increase in appropriations, the
DPWH topped with P168.37 billion, followed by DBM, DepEd and
DSWD with P55.44 billion, P46.21 billion and P39.18 billion,
respectively. To fund the National and Local Elections held last May 9,
2016, the COMELEC topped the departments/offices with the highest
percentage increase in appropriations, at 177.70 percent. OP and NEDA
followed with 105.24 percent and 104.05 percent, respectively.
On the other hand, the three departments with the biggest amount
of decrease in appropriations are the following: DA – P17.05 billion,
DOF – P13.30 billion and DAR – P10.02 billion.
The appropriations by department and by source is shown in Table

III - 3.
Table III-3 Appropriations, by Department/Office

(In billion pesos)
Prior Years’
Current Year Appropriations Continuing
Department/ Appropriations
Office Agency Special Automatic
Specific Purpose Appro- Unre-
Total Allotted
Budget Funds priations leased
Finance 918.424 13.863 106.055 779.282 17.363 1.860
Public Works and
Highways 470.478 346.865 5.475 14.636 34.133 69.368
Budget and
Management 410.245 1.943 8.761 390.611 8.713 0.217
Education 355.868 272.833 40.060 22.055 2.257 18.662
Interior and Local
Government 176.706 104.672 54.553 0.555 4.274 12.652
National Defense 166.371 99.925 61.832 1.794 0.200 2.621
Social Welfare and
Development 142.837 107.701 14.949 0.467 4.080 15.639
Transportation and
Communications 79.597 53.112 2.011 3.385 1.883 19.205
Health 77.189 59.979 6.371 2.380 0.089 8.369
Agriculture 57.645 41.938 1.321 1.087 0.691 12.607
State Universities
and Colleges 54.463 42.280 4.751 2.280 1.648 3.505
Autonomous
Region in Muslim
Mindanao 29.004 26.120 2.262 0.210 0.413 -
Environment and
Natural Resources 28.368 21.216 1.366 0.620 2.442 2.725
The Judiciary 25.258 20.261 1.695 0.786 - 2.516
Science and
Technology 20.464 17.578 0.454 0.225 0.322 1.885
Agrarian Reform 20.420 10.259 0.223 0.324 5.313 4.302
21
(Table III-3, continued)
Prior Years’
Specific Purpose Appro- Unre-
Total Allotted
Budget Funds priations leased
Other Executive
Offices 18.448 10.584 0.652 2.574 0.141 4.498
Commission on
Elections 18.372 16.815 0.231 0.150 - 1.177
Foreign Affairs 16.384 12.955 1.612 0.099 0.533 1.183
Congress of the
Philippines 15.252 12.658 0.226 0.325 0.320 1.723
Justice 14.817 11.326 2.157 0.828 0.058 0.448
Labor and
Employment 14.287 11.550 0.769 0.802 0.002 1.164
Office of the
President 12.241 2.568 8.069 0.035 - 1.569
National Economic
and Development
Authority 9.435 6.273 1.560 0.264 0.170 1.168
Commission on
Audit 9.313 7.754 0.707 0.757 - 0.096
Energy 7.401 3.510 0.039 1.178 - 2.674
Trade and Industry 5.369 3.734 0.251 0.124 0.770 0.490
Tourism 3.811 2.479 0.063 1.158 - 0.111
Metropolitan
Manila
Development
Authority 2.200 - 2.022 0.004 - 0.174
Office of the
Ombudsman 2.134 1.822 0.054 0.062 - 0.197
Civil Service
Commission 1.280 1.114 0.091 0.062 - 0.013
Presidential
Communications
Operations Office 1.257 1.111 0.095 0.045 - 0.006
Commission on
Human Rights 0.438 0.355 0.061 0.020 - 0.001
Office of the Vice-
President 0.253 0.223 0.005 0.004 - 0.021
Joint Legislative-
Executive Councils 0.003 0.003 @ - - @
Unreleased Special
Purpose Funds 321.747 - 184.642 - 137.104 -
Unreleased
Supplemental
Appropriations,
RA 10652 0.018 - - - 0.018 -
Total 3,507.798 1,347.379 515.446 1,229.189 222.937 192.847
@ - Less than P1 million
22
3.2 ALLOTMENTS – P3.147 trillion
Allotments are authorizations issued by the DBM to NGAs to incur

obligations for specified amounts contained in legislative appropriations in
the form of budget releasing documents. For CY 2015, the total allotments
released to the departments/offices amounted to P3.147 trillion, representing
89.71 percent of the approved appropriations, which was sourced from the
following: New General Appropriations – P1.650 trillion, Automatic
Appropriations – P1.229 trillion and Continuing Appropriations – P268.05
billion.
As shown in Chart III-2, total allotments of P3.147 trillion is

comprised of: PS – P692.99 billion, MOOE – P1.032 trillion, FE – P374.91
billion and CO – P1.047 trillion.
Chart III-2 Allotments, by Allotment Class
FE CO
P 374.91B P 1.047T
11.91% 33.27%
MOOE
P 1.032T
33.27%
PS
P692.99B
22.02%
23
 CY 2015 Allotments vs. CY 2014
Compared to the 2014 allotments, this year’s amount increased by

P417.01 billion or 15.28 percent. Allotments from current year’s
appropriations and prior years’ continuing appropriations both registered
increases of P252.28 billion or 9.61 percent and P164.73 billion or
159.44 percent, respectively. Included in the release from continuing
appropriations is the total allotment of P22.45 billion from Supplemental
Appropriations R. A. No. 10652 which was approved by the Congress
and Senate on December 17, 2014. Table III - 4 shows the comparison of
allotments for CYs 2015 and 2014.
Table III- 4 Comparative Allotments, by Source

(In million pesos)
Amount
2015 2014
(Decrease)
Current Year’s
2,878,787.78 2,626,503.81 252,283.97 9.61
Appropriations
New General Appropriations 1,649,598.78 1,400,970.20 248,628.58 17.75
Agency Specific Budget 1,318,794.83 1,112,678.52 206,116.32 18.52
Automatic Appropriations 1,229,189.00 1,225,533.61 3,655.40 0.30
Total 3,146,833.51 2,729,819.02 417,014.49 15.28
 Sources of Allotments
Of the aggregate allotments, P2.879 trillion or 91.48 percent was

sourced from current year’s appropriations and of which, 57.30 percent
was funded from the New General Appropriations and 42.70 percent
from Automatic Appropriations.
The allotments from continuing appropriations of P268.04 billion

were sourced from the unreleased continuing appropriations – P75.20
billion or 28.05 percent and allotted continuing appropriations – P192.85
billion or 71.95 percent. Table III-5 shows the Allotments by source and
allotment class.
24
Table III – 5 Allotments, By Source and Allotment Class
(In million pesos)
Continuing
Current Year’s Appropriations Appropriations
Source
New General Automatic Unreleased Allotted
Financial Expenses 1,701.06 - - 244.11
Capital Outlay 462,460.96 - 29,491.52 117,836.57
Capital Outlay 6,670.74 - 6,462.25 8,963.06
Supplemental
Appropriations,
RA 10652 - - 22,449.90 -
Automatic
Appropriations - 1,229,189.00 - 2,504.10
Retirement and Life
Insurance Premium - 32,666.14 - 16.22
Pension of Ex-Presidents/
Ex- Presidents Widows - 0.33 - -
SAGF - 8,056.53 - 2,468.09
Personnel Services - 1,047.60 - -
Capital Outlay - 864.21 - 2,468.09
Personnel Services - 2.71 -
Maintenance and Other - -
Operating Expenses 925.01 15.05
Financial Expenses - @ -
Capital Outlay - 1,024.60 - 0.55
(Customs Duties and
Taxes) - 18,148.42 - -
25
Continuing
Current Year’s Appropriations Appropriations
Source
New General Automatic Unreleased Allotted
Motor Vehicle Users
Charge - 14,399.77 - -
Personnel Services - 12.46 -
Operating Expenses - 2,581.89 -
Capital Outlay - 11,805.42 -
Military Camp Sales
Proceeds Fund - 51.17 - 4.19
Capital Outlay - 19.70 - 4.19
AFP Modernization Act
Trust Fund - 804.89 - -
Capital Outlay - 804.89 - -
Internal Revenue
Allotment - 389,860.43 - -
Debt Service - 763,249.00 - -
Total 1,649,598.78 1,229,189.00 75,198.43 192,847.29
Personnel Services 658,445.99 33,729.24 - 813.72
Operating Expenses 520,320.03 417,691.93 31,611.82 62,516.99
Financial Expenses 1,701.06 372,863.01 100.41 244.11
Capital Outlay 469,131.70 404,904.82 43,486.20 129,272.47
 Allotments from New General Appropriations
The allotments from New General Appropriations consists of

Agency Specific Budget – P1.319 trillion or 79.95 percent and SPFs –
P330.80 billion or 20.05 percent.
Of the total allotments from Agency Specific Budget, P854.63

billion or 64.80 percent was for Current Operating Expenditures, P462.46
billion or 35.07 percent for Capital Outlays and P1.70 billion or 0.13
percent for Financial Expenses. Compared with the previous year’s level
of P1.113 trillion, this year’s released appropriations is higher by P206.12
billion or 18.52 percent.
26
Total allotments from SPFs for the year amounted to P330.80
billion. Among the SPFs, the biggest amounts were released for BSGC –
P93.14 billion, PGF – 99.03 billion, and MPBF – P84.42 billion. The
breakdown of allotments from SPFs is presented in Table III - 6 below.
Table III–6 Allotments from Special Purpose Funds, by Source

(In million pesos)
PY’s Continuing
Current
Appropriations
Year’s
Particulars Total
Appropria-
tions Unallotted Allotted
Budgetary Support to GOCCs (BSGC) 107,552.25 93,145.09 14,407.16 -

Allocation to Local Government Units
(ALGU) 18,951.33 10,512.22 8,213.40 225.70
A. MMDA 2,153.46 1,979.54 - 173.92
B. Special Shares of LGUs in the
Proceeds of National Taxes 13,572.81 5,612.72 7,958.71 1.38
C. Barangay Officials Death Benefits
Fund 23.96 23.57 - 0.40
D. Local Government Support Fund 3,201.08 2,896.40 254.69 50.00
Contingent Fund 1,349.96 914.56 4.57 430.83
DepEd School Building Program 940.05 - 818.25 121.80
E-Government Fund 2,041.40 221.13 859.43 960.84
Feasibility Studies Fund 190.64 - 170.04 20.60
International Commitments Fund 10,454.76 9,370.78 62.38 1,021.59
Miscellaneous Personnel Benefits Fund
(MPBF) 84,427.17 84,422.56 - 4.61
National Disaster Risk Reduction and
Management Fund /Calamity Fund
(NDRRMF) 11,377.98 8,906.69 58.63 2,412.66
Retirement Benefits Fund (Pension and
Gratuity Fund) – RBF (PGF) 99,041.32 99,029.13 - 12.20
Rehabilitation and Reconstruction
Fund/Program (RRF/P) 15,481.11 713.97 6,962.95 7,804.18
Unprogrammed Fund 26,171.60 23,567.80 - 2,603.79
Budgetary Support to GOCCs 502.35 472.49 - 29.86
Support to Foreign-Assisted Projects 2,573.31 - - 2,573.31
Support for Infrastructure Projects and
Social Programs 7,342.75 7,342.13 - 0.62
General Fund Adjustments (GFA) for

Use of Excess Income by Agencies 17.79 17.79 - -
Fund 14,935.40 14,935.40 - -
GFA for the Share of the ARMM
pursuant to R. A. No. 9054 800.00 800.00 - -
Total 377,979.57 330,803.95 31,556.80 15,618.81
Unallotted Continuing Appropriations – BSGC includes P9.74 billion from RA 10652.
27
 GOCCs with Budgetary Support from NG
Total allotments released as budgetary support to GOCCs reached

P131.42 billion. Among the GOCCs, the PHIC received the highest
subsidy at P36.31 billion intended for the implementation of the
National Health Insurance Program. Other GOCCs that received
budgetary support, equity investments and tax subsidies from NG are
shown in Table III - 7.
Table III-7 Budgetary Support to GOCCs, by Purpose

(In million pesos)
Budgetary Equity Tax
GOCCs Total
Support Investment Subsidy
Philippine Health Insurance
Corporation 36,314.87 36,314.87 - -
National Housing Authority 26,582.91 26,582.91 - -
National Irrigation
Administration 23,372.88 23,372.88 - -
National Food Authority 13,718.97 4,250.00 - 9,468.97
Power Sector Assets and
Liabilities Management 3,789.00 3,789.00 - -
National Electrification
Administration 3,759.15 3,759.15 - -
Light Rail Transit Authority 3,547.69 3,547.69 - -
Philippine Coconut
Authority 2,911.12 2,911.12 - -
National Power Corporation 2,000.00 2,000.00 - -
Philippine Children’s
Medical Center 1,616.26 1,616.26 - -
National Development
Company 1,588.56 1,588.56 - -
Philippine Crop Insurance
Corporation 1,300.00 1,300.00 - -
Local Water Utilities
Administration 1,187.08 1,187.08 - -
National Home Mortgage
Finance Corporation 1,000.00 1,000.00 - -
Social Housing Finance
Corporation 992.92 992.92 - -
People’s Television
Network, Inc. 992.01 100.00 892.01 -
Philippine Postal
Corporation 773.48 773.48 - -
Philippine Fisheries
Development Authority 723.86 723.86 - -
Duty Free Philippines
Corporation 691.30 - - 691.30
Development Bank of the
Philippines 599.76 - - 599.76
Philippine National
Railways 546.86 546.86 - -
28
Budgetary Equity Tax
GOCCs Total
Support Investment Subsidy
Philippine Rice Research
Institute 518.00 518.00 - -
Tourism Promotions Board 500.00 500.00 - -
Philippine Heart Center 314.79 314.79 - -
National Kidney and
Transplant Institute 256.91 256.91 - -
Cultural Center of the
Philippines 208.00 208.00 - -
Lung Center of the
Philippines 191.27 191.27 - -
Center for International
Trade Expositions and
Missions 186.44 186.44 - -
Development Academy of
the Philippines 171.79 171.79 - -
National Dairy Authority 170.47 170.47 - -
Philippine Deposit
Insurance Corporation 166.28 166.28 - -
Mactan Cebu International
Airport Authority 118.56 118.56 - -
Authority of the Freeport
Area of Bataan 100.00 - 100.00 -
Small Business Corporation 100.00 100.00 - -
Zamboanga City Special
Economic Zone Authority 100.00 50.00 50.00 -
Philippine Institute for
Development Studies 73.18 73.18 - -
Philippine Institute of
Traditional and Alternative
Health Care 50.00 50.00 - -
Quedan and Rural Credit
Guarantee Corporation 42.78 42.78 - -
Southern Philippines
Development Authority 42.03 42.03 - -
Aurora Pacific Economic
Zone and Freeport
Authority 40.00 40.00 - -
Intercontinental
Broadcasting Corporation 23.57 23.57 - -
Philippine Center for
Economic Development 13.00 13.00 - -
Credit Information
Corporation 11.25 11.25 - -
Cagayan Economic Zone
Authority 8.89 8.89 - -
Philippine National
Railways 2.94 - - 2.94
Total 131,418.85 119,613.86 1,042.01 10,762.98
29
 Allotments from Automatic Appropriations
Of the total allotments from Automatic Appropriations of P1.229

trillion, P1.153 trillion or 93.81 percent was released for Debt Service and
Internal Revenue Allotments (IRA) with P763.25 billion and P389.86
billion, respectively. IRA was released as subsidy of the NG to LGUs.
By Allotment Class, MOOE received the lion’s share of 33.98

percent or P417.69 billion, of which P389.86 billion or 93.34 percent was
allotted for IRA.
 Allotments from Continuing Appropriations
For FY 2015, the NGAs reported total allotments from Continuing

Appropriations of P268.04 billion, exhibiting an increase of P164.73
billion or 159.44 percent over last year’s level of P103.32 billion.
Of the total forwarded allotted continuing appropriations, P174.72

billion was from the Agency Specific Budget, accounting for 90.60
percent. Others were from the SPF – P15.62 billion, and Automatic
Appropriations – P2.50 billion.
For CY 2015, total allotments released from the forwarded

unallotted continuing appropriations posted at P75.20 billion, sourced
from the following: Agency Specific Budget P43.64 billion and SPF –
P31.56 billion. Included in these allotments are the releases from the
Supplemental Appropriations R. A. No. 10652 amounting to P22.45
billion.
 Allotments of Departments/Offices
The departments that reported the biggest amount of allotments are

the following: DOF – P917.81 billion, DPWH – P450.96 billion, DBM –
P410.24 billion, and DepEd – P354.65 billion. Table III - 8 shows the
Allotments by department/office and by source.
Table III-8 Allotments, by Department/Office and by Source
(In billion pesos)
Prior Years’
Unre-
Total Specific Purpose Appro- Allotted
leased
Budget Funds priations
Finance 917.811 13.321 106.055 779.282 17.292 1.861
Public Works and
Highways 450.959 330.978 5.475 14.636 30.501 69.368
Budget and
Management 410.245 1.943 8.761 390.611 8.713 0.217
30
Prior Years’
Unre-
leased
Education 354.647 271.618 40.060 22.055 2.252 18.662
Interior and Local
Government 175.690 103.690 54.553 0.555 4.240 12.652
National Defense 162.295 96.049 61.832 1.794 - 2.621
Social Welfare
and Development 142.837 107.701 14.949 0.467 4.080 15.639
Transportation
and
Communications 79.597 53.112 2.011 3.385 1.883 19.205
Health 73.696 56.486 6.371 2.380 0.089 8.369
Agriculture 56.637 41.042 1.321 1.087 0.580 12.607
State Universities
and Colleges 54.140 41.975 4.751 2.280 1.629 3.505
Autonomous
Region in Muslim
Mindanao 28.984 26.100 2.262 0.210 0.413 -
Environment and
The Judiciary 25.258 20.261 1.695 0.786 - 2.516
Science and
Technology 20.462 17.578 0.454 0.225 0.320 1.885
Agrarian Reform 15.007 10.158 0.223 0.324 - 4.302
Other Executive
Offices 17.954 10.090 0.652 2.574 0.141 4.498
Commission on
Elections 18.372 16.815 0.231 0.150 - 1.177
Foreign Affairs 16.094 12.665 1.612 0.099 0.533 1.183
Congress of the
Philippines 15.252 12.658 0.226 0.325 0.320 1.723
Justice 14.725 11.234 2.157 0.828 0.058 0.448
Labor and
Employment 14.280 11.546 0.769 0.802 - 1.164
Office of the
President 12.241 2.568 8.069 0.035 - 1.569
National
Economic and
Development
Authority 9.245 6.082 1.560 0.264 0.170 1.168
Commission on
Audit 9.313 7.754 0.707 0.757 - 0.096
Energy 7.401 3.510 0.039 1.178 - 2.674
Trade and
Industry 5.369 3.734 0.251 0.124 0.770 0.490
Tourism 3.811 2.479 0.063 1.158 - 0.111
Metropolitan
Manila
Development
Authority 2.200 - 2.022 0.004 - 0.174
31
Prior Years’
Unre-
leased
Office of the
Ombudsman 2.134 1.822 0.054 0.062 - 0.197
Civil Service
Commission 1.280 1.114 0.091 0.062 - 0.013
Presidential
Communications
Commission on
Human Rights 0.438 0.355 0.061 0.020 - 0.001
Office of the
Vice-President 0.253 0.223 0.005 0.004 - 0.021
Joint Legislative-
Executive
Councils 0.003 0.003 @ - - @
Total 3,146.834 1,318.795 330.804 1,229.189 75.198 192.847
3.3 UNRELEASED APPROPRIATIONS – P360.96 billion
The unreleased appropriations of P360.96 billion represents the

balance of the total appropriations for the year of P3.508 trillion over the
total allotments released to various national government agencies of P3.147
trillion. The unreleased balance of MOOE - P74.29 billion and CO - P92.91
billion from the current year’s New General Appropriations were retained as
continuing and are authorized to be released and used in the ensuing year.
The unreleased balance from prior year’s continuing appropriations under
R.A. No. 10633 and R. A. No. 10652 in the amount of P147.72 billion and
P17.70 billion, respectively were reverted at the end of CY 2015. Table III-9
shows the unreleased appropriations, by source and allotment class.
Table III- 9 Unreleased Appropriations, By Source and Allotment Class

(In million pesos)
Current Year’s Continuing
Source Appropriations
Appropriations
New General Appropriations 213,225.87 147,720.65
Personnel Services 46,021.86 -
Maintenance and Other Operating Expenses 74,292.99 22,359.04
Financial Expenses - -
Capital Outlay 92,911.02 125,361.61
Agency Specific Budget 28,583.74 10,616.15
Personnel Services 404.67 -
32
Source Appropriations
Appropriations
Financial Expenses - -
Capital Outlay 26,475.56 3,925.54
Special Purpose Funds 184,642.13 137,104.50
Personnel Services 45,617.19 -
Capital Outlay 66,435.46 121,436.07
Supplemental Appropriations, RA 10652 - 17.70
Maintenance and Other Operating Expenses - 17.70
Capital Outlay - @
Total 213,225.87 147,738.36
 Unreleased Appropriations from SPFs
For CY 2015, the unreleased balances from MOOE of SPFs RRF

and NDRRMF under prior year’s continuing appropriations, R. A. No.
10633, registered negative balances of P1.36 billion and P17.60
million, respectively due to the absence of the proper budgetary
documents to support the realignment of unreleased balance of
appropriations from CO to MOOE for the said SPFs. The unreleased
balances from SPFs under R. A. No. 10651 and R. A. No. 10633 are
shown in Table III - 10.
Table III-10 Unreleased Appropriations from Special

Purpose Funds, by Fund
(In million pesos)
Prior Year’s
Current Year’s
Continuing
Particulars Total Appropriations
Appropriations
R. A. No. 10651
R. A. No. 10633
Budgetary Support to GOCCs

(BSGC) 7,432.06 6,528.06 904.00
Maintenance and Other Operating
Expenses 6,550.06 6,528.06 22.00
Capital Outlay 882.00 - 882.00
Allocation to Local Government
Units (ALGU) 26,390.09 22,959.07 3,431.02
Expenses 26,322.34 22,891.32 3,431.02
Capital Outlay 67.75 67.75 -
A. MMDA 208.75 208.75 -
Operating Expenses 141.00 141.00 -
33
Prior Year’s
Current Year’s
Continuing
Appropriations
R. A. No. 10651
R. A. No. 10633
B. Special Shares of LGUs in
the Proceeds of National
Taxes 25,394.43 22,291.33 3,103.10
Operating Expenses 25,394.43 22,291.33 3,103.10
- Share in Tobacco
Excise Tax pursuant to
R.A. No. 7171 (Virginia
Tobacco) 10,190.97 10,190.97 -
- Share in Tobacco
Excise Tax pursuant to
R.A. No. 10351 (Burley
and Native Tobacco) 503.88 503.88 -
- Share in the Utilization
and Development of
National Wealth under
R. A. No. 7160 and R.
A. No. 9513 1,731.95 1,101.72 630.23
- Share in the Gross
Income Taxes paid by
all Businesses and
Enterprises within the
ECOZONES pursuant
to R. A. No. 7922 1.23 0.97 0.26
- Share in Value Added
Tax pursuant to R. A.
No. 7643 12,950.42 10,492.87 2,457.55
- Share in Value Added
Tax in Lieu of
Franchise Tax pursuant
to R. A. No. 7953 and
R. A. No. 8407 15.97 0.92 15.06
- Prior Year’s
Obligations @ @ @
C. Barangay Officials Death
Benefits Fund 54.04 26.43 27.60
Operating Expenses 54.04 26.43 27.60
D. Local Government Support
Fund 332.87 232.56 100.31
E. Special Shares of LGUs in
the Proceeds of Fire Code
Fees 400.00 200.00 200.00
Contingent Fund 1,086.34 1,085.44 0.90
Expenses 81.34 80.44 0.90
Capital Outlay 1,005.00 1,005.00 -
34
Prior Year’s
Current Year’s
Continuing
Appropriations
R. A. No. 10651
R. A. No. 10633
DepEd School Building Program @ - @
Capital Outlay @ - @
E-Government Fund 1,372.27 778.87 593.41
Expenses 687.47 191.71 495.76
Capital Outlay 684.81 587.16 97.65
Feasibility Studies Fund 27.62 - 27.62
Expenses 27.62 - 27.62
International Commitments Fund 1,437.61 1,353.86 83.75
Expenses 327.49 243.74 83.75
Capital Outlay 1,110.12 1,110.12 -
Miscellaneous Personnel Benefits
Fund (MPBF) 19,429.84 19,429.84 -
Personnel Services 19,429.84 19,429.84 -
National Disaster Risk Reduction and
Management Fund /Calamity Fund
(NDRRMF) 5,099.21 5,093.31 5.90
Expenses 1,751.48 1,769.08 (17.60)
Capital Outlay 3,347.73 3,324.22 23.50
Retirement Benefits Fund (Pension
and Gratuity Fund) – RBF (PGF) 27,639.37 27,639.37 -
Personnel Services 26,187.35 26,187.35 -
Expenses 1,452.02 1,452.02 -
Program (RRF) 4,567.33 286.03 4,281.30
Expenses (1,192.02) 166.03 (1,358.04)
Capital Outlay 5,759.34 120.00 5,639.34
Unprogrammed Fund 227,264.89 99,488.28 127,776.61
Expenses 52,250.12 39,267.08 12,983.04
Capital Outlay 175,014.77 60,221.20 114,793.57
- Budgetary Support to
GOCCs 8,043.80 5,060.76 2,983.04
Operating Expenses 8,033.29 5,050.25 2,983.04
- Support to Foreign-
Assisted Projects 3,095.32 3,095.32 -
Capital Outlay 2,595.32 2,595.32 -
- Support for Infrastructure
Projects and Social
Programs 32,613.81 12,657.87 19,955.94
35
Prior Year’s
Current Year’s
Continuing
Appropriations
R. A. No. 10651
R. A. No. 10633
Capital Outlay 32,575.42 12,619.48 19,955.94
- AFP Modernization
Program 10,055.57 10,000.00 55.57
Capital Outlay 9,555.57 9,500.00 55.57
- Debt Management Program 1,000.00 - 1,000.00
Capital Outlay 1,000.00 - 1,000.00
- Risk Management Program 50,000.00 30,000.00 20,000.00
Operating Expenses 10,000.00 10,000.00 -
Capital Outlay 40,000.00 20,000.00 20,000.00
- Disaster Relief and
Mitigation Fund 3,000.00 - 3,000.00
Operating Expenses 3,000.00 - 3,000.00
- General Fund Adjustments
(GFA) for Use of Excess
Income by Agencies 464.27 182.21 282.06
Capital Outlay 364.43 82.37 282.06
- Payment of Taxes under
BOT Contract of MRT 3 6,520.00 6,520.00 -
- Rehabilitation and
Reconstruction
Fund/Program 85,064.60 5,064.60 80,000.00
Operating Expenses 7,174.60 674.60 6,500.00
Capital Outlay 77,890.00 4,390.00 73,500.00
- Peoples’s Survival Fund 500.00 - 500.00
Operating Expenses 500.00 - 500.00
- MRT 3 Rehabilitation and
Reconstruction Fund 7,428.76 7,428.76 -
Capital Outlay 3,428.76 3,428.76 -
- Trade Remedies Fund 4,384.00 4,384.00 -
- Share of the DOH from the
Incremental Revenue from
Excise Tax 10,694.75 10,694.75 -
36
Prior Year’s
Current Year’s
Continuing
Appropriations
R. A. No. 10651
R. A. No. 10633
Capital Outlay 3,194.75 3,194.75 -
- Equity Value Buy-out of
the Metro Rail Transit
Corporation 4,400.00 4,400.00 -
Capital Outlay 4,400.00 4,400.00 -
Total 321,746.64 184,642.13 137,104.50
 CY 2015 Unreleased Appropriations vs. CY 2014
Compared to the previous year’s level of P347.75 billion, this

year’s unreleased appropriations increased by P13.21 billion or 3.80
percent. As shown in Table III - 11, the decrease in unreleased balance
of current year’s appropriations in the amount of P16.77 billion was
partly offset by the increase in unreleased balance of prior year’s
continuing appropriations of P29.98 billion.
Table III-11 Comparative Unreleased Appropriations, by Source

(In million pesos)
Amount
2015 2014
(Decrease)
Current Year’s Appropriations 213,225.87 230,000.49 (16,774.62) (7.29)
New General Appropriations 213,225.87 207,532.88 5,692.99 2.74
Agency Specific Budget 28,583.74 42,279.40 (13,695.66) (32.39)
Supplemental Appropriations - 22,467.61 (22,467.61) (100.00)
Prior Years’ Continuing
Appropriations 147,738.36 117,754.28 29,984.08 25.46
Agency Specific Budget 10,616.15 11,305.66 (689.51) (6.10)
Special Account in the
-
General Fund 0.80 (0.80) (100.00)
Supplemental Appropriations 17.70 293.16 (275.45) (93.96)
Total 360,964.23 347,754.77 13,209.46 3.80
 Unreleased Appropriations of Departments/Offices
Leading the list of departments with unreleased balance of

appropriations is the DPWH with P19.52 billion of which, P15.89 billion
was from the current year’s appropriations. The DAR ranked second
with unreleased balance of P5.41 billion of which, P5.31 billion was from
prior year’s continuing appropriations. Table III – 12 presents the
unreleased appropriations of the departments/offices for CY 2015.
37
Table III-12 Unreleased Appropriations, by Department/Office
(In million pesos)
PY’s
Continuing
Appropria-
Department/Office Total
tions
For For For
Total
Reversion Retention Reversion
Public Works and
Highways 19,518.79 15,887.58 - 15,887.58 3,631.22
Agrarian Reform 5,413.56 101.00 - 101.00 5,312.56
National Defense 4,076.06 3,876.06 - 3,876.06 200.00
Health 3,492.89 3,492.89 0.35 3,492.54 -
Environment and Natural
Resources 1,299.37 70.69 - 70.69 1,228.68
Education 1,220.25 1,215.25 0.38 1,214.87 5.00
Interior and Local
Government 1,016.05 982.35 247.35 735.00 33.70
Agriculture 1,007.52 896.50 896.50 111.02
Finance 613.45 542.16 0.70 541.46 71.29
Other Executive Offices 493.76 493.76 - 493.76 -
State Universities and
Colleges 323.33 304.32 7.33 296.99 19.01
Foreign Affairs 290.05 290.05 - 290.05 -
National Economic and
Development Authority 190.48 190.48 - 190.48 -
Presidential
Communications
Operations Office 123.83 123.83 123.83 - -
Justice 91.58 91.58 - 91.58 -
Autonomous Region in
Muslim Mindanao 20.45 20.45 20.45 - -
Labor and Employment 6.28 4.28 4.28 - 2.00
Science and Technology 1.66 - - - 1.66
Energy 0.50 0.50 0.50
Special Purpose Funds 321,746.64 184,642.13 45,617.19 139,024.94 137,104.50
Supplemental
Appropriations 17.70 - - - 17.70
Total 360,964.23 213,225.87 46,021.86 167,204.01 147,738.36
3.4 OBLIGATIONS – P2.554 trillion
Obligations are acts of duly authorized officials which bind the

government to the immediate or eventual payment of a sum of money.
Obligations may also be referred to as commitments that encompass possible
future liabilities based on current contractual agreements. For CY 2015, total
obligations incurred by NGAs amounted to P2.554 trillion, representing
81.16 percent of the available allotments of P3.147 trillion. By allotment
class, the breakdown of the total obligations is as follows: PS – P681.99
billion, MOOE – P935.16 billion, FE – P259.01 billion, and CO – P677.86
billion. Chart III - 3 shows the breakdown of obligations by allotment class.
38
Chart III-3 Obligations, by Allotment Class
MOOE
P 935.16B
36.62%
FE
P259.01B
10.14%
PS
P681.99B
26.70% CO
P677.86B
26.54%
 Obligations by Funding Source
Total obligations of P2.554 trillion was funded from current

year’s appropriations - P2.356 trillion and prior years’ continuing
appropriations - P198.11 billion. Of the total obligations, 33.25 percent
or P849.32 billion was incurred for Debt Service and IRA. Total
obligations for Debt Service reported by DOF grossed at P459.46 billion,
consisting of P257.26 billion for interest payment including commitment
fees, bank charges and other financial charges, and P202.20 billion for
principal repayments. The DBM, being the administrator of the CY 2015
funds for LGUs, reported total obligations for payment of IRA at P389.86
billion.
Table III – 13 shows the Obligations, by source and allotment

class.
Table III-13 Obligations, By Source and Allotment Class
(In million pesos)
Source
Unreleased Allotted
Financial Expenses 1,523.97 - - 127.14
Capital Outlay 339,596.45 - 25,996.30 72,580.25
39
Source
Unreleased Allotted
Capital Outlay 3,930.46 - 6,030.84 7,680.77
Supplemental Appropriations,
RA 10652 - - 21,759.57 -
Automatic Appropriations - 919,320.97 - 1,999.59
Retirement and Life Insurance
Premium (RLIP) - 31,423.86 - 12.78
SAGF - 7,276.35 - 1,967.24
Personnel Services - 1,044.05 - -
Financial Expenses - @ - -
Capital Outlay - 750.17 - 1,967.24
Operating Expenses - 646.89 - 15.05
Financial Expenses - @ - 0.55
(Customs Duties and Taxes) - 18,146.91 - -
Military Camp Sales Proceeds
Fund - 39.92 - 3.97
AFP Modernization Act Trust
Fund - 56.51 - -
Internal Revenue Allotment - 389,858.35 - -
Debt Service - 459,458.94 - -
Total 1,436,591.83 919,320.97 70,429.69 127,676.71
40
 CY 2015 Obligations vs. CY 2014
This year’s obligations is P326.48 billion or 14.66 percent more than

the CY 2014 level of P2.228 trillion. The decrease in obligated allotments from
Automatic Appropriations of P45.63 billion was partly offset by the increase in
total obligations from the New General Appropriations of P238.68 billion or
19.92 percent and prior year’s continuing appropriations of P133.44 billion or
206.36 percent. Table III – 14 shows the comparison of obligations for CYs
2015 and 2014.
Table III-14 Comparative Obligations, by Source

(In million pesos)
Amount
2015 2014
(Decrease)
Current Year’s
2,355,912.80 2,162,867.66 193,045.14 8.93
Appropriations
New General
1,436,591.83 1,197,911.70 238,680.13 19.92
Appropriations
Agency Specific
1,115,442.05 929,085.34 186,356.71 20.06
Budget
Automatic Appropriations 919,320.97 964,955.96 (45,634.99) (4.73)
Continuing
198,106.40 64,664.72 133,441.68 206.36
Appropriations
Total 2,554,019.21 2,227,532.38 326,486.82 14.66
 Overdraft in Allotments
Of the aggregate obligations of P2.554 trillion, P1.13 billion is not

covered by allotments, the breakdown by allotment class is as follows:
PS – P8.71 million, MOOE – P1.08 billion and CO – P46.31 million.
The overdrafts were mostly incurred by NGAs due to failure to

request for the release of allotments for the deficiency in their PS
requirements, and for payment of other benefits without the authorized
realignment of allotments from MOOE to PS. The overdrafts incurred by
BTr-NG and MMDA were due to the erroneous recording of
appropriations for ICF and ALGU-MMDA, respectively, as fully
released. Releases from SPF are covered by Special Allotment Release
Orders (SAROs). The NGAs which incurred overdraft for FY 2015 are
shown in Table III - 15, below.
41
Table III-15 Obligations Not Covered by Allotments
(in thousand pesos)
Agencies Total PS MOOE CO
Environment and
Natural Resources 3,382.06 3,382.06 - -
Environmental
Management Bureau 3,382.06 3,382.06 - -
Finance 1,012,524.63 - 1,012,524.63 -
Bureau of the
Treasury (NG) 1,012,524.63 - 1,012,524.63 -
Justice 4,903.81 4,903.81 - -
Bureau of Corrections 4,378.59 4,378.59 - -
Office of the Solicitor
General 525.22 525.22 - -
Social Welfare and
Development 387.39 387.39 - -
Inter-Country
Adoption Board 387.39 387.39 - -
Other Executive Offices 34.60 34.60 - -
Commission on
Higher Education 34.60 34.60 - -
Metropolitan Manila
Development
Authority 109,883.44 - 63,571.49 46,311.95
Total 1,131,115.92 8,707.85 1,076,096.12 46,311.95
 Obligations Incurred by Departments/Offices
Among the departments/offices, the DOF, DBM, DPWH, DepEd,

and DILG reported the highest obligations at P610.54 billion, P409.45
billion, P351.26 billion, P309.90 billion and P168.68 billion,
respectively. Table III - 16 shows the Obligations of the
departments/offices for FY 2015.
Table III-16 Obligations, by Department/Office

(In billion pesos)
Prior Years’
Appropriations
Department/ Office
Agency Special Automatic
Unre-
leased
Finance 610.544 10.559 107.043 475.399 17.101 0.442
Budget and
Management 409.446 1.376 8.551 390.603 8.713 0.203
Public Works and
Highways 351.259 266.853 3.043 12.063 28.173 41.127
Education 309.900 238.340 37.397 21.196 1.212 11.755
Interior and Local
Government 168.678 97.882 54.527 0.504 4.164 11.600
42
Prior Years’
Appropriations
Department/ Office
Unre-
leased
Social Welfare and
Development 124.338 92.846 13.540 0.399 4.059 13.494
Health 64.511 48.338 5.992 2.250 0.089 7.841
State Universities
and Colleges 47.572 36.199 4.656 2.192 1.419 3.106
Agriculture 46.380 35.110 1.114 1.038 0.578 8.541
Transportation and
Communications 44.626 28.695 1.992 3.018 1.814 9.107
Autonomous Region
in Muslim
Mindanao 28.887 26.003 2.262 0.210 0.413 -
Environment and
The Judiciary 20.688 17.979 1.683 0.782 - 0.244
Science and
Technology 16.955 14.245 0.371 0.223 0.319 1.797
Other Executive
Offices 16.375 9.073 0.637 2.503 0.125 4.037
Foreign Affairs 14.594 11.444 1.600 0.099 0.511 0.939
Justice 13.862 10.539 2.100 0.807 0.057 0.358
Labor and
Employment 13.362 10.736 0.756 0.798 - 1.072
Commission on
Elections 12.987 12.174 0.231 0.150 - 0.432
Congress of the
Philippines 12.415 10.052 0.218 0.324 0.320 1.501
Commission on
Audit 8.757 7.515 0.707 0.444 - 0.092
Office of the
President 8.563 1.846 5.275 0.035 - 1.408
Agrarian Reform 8.402 6.854 0.222 0.262 - 1.064
National Economic
and Development
Authority 7.727 4.812 1.542 0.251 0.148 0.973
Trade and Industry 4.122 3.311 0.248 0.114 - 0.448
Tourism 3.581 2.308 0.051 1.155 - 0.067
Energy 2.828 0.808 0.039 0.700 - 1.280
Metropolitan Manila
Development
Authority 2.245 - 2.132 0.002 - 0.111
Office of the
Ombudsman 1.796 1.573 0.054 0.060 - 0.109
Civil Service
Commission 1.213 1.048 0.091 0.061 - 0.013
Presidential
Communications
Commission on
Human Rights 0.432 0.349 0.061 0.020 - 0.001
43
Prior Years’
Appropriations
Department/ Office
Unre-
leased
Office of the Vice-
President 0.229 0.214 0.005 0.004 - 0.007
Joint Legislative-
Executive Councils 0.002 0.002 @ - - @
Total 2,554.019 1,115.442 321.150 919.321 70.430 127.677
5. UNOBLIGATED BALANCE – P593.94 billion
The unobligated balance of allotments amounting to P593.94 billion

refers to the variance between total allotments of P3.147 trillion and
obligations covered by allotments of P2.553 trillion. Out of this balance,
P209.28 billion was retained as continuing allotments and are authorized to
be used in the following year. The breakdown of extended allotments are as
follows: PS – P1.79 billion, MOOE – P80.04 billion, FE – P177.09 million,
and CO – P127.27 billion.
 CY 2015 Unobligated Balance vs. CY 2014
Compared with last year’s unobligated balance of P502.44 billion,

this year’s amount is higher by P91.51 billion or 18.21 percent. The
balances of current year and prior years’ continuing appropriations both
posted an increment of P60.22 billion or 12.99 percent and P31.29 billion
or 80.94 percent, respectively. Except for the balance from SPFs which
posted a decrease of P8.71 billion or 44.70 percent, all other sources
registered increase of amounts in unobligated balances. Table III – 17
shows the comparison of CY 2015 and CY 2014 unobligated balances.
Table III-17 Comparative Unobligated Balance by Source

(In million pesos)
Amount
2015 2014
(Decrease)
Current Year’s
524,006.09 463,781.67 60,224.42 12.99
Appropriations
Agency Specific Budget 203,357.77 183,709.42 19,648.35 10.70
Special Purpose Funds 10,779.80 19,494.60 (8,714.80) (44.70)
Automatic Appropriations 309,868.53 260,577.65 49,290.88 18.92
Total 593,945.42 502,435.35 91,510.06 18.21
44
 Funding Source of Unobligated Balances
The unobligated balance of P593.94 billion at the end of CY 2015 was

sourced from current year’s appropriations – P524.01 billion and prior years’
continuing appropriations – P69.94 billion. By allotment class, the breakdown
is as follows: PS – P11.01 billion, MOOE - P98.06 billion, FE – P115.90 billion
and CO – P368.98 billion. Table III - 18 shows the unobligated balance by
source and by allotment class.
Table III-18 Unobligated Balance, By Source and Allotment Class

(In million pesos)
Current Year’s Appropriations Continuing
Appropriations
Source
Unreleased Allotted
General Appropriations 214,137.57 - 4,078.41 64,666.06
Agency Specific Budget 203,357.77 - 3,572.81 62,894.06
Operating Expenses 74,327.08 - 77.59 17,174.95
Financial Expenses 177.09 - 116.97
Capital Outlay 122,864.51 - 3,495.22 42,256.32
Special Purpose Funds 10,779.80 - 505.61 1,772.00
Operating Expenses 4,576.91 - 74.20 482.36
Capital Outlay 2,786.59 - 431.41 1,282.29
Supplemental Appropriations,
RA 10652 - - 690.33 -
Maintenance and Other - - -
Operating Expenses 129.54
Financial Expenses - - @ -
Capital Outlay - 560.79 -
Automatic Appropriations - 309,868.53 - 504.52
Retirement and Life Insurance
Premium (RLIP) - 1,242.77 - 3.44
SAGF - 780.18 - 500.85
Personnel Services 3.55 - -
Maintenance and Other - -
Operating Expenses - 662.58
Capital Outlay - 114.04 500.85
Grants and Donations - 422.24 - -
Maintenance and Other - - -
Operating Expenses 278.12
Financial Expenses - - - -
(Customs Duties and Taxes) - 1.51 - -
Maintenance and Other - 1.51 - -
Operating Expenses
45
Current Year’s Appropriations Continuing
Appropriations
Source
Unreleased Allotted
Military Camp Sales Proceeds
Fund - 11.25 - 0.23
AFP Modernization Act Trust
Fund - 748.38 - -
Internal Revenue Allotment - 2.08 - -
Debt Service - 303,790.06 - -
Total 214,137.57 309,868.53 4,768.74 65,170.58
 Unobligated Balances of Departments/Offices
The DOF reported the biggest amount of unobligated balance at P308.28

billion, sourced from: New General Appropriations – P2.79 billion,
Automatic Appropriations – P303.88 billion and Continuing Appropriations -
P1.61 billion. Of the Automatic Appropriations, P303.79 billion or 99.97
percent was for Debt Service of which, P188.19 billion is for principal
amortization and P115.60 billion for payment of interest. Table III – 19
shows the unobligated balances of the departments/offices by funding source.
Table III-19 Unobligated Balance, by Department/Office

(In billion pesos)
Current Year Appropriations Appropriations
Department/ Office Agency Special Automatic
Unre-
leased
Finance 308.279 2.762 0.024 303.883 0.191 1.419
Public Works and
Highways 99.700 64.125 2.432 2.573 2.328 28.241
Education 44.747 33.278 2.663 0.859 1.039 6.908
Transportation and
Communications 34.971 24.417 0.020 0.368 0.069 10.098
Social Welfare and
Development 18.499 14.856 1.409 0.068 0.022 2.145
Agriculture 10.257 5.932 0.208 0.050 0.002 4.066
Health 9.185 8.148 0.379 0.130 0.528
Interior and Local
Government 7.013 5.808 0.026 0.051 0.076 1.051
46
Current Year Appropriations Appropriations
Department/ Office Agency Special Automatic
Unre-
leased
Colleges 6.568 5.776 0.095 0.087 0.210 0.400
Agrarian Reform 6.605 3.304 0.002 0.061 - 3.238
Commission on
Elections 5.386 4.641 - - - 0.745
Energy 4.572 2.701 @ 0.477 1.394
The Judiciary 4.570 2.282 0.012 0.004 - 2.272
Office of the President 3.678 0.722 2.794 @ - 0.161
Science and
Technology 3.507 3.333 0.082 0.002 0.002 0.088
Environment and
Natural Resources 3.222 2.489 0.009 0.050 @ 0.674
Congress of the
Philippines 2.837 2.606 0.008 0.001 @ 0.221
Other Executive
Offices 1.580 1.017 0.015 0.070 0.016 0.462
National Economic
and Development
Authority 1.518 1.270 0.017 0.013 0.021 0.196
Foreign Affairs 1.499 1.220 0.013 @ 0.022 0.244
Trade and Industry 1.247 0.423 0.003 0.009 0.770 0.042
Labor and
Employment 0.918 0.809 0.013 0.004 - 0.092
Justice 0.868 0.699 0.058 0.021 0.001 0.089
Budget and
Management 0.799 0.568 0.210 0.007 @ 0.013
Commission on Audit 0.556 0.239 @ 0.313 - 0.003
Office of the
Ombudsman 0.339 0.249 @ 0.002 - 0.088
Tourism 0.230 0.171 0.012 0.003 0.044
Autonomous Region
in Muslim Mindanao 0.097 0.097 - - - -
Civil Service
Commission 0.067 0.066 @ 0.001 - -
Metropolitan Manila
Development
Authority 0.065 - @ 0.002 - 0.063
Office of the Vice-
President 0.024 0.009 @ @ - 0.015
Presidential
Communications
Operations Office 0.006 0.003 @. 0.002 - 0.001
Commission on 0.006 0.006 - - - -
Human Rights
Joint Legislative-
Executive Councils 0.001 0.001 - - - @
Total 593.945 203.358 10.780 309.868 4.769 65.171
47
IV. CURRENT SURPLUS OF
THE NATIONAL
GOVERNMENT
CURRENT SURPLUS OF THE NATIONAL GOVERNMENT
1. Legal Framework
Section 2 (1), Article IX-D of the 1987 Philippine Constitution mandates the
Commission on Audit to “keep the general accounts of the Government x x x.”
This is an exceptional set-up, where the COA is mandated by the Constitution

itself to perform a limited accounting function, because, ordinarily, an Audit Office
does not carry out accounting functions. This is otherwise known as the limited
accounting function of COA. In charge of the actual performance of this
constitutionally-mandated duty is the Government Accountancy Sector (GAS) of the
Commission.
The phrase “general accounts” mentioned in the Charter provision, is construed

to refer to the books of the Unappropriated Surplus of the General Fund of the
National Government now being maintained by the GAS thru the Registry of
Appropriations and Allotments (RAPAL), Registry of Appropriations and Transfers
for Special Purpose Funds (RATSPF), Registry of Allotments, Obligations and
Disbursements (RAOD), Registry of Revenue (RR) and Registry of Overdraft (RD)
prescribed under COA Resolution No. 2014-022 dated September 12, 2014.
These Registries, show at any time the amounts of the: (1) revenues generated
by the NGAs that accrue to the General Fund, including grants, (2) domestic and
foreign loans of the National Government, (3) appropriations authorized by the
Congress, (4) allotments released by the Department of Budget and Management
(DBM) to the various agencies of the government out of the authorized
appropriations, (5) obligations incurred and paid by the agencies out of the released
allotments, and (5) unreleased and unobligated balances of the authorized
appropriations.
The amounts of appropriations and allotments in the RAPAL and RATSPF are
reconciled periodically with the data of the DBM and with the NGAs Quarterly
Budget and Financial Accountability Reports prescribed in COA-DBM Joint Circular
No. 2013-1 dated March 13, 2013, and as modified under COA-DBM Joint Circular
No. 2014-1 dated July 2, 2014.
At the end of the year, based on the Registries, the GAS prepares the overall
Statement of Appropriations, Allotments, Obligations, Disbursements and Balances
and the Statement of Current Surplus, which form an integral part of the Annual
Report on Appropriations, Allotments, Obligations and Disbursements (ARAAOD)
and the Annual Financial Report (AFR) of the National Government.
The ARAAOD is for submission to the President of the Philippines and the
Congress not later than April 30 after the end of every fiscal year pursuant to R.A.
No. 7226 dated March 12, 1992 and the Special Provisions on COA in the General
Appropriations Act. On the other hand, the AFR is for submission to the President of
the Philippines and the Congress not later than September 30 of the ensuing year.
48
2. Current Surplus of the National Government
The Current Surplus of the National Government is the net balance of the combined
figures of the following components: Unappropriated Surplus, Unallotted and Allotted
Continuing Appropriations, and Overdraft in Allotments.
For FY 2015, the overall ending balance of the Current Surplus amounted to P128.26
billion, broken down as follows: Unappropriated Surplus – (P246.86) billion, Unallotted
Continuing Appropriations – P167.20 billion, Allotted Continuing Appropriations –
P209.28 billion, and Overdraft in Allotments – (P1.36) billion.
Current Surplus of the National Government

(in million pesos)
Unallotted Allotted Overdraft
Total Current Unappropriated
Description Continuing Continuing in
Surplus Surplus
Appropriations Appropriations Allotments
Beginning (214,656.76) (887,407.18) 218,259.62 454,724.36 (233.57)

Balance
Adjustments (38,779.09 218,420.81 4,677.17 (261,877.07) -
Adjusted
Beginning
Balance (253,435.85) (668,986.37) 222,936.79 192,847.29 (233.57)
Add: Revenue 2,036,467.83 2,036,467.83
Borrowings 899,244.31 899,244.31 - - -
Issuance of
Bills 603,114.79 603,114.79 - - -
Issuance of
Bonds 202,920.03 202,920.03 - - -
Loan
Proceeds 93,209.49 93,209.49 - - -
Sub-total 2,682,276,29 2,266,725.78 222,936.79 192,847.29 (233.57)
Obligations (2,554,019.21) (2,354,781.69) (70,429.69) (127,676.71) (1,131.12)
Sub-total 128,257.08 (88,055.91) 152,507.10 65,170.58 (1,364.68)
Reversion of
Continuing
- 214,569.14 (152,507.10) (62,062.03) -
Appropriations
Sub-total 128,257.08 126,513.22 - 3,108.54 (1,364.68)
Retention of
Continuing - (373,374.83) 167,204.01 206,170.82 -
Appropriations
Ending Balances 128,257.08 (246,861.61) 167,204.01 209,279.37 (1,364.68)
 Unappropriated Surplus – P(246.86) billion
The Unappropriated Surplus is a conglomeration of various accounts

transactions that transpired during the year, such as: revenues, borrowings,
obligations, adjustments, reversions and retentions of unallotted and allotted
continuing appropriations.
49
From its beginning balance of (P887.41) billion, it ended to (P246.86) billion
brought about by the following transactions: Adjustments – P218.42 billion, Revenue
– P2.036 trillion, Borrowings – P899.24 billion, Obligations covered by allotment
from current year’s appropriations – (P2.355) trillion, and reversions and retentions of
Unallotted and Allotted Continuing Appropriations at P214.57 billion and (P373.37)
billion, respectively.
 Unallotted Continuing Appropriations – P167.20 billion
The Unallotted Continuing Appropriations refers to the unreleased balance of

the total appropriations for which no allotment release orders were issued nor
comprehensive release were approved by the DBM.
From its beginning balance of P218.26 billion, the year-end balance registered at
P167.20 billion brought about by the following: Adjustments in the beginning balance
- P4.68 billion, Obligations – (P70.43) billion, Reversion – (P152.51) billion, and
Retention – P167.20 billion. The breakdown by department/office and by agency is
on pages 339-349, Schedule 3, Volume II of this Report.
 Allotted Continuing Appropriations – P209.28 billion
This component of the Current Surplus pertains to the released portion of

appropriations which remained unexpended or unobligated at the end of the year.
From its beginning balance of P454.72 billion, the year-end balance amounted
to P209.28 billion brought about by the following: Adjustments in the beginning
balance – (P261.88) billion, Obligations – (P127.68) billion, Reversion – (P62.06)
billion, and Retention – P206.17 billion. The breakdown by department/office and by
agency is on pages 339-349, Schedule 3, Volume II of this Report.
 Overdraft in Allotments – (P1.36) billion
Obligations incurred in excess of allotments is another kind of transactions

affecting the Current Surplus. Total overdraft in allotments of (P1.36) billion consists
of the obligations not covered by allotments incurred by NGAs in CY 2012 - (P81.59)
million, CY 2013 – (P3.26) million, CY 2014 – (P148.72) million, and CY 2015 –
P(1.13) billion. The breakdown by department/office and by agency is on pages 350-
351, Schedule 4, Volume II of this Report.
50
V. FINANCIAL
STATEMENTS
National Government of the Republic of the Philippines
Statement of Financial Position
As of December 31, 2015
(in thousand pesos)
CY 2014
Note CY 2015 Restated
ASSETS
Current Assets
Cash and Cash Equivalent 4 584,634,757.90 749,293,625.88
Investments 5 51,316,627.14 88,814,442.28
Receivables 6 866,741,376.47 811,296,624.77
Inventories 7 52,831,933.79 40,051,211.66
Other Current Assets 8 79,271,262.54 50,901,118.61
Total Current Assets 1,634,795,957.84 1,740,357,023.19
Non-Current Assets
Investments 9 1,062,175,235.39 1,097,986,798.70
Receivables 10 202,882,945.13 203,007,417.69
Investment Property 11 3,547,095.49 77,622.47
Property, Plant and Equipment 12 1,750,469,581.09 1,300,239,656.06
Biological Assets 13 2,148,650.97 2,152,083.72
Intangible Assets 14 2,068,924.22 756,497.27
Other Non-Current Assets 15 159,557,194.90 144,729,053.27
Total Non-Current Assets 3,182,849,627.20 2,748,949,129.18
TOTAL ASSETS 4,817,645,585.04 4,489,306,152.37
LIABILITIES
Current Liabilities
Financial Liabilities 16 1,021,849,156.54 630,067,985.84
Inter-Agency Payables 17 119,464,115.43 178,064,503.31
Intra-Agency Payables 18 9,539,367.17 6,322,528.82
Trust Liabilities 19 39,131,369.37 28,131,363.14
Other Payables 20 37,851,338.33 96,400,743.38
Deferred Credits/Unearned Income 21 4,708,142.31 4,829,063.91
Total Current Liabilities 1,232,543,489.15 943,816,188.39
Non-Current Liabilities
Financial Liabilities 22 5,046,466,740.45 5,166,145,007.68
Trust Liabilities 23 11,675,566.09 11,741,821.77
Deferred Credits/Unearned Income 24 17,089,728.76 16,811,788.46
Other Payables 25 46,550,782.36 38,854,908.85
Total Non-Current Liabilities 5,121,782,817.66 5,233,553,526.76
TOTAL LIABILITIES 6,354,326,306.81 6,177,369,715.15
NET ASSETS (1,536,680,721.77) (1,688,063,562.78)
NET ASSETS/EQUITY
Government Equity 27 (1,557,992,476.94) (1,688,063,562.78)
Accumulated Surplus/(Deficit) (1,558,000,476.94) (1,688,063,562.78)
Contributed Capital 8,000.00 -
Unrealized Gain/(Loss) 21,311,755.17 -
NET ASSETS/EQUITY (1,536,680,721.77) (1,688,063,562.78)

The above statement should be read in conjunction with the accompanying notes.
51
Statement of Financial Performance
For the Year Ended December 31, 2015
(in thousand pesos)
2014
Note 2015 Restated
REVENUE
Tax Revenue 28 1,824,312,151.81 1,715,746,366.90
Service and Business Income 29 204,555,675.35 162,820,677.01
Shares, Grants and Donations 30 48,233,356.49 55,310,766.14
Miscellaneous Income 31 7,529.36 276.59
Gains 32 35,460.03 51,401.69
Total Revenue 2,077,144,173.04 1,933,929,488.33
Less: Current Operating Expenses

Personnel Services 33 692,455,298.88 636,823,494.85
Maintenance and Other Operating Expenses 34 234,286,122.53 190,975,409.24
Financial Expenses 35 397,711,640.89 325,094,588.30
Non-Cash Expenses 36 82,611,773.30 20,808,895.71
Total Current Operating Expenses 1,407,064,835.61 1,173,702,388.10
Surplus/(Deficit) from Current Operations 670,079,337.43 760,227,100.22
Net Financial Assistance/Subsidy 37 (597,815,929.81) (541,278,568.08)

Sale of Assets 38 906,586.61 817,833.41
Gains 38 24,200,634.48 40,114,664.13
Losses 39 (100,627,510.30) (1,316,244.52)
Surplus/(Deficit) for the period 40 (3,256,881.59) 258,564,785.16

The above statement should be read in conjunction with the accompanying notes
52
Statement of Cash Flows
(in thousand pesos)
2014
Note 2015 Restated
Cash Flows From Operating Activities

Cash Inflows 41 4,194,728,887.32 3,859,025,658.69
Cash Outflows 42 3,909,218,804.52 3,374,150,722.82
Net Cash Provided by (Used in) Operating Activities 285,510,082.80 484,874,935.86
Cash Flows from Investing Activities

Cash Inflows 43 175,075,866.91 150,115,698.30
Cash Outflows 44 320,073,904.49 280,474,111.77
Net Cash Provided by (Used in) Investing Activities (144,998,037.58) (130,358,413.47)
Cash Flows from Financing Activities

Cash Inflows 45 899,249,621.22 996,973,775.00
Cash Outflows 46 1,107,622,152.17 1,227,793,122.07
Net Cash Provided by (Used in) Financing Activities (208,372,530.96) (230,819,347.08)
Increase(Decrease) in Cash and Cash Equivalents (67,860,485.74) 123,697,175.32
Effects of Exchange Rate Changes on Cash and Cash Equivalents 2,351,371.06 3,335,577.96
Cash and Cash Equivalents, January 1, 47.1 884,180,824.97 757,202,738.19
Cash and Cash Equivalents, December 31 47.2 818,671,710.29 884,235,491.47

53
Statement of Changes in Net Assets/Equity
(in thousand pesos)
Accumulated
Surplus/(Deficit)
CY 2014
Note CY 2015 Restated
Balances at January 1 (1,688,930,177.53) (1,997,855,359.26)

Changes in Accounting Policy (6,427,053.58) 12,390,088.88
Prior Period Adjustments/Unrecorded Income and Expenses (12,903,060.79) (66,257,910.90)
Other Adjustments 20,139,703.05 62,839,399.37
Restated Balances (1,688,120,588.85) (1,988,883,781.91)
Changes in Net Assets/Equity for Calendar Year 130,120,111.91 300,820,219.13

Adjustment of Net Revenue recognized directly in Net Assets/Equity (1,435,350.61) 49,118,647.02
Surplus/(Deficit) for the Period (3,256,881.59) 258,564,785.16
Total Recognized Revenue and Expenses for the Period (4,692,232.20) 307,683,432.19
Others 134,812,344.11 (6,863,213.06)

Balances at December 31 27 (1,558,000,476.94) (1,688,063,562.78)

54
Statement of Comparison of Budget and Actual Amount
(in thousand pesos)
Budgeted Amount Actual Amounts on Diferrence Final

Note Original Final Comparable Basis Budget and Actual
RECEIPTS 48
Tax Revenue 2,193,252,187.00 1,825,232,249.04 1,824,055,651.31 1,176,597.73
Service and Business Income 138,439,663.00 190,223,584.25 181,396,118.03 8,827,466.23
Assistance and Subsidy - 1,412.43 1,412.43 -
Shares, Grants and Donations 2,273,669.00 24,531,666.13 26,216,817.24 (1,685,151.11)
Gains 4,499.00 23,628.20 6,193.49 17,434.71
Others 38,545.00 903,971,904.48 903,948,154.17 23,750.31
Non-Operating Income/Revenues 38,545.00 4,727,592.22 4,703,841.91 23,750.31
Loan Proceeds (Foreign Loans) - 93,209,487.47 93,209,487.47 -
Issuance of Bills (Domestic) - 603,114,791.22 603,114,791.22 -
Issuance of Bonds - 202,920,033.57 202,920,033.57 -
Domestic - 172,871,548.72 172,871,548.72 -
Foreign - 30,048,484.86 30,048,484.86 -
Total Receipts 2,334,008,563.00 2,943,984,444.54 2,935,624,346.67 8,360,097.87
PAYMENTS 49
Personnel Services 689,683,924.19 693,347,383.02 664,023,121.47 29,324,261.55
Maintenance and Other Operating Expenses 963,170,834.61 1,039,357,662.21 848,805,390.59 190,552,271.61
Capital Outlays 512,027,326.44 686,804,274.86 193,698,840.45 493,105,434.42
Financial Expenses 374,543,382.00 374,908,587.66 258,399,005.51 116,509,582.15
Debt Service (Principal Amortization) 390,386,000.00 390,386,000.00 202,200,818.31 188,185,181.69
Total Payments 2,929,811,467.24 3,184,803,907.75 2,167,127,176.33 1,017,676,731.41
NET RECEIPTS/PAYMENTS (595,802,904.24) (240,819,463.21) 768,497,170.34 (1,009,316,633.55)

The above statement should be read in conjucntion with the accompanying notes.
55
Notes to Combined Financial Statements
Note 1: General Information
The 2015 AFR of the NG presents the combined FSs submitted and authorized for
issue by 316 NGAs as shown in the Statement of Management Responsibilities for FSs
signed by the heads of these agencies, including the ARMM and SUCs. The list of
these agencies and their registered office locations is shown in Annex A, page 154. The
FSs of the Construction Industry Authority of the Philippines under the Department of
Trade and Industry and the Tourism Promotions Board under the Department of
Tourism were not submitted to COA, thus were excluded in this AFR.
The 316 NGAs have specific mandates geared towards the rendition of public
services such as; defense, economic services, social services, and general public
services. Sixty Four agencies have Regional Offices (ROs) and Operating Units
(OUs)/Field Offices (FOs), 16 of which operate on a centralized system and 48 on a
decentralized accounting system, while 252 are stand-alone agencies. The DFA,
DOLE, DOT, DND, PNP, DA, and DTI have foreign service posts.
Note 2: Statement of Compliance and Basis of Preparation of FSs
The FSs were prepared in accordance with the PPSAS prescribed under COA
Resolution No. 2014-003 dated January 24, 2014 and with the Government
Accounting Manual (GAM) provided under COA Circular 2015-007 dated October 22,
2015, including the use of accounts in conformity with the Revised Chart of Accounts
for NGAs.
The FSs comprise the Statement of Financial Position, Statement of Financial
Performance, Statement of Cash Flows, Statement of Net Assets/Equity, Statement of
Comparison of Budget and Actual Amounts, and the Notes to Financial Statements.
These were prepared on the basis of historical cost, unless stated otherwise. The
Statement of Cash Flows was prepared using the direct method.
Note 3: Summary of Significant Accounting Policies
3.1 Basis of accounting
The combined FSs were prepared on an accrual basis in accordance with

the PPSAS except in the case of taxes and related fines and penalties which were
recognized when collected or when these are measurable and legally collectible.
3.2 Combination
The combined FSs reflect the assets, liabilities, revenues, and expenses of
the agencies covering all funds. These funds include the Regular Agency Fund,
Foreign Assisted Projects Fund, Special Accounts – Locally Funded, Special
Accounts – Foreign Assisted, Internally Generated Funds, Business Related Funds,
and Trust Receipts/Inter-Agency Funds.
56
Elimination of intra-agency accounts was done in the department/agency
level. Likewise, elimination of Inter-Agency accounts was effected in the books of
the agencies concerned.
3.3 Presentation of Financial Statements
The AFR presents the restated FSs for CY 2014 on a comparative basis
with the FSs for CY 2015. This is to facilitate analysis of changes/variances of the
current year from that of the previous year.
3.4 Correction of Prior Year’s Errors
Prior year’s errors affecting income and expense accounts were adjusted to
the Accumulated Surplus (Deficit) account while those affecting the assets and
liabilities were corrected using the related accounts.
3.5 Changes in Accounting Policies and Estimates
The NGAs applied the retrospective application in recognizing the effects

of changes in accounting policy, except when application is impractical, wherein
the prospective application is used.
The effects of changes in accounting estimates were recognized on a

prospective application, as such, the changes were included in the surplus or
deficit.
3.6 Financial Assets
Initial Recognition
Financial Assets within the scope of PPSAS 29, Financial Instruments:

Recognition and Measurement, such as: loans and receivables, investments held-
to-maturity or available-for-sale financial assets, as appropriate were classified as
financial assets at fair value through surplus and deficit. The classification of a
Financial Asset was determined at initial recognition.
Subsequent Measurement
The subsequent measurement of financial assets depended on their

classification.
3.7 Cash and Cash Equivalents
Cash and cash equivalents comprised cash on hand and cash in bank,
deposits on call and highly liquid investments with original maturity of three
months or less, which are readily convertible to cash and they present insignificant
risk of changes in value because of changes in interest rates.
Petty Cash Fund (PCF) was maintained on an imprest system wherein

replenishment is charged to the expense account. At reporting date, disbursements
57
out of the PCF were recorded as expense. The PCF was not used to purchase
regular inventory items for stock.
For the purpose of the combined SCF, cash and cash equivalents consisted
of cash and short-term deposits, net of outstanding overdrafts.
3.8 Inventories
Inventories were initially recognized and measured at cost. Inventories

acquired through non-exchange transactions (for no cost or for a nominal cost),
were measured at the fair value at the date of the acquisition.
Inventories were recognized as expense when issued for utilization or

consumption in the ordinary course of operation using the moving average method.
3.9 Investments
Bond Sinking Fund
Bond premiums or discounts on NG- Bond Sinking Fund and managed

funds’ bond investments were added to or deducted from the Investments in Bonds
account, and these were being amortized over the life of the securities as
adjustment to Interest Income or Due to GOCCs in the case of managed funds.
3.10 Investment Property
Investment Property is either a land or a building or part of a building or

both, held by the owner or a lessee under a finance lease to earn rentals or for
capital appreciation, or both.
Initial Recognition and Subsequent Measurement
Investment Properties were measured initially at cost, including transaction

costs. The carrying amount included the replacement cost of components of an
existing investment property at the time that cost was incurred if the recognition
criteria were met.
Investment Properties acquired through non-exchange transaction were

measured at their fair value at the date of acquisition.
Subsequent to initial recognition, investment properties were measured

using the cost model and were depreciated over their estimated useful life.
Depreciation
Depreciation was computed using the straight line method over the
estimated useful life consistent with the useful life of similar Property, Plant and
Equipment.
58
Derecognition
Investment properties were derecognized in the books upon disposal or

when these were permanently withdrawn from use.
Transfers to and from investment property were made only when there are
changes in use of the property.
3.11 Property, Plant and Equipment
Initial Recognition and Subsequent Measurement
Property, Plant and Equipment (PPE) were recognized at cost. Cost

includes the purchase price and expenditures directly attributable to the acquisition
of the asset. Where PPE was acquired through a non-exchange transaction or for
no or nominal consideration, the PPE is initially measured at its fair value.
Significant parts of the PPE purchased at required intervals were recognized as
individual assets.
After recognition, PPE were stated at cost less accumulated depreciation

and impairment losses.
Depreciation
The straight-line method was adopted in the computation of depreciation

over the useful life of an asset, assigning a residual value of at least five percent
(5%). The useful life of an asset was based on the estimated useful life of PPE by
classification issued by the COA. Significant parts of the PPE purchased at
required intervals were depreciated over their specific useful lives. For simplicity
and to avoid proportionate computation, the depreciation was for one month if the
PPE is available for use on or before the 15th of the month. However, if the PPE is
available for use after the 15th of the month, depreciation started in the succeeding
month.
Repairs and maintenance costs are recognized as expenses in the period in

which they are incurred.
Impairment
Impairment loss on a PPE was recognized if the carrying amount is greater

than its estimated recoverable amount or recoverable service amount.
Derecognition
PPE and/or any significant part of a PPE was derecognized upon disposal
or when no future economic benefits or service potential is expected from its
continued use. Any gain or loss arising from derecognition of the asset was
included in the accumulated surplus or deficit account.
59
3.12 Leases
Operating Lease
Operating lease payments were recognized as operating expense in the
books of the lessee agency and as operating income in the books of the lessor
agency on a straight line basis over the lease term.
Depreciation of leased assets
Leased assets were depreciated applying the depreciation policy for similar
PPE items.
3.13 Intangible Assets
Recognition
Intangible assets were recognized when the items are identifiable, when it
is probable that the expected future economic benefits or service potential that are
attributable to the assets will flow to the agency, and when the cost or fair value of
the assets can be measured reliably.
Intangible assets acquired through purchase or by separate acquisition were

initially recognized at cost which included non-refundable taxes and other directly
attributable costs.
Amortization
The useful lives of the intangible assets were assessed as either finite or
indefinite. Those with finite life were amortized over their useful life. The
amortization expense of an intangible asset with a finite useful life was recognized
in surplus or deficit.
Impairment
Intangible assets were assessed at reporting date to determine the existence

of impairment which is recognized when the carrying amount is greater than the
estimated recoverable amount or recoverable service amount.
3.14 Financial Liabilities
Financial liabilities were recognized initially at fair value plus, in the case
of loans and borrowings, directly attributable transaction costs.
Loans and borrowings
After initial recognition, interest bearing loans and borrowings were

subsequently measured at amortized cost. Gains and losses were recognized in
surplus or deficit when the liabilities were derecognized. Bond discounts and
premiums on the issuance of foreign and domestic Treasury Bonds T-Bonds and
Bond Exchanges were amortized over the remaining life of the bonds.
60
The NG does not recognize any contingent liability, but details were
disclosed in the Notes to the FS.
Derecognition
A financial liability was derecognized when the obligation under the

liability was discharged or cancelled or expired.
When an existing financial liability is replaced by another from the same

lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification was treated as a
derecognition of the original liability and the recognition of a new liability, and the
difference in the respective carrying amounts was recognized in surplus or deficit.
3.15 Revenue from Non-exchange Transactions
Recognition and Measurement of Assets from Non-Exchange Transactions
An inflow of resources from a non-exchange transaction, other than

services in-kind, that met the definition of an asset was recognized as an asset if it
is probable that the future economic benefits or service potential associated with
the asset will flow to the entity; and if the fair value of the asset can be measured
reliably. An asset acquired through a non-exchange transaction was initially
measured at fair value at the date of acquisition.
Recognition of Revenue from Non-Exchange Transactions
An inflow of resources from a non-exchange transaction recognized as an

asset was recognized as revenue, except to the extent that a liability was also
recognized in respect of the same inflow.
As the recipient agency satisfies the present obligation recognized as a

liability in respect of an inflow of resources from a non-exchange transaction
recognized as an asset, the carrying amount of the liability recognized was reduced
and an amount of revenue equal to that reduction was recognized.
Measurement of Revenue from Non-Exchange Transactions
Revenues from non-exchange transactions were measured at the amount of

the increase in net assets recognized by the entity, unless a corresponding liability
is recognized.
Measurement of Liabilities on Initial Recognition from Non-Exchange

Transactions
The amount recognized as a liability in a non-exchange transaction was the

best estimate of the amount required to settle the present obligation at the reporting
date.
61
Taxes
Taxes and the related fines and penalties were recognized when collected or
when these were measurable and legally collectible. The related refunds, including
those that were measurable and legally collectible are deducted from the
recognized tax revenue.
Fees and fines not related to taxes
Revenues from fees and fines, except those related to taxes, were
recognized when earned and when the asset recognition criteria were met. Deferred
income was recognized instead of revenue if there is a related condition attached
that would give rise to a liability to repay the amount.
Other non-exchange revenues were recognized when it is probable that the

future economic benefits or service potential associated with the asset will flow to
the entity and the fair value of the asset can be measured reliably.
Gifts and Donations
Assets and revenues from gifts and donations were recognized when it is
probable that the future economic benefits or service potential will flow to the
entity and when the fair value of the assets can be measured reliably.
Goods in-kind were recognized as assets when the goods were received, or
when there was a binding arrangement to receive the goods. If goods in-kind were
received without conditions, revenue was recognized immediately. If conditions
were attached, a liability was recognized, which was reduced as revenue was
recognized when the conditions were satisfied.
Gifts and donations including goods in-kind were initially measured at their
fair value as at the date of acquisition, which were ascertained by reference to an
active market, or by appraisal. An appraisal of the value of an asset was normally
undertaken by a member of the valuation profession who holds a recognized and
relevant professional qualification. For many assets, the fair value was ascertained
by reference to quoted prices in an active and liquid market.
Transfers
a) Recognition of Assets
Assets in respect of transfers were recognized by the agencies when the

transferred resources met the definition of an asset and the criteria for recognition
as an asset was satisfied, except those arising from services in-kind.
b) Measurement of Revenues
Revenues from non-exchange transactions with other government entities

and the related assets were measured at fair value and recognized on obtaining
control of the asset (cash, goods, services and property) if the transfer was free
62
from conditions and if it was probable that the economic benefits or service
potential related to the asset will flow to the agency and can be measured reliably.
Services in-Kind
Services in-kind were not recognized as asset nor revenue considering the
complexity of the determination and recognition of asset and revenue and the
eventual recognition of expenses.
3.16 Revenues from exchange transactions
Measurement
Revenues from exchange transactions were measured at fair value of the

consideration received or receivable. Revenues were recognized when it was
probable that the future economic benefits or service potential will flow to the
agency and when these benefits can be measured reliably.
Rendition of Services
Revenue from the rendition of services was recognized by reference to the

stage of completion when the outcome of the transaction can be estimated reliably.
The stage of completion was measured by reference to labor hours incurred to date
as a percentage of total estimated labor hours.
Where the contract outcome cannot be measured reliably, revenue was

recognized only to the extent that the expenses incurred were recoverable.
Sale of Goods
Revenue from the sale of goods was recognized when the significant risks
and rewards of ownership were transferred to the buyer, usually on delivery of the
goods and when the amount of revenue can be measured reliably and when it was
probable that the economic benefits or service potential associated with the
transaction will flow to the agency.
Interest income
Interest income was accrued using the effective yield method. The effective
yield discounts estimated future cash receipts through the expected life of the
financial asset to that asset’s net carrying amount. The method applied this yield to
the principal outstanding to determine interest income for each period.
Dividends
Dividends or similar distributions were recognized when the agency’s right

to receive payments was established.
63
Rental income
Rental income arising from operating leases on investment properties was

recorded as revenue using a straight-line basis over the lease term.
3.17 Foreign Currency Transactions
Transactions in foreign currencies were recorded in Philippine Peso based

on Bangko Sentral ng Pilipinas exchange rate prevailing at the date of the
transaction. Foreign currency denominated monetary assets and liabilities at the
balance sheet date were restated based on BSP Weighted Average Rate published
on the 1st working day of the following month in the BSP Reference Rate Bulletin.
Any difference in the revaluation of assets and liabilities was recognized as a gain
or loss on foreign exchange.
Exchange differences arising (a) on the settlement of monetary items, or (b)

on translating monetary items at rates different from those at which they were
translated on initial recognition during the period or in previous financial
statements, are recognized in surplus or deficit in the period in which they arise,
except as those arising on a monetary item that forms part of a reporting entity’s
net investment in a foreign operation.
3.18 Budget information
The annual budget was prepared on cash basis and was published in the
government website.
A separate Statement of Comparison of Budget and Actual Amounts

(SCBAA) was prepared since the budget and the FS were not prepared on
comparable basis. The SCBAA was presented showing the original and final
budget and the actual amounts on comparable basis to the budget.
Current Assets
Note 4: Cash and Cash Equivalents
Cash and Cash Equivalents with a total amount of P584.63 billion represents
35.76 percent of the total current assets. It is composed of the following major accounts:
Major Accounts Amount

Cash on Hand 2,548,385,613.00
Cash in Bank – Local Currency 640,713,506,701.84
Cash in Bank – Foreign Currency 76,066,287,436.32
Treasury/Agency Cash Accounts (135,364,110,295.15)
Cash Equivalents 670,688,448.94
Total Cash and Cash Equivalents 584,634,757,904.95
64
4.1 Cash on Hand
This major group of accounts consists of Cash – Collecting Officers and

Petty Cash account with balances of P2.37 billion and P175.86 million,
respectively.
» Cash – Collecting Officers
This account refers to the unremitted/undeposited collections in the

hands of collecting officers. Its aggregate amount of P2.37 billion
represents 93.10 percent of the total Cash on Hand.
The ten (10) departments which reported significant balances of

Cash – Collecting Officers, arranged from highest to lowest, are as follows:
Percent
Department/Office Amount
to Total
Budget and Management 886,247,160.49 37.35
Finance 366,645,158.99 15.45
Justice 330,870,046.36 13.95
The Judiciary 299,921,470.35 12.64
Transportation and Communication 124,542,665.16 5.25
Health 111,002,230.54 4.68
State Universities and Colleges 106,488,158.42 4.49
Labor and Employment 17,565,767.78 0.74
Education 15,018,603.52 0.63
Public Works and Highways 14,651,596.04 0.62
Sub-total 2,272,952,857.65 95.80
Other Departments/Offices 99,569,592.91 4.20
Total 2,372,522,450.56 100.00
Of the total amount reported by the DBM, P886.12 million was

reported by the Procurement Service.
In the DOF, the Bureau of Customs has a balance of P267.18

million while in the DOJ, Land Registration Authority reported P266.07
million, the latter representing the unreconciled balances of collections
between the subsidiary ledger and cashbook balances of various cashiers in
168 Registries of Deeds nationwide.
Schedule 9, Vol. II of this report shows the complete list of

departments/offices with balances of Cash - Collecting Officers as of the
end of the year.
» Petty Cash is the amount of unused cash intended for petty expenses
representing 6.90 percent of the total Cash on Hand.
65
4.2 Cash in Bank – Local Currency
This major group of accounts shows an aggregate amount of P640.71

billion. It is composed of the following accounts:
Percent
to Total
Bangko Sentral ng Pilipinas 383,981,072,080.82 59.93
Current Account 157,377,836,807.36 24.56
Savings Account 48,740,254,324.74 7.61
Time Deposits 50,614,343,488.92 7.90
Total Cash in Bank - Local Currency 640,713,506,701.84 100.00
The departments/offices with significant deposits in local currencies

maintained with the BSP and with authorized banks broken down into current,
savings, and time deposit accounts are as follows:
Amount
Department/ % to
CIB-LC, Bangko CIB-LC, Current CIB-LC, Savings CIB-LC, Time
Office Total Total
Sentral ng Pilipinas Account Account Deposits
Finance 383,981,072,080.82 18,945,247,432.66 34,968,188,675.67 15,309,419,400.36 453,203,927,589.51 70.73
SUCs 0.00 25,726,700,079.01 1,534,363,479.22 19,193,784,873.67 46,454,848,431.90 7.25
Budget and
Management 0.00 4,537,881,556.55 1,996,278.30 12,000,000,000.00 16,539,877,834.85 2.58
Social Welfare
and
Development 0.00 15,860,013,025.22 6,746,028.42 0.00 15,866,759,053.64 2.48
National
Defense 0.00 14,086,107,089.65 513,193,576.02 351,480,725.80 14,950,781,391.47 2.33
Education 0.00 13,182,059,974.96 11,831,238.69 60,000,000.00 13,253,891,213.65 2.07
The Judiciary 0.00 3,601,978,611.73 9,183,319,039.56 456,636,379.07 13,241,934,030.36 2.07
Health 0.00 10,267,608,319.71 23,239,950.82 0.00 10,290,848,270.53 1.61
COMELEC 0.00 7,748,137,772.94 0.00 0.00 7,748,137,772.94 1.21
Office of the
President 0.00 7,201,015,787.42 0.00 0.00 7,201,015,787.42 1.12
Sub-Total 383,981,072,080.82 121,156,749,649.85 46,242,878,266.70 47,371,321,378.90 598,752,021,376.27 93.45
Other
Departments 0.00 36,221,087,157.51 2,497,376,058.04 3,243,022,110.02 41,961,485,325.57 6.55
Total 383,981,072,080.82 157,377,836,807.36 48,740,254,324.74 50,614,343,488.92 640,713,506,701.84 100.00
% to Total 59.93 24.56 7.61 7.90 100.00
Of the total Cash in Bank – Local Currency, the DOF reported P453.20
billion representing 70.73 percent.
» Cash in Bank – Local Currency, Bangko Sentral ng Pilipinas
Local currency deposits with the Bangko Sentral ng Pilipinas (BSP)

in the amount of P383.98 billion represents 59.93 percent of the total local
currency deposits of the NG as reported by the BTr.
» Cash in Bank – Local Currency, Current Account
The Current Account in Local Currency maintained with authorized

banks, in the total amount of P157.38 billion represents 24.56 percent of the
total cash in bank in local currencies.
Among the SUCs, the UPS and Batangas State University (BSU)
reported P3.30 billion and P1.21 billion, respectively.
66
The DOF reported a notable amount of P18.95 billion, of which
P15.8 billion or 83.38 percent was shown in the books of BTr.
» Cash in Bank – Local Currency, Savings Account
The Savings Account in Local Currency maintained with authorized

banks in the total amount of P48.74 billion represents 7.61 percent of the
total cash in bank in local currencies.
The DOF reported the biggest deposit in savings account of P34.97

billion, of which P34.46 billion or 98.54 percent was taken from the books
of the BTr.
» Cash in Bank – Local Currency, Time Deposit Account
The Time Deposit Account in Local Currency maintained with

authorized banks in the total amount of P50.61 billion represents 7.90
percent of the total cash in bank in local currency.
The SUCs reported the biggest deposit of P19.19 billion, of which

P18.21 billion or 94.89 percent was taken from the books of UPS.
Schedule 10, Vol. II of this report presents the complete list of

departments/offices with their corresponding balances of Cash in Bank -
Local Currency.
4.3 Cash in Bank – Foreign Currency
This major group of accounts, Cash in Bank – Foreign Currency, with a

total of P76.07 billion shared 13.01 percent of the total cash and cash equivalents.
Components are as follows:
Percent
to Total
Bangko Sentral ng Pilipinas 40,643,861,183.43 53.43
Current Account 4,078,932,784.59 5.36
Savings Account 22,992,526,751.60 30.23
Time Deposits 8,350,966,716.70 10.98
Total CIB – Foreign Currency 76,066,287,436.32 100.00
The following departments reported notable balances of foreign currency

deposits with the BSP and with authorized banks broken down into current,
savings, and time deposit accounts:
Amount
Department/ CIB-FC, Bangko Percent
Office CIB-FC, Current CIB-FC, Savings CIB-FC, Time to Total
Sentral ng Total
Account Account Deposits
Pilipinas
Finance 40,619,283,846.39 60,598,899.62 15,490,284,970.60 8,260,884,000.94 64,431,051,717.55 84.70
Social Welfare
0.00 0.00 3,782,058,568.70 0.00 3,782,058,568.70 4.97
and Development
Foreign Affairs 0.00 3,293,646,541.68 468,451,687.99 0.00 3,762,098,229.67 4.95
Other
24,577,337.04 724,687,343.29 3,251,731,524.31 90,082,715.76 4,091,078,920.40 5.38
Departments
Total CIB-FC 40,643,861,183.43 4,078,932,784.59 22,992,526,751.60 8,350,966,716.70 76,066,287,436.32 100.00
Percent to Total 53.43 5.36 30.23 10.98 100.00
67
Among the departments, the DOF topped Foreign Currency Deposits with
P64.43 billion representing 84.70 percent followed by the DSWD with P3.78
billion or 4.97 percent, and by the DFA with 3.76 billion or 4.95 percent. The three
departments reported a total of 94.62 percent while the other 32 departments
contributed 5.38 percent only of the total Foreign Currency Deposits.
» Cash in Bank – Foreign Currency, Bangko Sentral ng Pilipinas
The deposits in foreign currency with the Bangko Sentral ng

Pilipinas in the total amount of P40.64 billion represents 53.43 percent of
the total cash in bank in foreign currency.
Only two departments reported this account – the DOF, particularly

the BTr, and the Anti-Money Laundering Council (AMLC) under OEO
with P40.62 billion and P24.58 million, respectively. The amount reported
by AMLC represents the unused portion of the P100 million from the E-
Government Fund allocated for its IT System which was transferred and
obligated to the BSP to purchase IT equipment in accordance with AMLC’s
Cash Program for IT System.
» Cash in Bank - Foreign Currency, Current Account
The Current Account in Foreign Currency with authorized banks in

the total amount of P4.08 billion represents 5.36 percent of the total cash in
bank in foreign currency.
The DFA-OSEC reported P3.29 billion representing 80.75 percent

of the total CIB-FC, Current account of the NG. This pertains to cash in
bank retained at the Foreign Service Posts for working funds that includes
among others the balances of the International Commitment Fund.
» Cash in Bank Foreign Currency, Savings Account
The Savings Account in Foreign Currency with local banks, in the

total amount of P22.99 billion represents 30.23 percent of the total cash in
bank in foreign currencies.
The DSWD-OSEC reported P3.78 billion of deposits in foreign

currency in a savings account. This includes deposits from grants and
donations and loan proceeds received from the following:
° Social Protection Support Project

° DSWD Foreign Donations
° Social Welfare and Development Reform Project
° ASEAN – Republic of Korea
° Japan ASEAN Integration Fund
The DA also reported P501.73 million representing cash received

by the OSEC, RFUs and Bureaus for the implementation of various foreign
assisted projects.
68
» Cash in Bank – Foreign Currency, Time Deposits
The Time Deposits in Foreign Currency with local banks in the total
amount of P8.35 billion represents 10.98 percent of the total cash in bank in
foreign currency.
The DOF, particularly the BTr reported P8.26 billion representing

98.92 percent of the CIB-FCTD
Schedule 11, Volume II presents the complete list of

departments/offices with accounts in Cash in Bank, Foreign Currency.
Other Notes on Local and Foreign Currency Deposits
The Cash in Bank accounts of the BTr totaling to P513.70 billion consists
of deposits in Local Currency of P449.37 billion and in Foreign Currency of
P64.33 billion.
These deposits consist of the following:
Particulars Amount
Free balances 330,540,298,100.53
Modified Disbursement System Seed Money 12,603,917,824.82
Restricted 166,691,940,871.37
Project loan/grant proceeds from BSP and various
Authorized Government Depository Banks such as
the PVB, UCPB and PPSB; accredited agent banks of
the BIR and BOC; and others 3,866,601,437.73
Total 513,702,758,234.45
Free balances refer to the amounts that can be used by the NG operations.
The amount of P219.59 billion representing 66.43 percent is deposited with the
TOP- Treasury Single Account and the remaining balance is deposited with the
BSP, LBP, DBP, PVB, PPSB, UCPB, PNB and authorized agent banks in both
peso and foreign denominations.
The MDS Seed Money refers to the amount used to pay MDS checks. This
is replenished daily by the BTr upon request of the authorized government
servicing banks. The MDS Seed Money includes the following bank accounts:
Bank Account Amount

LBP - MDS 7,417,926,316.02
DBP - MDS 4,660,658,415.47
PVB - MDS 524,951,693.33
PNB - MDS 381,400.00
Total 12,603,917,824.82
69
Restricted accounts represent various special/sinking funds, managed
funds and escrow accounts, details of which are as follows:
Bank Account Amount

TSA (NG BSF) 121,414,341,016.95
BSP-D/D-S/A # 2- under MOA-MBR 560 28,265,953,298.79
TSA (NFA BSF) 942,099,893.03
TSA (PSALM BSF) 8,005,556,109.22
TSA (NG SGF) 73,558,443.90
TSA (NG SSF) 434,184,957.86
TSA (NG FSD) 2,806,297,125.84
TSA (MWSS SRF) 40,152,833.19
TSA (MWSS SA) 98,494.26
TSA (PCGG CIIF) 345,784,680.55
TSA (PCGG Escrow) 903,853,151.50
TSA (HSDC –HIGC-NHC/APT) 8,208,554.51
TSA (PMO Escrow) 5,606,837.23
TSA (RMC Escrow) 37,165,213.09
TSA (Sandigan Escrow) 52,927.50
TSA (Other Escrow Accounts) 58,328,762.70
TSA (Pagibig AGPF) 22,935,120.35
LBP SA PD Agro Industry Modernization
Credit Financing Program (AMCFP) 265,962,382.79
Credit Support Fund- Yolanda 2,006,308,368.01
LBP FCTD Dollar Escrow 175,208,321.49
DBP Special Trust Account EIMPF 460,956.55
DBP FCTD Dollar Escrow 65,687,398.01
UCPB TD Escrow Account 5,703,861.73
PNB Backpay SF Reserve Under RA 369 16,793.91
10 days Holding Period/Court Cases 49,329,388.59
Due from Commercial Banks –PSB/PSB-BBS
545,910.00
PPSB Premium Savings Plan 30,000,000.00
Federal Reserve Bank –NY Collateral Bond
Conversion 728,462,026.82
Due from Export and Industry Bank 78,043.00
Total 166,691,940,871.37
Project Loan Grant Proceeds refer to the amounts earmarked to be

utilized by various implementing agencies. These include the following:
Bank Account Amount

Bangko Sentral ng Pilipinas
a) Peso Deposits (various) 1,030,765,676.37
b) Foreign Currency Deposits (various) 2,143,008,056.56
Land Bank of the Philippines
a) Foreign Currency Deposits (various) 692,827,704.80
Total 3,866,601,437.73
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4.4 Treasury/Agency Cash Accounts
This major group of cash accounts consists of the following accounts:
Accounts Amount
Cash–Treasury/
Agency Deposit, Special Account 40,726,570,238.01
Less: BTr Credit Balance 114,024,242,296.22 (73,297,672,058.21)
Cash–Treasury/Agency Deposit, Trust 17,247,044,047.55
Less: BTr Credit Balance 85,623,371,249.23 (68,376,327,201.68)
Cash–MDS, Regular 5,765,394,674.62
Cash–MDS, Special Account 193,391,031.55
Cash–MDS, Trust 351,103,258.57
Total (135,364,110,295.15)
The amounts of P114.02 billion and P85.62 billion represent the

corresponding credit entry of the BTr to the deposits/remittances made by various
agencies pertaining to Special Accounts and Trust Accounts, respectively. These
credit balances of the BTr, however, do not tally with the records of the agencies
resulting to a difference of P73.30 billion and P68.38 billion for SAGF and Trust,
respectively.
The departments with the highest balances of Treasury/Agency Cash

account are as follows:
Amount
Department/
Cash-T/AD, Special Cash-MDS, Cash-MDS,
Office Cash-T/AD, Trust Cash-MDS, Trust Total
Account Regular Special Account
Energy 17,070,372,684.88 0.00 0.00 0.00 0.00 17,070,372,684.88

OEO 9,178,930,647.47 357,565,292.85 977,188,184.80 43,419,884.96 604,918.00 10,557,708,928.08
Justice 4,282,229,123.93 1,330,502,539.99 58,877,887.40 930,079.84 0.00 5,672,539,631.16
Interior and Local
4,412,437,980.60 1,059,484,785.11 76,363,144.53 0.00 3,301,719.30 5,551,587,629.54
Gov’t
Public Works and
3,296,547.70 4,619,711,796.89 99,730,833.73 0.00 311,673,205.13 5,034,412,383.45
Highways
Health 1,967,560,598.44 1,012,963,921.11 214,309,126.64 1,465,750.51 5,402,522.66 3,201,701,919.36
Transportation &
198,355,936.76 767,586,297.85 1,052,382,433.65 296,360.47 170,000.00 2,018,791,028.73
Communication
Agriculture 599,345,835.75 176,043,801.25 927,041,818.77 48,646,590.47 2,905,162.90 1,753,983,209.14
Science &
30,165,823.18 1,440,387,155.71 124,554,395.77 230,009.29 17,163,617.13 1,612,501,001.08
Technology
Office of the
0.00 1,412,943,850.69 1,408,176.22 0.00 0.00 1,414,352,026.91
President
Sub-Total 37,742,695,178.71 12,177,189,441.45 3,531,856,001.51 94,988,675.54 341,221,145.12 53,887,950,442.33
Others 2,983,875,059.30* 5,069,854,606.10** 2,233,538,673.11 98,402,356.01 9,882,113.45 10,395,552,807.97
Total 40,726,570,238.01 17,247,044,047.55 5,765,394,674.62 193,391,031.55 351,103,258.57 64,283,503,250.30
BTr (credit
(114,024,242,296.22) (85,623,371,249.23) 0.00 0.00 0.00 (199,647,613,545.45)
balance)
Total (73,297,672,058.21) (68,376,327,201.68) 5,765,394,674.62 193,391,031.55 351,103,258.57 (135,364,110,295.15)
*excludes BTr credit balance of (P114,024,242,296.22)

** excludes BTr credit balance of (P85,623,371,249.23)

departments/offices with balances of Treasury/Agency Cash Accounts.
» Cash–Treasury/Agency Deposit, Special Account (Cash-TAD,SA)
This account refers to the collection of the NGAs which were

remitted to the BTr. These remittances were debited in the books of the
NGAs using the Cash-TAD,SA which totaled P40.73 billion and credited in
71
the books of the BTr using the same account which totaled P114.02 billion;
thus, resulted to a difference of P73.30 billion. This difference is subject for
reconciliation between the concerned NGAs and the BTr.
The DOE reported P17.07 billion of deposits in a special account

with the BTr. This represents deposits of collections on shares from the
National Wealth such as among others; Petroleum – Natural Gas,
Petroleum Oil, Coal and Geothermal.
Under the Department of Justice (DOJ), the PCGG reported P1.70

billion representing proceeds from sale of surrendered assets, rental fees
from surrendered assets, proceeds from CARP coverage of the IRC
landholdings; and P4.81 billion representing various deposits to the BTr of
the collections coming from refund of excess payments of expenses and
cash advances.
» Cash – Treasury/Agency Deposit, Trust
This account refers to collections of the agencies for Trust Accounts

which were remitted to the BTr. These remittances were debited in the
books of the NGAs totaling P17.25 billion and credited in the books of the
BTr with a total of P85.62 billion or a difference of P68.38 billion. This
difference is subject for reconciliation between the concerned NGAs and
the BTr.
The DPWH – OSEC reported P4.62 billion which includes, among

others, collections of cash bonds, performance bonds, bidders bonds, claims
due to BAC and TWG members representing collection of bid documents,
proceeds from fire insurance of EMD.
The PCGG under the DOJ reported P1.10 billion representing

deposits from 1986 to 2015, P111.00 million of which pertain to proceeds
from sale of Wack Wack property temporarily deposited as trust awaiting
resolution of some legal issues before it can be remitted to the BTr CARP
Fund.
» Cash – MDS Regular
The balance of this account in a total amount of P5.76 billion

refers to the MDS checks already issued for the payment of accounts
payable and other liabilities for the regular operations of the agencies but
which were not yet released or still unclaimed by the payees as of the end
of the year.
4.5 Cash Equivalents
This group of accounts refers to Treasury Bills issued by the National

Government through the BTr with a maturity period of 90 days and below. It had a
total of P670.69 million as of the end of the year which was reported solely by the
DOE.
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Note 5: Investments
Total current investments of the NG as of December 31, 2015 is composed of the
following accounts:
Percent
to Total
Financial Assets - Held to Maturity 15,701,764,301.74 30.60
Sinking Fund 35,614,862,834.08 69.40
Total 51,316,627,135.82 100.00
5.1 Financial Assets - Held to Maturity
This major group of the current investments is composed of the following

accounts:
Percent
Accounts Amount
to Total
Investments in Treasury Bills –Local 15,662,357,604.99 99.75
Investments in Treasury Bonds –Local 39,406,696.75 0.25
Total 15,701,764,301.74 100.00
» Investments in Treasury Bills – Local
Investments in Treasury Bills - Local amounting to P15.66 billion

represents 99.75 percent of the total Financial Assets Held to Maturity.
The DOE reported Investments in Treasury Bills of P3.49 billion or

22.29 percent as of December 31, 2015, details of which are as follows:
Funding Source – Trust Amount

Energy Regulation 1-94 3,188,653,616.43
Oil Price Stabilization Fund 273,203,744.46
Gasoline Station Training and Loan Fund 28,177,517.84
Total 3,490,034,878.73
Energy Regulation 1-94 represents the one-centavo kilowatt hour on

electricity sales as benefits to be allocated to the host LGU for
electrification, development and livelihood, restoration, watershed
management, health and/or environment enhancement. The interest earned
shall be for the account of the trust fund.
Oil Price Stabilization Fund represents contributions from oil

companies which are being held in escrow pending resolution by ERC and
the DOF on the validity of the corresponding claims filed by oil companies
against OPSF as a result of the Supreme Court decision nullifying Republic
Act 8180 and the 15% retention imposed by COA on small traders pending
result of its audit on the claims and contributions. The funds were invested
beyond 90 days.
73
Gasoline Station Training and Loan Fund represents the funds from
Philippine Amusement and Gaming Corporation (PAGCOR) to assist small
players through lending for purposes of promoting retail competition. Said
amount was invested waiting for loan applicants.
» Investments in Treasury Bonds –Local
Investments in Treasury Bonds - Local amounting to P39.41 million

represents 0.25 percent only of the total Financial Assets Held to Maturity.
5.2 Sinking Fund
Investments in Sinking Fund classified as current totalled P35.61 billion of

which P35.29 billion or 99.10 percent pertains to the NG-issued and NG-
guaranteed DBP and LBP accounts being administered/managed by the BTr,
broken down as follows:
Particculars Amount
BSF- TD (DBP) 24,000,000,000.00
BSF- TD (LBP) 10,000,000,000.00
BSF- FCTD –Euro (LBP) 389,338,836.96
BSF- Securities (TBills) 900,000,000.00
Total 35,289,338,836.96
Reconciliation of the current Investments in Sinking Fund account is as

follows:
Particulars Amount
Beginning Balance – January 1,2015 75,634,830,615.66
Less: Investments Sold 40,345,491,778.70
Balance as of December 31, 2015 35,289,338,836.96
Note 6: Receivables
The Receivables of the NG of P866.74 billion, net of Allowance for Impairment of

P3.81 billion represents those that are expected to be collected in 2017. These accounts
share 53.02 percent of the total current assets of the NG. It consists of the following
major accounts:
Amount Percent
Major Accounts to Total
Loans and Receivable Accounts 93,111,814,710.62 10.74
Lease Receivables 1,266,212,965.96 0.15
Inter-Agency Receivables 683,340,353,573.10 78.84
Intra-Agency Receivables 16,537,273,681.69 1.91
Other Receivables 72,485,721,537.19 8.36
Total Receivables 866,741,376,468.56 100.00
Schedule 13, Vol. II of this report shows the complete list of departments/offices
with existing balances of Receivable Accounts as of the end of the year.
74
6.1 Loans and Receivable Accounts
This major group of accounts had a balance of P93.11 billion after

deducting Allowance for Impairment of P3.78 billion. It represents 10.74 percent
of the total receivables of the NG. It is composed of the following accounts:
Accumulated
Accounts Gross Net Amount
Impairment Losses
Accounts Receivable 24,714,136,402.5 2,362,491,741.61 22,351,644,660.89
Notes Receivable 45,062,967.56 0.00 45,062,967.56
Loans Receivable – GOCCs 7,734,028,182.49 0.00 7,734,028,182.49
Loans Receivable – LGUs 4,714,355,073.15 1,469,933.61 4,712,885,139.54
Interest Receivable 46,469,888,761.62 2,521,044.61 46,467,367,717.01
Dividends Receivable 749,000,000.00 0.00 749,000,000.00
Loans Receivable – Others 12,467,953,099.96 1,416,127,056.83 11,051,826,043.13
Total Loans and
96,894,424,487.28 3,782,609,776.66 93,111,814,710.62
Receivables
» Accounts Receivable
The summary of Accounts Receivable by department is as follows:
Percent
to Total
Finance 9,186,788,014.76 41.10
State Universities and Colleges 4,282,083,654.62 19.16
Health 3,031,074,796.03 13.56
Other Executive Offices 2,463,565,416.24 11.02
Energy 1,581,518,368.29 7.08
Environment and Natural Resources 788,913,098.09 3.53
Agriculture 407,783,366.06 1.82
Science and Technology 133,019,684.28 0.60
Presidential Communications Operations Office 114,063,008.70 0.51
Justice 83,450,604.05 0.37
Sub-total 22,072,260,011.12 98.75
Other Departments 279,384,649.77 1.25
Total 22,351,644,660.89 100.00
» Loans Receivable – Government-Owned and/or Controlled

Corporations
Only four departments reported this account as follows:
Percent
to Total
Finance 5,276,270,383.08 68.22
Agriculture 2,326,589,309.21 30.08
Agrarian Reform 122,972,944.00 1.59
Energy 8,195,546.20 0.11
Total 7,734,028,182.49 100.00
The BTR reported P5.28 billion or 68.33 percent of Loans

Receivable – Government-Owned and/or Controlled Corporations
representing the expected collections within the next 12 months of
75
advances made by the NG to the creditors in behalf of GOCCs when the
latter are unable to pay their loans.
The amount reported by DA-OSEC includes funds transferred to

Philrice and Quedan and Rural Credit Guarantee Corporation totaling P1.76
million and P1.00 billion, respectively, to cover the implementation of the
Financing Program for Small Farmers and Fisherfolk using the Self-
Reliance Team model and other schemes under the Agricultural
Competitiveness Enhancement Fund created under R.A. No. 8178 entitled
“An Act Replacing Quantitative Import Restrictions on Agricultural
Product, Except Rice with Tariffs Creating the Agricultural
Competitiveness Enhancement Fund and for Other Purposes”. It was
amended under R.A. No. 9496 in which the fund shall continue to be set
aside up to the year 2015 after which the collection of duties from
Minimum Access Volume mechanism and the setting aside of the amount
collected for the purpose shall be terminated.
» Loans Receivable – Local Government Units
Among the 35 departments of the NG, only three reported Loan

Receivables from LGUs, as follows:
Allowance for Percent

Department/Office Gross Amount Net Book Value
Impairment to Total
Finance 4,463,461,786.39 0.00 4,463,461,786.39 94.71
Agriculture 247,893,286.76 0.00 247,893,286.76 5.26
Autonomous
Region of Muslim
Mindanao 3,000,000.00 1,469,933.61 1,530,066.39 0.03
Total 4,714,355,073.15 1,469,933.61 4,712,885,139.54 100.00
The total amount for DOF was solely reported by the MDFO.
» Interest Receivable
Of the total P46.47 billion Interest Receivable of the NG, P44.91

billion or 96.64 percent was reported by the BTr which consists of
accumulated interest on NG advances amounting to P44.53 billion, accrued
interest on Treasury of the Philippines Foreign Currency Time Deposits
Accounts in 1993 of P249.49 million which was retained with CB-BOL
and accrued interest on investments in T-Bonds of BSF, SSF and DBP
AITTP of P130.24 million.
The DOTC reported Interest Receivable of P1.01 billion which

pertains to interest on late payments of MRTDC and Greenfield
Development Corporation on developmental rights, and Philharbor for the
installment sale of MV 2 based on an approved contract/agreement.
76
Aging of the account is shown below:
Particulars Amount
Not yet Due 12,843,875.83
Less than 90 days 1,292,605.72
91 to 365 days 3,795,324.01
Over 1 year 994,013,738.72
Total 1,011,945,544.28
As indicated in the Audit Observation Memorandum No. 15-005-

101 dated May 5, 2015 issued by the COA, the recording of the conditional
Interest Receivable from MRTDC amounting to P1.22 billion was stopped
pending final resolution of the dispute between DOTC and MRTDC.
» Loans Receivable – Others
Loans Receivable – Others in the total amount of P11.05 billion, net

of P1.42 billion Allowance for Impairment were reported by the following
departments:

Department/Office Amount Net Book Value
Impairment to Total
Agriculture 6,102,599,259.13 72,090,381.69 6,030,508,877.44 54.57
Education 3,062,312,112.44 627,252.31 3,061,684,860.13 27.70
Other Executive
416,331,409.24 0.00 416,331,409.24 3.77
Office
Finance 1,702,579,860.75 1,339,113,439.95 363,466,420.80 3.29
Trade and Industry 289,054,859.38 1,966,339.26 287,088,520.12 2.60
National Defense 228,039,892.58 0.00 228,039,892.58 2.06
187,536,606.24 2,132,531.96 185,404,074.28 1.68
Colleges
Labor and
166,551,465.85 197,111.66 166,354,354.19 1.51
Employment
Agrarian Reform 156,921,742.31 0.00 156,921,742.31 1.42
Science and
89,182,943.00 0.00 89,182,943.00 0.81
Technology
Sub- total 12,401,110,150.92 1,416,127,056.83 10,568,651,684.85 95.63
Other Departments 66,842,949.04 0.00 483,174,358.28 4.37
Total 12,467,953,099.96 (1,416,127,056.83) 11,051,826,043.13 100.00
6.2 Lease Receivable
This major group of account refers only to Operating Lease Receivable.
» Operating Lease Receivable
This account refers to lease income already earned but not yet
collected. As of year-end, Operating Lease Receivable had an aggregate
amount of P1.27 billion, net of Allowance for Impairment of P1.57 million.
77
The following departments reported operating lease receivables:

Department/Office Amount Net Book Value
Impairment to Total
Transportation and
1,200,168,862.47 0.00 1,200,168,862.47 94.78
Communication
Tourism 37,115,005.41 1,565,441.00 35,549,564.41 2.81
22,700,464.15 1,883.49 22,698,580.66 1.79
Colleges
Agriculture 7,408,730.00 0.00 7,408,730.00 0.59
Science and Technology 387,228.42 0.00 387,228.42 0.03
Total Lease Receivables 1,267,780,290.45 1,567,324.49 1,266,212,965.96 100.00
The DOTC reported Operating Lease Receivable of P1.20 billion

which represents receivables from MRTDC, Greenfield Development
Corporation for the payment of developmental rights, PFPSI for the
installment sale of MV 2 and Bayantel for PCOs.
Aging of the account is as follows:
Particulars Amount
Not yet Due 14,902,228.41
Less than 90 days 24,871,449.15
91 to 365 days 2,629,805.04
Over 1 year 1,157,765,379.87
Total 1,200,168,862.47
Based on the Audit Observation Memorandum No. 15-005-101

dated May 5, 2015 issued by the COA the recording of the conditional
Lease Receivable from MRTDC amounting to P1.29 billion was stopped
until the dispute between DOTC and MRTDC is finally resolved.
6.3 Inter-Agency Receivables
This major group of accounts pertains to receivables from NGAs, GOCCs,

and LGUs. At the end of the year, this group of receivables with an aggregate
balance of P683.34 billion shared 78.84 percent of the total receivables. It consists
of the following accounts:
Percent
Accounts Amount
to Total
Due from National Government Agencies 85,720,642,625.78 12.54
Due from Government-Owned and/or 531,781,199,541.12 77.82
Controlled Corporations
Due from Local Government Units 65,838,511,406.20 9.64
Total Inter-Agency Receivables 683,340,353,573.10 100.00
Schedule 19, Vol. II shows the complete list of agencies with balances of
Inter-Agency Receivables as of the end of the year.
78
» Due from NGAs
This account refers to advances and/or fund transfers to national

government agencies for the purchase of goods or services as authorized by
law, for the implementation of projects, and for other receivables.
The departments with the highest figures for this account are as
follows:
Percent
to Total
Finance 12,490,983,204.41 14.57
Science and Technology 11,029,911,687.86 12.87
Agriculture 9,557,178,190.24 11.15
Interior and Local Government 7,462,798,516.13 8.71
Education 5,737,605,193.31 6.69
Public Works and Highways 5,156,006,694.94 6.01
National Defense 4,415,599,322.55 5.15
Agrarian Reform 3,639,167,959.27 4.25
Environment and Natural Resources 3,242,199,094.85 3.78
Sub- total 69,998,295,413.37 81.66
Other Departments 15,722,347,212.41 18.34
Total 85,720,642,625.78 100.00
Of the total amount for DOF, the BOC reported P11.62 billion
representing 93.03 percent. The DOST-OSEC reported P5.04 billion and its
attached agencies; PCIERRD, SEI, and PNRI reported P1.73 billion, P1.56
billion, and 1.26 billion, respectively.
The DPWH reported a total of P5.16 billion for account Due from
NGAs, P4.54 billion of which was taken from the books of the OSEC of
which P3.83 billion represents receivables from CHED.
» Due from GOCCs
Account Due from GOCCs shows a balance of P531.78 billion. Of

this amount, P503.40 billion or 94.66 percent was reported by the BTr,
details of which are as follows:
Particulars Amount
1. NG’s refinancing of BSP advances/payments on liabilities retained with 279,142,293,482.21
CB-BOL
2. NG advances in behalf of GOCCs/GFIs for their foreign and domestic 185,069,208,937.63
obligations (principal, interests and other charges)
3. Guarantee fee receivables from GOCCs/GFIs 20,717,170,360.50
3 4. NG Advances for assumed GOCCs/GFIs guaranteed obligations 6,865,782,588.48
5. Dormant accounts subject to verification and consequently will be 6,550,144,975.46
requested for write-off
6. Overdue accounts from Loans Receivable which were reclassified to Due 2,853,592,457.37
from GOCCs
7. Balance of loans outlay released to LBP under the Agrarian Reform Loans 1,259,090,465.17
8. NG Receivable from BSP on IMF remuneration on the reserve tranche 625,843,297.40
79
Particulars Amount
9. Balance of DBP’s outstanding obligations to the NG relative to the 245,294,149.84
Northern Cement Corp. covered by Deed of Assignment of Rights and
Interest between DBP and PMO involving the transfer to NG through
PMO of DBP’s receivables from the DAR/LBP arising from DBP’s
transfer to DAR of agricultural lands pursuant to EO. No. 407 dated June
14, 1990.
10. Others 74,331,622.82
Total 503,402,752,336.88
The DSWD reported P7.02 billion or 1.32 percent of the account

Due from GOCCs broken down as follows:
Particulars Amount
CY 2015
Land Bank of the Philippines 6,390,799,499.88
CY 2014 and Prior Years

Philippine International Trading Corp. 594,129,474.07
Technology and Livelihood Resource Center 23,500,000.00
National Food Authority 10,804,705.00
Tanay Water District 657,000.00
National Kidney and Transplant Institute 189,635.35
People’s Television Network, Inc. 59,678.25
Total 7,020,139,992.55
The balance of P6.39 billion due from the Land Bank of the
Philippines pertains to fund transfers for the over-the-counter payment of
cash grants of Pantawid Pamilya beneficiaries as of December 31, 2015.
The funds due from the Philippine International Trading Corp. of

P594.13 million pertains to the balances transferred for the emergency
procurement of goods and services under the Yolanda Recovery and
Rehabilitation Program in the amounts of P478.05 million and P116.07
million in CY 2013 and 2014, respectively.
The balance of P10.80 million from the National Food Authority

represents the unliquidated cash advance for the implementation of the
Food for Work Program in Camarines Sur in the prior year. This aims to
alleviate the living conditions of the poor through a comprehensive
intervention that addresses the basic food and socio-economic needs to
enable them to become self-reliant by providing employment and/or
livelihood opportunities to sustain the family income. A food coupon worth
P1,200.00 per month as assistance have been distributed to the beneficiaries
of Eastern Samar, Camarines Sur, Sultan Kudarat, Sulu and Maguindanao
and P4.70 thousand for the product sampling and laboratory
testing/analysis for rice and soy meal donation.
The funds transferred to Technology and Livelihood Center,

National Kidney Transplant Institute, and People’s Television Network,
Inc. in the amounts of P23.50 million, P189.63 thousand and P59.68
thousand, respectively, pertain to training and livelihood programs,
80
assistance, and augmentation supports funded by PDAF of various
legislators. Despite various demand letters requiring the submission of
liquidation reports, these accounts remained unliquidated as of December
31, 2015.
The DA reported P4.26 billion for account Due from GOCCs. This
represents transfers made by the Regional Offices and bureaus to GOCCs
and by the OSEC to the LBP for ACEF Project for the implementation of
DA various projects.
The DOTC reported P2.21 billion for account Due from GOCCs,
Particulars Amount
Reported by DOTC -CO
1. From various GOCCs for the implementation of
various infrastructure projects; and legal fees for
arbitration cases 1,860,759,671.84
2. Amount transferred to the former Air Transportation
Office, now CAAP, which will form part of CAAP’s
equity once reconciled 95,530,991.09
3. Reported by DOTC-CAR 3,389,795.65
4. For LTFRB, the balance of advance payment made by
LTFRB to Philippine Airlines for the purchase of plane
tickets in connection with the Regional Management
Conference that was supposed to have been held on
January 14-16, 2005; but unfortunately was not pushed
through. Some of the tickets have been used in
subsequent trips while some have already become
invalid due to the expiration of the period within which
to use them. 34,555.00
5. For LTO Region VIII – unreconciled balance 32,447.13
6. Others 248,482,885.33
Total 2,208,230,346.04
» Due from Local Government Units
This account represents balances of funds transferred to LGUs. The

departments with the biggest balances of this account are the following:
Percent
to Total
Social Welfare and Development 24,920,638,752.76 37.85
Agriculture 11,082,519,562.55 16.83
Health 4,101,111,517.45 6.23
Agrarian Reform 2,192,341,413.64 3.33
Labor and Employment 1,546,258,284.42 2.35
Autonomous Region of Muslim Mindanao 1,142,787,334.54 1.74
Metro Manila Development Authority 1,029,759,386.05 1.56
Other Executive Offices 863,654,091.52 1.31
Sub-Total 62,005,543,746.78 94.18
Total 65,838,511,406.20 100.00
81
The DSWD-OSEC, DILG and DA reported Due From LGUs of
P24.92 billion, P13.21 billion and P11.08 billion, respectively, a total of
49.21 billion or 74.74 percent.
Of the amount reported by the DA, P9.34 billion consists of funds

transferred to LGUs by the OSEC, RFUs and bureaus for the
implementation of various infrastructure projects and post-harvest facilities
projects such as Farm to Market Roads, SWIP, farm inputs/implements and
repair and rehabilitation of existing irrigation.
6.4 Intra-Agency Receivables
Intra-Agency Receivables of P16.54 billion representing 1.91 percent of the

total receivables of the NG are reciprocal accounts that subsist between the Central
Office, Staff Bureaus, Regional Offices and Operating Units within the agency and
which accounts should have been reconciled with the Intra-Agency Payable
accounts at the end of the year upon consolidation of the department/agency
accounts. Balances of this account aggregated to P16.54 billion representing 1.91
percent of the total receivables of the NG, details as follows:
Percent
to Total
Due from Central Office 1,480,298,717.69 8.95
Due from Bureaus 135,767,795.68 0.82
Due from Regional Offices 5,143,646,538.28 31.10
Due from Operating Units 9,634,606,672.33 58.26
Due from Other Funds 142,953,957.71 0.86
Total Intra-Agency Receivables 16,537,273,681.69 100.00
The following departments reported balances of Intra-Agency Receivables:
Percent
to Total
Education 6,011,495,768.69 36.35
Autonomous Region of Muslim Mindanao 1,320,406,140.15 7.98
Foreign Affairs 766,053,143.73 4.63
Agriculture 695,672,982.95 4.21
National Defense 632,275,754.90 3.82
Finance 455,714,398.38 2.76
Health 399,709,719.99 2.42
Sub-Total 15,751,823,601.77 95.25
Total 16,537,273,681.69 100.00
Schedule 14, Vol. II of this report shows the complete list of agencies with
balances of Intra-Agency Receivables as of the end of the year.
82
6.5 Other Receivables
This major account with P72.48 billion, net of P23.98 million Allowance
for Impairment represents 8.36 percent of the total receivables of the NG. It
consists of the following accounts:
Amount
Allowance Percent
Major Accounts
Gross for Net to Total
Impairment
Receivables -
Disallowances/Charges 7,060,426,480.26 0.00 7,060,426,480.26 9.74
Due from Officers and
Employees 827,247,006.96 0.00 827,247,006.96 1.14
Due from NGOs/POs 16,981,805,942.39 0.00 16,981,805,942.39 23.43
Other Receivables 47,640,220,094.71 23,981,074.63 47,616,242,017.58 65.69
Total Other Receivables 72,509,702,611.51 23,981,074.63 72,485,721,537.19 100.00
» Receivables – Disallowances/Charges
Disallowances in audit due from public and private entities or

individuals which have become final and executory are recorded to
account, Receivables – Disallowances/Charges. The following departments
reported balances of this account:
Percent to
Total
Finance 1,987,364,740.07 28.15
Agriculture 399,502,773.95 5.66
Education 374,130,332.22 5.30
Health 319,425,549.18 4.52
Interior and Local Government 256,238,661.18 3.63
Autonomous Region of Muslim Mindanao 173,038,410.78 2.45
Sub- total 6,287,071,656.16 89.05
Total 7,060,426,480.26 100.00
Among the departments, the DOF declared the biggest amount of

disallowances in the amount of P1.99 billion or 28.15 percent of the total
disallowances of the NG of which P1.92 billion or 27.20 percent was
reported by the BOC, followed by PVAO of the DND with P1.24 billion or
17.56 percent and by the DPWH-OSEC with P1.06 billion or 15.01
percent; a total of 59.67 percent by the three agencies.
» Due from Officers and Employees
This account with a total of P827.25 million, representing 1.14

percent of the other receivables, includes claims from agency officers and
employees for overpayments of salaries and other personnel benefits and
expenses, cash shortages, losses of assets and other bills.
83
The following departments reported the highest amounts of claims
from their officers and employees:
Percent
to Total
Education 191,113,656.23 23.10
Agriculture 93,815,253.05 11.34
Finance 66,625,315.12 8.05
The Judiciary 47,456,711.83 5.74
Transportation and
Communication 34,384,057.99 4.16
Health 31,138,157.39 3.76
Environment and Natural
Resources 26,707,416.20 3.23
Sub-total 717,848,742.92 86.78
Total 827,247,006.96 100.00
» Due from Non-Government Organizations/People’s Organizations
This account with P16.98 billion shared 23.43 percent of the Other
Receivables of the NG.
The departments contributing to this account are as follows:
Percent
to Total
Agriculture 1,965,103,681.22 11.57
Finance 311,450,993.69 1.83
Health 212,249,275.27 1.25
Trade and Industry 58,250,566.39 0.34
Sub-total 16,814,663,970.85 99.02
Total 16,981,805,942.39 100.00
The DSWD reported a total of P11.30 billion which includes P1.16

billion representing funds released to various Non- Government
Organizations from CY 2012 and prior years funded from Congressional
initiatives, Congressional Development Funds, and PDAF of various
solons; for the implementation of Bottoms Up Budgeting; funds released to
non-formal organizations/groups like the Day Care Workers Groups and
Parents Federation for Supplementary Feeding Program, MCCT Projects,
livelihood and KALAHI CIDSS Projects under BUB and NCDDP project
transferred to Barangay Communities in CY 2015.
84
The DSWD further reported that the account includes fund
transferred to International Organization for Migration (IOM) amounting to
P268.93 million which consists of CY 2014 and 2015 fund transfers of
P68.00 million and P200.98 million, respectively. These fund transfers are
for the construction of 700 single-detached Transitional Shelters and
WASH Facilities for Zamboanga Crisis-affected populations and for
developing capacity of the Philippines DSWD to train families and
communities in evacuation preparedness. The DSWD Internal Audit
Service is conducting validation on the liquidation reports submitted by the
IOM.
» Other Receivables
This account which represents receivables from other debtors and

agencies or entities not falling under any of the specific receivable accounts
has an aggregate balance of P47.62 billion, net of Allowance for
Impairment of P23.98 million sharing 65.69 percent of the Other
Receivables. The following departments reported the biggest balances of
this account:
Percent
to Total
Finance 34,248,270,939.29 71.93
Commission on Election 2,003,117,436.18 4.21
National Economic and Development 760,942,997.16 1.60
Authority
Health 425,963,115.25 0.89
Office of the President 320,569,060.52 0.67
Sub-total 46,481,794,276.43 97.62
Total 47,616,239,020.08 100.00
The DOF-PMO reported P15.60 billion for Other Receivables

account, details of which include as follows:
Particulars Amount
1. Receivable from the disposition:
Philnico Mining and Industrial Corporation - for the unpaid sales price of 13,860,085,148.00
Nonoc Mining and Industrial Corporation (NMIC) which emanated from a
contract denominated as Amended and Restated Definitive Agreement
(ARDA) by among PMO (then APT), Philnico Mining and Industrial
Corporation and Philnico Processing Corporation dated May 10, 1996
covering the acquisition by Philnico from APT of the 22,500,000 shares of
common stock of NMIC with a sales price of US$263,762,000.00 plus (a)
$29,770,000.00, advances made for the settlement of receivables of Marc
Rich and Philipp Brothers Oceanic, Inc.; and (b) P74,501,000.00, advances
for the settlement of labor claims against NMIC’s assets.
85
Particulars Amount
Philnico made total payments of US$1,254,000.00 as of December 31, 2015
thus leaving a balance of US$292,278,000.00 equivalent to
P13,785,584,148.00 converted using the prevailing rate of US$1.00:P47.166
as of December 29, 2015 plus P74,501,000.00 or a total balance of
P13,860,085,148.00
PMO sought for the rescission of the ARDA due to Philnico’s default in more
than two (2) consecutive monthly amortizations as provided for in the ARDA.
2. G. Holdings, Inc. - for the unpaid balance of the cost of 4,500,000 shares of 241,702,122.86
stock of Maricalum Mining Corporation sold to G. Holdings, Inc. (GHI).
GHI filed a case for specific performance and damages with RTC Manila due
to conflicting interpretations of the reckoning date of payment of the balance
of the purchase price.
3. Pamplona Redwood and Veneer Corporation (PARVI) - for the outstanding 190,121,802.29
obligation of PARVI which was implicated with the auction by the Province
of Rizal, without the consent of PMO, of three (3) properties located in
Angono, Rizal, for delinquent real property taxes.
4. Provincial Government of Abra - for the balance on the sale of Cellophil 71,200,000.00
Resources to the Provincial Government of Abra (PGA) and gross of P30.00
million overdue account to be paid through offsetting the PGA’s tax claim
against PMO. This shall be adjusted upon receipt of documents from PGA
relative to the dropping of the case. This case is an appeal by APT (PMO) on
the claim of the Municipality of Tayum, Abra of unpaid real property taxes.
5. Pamintuan Development Company (PAMDEVCO) – represents the balance 10,066,000.00

on settlement price of its outstanding obligation pursuant to Compromise
Agreement between PMO and PAMDEVCO dated November 4, 2003
6. PMO has a pending request with COA for dropping of Other Accounts 174,255.26
Receivable from its books, viz: Calinog-Lambunao Sugar Mill –
P162,709.38; and Pigress – P11,545.88
2. Receivable due to the discrepancy on transfer price:

Development Bank of the Philippines - for the balance of the DBP on its 241,549,677.24
obligation due to the discrepancy in the transfer price of Northern Cement
Corporation. As payment, DBP assigned its receivable to PMO from
Department of Agrarian Reform/Land Bank of the Philippines per Deed of
Assignment of Rights and Interest dated 30 December 2003.
3. Receivable from leases:

a. Unimasters Conglomeration, Inc. (UCI) - for the outstanding lease rental of 29,250,000.00
UCI as lessee of Leyte Park Hotel. UCI filed a complaint for specific
performance, injunction and damages enjoining respondents PMO, Province
of Leyte and Philippine Tourism Authority from enforcing and implementing
take-over of Leyte Park Hotel.
b. Menzi Development Corp. (P8.00 million) – for the unpaid rental for the 8,000,000.00
three- month period, September to December 1989.
4. Various BOL receivables

Various accounts from the former BOL represent receivables from the defunct 941,980,959.04
government corporations
5. Receivable from other sources 1,622,246.08
86
Particulars Amount
6. Receivable from former PMO and APT employees:
This represents unliquidated cash advances on travel to various assets of
former APT employees 252,306.01
Total 15,596,004,516.78
The BIR reported Other Receivables of P14.50 billion which pertain

to the following:
Particulars Amount
1. Tax Credit Certificates (TCCs) and Tax Debit Memos (TDM) issued by various
BIR offices and DOF One-Stop-Shop to the taxpayers in acknowledgement of an
approved tax credit resulting from an overpayment of a tax liability, erroneous
payment of a tax due, or grant of tax incentives under existing laws. P13,290,183,774.38
This makes up 91.64 percent of the total Other Receivables presented by the BIR.
2. Outstanding balance of dishonored checks thru bank for the period 1987 to
December, 2015. 613,871,533.71
3. Bank penalties on delayed remittance of collection and procedural errors and

acceptance of dishonored checks as of December 31, 2015amounting
2,316,528.34
P2,209,528.34 and P107,000.00, respectively.
4. Outstanding balance of Municipal Treasurers designated as Revenue Collecting

Officers amounting to P35,664,385.84 and balance transfer from Cash-Collecting
76,951,619.11
Officers totalling P41,287,233.27.
5. Cash shortages of former RCOs during the year 1961-1970 who were no longer
in service and whose whereabouts could no longer be located.
Due to the absence of the complete documentary requirements per COA Circular 5,686,098.20
97-001 dated February 9, 1997, the said balance could not be requested from
COA for the dropping/write-off from the NG Book.
6. SL balance of RCOs on accountable forms (Documentary stamps, science

stamps auxiliary labels) for the period 1961-1989 previously recorded under the
account Accountable Forms Inventory. This balance will be gradually adjusted
upon receipt of the JEVs and supporting documents from the Regional Finance 304,440,853.22
Division for RCOs who have already been cleared of their outstanding
accountabilities.
7. Outstanding SL balance of BIR employees designated as Revenue

Attaché/Revenue Representative who are no longer in the service (retired,
resigned/dropped from the rolls and separated from the service.
7,565,704.56
Due to the absence of the complete documentary requirements per COA Circular
No. 97-001, the said balance could not be requested from COA for an authority
to drop/write-off from the NG Book.
8. Outstanding SL balance of DFA Finance Officers designated as Collecting Agents

of the BIR for Collection of internal revenue taxes from the Filipinos working
abroad. Based on confirmation made by the Office of Fiscal Management DFA,
the SL balance of FOs who were no longer in service (either dropped from the
6,511,582.49
rolls, separated, died) with positive balance of P208,666.32 and negative balance
of P149,947.15 were already requested for an authority to drop/write-off from the
Bureau’s Collection Books per letter request to COA dated December 03, 2012.
9. Outstanding dishonored check of Joyce Nipal, former Special Collecting Officer 4,928.80
87
Particulars Amount
assigned at the GSD of the National Office.
Letters were already sent by RAD to the said SCO requesting for the submission
of the supporting documents on the settlement /redemption of the DC in order
that necessary adjustments could be effected in the BIR Books.
10. Other Receivables – 10305990 (RO) pertaining to the outstanding balance of

dishonored checks and cash shortages of RCOs of RR Nos. 1 - 4, 6 – 19 who
were no longer in active service (absconded, died, dismissed, and already retired)
184,936,049.93
with pending request for write-off of accountabilities from the Commission of
Audit (COA) as of December 31, 2015 from RR Nos. 8 and 11.
11. Other Receivables reported by the NO 10,360,990.05

Total 14,502,829,662.79
Among the other agencies, under the DOF, the BTr reported a total
of P524.62 million in Other Receivables, details of which are as follows:
Particulars Amount
Traders Royal Bank – with court cases and waiting for 257,003,828.41
release of result of litigation from the Office of the
Solicitor General
Converted from 8-74-300 account pertaining to dishonored 153,607,234.15
Treasury Warrants with pending appeal to the
Supreme Court
Balance from Fund 102, to be requested for write-off 68,237,653.54
Default charges due from PMMA 31,334,306.99
Dormant for more than 10 years and was already
requested for write-off per letters dated February 21,
1992, September 24, 1996 and October 16, 1998 10,390,352.66
Loans Receivable from UBP (Brady Bonds) under the
1992 Philippine Financing Plan 4,052,148.00
Total 524,625,523.75
Note 7: Inventories
Inventories with an aggregate balance of P52.83 billion as of the end of the year
represents 3.23 percent of the total current assets of the NG. It consists of the following
major accounts:
Percent
to Total
Inventory Held for Sale 1,695,587,536.88 3.21
Inventory Held for Distribution 20,904,637,397.88 39.57
Inventory Held for Manufacturing 885,175,598.51 1.68
Inventory Held for Consumption 29,343,125,677.06 55.54
Semi-Expendable Machinery & Equipment 3,407,582.99 0.01
Total Inventories 52,831,933,793.32 100.00
88
7.1 Inventory Held for Sale
» Merchandise Inventory
This account refers to the cost of goods

purchased/acquired/produced which are intended for sale in the ordinary
course of business. It includes supplies and materials, drugs and medicines,
agricultural produce, ammunitions, property and equipment, and others.
The following departments reported the highest balances of

Merchandise Inventory:
Percent
to Total
Health 696,337,215.60 41.07
Tourism 2,005,047.82 0.12
National Economic and 929,450.46 0.05
Development Authority
Education 638,601.64 0.04
Labor and Employment 469,066.50 0.03
Agriculture 152,708.00 0.01
Total 1,695,587,536.88 100.00
The amount reported by the DBM of P805.22 million was taken

from the books of the Procurement Service. Together with the amount of
P696.34 million which pertains to drugs and medicines as reported by the
DOH, both agencies have the bulk of Merchandise Inventory totaling P1.50
7.2 Inventory Held for Distribution
This major group of accounts is specifically recorded in the following

accounts:
Percent
Accounts Amount
to Total
Food Supplies for Distribution 41,039,306.89 0.20
Welfare Goods for Distribution 1,211,599,996.29 5.80
Drugs and Medicines for Distribution 11,135,082,480.24 53.27
Medical, Dental and Laboratory Supplies for 9.40
Distribution 1,965,137,126.12
Agricultural and Marine Supplies for 1,531,637,822.88 7.33
Distribution
Agricultural Produce for Distribution 248,696,609.95 1.19
Textbooks and Instructional Materials for 511,936,620.19 2.45
Distribution
Construction Materials for Distribution 61,089,926.81 0.29
Property and Equipment for Distribution 2,783,804,833.24 13.32
Other Supplies and Materials for Distribution 1,414,612,675.27 6.77
Total 20,904,637,397.88 100.00
89
» Welfare Goods for Distribution
Of the total Inventory Held for Distribution, P1.21 billion or 5.80

percent pertain to Welfare Goods for Distribution of which P1.20 billion or
99.17 percent was reported by the DSWD. This represents the cost of food
supplies used for production of family food packs and non-food supplies
for distribution to individuals affected by various calamities, disasters and
ground conflicts. This also includes the Central Office monetized value of
donations received prior to the issuance of COA Circular No. 2014-002
dated April 15, 2014, and from locally purchased inventories out of the
General Appropriations Act amounting to P31.02 million and P915.71
million, respectively.
» Drugs and Medicines for Distribution

percent pertain to drugs and medicines
The DOH reported P11.13 billion or 99.91 percent of Drugs and

Medicines for distribution to patients and hospitals.
» Medical, Dental and Laboratory for Distribution

percent pertain to Medical, Dental and Laboratory. The DOH reported
P1.93 billion or 98.47 percent.
» Agricultural and Marine Supplies for Distribution

percent pertain to Agricultural and Marine Supplies for Distribution of
which the DA reported P1.40 billion representing 91.50 percent.
» Property and Equipment for Distribution
The Property and Equipment for Distribution were reported by the

following departments:
Percent
to Total
Agriculture 1,228,257,655.50 44.12
Health 300,018,779.49 10.78
Education 8,500,444.22 0.31
National Economic and Development Authority 777,499.40 0.03
Sub - Total 2,783,564,982.36 99.99
Other Departments 239,850.88 0.01
Total 2,783,804,833.24 100.00
90
The DA reported the biggest value of property and equipment for
distribution at P1.23 billion representing 44.12 percent.
The DOTC also reported P684.20 million or 24.58 percent, P286.55

million of which was reported by the DOTC –OSEC which includes IT
equipment procured for distribution to the beneficiaries of sponsoring
Congressmen in the amount of P128.46 million; PCG Disaster/rescue
equipment of P157.65 million; Air Cooler for the NAIA Terminal I for
P440.00 thousand.
The DOST and the DOH reported P332.41 billion or 11.94 percent
and P300.02 billion or 10.78 percent, respectively.
7.3 Inventory Held for Manufacturing
This major account with P885.17 million shares 1.68 percent of the total
inventories of the NG. It is composed of the following accounts:
Percent
Accounts Amount
to Total
Raw Materials Inventory 573,304,709.92 64.77
Work in Process Inventory 164,312,711.63 18.56
Finished Goods Inventory 147,558,176.96 16.67
Total 885,175,598.51 100.00
The Government Arsenal of the DND reported P492.25 million of Raw

Materials Inventory representing 85.91 percent of the total for the NG. It also
reported a total of P82.98 million of Finished Goods Inventory or 56.23 percent
which consists of assorted ammunition which were not yet transferred to the
different DND offices. For CY 2015, total production of 37,184,114 rounds of
ammunition were turned-over to the Supply Officer with a total cost of P692.72
million.
Likewise, the DND reported P114.11 million or 69.45 percent of the total
Work-in- Process Inventory; while the SUCs reported P35.82 million or 21.80
percent and PCOO of 11.20 million or 6.82 percent.
7.4 Inventory Held for Consumption
This category with an aggregate amount of P29.34 billion as of the end of

the year represents 55.54 percent of the total inventories of the NG. It includes the
cost of purchases/acquisitions of inventory intended for consumption in the
ordinary course of business of an agency. The specific accounts and their balances
as of the end of the year are as follows:
Percent
Accounts Amount
to Total
Office Supplies Inventory 4,120,743,430.68 14.04
Accountable Forms, Plates, and Stickers Inventory 1,297,599,872.5 4.42
Non-Accountable Forms Inventory 135,607,696.44 0.46
Animal/Zoological Supplies Inventory 16,250,351.01 0.06
Food Supplies Inventory 565,531,758.34 1.93
91
Percent
Accounts Amount
to Total
Drugs and Medicines Inventory 2,386,505,374.08 8.13
Medical, Dental, and Laboratory Supplies Inventory 2,909,586,408.09 9.92
Fuel, Oil and Lubricants Inventory 2,292,734,297.48 7.81
Agricultural and Marine Supplies Inventory 704,026,73.43 2.40
Textbooks and Instructional Materials Inventory 2,762,701,554.8 9.42
Military, Police, and Traffic Supplies Inventory 4,855,881,0147.25 16.55
Chemical and Filtering Supplies Inventory 36,057,207.17 0.12
Construction Materials Inventory 772,253,752.95 2.63
Other Supplies and Materials Inventory 6,487,646,752.84 22.11
Total 29,343,125,677.06 100.00
7.5 Semi-Expendable Machinery and Equipment
This major account is composed of the following accounts:
Percent
Accounts Amount
to Total
Machinery 0.00 0.00
Office Equipment 455,579.84 13.37
Information and Communications Technology 188,832.70 5.54
Equipment
Disaster Response and Rescue Equipment 61,448.40 1.80
Furniture and Fixtures 2,701,722.05 79.29
Semi-Expendable Books 0.00 0.00
Total 3,407,582.99 100.00
Among the departments/agencies, only the NEDA and the DOF-BOC with
P3.36 million and P47.74 thousand, respectively, made an advance implementation
of the GAM relative to the policy on the recognition of Semi-Expendable Items.
Note 8. Other Current Assets
8.1 Advances
This major group of accounts in the total amount of P13.71 billion

representing 17.29 percent of other assets is broken down as follows:
Amount Percent to
Accounts
Total
Advances for Operating Expenses 3,986,862,831.36 29.08
Advances for Payroll 1,666,457,738.37 12.16
Advances to Special Disbursing Officers 6,665,522,053.84 48.62
Advances to Officers and Employees 1,390,133,439.06 10.14
Total 13,708,976,062.63 100.00
» Advances for Operating Expenses
This refers to the unliquidated amount of advances granted to

accountable officers for payment of operating expenses of operating/field
units and foreign posts not maintaining complete set of books of accounts.
As of the end of the year, this account has a balance of P3.99 billion
92
representing 29.08 percent of the total advances. The departments with big
balances of this account are as follows:
Percent
to Total
Education 2,260,483,867.27 56.70
Agriculture 116,317,528.55 2.92
Presidential Communications Operations Office 29,397,477.74 0.74
Sub-total 3,873,782,711.18 97.16
Total 3,986,862,831.36 100.00
» Advances for Payroll
This account with a balance of P1.67 billion as of the end of the

year representing 12.16 percent of the total advances refers to the balance
of cash advances granted to special disbursing officers for payment of
salaries, wages, honoraria, allowances and other personnel benefits. The
departments with big balances of this account are as follows:
Percent
to Total
Education 546,688,319.58 32.81
Health 78,963,129.49 4.74
Agriculture 73,865,490.11 4.43
Justice 13,416,474.76 0.81
Sub-total 1,597,885,595.80 95.89
Total 1,666,457,738.37 100.00
» Advances to Special Disbursing Officers
This account with P6.67 billion or 48.62 percent of the Advances

refers to the unliquidated cash advances granted to agency’s accountable
officers and employees for special purpose/time-bound undertakings to be
liquidated within a specified period. It also includes labor payroll for
projects undertaken by administration.
93
The departments with big balances of this account are as follows:
Percent
to Total
Education 819,390,290.77 12.29
Justice 796,484,540.81 11.95
Commission on Elections 570,765,442.13 8.56
Agriculture 178,779,132.53 2.68
Sub-total 6,298,255,603.86 94.49
Total 6,665,522,053.84 100.00
» Advances to Officers and Employees
As of the year-end, this account showed a balance of P1.39 billion

representing 10.14 percent of the total Advances refers to the amount
advanced to officers and employees for official travel. The departments
with big balances of this account are as follows:
Percent
to Total
Education 494,007,406.92 35.54
Justice 84,833,828.07 6.10
Agriculture 71,892,800.72 5.17
Health 70,667,498.54 5.08
Social Welfare and Development 49,081,358.17 3.53
Sub-total 1,134,975,164.43 81.65
Total 1,390,133,439.06 100.00

departments with balances of the Advances accounts as of the end of the
year.
8.2 Prepayments
The current portion of this major account in the total amount of P40.71
billion is composed of the following accounts:
Percent
Accounts Amount
to Total
Advances to Contractors 37,084,874,340.2 91.09
Prepaid Rent 567,676,547.65 1.39
Prepaid Registration 7,671,271.08 0.02
94
Percent
Accounts Amount
to Total
Prepaid Interest 1,460,207,660.10 3.59
Prepaid Insurance 215,137,500.63 0.53
Other Prepayments 1,375,344,696.82 3.38
Total 40,710,912,016.48 100.00
» Advances to Contractors
This account refers to advances to contractors as authorized by law.

Its significant balance of P37.08 billion makes up 91.09 percent of the total
prepayments. The departments with big balances of this account, arranged
from highest to lowest, are as follows:
Percent
to Total
Transportation and Communication 5,433,932,973.85 14.65
Health 2,463,338,833.06 6.64
Education 602,275,971.41 1.62
Agriculture 464,552,740.89 1.25
Metro Manila Development Authority 216,623,067.01 0.58
Autonomous Region of Muslim 175,416,751.46 0.47
Mindanao
Sub-total 36,600,640,684.70 98.69
Total 37,084,874,340.20 100.00
» Other Prepayments
This account with P1.37 billion represents 3.38 percent of the total
prepayments of the NG.
8.3 Deposits
This major group of accounts with P24.85 billion represents 31.35 percent
of Other Current Assets. It is composed of the following accounts:
Percent to
Accounts Amount
Total
Deposit on Letters of Credit 17,569,641,705.57 70.70
Guaranty Deposits 7,241,781,292.78 29.14
Other Deposits 39,951,462.12 0.16
Total 24,851,374,460.47 100.00
95
» Letters of Credit
This account with a balance of P17.57 billion representing 70.70

percent of the total deposits was recorded by the following departments
arranged from highest to lowest:
Percent
to Total
Health 5,542,448,354.67 31.55
Agriculture 246,274,836.58 1.40
Office of the President 618,284.23 0.00
State Universities and Colleges 228,421.78 0.00
Presidential Communications Operations Office 193,949.34 0.00
Environment and Natural Resources 50,000.00 0.00
Total 17,569,641,705.57 100.00
Under the DND, the GHQ reported P8.15 billion which pertains to
deposits made with authorized government depository banks for the supply
and delivery of firearms, ammunitions, vehicular and communication
requirements of the AFP contracted with foreign suppliers and the cost of
freight forwarding. Of the total amount, P4.42 million represents the
amount for the purchase of motor vehicles and other items; however, it
remained dormant for more than 15 years due to the unavailability of the
related documents in the accounting office. Moreover, the Government
Arsenal reported P1.02 billion of this account consisting of
marginal/guaranty deposits for the opening of letters of credit for the
importation of raw materials and equipment. Guaranty Deposits represents
deposits on containers such as chlorine, gas and acetylene tanks and bond.
On the other hand, the amount of P246.27 million reported by the

DA represents balance of deposit made to LBP in favour of Sumitomo
Corporation for the procurement of Very Small Aperture Terminal
equipment to be used in setting up of the National Information Network
that will link DA-OSEC with regional field units as well as the provincial
coordinating units. Said equipment were already distributed to the RFUs
concerned.
» Guaranty Deposits
Guaranty Deposits with P7.24 billion represents 29.14 percent of

the total deposits of the NG.
96
The balances of Guaranty Deposits classified as current are reported
by the following departments:
Percent
to Total
Agriculture 6,421,151,801.57 88.67
Tourism 35,782,343.05 0.49
Health 26,217,112.14 0.36
Sub-total 7,136,574,250.75 98.55
Total 7,241,781,292.78 100.00
The amount reported by the DA includes P6.01 billion representing

contribution/augmentation to the Agricultural Guarantee Pool Fund for
Rice Self-Sufficiency Program of the government per Administrative Order
No. 244 dated October 23, 2008 issued by the Office of The President.
» Other Deposits
This account showed a balance of P39.95 million or 0.16 percent

only of the total deposits of the NG.
The balances of Other Deposits classified as current are reported by

the following departments:
Percent
to Total
Congress of the Philippines 1,332,217.11 3.33
Civil Service Commission 1,033,304.91 2.59
National Defense 925,211.78 2.32
Transportation and Communication 655,755.87 1.64
Health 529,495.00 1.33
Sub-total 39,102,579.07 97.88
Total 39,951,462.12 100.00
97
Non- Current Assets
Note 9. Investments
Long-term Investments of the NG aggregated to P1.06 trillion at year-end and it
represents 33.37 percent of the total non-current assets of the NG.
Percent
Accounts Amount
to Total
Financial Assets–Held to Maturity
Investments in Treasury Bonds- Local 16,405,205,948.51 1.54
Financial Assets – Others
Investments in Stocks 71,290,939,368.23 6.71
Investments in Bonds 4,779,449,047.13 0.45
Other Investments 16,150,362,756.37 1.52
Investments in GOCCs 226,948,255,833.79 21.37
Sinking Fund 726,601,022,434.74 68.41
Total Investments 1,062,175,235,388.77 100.00
9.1 Financial Assets –Held to Maturity
» Investments in Treasury Bonds – Local
The BTr reported Investments in Treasury Bonds – Local of P16.15

billion representing 98 percent of the total for the NG. This pertains to NG
investments in Treasury Bonds out of the funds managed/administered by
the BTr, details are as follows:
Particulars Amount
NG-SGF 251,347,374.07
SSF 3,326,800,691.46
MWSS-SRF 327,700,656.05
PCGG 12,245,145,000.01
Total 16,150,993,721.59
9.2 Financial Assets - Others
» Investments in Stocks
Investments in Stocks of P70.20 billion or 77.30 percent of the total

Financial Assets – Others was reported by the BTr consisting of NG
subscriptions to the capital stocks of international financial institutions, as
follows:
Particulars Amount
International Monetary Fund 65,913,730,022.81
Asian Development Bank 2,479,734,291.31
International Bank for Reconstruction &
Development 1,163,127,225.84
International Development Association 564,205,820.22
International Finance Corporation 50,876,875.20
Multilateral Investment Guarantee Agency 29,097,414.50
Total 70,200,771,649.88
98
» Investments in Bonds
Investments in Bonds with a balance of P4.78 billion was also

reported by the BTr pertaining to NG investments in National Irrigation
Administration Bonds.
The purchase of the NG of a 10-year 8.375 percent NIA Bonds due

in FY 2013 with a face amount of USD97 million was approved by the
Monetary Board of the BSP under its Resolution No. 1511 dated October
15, 2003, based on the proposal of the ROP to settle the obligation of NIA
arising from taxes paid by the California Energy (CE) Casecnan Water and
Energy Company, Inc. (Casecnan), pursuant to the Supplemental
Agreement to the Amended and Restated Casecnan Project Agreement
between NIA and Casecnan, which involves the following simultaneous
transactions:
1. Issuance by ROP of 10-year USD97 million Bonds, the proceeds of

which shall be used to purchase NIA bonds;
2. Issuance by NIA of 10-year USD97 million Bonds guaranteed by the

ROP, the proceeds of which shall be used to pay its obligation to
Casecnan for taxes paid by Casecnan for the Multi-Purpose Project; and
3. Purchase by Casecnan of the ROP Bonds.
The Investment in NIA Bonds was already requested for

reclassification to NG Advances to NIA given the circumstances
surrounding the issuance of NIA Bonds wherein NG was the
investor/buyer, using the proceeds from ROP issued bonds, to allow NIA to
settle its obligations to Casecnan.
» Other Investments
The total Other Investments of P16.15 million was reported by the

BTr which pertain to investments in administered fund by DBP and
Technological Education Skills and Development Authority in Fixed Term
Note (DBP-AITTP-FXTN).
9.3 Investments in GOCCs
The total Investments in GOCCs of P226.95 billion was also reported by

the BTr which consists of the following:
Particulars Amount
NG Equity in non- stock GOCCs 117,628,300,426.73
NG Equity in stock GOCCs 99,939,038,029.60
NG Equity in non- stock GOCCs which were already defunct,
converted to other NGAs and non-GOCCs 9,354,761,740.25
NG Equity in unidentified GOCCs/Accounts 26,155,637.21
Total 226,948,255,833.79
99
9.4 Sinking Fund
The total NG Investments in Sinking Fund classified as non-current

amounted to P726.60 billion was reported by the BTr. It includes accounts of NG-
issued, NG-guaranteed LBP and National Food Authority being
administered/managed by the BTR, broken down as follows:
Particulars Amount
BSF – Securities (Bonds) 627,267,857,060.84
BSF – Securities (ROP) 99,333,165,373.90
Total 726,601,022,434.74
Note 10: Receivables

The non-current portion of Receivables of the National Government is composed
only of the major account group Loans and Receivables Accounts.
10.1 Loans and Receivable Accounts
This major group of accounts with an aggregate balance of P202.88 billion

representing 100 percent of the total non-current receivables of the NG consists of
the following accounts:
Percent
Accounts Amount
to Total
Notes Receivable 137,012,596,003.99 67.53
Loans Receivable – GOCCs 63,044,260,243.15 31.07
Loans Receivable – LGUs 1,768,766,646.21 0.87
Loans Receivable – Others 836,029,475.95 0.41
Interest Receivable 221,292,762.05 0.11
Total Non- Current Loans and Receivables 202,882,945,131.35 100.00
No Allowance for Impairment was reported for any of the Loans and
Receivables accounts.
» Notes Receivable
The entire amount P137.01 billion representing 67.53 percent of the

total non-current Loans and Receivables refers to a promissory note which
is accounted as non-current Notes Receivable in the books of the BTr. This
was issued by the Central Bank - Board of Liquidators (CB-BOL) in favor
of the Treasurer of the Philippines in substitution of the frozen/retained
deposits in the CB-BOL. Issuance of a new promissory note in support of
this balance had been requested from the CB-BOL.
» Loans Receivable- GOCCs
This account with P63.04 billion represents 31.07 percent of the

total non-current Loans and Receivables.
100
Of the total, the BTr reported P62.44 billion representing advances
made by the NG to the creditors in behalf of GOCCs when the latter are
unable to pay their loans. This BTr account represents 99.05 percent of the
total Loans Receivables – GOCCS of the NG.
» Loans Receivable –LGUs
This account with a balance of P1.77 billion was reported solely by

the DOF specifically the MDFO.
» Interest Receivables
This account was reported by the DOF particularly by the MDFO

with P217.03 million and by the PMO with P4.26 million.
» Loans Receivable – Others
Only three departments reported balances of Non-Current

Receivables – Others as follows:
Percent
to Total
Agriculture 794,372,995.64 95.02
Finance 40,204,166.73 4.81
Total 836,029,475.95 100.00
The total amount for the DA was reported by the ACPC

representing 11 percent of the total non-current assets.
Note 11: Investment Property

As of the end of the year, this account showed a total of P3.55 billion. It consists of
Amount
Accounts Accumulated
Gross Net Book Value
Impairment Losses
Investment Property - Land 3,365,686,715.62 (4,052,964.65) 3,361,633,750.97
Investment Property - Buildings 281,236,699.93 (125,483,098.80) 155,753,601.13
Construction in Progress-Investment
Property, Buildings 29,708,138.17 0.00 0.00
Total Investment Property 3,676,631,553.72 (129,536,063.45) 3,547,095,490.27
Only three departments reported investment properties as follows:
Percent
to Total
Finance 3,392,960,236.33 95.65
Total 3,547,095,490.27 100.00
101
Of the total amount reported by the DOF, the BTr declared Investment Property -
Land in the total amount of P3.35 billion or 98.82 percent consisting of the following:
Particulars Amount
1. Reclaimed land transferred by the PNCC; the portion of the land
equivalent to P1,515,680,000.00 was part of APT’s recovery from
PNCC account and the portion of the land equivalent to
2,025,680,000.00
P510,000,000.00 was DOF’s proportionate right which was assigned
to the BTr.
2. Real and other properties/transferred by Al-Amanah Islamic

Investment Bank of the Philippines to the NG in exchange for a
386,190,000.00
corresponding reduction in NG deposits
3. LBP property in Makati City transferred to the NG as property

dividend 383,333,333.33
4. NDC Pureza property transferred to the NG/Polytechnic University of

the Philippines as NDC’s payment of its obligations to the NG 258,713,403.00
5. Real properties obtained and transferred by the CB BOL to the ROP

through the BTr as partial settlement of the liability of CB BOL to the
157,612,500.00
NG
6. BSP property at P. Casal transferred to the NG as property dividend

138,472,000.00
Total 3,350,001,236.33
Note 12: Property, Plant and Equipment

The aggregate value of Property, Plant and Equipment (PPE) reached P1.76 trillion,
net of accumulated depreciation of P888.84 billion and impairment losses of P121.19
million.
PPE comprises the following major account groups:
Amount
Accumulated Percent to
Major Accounts Accumulated
Gross Amount Impairment Net Value Total
Depreciation
Losses
Land 193,143,717,095.81 0.00 0.00 193,143,717,095.81 11.03
Land Improvements 23,386,570,232.60 8,158,136,935.71 979,966.51 15,227,453,330.38 0.87
Infrastructure Assets 1,188,851,358,571.40 675,774,091,786.59 101,252.85 513,077,165,531.96 29.31
Buildings and Other
Structures 230,387,497,454.76 67,732,877,908.18 33,255,499.55 162,621,364,047.03 9.29
Machinery and Equipment 176,703,519,079.94 89,766,892,563.43 78,636,441.70 86,857,990,074.81 4.96
Transportation Equipment 65,173,606,720.32 34,999,884,461.24 1,228,461.93 30,172,493,797.15 1.72
Furniture, Fixtures and
Books 19,793,600,323.62 8,963,662,578.52 4,077,865.06 10,825,859,880.04 0.62
Leased Assets 1,959,461,159.13 425,078,888.85 0.00 1,534,382,270.28 0.09
Leased Assets
Improvements 0.00 0.00 0.00 0.00 0.00
Construction in Progress 718,780,655,706.70 0.00 0.00 718,780,655,706.70 41.06
Heritage Assets 904,123,319.85 415,928.66 0.00 903,707,391.19 0.05
Service Concession
Tangible Assets 11,863,548,341.83 0.00 0.00 11,863,548,341.83 0.68
Other PPE 8,484,074,300.17 3,019,916,101.14 2,914,575.60 5,461,243,623.43 0.31
Total 2,630,448,448,407.31 888,840,957,152.32 121,194,063.20 1,750,469,581,090.61 100.00
102
Among the major account groups of PPE, Construction in Progress got the biggest
share in the amount of P718.78 billion representing 41.06 percent, followed by
Infrastructure Assets with P675.77 billion or 29.31 percent. The departments which
reported the highest figures in terms of PPE are the following:
Percent to
Total
Public Works and Highways 1,140,184,307,991.74 65.14
Education 113,917,327,868.83 6.51
Finance 62,238,354,305.37 3.56
Health 36,056,567,198.16 2.06
Agriculture 28,529,180,915.82 1.63
Sub – total 1,656,892,303,876.06 94.65
Total 1,750,469,581,090.62 100.00
The DPWH reported the highest with P1.14 trillion or 65.14 percent. The DepEd
followed with P113.92 billion representing 6.51 percent.
Schedule 17, Volume II presents the details of Property Plant and Equipment by
department/office.
12.1 Land
This year, Land has a net book value of P193.14 billion. The departments
which reported this property are the following:
Percent
to Total
Finance 52,855,996,755.83 27.37
Education 12,700,083,089.74 6.58
Justice 877,394,269.42 0.45
Sub-total 187,153,803,542.23 96.90
Total 193,143,717,095.81 100.00
The DOF, DND, DSWD and SUCs reported a total of 80.82 percent of the
aggregate land owned by the NG.
103
12.2 Infrastructure Assets
Infrastructure Assets are completed Public Infrastructures. This group of

accounts has an aggregate total cost of P1.19 trillion with accumulated
depreciation of P 675.77 billion and impairment losses of P101.25 thousand
resulting to a net book value of P513.08 billion.
Components of Infrastructure Assets are as follows:
Amount
Accumulated
Accounts Accumulated Percent
Gross Impairment Net Book Value
Depreciation to Total
Losses
Road Networks 1,011,216,018,476.18 540,414,884,481.10 0.00 470,801,133,995.08 91.76
Flood Control Systems 160,744,992,109.73 129,510,875,508.72 0.00 31,234,116,601.01 6.09
Sewer Systems 66,203,384.64 10,270,241.64 0.00 55,933,143.00 0.01
Water Supply Systems 735,709,375.95 65,915,890.67 59,814.25 669,733,671.03 0.13
Power Supply Systems 806,950,465.33 361,667,290.45 41,438.60 445,241,736.28 0.09
Communication Network 604,527,387.37 538,648,373.36 0.00 65,879,014.01 0.01
Seaport Systems 5,709,698,400.92 3,261,432,844.01 0.00 2,448,265,556.91 0.48
Airport Systems 4,872,061,906.53 1,599,389,361.37 0.00 3,272,672,545.16 0.64
Parks, Plazas and
Monuments 1,052,844,241.78 8,949,796.64 0.00 1,043,894,445.14 0.20
Railway Systems 0.00 0.00 0.00 0.00 0.00
Other Infrastructure
Assets 3,042,352,822.97 2,057,998.63 0.00 3,040,294,824.34 0.59
Total 1,188,851,358,571.40 675,774,091,786.59 101,252.85 513,077,165,531.96 100.00
Among the components of infrastructure Assets, Road Networks, net of

Accumulated Depreciation and Allowance for Impairment shared the biggest
portion amounting to P470.80 billion or 91.76 percent.
The DPWH reported Road Network P469.31 billion, net of Accumulated

Depreciation of P540.38 billion.
12.3 Buildings and Other Structures
Buildings and Other Structures had a total book value of P162.62 billion,
net of accumulated depreciation of P67.73 billion and allowance for Impairment
losses of P33.26 million as of the end of the year. Components of this group of
accounts as follows:
Amount
Accumulated Percent
Accounts Accumulated
Gross Impairment Net Book Value to
Depreciation
Losses Total
Buildings 74,239,436,018.42 24,501,235,910.91 3,732,764.74 49,734,467,342.77 30.58
School Buildings 106,512,883,290.69 27,332,758,413.33 11,571,283.54 79,168,553,593.82 48.68
Hospital and Health 16,849,751,673.37 4,532,928,133.94 0.00 12,316,823,539.43 7.57
Centers
Markets 47,024,661.45 12,008,567.15 0.00 35,016,094.30 0.02
Slaughterhouses 1,881,400.00 47,416.00 0.00 1,833,984.00 0.00
Hostel and Dormitories 726,523,562.89 216,852,023.42 813,437.53 508,858,101.94 0.31
Other Structures 32,009,996,847.94 11,137,047,443.43 17,138,013.74 20,855,811,390.77 12.82
Total 230,387,497,454.76 67,732,877,908.18 33,255,499.55 162,621,364,047.03 100.00
Among the components of Buildings and Structures, School Buildings

shared the biggest portion amounting to P79.17 billion or 48.68 percent, followed
by account Buildings with P49.73 billion or 30.58 percent.
104
Of the aggregate amount of P162.63 billion for Other Structures, the DOTC
reported P4.49 billion which pertains among others; P3.77 billion reported by
DOTC-CO for its Airport Landing Field, P586.02 million for Terminals and
P253.69 million for Other Structures; P427.88 million reported by the PNR;
P75.68 thousand by LTFRB.
12.4 Machinery and Equipment
Machinery and Equipment has an aggregate net book value of P86.86

billion. This major account group is composed of the following accounts:
Percent
Accounts Amount
to Total
Machinery 1,859,646,011.77 2.14
Office Equipment 6,675,139,509.81 7.69
Information and Communication Technology 19,153,194,924.25 22.05
Equipment
Agricultural and Forestry Equipment 1,062,428,679.31 1.22
Marine and Fishery Equipment 200,517,569.41 0.23
Airport Equipment 283,025,003.85 0.33
Communication Equipment 8,652,531,437.25 9.96
Construction and Heavy Equipment 3,447,475,870.43 3.97
Disaster Response and Rescue Equipment 4,101,130,872.41 4.72
Military, Police and Security Equipment 8,484,858,813.99 9.77
Medical Equipment 12,637,948,471.10 14.55
Printing Equipment 35,035,101.75 0.04
Sports Equipment 144,290,238.89 0.17
Technical and Scientific Equipment 12,616,810,268.31 14.53
Other Machinery and Equipment 7,503,957,302.28 8.64
Total 86,857,990,074.81 100.00
12.5 Transportation Equipment
As of the end of the year, this group of accounts has an aggregate balance
of P 30.17 billion sharing 1.72 percent of the total PPE of the NG. It consists of
Percent to
Accounts Amount
Total
Motor Vehicles 12,150,110,932.02 40.27
Trains 0.00 0.00
Aircrafts and Aircrafts Ground Equipment 7,536,034,845.23 24.98
Watercrafts 10,131,587,399.75 33.58
Other Transportation Equipment 354,760,620.15 1.18
Total 30,172,493,797.15 100.00
105
12.6 Furniture, Fixtures and Books
The Furniture, Fixture and Books account is composed of the following:
Percent
Accounts Amount
to Total
Furniture and Fixtures 9,529,382,622.59 88.02
Books 1,296,477,257.45 11.98
Total 10,825,859,880.04 100.00
12.7 Leased Assets
Leased Assets is an account used to recognize the value of an asset being

leased in the books of the lessee under a finance lease. Leased assets that are
reported in the books of the agencies concerned are as follows:
Amount Percent to
Accounts
Gross Accum. Depr’n Net Total
Leased Assets - Land 234,805,128.21 0.00 234,805,128.21 15.30
Leased Assets- Buildings and
Other Structures 1,017,100,133.15 173,574,833.19 843,525,299.96 54.97
Leased Assets, Machinery and
Equipment 104,061,240.36 5,924,396.63 98,136,843.73 6.40
Leased Assets, Transportation
Equipment 0.00 0.00 0.00 0.00
Other Leased Assets 710,658.03 0.00 710,658.03 0.05
Leased Assets Improvements,
Land 42,030,028.42 20,203,871.56 21,826,156.86 1.42
Leased Assets Improvements –
Buildings 529,238,899.46 218,902,101.04 310,336,798.42 20.23
Other Leased Assets
Improvements 31,515,071.50 6,473,686.43 25,041,385.07 1.63
Total 1,959,461,159.13 425,078,888.85 1,534,382,270.28 100.00
The DOTC books showed a total of P226.72 million Leased Assets, net of
Accumulated Depreciation of P11.09 million.
12.8 Heritage Assets
This group of asset accounts is used to record buildings such as museums,

old churches, cathedrals and mosques no longer used for worship, works of arts
and other archeological specimens, such as monuments and sculptures held and
preserved by the government for their cultural and historical significance.
This group of accounts is accounted under the following specific accounts:
Percent
Accounts Amount
to Total
Historical Buildings 468,123,428.97 51.80
Works of Arts and Other 428,683,962.22 47.44
Archeological Specimens
Other Heritage Assets 6,900,000.00 0.76
Total 903,707,391.19 100.00
106
The departments which reported assets with historical significance are as
follows:
Percent
to Total
Education 198,984,055.64 22.02
Tourism 37,500,939.00 4.15
Finance 2,987,347.16 0.33
Commission on Audit 2,614,237.25 0.29
Congress of the Philippines 915,000.00 0.10
National Defense 659,826.50 0.07
Foreign Affairs 254,663.58 0.03
Health 80,000.00 0.01
Sub-total 903,686,024.37 100.00
Total 903,707,391.19 100.00
12.9 Service Concession Tangible Assets
This major asset account group consists of Other Service Concession

Assets of P11.86 billion which was reported by the DepEd.
12.10 Other Property, Plant and Equipment
The Other Property, Plant, and Equipment is composed of the following:
Accumulated Accumulated
Accounts Gross Amount Net Book Value
Depreciation Impairment Losses
Work/Zoo 8,282,525,553.24 3,018,158,271.53 2,909,919.40 5,261,457,362.31
Animals
Other PPE 201,548,746.93 1,757,829.61 4,656.20 199,786,261.12
Total 8,484,074,300.17 3,019,916,101.14 2,914,575.60 5,461,243,623.43
12.11 Construction in Progress
Construction in Progress represents the on-going projects undertaken by

various government agencies which include the contract cost and the related
expenses which will be transferred to the appropriate account upon completion.
The components of this account are as follows:
Percent
Accounts Amount
to Total
Construction in Progress -
Land Improvements 3,957,957,032.62 0.55
Infrastructure Asset 659,325,830,498.15 91.73
Buildings and Other Structures 55,373,428,726.37 7.70
Leased Asset 119,927,428.29 0.02
Leased Asset Improvements 3,512,021.27 0.00
Total 718,780,655,706.70 100.00
107
The departments/offices with balances of Construction in Progress account,
arranged from highest to lowest are as follows:
Percent
to Total
Education 16,121,103,164.06 2.24
Agriculture 13,771,728,130.77 1.92
Environment and Natural Resources 11,931,076,454.07 1.66
Health 11,191,897,865.94 1.56
Agrarian Reform 3,927,859,585.52 0.55
ARMM 2,690,654,568.83 0.37
Sub-total 709,507,906,390.12 98.71
Total 718,780,655,706.70 100.00
The DPWH reported P616.19 billion of Construction in Progress or 85.73

percent of the total for the NG, of which P610.98 billion pertains to infrastructure
assets composed of Road Networks, Flood Control Systems, Sewer Systems,
Water Supply Systems, Seaport System and Other Infrastructure Assets projects
still in progress as of December 31, 2015.
The DOTC reported a total of P21.01 billion in Construction in Progress

account, P20.21 billion or 96.19 percent of which pertain to Infrastructure Assets.
The DENR reported P11.73 billion of Construction in Progress; P8.24

billion pertains to Infrastructure Assets while P2.69 billion and P806.14 million
pertain to Land Improvements and Buildings and Other Structures, respectively.
Note 13: Biological Assets

Biological Assets showed a net book value of P2.15 billion as of the end of the year.
It is composed of two (2) major groups of accounts, the Bearer Biological Assets of
P891.44 million and the Consumable Biological Assets of P1.26 billion, components of
each group are as follows:
Amount
Accum.
Accounts
Total Impairment Net Value
Losses
Bearer Biological Assets
Breeding Stocks 758,156,002.37 6,035.00 758,149,967.37
Livestock 73,065,385.39 237,820.00 72,827,565.39
Trees, Plants and Crops 54,550,754.16 0.00 54,550,754.16
Aquaculture 5,035,968.14 0.00 5,035,968.14
Other Bearer Biological Assets 877,830.00 0.00 877,830.00
Sub-Total 891,685,940.06 243,855.00 891,442,085.06
Consumable Biological Assets
Livestock Held for
Consumption/Sale/Distribution 1,244,230,626.57 14,100.00 1,244,216,526.57
Trees, Plants and Crops Held for
Consumption/ Sale/ Distribution 8,651,054.35 0.00 8,651,054.35
108
Amount
Accum.
Accounts
Total Impairment Net Value
Losses
Agricultural Produce Held for
Consumption/Sale/Distribution 3,377,109.02 0.00 3,377,109.02
Aquaculture 932,695.39 0.00 932,695.39
Other Consumable Biological Assets 31,500.00 0.00 31,500.00
Sub-Total 1,257,222,985.33 14,100.00 1,257,208,885.33
Grand Total 2,148,908,925.39 257,955.00 2,148,650,970.39
The Department of Agriculture registered P2 billion or 93 percent of the total

biological assets.
Note 14: Intangible Assets

Intangible Assets showed a book value of P2.07 billion, net of Accumulated
Amortization of 561.94 million and Impairment Losses of P5.20 million.
14.1 Intangible Assets
Amount
Percent
Accounts Accumulated Accumulated
Gross Amount Net Book Value To Total
Amortization Impairment Losses
Patents/Copyrights 5,580,000.00 0.00 0.00 5,580,000.00 0.27
Computer Software 1,636,032,211.48 561,880,091.56 5,119,693.01 1,069,032,426.91 51.76
Websites 0.00 0.00 0.00 0.00 0.00
Other Intangible Assets 990,903,829.06 60,116.29 0.00 990,843,712.77 47.97
Total 2,632,516,040.54 561,940,207.85 5,119,693.01 2,065,456,139.68 100.00
14.2 Development in Progress
Development in Progress in the amount of 3.47 million refers to Computer

Software recorded by the OEO, particularly the HLURB.
Note 15: Other Non- Current Assets
15.1 Prepayments
The aggregate amount of Prepayments of the NG amounted to P1.60 billion

Percent
Accounts Amount
to Total
Advances to Contractors 656,450,976.99 40.94
Prepaid Rent 29,339,478.94 1.83
Prepaid Registration 306,794.12 0.02
Prepaid Interest 0.00 0.00
Prepaid Insurance 12,461,681.67 0.78
Other Prepayments 904,817,572.00 56.43
Total 1,603,376,503.72 100.00
109
» Advances to Contractors
A notable amount of P25.98 billion was reported by the DPWH

which pertains to mobilization costs in the implementation of locally and
foreign assisted infrastructure projects and recoupment made on every
progress billings to contractors of which P25.36 billion was reported by the
OSEC.
» Other Prepayments
The GHQ-AFP reported Other Prepayments in the amount of

P88.06 million which pertain to deposit/advance payments made to Petron
Corp. to guaranty the delivery of POL products ready for use of
administrative and military operations.
15.2 Deposits
The aggregate amount of Deposits of the NG amounted to P36.17 billion

recorded under the following specific accounts:
Accounts Amount
Deposit on Letters of Credit 29,797,276,610.87
Guaranty Deposits 6,288,960,897.40
Other Deposit 86,088,888.66
Total 36,172,326,396.93
» Deposit on Letters of Credit
The AFP- GHQ reported P2.40 billion to account Deposits in

Letters of Credit representing deposits with authorized government
depository banks for the supply and delivery of firearms, ammunitions,
vehicular and communication requirements of the AFP contracted with
foreign suppliers, including the coat of freight.
The DA-OSEC reported P246.27 million representing balance of

deposit made with LBP in favor of Sumitomo Corporation for the
procurement of Very Small Aperture Terminal equipment to be used in the
setting-up of the National Information Network that will link DA OSEC
with Regional Field Units as well as with the provincial coordinating units
nationwide.
» Guaranty Deposits
Guaranty Deposits pertain to the deposits made for suppliers to

guaranty performance of services or delivery of supplies contracted and/or
the deposits made to authorize government depository banks to secure or
guaranty the compliance with the terms of agreement.
110
The departments which reported the highest balances of Guaranty
Deposits are the following:
Percent
to Total
Commission on Elections 923,864,666.63 14.69
Agriculture 105,749,491.64 1.68
Finance 10,206,324.60 0.16
Congress of the Philippines 4,843,291.10 0.08
Sub-Total 6,264,697,690.47 99.61
Total 6,288,960,897.40 100.00
The DPWH reported a total of P13.79 billion for Guaranty

Deposits. Of this amount P13.46 billion or 97.62 percent was reported by
the OSEC. This pertains to the 10% retention deducted from the contractors
billing which serves as warranty for projects undertaken to assure
performance and quality of works.
The DA reported P6.01 billion representing

contribution/augmentation to the Agricultural Guarantee Pool Fund for
Rice Self-Sufficiency Program of the Government per Administrative
Order No. 244 dated October 23, 2008.
The AFP-GHQ reported P1,978,575,479.04 or 31.60 percent of

Guaranty Deposits classified as non- current. This pertains to deposits made
with suppliers to guarantee performance of services or delivery of supplies
contracted and/or the deposits made to authorize government depository
banks to secure or guaranty the compliance of certain requirements for the
delivery of contracted services and/or logistical needs of the AFP thru
Foreign Military Sales.
15.3 Other Assets
Other Assets classified as Other Non- Current Asset has an aggregate

balance of P121.78 billion, net of Accumulated Impairment Losses of 1.06 billion
as of the end of the year.
This major group of accounts includes the following specific accounts:
Amount
Accumulated Percent
Accounts
Gross Amount Impairment Net Book Value to Total
Losses
Acquired Assets 74,976,109,058.35 1,029,000,010.40 73,947,109,047.95 60.72
Foreclosed Property/Assets 8,145,201.55 8,145,201.55 0.01
Forfeited Property/Assets 132,442,350.06 132,442,350.06 0.11
Confiscated Property/Assets 347,898,689.43 347,898,689.43 0.29
Abandoned/Surrendered
Property/Assets 14,891,241,110.73 14,891,241,110.73 12.23
111
Amount
Accumulated Percent
Accounts
Gross Amount Impairment Net Book Value to Total
Losses
Other Assets 32,485,776,367.08 31,120,762.88 32,454,655,604.20 26.65
Total 122,841,612,777.20 1,060,120,773.28 121,781,492,003.92 100.00
» Acquired Assets
Acquired Assets totaled P73.95 billion of which 73.86 billion or

99.88 percent was reported by the BTr. The total Acquired Assets broken
down as follows:
Particulars Amount
1. Part of the transferred assets under Proclamation No. 50 wherein P67,950,537,300.71
disposition and sale are being handled by PMO and PNPP/NPC, which
were reclassified from Other PPE account. These assets are not
restated in their realizable value since it is the PMO and NPC which
have direct knowledge of the assets. BTr had already requested the
PMO for updated listings of the remaining assets for reconciliation
with NG’s books.
2. Part of the transferred assets from DBP, PNB and Philippine Guarantee 4,629,763,954.00
and Investment Corporation (PHILGUARANTEE) in the form of
financial assets.
3. NG holdings in the capital stock of PAL pursuant to Administrative 1,050,000,010.00

Order (A.O.) No. 242 dated October 21, 1991 and Proclamation No.
50 dated December 8, 1986.
4. Equity in the Philippine National Construction Corporation transferred 1,262,561,450.00

by GFIs to NG
5. Nominal value of National Development Company (NDC)’s shares of 1.00

stocks in FILSYN which was transferred to the NG pursuant to
Settlement Agreement between NDC and NG/PMO, dated December
30, 2003. _______________
Total 74,892,862,715.71
Less Accumulated Impairment Losses 1,029,000,010.40
Net Acquired Assets 73,863,862,705.31
» Foreclosed Properties
The total Foreclosed Properties of the NG in the amount of P8.15

million was reported by the BTr.
112
» Forfeited Property/Assets
The total amount of P132.06 million Forfeited Property/Assets was

reported by the BIR based on the Consolidated Inventory of Seized and
Forfeited Assets (CISFA). The amount of P114.17 million was recorded
by the Regional Offices, which pertain to real assets and shares of stocks,
Particulars Amount
1. Land recorded in the Collection Books of RR Nos. 1 – 2, 4 – 12 112,555,556.81
and 14 – 19
2. Buildings recorded in the Collection Books of RR No. 9 – San 869,281.00
Pablo City.
3. 236 shares of PLDT stocks of Market Developers (MADE)
Incorporated recorded in the Collection Books of RR No. 8 –
Makati City 742,350.00
Total 114,167,187.81
The remaining amount of P17.90 million was recorded in the

National Office collection books, details of which are as follows:
Particulars Amount
Shares of Stock/Stock Certificates 10,419,103.90
Office Equipment 5,405,134.24
Land 1,980,430.51
Other Structure 75,000.00
Other Property Plant and Equipment 13,993.60
Motor Vehicles 2,000.00
Total 17,895,662.25
» Confiscated Property/Assets
Out of the total P347.90 million Confiscated Property/Assets, the

DENR reported P 208.99 million or 60.07 percent which includes, among
others, deteriorated forest products subject to reassessment by concerned
CENROs, forest products turned-over to NRDC for disposition, and
confiscated products under different PENROs.
» Abandoned/Surrendered Property/Assets
Out of the total amount of P14.89 billion reported,

Abandoned/Surrendered Property/Assets of the NG, the PCGG reported
P14.88 billion representing 12.23 percent. Details of these properties are as
follows:
Particulars Amount
1. Assets and properties voluntarily surrendered, assigned or ceded 536,858,276.65
or waived to the PCGG as ill-gotten wealth, or through
settlement or after judicial determination.
2. Land owned by IBC 13 Broadcast City, which was originally 828,000,000.00

booked up in CY 2000 based on the appraised value by the
General Appraisal. Of the total area of 4.1401 hectares, 3.6401
113
Particulars Amount
hectares was subject to Joint Venture Agreement between IBC 13
and R-II Builders, Inc./Primestate Ventures, Inc.; thus leaving
IBC 13 Broadcast City the remaining 0.5000 hectares. In the said
joint venture, The PCGG did not receive any monetary
consideration.
3. Land owned by PIEDRAS which originally has a total area of 14,587,741,084.60
1,635,263 square meters covered by six titles. The PCGG is in
possession of five titles with area totalling 356,005 sq. meters.
From these five titles, the land with an area of 113,870 sq. meters
under TCT No. T-81835 was placed under CARP coverage
which was already dropped from the PCGG books of accounts.
The PCGG has no copy in possession of the remaining 1,279,258
sq. meters under TCT No. T-163207. PIEDRAS has
recommended the filing of a petition in court for the
reconstitution/replacement of the lost title but cannot be acted
upon since the property has also been placed under CARP
coverage. There is a pending Motion for Reconsideration filed by
PIEDRAS with the Department of Agrarian Reform for
exemption of said land from CARP. ________________
Total 14,878,882,807.95
» Other Assets
The departments with balances of Other Assets account, arranged

Percent
to Total
Finance 81,567,590,266.11 66.98
Justice 15,550,372,154.27 12.77
The Judiciary 4,866,480,189.03 4.00
Commission on Elections 3,442,939,180.58 2.83
Ombudsman 2,050,570,694.80 1.68
Agriculture 1,791,151,125.40 1.47
Health 1,406,621,018.51 1.16
Sub-total 116,485,589,285.46 95.65
Total 121,781,492,003.92 100.00
The DA reported P1,712,187,773.17 which consists of obsolete and

unserviceable assets awaiting final disposition as well as those assets still
serviceable but are no longer being used. It also includes balances from
other accounts that are still for reconciliation.
The DPWH also reported P1,265,513,074.00 which represents
reclassified PPE/assets that are fully depreciated and obsolete/unserviceable
items of different offices for evaluation and future disposal.
114
Liabilities and Net Assets/Equity
Liabilities
Current Liabilities are the obligations which are expected to be settled within 12
months from December 31, 2015. It is composed of the following:
Percent
Accounts Amount
to Total
Financial Liabilities 1,021,849,156,539.35 82.91
Inter-Agency Payables 119,464,115,434.13 9.69
Intra-Agency Payables 9,539,367,172.82 0.77
Trust Liabilities 39,131,369,366.44 3.17
Other Payables 37,851,338,332.16 3.07
Deferred Credits/unearned Income 4,708,142,305.40 0.38
Total Current Liabilities 1,232,543,489,150.30 100.00
Note 16: Financial Liabilities
Current Financial Liabilities is composed of the following major accounts:
Percent
Accounts Amount
to Total
Payables 216,703,751,320.66 21.21
Bills/Bonds/Loans Payable 805,145,405,218.70 78.79
Total Current Financial Liabilities 1,021,849,156,539.35 100.00
16.1 Payables
This major account consists of the following accounts:
Percent
Accounts Amount
to Total
Accounts Payable 91,469,634,329.00 42.21
Due to Officers and Employees 17,583,835,070.23 8.11
Notes Payable 16,713,635,458.65 7.71
Interest Payable 78,639,901,785.36 36.29
Operating Lease Payable 59,073,691.30 0.03
Finance Lease Payable 46,455,312.93 0.02
Awards and Rewards Payable 1,298,716,797.44 0.60
Service Concession Arrangements
Payable 10,891,998,955.85 5.03
Tax Refunds Payables 499,919.89 0.00
Total 216,703,751,320.66 100.00
115
» Accounts Payables
The departments with balances of Accounts Payables, arranged

Percent
to Total
Health 7,589,212,756.64 8.30
Finance 6,425,552,912.62 7.02
Transportation and Communications 4,440,099,380.47 4.85
Education 3,533,985,444.01 3.86
Agriculture 2,478,848,408.65 2.71
Sub-Total 77,416,025,057.89 84.64
Total 91,469,634,329.00 100.00
» Due to Officers and Employees
The departments with balances of Due to Officers and Employees,

arranged from highest to lowest, are as follows:
Percent
to Total
Education 3,724,836,462.60 21.18
Commission on Audit 1,173,328,967.45 6.67
Ombudsman 878,077,051.14 4.99
The Judiciary 763,193,954.37 4.34
Health 739,235,843.65 4.20
Sub-Total 15,484,929,413.21 88.06
Total 17,583,835,070.23 100.00
Of the amount reported by DILG, P3.98 billion or 95.04% was

taken from the books of the PNP, while the DepEd-OSEC reported P3.72
billion.
» Notes Payable
The Notes Payable of P16.71 billion representing 7.71 percent of

the total Payables of the NG was solely reported by the BTr. This
represents promissory note issued to BSP, MIGA, ADB, OMF and IBRD
for payment of subscription to the capital stock of IMF, MIGA, ADB and
IBRD.
116
» Interest Payable
Interest Payable of P78.64 billion representing 36.29 percent of the

total Payables was reported by the BTr. This pertains to accrued interest on
the auction/over-the-counter sale of treasury bonds and accrual of interest
on the outstanding NG debt.
» Operating Lease Payable
The PCOO reported P58.09 million or 98.33 percent of the total

amount of Operating Lease Payable of P59.07 million. This refers to
accrued expenses on the lease of printing machinery.
» Finance Lease Payable
This account with P46.46 million represents only 0.02 percent of

the total Payables reported by six departments as follows:
Percent
to Total
Transportation and Communications 44,784,800.00 96.40
Environment and National Resources 291,140.67 0.63
Labor and Employment 130,100.00 0.28
Justice 96,367.65 0.21
Finance (25,174.30) (0.05)
Total 46,455,312.93 100.00
In the DOTC, the LTO reported P44.78 million for the account which
represents the current liability of LTO-NCR relative to the contract entered into
with Mr. Bernardo Y. Go under the Lease-Purchase Agreement for the acquisition
of NCR Regional Office Building amounting to P240 million payable in 5 years
per MYOA No. A-12-002 issued by DBM.
» Awards and Rewards Payable
Of the total amount of P1,298.72 million for this account, the BOC
reported P1,297.53 million representing 99.91 percent while the BIR
reported P1.19 million or 0.09 percent.
» Service Concession Arrangements Payable
This account with P10.89 billion as of December 31, 2015

representing 5.03 percent of the total payables, was reported only by the
DepEd. This represents the financial obligation regarding Public-Private
Partnership for School Infrastructure Project Phase I which was covered
by a Build-Lease-Transfer Agreement between DepEd and contractors to
finance, design and construct classrooms in exchange of quarterly lease
payments from DepEd for the period of ten years of which ownership of
classrooms will be transferred to DepEd after the lease period.
117
This account is subject for verification and further analysis to
determine the non-current portion for proper reclassification.
» Tax Refunds Payables
Only the DOTC, DENR and DA reported Tax Refunds Payables in

their books of accounts of P333.41 thousand, P158.27 thousand and
P8.24 thousand , respectively.
16.2 Bills/Bonds/ Loans Payable
The current portion of the major account, Bills/Bonds/Loans Payable of the

NG as of the year of the year totaled P805.14 billion, of which P796.84 billion or
98.97 percent was reported by the BTr which is composed of the following
accounts,:
Percent
Accounts Amount
to Total
Treasury Bills Payable 264,446,974,450.50 33.19
Bonds Payable – Domestic 317,616,493,608.40 39.86
Bonds Payable – Foreign 172,865,340,450.00 21.69
Loans Payable – Domestic 568,505,701.11 0.07
Loans Payable – Foreign 49,648,091,008.69 6.23
Total Bills/Bonds/Loans Payable 796,838,000,334.01 100.00
Note 17: Inter-Agency Payables
This major group of accounts pertain to payables that subsist between NGAs,
LGUs, and GOCCs. It aggregated to P119.46 billion as of the end of the year, it represent
9.69 percent of the total current liabilities. It is composed of the following accounts:
Percent
Accounts Amount
to Total
Due to BIR 6,913,719,194.83 5.79
Due to GSIS 6,244,101,774.83 5.23
Due to Pag-IBIG 465,253,941.56 0.39
Due to PhilHealth 1,166,633,606.80 0.98
Due to NGAS 63,943,423,287.79 53.53
Due to GOCCs 32,462,240,037.79 27.17
Due to LGUs 8,268,743,590.53 6.92
Total Inter-Agency Payables 119,464,115,434.13 100.00
The departments/offices with balances of Inter-Agency Payables, arranged from

highest to lowest, are as follows:
Percent
to Total
Finance 35,957,850,262.98 30.10
Budget and Management 16,946,017,124.99 14.19
Education 8,338,991,464.74 6.98
Energy 6,233,404,682.11 5.22
118
Percent
to Total
Foreign Affairs 3,239,224,319.78 2.71
Agriculture 2,980,779,612.67 2.50
Sub-Total 107,027,931,990.67 89.59
Total 119,464,115,434.13 100.00
The DOF, particularly the BTr reported P35.17 billion or 97.80 percent of the total
Inter-Agency Payables of the department.
» Due to NGAs
This account with P63.94 billion shared 53.53 percent of the total
Inter-Agency Payables. The departments/offices with balance of Due to
NGAs, arranged from highest to lowest are as follows:
Percent
to Total
Finance 14,343,051,153.17 22.43
Agriculture 2,440,510,697.27 3.82
Education 1,070,977,993.94 1.67
Sub-Total 59,953,662,475.29 93.76
Total 63,943,423,287.79 100.00
Of the total amount reported by the DBM, P14.80 billion

representing the 23.15 percent of the total amount for Due to NGAs
account was recorded in the books of the Procurement Service.
Of the amount reported by the DOF, the BTr assumed P13.84

billion or 21.64 percent of the total amount of the account which refers to
the escrow account of various NGAs.
The amount of P9.07 billion or 14.19 percent as reported by the

DPWH pertains to funds transferred from other NGAs for the
implementation of specific programs and projects as well as other inter-
agency transactions.

departments/offices which reported Inter-agency Payables.
119
» Due to GOCCs
Due to GOCCs aggregating to P32.46 billion shared 27.17 percent of

the inter-agency payables. The departments/offices with the balances of this
account, arranged from highest to lowest, are as follows:
Amount Percent
Department/Office
to Total
Finance 21,417,661,440.71 65.98
Foreign Affairs 2,944,022,468.67 9.07
Presidential Communications Operations
Office 75,812,217.78 0.23
Energy 71,473,667.12 0.22
Sub-Total 32,277,008,289.20 99.43
Total 32,462,240,037.79 100.00
A total amount of P31.01 billion or 95.51 percent of the Due to

GOCCs are the obligations of the DOF, DPWH and DFA.
The BTr reported P21.32 billion or 65.68 percent of the total

amount of Due to GOCCs, details of which are as follows:
Particulars Amount
1. Managed funds and escrow account held by NG for BSF, DRF and other P11,297,062,762.46
GOCCs
2. NG payable to BSP representing IMF revaluation of the Special Drawing 7,194,488,296.88

Rights (SDR) in Philippine Peso with BSP
3. NG subsidy and equity to GOCCs under the Disbursement Acceleration 1,470,158,000.00

Program
4. 4. Remittances to GOCCs 1,170,590,903.82

5.
5. Balance of proceeds from the drawing of USD120.0 million Performance 133,299,118.33
Bond/Irrevocable Standby Letter of Credit put up by MWSI to secure its
concession fee liabilities with MWSS
6. Philippine Coconut Authority collections 57,352,259.85
7. Collateral deposit of GOCCs under the 1992 Philippine Financing Plan 859,361.64
Total 21,323,810,702.98
The DPWH reported P6.64 billion representing receipts from

government corporations for the implementation of specific programs and
projects.
120
» Due to LGUs
This account totaled P8.27 billion representing 6.92 percent of the

total Inter-Agency Payables. The departments/offices with balances of this
account, arranged from highest to lowest, are as follows:
Percent
to Total
Energy 6,001,625,948.37 72.58
Agriculture 351,258,492.22 4.25
Autonomous Region in Muslim
Mindanao 130,060,706.81 1.57
Commission on Election 103,862,412.73 1.26
Health 81,904,484.84 0.99
Sub-Total 8,166,406,341.94 98.76
Total 8,268,743,590.53 100.00
The amount of P6.00 billion reported by the DOE represents the

subsidy to various host communities under ER 1-94.
Schedule 19, Volume II of this report shows the complete list of

departments/offices with unreconciled balances of Intra-Agency Payables.
Note 18: Intra-Agency Payables
Intra-Agency Payables are reciprocal accounts that subsist between the Central
Office, Staff Bureaus, Regional Offices and Operating Units within the agency and which
accounts should have been reconciled with the Intra-Agency Receivable accounts at the
end of the year upon consolidation of the department/agency accounts. Balances of this
account therefore are for reconciliation elimination which at year end aggregated to P9.54
billion. This group of accounts include balances of the following accounts:
Percent
Accounts Amount
to Total
Due to Central Office 6,837,285,566.02 71.67
Due to Bureaus 156,404,283.33 1.64
Due to Regional Offices 1,359,819,767.97 14.25
Due to Operating Units 1,029,558,385.91 10.79
Due to Other Funds 156,299,169.59 1.64
Total Intra-Agency Payables 9,539,367,172.82 100.00
The following departments reported balances of Intra-Agency Payables.
Percent
to Total
Education 1,718,287,630.55 18.01
121
Percent
to Total
Finance 566,245,424.25 5.94
Health 275,525,522.04 2.89
Autonomous Region in Muslim
Mindanao 237,135,216.23 2.49
Agriculture 213,610,720.58 2.24
Sub-Total 9,252,288,132.91 96.99
Total 9,539,367,172.82 100.00
The DPWH topped the departments with P4.64 billion or 48.65 percent of the total
Intra-Agency Payables.
Schedule 20, Volume II of this report shows the complete list of

departments/offices with unreconciled balances of Intra-Agency Payables.
Note 19: Trust Liabilities
This major group of accounts is used to record receipt of amounts held in trust for
specific purposes, such as bail bonds, guaranty/security deposits, and customers’ deposits.
The current portion is accounted under the following accounts:
Percent
Accounts Amount
to Total
Trust Liabilities–Disaster Risk Reduction
and Management Fund 814,550,983.82 2.08
Bail Bonds Payable 484,550,147.76 1.24
Guaranty/Security Deposits Payable 22,407,070,091.75 57.26
Customer’s Deposits Payable 1,388,399,271.06 3.55
Total Trust Liabilities 39,131,369,366.44 100.00
» Trust Liabilities
This category of account with P14.04 billion represents 35.87

percent of the Total Trust Liabilities. The following departments reported
balances of Trust Liabilities:
Percent
to Total
The Judiciary 456,931,860.46 3.25
Agriculture 374,770,932.43 2.67
National Economic Development
Authority 290,146,393.87 2.07
Health 266,513,895.96 1.90
122
Percent
to Total
Commission on Audit 202,263,669.44 1.44
Sub-Total 13,568,319,472.56 96.65
Total 14,036,798,872.05 100.00
Among the SUCs, the UPS reported P6.31 billion or 44.94 of the
total Trust Liabilities.
» Trust Liabilities – Disaster Risk Reduction and Management Fund
This group of account pertains to recognition of the receipt of

amount held in trust for Disaster Risk Reduction and Management.
The DSWD reported a significant amount of P347.40 million

pertaining to cash donations received, which as of year-end P122.95
million was transferred to the Field Units and P224.45 million still remains
with the Central Office.
In the books of the DA, P49.75 million pertains to the fund received
from the President’s Social Fund for the financial assistance to government
employees affected by typhoon Yolanda and 7.2 magnitude earthquake.
This represents 50% of the total assistance subject for liquidation.
» Bail Bonds Payable
This group of account refers to the liability arising from the receipt
of cash bond from a person who is in the custody of law to guaranty his
appearance in court at the appointed day and time or the compliance with
the conditions of the bond. This also includes immigration bonds required
from foreign nationals charged with crimes or violations of Philippine laws.
The Judiciary particularly the CA reported P220.09 million or 45.42

percent of the total Bail Bonds Payable expected to be settled in 2016.
» Guaranty/Security Deposits Payable
This category of account with P22.41 billion makes up 57.26

percent of the Trust Liabilities. This account pertains to the liability arising
from receipt of cash or cash equivalents to guaranty performance. The
following departments reported balances of Guaranty/Security Deposits
Payable:
Percent
to Total
Finance 3,591,495,960.16 16.03
Health 1,352,031,074.53 6.04
Education 947,986,066.39 4.23
Agriculture 631,303,342.15 2.82
Environment and National Resources 420,950,059.57 1.88
123
Percent
to Total
Sub-Total 21,755,118,173.27 97.11
Total 22,407,070,091.75 100.00
» Customers’ Deposits Payable
This account with P1.39 billion representing 3.55 percent of the

total Trust Liability is reported by the following departments/offices:
Percent
to Total
Presidential Communications Operations
Office 165,521,375.28 11.92
Agriculture 101,401,509.13 7.30
State University and Colleges 7,596,422.92 0.55
Health 7,452,413.01 0.54
Tourism 4,946,346.15 0.36
Finance 2,788,200.00 0.20
Sub-Total 1,383,088,729.86 99.62
Total 1,388,399,271.06 100.00
The bulk of Customers Deposits Payable was reported by the

DPWH with P1.06 billion or 76.53 percent of the total Customers’ Deposit
Payable which refers to cash bonds received from contractors and suppliers
to guarantee performance of the terms of contracts and participation in
bidding.
Note 20. Other Payables
This account in the total amount of P 37.85 billion shared 3.07 percent only of the
total Current Liabilities of the NG. The departments/offices with balances of this account,
Percent
to Total
Education 5,533,877,403.30 14.62
The Judiciary 3,618,184,368.45 9.56
Finance 3,362,642,154.77 8.88
Health 2,219,850,801.95 5.86
Justice 2,200,561,455.73 5.81
124
Percent
to Total
Sub-Total 32,998,326,828.37 87.18
Other Agencies 4,851,686,503.79 12.82
Total 37,850,013,332.16 100.00
The amount of P5.53 billion or 14.62 percent reported by the DepEd includes
payables to private lending institutions and insurance companies for loan repayments and
insurance premiums deducted from salaries of employees.
The COMELEC reported P5.31 billion or 14.02 percent pertaining to COMELEC

Employees Development Cooperative and Region VIII COMELEC Employees Multi-
Purpose Cooperative, National Home Mortgage Fund, COMELEC Employees’ Provident
Fund, Health Insurers and others. These were deducted from the salaries of officials and
employees and remitted accordingly to the intended recipients.
The DOTC reported a significant amount of P5.05 billion or 13.34 percent of the
total Other Payables of the NG which includes among others, P3.92 billion payable to
MRTC for collections from the operations of MRT3.
The DOF particularly the BTr reported P1.59 billion which includes accounts held
in escrow in the amount of P58.33 million corresponding to 20% withholding tax on
coupon payments for the investments in government securities of private companies and
other institutions which are invested in FTD awaiting determination of whether they are
tax exempt or not, and P681.60 million escrow account under the Second Tropical Forest
Conservation Fund. It also includes balances under the following:
Amount
Particulars
1. Balance of the FSD 531,971,906.16
2. Payment made by GOCC for servicing of their foreign loans 248,020,989.42
3. Payables for Emergency Guerilla Currency Notes (R.A. No. 369) 31,707,904.39
4. Payables for Backpay Rights Sinking Fund (R.A. 897) 22,409,264.53
5. Contributions to Foreign Financial Institution 17,136,000.00
6. Payables for Backpay Rights Sinking Fund (R.A. 304) 1,105,832.79
Total 852,351,897.28
The DOH reported P2.22 billion of Other Payables, P2.12 billion of which was
reported by the OSEC representing unpaid salaries of contractual employees, deductions
from salaries of regular employees for payment of monthly dues and cooperative loans and
others.
The DOJ, particularly the PCGG reported Other Payables in the amount of P1.99
billion for the year 2015. These payables involve those maintained under Fund 184
escrow accounts deposited with the BTr which represent collections from sequestered
assets pending litigation for the rightful ownership. It also includes redemption proceeds
of San Miguel Corporation Series 1 preferred shares amounting to P59.00 billion remitted
by the PCGG to the BTr in October 2012 and P128.00 million proceeds from the sale of
Wack Wack property awaiting resolution of some legal issues.
125
Note 21. Deferred Credits/Unearned Income
Deferred Credits/Unearned Income with P4.71 billion was contributed by the following
departments:
Percent
to Total
Finance 1,680,434,899.44 35.69
Agriculture 1,297,911,539.07 27.57
Health 285,111,201.82 6.06
Justice 83,100,000.00 1.77
Education 60,044,647.94 1.28
Sub-Total 4,662,040,573.25 99.02
Total 4,708,142,305.40 100.00
Non-Current Liabilities
Non-Current Liabilities represent the obligations of the NGAs which are not
expected to be settled within the next 12 months from December 31, 2015. It is composed
of the following:
Percent
Accounts Amount
to Total
Financial Liabilities 5,046,466,740,454.57 98.53
Deferred Credits/Unearned Income 17,089,728,755.65 0.33
Other Payables 46,550,782,357.64 0.91
Total Non-Current Liabilities 5,121,782,817,656.54 100.00
Note 22. Financial Liabilities
Non-current Financial Liabilities is composed of the following major accounts:
Amount Percent
Accounts
to Total
Payables 1,053,830,666.90 0.02
Bill/Bonds/Loans Payable 5,045,412,909,787.67 99.98
Total Non-Current Financial
Liabilities 5,046,466,740,454.57 100.00
22.1 Payables
This total amount of P1.05 billion or 0.02 percent of the total Financial
Liabilities pertains to Finance Lease Payable account only.
126
» Finance Lease Payable
Only two departments reported this account; the DOF and the
DOTC. The BIR reported a total of P964.26 million or 91.50 percent for
Finance Lease Payable, summarized as follows:
Lessor Amount
LBP Leasing Corporation 866,834,544.71
Philippine Reclamation Authority 97,426,522.19
Total 964,261,066.90
The DOTC reported P89.57 million or 8.50 percent for Finance

Lease Payable due in 2017 and 2018. This payable account is a result of the
contract entered into by LTO-NCR and Mr. Bernardo Y. Go as lessee and
lessor, respectively under the lease purchase agreement for the acquisition
of NCR Regional office building amounting to P240.00 million, payable in
5 years as per MYOA No. A-12-002 issued by DBM.
22.2 Bills/Bonds/Loans Payable classified as non- current in the total amount of

P5.04 billion consists of the following accounts:
Amount
Accounts
Gross Premium Discount Net
Bonds
Payable – 3,303,285,473,972.95 3,652,501,460.66 68,050,384,717.98
Domestic 3,238,887,590,715.63
Bonds
Payable – 1,128,741,225,262.00 1,542,394,718.40 42,098,043,926.03 1,088,185,576,054.37
Foreign
Loans
Payable –
Domestic 1,047,513,297.18 1,047,513,297.18
Loans
Payable –
Foreign 717,292,229,720.49 ______________ ________________ 717,073,881,240.70
Total 5,150,366,442,252.62 5,194,896,179.06 110,148,428,664.01 5,045,412,909,787.67
» Bonds Payable – Domestic
This account representing Treasury Bonds issued domestically

maturity of which is beyond one year was solely reported by the DOF- BTr.
» Bonds Payable – Foreign
The Bonds Payable –Foreign are offshore bond flotation of the ROP
which will be maturing beyond a period of one year. The amount of P1.09
trillion (net of premium of P1.54 billion and discount of P42.10 billion)
was also reported by the BTr.
127
» Loans Payable – Foreign
Only the DOF and DFA reported liabilities classified as Loans

Payable – Foreign in the amount of P717.07 billion or 99.97 percent and
P200.11 million or 0.03 percent, respectively.
The amount reported by DFA represents Foreign Currency Deposit

Unit loan payable to Philippine National Bank, London in connection with
the acquisition of property at 6, 8-11 Suffok Street, London on April 10,
2006 which serves as the Philippine Chancery authorized per UK-369-
OUA-2006 dated July 12, 2006. The amortization payment is payable in 13
years in 51 equal installments due every quarter and the full settlement at
the end of the 52nd quarter.
Note 23: Trust Liabilities
The non-current portion of Trust Liabilities consists of the following accounts:
Percent
Accounts Amount
to Total
Bail Bonds Payable 7,623,347,877.67 65.29
Guaranty/Security Deposits Payable 844,482,035.33 7.23
Customers’ Deposits Payable 21,690,563.78 0.19
Total Trust Liabilities 11,675,566,088.68 100.00
» Trust Liabilities
This account with P3.19 billion represents 27.30 percent of the total
trust liabilities. The departments/ offices with balances in this account,
Percent
to Total
Finance 2,457,111,156.23 77.12
The Judiciary 73,141,475.59 2.30
Ombudsman 64,450,037.48 2.02
National Economic Development
Authority 12,515,006.62 0.39
Environmental and Natural Resources 3,731,611.68 0.12
Sub-Total 3,185,427,496.97 99.98
Total 3,186,045,611.90 100.00
The DOF, particularly the BOC and BTr (proper) reported P2.45
billion and P11.93 million respectively which represent 77.12 percent of
the total Trust Liabilities.
128
The DOTC reported P467.50 million representing payment made
by the Light Rail manila Consortium, the winning concessionaire of the
DOTC 50% share in the 10% of the total concession payment in
accordance with the Concession Agreement between LRMC, DOTC and
LRTA, grantors for the Manila LRT I Extension, operation and
maintenance project which was directly deposited to the BTr.
» Bail Bonds Payable
This account with P7.62 billion was solely reported by The

Judiciary, specifically the Supreme Court of the Philippines and Lower
Courts of P7.60 billion and the Sandigan Bayan of P140.19 million.
Note 24: Deferred Credits/Unearned Income
The non-current portion of the major account Deferred Credits/Unearned Income

consists of the following:
Percent
Accounts Amount
to Total
Other Deferred Credits 17,064,855,137.41 99.85
Other Unearned Revenue 24,873,618.24 0.15
Total Non-Current Deferred
17,089,728,755.65 100.00
Credits/Unearned Income
» Other Deferred Credits
The bulk of Deferred Credit/Unearned Income of P17.06 billion or

99.85 percent was recorded to Other Deferred Credits.
A total of P16.15 billion or 94.50 percent was reported by the DOF,

particularly the PMO with P14.63 billion or 85.61 percent which pertains to
the account used as a contra account in recording the receivables arising
from installment sale of transferred assets.
The BTr also reported Other Deferred Credits, classified as non-

current, amounting to P1.52 billion or 8.89 percent, details are as follows:
Accounts Amount
1. Proceeds from ROP’s issuance of Debt Exchange Warrants P1,471,585,312.50
which entitles the holders during exercise period to tender
dollar/euro bonds and receive in exchange a peso denominated
treasury bonds.
2. Contra account in setting up the receivable from DBP and 44,612,225.83
PMO
3. Converted balance under Fund 105 which had remained 565,952.85
dormant for over 30 years and was already requested for write-
off ______________
Total 1,516,763,491.18
129
Note 25: Other Payables
This account is used to record other liabilities not falling under any of the specific
payable accounts which as of the end of the year totaled P46.55 billion representing 0.91
percent of the total non-current liabilities of the NG. The following departments/offices
reported balances of non-current Other Payables, arranged from highest to lowest:
Percent
to Total
Finance 28,987,088,472.53 62.27
Ombudsman 1,082,521,244.19 2.33
The Judiciary 298,662,991.41 0.64
Justice 143,520,233.44 0.31
Metro Manila Development Authority 117,098,664.58 0.25
Sub-Total 46,484,341,838.90 99.86
Total 46,550,782,357.64 100.00
For the DOF which reported P28.99 billion or 62.27 percent of the total non-
current Other Payables, the BOC and the BIR reported P13.69 billion and P13.78 billion,
respectively.
Note 26. Contingent Liabilities
The BTr disclosed contingent liabilities of the NG in the total amount of P437.89
billion as of the end of the year, as follows:
Denomi- Amount
Particulars
nation Foreign Domestic
NG Direct Guarantee on USD 6,66,998,015.15
GOCC Loans Peso 295,488,956,414.31 138,231,519,982.28
GFI Guarantee Assumed by USD 85,503,097.30

NG per Proclamation 50 Peso 4,031,471,037.85 136,069,374.78
Also, the NG has contingent liabilities under the Philippine Public Partnership
(PPP) Program such as: build-operate and own, build-operate and transfer, build and
transfer, and build-transfer and operate wherein the valuation of the extent of the NG
liabilities or exposure cannot yet be established in the absence of complete data regarding
these projects. Also excluded in this report are the guarantees extended by the GFIs
considering that there is no explicit NG guarantee on these and these are already part of
the contingent liabilities of the GFIs.
The DOF- PMO also disclosed a contingent liability to the GSIS in the amount of
P1.19 billion representing bond premium, for two years from February14, 2014 to
February 14, 2016 or a yearly premium of P593.72 thousand relative to the Court of Tax
Appeals Resolution dated February 7, 2013. This ensued as the Tacloban City
130
Government issued Warrants of Levy over the properties of Leyte Park Hotel for non-
payment of real property tax in the amount of P65.96 million. The PMO obtained
Temporary Restraining Order on the Motion for Suspension of Collection of real property
tax and cancellation of warrants of levy. The CTA issued the TRO provided that PMO
files a surety bond equivalent to one and one-half of the amount being claimed by TCG.
The Petition for Certiorari on the motion for exemption from posting of surety bond is still
pending before the Supreme Court.
Note 27: Net Assets/Equity
The Statement of Changes in Net Assets/Equity of the NG as of December 31,

2015 shows the following data:
Particulars Amount
Balance - January 1, 2015 (1,688,930,177,533.58)
Changes in Accounting Policy (6,427,053,577.66)
Prior Period Adjustments/Unrecorded Income and Expenses (12,903,060,788.87)
Other Adjustments 20,139,703,052.32
Restated Balance (1,688,120,588,847.79)
Changes in Net Assets/Equity for the Calendar Year
Adjustment of Net Revenue recognized directly in Net Assets/Equity (1,435,350,608.36)
Surplus/(Deficit) for the Period (3,256,881,589.59)
Total Recognized Revenue and Expenses for the Period (4,692,232,197.95)
Other Adjustments 134,812,344,110.65
Balance - December 31, 2015 (1,558,000,476,935.09)
The balance at January 1, 2015 amounting to a negative P1,688.93 billion is net of

P57.03 million which pertains to the balance of CMDF which was merged with CIAP in
CY 2015 but was not included in this report due to non-submission of FSs by the latter.
This balance was further restated due to the effects of changes in accounting
policies in the amount of P6.43 billion, prior period adjustments such as the unrecorded
income and expenses of P12.90 billion and other adjustments of P20.14 billion or a net
effect of P809.59 million which was contributed by the following departments.
Public Works and Highways (466,025,089.01)
Presidential Communications Operations Office (184,992,239.33)
Civil Service Commission (68,335,104.64)
Finance (35,486,195.47)
Environment and Natural Resources (2,937,513.95)
Education (688,493.94)
Energy (12,800.00)
Science and Technology 4,349,284.75
Office of the President 5,775,921.04
National Defense 14,735,846.48
Other Executive Offices 39,064,525.26
Transportation and Communications 97,260,903.56
Tourism 168,911,073.21
State Universities and Colleges 223,118,588.41
Agriculture 346,921,415.87
National Economic and Development Authority 667,928,563.53
Total 809,588,685.78
131
The P667.93 million by the NEDA was due to the Revolving Fund of the PPPCP
which was not included in January 1, 2015 balance.
» Surplus/(Deficit) for the Period in the negative amount of P3.26 billion is

the result of the combined operations of the NGAs as reflected in the
Statement of Financial Performance for the year 2015. The negative
amount indicates a deficit wherein the expenses incurred exceeded the
revenues collected.
» Other Adjustments in the total amount of P134.81 billion greatly affected

the balance of net assets/equity as of December 31, 2015. These
adjustments were contributed by the following departments presented in
positive and negative amounts:
Public Works and Highways 425,555,286,944.70
Education 2,231,669,280.40
Other Departments 956,156,539.02
Sub-Total 428,743,112,764.12
Agriculture (161,709,173,971.35)
Finance (54,252,657,857.21)
Social Welfare and Development (24,563,059,022.49)
Transportation and Communications (18,711,941,677.13)
Health (6,377,714,962.91)
Other Departments (28,316,221,162.38)
Sub-Total (293,930,768,653.47
Grand Total 134,812,344,110.65
» Balance at December 31, 2015 amounting to a negative P1,558 billion is

the cumulative net equity of the National Government as of the end of the
year as reconciled with the balance of the equity in the Statement of
Financial Position after deducting the total liabilities from the total assets.
This balance shall be carried forward as beginning balance of the equity of
the NG in the ensuing year.
132
Note 28: Tax Revenue
Tax revenue amounting to P1.824 trillion represents 87.83 percent of the total
revenue of P2.077 trillion. The following are the components of tax revenue:
Particulars 2015 2014

Tax Revenue-Individual and Corporation
Income Tax 640,988,543,531.13 571,558,837,968.91
Professional Tax 124,589.68 -
Immigration Tax 72,804,400.00 71,748,300.00
Total Tax Revenue-Individual and
Corporation 641,061,472,520.81 571,630,586,268.91
Tax Revenue-Property
Estate Tax 999,765,822.12 11,498,828,665.41
Donors Tax 793,287,900.06 1,104,068,226.12
Capital Gains Tax 9,238,274,078.20 1,063,899,374.85
Total Tax Revenue-Property 11,031,327,800.38 13,666,796,266.38
Tax Revenue-Goods and Services
Import Duties 62,377,041,330.69 56,207,676,754.49
Excise Tax 251,583,700,130.31 211,750,511,193.71
Business Tax 766,728,859,908.97 774,311,264,216.56
Tax on Sand, Gravel and Other Quarry
Products 545,635.46 -
Total Tax Revenue-Goods and Services 1,080,690,147,005.43 1,042,269,452,164.76
Tax Revenue-Others
Documentary Stamp Tax 74,588,712,029.20 72,409,634,770.24
Motor Vehicles Users' Charge 13,424,672,159.74 12,175,946,906.18
Other Taxes 2,422,514,325.26 2,246,263,483.42
Total Tax Revenue-Others 90,435,898,514.20 86,831,845,159.84
Tax Revenue-Fines and Penalties
Tax Revenue - Fines and Penalties - Taxes
on Individual and Corporation 477,051,484.18 323,513,501.71
Tax Revenue - Fines and Penalties -
Property Taxes 102,561,204.97 56,361,053.60
Tax Revenue - Fines and Penalties - Taxes
on Goods and Services 218,012,854.98 365,051,427.23
Tax Revenue - Fines and Penalties - Other
Taxes 295,680,423.09 602,761,060.69
Total Tax Revenue-Fines and Penalties 1,093,305,967.22 1,347,687,043.23
Total Tax Revenue 1,824,312,151,808.04 1,715,746,366,903.12
28.1 Tax Revenue – Individual and Corporation
This group of account contributed a total of P641.06 million or 35.14

percent of the total tax revenue, mostly from Income Taxes of P640.99 billion.
Also included is the collection of Immigration Taxes of P72.80 million reported by
the DOJ-BI. Compared to last year’s report, income taxes collection has increased
by P69.43 billion or 12.15 percent.
28.2 Tax Revenue – Property
The BIR, the lone collector of Property Taxes, made a total collection of
P11.03 billion for the year, which is 19.28 percent lower than last year’ collection
of P13.67 billion.
133
28.3 Tax Revenue – Goods and Services
Tax collections on goods and services in the amount of P1.081 trillion

represents 59.24 percent of the total tax revenue. This category consists mainly of
collection of taxes on Business, Excise and Import Duties amounting to P766.73
billion, P251.58 billion, and P62.38 billion, respectively. These taxes were
reported by BIR at P711.82 billion, BOC at P368.85 billion and DENR-OSEC at
P17.79 million. Except for business taxes which showed a decrease in revenue
collection, other taxes in this group reported an increase of P46.00 billion
compared from last year’s report of P267.96 billion.
28.4 Tax Revenue – Others
This group consist mainly of Documentary Stamp Tax of P74.59 billion or

82.48 percent, both reported by BIR and BOC at P74.22 billion and P368.25
million, respectively. Other components are: Motor Vehicle User’s Tax – P13.42
billion or 14.84 percent as reported by DOTC – LTO, and Other Taxes of P2.42
billion or 2.68 percent, of which P2.28 billion was reported by BIR and the balance
was shared by OEO-FDCP and DOTC –OSEC.
28.5 Tax Revenue – Fines and Penalties
Fines and penalties on late payments of national taxes decreased by P0.26

billion from P1.35 billion of previous year to only P1.09 billion or 18.88 percent.
It was collected mainly by BIR at P1.08 billion and the remaining balance of P9.03
million was collected by BOC and DOTC-OSEC.
Note 29: Service and Business Income
The service and business income were reported at P204.56 billion which represents
9.85 percent of the total revenue. Below are the details of service and business income:

Service Income
Other Service Income 25,700,734,170.65 16,734,978,199.24
Registration Fees 11,121,972,897.11 10,006,054,276.31
Passport and Visa Fees 4,994,475,724.89 5,089,056,984.99
Supervision and Regulation Enforcement Fees 4,160,186,205.61 3,248,686,072.27
Registration Plates, Tags and Stickers Fees 2,580,288,527.22 1,111,915,009.91
Spectrum Usage Fees 2,540,172,200.96 2,420,443,867.84
Licensing Fees 2,433,907,134.11 2,264,712,583.23
Processing Fees 2,426,159,958.06 2,615,669,036.06
Clearance and Certification Fees 2,121,773,728.70 1,636,319,312.97
Verification and Authentication Fees 1,984,081,548.92 2,633,409,609.64
Legal Fees 1,657,222,486.34 128,105,938.30
Fines and Penalties - Service Income 1,573,170,713.47 1,431,173,021.52
Permit Fees 1,114,025,076.03 726,640,384.06
Inspection Fees 702,839,400.27 503,525,164.14
Franchising Fees 131,656,080.01 957,469,863.04
Total Service Income 65,242,665,852.35 51,508,159,323.52
134
Business Income
Interest Income 60,214,331,543.55 52,699,902,021.85
Dividend Income 32,206,609,457.07 22,813,919,726.95
School Fees 14,482,230,814.33 12,081,823,539.96
Hospital Fees 11,428,633,708.02 8,884,843,509.24
Other Business Income 6,283,489,829.48 5,404,076,690.12
Service Concession Revenue 5,460,000,000.00 -
Guarantee Income 4,786,599,884.82 5,273,826,693.74
Rent/Lease Income 800,163,385.72 742,718,861.80
Fidelity Insurance Income 773,995,151.96 681,231,201.51
Examination Fees 773,474,172.78 690,113,384.36
Sales Revenue 12,352,936,794.96 9,289,345,528.61
Less: Sales Discounts (88,672,073.88) (4,891,716.09)
Cost of Sales (11,565,747,955.34) (8,427,654,593.05)
Net Sales 698,516,765.74 856,799,219.47
Seminar/Training Fees 604,251,811.93 513,080,107.34
Income from Hostels/Dormitories and Other Like Facilities 327,101,716.22 278,788,182.77
Fines and Penalties - Business Income 234,391,080.59 193,071,999.76
Affiliation Fees 79,413,688.70 89,226,536.01
Income from Printing and Publication 77,804,108.13 62,223,456.61
Road Network Fees 34,369,590.00 31,776,135.00
Share in the Profit of Joint Venture 25,809,403.29 -
Communication Network Fees 9,787,979.13 7,077,082.90
Power Supply System Fees 4,190,806.69 2,858,129.29
Waterworks System Fees 3,744,046.00 4,314,916.87
Landing and Parking Fees 3,345,702.49 267,795.00
Slaughterhouse Operation 583,510.92 291,064.30
Transportation System Fees 171,338.00 287,429.10
Total Business Income 139,313,009,495.56 111,312,517,683.95
Total Service and Business Income 204,555,675,347.91 162,820,677,007.47
29.1 Service Income
Service income reported at P65.24 billion is higher by P13.73 billion or

26.66 percent from last year reported collections of P51.51 billion. The Other
Services Income reported at P25.70 billion or 39.39 percent is the bulk of total
service income. A total of P7.09 billion or 27.58 percent was reported by DPWH.
DOF also reported P4.88 billion or 18.98 percent, pertaining to the collections
made by BTr and BOC amounting to P3.09 billion and P1.2 billion, respectively.
The DOTC also contributed P3.62 billion or 14.09 percent, P2.76 billion of which
represents DOTC-Proper’s income from liquidated damages, beep card for MRT
and miscellaneous and other income including reproduction, and of CTC and
LTO’s service income on IT Fee collection.
The other components that contributed to the service income are:

Registration fees – P11.12 billion or 17.05 percent, was reported by DOJ at P6.75
billion and DOF at P2.47 billion; Passport and Visa Fees – P4.99 billion or 7.66
percent collected by DFA; Supervision and Regulation Enforcement Fees – P4.16
billion or 6.38 percent, 96.08 percent of which was reported by DOTC-OSEC at
135
P1.64 billion, and OEO’s NTC at P1.62 billion and ERC at P732.55 million,
respectively.
29.2 Business Income
Business income amounting to P139.31 billion posted an increase of

P28.00 billion or 25.15 percent higher from last year report of P111.31 billion.
The highest source of business income is Interest Income with 60.21 billion or
43.22 percent followed by Dividend Income of P32.21 billion or 23.12 percent.
DOF-BTr reported almost all the amounts earned of interest income and dividend
income at P58.49 billion and 32.21 billion, respectively. Dividend income earned
by the NG is from equity investments in GFIs and GOCCs which are remitted to
the BTr.
Another big source of business income was School Fees with total
amount of P14.48 billion or 10.40 percent. Batangas State University reported the
highest School Fees with P655.69 million followed by Cavite State University with
652.14 million and Bulacan State University with P545.53 million.
Note 30: Shares, Grants and Donations
The income from shares, grants and donations amounting to P48.23 billion
represents 2.32 percent of the total revenue. The details are as follows:

Share, Grants and Donation
Share from National Wealth 18,213,622,974.16 25,881,600,142.64
Share from PAGCOR/PCSO 21,969,719,338.22 15,375,328,654.29
Share from Earnings of GOCCs 2,553,473,645.36 3,152,783,163.94
Income from Grants and Donations in Cash 3,833,214,641.88 9,220,721,893.36
Income from Grants and Donations in Kind 1,663,325,894.18 1,680,332,282.57
Total Shares, Grants and Donations 48,233,356,493.80 55,310,766,136.80
30.1 Share from National Wealth
As to the share from National Wealth of P18.21 billion, P16.91 billion or

92.86 percent of which was collected by DOE representing government share on
royalties, production share on service contracts and other similar income from the
exploration, development and utilization of natural resources, computed in
accordance with Petroleum Act of 1949 and its IRR. These collections form part
of the SAGF to be used to finance energy resource development and explorations
programs and projects of the government. The remaining balance from share of
P1.31 billion was reported under the DENR.
30.2 Share from PAGCOR/PCSO
The Departments/Offices which received shares from PAGCOR/PCSO

amounting to P21.97 billion are:
136
Department/Office Amount Percent
Finance - BTr 19,995,112,176.31 91.01
Phil. Sports Commission 1,012,755,608.80
CHED 600,000,000.00
Dangerous Drug Board 72,000,000.00
PDEA 3,000,000.00
Education 250,230,000.00 1.14
Health 1,507,000.00 0.01
Total 21,969,719,338.22 100.00
30.3 Share from Earnings of GOCCs
The Departments/Offices which received share from Earnings of GOCCs

amounting to P2.55 billion are:

CHED 1,646,460,100.00
Dangerous Drug Board 4,236,010.30
FDCP 525,000.00
Finance-BTr 898,146,017.71 35.17
Health 4,106,517.35 0.16
Total 2,553,473,645.36 100.00
30.4 Income from Grants and Donations
The Departments/Offices with Income from Grants and Donations

received in cash and in kind from foreign/domestic sources amounting to P5.50
billion are:

Social Welfare and Development 1,796,662.962.26 32.69
Finance 1,394,654,059.35 25.37
Health 853,407,832.45 15.53
Other Departments/Offices 921,079,149.77 16.76
Total 5,496,540,536.06 100.00
Note 31: Miscellaneous Income
Miscellaneous income amounting to P7.53 million consists of the following:

Proceeds from Insurance / Indemnities 2,718,110.98 0.00
Miscellaneous Income 4,811,251.52 276,590.46
Total 7,529,362.50 276,590.46
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The DENR recorded the highest at P2.68 million, followed by OEO and SUCs at
P2.60 million and P1.13 million, respectively. The balance was shared by DILG, DOST,
and DOTC.
Note 32: Gains
Gains of P35.46 million consists of the following:
Gains
Gain on Initial Recognition of Biological Assets 12,846,273.04 37,482,679.06
Gain on Sale of Biological Assets 3,320,493.65 3,108,246.21
Gain from Changes in Fair Value Less Cost to Sell of
18,273,700.23 9,610,826.90
Biological Assets Due to Physical Change
Gain from Changes in Fair Value Less Cost to Sell of
Biological Assets Due to Price Change 50,890.00 34,098.00
Gain on Sale of Agricultural Produce 968,669.50 1,165,838.77
Gain from Changes in Fair Value of Financial Instruments - -
Gain on Initial Recognition of Agricultural Produce - -

Total Gains 35,460,026.42 51,401,688.94
State Universities and Colleges reported a total amount of P30.54 million or 86.13
percent of total gains. Of the amount, the following SUCs reported the biggest share:
Central Mindanao University - P19.51 million or 63.86 percent; Mariano Marcos State
University - P6.72 million or 21.99 percent; Ifugao State University – P1.26 million or
4.13 percent; and Isabela State University – P1.10 million or 3.60 percent.
Note 33: Personnel Services
The major components of personnel services are Salaries and Wages – P351.79
billion or 50.80 percent; Other Compensation – P179.76 billion or 25.96 percent,
Personnel Benefit Contributions – P39.90 billion or 5.76 percent and Other Personnel
Benefits – P121.01 billion or 17.48 percent. The components of personnel services
presented in comparison with CY 2014 are:

Personnel Services
Salaries and Wages 351,789,458,475.92 330,602,200,490.12
Other Compensation 179,759,610,125.49 137,961,101,949.00
Personnel Benefit Contributions 39,897,519,068.49 40,388,736,311.52
Other Personnel Benefits 121,008,711,212.17 127,871,456,101.59
Total Personnel Services 692,455,298,882.07 636,823,494,852.23
The DepED reported the biggest spending for personnel services at P265.91 billion
or 38.40 percent. The DILG and DND followed with P129.23 billion or 18.66 percent and
138
P113.77 billion or 16.43 percent, respectively. The departments/offices with huge
expenses for Personnel Services are as follows:

Education 265,906,186,062.64 38.40
The Judiciary 19,969,799,668.61 2.88
Health 19,123,866,396.39 2.76
Justice 10,235,944,838.41 1.48
Autonomous Region in Muslim Mindanao 10,116,999,000.17 1.46
Other Departments/Offices 72,395,458,331.55 10.45
Total 692,455,298,882.07 100.00
33.1 Salaries and Wages
The salaries and wages of P351.79 billion consists of the following:
Particulars Amount Percent

Salaries and Wages - Regular 340,831,001,152.46 96.88
Salaries and Wages - Casual/Contractual 10,958,457,323.46 3.12
Total Salaries and Wages 351,789,458,475.92 100.00
33.2 Other Compensation
The data on other compensation of P179.76 billion are as follows:

Other Compensation
Other Bonuses and Allowances 43,176,039,572.98 24.02
Personal Economic Relief Allowance (PERA) 31,482,806,753.9 17.51
Year End Bonus 28,493,360,737.89 15.85
Subsistence Allowance 20,825,837,576.56 11.59
Longevity Pay 17,253,316,719.53 9.60
Clothing/Uniform Allowance 7,925,174,277.23 4.41
Cash Gift 6,704,128,383.18 3.73
Overseas Allowance 4,830,539,398.79 2.69
Hazard Pay 4,643,753,580.10 2.58
Honoraria 3,656,623,625.22 2.03
Productivity Incentive Allowance 3,197,868,267.98 1.78
Overtime and Night Pay 1,902,302,492.05 1.06
Representation Allowance (RA) 1,887,117,484.62 1.05
Transportation Allowance (TA) 1,820,649,744.51 1.01
Quarters Allowance 1,706,926,711.75 0.95
Laundry Allowance 253,164,799.20 0.14
Total Other Compensation 179,759,610,125.49 100.00
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33.3 Personnel Benefit Contributions
The details on personnel benefits contributions of P39.90 billion are:

Personnel Benefit Contributions
Retirement and Life Insurance Premiums 32,502,946,158.25 81.47
PhilHealth Contributions 3,890,788,351.51 9.75
Pag-IBIG Contributions 1,823,921,684.28 4.57
Employees Compensation Insurance Premiums 1,619,177,527.05 4.06
Provident/Welfare Fund Contributions 60,685,347.40 0.15
Total Personnel Benefit Contributions 39,897,519,068.49 100.00
33.4 Other Personnel Benefits
The data on other personnel benefits of P121.01 billion are:
Particulars Amounts Percent

Other Personnel Benefits
Pension Benefits 71,829,483,692.24 59.36
Other Personnel Benefits 22,383,291,026.14 18.50
Terminal Leave Benefits 17,324,943,615.39 14.32
Retirement Gratuity 9,470,992,878.40 7.83
Total Other Personnel Benefits 121,008,711,212.17 100.00
Note 34: Maintenance and Other Operating Expenses
Maintenance and other operating expenses totalled at P234.29 billion with the
three top components of significant amount of expenses as follows: Other MOOE –
P56.35 billion or 24.05 percent; Supplies and Materials Expenses - P46.18 billion or 19.71
percent; Professional Services – P23.50 billion or 10.03 percent; and Repairs and
Maintenance – P21.71 billion or 9.26 percent. The details of MOOE are as follows:

Maintenance and Other Operating Expenses
Other Maintenance and Other Operating Expenses 56,352,670,931.46 40,023,690,755.97
Supplies and Materials Expenses 46,177,838,551.60 41,463,160,465.48
Professional Services 23,499,798,823.43 17,028,427,959.63
Repairs and Maintenance 21,705,453,616.55 20,991,668,550.84
Training and Scholarship Expenses 20,360,991,084.08 15,118,301,119.85
Taxes, Insurance Premiums and Other Fees 18,232,068,225.22 12,977,621,299.39
General Services 13,184,544,489.71 11,664,527,402.60
Utility Expenses 12,048,901,274.47 12,301,737,275.59
Traveling Expenses 11,178,541,229.76 9,876,810,648.94
Communication Expenses 3,828,348,920.35 3,310,521,443.88
Confidential, Intelligence and Extraordinary Expenses 3,684,310,467.49 2,794,709,317.19
Labor and Wages 1,984,427,987.95 1,341,102,011.45
Survey, Research, Exploration and Development
Expenses 1,474,527,983.53 1,417,021,871.12
Awards/Rewards and Prizes 522,864,008.65 627,417,011.36
140
Demolition/Relocation and Desilting/Dredging
Expenses 33,783,693.70 27,376,770.52
Generation, Transmission and Distribution Expenses 17,051,246.09 11,315,336.60
Total Maintenance and Other Operating Expenses 234,286,122,534.04 190,975,409,240.41
Among the departments/offices, DepED reported the highest amount for MOOE at
P27.85 billion or 11.89 percent followed by DOH and DOF with P22.09 billion or 9.43
percent and P18.42 billion or 7.86 percent, respectively. The departments/offices and their
corresponding expenses on MOOE are the following:

Education 27,846,169,638.24 11.89
Health 22,085,674,369.69 9.43
Finance 18,418,398,111.59 7.86
Agriculture 13,590,656,257.58 5.80
Other Departments/Offices 71,489,286,370.92 30.51
Total 234,286,122,534.04 100.00
34.1 Other Maintenance and Other Operating Expenses
The details of other MOOE amounting to P56.35 billion are as follows:
Particulars Amounts Percent

Other Maintenance and Operating Expenses
Donations 17,164,431,869.96 30.46
Other Maintenance and Operating Expenses 15,046,545,773.46 26.70
Rent/Lease Expenses 13,062,468,859.12 23.18
Representation Expenses 4,517,761,312.52 8.02
Printing and Publication Expenses 2,018,436,405.53 3.58
Membership Dues and Contributions to Organizations 1,586,007,315.15 2.81
Advertising Expenses 1,044,139,094.35 1.85
Loss on Guaranty 739,357,190.25 1.31
Transportation and Delivery Expenses 638,367,240.12 1.13
Subscription Expenses 431,364,141.45 0.77
Litigation/Acquired Assets Expenses 103,791,729.55 0.18
Total Other Maintenance and Other Operating Expenses 56,352,670,931.46 100.00
The top five departments/offices which reported the biggest amount were: DepED
– P9.60 billion or 17.04 percent; DOTC - P5.30 billion or 9.41 percent; DA– P4.17
billion or 7.41 percent; OEO – P4.01 billion or 7.11 percent; and OP – P3.96 billion
or 7.02 percent.
141
34.2 Supplies and Materials
Next to Other MOOE, Supplies and Materials Expenses registered the

highest share for total MOOE of P46.18 billion, details are as follows:

Supplies and Materials Expenses
Office Supplies Expenses 9,085,039,759.65 19.67
Other Supplies and Materials Expenses 8,578,508,057.28 18.58
Fuel, Oil and Lubricants Expenses 6,415,605,139.54 13.89
Food Supplies Expenses 5,124,190,892.70 11.10
Medical, Dental and Laboratory Supplies Expenses 4,723,253,748.33 10.23
Drugs and Medicines Expenses 3,673,149,622.74 7.95
Agricultural and Marine Supplies Expenses 2,911,380,805.44 6.30
Accountable Forms Expenses 2,485,775,798.76 5.38
Military, Police and Traffic Supplies Expenses 1,252,457,765.08 2.71
Textbooks and Instructional Materials Expenses 914,090,290.01 1.98
Welfare Goods Expenses 736,941,081.26 1.60
Animal/Zoological Supplies Expenses 184,950,642.66 0.40
Chemical and Filtering Supplies Expenses 48,498,753.08 0.11
Non-Accountable Forms Expenses 38,514,204.30 0.08
Semi-Expendable Furniture, Fixtures and Books Expenses 3,328,536.24 0.01
Semi-Expendable Machinery and Equipment Expenses 2,153,454.53 0.00
Total Supplies and Materials Expenses 46,177,838,551.60 100.00
The leading consumers are the following departments: DOH – P8.16 billion or
17.66 percent; DILG – P6.69 or 14.48 percent; DND – P6.60 billion or 14.30 percent;
DepEd – P6.07 billion or 13.15 percent; and DA – P3.35 or 7.26 percent.
34.3 Professional Services
Total professional services of P23.50 billion accounted for 10.03 percent of

the total MOOE with details as follows:

Professional Services
Other Professional Services 17,956,935,555.16 76.41
Consultancy Services 5,123,397,514.21 41.80
Legal Services 349,212,795.19 1.49
Auditing Services 70,252,958.87 0.30
Total Professional Services 23,499,798,823.43 100.00
The DSWD reported the biggest share of P5.28 billion or 22.46 percent
followed by DOH - P4.90 billion or 20.82 percent, DENR - P1.94 billion or 8.27
percent, OP – P1.88 billion or 9.01 percent, and SUCs - P1.78 billion or 7.57
percent.
34.4 Repairs and Maintenance
Total repairs and maintenance for this year amounted to P21.71 billion. Of
the total, the DPWH registered the highest amount of P9.04 billion or 41.65
percent followed by the DND, DepEd and DILG at P3.84 billion or 17.70 percent,
142
P3.08 billion or 14.20 percent and P1.03 billion or 4.73 percent, respectively. Data
on the components of Repairs and Maintenance are as follows:
Infrastructure Assets 8,674,317,479.84 39.96

Buildings and Other Structures 6,304,923,019.50 29.05
Transportation Equipment 4,048,551,337.95 18.65
Machinery and Equipment 2,222,243,123.90 10.24
Land Improvements 188,647,690.92 0.87
Furniture and Fixtures 145,806,274.84 0.67
Other Property, Plant and Equipment 60,467,668.06 0.28
Leased Assets Improvements 32,101,513.74 0.15
Leased Assets 16,042,169.57 0.07
Investment Property 10,176,937.82 0.05
Heritage Assets 2,176,400.41 0.01
Total 21,705,453,616.55 100.00
Note 35: Financial Expenses
Of the total amount of P397.71 billion, the DOF accounted for 396.55 billion or
99.71 percent, of which P395.70 billion or 99.79 percent was reported by the BTr as
interest expense. The details of financial expenses are as follows:
Financial Expenses
Interest Expenses 396,117,938,562.41 319,806,529,530.50
Bank Charges 1,050,331,642.42 848,350,296.57
Other Financial Charges 391,341,931.93 4,247,572,808.45
Commitment Fees 151,828,757.38 192,131,181.51
Management Supervision/Trusteeship Fees 200,000.00 -
Guarantee Fees - 4,482.02
Total Financial Expenses 397,711,640,894.14 325,094,588,299.05
Note 36: Non-Cash Expenses
Among the departments, DPWH shared the biggest amount of P60.12 billion,
wherein, an increase of P59.26 billion of depreciation expense of Infrastructure Assets was
recognized under DO 176 s.2015. The details of non-cash expenses are as follows:

Non-Cash Expenses
Depreciation 81,264,990,819.94 20,348,744,943.44
Amortization – Intangible Assets 141,401,191.23 69,408,002.94
Impairment Losses 1,204,428,619.93 389,958,974.38
Losses 952,669.94 783,791.83
Total Non-Cash Expenses 82,611,773,301.04 20,808,895,712.59
143
Note 37: Net Financial Assistance/Subsidy
Net Financial Assistance/Subsidy of negative P597.82 billion consisted of the

following:
Particulars Amount
Total Financial Assistance/Subsidy from NGAs, LGUs
and GOCCs 1,812,367,174,314.60
Less: Total Financial Assistance/Subsidy to NGAs,
LGUs, GOCCs and NGOs /POs 2,410,183,104,122.56
Net Financial Assistance/Subsidy (597,815,929,807.96)
37.1 Financial Assistance/Subsidy from NGAs, LGUs, GOCCs
The main component of this account is the Subsidy from National

Government which accounted for P1.761 trillion or 97.15 percent. This account is
increased by the receipt of NCA, NCAA, Working Fund and constructive receipt
of CDC by Foreign Service Posts of the DFA. It is also increased by the Tax
Remittance Advices (TRAs) issued to NGAs and for tax subsidies by the NG to the
GOCCs. On the other hand, it is decreased by remittances to the National Treasury
of collections from refunds of current year’s excess of cash advances and working
fund, and refunds of current year’s overpayment of expenses and disallowances;
reversion of unused/lapsed NCAs; and closing of the account at year-end to
Revenue and Expense Summary account. For FY 2015, Financial
Assistance/Subsidy from NGAs, LGUs and GOCCs are as follows:
Particulars Amount
Subsidy from National Government 1,760,716,643,862.44
Subsidy from other NGAs 46,772,002,685.11
Assistance from Local Government Units 2,806,312,264.38
Assistance from Government-Owned and/or Controlled
Corporations 271,684.16
Subsidy from Other Funds 1,838,247,645.69
Subsidy from Central Office 233,696172.82
Total 1,812,367,174,314.60
The DBM topped the highest Subsidy from NG with P409.18 billion or
23.24 percent followed by DEpEd, DPWH, DILG with the following amounts:
P310.50 or 17.64 percent; P246.66 billion or 14.01 percent and P157.85 billion or
8.97 percent.
\
37.2 Financial Assistance/Subsidy to NGAs, LGUs, GOCCs and NGOs/POs
The main component of this category is the account Subsidy to NGAs

totaling P1.815 trillion or 75.34 percent. This account is increased by
replenishments to AGSBs for negotiated MDS checks and other payments on
accounts of NGAs; TRAs issued to BIR; Working Fund deposited to the foreign
currency accounts of implementing NGAs for FAPs; constructive issuance of
NCAA for advanced payments made by foreign creditors and donors; constructive
issuance of CDC to Foreign Service Posts based on their submitted Report of
Income; and for tax subsidies by NG to GOCCs. It is decreased at year-end for the
144
closing of the account to the Revenue and Expense Summary account. The details
of subsidy to NGAs are as follows:
Particulars Amount
Replenishment of negotiated MDS account 1,795,016,429,415.61
Tax Remittance Advices 61,919,265,093.93
JC 2-97 NCAA 5,455,114,558.51
DFA Phil. Contributions to International Organizations/ Foreign
Service Posts 3,826,877,079.73
JC 2-91Customs Duties/Other Taxes 13,710,472,866.38
JC 2-94 Working Fund-Loan/Grant 22,520,719,559.84
JC 2-97 NCAA (JICA – Transfer Procedure B) 2,835,048,740.65
Total 1,905,283,927,314.65
Less: Subsidy from NGAS (Reciprocal accounts/MAAD 89,563,155,517.31
Books)
Net Subsidy to NGAS 1,815,720,771,797.34
Other components of financial assistance are Internal Revenue Allotment

given by the NG to Local Government Units of P391.48 billion or 16.24 percent;
BSGC – P89.62 or 3.71 percent. The data on the total financial assistance/subsidy
to NGAs, LGUs, GOCCs and NGOS/POs of P2.410 trillion are as follows:
Particulars Amount
Subsidy to NGAs 1,815,720,771,797.34
Financial Assistance to NGAs 29,399,303,242.36
Financial Assistance to Local Government Units 18,661,430,372.29
Budgetary Support to GOCCs 89,618,852,236.79
Financial Assistance to NGOs/POs 724,217,620.27
Internal Revenue Allotment 391,480,356,397.00
Subsidy to Regional Offices/Staff Bureaus 77,448,161.80
Subsidy to Operating Units 103,788,942.50
Subsidy to Other Funds 855,726,774.92
Subsidies - Others 63,541,208,577.29
Total 2,410,183,104,122.56
Note 38: Non-Operating Income / Gain
Data for Non-operating Income/Gain of P25.10 billion are as follows:
Particulars Amount
Sale of Assets
Sale of Garnished//confiscated/Abandoned/Seized
Goods and Properties 906,226,929.85
Sale of Unserviceable Properties 359,676.30
Total Sale of Assets 906,586,606.15
Gain and Reversal
Gain on Foreign Exchange (FOREX) 18,964,118,977.26
Gain on Sale of Investments 3,933886,623.01
Other Gains 1,297,853,560.59
Gain on Sale of Property, Plant and Equipment 3,368,758.68
Gain on Sale of Investment Property 1,406,561.29
Total Gains 24,200,634,480.83
Total Non-Operating Income 25,107,221,086.98
145
The Non-operating income under Sale of Garnished/Confiscated/
Abandoned/Seized Goods and Properties in the amount of P906.23 million is attributed to
the BOC which reported the biggest amount of P759.68 million or 83.83 percent followed
by PCGG at P141.93 million or 15.66 percent.
Account Gains which totalled P24.20 billion is a composite of the DOF reported
gains at P21.63 billion or 89.38 percent followed by DSWD of P1.51 billion 6.22 percent,
and DFA of P510.78 million or 2.11 percent. The remaining balance of P552.49 million
or 2.29 percent is shared by other departments.
Note 39: Losses
The details of non-operating losses of P100.63 billion are as follows:
Particulars Amount
Loss on Foreign Exchange (FOREX) (100,521,751,914.16)
Loss of Assets (40,099,726.04)
Loss on Sale of Property, Plant and Equipment (38,962,035.69)
Loss on Sale of Assets (12,106,162.52)
Loss on Sale of Investment Property (995,716.72)
Other Losses (13,594740.85)
Total (100,627,510,295.98)
The Loss on Foreign Exchange of P100.52 billion consists substantially of the loss
reported by DOF-BTr, amounting to 99.12 billion or 98.49 percent.
Note 40: Surplus/Deficit for the Period
The NG’s operations for the year resulted to a Surplus/Deficit of negative P3.26
billion, presented as follows:
Particulars Amount
Revenue 2,077,144,173,038.67
Less: Expenses 1,407,064,835,611.30
Surplus/(Deficit) Before Other Income/Expense 670,079,337,427.37
Items
Other Income/Expense Items
Net Financial Assistance, Subsidy From/To NGAs (100,137,657,130.15)
Assistance From /ToLGUs, GOCCs, NGOs and
Subsidy from Other Funds (497,678,272,677.81
Sale of Assets 906,586,606.15
Net Gain/(Loss) (76,426,875,815.15)
Sub-Total (673,336,219,016.96)
Deficit for the Period (3,256,881,589.59)
146
Note 41: Cash Inflows from Operating Activities
The Cash Inflows from Operating Activities of P4.19 trillion were sourced from
the following:
Particulars Amount
Collection of Income/Revenues 2,035,453,976,520.85
Receipt of Notice of Cash Allocations 1,887,899,174,054.13
Receipt of Trust Liabilities 63,437,718,367.72
Receipt of Inter-Agency Fund Transfers 59,249,749,314.96
Receipt of Intra-Agency Fund Transfers 53,165,984,602.84
Collection of Receivables 29,934,426,519.44
Other Receipts 25,534,755,906.32
Receipt of Subsidy from Other NGAs, LGUs and
GOCCs 10,456,164,162.71
Adjustments 29,596,937,872.32
Total 4,194,728,887,321.29
The adjustments made by agencies that increased the balances of cash for
Operating Activities by P29.60 billion are the following:
Particulars Amount
Restoration of Cash for Unreleased Checks 5,157,865,369.89
Restoration of Cash for Cancelled/lost/stale
checks/ADA 2,615,776,233.49
Others 21,823,296,268.94
Total 29,596,937,872.32
The total receipt of Notice of Cash Allocation (NCA), Notice of Transfer of Cash
Allocation, NCA for trust and other receipts, constructive receipt of NCA for Tax
Remittance Advice, and working fund for foreign-assisted projects amounted to P1.89
trillion. The following Departments reported the highest receipt of NCA:
Particulars Amount
Budget and Management 412,924,678,127.35
Education 328,116,074,208.30
Interior and Local Government 163,068,712,481.94
National Defense 156,702,016,680.74
Social Welfare and Development 134,192,503,843.19
Other Departments/Offices 448,821,358,180.77
Total 1,887,899,174,054.13
Income/revenues collected of P2.04 trillion includes collection of tax revenue,

collection of service and business income, collection of other income, receipt of shares,
grants and donations, and receipt of prior years’ income. The top revenue collecting
Departments/offices are the following:
147
Particulars Amount
Finance 1,918,293,695,575.52
Transportation and Communications 24,800,477,618.81
State Universities and Colleges 18,125,524,237.19
Energy 17,063,631,822.74
Justice 11,104,647,472.54
Other Executive Offices 9,339,885,192.64
Foreign Affairs 6,223,825,822.59
Labor and Employment 3,534,722,465.89
The Judiciary 2,667,856,461.47
Other Departments/Offices 17,024,351,663.17
Total 2,035,453,976,520.85
Note 42: Cash Outflows from Operating Activities
The Cash Outflows from Operating Activities of P3.91 trillion were disbursed for
the following:
Particulars Amount
Replenishment of Negotiated MDS checks by BTr 1,716,410,975,608.15
Payment of Operating Expenses 679,778,726,458.63
Grant of Financial Assistance/Subsidy 542,752,226,513.55
Remittance of Personnel Benefit Contributions and
Mandatory Deductions 294,500,603,160.27
Payment from Trust Liabilities/Fund Transfers 111,548,298,361.26
Other Disbursements 73,106,505,046.12
Release of Inter-Agency Fund Transfers 71,299,240,995.21
Release of Intra-Agency Fund Transfer 48,200,852,053.33
Payment of Prior Year's Accounts Payable 40,941,248,451.35
Grant of Cash Advances 39,907,221,030.78
Purchase of Inventories 22,297,433,128.81
Prepayments 17,973,493,588.92
Payment of Deposits 15,081,319,924.93
Purchase of Consumable Biological Assets 3,112,220,540.97
Adjustments 232,308,439,660.75
Total 3,909,218,804,523.04
The adjustments made by agencies amounting to P232.31 billion that decreased the
balances of cash from Operating Activities are the following:
Particulars Amount
Reversal of Unused NCA 86,517,531,058.71
Reversing Entry for Unreleased Checks in the Previous
Year 7,802,190,060.22
Adjustment for Dishonored Checks 38,341,160.37
Adjustment for Cash Shortage 26,715,482.44
Difference between Amount of Remittance to the
National Treasury (NGAs vs BTr NG books) 20,880,280,885.61
Others 117,043,381,013.40
Total 232,308,439,660.75
148
The DBM which administers the funds for LGUs reported grant of financial
assistance/subsidy of P381.69 billion of which, P225.08 billion is for Internal Revenue
Allotment.
The DOF-BTr which administers the budgetary support to GOCCs reported grant
of financial subsidy in the amount of P88.80 billion.
The cash activities eliminated in the Consolidated Statement of Cash Flow under
the Operating Activities are as follows: remittance to National Treasury amounting to
P1,881.10 billion; remittances from National Government Agencies amounting to
P1,865.19 billion; and intra-agency transactions/activities. The noted difference
amounting to P20.88 billion between the amount of remittance to NGAs and BTr-NG
books is also included as an adjustment under this activity.
Note 43: Cash Inflows from Investing Activities
The Cash Inflows from Investing Activities of P175.08 billion were derived from
the following:
Particulars Amount
Proceeds from Matured/Return of Investments 68,418,731,145.22
Sale of Investments 67,918,766,578.26
Receipt of Cash Dividends 32,269,272,931.29
Collection of Long-Term Loans 6,288,968,793.00
Proceeds from Sale/Disposal of Property, Plant and
Equipment 177,065,860.01
Proceeds from Sale of Investment Property 3,061,599.22
Total 175,075,866,907.00
Note 44: Cash Outflows from Investing Activities
The Cash Outflows from Investing Activities amounting to P320.07 billion were
from the following:
Particulars Amount
Purchase/Construction of Property, Plant and Equipment 238,012,029,527.27
Investments 78,445,076,370.84
Grant of Loans 3,380,827,218.94
Purchase of Intangible Assets 104,775,086.36
Purchase of Bearer Biological Assets 85,307,560.30
Purchase/Construction of Investment Property 45,888,725.09
Total 320,073,904,488.80
Of the total Investments, P56.92 billion investments in stocks, bonds and

marketable securities reported by DOF-BTr (NG books) is net of discount on T-Bonds
but inclusive of premium and accrued interest on bonds.
149
Note 45: Cash Inflows from Financing Activities
The Cash Inflows from Financing Activities of P899.25 billion were generated
from the following:
Particulars Amount
Proceeds from Issuance of Bills and Bonds 806,034,824,790.36
Proceeds from Domestic and Foreign Loans 93,214,796,428.96
Total 899,249,621,219.32
The total proceeds solely reported by DOF-BTr (NG books) is net of discount,
other financial charges and documentary stamps but inclusive of premium on bonds,
accrued interests and withholding tax on discounts.
Note 46: Cash Outflows from Financing Activities
The Cash Outflows from Financing Activities of P1.11 trillion were from the
following:
Particulars Amount
Redemption of Bills/Bonds Issued 772,820,120,491.70
Payment of Financial Expenses 269,864,422.172.13
Payment of Long-Term Liabilities 64,937,609,510.94
Total 1,107,622,152,174.77
The payment of domestic and foreign loans of P1.107 trillion reported by DOF-
BTr (NG books) include loan repayments and redemptions, payment of interest net of
withholding tax, commitment charges, other financial charges, servicing of relent and
guaranteed loans, and loss on guaranty.
Note 47: Cash and Cash Equivalents
47.1 Cash and Cash Equivalents, Beginning Balance
The beginning balance of Cash and Cash Equivalents reported at P821.55 billion
was increased by P62.63 billion, due to restatements made by some Agencies. However,
the restated balance of P884.24 billion was not carried over in January 1, 2015. The details
are as follows:
Particulars Amount
Cash and Cash Equivalents, December 31, 2014 821,552,385,384.57
Adjustments due to restatements: 62,683,106,083.78
Cash and Cash Equivalents, December 31, 2014, restated 884,235,491,468.35
Adjustments:
(a) Non-submission of SCF
Agrarian Reform – ARMM, CARP (13,727,695.23)
Trade and Industry - CMDF (16,232,856.89)
(b) Transfer of Agencies from NG to GOCC
Agriculture – PHILCOA (25,692,220.62)
150
Particulars Amount
(c) Unadjusted balance of transferred bureaus
National Economic Development Authority – BAS and BLES 986,275.30
Cash and Cash Equivalents, January 1, 2015 884,180,824,970.91
The Departments/offices with adjustments due to restatements are as follows:
Office of the President 5,323,084.52
Agriculture 27,172,484.01
State Universities and Colleges (15,318,562.31)
Energy 297,557,508.46
Environment and Natural Resources (23,866,002.28)
Finance 62,374,691,785.17
Justice 3,074,635.96
National Defense 15,008,003.21
Public Works and Highways (23,026,363.92)
Tourism 25,199,559.40
Transportation and Communications 194,802.81
Presidential Communications Operations Office 4,180,192.26
Other Executive Offices 18,857,405.51
The Judiciary (25,942,449.02)
Total 62,683,106,083.78
47.2 Cash and Cash Equivalents, Ending Balance
Cash and cash equivalents of P584.63 billion consists of Cash on Hand, Cash in
Banks, Treasury/Agency Cash Accounts with balances, and Cash Equivalent -Treasury
Bills. It comprises the following in the Statement of Financial Position:
Particulars Amount
Cash on Hand 2,548,385,613.00
Cash in Bank – Local Currency 640,713,506,701.84
Cash in Bank – Foreign Currency 76,066,287.436.32
Treasury/Agency Cash Accounts (135,364,110.295.15)
Cash Equivalent – Treasury Bills 670,688,448.94
Total Cash and Cash Equivalents 584,634,757,904.95
The Statement of Cash Flows as of December 31, 2015 showed ending balance of
Cash and Cash Equivalents in the total amount of P818.67 billion while the Statement of
Financial Position showed total balance of P584.63 billion. The difference of P234.04
billion is accounted for as follows: Cash Investment in Sinking Fund of P34.39 billion
classified under Investment Account; and P199.65 billion presented as a negative balance
under Cash-Treasury/Agency Deposit which pertains to the reciprocal account of the
deposits of NGAs .The difference were both reported in the books of DOF-BTr.
151
Note 48: Budgeted and Actual Receipts
48.1 Original Budgeted Receipts
The Original Budgeted amount of Receipts amounting to

P2,334,008,563,000 was sourced from the CY 2015 Budget of Expenditures
and Sources of Financing. It constitutes the projected revenues/receipts for Tax
Revenue, Services and Business Income, Shares, Grants and Donations, Gains,
Other Non-Operating Income and Proceeds from Domestic and Foreign Loans.
48.2 Final Budgeted Receipts
The Final Budgeted Amount of Receipts amounting to

P2,943,984,444,540.45 was based on the Consolidated Revenue Target sourced
from the Financial Accountability Report No. 5 (FAR No. 5), Statement of
Financial Performance and Statement of Cash Flows submitted by the NGAs.
It constitutes the projected revenues/receipts for Tax Revenue, Services and
Business Income, Shares, Grants and Donations, Gains, Other Non-Operating
Income and Proceeds from Domestic and Foreign Loans that will accrue to the
General Fund and Special Account in the General Fund.
48.3 Actual Receipts on Comparable Basis
The Actual Receipts on Comparable Basis amounting to

P2,935,624,346,674.85 was based on the Consolidated Actual Revenue
Collections per FAR No. 5, Statement of Financial Performance and Statement
of Cash Flows submitted by the NGAs. It constitutes the actual
collections/receipts from Tax Revenue, Services and Business Income, Shares,
Grants and Donations, Gains, Other Non-Operating Income and Proceeds from
Domestic and Foreign Loans that will accrue to the General Fund and Special
Account in the General Fund.
48.4 Variance between the Final Target and Actual Receipts
The Variance between the final targeted and actual revenue of

P8,360,097,865.60 represents the under collections of the National
Government for CY 2015.
Note 49: Budgeted and Actual Payments
49.1 Original Budget
The Original Budget totalling P2,929,811,467,236.00 for payments of

PS, MOOE, CO and Debt Service (Principal Amortization) was based on the
Consolidated Original Appropriations (Current Year’s Appropriations) sourced
from the Statement of Appropriations, Allotments, Obligations, Disbursements
and Balances (FAR No. 1) submitted by NGAs and Statement of
Appropriations, Allotments, Obligations and Balances prepared by COA-GAS.
152
49.2 Final Budget
The Final Budget amounting to P3,184,803,907,746.17 for payments of

Consolidated Adjusted Appropriations (Current Year and Continuing
Appropriations) sourced from FAR No. 1 submitted by NGAs and Statement of
Appropriations, Allotments, Obligations and Balances prepared by COA-GAS.
49.3 Actual Payments
The Actual Payments totalling P2,167,127,176,332.69 for payments of

Consolidated Disbursements for payment of Current Year’s Obligations (from
Current Year and Continuing Appropriations) sourced from FAR No. 1
submitted by NGAs and CY 2015 COA Annual Report on Appropriations,
Allotments, Obligations and Disbursements prepared by COA-GAS.
49.4 Variance between the Final Budget and Actual Payments
The difference of P1,017,676,731,413.48 between the Final Budget of

P3,184,803,907,746.17 and Actual Payments of P2,167,127,176,332.69
represents the unreleased appropriations, unobligated allotments and unpaid
obligations of the NG for CY 2015.
153
ANNEX A
List of NGAs which submitted their FSs for CY 2015
National Government Agency Office Address
Office of the President

1 Office of the President Proper Malacañang Palace Compound J. P. Laurel St., San
Miguel, Manila
2 Davao Integrated Development Program 848, Atis Street, Juna Subdivision, Davao City, 8000
Office of the Vice President

3 Office of the Vice President Proper Coconut Palace, F. Maria Guerrero St., CCP
Complex, Pasay City
Department of Agrarian Reform

4 Office of the Secretary Elliptical Rd., Diliman, Quezon City
Department of Agriculture
5 Office of the Secretary Eliptical Road, Diliman, Quezon City Philippines
1100
6 Agricultural Credit Policy Council San Miguel Avenue, Ortigas Center, Pasig City, 1605
7 Philippine Center for Postharvest Central Luzon State University (CLSU) Compound,
Development and Mechanization Science City of Munoz, Nueva Ecija
8 Philippine Council for Agriculture and R-7, Diliman, Quezon City, Metro Manila
Fisheries
9 Philippine Fiber Industry Development BAI Compound Visayas Avenue, Vasra Diliman,
Authority Quezon City
10 National Meat Inspection Service BAI Compound Visayas Avenue, Vasra Diliman,
Quezon City
11 Philippine Carabao Center Central Luzon State University, Philippine Carabao
Center, Executive Ave, Science City of Muñoz,
Nueva Ecija
12 Bureau of Fisheries & Aquatic 3F PCA Building, Vasra, Quezon City, Philippines
Resources
13 National Tobacco Administration Sct. Reyes cor Panay Ave.,
Quezon City
Department of Budget and Management

14 Office of the Secretary General Solano St., San Miguel, Manila
15 Government Procurement Policy Board- 2506 Raffles Corporate Tower, F. Ortigas Jr. Rd.,
Technical Support Office Ortigas, Pasig City
16 Procurement Service PS DBM Compound, RR Road, Paco, Manila
Department of Education
17 Office of the Secretary DepEd Complex, Meralco Avenue, Pasig City
18 Early Childhood Care Development 5/F PDAF Bldg. 407 Sen. Gil Puyat Avenue, Makati
Council City
19 National Council for Children’s 4/F Bonifacio Bldg., DepEd Complex, Meralco
Television Avenue, Pasig City
20 National Book Development Board Unit 2401 Prestige Tower F. Ortigas Jr. Road
(formerly Emerald Ave., Ortigas Center, Pasig
City 1605)
154
21 National Museum Executive House Bldg., P. Burgos St., Taft Ave.,
Manila
22 Philippine High School for the Arts National Arts Center, Mt. Makiling, Los Baños,
Laguna
Department of Energy
23 Office of the Secretary Energy Center, Rizal Drive, Bonifacio Global City,
Taguig City
Department of Environment and Natural Resources

24 Office of the Secretary Visayas Avenue, Diliman, Quezon City,
1100
25 Environmental Management Bureau DENR Compound, Visayas Avenue, Diliman,
Quezon City
26 Mines and Geo-Sciences Bureau Vasra, Diliman, Quezon City, 1128 Metro Manila
27 National Mapping and Resources Lawton Avenue, Fort Andres Bonifacio, Taguig, 1634
Information Authority
28 National Water Resource Board 8th Floor, NIA Building, EDSA, Diliman 1101
29 Palawan Council for Sustainable PCSD Building Sports Complex Road
Development Staff Sta. Monica Heights, Puerto Princesa City,
Palawan
Department of Finance
30 Office of the Secretary 6/F DOF Bldg., Roxas Blvd. cor. Pablo Ocampo St.,
Manila
31 Bureau of Customs Bureau of Customs Bldg., Port Area, South Harbor,
Manila
32 Bureau of Internal Revenue Rm. 405, BIR National Office Bldg., Diliman,
Quezon City
33 Bureau of Local Government Finance 8/F EDPC Bldg., BSP Complex, Roxas Blvd., Manila
34 Bureau of the Treasury Palacio del Gobernador Bldg., Intramuros, Manila
35 Central Board of Assessment and 7/F EDPC Bldg., BSP Complex, Roxas Blvd., Manila
Appeals
36 Cooperative Development Authority 5/F CDA Bldg., 827 Brgy. Immaculate Concepcion,
Aurora Blvd., Quezon City
37 Insurance Commission 1071 United Nations Avenue, Ermita, Manila
38 National Tax Research Center Harbor Centre II, 23rd cor. A. C. Delgado St., Port
Area, Manila
39 Privatization Management Office 3/F North Davao Mining Corp. Bldg., 104 Gamboa
St., Legaspi Village, Makati City
40 Securities and Exchange Commission Securities And Exchange Commission, Edsa,
Mandaluyong, 1556
41 Municipal Development Fund Office Podium Level, DOF Executive Building, Roxas
Boulevard corner Pablo Ocampo Sr. Street,
1004
Department of Foreign Affairs

42 Office of the Secretary 2330 Roxas Blvd., Pasay City
43 Foreign Service Institute 5th Flr. DFA Bldg., 2330 Roxas Blvd, Pasay City
44 Technical Cooperation Council of the 6th Flr. DFA Bldg., 2330 Roxas Blvd, Pasay City
Philippines
45 UNESCO National Commission of the Ground Flr. DFA Bldg., 2330 Roxas Blvd, Pasay City
Philippines
155
Department of Health
46 Office of the Secretary San Lazaro Compound, Rizal Avenue, Sta. Cruz,
Manila
47 National Nutrition Council Nutrition Bldg., 2332 Chino Roces Ave., Taguig City
48 Commission on Population Mandaluyong City, Manila, Metro Manila
Department of the Interior and Local Government

49 Office of the Secretary DILG-NAPOLCOM CENTER, EDSA cor. Quezon
Avenue, Quezon City
50 Bureau of Fire Protection Agham Road, Sitio San Roque, Brgy. Bagong Pag-
Asa, Quezon City
51 Bureau of Jail Management and 144 Mindanao Ave., Quezon City
Penology
52 Local Government Academy 8/F & 9/F Agustin I Bldg., F. Ortigas Jr. Road Ortigas
Center, Pasig City
53 National Police Commission DILG-NAPOLCOM Center, EDSA cor. Quezon
Avenue, Quezon City
54 Philippine National Police PNP National Headquarters Camp General Crame,
Quezon City
55 Philippine Public Safety College Fort Bonifacio, Taguig City
Department of Justice
56 Office of the Secretary DOJ Building, Padre Faura St., Ermita, Manila 1004
57 Bureau of Corrections NBP Reservation, Muntinlupa City
58 Bureau of Immigration 2nd Flr., BOI Bldg., Magallanes Drive, Intramuros,
Manila
59 Land Registration Authority NIA Road cor. East Ave., Diliman, Q. C.
60 National Bureau of Investigation NBI Bldg., Taft Avenue, Ermita, Manila
61 Office of the Government Corporate 3rd Flr., MWSS Admin. Bldg., Katipunan Road,
Counsel Balara, Quezon City
62 Office of the Solicitor General OSG Bldg., 134 Amorsolo St., Legaspi Village,
Makati City, 1229 Kalakhang Maynila
63 Parole and Probation Administration DOJ Agencies Bldg., NIA Road cor. East Ave.,
Diliman, Quezon City
64 Presidential Commission on Good 82 RIC Bldg., de los Santos Ave., EDSA,
Government Mandaluyong City
65 Public Attorney’s Office DOJ Agencies Bldg., NIA Road cor. East Ave.,
Department of Labor and Employment

66 Office of the Secretary DOLE Bldg., Muralla cor. Gen. Luna Sts.,
Intramuros, Manila
67 Institute of Labor Studies 5th Flr., DOLE Bldg., Intramuros, Manila
68 National Conciliation and Mediation 4/F-6/F Arcadia Bldg., Quezon Ave., Quezon City
Board
69 National Labor Relations Commission PPSTA Bldg., Banaue Ave. cor. P. Florentino St.,
Quezon City
70 National Maritime Polytechnic Brgy. Cabalawan, Tacloban City
71 National Wages and Productivity 2/F & 3/F DY International Bldg., Gen. Malvar cor.
Commission San Marcelino St., Malate, Manila
72 Philippine Overseas Employment POEA Bldg., Ortigas Ave. cor. EDSA, Mandaluyong
Administration City
73 Professional Regulation Commission P. Paredes St. cor. N. Reyes St., Sampaloc, Manila
156
74 Technical Education and Skills TESDA Administrative Bldg., TESDA Complex, East
Development Authority Service Road, South Superhighway, Taguig,
Metro Manila
Department of National Defense

75 Office of the Secretary Camp General Emilio Aguinaldo, Quezon City
76 AFP Medical Center Camp General Emilio Aguinaldo, Quezon City
77 Government Arsenal Camp Antonio Luna, Limay, Bataan
78 National Defense College of the "LOGCOM Compound, Camp Gen. Emilio
Philippines Aguinaldo, Quezon City
79 Office of Civil Defense 81 15th Ave., Murphy, Cubao, Quezon City, 1109
Metro Manila
80 Philippine Veterans Affairs Office Camp Emilio Aguinaldo, Quezon City
(Proper)
81 Veterans Memorial Medical Center North Avenue, Diliman, Quezon City
82 Veterans Golf Club Mindanao Ave., Proj. 6, Quezon City
83 Philippine Army (Land Forces) Fort Bonifacio, Makati City
84 Philippine Air Force (Air Force) Villamor Airbase, Pasay City
85 Philippine Military Academy Fort del Pilar, Baguio City
86 Philippine Navy (Naval Force) Roxas Blvd., Manila
87 Presidential Security Group Malacañang Park, Manila
88 General Headquarters, AFP and AFP Camp General E. Aguinaldo, Quezon City
Wide Service
89 GHQ-AFP Dental Service Center V. Luna Ave., Quezon City
Department of Public Works & Highways

90 Office of the Secretary Bonifacio Drive Port Area, 652 Zone 068, Manila,
1018
91 Road Board Bonifacio Drive Port Area, 652 Zone 068, Manila,
1018
Department of Science and Technology

92 Office of the Secretary Gen. Santos Ave., Bicutan, Taguig, Metro Manila
93 Advanced Science and Technology ASTI Bldg., Technopark Complex, CP Garcia St., UP
Institute Diliman, Quezon City
94 Food & Nutrition Research Institute DOST Complex, Gen. Santos Ave., Bicutan, Taguig
City
95 Forest Products Research and Narra St., Forestry Campus, 4031 College, Laguna
Development Institute 4031
96 Information and Communications NCC Bldg., Carlos P. Garcia Ave., Diliman, Quezon
Technology Office City
97 Industrial Technology Development DOST Complex, Gen. Santos Ave. Bicutan, Taguig
Institute City
98 Metals Industry Research and Gen. Santos Ave., Bicutan, Taguig City
Development Center
99 National Academy of Science and 2/F Philippine Science Heritage Center (PSHC) Bldg.,
Technology DOST Complex, Gen. Santos Avenue, Bicutan,
Taguig City
100 National Research Council of the Gen. Santos Avenue, Bicutan, Taguig City
Philippines
101 Philippine Atmospheric, Geophysical PAGASA Science Garden, Agham Road, Quezon
and Astronomical Services City
Administration
157
102 Philippine Council for Agriculture, Paseo de Valmayor, Los Baños, Laguna
Aquatic and Natural Resources
Research & Development
103 Philippine Council for Industry, Energy 4/F & 5/F Science Heritage Bldg., Gen. Santos Ave.,
and Emerging Technology Bicutan, Taguig City
104 Phil. Council for Health Research and 3/F DOST Main Bldg., Gen. Santos Ave., Bicutan,
Development Taguig City
105 Philippine Institute of Volcanology and Carlos P. Garcia Ave., UP Diliman, Quezon City
Seismology
106 Philippine Nuclear Research Institute Commonwealth Avenue, Diliman, Quezon City
107 Philippine Science High School System Agham Road, Diliman, Quezon City
108 Philippine Textile Research Institute Gen. Santos Ave., Bicutan, Taguig City
109 Science Education Institute 1st and 2nd Level, Science Heritage Bldg., Gen.
Santos Avenue, Bicutan, Taguig City
110 Science and Technology Information DOST Complex, Gen. Santos Ave., Bicutan, Taguig
Institute City
111 Technology Application and Promotion DOST Complex, Gen. Santos Ave., Bicutan, Taguig
Institute City
Department of Social Welfare and Development

112 Office of the Secretary DSWD Building, Contitution Hills, Batasan Complex,
Quezon City
113 Council for the Welfare of Children 10 Apo St., Sta. Mesa Heights, Quezon City
114 Inter-Country Adoption Board 2 Chicago St. cor. Ermin Garcia St., Brgy.
Pinagkaisahan, Cubao, Quezon City
115 National Council on Disability Affairs NCDA Bldg., Isidora St., Barangay Holy Spirit,
Quezon City
116 National Youth Commission 4/F Bookman Bldg., 373 Quezon Ave, Quezon City
117 Juvenile Justice and Welfare Council 56 Matimtiman Street, Quezon City, 1101 Metro
Manila
Department of Tourism
118 Office of the Secretary The New DOT Bldg., 351 Senator Gil Puyat Ave.,
Makati City
119 Intramuros Administration Palacio del Governador Bldg., Intramuros, Manila
120 National Park Development Committee Agrifina Circle, Rizal Park, Manila
Department of Trade and Industry

121 Office of the Secretary 385 Sen. Gil J. Puyat Avenue, Makati City
122 Board of Investments Industry & Investments Building, 385 Sen. Gil J.
Puyat Avenue, 1200, Makati City
123 Phil. Trade Training Center International Trade Center Complex, Roxas Blvd. cor.
Sen. Gil J. Puyat Ave., Pasay City
124 Product Development & Design Center DCP Bldg., CCP Complex, Roxas Blvd., Pasay City
of the Phils.
125 Intellectual Property Office 28 Upper McKinley Road, McKinley Hill Town
Center Fort Bonifacio, Taguig City
Department of Transportation and Communications

126 Office of the Secretary The Columbia Tower, Ortigas Avenue, Mandaluyong
City
127 Civil Aeronautics Board CAB Bldg., Old MIA Rd., Pasay City
158
128 Maritime Industry Authority #139 25th St., Port Area, Manila
129 Office for Transportation Security 2/F IBP Bldg., Dona Julia Vargas Ave., Ortigas
Center, Pasig City
130 Office of Transportation Cooperatives TRIDA Bldg., TM Kalaw Ave., Ermita, Manila
131 Philippine Coast Guard Sugar Center, North Avenue, Quezon City
132 Toll Regulatory Board Andrews Ave., cor. Aurora Blvd., Pasay City
Presidential Communications Operations Office

133 Presidential Communications Operations 2/F New Executive Building (NEB), Malacañang
Office Proper Compound
134 Bureau of Broadcast Services 4/F Media Center Bldg., Visayas Avenue, Diliman, Q.
C.
135 Bureau of Communications Services Philippine Cancer Society Bldg., San Rafael St., San
Miguel, Manila
136 National Printing Office EDSA cor. NIA Northside Road, Diliman, Quezon
City
137 News and Information Bureau Arlegui, Malacañang, Manila
138 Phil. Information Agency PIA Bldg., Visayas Avenue, Diliman, Quezon City
139 Presidential Broadcast Staff (RTVM) RTVM Building, J. P. Laurel St., Malacañang,
Manila 1005
National Economic and Development Authority

140 Office of the Director General 12 St., Josemaria Escriva Drive, Ortigas Center, Pasig
City 1605
141 Philippine Statistics Authority One Cyberpod Centris, EDSA Cor Quezon Ave,
Quezon City, 1100
142 Philippine National Volunteer Service NEDA Complex (opposite channel 7) EDSA, Quezon
Coordinating Agency City
143 Philippine Statistical Research and Kalayaan Ave, Diliman, Quezon City, Metro Manila
Training Institute
144 Tariff Commission Philippine Heart Center Bldg., East Avenue, Quezon
City
145 Public-Private Partnership Center of the NEDA Complex, Diliman, Quezon City
Philippines
Other Executive Offices

146 Anti-Money Laundering Council 5/F EDPC Bldg., Bangko Sentral ng Pilipinas
Complex Mabini corner Vito Cruz Streets
Malate, Manila 1004
147 Climate Change Commission Rm. 238 Mabini Hall, Malacañang Compound, San
Miguel, Manila
148 Commission on Filipino Overseas City Gold Center, 1345 Pres. Quirino Avenue cor.
South Super Highway, Paco, Manila
149 Commission on Higher Education City Gold Center, 1345 Pres. Quirino Avenue cor.
South Super Highway, Paco, Manila
150 Commission on the Filipino Language 2/F Watson Bldg., 1610 J. P. Laurel St., San Miguel,
Manila
151 Dangerous Drug Board 3rd Floor DDB-PDEA Bldg., National Government
Center, NIA Road, Brgy. Pinyahan, Quezon
City
152 Energy Regulatory Commission 16/F Pacific Center, San Miguel Avenue, Ortigas
Complex, Pasig City
153 Fertilizer and Pesticide Authority FPA Bldg. BAI Compound, Visayas Avenue Diliman,
Quezon City
159
154 Film Development Council of the 26/F, Export Bank Plaza, Gil Puyat Ave. cor. Chino
Philippines Roces, Makati City
155 Games and Amusement Board 2/F Legaspi Towers, 200 Paseo de Roxas, Makati
City
156 Governance Commission for 3/F Citibank Centre, Citibank Plaza, Paseo de Roxas
Government-Owned or Controlled Cor. Villar St., Makati City
Corporation
157 Housing and Land Use Regulatory HLURB Bldg., Kalayaan Ave., Diliman, Quezon City
Board
158 Housing and Urban Development 15/F, BDP Plaza, Paseo de Roxas, Makati City
Coordinating Council
159 Mindanao Development Authority 4/F SSS Bldg., J. P. Laurel Ave., Davao City
160 Movie and Television Review and #18 MTRCB Bldg., Timog Avenue, Quezon City
Classification Board
161 National Anti-Poverty Commission 3/F Agricultural Training Institute Bldg., Elliptical
Road, Diliman, Quezon City
162 National Commission for Culture and 633 General Luna St., Intramuros, Manila
the Arts - Proper
163 NCCA - National Historical Commission T. M. Kalaw St., Ermita, Manila
of the Philippines
164 NCCA - National Library of the T. M. Kalaw St., Ermita, Manila
Philippines
165 NCCA - National Archives of the National Library Bldg., T. M. Kalaw St., Ermita,
Philippines Manila
166 Cultural Center of the Philippines CCP Complex, Roxas Boulevard, Magdalena
Jalandoni, Malate, Pasay
167 National Commission on Indigenous 2/F N. dela Merced Bldg. corner West & Quezon
Peoples Ave., Quezon City
168 National Commission on Muslim 79 Jocfer Annex Bldg., Commonwealth Ave.,
Filipinos Diliman, Quezon City
169 National Intelligence Coordinating V. Luna Road cor. East Ave., Quezon City
Agency
170 National Security Council NICA Compound, V. Luna Road cor. East Ave.,
171 National Telecommunications Agham Road, East Triangle, Diliman, Quezon City
Commission
172 Office of the Presidential Adviser on the 7th Floor, Agustin Building, F. Ortigas Jr. Road,
Peace Process Ortigas Center, Pasig
173 Optical Media Board 35 Scout Limbaga, Brgy. Laging Handa, Quezon City
174 Pasig River Rehabilitation Commission 5th Floor, Triumph Building, 1610 Quezon Avenue
1103, Quezon Ave., Diliman, Quezon City,
1104 Metro Manila
175 Philippine Drug Enforcement Agency PDEA Bldg., NIA Road, National Government
Center, Brgy. Pinyahan, Quezon City
176 Philippine Racing Commission 4/F Electra House, Herrera-Esteban Sts., Legaspi
Village, Makati City
177 Philippine Sports Commission Rizal Memorial Sports Complex, Pablo Ocampo Sr.
St., Malate, Manila
178 Philippines Commission on Women 1145 J. P. Laurel St., San Miguel, Manila
179 Presidential Commission for the Urban 4th floor, DHC Bldg. 1115 EDSA, Project 7, Quezon
Poor City
180 Presidential Communications 3/F New Executive Building, Jose P. Laurel St.,
Development and Strategic Malacañang, Manila
Planning Office
181 Presidential Legislative Liaison Office 2/F Annex New Executive Bldg., Malacañang,
Manila
182 Presidential Management Staff 4/F New Executive Bldg., J. P. Laurel St.,
Malacañang, Manila
160
Constitutional Offices
Civil Service Commission
183 Civil Service Commission Constitutional Hills, Batasang Pambansa Complex,
Diliman Quezon City
184 Career Executive Service Board Number 3, Marcelino Street, Holy Sprit Drive,
Diliman, Barangay Isidora Hills, Quezon City,
1127
185 Commission on Audit Commonwealth Avenue, Quezon City 1100
186 Commission on Elections Palacio del Gobernador Bldg., Gen. Luna St. cor.
Andres Soriano Jr. Ave, Intramuros, Manila
187 Commission on Human Rights SAAC Bldg., UP Complex, Commonwealth Ave.,
188 Office of the Ombudsman Agham Road, Quezon City
Congress of the Philippines

189 Senate of the Philippines GSIS Complex, Pasay City
190 Senate Electoral Tribunal Commison On Audit National Capital Region
Building, Batasan Road, Quezon City, 1126
Metro Manila
191 Commission on Appointments 6F PNB Financial Center, D. Macapagal Blvd., Pasay
City
192 House of Representatives Batasan Complex, Quezon City
193 House of Representatives Electoral Commision On Audit National Capital Region
Tribunal Building, IBP Road Batasan Hills, Quezon
City, 1126 Metro Manila
The Judiciary
194 Supreme Court of the Philippines and the Padre Faura Street cor. Taft Ave., Ermita, Manila
Lower Courts
195 Presidential Electoral Tribunal Commonwealth Avenue, corner Batasan Road,
Quezon City
196 Sandiganbayan Centennial Building Commonwealth Avenue, corner
Batasan Road, Quezon City
197 Court of Appeals Maria Orosa St., Ermita, Manila
198 Court of Tax Appeals Agham Road, Government Center, Diliman, Quezon
City
Joint Legislative Executive Council

199 Legislative Executive Advisory Council Ground Floor, NEDA Sa Pasig Building, Escriva
Drive, Pasig City
Metro Manila Development Authority

200 Metro Manila Development Authority MMDA Building, EDSA corner Orense St.,
Guadalupe Nuevo, Makati City
Autonomous Region in Muslim Mindanao

201 Office of the Regional Governor Proper ARMM Compound, Gov. Gutierrez St. Cotabato City,
9600
202 Regional Legislative Assembly ARMM Complex, Gov. Gutierrez Street, Cotabato
City
161
State Universities and Colleges
203 Eulogio "Amang " Rodriguez Institute of Nagtahan St., Sampaloc, Manila
Science & Technology
204 Marikina Polytechnic College Mayor Juan Chanyungco St., Sta. Elena, Marikina
City
205 Philippine Normal University Taft Avenue, Manila
206 Philippine State College of Aeronautics Villamor Air Base, Pasay City
207 Polytechnic University of the Philippines Sta. Mesa, Manila
208 Rizal Technological University Boni Avenue, Mandaluyong City
209 Technological University of the Ayala Boulevard, Ermita, Manila
Philippines
210 University of the Philippines System Diliman, Quezon City, 1101
211 Don Mariano Marcos Memorial State La Union
University
212 Ilocos Sur Polytechnic State College Municipality of Sta. Maria, Ilocos Sur
213 North Luzon Philippine State College San Nicolas, Candon City, Ilocos Sur
214 Mariano Marcos State University City of Batac, Ilocos Norte
215 Pangasinan State University Municipality of Lingayen, Pangasinan
216 University of Northern Philippines Vigan City, Ilocos Sur
217 Batanes State College Basco, Batanes
218 Cagayan State University Tuguegarao City, Cagayan
219 Isabela State University Echague, Isabela
220 Nueva Vizcaya State University Echague, Isabela; Bayombong, Nueva Vizcaya
221 Quirino State College Diffun, Quirino
222 Aurora State College of Technology Sitio Dicaloyungan, Brgy. Zabali, Baler, Aurora
223 Bataan Peninsula State University Balanga City, Bataan
224 Bulacan Agricultural State College San Ildefonso, Bulacan
225 Bulacan State University Manila North Road, Brgy. Guinhawa, Malolos City,
Bulacan
226 Central Luzon State University Science City of Muñoz, Nueva Ecija
227 Don Honorio Ventura Technological Bacolor, Pampanga
State University
228 Nueva Ecija University of Science and Gen. Tinio Street, Cabanatuan City
Technology
229 Pampanga State Agricultural College Magalang, Pampanga
230 Philippine Merchant Marine Academy Brgy. San Nicolas, San Narciso, Zambales
231 Ramon Magsaysay Technological Iba, Zambales
University
232 Tarlac College of Agriculture Camiling, Tarlac
233 Tarlac State University Tarlac City
234 Batangas State University Rizal Avenue Extension, Batangas
235 Cavite State University Indang, Cavite
236 Laguna State Polytechnic University Sta. Cruz, Laguna
237 Southern Luzon State University Lucban, Quezon
238 University of Rizal System Morong, Rizal
239 Marinduque State College Tanza, Boac, Marinduque
240 Mindoro State University Victoria, Oriental Mindoro
241 Occidental Mindoro State College San Jose, Occidental Mindoro
242 Palawan State University Puerto Princesa City, Palawan
162
243 Romblon State University Odiongan, Romblon
244 Western Philippines University Aborlon, Palawan
245 Bicol State College of Applied Sciences Penafrancia Ave, Naga, Camarines Sur
and Technology
246 Bicol University Legazpi City
247 Camarines Norte State College Daet, Camarines Norte
248 Camarines Sur Polytechnic Colleges Nabua, Camarines Sur
249 Catanduanes State University Virac, Catanduanes
250 Central Bicol State University of Pili, Camarines Sur
Agriculture
251 Dr. Emilio B. Espinosa Sr. Memorial Mandaon, Masbate
State College of Agriculture and
Technology
252 Partido State College Goa, Camarines Sur
253 Sorsogon State College Sorsogon City
254 Aklan State University Banga, Aklan
255 Capiz State University Roxas City, Capiz
256 Carlos C. Hilado Memorial State College Talisay City, Negros Occidental
257 Guimaras State College Buenvista, Guimaras
258 Iloilo State University of Science and Barotac Nuevo, Iloilo
Technology
259 Central Philippines State University Kabankalan City, Negros Occidental
260 Northern Iloilo State University Estancia, Iloilo
261 Northern Negros State College of Sagay City, Negros Occidental
Science and Technology
262 University of Antique Santiago Lotilla Street, Sibalom, Antique
263 Iloilo Science and Technology Burgos St., La Paz, Iloilo City
University
264 West Visayas State University Luna St., La Paz, Iloilo City
265 Bohol Island State University Carlos P. Garcia North Ave., Tagbiliran City
266 Cebu Normal University Osmeña Boulevard, Cebu City
267 Cebu Technological University Cor. M.J. Cuenco Ave. and R. Palma St., Cebu City
268 Negros Oriental State University Kagawasan Avenue, Dumaguete City
269 Siquijor State College Larena, Siquijor
270 Eastern Samar State University Borongan, Eastern Samar
271 Eastern Visayas State University Aquino Avenue, Tacloban City, Leyte
272 Leyte Normal University Tacloban City, Leyte
273 Naval State University Naval, Biliran
274 Northwest Samar State University Calbayog City, Samar
275 Palompon Polytechnic State University Evangelista St., Palompon, Leyte
276 Samar State University Catbalogan, Samar
277 Southern Leyte State University Sogod, Southern Leyte
278 University of Eastern Philippines University Town, Catarman, Northern Samar
279 Visayas State University Visca, Baybay City, Leyte
280 J. H. Cerilles State College San Miguel, Zamboanga del Sur
281 Jose Rizal Memorial State University Dapitan City, Zamboanga del Norte
282 Western Mindanao State University Normal Road, San Jose, Zamboanga City
283 Zamboanga City State Polytechnic Zamboanga City
College
163
284 Zamboanga State College of Marine Fort Pilar, Zamboanga City
285 Bukidnon State University Fortich Street, Malaybalay City, Bukidnon
286 Camiguin Polytechnic State College Balbagon, Mambajao, Camiguin
287 Central Mindanao University Musuan, Bukidnon
288 Mindanao University of Science and Claro M. Recto Avenue, Lapasan, Cagayan de Oro
Technology City
289 MSU - Iligan Institute of Technology Andres Bonifacio Avenue, Tibanga, 9200 Iligan City
290 Misamis Oriental State College of Claveria, Misamis Oriental
Agriculture and Technology
291 Northwestern Mindanao State College Labuyo, Tangub City
292 Compostela Valley State College 8801, Montevista, Compostela Valley
293 Davao del Norte State College New Visayas, Panabo City, Davao del Norte
294 Davao Oriental State College of Science Mati, Davao Oriental
and Technology
295 Southern Philippines Agri-Business and Malita, Davao del Sur
Marine Aquatic School of
Technology
296 University of Southeastern Philippines Iñigo St., Obrero, Davao City
297 Cotabato State University Sinsuat Avenue, Maguindanao, Cotabato City
298 Cotabato Foundation College of Science Doroluman, Arakan, Cotabato
and Technology
299 Sultan Kudarat State University acurong City
300 University of Southern Mindanao Kabacan, North Cotabato
301 Agusan del Sur State College of Bunawan, Agusan del Sur
Agriculture and Technology
302 Caraga State University Ampayon, Butuan City
303 Surigao del Sur State University Tandag, Surigao del Sur
304 Surigao State College of Technology Surigao City
305 Adiong Memorial Polytechnic State Dit-saan Ramain, Lanao del Sur
College
306 Basilan State College Isabela City, Basilan
307 Mindanao State University Marawi City
308 MSU - Tawi-Tawi College of Sanga-Sanga, Bongao, Tawi-Tawi
Technology and Oceanography
309 Sulu State College Jolo, Sulu
310 Tawi-Tawi Regional Agricultural Bongao, Tawi-Tawi
College
311 Abra State Institute of Science and Lagangilang, Abra
Technology
312 Apayao State College Malama, Conner, Apayao
313 Benguet State University La Trinidad, Benguet
314 Ifugao State University Lamut, Ifugao
315 Kalinga State University Tabuk, Kalinga
316 Mountain Province State University Poblacion, Bontoc, Mountain Province
164
VI. NATIONAL
GOVERNMENT DEBT
NATIONAL GOVERNMENT DEBT
6.1 FOREWORD
The National Government (NG) debt consists of indebtedness due to issuance of

treasury securities, amount of loans directly contracted and those contracted and relent to
Government-Owned and/or Controlled Corporations. When national revenue is
insufficient to back up the government's capital programs and projects, government
borrowing is resorted to as one of the means of financing government operations and to
stabilize the economy.
The long-term strategy adopted by the NG was focused on reducing the foreign
currency denominated debt, meeting the government’s financing requirement at minimal
cost consistent with an acceptable level of risk and further supporting the development of
the domestic capital and market.
The debt strategy was pursued through reducing foreign exchange risk exposure by
increasing domestic borrowing and reducing foreign currency denominated debt within
the portfolio; supporting the development of domestic capital and securities market;
mitigating the refinancing or roll-over risk by lengthening the maturity of NG debt
through bond exchange; and buyback expensive bonds to reduce annual interest service
flows and effect more efficient benchmarks for Philippine borrowers. For CY 2015, the
government has planned to source 75 percent of its funding needs from domestic sources
and 25 percent from foreign lenders, however, the actual financing mix was 31:69 in favor
of domestic sources.
The NG intends to maintain its preference for domestic funding to reduce further the
foreign currency component of debt stock, weakening the impact of exchange rate
volatility and debt service flows and valuation. Domestic bias is supportive of the NG’s
long-term objective of developing a deeper and more liquid market for local debt
securities, making future fund raising efforts cheaper for the government and more
accessible to the corporate sector.
6.2 NG OUTSTANDING DEBTS
From the outstanding balance of P5.730 trillion as reported in the CY 2014 Analysis
of Loans and Bonds Payable submitted by the NGDAD, BTr, the balance, which formed
part of the beginning balance of CY 2015 was adjusted to P5.731 trillion due to
transactions for CY 2014 which were not included in the outstanding balance at the end
of the year. Presented below is the adjusted balance of outstanding NG debt as of
December 31, 2014.
165
Table VI-1 Adjusted Outstanding Balance of NG Debt
CY 2014
(in million pesos)
Adjusted
Balance as of
Particulars Adjustments Balance as of
12/31/14
12/31/14
Domestic 3,815,813.58 - 3,815,813.58
Bonds Payable 3,533,615.27 - 3,533,615.27
Loans Payable 282,198.31 - 282,198.31
Foreign 1,914,287.89 595.53 1,914,883.42

Bonds Payable 1,231,995.92 - 1,231,995.92
Loans Payable 682,291.97 595.53 682,887.50
Total NG Debt 5,730,101.47 595.53 5,730,697.00
Difference between totals and sum of components is due to rounding off

Source: National Government Debt Accounting Division, BTr
The nature of the adjustments totaling P595.53 million is summarized as follows:

understatement in recording Cash Availments (ADB) – P396.41 million and
understatement of Non-Cash Availments (IBRD, EXIMBANK OF KOREA, KFW and
FRENCH PROTOCOL) – P199.11 million.
This year’s outstanding balance of NG Debt of P5.946 trillion is composed of

Domestic borrowings – P3.878 trillion and Foreign borrowings – P2.068 trillion,
representing 65.21 percent and 34.79 percent, respectively. Domestic borrowings
increased by P61.80 billion or 1.62 percent compared to the 2014 amount of P3.816
trillion brought about by the bond exchanged transaction by replacing old debt securities
with issuance of new debt securities bearing lower coupon and longer maturity date which
extends up to 25 years. Foreign borrowings increased by P153.45 billion or 8.01 percent
over the previous year’s P1.915 trillion brought by the increased in availments and
revaluation of outstanding foreign debts at year end. Table VI-2 shows the details of
Comparative Outstanding Balance of NG Debt for CYs 2015 and 2014.
Table VI-2 Comparative Outstanding Balance of NG Debt

(in million pesos)
Increase
Particulars 2015 2014 Percent
(Decrease)
Domestic 3,877,610.04 3,815,813.58 61,796.46 1.62
Bonds Payable 3,612,714.73 3,533,615.27 79,099.46 2.24
Fixed Rate Treasury Bonds 1,818,526.49 1,825,122.33 (6,595.83) (0.36)
Bench Mark Bonds 948,050.07 823,918.89 124,131.18 15.07
Retail Treasury Bonds 773,744.10 804,880.95 (31,136.85) (3.87)
Treasury Bonds 50,000.00 50,000.00 - -
166
(Table VI-2, Continued)
Increase
(Decrease)
On Shore 10-year Bonds 22,370.00 22,370.00 (1,000.00) (4.28)
Multi Currency Retail
Treasury Bonds - 6,299.02 (6,299.02) (100.00)
Certificated Bonds 15.55 15.55 - -
Domestic Certificated/
Uncertificated Treasury 8.52 8.54 (0.02) (0.23)
Bonds
Loans Payable 264,895.31 282,198.31 (17,703.00) (6.13)

CB-BOL 174,568.30 174,568.30 - -
Regular 90,327.01 107,630.01 (17,303.00) (16.08)
Foreign 2,068,328.54 1,914,883.42 153,445.12 8.01

Bonds Payable 1,301,606.57 1,231,995.92 69,610.65 5.65
Global Bonds 1,236,847.59 1,168,004.29 68,843.29 5.89
Japanese Bonds 39,169.19 37,138.67 2,030.52 5.47
EURO Bonds 25,589.79 26,852.95 (1,263.16) (4.70)
Loans Payable 766,721.97 682,887.50 83,834.47 12.28

NG Direct/Relent 766,721.97 682,887.50 83,834.47 12.28
Total 5,945,938.58 5,730,697.00 215,241.58 3.76

6.3 DOMESTIC BORROWINGS
The amount of P1.139 trillion was availed during the year through bond flotation in
the amount of P501.04 billion and issuance of treasury bills of P638.19 billion. The bonds
consist of Bench Mark Bonds – P265.71 billion, Fixed Rate Treasury Bonds – P231.53
billion, Agrarian Reform Bonds – P3.81 billion and Domestic Certificated/Uncertificated
Treasury Bonds – P0.02 million. Treasury Bills rolled-over amounting to P429.57 billion
was intended for the payment of interest on the debts of CB-BOL assumed by the NG.
Domestic borrowings increased by P89.72 billion or 8.55 percent from last year’s level
of P1.050 trillion. Table VI-3 shows the details of the Comparative Domestic Debt
Availments/Issuances.
Table VI- 3 Comparative Domestic Debt Availments/Issuances

(in million pesos)
Increase
(Decrease)
Bonds Payable 501,044.34 430,235.42 70,808.92 16.46
Bench Mark Bonds 265,708.73 482.20 265,226.53 5,5003.43
Fixed Rate Treasury Bonds 231,527.36 426,532.75 (195,005.39) (45.72)
167
Increase
(Decrease)
Agrarian Reform Bonds 3,808.24 3,220.48 587.77 18.25
Uncertificated Treasury Bonds 0.02 - 0.02 100.00
Loans Payable 638,185.30 619,273.30 18,912.00 3.05

CB-BOL 429,568.30 434,568.30 (5,000.00) (1.15)
Regular 208,617.00 184,705 23,912.00 12.95
Total 1,139,229.64 1,049,508.72 89,720.92 8.55

Repayments of domestic borrowings reached P1.077 trillion, registering an increase

of P121.23 billion or 12.68 percent from last year’s level of P956.20 billion. Bonds
redeemed in the amount of P421.94 billion has increased by P124.19 billion or 41.71
percent while loan repayments of P655.49 billion has decreased by P2.96 billion. Table
VI-4 shows the details of Comparative Domestic Debt Repayments/Redemptions.
Table VI- 4 Comparative Domestic Debt Repayments/Redemptions

(in million pesos)
Increase
(Decrease)
Bonds Payable 421,944.89 297,751.99 124,192.90 41.71
Fixed Rate Treasury Bonds 238,123.19 228,545.36 9,577.84 4.19
Bench Mark Bonds 141,577.55 10,696.94 130,880.61 1,223.53
Retail Treasury Bonds 31,136.85 55,288.22 (24,151.37) (43.68)
Multi Currency Retail
Treasury Bonds 6,299.02 - 6,299.02 100.00
Agrarian Reform Bonds 3,808.24 3,220.48 587.77 18.25
On Shore 10-year Bonds 1,000.00 - 1,000.00 100.00
Uncertificated Treasury Bonds 0.04 1.00 (0.96) (96.49)
Special Purpose Treasury
Bonds - 7,000.00 (7,000.00) (100.00)
Loans Payable 655,488.30 658,451.33 (2,963.03) (0.45)

CB-BOL 429,568.30 434,568.30 (5,000.00) (1.15)
Regular 225,920.00 223,883.03 2,036.97 0.91
Total 1,077,433.19 956,203.32 121,229.86 12.68

168
6.4 FOREIGN BORROWINGS
Outstanding foreign borrowings at the end of 2015 amounted to P2.068 trillion

increased by P153.45 billion compared to the previous year’s adjusted balance of P1.915
trillion. It consists of loans contracted with foreign countries amounting to P766.72 billion
and bonds issuances totalling P1.302 trillion. These loans represent the direct loans
contracted by the NG and those relent to the Government-Owned and/or Controlled
Corporations (GOCCs). The bonds consist of Global Bonds - P1.237 trillion, Japanese
Yen Bonds – P39.17 billion and Euro Bonds – P29.59 billion.
Aggregate availments for the current year totalled P190.21 billion which is P48.07
billion or 35.45 percent higher than the amount of P142.14 billion in CY 2014. The
increase was due to availments and revaluation of outstanding foreign debts at year end.
Table VI-5 shows the Comparative Forign Debt Availments.
Table VI- 5 Comparative Foreign Debt Availments

(in million pesos)
Increase
(Decrease)
Bonds Payable 89,362.00 67,683.00 21,679.00 32.03
Global Bonds 89,362.00 67,683.00 21,679.00 32.03
Loans Payable 100,852.53 74,456.66 26,395.87 35.45

Direct/Relent Loans 100,852.53 74,456.66 26,395.87 35.45
Total 190,214.53 142,139.66 48,074.87 35.45

The direct and relent loans contracted by the NG from external creditors include cash
availments of P95.29 billion while the amount of P5.57 billion was constructive
availments in the form of equipment and technical assistance . The bulk of availments of
P99.79 billion representing 98.94 percent of direct and relent loans were provided by the
following creditors: ADB – P42.58 billion; IBRD – P40.09 billion; JICA – P17.12 billion.
Presented in Table VI-6 is the Foreign Debt Availments by type of loans and creditors.
169
Table VI- 6 Foreign Debt Availments
(in million pesos)
Perce
Particulars Amount nt to
Total
Global Bonds 89,362.00 46.98
Direct/Relent Loans 100,852.53 53.02

Cash Availments 95,285.77 50.09
Asian Development Bank 42,143.43 22.16
International Bank for Reconstruction and Development 39,990.17 21.02
Japan International Cooperation Agency 12,711.90 6.68
International Fund for Agricultural Development 301.62 0.16
Organization of the Petroleum Exporting Countries 116.59 0.06
Kreditanstault fur Wiederaufbau 22.06 0.01
Constructive Availments 5,566.77 2.93

Japan International Cooperation Agency 4,408.30 2.32
Eximbank of Korea 613.99 0.32
Asian Development Bank 432.26 0.23
International Bank for Reconstruction and Development 100.69 0.05
Kreditanstault fur Wiederaufbau 11.53 0.01
Total 190,214.53 100.00

Foreign loans amortizations paid during 2015 amounted to P132.42 billion. It was
intended for loans repayments of P56.21 billion and bonds redemption of P76.21 billion.
Loans repayments increased this year by P4.28 billion while redemption of bonds
decreased by P5.16 billion. Table VI-7 shows the detail of Comparative Foreign Debt
Repayments.
Table VI-7 Comparative Foreign Debt Repayments

(in million pesos)
Increase
(Decrease)
Bonds Payable 76,214.37 81,378.89 (5,164.52) (6.35)
Global Bonds 76,214.37 81,378.89 (5,164.52) (6.35)
Loans Payable 56,207.21 51,927.96 4,279.24 8.24
Direct/Relent Loans 56,207.21 51,927.96 4,279.24 8.24
Total 132,421.58 133,306.86 (885.28) (0.66)

170
6.5 ACTUAL DEBT SERVICE EXPENDITURES
Actual amount of debt service during the year totalled P1.532 trillion consisting of
Principal – P1.210 trillion, Interest – 317.04 billion and Financial Charges – P5.36 billion.
Compared to last year’s amount of P1.421 trillion, this year’s actual debt service is higher
by P111.62 billion or 7.86 percent. Payments for principal increased by P113.34 billion
or 10.34 percent. On the other hand, payment for interest and financial charges both
decreased by P1.52 billion and P213.92 million, respectively. Presented in table VI-8 is
the details of the Comparative Actual Debt Service of the NG.
Table VI – 8 Comparative Actual Debt Service of the National Government

(in million pesos)
Increase
(Decrease)
Interest Payments 317,039.20 318,554.84 (1,515.64) (0.48)
Foreign 96,254.85 98,466.34 (2,211.49) (2.25)
Global Bonds 86,553.93 87,770.59 (1,216.66) (1.39)
Direct/Relent 9,700.93 10,695.75 (994.82) (9.30)
Domestic 220,784.35 220,088.50 695.84 0.32
Bonds 219,013.98 218,497.02 516.96 0.24
T-Bills, Notes 1,770.36 1,591.48 178.88 11.24
Principal Payments 1,209,854.76 1,096,510.18 113,344.58 10.34

Foreign 132,421.58 133,306.86 (885.28) (0.66)
Global Bonds 76,214.37 81,378.89 (5,164.52) (6.35)
Direct/Relent 56,207.21 51,927.96 4,279.24 8.24
Domestic 1,077,433.19 963,203.32 114,229.86 11.86
Bonds 421,944.89 304,751.99 117,192.90 38.46
T-Bills, Notes 655,488.30 658,451.33 (2,963.03) (0.45)
Financial Charges 5,364.30 5,578.22 (213.92) (3.83)

Foreign 1,602.50 2,208.10 (605.60) (27.43)
Commitment Fees 151.75 190.32 (38.57) (20.27)
Documentary Stamp Tax 446.81 338.42 108.40 32.02
Other Financial Charges 259.23 530.63 (271.41) (51.15)
Loss on Guaranty 739.36 1,070.00 (330.64) (30.90)
Bank Charges 5.35 78.73 (73.38) (93.20)
Domestic 3,761.80 3,370.12 391.68 11.62
Documentary Stamp Tax 3,662.50 3,313.96 348.68 10.52
Other Financial Charges 99.31 56.16 43.15 76.84
Grand Total 1,532,258.27 1,420,643.24 111,615.02 7.86

171
The loss on guaranty pertains to Foreign Exchange risk cover claims for NG
guaranteed obligations of GFIs such as LBP, DBP and SBGFC.
Commitment Fees of P151.75 million which decreased by P38.57 million from last
year’s figure of P190.32 million was incurred by the department/agency as shown in Table
VI-9.
Table VI- 9 Commitment Fees by Department/Agency

(in million pesos)
Percent
Department/Agency Amount to
Total
Department of Public Works and Highways 33.49 22.07
Department of Transportation and Communications 23.53 15.51
Department of Energy 20.59 13.57
Department of Finance 20.25 13.34
Department of Social Welfare and Development 20.06 13.22
National Economic and Development Authority 15.68 10.33
Department of Agriculture 6.99 4.61
Department of Agrarian Reform 5.05 3.33
Department of Environment and Natural Resources 3.76 2.48
National Irrigation Administration 2.15 1.42
Department of Health 0.19 0.12
Total 151.75 100.00

Presented in Table VI-10 are the SAROs released by the DBM to cover the debt
service expenditures and the actual debt service expenditures reflected in the books of
accounts of the BTr.
Table VI- 10 Releases from DBM and Actual Debt Service Expenditures
Amount (in million pesos)
DBM
Particulars Explanations
SARO BTr FS Difference
Releases
Principal Payment 390,386.00 1,209,854.76 (819,468.76) The amount of releases
Domestic 1,077,433.19 were intended for
Foreign 132,421.58 repayments of foreign and
domestic debt. The
difference of P819.47
billion pertains to
repayments for relent loans
that were not included by
the BTr in the request for
SARO releases from the
172
Amount (in million pesos)
Particulars DBM
SARO BTr FS Difference Explanations
Releases
DBM because these were
considered receivable of
the NG from GOCCs and
payment are expected for
the amount advanced.
Also, part of the
repayments / redemptions
of government securities
came from the Sinking
Fund.
Total Interest and The difference pertains to

372,863.00 318,294.20 32,171.32
Other Charges the unobligated balance of
allotments.
Interest 372,863.00 317,039.20
Bank Charges 5.35
Other Financial 358.53
Charges
Commitment Fees 151.75
Loss on Guaranty 739.36
Documentary Stamp Tax 4,109.31 4,109.31 -
Total 767,358.31 1,532,258.27 (764,899.96) Net Difference
6.6 STATUS OF NG DEBT AS OF DECEMBER 31, 2015
Over the ten-year period, the country’s NG debt has continuously increased except in
CY 2007 which showed a decrease of P99.39 billion. The highest growth of P 490.06
billion or 9.91 percent was in CY 2012. Table VI-11 shows the Outstanding Balance of
NG Debt.
Table VI- 11 Outstanding Balances of NG Debt
CY 2006 – CY 2015 (in billion pesos)
Increase
Year Domestic Foreign Total Percent
(Decrease)
2015 3,877.61 2,068.33 5,945.94 215.24 3.76
2014 3,815.81 1,914.89 5,730.70 60.10 1.06
2013 3,728.33 1,942.28 5,670.61 237.66 4.37
2012 3,460.82 1,972.13 5,432.95 490.06 9.91
2011 2,860.60 2,082.29 4,942.89 241.75 5.14
2010 2,704.42 1,996.72 4,701.14 353.06 8.12
2009 2,480.83 1,867.25 4,348.08 210.08 5.08
2008 2,440.90 1,697.10 4,138.00 356.52 9.43
2007 2,218.82 1,562.66 3,781.48 (99.39) (2.56)
2006 2,172.73 1,708.14 3,880.87
173
During the year, additional borrowings amounted to P1.329 trillion comprised of
P1.139 trillion for domestic debt and P190.21 billion for foreign debt. Total repayments
made amounted to P1.210 trillion, resulting to a net increase of P119.59 billion. However,
looking closely, payments on amortization did not actually reduce the NG debt of the
country, considering that the total availments exceeded total repayments by P119.59
billion.
From the adjusted outstanding balance of P5.731 trillion as of December 31, 2014,
NG debt rose to P5.946 trillion as of December 31, 2015, posting an increase of P215.24
Chart VI-1 shows the NG Debt increase by source, from CY 2006 to 2015.
Contingent liabilities arising from sovereign guaranty extended by the NG to the

GOCCs for obtaining foreign loans amounted to P299.52 billion as reported by the BTr.
This amount is not included in the outstanding balance of NG debt but merely disclosed
in the Notes to FS. The GOCCs with loans guaranteed by NG are shown in Table VI- 12.
Table VI - 12 Contingent Liabilities

(in million pesos)
Percent
Particulars Amount
to Total
PSALM 171,656.33 57.31
DBP 53,876.43 17.99
LBP 20,957.54 7.00
BCDA 19,420.97 6.48
MWSS 7,494.73 2.50
SBMA 5,375.41 1.79
LRTA 4,231.30 1.41
PPA 3,994.26 1.33
LWUA 3,712.03 1.24
NORTHRAIL 2,948.09 0.98
PNR 1,670.63 0.56
SBGFC 1,632.12 0.54
NPC 1,206.15 0.40
PTA 684.27 0.23
174
Percent
Particulars Amount
to Total
PDA 258.14 0.09
PEZA 151.53 0.05
NFA 117.54 0.04
MIAA 58.93 0.02
PHILGUARANTEE 37.21 0.01
NEA 36.84 0.01
TOTAL 299,520.43 100.00

The Contingent Liabilities of the NG under the Build-Operate-Transfer projects are

not included in this Report.
175
VII. SIGNIFICANT AND
COMMON AUDIT
OBSERVATIONS AND
RECOMMENDATIONS
SIGNIFICANT AND COMMON AUDIT OBSERVATIONS
AND RECOMMENDATIONS
9.1 Overview
Pursuant to Section 2, Article IX-D of the Philippine Constitution, the

Commission on Audit regularly conducts audit of accounts of all National Government
Agencies (NGAs). The audit is conducted in accordance with the generally accepted
state auditing standards, with audit results discussed with concerned Agency officials
and incorporated in the Annual Audit Reports (AARs) and Management Letters (MLs).
The AAR and/or ML is transmitted to the concerned agency head, with the Office of
the President, the Congress, Oversight Agencies and other stakeholders furnished a
copy thereof.
9.2 Audit Opinions
The AAR sets forth the audit opinion on the entity’s financial statements (FSs).
Under ISA 705, the auditor shall modify the opinion in the auditor’s report when: (a)
the auditor concludes that, based on the audit evidence obtained, the FSs as a whole are
not free from material misstatement; or (b) the auditor is unable to obtain sufficient
appropriate audit evidence to conclude that the FSs as a whole are free from material
misstatement. Pervasive effects on the FSs are those that, in the auditor’s judgment:
(a) are not confined to specific elements, accounts or items of the financial statements;
(b) if so confined, represent or could represent a substantial proportion of the financial
statements; or (c) in relation to disclosures, are fundamental to users’ understanding of
the FSs.
The audit opinions are classified below depending on the results of the audit:
9.2.1. Unqualified Opinion - Issued when financial statements present fairly, in all
material respects, the entity’s financial position, results of operations and
cash flows in conformity with the Philippine Public Sector Accounting
Standards (PPSAS).
9.2.2. Qualified Opinion – Issued when: (a) the auditor, having obtained sufficient
appropriate audit evidence, concludes that misstatements, individually or in the
aggregate, are material, but not pervasive, to the financial statements; or (b) the
auditor is unable to obtain sufficient appropriate audit evidence on which to base
the opinion, but the auditor concludes that the possible effects on the FSs of
undetected misstatements, if any, could be material but not pervasive.
9.2.3 Adverse Opinion - Issued when the auditor, having obtained sufficient
appropriate audit evidence, concludes that misstatements, individually or in the
aggregate, are both material and pervasive to the FSs.
9.2.4 Disclaimer of Opinion - Issued when the auditor is unable to obtain sufficient
appropriate audit evidence on which to base the opinion, and the auditor
concludes that the possible effects on the FSs of undetected misstatements, if
any, could be both material and pervasive or in extremely rare circumstances
involving multiple uncertainties, the auditor concludes that, notwithstanding
176
having obtained sufficient appropriate audit evidence regarding each of the
individual uncertainties, it is not possible to form an opinion on the FSs due to
the potential interaction of the uncertainties and their possible cumulative effect
on the FSs.
9.3 Results of Audit
The audit opinions issued on CY 2015 FSs and operations of 255 NGAs,
and State Universities and Colleges (SUCs) and Stand –Alone Agencies are
Type of Opinion No. of NGAs No. of SUCs Total %

Unqualified 30 11 41 16
Qualified 111 84 195 76
Adverse 14 4 18 7
Disclaimer 0 1 1 1
Total Opinions Issued 155 100 255 100
The Audit Teams issued Management Letters (MLs) to 26 agencies which

failed to submit on time their FSs for audit as required under Section IV.B.3 of COA
Memorandum No. 2014-011 dated 21 October 2014. The corresponding AAR shall be
issued by the concerned Auditors for Agencies that were able to submit their FSs not
later than June 30, 2016. For agencies that will not be able to submit the FSs on the
said date, the issued ML will be considered in lieu of the AAR and will be posted in
the COA website.
The 41 agencies issued with unqualified or clean audit opinion are

the following:
1. Climate Change Commission (CCC)

2. Governance Commission for Government-Owned and Controlled
Corporations (GCGOCCs)
3. Presidential Commission on Urban Poor (PCUP)
4. Presidential Legislative Liaison Office (PLLO)
5. Presidential Management Staff (PMS)
6. Movie and Television Review and Classification Board (MTRCB)
7. Optical Media Board (OMB)
8. National Intelligence Coordinating Agency (NICA)
9. Housing and Land Use Regulatory Board (HLURB)
10. Government Procurement Policy Board-Technical Support Office
(GPPB-TSO)
11. House of Representatives (HOR)
12. HOR Electoral Tribunal (HOR-ET)
13. National Tax Research Center (NTRC)
14. Philippine National Volunteer Service Coordinating Agency (PNVSA)
15. Public-Private Partnership Center of the Philippines (PPPCP)
16. Senate Electoral Tribunal (Senate-ET)
17. Court of Tax Appeals (CTA)
18. National Book Development Board (NBDB)
19. Institute of Labor Studies (ILS)
20. Inter-Country Adoption Board (ICAB)
177
21. National Youth Commission (NYC)
22. Juvenile Justice and Welfare Council (JJWC)
23. Food and Nutrition Research Institute (FNRI)
24. Industrial Technology Development Institute (ITDI)
25. National Academy of Science and Technology (NAST)
26. Philippine Textile Research Institute (PTRI)
27. Technology Application Promotion Institute (TAPI)
28. Civil Aeronautics Board (CAB)
29. Toll Regulatory Board (TRB)
30. Intellectual Property Office of the Philippines (IPOPHIL)
31. North Luzon Philippine State College (NLPSC)
32. Mariano Marcos State University (MMSU)
33. University of Southern Mindanao (USM)
34. Cotabato Foundation College of Science and Technology
35. Mindanao State University (MSU) – General Santos
36. Forest Products Research and Development Institute (FPRDI)
37. Bulacan Agricultural State College (BASC)
38. Don Honorio Ventura Technological State University
39. Pampanga State Agricultural University
40. Tarlac State University
41. Philippine Center for Postharvest Development and Mechanization
On the other hand, the agencies issued with adverse opinion, due primarily,
among others, to unreliable Cash/Loans Payable/Land account balances, unrecorded
collections from PCSO-STL, understated acquired assets/NG share from PAGCOR’s
income/remittances, unliquidated cash advances or fund transfers, dormant account
balances, unreliable Land Account balance, and undisposed unserviceable assets
follow:
1. Technical Cooperation Council of the Philippines (TCCP)

2. Bureau of the Treasury (BTr)-NG
3. Philippine National Police (PNP)
4. Philippine Veterans Affairs Office (PVAO)
5. Armed Forces of the Philippines – General Headquarters (AFP-GHQ)
6. Philippine Army (PA)
7. Philippine Air Force (PAF)
8. Philippine Navy (PN)
9. Department of Justice (DOJ)
10. Bureau of Immigration (BI)
11. National Bureau of Investigation (NBI)
12. Department of Public Works and Highways (DPWH)
13. Department of Tourism (DOT)
14. Department of Agrarian Reform (DAR)
15. Bicol University (BU)
16. Leyte Normal University (LNU)
17. Palompon State University (PSU)
18. Eastern Samar State University (ESSU)
A disclaimer audit opinion was issued on the FSs of Central Bicol State
University of Agriculture (CBSUA) due to failure to submit 364 disbursement
178
vouchers and supporting documents in aggregate amount of PhP17.73 million,
doubtful cash balances amounting to PhP145.427 million because of non-preparation
of monthly bank reconciliation statements, unreliable Inventory and PPE account
balances amounting to PhP 64.41M and PhP362.293 million, respectively, on account
of the absence of or incomplete physical inventory taking, unreconciled accounting
and supply records or absence of reconciliation between the records of Accounting and
Property Sections, and accumulation of unliquidated cash advances because of
Management’s failure to strictly enforce existing rules and regulations on the grant,
utilization and liquidation of cash advances, among others.
179
9.4 Significant Audit Observations and Recommendations
The significant audit observations and recommendations on the audits of NGAs,

submitted by auditors of the National Government Sector (NGS) and Regional Offices
(ROs) of this Commission, are presented below:
9.4.1 Generation of revenues by a number of NGAs was not pursued.

Significant amount of duties and taxes for released goods, national
government share and service fees, and rentals for the use of government
facilities, among others, remained uncollected. This was compounded by
failure of BOC to meet its collection targets and dispose
seized/forfeited/abandoned articles which may eventually result to loss on
account of theft, pilferage or deterioration.
a) Uncollected payments/income/refunds from various lessees/

proponents/ operators amounting to PhP6,028.55 million on account
of non-implementation of the terms and conditions of the loan/lease/
contracts/agreement, and non-collection/ undercollection of fees and
charges, among others, deprived the government of additional funds.
Amount
Agency Reason
(in M PhP)
BOC 4,619.56 Unsettled/incomplete payments of duties and taxes based on
audit of Single Administrative Documents (SAD) from e2m
Customs Import Assessment System (e2m customs system)
with imported articles released from the jurisdiction of the
Bureau of Customs (BOC)
UPS 6.39 Undercollection of rental income and interest/penalties for
late payments from the University’s Lessees due to failure
to fully enforce the terms and conditions of the Lease
Contracts.
PNU 5.98 Default by PNU Multi-Purpose Cooperative (PMPC) to remit
five percent share of the University from its operational
income for CYs 2014 and 2015
DOST 107.95 Failure of proponents of Small Enterprise Technology
Upgrading Program (SETUP) and Grants-in-Aid (GIA)
Program to settle or to refund their final obligations in due
time in violation of the Contract Agreement
DAR 1.18 Non-collection of space rental from the business
establishments within the DAR compound
ERC 57.03 Unremitted/unrecorded funds equivalent to one percent of
the approved Market Transaction Fees (MTF) of the
Philippine Electricity Market Corporation (PEMC), set aside
for ERC’s monitoring facilities, from CY 2006 to CY 2015
BFP 68.65 Uncollected Service Fees from Lending/Insurance
Institutions
BI 249.95 Uncollected Administrative Fines
POEA 2.06 Uncollected rental fees
CAB 3.19 Uncollected fees and charges
PNP 0.06 Non-imposition of penalty for late or non-payment of rental
OTC 0.03 Non-imposition of reasonable fees for certifications issued
MARINA 7.17 Non-collection of the Annual Tonnage Fee (ATF) from ship
owners/operators
DOTC 2.72 Lost income due to minimal rate of smoke test of motor
vehicles conducted at LTO Region IV-A (Lipa and Alaminos)
of PhP40.00 per motor vehicle as compared to rate charged
by Private Emission Testing Centers (PETC)
180
Amount
Agency Reason
(in M PhP)
IA 1.18 Lost income due to failure to execute new lease/contract
agreements with all tenants/lessees which expired five years
ago
0.68 Uncollected rental fees from the parking concessionaires
NPDC 37.11 Non-settlement of concessionaires’ rentals and penalties for
late payments
BFAR 115.60 Uncollected rental fee on Fishpond Lease Agreements
(FLAs)
DENR 737.72 Uncollected/Unrealized Revenue on foreshore areas,
patrimonial property, government grazing land, and lot
within the BMB protected area
BSU, 0.33 Uncharged fees for services rendered by Veterinary
CAR Medicine Animal Hospital; ununiformed billing for similar
services and invoicing lower fee rates
PMMA, 1.31 Uncollected Tuition fees from SYs 2006 to 2015
R3
BSU, 2.70 Uncollected students accounts/STUFAP-CHED due to
R10 unidentified student borrowers
TOTAL 6,028.55
b) The NG share from the income of the Philippine Amusement and

Gaming Corporation (PAGCOR) from 2011-2014 was deficient by
PhP24.05 billion due to failure of the Bureau of the Treasury-
National Government (BTr-NG) to account and bill PAGCOR of its
underremittances despite the opinion rendered by the COA on the
subject matter in favor of the NG, and failure to require PAGCOR to
submit the certified monthly statements of gross earnings after
franchise tax payable, and the audited year-end financial statements.
c) The actual collection reported by the BOC for CY 2015 amounting

to PhP366.906 billion falls short of its stated collection target in the
GAA for FY 2015 of PhP436.591 billion by PhP69.685 billion or a 16
percent deficit.
d) The Committee on Negotiated Sale of the BOC was not able to

immediately dispose seized/forfeited/abandoned articles amounting
to PhP165.35 million with reported spoiled/missing and unaccounted
articles amounting to PhP10.31 million and PhP0.05 million,
respectively.
9.4.2 The Auditors recommended that concerned agency officials:
a) impose the terms and conditions of the MOA/Lease Contracts; collect

rental payment deficit and corresponding penalty charges for late rental
payments, service fees, Government share in income/fees; and henceforth,
issue demand letters, if needed, copy furnished the COA Office.
b) For BOC:
(1) instruct the concerned District Collectors to collect the PhP4.619

billion unsettled duties and taxes from importers, impose
181
corresponding fines and penalties for the non/delayed payment, and
submit the duplicate copies of Official Receipts (ORs) to COA;
(2) direct the Liquidation and Billing Division (LBD) to issue demand
letters based on the results of post assessments and the
corresponding penalties for non/delayed payment of duties and
taxes. Coordinate with the Administrative Division in ensuring
that concerned importers received the demand letters and regularly
coordinate with Revenue and Accounting Division (RAD) on the
status of every importation with unpaid taxes;
(3) exert extra effort and employ new strategies in order to achieve
its collection target and strictly implement Section 2 of RA No.
9335 which prescribed sanctions to BOC officials and employees
who were not able to achieve their targets, and reward those who
had exceeded their targets;
(4) observe timely disposal of the articles to prevent loss thru theft,
deterioration and/or spoilage, in the case of perishables;
(5) ensure that adequate controls to properly safeguard the articles

from loss thru theft, pilferage and/or deterioration are in place
including provision for a safe warehouse; and
(6) formulate and issue appropriate policy/guidelines that would

require the Customs Collection Districts (CCDs) to regularly
submit a report of the articles referred to the Negotiated Sale
Committee to the Accounting Division for recording and to COA
for audit purposes.
c) For BTr, to bill PAGCOR for the underremittance of PhP24.05 billion

and determine the correctness of the computation of the remitted NG
share and henceforth, to require PAGCOR to submit certified monthly
statements of gross earnings after franchise tax payable and the audited
financial statements not later than April 30 of the succeeding year for
proper computation of the NG share.
9.4.3 Despite availability of allotment/funds, a number of programs/projects

were not fully implemented or its implementation delayed resulting in
additional charges/fees and failure to maximize the benefits due therefrom,
among others.
9.4.3.1 Scholarship/Student Assistance Program/Projects
a) Funds made available or set aside for various scholarship programs

were not fully utilized/availed of due to, among others, lack of clear-
cut/definite policies and guidelines or non-compliance therewith,
deficient selection and monitoring processes, SUCs’ inability to
institute bridging program or failure to discharge its role as co-
implementer, or delayed processing of claims or limiting coverage to
182
pre-selected beneficiaries of Congressmen. The unutilized funds as
of December 31, 2015 amounted to PhP457.74 million.
Amount Projects/
Agency Reasons/Causes
(in M PhP) Programs
PUP, 15.20 Scholarship Unutilized fund transfers from CHED,
NCR projects DOST, and PCSO for scholarship projects
(SPs) due to absence of Memorandum of
Agreement (MOA) between PUP and the
three agencies defining the project timelines
CHED 11.72 HEI-based Unutilized funds in five CHEDROs due to
Loan non-separation of accounting records and
Program non-monitoring, assessment and evaluation
of program implementation and fund
utilization
EARIST, 5.41 Tulong Non-utilization of budget allocated by the
NCR Dunong DBM to the nine Congressmen due to absence
Scholarship of specific guidelines and exclusive
Program application to the pre-selected students of the
(TDSP) Congressmen
20.90 Expanded Unutilized appropriations due to decreased
Students’ number of ESGP-PA scholars from 59 (CY
Grants-in- 2014) to 51 (CY 2015)
Aid
Program for
Poverty
Alleviation
(ESGP-PA)
MPC, 3.40 TDSP Unutilized appropriations due to inadequacy
NCR of CHED’s guidelines and limited coverage
to pre-selected students of the three
Congressmen
1.09 ESGP-PA Inability to meet the 17 scholarship slots due
to deficient selection and monitoring
processes in the implementation of the
Program
RTU, 10.52 Unobligated balance of appropriations due to
NCR failure to reach the 232 targeted scholars and
increasing drop-outs
9.84 TDSP Unutilized funds from CHED for AYs 2014-
2016 due to delayed payment of financial
benefits. Limited to the 1,094 grantees
selected by the Office of the Congressman
PNU, 0.20 TDSP Unutilized funds from CHED for PNU-
NCR Isabela and Visayas due to inadequate
information dissemination of the program and
error in/absence of the master list from
CHEDROs
6.97 Unutilized appropriations allocated by DBM
for 18 members of the House of
Representatives due to absence of clear
written guidelines and limited coverage to the
constituents/selected scholars of the
concerned legislators
7.87 SGP- Unutilized appropriations of which
PA/ESGP- PhP1.95M already lapsed as of December 31,
PA 2015 due to failure to meet the 365
scholarship slots for AY 2015-2016
PUP, 36.68 TDSP Non-utilization of appropriated budget in SY
2015-2016, allocated to 32 members of the
183
Amount Projects/
(in M PhP) Programs
NCR House of Representatives, due to inadequacy
of the guidelines and delayed action by the
participating agencies
45.63 ESGP-PA Unutilized total appropriations due to
decrease in scholars from 49 in CY 2014 to
42 in CY 2015 on account of flaws in the
program’s implementation and failure to
reach the targeted 407 scholars for the SY
2015-2016
TUP, 7.24 TDSP Unutilized appropriated budget for SY 2015-
NCR 2016 due to inadequacy of guidelines and
delayed action by the concerned offices
13.58 ESGP-PA Unutilized appropriated budget for CY 2015
of PhP8M and PhP5.58M continuing
appropriation which already lapsed since
targeted slots of 329 grantees were not met
0.32 TDSP Unutilized allotment due to delays in
PHILSC selection of scholars, confusion on the actual
A, allocation per legislator and absence of
internal guidelines
NCR
0.74 ESGP-PA Unobligated appropriations due to reduction
of number of scholars from 20 to 8 for SY
2014-2015, scholars’ failing grades, late
releases of funds, and SUC’s inability to
institute bridging program
UNP, 0.33 Iskolar ng Unreleased fund for the grantees for CY
R1 Bayan (IB) 2015-2016 by CHED since the requirements
ISPSC, 0.81 submitted by the University to CHED were
R1 not yet acted upon
NLPSC, 0.12 IB Unreleased fund for the grantees for CY
R1 2015-2016 due to failure of the University to
re-submit the List of scholars and the
corresponding billing statement required by
CHED
ISU,R2 1.04 Student Unpaid funds to identified beneficiaries, out
Financial of funds transferred by CHED due to late
Assistance transfer of funds from the Main Campus to
Program other Campuses that are beneficiaries of the
(StuFAPs) funds; also some student-grantees are not
enrolled or have been dropped
BatSU, 0.60 StuFAPs Unavailed 156 scholarship slots due to non-
R4A compliance with CHED Memorandum
resulting in non-availment of 143 slots
brought about by double entitlement while 13
slots were allocated to those not enrolled
during the semester. CHED-StuFAPs is
exclusive only to selected beneficiaries of the
legislators.
NMSCST, 0.30 TDSP Unutilized funds due to delayed/incomplete
R10 program guidelines
SSCT, 92.23 ESGP-PA Funds for CY 2014 to CY 2015 not fully
R13 and TDSP utilized due to operational lapses in program
implementation such as delays in release of
stipends as checks for payment of stipends
were not drawn at year-end; and inefficiency
in processing of payments.
CHED 141.69 StuFAPs Delayed processing of claims/release of
payments in nine CHEDROs due to weak
internal control system in enhancing/
184
Amount Projects/
(in M PhP) Programs
expediting processing of student claims and
inadequacy of required supporting documents
RTU, 13.37 TDSP Implementation of program affected by
NCR coverage limited to the selected constituents/
beneficiaries of ten Congressmen, delays in
the submission of Masterlist by the offices of
the Congressmen and in the release of
financial assistance to the grantees, absence
of clear cut guidelines, and improper use of
the fund for other scholarship programs
RSU, 1.26 ESGP-PA 466 slots allocation not met in 2nd Semester,
R4B AY 2015-2016 with only 445 enrolled due to
failure of the University to address problems
in program implementation
WPU, 3.92 ESGP-PA Stipend/financial benefits of ESGP-PA
R4B grantees from October to December 2015 not
released on time due to late submission of
documentary requirements by the student-
grantees; slow processing of claims/DVs
resulting in lapsing of cash allocations for the
quarter
3.46 ESGP-PA 38 or approximately 28% percent out of the
CBSUA, 136 students/grantees dropped-out during
R5 Academic Years 2012-2013 (2nd sem.) to
2015-2016
PSU, R5 1.30 ESGP-PA 31 students/grantees or 6.7 percent of 463
and TDSP grantees dropped out during Academic Years
2014-2015 resulting in a loss of government
funds
TOTAL 457.74
b) Benefits to be derived from scholarship programs may not be realized

due to failure of IAs to evaluate results or non-termination of
scholarship contracts or grant of benefits to non-validated potential
students or students who did not meet the requirements.
Amount Projects/
(in M PhP) Programs
CHED 6.72 StuFAPs Payment of educational benefits to scholars
with failing grades, not enrolled in priority
courses and other violations of the
scholarships guidelines in two CHEDROs due
to non-compliance with StuFAPs guidelines
TESDA 1,988.41 Training for Effectiveness of the program as to absorption/
Work employment rate of the graduates cannot be
Scholarship ascertained due to failure of TESDA to
Program monitor/measure the factual employment
(TWSP) absorption of the graduate scholars in the
labor industry; non-submission of TWSP
employment reports; and non-conduct of
mandatory assessment among scholars
SEI Not stated SP Only 660 out of 3,173 actual scholars from
CY 2007 to 2013 graduated within the
scholarship period due to study extension
caused mainly by complexities in
thesis/dissertation preparation, equipment
unavailability, climate considerations,
seasonal subjects, pre-requisite courses,
185
Amount Projects/
(in M PhP) Programs
approval of topics and other factors in
program implementation
Not stated Accelerated Non-termination of scholarship contracts of
Science and 163 non-complying scholars, contrary to the
Technology scholarship policy and absence of available
Human data on scholarship benefits to be refunded by
Resource erring scholars for immediate
Development collection/recovery thereof due to inadequate
Program monitoring and evaluation of the ASTHRDP
(ASTHRDP) accomplishments, including the program’s
financial progress/outputs
PSHS 6.44 SPs Scholarship Agreement not strictly enforce to
scholar awardees who did not pursue a
Science &Technology course due to the
absence of complete data/information as basis
for the recording of receivables
ASIST 1.73 ESGP-PA Release of financial benefits to student-
, CAR grantees whose names were not in the DSWD
KASC, 2.05 list of validated potential student-grantees, or
CAR whose courses were not in the priority
MPSP 2.21 programs of CHED. They were normally
C, replacements of students who backed out
CAR from the program.
CSU, 0.14 Scholarship Twenty-four students/grantees claimed two
R2 programs scholarship benefits for the SY 2014-2015 in
violation of CHED Memorandum Order No.
13, series of 2014 due to failure of the
University to verify the lists/payrolls of
beneficiaries provided by CHED and Party
List Representatives
BulSU Not stated StuFAPs Selection of grantees not undertaken by the
, R3 University contrary to Section 4.0 of CHED
BASC, Not stated StuFAP Order No. 13, s. 2014 due to failure of the
R3 University to address problems on program
implementation
RMTU Not stated ESGP-PA, Implementation did not conform with Joint
, R3 StuFAPs, Memorandum Circular No. 2014-1 dated
TDSP February 3, 2014 due to inefficient
implementation of the scholarship programs
CNSC, Not stated ESGP-PA Non-availment of 68 grantees due to
R5 deficiencies in program implementation
UA, R6 Not stated ESGP-PA Risk that the goals of the program may not be
achieved or the program funds may not be
effectively handled due to noted deficiencies
in program implementation contrary to SUC-
CHED-DBM-DSWD-DOLE Joint
Memorandum Circular 2014-01
ISCOF, 10.64 Agricultural Goals of the Program not effectively achieved
R6 Competitiveness affecting the release of grants by the DA due
Enhancement to non-compliance with the Guidelines on
Fund Scholar- Scholarship Program
ship Program
(ACEFSP)
VSU, Not stated ESGP-PA Deficiencies in implementation contrary to
R8 SUC-CHED-DBM-DSWD-DOLE Joint
Memorandum Circular 2014-01 due to failure
of the University to create a PMO to oversee
ESGP-PA Program operation and
implementation per Section 8.4.1 of Joint
186
Amount Projects/
(in M PhP) Programs
Memo Circular No. 2014-1 and to see to it that
student-grantees should take up priority
courses identified by CHED and other courses
aligned with the government key growth areas
per CMO No. 1 s.2014
SSU, Not stated StuFAP- 52 student-grantees were also grantees of
R8 TDSP other scholarship program due to failure of
management to advise the CHEDRO of the
existence of duplications of scholarships or
financial assistance programs
UEP, 1.97 ESGP-PA 44 student-grantees or 11.58% of the total 380
R8 grantees dropped out during the first semester
of Academic Year 2015 resulting in a loss due
to failure of the institution to provide the
necessary guidance or bridging programs and
facilities as required in Section 8 of Joint
Memorandum Circular No. 2014-1 dated
February 3, 2014
Not stated StuFAP- 101 student-grantees were also grantees of
TDSP other scholarship programs in violation of
CHED Memorandum No. 13, series of 2014
or the Revised Guidelines for the
implementation of StuFAPs due to failure of
management to advise the CHEDRO of the
existence of duplications of scholarships or
financial assistance programs
NSU, Not stated ESGP-PA University remissed on its role as co-
R8 implementer due to failure to: (a) create a
PMO; (b) immediately require the student-
grantees to open ATM savings accounts; (c)
prepare/submit quarterly physical and
financial accomplishment reports; and (d)
post the list of ESGP-PA student-grantees in
its official website
Not stated SPs 55 students of the University availed of two
(2) CHED scholarships or financial assistance
programs since it did not strictly observe the
provisions of CHED Memo Order No. 13,
series of 2014, particularly on the
qualification requirements of student grantees
to achieve the objectives of the program
ESSU, Not stated ESGP-PA University remissed on its role as co-
R8 Implementer of ESGP-PA contrary to
CHED-DBM-PASUC-DSWD-DOLE JMC
No. 2014-1 dated February 3, 2014 due to
non-creation of a PMO, not immediately
requiring the student-grantees to open ATM
savings accounts, and non-preparation/ non-
submission of quarterly physical and financial
accomplishment reports
Not stated GIA-TDSP- Grant of financial benefits to student-grantees
StuFAPs not based on the tuition and other fees of the
HEI but on the congressional district or party
list to which such grantees belong since the
University did not implement the revised
guidelines for the implementation of STUFAP
as provided under CHED Memorandum No.
13, series of 2014, particularly on the criteria
that grants be based on tuition and other fees
187
Amount Projects/
(in M PhP) Programs
of HEIs to achieve the objectives of the
programs
LNU, Not stated ESGP-PA- University failed to carry out its role as co-
R8 StuFAPs implementer per JMC No. 2014-1 due to
failure to: (a) create a PMO; (b) designate a
Project Coordinator solely for Scholarship
Grants; (c) post complete list of student
grantees in LNU’s official website every
semester or quarter; and (d) submit to CHED
financial and physical accomplishments
reports, among others.
Grants to student-grantees were not based on
the tuition and other fees of the HEI but on the
congressional district or party list to which
such grantees belong since the University did
not implement the revised guidelines for the
implementation of STUFAP as provided
under CHED Memorandum No. 13, series of
2014, particularly on the criteria that grants be
based on tuition and other fees of HEIs to
achieve the objectives of the programs.
LNU, 9.45 TDSP- Disbursements of appropriations in CY 2015
8 StuFAPs was claimed by Management to have covered
1,181 grantees but only 39 grantees can be
properly identified as appearing in the
masterlist of grantees provided by CHED due
to failure of the University to secure the
Approved Masterlist of Scholars from CHED
prior to implementation and observe CHED
Memo Order No. 13, series of 2014, the
enhanced guidelines for the administration
and implementation of the StuFAPs
SLSU, 0.69 StufAP - Delayed release of funds for the first and
R8 TDSP second Semesters of AY 2014-2015
consequently denied some of the scholars the
opportunity to enroll in the first semester of
AY 2015-2016 due to failure of SLSU Bontoc
campus to strictly comply with CHED Memo
Order No. 13, series of 2014 provisions and
the related MOA on the timely utilization of
the financial benefits and institution of
corrective control measures to safeguard
government funds
BSC, 4.03 ESGP-PA Delayed payments of allowances to student-
R9 grantees since funding intended for 2nd
semester, SY 2014-2015 was not released on
time; opening of ATM accounts of student
grantees took time to process
ZSCM 6.89 ESGP-PA Delayed payments of allowances to student-
ST, R9 grantees due to delay in the release of final
and validated list of beneficiaries from
DSWD, confirmed by CHED, and delayed
request for funding from DBM
Not stated ESGP-PA No remedial/mentoring program due to failure
ZCSPC, to institute a bridging program to cater to the
R9 special needs of the student-grantees
BSU, 3.35 ESGP-PA Enrollment of 121 grantees with failing
R10 grades in AY 2014-2015 and 1st Semester, AY
2015-2016 since the University was a bit
188
Amount Projects/
(in M PhP) Programs
lenient to the student-grantees by giving them
a chance to recover and not dropping them
outright from the program
CMU, 3.35 SP Enrollment of 317 grantees with failing
R10 grades contrary to Item 8 of CHED, DBM,
PASUC, DSWD and DOLE Joint MC No.
2014-1 since the University was a bit lenient
and doing a series of interventions so the
scholar shall remain and be able to graduate
SKSU, Not stated ESGP-PA Student-grantees deprived of the use of funds
R12 due to non-compliance of the SUC with some
Not stated of the responsibilities as implementer per
CCSP Section 8.4 of the Joint Memorandum
C, R12 Circular No. 2014-1 dated February 3, 2014
Not stated ESGP-PA 190 out of 594 student-grantees or 32 percent
ASSC not enrolled in CHED identified priority
AT, courses due to non-compliance with Section
R13 2, Joint Memorandum Circular No. 2014-1
dated February 2014
CSU, Not stated ESGP-PA 108 out of 364 student-grantees or 30 percent
R13 not enrolled in CHED priority courses due to
non-compliance with Section 2, Joint
Memorandum Circular No. 2014-1 dated
February 2014
Not stated TDSP and 328 student-grantees not enrolled in CHED
SDSS ESGP-PA identified priority courses since the grantees
U, R13 Programs were screened by the Congressman’s office
TOTAL 2,048.07
9.4.3.2 The Auditors recommended that concerned officials:
a) Observe strict compliance with the StuFAPs/ESGP-PA/GIA/TDSP and

other scholarship guidelines/issuances.
b) Establish clear guidelines/strategies on how to efficiently and effectively

implement the Scholarship Programs as well as accelerate the
disbursement of its funds.
c) Request DBM to allocate the funds for SUCs’ disposition to cover

all qualified indigents who will meet the requirements and not only the
pre-selected constituents/beneficiaries of the legislators.
d) Strengthen the Agency’s internal control system in the selection of

scholars and processing/paying of benefits/claims. Conduct review,
evaluation and strict monitoring of the programs’ implementation and
impose sanctions against erring scholars/participating HEIs/responsible
officials and immediate collection of refunds to ensure that government
funds are appropriately used for intended purposes.
e) Strengthen communication and coordination between the SUC’s

Scholarship coordinator and CHED to ensure speedy validation of
recipients and release of funds for CY 2015-2016.
189
f) Conduct close monitoring of employment reports by training
partners/providers to measure the factual employment/ absorption rate
of graduates. (TESDA)
g) Strictly require TVIs to submit a Training for Work Scholarship

Program (TWSP) employment reports as supporting document to
claims/vouchers and for the conduct of mandatory assessment of
scholars/ graduates to increase their chances of employment. (TESDA)
h) Ensure that issues raised by scholars that are likely to affect their ability
to complete the MS and PhD programs on time are discussed with NSC
and acted up on time to improve the program implementation in the
universities. (SEI)
i) Speed up the enhancement/updating of database system that will

integrate the financial data of individual scholars and results of
monitoring erring and/or non-compliant scholars and institute
immediate refund. Meantime, direct the Registrar to cause the recording
of the name of scholars who abandoned or did not pursue their
scholarship and those confirmed to have enrolled/graduated in non-
Science and Technology courses and furnish the Accountant with such
documents, for the latter to provide/maintain subsidiary ledgers (SLs)
of collectible amounts from said scholars, among others.
j) Revisit the MOA with the NSC/member universities for inclusion of

provision that submission of detailed status report will include the actual
amount of scholarship benefits given per scholar with proper supporting
documents such as certified true copy of bank payroll/report.
k) Exert effort in collecting the receivables by sending demand letters to

the scholars’ parents or the scholars themselves, who have not fully paid
their obligations to the school.
l) Make immediate representation with the DA-OSEC to hasten

verification of submitted documents and follow-up release of
scholarship grants to enable the college to fast track implementation of
the DA-ACEF Scholarship Program for the benefit of the scholars and
the College.
m) Monitor closely the status of fund utilization and render timely

liquidation of funds received from Source Agencies pursuant to COA
Circular No. 94-013 dated December 13, 1994.
9.4.3.3 Infrastructure Projects
Poor planning/monitoring/supervision, delay in procurement/delivery

of materials/equipment, non-compliance with requirements/ contract
provisions and non-imposition of sanctions or lack of additional funds
led to delayed/non-implementation of projects.
190
Amount Projects/
Agency (in M PhP)
Reasons/Causes
Programs
BBS 2.42 BBS-Davao Uncompleted due to lack of additional funds to
Radio Station make it operational
NEDA 57.70 Construction Deferment of construction of warehouse on
of warehouse/ account of: a) delayed removal of earth fill
other projects dumped by the Engineering Office on the site
on account of non-availability of heavy
equipment/perennial rain; and b) delayed
procurement of one unit elevator and furniture
and fixtures due to failure of public bidding;
and delayed procurement of air-conditioning
DILG 1,246.63 Micro- Non-construction of MMRBs, and non-
Medium Rise distribution of financial assistance to 26,367
Buildings beneficiaries due to: a) non-implementation of
(MMRBs) and housing with basic services and facilities for
financial informal settler families (ISFs) in Metro
assistance Manila due to non-issuance of the
Implementing Rules and Regulations required
in the MOA between DILG and DSWD; b)
non-availability of land where the building is to
constructed; c) non-allocation of funds for
procurement; and d) non-coordination with
concerned agencies and LGUs for the
program’s execution
PNP 40.50 Infrastructure The 18 infrastructure projects identified in the
projects Annual Procurement Plan for CY 2015 and
lined up for implementation were not
completed within the contract period, with 9
projects awarded to winning contractors
and/or with on-going construction while the
remaining 9 projects were not yet
implemented, and still in the process of
finalizing the Program of Work and Estimates
BFP 598.14 Fire stations Non-construction of 316 fire stations due to
non-utilization of capital outlay/lapsing of
allotment
26.08 Fire Stations Non-repair of Fire Stations in NCR and fire
and fire trucks/ trucks/ambulances due to non-utilization of
ambulances funds
PA 1.12 Repair of Non-implementation of repair of facilities
facilities damaged by typhoon Yolanda due to delayed
public bidding hence, insurance proceeds was
unutilized
POEA 6.00 Waiting area Delayed construction due to delayed bidding
and other process
improvement
project funded
from donation
PUP, 100.59 Infrastructure Uncompleted five projects due to delay in the
NCR projects approval of contract, revision of work
items/plans to suit actual field condition, slow
progress of accomplishments, and relocation of
classrooms
Seven projects not undertaken in 2015 due to
delay in the preparation of the Approved
Budget of Contract, detailed estimates and
Program of Work by the DPWH, the project
consultant, and approval by the BOR
TESDA 22.32 25 classrooms Delayed reconstruction due to incapacity of the
in five TESDA Provincial Office (PO) to construct
191
Amount Projects/
Agency (in M PhP)
Reasons/Causes
Programs
elementary/ school buildings through Training cum
secondary Production Scheme (TCPS)
schools
PAGASA 6.96 Wind Uncompleted due to delay in procurement,
Resource delivery, installation, and testing of Wind
Assessment Monitoring Instrument and Steel Mast
for Wind
Power
Systems
DSWD 7,201.60 Core Shelter Uncompleted, with accomplishment of 68.97
Assistance percent or 69,003 shelter units, due to failure
Project of LGU to provide its counterpart or comply
with shelter assistance requirements, delayed
release of certification as safe areas by the
MGB/PHILVOCS/ PAGASA; and on-going
validation of relocation sites
201.00 Transitional Delayed construction, with only 52 percent
shelters for completion, due to seven times extension of
Typhoon project timeline, increase cost of financial
Yolanda support to IOM and unavailability of safe
victims funded location where the shelter units will be
by DSWD and constructed
implemented
by the
International
Organization
for Migration
(IOM)
73.03 Wash facilities 80 percent completion due to non-release of
for funds even though the additional budget was
Zamboanga approved
Crisis-
Affected
Population
MVUC Not stated 520 MVUC 150 projects were uncompleted and 243
projects projects were unimplemented due to
inefficient planning and supervision, as evident
by unresolved Right-of-Way,
clearance/permit, funding and construction
issues
DPWH 1,000.00 Tourism Water Unimplemented due to failure of the LWUA to
Supply and liquidate the funds transferred to them by the
Sanitation DWPH for the implementation of TouWa
Infrastructure priority projects; difficulty in engaging and
(TouWa) leveraging the technical skills of LWUA in
Program implementing the infrastructure projects
24.00 PRC projects Unexpended funds due to non-implementation
407.41 ERC projects of intended projects
BFAR 92.23 FisheryEquip Delayed provision or project unimplemented
ment/ due to changes in the design of the pond,
Facilities/Muni additional works that needed to be done, delays
cipal Fish in the delivery of GSE HDPE Geomembrane,
Ports and actual field conditions and rainfalls during
the time of completion
NMIS 188.30 LGU Uncompleted improvement/ rehabilitation
slaughter- while eight completed slaughterhouses
houses remained non-operational due to on-going
improvements, equipment not satisfactorily
192
Amount Projects/
Agency (in M PhP)
Reasons/Causes
Programs
installed, and some are not yet turned-over to
LGUs, among others
EMB Not Building Unutilized/delayed/slow construction due to
stated non-provision of timeline on the completion of
the project by EMB and DPWH, lack of
planning, presence of informal settlers in the
areas, and varied preferences of the
incoming/new regional directors that resulted
in several variation orders
ASC, 3.46 Two Slippage of at least 30 percent incurred in
CAR infrastructure implementation due to lack of manpower and
projects equipment by the Contractor and inadequate
monitoring by Management because of
shortage of agency engineers
BSU, 59.86 Five Uncompleted since preparation and submission
CAR infrastructure of technical documents did not complement the
projects execution timeframes
3.74 Several Unfinished due to lack of proper planning and
DMMMS structures built budgeting of the University’s Infrastructure
U by phase Program, and amount budgeted not sufficient
R1 for the completion of the projects
ISU, R2 Not Administration Unfinished Construction due to contractors’
stated Building, lack of manpower
Phase V of
ISU – Cabagan
Campus
Bul SU, 405.29 26 Unimplemented due to changes in the design as
R3 infrastructure required by DPWH, legal issues on land
projects ownership, and lack of manpower
CSU, 1.53 Improvement Uncompleted due to inaction of the University
R4A of Biological
Science
Building
OMSC, 48.02 Five Projects awarded to two contractors, incurred
R4B infrastructure negative slippage ranging from 3.12 percent to
projects 39.89 percent due to limited manpower and
non-availability of equipment
CBSUA, 19.94 Four Unfinished/uncompleted beyond the contract
R5 infrastructure period due to lack of supervision on project
projects implementation
CNSC, 20.90 Student Delayed implementation or non-completion

R5 Pavilion/Cover within timelines due to intention of CNSC to
ed Court realign the amount to other projects, which was
projects eventually found to be not feasible, and a Cease
and Desist Order issued by DAR which was
eventually lifted giving way to the
implementation of the project, respectively
Not Entrance Delayed construction due to delayed approval
stated Pavilion and of contract by Head of the Agency by 191
Entrepreneursh calendar days
ip Buildings
SSC, R5 Not Infrastructure Delayed procurement due to delayed approval
stated projects and by the Head of the Agency by 90 calendar days
goods
CSU, R5 Not Infrastructure Delayed due to prolong procurement activities
stated projects exceeding the maximum allowable timelines
set under RA No. 9184
193
Amount Projects/
Agency (in M PhP)
Reasons/Causes
Programs
BISU, R 67.12 Various Delayed completion due to various reasons,
7 projects one of which is completion of one project under
the United Nations Economic and Social
Commission for Asia and the Pacific
(UNESCAP) which is still subject to review
due to withdrawal of funding caused by non-
compliance with the project’s completion date
WMSU, Not Four Non-completion due to lack of adequate
R9 stated infrastructure monitoring of the projects’ implementation
projects
USM, 14.88 Science and Unfinished construction beyond its contract
R12 Technology duration due to non-imposition of sanctions on
Laboratory defaulting contractors
Building
CFCST, 6.57 One-Storey 6-
R12 Classroom
Building. and
Admission and
Records
Building
PCC 17.96 Bull Barn Unused/uncompleted due to unreasonable
R10 Semen delay of contractor and PCC’s inaction to
Laboratory rescind contract
and Road
Concreting
CSU, Not Infrastructure Delayed implementation due to poor planning
R13 stated projects of the BAC and lack of coordination between
the concerned offices
Not Three Delayed implementation due to poor planning
ASSCAT, stated infrastructure by the BAC
R13 projects
SSCT, 3.50 Five Storey Suspended improvement due to Management’s
R13 Commercial/E failure to secure necessary building permit
ngineering before project started
Building
Roofdeck
(Phase 1)
2.61 11 projects Uncompleted, with delays ranging from 26 to
227 days, due to extra works that construction
workers were required to undertake
considering that the project is by
administration
TOTAL 11,971.41
a) Plan thoroughly all projects to be implemented during the year. Revisit

the processes and procedures in the selection of projects and proponents
and re-assess the performance indicators.
b) Optimize utilization of funds received through timely release of funds

to operating units, timely initiation of pre-procurement activities, regular
conduct of monitoring activities on the use of allotments to immediately
address issues causing non-utilization of fund, reassessment of targets
and accomplishments, and if necessary, reprogramming of planned
programs, projects and activities (PPAs) to meet the objectives/purpose
194
within the set timeline, and requiring quarterly reporting on the status of
the projects.
c) Fast track the implementation of the projects through careful review of

the implementing guidelines and the work and financial plan, requiring
commitment by LGUs and ensuring well-coordinated efforts among the
implementers and stakeholders, identification of doable,
efficient/effective strategies to fully attain the objectives of the PPAs,
and extensive information dissemination campaign.
d) Establish an effective supervision/monitoring/validation of programs/

projects/sites to ensure that projects are implemented on time in
accordance with plans and budget. Require the contractor to prepare
catch-up plan to ensure the completion of the infrastructure projects
within the agreed timeline. Impose sanctions in cases of non-compliance
with MOA provisions.
e) Include a provision for penalty or adjustment of contract cost in cases of

delay or non-performance/delivery.
f) For modified shelters of DSWD distributed to the victims/ beneficiaries

of Typhoon Pablo, determine if the actual occupants were the lawful
owners and execute an agreement indicating that the units shall not be
rented, sold out, and/or mortgaged and the sanctions for contract
violations. Conduct inventory of unoccupied shelters for several years
from its completion and take appropriate action.
9.4.3.5 Other Programs/Projects
Lack of proper planning, monitoring and inspection of projects,

supervision, coordination and imposition of sanctions on delayed
delivery of services, non-compliance with requirements, non-
submission of terminal/liquidation reports, low absorptive capacity of
LGUs, non-availment of financing windows/projects, and delay in fund
releases are factors contributing to delayed or non-implementation of
various NGAs programs and projects.
Amount Projects/Progra
(in M PhP) ms
CFL 0.24 Printing and Delayed due to non-rendition of translation
publication of services or rendering beyond the period
Literary Books stipulated in the contract
NCCA Not stated School of Living Uncompleted/delayed due to long changing
Traditions (SLT) process, failure to comply with eligibility
Projects requirements, and lack of
terminal/liquidation reports
MDFO 11,300.00 Second Delayed completion/ implementation due to
Generation Fund - low availment rate for SGF financing
Local Loan windows/projects by the local government
Account (SGF- units (LGUs) and delay in release of funds
LLA) financing
windows/projects
(ProLend,
195
(in M PhP) ms
PTACF, PWRF-
SCF and PPP)
DILG 8,953.43 Bottom-up Low physical delivery rate of 54. 19 percent
Budgeting (BuB) for CYs 2013 to 2015 due to delayed
Projects submission of project proposal by LGUs,
delayed approval of the guidelines in the
implementation of capacity development,
failure of bidding, lapsing of NCA, and
project duplication
2,389.49 Bohol Earthquake Project delivery rate of 51 percent (542
Assistance completed projects out of 1,063 projects) due
Projects to low absorptive capacity of LGUs to
implement the project, lack of interested
bidders for small projects, and scarcity of
construction materials
1,819.56 Recovery Low physical delivery rate of 43.37 percent
Assistance on due to prioritization of RAY Batch 1 projects
Yolanda (RAY) by LGUs, failure to set project completion
Batch 2 Projects date, and realignment of projects for
barangay, among others
382.42 Performance Unattained full benefits due to non-
Challenge Fund compliance by concerned LGUs and DILG
Projects Regional Offices to pertinent provisions of
DILG Memorandum Circular Nos. 2015-
111, 2013-48 and 2012-68, failure to
complete projects, and non-utilization of
funds
0.29 Citizen Delayed submission of expected outputs due
Satisfaction Index to unliquidated fund transfers to IAs despite
by MinSCAT and completion of undertaking
WPU of Palawan
15.20 PAMANA Unimplemented for CY 2011, funded from
Projects DAP Fund, due to inability of Kalinga
Provincial Government to comply with
documentary requirements, declaration of
the unconstitutionality of DAP Fund by SC,
and realignment of two proposed projects
BFP 199.17 33 Fire Trucks for Failure to procure due to inefficiency in the
ARMM execution of projects and failure of bidding
hence, not attaining the Transition
Investment Support Plan (TISP) objective of
the government
PNP 366.43 Firepower Non-procurement due to realignment of
embodied in the funds for procurement of 20 units Patrol
PNP Five-Year Jeep, one lot Crime Data Processing System
Capability and one Lot Automated Fingerprint
Enhancement Identification System without prior approval
Program (CEP) from DBM
PA 951.28 43 Projects Uncompleted for CYs 2011-2015 due to
award of multiple projects to a single
supplier, and Management’s failure to check
the performance of the bidder on its on-going
projects, among others
UPS 51.73 Textbooks Delayed implementation of Engagement
Contracts between the University and the
Authors with one year non-renewable term
due to non-enforcement of sanctions on the
Authors, and writers have to rewrite
manuscripts to reflect laws/decisions passed
196
(in M PhP) ms
by Congress/Supreme Court. Thus, after
lapse of five years, only 23 textbooks, out of
the 78 textbooks or 29 per cent, were
completed.
UPS 134.62 eUP Project Uncompleted after the lapse of the 15-month
timeframe due to non-availability of data,
turn-around time for sign-offs, resource
allocation adjustments, changes in
government regulations, need for extensive
training, and gradual roll-out, among others
DOLE 55.70 Livelihood Unimplemented due to deficiencies in
66.05 projects program implementation such as
1.37 qualification and evaluation process,
0.40 Projects monitoring and inspection of
projects/validation of accomplishment
reports by Accredited Co-Partners (ACP),
and lack of timely interventions to address
problems, among others.
383.94 Special Training Delayed implementation due to lapses in
TESDA for Employment program implementation attributed to non-
Program (STEP) monitoring of focal persons and absence of
coordination among the implementers.
CHED 455.00 Research Projects Research projects implemented/conducted
by participating HEIs were uncompleted due
to weak project management/review and
monitoring capacity, and lack of clear and
specific sanctions against erring
participating HEIs
1,227.50 Supplemental Delayed and/or non-implementation due to
DSWD Feeding Program lapses in program implementation, to wit,
in seven regions among others: non-compliance of LGUs
with the MOA specifically on the submission
of liquidation documents; failure of the
FOs/DSWD to assess the capacity and
readiness of the IPs, and leniency and lapses
in monitoring by concerned FO/DSWD
officials
153.00 Projects for Cash donations with approved work and
Typhoon Yolanda financial plan to fund on-going projects were
victims unutilized due to lack of LGU counterpart.
DOH 550.76 Disaster Risk Low utilization of the allotted fund due to
Reduction failure to identify the activities directed to
Management the outcomes of the thematic areas defined in
(DRRM) Program the National Disaster Risk Reduction and
Management Plan (NDRRMP) 2011-2028
DOST 61.57 Small Enterprise Delayed implementation due to delayed
Technology release of funds and difficulties in the
Upgrading immediate submission of the required
Program (SETUP) certificates/documents
Projects
385.87 Grants-in-Aid Delayed implementation due to laxity of
(GIA) Projects Special Project Division in enforcing the
submission of researcher’s final reports and
certain project proposal not reviewed and
approved in accordance with the established
GIA guidelines
DENR Not stated National Greening Inability to meet the desired survival rate on
Program (NGP) planted seedlings in Region 1 for CY 2013
and 2014 and in Region VI for CYs 2014 and
197
(in M PhP) ms
2015 due to poor or erratic climate
conditions, poor soil condition, forest fire
occurrences, low maintenance and
protection, and highly infested sites or issues
on peace and order, among others. The low
physical accomplishment of the Clonal
Nursery and Production of Quality Planting
Materials of Premium and Indigenous Forest
Species can also be attributed to delayed
release of funds, inadequate seedling
production and plantation establishment
which affected the implementation of Coffee
Plantation in the Municipality of Piddig,
Ilocos.
EMB Not stated Adopt–an-Estero/ Non-attainment of objectives due to non-
Water Body abatement of dumping of domestic wastes in
Program the estero/ waterbody and that only ten
percent of the total water in Metro Manila
was adopted, terms and conditions of the
MOA are not fully observed, non-
involvement of the residents in the
management of the estero, and low
enforcement of ordinance on solid waste
management in the barangay level
10.00 Open-Path Non-attainment of objectives due to non-
Differential generation of real-time information of
Optical DOAS in Region II. Likewise, the equipment
Absorption cannot produce data on other gases for
(DOAS) almost a year due to damage on light source.
BatSU, 0.97 RFID Unutilized RFID for library automation for
R4A 1 1/2 years due to absence of ICT peripherals
CMU, Not stated CMU Swine Unutilized funds within the duration of the
R10 Semen program implementation due to low
Processing, absorptive capacity
Artificial
Insemination
Laboratory and
Hog Fattening
MUST 571.23 23 Projects Delayed implementation due to delayed
, R10 deliveries within contract time and deviation
from the procurement timelines
TOTAL 30,487.22
a) Revisit the processes and procedures in the selection of projects as well

as project proponents to support, including release of funds to the
beneficiaries/proponents/contractors, with the end view of ensuring that
projects started are actually completed. Revise guidelines and evaluation
procedures as deemed appropriate. Ensure that projects selected are
properly evaluated and readiness of the selected IPs assessed to ensure
that benefits therefrom are realized. Otherwise, capacitate the selected
IPs before the release of fund. Revisit the existing documentary
requirements that deter full compliance by the IPs and take appropriate
actions and procedures to assist the IPs in mitigating the conditions.
198
b) Accelerate the completion of the projects, intensify monitoring and
closely supervise project inspection, including submission of reports for
evaluation, and consultation with stakeholders so that constraints in
continuing project phases are identified and addressed, and the extent of
project implementation is assessed.
c) Demand from the contractors the immediate completion of the projects,

otherwise, rescind the contract and avail of the legal remedies/sanctions
provided under RA No. 9184. Refrain from awarding multiple contracts
to contractors with minimal working capital and pending/unfinished
projects and require the refund of the initial payments to contractors who
failed to implement the project or deliver the items subject of the contract.
d) Strictly comply with the provisions of the IRR, RA No. 9184, provisions
stipulated in the Engagement Contracts/MOA and other governing
guidelines and include in the contract, provision for penalty or adjustment
of contract cost in case of delay or non-performance/delivery.
e) Submit to the Audit Team the required documents and other necessary
information to complete the audit/evaluation of the project.
9.4.3.7 Low Loan Availment
Slow procurement process and resolution of right-of-way (ROW) issues

are among the major causes for the low availment rate of program loans
from foreign creditors resulting in payment of additional
charges/commitment fees (CF) amounting to PhP138.94M.
Commitment
Amount Projects/
Agency (in M PhP)
Reasons/Causes /Other Fees
Programs (in M PhP)
DPWH 18,368.46 Central Luzon a) Delayed completion of the 35.52
Link Expressway consultancy services
Project (CLLEX), component for detailed
Phase I and engineering and design and
Arterial Road commencement of the
Bypass Project consultancy services
(ARBP) Phase II component for construction
supervision, b) Delayed
procurement process due to
some changes introduced to
the project, such as
additional time required for
the preparation of detailed
design of Zaragoza
Interchange upon the request
of the LGUs and post
qualification procedures
which required actions from
foreign embassies/ other
government agencies/office
199
Commitment
Amount Projects/
Agency (in M PhP)
Reasons/Causes /Other Fees
Programs (in M PhP)
DOTC Not stated New Bohol Air- Delayed implementation due 46.23
port Construction to slow procurement process
and Sustainable and right of way problem
Environment Pro-
tection Project
(NBACSEPP) and
the Capacity
Enhancement of
Mass Rail Transit
in Metro Manila
Project
(CEMTMMP)
DOE 4,572.30 Market Unobligated allotments 57.19
Transformation mainly due to slow
through the implementation on account
Introduction of of extended procurement
Energy-Efficient activities resulting in
Electric Vehicles reversion of funds and
(E-Trikes) Project incurrence of huge
commitment charges
TOTAL 22,940.76 138.94
a) Hasten completion of consultancy services and the procurement

activities to maximize the benefits that maybe derived therefrom and
avoid the incurrence of huge commitment charges and management
fees.
b) Prioritize/settle immediately land and right-of-way (ROW) acquisition

issues to hasten project implementation.
9.4.4 Targets/plans of a number of NGAs and SUCs were not attained or

attainment not assessed; hence, affecting the delivery of the needed services
to its clientele/ beneficiaries or the attainment of the projects’ objectives
and at times resulted in reversion of funds or expiration of allotment.
Among the causes are inadequate planning, absence of operational
guidelines, unrealistic forecasting and budgeting, poor coordination and
monitoring, delayed release of assistance, stringent requirements, or
failure of implementing agencies to identify targeted beneficiaries, and lack
of information dissemination, among others.
Amount
Agency Condition
(in M PhP)
CCC 33.03 Only 58.84 percent of agency’s current appropriations of
PhP80.25M were utilized due to inadequate planning, partial
implementation of the activities, and lack of personnel
OMB Not stated Accomplishments in terms of inspection of establishments and
confiscation of optical media and equipment fell short of the
targets for the year; thereby, raising concern as to the agency’s
ability and commitment to curb piracy due to functional
limitation to serve Inspection Orders stemming from: (i)
preventive suspensions issued by the Ombudsman, and (ii)
subsequent unexpected resignation of the CEO, among others
200
Amount
Agency Condition
(in M PhP)
BTr-NG 2,000.00 Unutilized credit fund to be channeled through eligible
Microfinance Institutions (MFIs) for relending to Micro
Entrepreneurs/Enterprises (MEs) in Yolanda-affected areas due
to stringent requirements/conditions on MFI borrowers, lack of
monitoring made on the status of loan releases to MFIs by the
Program Steering Committee (PSC), and delayed preparation of
the amended Implementing Rules and Regulations (IRR) tying
the funds with LBP for almost two years
SEC Not stated Unable to fully discharge its mandated function on Corporate
and Capital Market Regulation Services (MFO2) due to lack of
regular monitoring system for non-compliant/delinquent
companies in the yearly submission of required documents such
as the General Information Sheet and the Financial Statements,
and inability to enforce timely the sanctions for violation of
laws, rules, regulations and orders issued, among others
PMO Not stated Fell short of its performance targets for the last two (2) years due
to slow disposition of the assets under its management
DILG Not stated Failure of proponent LGUs under SALINTUBIG projects to
submit Water Potability Test Result compliant with the
Philippine National Standard for drinking water required under
DOH AO No. 2007-0012
BuCorr Not stated Unattained income and food sufficiency at the Iwahig Prison and
Penal Farm (IPPF) and unutilized Agro-Industrial funds due to
improper utilization of resources for agro-industrial projects and
non-maximization of use of agricultural land
PCGG Not stated Unattained disposal of surrendered properties under the annual
privatization plan due to absence of policy or definite timelines
to dispose all recovered assets
DND 128.63 Unattained purposes for Quick Response Fund (QRF)/delayed
PN 62.30 completion of disaster-related projects due to utilization of funds
OCD 917.70 not for intended purpose such as repairs and reconstruction of
DND and Bureaus’ facilities, procurement of materials and
equipment, and conduct of training programs categorized under
“Disaster Preparedness” contrary to Section 22 (c), RA NO.
10121, delayed release of funds, and non-coordination and
monitoring of project implementation
Not stated Low utilization of donations from foreign and local donors due
to lack of comprehensive plan
EARIST, 96.07 Unutilized Special Trust Fund (STF)/ low utilization rate of only
NCR 17 percent due to absence of an approved Financial Plan
MPC, 74.22 Unutilized STF budget due to deficient programming, execution
NCR of programs/projects and reporting
RTU, 109.24 Unutilized approved STF budget for CY 2015 due to inadequate
NCR budget planning and slow project implementation
PNU, 59.13 Unutilized approved STF budget for CY 2015 due to deficient
NCR budgeting and delayed approval of the budget by the Board of
Regents (BOR)
PUP, 50.56 Unutilized fiduciary fees and budgeted research fund and
NCR extension projects/services
1.50 Non-utilization of budgeted amount due to partial
accomplishment of targeted outputs of two and 65 percent for
accreditation Levels 1 and 2
TUP, 278.83 Unutilized approved STF budget due to low implementation of
NCR projects as a result of the delayed approval of the budget and
contracts by the Board of Regents (BOR) and failure of
biddings due to unrealistic agency budget costs and deficient
project specifications
TESDA 365.27 Unutilized/reverted NCAs representing 21.77 percent of the
total NCA released by DBM for TESDA's operating
201
Amount
Agency Condition
(in M PhP)
requirements for CY 2015 due to delayed/non-implementation
of TESDA programs and projects
PHILSCA 5.54 Unutilized research budget due to non-completion of five BOT
NCR approved proposals and failure to undertake the budgeted
activities with the Research Council
DepEd 42,977.60 Unutilized allotment due to delay in procurement activities
affecting project implementation and delivery of the Agency’s
performance target/outputs
ECCDC Not stated Out of the 197 fully constructed National Child Development
Centers (NCDCs), one is fully distributed with contents; 30
percent or 59 NCDCs are partially distributed with the needed
contents of educational facilities and learning materials; while
the remaining 69.50 percent or 137 NCDCs was not provided
with any of the contents due to delay of its delivery from
Procurement Service
PRC Not stated Service Provider failed to provide a faster renewal and issuance
of professional licenses due to defective pictures submitted by
SM Mart Inc. (SMI) and lack of personnel
DOLE 1.23 Low operating efficiency of the Balik Pinay! Balik
Hanapbuhay! Project (National Reintegration Center for OFWs)
with utilization rate of only 49.03 percent. The absence of
accomplishments reports and other relevant documents did not
provide DOLE opportunity to assess the problem.
NCDA 4.61 Reverted cash allocations due to non-accomplishment of
targeted activities under the Policy Advisory Services on
Disability Affairs
1.94 Unutilized fund from the DSWD intended for the
implementation of empowerment projects of PWDs and
Disabled People's Organizations due to difficulty in identifying
beneficiaries in the social enterprise program and delayed
conduct of advocacy forum on awareness
DOST 3.52 Not a single research proposal was approved, funded or
processed under the Regional Research Fund Initiative of the
PCHRD due to non-conformity with established rules,
regulations, procedural guidelines, policies, principles and
practices or were incurred at an unreasonable cost, immoderate
quantity or exorbitant price, which is disallowable
STII 20.56 Two target outputs still on-going/partially completed, out of the
five targeted outputs of the project, “Iba Na Ang Panahon:
Science for Safer Communities” due to inadequate budget, and
lack of suppliers, among others. Follow-up activities are being
undertaken to collect/gather the LGU plans.
DOH 29.40 Unutilized funding for the Prevention and Control Rabies
Program of San Lazaro Hospital. Out of 16,000 vials purchased,
only 13,716 vials of anti-rabies vaccine were used due to lack of
information dissemination that the said vaccines are given for
free to animal bite victims considered as “indigent patients”.
330.96 Unutilized funding for Medical Assistance Program (MAP). Out
of PhP616.3M downloaded to the hospitals, only a total of
PhP285.34M or 46.30 percent was utilized due to failure to
finalize MOA between LGUs and ROs, unreleased NTCA from
the DOH, non-availability of requested drugs/medicines/
medical supplies/equipment, amount of assistance dependent on
approved endorsement letters of district representative,
requirement for guarantee letter to avail MAP, and lack of public
awareness regarding the program of DOH.
19.54 Drugs, medicines and other medical and office supplies of
various hospitals were either expired or overstocked and
remained unutilized due to slow utilization and improper
202
Amount
Agency Condition
(in M PhP)
documentation of donations; lack of proper planning and
monitoring of distribution/utilization
DSWD 684.30 Delayed release/non-release shelter assistance to 37,870
beneficiaries due to non-issuance of a clear, written policy
guidelines on the processing period of documents from
assessment to release of funds, non-compliance by some LGUs
on the timeline of distribution to beneficiaries. Thus, Dream B
objective to address the emergency and rehabilitation shelter
needs of families with damaged houses was not fully realized.
ITDI 7.18 Optimum use of the Sewage Treatment Facilities inside the
DOST compound in support of Philippine Clean Water Act (RA
No. 9275) not fully attained due to incompatibility between the
design and construction of Sewage Treatment Facilities with
waste water discharges of various septic tanks of the buildings
ICTO 2,854.21 Automatic reversion of funds and non-accomplishment of target
activities due to failed biddings and other procurement-related
issues
MMDA 1,479.73 Use of allocated budget not optimized to achieve its targeted
goals on transport and traffic management due to absence of
detailed implementation plan/s integrating measures from
various studies; no documented/defined policy or guidelines on
the provisions of traffic engineering, enforcement, education
and emergency responses services for the major road networks
comprising 197km thoroughfares; delayed
implementation/completion of projects programmed under the
2015 GAA; procurement of transportation equipment which
could not be seen as part of MMDA’s short and long-term plan
CWC 5.77 Reversion of cash allocations due to non-accomplishment of
targeted activities under Child Welfare Policy Program
NAST 34.57 Failure to attain the envisioned transformation of the Philippine
Science Heritage Center despite more than eight years of
continuous funding in the total amount of PhP34.571M due to
low fund utilization, not updated program plan and activities,
and unaligned prioritization of fund utilization to the attainment
of the project’s goal
MVUC 2,831.74 Unutilized allotment for CY 2015 for road repair and
maintenance, road safety and vehicle pollution control reverted
to BTr due to non-implementation of programmed projects on
account of late release of SAROs and issues in the acquisition
of Right of Way (ROW)
DPWH 29,348.11 Unutilized/reverted allotments due to late releases of
SAROs/SAAs, delays in the conduct of preliminary detailed
engineering, and failures of biddings
Not stated Non-attainment of commitment in the Project Implementation
Plan with reported accomplishment rating of 43.04 percent for
Major Final Outputs (MFOs) 1, 52.13 percent for MFO 2, and
53.86 percent for MFO 3, or an overall delivery rate of only
49.68 percent, due to unresolved RROW problems, inaccurate
conduct of detailed engineering study, variations in the original
programs and plans and/or restrictions imposed by regulatory
bodies, deferment of the opening of bids, delayed preparation
of Resolution of Award, and in some cases, insufficient
allocations for school building projects funded by the DepEd to
cover the complete construction of the projects, among others.
Not stated Only 886 Farm-to-Market Road (FMR) projects or 63 percent
completed, out of 1,388 projects due to delayed/on-going
preparation of detailed engineering, approval of plans, and
procurement process, re-alignment of projects, RROW
problems, failure of biddings, inaccessibility of access roads,
203
Amount
Agency Condition
(in M PhP)
scarcity of construction materials, peace and order condition and
inclement weather, among others.
DOTC 10,401.89 Lapsed/reverted allotment
8,134.13 Out of the total 199 projects, consisting of 189 locally funded
and 10 foreign-assisted, only 169 projects were obligated due to
its failure to consider issues on project detailed engineering
designs, RROW issues, and manpower/technical personnel
constraints, among others. Appropriations for 30 projects were
not obligated.
5,491.69 Reversion of cash allocations to the BTr due to unreliable work
targets and deficiencies in the agencies’ projection as compared
with the actual accomplishments and payments made, non-
implementation of some programmed activities on account of
delays in the procurement processes caused by failed biddings,
lack of monitoring and planning of programs, projects, activities
(PPAs), and lack of technical personnel to supervise the PPA.
DOT 29.57 Unutilized Tourism Development Fund (TDF) maintained under
the Special Account with the National Treasury due to
Department’s failure to formulate the operational guidelines and
prepare the Special Budget on the use thereof
394.31 Lapsed cash allocations of 16 percent of the total cash
allocations due to unrealistic forecasting of the cash
requirements reflected in Monthly Disbursement Program
(MDP) or inability to implement programs and activities in line
with the disbursement forecast in the MDP
444.57 Unobligated balance out of CY 2015 total budget due to
delay/late implementation of projects, actual costs incurred were
lesser than the budget; late submission of Statement of Accounts
by the suppliers, non-compliance with requirements for the BuB
implementation, non-liquidation of previous fund transfer,
procurement deferred in CY 2016 TDF, and absence of
guidelines for the TDF Utilization and Special Budget.
ERC 75.70 Unobligated balance due to 10 unawarded consultancy contracts
costing PhP70.30M and failure to procure one Watt hour Meter
Test Set of PhP3.60M due to failed bidding.
PCAF 10.93 Targeted activities on consultations, policy review and
recommendations/resolutions were not fully accomplished due
to problems encountered on liquidation of previous funds
released; low adoption of endorsed policy recommendations;
and low return of Profile Survey in 2015
DENR 818.02 Overall performance of the foreign assisted projects and the
Operational Plan for the Manila Bay Coastal Strategy
(OPMBCS) was generally low, showing an overall fund
utilization rates of 64.54 percent and 53.25 percent, respectively,
due to delay in hiring of consultants/lack of qualified applicants,
disagreement in the terms of contract, delay in the procurement
process activities, non-submission of fund utilization report on
fully accomplished activities, and significant gaps between
partially accomplished activities and corresponding
disbursements.
ACPC 2,350.00 Low fund utilization of Agriculture and Fishery Financing
Program (AFFP) loan facility due to constraints and problems
pertaining to Registry System for Basic Sectors in Agriculture
(RSBSA) database; and failure to conduct intensive and massive
orientation–facilitation workshops and meetings in all provinces
covered by the program.
IPOPHL Not stated Targets on the number of assisted Intellectual Property (IP) filed
by Intellectual Property Satellite Offices (IPSOs) not achieved
due to slow replacements of resigned IPSO Field Specialists
204
Amount
Agency Condition
(in M PhP)
who are supposed to orient/assist IPSO in filing IP, and low IP
awareness of the clients.
CIAP 2.88 Target for imposition of disciplinary action for at least one
violation of the Contractor's License Law within one year from
start of investigation not achieved due to pending investigations
DAR 3,621.08 Low fund utilization and accomplishments under the Land
Tenure Services (LTS). Out of the targeted hectares for
acquisition and distribution, only 18 percent of Emancipation
Patents (EP)/Certificate of Land Ownership (CLOA) were
issued due to delayed procurement of surveying works, pending
court cases of landholdings, peace and order concerns,
erroneous cadastral survey, delayed issuance of CENRO
certification as to land classification, slow approval of survey
plans by DENR-LMS, unattractive survey contract price,
difficulty in scheduling joint field inspection, and difficulty in
requesting the contractors for the revision of the survey plans,
among others.
161.97 Existence of unresolved cases of over one year under the
Agrarian Legal Services (ALS) due to pending issuance of
Compliance of Interlocutory Order; active/pending petition for
issuance of Second Owner’s duplicate copy of TCT at the
Register of Deeds; non-compliance with essential documentary
requirements; and limited manpower on account of
implementation of rationalization
502.97 Very low accomplishment for the ARCP II with an average
completion rate of only 22.46 percent on the targeted
infrastructure projects and ARISP III with 20.76 percent of the
infrastructure projects still to be accomplished as of year-end
despite project extensions due to, among others, delay in the
release of first tranche by the Municipal Development Fund
Office (MDFO) to the LGU on account of incomplete
documentary requirements, revisions of Plans and
Specifications and absence of detailed engineering design prior
to bidding and awarding, bad weather conditions, insufficiency
of funds for LGU share, continued use by beneficiaries which
hinder the full execution of the project, and defects in infra
projects which remained unrepaired.
BFAR 25.36 Unutilized funds for Fishery Programs due to lack of proper
planning in the implementation of agency’s various programs
and activities
BSU, 24.39 Unutilized cash allocations for MOOE due to unimplemented
CAR PPAs or overestimated MOOE
9.02 Unutilized fund for student organizations and activities due to
IfSU,CAR slow processing of student resolutions discouraging student
organizations to formulate and submit project proposals
NVSU, 22.40 Unutilized appropriations; capital outlay not fully utilized due to
R2 slow implementation
DVTSU, 0.69 Purpose of implementing IGPs not fully attained since five
R3 rentable stalls remained unoccupied as of year-end due to lack
of advertisement of various rentable stalls
MSC, 32.58 Unutilized/reverted cash allocations of 22.53 percent of the total
R4B NCAs received due to various constraints in the payments of
expenditures which include, among others, absence of
guidelines/ directives for ESGP-PA implementation; delayed
appraisal of buildings; and delayed approval of the Annual
Procurement Plan.
RSU, 7.01 Unexpended/ unutilized allotment of three percent due to
R4B inability of the University to proceed with the plan to procure
205
Amount
Agency Condition
(in M PhP)
laboratory, agricultural and fishery equipment because no
supplier submitted a bid during the procurement process
PSU, 38.79 Unexpended/ unutilized allotment of 10 percent due to
R4B projects/programs which still need approval by the Board of
Regents, and unfilled positions in the University’s plantilla,
among others.
WPU, 47.20 Unutilized/reverted cash allocations of 21 percent due to
R4B various unpaid claims for tuition of scholarship grantees of
CHED and DepED, and billing of contractors for on-
going/completed projects at year-end mainly due to insufficient
documentation
39.70 Unexpended/unutilized allotment of 18 percent, of which 26
percent or PhP10.14M already lapsed/ expired due to unfilled
positions, excess of allowable MOOE allotment for payment of
CNA incentives and excess miscellaneous personnel benefits
fund
LNU, R8 54.86 Unutilized funds reverted to National Treasury due to improper
monitoring and evaluation of agency performance and
synchronization of fund release with implementation schedule
for critical programs/projects
JRMSU, 0.25 Unutilized funds from CHED for National Agriculture and
R9 Fisheries Education System (NAFES)
9.4.5 The Auditors recommended that concerned officials:
a) Revisit the Agency’s policies and strategies, existing manuals or

guidelines on monitoring and enforcement activities and act on noted
deficiencies. Ensure that guidelines are adequate for the effective
implementation of plans and programs. Install a sound monitoring and
supervision system on the actual utilization of the fund, project
implementation, submission of legal and documentary requirements and
proper coordination among officials and implementers, among others.
b) Review performance targets and planned budgets, and prepare realistic

plan/program, including that for the disposition of recovered assets.
Maximize the utilization of allotments and cash allocations in accord with
the intended purposes for the benefit of the beneficiaries/stakeholders by
developing implemention plan, expediting the process of procurement,
conducting periodic review of project progress and evaluating physical
accomplishments. For projects about to expire with unresolved critical
issues, request for the termination of the Program.
c) For PMO, revisit the privatization/disposition targets with the end view of
generating maximum cash recovery within the shortest possible period;
and develop an effective plan and strategy particularly in the areas of asset
identification, pricing, marketing, disposition, and approval.
d) Monitor closely compliance by IPs, such as LGUs, with relevant rules and
regulations. Require passing the National Water Standards for Drinking
Water for SALINTUBIG sub-projects.
e) For DND/PN/OCD, strictly implement the provisions of the GAA on the

utilization of the QRF, refrain from granting additional fund transfers to
206
IAs with outstanding balances and closely monitor the liquidation of the
same, and ensure procurements out of QRF are in accordance with R.A.
No. 9184.
f) For DepEd, evaluate project sites and conduct a thorough assessment of

would-be recipient schools and ensure compliance with relevant rules and
regulations. Conduct thorough site inspection/ appraisal and consider all
factors that may affect the construction of proposed school buildings.
g) For ECCDC, follow-up from PS-DBM delivery of the procured contents

and prioritize distribution of the same to fully completed NCDCs from
CYs 2012 and 2013 that have not yet been provided with any contents or
still having incomplete contents, to facilitate full utilization of the NCDCs.
h) For STII, intensify monitoring and follow-up activities related to the

completion of updated/reviewed local evaluation plan/evacuation centers
based on the hazard maps provided by Project NOAH and DREAM for all
17 Philippine Regions.
i) For DOH, to have extensive information dissemination on free vaccines

for Prevention and Control of Rabies Program, and guidelines on MAP
implementation to properly inform the indigents/poor patients
beneficiaries needing medical assistance.
9.4.6 A number of NGAs and SUCs maintained various accounts, out of

collections from various sources and/or interest earned from trust receipts,
of which others have been dormant for several years and/or have no
authority to maintain trust accounts.
Amount
Agency Remarks
(in M PhP)
OP 55.98 Trust receipts
PCOO 59.80 Unutilized DAP funds
CFL Not stated Proceeds derived from seminars, conferences and trainings
FPA 1.26 Rental income, sale of printed materials/books, bid documents and bid
security
NLP 3.27 Trust receipts
NCIP 14.46 Trust receipts maintained in special bank accounts instead of MDS
bank accounts
NEDA 1.14 Proceeds from sale of Integrated Personnel Management System
(IPMS) in NRO I
BIR 0.10 Bid fees and sale of bid
BOC 125.69 Unutilized fund not yet remitted to BTr
200.86 Trust receipts still deposited/maintained with Philippine National
Bank (PNB); of the 32 existing bank accounts with PNB, 16 have no
balances while one bank account with balance of PhP0.94M remained
dormant since 1996
PMO 220.06 Retention fund placed in High Yield Savings Account
1.73 Interest earned from the retention fund
MDFO 413.42 Cash balance of completed project in CY 2015
BLGF 0.42 Excess training fees and dormant cash balance
DOF 0.31 Interest earned
CDA 0.08 Interest earned
207
Amount
Agency Remarks
(in M PhP)
DILG 0.87 Unremitted collections/interest income
DILG 0.46 Cash deposited in PVB idle since 2006
PNP 5.34 Dormant cash balances and special and trust funds; various non-
moving LBP and PNB accounts balances
AFP-GHQ 0.01 Dormant account balance unreverted to National Treasury
PVAO 0.12 Unauthorized account/trust fund
BI 1.89 Dormant Cash-Collecting Officer Account
OGCC 1.24 Dormant unclassified items since 1993 under CIB-LCSA
DepEd 1,614.78 Various collections
UPS 12.46 Unutilized PDAF and bank interest on PDAF at UP-Diliman and
UPLB
4.48 Unutilized balance of DAP fund for research projects at UP-Manila.
0.80 Unutilized Research Funds at UP-Manila and UP-Mindanao
23.30 Dormant funds from 81 research projects at UP-Diliman and UP-
Manila
51.73 Unutilized Centennial Textbook Writing Project Funds at UP-Diliman
PHILSCA 0.59 Performance bonds and bid documents
PNU, NCR 5.18 High Yield Savings and Time Deposit dormant for more than ten
years
PUP, NCR 7.17 Dormant scholarship grants invested in time deposits
TUP, NCR 8.04 Foreign Currency, Time Deposit of TUP Manila idle for more than
five years
RTU, NCR 0.06 Unnecessary Foreign Currency Savings Account with a confirmed
bank balance of USD1,328.32 dormant for more than seven years
92.55 High yield interest savings account representing invested funds
deposited in CYs 2012 and 2013, out of the income from tuition fees
and other school charges
CHED 1.90 Excess Payroll Fund/Cash-in-Bank without authority in four
CHEDROs
TESDA 72.96 Unexpended funds in TESDA NCR, Regions II, IV-A, VI and X
NCCT 60.00 National Endowment Fund (NEF)/receipts
POEA 2.91 Excess seminar fees
NWPC 0.46 Receipts from bid security, refund of salaries and rental deposits,
performance bonds of NWPC Main
DPWH 196.23 Dormant bank accounts
36.34 Interest income and collections from liquidated damages, refund of
disallowances, and sale of bidding documents
21.45 Excess funds received from various NGAs, GOCCs and LGUs
40.92 Five percent share of DPWH from building permit fees collected by
LGUs
DOTC 43.13 Excess collections from the sale of bidding documents, dormant
accounts, appeal fees
DOE 8.70 Training Commitments/Assistance Fund without specific authority or
legal basis to maintain said funds
NPDC 8.72 Various collections
0.52 Dormant Savings account with the Philippine Postal Savings Bank,
Inc. (PPSBI) for nine years
DOT 86.29 Unused APEC funds
DOH 219.11 Dormant, unauthorized and unnecessary special and trust funds,
balances from closed/terminated programs/projects and collections
of contractors/suppliers bidders/performance bonds
DOST 4.07 Unexpended GIA balance
0.63 Dormant and unnecessary cash in bank accounts
0.78 Dormant, unauthorized and unnecessary cash in bank accounts
0.15 Collection of SETUP refunds from three (3) cooperators
0.11 Income from training fees/ advertisements/bid documents/bidders
bond and reimbursement of utility bills by contractors
0.19 Unexpended balance not collected after project completion from one
proponent in RO X
DSWD 143.09 Dormant and other unnecessary cash in banks accounts
208
Amount
Agency Remarks
(in M PhP)
ICTO 60.18 Unauthorized/unnecessary Cash-in-Bank deposits and unutilized
MOOE for CYs 2014 and 2015 of FOOs
ITDI 1.63 Unexpended balances of completed projects unreturned to SAs
MIRDC 0.92 Unexpended balances of completed projects
NAST 0.84 Unexpended balances of completed projects unreturned to SAs
NNC 12.21 Unutilized cash balances of funds transferred to the ROs
PHIVOLCS 0.09 Adjustment of dormant and/or non-existent bank balances with
insufficient supporting documents
PNRI 3.46 Excess income collections and unexpended balances of completed
projects
NCDA 0.10 Unremitted savings-trust receipts to the NCDA by Tahanang Walang
Hagdanan
MMDA 0.20 Dormant refund of unexpended CA
BFAR 25.36 Unutilized NCAs
23.06 Dormant, unnecessary and unauthorized bank account balances
PCAF 440.07 Deposits with PNB to guaranty loans under the Special Vehicle Loan
Fund (SVLF) Program which is no longer necessary but remained
unremitted to the BTr
PhilFIDA 8.79 Unremitted Trust Receipts
DENR 99.77 Dormant, unauthorized and unnecessary bank account balances
11.41 Dormant bank accounts
EMB 1.33 Unnecessary and special trust funds in the bank
DAR 226.64 Dormant, unnecessary and unauthorized bank accounts
0.08 Dormant Cash-Collecting Officers account
1.20 Recorded Cash in Bank - LCCA account has no cash back-up in the
bank
BSU, CAR 0.23 Collections from the sale of bid documents
MPSPC, 0.02 Unused PDAF balance
CAR 11.16 Transfer of cash allocation from MDS current account to trust
fund/current account without statutory authority
9.56 Issued cash advance checks for next quarters’ expenditures to avoid
lapsing of NCAs
0.03 Unused monies for completed projects not returned to SAs
ASC, CAR 1.36
KASC, CAR 28.16 Transfer of cash allocation from MDS current account to trust
DMMMSU, 106.62 Unutilized NCAs of different campuses not reverted
R1
PSU, R1 3.38 MDS Cash Balances
ISU, R2 13.85 Operating cash account balances for Fund 101
CSU, R2 0.24 Sale of bid documents, fees from contractor/supplier
QSU, R2 0.12 Dormant cash deposited with LBP
NVSU, R2 0.53 Unexpended balances of FTs from DOST for various completed
research activities not returned to SA
0.26 Unutilized cash advances for various scholarship grants not returned
to fund sources
TSU, R3 4.99 Unutilized PDAF for CYs 2010-2013 scholarship fund
0.26 Dormant cash balances
CvSU, R4A 12.89 Unutilized funding checks from CYs 2012 to 2015
SLSU, R4A 7.18 Unreverted dormant balances of Due to NGAs and Other Payables for
more than two years, without valid claims
LSPU. R4A 74.00 Unused cash allocation under MDS
BISCAST, 0.62 Dormant Cash in Bank balance
R5
CBSUA, 1.20 Unutilized DAP funds not returned to CHED despite SC ruling
R5
BU, R5 2.23 Twenty five dormant cash in bank accounts remained in the books
75.60 Dormant single time deposit account unconfirmed by the bank in
2015; however, it was confirmed in 31 December 2014
WVSU, R6 0.02 Unutilized DAP funds-Financial Assistance to Indigent Patients not
returned to SA
209
Amount
Agency Remarks
(in M PhP)
ISCOF, R6 6.28 Unutilized NCAs of all ISCOF External Campuses for CY 2015 and
prior years not returned to BTr
LNU, R8 37.21 Time Deposit accounts under the Special Trust Fund (FC-05)
established and maintained without statutory authority or purpose for
its creation
13.95 Unutilized appropriation for scholarship grants for three quarters of
CY 2014, transferred to FC 07 (Trust Fund) without complete
documentation; used to pay scholarship expenses in CY 2014 and for
the 1st quarter of 2015
NSU, R8 2.93 Unused DAP balance from CHED of PhP7M for Modernizing
Facilities for Developing Universities
0.13 Collections from IGP Projects deposited at UCPB and PNB for San
Jorge Campus
0.10 Collections from the sale of bid documents
EVSU, R8 22.69 Bank accounts with a total year-end bank-confirmed balance of
P22.69M remain dormant for years for reversion to the General Fund
VSU, R8 1.87 Unutilized NCAs
SLSU, R8 14.77 Irregular transfer of TDSP and ESGPPA funds from the
regular/general fund to special trust fund; recognizing an expense
when actually, no payment was made yet to the scholars at the time of
transfer
7.75 Transfer of cash allocation from MDS current account to trust
ESSU, R8 0.55 Unutilized MDS account balances
10.90 Transfer of cash allocation from General Fund to Special Trust Fund
as replenishment for honoraria
1.48 Current/Time Deposit accounts under the Special Trust Fund (FC-05)
SSU, R8 7.92 established and maintained without statutory authority or purpose for
its creation
EVSU, R8 6.82 Unutilized DAP Fund
BSC, R9 20.46 fund/current account without statutory authority
ZCSPC, R9
JRMSU, R9 12.73 Unnecessary bank accounts balances not closed
CSU, R13 1.61 Prior year’s PDAF funds balance
0.57 Prior year’s DAP funds balance
0.60 Refund of cash advances deposited to the University’s Trust Fund
account
SSCT, R13 4.30 Unutilized CYs 2010-2013 PDAF Fund not returned despite SC
Decision
ASSCAT, R13 0.29 Refund of cash advances deposited to ESGP-PA account
MSCAT, R4B 14.16 Fund transfers from NGAs remained idle and/or unliquidated beyond
the project implementation agreement
TOTAL 5,401.95
9.4.7 The Auditors recommended that concerned Agency officials:
a) Monitor and immediately close dormant, unauthorized/unnecessary cash-in-

bank balances/guaranty fund/deposits, fiduciary fund, including all
unutilized and lapsed NCAs, DAP and PDAF balances, and remit the same
to the BTr or return to the grantor/donor/source agency pursuant to COA
Circular No. 94-013 dated 13 December 1994, the provisions of the GAA
for 2015, COA Circular Letter No. 2004-004 dated 5 October 2004, COA-
DBM-DOF Joint Circular No. 1-97 dated 02 January 1997, EO No. 55 s.
2011 dated September 6, 2011 and DOF Department Circular No. 001-2015
dated June 1, 2015.
210
b) Refrain from transferring unutilized NCAs to the trust/current account and
require all collections/receipts to be deposited to the National Treasury as
prescribed under EO No. 338 and BC No. 2004-5A.
9.4.8 The benefits from a number of programs/projects are not maximized or

assured due to non-provision of maintenance fund or inadequate income to
support operation, non-compliance with the guidelines, absence of
performance metrics and/or non-conduct of technology assessment, and
inadequate monitoring, among others.
Amount
Program/ Project Reason
(in M PhP)
SLT Program Not stated There were no clear established activities for the
(NCCA) sustainable management of SLT project resources
which is intended to promote and preserve the living
tradition.
eLearning Not stated Performance metrics were not adequate to measure the
Program (NHCP) accomplishments of the program from the perspective
of the users.
SPES Program Not stated There was no established baseline/quantitative criteria
(DOLE) for the two to three (2-3) percent increase in the
targeted number of SPES beneficiaries that graduated
from technical, vocational or college; thus, no standard
of measurement to determine whether the CY 2015
target for the program was attained.
National Book 0.30 Grants were released to grantees not recommended by
Development the advisory committee which is required under Section
Trust Fund 4, Rule V, RA No. 9521.
(NBDTF)
KABUHAYAN 159.84 The standardized monitoring and reporting system
Programs prescribed under DOLE Department Order No. 137-14,
(DOLE) series of 2014 was not used in five Regions; thus, the
success of the program extended to 21,296
beneficiaries could not be adequately measured.
HEI-Based Loan Not stated Lack of monitoring and evaluation of the Program thus,
Programs only 9 or 18 percent, out of the 51 HEIs were monitored
(CHED) in CHEDRO–II while there was no Monitoring and
Evaluation Reports in two other CHEDROs.
Nationwide Not stated Project implementation was not properly monitored.
Dengue Vector Project completion and updating of reports on dengue
Surveillance and vector surveillance website were delayed, making the
Website Program reports on dengue mosquito occurrence unreliable basis
(PCHRD) for planning and implementing immediate intervention.
VFP Program 39.03 Financial assistance granted to 32 established
(TAPI) proponents, with products that are already existing in the
market. This is inconsistent with the objective of the
program which is to accelerate the initial
commercialization of emerging and new
technologies/inventions developed by the S & T
Community.
PMIS Projects 1,047.00 A total of 137 completed research projects from CYs
(PCIEERD) 2005 to 2015 was not subjected to technology
assessment due to lack of technical personnel to conduct
the same; thus, readiness of the project output could not
be determined and the public was not informed of the
availability of the technologies for possible use and
adoption.
211
Amount
Program/ Project Reason
(in M PhP)
MVUC Projects 44.42 Elevators installed in pedestrian overpasses were not
utilized due to the absence of adequate funding for the
necessary parts, maintenance costs and wages of staff to
operate the same which was to be provided by the LGUs
as required in the Memorandum of Agreement. This
may result in wastage of government funds if not made
operational.
200.50 Motor Vehicle Inspection System (MVIS) equipment
remained unproductive due to LTO’s failure to act on
prior year’s audit recommendation to request for
funding and complete the installation and repair of
MVIS equipment.
24/7 Contact Not stated Benefits from the 24/7 Contact Center Service
Center Service procured by LTFRB-CO during the year was not
(DOTC) maximized due to inadequate dissemination of the new
hotline numbers to the public.
Common Service 189.90 The benefits from the 109 equipment, out of 528
Facilities (CSF) – equipment given to Agrarian Reform Beneficiaries
Agrarian Reform Organizations (ARBOs), were not maximized due to
Communities non-suitability of the equipment, non-operational
Connectivity and because of undelivered spare parts, unrepaired factory
Economic defects by suppliers, untrained beneficiaries on the
Support Services operation of the equipment, among others.
(ARCCESS)
Program
(DAR)
Income 0.72 The sustainability of operation of Bakery (PhP0.07M)
Generating and Dumlog Fishpond (PhP0.65M) projects were not
Projects (IGP) assured due to insufficient/low income to cover
Projects Bakery expenses.
and Dumlog
Fishpond
(ASU, Region 6)
IGP Projects Not stated Performance of IGP Projects of Lutayan Campus could
(SKSU, Region not be reliably measured, assessed and evaluated due to
12) laxity in controls in the handling and disposition of
collections, and absence of mechanism/s to verify
records on a timely and/or regular basis, among others
Student 2.19 The SAFE program were not properly controlled and
Assistance Fund monitored as required under CHED Memorandum
for Education Order (CMO) No. 25, s. 2008.
(SAFE) Loan
Program
(SSCT, Region
13)
TOTAL 1,683.90
a) Revisit program evaluation strategies and define performance metrics, to

measure or assess program implementation.
b) Comply with the Program standard monitoring, reporting and evaluation

system to address any emerging problems including training of beneficiary,
and assess project implementation.
212
c) Strengthen the evaluation of project proposals and target proponents of new
and emerging projects to ensure that only viable projects are implemented
and to accelerate the initial commercialization of emerging and new
technologies/ inventions developed by the S & T communities. Revisit and
strengthen policy guidelines including that of VFP.
d) Require the LGUs concerned or the implementing agencies to provide

adequate funding for the maintenance of projects to ensure their
sustainability and maximize the benefits to be derived therefrom.
e) Conduct inspection to determine the condition of equipment and take

appropriate action. Instruct the Regional/Provincial Offices to reassess the
need to transfer equipment not being used by the beneficiaries to other
beneficiaries in need.
f) Demand delivery from the Suppliers/Contractors of any undelivered items

or defective deliveries, otherwise, take appropriate action.
9.4.10 Several projects/programs undertaken by a number of agencies either

remained unutilized/underutilized/unused or failed to function at all which
manifest either outright or eventual waste of government funds. In the case
of Bull Loan Program, its implementation resulted in the death of 483
buffaloes and outright loss of income opportunities of rural farming
communities.
Program/ Amount
Reason
Project (in M PhP)
ICTO 230.73 The Thin Client Cloud Computing System (CloudTop) Project
of the ICTO, a DAP-funded project, failed to function as
intended in the eight pilot selected schools due to non-
operational computer units.
MMDA 264.83 The use of CCTV systems was not fully maximized to promote
safe and convenient movement of persons and goods, regulate
road users, administer and implement traffic enforcement
operations, and traffic engineering services due to non-
utilization of 117 CCTVs, unserviceable 7 CCTVs and blurred
and hazy images of 2 others. There was also no definite CCTV
Operators to monitor and control specific locations, defined
procedures on selection of areas/locations to be
viewed/monitored through video screens and specific durations
within which to display certain area on screen among others.
PNRI Not stated E-Beam Facility was set-up only after a year from the targeted
completion date. Moreover, the intended purpose of offering
the facility to relevant industries, and for research and
developmental activities was not attained.
ICYT, Not stated The Innovation Center for Yarns and Textile (ICYT) has yet to
PTRI operate on its full capacity due to poor marketing and
promotion, and costly service fee.
PSU, R1 Not stated Eighteen Commercial Stalls were not utilized.
CSU, R2 1.90 Electromechanical Training System with Data Acquisition and
1.25 Control Interface Laboratory Equipment and equipment parts
were not utilized.
CBSUA, 16.19 Two-Storey Veterinary Medical Hospital and Animal
R5 Diagnostic Laboratory and Training Center, completed on
October 29, 2013, were not fully operational.
213
Program/ Amount
Reason
Project (in M PhP)
Not stated Community – Based Hatchery Project at CBSUA – Calabanga
Campus, completed on July 26, 2013, was not fully
operational.
19.79 Various laboratory equipment procured by the University were
delivered late, incomplete with some not yet operational.
PCC, R3 64.26 Implementation of the “Bull Loan Program” or “Paiwi Program”
resulted in the death of 483 buffaloes and loss of additional
income opportunities of rural farming communities
TOTAL 598.95
a) Pursue or make projects operational. Henceforth, evaluate the mandate and

capability of the IA to undertake the project before transferring funds to
ensure the success of the project.
b) Enhance existing guidelines, procedures and strategies to maximize the use

of the items/equipment procured, including related Operations Manual.
The Manual should include provisions on specific duties of those
responsible for the implementation of the projects and the required reports
to be submitted to monitor project implementation.
c) Ensure immediate implementation of the project as planned, by

informing/orienting the target industries/prospective clients/researchers/
beneficiaries of the services the facility can offer or do extensive research
on potential clients by marketing and promoting the facility.
d) Fast track the completion of the project and ensure smooth operation and
use of the facilities for the purpose intended. Strictly adhere with the laws,
rules and regulations on safeguarding of assets and ensure that all resources
are used for its intended purpose.
e) Require the Contractor/Proponent to deliver any remaining undelivered

equipment, conduct installation, testing and orientation on the use of the
equipment, and provide the IA with operations manual to guide the users
of these equipment, among others.
f) For PCC, Region 3, determine the accountability and culpability of

responsible personnel on the death of the 483 buffaloes, among others, and
the strategies to ensure that the remaining buffaloes are protected and
would result in additional income to the rural farming communities, as
envisioned.
9.4.12 Implementation of Pantawid Pamilyang Pilipino Program (4Ps), under

the Social Welfare and Development Reform Project (SWDRP) and Social
Protection Support Project (SPSP), needs continuous monitoring and
improvement to ensure efficient fund utilization and timely delivery of
assistance to rightful beneficiaries.
The following deficiencies, some recurring, were noted:

214
(a) Compliant beneficiaries excluded/suspended from payroll;
(b) Retropayments not verifiable on Grievance system and paid only after two
years;
(c) Existence of duplicate entries in the 4Ps payroll;
(d) Balances ranging from PhP2,801 to PhP102,200 amounting to PhP1.099

billion covering 79,530 accounts under the cash card mode of payment
were not withdrawn from 30 to 2,190 days upon payout;
(e) Beneficiaries covered by 386,435 accounts with a total balance of

PhP139.008 million, with no date of last monetary activity, were still
included in the list of beneficiaries;
(f) Delays ranging from 12 to 15 months for payment of Modified

Conditional Cash Transfer (MCCT) to qualified beneficiaries due to
absence of partner conduit to service the areas, lack of capital funds of
conduits and delayed processing and release of checks for MCCT
beneficiaries;
(g) Unpaid CCT balance amounting to PhP1.479B as of December 31, 2015;
(h) Cash grants for delisted or unpaid Household (HH) beneficiaries remained
idle in the LBP and its conduits amounting to PhP1.579B;
(i) Unreleased funds for MCCT beneficiaries for CY 2015 amounting to

PhP284.632M or 20.02 percent of total budget; and
(j) Over-released funds to FOs VII, VIII and XIII amounting to

PhP137.215M, PhP96.565M, and PhP7.3M, respectively.
9.4.13 The Auditors recommended that concerned DSWD officials:
a) Implement a management review control process to ensure that all

compliant beneficiaries are included in the payroll for the periods stated
in the CV as well as identify the causes of exclusion from the payroll list
and make necessary enhancement in the system to avoid the same errors
in the future;
b) Strictly comply with the 4Ps operations manual on processing of

retroactive payment for eligible beneficiaries facilitated by the Grievance
Redress Division (GRD) and establish a monitoring mechanism to warrant
timely resolution of complaints;
c) Conduct a review/validation of the beneficiary data; clean up the

invalid/double beneficiary entries and errors to ensure that the master data
is free from any invalid/duplicate/multiple records; and enhance the
system to include an embedded facility that automatically checks
duplicate/invalid beneficiary entries to avoid double payments;
215
d) Coordinate with LBP on the status of cash cards issued to beneficiaries
and make necessary actions to recover the amount to be remitted to the
BTr;
e) Conduct an investigation/re-assessment on the eligibility of concerned

beneficiaries and make necessary actions based on the assessments.
Intensify monitoring of beneficiaries by field personnel and updating of
data base for non-compliant/delisted beneficiaries;
f) Intensify validation of all unpaid beneficiaries and require the Municipal

and Provincial Links to promptly report on the status of beneficiaries so
that changes, if any, could be effected immediately to prevent or minimize
the occurrence of unpaid grants on OTC and off-site payments of 4Ps; and
g) Submit to the Unified Financial Management Unit the Notice of Approved

Payroll Action for the early preparation and release of MCCT Cash
Grants; and justify the over release of Cash Grants to FOs.
9.4.14 The implementation of projects under the Kapit-bisig Laban sa

Kahirapan - Comprehensive and Integrated Delivery of Social Services
(KALAHI-CIDSS) Project of DSWD intended to improve the
responsiveness of LGUs to community needs, encourage communities to
engage in development activities and deliver benefits to barangay residents
through individual sub-projects (SPs) showed the following deficiencies:
(a) Low financial accomplishment rate and delayed submission of project

accomplishment as of December 31, 2015 raised doubts on the effective
implementation of the KC-National Community Driven Development
Project (NCDDP) Monitoring & Evaluation (M& E) System, specifically
on the areas of reporting, monitoring and evaluating KALAHI projects;
(b) SPs costing PhP9.087 million were not in keeping with KC-NCDDP
policy guidelines;
(c) Validation of 39 association-led SPs costing PhP59.949 million disclosed

non-compliance with the registration requirements, as stated in the
RWSM; thus, sustainability of the projects may not be assured;
(d) Total amounts from approved projects in the WFP of PhP4.594B under
the custody of FOs and LBP Batasan remained unutilized which could
have been used in the implementation of said projects;
(e) Commitment fees incurred due to low utilization of loan funds from Asian
Development Bank (ADB) amounted to PhP0.633M;
(f) Completion rate of only 42.97 percent vis-à-vis target of 70 percent of

NCDDP community projects with sample SPs costing PhP342.547M and
PhP24.957M with on-going and not yet started status, respectively; and
216
(g) Delays in project implementation attributed to lack of enforced assistance
to the Barangay Sub-Project Management Committees (BSPMCs) by the
Area Coordinating Teams (ACTs) and Regional Project Monitoring
Offices (RPMOs) personnel.
9.4.15 The Auditors recommended that concerned DSWD officials:
a) Require the National Project Monitoring Office (NPMO)/RPMO to

faithfully adhere with the provisions of the KC M & E to ensure that the
projects are implemented in accordance with the approved budget,
project milestones, performance expectations.
b) Require ACT/RPMO personnel to: (1) monitor and supervise closely

the SPs and provide technical assistance to the BSPMC during project
implementation and immediately correct the defects/deficiencies noted for
the full continuity and functionality of the SPs; (2) make necessary
representations with the concerned Barangay Chairman to address the stop
order and resolve the issues being raised; and (3) implement strictly the
provision of storage facilities before delivery of construction materials at
the site to secure these materials. Hold accountable the RPMO/ACT who
will be found remiss in the monitoring and evaluation of the SPs.
c) Require the ACT at DSWD Field Offices to strictly implement the

provisions of NEDA Board Resolutions No. 5 series of 1996; establish a
monitoring mechanism to ensure that association-led sub-projects are
provided with guidance and support in all matters relating to the projects;
revisit the KC Manuals and provide specific provisions on ownership
and require all validated projects and similar projects to establish
ownership with the assistance of Area Coordinating Teams.
9.4.16 Health Facilities Enhancement Program (HFEP) of DOH was envisioned

to revitalize the primary health care facilities at various levels of
government hospitals. It specifically aims to upgrade said facilities in the
provinces to make them more responsive to the health needs of the
catchment population, among others.
The following Program-related observations were noted during the audit, some
of which recurring through the years:
(a) Procured medical equipment funded in CYs 2011-2014 amounting to

PhP279.21M were either found unutilized, defective and not received by
the intended health facilities;
(b) Facilities/equipment were either: (1) defective/poor quality

(PhP100.68M); (2) not received by intended beneficiaries (PhP109.37M);
(3) not yet installed/started (PhP190.74M); (4) not yet operational
(PhP495.36M); (5) unutilized (PhP103.37M); (6) not completed within
contract time (PhP904.40M); and (7) other various reasons
(PhP142.87M);
217
(c) Funds amounting to PhP75.25M were used not for the intended purpose
such as beautification and retailing/repainting;
(d) Procurement and delivery of equipment for MCP, TB Dots or 3-in-1

package under HFEP 2014 were pushed through in some regions despite
incidence of prevailing problems such as on-going construction, non-
birthing status of facilities, among others;
(e) Oversupply/over-distribution or non-installation of equipment and

substandard equipment;
(f) No patient in need; and
(g) Lack of trained personnel to operate the equipment.
9.4.17 The Auditors reiterated their prior year’s recommendation for DOH to :
a) Provide the assigned HFEP Team (Facilitators and Coordinators) in all

regions with the list of all procured and delivered equipment in health
facilities under them. Give instruction to inform the concerned Chief of
Health Facilities of the equipment to be delivered and conduct 100 percent
validation not only of the receipt, but also of the condition and utilization
thereof, and submit the same to the Central Office for monitoring and
further evaluation;
b) Ensure that all equipment left idle due to unfinished/unconstructed health

facilities are stored properly. Conduct intensive supervision of the
construction and completion of health facilities and maximize utilization
of all facilities/equipment to prevent wear and tear due to exposure to bad
elements or obsolescence or non-use due to lack of supply or reagents.
Provide the necessary assistance in the installation of equipment to make
it useful in accord with the intended purpose and be advantageous to the
beneficiaries. For defective equipment, provide the necessary assistance
to the health facilities in contacting the suppliers for replacement or
necessary repair;
c) Coordinate and make representations with the LGU officials to provide

their counterpart contribution/obligation in the implementation of the
HFEP;
d) Instruct the DOH-ROs to coordinate with the Provincial Health Offices

(PHOs) and Rural Health Units (RHUs) which received equipment in bulk
to distribute the same to intended end-users, submit inventory report of all
equipment received and distributed, and validate the same prior to
redistribution;
e) Impose appropriate sanctions to erring suppliers and DOH personnel who

inspected and accepted the delivery of defective equipment and allowed
payment;
218
f) Continue to conduct assessment and capacity/readiness evaluation of the
beneficiaries of health facilities;
g) Provide the complete list of cancelled contracts and failed procurement to

facilitate proper identification of unaccounted deliveries in the health
facilities;
h) Ensure proper tagging of equipment and advise the health facilities to

maintain an inventory list of equipment for proper identification and
accounting; and
i) Direct the DOH-RO HFEP Team to extend their validation and

monitoring of equipment up to disclosure in the books of accounts and use
the JEV drawn by the source agency and end-users to link to accounting
records.
9.4.18 Transactions amounting to PhP8,469.40 million may be considered non-

compliant with existing laws, rules and regulations.
Amount
Agency Nature
(in M PhP)
BOC 4,215.45 Procurement of 30 units X-ray mobile equipment for
PhP7,953.45M was exorbitantly priced by PhP4,215.45M
considering the price of PhP3,738.00M from other leading
supplier in the international market contrary to COA
Circular No. 85-55A.
3.26 The annual rate of PhP9.56M per unit for the repairs and
maintenance of X-ray machines provided to BOC by
NUTECH is 1.51 times higher or PhP3.26M compared
with the cost of PhP6.3M that could have been provided
by other international service provider/supplier of X-ray
machines contrary to Sec. 3.3, COA Circular No. 85-55A
BuCorr 6.69 Expenses of the IPPF, not related to agro-industrial
projects, paid from the Agro Industrial Fund, in violation
of the Special Provisions of the GAA, and Sections 4 and
84 of PD 1445.
PHILSCA, 5.68 Hiring security guards on contract basis without
NCR employer-employee relationship in CY 2015 charged
against the Special Trust Fund (STF) instead of engaging
a duly licensed security services agency
CHED 2,851.28 Out of the PhP3.920 billion DAP funds transferred by
CHED to 121 SUCs and its campuses for infrastructure
and facilities upgrading, student’s grants-in aid and
research development and extension projects, PhP2.851
billion or 71 percent remained unliquidated for more than
two years despite the SC Decision on the
unconstitutionality of the DAP promulgated on July 1,
2014.
219
Amount
Agency Nature
(in M PhP)
DOH 145.17 Medical Assistance Program (MAP) Funds amounting to
PhP145.17M were granted by hospitals in two regions to
beneficiary patients even if they were not indigent
provided they were endorsed by legislators/partylist
representatives
162.93 MAP funds were used for procurement of drugs,
medicines, and medical supplies for the general use of the
hospitals, among others, not related to the intended
purpose specifically for indigent/poor patients
ERC Not stated The issuance of Certificate of Compliance (COC) to 217
Independent Power Producers (IPPs)/Generating facilities
(GFs) and 1,371 Self Generation Facilities (SGFs)
without the conduct of ocular inspections which is
required under ERC Rules may not guarantee the full
compliance standards by the IPPS/GFs and SGFs with
established standards
DPWH 9.61 Funds transferred not utilized for its intended purpose
DENR 21.56 Two buildings situated within the DENR-Central Office
and BMB valued at PhP20.43M and PhP1.13M,
respectively, were demolished contrary with the
provisions of the MOA and/or existing laws, rules and
regulations, resulting in loss of government property
BSU, CAR 8.02 Hiring Instructors despite the absence of vacant positions
and charging their salaries and overload pay to STF
ASIST, 1.69 Hiring of job orders or contracts of service faculty
CAR members and charged their wages to STF in violation of
IfSU, CAR 7.18 CHED Memorandum Order No. 20, series of 2011
KASC, 3.58
CAR
MPSPC, 3.84
CAR
IfSU, CAR 0.66 Funds transferred not utilized for its intended purpose but
KASC, 1.11 instead used for payment of overtime services and
CAR honorarium of SUC personnel contrary to COA Circular
No. 94-013
IfSU, CAR 1.90 Expenses incurred in prior year and paid in 2015
recognized as current year’s expenses contrary to the
accrual basis of accounting.
DMMMSU 755.94 Transfer of cash from the University-Main to the
, different Campuses and its Operating Units through
R1 funding checks for NCAs received not in conformity with
DBM NBC No. 488 and COA GAFMIS CL No. 2003-004
LSPU, 241.69 Budgetary allocation for STF of PhP241.69M not
R4A formulated in accordance with the provisions of Article III
of the Commission on Higher Education (CHED)
Memorandum Order No. 20, series of 2011
220
Amount
Agency Nature
(in M PhP)
BU, R5 Not stated Capital outlay budget for equipment was revised without
the approval of the funding agency (DOST) head and
without informing the monitoring and funding agencies
of the changes.
Not stated Project’s line item budget was revised and project period
extended without approval from the PCHRD.
Not stated Failed to implement the Expanded Modified Direct
Payment Scheme (ExMDPS) per DBM Circular No.
2013-16
6.67 Philippine Council for Agriculture, Aquatic and Natural
Resources Research and Development (PCAARRD)
funds received by BU College of Agriculture and Forestry
(BUCAF) were deposited to BU Special Trust Fund bank
account contrary to Executive Order No. 338 and COA-
DBM-DOF Joint Circular 1-97.
PSU, R5 Not stated The University exceeded the mandatory limit on the
number of teachers for its laboratory classes by 126
percent
CSU, R5 Not stated The University exceeded the maximum number of
students allowed for its laboratory elementary and
secondary programs.
ISCOF, R6 0.09 Funds for Yolanda Rehabilitation and Reconstruction
Program were used to implement infrastructure project
not related to the intended purpose
UA, R6 Not stated Contracts of Lease not executed between the University
and 17 private concessionaires operating businesses
within the University campus contrary to Section 2 of PD
No. 1445
ESSU, R8 5.69 Payments for financial assistance to officers and
employees who were affected by Typhoon Ruby were
charged against the Special Trust Fund (STF) without
legal basis.
1.48 Two (2) other current accounts under the Special Trust
Fund were established and maintained without specific
authority for its creation which is required under CHED
Memorandum Order No. 20.
UEP, R8 1.24 The condominium unit purchased in July 2009 costing
PhP1M has no Certificate of Title which is not in
compliance with Section 39 (2) of PD No. 1445. All
expenses incurred in the maintenance of the unit
amounting to PhP0.24M were charged to the Special Trust
Fund contrary to CHED Memorandum Order No. 20.
SSU, R8 1.99 Salary differentials paid to certain officials and teaching
personnel of the three Campuses in the years 2015, 2013
and 2012 were charged against the Non-Fiduciary Income
of the Special Trust Fund which is not in adherence to
221
Amount
Agency Nature
(in M PhP)
COA Circular No. 2000-002 and CHED Memorandum
Order No. 20
LNU, R8 3.61 Allowances of ESGP-PA grantees for the 1st quarter of
CY 2015 were erroneously charged to FC-07 (Trust Fund)
contrary to CHED Memorandum Order No. 20.
SDSSU, 1.39 Repairs and maintenance expenses for facilities of
R13 Tagbina Campus was more than the approved STF Budget
appropriated for the Campus contrary to PD No. 1445.
TOTAL 8,469.40
9.4.19 The Auditors recommended, among others, that concerned Agency Officials:
a) Revisit the contracts entered into and evaluate the reasonableness of the
contract price by benchmarking with other international supplier. Study
the provisions of the Supply Contracts and the loan agreement/s and see
the possibility of negotiating with concerned Supplier and creditor for the
reduction in the amount of the loan and/or price of the X-ray machines or
bid out the contract for maintenance services to other international service
providers/suppliers who also have the capability to provide similar
maintenance services and lower cost.
b) Cease from using Funds for expenses not related to the trust fund and limit
the use thereof for the intended purpose. Strictly comply with the
provisions of relevant laws, rules and regulations and establish standards.
c) Demand the immediate liquidation and return of unexpended balances of

the funds transferred to participating SUCS/Implementing Agencies and
enforce utilization of funds only for the purpose intended. Comply with
the timely liquidation, accounting and reporting of transferred funds
pursuant to COA Circular No. 94-013 dated December 13, 1994 and
impose appropriate sanctions to officials/employees for any improper
implementation of the Agreement.
d) Require all LGU hospitals and retained government hospitals to strictly

adhere with the guidelines prescribed under DOH Administrative Order
No. 2015-0025 dated June 16, 2015 on the use of MAP.
9.4.20 A number of agencies were not observing certain laws, rules and
regulations defeating the purpose for which such laws were enacted and
issued, some of which may even result in wastage of government resources,
as shown in the table below:
No of Amount (in
Condition Laws/rules violated
Agencies M PhP)
Non-submission of year-end/ monthly PD No. 1445 and COA 73 -
financial reports, disbursement vouchers issuances, COA-DBM
(DVs), Official Receipts, among others Joint Cir. No. 2014-1
222
No of Amount (in
Agencies M PhP)
Non-submission of copies of perfected COA Circular No.
contracts/ MOAs/ Purchase Orders/Job 2009-001 dated 12 15 -
Order February 2009
Non-compliance with Senior Citizens RA No. 10633, DBM- 6 -
and Differently-Abled Persons DSWD Joint Circular
provisions No. 2003-01
Non-Compliance with GAD GAA FY 2015 (RA 151 -
requirements of providing budget of not No. 10651, PCW/
less than 5 percent of the total agency NEDA/ DBM Joint
appropriations, submitting on time plan Circular No. 2012-01
approved by PCW, carrying-out/fully
implementing the planned activities and
submitting accomplishment report,
among others
Non-Compliance with provisions on NIRC of 1997, RA No. 31 122.12
withholding taxes and timely remittance 8424 PD No. 1445, EO
to BIR No. 651, Revenue
Over-withholding of taxes Regulations 1 5.01
Non-remittance/non-reconciliation of RA No. 8291 or GSIS 11 5.07
GSIS contributions Act of 1997
Non-remittance of Pag-IBIG RA No. 9679 dated 1 0.18
contributions June 1, 2009
Non-settlement of Disallowances/ RRSA under COA 43
Suspension/Charges Circular No. 2009-006 1,886.05
Non-compliance with the prescribed COA Circular 2013- 6 -
standards on Information and Publicity 004 dated 30 January
on Programs/ Projects/Activities (PPA) 2013; Section 98,
of Government agencies or non- General Provisions of
compliance on the transparency posting the GAA or RA No.
requirements. 10651
Non-submission of utilization report on Deed of Donation 1 90.00
United Nations Ebola Response Multi- dated 22 January 2015
Partner Trust Fund donations
Non-liquidation of fund transfers for the COA Circular No. 94- 9 2,552.27
hosting of Asia-Pacific Economic 013 dated 13
Cooperation (APEC), sourced from December 1994;
International Commitment Fund (ICF), MOA provisions
by the following agencies: DBM-PS
(PhP0.20M), DILG (PhP1,669.61M),
DILG-PNP (PhP2.90M), DOT
(PhP246.73M), DTI (PhP98.29M),
DOTC (PhP2.86M), PCOO
(PhP519.20M), CCP (PhP4.01M), and
FSI (PhP8.47M)
Non-liquidation of inter-agency fund COA Circular No. 94- 1 189.62
transfers for the maintenance of drug 013 dated 13
rehabilitation centers by 58 IAs December 1994; COA
Circular 2007-001
dated 25 October
2007
223
No of Amount (in
Agencies M PhP)
Non-liquidation of fund transfers to COA Circular No. 94- 7 447.74
NGOs/POs ranging from 1 year to 35 013
years; one NGO already closed in 2010
There were, however, 35 agencies which complied with the 5 percent allocation,
mainstreamed GAD in its programs, prepared plan and fully implement the
same, among others.
9.4.21 The Auditors recommended, among others, that concerned Agency officials:
a) Strictly comply with the reglementary period of submission of the

required reports, contracts/other required documents, and compliance with
the GAA provisions, COA issuances, GSIS regulations, DOF and BIR
issuances, GAD, Senior Citizens and Differently-Abled Persons, and other
pertinent laws and regulations.
b) Enforce the settlement of the disallowances, suspension and charges

within the prescribed period in the RRSA or request for installment
settlement in accordance with COA Resolution No. 2015-031, so that once
approved, staggered payment through salary/payroll deductions can be
made.
c) Comply with COA Circular 2013-004 dated January 30, 2013 relative to
the information and publicity of the program/projects/activities of the
university and submit the quarterly reports on government projects and
display of signboards on all projects, regardless of amount.
d) Require DFA to submit the report on the utilization of the donation made
to the UN Ebola Response Multi-Partner Trust Fund thru UNDP in
fulfillment of the requirements of the DOD and to ensure that the donated
amount was actually used according to the intended purpose.
e) Coordinate with the APEC’s Implementing Agencies (IAs) to determine

utilization of fund transfers for the hosting of APEC and demand
liquidation for proper accounting in the books of accounts as required
under existing COA rules and regulations.
f) Send demand letters to 58 IAs of DDB for the liquidation of fund

transfers intended for the maintenance of drug rehabilitation centers.
g) Direct the program implementers/ facilitators to exert utmost efforts to

monitor the implementation of the projects and assist the beneficiaries in
the preparation and consolidation of terminal/liquidation reports. Conduct
regular inspection of the recipient NGOs/POs; prepare
inspection/monitoring schedule covering current and prior years’ projects
to determine if funds transferred to them were properly utilized
considering the provisions of the MOAs, among others.
224
9.5 Consolidated Common Audit Observations Affecting the Fair Presentation of
Financial Statements for Calendar Year 2015 of NGAs as discussed in
the Annual Audit Reports
9.5.1 Cash
Cash account balances in a number of agencies are unreliable or inaccurate due

to reported cash shortage/failure to deposit collections, unrecorded collections
and disbursements, erroneous recording and unaccounted variance, and
unrecorded reconciling items, among others; thus, exposing government funds to
misappropriation, possible misuse and losses.
9.5.1.1 Cash shortages due to misappropriations and alleged robbery incident of

four Accountable Officers (AOs)/Special Disbursing Officers (SDOs) in three
agencies amounted to PhP1.78 million.
No. of Amount
Agency Reason/Cause
AOs (in M PhP)
UPS 2 1.28 One SDO entrusted the CA funds to an unbonded contractual
personnel who absconded while another SDO failed to submit
liquidation reports of cash advances and restituted the amount
of PhP0.05M
DOST 1 0.11 Practice of deferring deposits and temporary misappropriating
collections for Regional Science and Technology Laboratory
(amount restituted)
IfSU, CAR 1 0.39 Loss of funds allegedly through a robbery incident.
Total 4 1.78
9.5.1.2 Collections of 73 AOs of 25 agencies amounting to PhP335.57 million were

not deposited intact showing lapses/weaknesses in internal control increasing
the risks of misuse or loss of government funds.
No. of Amount
Agency Reason
AOs (in M PhP)
BBS 1 0.07 Failure to deposit the collections intact and daily in BBS-CAR;
cash accumulated from January to June due to Agency’s practice
of accumulating small amount of collections before depositing in
the bank
PNP 3 2.70 Accumulation of excess cash due to manner and frequency of
depositing collections; delays ranging from 2 to 38 days in
depositing at PROs IV-B and VIII while Collecting Officers in
PRO CAR and VIII failed to include the collections in the Monthly
RCD
DOJ 5 0.01 Non-deposit of collections daily and intact by five Special
Collecting Officers (SCOs) of City Prosecutor Offices in Makati,
Marikina, Malabon, Antipolo and Valenzuela
NBI 10 3.38 Collections not remitted or deposited intact daily by SCOs at
various NBI regional/district offices (Regions 4-A, 7 and 9) due to
weak internal control on cash
BuCorr 1 0.93 Non-deposit of collections on a timely basis by Leyte Regional
Prison Collecting Officer, with delays ranging from 7 days to 110
days, and accumulation of cash in AO’s custody as high as
P0.935M.
LRA 11 266.00 Collections not deposited intact daily resulting in accumulation of
large amounts of cash in the custody of the AOs ranging from 1
day to 566 days; one case of AO unrestituted shortage in RoD,
Maasin City
PAO 4 0.38 Collections of success fees not deposited intact daily by designated
Disbursing Officers acting as Collecting Officers at the same time
225
No. of Amount
Agency Reason
AOs (in M PhP)
with delays in deposit ranging from 11 to 111 days in NCR and
Regions 7, 12 and 13.
CHED 3 0.17 Delay in deposit ranging from 4 to 56 days in CHED-CO and two
CHEDROs due to internal control weaknesses
DOLE 2 1.13 Collections not deposited daily and regularly due to non-
adherence to rules and regulations governing cash accountabilities
POEA 1 0.20 Collections by Philippine Overseas Labor Offices (POLOs) used
to defray expenses relating to freight and bank charges; amount
being processed for remittance to BTr
1 0.04 Delay in deposits of daily collections in POEA Extension Unit 5
accumulated
1 Not stated Collections for Overseas and Employment Certificates (OECs) not
deposited intact at POLO-Athens; freight/bank charges deducted
from collections outright
1 Not stated Collections for OEC fees remitted the following month or after
two months to LBP at Polo, Amman, Jordan
TESDA 4 Not stated Collections ranging from PhP0.01M to PhP2.43M in Regions I,
IV-AA and VIII not deposited intact daily
ICTO - 12.16 Undeposited collections of AOs who were either suspended,
dismissed or on AWOL status, dormant or abnormal or negative
balances of some AOs and unreconciled/unaccounted balances;
absence of proper turn-over and clearance from money and
property accountability of AO upon reshuffle to other post or
transfer to other government agencies
PSU, R1 1 Not stated Daily collections not deposited intact due to lack of government
service vehicle to ferry the Cashier to AGDB on daily
CSU, R4A 1 1.60 Collections not deposited intact
URS, R4A 10 12.13
MSCAT, 2 1.23 Collections not deposited intact daily due to huge amounts
R4B collected during enrollment and examination period and the
distance of AGDB resulting in cash accumulation
RSU, R4B 2 0.57 Undeposited collections at year-end due to location of AGDB in a
different island
BU, R5 1 0.20 Collections not deposited intact daily by Administrative personnel
not duly bonded due to inability to leave the premises given said
employee’s other functions
CBSUA, 1 0.33 Collections not deposited regularly and intact due to unavailability
R5 of vehicle to be used per management justification
DEBESM- 2 6.41 Collections not deposited regularly and intact due to distance
SCAT, R5 between the school and the nearest AGDB (66kms.) per
management justification
BISU, R7 1 0.53 Collections not deposited promptly and intact (no reason stated)
CTU, R7 1 13.95 Daily cash collections not remitted daily or on the next banking
day due to manual review of unreconciled report of collections
against actual collections, use of cash collection in releasing over
the counter payrolls and other emergency expenses while awaiting
replenishment of petty cash fund, among others
UEP, R8 1 2.68 Undeposited collections pertaining to calendar years 2004 to 2011;
AO was reassigned to another unit and required to explain in
writing and to deposit the amount but no response was received
CFCST, 1 3.51 Habitual delays in depositing and reporting collections
R12
SSCT, R13 1 5.26 Year-end balance of Cash-Collecting Officer account
Total 73 335.57
9.5.1.3 Unrecorded collections, bank accounts, bank deposits as well as check

disbursements due to payments thru banks, delayed preparation of Bank
Reconciliation Statements (BRS), non-submission by Cashier of necessary
documents to the Accountant, among others, in 25 agencies amounted to
PhP520.31 million.
226
Amount
Agency Condition/Reason
(in M PhP)
OP 15.15 Unrecorded credit memos and advices from various Philippine Embassies and
Consulates due to lack of details/documents
278.53 Unrecorded President’s Social Fund (PSF) - One Town One Project (OTOP)
Trust Fund, Trust Account of the PSF-Livelihood Assistance Program (LAP)
and OTOP Investments to OP from Presidential Management Staff (PMS)
in October 2014
GAB 4.06 Unrecorded special bank accounts with PVB and LBP
Philracom 0.32 Unrecorded collections and deposits of service income with the BTR;
deposited in the bank
BFP 0.90 Unrecorded deposit and bank account balance
BJMP 0.11 Unrecorded collections and deposits in ROs 1, 8 and 13
PNP 1.06 Unrecorded/undeposited collections of PNP CAR and PRO 8
PA 8.34 Unrecorded collections and deposits with LBP
BI 30.82 Unrecorded cash in bank in five bank accounts
PUP 0.93 Unrecorded deposits, credit/debit memos, adjustments, and interests earned
TUP 19.53 Unrecorded tuition fees/school charges paid thru the bank, debit memo,
unadjusted previous years’ reconciling items and other reconciling items due
to inadequate control mechanism to capture the data on time and persistent
delay in bank’s submission of on-line paying students list
POEA 6.38 Unrecorded collections and deposits from the POLOs and various Regional
Centers/Extension Units due to delay in the submission of Report of
Collections and Deposits (RCD)
TESDA 0.14 Unrecorded and undeposited collections, error in recording of collections and
deposits and non-sequential issuance of ORs; cash on hand with Collecting
Officer
PRC 0.03 Unrecorded collection from PRC Zamboanga; cash on-hand with Collecting
Officer
DOLE 113.52 Unrecorded Social Amelioration Program (SAP) Funds as trust receipts
deposited in the bank
CWC 0.68 Unrecorded collections of bid documents and fund transfers; already
deposited in LBP account
ICTO 5.90 Unrecorded bank deposits; reconciling items unrecorded for two years by
the Accounting Office
IPOPHIL 10.31 Various unrecorded deposits /remittance
DENR 8.40 Unrecorded Bank Accounts
0.45 Unrecorded receipts/deposits; deposited in the bank
EMB 2.05 Unrecorded Bank Accounts
0.14 Unrecorded Disbursements of the Eco-Savers Project
BSU, 0.60 Unrecorded deposits/credit memo by Accounting Office; recurring
R4A reconciling items
CTU, R7 0.32 Unrecorded collections and deposits of CTU-San Francisco Campus
LNU, R8 5.07 Undisclosed one current account for Payroll Fund maintained at DBP-
Tacloban Branch
EVSU, R8 3.04 DBP bank account unrecorded in the books
NMP, R8 2.74 Unrecorded funds received from DOLE representing financial assistance to
employees affected by Typhoon Yolanda deposited in a separate bank account
NEUST, 0.79 Unrecorded on-line collections due to lack of documentary basis
R3
TOTAL 520.31
9.5.1.4 Unaccounted variances between book and bank balances, GL and SLs
and/or Accounting and Cashier’s records, unrecorded reconciling items,
unreconciled balance since e-NGAS migration in 2004, among others, in the
aggregate amount of PhP3,430.07 million in 51 agencies.
a) Discrepancy due to non-preparation/delayed preparation of bank

reconciliation statement (BRS)
227
Amount
(in M PhP)
DND 77.33 Non-reconciliation of the book balance with the bank balances as of
December 2015 due to delayed submission of the bank statements
DILG 6.87 Unaccounted difference between book and bank balances due to non-
preparation of BRS
BFP 2.22 Unreconciled balances between the bank statements and the accounting
records due to absence of BRS
LRA 139.52 Absence of detailed actual book balances of three subsidiary bank
accounts of Land Registration Systems, Inc. (LARES) escrow
accounts; PNB-Mother Account without BRS
CHED 39.61 Unreconciled variance not immediately detected due to non-
preparation/error in preparation of BRS in three CHEDROs
TESDA 0.21 Unreconciled balance of Cash in Bank- Local Currency account of
Regions VI, X, XIII and NCR with the Bank balances due to delay in
bank reconciliation
NLRC 35.07 Unreconciled variance between book and bank balances in NLRC Main
and NCRAB due to absence of BRSs and SLs
DOH 5.91 GL and Bank confirmation difference of 11 bank accounts due to non-
preparation of BRS
PHIVOLCS 7.13 Unaccounted/unreconciled difference between book and bank balances
due to non-preparation/delayed preparation of BRS
PCIEERD 245.48 Unreconciled difference between book and bank balances due to
delayed preparation of BRS
ICTO 9.08 Unreconciled difference between book and bank balances due to non-
preparation of BRS
NMIS 0.27 Unreconciled book and bank balances due to delayed/non-preparation
PCAF 46.03 of BRS
DENR 53.55
BFAR 12.04
DAR 13.41
0.16 Unreconciled cash book and accounting records due to delayed/non-
preparation of BRS
CSU, R2 Not stated Unreconciled differences between book and bank balances due to
delayed/non-preparation of BRS
BISCAST 4.82 Variance between the book and bank balances due to failure of the
R5 Accounting Office to prepare the BRS
DEBESMSC 6.65 Unreconciled amount of the Cash-in-Bank-LCCA due to non-
AT, R5 preparation of BRS
BU, R5 24.76 Unreconciled difference of CIB-LCCA and bank balances due to failure
to prepare BRS
CNSC, R5 23.08 Discrepancy between book and bank balances due to failure to prepare
BRS
PSU, R5 0.01 Unreconciled difference between Check Disbursement Records
(CkDR), book and bank balances of CIB account of different PSU
campuses due to failure to prepare BRS
NMP, R8 2.33 Variance between the book and bank records due to management’s
failure to prepare the BRS
TOTAL 755.54
b) Variance due to unrecorded/delayed recording of reconciling items/

transactions
Amount
(in M PhP)
BBS 0.09 Accounting Section’s failure to reconcile the book balance with the bank
balance due to unrecorded reconciling items
NDCP 0.23 Understatement of book balance due to unrecorded reconciling items
noted in the Bank Reconciliation Statement
PVAO 508.77 Unreconciled balance between the books and the adjusted bank balances
due to various unrecorded transactions by the books
Napolcom 0.47 Unrecorded book reconciling items
228
Amount
(in M PhP)
PNP 0.46 Non-recording/adjustment of reconciling items
AFPGHQ 20.97 Identified reconciling items in AFPMATF
AFPCES 0.01 Unidentified/unrecorded reconciling items
BI 43.05 Unaccounted variance between book and bank balances due to failure to
record reconciling items; BRS not prepared/submitted promptly
VMMC 0.80 Unrecorded reconciling items
AFPGHQ 80.82 Non- recording of unidentified/unrecorded reconciling items
PA 0.87 Unrecorded reconciling items for more than one year
PNP 308.74 Difference between books and the amount confirmed by the LBP as of
December 31, 2015 due to unrecorded reconciling items by the books
NM 342.28 Unrecorded reconciling items
DOH 36.84 Unreconciled book and bank balances due to unrecorded reconciling
items
4.38 Difference between book and bank balances due to delayed recording of
transactions
0.03 Unrecorded/unadjusted reconciling items
0.95 Unreconciled CIB-LLA and book balances due to unidentified
reconciling items
23.55 Unrecorded book reconciling items and erroneous adjustment of
returned checks
PAGASA 0.03 Unreconciled CIB-LCCA and bank balance due to failure to record
reconciling items
ICTO 7.47 Unadjusted reconciling items and bank accounts already closed but still
maintained in the books of accounts
MIRDC 16.56 Overstatement of deposit on LCs due to failure to record reconciling
items
PCHRD 0.08 Unidentified reconciling items understated the book balance
DOST 1.95 Failed to reconcile the bank balance with accounting records due to
unupdated subsidiary ledger (SL)
NPDC 1.82 Difference between the bank and book balances due to unadjusted error
in prior years whose records were destroyed during Typhoon Ondoy
DOTC 0.90 Unaccounted difference between the balances per book and per bank due
to unrecorded/unadjusted reconciling items
NMIS 2.89 Unrecorded reconciling items in the Bank Reconciliation Statement
DAR 0.20
EMB 3.74
WVSU, R6 0.73 Failure of the Accounting Unit to take up previous years’ reconciling
items
15.17 Long outstanding Book/Bank reconciling items
ISAT U, 1.14 Long outstanding Book/Bank reconciling items
R6
SSC, R7 5.16 Various items for adjustments of the depository balance per books were
not taken up.
NSSU, R8 2.30 Net variance between the book and bank records due to management’s
failure to conduct timely and regular reconciliation
UEP, R8 0.70 Discrepancy noted between the subsidiary ledger and the General Ledger
due to reconciling items in the books
LNU, R8 2.76 Total overstated balances due to errors or omissions due to delay in
recording of transactions in the books, among others
VSU, R8 0.15 Reconciling items found in the Bank Reconciliation Statements
SSCT, R13 10.44 Unrecorded net adjustments understated the reported account balance
TOTAL 1,447.50
c) Unreconciled variances between records for various reasons
Amount
(in M Php)
DPWH 1,175.05 Unsubstantiated cash balance recorded under “Unreconciled Balance” SL
created since e-NGAS migration in 2004
229
Amount
(in M Php)
DOT 22.33 Unreconciled difference between the GL and Substitute Subsidiary Ledger
(SSL) due to non-maintenance of complete prescribed SL and non-submission
of AOs of bank statements/Cash/Check Disbursement Records on a monthly
basis
PRC 29.65 Material variances of the reported income from application of examinations
and registration of professionals due to timing differences in reporting of
transactions
TOTAL 1,227.03
9.5.1.5 Erroneous/incorrect recording of cash transactions in 19 agencies amounting to
PhP211.82 million and abnormal balance of (PhP29.92) million.
Amount
Agency Reason
(in M PhP)
NHCP 0.50 Erroneous recording of NCA reversion using the Accumulated Surplus account
instead of Subsidy from National Government account
GAB 2.80 Erroneous recording of receipts and reversal of NCAs and closing of Cash-
Treasury/Agency Deposit, Special Account to Accumulated Surplus at year-end
Philracom 0.49 Erroneous recording of prior years’ stale checks
OCD 0.11 Erroneous posting of entries in the books of accounts and unrecorded liquidation
in the General Journal (GJ) resulting in overstatement
VMMC 30.00 Double recording of fund transfer in the books overstating the cash account
balance
9.00 Erroneous recognition of Payroll fund balance understating the account
balance
AFPGHQ Not stated Double recording of one and the same LBP bank account under the Pension
Fund and General Fund
0.16 Erroneous treatment of a credit memo
NMIS 0.10 The Cash Collecting Officers under NG Books was not transferred to the
Regular Agency books.
PNRI Not stated Improper closing of Cash-Treasury Agency Deposit, Trust to Accumulated
Surplus/Deficit
DSWD 49.68 Inadvertent exclusion of the regular agency fund balance transferred to the
Foreign Assisted Fund in the computation of FOREX gain as of September 30,
2015
DOST 8.54 Erroneous recording of deposits
DOH 61.68 Errors and omissions resulting in the understatement of Cash accounts
6.98 Unidentified/Unaccounted balances
0.07 Errors/omissions in recording deposits and disbursements
ICTO 4.13 Net overstatement due to accounting errors in recording - CIB-LCCA
MIRDC 1.27 Outstanding deposit on LCs for the account set-aside for payment of calibration
and testing services
NVSU, R2 28.37 Special purpose/time bound cash advances of the Disbursing Officer were
accounted for and recorded under the account "Advances for Payroll”
CSU, R4A 0.70 Grants of Cash Advances for Operating Expenses were recorded as Advances to
Officers and Employees instead of Advances to Operating Expenses.
LNU, R8 7.24 Practice of issuing official receipts on collections made thru the on-line facility
aggregating P7,241,118.72, to record the same as cash receipts when no cash
was actually received
TOTAL 211.82
BI (29.09) Existence of abnormal credit balances
DOH (0.10) Negative balances
ASIST, CAR (0.71) Cash accounts credit balances due to errors in accounting.
BU, R5 (0.02) Abnormal balance of Cash-Collecting Officer
TOTAL (29.92)
9.5.1.6 Other practices of a number of agencies which affected the reliability of cash
balance such as:
230
No. of Amount
Practice
Agencies (in M PhP)
Unrestored stale checks at year-end. 19 90.24
Unreleased checks at year-end 11 110.82
Failed to prepare the monthly Bank Reconciliation Statements 21 -
Unbonded Collecting Officers/Accountable Officers, accountabilities 12 -
granted beyond the bond coverage or amount of bond paid not in
accordance with the provisions of Treasury Circular No. 02-2009
dated 06 August 2009, Revised Schedule of Premium Rates, Section 101,
PD No. 1445 and Section 66, GAAM, Volume I
Issuance of official receipts not in sequential order 1 -
Grant of cash advances exceeded the monthly requirement 2 -
Non-maintenance of cashbooks/cash register/subsidiary records 11 -
Grant/use of PCF not compliant with MNGAS/COA Cir. No. 97-002 7 -
Uncollected Guaranty cash deposits after cessation of contracts 1 0.25
Unidentified AGDB, bank account number and supporting documents 1 18.18
Unauthorized/unnecessary bank accounts 2 133.98
Unrecorded fund transfer to LGU 1 3.00
Absence of proper turn-over between Incoming and Outgoing 1 -
Accountable Officers at the Labor Assistance Center (LAC)
Recommendations
9.5.1.7 Require the Accountant to:
a) Orient the AOs on the rules and regulations on proper cash management and
reportorial requirements;
b) Review the RCDs of each Collecting Officers as basis for recording in the
books of accounts;
c) Review propriety of the cash account balances and trace the unaccounted
differences between the bank records and AO Cashbook/cash records.
Analyze, verify, confirm, reconcile and identify non-existing, negative,
unidentified, unreconciled, old or dormant or non-moving accounts;
d) Trace and/or identify all reconciling items and record in the books of
accounts unrecorded cash-in-bank balances, reconciling items, necessary
adjustments on the omissions/errors and improper recording of transactions,
as well as misclassification of accounts;
e) Observe the highest objectivity and consistency in the keeping of accounts

to safeguard against inaccurate or misleading information. Prepare the SL by
fund for each collecting officer to facilitate reconciliation of balance with
that of the general ledger;
f) Ensure that the Petty cash fund (PCF) granted is within the approved monthly
requirement of the office to prevent misuse of government funds. Require
the immediate return or refund of PCF balance which remained idle for a
period of two months pursuant to paragraph 5.7 of COA Circular No. 97-
002.
g) Demand restitution of misappropriated or undeposited government funds or

withhold payment of salary and other emoluments of the defaulting/erring
Special Disbursing Officer/s (SDO/s) commensurate to the amount of the
231
shortage or undeposited collections, and relieve him of his/her duties as SDO
without prejudice to the filing of the appropriate case.
h) Closely monitor and supervise prompt remittance and deposit of collections

and regular preparation of bank reconciliation statement (BRS).
i) Determine the nature of payments covered by stale checks to establish the

validity of the claims and effect the cancellation of these checks. Adhere to
the rules and procedures provided in Section 52, MNGAS, Volume I, Section
97, PD No. 1445, and GAFMIS Circular Letter No. 2002-001. Restore the
cash equivalent of the stale and unreleased checks at year-end to the cash
accounts and recognize the related liability accounts.
9.5.1.8 Require the Accountable Officer (AOs) and Disbursing Officers (DOs) to:
a) Apply for fidelity bond with the Bureau of the Treasury and/or for increase
in the fidelity bond premium to cover their maximum cash accountability,
if needed, to ensure government funds are properly secured and
safeguarded. Ensure renewal of fidelity bond before expiration, pursuant to
BTr Circular No. 02-2009 dated August 6, 2009.
b) Strictly adhere with pertinent provisions of COA Circular No. 97-002 on the
grant, utilization and liquidation of cash advances.
c) Establish proper coordination with the Accounting Section to ensure that all
unreleased checks at year-end are restored to the cash accounts to present
fairly the affected accounts in the financial statements. Strictly adhere to the
reportorial requirement on the preparation of Schedule of unreleased Checks
as prescribed under GAFMIS Circular Letter No. 2002-001 and submit the
same to the Accountant;
d) Observe the issuance of official receipts in numerical sequence and submit

copies of obsolete, spoiled and cancelled official receipts to the Auditor for
inspection and verification.
e) Deposit total collections daily and intact to the AGDB;
f) Stop payment of regular and recurring expenses out of the Petty Cash Fund
(PCF). Use Petty Cash Voucher for every payment made out of PCF to
ensure that all payments made through petty cash are authorized.
9.5.2 Receivables
Receivable account balances are unreliable due to significant amounts of

unliquidated cash advances and fund transfers, unsupported/undocumented
dormant accounts and erroneous recording contrary to existing laws, rules
and regulations which may result in substantial losses to the government.
9.5.2.1 Analysis of these receivable accounts disclosed the following conditions, in

material amounts:
232
No. of Amount
Condition/Reason
agencies (in B PhP)
65 Unliquidated cash advances (CAs) to officers and employees 5.65
56 Unliquidated fund transfers (except PS-DBM/PITC/GA) 75.83
47 Unsupported/dormant receivables 5.21
18 Unrecorded/Erroneous recording of CA liquidations/deliveries 0.74
8 Unrecorded/unbooked receivables 0.14
26 Errors in recording receivables/negative balances 2.74
7 Negative/abnormal balances of receivable accounts (0.14)
26 Unreconciled General Ledger (GL) and Subsidiary Ledger (SL) balances or 1.78
amounts per books and results of confirmations from records of
Implementing Agencies and Source Agencies
22 Unreconciled balances with PS-DBM/records disparity 3.81
23 Unliquidated advances to PS-DBM/PITC for procurement of commonly-used 8.42
office supplies and various equipment aged one month to more than ten years
40 Uncollected/unsettled receivables due to: 0.80
(a) non-availability of records and documents;
(b) failure to implement policies and guidelines such as stated in PAF
Management and Fiscal Letter No. 2005-01and BuCorr’ s “NO
PAY, NO CONNECTION” policy for electric and water bills of
officers and employees and private concessionaires, among others;
(c) unrefunded amount from PS-DBM representing excess payment;
and
(d) deficient accounting, monitoring and collection system of loan
programs.
5 Unrecouped Advances to Contractors 3.90
1 Overstatement of Other Prepayments account pertaining to the deposits made 0.37
to Petron Corporation representing amount of deliveries made that were not
credited due to the incomplete documents inconsistent with Section 4.6 of PD
1445
9.5.2.2 Other operational deficiencies noted, among others, follow:
No. of
Condition/Reason
agencies
5 Non-adoption of accrual method of accounting
9 Non-maintenance of SLs or errors in recording in SLs
1 Non-compliance of the disclosure requirements for Loans and Receivable accounts
under PPSAS 30
10 Internal control weaknesses such as grant of additional CAs to AOs with unliquidated CAs
or failure to monitor the frequency of CAs granted, unauthorized write-off, grant of CA even
without any program or activity design and drawn for expenses to be incurred in the ensuing
year
7 Failure to set up allowance for doubtful accounts or allowance for impairment in violation
of PPSAS 1, 21, and 26 and Section 66 of MNGAS, Volume 1
Recommendations
a) Require the AOs to liquidate their cash advances (CAs) within the
prescribed period and to refund immediately all unused balance. Stop the
practice of granting additional cash advances to AOs without liquidating the
previous cash advances granted to them.
b) For AOs who failed to settle their accounts after the prescribed period: (i)
withhold from their salaries and other emoluments the amount of
unliquidated CA/s, and (ii) undertake appropriate legal actions, if necessary,
particularly against those who are no longer connected with the Agency,
after due notice has been served.
233
c) Maintain an updated Subsidiary Ledgers (SLs), which shall contain the
details of the transactions, to support the corresponding controlling GL
accounts pursuant to Section 12 of the Manual on the New Government
Accounting System (NGAS), Volume II.
d) Verify the validity of dormant or unsupported receivables and assess the

status of long outstanding accounts. Exert effort to retrieve the documents
to support the existence of these receivables and undertake appropriate
actions to enforce its settlement. Revisit the policy on the issuance of
clearances to retiring/resigning officers and employees and hold
accountable the persons approving/signing the clearance of those personnel
with unsettled accountabilities. Avail of the remedies stated in COA
Circular No. 97-001 dated February 5, 1997, as last recourse.
e) Record immediately the necessary adjusting entries to correct the erroneous

recording or posting of transactions after thorough review/
analysis/verification, particularly on accounts with negative balances, to
ensure accurate and reliable presentation of account balances at year-end.
Disclose in the Notes to the Financial Statements all unrecorded receivables.
Strictly observe the accrual method in recording income as prescribed in
COA Circular Letter No. 2004-002 dated September 30, 2004 and Section
18 of the Manual on the NGAS, Volume I.
f) Closely coordinate with the DBM-Procurement Service/PITC on regular

reconciliation of the advance payments and deliveries. Install a monitoring
system on the Due from NGAs-PS/PITC DBM balances with aid of the
Agency’s Procurement Office. Prepare the necessary adjustments for
validated reconciling items. Make representation with PS-DBM/PITC to
apply the unsettled advances against future Agency Procurement Requests
(APRs) until said advances are fully exhausted before making another fund
transfer or demand refund of the amounts of undelivered
supplies/equipment to deter the huge accumulation of receivables at year-
end.
g) Demand settlement of other collectibles and continue sending demand

letters/follow-up letters to concerned debtors/lessees/proponents or
beneficiaries of loans under the Fishpond Lease Agreements (FLAs), SET-
UP, Student Assistance Fund Education (SAFE), Student Financial
Assistance Program (STUFAP), IGPs, among others, and exhaust all
possible remedies to enforce collection.
h) Exhaust all ways/means to recover advances granted to contractors with

uncompleted/terminated/rescinded/abandoned contracts in order to recoup
the amount/s and avoid loss of government funds. Apply the advances to
any unbilled work accomplishments in the case of completed projects to
close the same in the books of accounts.
i) Prepare the Schedule/Aging of Accounts Receivable as required under

Section 3.1, COA Circular Letter No. 2007-001 as basis for the
provision of yearly allowance for bad debts pursuant to Section 66,
MNGAS, Volume I. Set-up Allowance for Impairment – Account
234
Receivable/Impairment Loss- Loans and Receivables account based on
receivables collectability using factors such as aging of the accounts,
collection experiences, identified doubtful accounts, among others.
9.5.3 Inventories
The Inventory account balances of a number of agencies are unreliable due

to variance in records maintained by the Accounting and Property offices,
absence or irregular conduct of physical count, undocumented transactions,
non-recording of issuances of supplies and materials, and erroneous
recording, among others.
9.5.3.1 Review of Inventory account of NGAs disclosed the presence of the following conditions
affecting the accuracy of the year-end balances, in substantive amounts:
No. of Amount
Condition
agencies (in B PhP)
52 Variance between Accounting and Property records due to non- 12.00
submission of RSMI, inconsistency of book balance with RPCI or
between Stock Cards (SCs) and Supplies Ledger Cards (SLCs),
among others
34 Non-conduct of regular physical count of inventories 13.61
5 Unsubstantiated/undocumented inventories 0.14
8 Dormant, non-moving inventories for 1 to 10 years 0.38
25 Erroneous recording of inventory transactions 0.45
26 Non-recording of inventories issued/non-submission of RSMI 2.11
23 Non-observance of Perpetual Inventory method of recording 0.33
delivered/procured supplies; treated as outright expense
16 Unrecorded supplies 0.31
5 Unreconciled GL and SL balances -
16 Non-maintenance/non-update of subsidiary ledger cards -
9.5.3.2 Other practices by a number of NGAs affecting the reliability of inventory account
balances are non-maintenance of stock cards, overstocking of supplies, non-usage
of weighted average method, absence of duly acknowledged RIS, non-disclosure
requirements for Inventories under PPSAS 12, failure to submit Requests for
Relief, non-recording of the costs of transferred stocks, delayed disposal of old
stocks/inclusion of obsolete inventories or defective or expired items, and absence
of records/reports on inventories.
Recommendations
a) Determine the cause/s of the discrepancies between the book balance and
property records, undertake reconciliation of accounts, and record the
necessary adjustment in the books;
b) Conduct periodic review and reconciliation of balances, in coordination

with the Inventory Committee to enable the timely detection and correction
of errors;
c) Maintain the Supplies Ledger Cards (SLCs) in accordance with Section 12,
Volume II of the MNGAS and record all receipts of supplies and materials.
235
9.5.3.4 Require the Supply/Property Officer to:
a) Submit regularly the Report of Supplies and Materials Issued (RSMI)

and other required inventory reports to the Accounting Unit to support
the recording of consumed/issued supplies;
b) Adhere strictly to the established rules and regulations prescribed in

Section 65, MNGAS, Volume II relative to the conduct of physical
count of supplies and materials/inventories and update inventory records
in accordance with Section 41, MNGAS, Volume II.
c) Inspect and assess usable items and issue to various offices/units in need to
avoid further deterioration of the same. Dispose all obsolete and
unserviceable office supplies following the guidelines prescribed in the
GAAM and other existing regulations to free the stockroom of
unserviceable and obsolete items; and
d) Exert effort in locating the RSMIs and/or other records pertaining to the
outstanding balance of undocumented inventories, regularly monitor the
status and quantity of damaged item, and submit a monthly list of damaged
inventories, duly verified by the Auditor to the Disposal Committee for
proper disposal and to the Accounting Division for proper derecognition in
the books.
e) Supervise, monitor and control purchases of office supplies and other

inventories to avoid overstocking.
9.5.4 Property, Plant and Equipment (PPE)
The balances of PPE accounts of a number of agencies are unreliable due to

unrecorded or erroneously recorded transactions, failure to recognize
depreciation, or conduct physical inventory and prepare report thereon,
unaccounted variances in records of Accounting and Property offices,
among others.
9.5.4.1 Analysis of PPE accounts disclosed the following conditions:

No. of Amount
Condition
Agencies (in B PhP)
Unrecorded PPEs/failure to capitalize major repairs 56 33.93
Failure to recognize depreciation 26 0.31
Unrecorded disposal/donation/destroyed/lost PPE 19 0.27
Erroneous recording of transactions resulting in the overstatement or 64 11.75
understatement of accounts (net amount)
Undocumented/unsupported transactions 19 1.84
Variance between Accounting and Property records 102 223.78
Failure to conduct physical count of PPE 63 56.54
Unreconciled GL and SL balances 16 8.03
Dormant accounts 5 0.18
Undisposed unserviceable properties 47 1.77
Unutilized/idle properties for 1-10 years 10 0.09
Failure to insure PPE/Vehicle with GSIS 25 6.63
Undelivered vehicles/equipment from PS-DBM 5 0.52
236
No. of Amount
Condition
Agencies (in B PhP)
Non-existing/disposed assets still recorded in the books 10 0.04
Non-preparation/non-submission of RPCPPE; non-maintenance/non- 43 10.58
issuance of PPELC/ARE
Non-provision of allowance for impairment/failure to conduct annual test 14 -
for impairment
9.5.4.2 Other practices affecting the reliability of the PPE accounts are non-compliance
with existing laws, rules and regulations such as:
a) failure to register vehicles in name of NGAs/registered in the name of

agency personnel and/or private individuals or companies,
b) vehicles insured with private insurance firm,
c) untitled properties, non-processing of Deed of Absolute Sale and Transfer

Certificate of Title (TCT) in favour of the agency and non-payment of
taxes,
d) derecognition of lost assets from the books without the approved request
for relief from accountability, discrepancies/differences between COA
Evaluated Cost and the Contract Cost amounting to PhP28.49M, and
e) lapses in the adoption/implementation of the Guidelines and Procedures in

the Recognition and Derecognition of Infrastructure Assets (DO 176 series
of 2015), among others.
Recommendations
a) Take up the unrecorded PPE in the books with the corresponding

accumulated depreciations and update depreciation for all PPEs to present
an accurate and reliable balance of the PPE account in the financial
statements. Capitalize all major repairs/construction of structures.
b) Cause the derecognition in the books of all PPE items already

sold/donated/disposed/destroyed/lost duly supported with complete
required documents.
c) Regularly reconcile the accounting and property records, analyze the

discrepancies noted and effect the necessary adjustments to correct the
balances of the affected accounts. Exert effort to trace/account for the
unreconciled differences.
d) Reclassify unserviceable/obsolete and fully depreciated PPE to Other Asset

account. Request the Inventory/Disposal Team to assess the impairment
loss on the PPE reported as condemned/destroyed and the concerned
accountable officers to complete the required documents to support
requests for relief from property accountability of the lost property.
237
e) Disclose in the Notes to Financial Statements information on the status of
ownership of the properties by virtue of the R.A. 8498.
9.5.4.4 Require the Property Officer to:
a) Conduct the physical count of all PPEs in compliance with Section 490 (a)
of GAAM, Volume I, to be witnessed by a COA Representative, and
submit the inventory report not later than January 31 of the following year
in compliance with Section 66 of the MNGAS, Volume II.
b) Undertake regularly the required physical count of PPE and prepare

the RPCPPE to ensure that movements in the PPE accounts are
appropriately monitored and recorded.
c) Request appraisal of the properties to ascertain their correct values,

including donations and include the same in the Agency’s list of PPE.
d) Secure all the necessary documents to support the derecognition by the

Accounting Office of all donated/disposed/destroyed/lost properties from
the books of accounts.
e) Prepare and submit Inventory and Inspection Report for Unserviceable

Property (IIRUP) to the disposal committee for inspection and appraisal.
Cause the immediate disposal of unserviceable PPEs following the
requirements of Section 79, PD No. 1445 to prevent further deterioration
of the assets and recover the salvage value from its sale.
f) Prepare and maintain ARE for all the properties and equipment issued, and
renew the same every three years or every time there is a change in
accountability in compliance with Section 47, Volume I and Section 56,
Volume II of the MNGAS.
g) Maintain and complete the details of the PPELC for reconciliation,

monitoring, and control purposes to serve as basis for reliable comparison
of balances with the property records and establish the accuracy of recorded
balances.
h) Coordinate with the Accountant as regards various insurable assets for

insurance with the GSIS.
i) In the case of lost properties, require the accountable officers concerned to

immediately replace the lost property of the same specification or pay the
value of the property at the time of loss.
9.5.4.5 Require the concerned officials to:
a) Create an Inventory Committee (IC) which shall conduct and complete the
physical count of all PPEs and prepare the RPCPPE duly reconciled with
the accounting and property records.
238
b) Monitor on-going/completed projects and undelivered procurements from
PS-DBM/PITC. Complete the necessary documentation and furnish the
Accounting Division for proper recording of transactions. Follow-up the
delivery of the vehicles/equipment, particularly items with delayed
deliveries of over two years and take appropriate action in case of inaction
on the part of PS-DBM/PITC.
c) Cause the immediate titling of the parcels of land in order to assure the
government of its absolute ownership and ensure proper recording in the
books of the Agency based on market values as reflected in the tax
declaration/contract price in the Deed of Sale.
d) Strictly adhere to the laws, rules and regulations on safeguarding of the

agency’s assets and ensure that all resources are used for the purpose for
which it was intended.
e) Cause the immediate registration with LTO of vehicles owned by the agency
otherwise, return the subject vehicles to the registered owner and stop
further incurring expenses thereof as expenditures relative thereto is
irregular.
9.5.5 Investments
The validity and correctness of the Investment in Stocks account balances

of three agencies as of 31 December 2014 is doubtful since investment
amounting to PhP3.75 million was dormant for several years in two
agencies and remained undocumented/unsupported while in another case,
Management failed to undertake valuation and appraisal of investments
amounting to PhP942.91 million at year-end contrary to PPSAS No. 29.
Recommendations
9.5.5.1 Require the concerned officials to:
a) Take appropriate actions to document the dormant, long-term investments

of PSU and MMDA.
b) Conduct regular valuation and appraisal of PCGG’s financial assets at year-

end to determine the appropriate value or impairment loss, if any, as
required under PPSAS No. 29. Formulate and implement monitoring
policy to ensure that investments including dividends thereon are properly
accounted and recorded and provide adequate disclosures in the Notes to
FS pertaining to the account.
9.5.6 Intangible Assets/Other Assets (BTr)
Other Asset accounts of DOST amounting to PhP32.79 million cannot be

relied upon due to unreconciled accounting records and Inventory and
Inspection Report on Unserviceable Properties (IIRUP) while prepayments
of DOH were understated. Likewise, Intangible Assets balances of six
other agencies are unreliable due to:
239
a) Inclusion of dormant amount for a period of 20 years and unrecorded
withdrawal on Letters of Credits;
b) Unliquidated/unwithdrawn DLCs;
c) Provision of residual value, instead of zero, contrary to Paragraph 99

of the PPSAS No. 31;
d) Unrecorded rights of television episodes with initial payment made to

CBN Asia, Inc.; and
e) Erroneous recording of computer still not in use and purchase of ESRI

Enterprises Licenses Agreement.
Recommendations
a) Thoroughly analyze, verify, confirm, reconcile, identify and account the

discrepancies/ deficiencies using the available records and make necessary
adjustments in the books. Henceforth, observe the highest degree of
objectivity and consistency in the keeping of accounts to safeguard against
inaccurate or misleading information. Comply with the Accounting policy
for intangible assets set forth in PPSAS No. 31.
b) Cause the submission of documents to liquidate the outstanding DLCs and

immediately record the same in the books. Install and implement an
effective monitoring system on contracts covered by DLC, to ensure that:
(i) the conditions of the contracts are strictly complied by the
suppliers/contractors; (ii) appropriate and prompt actions are initiated
against erring/delinquent suppliers/contractors; (iii) documents such as
delivery receipts, invoices, Inspection and Acceptance Reports, and similar
others are immediately prepared and submitted to the Accounting Services;
and (iv) liquidation documents are promptly recorded in the books.
c) Create a team to locate the pertinent documents necessary for the

liquidation of dormant letters of credit.
d) Record the rights over the produced television materials under Intangible
Asset account and designate an Accountable Officer responsible to
safeguard the film/television program (episodes) in optical media format
for safekeeping and require the issuance of Acknowledgement Receipt of
Equipment to accountable officer.
9.5.7 Liabilities
Liability account balances of a number of agencies cannot be relied upon

as these payables included long outstanding payables with no valid claims,
or unsubstantiated payables, or with unreconciled GL and SL balances or
SL not at all maintained, or agency books and results of confirmations with
the third parties, or unrecorded or erroneously recorded transactions.
240
No. of Amount
Condition
Agencies (in B PhP)
Dormant/long outstanding payables unsupported by required 51 20.22
documents
Unrecorded/erroneously recorded payables 49 8.13
Unreconciled GL and SL balances 9 0.56
SLs not maintained 15 1.52
Discrepancies between amounts per books and results of 5 7.50
confirmation/schedules 1 (21.32)
Negative/abnormal payable balances 18 0.14
Other practices affecting the reliability of the Liability accounts include

unrecognized accrued liabilities for goods and services or non-accrual of
government shares of Retirement and Life Insurance Premiums (RLIP),
Employees Compensation Insurance Premiums (ECIP), PhilHealth and Pag-
IBIG contributions, recognizing liability for professional fees without written
contract, unliquidated trust liabilities and non-maintenance of GLs and SLs.
Recommendations
a) Review all outstanding and dormant payables. Revert payables which are
undocumented/unsupported with valid claims and those aged two years or
more in accordance with Section 3.2(b) of COA Circular No. 99-004 dated
August 17, 1999 and COA-DBM Joint Circular No. 99-006 dated
November 13, 1999.
b) Effect the necessary adjustments on the omissions/errors and improper

recording of transactions, as well as the misclassification of accounts to
correct the reported balances of the affected accounts in the FSs in
conformity with PPSAS No. 1 on the qualitative characteristics of
financial reporting.
c) Strictly enforce the submission of supporting documents prior to the

recording of transactions to minimize payables without valid claims.
d) Maintain subsidiary ledgers (SLs) to support controlling General Ledger

(GL) balances pursuant to Section 111 of PD No. 1445 and pertinent
provisions of the MNGAS. Exhaust all efforts to trace the transactions
pertaining to the unreconciled differences between the GL and SLs as well
as the negative/abnormal balances. Take up immediately the necessary
adjustments to present an accurate Payable account balances at year-end.
e) Reconcile the balance of Due to NGAs with the records of the Source
Agency to establish the correct balance of the accounts and revert any
unutilized funds to close the liability account. Monitor strictly the trust
liabilities to GSIS, BIR and HDMF, among others, and ensure that
contributions withheld for these agencies are remitted within the
prescribed period.
241
f) Comply with the provisions on accrual accounting in accordance with
PPSAS 1 and recognize accrued liabilities for all the goods delivered and
services rendered at year-end.
9.5.8 Revenues
Revenue account balances of a number of agencies are deficient due to

uncollected, unrecognized/unrecorded or erroneous recording of income
and Subsidy from National Government account, absence of required
documents, and use of cash basis instead of accrual method of accounting,
among others.
Amount
(in M PhP)
PA 2.86 Unrecorded Interest Income
NBI 620.92 Non-submission of Reports of Collections and Deposits and supporting
documents such as ORs and DSs for Certification and Clearance Fees
NM 112.00 Unrecorded donations received by the Philippine National Museum
Foundation, Inc. (PNMFI) from third party benefactors and
acknowledged by five (5) resolutions issued by the NM Board of Trustees
(BOT) and donated technical services provided by private contractors
POEA 13.31 Unreliable Balik-Manggagawa Online collections due to insufficient
information/data
PCAF 1,167.16 Dormant collection for sale of commodities under NAFC‘s 2KR program
in 2001 recorded under Miscellaneous Liabilities and Deferred Credits
prior to creation of PCAF
IPO 10.31 Non-recording of net collections already reflected in the bank statements
BSU, - Unaccounted income from consignment of veterinary supplies and
CAR materials, without authority from the Governing Board, due to non-
maintenance of record of consignment transactions
KASC, - Non-charging of rental/lodging fees for use of SUC cottages and
CAR dormitories
UA, R6 0.02 Outstanding collectibles excluding unbilled rentals/water and electric
consumption from private concessionaires
UEP, R8 0.20 Unaccounted use/sale of 31,800 liters of purified water produced by the
UEP Water Refilling Station resulting in loss of income
NMSCST, - Foregone tuition fees due to exemption granted to enrolled dependents of
R10 incumbent barangay officials outside the Province of Misamis Occidental
USeP, R11 0.95 Non-imposition of 5 percent surcharge for delayed collection of monthly
rental from 17 lessees of commercial stalls/canteen as stipulated in the
Lease Contract
BTr 5.89 Erroneous recording of the remittance for the compensation of the
understatement of transfer price of Northern Cement Corporation (NCC)
to NG as income
0.66 Erroneous assessment of Fidelity Bond premiums resulting in a net
understatement of Fidelity Insurance Income
TESDA 14.47 Non-recognition, understatement and loss of income
PAGASA 7.33 Erroneous recording of deposits/payments of import duties and taxes
imposed by the BOC as Other Miscellaneous Income
NPDC 7.62 Various collections treated as trust liability instead of income
DOT 112.00 Erroneous recording of the DOT share in the DFPC net income and
remittance to the TPB overstated Subsidy from Other Funds
5.74 Non-translation of foreign currency balances using the closing rate and
non-recognition of gains in FOREX
DOTC 9.12 Unrecorded gain on foreign exchange (FOREX)
MPSPC, 11.16 Understatement of Subsidy from National Government due to transfer of
CAR cash allocations from MDS accounts to Trust Fund and utilization thereof
UNP, R1 - Tuition and other fees from foreign students in dollars recognized as Trust
liabilities
TSU, R3 6.08 Unrecorded rent income and deferred income from CYs 2012-2015
BPSU, R3 0.90 Collections from sale of bid documents recognized as Other Business
Income instead of Trust Receipt/Liabilities
242
Amount
(in M PhP)
SLSU, 0.01 Incorrect computation/billing /charge/application of room rates, resulted
R4A in under collection of income from hotel operations
0.09 Lost opportunity to generate projected annual net income due to
unrehabilitated fishpond property
LPSU, 254.42 Improper recording of funds received
R4A 25.29 Non-maintenance of subsidiary ledgers for income and disbursements of
the Graduate School, a self-liquidating unit of the SUCs
PCAARR 4.04 Receipt of funds for the use of the buildings and facilities and fees
D, R4A imposed for board and lodging recorded as Other Payables
FPRDI, 2.25 Testing fees for services rendered recorded as Other Payables
R4A
CNSC, R5 0.04 Unreported sales on account on piggery project
CapSU, 1.90 Income from Income-Generating Projects (IGPs) treated as trust receipts
R6
LNU, R8 20.45 Misclassification of student fees and other school fees as Other Service
Income and Other Payables
PIT, R8 0.16 Understatement of Subsidy from National Government due to debits of
refunds
PIT, R8 4.41 Erroneous Account Receivables adjustments recorded under the Tuition
Fee account and inclusion of income for the ensuing year without closing
to the Other Deferred Credits account
JRMSU, 0.28 Understatement of rent/lease income due to non-accrual of receivables
R9 9.65 Erroneous recording of School and Tuition Fees in various campuses and
unrecorded interest income
USeP, R11 22.26 Overstatement of Income due to non-adjustment of Income from Tuition
Fees corresponding to the ensuing year to Other Deferred Credits
BPSU, R3 - Non- adoption of the accrual method of recording revenues
RSU, R4B 0.23
NSU, R8 -
VSU, R8 -
SKSU, -
R12
BTr 1.00 Variances between reported income per Authority to Accept Payment
(ATAP) and per deposit slips (DS) and related proof of payments in BTr-
NCR and RO 1
PNU 29.77 Improper recording of collections from review fees treated as trust
receipts
ASC, 2.79 Income treated as revolving fund; canteens/commissaries’ operation
CAR without authority from Board of Trustees
KASC, 59.70 Non-observance of disclosure requirements for Revenue from exchange
CAR transactions under PPSAS 9
NEUST, 0.27 Sale of books of a private publishing collected by the SUC; income
R3 sharing scheme is not covered by MOA
ASU, R6 17.16 Absence of daily report of sales of IGPs to support collection and
remittance of income
Recommendations
9.5.8.1 Require concerned officials to:
a) Prepare and submit the Record of Collections and Deposits with

supporting copy of Official Receipts (ORs) and DSs/RAs to ensure
correctness and completeness of recorded collections and income. (NBI)
b) Require the National Museum Board of Trustees to comply with Section

63, Chapter 3, PD No. 1445 and account all the moneys and property
received from the Philippine National Museum Foundation, Inc.
(PNMFI). Determine the total value of all donations received by PNMFI
in behalf of the National Museum and take up the necessary accounting
243
entries. Submit all sponsorship contracts by third party benefactors and
the contracts of PNMFI with technical service contractors.
c) Intensify collection of rental/lease fees, tuition fees and other uncollected

revenues, book-up necessary adjustments on unrecorded/erroneously
recorded income-related transactions such as surplus or deficit from the
resulting currency exchange differences, reclassification to proper
accounts, recognition of deferred or earned rental, among others and
ensure that the book entries are duly supported by required documents.
d) Strengthen the internal control on revenue collection and monitoring as

well as provide a timely billing statement and other documents to collect
fees, rents and other income due to the agency/entity. Adopt the accrual
method of accounting to properly account for the income during the year.
e) Immediately deposit to the account of the BTr unremitted

income/collections as well as unutilized cash allocations in compliance
with Section 44, Chapter 5, Book VI of EO No. 292, series of 1987,
Executive Order No. 338 series of 1996, and Section 65 of PD 1445.
Discontinue the practice of setting up obligations not yet incurred and
establishing a revolving fund pursuant to Sections 3 and 5, General
Provisions, FY 2015 General Appropriations Act. Strictly adhere with
the provisions on UACS Manual on the definition of Revolving Funds and
Trust Receipts.
9.5.9 Expenses
A number of agencies incurred expenses which are considered

unnecessary, excessive, extravagant, illegal or irregular contrary to
existing laws, rules and regulations.
9.5.9.1 Salaries/remuneration and allowances granted either without legal basis

or in amounts exceeding the prescribed limitations amounting to
PhP2,286.52 million.
No. of Amount
Condition/Reason/Remarks Agencies (in M PhP)
Grant of Collective Negotiation Agreement (CNA) incentive exceeding the 10 40.43
approved rate of Php25,000 under Administrative Order No. 135 and Section
4.2.3 of DBM Budget Circular No. 2015-2, or without authority
Unauthorized salaries and allowances or amounts exceeding the prescribed 73 910.03
limitations and existing guidelines
Expenses/payments not duly supported with required documents 69 1,048.40
Payments made in excess of the prescribed rate/beyond the allowable limit like 17 44.92
travelling expenses, extraordinary and miscellaneous, seminar/training fees,
monetization, among others.
Other unauthorized, unnecessary, excessive expenses such as services of Legal 26 242.74
consultant without written concurrence of COA, foreign travel not in accordance
with EO No. 248-A, continuous subscription of postpaid plans and provision of
prepaid loads despite availability of PLDT landlines, double/multiple payments
of benefits to student- grantees, excessive payments for use of
printer/scanner/fax, grant of service award without legal basis; payments to
provident fund, payments for consultancy services, among others
TOTAL 2,286.52
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9.5.9.2 Procurement not compliant with the provisions of RA No. 9184.
No. of Amount
Condition/Reason/Remarks Agencies (in M PhP)
Procurement of goods, services and equipment without public bidding 16 271.21
Procurement thru alternative mode of procurement like negotiation/direct 10 10.16
contracting, shopping, or exclusive distributorship without complying with the
conditions stated under RA No. 9184
Procurement of common-use supplies not made with PS-DBM 15 193.84
Procurement of goods, services and infrastructure projects not in the Annual 18 1,477.46
Procurement Plan (APP)
Contract awarded despite lack of supporting documents/deficiencies 23 2,963.56
Non-posting of requirements for procurement, quotations, etc. in PhilGEPs 11 53.72
website and other site provided under RA No. 9184
Splitting of contracts or award of several purchase orders to one supplier for 7 23.70
the same procured items
Deficiencies in BAC set-up/composition, proceedings/requirements 7 -
Recurring imposition/non-imposition of liquidated damages manifest non- 6 141.05
compliance of time schedule by contractors
Other violations of the provisions of RA No. 9184 such as inefficient planning 7 38.44
of procurement, non-deduction of mandatory retention on project cost or release
of the same without certificate of final acceptance, absence of warranty security
and non-submission of Procurement Monitoring Report to GPBB
9.5.9.3 Erroneous recording/misclassification of accounts or failure to record

expenses resulting in either overstatement or understatement of expense
accounts.
Amount
Condition Agency
(in M Php)
Monthly allowances paid to OSG officials/employees rendering services to NLP NLP -
were charged against Maintenance and Other Operating Expenses (MOOE)
Advance payments of property insurance unrecognized as prepayments Philracom 0.02
Erroneous recording of liquidation (PS-DBM) DILG 0.03
Recording of procured office supplies as outright expense 8.93
Errors in recording/posting of the expenses incurred from Travelling - Local OCD 2.12
and Training
Erroneous recording under account Advances for Operating Expenses of cash DOJ 2.07
advances for special purpose/time bound undertaking
Non-compliance with PPSAS on Leases of five computers PCGG 0.20
Payment of CNA recorded under Office Supplies Expenses and Salaries and TUP 1.98
Wages accounts
Unexpended cash advance on ESGP-PA recorded as liquidated 0.05
Erroneous recording of fund transfers to NGAs, LGUs and SUCs. PCAF 20.41
Misclassification of Longevity Pay and Consultancy Services accounts NMIS 9.26
Use of inappropriate accounts DAR 367.02
Tokens, representation/other extraordinary and miscellaneous expenses charged DOST 0.10
to EME
Improper classification and recording of regular operating expenditures POPCOM 7.99
Transfer of scholarship funds from the General Fund to Trust Fund recorded as BSU, 9.78
outright expense CAR
Financial Assistance to grantees of Expanded Students’ Grants-In-Aid Program CBSUA, 6.32
for Poverty Alleviation (ESGP-PA) erroneously charged to Donations account R5
Cost of sales erroneously charged to Food Supplies Expense ASU, R6 6.49
Misclassification of Food Supplies Expense and other expense accounts 3.68
RATA mischarged to Representation Expense and Transportation and Delivery 1.40
Expense
Expenses for meeting and conference erroneously recorded as extraordinary and SSC, R7 0.03
Miscellaneous Expenses (EME).
Incorrect accounting entry taking up the transfer of fund from 101 to 184 under BSC, R9 0.18
Scholarship Expense account ZCSPC,
R9
245
Amount
Condition Agency
(in M Php)
Incorrect accounting entries taking up income of prior year and correcting entry ZSCMST, 1.94
made closing the Scholarship Expense account. R9
Some accounts not properly presented in the agency’s financial statements in ZCSPC, -
accordance with Revised Chart of Accounts for National Government Agencies, R9
Non- recognition of expenses JRMSU, 1.60
R9
Insurance premium recorded as outright expense RDC, R8 0.01
Erroneous accounting entries – Scholarship Grants/Expenses LNU, R8 5.31
NSU, R8 11.34
Unclassified expenses lumped under Other MOOE ESSU, R8 -
Use of improper accounts resulted in overstatement of Prepayments ASSCAT, 1.49
R13
Unrecorded supplies issued NMIS 0.10
Unrecorded liquidation by the Philippine International Trading Corporation BOI 5.59
(PITC)
Unrecorded fund transfer to the Procurement Service DAR 23.16
TOTAL 498.60
9.5.9.4 Other expenses incurred in violation of existing laws and regulations.
Amount
Reason/Remarks Agency
(in M Php)
Procurement of services of private supplier without authority by the head BCS 0.20
of the agency or certification from the National Printing Office re ISCOF, 0.09
inability to accept the printing service R6
Non-maintenance of subsidiary ledgers/separate book of accounts for ESSU, Not stated
ESGP-PA /TDSP R8
SDSSU, Not stated
R13
Several expenditures were either not within the APEC National DOT 3.42
Organizing Council (NOC) allocated budget chargeable against DOT
regular budget or pertinent DVs and supporting documents were not
submitted
Expenditures charged against funds sourced from the DOT share from 160.83
the net income of Duty Free Philippines Corporation not covered by a
Special Budget duly approved by the President, in violation of Section 2
of the Special Provisions of the GAA for FY 2015
Various infrastructure projects implemented and equipment purchased DOST 2.10
without corresponding budget for capital outlay
Expenses incurred not in accordance with the activities funded DAR 6.22
Discrepancies noted between the Approved Budget and the budget BU, R5 7.80
recognized in the books of the University for Usable and Fiduciary
Income, among others
Appropriation intended for the purchase of elevator used to modernize LRA 7.00
the existing elevator without authority from DBM
Overpayments/overremittance to GSIS or MERALCO PCUP 0.03
MPC 0.12
Penalties incurred due to late registration of motor vehicles in CAB and PAF 0.38
BAB and surcharge due to late payments of electric bill (PAF) and late ESSU, 0.21
filing of electronic tax returns (eReturns) ranging from 1 to 91 days to R8
BIR
Unauthorized charges from Fund Transfers DOST 0.11
Transactions disadvantageous to the government: PPSC 4.04
1. The PPSC could have saved an estimated cost of PhP4.04M for CY
2015 representing honoraria of in-house and guest instructors had the
concerned training/centers reviewed and evaluated the total number of
trainees admitted before the start of the class/course
2. Memorandum of Agreement (MOA) entered into by and between the PNP 0.97
PNP and Public Safety Mutual Benefit Fund, Inc. (PSMBFI) is
246
Amount
Reason/Remarks Agency
(in M Php)
disadvantageous to the agency due to increased maintenance and other
operating expenses by PNP
3. Procurement thru public bidding of various spare parts for BuCor BuCorr 0.19
vehicles was overpriced
4.Payments to various contractors for the civil works and suppliers of DOTC 95.19
goods/materials for the Kayo ang Boss Ko (KBK) Toilet Facilities
Improvement Project are the subject of suspensions/ disallowances
in audit due to the manner of procurement by which the contract of civil
works was separated from the supply of goods/materials
5. Procured mangrove propagules higher in cost than standard rate by BFAR 0.52
P0.35
Purchases were supported with altered and fabricated receipts BSU, 0.08
CAR
IfSU, 0.15
CAR
Unauthorized payroll deductions for private lending organizations/non- NSU, R8 4.84
government lending institutions
ESSU, 0.78
R8
Non-disclosure in the Notes to FSs of restatements of comparative PCW Not stated
amounts and opening balances of prior period accounts (PCW) and MMDA Not stated
information on sources of funds for the acquisition of Disaster Response
and Rescue Equipment (MMDA)
Recommendations
9.5.9.5 Require concerned officials to:
a) Comply with COA Circular No. 2012-003 which provided updated

guidelines for the prevention of irregular, unnecessary, excessive,
extravagant and unconscionable expenditures.
b) Strictly adhere with the provisions of the Revised IRR of RA No. 9184
particularly on:
(1) Conduct of public bidding on procurement of goods and services unless

allowed under Rule XVI providing Alternative Method of
Procurements;
(2) Preparation and submission of APP and PPMP in the prescribed format,
including all the necessary/required data;
(3) Bidding of procurements/projects on a quarterly basis in accordance

with the approved Physical and Financial Plan as provided under the
IRR of RA 9184. Piece-meal procurements, unless duly justified, shall
be avoided.
(4) Procurement of common use supplies from the Procurement Service

(PS)-DBM as also provided in Executive Order No. 17 dated July 28,
2011; and
247
(5) Standards set for preparation and implementation of contracts like
deducting 10% retention on project costs, as a safety net, or imposing
liquidated damages for unfinished projects beyond the contract duration.
c) Stop the practice of granting allowances without legal basis or in excess of

the allowed limitations prescribed under existing laws, rules and regulations.
Strictly adhere with the provisions of General Appropriations Act, FY 2015,
and other existing laws and regulations on the grant/payment of personnel
benefits.
d) Submit legal basis for the grant of suspended/disallowed salaries and

allowances otherwise, demand refund of the full amount.
e) Ensure complete supporting documents to validate claims before processing

payments; and
f) Take up necessary adjustments in the books to reflect accurate balances of

expenses in the financial statements at year-end.
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AUTONOMOUS REGIONAL GOVERNMENT (ARG)
AUTONOMOUS REGION IN MUSLIM MINDANAO (ARMM)
SUMMARY OF SIGNIFICANT AUDIT OBSERVATIONS AND
RECOMMENDATIONS
CY 2015
1. 120 school buildings with a contract cost totaling P177,632,862.31 under the
DepEd School Building Program (SBP) for CY 2011 implemented by the Office
of the Regional Governor (ORG-ARMM) and 682 classrooms under SBP for CY
2012 implemented by DepEd-ARMM remained unfinished as of December 31,
2015 in violation of the provisions of the signed Contract Agreement between the
Contractors and the ORG-ARMM.
 Conduct inspection/evaluation on the uncompleted projects to determine their

present existing conditions and status whether the projects are being utilized or not
indicating the reasons for non-utilization.
 Explore all the possibilities on how to make use of the projects to recover part of
its cost to prevent the projects from further deterioration and damage.
 If delay cannot be fully justified, impose liquidated damages and terminate or

rescind the contracts and enforce appropriate legal action against the concerned
contractors.
2. Fund transfers from ORG-ARMM and three (3) Regional Government Agencies
(RGA) of ARMM: DAF-ARMM (Department of Agriculture and Fisheries),
DSWD-ARMM and DILG-ARMM to various Implementing Agencies (IA)
totaling P2,170,771,600.50 remained unliquidated as of year-end contrary to
COA Circular No. 94-013 dated December 13, 1994 and COA Circular No. 2012-
01 dated June 14,.2012.
 Require the concerned RGAs, Local Government Units (LGUs), OUs, and
NGO/POs to direct their respective Accountants to submit the RCI and RD
certified correct by the Accountant, approved by the Head of the IA, and duly
audited by the Auditor of the IA; Copy of Credit Notice issued by the Auditor of
the IA and Copy of OR issued for the refund of unexpended/unutilized balance of
fund transferred to the Accounting Unit in pursuant to item 3.1.3 of COA Circular
2012-001 dated June 14, 2012 and items Nos. 4.6 and 5.4 of COA Circular No.
94-013 dated December 13, 1994, respectively.
 Further, issue demand letters to the IAs and require them to submit Reports of
Expenditures relative to the disbursements of funds duly verified by the Auditor
and to strengthens the monitoring and control collaborating closely with the IA to
effectively enforce the liquidation of outstanding balances for the proper
administration of the program or projects funds
 For DSWD-ARMM, require the managing director of the Habitat for Humanity
Foundation Incorporated to liquidate the fund transferred and/or return the
249
undisbursed fund to the DSWD-ARMM, in accordance with the COA Circular
No. 94-013 dated December 13, 1994, COA Circular No.2012 dated June 14,
2012 and the MOA.
3. Fund transfers from DA-OSEC, Central Office, Quezon City, totaling

P278,516,311.21 remained unliquidated as of December 31, 2014 in the books of
DA-OSEC- Central Office.
 We recommend to DAF-ARMM that, since the funds is part of the Disbursement

Acceleration Program (DAP) which was declared unconstitutional by the Supreme
Court, to comply to COA Memorandum No. 2015-005 dated March 30, 2015 for
the immediate liquidation of the fund transfers totaling P273,646,377.17 (per DA-
OSEC, records, as of December 31, 2014) and immediately refund/return the
unutilized and/or unobligated balance out of the fund transfers to Bureau of
Treasury.
4. The Fund transfers by ORG-ARMM to LGUs and DPWH-ARMM for the

construction Women Peace Centers funded out of the OPAPP, Disbursement
Acceleration Program (DAP) totaling P14,021,838.66 remained unliquidated as
of December 31, 2015.
 Since the project fund is part of the DAP which was declared unconstitutional by
the Supreme Court, we recommended to require the Provincial Government of
Lanao del Sur and DPWH-ARMM to comply to COA Memorandum No. 2015-
005 dated March 30, 2015 for the immediate liquidation of the fund transfers and
for the ORG-ARMM to immediately refund/return the unutilized and/or
unobligated balance out of the fund transfers to Bureau of Treasury.
5. The unutilized/unobligated balances of DAP fund and other funds of DSWD-

ARMM and BFAR-ARMM totaling to P781,403.82 and P2,362,088.50,
respectively, remained un-remitted to the Bureau of Treasury as of December
31, 2015 contrary to COA Memorandum No. 2015-005 dated March 30, 2015.
 We recommended that BFAR-ARMM and DSWD-ARMM immediately

refund/return the unutilized and/or unobligated balance out of the fund transfers to
Bureau of Treasury.
6. Amount utilized totaling P47,996,453.94 for Gender and Development (GAD)

program by at least 14 RGAs is less than the prescribed 5% of their 2015 budget
to implement GAD plans contrary to Section 34 (2) of the General Provisions of
the 2015 General Appropriations Act and paragraph 6.1 of PCW-NEDA-DBM
Joint Circular No. 2012-01 thus, depriving the intended beneficiaries of the
benefits due to them.
 We recommend to formulate GAD plan designed to address gender issues within

their concerned sectors or mandate and allocate at least five percent (5%) of their
budget pursuant to Section 34 of the General provision of 2015 GAA and
Paragraph (6.1) of PCW-NEDA-DBM Joint Circular No. 2012-01 and ensure that
250
the utilization of GAD Budget are in accordance with the GAD Plans and
evaluated based on the GAD performance indicators identified by said agencies.
7. Cash Advances totaling P31,534,290.20 remained unliquidated as of December

31, 2015 in violation to Section 89 of PD No. 1445 and Item 5.8 of COA Circular
No. 97-002.
 Require all concerned accountable officers to immediately settle their accounts

and strictly comply with the provisions of Section 89 of P.D. No. 1445 and Item
5.8 of COA Circular No. 97-002;
 Exhaust all possible means to locate the whereabouts of officials and employees
who are no longer connected with the Auditee and require them to immediately
liquidate and/or refund their unliquidated cash advances.
 Require the liquidation of outstanding cash advances by retired/separated

employees prior to and as a condition to the payment of any claim or issuance of
the clearance.
 Desist from paying honoraria and allowances of detailed government officials out
of your cash advances. Authorized honoraria and allowances shall be remitted to
their mother agency to make the payments.
 Require the Accountant of DAF-ARMM to make the necessary adjustments to

correct the balance of the account – Advances to Special Disbursing Officers in
the financial statement.
8. Audit of Cash in Bank-LCCA on DOH-ARMM amounting to P229,240.00 have

not been reverted to the National Treasury or returned to the grantor, thus,
depriving the government of the use of the funds to implement programs and
projects and exposing funds to possible misuses. These accounts might be
considered a dormant account/unnecessary cash in bank account since it
remained unremitted to the National Treasury for five (5) years.
 We recommended for the management to comply with the provision of EO No.

338.
9. The accuracy of the reported balance of Cash in Bank – Local Currency,

Current Account, totaling P10,706,334.23 as of December 31, 2015 cannot be
ascertained due to the absence/delayed submission of Bank Reconciliation
Statement (BRS), in violation to Section 74 of P.D. 1445, COA Circular 96-011
dated October 2, 1996,COA Circular No. 92-125 A dated March 4, 1992.and
DOF-DBM Joint Circular No. 1-90.
 We recommend that the management should require the accountant to prepare and
submit the monthly bank reconciliation statement to the office of the auditor to
ensure the correctness of the cash in bank, LLCA account balance of the agency in
compliance with Section 74 of P.D 1445, COA Circular 96-011 dated October 2,
251
1996, COA Circular No. 92-125 A dated March 4, 1992 and DOF/DBM Joint
Circular No. 1-90.
10. The DOLE-ARMM declared an accounts payable totaling P607,582.21 which

represents obligated allotment not yet covered by notice of cash allocation for
payment of various creditors of DOLE-ARMM, but the unpaid disbursement
vouchers (DVs) in support of such claims were not yet submitted to our office for
verification, in violation to Sections 4 and 59 of P.D.1445 and pertinent
provisions of PPSAS 29.
 We recommended that management instruct the accountant to submit to the

Auditor the unpaid DVs and the corresponding supporting documents in support
of the Accounts Payable totaling P607,582.21, the earliest time possible for our
verification, pursuant to Sections 4 and 59 of P.D. 1445 and PPSAS 29.
11. The BFAR-ARMM failed to recognize procured PPE totaling P2,072,099.00 in

violation of Section 63 of PD 1445.
 The concerned staff should take up in the books all property and equipment
acquired/received by the agency immediately upon receipt and issues the
corresponding Acknowledgment Receipt of Equipment (ARE) to the responsible
receiving officer or employee. Prompt entries should be made to recognize the
acquisition cost or appraised value of PPE, and their accumulated depreciations.
Committee on PPE Count should be created to conduct the physical count of PPE,
reclassification of serviceable and unserviceable items. The result hereof will be
the basis of the accountant in recording PPE in the books.
12. DPWH-1ST and 2nd Maguindanao Engineering Districts Supply Officers and
Accountants’ cash basis and outright expense method of recording for
procurement of construction supplies and materials acquired for distribution
totaling P751,258,726.03 were directly recorded to the Construction-in-Progress
(CIP)-Infrastructure Assets account instead of Construction Materials Inventory
account as stated in COA Circular 2015-007 thereby resulting to overstatement
of PPE account and understatement of inventory and liability accounts.
 Instruct the Accountant to Book ensuing purchases of construction materials to the

Construction Materials Inventory account, maintain Stock Ledger Card (SLC);
 Reclassify any unissued inventories to its respective accounts; and
 Require the concerned Supply Officer to submit the monthly RSMIs to the
Accountant for recording and to maintain and update the Stock Cards (SC) for
each item in stock.
13. DPWH-Maguindanao Area Equipment Services’ (AES) Supply Officer and

Accountant’s cash basis and outright expense method of recording for
procurement of spare parts to be utilized in the repairs and maintenance of
various service vehicles and heavy equipments amounting to P2,718,297.33 is not
252
in line with the provisions of COA Circular 2015-007 thereby understating the
asset and the liability account.
 We recommend for the Area Equipment Engineer to instruct the Accountant and
the Supply Officer: a) to use the accrual basis of accounting for the purchase,
receipt, and payment of spare parts inventory, b) to post adjusting entries to
recognize the inventory and liability account upon purchase and the recognition of
expense account or PPE account for minor and major repair, respectively. c) to
implement the inventory accounting system for spare parts on hand, including the
use of SLC and SC the Accounting Unit and Supplies Office, respectively.
14. DPWH-ARMM failed to record the cost of completed

rehabilitation/improvement of the old office building and other ground
development in the DPWH-ARMM totaling P4,279,438.92.
 Request the DPWH-MED to transfer the cost of the project to DPWH-ARMM for
proper recording in the books. Prepare the necessary JEV to record the asset
account.
15. The DPWH-ARMM failed to provide for the CY 2015 depreciation on the land
improvements implemented by DPWH-MED within the DPWH-ARMM
compound costing P777,560.00 thereby, overstating its assets and understating
the expenses.
 Compute for the depreciation of the land improvement effective from the time the
project was completed and prepare the necessary JEV to record the same.
16. The DPWH-ARMM remitted twice the 1% Contractor’s Tax totaling

P596,621.79, while a total of P10,291,240.89 of the 1% Contractor’s Tax
withheld remained unremitted as of December 31, 2015 contrary to Section 100
of Muslim Mindanao Autonomy Act (MMA) No. 049.
 For the withholding taxes, which were remitted twice, inquire with the Office of
the Regional Treasurer (ORT)-ARMM if these could still be refunded or if the
agency could have it offset against future remittances of contractor’s tax.
Henceforth, care should be taken in remitting taxes so as to avoid the same
situation.
 As for the unremitted taxes, have these remitted the soonest and to strictly comply
with the due date on the remittance of the Contractor’s Tax as per Section 100 of
MMA Act No. 049.
17. DPWH-ARMM failed to remit to the BIR as of December 31, 2015, either
through Tax Remittance Advice (TRA) or check payments, withholding taxes
totaling P76,316,875.48 contrary to existing BIR regulations on remittance of
withholding tax.
 Remit these taxes the soonest possible time and henceforth, to strictly comply
with the due date on the remittance of these taxes as per BIR regulations.
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18. DEPED-ARMM has 14 bank accounts with total balance of P4,842,688.63, which
remained dormant for over five years, were not yet closed and remitted to the
Bureau of Treasury (BTr), thus, contrary to EO No. 338 and Section 4. 2 and 4.6
of Joint Circular No. 9-81 dated October 19, 1981.
 We recommended that the Regional Secretary direct the Cashier to immediately

communicate to the concerned bank to close the dormant bank accounts and the
Accountant to conduct a thorough examination thereof and prepare the necessary
adjustments, if warranted to come up with the correct cash account balances.
19. DTI, CHED, DOT, DA, and TESDA, all of ARMM, have dormant accounts and
still remain in the Books Contrary to COA Circular No. 97-001.
 We recommended that the Accountant shall settle these accounts in accordance

with COA Circular No. 97-001 dated February 5, 1997.
 Further, the accountant and other concerned personnel should initiate the
verification of the origin, nature or purpose of all accounts that remain non-
moving for over five years and exert effort to gather the necessary documents to
support the account balance and be guided with the provisions of EO No. 109 and
Joint DBM-COA Circular No. 99-6 dated November 13, 1999 and Section IIIA.10
of COA Circular 97-001 dated February 5, 1997.
 Accounts which become dormant for over five years shall be reviewed, analyzed
and reconciled together with the other related accounts in the trial balance and
determine which accounts are fully depreciated and reclassify them into other
assets if the same are functional, or dispose them if otherwise, and make the
necessary adjusting entries to that effect.
 Require the Accountant to locate the vouchers/schedules and that would support
the recorded balances on dormant accounts. If in case, it cannot be found despite
all efforts, a request shall be brought to COA for proper disposition. If an
authority is obtained from COA for the write off of the dormant accounts, it shall
be effected by a debit to the account “Impairment Loss- Other Receivables and
shall be close to Income and Expense Summary Account and/ or debit memo to
the account “Loss of Accounts” and the accounts to be written off shall then be
transferred to the Registry of Accounts Written off. (RAWO).
20. The accuracy and reliability of the Inventory accounts of DepEd, DOTC, DILG,
DPWH-Maguindanao Area Equipment Services (AES), and DOH, all of ARMM,
with total balance of P 21,708,203.00 as of December 31, 2015 were doubtful due
to failure of management to conduct physical count of inventories at year end
pursuant to Section 65 of MNGAS, Volume II. Hence, the reliability of reported
balances at year end of inventory accounts are doubtful
 The Supply Officer to conduct physical count of all items of inventories every six
months in order to determine the actual existence and condition of supplies on
stock as required under Section 62 of MNGAS, Vol. II.
254
 the Accountant to ensure that inventories are properly classified and recorded in
the books of accounts as well as all the RSMI submitted by the Property Office;
 the Property Officer to prepare the RSMI in accordance with the provisions of
Section 62 of the MNGAS, Volume II; and
 the Accounting Office and the Property Office to maintain the Supplies Ledger
Cards and Stock Cards, respectively, and to reconcile periodically their records in
accordance with Section 43 of MNGAS, Volume I.
 Prepare and submit RPCI in accordance with the format prescribed in Appendix
62 of MNGAS Vol. II, copy furnished the Auditor;
 For the Area Equipment Engineer to see to it that the internal control policies
defined by the government shall be strictly adhered to. He shall direct the Chief,
Finance and Management Services Division to see to it that a) the necessary
subsidiary ledgers to support the general ledger accounts are maintained and kept
up to date; b) Maintain close coordination with the Accounting and Property Unit
in reconciling the PPE account
21. The accuracy and existence of the Other Assets account of RTWPB-ARMM,
included in the Non-Current Assets of the agency and valued in the Statement of
Financial Position as at December 31, 2015 at P533,168.00 cannot be ascertained,
because of the non-preparation and submission of the Year End physical count
Report by management, contrary to Section 4.3 of COA Circular No. 97-005
dated July 10, 1997. Further, the agency should have determined at the end of
the year whether the Other Assets were subject for impairment, as provided
under PPSAS 21.
 Instruct the Acting Supply Officer to conduct a Year End Inventory of PPE and to
include the Other Assets account totaling to P533,168.00, pursuant to the
provision of Section 4.3 of COA Circular No. 97-005 dated July 10, 1997.
 A periodic reconciliation of the PPELC maintained by the accountant with that of

the Property Cards maintained by the Supply Officer should be regularly made to
promptly detect any discrepancies and appropriate adjustments in both records
should be out rightly recorded and reflected in the book of accounts.
 Assess at each reporting date whether there is any indication that the Other Assets
may be impaired. If any such indication exists, the entity shall estimate the
recoverable service amount of the asset, as provided under PPSAS 21.
22. The validity and accuracy of the Property, Plant and Equipment (PPE)
accounts of ORVG, CDA, OSCC, DAR, DAR-MAG and DOLE, all of the
ARMM, with total book value of P 3,201,365.89 (net of depreciation) cannot
be ascertained, due to the non-submission of Physical Count Report for PPE
accounts as of December 31, 2015 in violation to existing rules and regulations.
Further, the Notes to Financial Statements does not disclose the estimated useful
255
life of the assets for the accurate computation of the annual depreciation, in
violation to Section 4.3 of COA Circular No. 97-005 dated July 10, 1997 and
pertinent provisions of PPSAS 17.
 We recommend that Report on the Physical Count of Property, Plant and

equipment (RPCPPE) be submitted to the Auditor as prescribed. Should there be
no physical count conducted, then require the creation of an Inventory Committee
to conduct physical count of PPE and to submit the RPCPPE. Further, the
Accounting Unit should maintain and make a timely update of the Property, Plant
and Equipment Ledger Card (PPELC).
 A periodic reconciliation of the PPELC maintained by the accountant with that of

the Property Cards maintained by the Supply Officer should be regularly made to
promptly detect any discrepancies and appropriate adjustments in both records
should be out rightly recorded and reflected in the book of accounts.
23. The DAR-ARMM has an outstanding obligations to the GSIS, PAG-IBIG and
PHILHEALTH totaling to P473,217.18 which remained unsettled as at
December 31, 2015, in violation to Section 6 (a) of PD 1146.
 We recommend that the Cashier and Accountant remit the mandatory obligations
withheld due to the GSIS, Pag-ibig and Philhealth amounting to P466,047.38,
P6,632,.93, and P536.87, respectively, or for a total of P473,217.18.
24. An estimated P11,236,284.00 Personal Services expenses of DEPED-ARMM was

overstated due to the misstatement of salary steps of teachers.
We recommend the following to the Regional Secretary:
 Create a committee to conduct investigation and immediately impose the

appropriate penalties to those committed this particular violation of existing laws;
 Create a committee to work on the reconciliation of the PSIIPOP and payroll to

come with the correct salary steps of DepEd-ARMM official and employees;
 Establish office guidelines on the updating and changing of salary steps to avoid
misstatements thereof;
 After establishing the correct salary steps, impose a refund to the employees with
overpayment.
 After thorough investigation, instruct the Regional Accountant to prepare and

book the necessary adjustments in the books of the agency correct the deficiencies
discovered.
256
25. TESDA, CHED, DPWH-Lanao del Sur Engineering District II, ORVG and
CDA, all of the ARMM, failed to submit Mandatory Reports in violation of
Sections 38, 40 (b), 40 (d) of GAM, Section 122, 100 and 107 of PD 1445, Section
98 of GAAM, Volume 1, Sections 22 & 57 of the Manual on National
Government Accounting System (MNGAS) and Section 69, PD 1445.
 The management should create a working committee to act on the physical count
of PPE once every year, as well as on the disposal of unserviceable PPE.
Determine which PPE are fully depreciated and unserviceable and drop them from
the books pursuant to Sec. 79, PD 1445.
 The accountant and other concerned officer/s should prepare and submit journals
on or before 5th day of the following month. Familiarize themselves with the
Philippine Public Sector Accounting Standards (PPSAS), including the different
journals, forms and reports under the GAM.
 Further, we recommend that Report of Accountability for Accountable Forms

(RAAF) be submitted on monthly basis by concerned Accountable Officer
pursuant to Section 98 of GAAM, Volume 1 and require the Cashier to submit
promptly the RCD as well as the receipts and supporting documents to the
Auditor, in accordance with the above cited rules and regulations.
26. TESDA, DPWH-RO, DA, OSCC, DOT, ORVG, DSWD, RPDO, CHED, DAR
and DILG, all of ARMM were delayed in the submission of Disbursement
Vouchers with supporting documents and other reports Contrary to Sec. 39, 100
and 122 PD 1445, Section 7.2.1.(a) of COA Circular No. 2009 dated Sept. 15,
2009 and 122 of PD 1445, thereby resulting to the delay in the verification and
audit of the transactions.
 Submit the paid DVs together with their supporting documents without waiting
for others to submit their liquidation papers, especially if it warrants a cause of
delay;
 Promptly notify those officers or employees concerned for the immediate process
and submission of their liquidation papers; and/
 Augment support staff, if necessary, to assist in the facilitation of the liquidation

papers
 Adopt a system to be able to comply with the prompt submission of the DVs. The
Audit Team does not expect to receive the DVs on or before the 5th day of the
following month, but a month or two is enough for the agency to comply with the
submission.
 Prepare daily the Report of Checks Issued (RCI) and furnished the Accounting
Section, especially if numerous checks were issued in a day.
257
 Both the Cash Section and the Accounting Section must have a close coordination
and find ways to comply with the prompt submission of the transactions.
 Prepare JEVs and attach to each DV for easier verification.
 The accountants, cashiers and other concerned responsible officials submit the
required reports and liquidations of fund transfers and comply strictly with the
provisions of Section 100 and 122 of PD 1445 to enable the auditor to conduct
timely audit and ensure validity and accuracy of recorded transactions.
27. BFAR-ARMM failed to submit on time copies of MOA for the receipt of funds
from BFAR-CO and/ ORG-ARMM, contrary to Sec. 39 (1) of P.D. 1445
 The personnel concerned should submit without delay to the Auditor all
documents necessary for the conduct of audit in order to have comprehensive
review and analysis of accounts and to determine the reliability of the
management’s assertion on the existence and/occurrence, validity, accuracy and
completeness of the recorded transactions.
28. DPWH-ARMM fund transfers to LGUs and NGAs, and payments to various
suppliers and contractors totaling P356,895,154.02 were supported with Official
Receipts (OR) that are either undated, incorrect, double, while others were not
supported by OR at all contrary to COA Circular 2012-001.
 For the ORs without date, verify with the payees on when these were actually
received and have these properly filled up.
 For those without OR, require from them the submission of the corresponding OR.
 For those with the wrong amount in the OR, verify with the payees the actual
amount received by them, and make the appropriate action based on the
verification made.
 For those issued with two ORs, determine which are accurate, and also verify the
reason for the issuance of another OR for the same transaction.
29. DTI, RBOI, BFAR, DOST, DTI, DPWH, CHED, DPWH-LDS-II and DPWH-
1ST MED, all of ARMM, failed to furnish copies of perfected contracts/purchase
orders for procurement and their supporting documents within five (5) days
upon perfection thereof preventing the timely evaluation and review contrary to
COA Circular No. 96-010, COA Circular No. 2009-001 and Sec. 39 (1) of PD
1445.
 We recommend that copy of contract, purchase order, notice of delivery,

inspection and acceptance report and their supporting documents be submitted to
the audit team within the period prescribed, under COA Circular No. 2009-001
dated February 12, 2009 and the concerned officials must comply with the above-
mentioned Circular.
258
 The BAC and the accounting personnel should design an effective internal control
to secure all the contracts and purchase orders with supporting documents and
make them readily available for submission to the office of the auditor for his
review within the prescribed period.
 The concerned personnel should see to it that all funds received be supported with
legal documents authorizing the disbursement of said funds; immediately furnish
the auditor’s office copy of MOA/NCA/NFT, and comply with the terms and
conditions set forth in said documents.
30. For CY 2015 the total Notices of Suspensions (NS) amounted to P

1,086,211,177.13 and disallowances of P 666,107,898.53 which are still
outstanding and unsettled even at the end of the year, contrary to Sec. 7.1.1,
COA Circular No. 2009-006 dated September 15, 2009, Rules and Regulations on
the Settlement of Accounts (RRSA) thus, may end up with court suit or a waste
of government monies.
 We recommend that concerned employees be directed immediately to settle in

full, their audit suspensions and disallowances in accordance with Sections 5.4
and 7.1.1 of the Rules and Regulations on the Settlement of Accounts (RRSA).
Henceforth, ensure that government auditing rules and regulations are strictly
complied with before processing claims/effecting payments to minimize
suspensions and disallowances in audit.
 We recommended that the management direct the head of accounting division to

enforce immediate settlement of the audit suspensions totaling P 39,163,728.73
within the reglementary period to avoid maturing into disallowance, pursuant
to Section 7.1.1 and 9.3 of COA Circular No. 2009-006 dated September
15, 2009.
31. DPWH-Maguindanao 1st and 2nd EDs failed to provide the Audit Team with the
list of all on-going government projects/programs/activities (PPA) contrary to
COA Circular No. 2013-004 dated January 13, 2013.
 We recommend that at the beginning of the year management shall provide the
audit team with the list of all on-going government PPA pursuant to COA Circular
No. 2013-004.
VALUE FOR MONEY
32. The DepEd-ARMM failed to achieve the targeted completion of the 1,032
classroom buildings due to the delay and failure of the Contractors to execute
properly the terms and condition of the contracts, thus the intended purpose of
increasing delivery of good quality education was not achieved.
 We recommend that the Management shall formulate and adopt effective

guidelines for the review, monitoring, inspection and reporting of program
implementation of the school buildings and other infrastructure projects in order
259
to prevent delays and non-implementation of projects, hence the needs the
objective of serving the needs of the increasing student population in the Agency’s
area of jurisdiction were be responded. If warranted, mandated liquidated damages
maybe charged against defaulting contractors.
33. Out of the P186,121,960.00 received by BFAR-ARMM from BFAR-CO in

CY2015 for fishery and aquatic projects, only P80,589,985.97 was disbursed and
liquidated, leaving a total unutilized amount of P105,531,975.16. Also, out of the
P40,850,000.00 received from ORG-ARMM for ARMM HELPS projects, only
P10,288,477.00 was utilized, while the remaining P30,561,523.00 was reverted to
the Bureau of Treasury due to lack of adequate time since funds were received
only last week of December 2015. Hence, the intended beneficiaries were
deprived of the benefits.
 The Agency should be diligent to make sure that all projects allotted with funds
are fully implemented within the timeframe prescribed by law. Exert effective
coordination with the source agency for the immediate release of the approved
budgets in order to avoid delayed implementation of projects.
34. Farm Equipment found in DAF-ARMM compound costing P12,326,236.00

remain undistributed as of the year-end, thus defeated the purpose of acquiring
the equipment for the immediate needs of the farmers of ARMM.
 We recommend that the management should store these units intended for rescue
operation under a roofed building so as not to expose the said items to wear and
tear. We recommend further, that the coordinator of any agri-pinoy program
should identify first the relevance of farm machineries before including the said
items in their proposals to avoid wastage of government funds. Distribute to the
intended beneficiaries the foregoing machineries the soonest possible time to
maximize the objectives of the program.
260
AUTONOMOUS REGIONAL GOVERNMENT (ARG)
AUTONOMOUS REGION IN MUSLIM MINDANAO (ARMM)
CONSOLIDATED REPORT OF CY 2015 AUDIT OBSERVATIONS AND
RECOMMENDATIONS ON GENDER AND DEVELOPMENT (GAD)
Observation:
Amount utilized totaling P47,996,453.94 for Gender and Development (GAD) program
by 14 Regional Government Agencies (RGAs) in ARG-ARMM is less than the
prescribed 5% of their 2015 budget to implement GAD plans contrary to Section 34 (2)
of the General Provisions of the 2015 General Appropriations Act and paragraph 6.1 of
PCW-NEDA-DBM Joint Circular No. 2012-01.
The GAD Plan shall be integrated in the regular activities of the agencies, which shall be at
least five percent (5%) of their budget. For this purpose, activities currently being undertaken
by agencies which relate to GAD, or those that contribute to poverty alleviation, economic
improvement, especially of marginalized women, protection, promotion and fulfillment of
women’s human rights and practice of gender-responsive governance are considered
sufficient with said requirements. Hence, it is understood that the GAD budget does not
constitute an additional budget over an agencies total budget appropriations.
For the CY 2015, 25 RGAs of ARMM had a total budget of P24,073,576, 000.00 as provided
in GAA for FY 2015. Five percent (5%) of this budget is P1,203,678,800.00 to be allocated
GAD Plan, of this amount P47,996,453.94 representing 3.98 percent were utilized by the
following fourteen (14) RGAs to implement their GAD activities as follows:
Regional Government Agencies Actual Disbursements

1. ORG P9,618,750.00
2. DEP-ED 6,615,634.94
3. RHRC 894,000.00
4. BFAR 3,954,000.00
5. ORVG 836,000.00
6. CDA 726,554.00
7. DAR 544,385.00
8. OSCC 936,000.00
9. DOLE 2,026,800.00
10. DENR 3,426,000.55
11. RTWPB 345,000.00
12. DOTC 673,890.00
13. DPWH 16,048,179.45
14. RPDO 1,351,260.00
Total 47,996,453.94
We noted that the RGAs BFAR, DOTC, DOH and DAF had no GAD Plans and GAD
Accomplishment Reports submitted for verifications.
We recommend to formulate GAD plan designed to address gender issues within their
concerned sectors or mandate and allocate at least 5% of their budget pursuant to
261
Section 34 of the General provision of 2015 GAA and Paragraph (6.1) of PCW-NEDA-
DBM Joint Circular No. 2012-01 and ensure that the utilization of GAD Budget are in
accordance with the GAD Plans and evaluated based on the GAD performance
indicators identified by said agencies.
262
COA-ARMM
State Universities and Colleges (SUCs) and Other Stand Alone Agencies (SAA)
Consolidated Summary of Significant and/or Common Audit Findings and
Recommendations
CY 2015
Agency Findings Recommendations Amount

Cash
MSU-Main The Cash in Bank, Local Direct the University P 756,645,138.52

Campus, Marawi Currency Current Account Accountant to instruct the
(LCCA) as of December accounting staff assigned on
31, 2015 for all funds could the preparation of the
not be ascertained as to its Monthly BRS for the bank
accurateness for failure of accounts maintained as
the accountant to prepare required under Section 74 of
the monthly Bank .P.D. 1445 and to submit the
Reconciliation Statement BRS monthly to the Auditor
(BRS) to reconcile the for verification in order to
differences between book ascertain the accuracy and
and bank balances. reliability of the cash
balances in the book balance
an in the bank balance.
Adiong Memorial Monthly BRS were not Direct the accountant to 19,830,290.10
Polythechnic State prepared and submitted in prepare and submit a BRS
Colleges (AMPSC) violation of Section 74 of monthly to the Auditor’s
P.D. 1445, thereby casting Office and identify the
doubt on the reliability and reconciling items and make
accuracy of the Cash In necessary adjustment in
Bank balances. compliance with Section 74
of P.D.
UPI Agricultural The Cash in Bank as Prepare the BRS to facilitate 1,100,260.94
College presented in the Financial review of the correctness of
Statements (FS) can be the balances of the account.
relied upon due to the
preparation of BRS in
compliance to Sections 3-7,
Chapter 21, and Volume II
of Government Accounting
and Auditing Manual
(GAAM) thus; the
existence and accuracy of
263
the cash balances can be
ascertained.
Physical count of PPE
MSU- Marawi City The existence, validity and Submit to the Audit Team 917,785,996
correctness of the Property the CY 2015 RPCPPE and
Plant and Equipment (PPE) make reconciliation with the
are doubtful due to non- accounting on the actual
submission of the Report on physical condition of all
the Physical Count of PPE PPE.
(RPCPPE) as of year- end
and no record maintained Prepare a Report on the
by the Property Officer/ Physical Count of
Custodian to reconcile with Unserviceable Properties
the records of the found on hand, classifying
Accounting Office contrary them into serviceable or
to Section 490 of the unserviceable.
GAAM, Volume I, and Maintain updated Property
Section 43, Volume I, and Card per category on all PPE
Sections 56 and 66, both of as recorded in the list of PPE
Manual on the New of accounting records, and
Government System thereafter as the transactions
(MNGAS), Volume II occurred.
Maintain and renew all

Acknowledgement Receipt
for Equipment (ARE) every
3 years for the signature of
the custodian of each item
listed in the RPCPPE.
MSU-Lanao PPE could not be ascertain Create an Inventory 5,447,861.42

National College of as to the accurateness of its Committee to conduct
Arts and Trades book value for failure of physical count of PPE and to
(LNCAT) the management to submit prepare the RPCPPE
RPCPPE as of December showing the cost , year
31, 2015 and the detailed acquired and their condition
schedules of the PPE whether serviceable or
Accounts . unserviceable. Furthermore,
require the Property Officer
to maintain an updated
property card for each PPE
and reconcile with the
accounting office to be taken
264
into consideration in the trial
balance and FS.
MSU- The PPE are of doubtful Create an Inventory 82,375,867.61

Maguindanao existence and validity due Committee to conduct the
to: a) failure to conduct yearly physical count of PPE
physical count on all PPE; and to prepare the RPCPPE
b) unreconciled PPE to check the accountability of
records of the Accountant property custodianship.
and OIC-Supply Officer
and the absence of Reconcile the RPCPPE with
Property, Plant and the accounting and property
Equipment Ledger Card records for proper
(PPELC); c) failure to adjustment of the
account for the deficiencies, if any, to reflect
unserviceable equipment in the accurate balances of the
the total amount of PPE accounts. To facilitate
P538,524.55 and books in reconciliation, require the
the amount of accountant to maintain the
P1,068,302.42 and d) non- PPELC;
disclosure of the additions,
disposals, depreciation Comply with PPSAS 17 by
schedules as well as the revising the Notes to
existence and amount of Financial Statements to fully
restrictions on the land titles disclose the required
in the Notes to FS contrary financial data on PPE.
to Philippine Public Sector
Accounting Standards
(PPSAS) 17 - PPE.
Delayed/None Submission
MSU-Marawi City Late and non-submission of Submit the required reports

MSU-LNCAT some paid Disbursement together with DVs and
Vouchers (DVs) and supporting documents to the
supporting documentary Audit Team
requirements in payment of
billings of various
infrastructure projects
charged for all funds and
for the procurement of
various Equipment in
violation to Section 100 of
P.D 1445.
265
Delayed submission of
Trial Balance, FS, Report of
Disbursement, together
with paid DVs and Report
of Collections, together
with Official Receipt (ORs)
and other required periodic
financial reports, which
affects timely conduct of
audit contrary to Section
100 P.D. 1444.
MSU-LNCAT Non submission of the Require the budget officer or

Annual Procurement Plan responsible official
(APP) for the procured concerned to prepare and
supplies and equipment submit a copy of the APP to
during the CY 2015 in the Auditor.
the MNGAS and Section
7.2 of Article II of the R. A
No. 9184.
AMPSC Collection of income Submit the Report of 640,825.00

derived from School Collection & Deposits with
Tuition fees were not complete attachment such as
recorded and properly copy of issued ORs,
accounted for due to the deposits/remittance slip of
delayed submission of the the total collection
Report on Collection and
Deposits (RCD) together
with copies of ORs issued
and deposits slips in
the MNGAs, Volume 1.
Procurement
MSU- Marawi City Procurement of various Observe the Implementing 5,042,280.00

office chairs, uratex foams Rules & Regulations (IRR)
from Poly Foam RGC of the R.A. 9184 otherwise
International Corporation known as Government
were made through Procurement Reform Act.
negotiated contract as an
alternative method of
266
procurement instead of
awarding through
competitive bidding and no
invitation for the schedule
on public bidding was
furnished to the Auditor’s
Office in contrary to COA
resolution No. 2015-014,
Sections 8.7, 10.48.1 and
48.2 of IRR of RA 9184.
MSU-SDTC-Sulu Frequent purchases Undertake competitive

adopting the alternative biddings in all its
method of procurement procurement to encourage
particularly shopping and more suppliers to participate
small value procurement in a transparent and fair
instead of open and competition that would be
competitive bidding very advantageous on the
contrary to Section 10 and 7 side of the procuring entity.
of the RA 9184 And other method of
procurement shall be
restored into only if the
situation is so urgent and the
demand for such
procurement is immediate.
Further all forthcoming
procurement of the district’s
goods and services should be
in accordance with the
approved APP of the district
and within its approved
operating budget.
Collections
MSU- Collections from January to Require the Accountable

Maguindanao December 2015 were not Officer to deposit at all times
deposited on time by the intact and on time her
accountable officer, in collections to the authorized
violation of Section 21 of government depository bank
the MNGAS. pursuant to Section 21 of the
MNGAS
Unliquidated Cash
Advances
267
MSU- Unliquidated Cash Liquidate all cash advances 1,450,366.00
Maguindanao Advances for travel and at the end of the year
other operational expenses pursuant to the required
under Trust Fund remained liquidation period. Refrain
outstanding at year end in from granting additional cash
violation of Section 89 of advance to accountable
PD 1445, COA Cir. No. 97- officers who have not settled
002 dated February 10, their previous cash advances.
1997 and COA Cir. 2009-
002 dated May 18, 2009.
Suspensions
AMPSC Payment of project Submit the paid DVs with 693,233.00

undertaken by MJ Alonto complete documentary
Builders & Enterprises has requirements of all financial
incomplete documentation transaction within the
casting doubts on the prescribed period.
regularity and validity of
the transaction.
Value for Money Audit
MSU- The cost for the 186 Submit the names and 11,479,000.00
Maguindanao students identified as numbers of students who
scholars are doubtful of were granted the scholarship
existence and validity due for the team to verify the
to the absence or pertinent correctness of the
data and information from disbursements they made on
the focal person/coordinator the scholarship funds.
in charge on the actual
names and number of
students who were granted
the scholarship.
Unserviceable Assets
MSU-SDTC-Sulu Various fully depreciated Reclassify the unserviceable

PPE of the agency had not PPE to Other Assets account
been transferred to the and dispose he same
Other Asset Account. pursuant to Sec. 79 of PD
Apparently, these obsolete 1445.
and unusable information
and technology equipment
268
had remained in the
Inventory of PPE as active
assets contrary to Section
143 of MNGAS
Others
MSU- Marawi City No Liquidated damages Impose liquidated damages

were imposed on some on contractors for delayed
contractors whose projects, projects, when warranted.
funded under CHED-DAP
for CY 2013, were delayed
pursuant to Section 68 of
the IRR of RA 9184.
MSU- Marawi City The MSU System failed to Require the contractors
notify the public of their concerned provide billboards
Programs, projects & at the projects locations
Activities (PPA) charged to indicating the project name;
all funds through posting of implementing unit; office or
relevant information on division if it is not the
signboards, made of any agency as a whole; brief
materials as prescribed in description of the PPA;
COA Circular No. 2013- contractor or supplier, if any;
004 dated January 30, 2013, mode of procurement;
thus the public was not funding source; cost or
informed of the essential approved budget; project
features or elements. duration including start and
completion date; and
location for the design and
format of the tarpaulin; if the
billboards are in place,
inform the Auditor for re-
inspection.
MSU- Marawi City Management failed to Submit to the Audit Team

submit on time financial prescribed reports on time.
reports and other reports
necessary in the conduct of
audit contrary to Section
122 of PD 1445, thus
affecting the timely conduct
of audit and the preparation
of periodic audit and
monitoring reports.
269
Out of 400 Official Require the field collectors 118,800.00
Receipts (ORs) released to of the MSU external units to
Saguiaran Community High turn over their collections to
School, 397 ORs were not the designated liquidating
remitted to the liquidating officers in MSU Business
/finance officer stationed at Office, who shall receive the
MSU Business Office cash and perform verification
(UBO) but instead utilized of collections turned over to
the amount for the repair of him/her and to deposits to
classrooms with no proper the authorized depositary
authority from the higher bank and accomplish the
officials in violation to Report of Collection and
Section 4 & 103 of P.D. Deposits (RCD).
1445 and section 21,
MNGAS, Volume 1.
MSU-LNCAT Disbursement Vouchers Stamp “PAID” the DVs and

(DVs) and their supporting supporting documents upon
documents were not payment and before
stamped “PAID” pursuant submission to Auditor’s
to paragraph 1.7 of the office.
Rules of the Internal
Control of Disbursement
stated in the Handbook on
cash Management and
Control System which
could be subjected to
possible use.
MSU-LNCAT The quantity or number of Require the collecting

ORs received and issued are Officer as well as the
not properly reported in the disbursing officer for the
monthly Report of preparation & submission of
Accountability for a monthly Reconciliation
Accountable Forms Statement of Accountability
(RAAF) with or without for Accountable Forms
Money Value for failure of without or with money value.
the Collecting Officer /
Disbursing Officer to
submit the RAAF.
270
AMPSCe DVs and supporting papers Stamp “PAID” the DVs and
submitted after payment not supporting documents upon
stamped “PAID” in payment and before
violation to paragraph 1.7 submission to Auditor’s
of the rules of the internal office.
control of disbursement
contained in the Handbook
on Cash Management,
thereby exposing reuse for
another claims against the
agency fund by an
opportunists.
AMPSC The total cost utilized for Submit the requested 3,720,000.00
the Expanded Students documents in settlement of
Grants-in-Aid Program for the Notice of Suspension No.
Poverty Alleviation (ESGP- 16-005-202 (15) dated
PA) are doubtful of February 16, 2016.
existence and validity for
management failure to
submit the requested data
and information from the
coordinator in charge on the
actual names of official
names of students enrolled
for the school year and a
xerox copy of the
identification Card of
students granted
scholarship.
UPI Agricultural The increase of the account Maintain the BAPC and 138,000.00
College is doubtful due to the prepare the QRBA to
agency’s failure to disclose determine the accurate and
in its Financial Statements reliable amount of the
the gain or loss arising on account including the
initial recognition of the changes in its fair value due
asset pursuant to paragraph to physical changes such as
38 & 39 of Philippine growth, degeneration,
Public Sector Accounting production and procreation.
Standards (PPSAS) and not
using the Biological Assets
Property Card (BAPC) and
non-preparation of
271
Quarterly Report of
Biological Assets (QRBA)
as provided in Section 11,
Appendices 78 and 79 of
GAAM.
MSU-SDTC-Sulu Payment through cash Reclassify the cash advances

advances on various transaction referred thereto
miscellaneous supplies and into their appropriate account
materials for maintenance in compliance to COA
and other operating Accounting Circular No.
expenses and likewise 2006-001 dated November 9,
payment through cash 2006.
advances of payroll for
special purpose/time bound
undertaking were
oftentimes recorded as a
regular cash advances
instead of advances to
officers and employees
(code 148), contrary to Sec.
3.5 of Accounting Circular
Letter No. 2007-001 dated
January 19, 2007.
Note: The AARs on the Sulu State College and MSU-TCTO for CY 2015 were not yet
submitted.
272
COA ARMM
State Universities and Colleges (SUCs) and Other Stand Alone Agencies (SAAs)
Consolidated Report of Audit Observations on Gender and Development (GAD)
CY 2015
AGENCY FINDINGS/OBSERVATIONS RECOMMENDATION

MSU - Main The required 5% specific allocation Management allocate 5% of the
Campus, Marawi for GAD in the Annual Budget of the university’s total budget, appoint
City MSU System were not reported as a Focal Person and ensure the
implemented in pursuance to proper implementation of GAD
executive Order No. 273; however Plan, Program and Activities
various activities were claimed by the pursuant to Section 34 of R.A.
management as GAD related No. 10651.
programs.
MSU-LNCAT NONE
Adiong Memorial The required 5% specific allocation Strict compliance of the 5%
Polythechnic State for GAD in the annual budget of the allocation for GAD programs in
Colleges (AMPSC) college were not implemented. their Annual Budget
as provided under existing laws,
rules and regulations.
MSU - The agency did not submit GAD Plan The agency submit the GPB and
Maguindanao and Budget (GPB) for CY 2015 as the GAD-AR; implement the
required under the PCW-NEDA- approved GPB which should
DBM Joint Circular No. 2012-01. include projects/activities which
will address gender issues and
implement the Magna Carta of
Women.
UPI Agricultural GAD program was implemented by We commend the management

College allocating 5% of their budget in for the allocation of 5% of their
compliance to Section 28 of GAA. budget in the implementation of
GAD related programs.
Sulu State College*
MSU-SDTC-Sulu NONE
MSU-TCTO*
Note:
- Data were based on the CY 2015 AAR/ML.
- *Not yet submitted
273
VIII. SUMMARY OF AUDIT
OPINIONS
COMMISSION ON AUDIT ANNEX B
NATIONAL GOVERNMENT SECTOR
For Calendar Year 2015
Summary of Audit Opinions
AGENCIES UQ Q A D Reason/Basis for Modified Opinion

Cluster 1-Executive Offices
Office of the   Understatement of PhP15.15M of the balance of the
President Cash in Bank – Local Currency, Current Account as at
(OP) December 31, 2015 due to unrecorded credit
memos/advices.
 Understatement of Cash in Bank and Other
Investments pertaining to the President’s Social Fund
(PSF) – One Town One Project Trust (OTOP) Fund
and Trust Account of the PSF-Livelihood Assistance
Program and OTOP Investments totaling PhP278.53M
which was transferred to OP from Presidential
Management Staff (PMS) in October 2014 but not
recognized in the books of accounts.
 Balance of the Inter-Agency Receivables of
PhP784.03M as at December 31, 2015 could not be
relied upon due to the total discrepancy of
PhP126.21M between the results of confirmation and
the balance per books.
 Unreliability of the balance of the Due from
NGOs/POs totaling PhP25.56M as at December 31,
2015 due to inclusion of dormant account of
PhP23.07M and discrepancy of PhP4.78M between the
balance per books and results of confirmation.
 The cost of Plant, Property and Equipment (PPE)
totaling PhP2,276.23M was not fairly presented due to
unreconciled difference of PhP64.91M between the
books and the Report of the Physical Count of
Property, Plant and Equipment mainly resulted from a)
incomplete recognition of properties amounting to
PhP38.27M in the books and PhP23.80M in the
RPCPPE; and b) non-derecognition in the books of the
disposed/donated PPE totaling PhP12.15M.
 Collectibility of Due from Officers and Employees of
PhP1.86M could not be ensured due to inclusion of: a)
dormant accounts totaling PhP0.34M; b) receivables of
PhP1.03M from employees who were no longer in the
service; and c) negative balances totaling to
PhP0.18M.
Bureau of   The fair presentation of the balance of the account Cash
Broadcast in Bank-Local Currency, Current Account as at
Services December 31, 2015 could not be established due to the
(BBS) Accounting Section’s failure to reconcile the book
balance of PhP1.09M with the bank balance of
PhP1.19M, or a discrepancy of PhP0.09M.
 The fair presentation of the book balance of the Office
Supplies Inventory account of PhP0.54M could not be
ascertained due to failure of the Property and the
Accounting Sections to update the recording/posting of
the transactions in the Stock Cards (SCs) and Supplies
Ledger Cards (SLCs), respectively, and conduct
physical count of office supplies.
 The year-end balance of the Accounts Receivable of
PhP16.30M was of doubtful validity due to non-
moving accounts for more than five years amounting
to PhP14.85M and have a very slim chance of being
collected, thus, affecting the fair presentation of the
account in the financial statements.
274

 The fair presentation of the balances of the various PPE
accounts totaling to PhP429.14M as reported in the
financial statements could not be ascertained due to: (a)
non-conduct of physical count; (b) non-updating of the
PPE Ledger Cards (PPELC) and Property Cards (PC);
(c) lack of supporting documents to prove the
ownership of the property; (d) non-provision of the
related depreciation to some PPE items valued at
PhP151.85M; and (e) non-disposal of unserviceable
properties in BBS-Davao, thus, affecting the fair
presentation of the asset account in the financial
statements.
Bureau of   Representation Expenses incurred for official meetings
Communicati and conferences amounting to PhP0.26M were
on Services erroneously charged to the Other Maintenance and
(BCS) Operating Expenses account and were not fully
supported contrary to COA Circular no. 2013-002
dated January 30, 2013, affecting the reliability of the
accounts balances.
Climate 
Change
Commission
(CCC)
Fertilizer and   The balance of PPE as of December 31, 2015 per books
Pesticides and per Report on the Physical Count of Property, Plant
Authority and Equipment (RPCPPE) showed a difference of
(FPA) PhP2.24M due to the failure of the Accounting and
Property Units to reconcile their records, thus,
affecting the reliability of the account in the financial
statements.
 Printed materials/books held for sale totaling 2,237
pieces valued at PhP0.69M were not recorded under
the Inventory account contrary to Philippine Public
Sector Accounting Standards (PPSAS), Volume 1,
thus, understating the Inventory account balance by the
same amount. Likewise, the accountability of the
Supply Officer (SO) for the receipt and issuances of
these printed materials/books could not be established
since these were also not included in the Report on the
Physical Count of Inventories (RPCI).
 Office Supplies Inventory account balance of
PhP0.35M as of December 31, 2015 was unreliable due
to noted discrepancies of PhP0.10M between the
accounting records and the RPCI.
Governance  
Commission
for GOCCs 
National   The reliability of the balance of the account Due from
Anti-Poverty Non-Government Organizations/People’s
Commission Organizations of PhP24.20M cannot be ascertained due
(NAPC) to the unaccounted beginning balance of PhP7.20M
which had been dormant for 14 years.
 The year-end balance of the account Due from National
Government Agencies of PhP20.21M was doubtful due
to the unaccounted beginning balance of PhP4.89M
which had been dormant in the books for 13 years.
275

 The balance of PPE as of December 31, 2015 per books
and per Report on the Physical Count of Property, Plant
and Equipment (RPCPPE) showed a difference
amounting to PhP0.34M representing the cost of library
books, office equipment and other PPEs not found
during the physical inventory; thus rendering the
account balance unreliable.
National   The reliability of PPE accounts presented in the
Commission financial statements in the amount of PhP490.78M,
on Culture which is 18 percent of the total assets of
and the Arts PhP2,720.77M, cannot be ascertained because of the
(NCCA) inclusion of inventories that were provided with
depreciation and furniture and fixtures that were
recorded in the books but not included in the inventory
report.
National   The fair presentation of the carrying amount of the
Historical PPE accounts presented in the financial statements as
Commission of December 31, 2015 could not be established due to
of the the agency’s failure to complete/submit inventory
Philippines reports and maintain subsidiary records. The total
(NHCP) property, plant and equipment of PhP608.69M was 70
percent of the total assets of PhP869.10M.
News and   The balance of Office Supplies Inventory account
Information valued at PhP4.36M as of December 31, 2015 was not
Bureau (NIB) fairly presented due to a) unrecorded issuance of office
supplies brought about by the non-preparation of the
Report of Supplies and Materials Issued (RSMI), and
(b) unreconciled difference between the book and the
Report of Physical Count of Inventories (RPCI) by
PhP3.91M.
The carrying amount of PPE of PhP5.99M as of
December 31, 2015 was not fairly presented due to the
non-conduct of actual physical count.
 Unserviceable PPE with a total cost of PhP5.02M were
recorded under Other Assets account instead of
appropriate PPE account, contrary to paragraph 82 of
the Philippine Public Sector Accounting Standards
(PPSAS) No. 17.
 The correctness of the year-end balance of Due from
NGAs account as of December 31, 2015 amounting to
PhP0.27M could not be ascertained due to the
unreconciled difference of PhP0.05M as against the
Statement of Account of Department of Budget and
Management-Procurement Service (DBM-PS).
 Accrued liabilities for goods and services were not
recognized resulting in the understatement of Accounts
Payable by PhP0.02M and the related asset/expense
accounts for the same amount.
Philippine   The restatements of the carrying amounts and opening
Commission balances of prior period accounts presented in the
on Women financial statements as at December 31, 2015 were not
adequately disclosed, contrary to the requirements of
PPSAS. The Statement of Comparison of Budget and
Actual Amounts was also not reliable because of
inconsistencies with the other financial reports of the
agency.
276

 The reliability of the inventory accounts could not be
determined due to the failure of the Supply Section to
update the inventory records, conduct physical count of
the inventories and reconcile inventory balances with
the records of the Accounting Section. The inventories
totaling PhP1.05M represent 5.30 percent of the total
assets of PhP19.87M.
Presidential   The reliability of the asset accounts could not be
Broadcast determined due to the mathematical error in the
Staff recording of Technical and Scientific Equipment
delivered by the Procurement Service-Department of
Budget and Management (PS-DBM) in the books of
accounts, thus resulted to overstatement of PPE by
PhP10.61M and understatement of Due from National
Government Agencies by same amount.
 The PPE account balance as of December 31, 2015 was
understated due to non-recording of teleprompter and
audio equipment amounting to PhP10.43M in the books
of accounts of the agency.
Presidential   
Commission
on Urban
Poor (PCUP)
Presidential   Other Receivables of PhP0.29M representing shortage
Communicati found during the examination of the cash and accounts
ons of the former Cashier remained uncollected since 2004
Operations showing remote possibility of collection. Further, the
Office amount was presented as part of the Current Assets in
(PCOO) the Statement of Financial Position as of December 31,
2015 contrary to Philippine Public Sector Accounting
Standards (PPSAS) No. 1.
Legislative
Liaison
Office
(PLLO)
Management
Staff (PMS)
Foreign   The year-end balance of the Office Supplies Inventory
Service amounting to PhP0.65M could not be relied upon due
Institute to (a) inadequate documentation to support the
(FSI) recorded issuances of PhP0.50M; and (b) difference in
quantity balance of some items between the physical
count and accounting records with total cost of
PhP0.33M. The same account balance was not
established in 2014 due to uncorrected recording and
reporting deficiencies which caused us to qualify our
audit opinion on the financial statements relating to
that year.
 The fairness of presentation of the PPE accounts
balance totaling PhP2.13M was not established due to
a) difference of PhP0.43M between the accounting
records and the initial results of physical count of some
PPE; and b) incomplete physical inventory;
 The validity of the account Due from NGAs with a
balance of PhP0.26M as of December 31, 2015 was not
277

established because of the difference of PhP0.02M
between the records of the FSI and the concerned
agencies; and
 The Accounts Payable balance was overstated by
PhP0.23M due to recognition of liabilities for goods
not yet delivered.
Technical   The balance of Receivables - Due from NGOs/POs
Cooperation was not fairly presented due to: (a) non-provision of
Council of allowance for impairment for dormant receivables
the from NGOs/POs amounting to PhP0.95M; (b) the
Philippines PPE accounts balance of PhP0.45M was unreliable
(TCCP) due to (i) overstatement of the balance by PhP0.04M
representing expired sofwares; (ii) discrepancies
among the balances of the controlling general ledger
accounts, supporting schedule and physical count; and
(iii) non-maintenance of PPELC and PCs to support
the accounting schedule of PPE; and (c)
overstatement of inventory accounts balances by
PhP0.07M.
National   The balances of PPE accounts totaling PhP91.92M at
Commission year-end was unreliable due to the failure of
on Management to reconcile various records affecting
Indigenous PPE, non-conduct or incomplete physical inventory-
Peoples taking, and non-preparation and non-submission of
(NCIP) the Report on Physical Count of PPE (RPCPPE).
National   The Audit Team was not able to establish the fairness
Security of presentation of the balances of Office Supplies
Council Inventory and PPE accounts amounting to PhP0.44M
(NSC) and PhP83.18M, respectively, due to discrepancies
between the gross costs reflected in the Report on the
Physical Count of Inventories (RPCI) and the Report
on the Physical Count of Property, Plant and
Equipment (RPCPPE) and the accounting records,
amounting to PhP0.40M and PhP2.23M, respectively.
The same account balances showed material
uncorrected discrepancies in CY 2014 which caused
us to qualify our audit opinion on the financial
statements relating to that year.
Movie and 
Television
Review and
Classification
Board
(MTRCB)
Optical 
Media Board
(OMB)
Games and   The balance of Cash in Bank-Local Currency, Current
Amusement Account (CIB-LCCA) was understated by the
Board (GAB) unrecorded amount of PhP4.06M deposited in Special
Bank Accounts without authority; Cash account and
Accumulated Surplus account balances were both
understated by a net amount of PhP2.80M resulting
from several erroneous accounting entries; while, PPE
account was overstated by PhP0.70M equivalent to
the carrying value of unserviceable property which
278

was already disposed but not derecognized in the
books of accounts.
National 
Intelligence
Coordinating
Agency
(NICA)
Philippine   Erroneous recording of stale checks resulted to
Racing overstatement of Cash-MDS, Regular and
Commission Accumulated Surplus accounts both by PhP0.49M;
(Philracom)  Unrecorded collections and deposits to the Bureau of
the Treasury in the amount of PhP0.32M resulted to
understatement of Cash-Treasury/Agency Deposit,
Regular and the related income accounts; and
 Non-recognition in the books of prepayment in the
amount of PhP0.02M resulted to understatement of
Prepaid Insurance and overstatement of Insurance
Expense account, respectively, by the same amount.
Housing and 
Land Use
Regulatory
Board
(HLURB)
Note: The AARs of the following offices/agencies under Cluster 1 are not yet transmitted: OVP, PIA
and PSC. MLs were issued to CFL, NAP, NLP, PCDSPO and DDB.
Cluster 2- Legislative and Oversight
Bureau of   The carrying amount of the Inventory account of
Local PhP1.25M is unreliable due to (a) non-recording of the
Government issuance of supplies and materials amounting to
Finance PhP0.19M and failure to maintain and update Supplies
(BLGF) Ledger Cards (SLCs) in RO VIII; and (b) costing of
inventories which is not in accordance with Philippine
Application Guidance (PAG) 2 of PPSAS 12 and non-
maintenance of SLCs in RO VII. Moreover, in RO I,
common-use supplies were procured from suppliers other
than the Procurement Service (PS).
 The carrying amount of the Property, Plant and
Equipment (PPE) accounts totaling PhP35.01M is
unreliable due to (a) non-conduct of physical count in the
CO and ROs I, VIII and IX; (b) failure to derecognize
Furniture and Fixtures donated to various government
agencies totaling PhP1.31M with corresponding
accumulated depreciation of PhP0.90M in the CO; (c)
non-recognition of the land donated by the Regional
Development Council (RDC) in Region II and PPE
amounting to PhP0.19M in RO IX; (d) non-maintenance
of PPE Ledger Cards (PPELC) and Property Cards (PCs)
in ROs V, VIII and XII; and (e) misclassification of PPE
in RO IV. Moreover, issuances of various PPE to end-
users were not covered by Property Acknowledgement
Receipt (PAR) in ROs IX and XII.
Bureau of   Due to inadequate/incomplete records/documents,
Treasury unclaimed balances held by banks, buildings and loan
(BTr) - associations and trust corporations and escheated bank
Proper balances were not properly reported, monitored, and
collected by the Bureau of Treasury (BTr)-Central Office
(CO) resulting in an undetermined amount of income
279

forgone and understatement of Other Receivables
account by PhP19.44M.
 The balance of the PPE account of PhP1,781.01M is
unreliable due to various deficiencies noted in the
recording, inventory and custody of PPE and
maintenance of PPE Ledger Cards (PPELC) and Property
Cards (PC) in BTr-CO and ROs IX, XII and XIII.
Further, in BTr-CO, the balance of the Other Assets
account is unreliable due to a net difference of
PhP15.77M between the carrying amount and the amount
per Inventory and Inspection Report of Unserviceable
Properties (IIRUP).
 The balance of Fidelity Insurance Income account of
PhP773.49M includes the balance of BTr-NCR
amounting to PhP198.90M which cannot be relied upon
due to a) variances between the reported income per
Authority to Accept Payment (ATAP) and per deposit
slips (DS) and related proof of payments of PhP0.72M
and PhP0.29M in BTr-National Capital Region (NCR)
and RO I respectively; and b) erroneous assessment of
Fidelity Bond premium resulting in a net understatement
of Fidelity Insurance Income account by PhP0.66M.
Bureau of   The Cash in Bank balance as of December 31, 2015 of
Treasury PhP513,702.76M is unreliable due to (a) unreconciled
(BTr) - NG 25 cash-in-bank subsidiary ledger accounts with net
discrepancies of (PhP19.32M); (b) non-preparation of
bank reconciliation statements (BRS) for 116 cash in
bank accounts; and (c) closed cash in bank accounts but
still with net book balances totaling PhP1,405.50M.
 The balances of Cash-Treasury/Agency Deposit, Special
and Cash-Treasury/Agency Deposit, Trust accounts as of
December 31, 2015 of PhP199,647.61M are unreliable
due to (a) discrepancies between the BTr books and
confirmed balances by the National Government
Agencies (NGAs) amounting to PhP24,019.98M and
PhP32,016.49M, respectively; (b) presence of negative
balances in the total amount of PhP36,922.99M; and (c)
duplication of subsidiary ledgers (SLs) of 21 NGA
accounts, each bearing distinct account codes and entries.
 The balance of the Cash-TRA account in the amount of
PhP780.89M is unreliable due to advance recording of
transactions received at later dates.
 The cash resources of the government could have
increased by at least PhP20,600.13M had serious efforts
been made to monitor and collect idle/unutilized funds
held in various AGDBs of NGAs pursuant to Executive
Order (EO) No. 338 dated May 17, 1996 and the
Permanent Committee Joint Circular No. 4-2012 dated
September 11, 2012, which exposed government funds to
risk of unauthorized expenditures by NGAs instead of
providing additional funds to augment the needs for
urgently necessary and priority projects of the
government.
 The cash remittances recorded by the NCAD was
understated by at least PhP282.94M due to unrecorded
remittances, which the NCAD failed to capture in their
records because of lack of review of the reports submitted
280

by the Collecting Officer (CO) and absence of fully
enforceable monitoring tool in the case of remittances
thru banks.
 The balance of Cash in Bank-Treasury Single Account
(TSA) (NG BSF), Sinking Fund-Treasury Bonds (NG
BSF) is unreliable due to the (a) unreconciled difference
of PhP158,872.63M between the amount of Annual
Sinking Fund (SF) contributions recorded in the books of
accounts and the amount reflected in the Domestic Debt
Service Requirements (DDSR) Schedule prepared by the
Payment Division (PD); (b) non-provision of SF
contribution for CY 2015 for six outstanding securities;
and (c) non-reversion to the unallocated cash balance of
the NG of BSF contributions for the 10 and 25 year
Benchmark Bonds of at least PhP199,844.55M.
 The propriety and validity of the PhP1,007.79M paid for
the capital or quota subscription and revaluation or
maintenance of value to foreign financial institutions
could not be ascertained due to the absence of the SARO.
 The ownership, existence and accuracy of the Investment
in GOCCs account in the amount of PhP226,948.25M as
of December 31, 2015 could not be determined due to (a)
unreconciled balances between the BTr and GOCCs’
books of accounts showing an absolute discrepancy of
PhP3,177.70M; (b) unconfirmed 55 sub-accounts with an
aggregate book balance of PhP101,498.16M; and (c)
inclusion of PhP35.96M investments in NGAs and
private entities.
 The balances of Interest Receivable and Interest Income
accounts as of December 31, 2015, amounting to
PhP43,496.99M and PhP41,182.97M, respectively, are
both overstated by PhP49.24M, due to erroneous
recognition as Interest Income of interest received from
investment in bonds which should have been credited to
Interest Receivable since this was already recognized as
receivable at the time of investment.
 The account Due from GOCCs in the amount of
PhP503,402.75M is understated by PhP20.95M due to
non-recording of the remaining receivable on the USD90
million relent to the Bangko Sentral ng Pilipinas (BSP).
 The balance of the Acquired Assets account amounting
to PhP74,892.86M is understated by PhP10,359.65M
due to (a) discrepancies between the records of the BTr
and PMO, showing an understatement of the acquired
assets recorded in the BTr by PhP10,216.73M; and (b)
unrecorded sequestered asset (Boracay Mansion) valued
at PhP142.92M.
 The balance of the Loans Payable-Foreign account as of
December 31, 2015 amounting to PhP766,721.97M is
unreliable due to discrepancies of PhP6,639.90M in 74
loan account balances between the Status Report of the
Debt Monitoring Analysis Division (DMAD) and
Schedule of Loans Payable-Foreign submitted by the
NGDAD.
 The existence, completeness and accuracy of the balance
of Due to GOCCs account amounting to PhP21,323.81M
could not be ascertained due to (a) discrepancies between
281

BTr books and confirmed balances by the GOCCs
amounting to negative PhP2,314.51M; and (b)
unrecorded amount of PhP6,000.64M disclosed in the
result of the confirmation made of the accounts of the
BTr with the GOCCs concerned.
 The NG Share from PAGCOR’s income from 2011-2014
was deficient by PhP24,053.93M due to (a) failure of the
BTr to account and bill PAGCOR of its under-
remittances despite the opinion rendered by the COA on
the subject matter in favor of the NG; and (b) failure to
require PAGCOR to submit the certified monthly
statements of gross earnings after franchise tax payable
and audited year-end financial statements, thereby,
depriving the NG of the needed resources for the
implementation of its programs/projects.
 The accuracy of income from PMO remittances could not
be determined due to (a) absence of written approval
from the Privatization Council (PrC) on retentions made
by PMO from collection proceeds; (b) delayed
remittances ranging from 14 to 1,430 days contrary to
Section 6 of EO No. 323 dated December 6, 2000
resulting in understatement of income recognized in CYs
2011, 2013 and 2014 by PhP0.04M, PhP30.86M, and
PhP9.39M, respectively, and overstatement in CY 2015
by PhP40.29M; and (c) recording as income of the
remittance for the compensation of the understatement
of transfer price of Northern Cement Corporation (NCC)
to NG amounting to PhP5.89M instead of as reduction
to Due from GOCCs-LBP (DAR-DBP/NCC).
Cooperative   The Cash in Bank-Local Currency, Time Deposits (CIB-
Development LCTD) with year-end balance of PhP41.27M is
Authority unreliable due to (a) inclusion of dormant accounts
(CDA) totaling PhP40.31M; (b) absence or inadequacy of
documents to support the account; (c) unrecognized and
unremitted interest income of PhP0.02M and PhP0.06M,
respectively; and (d) erroneous recognition of the return
of Investment in Stocks of PhP0.96M as redemption of
time deposit.
 The accuracy of the Investment in Stocks account of
PhP123.21M is doubtful due to (a) unreconciled
difference of PhP23.58M between the book balance and
the aggregate value of the Stock Certificates in the
custody of the Cashier; (b) discrepancies in the
recognition of the investment between the records of the
Cashier and Accounting; and (c) lack of documents to
prove the existence of the account.
 The CDA-Manila and Dagupan Extension Offices (EOs)
have not taken action against defaulting cooperatives
with due and demandable loans receivable for more than
19 years amounting to PhP0.44M and PhP1.17M,
respectively, which is in violation of the CDA Policies
and Procedures on Lending. Moreover, these accounts
have no supporting documents, thus, affecting the fair
presentation of the Loans Receivable – Others account in
the financial statements.
 The CDA-CO’s Building account with carrying amount
of PhP29.79M was incorrect due to (a) non-recognition
282

of the cost of Training Center amounting to PhP2.50M
which was received by the CDA as return of investment
from a closed cooperative; (b) inclusion of equipment
amounting to PhP0.46M; (c) inclusion of professional
fees of PhP0.34M for an on-going renovation of the
stockroom and penthouse instead of recognizing as
Construction in Progress – Buildings and Other
Structures; and (d) failure to recognize depreciation, in
violation of PPSAS Nos. 1 and 17 and COA Circular No.
2013-002 dated January 30, 2013.
 The validity, completeness and existence of the PPE
totaling PhP107.74M are doubtful due to (a)
unrecognized 70 units of IT equipment received by the
CDA-CO and the transfer of 60 units of these equipment
to various CDA-EOs amounting to PhP1.27M and
PhP1.08M, respectively, and the transfer of motor
vehicle and various equipment amounting to PhP0.56M
from CDA-CO to Tacloban EO; (b) failure of the CDA-
CO to monitor and keep records/documents of
transferred vehicles and equipment to various
cooperatives totaling PhP7.73M; (c) unaccounted
motorcycle units and laptop totaling PhP0.49M at CDA-
CO and Manila EO; (d) non-recognition in the books of
CDA-CO of impairment loss for assets held for disposal
with carrying amount of PhP0.22M and the disposal of
various unserviceable equipment amounting to
PhP0.12M; (e) erroneous recognition as Office Supplies
Expense of purchased equipment amounting to
PhP0.24M and misclassification of PPE totaling
PhP1.65M at CDA-CO; and (f) failure to conduct
physical count of PPE and non-maintenance of PPE
Ledger Cards and Property Cards by the CDA-CO,
Manila and Pampanga EOs. Moreover, the CDA-Manila
EO did not prepare Property Acknowledgement Receipts
for equipment issued, while the CDA-Manila, Dagupan
and Pampanga EOs failed to insure the assets with the
General Insurance Fund (GIF) of the GSIS.
 The Other Assets account balance of CDA-CO of
PhP18.06M is unreliable due to inclusion of (a) various
items amounting to PhP17.11M, the nature or the purpose
of which could not be identified; (b) items amounting to
PhP0.14M which were erroneously capitalized instead of
expended; and (c) leasehold improvements of PhP0.17M
which no longer serve its purpose, contrary to P.D. No.
1445 and PPSAS No. 1.
 The carrying amount of Other Payables of PhP786.55M
is unreliable due to inclusion of dormant accounts and
those with no valid claims totaling PhP785.75M and
abnormal balance of PhP0.39M. Also, the carrying
amount of Accounts Payable of PhP8.46M includes
accounts for reversion amounting to PhP0.65M and
abnormal balance totaling PhP0.01M.
Department   The accuracy of the PhP1.94M balance of the account
of Budget Cash-Treasury/Agency Deposit, Trust is doubtful due to
and existence of significant discrepancy of 2,506.33 percent
Management between the records of the Department of Budget and
(DBM)
283

Management (DBM) and the Bureau of the Treasury
(BTr) totaling PhP48.64M.
 The balance of the account Due from NGAs of
PhP563.35M is unreliable due to a) discrepancy of
PhP25.44M and PhP0.06M between the beginning
balances per books of the DBM-Central Office (CO) and
National Capital Region (NCR), respectively, and the
Procurement Service (PS) books; b) unrecorded
deliveries in the books of DBM-CO and NCR totaling
PhP1.27M and PhP0.48M, respectively; c) existence of
SL accounts totaling PhP9.73M which remained
outstanding for two to 13 years in the books of DBM-CO;
d) unrecorded liquidation report submitted by the
National Youth Commission (NYC); e) unaccounted
difference between the balances per DBM-CO and
DOST-National Computer Center (NCC) books; and (f)
non-submission of the Report of Disbursements to DBM
by the concerned national government agencies (NGAs).
 The accuracy of the balance of the Due from Officers and
Employees account amounting to PhP0.88M is doubtful
due to existence of SL accounts in DBM-CO totaling
PhP0.70M which have been dormant from four years to
more than 18 years.
 The PhP6.37M balance of Inventory accounts is
unreliable due to (a) unrecorded deliveries of PhP0.48M
in NCR; (b) unreported issuances to end-users in NCR;
(c) incomplete/not-updated stock cards in NCR; (d)
understatement of the account balance due to
simultaneous recording of office supplies delivered and
issued in DBM-CO; (e) doubtful validity of issuance of
supplies and materials totaling PhP1.47M in DBM-CO;
(f) non-reconciliation between property and accounting
records in NCR; and (g) non-compliance with the
conduct of physical count and submission of Report on
the Physical Count of Inventory (RPCI) in RO 8.
 The carrying amount of PPE accounts as of December 31,
2015 totaling PhP1,086.55M is unreliable due to (a) net
understatement of PhP634.57M in the Buildings account
due to non-reclassification from Construction-in-
Progress account of completed buildings in the amount
of PhP651.66M and inclusion of four structures totaling
PhP17.09M which should be derecognized in the books
of DBM-CO; (b) unrecorded receipt of PPE items
totaling at least PhP0.38M in the books of NCR; (c)
overstatement of PhP9.35M in the Other Land
Improvements account in DBM-CO; (d) a net
discrepancy of PhP0.58M between the accounting and
property records of NCR, ROs 8 and 9; (e) classification
as PPE of items with acquisition cost of less than
PhP15,000.00 in the books of NCR; and (f) non-
compliance with pertinent rules and regulations on PPE.
Department   The receipt of the Technical Assistance (TA) under Grant
of Finance No. 8258 – PHI in the amount of USD1.00M for the
(DOF) – Capacity Building for Microinsurance financed by the
OSEC Japan Fund for Poverty Reduction (JFPR) and
administered by the Asian Development Bank (ADB)
and the disbursement charged thereto were not recorded
284

in the books of the DOF, although the amount was
deposited in the DOF US dollar and peso accounts
opened for the purpose, the authorized signatories of
which are all DOF officials. This affected the fairness of
the presentation of the Cash in Bank and the
corresponding expense accounts in the Financial
Statements.
 The carrying amount of Due from NGAs account as of
December 31, 2015 amounting to PhP19.10M is
unreliable due to (a) inclusion of dormant accounts
totaling PhP2.11M and (b) discrepancy of PhP4.63M
between the DOF and Procurement Service-Department
of Budget and Management (PS-DBM) records.
Moreover, advances to PS-DBM accumulated to
PhP16.98M due to undelivered supplies and equipment.
 The carrying amount of Other Receivables account of
PhP0.29M as of December 31, 2015 is unreliable due to
the presence of (a) undocumented accounts totaling
PhP0.25M; and (b) dormant accounts for more than ten
years amounting to PhP0.04M, contrary to Paragraph 29
of PPSAS 1 and COA Circular No. 97-001 dated
February 05, 1997.
 The correctness of the carrying amount of the Other
Prepayments account of PhP4.62M cannot be
ascertained due to (a) non-adjustment of the expired
portion of the prepayments amounting to PhP1.13M
which overstated this account and understated the
Subscription Expense account; and (b) lack of
documents to support the prepayments totaling
PhP3.49M, contrary to Paragraph 29 of PPSAS 1.
 The aggregate balance of PhP1,070.09M of the PPE
accounts as of December 31, 2015 could not be relied
upon due to (a) unrecognized Land and Buildings
accounts amounting to PhP22.07M; and (b)
derecognition of lost assets from the books without the
approved request for relief from accountability and/or
payment thereof by the concerned Accountable Officers
contrary to COA Circular No. 2015-002 dated March 9,
2015 and Section 73 of PD 1445, respectively. Moreover,
the Land costing PhP0.53M is not yet titled in the name
of the Republic of the Philippines.
 The reported balances of Due to Pag-IBIG and Due to
PhilHealth of (PhP0.01M) and PhP0.11M, respectively,
as of December 31, 2015 are unreliable due to (a)
inclusion of negative SL balance amounting to
PhP0.02M in the Due to Pag-IBIG account; and (b)
undocumented SL balance of PhP0.10M in the Due to
PhilHealth account. Likewise, premium contributions
and Pag-IBIG loan amortizations were not remitted on
time/unremitted.
Government 
Procurement
Policy Board
–Technical
Support
Office
(GPPB-TSO)
285

House of 
Representativ
es (HOR)
House of 
Representativ
es – Electoral
Tribunal
(HOR-ET)
Insurance   The aggregate balance of the PPE accounts totaling
Commission PhP504.77M is unreliable due to (a) discrepancies
(IC) totaling PhP439.73M between the accounting records
and the Report on the Physical Count of PPE (RPCPPE);
(b) inconsistent and improper classification of PPE; and
(c) undocumented balances of PPE totaling PhP5.03M.
Legislative-   The unreliability of the net book value of the PPE account
Executive as of December 31, 2015 of PhP1.26M due to the
Development unreconciled difference of PhP1.13M between the
Advisory physical count of PhP2.09M and the general ledger
Council balance of PhP3.22M.
(LEDAC)
Municipal   The carrying amount of Inter-Agency Receivables of
Development PhP442.16M is unreliable due to the (a) unliquidated
Fund Office fund transfers of completed projects of PhP41.65M; (b)
(MDFO) negative and unreconciled SL balances, both with same
amount of PhP0.08M, under account Due from LGUs; (c)
unconfirmed receivables under account Due from NGAs;
(d) unsubstantiated balance of Due from NGAs account
of PhP1.18M pertaining to the Community Based
Resource Management Project (CBRMP); and (e)
erroneous recording of funds transferred to the National
Irrigation Administration (NIA) in the amount of
PhP0.74M. Moreover, the account includes outstanding
receivables for one year to more than five years.
National   The accuracy of the consolidated balance of the PPE and
Economic Intangible Assets accounts of PhP1,216.77M and
and PhP1.05M, respectively, as at year-end is doubtful due to
Development (a) unaccounted properties of NEDA-CO totaling
Authority PhP28.11M; unrecognized PPE amounting to PhP6.12M
(NEDA) at NEDA-CO; and unrecognized completed building in
NRO III valued at PhP48.0M; (b) misclassification of
Furniture and Fixtures as Other Assets in the total amount
of PhP13.26M at NEDA-CO; (c) inclusion of disposed
obsolete PPE and Intangible Assets totaling PhP39.69M
in the NEDA-CO; (d) unresolved differences in the
aggregate amount of PhP73.0M between the Report on
the Physical Count of PPE (RPCPPE) and the balances
of PPE accounts; and (e) unreconciled difference of
PhP63.45M between the general ledger (GL) and PPE
Ledger Cards (PPELCs) in NRO XIII and RDC.
Moreover, properties amounting to PhP57.43M were not
insured with the GSIS General Insurance Fund and
Property Replacement Fund in the Cordillera
Administrative Region (CAR); and unserviceable
properties were not disposed in NROs IX and X.
 Funds transferred to NGOs/POs and
LGUs/NGAs/GOCCs totaling PhP109.23M remained
unliquidated as of December 31, 2015 despite completion
286

of the projects, which is contrary to the provisions of
Section 5.4 of COA Circular No. 2007-001 and Sections
6.4, 6.5 and 6.7 of COA Circular No. 94-013, and
consequently affected the reliability of the Due from
NGAs/ GOCCs/ LGUs/ NGOs/ POs account balances.
 The validity, accuracy and existence of the Receivables
account of the NEDA-CO of PhP38.15M and Other
Current and Non-Current Assets of PhP13.90M as of
December 31, 2015 are doubtful due to (a) existence of
dormant accounts of PhP19.70M aged more than 5 years;
(b) unconfirmed balances totaling PhP19.35M and (c)
unreconciled difference of PhP9.40M between the books
of NEDA and the implementing agencies.
 The recognized monetary value arising from unserved
obligations of sixteen (16) reneging NEDA scholars
amounting to PhP16.10M was still understated by
PhP2.65M due to non-recognition of the receivables from
two (2) scholars from NROs. Moreover, these
receivables totaling PhP18.74M remain uncollected as of
December 31, 2015.
 Unserviceable furniture and fixtures were reclassified as
Other Assets, hence, the balances of the Furniture and
Fixtures and Other Assets accounts as of December 31,
2015 in the NEDA-CO are understated and overstated,
respectively, by PhP13.27M.
 The accuracy of the account Cash in Bank – Local
Currency, Current Account totaling PhP17.67M in
NEDA-CO is doubtful due to: a) unreconciled difference
between the book and bank balances amounting to
PhP0.31M; b) delayed submission of monthly Bank
Reconciliation Statements (BRS) in the CO and NRO III;
and c) failure to effect the necessary adjusting entries for
the overstatement of PhP0.10M in the Cash in Bank -
Local Currency, Current Account in NRO V as appearing
in the BRS.
 The negative/abnormal balance of Inter-Agency Payable
accounts totaling PhP2.57M has affected the reliability of
the total liabilities account balance at year-end of
PhP113.13M.
 Leased property in NRO V with a total purchase price of
PhP0.39M, classified as Finance Lease, was not
recognized as Asset with the corresponding Liability
account upon acquisition. Further, lease payments
thereof amounting to PhP0.02M monthly were booked-
up as Printing and Publication Expenses contrary to
Philippine Public Sector Accounting Standards No. 13,
Volume I, resulting in the misstatement of the Leased
Assets - Machinery and Equipment, Finance Lease
Payable, Printing and Binding Expenses and
Depreciation Expenses - Machinery and Equipment
accounts at year end.
National Tax 
Research
Center
(NTRC)
Philippine 
National
287

Volunteer
Service
Coordinating
Agency
(PNVSA)
Philippine   The balance of the Inventories account amounting to
Statistical PhP1.25M is doubtful due to: (a) issued semi-expendable
Research and items still classified as Office Supplies Inventory totaling
Training PhP0.15M; (b) unrecorded issued supplies and materials
Institute of PhP0.36M; (c) incomplete maintenance of Supplies
(PSRTI) Ledger Cards; and (d) late submission of the Report of
Supplies and Materials Issued (RSMI).
 The carrying amount of the PPE account of PhP8.39M is
unreliable due to the (a) unreconciled net difference of
PhP0.09M between the GL balance of PhP19.45M and
the Report on the Physical Count of Property, Plant and
Equipment (RPCPPE) of PhP19.36M; (b) difference
between the GL and Subsidiary Ledger (SL) balance of
PhP1.31M and (c) misclassified Communication
Equipment of PhP0.99M and Office Equipment of
PhP0.41M.
 The carrying amount of the Due to NGAs account of
PhP16.55M (net of due to UNICEF of PhP0.72M) is
unreliable due to (a) the recording of transferred funds
from the Philippine Statistics Authority (PSA) in the
amount of PhP4.02M as Training Fees (Income account)
instead of Due to NGAs; (b) delayed submission of
liquidation reports of completed projects of PhP13.52M;
and (c) delayed submission of the Report of
Disbursements of PhP2.08M for on-going commissioned
research projects to the source agencies (SA) contrary to
COA Circular No. 94-013.
 The balance of Cash - Treasury/Agency Deposit, Trust
account amounting to PhP13.88M is understated by
PhP0.03M due to non-cancellation of stale checks.
Philippine   The carrying amount of the Inventory accounts of
Statistics PhP38.44M is unreliable due to (a) non-reconciliation of
Authority physical count with the accounting records in NCR and
(PSA) Regional Office (RO) VII; (b) recognition of purchases
of inventories as outright expense in NCR and ROs IX
and X; (c) non-updating and non-maintenance of Stock
Ledger Cards (SLCs) and Stock Cards (SCs) in NCR,
ROs VI, IX and XIII; (d) non-conduct of physical
inventory taking and non-preparation/non-submission of
Report on the Physical Count of Inventory (RPCI) in ROs
V, VI, VII and IX; (e) non-preparation of Requisition and
Issue Slip (RIS) and Report of Supplies and Materials
Issued (RSMI) in RO IX; and (f) non-recognition of
accountable forms as Inventories in RO X.
 The carrying amount of PPE of PhP731.24M is
unreliable due to (a) erroneous computation of
depreciation in the CO and NCR; (b) unrecognized PPE
totaling PhP0.50M in CO, ROs I, II, III and V and the
unrecognized transfer of PPE from CO in RO V; (c)
lost/missing/unaccounted PPE of PhP130,709.00 in
NCR; (d) non-preparation/erroneous preparation of the
Report on the Physical Count of PPE (RPCPPE); and
288

non-maintenance of PCs and PPE Ledger Cards
(PPELCs) in NCR, ROs I, III, V, VI, VII, IX and X.
Moreover, proper practices were not observed in the
management and tracking of PPE.
 Out of the balance of the Due from GOCCs account of
PhP93.60M as of December 31, 2015, PhP86.86M
pertains to the fund transferred to Philhealth, which
remained unliquidated for over seven years now contrary
to the rules and regulations prescribed under COA
Circular No. 94-013 dated December 13, 1994 and the
Memorandum of Agreement (MOA).
 The balance of the Trust Liabilities account of
PhP270.56M as of December 31, 2015 is unreliable due
to (a) non-accrual of income to the Accumulated Surplus
of the General Fund; (b) disbursements of Civil Registry
System-Information Technology Project (CRS-ITP)
government share and Office of the Civil Registrar
General (OCRG) trust funds without authority from the
Permanent Committee; (c) defects in the administration
of the OCRG trust funds; and (d) non-recognition of
expenses. Moreover, excess collections from sale of bid
documents were not remitted to the BTr.
Privatization   Time deposits of PhP229.39M includes unremitted
Management interest amounting to PhP1.73M under the retention fund
Office and security deposits amounting to PhP9.32M, contrary
(PMO) to the provision of Section 3 and Section 6, respectively,
of the General Provision of the FY2015 General
Appropriations Act (GAA). Moreover, Interest Income
account is understated by PhP2.43M while Trust
Liabilities and Government Equity accounts are
overstated by PhP1.73M and PhP0.70M, respectively,
due to accounting errors.
 The PMO failed to enforce strictly the controls over the
grant, utilization and liquidation of cash advances as
prescribed in Section 89 of Presidential Decree No. 1445
and Items 5.1 and 5.8 of COA Circular No. 97-002,
hence, Advances account is overstated by PhP0.26M,
representing amount already due for liquidation, while
the corresponding expenses are understated by the same
amount.
 The PMO did not fully comply with paragraph 29(c) of
the Philippine Public Sector Accounting Standard
(PPSAS) 1 and items 38, 40, 43 and 44 of PPSAS 30 as
it failed to provide complete disclosure of the events and
information which have material impact on the
receivables of PhP13.86M from Philnico Industrial
Corporation and the nature and extent of risks associated
to it including the Management policies and processes for
managing the risk, casting doubt on the fairness of
financial statements presentation as of December 31,
2015.
Procurement   The correctness of the balances of Cash in Bank–Local
Service (PS) Currency Current Account (LCCA) and Cash in Bank-
Local Currency Savings Accounts (LCSA) totaling
PhP4,539.70M could not be ascertained due to delayed
submission/non-submission in PS-Main and RD V-
Legazpi of the required Bank Reconciliation Statements
289

(BRS), in violation of Section 74 of PD 1445 and non-
adjustment of reconciling items due to lack of supporting
documents.
 The carrying amount of the PPE accounts totaling
PhP108.20M is unreliable due to (a) incomplete Report
of Physical Count of PPE (RPCPPE); (b) non-
maintenance of PPE Ledger Cards (PPELC) by the
Accounting Division; (c) unreconciled difference of
PhP168.81M between the RPCPPE and the accounting
records; and (d) disposed PPE items with carrying
amount of at least PhP0.87M are still retained in the
books, all in the PS-Main.
 The carrying amounts of the Due to NGAs, Due to
GOCCs and Due to LGUs accounts of PhP14,805.23M,
PhP545.74M and PhP65.33M, respectively, are
unreliable due to (a) abnormal subsidiary ledger (SL)
balances totaling PhP112.42M; (b) difference of
PhP6.69M between the general ledger (GL) and the SL
balances; (c) differences between the book balances and
the amounts confirmed by the NGAs, GOCCs and LGUs;
(d) overstatement of the balance of Due to NGAs
account by PhP1.44M due to unrecorded deliveries to
concerned NGAs; (e) non-moving/dormant balances
ranging from three years and above totaling
PhP333.38M, all in the PS-Main book; and (f)
inaccurate SL balances in Regional Depot (RD) V-
Legazpi City and RD VII-Cebu City.
 The year-end balance of Inventories totaling
PhP805.22M as of year-end is not reliable due to a) direct
charging of supplies and materials purchased to expense
account in PS-Main; and b) the unreconciled balances
between the Stock Ledger Summary and the
Storekeeper’s Bin Cards in RD III-Pampanga.
Public- 
Private
Partnership
Center of the
Philippines
Securities   The carrying amount of the PPE accounts totaling
and PhP178.67M is inaccurate and unreliable due to (a)
Exchange unreconciled difference between the Report on the
Commission Physical Count of PPE (RPCPPE) and the accounting
(SEC) records amounting to PhP1.0M; (b) discrepancies
between the Depreciation Expense reflected in the 2015
Financial Statements and the supporting Lapsing
Schedules; and (c) inadequate controls in the
management of PPE, contrary to the provisions of
Paragraph 27 of PPSAS.
 The carrying amount of the Liabilities accounts totaling
PhP105.15M (net of Trust Liabilities) could not be relied
upon due to (a) unreconciled differences totaling
PhP205.93M compared with the Due and Demandable
amount in the SAAODB of PhP311.09M; (b) dormant
accounts of PhP1.32M; and (c) abnormal balance of
payables amounting to PhP0.42M.
Senate 
Electoral
290

Tribunal
(Senate-ET)
Tariff   The carrying amount of the PPE account as of December
Commission 31, 2015 of PhP2.94M is unreliable due to inclusion of
(TC) Intangible Assets and small tangible assets amounting to
PhP0.19M and PhP0.40M, respectively, which were also
subjected to depreciation. Moreover, the starting month
in the computation of depreciation as provided for under
the Philippine Application Guidance (PAG) 3 of
Philippine Public Sector Accounting Standards (PPSAS)
17 was not followed resulting in the overstatement of
accumulated depreciation by PhP0.01M and the
understatement of the other affected/related accounts.
Note: MLs were issued to AMLC, BOC-OCOM, BIR, CBAA, Commission on Appointments, and Senate
Cluster 3-Judiciary and Constitutional Offices
Sandiganbay   Understatement by PhP381.62M of the Cash in Bank -
an Local Currency, Time Deposits (LCTD) and Trust
Liabilities accounts due to the non-recording of cash
deposits maintained in High Yield Savings Accounts
(HYSA).
Court of Tax 
Appeals
Commission  ü  Unreliable balance of the Due from NGAs - PS-DBM

on Human due to unreconciled difference of PhP1.83M between the
Rights CHR and PS-DBM records.
 Unreliable PPE accounts totaling PhP50.66M
unreconciled difference of PhP32.62M between property
and accounting records; inclusion of unserviceable
properties totaling PhP2.56M and non-submission of
RPCPPE by CHR RO VI for consolidation with the
Central Office.
 Unreliable Office Supplies Inventory account by
PhP1.29M due to non-recording of deliveries of supplies
and materials and non-submission of RSMI.
Career   Non-restoration of the cash equivalent of unreleased
Executive checks totaling P1.70M as of year-end understating CIB-
Service LLCA and Accounts Payable;
Board  Net understatement of the PPE accounts by PhP3.62M
due to reclassification of unserviceable properties which
included PPE already donated to the Other Assets
account; and
 Overstated Construction in Progress account by P8.5M
due to inclusion of payment for mobilization fees and
improper setting up of liability for the contract.
Note: Untransmitted CAARs/AARs: SCP, PET, CA, CSC, COA, OMB, COMELEC
Cluster 4-
Defense and
Security
Department   The balance of the Cash in Bank-Local Currency Current
of Interior Account (LCCA), Cash- MDS, Special Account and
and Local Cash- MDS, Regular totaling PhP676.246 million as at
Government year-end was mistated due to the: (a) difference of
PhP6.872 million between the book and bank balances;
(b) non-cancellation of stale checks totaling
PhP86,111.33; and (c) non-preparation and non-
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submission of Bank Reconciliation Statements in Central
Office and three regions.
 The accuracy of the balance of Due from National
Government Agencies, Due from Local Government
Units and Due from Regional Offices totaling PhP15.53
billion at year-end was doubtful due to the: (a)
discrepancy of PhP423.68 million between the DILG
book balances and those of the implementing
agencies/regional offices; (b) unrecorded deliveries by
PS-DBM of PhP2.624 million; (c) accounting errors of
PhP31,472.30 in recording deliveries/liquidations by PS-
DBM; (d) unaccounted difference of PhP7.667 million
between the DILG and PS-DBM records without
supporting documents; (e) erroneous recording of fund
transfers to LGUs totaling PhP117.693 million as
Financial Assistance to LGUs instead of Due from
LGUs; and (f) variance of PhP233.859 million between
the balance per books and supporting schedule of the
account in Region IX.
 The accuracy of the balance of Inventory accounts
totaling PhP3.854 million as of December 31, 2015 was
doubtful due to: (a) direct recording of procured office
supplies totaling PhP8.927 million as expense instead of
inventories in Regions IV-A and IV-B; and (b) non-
recording of issued inventories totaling PhP243,591.17
in Region III. Moreover, physical count of supplies and
materials totaling PhP1.897 million was not conducted in
Regions II and III contrary to Section 65 of MNGAS
Volume II. Furthermore, Supplies Ledger Card and Stock
Cards were not maintained by the Accounting Unit and
Supply Unit in Region III.
 The accuracy and reliability of the Property, Plant and
Equipment (PPE) accounts with an aggregate balance of
PhP903.858 billion as of December 31, 2015 were
doubtful due to: (a) untitled land and building valued at
PhP34.490 million;(b) unreconciled discrepancy of
PhP182.185 million between the accounting and property
records; (c) accounting errors totaling PhP1.56 million
resulting in the understatement of PPE accounts and the
understatement/overstatement of related accounts; and
(d) failure to conduct physical count of PPE at year-end
in Region V; and non-maintenance of PPE Ledger Card
and Property Card.
 The accuracy of the balance of Other Assets account of
PhP77.599 million at year-end was doubtful due to: (a)
inclusion of untitled land valued at PhP770,000.00; and
(b) classification as Other Assets of (i) various PPE
totaling PhP44.442 million; (ii) various serviceable but
fully depreciated PPE totaling PhP4.668 million; and (iii)
unserviceable PPE totaling PhP11.503 million.
Moreover, various unserviceable properties totaling
PhP10.697 million remained not disposed of as at year-
end; thus exposed to damage and further deterioration
which could diminish its sale/scrap value.
 In Region IV-B, the accuracy of the balance of the
liabilities accounts aggregating PhP38.470 million as at
year-end was doubtful due to: (a) the recognition of
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liability to LGUs amounting to PhP33.386 million for the
implementation of RAY Batch 3 projects without valid
claim; and (b) inclusion of Other Payables amounting to
negative PhP0.810 million.
Philippine   Advances to Payroll, Advances to Special Disbursing
Public Safety Officers (SDO), and Advances to Officers and
College Employees amounting to PhP46.46M, PhP81.47M and
(PPSC) PhP1.31M, respectively or a total of PhP129.24M
remained unliquidated as of December 31, 2015 due to
the failure of the accountable officers to submit
liquidation reports/documents contrary to Section 89 of
PD 1445 and COA Circular No. 97-002 dated February
10, 1997. Moreover, the balance of Advances to Special
Disbursing Officer included cash advances not yet
granted totaling PhP32.31M representing obligation of
various expenses resulting in the overstatement of
Advances to Special Disbursing Officers and Account
Payable accounts both by the same amount.
 Bank Reconciliation Statements for Cash-Modified
Disbursement System (MDS) Regular Account were not
prepared regularly contrary to Circular No. 92-125A
dated March 4, 1992.
 The accuracy of balance of the Inventory accounts
totaling PhP32.53M as of December 31, 2015 was
unreliable due to: (a) non-submission of Report of
Supplies and Materials Issued (RSMI) valued at
PhP20.59M by the Supply Officers assigned at the
different Regional Training Centers (RTCs) and
Constitutive Units (CUs) to the Supply Section of the
PPSC Head Office; (b) erroneous recording of office
supplies amounting to PhP11.08M as expenses instead of
Office Supplies Inventory; and (c) various accounting
errors totaling PhP0.26M resulting in the overstatement
of Office Supplies Expenses by PhP0.04M and the
understatement of Fidelity Bond Premiums by
PhP0.02M, Repair and Maintenance-Transportation
Equipment by PhP0.02M, PPE by PhP0.22M and
Accumulated Surplus (Deficit) by PhP0.22M.
 The accuracy, existence and reliability of the Property,
Plant and Equipment (PPE) accounts with an aggregate
balance of PhP783.75M as at year-end were doubtful due
to the: (a) failure to conduct physical count on land,
buildings, structure and facilities valued at PhP433.71M;
(b) discrepancy of PhP95.77M between the balances per
books and per Report on Physical Count of Property,
Plant and Equipment (RPCPPE); and (c) erroneous
classification of various equipment totaling PhP5.68M as
expenses.
 The PPSC could have saved an estimated cost of
PhP4.04M for CY 2015 representing honoraria of in-
house and guest instructors had the concerned training
units/centers reviewed and evaluated the total number of
trainees admitted before the start of the class/course
taking into account the available classroom
capacity/quota per class of the training facilities
Local 
Government
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Academy  The balance of Due from LGUs, Due from NGAs and
(LGA) Due from NGOs/POs has accumulated to PhP151.80M
as at year-end due to the failure of the Implementing
Agencies (IAs) to submit the required reports/documents
for the liquidation of the fund transfers received.
Moreover, the accuracy of the year-end balance of the
account Due from NGAs of PhP130.89M was doubtful
due to the discrepancy of PhP2.59M between the balance
per LGA books and the balance appearing in the books
of five Implementing Agencies (IAs).
 The accuracy and reliability of the PPE accounts with an
aggregate balance of PhP35.41M at year-end were
doubtful due to: (a) unreconciled difference of PhP1.11M
between the balances per books and per Report on the
Physical Count of Property, Plant and Equipment
(RPCPPE); (b) non-maintenance of PPE Ledger Cards
and Property Cards by the Accounting Office and
Property Office, respectively; (c) unaccounted property
totaling PhP0.19M; and (d) adjustment without
supporting documents on various PPE amounting to
PhP5.91M, Accumulated Depreciation of
PhP3.06M,
Depreciation Expenses of PhP2.62M and Accumulated
Surplus/Deficit of PhP11.59M.
 Expenses for meals and hotel accommodation totaling
PhP9.84M incurred during the conduct of trainings and
seminars during the year were not supported with
complete documentation contrary to Section 4(6) of
presidential Decree No. 1445. Moreover, the cost of four
trainings/seminars amounting to PhP4.68M exceeded the
allocated budget of PhP3.03M by PhP1.65M.
National   The accuracy of the Cash in Bank – Local Currency,
Police Current Account of PhP79.09M as at year–end was
Commission doubtful due to: (a) unrecorded book reconciling items
(Napolcom) totaling PhP0.47M consisting of (i) receipt of funds
transferred totaling PhP0.44M; (ii) interest income of
PhP0.03M; and (iii) debit memo of PhP1,080.00 without
supporting document; (b) non-cancellation of stale
checks totaling PhP0.09M; and (c) delayed and/or non-
preparation of Bank Reconciliation Statements (BRS).
 The accuracy and reliability of the Inventory accounts
with an aggregate amount of PhP4.66M was doubtful due
to: (a) variance of PhP0.27M between the accounting and
property records; and (b) non-maintenance of Supplies
Ledger Card by the Accounting Unit and Stock Cards by
the Supply Unit.
 The accuracy of the balance of the PPE accounts
aggregating PhP2.18M as of December 31, 2015 cannot
be relied upon due to: (a) unreconciled difference of
PhP0.02M between the property and accounting records
in NCR; (b) non- provision of depreciation for three types
of PPE valued at PhP1.70M and over provision of
depreciation totaling PhP0.01M for two types of PPE; (c)
disposed unserviceable PPE still recorded in the books of
accounts; (d) derecognition of various PPE without
supporting documents; (e) unrecorded major
repairs/construction of various structures totaling
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PhP122.04M; (f) unrecorded value of the Quezon City
office building; (g) non-maintenance of Property Cards
(PC) and PPE Ledger Cards (PPELC) by the Accounting
Unit and Property Unit, respectively; and (h) non-
submission of Report on the Physical Count of Property,
Plant and Equipment (RPCPPE). Moreover, the title of
the land with an area of 1,700.09 square meters as a result
of the JVDA was not yet transferred in the name of the
NAPOLCOM.
 The accuracy of the balance of Other Payables account
of PhP2.31M was doubtful due to: (a) negative balances
in five subsidiary ledgers of Central Office aggregating
PhP0.51M; (b) non-recognition of liability to
financial/lending institutions totaling PhP0.91M
resulting in the understatement of Other Payables and
Other Personnel Benefits accounts both by the same
amount; and (c) presence of forwarded/beginning
balances totaling PhP0.23M without supporting
documents.
 In Central Office, the payment of pension benefits to the
members of the Philippine National Police (PNP) and
National Police Commission (NAPOLCOM) under
Presidential Decree Nos. 1184 and 448 amounting to
PhP28.34M for January 2016 and PhP27.60M for
January 2015 were recorded as expenses in CYs 2015
and 2014 and charged against the unused cash allocations
for the 4th quarters of CY 2014 and 2015, respectively,
contrary to Paragraph 4.2.1 of National Budget Circular
No. 556 dated January 5, 2015. This resulted in the net
overstatement of Police Benefits and the understatement
of Cash in Bank – Local Currency, Current Account both
by PhP0.74M.
 Implementation of projects undertaken under the JVDA
between and among BCDA, Consortium of Megaworld
Corporation, Empire East Land Holdings, Inc. and First
Centro Inc. was not closely monitored and reviewed by
the Project Management and Development Committee;
hence, compliance with the commitments, timetable and
terms of the Agreement (including amendments thereto)
were not assured. Moreover, title to the land and
ownership of the Quezon City Office Building were not
yet transferred to and recorded in the books of the
NAPOLCOM.
 Advances to Officers and Employees totaling PhP1.26M
remained unliquidated as of December 31, 2015 contrary
to Section 5.8 of COA Circular No. 97-002. Of the said
amount, PhP0.03M pertained to the accounts of
accountable officers who were either retired, transferred
to other government agencies or on AWOL status in
Central Office and Region VII.
 The security provider of NAPOLCOM-Central Office
has been rendering services without valid contract since
2009 contrary to Item 5, Appendix 16, Revised Rules and
Regulations of RA 9184. Moreover, the BAC failed to
conduct post qualification of the declared single
calculated bidder in the bidding conducted in April 2015
for the procurement of security services, within 30
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calendar days from the determination of the lowest
calculated bid/highest rated bid or within the period of
action on the procurement activities contrary to Annex C
of the revised IRR of RA 9184.
 In Regions VIII and X, the mandatory monthly net take
home pay of Three Thousand Pesos (PhP3,000.00) was
not observed resulting in the payroll payments of below
PhP3,000.00 to some personnel, contrary to Section 48
of the General Provisions of General Appropriations Act
of FY 2015.
 In Region XIII, cash incentives granted to nine
employees or PhP0.03M each in the form of Medical
Allowance, Dietary Supplement and Laboratory Test
Allowances, Food Basket Allowance and CNA exceeded
the allowed maximum rate of CNA cash incentive of
PhP25,000.00 contrary to the provision of Section 4.2.3
of DBM Budget Circular No. 2015-2 and Administrative
Order No. 103. Moreover, the payment of CNA
incentive was not supported with documents as required
in Section 5.16 of COA Circular 2012-001 to establish
the validity of the claim.
 Claims against government funds totaling PhP4.80M
were effected even without complete documentation
contrary to Section 4(6) of PD No. 1445.
Bureau of   The reported balance of Cash in Bank-Local Currency
Fire Current Account (CIB-LCCA) totaling PhP13.30M was
Protection unreliable due to (a) unreconciled balances of PhP2.22M
(BFP) between the bank statements and with the accounting
records of the BFP-NHQ; (b) unrecorded bank account
balance of PhP0.46M; (c) unrecorded deposit of
PhP0.44M; and (d) non-preparation and/or delayed
submission of the monthly Bank Reconciliation
Statements (BRS), contrary to Section 74 of PD 1445 and
COA Circular No. 96-011, which resulted in the
difficulty of establishing the accuracy, completeness, and
existence of the agency’s Cash account balances at year-
end.
 The balance of Inventory accounts totaling PhP43.97M
was unreliable due to: (a) non-recording of issuances in
the amount of PhP14.46M; (b) outright charging to the
expense account purchases totaling PhP7.97M; (c)
recording to the Inventory accounts of procured PPEs
aggregating PhP2.71M; (d) non-recording of donated
drugs and medicines; (e) inclusion of non-existing and
missing inventory in the amount of PhP12.16M; (f) non-
conduct of physical count of inventories - PhP6.91M; and
(g) non-maintenance and non-reconciliation of
subsidiary ledger cards (SLC) and stock cards (SC).
 The Deposit on Letters of Credit account balance at the
BFP-NHQ amounting to PhP1,074.70M is unreliable due
to (a) the inclusion of PhP45.13M which had been
dormant for a period of 20 years;, and (b) unrecorded
withdrawal amounting to PhP248.75M against the
marginal deposit.
 The PPE accounts with consolidated balance of
PhP9,429.67M as of December 31, 2015 was inaccurate
due to the: (a) non-recording of the delivered fire trucks
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and the completed Office building amounting to
PhP248.75M and PhP10.00M, respectively;
donated ambulance, equipment totaling PhP1.00M and
motor vehicle and radio equipment with no valuation
cost;
(b) discrepancy of PhP1,736.60M in PPE account
balances between the Accounting and Property records;
(c) non-provision for depreciation expense; and (d) other
issues/lapses relative to the non-updating/non-
maintenance of PPE Ledger Cards (PPELC), Property
Cards (PC) and non-conduct of physical inventory.
 The failure of management to furnish DBM with a copy
of the Withdrawal Authorization from the financing
institution has led to the non-issuance of Non-Cash
Availment Authority (NCAA), and caused the account
Foreign Assisted Project-Accounts Payable (FAP-AP) to
trigger and overstate the account by PhP1,135.08M at
year end;
 The validity, accuracy and propriety of Due to Officers
and Employees amounting to PhP36.27M could not be
established due to inadequate supporting schedules
and/or subsidiary ledgers, contrary to Section 111(1) of
PD 1445 and Section 12 of the MNGAS, Volume II.
 The mandate of the BFP to establish at least one fire
station in every province, city and municipality
nationwide, equipped with adequate personnel and
facilities, was not attained due to the non-construction of
316 fire stations resulting in the lapsing of allotment
amounting to PhP488.14M and non-utilization of capital
outlay of PhP110.00M released under the 2015 GAA, or
a total of PhP598.14M.
 Inadequate planning resulted in the non-utilization of
funds totaling PhP26.08M intended for the (a) repair of
Fire Stations in the NCR (PhP16.81M) and (b) repair and
maintenance of fire trucks and ambulances (PhP9.27M)
depriving the fire fighters of the much needed
modernized equipment during operations.
 The objective/purpose of the Transition Investment
Support Plan (TISP) of the government to institutionalize
vital governance reforms particularly the improvement
on the delivery of basic services was not attained due to
failure of management to procure the 33 fire trucks, with
allocated fund of PhP199.17M, intended for the
Autonomous Region in Muslim Mindanao (ARMM).
 Cash advances totaling PhP27.87M remained
unliquidated at year-end, contrary to COA Circular No.
97-002 dated February 10, 1997. Further, additional cash
advances were granted to accountable officers with long
outstanding cash advances, in violation of Section 89 of
PD 1445.
 The BFP (NHQ, NCR and Region 4B) transferred in
2015 funds totaling PhP931.30M to PS-DBM for the
procurement of firefighting equipment, accessories and
operational requirement of the management despite prior
year’s balance of PhP429.79M, resulting in the
accumulation of funds totaling PhP1,361.09M at year-
end.
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 Authorized service fees amounting to PhP68.65M could
have been collected had management imposed and/or
outright deducted the same from remittances made to
various lending institutions/insurance firms for
subsequent remittance to the National Treasury.
Bureau of   The year-end balance of Cash - Collecting Officers
Jail account amounting to PhP0.01M was inaccurate due to
Management unrecorded collections and deposits in ROs 1, 8 and 13
and Penology totaling PhP0.01M, contrary to Sections 63 and 68 of PD
(BJMP) 1445 and Section 22 of the Manual on the New
Government Accounting System (MNGAS), thereby
understating the Cash accounts at year-end by the same
amount and exposing cash collections from possible
misuse and misapplications of funds.
The existence and accuracy of inventories valued at
PhP19.94M could not be established due to the (a)
understatement in the inventory balance for the unused
portion of purchases recorded as outright expenses in
ROs 5, 9 and 10 contrary to the accounting policy of
Perpetual Inventory System; (b) difference of PhP0.12M
between the Accounting and Property records of
inventory in NHQ; (c) failure of NCR and RO 9 to
conduct physical count; (d) non-maintenance of
inventory records by the Supply Accountable Officer
(SAO) and the Accounting Office in RO 2; (e) non-
submission of the Report of Supplies and Materials
Issued (RSMI) in NCR and RO 2.
 The year-end balance of Property, Plant and Equipment
(PPE) totaling PhP1,198.51M (net of depreciation) was
inaccurate due to (a) net overstatement of PhP1.43M of
PPE accounts; (b) unreconciled difference of
PhP21.,62M between the property and accounting
records; and (c) doubtful ownership of the land and
buildings recorded in the books at PhP149.67M.
 Major repairs and improvement of BJMP-NCRO
facilities totaling PhP4.08M were classified as expenses;
and the ongoing construction in Manila City Jail
amounting to PhP4.70M was not recorded in the
Construction in Progress – Buildings and Other
Structures account thereby understating Asset and Equity
Accounts.
 Cash advances for Prisoners’ Subsistence Allowance
granted to the Regional Disbursing Officers in ROs 1, 3,
6 and 12 were transferred to the different Jail Wardens,
who are not bonded, contrary to Section 4.1.6 of COA
Circular No. 97-002 dated February 10, 1997, thereby
exposing funds to possible misapplication and misuse.
Moreover, deficiencies such as incomplete
documentation of liquidation reports were noted in NHQ,
NCR, ROs 1, 3, 6, 8 and 11, contrary to the provisions of
COA Circular Nos. 2012-001, 2005-002 and 95-006
dated June 14, 2012, April 14, 2005 and May 18, 1995,
respectively, and BJMP Memorandum Circular No.
2010-03 dated October 15, 2010.
 The balances of Due from Officers and Employees, Other
Receivables, Advances for Payroll and Advances to
Officers and Employees accounts totaling PhP16.45M of
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NHQ, NCR and RO 3 remained uncollected/
unliquidated as of year-end; of which PhP0.71M or 4.32
percent were outstanding for over one year to more than
three years. The unliquidated advances totaling
PhP13.91M resulted in the understatement of expenses
by the same amount.
 The year-end balance of Due from NGAs account in
NHQ amounting to PhP37.92M was doubtful due to the
(a) difference of PhP0.31M between the BJMP and PS-
DBM book balances; and (b) inclusion of dormant
account of DILG amounting to PhP0.90M which was
already dropped from DILG books. Moreover, the
unused balance from transferred funds to NCC
amounting to PhP0.09M was not returned to BJMP
contrary to Par. 4.9 of COA Circular No. 94-013.
 Unserviceable properties totaling PhP1.81M as of
December 31, 2015 classified as Other Assets in NCR
were not disposed of contrary to Section 79 of PD 1445;
thus, exposing them to further deterioration and loss of
resale value.
 Donations in kind such as supplies and materials, tables,
computers, television sets and bed bunks from the Local
Government Units (LGUs) and other sources for
financial support or assistance to the local jails of RO 9
are not recorded in the books resulting to understatement
of the agency’s assets.
 Not all common-use supplies and materials were
procured from the Procurement Service of DBM contrary
to RA No. 9184 and AAAAO No. 17 dated July 28, 2011,
among others.
Philippine   The accuracy of the cash balances totaling
National PhP3,119.21M could not be ascertained due to: (a) the
Police (PNP) difference of PhP308.74M between the balance per
books and per bank of Cash In Bank –Local Currency
Current Account (CIB-LCCA) of NHQ account; (b)
existence of dormant special and trust fund account
totaling PhP5.34M; (c) non-existing Land Bank of the
Philippines (LBP) and Philippine National Bank (PNB)
accounts totaling PhP3.23M; (d) non-restoration to cash
of stale checks totaling PhP0.02M in PRO IVA and IVB;
(e) non-recording/adjustment of reconciling items
totaling P0.46M noted in the Agency’s bank
reconciliation statements (BRS); and (f) delayed/non-
submission of the Bank Reconciliation Statement (BRS)
in the NHQ and some Police Regional Offices (PROs).
 Collections in CAR and PRO 8 of PhP1.06M were not
recorded/deposited due to failure of the Collecting
Officer to include the collections in the Monthly Report
of Collections and Deposits, resulting in the
understatement of Cash Collecting Officer account.
 The PCSO-STL share of PRO 6 for CY 2015 was not
timely recorded in the books caused by the late
remittance of PhP10.16M and unremitted amount of
PhP5.90M, while collections of PhP35.86M in PRO IVA
could not be ascertained due to incomplete monthly
reports of remittances and/or un-submitted data on GS,
contrary to PCSO Resolution No. 511, series of 2014.
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Likewise, in PRO 5, guidelines on the utilization and
reporting of the PCSO STL Fund set forth under PNP
Memorandum Circular No. 2011-002 dated January 17,
2011 was not fully complied which precluded the
verification of whether the disbursements incurred for
programs and activities implemented during the year
were in accordance with the approved Program of
Expenditures (POE).
 The Due from NGAs account balance of PhP3,595.54M
includes dormant accounts in the amount of PhP155.30M
due to failure of the Implementing Agencies (IAs) to
submit the required report/documents for the liquidation
of fund transfers since 2000 and prior years/during the
time of PC/INP for various projects within the prescribed
period pursuant to COA Circular No. 94-013 dated
December 13, 1994; thus, resulting in the accumulation
of huge dormant balances. Moreover, the balance of Due
from NGAs PS-DBM has accumulated to PhP3,276.57M
as at year-end due to the transfer of PhP169.99M in CY
2015 to PS-DBM despite inability and failure of the same
to deliver prior years’ APRs. Moreover, the accuracy and
existence of the account balance could not be relied upon
due to unaccounted receivable totaling PhP0.28M from
the Procurement Service.
 The reported balance of inventory accounts as of
December 31, 2015 amounting to PhP1,986.91M is
unreliable due to (a) difference of PhP21.44M between
the accounting and inventory records; (b) supplies
totaling PhP128.82M recorded as outright expenses; (c)
non-submission of Report of Supplies and Materials
Issued (RSMI); (d) failure of management to conduct
physical count and to submit the Report of Physical
Count of Inventories (RPCI); and (e) Supply Leger Cards
and Stock Cards were not updated/maintained, contrary
to Sections 9, 10, 11, 13 and 17 – Chapter 8, Volume I of
the Government Accounting Manual (GAM) for National
Government Agencies (NGAs).
 The existence and accuracy of the Property, Plant and
Equipment (PPE) accounts with an aggregate amount of
PhP19,971.35M is unreliable due to the: a) unreconciled
difference between the inventory report and accounting
records in the NHQ and PROs amounting to
PhP9,920.00M because: (i) PPE Ledger Cards (PPELC)
were not maintained; (ii) inclusion of 1991 balances
brought forward from PC/INP amounting to
PhP1,088.48M; (iii) unrecorded acquired/donated and
transferred properties PhP108.92M; (iv) Property Cards
(PCs) were not updated; (v) failure to conduct physical
inventory and/or non-submission of Report of Physical
Count of PPE; b) completed projects totaling
PhP58.48M under the Construction in Progress were not
transferred to appropriate PPE account; and (c); non-
provision of depreciation.
 The balance of the Land account amounting to
PhP4,632.79M is unreliable due to the inclusion of five
parcels of land valued at PhP15.81M located in Tacloban
City and the 65,879 square meters lot located at PNP
300

NHQ as well as in Camp Panopio with no proof of
ownership.
 Various unserviceable equipment carried in the Other
Assets account of the PNP NHQ totaling PhP4.59M
were not disposed because: (a) it includes 1991 balances
from the PC/INP of PhP0.85M that could no longer be
accounted due to the unavailability of supporting
documents; and (b) various unserviceable equipment
transferred/donated from PAOCC and PACER recorded
at PhP3.63M and one unit motor vehicle from Crime
Laboratory Group of PhP0.10M can no longer be
identified due to the current condition at the disposal yard
where various unserviceable properties other than the
recorded items in the other assets account were dumped.
Moreover, unserviceable properties in NCRPO valued at
PhP15.54M were piled up in the disposal yard for years
and were not disposed, contrary to Section 79 of PD
1445; thus, exposing the properties to further
deterioration and loss.
 The Work/Zoo Animals account balance as of December
31, 2015 valued at PhP31.58M was of doubtful validity
due to the: a) unrecorded K-9 procurement, offspring and
acquired through donations totaling PhP4.73M; b) non-
replacement of returned ineffective K-9 units valued at
PhP1.50M; c) non-dropping from the books the value of
the expired dogs in the amount of PhP3.41M and K-9
units acquired in the years 1995 and 1997 valued at
PhP8.31M, totaling PhP11.71M; and d) failure of the
Supply Accountable Officer (SAO) to update the
Inventory Report.
 Accounts Payable (A/Ps) which have remained
outstanding for two years in the amount of PhP3.49M
was not reverted to Accumulated Surplus/Deficit account
under the revised chart for National Government
Agencies per COA Circular No. 2014-003 dated April
15, 2014, following the guidelines outlined in Joint
Circular No. 99-6 dated November 13, 1999. Moreover,
the inclusion of unpaid obligations amounting to
PhP0.74M earmarked for taxes, duties and licenses,
fidelity bond premiums and insurance expenses and
unliquidated cash advances is contrary to Section 37,
Chapter 2 of the Government Accounting Manual
(GAM) for National Government Agencies (NGAs),
Volume I.
 Funds received from JICA – Philippine Office totaling
PhP13.97M were not utilized due to the failure of
management to conduct/implement and complete any
trainings stated in the Memorandum of Agreement
(MOA) entered into by and between the JICA –
Philippine Office and the Philippine National Police –
Crime Laboratory Group ( PNP - CLG) on June 1, 2010.
Moreover, the unutilized balance was not returned to the
Source Agency, JICA, contrary to COA Circular 94-013
dated December 13, 1994.
 The Memorandum of Agreement (MOA) entered into by
and between the PNP and Public Safety Mutual Benefit
Fund, Inc. (PSMBFI) is disadvantageous to the agency
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due to: (a) the absence of imposition of penalty clause
specially in the non-payment of monthly rental fee
totaling PhP62,000.00 for the period July 2010 to date;
and (b) the inclusion of the provision that the cost of
operations and maintenance of the building including real
estate tax, insurance coverage and costs for repairs will
be shouldered by the agency, resulting in increased
maintenance and other operating expenses by PhP
0.97M.
Department   The reliability and accuracy of Cash - Modified
of National Disbursement System (MDS) and Cash in Bank-LCCA
Defense account cannot be ascertained due to non-reconciliation
(DND) of the book balance with the bank balance as of
December 2015 as a result of the delayed submission of
the bank statements. Moreover, stale checks that were
still accounted as outstanding checks remained
unadjusted resulting to understatement of the CIB-
LCCA account by PhP0.05M.
 Cash advances totaling PhP3.07M, consisting of
advances granted for local and foreign travels and those
for special activities and projects, remained unliquidated
as of year-end in violation of COA Circular No. 97-002
on the grant, utilization and liquidation of cash advances.
 Unliquidated fund transfers to NGAS, GOCCs and LGUs
continue to exist as at the year-end in the amounts of
PhP747.91M, PhP10.31M, and PhP1.52M, respectively,
due to delayed liquidation, and existence of dormant
balances. Liquidation of prior years’ inter-agency fund
transfers is only 36 percent despite management’s efforts
in monitoring fund transfers from Implementing
Agencies. Moreover, the year-end balance of the Due
from NGAs account was inaccurate due to the
discrepancies of PhP38.50M between DND books and
the Implementing Agencies.
 The Inventories accounts totaling PhP46.62M is
unreliable due to management’s failure to reconcile
records and record the adjusting entries to recognize the
issued inventories thus affecting the inventories and the
related expense accounts.
 The PPE accounts balance of PhP238.38M was
unreliable due to (a) discrepancy of PhP35.08M between
the balance appearing in the Accounting records and
Report of Physical Count of Property, Plant and
Equipment (RPCPPE); (b) unrecorded PPEs of
PhP94.82M; (c) erroneous recording of dormitory
costing PhP0.59M; and (d) continued existence of
unreconciled balances of PhP102.54M. The balance of
Other Assets of PhP21.13M was unreliable due to the
absence of supporting documents to validate existence
and accuracy of the account.
 Accounts Payable account recorded in the books at
PhP0.19M is unreliable due to the existence of negative
balances amounting to PhP0.11M and outstanding
balances aged 2 years and above totaling PhP0.20M
which should have been verified and reconciled to
present fairly the account in the financial statements.
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 The balance of the Due to BIR account as of December
31, 2015 is unreliable due to inclusion of negative
balances from the account of various DND employees
and Suppliers in the amount of PhP0.05M. Likewise, the
balance of Due to GSIS account is also unreliable due to
negative balances amounting to ₱0.07M.
 ICT equipment and resources, in the aggregate amount of
PhP12.01M, were procured under the rent-to-own
agreement using the appropriation for Maintenance and
other operating expenses (MOOE), which is a
circumvention of established laws, rules and regulation
on the proper use of government funds. Moreover, the
procured ICT equipment and resources were not recorded
as assets of the agency thus the Information and
Communication Technology equipment account was
understated by PhP9,12M.
 Various supplies and equipment requested from PS-
DBM in the aggregate amount of PhP6.84M remained
undelivered as of December 31, 2015 due to failure to
monitor the deliveries, thus, deprived the management of
the use of the requested items and the funds for more
urgent needs.
 The Procurement of various items out of QRF are costlier
or higher in prices by at least PhP1.97M compared with
the purchases by other government agencies and/or
prices by other entities due to failure of management to
set up reasonable ABCs for their projects, thus, are
disadvantageous to the government.
 QRF in the aggregate amount of PhP128.63M was
utilized for fund transfer for repairs and reconstruction of
DND and Bureaus’ facilities which are not in accordance
with the purposes of QRF, and as transfer of funds to
Implementing Agencies with huge unliquidated
balances, resulting to slow utilization of the funds and
non-liquidation thereof and delayed the full completion
of disaster-related projects, prejudicial to the calamity
victims who are the intended beneficiaries of QRF.
Moreover, some items procured out of QRF were priced
higher or excessive by at least PhP1.97M; thus, are
disadvantageous and likewise rendered unreasonable the
procurements from QRF.
 The DND fleet card scheme with Petron lacks the
necessary security feature that would prevent
unauthorized use, thus casts doubts on the proper use of
the Fuel, Oil and Lubricants.
 The correctness and validity of the payments to JO
Personnel under Job Order – Other Professional Services
for the period June 16 to December 31, 2015, totaling
PhP5.89M, could not be ascertained due to non-
submission of original payrolls and required attachments
such as Daily Time Record (DTR), Accomplishment
Report and Contract of Service. Moreover, the hiring of
90 personnel on Job Order basis which is 36 percent of
the 249 filled-up plantilla positions of the department
defeats the purpose of the Rationalization Plan which was
approved in 2013.
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National   The Cash-in-Bank – Local Currency, Current account
College of amounting to PhP4.91M was understated by PhP0.23M
the due to non-recording of the reconciling items noted
Philippines during reconciliation of the book balance with the bank
(NCP) statements as of December 31, 2015.
 Accounts Receivable amounting to PhP0.11M as of
December 31, 2015 continued to exist despite
management’s effort to collect the same; thus, depriving
the College of the needed funds to finance the expenses
related to the conduct of seminar/training on National
Security.
 The Inventory accounts totaling PhP0.39M is unreliable
due to the existence of unreconciled difference of
PhP0.02M between the balance per book and the balance
per Report of Physical Count of Inventories (RPCI).
 The correctness of Other Asset account amounting to
PhP0.60M consisting of unserviceable property could not
be ascertained due to the absence of the Inventory and
Inspection Report of Unserviceable Property (IIRUP) as
required under Section 64 of the MNGAS.
 Management failed to submit the notice of payment and
monthly report to the mother agency of recipient officials
regarding the honorarium paid to the latter in violation of
COA Circular No.85-25E dated April 25, 1985.
Office of the   The balance of the Cash in Bank – Local Currency,
Civil Defense Current Account (CIB-LCCA) of PhP443.03M was
(OCD) unreliable due to errors in posting of entries in the books
of accounts and unrecorded liquidation in the General
Journal (GJ) which resulted in the overstatement of
PhP0.11M.
 The balances of the PPE accounts totaling PhP13.67M
were unreliable due to: (a) non-submission of Report of
Physical Count of PPE; (b) discrepancies between
Accounting Records and Property Cards; (c) completed
project still recorded in the Construction in Progress
Account. Thus, existence and integrity of the accounts
were not established.
 The balance of Other Assets account of PhP4.08M was
unreliable due to the unreconciled difference of
PhP0.96M between the accounting records and the
Inventory and Inspection Report of Unserviceable
Property (IIRUP) which is the basis of recording the
unserviceable property, thus affecting the fair
presentation of the financial statements. Further, the
agency failed to dispose all unserviceable property
contrary to Section 79 of PD 1445.
 The Due to BIR Account balance as of December 31,
2015 was unreliable due to (a) erroneous recording of tax
remittances in the net amount of PhP0.02M, resulting in
the understatement of the account; and (b) unreconciled
difference of PhP0.04M between the total debit and
credit balances in the General Ledger and General
Journal. Moreover, the amount of PhP0.06M of the
ending balance of PhP0.56M cannot be accounted for due
to the non-maintenance of subsidiary ledgers per region.
 The Travelling Expense – foreign account with reported
balance of PhP3.65M as of December 31, 2015 was
304

overstated by PhP2.11M due to errors in
recording/posting of the expenses incurred from
Travelling – Local and Training in the General Journal to
Travelling – Foreign Expense account in the General
Ledger. This resulted also in the understatement of the
Travelling Expense and Training Expense accounts.
 Cash Advances granted to Officers and Employees for
foreign travels were in excess by 24 percent to 945
percent compared to the actual expenses incurred,
contrary to Section 3.1.1.2 of COA Circular No. 96-004
dated April 19, 1996 as reiterated by Section 4.5.1 of
COA Circular No 97-002 dated February 10, 1997.
Likewise, additional cash advances for foreign travel
were granted even before the liquidation of the previous
cash advances contrary to Section 4.1.2 of COA Circular
97-002 dated February 10, 1997.
 A total of 52 cash advances granted to Special Disbursing
Officers and various officers and employees in the
amount of PhP8.75M and PhP2.80M, respectively,
remained unliquidated as at year end contrary to COA
circular No. 97-002 and Section 89 of PD 1445.
 Various reports together with the supporting documents
were not submitted to the audit teams in the Regions
within the prescribed period depriving the timely conduct
of validation/verification of transactions and substantive
test to ascertain the validity and accuracy of the balances
of the accounts.
 The disbursement vouchers for payment for various
transactions were not adequately supported with the
required documents contrary to Section 4.6 of PD 1445
and Section 5.7.4 and 9.2 of COA Circular NO. 2012-001
dated June 14, 2012 affecting the validity and correctness
of the claims.
Veterans   Non-conformity with the Annual Procurement Plan
Memorial (APP) and prolonged inventory lead time resulted to
Medical inadequate supply of drugs and medicines in the Center,
Center which hindered the rendition of quality medical services
(VMMC) to veteran patients as mandated by Republic Act (RA)
No. 6948. Further, the inadequacy in the supply of
medicines resulted to the purchase of medicines out of
petty cash amounting to PhP5.23M and veteran
reimbursement totaling PhP5.99M.
 The account Cash in Bank – Local Currency Current
Account (CIB-LCCA) is overstated by a net amount of
PhP20.20M due to: (a) double recording of the fund
transfer received amounting to PhP30.00M; (b)
erroneous recognition of the fund balance of PhP9.00M;
and (c) unrecorded reconciling items, PhP0.80M.
 The Allowance for Impairment – Accounts
Receivable/Impairment Loss – Loans and Receivable of
PhP0.51M was recognized using only a rate equivalent
to a fixed five percent (5%), which was not a reasonable
estimate, contrary to the provisions of Paragraphs 37
and 38 of Philippine Public Sector Accounting
Standards (PPSAS) 3.
 The balance of the due from MGAs account of
PhP5.28M was inaccurate and unreliable due to the
305

discrepancy of PhP3.56M on the inter-agency fund
transfers of PhP4.25M and unrecognized test results
evidencing liquidations totaling PhP0.07M
 The reported SL balance of the Due from NGAs – PS-
DBM account amounting to PhP0.89M was unreliable
due to the discrepancy of PhP0.23M with the PS-DBM
confirmed balance of PhP0.66M, which is caused by: (a)
unrecognized deliveries amounting to PhP0.04M; (b)
refund by PS-DBM amounting to PhP0.08M already
recognized in the PS-DBM books bur remained
uncollected by the Center; and (c) unaccounted prior
year’s difference of PhP0.11M.93.
 The balance of the Other Receivables account of
PhP4.53M was inaccurate and unreliable due to the: (a)
erroneous recording/adjustment of PhP0.30M; (b)
negative balance of PhP0.15M in the subsidiary ledgers
(SLs); (c) dormant receivables totaling PhP2.85M; and
(d) inclusion of SLs with no breakdown/specific totaling
PhP0.01M. Further, no allowance for impairment is
provided to present the fair value of the account.
 The PPE accounts with aggregate balance of
PhP1,162.51M was unreliable due to: (a) non-dropping
from the books the value of disposed unserviceable
PPEs totaling PhP4.55M; (b) inclusion of lost/missing
properties totaling PhP1.29M; and (c) non-recognition
of impairment loss for impaired assets.
 The total reported balance of the Accounts Payable (AP)
of PhP40.37M was understated by PhP3.13M due to
failure of the Management to recognize their obligation
to different suppliers as required under Paragraph 19 of
PPSAS 19 and Sec. 4.s of MNGAS Vol. I.
 Various donated drugs and medicines remained unused
or unutilized as of year-end, of which, PhP0.05M worth
are nearing expiration as of December 31, 2015.
Further, these donated items in the aggregate amount of
PhP0.09M were neither reflected in the stock cards
maintained by the Supply Section nor recorded in the
books of accounts, resulting in the understatement of the
Income from Grants and Donations in Kind by the same
amount.
 The implementation of various infrastructure projects of
the VMMC, which were programmed in 2014, were
delayed due to the non- conformity with the provisions
of RA 9184 and likewise resulted in the difficulty in the
delivery of vastly needed services to the veteran patients
and their dependents.
Philippine  The difference of PhP508.77M between the book
Veterans  balance of Cash in Bank – Local Currency, Current
Affairs Account (CIB-LCCA) of PhP1,419.65M and the
Office adjusted bank balance of PhP910.88M remained
(PVAO) unadjusted in the books despite having been identified
in CY 2011, thereby rendering the account balance
unreliable and indicative of weak internal control in the
reconciliation of bank accounts.
 The Advances to Officers and Employees amounting to
PhP5.43M included unreconciled balances of
PhP5.10M, hence, unreliable. Further, cash advances
306

amounting to PhP0.33M remained not liquidated as of
year-end, contrary to paragraph 5.8 of COA Circular
No. 97-002 dated 10 February 1997.
 The Due from NGAs of PhP58.45M was unreliable due
to the undocumented and unaccounted prior years’ fund
transfers of PhP3.64M and unreconciled discrepancy of
PhP1.48M between the balances per Procurement
Service - Department of Budget and Management (PS-
DBM) and PVAO’s books of PhP6.12M and
PhP7.61M, respectively.
 The year-end balance of account Other Receivables
amounting to PhP415.68M and Pension Benefits
Payable of PhP953.50M were doubtful due to (a) the
existence of dormant other receivables of PhP239.67M
or 58 percent of the total Other Receivables; and (b)
absence of documents to support the validity of recorded
receivables amounting to PhP218.27M representing 53
percent of the Other Receivables. Further, the provision
of the MOA on the submission of liquidation of
remittances within a prescribed period was not strictly
enforced against savings and loan associations and
commercial banks resulting in low liquidation rate of
pension remittances and retention of cash amounting to
PhP154.42M by these entities, depriving PVAO of the
interest income that could be derived therefrom.
 The Inventories account with an aggregate balance of
PhP43.38M was unreliable due to (a) discrepancy of
PhP23.65M between the books and the Report of
Physical Count of Inventories (RPCI) for Office
Supplies Inventory, Drugs and Medicines for
Distribution and Fuel, Oil and Lubricants Inventory;
(b) the non-conduct of physical count of three inventory
accounts in the total amount of PhP8.76M; (c) the
continued existence in the books of unreconciled SL
balances amounting to PhP2.85M; and (d) accounting
errors resulting in overstatement/ understatement of
balances.
 The balances of the Property, Plant and Equipment
(PPE) accounts with aggregate balances of PhP376.22M
were doubtful due to the: (a) discrepancy of PhP77.78M
between the eight PPE accounts balances appearing in
the Accounting records and Report of Physical Count of
Property, Plant and Equipment (RPCPPE); (b) non-
conduct of physical inventory of five PPE accounts of
PhP14.58M; (c) uncertain ownership of a parcel of land
and a number of Motor Vehicles in the aggregate
amount of PhP5.18M; (d) demolished condemned
Office Building of PhP22.56M still carried in the books;
(e) recorded costs of donated Office Buildings of
PhP260.09M not supported with documents; (f)
unrecorded disposal of PPE amounting to PhP8.48M;
(g) two lost vehicles of PhP1.70M remained in the
Motor Vehicles account; and (h) unadjusted prior
years’ various accounting errors of PhP18.67M.
 Dormant payables totaling PhP7.30M, or 58 percent of
the recorded Accounts Payable of PhP12.65M, were
307

not reverted to surplus account contrary to Section 98
of PD 1445.
Armed   Unreliable databases of the Pension Management
Forces of the Information System (PenMIS) and Finance
Philippines- Management Information System (FMIS) and
General ineffective monitoring would not assure an accurate
Headquarters monthly payroll for pensioners resulting in: (a) high
(AFP-GHQ) incidence of overpayment of pension benefits to
deceased pensioners in CY 2015 and half of CY 2014
amounting to at least PhP126.82M, of which 65 percent
or PhP82.63M are possible leakage costs due to its
remote change of being recovered; (b) unmonitored
pension benefits of at least PhP1,078.12M credited in
the individual ATM account of 14,278 tagged or
doubtful pensioners’ accounts; (c) high occurrence of
unclaimed stale checks in CYs 2014 and 2015 with total
face value of PhP147.51M; and (d) 46 records with no
date of birth and/or date of service separation but still
included in the payroll, as shown in the December 2015
PenMIS, indicating lax data entry controls which is not
in keeping with the Standard Operating Procedures
Number 10.
 The Cash in Bank-Local Currency Current Account
(CIB-LCCA) year-end aggregate balance of
PhP9,507.16M is inaccurate and unreliable due to: (a)
non-recording of unidentified reconciling items of
PhP80.82M; (b) non-adjustment of stale checks totaling
PhP0.83M; (c) double recording of one and the same
LBP bank account under the Pension Fund and General
Fund; (d) erroneous treatment of a credit memo
amounting to PhP0.16M; (e) non-submission of BRS;
and (f) presence of unreconciled balance and dormant
bank accounts.
 Long outstanding balances of Advances to Officers and
Employees, Advances for Payroll, Advances to Special
Disbursing Officer, and Advances for Operating
Expenses of PhP161.39M, including erroneous
recording of liquidations of PhP0.55M, and non-
submission of liquidation documents rendered the
balance of cash advances unreliable and the
accumulation of unliquidated cash advances.
 The consolidated receivable account of PhP2,869.57M
was unreliable due to: (a) long outstanding balance and
unrecorded accounts receivable of PhP0.73M,
respectively; (b) long outstanding balance of Due from
NGAs, OUs and GOCC; (c) unrecognized Other
Receivables of PhP82.63M due to overpayment of
pension benefits to deceased pensioners; and (d)
presence of unreconciled balance and dormant accounts.
 The balance of inventory accounts were unreliable due
to: (a) non-conduct of physical count of inventories and
non-submission of the Report on the Physical Count of
Inventories (RPCI); (b) misclassification of PPE as
Other Supplies Inventory; (c) unrecorded donated
medicines and dental supplies; d) non-
preparation/delayed submission of the Report of
Supplies and Materials Issued (RSMI); (e) non-
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reconciliation of RPCI, SC and Supply Ledger Cards
(SLC) balances by the SAO and Field Accounting Unit
(FAU); and (f) presence of unreconciled balance
accounts in SL.
 The balance of PPE accounts of PhP9,362.02M was
unreliable due to: (a) non-conduct of physical count; (b)
non-submission of Report of the Physical Count of
Property, Plant and Equipment (RPCPPE); c)
unreconciled balances of GL and RPCPPE, and GL and
Property, Plant and Equipment Ledger Card (PPELC);
non-maintenance of PPELC and PC; (e) non-recording
of transfer of equipment to and from OUs; (f) non-
adjustment of the long outstanding Construction in
Progress (CIP) account of PhP67.70M to appropriate
PPE account; (g) presence of unreconciled balance
accounts in SL; and (h) missing SL support for the Land
account.
 The DLC balance of PhP37,231.05M was unreliable
due to: (a) DLC amounting to PhP17,747.79M were
already utilized/applied but not deducted from the
balance; (b) DLC of PhP120.43M was not withdrawn
notwithstanding the cancellation of the contract with
UM Merkata Doo; (c) unreconciled DLC SL balance of
PhP4.19M since CY 2005.
AFP-   Out of the Accounts Receivable – Trade of PhP10.97M
Commissary as of December 31, 2015, PhP3.19M or 29.70 percent
and of it remained dormant for 14 to 22 years and its nature
Exchange could not be determined due to absence of documents.
Service Moreover, PhP0.88M or 8.04 percent had been
(AFPCES) outstanding in the books from one to over four years
contrary to Section 73 of the MNGAS, Volume I and
COA Circular 97-001; thus; rendering the collectability
of the accounts uncertain. Further, three offices with
unsettled balances of P1.53M denied having liability
with AFPCES.
 Funds transferred to the Philippine Army have
accumulated to PhP9.56M as of December 31, 2015 due
to the non-submission of liquidation documents for
already completed projects and failure of AFPCES
Management to enforce the liquidation/settlement of
fund transfers and monitoring of the utilization as
required under COA Circular No. 94-013 dated
December 13, 1994
 Other Receivables – Non Trade of PhP68.60M
remained outstanding in the books of which,
PhP60.38M or 88 percent pertains to 241 accountable
officers who are no longer in active service, AWOL and
deceased. Majority of these receivables are dormant and
aged five years to 30 years due to absence of documents;
hence, collectability have become remote contrary to
COA Circular 97-001.
 Advances for Operating Expenses amounting
PhP0.44M were not liquidated as at year end, of which
PhP0.10M have remained outstanding for over two
years contrary to COA Circular No. 97-002 dated
February 10, 1997. It however included cash advances
for local travel of PhP0.11M, special purpose/time-
309

bound undertaking of PhP0.27M and payment of
honoraria of PhP5,175.00 which should have been
recorded as Advances to Officers and Employees,
Advances to Special Disbursing Officer and Advances
for Payroll, respectively, which resulted in the
overstatement of Advances for Operating Expense
account by PhP0.38M.
 The correctness and reliability of PPE accounts of
PhP104.17M could not be ascertained due to: (a)
derecognition/dropping of PhP19.08M undisposed full
depreciated PPE items in the books of accounts although
these were not yet disposed and without the required
supporting documents; (b) unreconciled difference of
PhP17.63M between Accounting records and Report on
the RPCPPE; (c) misclassification of PPE items totaling
PhP2.62M; and (d) small tangible items totaling
PhP0.11M classified as PPE, contrary to Section 82 of
PPSAS No. 17, Section 66 of MNGAS, Vol. II, COA
circular Nos. 2013-002 and 2005-002, respectively.
 The accuracy/correctness of the Cost of Sales and
Merchandise Inventory of PhP2,510.20M and
PhP466.67M, respectively, as December 31, 2015 could
not be relied upon due to: (a) total difference of
PhP42.89M between consolidated year-end inventory
report and reported total amount of ending inventory of
outlets; (b) failure of the Point of Sale (POS) system to
generate inventory reports and the amount of cost of
sales; (c) decrease in sales is lower by PhP7.80M as
compared to the decrease in Cost of Sales; and (d)
absence of three-way reconciliation of balances per
general ledger (GL), subsidiary ledger (SL) and
inventory count contrary to PAG 2 and Para 35 of
IPSAS No. 12, Section 43 and 73 of the MNGAS, Vol.
I.
 The regularity of the expenditure of PhP4.33M incurred
by Management for the procurement of POS system for
provincial outlets is uncertain due to: (a) non-
compliance with the Implementing Rules and
Regulations of RA 9184; and (b) deficiencies in the
disbursement Vouchers and supporting documents
contrary to the provisions of Section 4.6 of PD 1445,
Sec. 9.2 of COA Circular No. 2012-001 dated June 14,
2012. Moreover, copies of the contract/purchase orders
and its supporting documents were not submitted to the
Office of the Auditor for review as provided under COA
Circular No. 2009-001
 The authorized signatories and counter signatories of 35
designated cashiers, store manager and petty cash
officer of AFPCES outlets were not bonded, while the
collections of the three Accountable Officers exceeded
the maximum cash accountability covered by their bond
by as high as 68 percent up to 140 percent contrary to
Section 101 of PD 1445 and Treasury Circular No. 02-
2009 dated August 6, 2009; thus, funds in the hands of
the accountable officers were not protected in case of
loss.
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 The Accountable Officers of AFPCES outlets in Clark
Air Base and Camp O’Donnel perform dual functions as
Store Manager and fund Custodian in violation of the
standards and elements of a sound internal control
system; hence, implied weakness in the internal control
of the Agency which may result to the non-detection of
error and fraud.
 Goods/merchandise for sale were not marked with “Tax
Subsidized by the Philippine Government, Not for
Resale” contrary to Fiscal Incentive Review Board
(FIRB) Resolution No. 5-15 dated July 14, 2015 issued
by the Department of Finance (DOF); thus, exposing the
items purchased the great possibility that they will be
resold to other parties and defeating the purpose for
which the tax subsidy was granted.
Philippine   The year-end balance of Cash in Bank– Local Currency
Army (PA) Current Account (LCCA), of PhP1,162.66M is
understated by PhP9.81M due to: (a) non-cancellation
of stale checks totaling PhP0.60M (b) unrecorded
collections of PhP8.34M; and (c) unrecorded
reconciling items with net amount of PhP0.87M.
 The correctness of the balance of Due from NGAs
account totaling PhP810.43M could not be ascertained
due to the unrecorded deliveries of PhP41.22M from
PS-DBM and unaccounted discrepancy of PhP127.90M
between the PA and PS-DBM records.
 The balance of account Due from GOCC of
PhP1,345.38M is unreliable because of the: (a)
unrecorded liquidation of PhP2.75M covering the
payment of rice allowance of military personnel; b)
unrecorded PITC deliveries of PhP17.45M; c)
unrecorded interest income of PhP2.86M; and d)
unaccounted discrepancy of PhP46.96M between PA
and PITC books.
 The balance of PhP960.17M of account Deposit on
Letters of Credit is overstated by P112.05M covering
the unrecorded supplies and materials delivered by
various suppliers.
 The accuracy and existence of the balance of Inventory
accounts totaling PhP5,555.48M cannot be ascertained
due to: (a) discrepancy of PhP1,334.05M between the
Accounting and Property records of Military, Police
and Traffic Supplies Inventory and other inventory
accounts; (b) failure to conduct physical count on
inventories worth PhP786.62M; (c) dormant inventory
balance of PhP151.25M; and d) non/improper
maintenance of supplies ledger card and stock card,
and/or absence of other documents/reports necessary in
tracing the recorded balances.
 The accuracy and reliability of the Property Plant and
Equipment (PPE) accounts with an aggregate balance of
PhP26,262.74M were doubtful due to: (a) difference of
PhP149,777.45M between the balance per books of
Land account and the amount reflected in the Inventory
Report of the Army Real Estate Office (AREO); (b)
non-reconciliation of accounting and property records
with discrepancy of PhP8,835.44M; and (c) non-
311

recording of the cost of completed projects to its proper
PPE account totaling PhP198.81M.
 Advances to contractors in 51st Engineer Brigade
amounting to PhP1.22M and PhP1.17M for regular fund
and BCDA fund, respectively, or a total of PhP2.40M
were erroneously recorded under account Construction
in Progress, thus overstating the CIP and understating
the Advances to Contractors account of the same
amount.
 Share of the agency in premium contributions to GSIS
and PHIC for the month of December 2015 in the
amount of PhP8.18M and PhP19.04M were erroneously
recorded under the accounts Due to Officers and
Employees and Accounts Payable, respectively, hence,
overstating the affected accounts.
 Liquidations of Quick Response Funds totaling
PhP50.77M were not recorded in the books resulting in
the overstatement of the balance of account Due to
NGAs for the same amount.
Philippine   The completeness, accuracy and valuation of property,
Air Force plant, and equipment (PPE) accounts reported in the
(PAF) books is unreliable due to the following:
(1) Unrecognized land value for 211,498,603 square
meter (sqm) amounting to PhP24.640 billion.
(2) Unreconciled difference of PhP8.978 billion
between the books and the Report on the Physical
Count of Property, Plant and Equipment
(RPCPPE) total of PhP14.280 billion and the
unrecorded value of donated ambulance in MBEAB
amounting to PhP0.866 million.
(3) Unreconciled difference of PhP21.440 million in the
value of Motor vehicles due to improper recording
and lacked adequate disclosures.
(4) Misclassified 17 completed projects still in the
Construction in Progress account totaling PhP77.564
million misstated the PPE accounts.
(5) Unserviceable PPE totaling PhP1.023 billion differs
with the RPCPPE of PhP1.1419 billion by
PhP395.859M including for display PPE that are
classifiable as Heritage Assets of PhP30.062
million contrary to
Section 79 of PD 1445, COA Circular No. 89-296,
Section 43 of MNGAS, Volume I and PPSAS No.
17.
 The correctness of the balances of the Inventories
accounts totaling PhP1.183 billion was not established
due to late submission by the SAOs of the Report of
Supplies and Materials Issued (RSMI) amounting to
PhP0.897 billion and failure to prepare Report on the
Physical Count of Inventories (RPCI) as of December
31, 2015 pursuant to Section 62 and Section 65, Volume
II of the Manual on the New Government Accounting
System (MNGAS), thereby overstating the Inventories
accounts and understating the Expenses accounts.
 The Other Prepayments account pertaining to the
deposits made to Petron Corporation is overstated by
PhP371.701 million representing amount of deliveries
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made that were not credited due to the incomplete
documents in the delivery of fuel, oil and lubricants
(FOL) stated in invoices and non-submission of reports
on the consumption by the end user units through
RSMIs which is inconsistent with Section 4.6 of PD
1445, thereby correspondingly understating the FOL
Expenses account.
 The Advances to Contractors account is overstated by
PhP0.608 million representing advances for projects
completed and the settlement/recoupment of PhP2.727
million is doubtful due to the length of time the projects
were not completed contrary to the provisions of
Republic Act (RA) 9184 and COA Circular No. 2012-
001.
Philippine   The reliability on the balances of accounts Cash in
Navy (PN) Bank-LCCA, Inter-Agency Payables (Due to GSIS,
Pag-IBIG, PhilHealth) and Other Payables amounting to
PhP614.82M, PhP0.04M and PhP48.95M, respectively
as of December 31, 2015 were doubtful due to
Management’s deviation from established procedures
and guidelines in recording the payroll of Philippine
Navy officers and employees where (a) funds are
transferred from MDS Regular to PN Payroll account at
gross earnings and (b) premiums, contributions and
payments to government and other lending institutions
totaling PhP4,837.51M were simultaneously recorded
as withheld and remitted where PhP722.56M could not
be properly accounted due to non-submission of
supporting documents. Moreover, the deviation from
established procedures and guidelines is irregular, in
violation of COA Circular No. 2012-003 entitled
“Updated Guidelines for the Prevention and
Disallowance of Irregular, Unnecessary, Excessive,
Extravagant and Unconscionable Expenditures”.
 Failure to collect and impose appropriate sanctions to
delinquent occupants of government quarters and
concessionaires of the different stalls of NBC and
NETC resulted in the accumulation of receivables
totaling PhP5.29M and PhP1.19M, respectively.
Meanwhile, the HPN failed to also collect PhP0.29M
representing the light and water consumption of
Philippine Navy Officers’ Club for CY 2015 due to non-
preparation and consequently non-issuance of billing
statements.
 The Inventory account balance of PhP1,392.02M was
unreliable due to the (a) failure of NLC, NFWM, NISF
and NFNL to submit the Report on the Physical Count
of Inventories (RPCI), which represented 97.72 percent
of the total PN inventories; (b) unrecorded issuances of
supplies and materials amounting to PhP11.56M,
caused by the late submission of Report of Supplies and
Materials Issued (RSMI) by the FSPAOs to FASUs; (c)
unrecorded deliveries of supplies and materials worth
PhP2.88M; and (d) simultaneous recording as inventory
and expense of procured spare parts and materials
totaling PhP18.91M.
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 The year-end balance of PPE totaling PhP15,834.75M
was unreliable due to (a) discrepancy of PhP1,412.01M
between Accounting records and Property reports, and
discrepancy of PhP17.77M between the GL and Ledger
Cards; (b) Land amounting to PhP119.37M were not
covered by transfer certificate of title; (c) unrecorded
medical equipment amounting to PhP0.99M and
inclusion of unserviceable equipment and the burned 5-
door apartment building costing PhP0.75M; (d)
simulation system and server worth PhP19.92M were
recorded as inventory; (e) some PPEs counted/Found in
Station were not included in the Accounting and
Property records; (f) misclassification of assets within
PPE accounts; (g) small tangible items were recorded as
PPE; (h) equipment and fabricated furniture were not
taken up in the books; and (i) failure to conduct physical
count/non-preparation of RPCPPE.
 Four military personnel aged more than 56 years and/or
had rendered at least 30 years of active service, that were
compulsorily retired pursuant to the provisions of PD
No. 1638, series of 1979 as amended by PD No. 1650,
were not dropped from the roll immediately upon
compulsory retirement; thus, resulted in overpayment in
salaries, wages and other remunerations totaling
PhP2.37M. The overpayment likewise resulted in the
overstatement and understatement of the expense and
receivable accounts respectively, which affected the fair
presentation of the financial statements.
 The Accumulated Surplus/Deficit and Depreciation
Expense accounts were understated by PhP35.76M and
PhP33.29M respectively; while the Accumulated
Depreciation were overstated by PhP2.47M, due to the
retrospective application by the Accounting Office of
the change in accounting estimate on residual value rate
from 10 percent to 5 percent, contrary to Par. 41 of
PPSAS No. 3, affecting the fair presentation of financial
statements.
 Contrary to the provisions of PPSAS No. 9, the hospital
fees earned by the Cavite Naval Hospital (CNH) totaling
PhP1.18M, and the rental of concessionaires’ space and
PN personnel quarters amounting to PhP4.58M were
recorded as revenue of HPN instead of a trust liability;
thus, revenue was overstated while trust liability was
understated, affecting the fair presentation of the
Financial Statements as of December 31, 2015.
 In the books of HPN/HSG, the balances of Accounts
Payable, Consultancy Services, Inventory accounts and
Accumulated Surplus/Deficit were understated by
PhP3.37M, PhP1.47M, PhP2.88M and PhP9,533.83
respectively, and the Advances to Contractor account
was overstated by PhP0.98M due to various
inaccuracies of records brought about by inadequate
review of transactions by the Accounting Office
resulting in (a) incorrect postings to the General Ledger,
(b) charging to Accounts Payable account without prior
set-up of liabilities, and (c) erroneous
adjusting/correcting entries. Further, errors in the
314

recording of repairs and maintenance in NISF resulted
in the understatement of PhP0.79M, PhP0.30M and
PhP0.36M in Intangible Assets, Subscription Expenses
and Accounts Payable accounts; and overstatement of
PhP0.73M in Repairs and Maintenance.
 The inadequate monitoring of the funds received for the
implementation of the Asia-Pacific Economic
Cooperation (APEC) activities resulted to the non-
return to the source agencies of the unused funds of
PhP1.62M and disbursement of PhP5.08M which have
not been reported yet, in violation of COA Circular 94-
013. Moreover, double recording of liquidations
erroneously reduced the account balance by PhP1.26M,
affecting the fair presentation of financial statements.
Department   Disbursement Vouchers (DVs) covering cash advances
of Justice (CAs) for confidential funds (CF), aggregating
(DOJ) PhP91.90M as of December 31, 2015, were not
submitted to the COA Audit Team Leader for post audit,
contrary to Section 6.1.8.4 of Joint Circular (JC) NO.
2015-01 dated January 8, 2015.
 Cash Advances for CF were not liquidated within 30
days after every quarter, or from the approved target
date of completion of the activity, or at year end,
contrary to Section 6.2.2 of JC No. 2015-01. Moreover,
SDOs were granted subsequent cash advances despite
non-submission of liquidation reports of previous cash
advances, in violation of Section 6.1.5 of said circular.
 Collections from PAGCOR and remittances of courts
for Victims compensation Fund (VCF) and funds
received from other government agencies for the
implementation of various projects and activities were
not recorded in accordance with the Unified Account
code Structure (UACS) Manual.
 Collections during the year totaling PhP40.99M for the
Victims Compensation Fund (VCF) were not remitted
to the BTr, contrary to Executive Order (EO) No. 338
dated May 17, 1996, as implemented by COA-DBM-
DOF JC No. 1-97 dated January 2, 1997 and Section 5
of the General Appropriation Act for FY 2015.
Moreover, expenses of the Board of Claims (BOC) have
been continuously charges against the VCF Fund,
instead of to the specific release under General
Fund/Current Appropriation.
 The balance of PPE accounts totaling PhP1,047.80M
was unreliable due to (a) non-transfer of completed Hall
of Justice (HOJ) buildings to the Supreme Court (SC);
(b) absence of complete physical inventory; (c) presence
of balances “For Reclassification”; (d) understatement
of donated ICT equipment; (e) erroneous classification
of PPE; and (f) non-reclassification of completed
construction projects to the Building account.
 The balance of advances to PS-DBM amounting to
PhP57.84M as of December 31, 2015 was unreliable
due to the unrecorded deliveries totaling PhP3.42M and
existence of unreconciled balance amounting to
PhP0.99M.
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 The balance of Inventory Accounts totaling PhP13.35M
was unreliable due to the inclusion of PhP5.42M worth
of inventories without corresponding details or
breakdown and unreconciled records of the Accounting
Division and Supply Section.
 Cash Advances (CAs) totaling PhP733.12M remained
outstanding as of December 31, 2015, contrary to COA
Circular No. 97-002 dated February 10, 1997. Further,
additional CAs were granted to accountable officers
without first liquidating the previous CAs in violation of
Section 89 of PD 1445 as well as the same COA
Circular.
 Cash advances totaling PhP2.07M for special
purpose/time-bound undertaking were erroneously
recorded under account Advances for Operating
Expenses, instead of to the Advances to Special
Disbursing Officer account.
 The PC for recurring expenses exceeded the one month
requirement of the office, contrary to paragraph 4.3.1 of
COA Circular No. 97-002 dated February 10, 1997.
 Collections were not deposited intact and daily contrary
to Section 21 of the MNGAS, Vol. I and collecting
officers were not properly bonded in violation of
Section 101 of PD 1445. Other deficiencies inconsistent
with rules and regulations in the handling of cash were
likewise noted.
 DVs covering transaction totaling PhP1,289.77M were
not submitted to the Office of the Auditor within the
prescribed period, contrary to Section 6.03 and 6.05 of
COA Circular No. 95-006 dated May 18, 1995, causing
delay in the review and audit of the agency’s financial
transactions.
Bureau of   The accuracy and reliability of the reported balance of
Immigration Cash-Collecting Officer (CCO) of PhP32.39M cannot
(BI) be ascertained because of the:(a) existence of
abnormal/credit balances of PhP29.09M; (b) inclusion
of accounts of former collecting officers who were
either retired, resigned, dismissed or deceased
amounting to PhP1.89M; (c) non-maintenance of
subsidiary ledger (SL) for each collecting officer; (d)
difference of PhP0.11M between the GL and the
schedule submitted for the account; and (e)
unreconciled balances of Cash Receipts Record (CRR)
and accounting records.
 The year-end balance of Cash in Bank - Local Currency,
Current Account (CIB-LCCA) amounting to
PhP109.75M was understated by PhP43.05M due to: (a)
unrecorded Cash-in-Bank of PhP30.82M in five bank
accounts; (b) unrecorded/uncorrected reconciling items
of PhP8.42M; (c) non-restoration of unreleased checks
of PhP3.01M; and (d) non-cancellation of stale checks
of PhP0.80M. Further, the Bank Reconciliation
Statements (BRS) were not prepared and submitted
promptly, contrary to COA Circular No. 92-125A dated
March 4, 1992 due to delayed receipt of bank statements
and collection reports.
316

 The accuracy and reliability of the reported Accounts
Receivables of PhP82.65M cannot be relied upon due to
the inclusion of dormant accounts of PhP0.10M and
unrecorded administrative fines amounting to
PhP168.45M; thus, affecting the fair presentation of the
account in the financial statements. Moreover, prior
year collection amounting to PhP0.05M was not
adjusted to income account; thus, the balance of Other
Deferred Credits of PhP82.60M was overstated by
PhP0.05M.
 The Advances to PS-DBM amounting to PhP46.34M as
of December 31, 2015, was overstated by PhP16.60M
due to unclaimed check of PhP15.26M, erroneous tax
deductions of PhP1.34M, and erroneous adjustment of
PhP0.01; thus, affecting the fair presentation of the Due
from NGAs in the financial statements. Despite huge
balance of advances, the Bureau transferred PhP22.98M
to PS-DBM during the year.
 The accuracy and existence of the Inventory accounts
with an aggregate balance of PhP41.82M as of
December 31, 2015 cannot be ascertained due to (a)
non-conduct of physical count for two inventory
accounts worth PhP19.02M; (b) unreconciled
discrepancy of PhP3.15M between the accounting and
property records for Office Supplies Inventory; (c) non-
maintenance of complete Stock Cards (SCs) and
updated Supplies Ledger CArds (SLCs); and (d)
issuances of drugs, medicines, medical, dental and
laboratory supplies medicines not supported with
approved RIS and not properly receipted. Further, the
Property Officers are not duly bonded, contrary to
Section 488 of GAAM, Vol. I.
 The existence, accuracy and reliability of the reported
balance of Property, Plant and Equipment (PPE)
accounts amounting to PhP955.39M cannot be
ascertained due to: (a) unrecorded donated PPEs of
PhP5.39M; (b) unrecorded PPE deliveries of
PhP34.26M; (c) non-conduct of physical inventory and
non-submission of the RPCPPE; and (d) non-
maintenance of PPE Ledger Cards (PPELC) and
Property Cards (PC). Likewise, not all unserviceable
properties found in prior years have been disposed of.
 The reported balance of Advances account of
PhP44.30M was unreliable because of the: (a)
unrecorded liquidation of PhP4.00M; (b) accounts of
employees who are no longer connected with the Bureau
of PhP0.05M; c) erroneous entries of PhP0.47M; and
(d) existence of negative balance of PhP6,200.20; thus,
affecting the fair presentation of the financial
statements. Moreover, cash advances granted to an SDO
amounting to PhP0.28M and PhP1.41M were
erroneously recorded under Training Expenses and Bail
Bonds Payable instead of Advances to SDO.
 The reported Account Payable of PhP20.59M was
overstated by PhP2.35M due to (a) undocumented
payables of PhP2.08M; and (b) accounting errors of
PhP0.27M; thus, affecting the fair presentation of the
317

account in the financial statements. Moreover, a total of
PhP16.79M has been outstanding for more than two
years.
 Fund transfers from the DILG in the total amount of
PhP2.68M were not recorded in the books of accounts,
contrary to Section 4.2 of COA Circular No. 94-013;
thus, the balance of the accounts Due to NGAs and Cash
in Bank-Local currency, Current Account was
understated by the same amount. Moreover, the fund
transfer remained unliquidated despite the completion
of the project, contrary to Section 4.6 and 4.9 of the said
Circular.
National   The balance of accounts Cash-Collecting Officers and
Bureau of Service Income –Clearance and Certification Fees
Immigration amounting to PhP3.49M and PhP620.91M,
(NBI) respectively, as of December 31, 2015, cannot be relied
upon as to accuracy and completeness due to (a) non-
submission of Report of collections and Deposits (RCD)
and supporting documents for CY 2015 and/or prior
years, covering collections of undetermined amount by
some Special Collecting Officers (SCOs), contrary to
Section 64 of Presidential Decree (PD) No. 1445 and
Section 57 of the Manual on the New Government
Accounting System (MNGAS), Volume II; and (b)
outdated Subsidiary Ledgers (SLs) of most SCOs and
non-reconciliation thereof with the SCOs
reports/records. Both deficiencies indicate weak
internal controls on cash management and financial
information, contrary to Section 32 of the Government
Accounting and Auditing Manual (GAAM), Volume
III.
 Collections of some SCOs were not remitted or
deposited intact daily, contrary to Section 69 (1) of PD
No. 1445 and Section 21 of the MNGAS, Volume I,
resulting in undeposited collections aggregating to
PhP3.38M and denotes weak internal controls on
safeguarding of cash.
 Other internal control deficiencies on cash management
were noted such as (a) non-bonding of some SCOs; (b)
casual/job order employees were allowed to act as SCOs
and issue unsigned Ors; (c) monthly Report of
Accountability for Accountable Forms (RAAFs) were
not updated and clearance forms are not included
therein; and (d) transfer of ORs from outgoing to
incoming SCOs were not documented.
 Unreleased checks amounting to PhP9.40M were not
restored to accounts Cash-MDS-Regular, Cash-MDS-
Trust and corresponding Payable at year-end, contrary
to GAFMIS Circular No. 2002-001 dated December 16,
2002, resulting to zero balances on accounts Cash-
MDS, Regular and Cash-MDS, Trust, and understating
the affected Payable accounts. Further, the Cash-MDS-
Regular account is unreliable due to delayed Bank
Reconciliation Statements (BRS) and outdated SLs of
cash deposits.
 Receivables and liabilities totaling PhP40.24M and
PhP192.98M, respectively, as of December 31, 2015,
318

cannot be validated because no SLs were maintained by
the Accounting Division to support the accounts,
contrary to Section 12 of the MNGAS, Volume II,
resulting in the non-reliability of such accounts reflected
in the FSs and indicative of weak internal control on
financial information, contrary to Section 32 of the
GAAM, Volume III.
 The reliability of the Inventory accounts totaling
PhP35.36M as of December 31, 2015 was doubtful due
to (a) unreconciled balances totaling PhP27.62M
between the Accounting records per Report on Physical
Count of Inventories (RPCI); (b) failure to conduct
physical count on some Inventory accounts amounting
to PhP0.22M, contrary to Section 490 (a) of the GAAM,
Volume I, and Section 65 of the MNGAS, Volume II,
rendering doubtful the existence of supplies pertaining
to the accounts; and (c) incomplete Supplies Ledger
Cards (SLCs) and Stock Cards (SCs), contrary to
Section 43 of the MNGAS, Volume I, and Section 41 of
MNGAS, Volume II.
 The balances of PPE accounts, except Motor Vehicles,
totaling PhP668.95M, as of December 31, 2015, were
unreliable due to(a) failure to conduct physical
inventory and submit the Report of Physical count of
PPE (RPCPPE), contrary to Section 490 (a) of the
GAAM, Volume I, and Section 66 of the MNGAS,
Volume II, respectively; and (b) incomplete PPE Ledger
Cards (PPELC) and Property Cards (PC), contrary to
Section 43 of the MNGAS, Volume I, and Section 42 of
the MNGAS, Volume II. Likewise, there was improper
maintenance of Acknowledgement Receipt of
Equipment (AREs) by management, contrary to Section
56 of the MNGAS, Volume II, indicating weak internal
controls on safeguarding of assets, contrary to Section
32 of the GAAM, Volume III, and Section 123 of PD
1445.
 Transaction documents and financial reports were not
submitted to the Office of the Auditor within the
prescribed periods, contrary to Section 6.03 and 6.05 of
COA Circular No. 95-006 dated May 18, 1995.
 Procurement of goods amounting to PhP7.83M were
undertaken thru shopping or emergency purchases
mostly from the same suppliers on a staggered basis,
inconsistent with Section 10 and 48.2 of the Revised
Implementing Rules and Regulations (IRR) of Republic
Act (RA) 9184 while common-use supplies were
purchased from private suppliers without the PS-DBM
Certificates of Non-Availability of Stocks, contrary to
Administrative Order No. 17 dated July 28, 2011 and
DBM Circular Letter No 2013-14 dated November 29,
2013.
 Contracts/ Purchase Orders/ Job Orders were not
submitted to the Office of the Auditor within the
reglementary period of five days upon perfection,
contrary to Section 3.1.1 of COA Circular No. 2009-001
dated February 14, 2009.
319

 Procurement of construction supplies was directly
recorded to the expense account, instead of construction
Materials Inventory, contrary to COA Circular No.
2013- 002 dated January 30, 2013 resulting in the
overstatement or understatement of the affected
accounts.
 The non-submission of leave cards of personnel as a
consequence of the delayed or non-submission of the
Monthly Reports of Absences and Undertimes (MRAU)
may result in the full payment of salaries of employees
without leave credits, and rendered unreliable the leave
cards, contrary to Section 32 of the GAAM.
Bureau of   The year-end balance of the Receivable of PhP26.34M
Corrections was unreliable because of the: (a) discrepancy of
(BuCorr) PhP2.82M between the balance of PhP3.90M in Due
from NGAs account and the balance of PhP1.08M
confirmed by the PS-DBM; and (b) non-recording of
deliveries totaling PhP3.16M.
 The balance of Inventory accounts amounting to
PhP35.88M were unreliable due to (a) absence of
physical inventory and non-submission of the report
thereon; (b) unreconciled balances of PhP10.86M
between the general ledger and RPCI of four inventory
accounts; and (c) absence of subsidiary ledger cards
 The general ledger (GL) balances of five PPE accounts
totaling PhP87.70M differ by PhP17.70M compared
with the Report of Physical Count of Property, Plant and
Equipment (RPCPPE) of PhP98.77M; thus, the
accuracy and existence of the reported balance of the
said PPE accounts are unreliable. Further, Property,
Plant and Equipment Ledger Cards (PPELC) were not
updated rendering reconciliation thereof with the
property cards and results of inventory not possible,
contrary to Section 43, MNGAS, Volume I.
 The donated hospital building and pumping station
facility were not recorded in the books due to
unavailable documents to measure the costs affecting
the validity and reliability of the Office Buildings and
Water Supply System accounts.
Parole and   The validity, existence and accuracy of the Property,
Probation Plant and Equipment (PPE) accounts with a net book
Administratio value of PhP38.91M could not be ascertained due to the
n (PPA) (a) unreconciled difference of PhP0.41M between the
Accounting and Property records of Region XII; (b)
absence of physical inventory and non-submission of
inventory report; and (c) non-inclusion of IT equipment
amounting to P0.25M.
 The balance of the inventory accounts in Region X
amounting to PhP0.43M was incorrect due to the
inclusion of dormant balance of Other Supplies and
Material Inventory amounting to PhP0.09M, which was
not supported with supplies ledger cards, stock cards
and could not be reconciled due to absence of Report of
Physical Count of Inventory (RPCI) contrary to the
provisions of the Manual on the New Government
Accounting System (MNGAS).
320

Public   Collections were not deposited intact daily to the
Attorney’s Authorized Government Depository Bank (AGDB),
Office (PAO) contrary to Section 21 and 22 of the Manual on the New
Government Accounting System (MNGAS).
 The Due from NGAs (PS_DBM) account of
PhP53.04M remained outstanding as of December 31,
2015, contrary to Item 4.9 of COA Circular NO. 94-013
dated December 13, 1994. As a consequence, PAO was
constrained to procure supplies and materials totaling
PhP5.95M from private suppliers, contrary to
Administrative Order No. 17 (AO 17) dated July 28,
2011.
 The accuracy of Office Supplies Inventory account
amounting PhP11.31M as of December 31, 2015 cannot
be relied upon due to (a) non-recording of issuance of
supplies and materials, contrary to COA Circular
No.2002-002; and (b) absence of Report on the Physical
count of Inventories (RPCI), contrary to Section 65 of
the MNGAS.
 The inadequate storage left management with no
recourse but to stockpile the supplies and materials in an
open area, thereby exposing the assets to possible loss
and pilferage, indicative of weak internal control on the
safeguarding of assets, inconsistent with Section 123 of
PD No. 1445.
 The correctness of the balances of PPE amounting to
PhP91.13M could not be ascertained due to (a)
incomplete/absence of physical count of PPE in the
Central Office and in some ROs (NCR, ROs II, VII, IX
and XII); (b) non-submission of the Report on Physical
Count of PPE(RPCPPE); and (c) discrepancy of
PhP59.24M between the Accounting and Supply
Sections’ records, contrary to Section 66 of the
MNGAS, Section 490(a), Volume I of the GAAM, and
Section 43 of the MNGAS, Volume I.
 Insurance premiums for the period January to December
2015 totaling PhP0.84M which were deducted monthly
from PAO employees, salaries were remitted to the
private insurance company through the PAO Credit
Cooperative Inc. (PAOCCI) in advance ranging from
10-65 days contrary to Section 88 of PD 1445.
 Purchase Orders (PO) for the procurement of supplies
and equipment from various suppliers were not
submitted within five days from perfection thereof to the
Office of the Auditor for review, contrary to COA
Circular No. 2009-001 dated February 12, 2009, which
prevented the Auditor to undertake the opportune
review having the consequential effect of not being able
to communicate whatever deficiencies noted therein.
Office of   The administrative Information system (AIS) project
Solicitor remained uncompleted despite a long period of time in
General violation of the terms and conditions of the contract,
(OSG) depriving the government of the benefits that can be
derived there from and resulted in the dormancy of
Advances to contractors totaling PhP0.72M9 for eight
years as at year-end.
321

 Out of the PhP0.94M Receivables account, PhP0.91M
remained outstanding or dormant for more than five
years, contrary to COA Circular No. 97-001 dated
February 5, 1997, and the certainty to collect the same
is doubtful.
 The reliability of PPE accounts totaling PhP184.70M
was doubtful due to the (a) unreconciled discrepancy of
PhP29.74M between the Accounting and Property
records; (b) incomplete maintenance of PPE Ledger
Cards (PPELC) and Property Cards (PC); and (c)
incomplete and unapproved Report on Physical Count
of Property, Plant and Equipment (RCPPE),
inconsistent with Paragraph 29(b) of Philippine Public
Sector Accounting Standards (PPSAS) 1 and Paragraph
4, Section 43, Volume 1, Appendix 8A, Volume II,
Paragraph 3 and 4, Section 43, Volume 1, Appendix
63C, Volume II, all of the manual on the New
Government Accounting System (MNGAS).
 Disposed unserviceable property amounting to
PhP1.27M was not recorded and dropped from the
books resulting in the overstatement of the affected PPE
accounts, contrary to the provision of Section 79 of PD
1445 and Section 64 of the MNGAS, Volume II.
 Foreign travels with significant number of participants
were without proper documentation and were paid
contrary to Section 1.1.4 and 1.2.4.2 of COA Circular
No. 2012-001 dated June 14, 2012; Section 2, Executive
Order (EO) 248 dated May 29, 1995 as amended by EO
248A dated August 14, 1995 and EO No. 298 dated
March 23, 2004; Section 5 of Executive Order No. 459,
Section 1 of Administrative Order (AO) 103 dated
August 31, 2004 and COA Circular No. 2013-00; thus,
their validity is doubtful.
Office of the   The account Cash in Bank – Local Currency, Saving
Government Account (Trust Account amounting to P9.50M as of
Corporate December 31, 2015 included the amount of PhP1.24M
Counsel which remained dormant since 1993 and listed as
(OGCC) unclassified items.
 The Office Supplies Inventory account totaling
PhP0.57M was unreliable due to the existence of
inventory records of the Accounting and Property
Sections caused by (a) absence of periodic
reconciliation between the Accounting and Property
Sections; (b) non-maintenance of supplies Ledger Cards
(SLC); and (c) lack of necessary documents.
 The PPE account balances totaling PhP25.36M as of
December 31, 2015, were unreliable due to the
difference of PhP4.66M between the accounting books
and the RPCPPE and the non-updating of PPE Ledger
Cards (PPELC) by the Accounting Section.
 The claimants against the due to Officers and
Employees account totaling PhP4.18M could not be
completely determined due to the absence of subsidiary
ledgers and other supporting documents contrary to the
instructions in Appendix 5, Volume II and pertinent
provision of the Government Accounting and Auditing
322

Manual (GAAM), Volume III. Moreover, there were
outstanding payables of PhP2.07M since 2011 due to
non-submission by the lawyers of the accomplishment
reports to their supervisors, a requirement before
payment of claim against this account, as there was no
time set for submission thereon.
 Travel expenses of PhP0.06M for local travels were
paid without proper documentation, contrary to Section
1.1.4.1 and 1.2.4.1 of COA Circular No. 2012-001 dated
June 14, 2012; thus, its validity is doubtful.
Land   The reliability of the CIB-LCCA totaling PhP145.14M
Registration could not be ascertained due to absence of detailed
Authority actual book balances of three subsidiary bank accounts
(LRA) of LARES escrow accounts totaling PhP139.52M and
their corresponding bank statements, including that of
the three depository bank accounts where collections of
the IT Service Fees are initially deposited before these
are transferred to the PNB Escrow account.
 The balance of Due from NGAs account totaling
PhP8.93M could not be ascertained due to the (a)
unreconciled balance of PhP5.27M between the LRA
books and the PS-DBM statement of Account, and (b)
unsubstantiated undelivered items pertaining to prior
years procurement amounting to PhP1.66M contrary to
Section 111 of PD 1445 and COA Circular No. 2013-
002 dated January 30, 2013.
 The balance of the COO account of PhP266,006,147.03
was doubtful due to the: (a) failure of the Accounting
Division and various collecting officers in the regions to
reconcile their records which resulted in the existence of
a (i) difference of PhP905,293.54 between the General
Ledger (GL) and Subsidiary Ledgers (SL); (ii) negative
balances of accountabilities in the SL amounting to
PhP34,857,568.99; and (iii) outstanding balances of
accountabilities of retired/inactive/died collecting
officers of PhP56,003,611.91; (b) non-intact deposit of
collections to the AGDB and late recording of deposits
resulting in the accumulation of huge amount of
undeposited collections at year-end; (c) non-
reconciliation of CRR balances with the cash in the
custody of collecting officers; and (d) non-submission
of Reports of Collections and Deposits (RCDs) within
the prescribed period affecting the timely recording of
transactions and ultimately raised doubt whether the
recorded collections and deposits in the agency’s books
of accounts were accurate and reliable.
 The computer-generated RAAF and CRR were
erroneous and unreliable because the contents thereof
were not reflective of the actual ORs issued and on hand
and actual deposits, contrary to the provisions of
Paragraph A.8 and C of Instruction of Appendix 35 of
the Manual on New Government Accounting System
(MNGAS).
 Appropriation amounting to PhP7,000,000.00 intended
for the purchase of elevator was used to modernize the
existing elevators without authority from DBM in
violation of Section 85, PD 1445, indicative of the
323

absence of meticulous and judicious planning which
should have been undertaken pursuant to Sections 7.1
and 38.1 of the Revised Implementing Rules and
Regulations of RA 9184.
 Information Technology (IT) fees were increased
without the approval of the ICC-NEDA, contrary to
Section 12.15.2 of the IRR of BOT law as amended;
thus, making such increase void from the beginning.
 The LRA over relied upon LARES IT personnel on
technical concerns relative to the operationalization of
the computerized system and no manual back-up is in
place in case the system is offline due to technical
problems resulting in discontinuance of operations
whenever LARES IT personnel are absent and the
system is offline.
Presidential   Unliquidated cash advances amounting to PhP4.76M,
Commission recorded under Other Receivables account, have been
on Good dormant from 5 to over 20 years contrary to Section II
Government of COA Circular No. 97-001 dated Feb. 5, 1997"
(PCGG) The balances of Office Supplies, Other Supplies and
construction Materials Inventory totaling PhP1.09M
were unreliable due to: (a) unreconciled difference of
PhP0.36M between the balance per books and physical
inventory (b) understatement of construction materials
inventory amounting to PhP0.25M directly charged to
expense but found on hand during the physical count;
(c) non-preparation and submission of Report of
Supplies and Materials Issued (RSMI) for issuance of
supplies and materials PhP0.85M; and (d) inclusion of
31 Items of obsolete/unusable supplies amounting
PhP0.17M.
 Disposal of unserviceable property were not undertaken
due to non-preparation and submission of the Inventory
and Inspection Report of Unserviceable Properties
(IIRUP) to the Disposal Committee, resulting in
continued accumulation, deterioration and reduction in
value of property caused by prolonged exposure to
natural elements, contrary to Section 79 of PD 1445 and
section 502 of GAAM, COA Circular No. 89-296 and
Section 64 of the MNGAS, Vol. II.
 The reported balances of the PPE accounts totaling
PhP174.91M as of December 31,2015 were doubtful
due to: (a) non-submission of Report on Physical Count
of Property, Plant and Equipment (RPCPPE); (b) failure
to record donated IT equipment from DOST amounting
to P0.23M.
 The accuracy, validity, and correctness of the recorded
value on investment in Stocks totaling PhP0.92M was
doubtful due to the management's failure to undertake
valuation and appraisal of its financial assets at year-
end, as required under PPSAS No. 29
 The account Computer Software, an intangible asset,
was provided with residual value of PhP0.04M, instead
of zero, contrary to Paragraph 99 of the PPSAS No. 31.
 Accounts Payable totaling PhP0.49M were not reverted
to the General Fund contrary to DBM-COA Joint
circular No. 99-6 and Section 98 PD 1445.
324

 Five computers amounting to PhP0.20M under a lease
to own agreement were taken up in the books as rent
expense; hence, recognized as operating lease instead of
finance lease, contrary to Paragraph 15 and 28 of the
PPSAS No. 13. Moreover, acquisition of IT equipment,
without corresponding appropriation or approved
budget is in violation of RA 10651, otherwise known as
the General Appropriations Act 2015. Furthermore, the
IT equipment included unnecessary features; were
delivered three months ahead of the perfected contract
and inspected after four months from the date of
delivery."
Cluster 5 - Education and Employment

Department   Overstatement of account Due from National
of Education Government Agencies-DBM-PS by PhP2,076.40M
(DepEd) due to unrecorded Information Technology packages
delivered to recipient schools;
 Overstatement of the accounts Due from Regional
Offices and Accumulated Surplus/Deficit by
PhP1,766.95M due to erroneous accounting treatment
in recognizing the transfer and receipt of fund by the
Central Office and the Regional
Offices;
 Understatement of account Textbooks and
Instructional Materials Inventory by PhP4.18M due to
unrecorded issuances totaling PhP1.45M, receipts of
textbooks procured by the DepEd Instruction Material
Corporation totaling PhP1.41M and donated books of
PhP1.32M;
 Understatement of accounts Property, Plant and
Equipment by PhP1,658.98M due to erroneous
recording/non-recording of misclassification of
accounts/error in recording/non-recording; and
 Overstatement of Accounts Payable by PhP158.99M
due to recognition of undocumented payables of
PhP392.32M; non-reversion of long outstanding
payables without existing valid claims of PhP45.08M;
and misclassification of liability accounts in net
amount of PhP74.82M.
University of   Account Cash in Bank, Local Currency Current
the Account was understated by PhP34.48M due to: a)
Philippines unrecorded on-line collections of PhP0.51M from the
New Born Screening (NBS) program and negative
325

System balances of PhP28.48M in UP-Manila; b) unrecorded
(UPS) deposit of PhP0.37M in UP-Cebu; and c) unreleased
checks of PhP5.11M not reversed to the cash accounts
in UP-Los Baños;
 The Accounts Receivable was understated by
PhP534.71M due to: a) unrecognized sales on account
of NBS kits and filter cards from CYs 2005 to 2015 of
PhP53.99M, bank charges of USD498.06 or
PhP0.02M for the NBS kits purchased by the
Ministry of Palau, penalty on late payments of
PhP1.23M for NBS System all in UP-Manila; b)
claims from PHIC for charity patients of PhP473.34M
and denied claims from PHIC not deducted to the
account by UP-PGH; c) income from lease of
properties and interest/penalties for late payments in
the aggregate amount of PhP6.12M in UPSA, UPD and
UPB;
 The Accounts Payable was overstated by PhP63.46M
due to dormant payables of the UP-Visayas which has
been outstanding for two years or more and against
which no actual claim, administrative or judicial has
been filed;
 The Other Payables and Rent Income were both
overstated by PhP25.45M due to erroneous recording
of rental collections;
 The Interest Income account was understated by
PhP0.74M due to error in recording of interest income
on 45 time deposit accounts in UP-PGH; and
 The Due to BIR account was understated due to the
existence of negative balance of PhP3.22M in the
books of UP – Visayas.
Commission   Understatement of Cash - Modified Disbursement
on Higher System (MDS) and Cash in Bank – Local Currency,
Education Current Account (CIB-LCCA) by at least PhP3.59M
(CHED) (net) and PhP0.08M, respectively, partly due to error
in recording of reconciling items and preparation of the
BRS;
 Understatement of PPE by PhP1.39M and
unrecognized Depreciation Expense of PhP7.73M;
 Overstatement of Accounts Payable by PhP206.89M
due to: a) double recording of the refund of
PhP0.03M for the unutilized scholarship funds; b)
inaccurate reporting of unreleased checks at year-end
of PhP8.26M; c) setting up of PhP180.78M payables
without valid supporting documents; d) non-reversion
of invalid prior years’ claims of PhP19.29M and
PhP6.70M payables outstanding for more than two
years; and existence of abnormal negative balance of
PhP8.18M; and
 Overstatement of Donations account by PhP7.66M due
to the erroneous entry made to record transfers of funds
to HEIs for the payment of StuFAPs financial benefits
of scholars/grantees instead of Due from National
Government Agencies (NGAs) and Due from
NGOs/POs accounts of PhP3.63M and PhP1.40M,
respectively, and Loans Receivable – Others of
PhP2.62M.
326

Philippine   Overstatement of the Advances to Officers and
Normal Employees account by PhP6.87M due to erroneous
University recording of the cash advances for various research
(PNU) projects of PhP4.37M and other time bound activities
of PhP2.51M which should be recorded as Advances
to Special Disbursing Officer account;
 Overstatement of the Due from National Government
Agencies account by PhP0.92M representing
unrecorded deliveries by the DBM-Procurement
Service due to failure of the Supply and Property Unit
to submit to the Accountant the Delivery Receipts and
Inspection and Acceptance Report;
Understatement of the Property, Plant and Equipment
account by PhP1.12M due to unrecorded donation of
motor vehicle of PhP0.68M and procured equipment
amounting to PhP0.45M; and
 Overstatement of the Due to Government Owned and
Controlled Corporations account by PhP1.04M due to
misclassification to this account of GSIS life &
retirement and optional insurance of PhP0.25M and
Pag-IBIG contributions totaling PhP0.79M, instead of
Due to GSIS account and Due to Pag-IBIG account,
respectively.
Technologica   Understatement of Cash in Bank account balances of
l University PhP19.52M due to unrecorded tuition fees/school
of the charges paid thru the bank of PhP19.55M, debit memo
Philippines of PhP5,535.06 and unadjusted previous years’
(TUP) reconciling items of PhP0.02M;
System  Overstatement of the Inventories account by
PhP2.06M representing unrecorded issuances of
inventory items which cannot be adjusted by the
Accountant of TUP Taguig due to non-submission by
the Supply Officer of the Report of Supplies and
Material Issued;
 Overstatement of Other Assets-Advances account by
PhP2.91M with corresponding misstatements in Other
Payables account of PhP2.96M and Expense account
of PhP0.05M due to erroneous recording of cash
advances and the liquidation thereof in TUP Manila
and Visayas;
 Overstatement of the Due to GSIS account by
PhP10.35M resulting from erroneous recording of
payroll deductions and net pay of TUP Manila
personnel of PhP10.44M and over deduction from the
payroll of PhP0.08M; and
 Overstatement in Office Supplies Expense and Salaries
and Wages accounts by PhP1.95M and PhP0.02M,
respectively, due to erroneous recording to these
accounts of the payment of Collective Negotiation
Agreement of PhP1.97M which should be recorded
under account Collective Negotiation Agreement-
Civilian.
327

Polytechnic   Total understatement by PhP0.93M in the combined
University of balances of Cash in Bank – Local Currency Account
the and Local Currency Savings Account of PhP432.55M
Philippines due to unrecorded deposits, credit/debit memos and
(PUP) interests earned;
 Unliquidated cash advances of PhP2.41M granted to
officers and employees thereby overstating and
understating the affected Other Assets and
expenditures accounts;
 Understatement by PhP119.07M of the aggregate
account balance of Property, Plant and Equipment
(PPE) due to non-recording of the costs of two
completed projects and the donated Integrated Multi
Site Business Process Outsourcing Incubation Contract
Center and unreliability of the integrity of property
custodianship and doubtful existence of the PPE items
due to deficient property control;
 Overstatement of the account balance of Due to NGAs
by PhP6.07M and the corresponding understatement of
the balances of Due to Government-Owned or
Controlled Corporations by PhP6.01M and Other
Payables by PhP0.06M due to the inappropriate entries
in taking up
PhP0.06M due to the inappropriate entries in taking up
transferred funds from government corporations and
the erroneous entry in setting up the payroll fund for
ESGP-PA scholars;
 Overstatement of the balances of Bail Bonds Payable
by PhP4.17M and Other Payables by PhP0.60M with
corresponding understatement of the balances of
Guaranty/Security Deposits Payable, Trust Liabilities
and Customers’ Deposits Payable by PhP2.58M,
PhP0.60M and PhP1.59M, respectively, due to the
erroneous recording of various trust receipts; and
 Doubtful validity of the account balance of Other
Payables of PhP79.38M due to the continuous
inclusion of long outstanding non-moving payables of
PhP33.31M which are not sufficiently supported with
pertinent documents.
Philippine   The total PPE accounts costing PhP410.87M is
State College unreliable due to: a) difference of PhP1.29M between
of the General Ledger (GL) balance of PhP410.87M and
Aeronautics the Schedules (serve as Subsidiary Ledgers) totaling
(PhilSCA) PhP409.58M; b) six buildings and parking facility
constructed/donated by a private corporation in CY
2010 not yet recorded in the books; c) incomplete
physical inventory of PPE conducted in 2015, with no
Report on the Physical Count of Property, Plant and
Equipment (RPCPPE) rendered by Property and
Supply Office on the existence and condition of the
assets; and d) PPELC and Property Cards (PC) which
should provide information on the acquisition/disposal
for each PPE were incomplete or not updated, hence,
unreliable references for reconciling balances of both
records.
Technical   Irregularities were found in Regions IV-A, VIII, X and
Education NCR in handling their Petty Cash Fund, resulting to
328

and Skills unreliable balance of the Petty Cash account contrary
Development to Section 5.8 of COA Circular No. 97-002 dated
Authority February 10, 1997, Section 6, Chapter 3 of Handbook
(TESDA) on Government Expenditures and Section 39 of the
Manual on the NGAS;
 Understatement of Cash account and the corresponding
Payable account amounting to PhP38.42M as of year-
end due to non-restoration of unreleased checks, staled
checks and ADA’s in NCR, Regions IV-A, VI and IX,
contrary to GAFMIS Circular Letter No. 2002-001
dated December 16, 2002, Section 52 of NGAS
Manual Vol. I and Section 97 of PD 1445;
 Unrecorded and undeposited collections amounting to
PhP0.14M and non-sequential issuance of ORs in
Regions VI and VIII, exposes government funds to
misappropriation and possible losses, contrary to
Sections 21 and 22 of MNGAS, Section 73 of GAAM
and Sections 101 and 107 of PD 1445;
 The consolidated balance of Receivable Accounts in
the amount of PhP10.13M is of doubtful validity due
to the following deficiencies: a) Receivable -
Disallowances/ Charges was understated by PhP0.82M
due to non-recording of audit disallowances in NCR;
and b) Due from DBM-PS was understated by
PhP2,679.93 due to double entry of deliveries;
unreconciled balance of PhP0.18M in NCR;
 Reciprocal Accounts Due from Regional Offices
(ROs) and Due to Central Office (CO) between the
books of TESDA CO and Regions I, III, IV-A, V and
VII showed unreconciled balance amounting to
PhP14.08M. Likewise, reciprocal accounts Due from
Operating Units (OUs) and Due to RO between the
books of NCR and its operating units showed
unreconciled balance amounting to PhP0.59M;
 Transfer of funds to Autonomous Region of Muslim
Mindanao (ARMM), NGOs/POs, NGAs, LGUs, OUs
and training providers totaling PhP107.29M from
TESDA Central Office and Region VI which were
intended for Personnel Services and Maintenance and
Other Operating Expenses for use of various projects,
training programs and allowances for trainees
remained unliquidated at year-end;
 The validity, accuracy, and existence of the
consolidated Property, Plant and Equipment in NCR
and Regions I, II, IV-A, IV-B V, VI, VII, VIII, X and
XII totaling P547.30M as of December 31, 2015 is
doubtful due to the: (1) absence of the Report on the
Physical Count of Property, Plant and Equipment
(RPCPPE), Property Cards/PPE Ledger Cards totaling
PhP526.31M; (2) reporting difference between
inventory report and the books of account of
PhP20.64M; and (3) unrecorded PPE/error in
recording and inclusion of obsolete/unserviceable
property resulting to net understatement of PhP0.35M;
 Depreciation Expense account is understated by
PhP3.39M due to unrecorded and erroneous
computation of depreciation expense recognized in the
329

books of TESDA NCR and Regions III, IV-A, X and
XI, thus understating the expense account and
overstating the equity account by the same amount;
 The Accounts Payable account of TESDA NCR and
Regions II, V, VII and VIII as of December 31, 2015
is overstated by PhP3.03M due to
improper/unrecording and misclassification of
accounts, while unreconciled records caused reporting
difference of PhP9.86M. Furthermore, NCR and
Regions V and VIII undocumented and unclaimed
payables, claims with no valid claimants which are
outstanding for two years or more amounting to
PhP18.70M were not reverted to Unappropriated
Surplus as of year-end, thus overstating the account by
the same amount; and
 Non-recognition, understatement and loss of income
totaling PhP14.47M due to failure of the Management
of TESDA CO and Regions II, IV, and VIII to adhere
with the prescribed rules and regulations in accounting
for certain income/revenue transaction.
Department   Unrecorded trust receipts by the DOLE Regional
of Labor and Offices for the Social Amelioration Program (SAP)
Employment Funds amounting to PhP113.518 million, thus,
(DOLE) understated the Cash in Bank, Other Payables and
other related accounts of DOLE, which constitute a
departure from the Philippine Public Sector
Accounting Standards (PPSAS);
 Allowance for impairment not recognized on loans and
interest thereon outstanding from 10 to 20 years
amounting to PhP40.871 million and receivables from
former DOLE personnel who were either deceased,
resigned or retired from service totaling PhP61.063
million;
 Unreconciled balance per books with schedule of
property and equipment accounts amounting to
PhP140.969 million;
 Unrecorded expenses/assets due to
unrecorded/unreported utilization of fund transfers
outstanding from one year to over three years
amounting to PhP706.262 million; and
 Unrecorded expenses/assets due to unreported
disbursement/liquidations of cash advances for
accounts outstanding from 91 days to over three years
amounting to PhP57.465 million.
National   Understatement by PhP0.22M of account Cash –
Conciliation Modified Disbursement System (MDS) amounting to
and PhP0.71M due to non-restoration of the cash
Mediation equivalent of the unreleased checks of PhP0.21M and
Board cancelled check of PhP1,546.88 and errors of
(NCMB) PhP5,452.50;
 Overstatement by PhP0.89M of accounts Property,
Plant and Equipment (PPE) with an aggregate balance
of PhP78.48M due to recognition of small tangible
items as PPE, non-derecognition of disposed vehicles
and inclusion in the account items already donated; and
 Overstatement by PhP0.34M of Accounts Payable of
PhP4.81M as well as the corresponding property
330

accounts due to recording of undelivered IT Equipment
in the books of accounts.
National   Unreconciled variance of PhP35.07M in the Cash In
Labor Bank-Local Currency Current Account (LCCA)
Relations between the book and bank balances due to the absence
Commission of Bank Reconciliation Statements and Subsidiary
(NLRC) Ledgers;
 A difference of PhP0.54M between the reported
balance of Inventory accounts per books and the
Report of Inventory of Supplies due to non-
reconciliation between the Accounting and the Supply
and Property records;
 Unreconciled variances of the PPE accounts totaling
PhP2.21M between the accounting records and
inventory reports due to failure to complete the
physical inventory by the Supply Office and non-
updating and maintenance of Property Cards by the
Property and Accounting Units; and
 Lack of schedules/statements for fiduciary trust fund
and non-updating of Subsidiary Ledgers in the amount
of PhP297.11M out of the total Trust Liabilities
account of PhP1,077.07M rendered the said account
unreliable.
National   Unrecorded audit disallowances with Notice of
Wages and Finality of Decision (NFD) amounting to PhP0.09M in
Productivity the books of RTWPB XII resulting in the
Commission understatement of the Receivables-
(NWPC) Disallowances/Charges and Accumulated
Surplus/(Deficit) accounts;
 Overstatement of Office Supplies Inventory account
and understatement of the Accounts Payable account
due to recording of the undelivered inventory items in
RTWPB XII amounting to PhP0.32M; and
 Overstatement of the Property, Plant and Equipment
(PPE) accounts and understatement of the
Accumulated Surplus/(Deficit) by PhP0.46M due to
the existence of various tangible assets in RTWPB XII
small enough to be classified as PPE.
National   Doubtful validity of Advances to Officers and
Council for Employees account due to the existence of due and
Children’s demandable unliquidated cash advances amounting to
Television PhP6.46M;
(NCCT)  Unrecorded intangible assets amounting to PhP1.60M
in the books of accounts of the NCCT for the initial
payment to CBN Asia, Inc. of the pilot episode of the
television program for the children entitled “OYAYI”;
and
 Abnormal balance of the Due to BIR accounts of
PhP0.04M due to erroneous recording of penalty for
late remittance.
National 
Book
Development
Board
(NBDB)
Early   The account Due from LGUs is overstated by a net of
Childhood PhP20.99M due to: (1) unrecorded liquidation of
331

Care and outstanding balances of fund transfers from various
Development LGUs totaling PhP12.29M; (2) unrecorded fund
Council transfers to LGUs totaling PhP3.00M; (3) double
(ECCDC) deduction of liquidation totaling PhP5.43M; (4)
erroneous entry amounting to PhP1.03M; and (5)
inclusion of unreleased checks totaling PhP16.10M.
National   Reconciling items for accounts Cash-in Bank-Local
Museum Currency and Treasury/Agency Cash Accounts
(NM) transactions totaling PhP338.74M and PhP3.54M,
respectively, which have accumulated since CY 2011
remained unrecorded as of year-end, including the
unaccounted Investments/Transfer of Museum
Endowment Fund (MEF) from LBP to Banco de Oro
(BDO) of PhP203.93M and Bank of the Philippine
Islands (BPI) PhP128.00M or a total of PhP331.93M
due to the absence of supporting documents that will
validate the legality of the transaction and due to
delayed preparation/submission of the Bank
Reconciliation Statements (BRS) which was not in
consonance with Section 74 of PD No. 1445 and COA
Circular No. 92-125A dated March 4, 1992;
 Failure on the part of the National Museum to remit
revenues earned in excess of the allowable P2.0 million
Revolving Fund (RF) under Section 26 of the Special
Provisions for the National Museum (CY 2015) from
its regular operation
resulted in the accumulated balance of PhP11.49M;
 The absence of proper monitoring and non-adherence
to the provisions of Section 89, PD No. 1445 and
COA Circular 97-002 dated February 10, 1997 on the
granting, utilization and liquidation of cash advances
resulted in the: a) delay in the liquidation of the cash
advances granted to NM officials and employee; b)
accumulation of unliquidated balance of cash advances
amounting to PhP3.07M; and c) unreconciled balances
between the general ledger and the subsidiary records
with a total of PhP3.52M or a difference of PhP0.45M;
 The book values of year-end Property, Plant and
Equipment (PPE) accounts totaling PhP2,553.04M
(includes Construction-in-Progress of PhP949.38M
and Heritage Asset Account of PhP198.98M) are
inaccurate and unreliable due to the inability of
management to conduct actual physical
inventory of properties for CY 2015 and to reconcile
the variances totaling PhP893.75M between the
accounting and property records, contrary to Section
43 of the NGAS Manual, Volume I;
 The validity of payables of PhP179.66M cannot be
fully relied upon due to: (a) reported expenses under
the Maintenance and Other Operating Expenses
(MOOE) and Capital Outlays accounts of PhP6.51M
and PhP78.96M, respectively, or a total of P91.02M
that were treated as payables but without valid
documents to support the claims; and (2) dormant
payables for over five (5) years lodged under Due to
NGAs, Due to GOCCs, Due to LGUs and the Other
Payables accounts totaling PhP69.70M either without
332

subsidiary records or other documents to support the
validity and propriety of the transactions; and
 The reasonableness of recorded cost of NM collections
lodged under the Heritage Asset account (recognized
under the Arts, Archeological Specimen and Other
Exhibits in prior years) in the total amount of
PhP198.98M were not appraised by a panel of experts
that will identify the genuineness/authenticity and the
legality of ownership of these priceless and
irreplaceable NM works of arts and collections. Due to
the deficiencies noted, the validity and correct value of
these Heritage Assets as of year-end cannot be
ascertained.
Bureau of   Doubtful validity of the Due from Regional Offices
Workers with account amounting to PhP35.55M due to non-
Special confirmation and reconciliation of balance per books
Concerns- of the BWSC and that of DOLE Regional Offices
Social (ROs) for SEPRF transferred to DOLE;
Amelioration  Unreliable Land Improvement and IT Equipment and
Program Software accounts amounting to PhP40.93M and
(BWSC- PhP40.68M, respectively, due to unreconciled balance
SAP) of PhP0.26M between the books and that recorded in
the Inventory Report due to failure of the Property
Officer to update the property records;
 Doubtful validity of the account balances of
Receivable-Others, Advances to Officers and
Employees, and Receivables-Disallowances/Charges
in the amounts of PhP16.63M, PhP0.59M, and
PhP0.27M, respectively, due to unavailability of
documents to support request for write-off for the long
outstanding dormant accounts for over 10 to 30 years;
and
 Erroneous recording to Depreciation Expense account
of PPE transferred without cost in prior years instead
of recording to the Government Equity account,
resulted in the negative balance of the Depreciation-
Machinery and Equipment and Depreciation-
Furniture, Fixtures and books accounts in the amount
of PhP1.59M and PhP0.16M, respectively.
Institute of 
Labor Studies
(ILS)
Philippine   Long outstanding cash advances to officers and
Overseas employees aged ten years to over 19 years totaling
Employment PhP1.37M as of December 31, 2015 were still not
Administratio liquidated resulting in the overstatement of both the
n (POEA) affected asset and expenditures accounts as of the end
of the year, contrary to COA Circular No. 97-002 dated
February 10, 1997;
 The accuracy, reliability and validity of the balance of
account Due from National Government Agencies
amounting to PhP5,392,757.52 is doubtful due to the
discrepancy against the balance of PS-DBM records of
PhP3.53M or a total unreconciled difference of
PhP1.94M;
Dormant Accounts Receivable and Other Receivables
accounts with balances of PhP7.76M and PhP0.57M,
333

respectively, had been overdue for over five to 30
years, making collections almost nil due to failure to
intensify efforts to collect thereof. It also included
uncollected rentals and other fees of PhP2.06M
from tenants contrary to Section 120 of the GAAM,
Volume I, hence denying the agency and the
government, use of additional funds to finance priority
programs/projects;
 The accuracy of the reported balance of inventory
accounts totaling PhP3.78M is doubtful due to the
discrepancy of PhP2.34M between the physical count
and the book balances, as well as other lapses noted
over inventory management;
 The huge discrepancy of PhP248.43M between the
book balances of Property, Plant and Equipment (PPE)
as of December 31, 2015 and of the Report of Physical
Count of Property, Plant and Equipment (RPCPPE)
could have been significantly reduced had the Property
and the Accounting Divisions reconciled their records
as well as corrected other lapses noted over property
management, such as: a) incorrect account name in the
Property records; and b) excluded in the RCPPE three
accounts amounting to PhP24.40M;
 The Due to GSIS and the Due to Pag-IBIG accounts
posted negative balances of PhP1.06M and PhP0.02M,
respectively, due to accumulated errors in recording
that rendered such balances doubtful and unreliable;
 The balance of the account Due to BIR amounting to
PhP8.42M included the amount of PhP5.61M that had
been dormant for many years now allegedly due to the
failure of POEA Regional Extension Offices to remit
taxes they withheld and/or for adjustments that have
yet to be effected, thus overstating the account by the
same amount; and
 Outstanding Accounts Payable of PhP36.63M aged
more than two years were not reverted to the
Unappropriated Surplus of the General Fund contrary
to Section 98 of PD No. 1445 and DBM-COA Joint
Circular No. 99-6 dated November 13, 1999.
Moreover, the balances of Inter-Agency Payables
carried over from the old Government Accounting
System in the total amount of PhP5.03M have been
dormant for over ten years. These resulted in the
overstatement of the agency’s liability account
balances.
Professional   The accuracy of reporting of the agency’s collections
Regulation on service and business income derived from
Commission applications of licensure examination and its
(PRC) registrations amounting to PhP1,073.76M cannot be
established due to material variance of
PhP29,646,704.52 noted between the records of the
Cash Division as against that of the Planning and
Monitoring Division. Likewise, the collection from
PRC-Zamboanga amounting to PhP0.03M remained
unrecorded in the PRC books resulting to
understatement of collections by the same amount;
334

 The accuracy and validity of deposits/remittance of
Shoe Mart Inc. (SMI) collections totaling PhP144.88M
from September 2012 to December 31, 2015 could not
be ascertained due to lack of documents submitted,
particularly the certification of actual deposits from
Land Bank of the Philippines and the Bureau of the
Treasury as required under Section 3.7 to 3.9 of the
MOA with SMI. Likewise, regular reconciliation
of
the reported collections by the Accounting Division as
against the remittance of the SMI was not achieved due
to the delay of submission of the required reports from
SMI, thus rendering such amount doubtful;.
 Unrecorded deliveries of office supplies purchased
thru PS-DBM totaling PhP8.28M in CY 2015 resulted
in the overstatement of the account Due from NGAs
and understatement of the Inventory accounts by the
same amount. Also, the validity of the balance of Due
from NGAs account amounting to PhP615.18M as of
December 31, 2015 could not be ascertained due to
records of PS-DBM as against the PRC books from CY
2004 to CY 2015;
 The existence, validity and correctness of the reported
carrying amount of the PPE accounts for CY 2015 in
the total amount of PhP290.22M is unreliable due to
accounting errors resulting to a net overstatement of
PhP29.57M. Likewise, computation of depreciation
expense for buildings and other machineries and
equipment were not provided due to the absence of the
date of acquisition of equipment and the non-
availability of records for the old building occupied by
PRC;
 The total balance of Inventory accounts amounting to
PhP59.66M is of doubtful validity due to: a) failure of
the Accounting Division to take up the delivery of
supplies and some of its issuances amounting to
PhP8.28M; b) the inclusion of dormant balance of
PhP5.40M before the implementation of e-NGAS with
no documents to support its existence; and c) the non-
reconciliation of the records of the Accounting
Division with the Property Office; and
The carrying amount of the Construction in Progress
(CIP) account amounting to PhP76.32M is unreliable
due to the adjustment made in transferring the
Computer Software developed for the modernization
program of PRC in the amount of PhP66.59M to
Intangible Assets account, contrary to Chapter 12
Section 4 of Government Accounting Manual.
Likewise, the fund transferred to DPWH Tuguegarao
amounting to PhP1.86M was recognized under account
Construction in Progress account thereby overstating
the said account.
Note: The following agencies were issued MLs instead of AARs due to non-submission of year-end
financial statements: EARIST, MPC, and RTU.
335

Cluster 6 -
Health and
Science
Department of  Accounting Errors:
Social Welfare  Errors affecting cash account, PhP26.813 million
and  Unrecorded liquidations of inter-agency receivables,
Development PhP512.896 million
(DSWD) -  Unrecorded/misclassification of inventories, PhP95.192
OSEC million
 Unrecorded/misclassification of PPE, PhP79.671
million
 Unrecorded Payables, PhP17.321 million
Accounting Deficiencies:
 Unaccounted Cash –in Bank LCCA, PhP4.944 million
 Unsupported cash reconciling items, PhP0.473 million
 Unliquidated Advances to SDO and Officers and
Employees, PhP125.492 million
 Unliquidated Fund transfers to implementing agencies,
PhP2,440.010 million
 Unreliable balance of Inventory accounts,
PhP1,066.972 million
 Unreliable balances of PPE accounts, PhP1,711.626
million
Council for the   Unrecorded collections and receipt of fund transfer
Welfare of affecting Cash and Due to NGAs accounts,
Children PhP680,800.
(CWC)  Unrecorded deliveries and issuances of supplies and
materials affecting Office Supplies Inventory and Due
from NGAs-PS-DBM accounts, PhP1.051 million.
 Unliquidated fund transfers to NGAs, PhP29.876
million.
 Unliquidated fund transfers to LGUs, dormant for
more than five (5) years, PhP62.245 million.
Inter-Country 
Adoption
Board
National   The existence, accuracy and reliability of some PPE
Council on accounts as of December 31, 2015, could not be fully
Disability ascertained due to (a) non-reconciliation of property and
Affairs accounting records; (b) non-maintenance of PC and
(NCDA) PPELC by the Property and Accounting Units,
respectively; and (c) non-provision of PPE depreciation
and impairment.
 Errors were noted in recording financial transactions
resulting in misstatements of affected accounts with
total amount of PhP2.264 million.
 The validity of the Due from NGAs, NGOs/POs, and
LGUs, and Guaranty Deposits and Other Assets
accounts could not be established due to non-
maintenance of SL, absence and/or lack of supporting
records/documents, and dormancy of the accounts for
over five (5) years.
National Youth 
Commission
336

Juvenile Justice 
and Welfare
Council
Department of   Various accounting errors/ omissions in recording and
Science and reporting fund transfers, PPE, liabilities, and other
Technology financial transactions resulted in the understatement of
(DOST) – the total Assets by PhP40.805M, Liabilities by
OSEC PhP10.818M, and Net Assets/ Equity by PhP29.987M;
 Accounting deficiencies in recording and reporting
financial transactions amounting to PhP2.883B affected
the reliability and accuracy of the reported balances of
the FSs.
Advanced   Overstatement of asset due to the non-provision of
Science and depreciation amounting to PhP1.025M;
Technology  Overstatement of asset due to the unrecorded issuances
Institute (ASTI) of supplies amounting to PhP0.030M;
 Unreliable balance of Cash- Treasury/ Agency Deposit,
Trust account amounting to PhP4.779M;
 Unreliable balance of PPE amounting to PhP488.948M;
 Unreliable balance of Due to NGAS account amounting
to PhP3.564M.
Food and 
Nutrition
Research
Institute
Information  Accounting Errors:
and  Errors/omission affecting Cash LCCA account,
Communication PhP4.133 million;
Technology  Unrecorded deliveries from PS DBM affecting Due
Office (ICTO) from NGAs, PhP245.874 million;
 Unrecorded liquidation of cash advances to FOO,
PhP251.317 million;
 Errors in recording liquidation/Unrecorded liquidation
of advances for travel and operating expenses,
PhP1.587 million;
 Errors in recording inventories, PhP0.478 million;
 Errors/omissions in recoding liabilities, PhP8.286
million.
Accounting deficiencies:
 Accounting and Reporting Deficiencies on Cash in
Bank – LCCA account, PhP158.50 million;
 Accounting and control deficiencies on Cash
Collecting Officers (CCOs) account, PhP12.164
million;
 Long outstanding and Dormant Receivables,
PhP176.073 million;
 Unliquidated Advances for Travel and Operating
Expenses, PhP39.484 million;
 Unliquidated Fund Transfers to NGAs, LGUs and
GOCCs, PhP703.394 million;
 Accounting and Control Deficiencies for Inventories,
PhP51.205 million;
 Accounting and Control Deficiencies on PPE,
PhP2,655.254 million;
337

 Accounting Deficiencies on Accounts Payable,
PhP40.374 million.
Industrial 
Technology
Development
Institute
Metal Industry   Overstatement of Deposit on Letters of Credit and
Reseach understatement of PPE accounts both by PhP16.560 M
Development due to unrecorded applications;
Center  Overstatement of expenses and understatement of assets
(MIRDC) due to erroneous recording of prototype projects of
PhP122.840 M as outright expense;
 Overstatement of the liability and expense accounts of
PhP2.865 M due to double recording of liabilities for
Hazard Allowance Differential;
 Understatement of the accounts Due to BIR and Due
from Officers and Employees due to non- withholding
of taxes for CNA, PEI and PBB for CY 2014 and CNA
for CY 2015 amounting to P2.278 M and PhP0.796 M,
respectively;
 Unreconciled difference of the Due to NGAs account
amounting to PhP67.802 M between the books of
MIRDC as IA and SAs;
 Existence of negative balance of PhP0.524 M in the SL
of Due to NGAs account.
National 
Academy of
Science and
Technology
National   The accuracy of PPE with total recorded balances of
Research PhP28.342 million could not be fully ascertained due to:
Council of the a) unreconciled variance of PhP8.087 million between
Philippines Accounting Records and RPCPPE; b) unbooked
(NRCP) equipment with book value of PhP2.793 million
purchased out of GIA funds granted to various schools
for the conduct of research; and, c) unserviceable
property worth PhP0.330 million not derecognized in
accordance with PPSAS 17.
Philippine   Unreconciled Cash in Bank- LCCA with a net amount
Atmospheric of PhP33,010.00 due to non-cancellation of stale checks
338

Geophysical amounting to PhP1.466M , unrecorded new account for
Astronomical the Weather Index Based Insurance (WIBI) Mindanao
Service Project with a bank balance of PhP1.5M; and inclusion
Administration of a UNDP-funded account- PAGASA GMMA Ready
(PAGASA) Project amounting to PhP1,110.00;
 Net understatement of both Office Supplies Inventory
and Other Supplies Inventory by PhP2.494M and
PhP13.899M, respectively;
 Unreconciled PPE accounts amounting to PhP2.863 B
 Misstatement in the miscellaneous Income account of
PhP7.327M made through the LBP- PASS5 account for
the import duties and taxes imposed by the BOC;
 Incomplete documentation of Other Payables account
amounting to PhP32.922 M.
Philippine   Understatement of Cash in Bank – LCCA by PhP75,000
Council For due to the failure of the Accountant to take up the
Health reconciling items in the books as of December 31, 2015.
Research and  Erroneous recording of fund transferred to private
Development entities to Due from NGOs/POs instead of Other
(PCHRD) Receivables amounting to PhP56.356 million.
 Discrepancy between the balance per books and total
amounts confirmed of the accounts Due from
NGOs/POs amounting to PhP363.225 million and
PhP61.789 million, respectively.
Philippine   Erroneous recording of Due from NGAs amounting
Council for to PhP1.398M; and
Industry and  Unreconciled inter-agency transferred funds of Due to
Energy NGAs account amounting to PhP445.238M.
Research
Development
(PCIERD)
Philippine   Non recognition of custom duties and internal revenue
Institute of taxes on various importation of donated scientific and
Volcanology technical equipment as cost of PPE amounting to
and Seismology PhP30.617 M;
(PHIVOLCS)  Unrecorded donated equipment amounting to
PhP208.377M and PhP73.796M by Japan International
Corporation Agency/System (JICA/JICS) and National
Research Institute for Earth Science and Disaster
Prevention (NIED), and Government of Japan,
respectively.
Philippine   Unreconciled discrepancy of PhP3.288 million between
Nuclear Data Based System (DBS) of Property Unit and GL
Research balances; non-conduct of physical count; non-recording
Institute of some donated properties; and unrecorded purchases
(PNRI) out of GIA funds amounting to PhP0.318 million.
 Overstatement of Office Supplies Inventory due to non-
recording of supplies and materials issued totaling
PhP2.199 million.
 Unsubstantiated and unreconciled prior year’s balances
of Due to NGAs account amounting to PhP19.200
million.
 Dormant Accounts Receivable amounting to PhP9.109
million remained uncollected for over five to more than
10 years, thus chances of collection is almost nil.
339

 Unsupported balance of Due from NGAs to establish
validity of the accounts amounting PhP0.445 million.
Philippine   Unreliable balances of Advances to Special Disbursing
Science High Officers and Advances to Officers and Employees due
School (PSHS) to unreconciled balance;
 Uncertainty of the existence and completeness of

recorded inventory accounts in the PSHS System’s
books totaling PhP63.131 million due to: (i) non-
maintenance of SLCs and un-updated SCs; and, (ii) non-
conduct of physical count of inventory since CYs 2013
to 2015;
 Uncertainty of the existence, accuracy and valuation of
PPE balances worth PhP1,819.188 million due to (i)
absence of complete physical count of PPE (ii) no
PPELC maintained and PC maintained not updated; (iii)
non-provision of impairment loss on damaged, obsolete,
unserviceable or idle properties; and (iv) non- recording
of donated equipment; and
 Misstatements of PPE accounts worth PhP23.236
million for infrastructure projects already completed.
Philippine 
Textile Reseach
Institute (PTRI)
Science   Overstatement of PPE due to unrecorded donations of
Education equipment amounting to PhP6.794M;
Institute (SEI)  Long outstanding year-end balance of the Due from
National Government Agencies amounting to
PhP1.558B, of which PhP88.473M had been dormant
already;
 Accumulation of the balance of Due from NGO/POs
amounting to PhP290.429 M, of which PhP17.459 M
had been outstanding for more than five years;
 Unreconciled net variance of PhP47.723M between the
property and accounting records.
Science and   The accuracy and reliability of the PPE accounts with
Techology total balance of PhP41.049 million could not be fully
Information ascertained due to (a) unsupported dropping of PPE
Institute (STII) worth PhP9.198 million; and (b) unreconciled PPE
variances of PhP0.463 million between accounting and
property records;
 The balances of inventories between accounting and
property records did not reconcile due to non-
submission of RSMI by the supply officer, casting doubt
on the total balance of Inventories PhP0.639 million;
and
 Non-liquidation of funds transferred to the PSHSS for a
completed project resulted in the long-outstanding year-
end balance of Due from NGAs of PhP0.217 million.
Technology 
Application
Promotion
Institute
(TAPI)
Metropolitan   Inaccuracy of net values of PPE accounts due to: (a)
Manila variances totaling PhP1,739.484 million between
340

Development accounting and property records; (b) failure to identify
Authority supporting details for Reconciling SL balances totaling
(MMDA) PhP718.315 million; (c) misclassification of PPEs
totaling PhP115.684 million; (d) non-recognition of
infrastructure assets totaling PhP4,665.702 million; and,
(e) non-provision of depreciation for Construction and
Heavy Equipment costing PhP77.009 million;
 Overstatement of the Accounts Payable by PhP525.417
million due to recognition of liabilities for contracts
even without documents evidencing project
accomplishments and acceptance thereof by
Management;
 Dormant asset and liability accounts totaling PhP6.329
million and PhP88.358 million, respectively; and
 Existence of negative balances of Due to GSIS, Due to
PAG-IBIG, and Due to Philhealth accounts in the
aggregate amount of PhP20.672 million.
Department of   Understatement of Cash account amounting to
Health (DOH) - PhP11.455 million due to errors and omissions in
OSEC recording cash and cash-related transactions
(collections, deposits, bank reconciling items and
unreleased checks);
 Understatement of PhP14.660 million of the
Receivable account due to errors/omissions in
recording receivables;
 Overstatement of Inventory account in the amount of
PhP257.892 million due to unrecorded inventory
acquisitions thru purchases and donations,
issuances/transfers of inventories and other errors and
omissions;
 Understatement of PPE account amounting to
PhP683.346 million due to unrecorded PPE
acquisitions and disposals/transfers, non-
reclassification of completed projects to respective
PPE accounts, unserviceable/obsolete and fully
depreciated PPE not recognized as Impairments Losses
and other errors/omissions in recording PPEs;
 Understatement of PhP147.196 million of the Other
Asset account due to errors/omissions in recording
other asset transactions; and
 Overstatement of Liability account in the amount of
PhP87.307 million due to errors/omissions in
recording liabilities and non-reversion of unsupported
and past due payables;
 Unreconciled Cash accounts of PhP274.552 million;
 Unreconciled Receivables accounts amounting to
PhP25.289 million;
 Other Discrepancies noted thru confirmation of
receivables of PhP37.314 million;
 Non-maintenance of Subsidiary Ledgers for
Receivables and Payables accounts in the aggregate
amount of PhP373.118 million and PhP511.422
million, respectively;
 Unreconciled difference of PhP9.867 billion between
the Inventory book balance and physical count
balance;
341

 Unreconciled difference of PhP2.254 billion between
PPE balance per books and physical count balance;
 Unreconciled Liabilities accounts amounting to
PhP4.998 million;
 Unidentified Cash and PPE balances in the aggregate
amount of PhP6.004 million and PhP21.838 million,
respectively;
 Negative balances resulting from erroneous entries: (i)
Cash of PhP0.101 million, (ii) Receivables of
PhP92.927 million, (iii) PPE of PhP6.924 million, and
(iv) Liabilities of PhP109.490 million;
 Unreliable Cash-in-Bank balances of PhP18.841
million due to non-preparation of Bank Reconciling
Statements;
 Long-outstanding and dormant Inter-agency
Receivables of PhP4.244 billion;
 Unliquidated Advances to Officers and Employees
amounting to PhP33.520 million;
 Doubtful collectability of receivable from operations in
the aggregated amount of PhP1.364 billion;
 Other dormant Receivable account of (PhP17.085
million); and
 Doubtful/unreliable balances of Receivables and
Liabilities account s amounting to PhP24.426 million
and PhP100.320 million, respectively.
Commission on   Understatement of Buildings Improvements account
Population amounting to PhP0.488 million in RPO V due to late
(POPCOM) receipt of the Certificate of Turn Over and Completion;
 Non-conduct of physical count of properties with a book
value of PhP9.969 million for the last nine (9) years;
 Unreconciled balance of various PPE accounts totaling
PhP0.230 million;
 Unreconciled variances between GL and SLC of
Inventory account with balances of PhP11.106 million;
 Unliquidated Advances to Officers and Employees in
the amount of PhP1.958 million; and
 Unliquidated Due from NGAs, LGUs and NGOs/POs
amounting to PhP98.829 million dormant for over five
years.
National   Overstatement of Cash in Bank-LCCA by PhP331.696
Nutrition million due to unrecorded disbursements;
Council (NNC)  Uncertain existence and accuracy of the balances of
Inventories accounts totaling PhP85.602 million due to
the non-conduct of physical count and un-updated
postings in the SCs and SLCs;
 Unliquidated dormant fund transfers to NGAs, GOCCs
and LGUs amounting to PhP61.015 million;
 Uncertain existence of Property, Plant and Equipment
(PPE) accounts with aggregate amount of PhP54.200
million due to non-conduct of physical count of PPE and
prepare/submit the RPCPPE; and
 Unliquidated Advances to Officers and Employees and
Special Disbursing Officers amounting to PhP7.899
million and PhP4.408 million, respectively, as at year-
end.
Cluster 7 - Public Works, Transport & Energy
342

Department   Dormant bank accounts of PhP196.23M were not closed
of Public and reverted to BTr. Moreover, unsubstantiated cash
Works and balance of PhP1,175.05M remained in the books which
Highways rendered the cash account unreliable.
(DPWH)  Funds transferred to various NGAs, GOCCs and LGUs
amounting to PhP7.85M remained unliquidated, of
which PhP5.70M have been outstanding for over two
years. Thus, any expenses incurred therefrom were not
recognized in the proper accounting period.
 The Inventory account of PhP885.23M was overstated by
a net amount of PhP1.72M due to unrecorded
purchases/donations of PhP12.71M, unrecognized
issuances of inventories in the amount of PhP83.41M,
and purchases directly recorded as expense amounting to
PhP68.98M.
 The Advances to Contractors account of PhP25,364.09M
was unreliable due to erroneous recording of transactions
which overstated the account by PhP3.88M and
undocumented balances of PhP231.79M.
 The Property, Plant and Equipment balance of
PhP1,131,673.56M was unreliable due to various
recording errors which overstated the accounts by
PhP336.47M and existence of undocumented PPE
amounting to PhP1,212.00M.
 Lapses in the adoption and implementation of
Department Order No. 176 series of 2015, which
prescribes the Guidelines and Procedures in the
Recognition and Derecognition of Infrastructure Assets,
included (a) inconsistency of the information generated
from the Roads and Bridges Information Application
(RBIA); (b) inclusion of inventories which were
constructed more than 40 years past; (c) adoption of
unapproved cost estimates in the valuation of roads and
bridges; and (d) inadequate guidelines in the recognition
of projects completed subsequent to 2014, that may
result in the misstatement of PPE accounts affecting the
reliability of the fair presentation in the financial
statements.
 As pointed out in Note 7.1 and Note 19.1, Infrastructure
Assets transferred from the Roads and Bridges
Information Application (RBIA) and other fund source
and the corresponding depreciation were recognized in
the books of accounts in the current period instead of
restating the 2014 balances of the affected accounts in
view of the change in accounting policy, as required
under paragraph 27 of PPSAS 3. Moreover, as indicated
in the Statement of Changes in Net Assets/Equity, prior
year’s errors and other adjustments were corrected in the
beginning balance of the Accumulated Surplus for the
current period instead of restating the comparative
amounts of the affected accounts in the prior period in
which the error occurred, which is not in accordance with
paragraph 47 of PPSAS 3.
 Transferred funds received from various NGAs, GOCCs
and LGUs amounting to PhP15.63M5, which remained
unliquidated as at December 31, 2015, and errors in the
343

recording of transferred funds and liquidation thereof
rendered the reported Inter-Agency Payables unreliable.
 The reported year-end balance of Accounts Payables of
PhP28,647.73M could not be relied upon due to the (a)
non-reversion of long outstanding payables amounting to
PhP17,503.85M, aged two years or more, against which
no actual claim has been filed; and (b) erroneous
recording of various transactions of PhP35.63M.
Road Board   Fund transfers to various NGAs and LGUs aggregating
(MVUC) PhP1,108.66M, remained unliquidated as at year-end,
PhP372.23M of which have been outstanding for over
one year; thus, any expenses incurred therefrom was not
recognized in the proper accounting period.
 Unrecorded purchases and issuances of inventories and
direct recording of unissued inventories as expenses
resulting in the net overstatement of the reported assets
by PhP2.41M.
 Unrecognized depreciation and erroneous
reclassification of a completed infrastructure project to
an expense account, resulting in the understatement of
the Depreciation Expense, Accumulated Depreciation,
and Road Networks accounts by PhP1.95M, PhP1.95M,
and PhP15.07M, respectively, and the overstatement of
the Repairs and Maintenance – Road Networks account
by PhP15.07M.
 As pointed out in Note 9.5, completed Infrastructure
Assets funded out of the MVUC Fund were derecognized
in the books of accounts in the current period instead of
restating the 2014 balances of the affected accounts in
view of the change in accounting policy, as required
under paragraph 27 of PPSAS 3. Moreover, as indicated
in the Statement of Changes in Net Assets/Equity, prior
year’s errors and other adjustments were corrected in the
beginning balance of the Accumulated Surplus for the
current period instead of restating the comparative
amounts of the affected accounts in the prior period in
which the error occurred, which is not in accordance
with paragraph 47 of PPSAS 3.
Department   The balance of the PPE accounts amounting to
of PhP36,420.25M is inaccurate due to net overstatement
Transportatio of PhP5,621.94M as a result of errors/omissions in
n and recording of transactions.
Communicati  The book balance of Cash-Collecting Officers account
ons (DOTC) amounting to PhP90.68M cannot be ascertained due to
(a) only one subsidiary ledger (SL) for each Collecting
Officer of LTO-NCR for both Funds 101 and 151 was
prepared; (b) failure to establish the ending balance
amounting to PhP11.02M; and (c) inconsistencies in
recording of deposits in the books of accounts/report of
collections.
 The gain on foreign exchange amounting to PhP9.12M
was not recorded in the books resulting in the
understatement of the Cash in Bank – Foreign Currency-
Savings Account and the corresponding revenue
account.
 The Other Payable account of PhP5,035.34M is
unreliable due to overstatement of PhP86.60M as a
344

result of erroneous and misclassification of accounts.
Moreover, the amount of PhP64.87M, representing
retention fees and amounts in escrow remained dormant
for more than 12 years, thus affecting the fairness of
presentation and reliability of the Agency’s financial
position.
 As pointed out in Note 28, assets, liabilities and equity
of LRTA were excluded from DOTC Consolidated
Financial Statements in 2015 instead of restating the
2014 balances of the affected accounts. Moreover, as
indicated in Note 4 and the Statement of Changes in Net
Assets/Equity, prior year's errors and other adjustments
were corrected in the beginning balance of
Accumulated Surplus for the current period instead
of restating the comparative amounts of the affected
accounts in the prior period in which the error occurred,
which is not in accordance with paragraph 47 of PPSAS
3.
Philippine   The Inventory - Held for Distribution account was
Coast Guard overstated by PhP358.03M due to the improper
(PCG) recording in the books of assets given by the US
Government to the National Coast Watch (NCWC), a
unit under the Office of the President.
The recorded Property, Plant and Equipment (PPE) and
Inventories - Held for Consumption account balances of
PhP7,999,456,994.48 and PhP62,450,936.11,
respectively as of December 31, 2015 were not
established due to incomplete physical count and
failure to maintain complete property/stock cards and
accounting ledger cards by the PCG SAO and
Accounting Units, respectively.
 As indicated in Note 22 and the Statement of Changes
in Net Assets/Equity, prior year’s errors and
adjustments were corrected in the beginning balance of
the Accumulated Surplus for the current period instead
of restating the comparative amounts of the affected
which is not in accordance with paragraph 47 of PPSAS
3.
Civil 
Aeronautics
Board (CAB)
Toll 
Regulatory
Board (TRB)
Office for   The year-end balance of the Property Plant and
Transportatio Equipment (PPE) accounts of PhP710.11M did not
n Security reconcile with the balance per Report on the Physical
(OTS) Count of PPE (RPCPPE) of PhP820.59M.
 The book balance of the Due from GOCCs account
amounting to PhP251.60M as of December 31, 2015
representing the advances to PITC was not reconciled
with the balance per records of said agency of
PhP127.17M or a difference of PhP124.43M.
 The balance of Inventory accounts per General Ledger
(GL) and the balance per Report on the Physical Count
of Inventories (RPCI) did not reconcile by PhP23.27M
345

due to the failure of the Supply Officer to prepare and
submit the Report of Supplies and Materials Issued
(RSMI) to the Accounting Section as basis to record the
issuances.
 As indicated in Note 4 and the Statement of Changes in
Net Assets/Equity, prior year’s errors and adjustments
were corrected in the beginning balance of the
Accumulated Surplus for the current period instead of
restating the comparative amounts of the affected
which is not in accordance with paragraph 47of PPSAS
3.
 The reported Other Service Income of PhP636.93M is
not reflective of the accurate income of OTS from the
Aviation Security Fees (ASF) for the year because ASF
earned for the period June 2013 to December 2014 were
recognized only in CY 2015 while ASF for September
to December 2015 were not yet recognized in the books.
Office of   The initial fund transfer of PhP0.17M from the
Transportatio Department of Transportation and Communications for
n the "Operator Engagement and Capacity Building
Cooperatives Program" was taken up in the books as Subsidy from
(OTC) Other National Government instead of Due to NGAs
account thus affecting the accuracy in the presentation
of the said accounts in the Financial Statements.
Department   The balances of fund remittances in the Philippine
of Tourism Tourism Offices (PTOs) abroad recorded under accounts
(DOT) Cash in Bank- Foreign Currency, Current Accounts
(FCCA) and Cash in Bank-Foreign Currency, Savings
Account (FCSA) amounting to PhP102.05M and
PhP76.20M, respectively, or a total of PhP178.25M,
were inaccurate and unreliable in view of the: (a)
unreconciled difference of (PhP22.33M) between the
General Ledger (GL) and Substitute Subsidiary Ledger
(SSL); (b) undocumented liquidation report of
PhP4.88M; (c) and non-translation at reporting date of
the foreign currency balances using the closing rate and
the non-recognition of the gains in currency exchange
thereof aggregating PhP5.74M.
 Of the year-end balance of funds transferred to NGAs,
GOCCs, LGUs, NGOs/POs and ROs of PhP1,243.68M,
a substantial amount of PhP818.97M remained
unaccounted for over one to 21 years; and despite
completion of projects/activities, an aggregate amount of
PhP302.20M were not liquidated. Moreover, the year-
end balances were rendered inaccurate and unreliable in
view of the: (a) inadequately documented fund transfers
aggregating PhP142.39M; (b) unreconciled difference of
PhP4.95M between the reciprocal accounts of the Central
and Regional Offices; (c) negative results of
confirmation of balances in the amount of PhP3.47M and
(d) net overstatement of PhP1.20M due to inappropriate
recognition of the receivable accounts.
 Of the unliquidated cash advances of PhP29.67M, the
amount of PhP17.67M were aged over one year to over
28 years and the amount of PhP6.12M pertains to the
346

unsettled accounts of former officials and employees,
who are retired, resigned or already dead.
 The balances of Office Supplies Inventory, Other
Supplies and Materials Inventory, and Other Supplies
and Materials for Distribution as of December 31, 2015
amounting to PhP5.65M, PhP14.24M and PhP4.02M,
respectively, were incorrect and unreliable in view of the
following: (a) unreconciled net difference of PhP1.17M
between the books and physical count; (b) recording of
promotional materials aggregating PhP2.37M as outright
expense; (c) unsupported adjustment of balance and
issuance of inventories valued at PhP4.17M; (d)
reclassification errors of PhP0.59M and (e) other
deficiencies such as the failure to conduct semestral
physical count; render the prescribed Report of Physical
Count of Inventories within the prescribed period; and
maintain supplies ledger and stock cards.
 The reported balance of the PPE accounts aggregating
PhP522.41M was inaccurate and unreliable in view of
the: (a) unreconciled net difference of PhP7.37M
between the balances per accounting records and the
physical inventory; (b) unrecorded PPEs totaling
PhP17.97M; (c) continued recognition in the DOT books
of completed infrastructure projects costing PhP20.94M,
with the LGUs deriving benefits from the use thereof; (d)
inadequate documentation of adjustments/dropping of
various PPEs amounting to PhP27.35M and (e) non-
disposal of unserviceable properties in the amount of
PhP6.03M.
 Of the reported balance of Other Non-Current Assets
account aggregating PhP6.57M, the account balance of
PhP5.69M pertaining to the DOT-OSEC was inaccurate
and unreliable in view of the: (a) understatement of the
total PPE per Report on the Physical Count of Property
Plant and Equipment (RPCPPE) by PhP0.20M; (b)
balances per RPCPPE and books; (c) undocumented
dropping of donated properties and equipment valued at
PhP0.48M; and absence of schedules and subsidiary
ledgers to support the validity of the remaining balance
of Other Assets.
 Accounting errors on the classification of transactions
resulted in the net overstatement of assets, liabilities,
equity, income and expenses by PhP369.89M;
PhP386.08M; PhP62.18M; PhP78.40M; and
PhP78.37M, respectively.
 As disclosed in Note No. 5 under Prior Period
Adjustments and indicated in the Statement of Changes
in Net Assets/Equity, prior years’ errors and adjustments
aggregating PhP1,023.37M were corrected in the current
period using the Accumulated Surplus account instead of
restating the comparative amounts of the affected
accounts in the prior period in which the
transactions/errors occurred, which is not in accordance
with paragraph 47 of PPSAS 3.
National   The treatment of collections for fees, charges and other
Parks and receipts as liability instead of revenue of the National
347

Development Government is not consistent with PPSAS 1, which
Committee provides that gross inflows result in an increase in net
(NPDC) assets/equity shall be recognized as revenue.
Consequently, the reported service and business income
was understated by PhP7.62M and liabilities were
overstated by the same amount. Moreover, there is a
difference of PhP1.82M between the book and bank
balance which was not reconciled/accounted for by
Management.
 The Property, Plant and Equipment (PPE) account
balance of PhP409.55M as of December 31, 2015 was
inaccurate because of an unreconciled discrepancy of
PhP15.93M between the accounting records and
inventory report which cast doubt on the existence of the
reported PPE.
Intramuros  The incorrect and unreliable balance of the Inventory
Administratio accounts totaling PhP7.73M in view of the (a)
n (IA) unreconciled discrepancy of PhP6.19M between the
balances recorded in the books of the Accounting
and Property Sections; and (b) understatement of the
inventories by PhP0.15M due to accounting errors
and inventory reporting deficiency.
 The existence and accuracy of the assets recorded under
the Property, Plant and Equipment account with a year-
end balance of PhP317.82M were not ascertained due to
the failure of Management to create an Inventory
Committee to conduct physical count of all assets and to
reconcile the balances of the records of the Property and
Accounting Sections.
Energy   The balance of Accounts Payable as at year-end of
Regulatory PhP17.55M was overstated by PhP7.38M due to the
Commission recording of undelivered goods and services that are not
(ERC) yet rendered. Consequently, various expense accounts
were also overstated by the same amount.
Note: The following agencies were issued MLs instead of AARs due to non-submission of year-end
financial statements: Maritime Industry Authority (MIA) and Department of Energy (DOE).
Cluster 8 - Agriculture and Environment
Bureau of   Misclassification of accounts, PhP318.19M;
Fisheries and  Unrecorded receivables for Fishpond Lease Agreement
Aquatic (FLA) rentals and surcharges, PhP4.20M;
Resources  Overstatement/understatement of PPE accounts,
(BFAR) PhP22.05M;
 Overstatement of recorded payables, PhP29.06M;
 Unreliable balance of Cash in Bank accounts,
PhP59.44M;
 Unreconciled balance of Due from NGAs between per
books and results of confirmation, PhP19.13M;
 Unreliable Inventory accounts, PhP169.32M;
 Non-conduct/completion of the physical count of PPE
and preparation of the RPCPPE, PhP730.45M;
 Unreliable book balance of PPE accounts,
PhP3,651.77M;
 Non-maintenance of Subsidiary Ledgers of funds
received and Property, Plant and Equipment Ledger
Cards and Property Cards of PPEs, PhP10.48M;
348

 Dormant Receivables accounts not requested for write
off, PhP58.06M;
 Unrecorded tax remittance, PhP0.95M;
 Unreliable Accounts Payable, PhP30.09M;
 Other deficiencies in the presentation of Financial
Statements and incomplete disclosures in the Notes to
Financial Statements; PhP2,983.23M.
Department   Misstatement of cash accounts, PhP22.02M;
of  Erroneous recording/reclassification of receivables,
Environment PhP9.58M;
and Natural  Unrecorded final and executory disallowances,
Resources PhP11.73M;
(DENR)  Unrecorded inventory acquisitions, transfers and
issuances, PhP3.58M;
Non-reclassification/recognition of PPE accounts,
PhP195.66M;
 Errors and omissions in recording liabilities, PhP7.63M;
 Erroneous/ non-recording/ reclassification of
Accumulated Surplus/(Deficit) account,
PhP227.46M;
 Unreconciled difference between book and bank
balances, PhP53.55M;
 Undocumented/unidentified cash balances and
delayed/non- preparation of Bank Reconciliation
Statements, PhP56.09M;
 Unreconciled difference between book balances of
DENR and concerned NGAs/LGUs, PhP304.16M;
 Undocumented forwarded beginning balances of Due
from LGUs account, PhP10.95M;
 Unreconciled balances of Inventory accounts,
PhP27.52M;
 Unreconciled balances of PPE accounts per GL and
RPCPPE, PhP1,435.83M
Department   Use of inappropriate accounts, PhP367.02M;
of Agrarian  Unadjusted stale and unreleased checks and book
Reform reconciling items, PhP3.02M;
(DAR)  Double recording of replenishment, PhP1,547.50;
 Unrecorded fund transfer to the Procurement Service,
PhP23.16M;
 Balances of Inventories no longer existing, PhP3.80M;
 Unrecorded, double and misclassified recording of PPE,
PhP18.81M;
 Unreconciled book and bank balances, PhP13.41M;
 Unreconciled balances between the cash book and
accounting records, PhP0.16M;
 No physical count and other records for the existing
Supplies Inventory, PhP39.77M;
 Variance between the books and RPCPPE, PhP14.14M;
 Various adjusting entries not supported with pertinent
documents, PhP11.49M;
 Unreconciled GL and SL balances of Due from LGUs
account, PhP0.81M;
 Undocumented and dormant assets and liabilities,
PhP510.08M;
 Non-maintenance/non-preparation of Subsidiary
Ledgers, PhP353.86M;
349

 Increased DAR water and electricity expenses due to
non-billing/ collection of utility consumptions of the
business establishments within the compound,
PhP0.50M;
 Non-submission of Notes to Financial Statements as
required under PPSAS No. 1.
Environment   Use of inappropriate account, PhP 3.92M;
al  Unrecorded bank balance, disbursements and
Management reconciling
Bureau Items, PhP 5.65M;
(EMB)  Unrecorded/misclassified fund transfer/liquidation,
PhP1.60M;
 Unrecorded disallowance with NFD, PhP 1.18M;
 Unrecorded issuance of inventories, PhP5.06M;
 Non-reclassification/recognition of PPE accounts,
PhP32.10M;
 Misclassification in recording liabilities, PhP2.11M;
 Non-elimination of intra-office transactions accounts,
PhP12.11M;
 Unreconciled balances of PPE accounts, PhP 2.11M.
Mines and   Non-reclassification of completed projects to their
Geoscience appropriate PPE account, PhP22.19M;
Bureau  Non-Recognition of Impairment Loss on unserviceable
(MGB) PPE, PhP39.63M;
 Non-recording of Depreciation for ICT Equipment,
PhP0.14M;
 Accounts Payable recognized for unbilled/undelivered
goods and services, PhP0.59M;
 Non-recording of Disallowances with Notice of Finality
of Decision, PhP0.20M;
 Dormant/non-moving GL/SL account balances,
PhP0.54M;
 Unreconciled discrepancy between the balances per
books and physical count of MGB-CO, PhP1.08M;
 Unreconciled difference of Due from NGAs account,
PhP1.09M.
Agricultural   Non-restoration of unreleased check to the cash balance,
Credit Policy PhP2.45M
Council  Non-recognition of impairment loss on unserviceable
(ACPC) property, PhP2.26M
 Non-reconciliation of collection of loan payments from
various unidentified borrowers, PhP1.67M
 Loans receivable not recorded nor disclosed in the
Notes to FS, PhP4.50M;
 Non-conduct of physical count of Office Supplies
Inventory, PhP0.10M;
 Unreconciled balances of Office Supplies Inventory
between the accounting and property unit, PhP0.03M;
 Non-updating of PPELCs and PCs, PhP94.95M.
Philippine   Misclassifications of accounts, PhP0.17M;
Council for  Fund transfers directly recorded to the Subsidies-Others
Agriculture account instead of the Due from NGAs account,
and Fisheries PhP20.40M;
(PCAF)  Unserviceable PPE recorded as Other Assets intead of
the appropriate PPE account, PhP1.66M;
350

 Unreconciled discrepancies between the book and the
bank balance, PhP46.03M;
 Unreconciled balances between the accounting records
and the Report on the Physical Count of Inventory
(RPCI), PhP0.90M;
 Unreconciled balances between the accounting records
and the Report on the Physical Count of Property, Plant
and Equipment (RPCPPE), PhP423.26M;
 Due to NGAs account not supported with Subsidiary
Ledgers, PhP320.48M;
 Dormant accounts not requested to be written-off,
PhP2,608.29M;
 Other deficiencies in the presentation of Financial
Statements and incomplete disclosures in the Notes to
Financial Statements, PhP406.16M.
National   Unadjusted reconciling items in the books, PhP2.89M;
Meat  Non-restoration of unreleased checks to the cash
Inspection balance, PhP0.72M;
Service  Unrecorded office supplies issued, PhP0.10M;
(NMIS)  Misclassification, non-recording of infrastructure
projects and non-provision of additional allowance for
depreciation, PhP519.55M;
 Misclassification of liabilities, PhP1.24M;
 Non-conversion of NG books accounts and use of
inappropriate account, PhP10.28M;
 Unreconciled balances between the book and bank,
PhP0.27M
 Non-conduct of physical count and non-submission/
maintenance of reports/records, PhP519.55M;
 Misclassification of expense accounts, PhP9.25M.
National   Misclassification of accounts, PhP35.00M;
Mapping and  Overstated balances of inventory accounts due to non-
Resource submission of RSMIs/RISs, PhP204.54M;
Information  Unreconciled balances of Due from NGAs account
Authority between the SL balances and confirmation replies,
(NAMRIA) PhP0.51M;
 Unreconciled balances between the RPCPPE and
accounting records, PhP1,354.91M.
National   Misclassification of fund transfers to government
Water corporations to Due from NGAs account instead of Due
Resources from GOCCs account, PhP 0.39M;
Board  Non-recording of donated groundwater monitoring
(NWRB) wells to schools and LGUs, PhP4.28M;
 Discrepancy between the accounting records and
PRCPPE, PhP1.76M.
Pasig River   Inclusion in the account balance of Other Machinery
Rehabilitatio and Equipment are donated equipment to other agencies
n and disposed equipment thru sale, PhP3.65M;
Commission  Cost of Pasig River Greening and Phytoremediation
(PRRC) recorded as Other Infrastructure instead of Expenses,
PhP9.99M;
 Accounts Payable already paid by foreign lending
institutions remained unrecorded, PhP6,662.76M;
 Unreconciled discrepancy between the SL balances and
Confirmation replies of accounts Due from NGAs and
Due from GOCCs, PhP1.53M;
351

 Unreconciled balances between the RPCPPE and
accounting records, PhP563.87M;
 Negative balances of Advances to Contractors account,
PhP8.58M.
Board of   Unrecorded liquidation in the Due fromGovernment
Investments Owned and Controlled Corporation (GOCC) account,
(BOI) PhP5.59M;
 Discrepancy between accounting records and the Report
on the Physical Count of Inventories (RCPI),
PhP9.54M;
 Discrepancy between accounting records and the Report
on the Physical Count of Property, Plant and Equipment
(RPCPPE), PhP26.67M;
 Non-assessment of PPE for any indication of
impairment,
PhP3.57M;
 Non-inclusion in the Notes to Financial Statements the
Reconciliation of Net Cash Flows from Operating
Activities to Surplus/(Deficit), PhP9.54M.
Philippine   The non-inclusion in the Notes to Financial Statements
Trade of the Reconciliation of Net Cash Flows from Operating
Training Activities to Surplus/(Deficit).
Center
(PTTC)
Intellectual 
Property
Office of the
Philippines
(IPOPHL)
Design   Non-recognition of impairment loss for unserviceable
Center of the PPEs not yet disposed, PhP3.32M;
Philippines  Inclusion of PPE which the Property Officer failed to
(DCP) locate, PhP0.10M.
Note: The following agencies were issued MLs instead of AARs: Philippine Fiber Industry Development
Authority (PHILFIDA) and Construction Industry Authority of the Philippines (CIAP). Untransmitted
CAARs of DA and DTI.
State Colleges and Universities (SUCs)/ Stand-Alone Agencies
Cordillera Administrative Region (CAR)
Abra State   Cash on Hand, Inventory, and Advances accounts were
Institute of with credit balances totalling PhP1.80 million due to
Sciences and errors in accounting, non-maintenance of subsidiary
Technology ledgers, and lack of physical count of inventories as of
(ASIST) year-end;
 Depreciation for the current year and the last three
preceding years was not provided for Land Improvements,
and Buildings and Other Structures totalling PhP59.39
million, and the amounts of depreciation provided for the
other property, plant, and equipment of the Institute for the
same years were not realistic; and
 The composition of the Other Assets account amounting
to PhP3.41 million has yet to be identified by the
Accounting Office despite the lapse of three years since
the Institute first disclosed in the Notes to Financial
Statements that the account needed to be identified and
reviewed for adjustments.
352

Apayao State   The validity of the PPE account costing PhP87.66 million
College was not ascertained due to the non-reconciliation of the
(ASC) Report on the Physical Count of PPE (RPCPPE) with the
PPE ledger cards and the general ledger accounts.
Benguet State   Issued inventory items amounting to PhP34.3 million and
University disposed property, plant, and equipment with carrying
(BSU) amount of PhP6.4 million remained in the books;
 Scholarship allotments totaling PhP9.8 million were
transferred from the General Fund to the Trust Fund
current account and recorded as outright expenditures;
and
 Income from BSU-CVM Animal Hospital in the amount
of PhP330,005.00 was not collected and not recognized in
the books as a receivable.
Ifugao State   Buildings and equipment under the control of the
University University costing PhP31.11 million were not
(IfSU) recorded as PPE; and
 The existence and condition of the property and equipment
of the University with total carrying amount of PhP38.62
million were not validated due to absence of physical
inventory taking.
Kalinga-   The residual value of PPE with total carrying amount of
Apayao State PhP124.29 million was computed at ten percent of cost,
College and depreciation started on the second month after
(KASC) purchase;
 Fully paid infrastructure projects totaling PhP53.42
million remained in the Construction in Progress
account, and loan
amortization and equipment amounting to PhP0.578
million were included in the account;
 Expenses amounting to PhP1.90 million incurred in the
prior year and paid in CY 2015 were recognized as current
year’s expenses; and
The disclosure requirements in the financial statements
under the Philippine Public Sector Accounting Standards
(PPSAS) were not fully observed.
Mountain   The transfer of PhP11.161 million from the Modified
Province Disbursement System account to a current account and the
State utilization thereof were incorrectly recorded in the books
Polytechnic of accounts.
College
(MPSPC)
Region I - Ilocos Region
Don Mariano   The State University continue to transfer cash support to
Marcos the different Campuses and Operating Units through
Memorial funding checks for the NCAs received in the total amount
State of PhP755.94M, which is not in conformity with the
University Modified Disbursement System (MDS) prescribed by
(DMMMSU) DBM National Budget Circular (NBC) No. 488 and COA
Government Accounting and FMIS (GAFMIS) Circular
Letter (CL) No. 2003-004, defeating the Government’s
objective to attain adequate cash management control and
cost reduction for the Government as a whole; and
 Unutilized NCAs of the different Campuses and Operating
Units of the University were not reverted as required under
DBM Circular Letter No. 2013-12, DBM NBC No. 556,
Section 186 of Government Accounting and Auditing
353

Manual (GAAM) Volume I, resulting in the accumulation
of huge cash balances in their respective Cash in Bank
LCCA accounts in the total amount of PhP106.62M,
which amount should have been automatically transferred
to the account of the National Treasury.
Pangasinan   The accuracy and existence of the consolidated book value
State of the Property, Plant and Equipment accounts with a total
University balance of PhP1,641.71M could not be ascertained due to
(PSU) the absence of complete and updated records and the non-
conduct of actual physical inventory in two (2) PSU
campuses, causing the non-reconciliation between the
inventory reports and accounting records;
 Cash advances granted in previous years amounting to
PhP0.32M, which remained unliquidated at year-end,
resulted to unrecorded expenses;
 The outstanding balance of other receivables totaling
PhP10.32M that included claims without complete
documentation which rendered the reported balance
doubtful; and
 The presence of undocumented Other Assets-Long-Term
Investment amounting PhP3.75M, which had remained
long outstanding in the books, the accuracy and validity of
which could not be ascertained.
North Luzon 
Philippine
State College
(NLPSC)
University of   The following deficiencies precluded the team to conduct
Northern other audit procedures to establish the reliability and
Philippines legality of ownership of PPE accounts:
(UNP)-
Vigan, Ilocos 1. Absence of complete and updated accounting and
Sur property records for reconciliation purposes; and
Ilocos Sur  2. Lack of complete and updated records of land

Polytechnic ownership.
State
Colleges
(ISPSC)
Mariano 
Marcos State
University
(MMSU)
Region II - Cagayan Valley Region

Batanes State  Existence, condition and accuracy of the PPE and
College Inventory accounts stated at PhP35.96M and PhP14.13M,
(BSC) respectively, could not be ascertained due to the failure of
management to submit the required Inventory Reports
and the absence of property cards and subsidiary ledgers
for each type of property;
 The validity and accuracy of the Cash-in-Bank-LCCA in
the amount of PhP7.39M could not be ascertained; and
 Failure to withhold taxes on Performance and
Enhancement Incentive (PEI) and Performance Based
Bonus (PBB).
354

Cagayan   Unreconciled differences between book and bank balances
State of the CIB-LCCA of PhP267.38M;
University  Non-liquidation of cash advances totaling PhP3.73M;
(CSU)  Doubtful existence, validity and correctness of the PPE
accounts, except Construction in Progress with a net book
value of PhP685.54M due to the non-completion of annual
physical inventory conducted in 2015; and
 Reciprocal accounts consisting of PhP278.73M for
Financial Assistance to NGAs and PhP281.07M for
Subsidy income from Other NGAs showed a difference of
PhP2.34M.
Isabela State   Cash Advances and other expenditures amounting to
University PhP1.38M and PhP1.96M respectively were erroneously
(ISU) recorded thus, resulting in the misstatement of the
accounts;
 Paid vouchers under Fund 101 and Fund 164 with a total
amount of PhP6.09 million were not submitted to the
Audit Team for audit in violation of Section 7.2.1.a of
COA Circular No. 2009-006 dated September 15, 2009;
and
 Balances in the CIB-LCCA maintained as operating
accounts for Fund 101 of ISU external campuses
amounting to PhP13.85M as of December 31, 2015
remained unreverted to the National Treasury.
Nueva   Unreliability of the existence and valuation of the PPE
Vizcaya State accounts totaling PhP345.32M as of December 31, 2015
University because of the
(NVSU)  unreconciled balances between the accounting and
property records amounting to PhP285.93M; and
 Non-liquidation of the cash advances totaling PhP1.13M.
Note: The Quirino State University (QSU) has not submitted its year-end financial reports as of 6/30/2016.
Region III – Central Luzon
Aurora State   The receivables and income from uncollected tuition fees
College of amounting to at least PhP7.20M as of December 31, 2015
Technology were not recorded in the books since the College adopted
the cash basis of accounting instead of accrual basis which
resulted in the understatement of said account balances
both by that amount as of year-end. Moreover, ASCOT
did not provide allowance for doubtful accounts; hence,
there was no proper valuation of receivables as of CY
2015.
Bataan   The accuracy of reported balances of Property, Plant and
Peninsula Equipment (PPE) accounts of the University at year-end
State totaling PhP485.34M was unreliable due to (i) non-
University reconciliation of property and accounting records; (ii)
non-appraisal/revaluation of properties with no costs; and
(iii) misclassification of PPE accounts in the total amount
of PhP35.05M;
 The consolidated liabilities were understated and
consolidated net assets/equity were overstated both by
PhP10.43M due to erroneous recognition of Scholarship
Expenses as Trust Liabilities-Scholarship Fund; and
 The accuracy of account Due to National Government
Agencies (NGAs) of PhP34.70M at year-end was
unreliable in the absence of reliable subsidiary records and
due to erroneous recording of receipt of funds.
355

Bulacan State   The balances of Receivables and Other Payables accounts
University in the total amounts of PhP195.76M and PhP761.65M,
respectively, as of December 31, 2015 could not be
substantiated in the absence of subsidiary records and
detailed schedules for the said accounts to prove and
establish their accuracy and validity.
Bulacan 
Agricultural
State College
Central Luzon   The Accounts Receivables was unreliable due to
State unaccounted variance of PhP0.72M between the records
University of the Accounting Office and the University Business
Affairs Program and unbooked inter-agency transfers
amounting to PhP0.42M. Moreover, the Inventories
account was understated by at least PhP6.73M due to the
non-adoption of the perpetual inventory method of
accounting of inventories.
Nueva Ecija   Lack of documentary basis resulted in non-recording of
University of on-line collections amounting to PhP0.79M and
Science and understating the balances of Cash-in-Bank, Trust
Technology Liability and Income accounts all by that amount as of
year-end.
 Failure of both the Livestock Custodian and the
University Accountant to maintain Livestock Card and
Livestock Ledger Card, respectively, and to reconcile
their records on a quarterly basis overstated the balances
of Biological Assets and Investment Equity accounts
both by PhP0.43M.
 The reported balances of Property, Plant and Equipment
(PPE) accounts as of year-end totaling PhP551.50M were
unreliable due to (a) non-recording of completed
infrastructure projects costing PhP25.01M; (b) non-
reporting to the Accountant of the adjustments made by
the Property Custodian amounting to PhP23.84M; and (c)
misclassification of PPE accounts amounting to
PhP2.77M in the records of the Property Unit.
DonHonorio 
Ventura
Technological
State
University
Pampanga 
State
Agricultural
University
(PSAU)
Tarlac State 
University
(TSU)
Tarlac College   The depreciation expenses amounting to PhP4.54M were
of Agriculture not recognized as of CY 2015 thereby overstating the net
(TCA) book value of Property Plant and Equipment (PPE) and
the balance of Accumulated Surplus accounts by
PhP4.54M and PhP2.65M, respectively, as of CY 2015
while understating the total of account Depreciation
Expenses by PhP1.89M for CY 2015.
356

Philippine   The auditor rendered a qualified opinion on the fairness
Merchant of presentation of the financial statements of the
Marine Academy for the year ended December 31, 2015 owing
Academy to (a) overstatement of inventory balance due to
(PMMA) unrecognized issuances of PhP18.41M; (b)
understatement of PPE accounts due to non-recognition
of donated property in the books valued at PhP3.40M;
and (c) overstatement of PPE accounts due to (i)
inclusion of sold assets of PhP1.94M; and (ii) non-
recognition of depreciation expenses estimated at
PhP57.00M.
Ramon   There was an understatement of Property Plant and
Magsaysay Equipment (PPE) accounts due to the unrecorded
Technological donated assets of at least PhP37.97M as of year-end.
University
Government   The correctness of Finished Goods Inventory of PhP82.9

Arsenal, DND million as of December 31, 2015 was unreliable since the
total quarterly production and issuances were not
recognized in the books of accounts due to non-
submission of a) Status Production Reports by the
Planning and Logistic Division; b) report on the
issuances of inventory to different agencies under the
DND; and c) the basis of computation of the cost per unit
per line item of ammunitions produced.
 The accuracy, existence and completeness of the
recorded balances of PPE totaling PhP852.7 million as of
December 31, 2015 were uncertain due to a)
unreconciled discrepancy of PhP119 million between the
accounting records and the Report on the Physical Count
of PPE; and b) non-maintenance of Property Cards by the
Property and Supply Division.
Philippine  Significant errors were noted in the audit of accounts, among
Carabao which are:
Center  Failure to derecognize the cost of dead buffaloes which
resulted in the overstatement of Biological Assets and
Accumulated Surplus/(Deficits) both by PhP97.82M;
and
 Misclassification of unserviceable property, plant and
equipment (PPE) to Other Non-current Assets which
resulted in the misstatement of said accounts both by
PhP2.25M.
Phil. Center 
for Postharvest
Dev’t. and
Mechanization
Region IV A - CALABARZON
Southern   The reliability and accuracy of the accounts Investment
Luzon State Property of PhP31.13M, PPE of PhP497.56M with a
University total net book value of PhP528.70, representing 54.54%
(SLSU), of the total assets of the University, Receivables-
Quezon Disallowances/Charges of PhP3.14M, and Due to NGAs
Province and Other Payables of PhP7.18M could not be
ascertained due to the non-provision of impairment loss
and the non-recognition of donated properties in the
books of accounts as of December 31, 2015;
357

 Non-reconciliation of the Receivables-
Disallowances/Charges balance with the SASDC issued
by the Auditor; and the unaccounted balance and absence
of valid claims of the said liability accounts for several
years now, respectively.
University of   Existence of accounting errors and deficiencies as stated
Rizal System in Observations and Recommendations of the Annual
(URS), Audit Report; and
Morong  The recorded book balances of PPE as of December 31,
2015 amounting to PhP129.93M were unreliable due to
the unrecorded buildings and structures in URS Morong,
Tanay, Pililia, Taytay and Antipolo campuses, parcels of
land where the seven URS campuses are located with
undetermined costs, area and ownership, exposing these
properties to the risk of third party claims, and donated
equipment used by the students in URS Morong,
Angono, Pililia and Tanay campuses.
Batangas   Unrecorded receivables of PhP136.14M;
State  Unreconciled net discrepancy totaling PhP32.69M
University exists between the RPCPPE and book balance of PPE
(Bat State of Batangas State University;
U)- Main  Cash advances of PhP8.80M granted to officers,
employees and regular Disbursing Officer remained
unliquidated at year- end;
 Unrecorded collection and deposits in the total
amount of PhP0.60M and stale checks totaling
PhP0.02M; and
 Some accounts of the University posted abnormal
balances.
Laguna State   PPE and incomplete supporting documents for some
Polytechnic disbursements rendering the propriety and reliability of
University transactions doubtful.
(LSPU)
Forest 
Products
Research and
Development
Institute
(FPRDI)
Note: Cavite State University (CvSU), Philippine Council for Agriculture, Aquatic and Natural Resources
Research and Development (PCAARRD), and Philippine High School for the Arts (PHSA) were issued MLs
instead of AARs due to non-submission of Financial Reports by Management.
Region IV B - MIMAROPA
Occidental   Validity, existence and correctness of the year-end
Mindoro balances of the Inventories and Property, Plant and
State College Equipment (PPE) accounts of PhP4.31M and
(OMSC) PhP193.35M, respectively, could not be ascertained due
to the absence of the required RPCI and/or unreconciled
balances per books and Inventory Report of PhP0.58M.
The PPE was also overstated by PhP5.60M as
unserviceable properties were still included in the
balance at year-end.
 Failure of the Accounting Unit to maintain Subsidiary
Ledgers for the Accounts Receivable of the Main
Campus, Supplies Ledger Cards (SLC) and Property,
Plant and Equipment Ledger Cards (PPELC) rendered
the year-end balances of the Accounts Receivable,
358

Inventories and PPE accounts amounting to PhP13.35M,
PhP4.31M and PhP193.35M, respectively, doubtful.
Mindoro   The validity, existence and correctness of the balances of
State College the PPE accounts valued in the books as of December 31,
of 2015 at a net amount of PhP190.20M was doubtful due
Agriculture to the failure of Management to conduct complete
and physical count and to reconcile accounting and property
Technology records.
(MSCAT)  Inventory and Supplies Expense accounts unreliable and
not fairly stated at year-end since perpetual inventory was
not properly observed contrary to Section 43, MNGAS,
Volume I.
Marinduque   Doubtful validity, existence and correctness of the
State College balances of PPE and Inventory accounts valued in the
(MSC) books at PhP187.94M and PhP6.19M with noted
discrepancies of PhP68.04M and PhP1.75M,
respectively.
Romblon   Validity, existence and correctness of the PPE and
State Inventory accounts valued in the books at a net amount
University of PhP196.48M and PhP40.71M, respectively, could not
(RSU) be ascertained due to the consistent failure of the
University to conduct physical count on all of its PPE and
Inventory items and non-reconciliation of the difference
as compared with the Inventory Report amounting to
PhP128.48M.
 Dormant balances in the Construction in Progress
account of PhP1.51M and the non-provision of
depreciation allowance for depreciable assets of
PhP135.22M, thereby affected the reliability of the
balances presented in the financial statements
 The accuracy of the balance of the Cash in Bank
amounting to PhP60.78M could not be validated due to
the inability of the Accounting Office to update the
preparation of Bank Reconciliation Statements and
validity of the receivable accounts of PhP0.50M could
not be ascertained due to lack of supporting documents
and records and remain outstanding in the books for
several years.
Palawan   Validity, existence and correctness of the PPE accounts
State valued in the books at PhP723.06M could not be
University ascertained due to various deficiencies noted between
(PSU) accounting records and the Report on the Physical Count
of Property, Plant and Equipment (RPCPPE), in violation
of the prescribed policies and procedures in the
recording, reporting and maintenance of records of the
PPE accounts.
Western   Validity and existence of the PPE accounts valued in the
Philippine books at PhP446.77M could not be ascertained in view
University of the unreconciled difference of PhP59.08M between
(WPU) the accounting and the property records and the non-
reclassification of the costs of unserviceable properties of
PhP10.94M from PPE to Other Assets, thereby,
overstating the PPE accounts by the same amount.
Palawan   Validity, existence and correctness of the PPE accounts
Council for valued in the books at PhP95.56M could not be
Sustainable ascertained due to various deficiencies noted contrary to
Development the provisions of the Government Accounting and
359

Staff Auditing Manual (GAAM), Volume I and the Manual on
(PCSDS) the New Government Accounting System (MNGAS),
which resulted in the overstatement of the PPE balance
by PhP24.17M.
Region V - BICOL REGION
Bicol   The amount of PhP24.76M in Cash in Bank, LCCA
University account remains unreconciled due to the failure of
(BU) Management to prepare and submit complete bank
reconciliation statements for eight consecutive years (CY
2008-2015);
 Advances to Officers and Employees is overstated by
PhP0.54M, due to the failure of Management to record in
the books the liquidation reports submitted by the
Accountable Officers;
 Cash Collecting Officers, Advances to Officers and
Employees and Due from Officers and Employees are
understated by PhP0.02M, PhP0.17M and PhP0.02M,
respectively, due to erroneous recording;
 Inventory account balance of PhP116.23M is
misstated/overstated due to non- recording of the
issuance of supplies and materials;
The balance of Property, Plant and Equipment as of
December 31, 2015 of PhP1,049.10M is unreliable and
inaccurate due to the: (a) non-adjustment of the residual
value of each PPE account in the books from 10% to 5%
based on PPSAS 17 resulting to a total of PhP45.87M
overstatement in the carrying amount of fully depreciated
PPE assets; (b) negative book values of some PPEs
reflected in the PPE Schedule totaling
PhP25.72M; (c) the total net book value of some
PPEs amounting to PhP150.90M represent PPEs with
unreconciled balances and insufficient information on
their existence, which remained undepreciated as of
year-end; and (d) failure of Management to provide an
allowance for impairment in accordance with PPSAS
21/PPSAS 26;
 Due to Officers and Employees account is understated by
PhP0.62M due to erroneous negative balances/entries;
 Undocumented payables of PhP0.83M aged more than
three years which were recognized as Accounts Payable
and which were not reverted to the Accumulated Surplus
account;
 Negative balances totaling PhP1.05M in the subsidiary
accounts for “Due to GSIS” account of the corresponding
responsibility centers which may be construed as over-
remittance, despite the unremitted amount of PhP3.25M;
and
Net overstatement in the Due to NGAs and Due to LGUs
accounts for a total amount of PhP16.26M due to the
following: (i) negative balances amounting to
PhP6.23M; (ii) idle and dormant accounts equivalent to
PhP19.95M; and (iii) an overstatement of PhP2.54M due
to posting error.
360

Bicol State   The variance between the book and bank balances
College of amounting to PhP4.82M was not reconciled due to the
Applied failure of the Accounting Office to prepare the Bank
Science and Reconciliation Statement (BRS), hence, the
Technology accuracy/correctness of the year-end balance of the Cash
(BISCAST) in Bank-Local Currency, Current Account totaling
PhP79.99M was not ascertained.
 The book balance of various inventory accounts was
overstated by PhP2.29M, due to non-recording of
inventories issued to end-users.
Central Bicol   The University Main Campus and Sipocot Campus failed
State to submit a total of 364 disbursement vouchers and the
University of supporting documents amounting to PhP9.92M and
Agriculture PhP7.81M, respectively, or an aggregate amount
(CBSUA) PhP17.73M, thus, the propriety, validity, legality and
occurrence of transactions could not be ascertained;
 The Accountant of CBSUA-Main Campus failed to
prepare the monthly BRS for CY 2015, thus the
correctness of Cash in Bank totaling PhP145.43M was
doubtful;
 The Inventory accounts of CBSUA-Main Campus and
Calabanga Campus totaling PhP45.10M and
PhP19.31M, respectively, were unreliable due to the
absence of physical inventory, unreconciled accounting
and supply records and unrecorded issuances of supplies
and materials to end-users from CY 2012 to CY 2015 that
resulted in the overstatement of the said accounts and
understatement of its corresponding expense accounts;
 The incomplete inventory taking and absence of
reconciliation between the records of the Accounting
Section and the Property Section of the Main campus
resulted in the doubtful valuation and existence of PPE
totaling PhP362.29M (net of accumulated depreciation)
as of December 31, 2015; and
 Management failed to strictly enforce existing rules and
regulations on the grant, utilization and liquidation of
cash advances which resulted in the accumulation of
unliquidated cash advances amounting to PhP8.67M as
of December 31, 2015, thus, overstating the asset account
and understating the related expense account.
Camarines   The accuracy of the Income Fund, Cash in Bank-Local
Norte State Currency Current Account amounting to PhP51.65M
College was doubtful due to failure of the Chief Accountant to
(CNSC) reconcile the discrepancy of PhP23.08M between the
book balance and the bank balance amounting to
PhP74.73M;
 The correctness and completeness of the book balance of
the various PPE accounts aggregating to PhP2.60M were
doubtful due to the failure of the Accountant and the
Property Officer to reconcile the discrepancy of
PhP1.92M between the book balance and result of
physical inventory count; and
 The validity and correctness of the Land account
amounting to PhP6.96M could not be fully ascertained
due to inadequate records/documents supporting the
College’s legal ownership.
361

Camarines   A total of 147 disbursement vouchers for disbursements
Sur aggregating to PhP13.16M, which is 8% of the School’s
Polytechnic total disbursements for the year, were not submitted to
College the Commission on Audit for audit, hence, the regularity
(CSPC) and propriety of the disbursements as well as the
correctness of the corresponding accounts were not
ascertained.
Catanduanes   The correctness and reliability of the Inventories Account
State book balance amounting to PhP2.86M2 are doubtful due
University to unreconciled discrepancy between the books and the
(CSU) result of the physical count of the Main Campus
amounting to PhP0.63M, and the absence of Report on
the Physical count of Inventories of the Panganiban
Campus of its inventories amounting to PhP0.07M; and
 The book balances of various property, plant and
equipment of the Main Campus aggregating to
PhP278.84M were not reconciled with the result of the
physical inventory count amounting to PhP267.74M,
showing an unreconciled difference of PhP18.48M, thus
the correctness of the year-end balance of PPE Account
is doubtful.
Don Emilio   The validity, regularity and legality of the transactions
B. Espinosa pertaining to the paid Disbursement Vouchers
Memorial aggregating to PhP11.61M, which is 8% of total
State College disbursements, could not be ascertained due to the non-
of submission of the same during the audit period;
Agriculture  The amount of PhP6.65M or 12% of the Cash in Bank-
and LCCA remained not reconciled between the book and
Technology bank balances; and
(DEBESMS  The Inventory accounts disclosed a difference of
CAT) PhP0.37M between the physical count and Accounting
records due to the incomplete records pertaining to
inventory.
Partido State   The correctness of the balance of the Property, Plant and
University Equipment account of PhP413,888,452.94 cannot be
(PSU) ascertained due to the unreconciled difference of
PhP36,826,995.29 between the records of the
Accounting and Property Unit.
Sorsogon   The validity, regularity and legality of disbursements
State College amounting to PhP34,419,174.81 which is 13.49% of the
(SSC) total disbursement during the year, could not be
ascertained due to non-submission of the disbursement
vouchers pertaining thereto.
Region VI – WESTERN VISAYAS REGION
Aklan State   The existence and accuracy of Property, Plant and
University Equipment (PPE) accounts as of December 31, 2015
(ASU) amounting to PhP210.95M are doubtful due to the
unreconciled balances between the Inventory Reports with
the amount per book, purchased PPE directly expensed,
misclassification of the PPE accounts, and the
understatement of the depreciation expense affecting the
reliability and fairness of its presentation in the Financial
 Statements.
University of   Audit Observations on the existence and accuracy of PPE
Antique (UA) accounts as of December 31, 2015 amounting to
PhP396.89M are doubtful due to non-conduct of physical
362

count of PPE and non-maintenance of PPE Ledger Cards
in the Accounting Office.
Capiz State   The inability/ failure of the University to book up the
University amount of PhP1.12M representing funds received for
(CPSU) SAFE Loan Program and to record the corresponding
amount granted to student-beneficiaries as loans
receivable resulted in the understatement of the receivable
account in the financial statement as of year-end. This was
aggravated by lack of documentation of loan releases,
thus, validity and accuracy of the amount granted was not
ascertained, further casting doubt on the reliability of year
and loan receivable balances. This was aggravated by lack
of documentation of loan releases, thus, validity and
accuracy of the amount granted was not ascertained,
further casting doubt on the reliability of year and loan
receivable balances.
 The accuracy and existence of year-end balance of
Inventory accounts totaling PhP2.07M could not be
ascertained due to deficiencies in monitoring and
recording of inventory transactions contrary to the
pertinent provisions on Manual on National Government
 Accounting System (MNGAS).
West Visayas   Failure to conduct a complete inventory of all University’s
State PPE excluding land totaling PhP1,465.01M per December
University 31, 2015 Trial Balance, as well as failure to undertake the
(WVSU) required reconciliation between the accounting vis-a-vis
the Supply Officer’s records contrary to Section 66 of the
Manual on the New Government Accounting System,
Volume II rendered the existence, accuracy and valuation
of the assets doubtful.
 The accuracy and existence of the balances of the
Inventory accounts totaling PhP10.32M of the Main,
Pototan, Lambunao, Calinog and Janiuay Campuses is
doubtful, due to Management's failure to complete the
conduct of physical inventory and reconcile the balances
of the actual assets with the recorded accountabilities,
contrary to Sections 12 and 65 of the Manual on the New
Government Accounting System (MNGAS), Volume II.
 The accuracy and existence of the University Medical
Center’s Inventory accounts totaling PhP24.70M could
not be ascertained due to non-reconciliation of property
records with the accounting records and non-updating of
the supplies ledger card by the Accounting Unit contrary
to Section 43 of the Manual on New Government
Accounting System (MNGAS), Volumes I, thus, casting
doubt on the reliability of the Inventory Account balances
at year-end.
 Lapses in the grant of credit, billing and collection system,
contrary to the Standard Operating Procedure of the
Medical Center resulted to the accumulation of long
outstanding receivables amounting to PhP20.20M ranging
from five (5) to over 15 years as of year-end. Further,
allowance for doubtful accounts was not provided/set up
as required under Section 66 of the Manual on the New
Government Accounting System, Volume I.
 The existence and reliability of Payables – Due to NGAs
 totaling to PhP5.95M could not be determined due to the
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absence of information on the identities of the payees
and/or a schedule supporting the same, contrary to Section
111 of PD 1445, thus accuracy of the recorded amount in
the financial statements could not be ascertained.
 The validity and accuracy of various PPE accounts of the
WVSU – Pototan, Calinog, Janiuay and CAF Campuses
totaling PhP44.70M, cannot be ascertained due to the
Accountants’ failure to provide depreciation since its
acquisition, which resulted in the overstatement of the
asset accounts and understatement of expense accounts.
Iloilo Science   The existence, valuation and completeness of PPE could
and not be substantiated due to unreconciled difference of
Technology PhP79.90M between accounting and property records for
University PPE, contrary to existing rules and regulations.
(ISAT-U)  Failure to verify/validate long outstanding book and bank
reconciling items, amounting to PhP0.97M and
PhP0.17M, respectively, in the Bank Reconciliation
Statements (BRS) of ISAT U-Main Campus and take up
the necessary adjustments in the books.
 Failure to reconcile the Accountable Officer’s and
Accountant’s independent Cash-in-bank records every
quarter and failure to prepare the Bank Reconciliation
Statements in the prescribed form/method of the Miag-ao
Campus, resulted to non-detection of discrepancies in the
books amounting to PhP0.63M and subsequent
 application of corrective measures.
Guimaras   The existence, valuation and completeness of some PPE
State College of the College amounting to PhP42.72M as of year-end
(GSC) could not be ascertained due to failure to conduct annual
physical count and prepare the corresponding inventory
reports.
 The regularity, validity, completeness and accuracy of the
recorded transactions amounting to PhP36.36M could not
be timely ascertained/assessed due to delayed and non-
submission of the financial reports, disbursement
vouchers and supporting documents to the Office of the
 Auditor.
Iloilo State   Unutilized Notices of Cash Allocation (NCAs) of all
College of ISCOF External Campuses for CY 2015 and Prior Years
Fisheries were not reverted to the account of the National Treasury
(ISCOF) contrary to DBM Circular Letter No. 2013-12 and COA
Circular No. 90-326 dated February 22, 1990, thereby
resulted in the overstatement of Cash in Bank, Local
Currency Current Account and Accumulated
Surplus/(Deficit) Accounts by PhP6.28M.
 The balances of Cash-in-Bank, LCCA account of ISCOF
Main (Tiwi) Campus amounting to PhP13.83M could not
be verified due to substantial delay in the preparation and
submission of the Monthly Bank Reconciliation Statement
contrary to Section 74 of P.D. No. 1445.
 The validity, accuracy and completeness of the reported
balances of Receivable accounts amounting to PhP 2.16M
could not be established due to the absence of pertinent
schedules and/or subsidiary ledgers supporting the same,
contrary to Section 111(1) of P.D. 1445 and Section 12 of
the Manual on the New Government Accounting System
 (NGAS), Volume II.
364

 Failure of concerned Agency Officials to complete the
conduct of inventory of all of the college’s School
Buildings amounting to PhP30.24M and Equipment,
Furniture and Fixtures totaling PhP99.71M per December
31, 2015 Trial Balance, as well as failure to undertake the
required reconciliation vis-a-vis the Supply Officer’s
records, contrary to Section 66 of the Manual on the New
Government Accounting System, Volume II, and Section
490 of the Government Accounting and Auditing Manual
(GAAM), Volume I, rendered doubtful the existence,
accuracy and valuation of the assets.
 Non-submission of Disbursement Vouchers by ISCOF
Main (Tiwi) Campus totaling PhP119.83M and their
corresponding supporting documents resulted in the
difficulty of ascertaining the legality and validity of the
transactions contrary to COA Circular No. 95-006 dated
May 18, 1995.
Northern   Non-preparation of the CY 2015 Report on the Physical
Iloilo Count of Property, Plant and Equipment as of December
Polytechnic 31, 2015 of the Main, Ajuy, Batad, and Concepcion
State College Campuses for properties amounting to PhP233.45M, the
(NIPSC) unreconciled balances between the Accounting and
Property records of PPE account of the Barotac Viejo,
Lemery and Sara Campuses totaling PhP13.79M, and
noted deficiencies in the control mechanisms, rendered
doubtful the existence, accuracy and completeness of PPE
accounts contrary to Sections 58 and 79 of P.D. No. 1445.
 Other Payables in the amount of PhP3.20M which has
been outstanding for more than two years and against
which no actual claim, administrative or judicial, has been
filed or which is not covered by perfected contracts on
record was not reverted to the Accumulated
Surplus/Deficit of the general fund contrary to Section 98
of P.D. No. 1445, thus, validity, legality, and existence of
the balance presented in the year-end Financial
 Statements
remained doubtful.
 The propriety and validity of expenses for honoraria of
NSTP, Graduate Studies, Board Secretary, Chairman of
Accreditation, members of the Board of Trustees,
members of the Search Committee for Private Sector
Representatives, and Special Class totaling PhP1.34M
could not be ascertained because of insufficient supporting
documents contrary to Section 4(6) of P.D. No 1445 and
Section 5.7 of COA Circular No. 2012-001.
Region VII – CENTRAL VISAYAS REGION
365

Cebu Normal   The correctness and reliability of the balances of eleven
University (11) accounts of Property, Plant and Equipment (PPE)
(CNU) totaling PhP381.80M as of December 31, 2015 could not
be ascertained due to non-reconciliation of the records
between the Accounting and Supply Office and failure to
maintain PPE Ledger Cards.
 The correctness and reliability of Other Payables
amounting to PhP47.76M as of December 31, 2015 could
not be ascertained due to non-maintenance of subsidiary
ledgers which is not in conformity with Section 12 of the
Manual on the New Government Accounting System for
National Government Agencies, Volume II.
 The University failed to use the accrual method of
accounting in recognizing income on school fees from
various scholarship grants thereby understating the
Account Receivable and School Fees accounts in the
Special Trust Fund by PhP6.19M.
 Failure to take up in the Special Trust Fund books the
deposit of PhP1.90M pertaining to remittance of tuition
fees for scholarship grants resulted to understatement of
the Cash in Bank, Local Currency Current Account and
School Fees accounts by the same amount.
 Stale checks totaling PhP0.97M remained unadjusted in
the books of accounts, thereby resulting to understatement
of the Cash in Bank and Accounts Payable accounts by the
same amount as of December 31, 2015.
 A discrepancy of PhP6.47M existed between the
inventory balance per books and the supply inventory
reports due to the absence of a reconciliation procedure
that will attest the correctness of both records.
 The disallowance which has become final and executory
of PhP6.76M and its partial settlement of PhP2.27M
remained unrecorded in the books.
Cebu   Cash advances totaling PhP57.66M for payrolls for
Technologica salaries and wages of regular personnel, job orders and
l University emergency laborers, night honorarium of regular
(CTU) personnel and part-time teachers were recorded as
liquidated despite lack of supporting documents such as
DTRs, Contract of Services, Memorandum of Agreement,
thus affecting the reliability of the accounts affected.
Siquijor State   The physical count of Inventory and Property, Plant and
College Equipment totaling PhP5.74M and PhP26.77M,
(SSC) respectively was not conducted. Subsidiary ledgers and
property records were not adequate, thus alternative audit
procedures to determine their validity could not be
applied.
 Other Deferred Credits amounting to PhP22.61M had not
been adjusted thereby misstating the income and equity
accounts.
 Various items of adjustments to the depository balance per
books amounting to PhP5.16M have not been taken up.
Bohol Island   Outstanding cash advances in Bilar, Calape and Candijay
State Campuses in the aggregate amount of PhP2.50M
University remained unliquidated due to the failure of Management
to monitor and enforce timely liquidation of cash advances
thereby exposing unused cash in the hands of the
accountable officers to misappropriation.
366

 Stale checks totaling PhP0.02M and PhP0.36M in
Balilihan and Candijay Campuses, respectively, remained
unadjusted in the books of accounts, thereby resulting in
the understatement of the Cash in Bank and Accounts
Payable accounts by the same amount.
 The reliability of the Accounts Receivable account in
Clarin Campus as of December 31, 2015 totaling
PhP1.51M could not be ascertained due to the absence of
subsidiary records.
 Loans Receivable on Students Financial Assistance
Program (STUFAP) amounting to PhP0.05M in Clarin
Campus remained uncollected for a long period of time.
 Construction in Progress-Building and Structure account
under General Fund and Special Trust Fund is overstated
by PhP2.88M and PhP0.07M, respectively due to the
failure to transfer/close the costs of completed projects to
the appropriate Property, Plant and Equipment (PPE)
accounts and improper classification of assets.
 The accuracy and reliability of Other Payables Account
(2-99-99-990) totaling PhP2.06M as of December 31,
2015 in Candijay Campus could not be ascertained due to
the non-reconciliation of Subsidiary Ledger (SL) balances
against the General Ledger (GL).
 Funds received from various government/private agencies
for scholarship grants and payment to students for the said
scholarship grants in the total amount of PhP5.47M and
PhP7.79M, respectively in Candijay Campus, were
erroneously recorded as Income from School Fees and
Scholarship Grants/Expenses, respectively, instead of
recording them as Trust Liability account resulting in the
overstatement of Income from School Fees and
Scholarship Grants/Expense accounts.
 The income from School Fees and Other Income
Generating Enterprises (IGEs) totaling PhP16.55M in
Candijay Campus was erroneously recorded to Other
Deferred Credits account instead of to appropriate income
accounts.
 Collection of sales on account of Income Generating
Enterprises in Candijay Campus was credited to Cost of
Sales account instead of Other Payables for GF and
Accounts Receivable for STF.
 The correctness of the balances of the Inventories and the
PPE accounts totaling PhP16.33M and PhP280.15M
respectively could not be established due to the absence
of the physical inventory taking for a number of years; b)
failure to maintain Supplies and PPE Ledger Cards and
c) non-reconciliation of the PPE account balances
between the general ledger and the Inventory Report of
Properties.
 The validity of Other Payable Account in the Special
Trust Fund amounting to PhP14.69M is not assured
because it was not supported with the list of creditors.
 Undocumented Accounts Payable of Candijay Campus
totaling PhP0.02M and PhP0.09M in the General Fund
and Special Trust Fund respectively for more than two
years were not reverted to Government Equity.
367

 Refunds totaling PhP0.20M arising from an audit
disallowance in the Special Trust Fund of the Main
Campus were recorded as Accounts Payable. We
recommended its recording as prior years’ adjustment
account but no correction was effected.
Region VIII – EASTERN VISAYAS
Leyte Normal   Accounts Receivable balance from students’ school fees
University amounting to PhP120.32M remained constant in CY
(LNU), 2015 due to change in the method of recognizing income
Tacloban from accrual method to cash basis inconsistent with the
City prior year’s presentation and classification of items in the
financial statement belying management’s assertion in
the Notes to Financial Statements as PPSAS-compliant.
 The School Fees account under FC 05, with book balance
of PhP57.61M, is understated by PhP20.45M due to
erroneous classification of some students fees to the
Other Service Income account amounting to PhP1.12M,
and other school fees taken up under Fund Cluster 07
(Trust Fund) in the amount of PhP19.31M as Other
Payables.
 The validity and accuracy of the account ‘Other
Payables’ in the Trust Fund, with a book balance of
PhP39.18M as of December 31, 2015, could not be relied
upon in view of the following: (1) the account is credited
for income received from other NGAs and private
sources, composed of 98.98% of Income from both
Exchange and Non-Exchange transactions collected in
CY 2015, amounting to PhP38.20M, thereby
understating Income and overstating the ‘Other Payables’
account; and (2) this account is debited for various
expenditures charged to the Trust Fund instead of the
appropriate expense accounts; thus, no expense accounts
are reflected in the monthly Trial Balances for Fund
Cluster 07; and (3) no subsidiary ledgers to support and
account for the year-end balance.
 The Construction of the Information Technology
Building for Infrastructure and Facilities Upgrade of
Leading SUCs under the DAP, with contract amount of
PhP13.99M has not been recorded under FC 07 since
completion; thus, understating the School Buildings
account.
 Unutilized appropriation for scholarship grants for 3
quarters of CY 2014, amounting to PhP13.95M, was
transferred to FC 07 (Trust Fund) but without complete
documentation, on the last day of the third month of
quarters ending March, June and September, 2014 and
recorded therein as debit to Cash- Collecting Officer and
credit to Other Payables account and later used to pay
scholarship expenses in CY 2014 and for the 1st quarter
of 2015 in violation of Section 4.15.2 of DBM Circular
No. 2013-12 dated November 21, 2013.
 Management disbursed the total appropriation of
PhP9.45M earmarked for the Tulong Dunong Grants-in-
Aid scholarship program of the CHED in CY 2015 for
1,181 grantees, of which only 39 can be properly
identified as appearing in the masterlist of grantees
provided by CHED.
368

 Confirmation result from CHED-CO showed that the
University has unliquidated balances for four (4) projects
released in 2012 and 2013, amounting to PhP5.83M as of
December 31, 2015; whereas, the balance per books of
the Due to NGAs account has a combined total of
PhP2.18M for both CHED and DOST fund transfers.
Moreover, the Cash in Bank-LCCA account for CHED
receipts showed a balance of PhP6.45M; thus, rendering
the accuracy of the accounting of fund transfers from
CHED unreliable.
 The year-end book balance of the Scholarship
Grants/Expenses account under Fund Cluster 01 (General
Fund) amounting to PhP28.97M was overstated by a net
amount of PhP5.31M due to erroneous accounting entries
resulting to misstatements of the affected accounts.
 Management failed to disclose one current account for
Payroll Fund, maintained at DBP-Tacloban Branch, with
bank balance of PhP5.07M as of December 31, 2015.
This account has been existing but not recorded in the
books nor included in its inventory of bank accounts
reported to the Treasury. The balance of this account is
therefore not accounted in the books understating the
cash account by the same amount.
 The books under Fund Cluster 05 for Cash-LCCA (Real
Branch) account and the actual cash balance at LBP-Real
Branch were overstated by PhP1.39M and PhP1.37M,
respectively, resulting from errors due to delay in
recording of transactions in the books.
Palompon   Financial data reported in the Statement of Cash Flows
State for All Funds excluded disbursements amounting to
University PhP33.47M for capital outlay under FC 01 and
(PSU), PhP5.05M for property and equipment under FC 05, or
Palompon, a total investment of PhP38.52M, rendering unclear facts
Leyte and presentation of inaccurate and unreliable information
while the total debits and total credits in the Cash in Bank
accounts per books under Fund Clusters 05 and 06,
representing cash receipts and payments during the year,
do not reconcile with total cash inflows and outflows as
shown in the Statement of Cash Flows reflecting
discrepancies of PhP15.16M and PhP16.52, respectively.
The net effect showed an overstatement of PhP1.36M in
the presentation of the Cash balance in the Statement of
Cash Flows thereby affecting the accuracy and reliability
of the Cash balance in the Statement of Financial
Position.
 The accuracy and validity of the balance of the Accounts
Receivable (AR) under FC 05, with book balance of
PhP27.49M, remained unreliable in view of
management’s practice of recording income from tuition
fees on cash basis instead of the accrual basis as
prescribed under COA Circular Letter No. 2004-002 and
the PPSAS.
 Disbursements for the procurement of various supplies,
property, and equipment in December 2015, under
Regular Agency Fund (FC 01), is overstated by
PhP10.14M resulting from the issuance of checks ahead
of delivery and receipt of items by the agency
369

circumventing the automatic lapsing and reversion of
funds to the National Treasury among other violations to
pertinent DBM and COA rules and regulations on fund
utilization and the disbursement process.
 The book balance of the account ‘Other Payables’ under
FC 05, amounting to PhP8.92M as of December 31,
2015, includes insurance proceeds in the amount of
PhP7.97M, and credits aggregating PhP0.15M
representing balances for Tulong Dunong and DOLE
financial assistance to students awaiting refunds,
disclosing an overstatement at year-end amounting to
PhP7.98M to this account and understating income by the
amount of the insurance proceeds.
 Transactions during the year on the Inter-Agency
Payables accounts were overstated due to the inclusion of
the government’s share in premium contributions in the
aggregate amount of PhP8.12M.
 Income from Tuition Fees of students, with book balance
of PhP38.97M, is overstated by PhP4.41M resulting from
the inclusion of income for the ensuing year without
closing this to the Other Deferred Credits account and
various adjustments to Accounts Receivables
erroneously debited or credited to the Tuition Fee
account.
 Thirty seven (37) projects implemented under FC 01,
with project costs amounting to PhP26.57M, were not
included in the standard form of the Annual Procurement
Plan (APP) for CY 2015 prescribed by the GPPB.
Naval State   Disbursements in December 2015 from the Cash-
University Modified Disbursement System, Regular account was
(NSU), overstated by PhP3.97M and the amount reverted to the
Naval, National Treasury as of year-end was understated by the
Biliran same amount due to issuances of checks for
Province procurements of equipment which were not yet delivered
and received by the agency as of December 31, 2015
contrary to Section 4 of DBM Circular Letter No. 2013-
12 dated November 21, 2013, Section 6.1.1 of DBM
Circular Letter No. 2013-16 dated December 23, 2013;
 The reported year-end balance of Property, Plant and
Equipment account totaling PhP292.32M is unreliable
due to: a) total variance of PhP1.19M between the books
and Inventory report of NSU-Main Campus; b) absence
of physical inventory report to validate existence of
assets of NSU-Biliran Campus; c) advance recording of
undelivered equipment valued at PhP4.14M in the Books
of NSU-Main Campus; d) small tangible items
amounting to PhP1.01M were recorded as PPE; e) non-
compliance with the documentary requirements for
procurement of equipment valued at PhP2.26M of NSU-
Biliran Campus; and, f) erroneous classification of some
properties amounting to PhP0.13M;
 Paid disbursement vouchers and supporting documents
for the period March to December 2015 for all funds
totaling PhP8.26M were not submitted for audit thus,
validity and accuracy of the recorded disbursements were
not ascertained.
370

 Collections for yearbooks and graduation programs
during CYs 2014 and 2015 totaling PhP2.33M were not
issued Official Receipts and deposited in an authorized
government depository bank (AGDB). The receipt,
utilization and/or all transactions pertaining to said funds
were not recorded in the books thus, understating the
affected accounts;
 The year-end balance of the Scholarship
Grants/Expenses account under Fund 101 (General Fund)
amounting to PhP8.86M was understated by a net amount
of PhP11.34M due to erroneous accounting entries
resulting to misstatements in the affected accounts;
 Validity and accuracy of Accounts Receivable with year-
end balance amounting to PhP12.54M is doubtful in view
of: (i) the recording of income from tuition fees on cash
basis contrary to COA Circular Letter No. 2004-002; (ii)
non-maintenance of subsidiary ledgers to support and
monitor the status of each students’ accounts and
balances; (iii) unreliable provision of Allowance for
Impairment due to absence of Schedule/Aging of
Accounts Receivable in violation of COA Circular Letter
No. 2007-001 dated January 19, 2007 and Section 66 of
the NGAS Manual, Volume I; and,
 Reliability of the balance of the Income account for
Tuition Fees of PhP69.06M cannot be ascertained in
view of: (i) non-adoption of the accrual method of
accounting for income of Main and Biliran Campus; (ii)
the inclusion of Main Campus of other school fees which
has an appropriate account; and, (iii) the non-adjustment
(Main and Biliran Campus) of the unearned portion of the
income at the end of the year in violation of COA
Circular Letter No. 2004-002 dated September 30, 2004,
thereby affecting the fair presentation of the balance of
the account in the financial statements.
Eastern   The year-end balance of Accounts Payable of
Samar State PhP325.13M and the corresponding Property, Plant and
University, Equipment account were overstated by PhP312.18M due
Borongan to recording as payables of procured items for which
City, Eastern actual delivery have not been made and received by the
Samar agency as of December 31, 2015;
 Paid disbursement vouchers (DVs) and their supporting
documents totaling PhP284.08M were not submitted for
audit thus, validity and propriety of the recorded
disbursements could not be ascertained and audit thereof
could not be undertaken;
 The year-end Cash in Bank – LCCA balance of ESSU-
Main Campus totaling PhP35.24M is unreliable due to
the a) non-preparation of monthly bank reconciliation
statements between the book and bank balances which
disclosed a variance of PhP62.97M in the balances of
both records, and b) non-maintenance of subsidiary
ledgers for the Special Trust Fund bank accounts;
 Cash advances granted to Accountable officers and to
Officers and Employees totaling PhP26.17M have
remained unliquidated as of December 31, 2015;
 The consolidated year-end balance of the Due to BIR
account of PhP9.45M as of December 31, 2015 is
371

unreliable due to: (i) erroneous recording of the Can-avid
campus of tax remittance transactions in the General
Fund books which resulted in a net understatement of
recorded remittances by PhP0.09M; and, (ii) the carrying
in the books of the Maydolong campus accumulated
unaccounted balance of PhP0.05M in the General Fund
and negative balance of PhP0.04M in the Special Trust
Fund;
 The consolidated book balance of the Scholarship
Grants/Expenses account under Fund 101 (General Fund)
amounting to PhP18.42M cannot be ascertained due to
failure of management to: (i) maintain a separate book of
accounts for ESGP-PA and Tulong Dunong scholarship
programs and, (ii) implement existing rules and
regulations pertaining to the granting, utilization and
liquidation of cash advances of Disbursing Officers in the
total amount of PhP19.74M; thus, materially misstating
affected accounts.
Visayas State   Reliability of the Income account for School Fess of
University, PhP119.98M is doubtful due to (i) the non-
Baybay City, implementation of the accrual system of accounting for
Leyte income of VSU Tolosa which understated School Fees
and Accounts Receivable accounts; (ii) non-adjustment
of the unearned portion of the income at the end of the
year of Villaba External Campus which overstated the
income for School Fees ; and, (iii) discrepancy between
the total collections per Report of Collections of external
campuses and total collections per consolidated Cash
Receipt Journal (Fund 164) of the Main Campus
affecting the income for School Fees and Accounts
Receivable accounts;
 The accuracy of the balance of Loan Receivable account
of PhP1.51M is not reliable due to the erroneous
recording of loans granted to student borrowers in CY
2013 to 2015 and failure to update the Subsidiary Ledger
for each Loan Program Fund received from CHED and
granted to student borrowers;
 The balance of Due to GSIS account of PhP1.17M is not
reliable due to erroneous journal entries made for the
remittances of withheld deductions to GSIS of the main
campus for CY 2015 amounting to PhP1.38M;
 The accuracy of the balance of the Cash Collecting
Officer account of PhP0.62M is not reliable due to
discrepancies in amount per Report of Collections and
Deposits of external campuses as compared to the
amount reflected in the Consolidated Cash Receipt
Journal for External Campuses of the VSU main
Campus.
 Failure to effect adjustments in the books the reconciling
items included in the Bank Reconciliation Statements
which affected the reliability and accuracy of the Cash in
Bank and other affected accounts; and,
 The Accountant had not implemented the requirement
provided in Section 4.2 of COA Circular No. 2015-002
dated March 9, 2015 in the maintenance of separate sets
of books to generate trial balances and financial
372

statements resulting in misleading information contained
in the financial statements;
National   The reliability of the balances of the Cash in Bank –
Maritime Local Currency, Current Account of PhP5.77M, and
Polytechnic Cash-Modified Disbursement System (MDS), Regular
(NMP), account of P0.28M is doubtful in view of the variance of
Tacloban PhP2.33M between the book and bank records due to
City management’s failure to prepare Bank Reconciliation
Statements contrary to Sections 74 and 122 of PD 1445,
and COA Circular No. 92-125A;
 Funds received from the DOLE amounting to PhP2.74M
representing financial assistance to employees Affected
by Typhoon Yolanda and the 7.2 Magnitude Earthquake
was not recorded in the books of the agency contrary to
COA Circular No. 94-013, COA Circular No. 2013-002
dated January 30, 2013 and the prescribed Revised Chart
of Accounts for National Government Agencies (RCA-
NGS), thus resulted in understatement of the Cash in
Bank-LCCA and Due to NGAS accounts and ultimately
affected the fairness of presentation of the financial
statements;
 Delayed/non-submission of disbursement vouchers, trial
balances, financial statements and supporting schedules
contrary to Sections 122 and 127 of P.D. 1445, Section
7.2.1 of COA Circular 2009-006, pertinent provisions of
COA Circular No. 95-006, Section 71 and 81 of NGAS
for NGAs, Volume I, and COA Circular No. 92-125A
preclude the prompt audit of accounts and financial
transactions, early detection and correction of
errors/deficiencies and timely reporting of the audit
results to the management.
Southern   The unreleased checks totaling PhP15.06M, reconciling
Leyte State items of PhP1.93M; (b) account and noted discrepancies
University of PhP32.42M and PhP1.04M from bank confirmation
(SLSU), results and comparison of the records of the main and
Sogod, external campuses, respectively, were not adjusted at the
Southern end of the year while Accountants of San Juan and Tomas
Leyte Oppus failed to submit Bank Reconciliation Statements.
 Cash Allocations for scholarship funds totaling
PhP7.75M were transferred from Cash- MDS, Regular
account to the Cash in Bank - Local Currency Current
Account (CIB-. (LCCA) avoiding its automatic reversion
to the National Treasury.
 Audit disallowances with Notice of Finality of Decision
issued by the LSS Decision No. 2009-232 dated May 21,
2009 amounting to PhP0.09M was not recorded in the
books understating the Other Receivables and
Accumulated Surplus accounts
 The reliability and correctness of the year-end balance of
Construction in Progress-Buildings and Other Structures
account amounting to PhP33.36M was not ascertained due
to the absence of Subsidiary Ledgers.
 The balance of Loans Payable-Domestic account of
PhP24.27M as of December 31, 2015 did not reconcile
with the bank confirmation results with a difference of
PhP1.93M. Also, there were noted inconsistency of
373

amounts reflected in the general ledger and the related
Statement of Financial Condition.
 Subsidiary Ledger (SL) balances of the General Ledger
(GL) accounts Cash-Collecting Officer, Advances to
Payroll, Due from Officers and Employees, Due to GSIS,
Due to Pag-ibig, Due to Philhealth, Due to NGAS, Trust
Liabilities and Other Payables have abnormal negative
balances totaling PhP2.39M.
 Year-end balance of Scholarship Expense account
amounting to PhP19.62M is unreliable due to the irregular
transfer of Tulong-Dunong (TD) and Expanded Students'
Grants-In-Aid Program for Poverty Alleviation
(ESGPPA) funds totaling PhP14.77M from the
regular/general fund to special trust fund by directly
recognizing said expense account when actually, no
payment was made yet to the scholars of their benefits at
the time of transfer.
Samar State   The balance of Cash-in-Bank Local Currency Account as
University of December 31, 2015 for all funds totaling PhP122.16M
(SSU), is unreliable due to the discrepancy between the balance
Catbalogan per books and confirmation results by a net amount of
City, Samar PhP2.36M and non-preparation of Bank Reconciliation
Statement of all depository accounts;
 The Property, Plant and Equipment account balance of
PhP444.33M as of December 31, 2015 is doubtful due to
a net variance of PhP3.48M as compared to the balance of
PhP440.85M per Report on the Physical Count of
Property, Plant and Equipment (RCPPE) due to
management’s failure to reconcile the property records
with the accounting records.
 Paid disbursement vouchers with its supporting
documents for September to December 2015 totaling
PhP78.20M and accounts for all funds for the period
August to December 2015 were not submitted for audit
while the submission of monthly accounts for paid
vouchers, payrolls, and revenue accounts for all funds for
the period January to December 2015 were delayed by at
least 1 day to a maximum of 185 days rendering the
validity and propriety of the recorded disbursements
doubtful.
Northwest   Reliability of the balances of the Cash-in-Bank–Local
Samar State Currency, Current Account of PhP138.64M is doubtful in
University view of the net variance of PhP2.30M between the book
(NSSU), and bank records due to management’s failure to conduct
Calbayog a timely, regular and complete reconciliation and prepare
City, Samar Bank Reconciliation Statements for all bank accounts.
 The Property, Plant and Equipment account balance of
PhP264.30M is inaccurately presented in the financial
statements due to a variance of PhP77.76M as compared
to the balance per Report on the Physical Count of
Property, Plant and Equipment (RPCPPE) due to
management’s failure (i) to reconcile the discrepancy with
the accounting records; and, (ii) to maintain a complete
and updated records of PPE Ledger Cards and Property
Cards by the Accounting and Supply Offices.
University of   The existence of Cash Collecting Officer account as of 31
Eastern December 2015 is doubtful as 98.77% or PhP2.68M of the
374

Philippines year-end balance were undeposited collections pertaining
(UEP), to calendar years 2004 to 2011, wherein the amount of
Catarman, PhP0.11M thereof were balances in calendar years 2004
Northern and 2007 which the Accountant could not fully account
Samar and explain;
 The balance of the consolidated Cash in Bank-Local
Currency Current Account totaling PhP94.17M is
doubtful because of (i) the absence of reconciliation of the
balances in the books of Laoang External Campus,
Laoang, Northern Samar for the entire year of 2015 and
the Pedro Rebadulla Memorial Campus, Catubig,
Northern Samar from May to December 2015 with the
balances reported by the Authorized Government
Depository Bank (AGDB); (ii) the discrepancy noted
between the Subsidiary Ledger and the General Ledger in
the amount of PhP0.16M; and, (iii) reconciling items in
prior years amounting to PhP0.54M were not recorded in
the books of the main campus; and,
 The year-end balance of Other Payables account of
PhP16.35M is doubtful due to (i) the erroneous credits to
this account for salary deductions of employees for
payments of loans to private banks and other lending
institutions amounting to PhP0.35M and for fund transfer
from CHED amounting to PhP4.50M; and, (ii) the
unobligated scholarship fund from the General Fund of
PhP17.12M was transferred to Trust Fund and credited to
Other Payables account avoiding automatic reversion and
charging scholarship expenses therewith thus, overstating
the Other Payables account and understating the Trust
Liabilities and Due to NGAs accounts.
Regional   The year-end balance of Accounts Payable of PhP3.43M
Development and related accounts were overstated by PhP3.32M due to
Council (a) recording as payables of procured items amounting to
(RDC), PhP3.29M for which actual delivery have not been made
Palo, Leyte and received by the agency as of December 31, 2015; and
(b) inclusion of claims not supported with a complete and
required documentation amounting to P35,270.24
contrary to DBM Circular Letter No. 2013-16 dated
December 23, 2013, COA Circular No. 2013-002 dated
January 30, 2013 and Section 4(6) of PD 1445;
 The existence and accuracy of the Inventory account
balances of PhP4.82M as of year-end were unreliable due
to (a) incomplete inventory report (b) unrecorded
consumption of supplies and materials in the books; (c)
direct charging to the expense accounts of procurement of
inventory items totaling PhP0.30M; (d) non-maintenance
of Supplies Ledger Cards and Stock Cards for inventories;
(e) misclassification of Inventory Accounts amounting to
PhP0.03M;
 Reliability of the balance of Property, Plant and
Equipment (PPE) account of PhP4.13M as of year-end
could not be ascertained due to: a) the non-maintenance
of subsidiary records by the Accounting Office; and b) the
total variance of PhP2.60M noted between the balances
per books and inventory report; and,
 Paid disbursement vouchers (DVs) and their supporting
documents totaling P0.79M were not submitted for audit
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contrary to Section 122 of PD 1445, Section 7.2.1 of COA
Circular No. 2009-006 and pertinent provisions of COA
Circular No. 95-006, thus validity of the recorded
disbursements was not ascertained and audit thereof was
not undertaken. Moreover, disbursement vouchers were
usually submitted late.
Note: ML was issued to Eastern Visayas State University (EVSU) due to non-submission of financial
statements and transactions for the year ended December 31, 2015; salary of the Accountant was suspended
effective March 16, 2016 pursuant to the Memorandum of the President, EVSU dated March 16, 2016, upon
recommendation of the COA ATL/SA.
Region IX - ZAMBOANGA PENINSULA
Western   Differences in the General Ledger (GL) of Western
Mindanao Mindanao State University (WMSU) balances of
State Property, Plant and Equipment (PPE) and Inventories
University accounts differ by PhP53.93M and PhP4.75M,
(WMSU) respectively, from the corresponding balances per Reports
of Physical Count of PPE (RPCPPE) and Supply Officer’s
record of inventories as of December 31, 2015; thus,
casting doubt on the fairness of presentation of these
accounts in the financial statements.
Zamboanga   Scholarship Expense account were understated by a net
State College amount of PhP1.94M, due to non-inclusion of expenses
of Marine pertaining to the months of January to March 2015 and
Science and misclassification of accounts resulting overstatement and
Technology understatement of various accounts with an aggregating
(ZSCMST) amount of PhP0.93M.
 Eight (8) PPE accounts with book value of PhP39.8
million were still not subjected to depreciation due to non-
reconciliation of books between the Accounting and
Property Office, thus the valuation of the same accounts
could not be validated.
Zamboanga   Unused cash from Modified Disbursement System-
City State Regular Account amounting to PhP20.28M was
Polytechnic transferred to the Special Trust Fund without authority
College violating the General Appropriations Act (GAA) and
(ZCSPC) DBM Circular Letter Nos. 2013-1 and 2013-16. The
Scholarship Expense account was understated by
PhP6.32M due to non-recording of expenses and incorrect
misclassification of accounts.
 Stale checks amounting to PhP0.39M remained
unadjusted thereby affecting the cash balance as of
balance sheet date.
 Construction in Progress – Buildings and Other Structures
account includes completed projects in prior years totaling
PhP3.61M which were not yet reclassified to the
appropriate Buildings or Other Structures account due to
non-submission of accomplishment reports and
certificates of completion.
 The method of recognizing income from tuition fees on
Cash Basis is not in accordance with the Accrual Basis
prescribed in COA Circular Letter No. 2004-002 dated
September 30, 2004.
Basilan State   There was an unreconciled difference of PhP25 million
College between the balance per books and per actual physical
(BSC) inventory of the Property, Plant and Equipment (PPE)
accounts;
376

 The fairness of presentation of Inventories of PhP8million
could not be ascertained due to management’s failure to
conduct physical inventory taking and inclusion of non-
existing supplies already issued in prior years but not yet
dropped from the books due to non-submission of reports
on issuances of supplies and materials;
 Assertions on existence, completeness and regularity of
the Cash, Collecting Officer and Cash in Bank accounts
could not be ascertained due to incomplete submission by
the Collecting Officer of reports on collections and
deposits (RCD) with the required supporting documents
and failure of the Accountant to prepare Bank
Reconciliation statements for Fund 164 since 2012; and
 Financial position, financial performance and changes in
financial position for Fund 184 could not ascertained due
to non-submission of full set of financial statements, bank
reconciliation and other pertinent report since 2009.
Jose Rizal   Monthly Bank Reconciliation statements were not
Memorial prepared and submitted on time in the case of the Main,
State Tampilisan, Dipolog and Siocon Campuses with total
University unreconciled balances of PhP18.83M thus affecting the
(JRMSU) reliability of Cash in Bank Balances and unreleased
checks in the amount of PhP6.11M were not adjusted back
to Cash in Bank resulting in the understatement of both
the Cash in Bank and the corresponding liability accounts;
 Accounts Receivable (Tuition) of Tampilisan, Katipunan,
Dipolog and Siocon Campuses totaling to PhP50.89M is
overstated by PhP1.26M due to erroneous accounting
entries. Likewise, part of the ending balance amounting to
PhP23.21M was not substantiated. Accounts Receivable
(Tuition) and School Fees of Katipunan Campus are
understated both by PhP1.89M because the reversing
entries for the unearned income for tuition fee in 2014 was
accounted as credit to Accounts Receivable-Tuition
instead of School Fees (Tuition). The same is overstated
by PhP0.36M due to erroneous classification on the
payment of tuition fees. In Tampilisan Campus,
Receivables totaling to PhP0.28M arising from lease
contract from Smart Communications, Inc. was not
accrued in the book of accounts.
 Balances per physical count of various inventory accounts
of the five campuses amounting to PhP3.53M differ from
the balances per books of accounts by PhP21.68M, while
validity /reliability of balances of inventories totaling
PhP6.16M cannot be ascertained due to non-submission
of the report on physical count of these inventories;
 Reliability of the balances of Property, Plant and
Equipment (PPE) accounts could not be ascertained due
to the following: a) Katipunan Campus PPE totaling to
PhP36.91M was not substantiated due to failure to submit
the Report on the Physical Count of Property, Plant and
Equipment (RPCPPE) and the complete lists of items
composing the respective account balances.; b) Dipolog
and Siocon Campuses Book balances of the PPE Accounts
totaling PhP123.42M differ with the physical count
conducted by the agency by PhP14.51M; c) PPE accounts
of JRMSU Main, Katipunan, Dipolog and Siocon
377

Campuses totaling PhP92.68M were not depreciated over
their useful lives; thus, resulting to understatement of
depreciation expenses for the current year and
overstatement of Accumulated Surplus for prior years;
and, d) Other Structures is overstated by PhP0.18M due to
the Advance payment for purchases of materials not fully
delivered;
 Inventories, Property Plant and Equipment and Biological
Assets that were conveyed from the abolished ZNAC
Rubber Estate Corporation (ZREC) remained unrecorded
in the books of accounts of Jose Rizal Memorial State
University (JRMSU) in spite of the termination of their
usufruct agreement thru the abolition by the President of
the Philippines and the turn-over by Department of
Agriculture (DA);
 Biological Assets of Main, Tampilisan and Katipunan
Campuses pertaining to Livestock account totaling to
PhP1.62M was not valued at fair value less cost to sell at
year-end, Breeding Stocks and Livestock Held for
Consumption/Sale/Distribution were not classified as
separate accounts; thus, understating the Breeding Stocks
(10701010) by PhP0.29M, Livestock Held for
Consumption/Sale/Distribution (10702010) by
PhP0.16M, overstating Livestock (10701020) by
PhP0.90M, Trees, Plants and Crops (10701030) by
PhP0.02M and Aquaculture (10701040) by PhP0.30M;
 Prepayments had net understatements totaling PhP0.47M
due to the following: a) Error in recording mobilization
fees of PhP1.20M to School Buildings instead of
Advances to Contractors in the Main Campus, b) Non-
recognition as expenses of expired portions of Prepaid
Insurance, Taxes, Duties and Licenses and Fidelity
Premiums totaling PhP0.37M in the Siocon and Main
Campuses and c) Non-recognition as expenses of
consumed fuel, Oil and lubricants totaling PhP0.37M of
the Katipunan campus.
 Erroneous recording of undelivered goods overstated the
Accounts Payable (AP) account of Katipunan and Dipolog
by PhP0.51M. Various errors were unaccounted AP
difference of PhP0.05M, debit balances of PhP0.09M,
unsubstantiated Other Deferred Credits totaling
PhP5.04M and Interest Payable of PhP0.55M. These
resulted to the understatement of Interest Payable, Other
Receivables by PhP8,000.00, Due to NGAS by
PhP0.19M, and Accumulated Surplus/ (Deficit) by
PhP0.17M and total overstatement of accounts payable by
PhP1.06M and Other Deferred Credits by PhP0.35M;
 Income accounts were erroneously recorded resulting to
the following misstatements; Dipolog Campus School
Fees-(Tuition Fees) and Accounts Receivables are
understated by PhP0.01M, Main Campus School Fees-
Tuition Fees was understated while Other Deferred
Credits was overstated by PhP9.40M, Siocon Campus
Accounts Receivable (Tuition) and School Fees are
overstated by PhP0.22M and understatement of Interest
Income totaling PhP9,564.53.
378

Note: The AARs/MLs of the following were not yet transmitted: JH Cerilles State College, MSU - Buug
Campus and Philippine Carabao Center.
Region X – NORTHERN MINDANAO REGION
Mindanao   Delayed implementation of at least 23 projects costing
University PhP571.23M due to delayed deliveries within the contract
of Science time and deviation from the procurement timelines
and contrary to Section 37 of the revised IRR of RA 9184,
Technology deprives the University stakeholders of its use to a more
(MUST) improved quality instruction, research and extension
results and cost the supplier a total liquidated damages of
PhP9.43M and cancellation of deliveries amounting to
PhP13.54M worth of equipment.
 Procurement of laboratory equipment under the
Equipment Development Project with an Approved
Budget for the Contract (ABC) of PhP200.81M was
awarded to Mars Laboratory Instrument Center whose Net
Financial Contracting Capacity (NFCC) of P115.83M
was insufficient, thus non-compliant with Section
23.5.1.4 of the Revised IRR of RA 9184 which resulted to
late deliveries and cancelation of the procured items.
 The University may incur an aggregate foregone income
of PhP2.28M representing uncollected excess allocation
of tuition fees of 484 student-grantees for three semesters
starting Academic Year (AY) 2014-2015 for non-
compliance with CHED, DBM, PASUC, DSWD & DOLE
Joint Memorandum Circular no. 2014- 1 dated February
3, 2014.
 The University under the ESGP-PA spent PhP7.05M a
semester for 235 students representing 49% of the total
ESGP-PA student-grantees, enrolled in program’s non-
priority courses contrary to Item 2 of CHED, DBM,
PASUC, DSWD and DOLE Joint Memorandum Circular
No. 2014-10 dated February 3, 2014 and CHED
Memorandum Order No. 01 Series of 2014 which may
result to non-attainment of the program’s objective of
poverty alleviation aligned with the national development
plans, manpower demands and DOLE Jobs Fit 2020
vision.
 Delayed release of monthly stipend totaling PhP1.69M to
484 student-grantees financially affected them in coping
with their daily provisions while attending school contrary
to Item 8.4.15 of CHED, DBM, PASUC, DSWD and
DOLE Joint Memorandum Circular No. 2014-10 dated
February 3, 2014.
 Unexpended PhP33.94M was transferred to other bank
account in violation of paragraph 4.18.2 of DBM National
Budget Circular No. 551 dated January 2, 2014; Section
82 of the general provisions of General Appropriations
Act of 2015 and item 3 of Section 4 of PD 1445.
 Due to BIR account reflected an unremitted prior years’
withholding taxes totaling PhP1.74M contrary to BIR
Memorandum Circular No. 23-2012, BIR Regulation No.
2-98 and DOF-DBM-COA Joint Circular No. 1-2000
which deprived the Philippine government of the tax The
University Board of Regents (BOR) was paid additional
allowances of P0.13M charged to Special Trust Fund in
the form of travelling and communication allowances
379

contrary to NBC Circular No. 2007-510 dated May 8,
2007.revenues collected from taxpayers.
Misamis   The program lost PhP0.71M in tuition fees and allowances

Oriental State for the enrollment of 28 grantees with failing grades in the
College of 2nd Semester of AY 2014-2015 and 1st semester of AY
Agriculture 2015-2016 resulting from lack of monitoring of grantees’
& academic performances contrary to Item 8 of CHED,
Technology DBM, PASUC, DSWD & DOLE Joint Memorandum
(MOSCAT) Circular No. 2014-1 dated February 3, 2014.
 Approved Budget for the Contract (ABC) for the
Completion of Teacher Education Building project and the
Renovation of VoAg Bldg. into Agrivironmental
Laboratory Phase 2 project were overpriced by PhP0.39M
and PhP0.03M, respectively, due to non-compliance with
the required ABC computation prescribed in DPWH
Department Order No. 22, s. 2015 dated February 18,
2015, hence, College losses of PhP0.42M.
 The Construction in Progress-Building and other
structures (1 06 10 030) account was overstated by
PhP3.90M due to non-reclassification of the completed
projects. Likewise, the account was not supported with
subsidiary ledger hence its validity could not be
ascertained.
 Unutilized ESGP-PA Fund totaling PhP3.60M were
withdrawn and transferred to another DBP Account to
avoid automatic reversion to the National Treasury
contrary to paragraph 4.18.2 of DBM National Budget
Circular No. 551 dated January 2, 2014 and Item 3 of
Section 4 of PD 1445.
 Expenses not related to the program amounting to
PhP0.02M were charged to the unutilized Administrative
& Miscellaneous Cost Allocation (AMC) due to the non-
creation of the Project Monitoring Office contrary to Item
8.4.1, Item 6.0 of CHED, DBM, PASUC, DSWD and
DOLE Joint Memorandum Circular No. 2014-1 dated
February 3, 2014 and Item 3 S Honoraria for research
totaling PhP0.07M paid to Administrative personnel were
found unnecessary contrary to Budget Circular 2007-002
dated October 1, 2007.ection 4 of the PD 1445.
Camiguin   The College’s two infrastructure projects with an ABC of
Polytechnic PhP14.93M was not implemented during the year due to
State College poor procurement planning and caused the reversion of
(CPSC) unutilized fund amounting to PhP16.21M in the first two
quarters which deprive the students of an improved
quality instruction.
 Deliveries and projects’ completion were delayed, with
PhP0.54M liquidated damages not collected from four
suppliers contrary to Section 68 of Revised
Implementing Rules and Regulations of RA 9184 which
resulted to delayed implementation and usage of the
different projects by the intended stakeholders and
government losses of the same amount if uncollected
from the concerned suppliers.
 Retention money amounting to PhP0.11M which serves
as the warranty on contracts was not withheld from State
Alliance Enterprises contrary to Section 62.1 of the
380

Revised Implementing Rules and Regulations of RA
9184 which may result to government losses in case of
defects on projects contracted.
 The College failed to withhold the 5% VAT and 1%
Income Tax from three suppliers in the total amount of
PhP0.05M as required in Revenue Memorandum
Circular No. 23-007 due to erroneous computations
which resulted to government losses in terms of tax
collections.
 Tuition fees and allowances amounting to PhP0.27M was
lost by the College for the enrollment of eight grantees
with consistent failing performances in the previous
semesters resulting from lack of monitoring of grantees’
academic performance contrary to Items 8.4.6, 8.4.9 and
8.4.10 of CHED, DBM, PASUC, DSWD & DOLE Joint
Memorandum Circular No. 2014-1 dated February 3,
2014.
 The ESGP-PA fund utilization for two Academic Years
starting 2014-2015 amounting to PhP15.63M was
erroneously recorded misstating the Trust Liability,
Income and Scholarship accounts contrary to Item 27,
Volume I of the Philippine Public Sector Accounting
Standards (PPSAS).
 The ESGP-PA Fund under the GF (Fund 101) totaling
PhP10.79M was transferred to CHED Bank Account
under STF (Fund 164) to avoid reversion in contrary to
Section 82 of the General Provisions of the General
Appropriations Act of 2015.
 Various expenses of PhP0.02M were charged to
Administrative and Miscellaneous Cost of ESGP-PA not
related to this program, while legitimate bridging
programs chargeable to AMC remained unpaid contrary
to Item 6.0 of CHED, DBM, PASUC, DSWD and DOLE
Joint Memorandum Circular No. 2014-1 dated February
3, 2014 and Item 3 of Section 6 of the PD 1445.
 The College is non-compliant to the requirements of Item
8.4.18 of CHED, DBM, PASUC, DSWD & DOLE Joint
Circular No. 2014-1 due to lack of awareness of this
requisite depriving the Public the transparency of
utilization which could have increased responsiveness of
grantees and even aspirants to the scholarship grant.
Bukidnon   The existence of Loans & Receivables account
State amounting to PhP2.27M and PhP0.43M is unreliable and
University could not be ascertain in the absence of a subsidiary
(BSU) ledger which would have the details of the student
borrowers.
 The continued existence of dormant Inter-Agency
receivable amounting to PhP0.64M that remained
undocumented casts doubt on its collectability and
validity.
 The account Deferred Credit/Unearned Income posted at
PhP3.31M is doubtful, not supported with sufficient
documents to warrant its validity and has remained
dormant for over 9 years.
Central   Cash in bank balance was understated by PhP4.44M due
Mindanao to the existence of book reconciling items that remained
unadjusted.
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University  The Receivables recorded at PhP38.16M (net) was
(CMU) understated by PhP0.45M due to the over recording of
Allowance of Impairment contrary to Annex A, item C
of COA Circular 2013-002 dated January 30, 2013 which
also misstated the related accounts in the statement of
financial performance.
 The PPE and Other Non-Current Assets account totaling
PhP393.86M (net) was not supported with the Report of
Physical Count of PPE (RPCPPE) contrary to existing
COA regulations on property management thus validity
and accuracy of the balance could not be ascertain.
Mindanao   Receivables calculated at PhP0.48M were not recorded
State in the books of accounts due to erroneous treatment of
University- the funds received from the Commission on Higher
Iligan Education (CHED), hence understating the receivable
Institute of account and misstating other affected accounts.
Technology  Not yet due and demandable obligations were certified to
(MSU-IIT) accounts payable contrary to DBM Circular Letter No.
2013-006 dated December 13, 2013, misstating the
Accounts Payable account and other affected accounts by
an amount calculated at PhP22.17M.
 Pertinent rules and regulations governing the payment of
Representation and Transportation Allowance (RATA)
were not followed, rendering the transactions irregular.
 Travelling expenses for Lakbay Aral incurred by the
agency in the total amount of PhP1.22M were found to
be not relevant to their work assignments and functions
which is contrary to Section 4.1 of COA Circular 2012-
003 and Section 3 E.O. No. 298, affecting management’s
assertion that the recorded transactions were in
accordance with laws, rules and regulations.
 Foreign travels of the Chancellor were not approved by
the Chairman of the Commission on Higher Education
and its corresponding travel allowances were found in
excess of allowable amounts contrary to Section 2 of EO
No. 459 and Section 8 of EO 298, affecting management
assertion that the recorded transactions were in
accordance with laws rules and regulations.
 The unreconciled accounting and property records based
on the Status of Implementation of Prior Years’
Recommendation also affects the reliability of the PPE
account.
 The unreconciled accounting and property records based
on the Status of Implementation of Prior Years’
Recommendation also affects the reliability of the PPE
account.
Mindanao   The Bank Reconciliation Statements were prepared late
State by the agency and submitted for audit three months to
University- more than a year late and book and bank reconciling
Naawan items were not promptly adjusted, hindering the timely
(MSU- reconciliation and verification of book and bank records
Naawan) and casting doubt on the accuracy of the Cash in Bank –
Local Currency Current Account totaling PhP20.62M.
 The Due from Other Funds in Fund 101 and 164 and Due
to Other Funds in Fund 101, 161, and 164 amounting to
PhP0.86M and PhP0.79M, respectively, were not
reconciled or reciprocated as of year-end, thereby
382

affecting the accuracy and reliability of information
provided in the financial statements.
 Dormant balances of asset and liability accounts in the
total amount of PhP1.36M remained unadjusted in the
books of accounts for more than five years due to the
absence of records and supporting documents, contrary
to COA Circular No. 97-001 dated February 5, 1997, thus
affecting the fair presentation of the financial statements.
 Fund totaling PhP2.42M due for remittance to the
National Treasury remained in the accounts of the agency
and PhP0.41M of the revenue was utilized despite
existing rules and regulations requiring the reversion and
utilization of revenue, thereby affecting management’s
assertion on the financial statements that transactions are
in accordance with rules and regulations.
 Regular cash advances granted to the Disbursing Officer
accumulating to PhP0.18M were reported as
liquidated/settled even though the supporting documents
were incomplete, thus, understating the balance of
Payroll Fund account by the same amount.
 Commutable Representation and Transportation
Allowances (RATA) for OICs of positions was sourced
out from Special Trust Fund, affecting the assertion of
management on the regularity of recorded transactions.
 The foreign travels of the Chancellor did not have the
approval from the Chairman of the Commission on
Higher Education and were not supported with
documentary requirements set in COA Circular No.
2012-001 and Section 2 of EO No. 459, thereby affecting
the regularity of the transaction.
Mindanao   Stale checks totaling PhP0.06M and book reconciling
State items amounting PhP0.24M were not adjusted in the
University- books, thus affecting the correctness of the Cash in Bank,
Maigo Local Cash Currency Account.
School of  Non-observance of the proper computation and provision
Arts and of depreciation expense for Property, Plant and
Trade (MSU- Equipment (PPE) prescribed in COA Circular 2003-007
MSAT) dated December 11, 2003 and COA Circular 2015-002,
rendered the Accumulated Depreciation and
Depreciation expense inaccurate.
 Perennial delayed preparation and submission of Bank
Reconciliation Statements hindered the validation of the
completeness and existence of Cash Accounts.
Mindanao   Several disbursement vouchers including those for the
State Gasoline, Oil, and Lubricants Expenses lacked
University- documentary requirements, affecting the validity of
Lanao del financial transactions.
Norte  Non-preparation of 18 BRS for three bank accounts for
Agriculture the period January to June, 2015, and delayed preparation
College for other months, affects the determination of the
(MSU- accuracy and existence of the cash in bank accounts.
LNAC)  The accounting and property records on the PPE were not
reconciled rendering the account balance unreliable.
 The Accounting Unit failed to withhold taxes of
PhP0.17M from goods and services procured and to
account accordingly the taxes deducted and withheld
from and remitted for compensation thereby affecting
383

management’s assertion on the financial statements as to
completeness and disclosure.
 The Trial Balance was not prepared in accordance with
the prescribed procedure, General Journal were not
prepared, some account codes used per Check
Disbursement Journals did not represent the actual nature
of the transaction, cash advances were directly expensed,
prior year’s transactions were reported as current and
some entries could not be traced in the Trial Balance,
affecting the verifiability and integrity of the report.
 The Income Generating Project (IGP) of the MSU-Lanao
del Norte Agricultural College was operating without a
clear policy and the income was not properly accounted,
such that there was no assurance that the school benefited
from the project and the government was not short-
changed
 The PPE items were still not provided depreciation as
revealed in the validation of prior year’s audit
recommendations.
Northwestern   Due to non-reconciliation of balances in accounting
Mindanao records against existing property, plant and equipment,
State College their validity and valuation cannot be ascertained; and
of Science enrolled dependents of incumbent barangay officials
and outside the Province of Misamis Occidental were
Technology provided exemption from paying tuition and
(NMSCST) matriculation fees thereby depriving the college of tuition
fee income.
Region XI - Davao
University of   The fair value of the PPE-Land properties of the
Southeastern University approximately amounted P888.22M but only
Philippines P131.08M has been recorded and carried in the books of
(USeP) accounts as of December 31, 2015, which grossly
understated its PPE-Land account by P757.15M; thus,
affecting the fair presentation of the financial position of
the Agency.
Region XII - SOCCSKSARGEN
Cotabato City   The validity of the supplies and PPE accounts cannot be
State fully ascertained due to the absence of the general
Polytechnic ledger, property records and failure of the agency to
College conduct physical inventory taking.
(ICSPC) 
Sultan   Some of the significant audit observations include:
Kudarat State  Unreliable IGP accounts as at December 31, 2015 due
University to inconsistencies in recording and accounting treatment
(SKSU), of receivables and income;
Tacurong  Gaps in the implementation of various scholarship
programs and inefficient utilization of funds thereof
affect the corresponding expense accounts;
 The accuracy and reliability of other payables account
cannot be ascertained due to variances noted between
the balances reflected in the trial balance as at December
31, 2015 and supporting schedules presented.
University of  
Southern
Mindanao
(USM),
Kabacan
384

Cotabato  
Foundation
College of
Science and
Technology,
Doroluman,
North
Cotabato
Mindanao  
State
University
(MSU) –
General
Santos
Note: ML was issued for Philippine Carabao Center at USM Kabacan.
Region XIII
- CARAGA
REGION
Caraga State   The existence, validity and completeness of the PPE
University accounts totaling PhP266.12M cannot be ascertained due
(CSU) to failure of the Supply Officer to submit the physical
inventory report;
Sufficient appropriate audit evidence about the carrying
amount of the properties by other alternative procedures
was not obtained due to the inadequacy of the accounting
and property records; and
 The validity and accuracy of the Other Payables account
totaling PhP4.61M could not be ascertained due to
disparity in the Subsidiary Ledger balances of
PhP3.81M thereby, showing a difference of PhP0.80M.
Agusan del   Prepayment and affected accounts were misstated by
Sur State PhP1.49M due to inaccurate recording, improper accounts
College of used and failure to recognize expense; and
Agriculture  Long outstanding Other Payables totaling PhP2.34M was
and dormant for more than five years and without valid
Technology claimants thereby, rendering the account doubtful.
(ASSCAT)
Surigao del   Fiduciary Fees of the four Campuses (Tandag, Cantilan,
Sur State Lianga and Cagwait totaling to PhP30.00M were
University misclassified as Trust Liabilities and Other Payables
(SDSSU) instead of Business Income-School Fees contrary to COA
Circular Nos. 2013-002 and 2000-002; thus, resulted in
understatement of the Income and Equity accounts and
overstatement of Trust Liabilities and Other Payables
Accounts in the Financial Statements.
Surigao State   The reliability and existence of nine liability accounts
College of aggregating PhP94.99M as of December 31, 2015 is
Technology doubtful due to accounting errors, non-preparation of
(SSCT) schedules and non-maintenance of subsidiary ledgers by
the Accounting Office;
 The College Accountant and Cashier did not
maintain/update subsidiary ledgers and detailed records
for each trust receipt, casting doubt on the reliability of the
PhP69.28M account balance. The unrecorded net
adjustments understated the reported account balance by
PhP10.44M;
385

 Weakness in internal control rendered unreliable the Cash
Collecting Office, Loans and Receivable accounts and five
inventory accounts amounting to PhP5.26M, PhP30.82M
and PhP39.35M, respectively.
 The transfer of cash allocation for the CY2015 Expanded
Students' Grants-in-Aid Program for Poverty Alleviation
(ESGP-PA) and Tulong Dunong (TD) Program totaling
PhP50.81M from the College's MDS current account to
the Trust Fund local currency account without statutory
authority technically circumvented DBM Circular Letter
No. 2013-12 and overstated the Scholarship/ Grant
Expenses account by PhP37.73M.
 The unreconciled negative balances of 35 cash advances
understated the reported balance by PhP0.75M.
TOTAL 41 195 18 1
Percentage
to Total (%) 16 76 7 1
Note: Excluded are agencies/departments on which audit opinions have not been issued and auditees wherein Management Letters (MLs)
were rendered; hence, no opinion was issued.
386
COA REGIONAL OFFICE- ARMM
SUMMARY OF AUDIT OPINIONS
Calendar Year December 31, 2015
1. Autonomous Regional Government of ARMM

Management Letter (ML) is being prepared for each Regional Government Agency (RGA) in
the ARMM. No audit opinion is rendered for each individual RGA.
A Consolidated Annual Audit Report (CAAR) is being prepared to include the observations
and recommendations on the ML of the RGAs in the ARMM.
A Qualified Opinion is rendered for the CY 2015 CAAR of the ARG of ARMM.
2. State, Universities and Colleges (SUCs)
Agency Unqualified Qualified Adverse Disclaimer Basis for Opinion

1. MSU Main Campus, √ Fair presentation of the
Marawi City financial statement of the
Mindanao State University ,
Marawi City as of
December 31, 2015
particularly on the validity
and accuracy of the Cash in
Bank balance of P
756,645,138.52 in the
financial statement for
failure of the management
to prepare and submit Bank
Reconciliation Statements
(BRS)
2. MSU-LNCAT***
3. Adiong Memorial
Polythechnic State**
4. MSU-Maguindanao √ Fairness of presentation of
the Financial Statement of
Mindanao State University-
Maguindanao as of
December 31, 2015 due to
unreliability of the account
Property, Plant and
Equipment as discussed in
Part II Observations and
Recommendations of this
Report.
5. Upi Agricultural
College***
6. Sulu State College*
7. MSU-SDTC, Sulu***
8. MSU-TCTO*
- Data were based on the submitted AAR CY 2015.
Note:
1) * Not yet submitted

2) ** No opinion stated on the AAR submitted
3) *** Management Letter is being prepared, no audit opinion is rendered.
387
IX. HIGHLIGHTS OF
ACCOMPLISHMENTS OF
THE TOP TEN
DEPARTMENTS
ANNUAL ACCOMPLISHMENTS FOR CY 2015
DEPARTMENT OF AGRARIAN REFORM
LAND TENURE SERVICES
CARP Land Acquisition and Distribution Accomplishment
Land Tenure Improvement (LTI)

 Land Distribution (1972- December 30, 2015)
DAR distributed a total of 4.718 million hectares benefiting 2.783 million

agrarian reform beneficiaries (ARBs),who were given land titles in the form of
emancipation patents (EPs) and certificates of land ownership award (CLOAs). These
entitled the RABs to full ownership of the land.
LAD CCOMPLISHMENT BY LAND TYPE/MODE OF ACQUISITION

1972-December 2015 (Area in Hectares)
PRIVATE AGRICULTURAL LANDS (PAL) 2,608,769 55%
Operation Land Transfer (OLT) 594,168 13%

Government Financial Institution (GFI) 171,391 4%
Voluntary Offer to Sell (VOS) 650,601 14%
Compulsory Acquisition (CA) 357,038 8%
Voluntary Land Transfer (VLT) 835,571 18%
NON-PAL 2,110,076 45%
Settlement 812,227 17%

Landed Estates 81,498 2%
Gov’t. Owned Lands/ KKK 1,216,351 26%
TOTAL 4,718,845 100%
388
 Leasehold Operations (1964- December 31, 2015)
1.790 million hectares placed under leasehold benefiting 1.233 million

farmer-tenants. Under this arrangement, the tenant- farmer enjoys full control, and
management of the land. As payment for the use of the land, the leaseholder pays the
landowner an amount equivalent to 25% of his net harvest.
AGRARIAN LEGAL SERVICES

 Agrarian Justice Delivery (AJD) 1988-June 30, 2015
 684,319 Agrarian Law Implementation (ALI) cases under the agrarian legal
assistance program were processed, resolved, and disposed of across all level of
the Department.
This is equivalent to 98% of the total caseload of 699,613 cases.
 Pending cases as of the end of the year stands at 15,294 cases.
475,219 agrarian cases were adjudicated by DAR adjudicators. This is

equivalent to 99% of the total caseload of 481,911cases. At the end of the year, there
still remains some 6,692 cases yet to be adjudicated.
TECHNICAL ADVISORY SUPPORT SERVICES

 Program Benefits Development (PBD)
 2,210 Agrarian Reform Communities (ARCs) and Special ARCs (SARCs)

launched covering 9,698 barangays nationwide. An ARC is a development
strategy where support services are focused on a specific geographic area to
optimize utilization of development intervention such as economic and physical
infrastructure and basic social services and eventually showcase the improvement
in the quality of lives of the ARBs and the community.
 6,601 farmers’ organizations/associations/cooperatives assisted with 519,728

ARB- members. These ARBOs serves as conduits for support services and other
development interventions.
 PhP 14.692 billion in the form of credit and microfinance provided to 1,131,997
ARBs for the implementation of 361,042 crop production, marketing, livelihood
and agri- based projects.
 90 ARC connectivity clusters confirmed involving 793 ARCs and 110 Agri-
business Plan prepared.
389
DEPARTMENT OF AGRICULTURE
Achieved the country’s historic best in rice and corn production. From 2012 to 2015,
palay production exceeded 18 million metric tons, a level that was sustained even through El
Niño which hit the country in 2015. Data from the US Department of Agriculture report
Grains: World Market and Trade May 2014 shows that the Philippines was the world’s
fastest-growing rice producer from 2011 to 2014. Rice sufficiency level rose from 81 percent
in 2010 to 97 percent in 2013, a 16-percent increase that missed the national target by 3
percent.* To have a better sense of this achievement, it must be noted that the highest
production level achieved in the recent past was 16.82 million metric tons in 2008. In
comparison, the highest level for this Administration, attained in 2014, was 18.97 million
metric tons – a difference of 2.15 million metric tons or an increase of 12.78 percent.
Meanwhile, corn production consistently exceeded 7 million metric tons from 2012 to 2015,
peaking at 7.77 million metric tons in 2014. The highest production achieved before this
Administration was 7.03 million metric tons in 2009. Due in part to the promotion of alternative
staples, annual per capita white corn consumption increased from 7.07 kg in 2008 – 2009 to
10.26 kg in 2012.
Attained higher farm incomes across commodities. As production increased, farmers’

incomes also rose as the result of favorable prices and improved productivity. In particular, per
hectare income from palay farming doubled from Php 15,830 in 2010 to Php 31,375 in 2014.
Meanwhile, income from corn farming almost tripled from Php 5,760 in 2010 to Php 16,712
in 2014. A similar upward trend was reported in the per hectare income of 16 other
commodities.
The improvement in farm incomes did not have an adverse effect on consumers as the
movement in food prices was slower in 2011 – 2015 at an average of 4.46 percent per year
compared to 5.33 percent in 2001–2010.
Reached record level in agri-based exports. Performing better than total exports in 2011 –
2014, agri-based exports increased by 63.81 percent, reducing the agri-based trade deficit from
56.66 percent in 2007 – 2010 to 32.61 percent in 2011 – 2014. (Figures for 2015 are not yet
available.)
Improved efficiencies through farm and postharvest mechanization. The Government’s

distribution of 240 rice combine harvesters fueled greater private sector investment in
mechanization. In 2014, the Philippine Center for Postharvest Development and Mechanization
reported that 1,566 rice combine harvesters were purchased as the private sector recognized the
machine’s benefits. Additionally, adjusting the cost-sharing scheme from 50:50 in previous
years to 85:15 allowed more farmers to acquire farm machinery with assistance from the
390
Government.
Constructed facilities that allowed direct market access to farmers. Ten Agri-Pinoy
Trading Centers were completed while 12 more are under construction or in pre-construction.
These trading hubs reduce the need for middlemen and allow farmers to bargain for a better
price for their produce, resulting in a 15-25 percent increase in income. The inter-trading
between hubs stabilizes supply and prices of farm commodities especially vegetables, benefitting
consumers through stable supply and better product quality.
Maintained disease-free status of livestock and poultry sectors. The Philippines was
declared free from Avian flu, Peste des Petits Ruminants (PPR) and Foot-and-Mouth Disease
(FMD) by the World Organisation for Animal Health (OIE). PPR is a highly contagious
disease that affects small ruminants such as goats and sheep, while FMD strikes large
ruminants like cows and carabaos. The Department of Agriculture maintained this disease-free
status in the last five years, registering zero incidence of the diseases.
Improved enforcement of fishery regulations to reverse the declining productivity of

the subsector. In April 2015, the European Commission lifted the “yellow card” issued to the
Philippines in July 2014, saving the country’s Php 9.4-billion annual market for fishery products.
The lifting was the result of various legislative and operational initiatives: the issuance of EO No.
154 s. 2013, creating the National Plan of Action against Illegal, Unregulated and Unreported
Fishing; the passage of RA 10654 reinforcing the Fisheries Code of 1998; the completion of
the Fishers and Municipal Fishing Vessels Registration; and the improved capability to
regulate fishing.
Several measures were also undertaken to restore fishery and marine resources, among them the
successful annual observance of science-based closed season in major fishing waters and the
planting of 78.5 million mangrove propagules. There was also a significant increase in the
number of fishery law enforcers from 4 in 2010 to 580 in 2015, all of whom underwent intensive
training prior to deployment.
* The calculations are based on FAO’s formula: Local Production / (Local Production + Imports – Exports).
Using a more common formula of Total Palay Production / Total Palay Requirement = Palay Sufficiency would
give 96.29% as the sufficiency level for 2014.
Constructed climate-resilient geotagged farm-to-market roads (FMRs). Of the 6,549 km

of FMRs built in 2011 – 2015, about 4,796 km are concrete and climate-resilient. All these
FMRs were geotagged to ensure no duplication or overlapping of projects. An inventory of
FMRs built and rehabilitated in 2010 – 2015 will be part of the DA’s handover documents.
Expanded crop insurance coverage by the Philippine Crop Insurance Corporation.

From 150,976 in 2010, the number of farmers with insurance coverage grew to 1,196,144 in
391
2015. From 2011 – 2015, a total of 368,859 claimants were paid Php 3.09 billion.
Expanded credit coverage of the Agricultural Credit Policy Council. Between 2009 –
2010, 21,440 farmers and fishers were granted Php 425.54 million in loans. This figure grew
between 2010 and 2015 to 195,664 recipients of Php 8.60 billion in loans. The expanded credit
coverage was made possible through government support in the amount of Php 4.27 billion
used as additional loan guarantees. A highlight of the expanded credit coverage is the Sikat
Saka Program which enables individual irrigated palay farmers to establish a record of
creditworthiness. The program’s repayment scheme, with its declining annual interest rate of 15
percent to 9 percent upon regular repayments, encourages borrowers to increase savings.
Farmers also have direct access to funds as the loan proceeds are available through their
personal Land Bank ATM accounts.
Rolled out the Philippine Rural Development Project (PRDP). The PRDP is the DA’s
platform for reform and serves as its legacy project for the next administration. Supported by a
US$ 500-million long-term loan from the World Bank, the PRDP embodies the reforms and
best practices of the Department since 2010 documented in a detailed Operations Manuals
covering investments in public goods and enterprise support.
As part of the PRDP, the Provincial and City Priority Commodity Investment Plans (PCIP) and
Commodity Value Chain Analyses (VCA) guide the identification and evaluation of infrastructure
From treating the rural economy as just a source
of problems to recognizing farms and rural
enterprises as vital to achieving food security
and more equitable economic growth, worthy of
re-investment for sustained productivity.
and enterprise projects. These studies are not limited to macro data but include information on
local players in the value chain, comparative costs, and current market conditions. As of
December 2015, the PRDP has approved 194 infrastructure subprojects worth Php 11.8
billion and 98 agri-fishery enterprises worth Php 311.80 million. These subprojects were based
on 34 approved VCAs and 69 approved PCIP
392
TOTAL REGISTERED FARMERS,

FARM LABORERS AND FISHERS
IN 75 PROVINCES
100 %
9,780,580
REGISTERED AS FARMER 34 %
3,296,674
REGISTERED AS FARM
LABORERS 34%
3,289,005
REGISTERED AS FISHERS
9%
869,952
REGISTERED AS FARMER
AND FARM LABORER
1,570,504 16%
REGISTERED AS FARM
LABORER AND FISHER
3,289,005 3%
REGISTERED AS FARMER
AND FISHER
240,223
2%
REGISTERED AS FARMER,
FARM LABORER AND FISHER
241,909
2%
Figure 1. Summary of Registry System for Basic Sectors in Agriculture
75 provinces as of July 2015
393
DEPARTMENT OF EDUCATION
DepEd’s Priority Areas
1 - Improving access of all Filipino learners to complete basic education

We ensure every learner is able to access education, regardless of factors such as
socioeconomic status, location, age, culture, and special needs. We
present our accomplishments in the following:
 Provision of necessary basic inputs
 Affirmative action towards learners in special programs
 Health interventions
 Engaging the private sector to broaden opportunities for basic
education
 Utilizing technology in expanding reach of basic education services
2 - Improving quality of basic education

We continuously raise the quality of education we deliver to our
learners.
We discuss our performance in the following:
 Development of an enhanced and learner-centered curriculum
 Provision of relevant instructional materials and equipment
 Training of teachers for the new curriculum
3 - Effective, efficient, and collaborative delivery of basic education services

We refine our delivery of basic education services by enhancing our
systems and processes. We present how we have accomplished the
following:
 Improved internal systems and processes
 Improved internal processes through information systems
 Strengthened education leadership and management
 Disaster risk reduction and management
1 Improving access of all Filipino learners

to complete basic education
We aim to give all learners access to free and compulsory education, providing
opportunities responsive to their specific needs and contexts. Through various
mechanisms and programs in the formal, nonformal, and informal education systems, we
strive to deliver high-quality education that is inclusive and appropriate for every learner.
394
Provision of necessary basic inputs

In 2010, the Department of Education faced shortages in necessary basic inputs such as
teachers, classrooms, and school seats. Together with our education partners, we have
strived to resolve these backlogs in our commitment to provide quality education. We
continue to create, repair, and deliver the resources needed to support our learners.
 We have constructed 18,060 classrooms—14,000 from the Basic Education Facilities
Fund (BEFF), 97 from the Regular School Building Program, and 3,963 from Public-
Private Partnerships. The construction of 18,254 more classrooms is ongoing.
Additionally, we have repaired and rehabilitated 1,104 classrooms.
 We have created 39,002 teaching items for FY 2015. Of this number, 31,797 items
(81.5%) have been filled up as of December 2015.
 With the continuous increase in our 2010 2011 2012 2013 2014
number of teachers, we have been Elementary 1 : 39 1 : 41 1 : 41 1 : 40 1 : 36
able to steadily lower the average Secondary 1 : 38 1 : 37 1 : 35 1 : 34 1 : 27
teacher to student ratio to 1:36 in the Average teacher to student ratio, SY 2010-2011 to SY
elementary level and 1:27 in the 2014-2015
secondary level.
 We have provided 1,066,586 seats – 628,672 of which were supplied to elementary
schools and the remaining 437,914 to secondary schools. We have likewise provided
23,775 sets of tables and chairs for teachers.
 We have constructed 3,330 water, sanitation, and hygiene (WASH) facilities. We also
aim to repair and rehabilitate 545 WASH facilities.
Affirmative action towards learners in special programs

We are committed to the inclusion of all learners in education, reaching out to learners
with special needs, adult learners, learners in formal and non-formal learning
environments, and other contexts. To ensure that schools and learning centers cater to all
students, we continue to implement various intervention programs.
Alternative Learning System

Through the Alternative Learning System (ALS), we provide marginalized learners with a
viable option to formal basic education. We implement two major nonformal education
programs: the Basic Literacy Program (BLP) and the Accreditation and Equivalency
(A&E) Program. In 2015, we served a total of 519,535 ALS learners.
 Basic Literacy Program: The BLP aims to eradicate illiteracy among out-of-school
youths (OSYs), adults, and, in extreme cases, school-aged children by developing the
basic literacy skills of reading, writing, and numeracy. In 2015, a total of 54,742 ALS
learners were enrolled in the BLP.
 Accreditation and Equivalency Program: The A&E program is an avenue for school
dropouts to complete their education outside the formal school system. In 2015, a
total of 79,200 and 385,593 ALS learners enrolled in the elementary and secondary
level, respectively. For the A&E Test, a total of 39,462 and 309,926 ALS learners
were expected to take the elementary and secondary A&E test, respectively. Due to
administrative concerns, however, the A&E test for the FY 2015 was postponed to
2016.
395
ADM Program Kindergarten Elementary Secondary Total

DistEd n/a 160 n/a 160
e-IMPACT 355 4,315 n/a 4,670
MISOSA 11 404 n/a 415
OHSP n/a n/a 20,618 20,618
Other school-initiated
93 675 2,823 3,591
intervention
Total 459 5,355 23,441 29,454
Number of learners enrolled in ADMs, FY 2015
Abot-Alam Program
Launched in 2014, the Abot-Alam Program is a joint initiative among various
government agencies, civil society organizations, and local government units. The
program aims to map OSYs aged fifteen (15) to thirty (30) years old who are unemployed
or have not completed basic or higher education. From 2014-2015, a total of 860,808
learners were enrolled in basic education programs, 448,214 of which were enrolled in
2015. These learners have been matched to appropriate program interventions: 694,824
are enrolled in education through ALS; 88,182 are given opportunities in
entrepreneurship; and 77,802 are undergoing skills training for employment.
Alternative Delivery Modes

Aside from serving informal and nonformal Rural Farm Schools
learners, we strive to expand access to formal
We aim to provide access to learning avenues
education for marginalized learners and those appropriate to the context of rural agricultural
at risk of dropping out. Through Alternative communities. In 2015, we issued rules and
Delivery Modes (ADMs), we help learners in regulations to establish rural farm schools as an
ADM of secondary education. We are currently
the formal system overcome personal, social, finalizing plans for the implementation of the
and economic constraints to accessing and rural farm school program. Rural farm schools
finishing their education. We provide ADMs will provide facilitative and experiential learning,
designed to address the needs of children in
such as Distance Education (DistEd) for SPED, rural, agricultural, and fishing communities. The
Enhanced Instructional Management by curriculum will follow DepEd’s core secondary
Parents, Community, and Teachers (e- curriculum, as well as themes identified by the
community as their learning needs.
IMPACT), Modified In-School Off-School
Approach (MISOSA), and Open High School
Program (OHSP). In 2015, a total of 29,454 learners benefited from ADMs.
Madrasah Education Program

We provided quality basic education that is culturally based, contextualized, and
responsive to the needs of the Muslim learners through the implementation of the
kindergarten Madrasah / Tahdheriyyah and Refined Elementary Madrasah Curriculum
(REMC) in both public and private madaris (schools). We provided program support
fund to the regional and division offices implementing the MEP as well as the
honorarium and allowances of the asatidz (teachers) in public schools offering the Arabic
Language and Islamic Values (ALIVE) subjects. A total number of 356,572 learners are
enrolled in ALIVE. We also provided financial assistance to the private madaris that are
offering the K to 12 curriculum and adopted the REMC. A total number of 13,167
learners benefited in the subsidized private madaris.
396
Indigenous Peoples Education Program

We provide indigenous people (IP) communities with education that befits their context,
respects their identities, and promotes their indigenous knowledge and skills. In 2015, we
issued the Indigenous Peoples Education (IPEd) curriculum framework to guide both
public and private schools, as well as other education programs, in localizing,
indigenizing, and enhancing the K to 12 curriculum. A total of 2,445,256 learners were
enrolled in the IPEd Program in 2015.
Level ALIVE IPEd

Kindergarten 33,213 219,565
Elementary 318,947 1,679,874
Secondary 4,412 545,817
Total 356,572 2,445,256
Enrollment in ALIVE and IPEd according to
level, FY 2015
Special Education Program

We serve learners with special needs and various exceptionalities through the Special
Education (SPED) program. In 2015, we served 263,809 learners through the SPED
program.
Type of SPED Kindergar Elementary Secondary

Elementary Secondary Total
learner ten (non-graded) (non-graded)
Gifted and
9,503 59,686 69,189
talented learners
With diagnosis
3,618 21,771 35,078 31,390 436 92,293
from specialist
Based on
2,511 26,382 4,801 68,286 347 102,327
manifestation
Total 15,632 107,839 39,879 99,676 783 263,809
SPED enrollment according to type of learner, FY 2015
Other special programs

We have made available various special programs designed to develop the specific talents
and skills of learners. In 2015, we provided an enriched science curriculum to 58,260
learners in Special Science Elementary Schools and 7,284 learners in Regional Science
Secondary Schools. Additionally, 227,474 learners accessed special programs across
different skill areas in secondary schools.
Type of program Enrolled learners
Special programs in the Arts 42,805
Special programs in Foreign Language 17,849
Special programs in Journalism 4,715
Special programs in Science, Technology, and Engineering 111,066
Special programs in Sports 25,430
Special programs in Technical Vocational Education 25,609
Total 227,474
Number of secondary school learners enrolled in special programs, FY 2015
397
Health interventions
For learners most in need of health interventions, the Department of Education continues
its partnership with the Department of Social Welfare and Development (DSWD) in the
implementation of the School-Based Feeding Program (SBFP). Through the SBFP, we
strive to address undernutrition and short-term hunger among public school children.
Baseline data for SY 2015-2016 indicate a total of 1,857,866 undernourished learners. A
total of 27,181 elementary and secondary schools currently implement school-based
feeding programs. Additionally, a total of 10,073 schools have reported using agricultural
and fishery resources for their feeding programs. Schools have continuously implemented
and maintained their respective Gulayan sa Paaralan (School Vegetable Garden) as a
source of ingredients for the SBFP.
Resources Elementary Secondary Total

Gulayan sa Paaralan 24,048 5,136 29,184
Fish Pond 497 280 777
Agricultural Crops 2,735 1,014 3,749
Livestock 177 168 345
Others 126 41 167
Agricultural and fishery in school used for feeding
8,275 1,798 10,073
program
Total 35,858 8,437 44,295
Availability of agricultural and fishery resources in schools, FY 2015
Engaging the private sector to broaden opportunities for basic education

Committed to providing access to quality education, we have continued to increase our
subsidy for learners who wish to pursue secondary schooling in private schools. Through
the enhanced Government Assistance for Students and Teachers in Private Education
(GASTPE), we have provided 910,312 grantees access to secondary schooling in private
institutions. For SY 2015-2016, we provided a subsidy of PHP 7,500 for incoming Grade
7 and existing Grade 8 grantees outside of the National Capital Region (NCR), and PHP
6,500 for Grades 9 and 10 grantees. For those within NCR, we provided a subsidy of
PHP 10,000 per grantee for the entire school year. Recognizing private institutions as key
partners in delivering quality education, we make private schooling a viable option for
learners through GASTPE.
Utilizing technology in expanding reach of basic education services

To equip learners with 21st century skills and knowledge, we believe in the value of
Information and Communication Technology (ICT) in enhancing the teaching-learning
process. We aim to further improve learning outcomes through providing ICT tools and
packages.
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Computer delivery
Through the DepEd FY 2012 FY 2013 FY 2014 Total
Computerization Program Elementary 174 2,577 7,936 10,687
(DCP), we aim to transform Secondary* n/a n/a 811 811
education by providing
Total 174 2,577 8,747 11,498
schools with appropriate
Provision of computer packages in 2015, according to budget
technologies such as utilization
computer laboratory *No targets set for secondary level in FYs 2012 and 2013
packages, e-classrooms, and
laptop units. We likewise work towards integrating ICT in school systems and raising ICT
literacy among learners, teachers, and school heads. By 2015, we have delivered a total of
14,075 computer packages to schools nationwide. We likewise provided internet
connectivity to 7,165 elementary schools and 2,406 secondary schools.
Learning portal
Through the Learning Resources Management and Development System (LRMDS), we
provide public online access to quality learning, teaching, and professional development
resources. By accessing the LRMDS, users can search and download resource materials
from the regional, division, and school levels. Such resources include K to 12 curriculum
guides, lesson plans, and enrichment activities. Users may search a specific resource
material, or may look through resources categorized according to grade level, learning
area, and learning competency in the K to 12 curriculum. At present, resource materials
for various learning areas are available for K to 10.
2
Improving quality
of basic education First National K to 12 Conference
At the end of 2015, we held the first
National K to 12 Conference, a two-
We continuously improve our services to deliver day summit with almost 1,000
participants from DepEd regional and
high-quality basic education to all learners. With division offices nationwide. The
the full transition to the K to 12 program, we participants reported the progress of
strive to ensure that our learners and educators are various strategies in promoting and
implementing the K to 12 program,
supported adequately with an enhanced specifically the SHS component, in
curriculum, relevant resources and materials, and their respective areas. The
continuous teacher training. conference also provided a venue for
education leaders to share best
practices in building and strengthening
Development of an enhanced and learner- partnerships for the implementation of
the SHS program.
centered curriculum
During the culmination of the
Committed to meeting global standards, the conference, DepEd Secretary Br.
Armin A. Luistro FSC lauded the
Department of Education has continued its efforts participation of the regional and
to fully implement the K to 12 program. In SY division offices: “I prayed for a change
2015-2016, the curriculum for Grades 4 and 10 in DepEd and I realized, when I went
through what you shared the past two
were rolled out for the pioneer cohort of K to 12 days, that you have actually changed
learners. We are currently on our final stretch of the image, the heart, and the culture
full K to 12 implementation as we gear up for the within the Department. You have
brought together, from limited
opening of the Senior High School program in SY resources, many initiatives in the past I
2016-2017. did not imagine DepEd is ready and
willing to do.”
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Mother Tongue-Based Multilingual Education

One of the major K to 12 curricular reforms is the Mother Tongue-Based Multilingual
Education (MTB-MLE) program. In 2015, we aimed to expand the nineteen languages
supported by the program through classroom-level language mapping. The language
mapping data would provide us bases for the production of new teaching and learning
materials, capacity-building of teaching and non-teaching personnel, and the development
of a culturally-responsive MTB-MLE strategy for all learners.
7th ASEAN School Games – Brunei Darussalam

We strive to provide an education that develops happy and well-rounded learners. One avenue for
doing so is through our support for school sports and activities. In November 2015, we sent a team to
represent the Philippines in the 7th ASEAN School Games held in Brunei Darussalam. The 109-member
Philippine delegation competed in five sports events: athletics, badminton, sepak takraw, swimming,
and golf. The Philippine team garnered three gold, three silver, and eleven (11) bronze medals, ranking
6th place overall. We continue to champion such school activities in our efforts towards the holistic
development of our learners.
Assessment tools
To monitor and evaluate the implementation of MTB-MLE, we developed three major
assessments tools. In 2015, we administered the Language Assessment for Primary
Grades (LAPG) to evaluate the effectiveness of MTB-MLE instruction across all nineteen
languages. Likewise, we finalized the Early Grade Reading Assessment (EGRA) and
Early Grade Math Assessment (EGMA) to track the progress of learning early literacy
and numeracy competencies over time in selected Mother Tongues. For 2015, we
developed 5 EGRA tools and 7 EGMA tool.
We have likewise developed guidelines on classroom assessment for the K to 12 program

to be implemented in public elementary and secondary schools nationwide. These
guidelines aim to aid teachers in tracking and measuring learners’ progress, and in
adjusting instruction accordingly. They also inform learners, as well as their parents and
guardians, of their progress.
Provision of relevant instructional materials and resources

As support to our curriculum, we supply teachers and Materials for our learners with
learners with instructional and learning materials. By special needs
the end of 2015, we have procured 47,707,957 learning As with our learners in the regular
and instructional materials, and delivered 25,368,901 of basic education program, we
these to schools nationwide. Furthermore, we are ready continue to ensure those in our
special programs are provided with
to deliver the following learning materials (LMs) and adequate and appropriate learning
teacher’s guides (TGs) by the first quarter of 2016: materials. In 2015, we produced 200
volumes of K to 12 materials in
 1,427,400 LMs and TGs for Grade 10 Music and Braille form for distribution to SPED
Arts centers for our visually-impaired
elementary and secondary learners.
 5,438,612 LMs and TGs for Grade 3 English and Through inclusive efforts such as
Science this, we ensure that our K to 12
program leaves no learner behind.
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 5,438,612 TGs for Grade 3 Filipino, Math, MTB-MLE, EsP, and MAPEH
 2,955,026 LMs and TGs for Grade 9 Science and EsP
Likewise, to enrich the teaching and learning of science and mathematics, we provide
science and mathematics equipment compliant with the K to 12 curriculum. We have
completed the delivery of science and mathematics equipment packages to 2,966 schools.
Training of teachers on the new curriculum

With the implementation of the K to 12 program, we continue to train our teachers to
ensure they are fully equipped to deliver the new curriculum. Since 2012, we have
consistently conducted nationwide teacher training in specific grade levels in preparation
for their implementation of the K to 12 curriculum. In 2015, we trained 157,858 teachers
on the K to 12 curriculum for Grades 4 and 10.
Year Grade levels trained Teachers trained
2012 Grades 1 and 7 143,475
2013 Grades 2 and 8 146,568
2014 Grades 3 and 9 136,163
2015 Grades 4 and 10 157,858
Total 584,064
Number of teachers trained on the K to 12 curriculum, 2012 to 2015
Effective, efficient, and collaborative delivery of basic education services
We put premium on the roles of all stakeholders, including family, community,
3
school workers, and external partners, in delivering quality education to our
learners. We likewise strive to continuously enhance our systems and processes to
ensure efficiency, transparency, and accountability at all levels.
Improved internal systems and processes

To best support our learners, educators, and staff, we have continued to improve our
systems and processes. We promote a devolved and decentralized governance of
education to gear our efforts towards creating more learner-centered schools.
Continuous Improvement and School Improvement Plan processes, tools, and

structures
We believe in decentralizing governance to the field, particulary to the heart of the
education system – the school. We continue to apply the principles of Continuous
Improvement (CI) to sustain the quality, effectiveness, and relevance of our business
processes at all levels of governance. Through School-Based Management (SBM),
schools are empowered with decision-making authority and are encouraged to involve the
community to improve learning outcomes. To further strengthen SBM, schools create
their School Improvement Plan (SIP), which serves as a roadmap for interventions to be
undertaken within a period of three years. After a comprehensive review of the 2009 SIP
and School Report Card (SRC), as well as consultations with various stakeholders, we
developed and released a guidebook for the preparation of the enhanced SIP and SRC.
Schools are expected to begin a new SIP cycle using the guidebook by January 2016. To
strengthen our schools’ engagement with both its internal and external stakeholders in the
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school planning process, we are also in the process of reinventing and reinvigorating the
School Governing Council (SGC), consisting of the school staff, learners, parents, local
officials, and other external partners.
Rationalized functions and offices

The Department of Education’s Rationalization Plan has been reviewed, approved, and
implemented. After a thorough study of the DepEd Change Management Team on the
current structures, functions, and staffing patterns, the new organizational structures of
the central, regional, and division offices have been released. Organizational actions taken
on this matter include retaining, renaming, transferring, merging, abolishing, upgrading,
and creating offices.
Establishment of a policy development process

To ensure all our efforts are truly geared towards providing quality education, we
addressed the need for a policy formulation mechanism at the Department of Education.
The establishment of the policy development process provides systematic, evidence-
based, and participatory mechanisms for the formulation, adoption, and review of policies
issued by the Department. This not only guides the Department and its stakeholders in
developing and issuing policies, but also defines a system for tracking policy compliance
and periodic review of policy implementation.
Promoting a culture of research and evidence-based decision-making

In support of evidence-based policy development and decision-making, we have
continued to make available the Basic Education Research Fund (BERF). The BERF aims
to promote a culture of research in the Department through the funding of PHP 2 million
per region for studies anchored on improving access, quality, and governance of
education. Following a low intake of research proposals since its implementation in 2010,
we recognized the need to establish a system and structure to guide education research in
the Department. In 2015, we issued revised guidelines on the availment of the BERF, as
well as the conduct and management of education research.
Results-Based Performance Management System

Adopting the Civil Service Commission’s Strategic Performance Management System,
we issued guidelines on the implementation of the Results-Based Performance
Management System (RPMS) in all DepEd schools and offices. The guidelines stipulate
the specific mechanisms, criteria, and processes for performance target-setting,
monitoring, evaluation, and development planning. Through the RPMS, we are able to
ensure organizational and individual effectiveness by cascading institutional
accountabilities to various levels, units, and individual personnel. The RPMS aims to
strengthen the culture of continuous improvement and accountability in the Department to
better serve our learners.
Improved internal processes through information systems

We have advanced our development of information systems to promote transparency and
informed decision-making at all levels of governance. We strive to keep information up to
date and accurate to best support the Department’s plans, policies, and programs.
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Through continuously improving our information systems, we are able to gather the
information needed to provide all learners access to complete quality basic education.
Enhanced Basic Education Information System Learner Information System

Web-based system implemented nationwide to Learner Reference Numbers issued to all enrollees in
support the delivery of timely and relevant data at all public schools, including those in the Alternative
levels of governance Learning Systems, to facilitate the tracking of
information and progress of every learner
Program Management Information System Enterprise Human Resource Information System
Web-based system implemented nationwide to track Database of all employees in the Department of
the progress of programs, projects, and activities Education, recently launched with initial
implementation in the Central Office
Strengthened education and leadership management

To sustain competence and commitment, we continuously provide our education leaders
with opportunities for professional development. We further enhance education
management by engaging in partnerships with the private sector, non-government
organizations, and local government units.
Training of education managers

We consistently provide training and development opportunities to strengthen the skills of
our education leaders and managers. To equip our superintendents with the competencies
needed to best perform their roles and functions, we continue to implement the
Superintendents’ Leadership Program (SLP).
Expansion of public-private partnerships

We strongly believe in the value of fostering linkages and external partnerships to deliver
the highest quality of education to every learner. As such, we continue to strengthen our
relations with our partners in the private sector, civil service organizations, and non-
government organizations. In 2015, over PHP 7.9 billion worth of support was delivered
to schools by Adopt-A-School Program partners. During the 2015 Brigada Eskwela week,
we were able to generate over PHP 4 billion worth of support from resources and services
of over 8 million volunteers who worked together to prepare 46,700 public schools for the
opening of classes. We continue to engage with stakeholders through various
partnerships.
 Launched in 2015, the Pedals and Paddles Project aims to ease access to schools in
far-flung areas by providing 35,734 bicycles and 1,216 boats.
 Through the Kariton Klasrum, we aim to provide street children, out-of-school
children, and school drop-outs with access to basic education.
 The recently-launched campaign LightEd PH aims to engage partners in providing
electricity and technology to 1,101,510 learners enrolled in over 5,000 schools
through conventional and alternative sources of electricity.
Disaster risk reduction and management
We are committed to creating a safe and healthy learning environment for our learners. In
2011, we created a Disaster Risk and Reduction Management (DRRM) Office to initiate
and spearhead mechanisms to increase preparedness and resiliency in the face of disaster.
To cater to a more holistic, comprehensive, and integrated approach to mainstreaming
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DRRM in the basic education system, this office was upgraded into a service in 2015. In
the same year, we also developed the Comprehensive DRRM in Basic Education
Framework to guide our efforts in building resiliency in schools and offices, as well as to
ensure that quality education remains a priority amidst disaster and emergency situations.
The framework institutionalizes systems, mechanisms, protocols and practices for schools
and offices. Moreover, we continue to conduct capacity-building for prevention &
mitigation, preparedness, response, and rehabilitation & recovery. To further strengthen
DRRM in basic education, plantilla positions at the DepEd national and local offices were
created, together with the establishment of School DRRM Committees.
Senior High School Updates
This SY 2016-2017, we welcome our first SHS early implementation

batch of Senior High School (SHS) students. One phase of the transition to the K to 12
The preparations for SHS implementation program was the early implementation of the
began in 2012. Since then, we have been SHS component in 58 technical-vocational
schools and general secondary schools
working on the completion of curriculum nationwide. At the end of SY 2015-2016,
guides reflective of the Philippine about 2,127 Grade 12 students under the
Qualifications Framework and ASEAN Technical-Vocational-Livelihood
expected to complete the
Track are
required
Qualification and Reference Framework. We competencies of their chosen specialization,
have continued to train teachers in line with leading to Technical Education and Skills
the new curriculum, and have reviewed the Development
Certification.
Authority (TESDA) National
assessment framework to better complement

the K to 12 program. We have invested in physical facilities and implemented systems to
increase private sector participation. We aim to ensure that our learners, teachers, and
schools will be fully supported come the opening of SHS in June 2016.
SHS Curriculum
We aim to prepare our learners for the path they choose to take after graduation, be it
entrepreneurship, formal sector employment, or further education. To achieve this, we
ensure our curriculum develops learners to become locally and globally competitive. All
SHS learners will be required a core curriculum and will be offered electives in four
tracks:
 Academic Track, offering four strands: (1) Science, Technology, Engineering, and
Mathematics (STEM); (2) Accountancy Business and Management (ABM); (3)
Humanities and Social Sciences (HUMSS); and (4) General Academic
 Technical-Vocational-Livelihood (TVL) Track, offering various specializations
categorized as (1) Agri-Fishery Arts; (2) Home Economics; (3) Industrial Arts; and
(4) Information and Communications Technology (ICT)
 Sports Track, offering subjects to prepare students for careers in sports, fitness, and
recreation
 Arts and Design Track, offering subjects to prepare students for careers in the design
and creative industries
In choosing their track, learners will undergo assessments to determine their strengths and
interests. Such assessments will include an aptitude test, career assessment exam, and
occupational interest inventory. We also assist SHS entrants in making informed
decisions through the Career Guidance Program (CGP). The CGP promotes awareness of
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choosing a track that is consistent with the learners’ skills and interests, as well as
matches the available resources and needs of the society.
Expected Grade 11 enrollment

In October 2015, we opened early registration for SHS to aid the enrollment of all Grade
10 completers. The early registration resulted in a total of 1,315,605 registered learners,
85.58% of which is comprised of Grade 10 students from public schools, 13.12% from
private schools and high schools of State Universities and Colleges, and 1.30% composed
of returning leavers.
Public SHS Private SHS Registrants

Program Offerings
Registrants Schools Registrants Schools Total Percentage
Academic 473,325 301,341 774,666 58.88
STEM 67,448 869 98,788 895 166,236 12.64
ABM 74,231 1,139 99,579 1,230 173,810 13.21
HUMSS 67,741 1,083 40,486 803 108,227 8.23
General Academic 263,905 3,770 62,488 1,083 326,393 24.81
TVL 399,152 4,250 132,011 1,154 531,163 40.37
Arts and Design 2,997 97 3,063 85 6,060 0.46
Sports 2,463 86 1,253 58 3,716 0.28
Total 877,937 437,668 1,315,605 100
SHS Early Registration Results, 2015
Schools offering SHS

We have issued guidelines on the implementation of the SHS program in existing public
Junior High Schools (JHSs) and Integrated Schools. The guidelines likewise cover the
establishment of stand-alone public SHSs, as well as the conversion of existing public
elementary schools and JHSs into stand-alone SHSs.
In SYs 2014 and 2015, we issued provisional SHS permits to a total of 356 non-DepEd
schools. Moreover, we have evaluated and approved applications from 4,498 non-DepEd
private schools and higher education institutions. Our regional offices will start issuing
provisional SHS permits to these schools by April 2016.
A total of 5,927 public schools shall begin offering Grade 11 in 2016 and Grade 12 in
2017. In addition, 4,761 private high schools, private and public universities and colleges,
and technical-vocational schools shall begin offering Grade 11 in 2016 and Grade 12 in
2017.
Provision of necessary basic inputs

The SHS program is fully funded for 2016, including provision for all critical inputs:
teachers, school heads and non-teaching staff, classrooms and laboratories, workshops,
tools and equipment, instructional materials, ICT packages, school Maintenance and
Other Operating Expenses, and SHS Vouchers. These items add up to a total of PHP
93.27 billion, accounting for 21.6% of the total DepEd budget for 2016.
School facilities and learning resources
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For the SHS program, we plan to establish schools nationwide and provide classrooms,
laboratories, and workshops appropriate for each track offering. We are currently in the
process of bidding out the SHS textbooks. The SHS learning resources will be provided
in a course pack option for a total of 180 subjects, comprised of core, applied and
specialized subjects.
Teacher recruitment and hiring

In October 2015, we opened the call for the expressions of intent for interested SHS
teacher-applicants. As of December 2015, a total of 41,692 applicants, excluding those
from NCR, Zamboanga Peninsula and ARMM, have expressed their interest in applying
for SHS teaching positions. Out of this number, 14,585 applicants indicated interest in
teaching the core subjects. Out of those interested in teaching applied track subjects,
majority expressed their intent to teach in the Academic Track, specifically in the STEM
Strand.
To ensure a smooth application and selection process, as well as equitable hiring of the
most qualified individuals with appropriate specializations, we have issued hiring
guidelines for SHS teaching positions. The guidelines outline details on customized
evaluation criteria, nuanced requirements for different backgrounds, prioritization of
displaced faculty from higher education institutions, and qualification standards approved
by the Civil Service Commission.
School Head Development Program

We facilitate effective management of the SHS implementation through delivering
advanced courses to SHS school heads. The two-module School Heads Development
Program (SHDP) aims to enhance their management skills, as well as their instructional
and supervisory skills. In this way, we hope to give school heads a better understanding
of school systems and processes to enable and effectively manage the day to day school
operations. All SHS school heads nationwide have completed the Module 1 training, with
some of them having already completed Module 2.
Senior High School Support Program

To support the full implementation of the SHS program, the national government has
partnered with the Asian Development Bank (ADB) through the Senior High School
Support Program (SHSSP). ADB will finance a total of USD 300 million, or 6.8% of the
estimated total cost of implementing the SHS program until 2019. The SHSSP will cover
activities from 2014-2019 relating to math and science teachers, the Technical-
Vocational-Livelihood Track, classroom facilities, and engagement of private education
providers. The SHSSP is funded through a results-based lending modality, where
drawdowns can be made only when pre-identified results or Disbursement-Link
Indicators (DLI) are met. As of January 2016, we have achieved six DLIs of the SHSSP,
covering four DLIs for 2014 and two for 2015, corresponding to a disbursement of USD
30.8 million.
SHS Voucher Program

Through efforts such as the SHS Voucher Program under the GASTPE, we strive to
ensure all prospective SHS learners shall have access to schooling. The SHS Voucher
Program provides financial assistance to qualified Grade 10 private and public completers
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entering non-DepEd SHS providers. We intend to enable 30-40% of students to enroll in
non-DepEd schools offering SHS, including junior high schools, private higher education
institutions, state and local colleges and universities, and technical-vocational institutions.
The SHS Voucher Program will serve to decongest public schools, reduce or delay the
need to construct DepEd SHS facilities and hire government teachers, and enable school
choice for students and their families.
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DEPARTMENT OF ENVIRONMENT AND

NATURALRESOURCES
For this year, the Department gained significant accomplishments notably the
completion of cadastral survey of 1,634 cities and municipalities nationwide after
almost 100 years; the distribution of the targeted 2.5 million hectares of agricultural
areas; and the improvement of air quality in Metro Manila in collaboration with
various stakeholders.
Along with these, the targets in most of the activities under the various priority
programs were met and even exceeded, as shown in Table 1. These include: (1) area
planted – 111%; (2) jobs generated – 168%; (3) agricultural patents issued – 105%;
(4) residential patents issued – 100%; (5) ecotourism business plans/development
plans prepared -100%; (6) coral reef assessed and mapped – 110%; (7) coral reefs
managed and protected- 105%; (8) LGUs covered in vulnerability and risk assessment
– 100%; and (9) quality planting materials produced – 122%.
The level of Total Suspended Particulates (TSP) in Metro Manila was reduced
by 39%, i.e., from 166 µg/Ncm in the 1st semester of 2010 to 101 µg/Ncm in 2nd
semester of 2015. The Particulate Matter 10 (PM 10) level was also decreased by
35%, i.e., from 85 ug/Ncm in the 1st Semester of 2011 to 55 ug/Ncm in the Second
semester of 2015. This already conforms to the air quality standard for PM 10.
In an effort to provide more efficient land-related transactions, the DENR fully

implemented the Land Administration and Management System (LAMS) Philippines
which was established in 2010. For the year, some challenges and issues were
encountered which affected the over-all performance such as (a) delays in
outsourcing; (b) delayed procurement of equipment; (c) change in the management
that caused slight disturbance in the regular operations of Regional and Field Records
Offices; and d) initial resistance of field offices in the implementation of LAMS due
to abrupt change in the management system. Despite this resistance and other issues
dealing with the new procedure of LAMS Philippines, the system was fully
implemented in the regional offices. There is now a continued enhancement of the
system in order to address all operational issues and concerns for more efficient and
transparent delivery of public service.
Hereunder are the accomplishments under the major programs:
1. National Greening Program (NGP)
In 2015, about 313.58 million seedlings were planted covering 334,364 ha,
with the participation of 384,480 volunteer planters from various government
agencies, the private sector, upland and coastal communities and other
stakeholders. The area planted exceeded the target of 300,000 ha, or 111%
accomplishment. About 915,729 jobs were generated employing 123,519 persons.
These represent 168% and 159%, respectively.
In a span of five (5) years, a total of 916,766,691 seedlings have been

planted in about 1.3 million ha, already achieving 90% of the targeted 1.5 million
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ha. In addition, about 3,178,285 jobs have been generated employing 443,739
persons. The table below shows the annual accomplishments of the NGP for the
5-year period.
Performance
2011 2012 2013 2014 2015 Total
Indicators
Area planted
128,558 221,763 333,160 334,302 334,364 1,352,147
(ha)
Seedlings
89,624,121 125,596,730 182,548,862 205,414,639 313,582,339 916,766,691
planted (no.)
Volunteer
715,552 387,472 471,717 347,284 384,480 2,306,504
planters (no.)
Jobs
generated 335,078 380,696 466,990 1,079,792 915,729 3,178,285
(no.)
Persons
employed 47,868 55,146 65,198 152,008 123,519 443,739
(no.)
2. Forest Protection and Anti-Illegal Logging Program
With the support of law enforcement agencies, the DENR confiscated a

total of 2,568,376 bd. ft. of illegally cut, processed logs and forest products
nationwide and filed 232 cases in court.
From 2010 to the end of 2015, a total of 34,565,307 bd. ft. were
confiscated; 1,833 cases were filed; and 214 persons were convicted.
The confiscated forest products were utilized in the repair of 396 school
buildings and in the production of 111,022 armchairs and 35,449 other school
furnishings (desks, kiddie chairs, teacher’s tables, computer tables, rostrum, etc)
which were donated to public schools. They were also used in the manufacture of
1,820 chairs, 105 double deck beds, 110 hospital beds and 102 core shelters which
were donated to other government institutions such as AFP and DOH.
Further, as a result of the Department’s intensified drive against illegal

logging, the number of illegal logging hotspots was reduced from 197 to 23
municipalities, or 88% reduction.
3. Cadastral Survey and Land Management
3.1 Cadastral Survey
In 2015, the DENR finally completed the cadastral survey of 1,634

cities and municipalities nationwide after almost 100 years. These include the
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118 cities and municipalities of the Autonomous Region of Muslim

Mindanao (ARMM) and the 1,516 non ARMM cities and municipalities.
3.2 Land Disposition
Pursuant to Comprehensive Agrarian Reform Law of 1988 or Republic

Act No. 6657, a total of 78,503 agricultural patents were issued, exceeding
the annual target by 5%. These cover an aggregate area of 61,855 hectares, or
95% of the target. As of 2015, the DENR has already completed the
distribution of the targeted 2.5 million hectares of agricultural areas.
Likewise, pursuant to the Residential Free Patent Law (RA 10023), the
DENR continued to issue patents in residential lands to promote social
equity.Residential patents issued in 2015 reached 58,064 (covering 1,118 ha),
almost completing the year’s target of 58, 221 patents.
3.3 Land Records Management
The DENR is moving forward to provide more efficient, accountable,

and accurate land-related transactions. It has continued the computerization
of land records with the full implementation of the Land Administration and
Management System (LAMS) pursuant to DAO No. 2010-18 dated June 23,
2010 entitled, “Improving Management of Land Information through the
Adoption of the Land Administration and Management System (LAMS)”.
LAMS is an enhanced standard system for computer-based land records
management in LMB and DENR Regional Offices. Through this system, a
digital database is produced which can support the quick processing of land
transactions, tracking of public land applications/survey plans and updating
of land records. Hereunder is a table showing the target vis-à-vis the
accomplishments for the year:
Activity Target Accomplishment % Accom

Encoded LDC of newly
approved cadastral
337,072 224,731 67%
survey projects under
LAMS (no.)
Encoded PLAs
validated under LAMS 543,189 403,239 74%
lite (no.)
Encoded survey records
validated under LAMS 792,872 514,740 65%
(no.)
Scanned survey records
validated under LAMS 7,018,817 4,589,840 65%
(no.)
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4. Protected Areas and Biodiversity Conservation
1. Ecotourism Development
As of December 2015, a total of nineteen (19) ecotourism business

plans/development plans were prepared, completing the target for the year.
These include ecotourism business plans for Paoay Lake National Park,
Mahagnao Volcano National Park, Murcielagos Island Protected Landscape
and Aliwagwag Protected Landscape. One Hundred forty-four (144)
ecotourism facilities/infrastructures were developed which is almost 100% of
the annual target. These include PA station, information center, visitor center,
and lodging facility/cottage.
2. Biodiversity Conservation
For this year, 47 priority wetlands were assessed and 37 wetland

management plans were prepared, both attaining 100% of the annual target.
These include Buguey Lagoon in Region 2, Nabao Lake in Region 3, and
Lake Bato in Region 5. Sixty-four (64) caves were assessed and
recommended for classification, surpassing the target by 14%; and 46 cave
management plans were implemented, or 100% accomplishment.
3. Wildlife Conservation
We continued to implement programs focusing on the conservation of

threatened wildlife such as: the Pawikan and Dugong Conservation Program
(PCP), the Philippine Raptors Conservation Program (PRCP), the Palawan
Wildlife Rescue and Conservation Center (PWRCC)- Crocodile Farming
Project as well as the National Wildlife Rescue and Research Center
(NWRRC) which is a component of the Ninoy Aquino Parks and Wildlife
Center. Nationwide eighteen (18) Wildlife Rescue Centers are maintained.
4. Coastal and Marine Resources Management
For this period, a total of 91,737 hectares of coral reef ecosystem were
assessed and mapped and 54,198 hectares were managed and protected.
These reflected more than 100% accomplishment of the target.
5. Clean Air, Clean Water and Solid Waste Management
5.1 Improving Air Quality (Clean Air)
Data taken from the regular monitoring of seven (7) manually-

operated roadside Total Suspended Particulates (TSP) monitoring stations
established in Metro Manila showed a decrease in TSP level by 39% from
166 µg/Ncm in the 1st semester of 2010 to 101 µg/Ncm in 2nd semester of
2015. The decrease of TSP level this year compared to CY 2014 is due to the
typhoons that cross and hit the country (Natural way of cleaning the air),
close monitoring of companies and stacks for stationary sources, anti-smoke
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belching campaign, garage testing and implementation of cleaner fuel (EURO

4 Standards) for mobile sources. Hereunder is a graph showing the TSP level
in Metro Manila from 2010 to 2015 (Semestral).
Metro Manila (TSP Level)

190 166
180
170
160
150 133 132 127 132 136
140 126 117 118
130
120 106 120
110
100 TSP Standard 90 ug/Ncm 101
90
80
70
60
50
40
30
20
10
0
Jan - July - Jan - July - Jan - July - Jan - July - Jan - July - Jan - July -
Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec
2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015
Emissions of fine particulates such as Particulate Matter (PM10) were

also monitored. Data taken from the five (5) manual stations and eighteen
(18) continuous automatic monitoring stations (14 CAMS and 4 DOAS)
installed in Metro Manila showed a 35% decrease from 85 ug/Ncm in the 1st
Semester of 2011 to 55 ug/Ncm in the Second semester of 2015. This
conforms to the air quality standard for PM 10.
Metro Manila (PM10 Level)

100 90
85 84 82
90 79
80 74 73
70
PM10 Standard 60 ug/Ncm 59
60
50
40 52
30
20
10
0
Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan - Jun Jul-Dec
2011 2011 2012 2012 2013 2013 2014 2014 2015 2015
5.2 Improving Water Quality (Clean Water)
5.2.1 Sagip Ilog Program
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Water quality of the 19 identified priority rivers in terms of

Biochemical Oxygen demand (BOD) and Dissolved Oxygen (DO) levels and
compliance with the DENR Administrative Order No. 34 or the Revised
Water Quality Criteria was continuously monitored.
As of 3rd Quarter of 2015, out of 19 priority rivers monitored, only

nine (9) or 47% passed the 5.0 mg/l Dissolved Oxygen (DO) criterion while
only 7 or 37% passed the 7.0 mg/l Biological Oxygen Demand (BOD)
criterion.
Rivers that Passed the DO criterion: Rivers that Passed the DO criterion:
a. Balili River (CAR) a. Ylang-Ylang River (Region IV-A)
b. Imus River (Region IV-A) b. Tagburos River (region IV-B)
c. Ylang-Ylang River (Region IV-A) c. Balos River (Region V)
d. Tagburos River (Region IV-B) d. Salog River (Region V)
e. Balos River (Region V) e. Luyang River (Region 7)
f. Salog River (Region V) f. Sapangdaku River (Region 7)
g. Luyang River (Region 7) g. Cagayan de Oro River (Region 10)
h. Sapangdaku River (Region 7)
i. Cagayan de Oro River (Region 10)
5.2.2 Adopt-an-Estero Waterbody Program
For 2015, about 102 Memoranda of Agreements (MOA) were signed

with different partners, registering 121% accomplishment. Sixty-four (64)
new esteros/waterbodies were adopted, as targeted. All the targeted 281
adopted esteros/waterbodies were monitored.
Clean-up activities of esteros/waterbodies were also undertaken. A

total of 17 truckloads, 10,491 sacks, and 88,626 kilos of biodegradable and
non-biodegradable waste materials were recovered by 19,395 people from
different organizations/sectors
5.2.3 Water Quality Management Area (WQMA)
In 2015, there are 17 delineated/designated WQMAs and 19 WQMAs

operationalized. The Calao-Delingquente-Diadi River System in Santiago,
Isabela is the latest officially designated WQMA through DENR
Administrative Order No. 2015-13 dated December 17, 2015.
To date, there are twenty-one (21) designated WQMAs, as shown in

Figure 1. These include the areas within the jurisdiction of the LLDA which
are considered as one management area by virtue of the Clean Water Act.
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5.3 Solid Waste Management
In compliance with Ecological Solid Waste Management (ESWM)

Act or RA 9003 of 2000, the DENR provided technical assistance in the
formulation of 10-year SWM Plan of LGUs. About 128 Plans were approved
in CY 2015, 54 of which are from the Manila Bay Region.
To reduce the amount of garbage being disposed as well as the

production of GHG (methane) coming from domestic and commercial
biodegradable wastes, technical support was provided to LGUs in the
establishment of 9,335 Materials Recovery Facility (MRF). These serviced
12,607 barangays nationwide.
Technical assistance was also provided to 1,578 LGUs in the proper

closure and rehabilitation of open and controlled dumpsites (117%).The
number of open and controlled dumpsite significantly decreased from 900 in
CY 2014 down to 553 in CY 2015. As of December 2015, there are 101
operational Sanitary Landfills.
6. Geohazards Assessment and Mapping and Ecosystems Research and

Development
6.1 Geohazards Assessment
As a result of changes due to natural calamities, a massive

information and awareness campaign was conducted to disseminate the
digitized geohazard map sheets (at 1:10,000 scale). The campaign covered a
total of 7,029 barangays nationwide, exceeding the annual target by 21%. It
was complemented with an intensive information campaign on geohazards
mitigation and reduction.
6.2 Ecosystems Research & Development
6.2.1 Research & Development Programs (RDE)
Nine (9) RDE Programs were implemented addressing the issues and
concerns on climate change, sustainable development, management and
conservation of natural resources, environmental management and pollution
control, and forest tree improvement. These programs consist of 42 projects
and a Technology Transfer and Extension Program. Following are the RDE
programs implemented:
a. Research and Development on Forest Ecosystem Sustainability and

Resiliency
b. Action R&D Project on Ecosystems Dynamics and Sustainable
Management of Coastal and Freshwater
c. Promoting Ecosystem Health and Sustainability of Urban Areas Through
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d. Addressing Hazards in Watersheds for Water Supply Sufficiency and

Resources Availability
e. Action RDE Project on Land Management and Sustainability of
Agroforestry Systems
f. Enhancing Resilience of wetlands and coastal areas for Disaster-Risk
Reduction and Mitigation
g. Action RDE Program on the Conservation and Sustainable Management
of Natural and Plantation Forests in Mindanao
h. Research, Development and Extension Program to stabilize Mined-out
and Degraded Areas through Rehabilitation Technologies
i. RDE Program for Urban Ecosystem and Best Practices for the
Abatement of Pollution thru Networking and Management of Toxic
Substance and Hazardous Wastes
6.2.2 Production of Quality Planting Materials (PQPM)
For 2015, about 2,850,881 planting materials of various indigenous

forest tree species were produced, exceeding the target by 21%. The ERDB
and its six (6) research centers contributed 2,484,627 planting materials
composed of 723,135 clones and 1,761,492 seeds/wildlings.
6.2.3 Mangrove and Beach Forest Development Project (MBFDP)
As of December 2015, a total of 139,048,891 seedlings/propagules

were produced; 50,417.71 hectares of mangrove and beach forest plantations
were established; and 88,230 jobs were generated.
Foreign-Assisted Projects
Thirty (30) foreign-assisted projects are being implemented in FY 2015. Of

these, nine (9) projects were completed during the year, as follows:
Project Title Date of Completion
New Conservation Areas in the Philippines Project September 2015
(NewCAPP)
National Biodiversity Planning to Support the Implementation March 2015
of the CBD 2011-2020 Strategic Plan in the Republic of the
Philippines
Global Programme to Demonstrate the Viability and Removal June 2015
of Barriers that Impede Adoption and Successful
Implementation of Available, Non-Combustion Technologies
for Destroying Persistent Organic Pollutants
Sector Plan to Phase-out HCFC141b in the Foam Sector December 2015
Enabling Activities to Review and Update the National March 2015
Implementation Plan for the Stockholm Convention on
Persistent Organic Pollutants
Improve the Health and Environment of Artisanal Gold December 2015
415
Mining Communities in Southeast Asia by Reducing Mercury

Emissions
Ratification and Early Implementation of the Minamata May 2015
Convention on Mercury in the Philippines
Implementation of the POPs Monitoring Plan in the East April 2015
Asian Region (POPSEA)
BAT and BEP in Open Burning Activities in Response to the December 2015
Stockholm Convention on POPs
National Mapping and Resource Information Authority (NAMRIA)
A total of nineteen (19) projects were implemented in 2015 in which almost

all targets were achieved. These involve Hydrographic surveys and nautical charting,
topographic base mapping, geodetic network development, resource assessment and
mapping and geospatial information management.
Accomplishments include the following:
On Hydrographic Surveys and Nautical Charting conducted to generate

technical data to be used in delineating the country’s different maritime zones:
- Surveyed EEZ east of Samar covering 40,000 sq. km.; sealanes of
Sibuyan Sea to Visayan Sea via Jintotolo Channel covering 1,964 sq.km.;
and Sibuyan Sea to Dumaguete City via Tanon Strait and Cebu City to
Surigao covering 3,636.80 sq.km.
- Compiled and enhanced 8 harbor charts; 2 approach charts; 5 coastal
charts; 1 EEZ chart; 2 general charts
- Published 12 editions of Notices-to-Mariners
- Produced 2016 Tide and Current Tables (TCTs)
On Topographic Base Mapping aimed to produce maps that will serve as base
data to be used by other agencies such as MGB, PAGASA and PHIVOLCS in the
production of geohazard maps and other thematic maps:
- Under the Unified Mapping Project (UMP), the 6,800 orthoimages of the
rest of the country was targeted covering portion of Luzon, West Valley
Fault, portion of Visayas Region excluding Yolanda corridor and portion
of Mindanao. These will complete the nationwide set of orthoimages that
may readily be used as base layer for urgent applications on disaster risk
reduction and management. A total of 6,800 map sheets were delivered,
of which 5,896 map sheets were completed and the remaining maps are
under final evaluation.
National Water Resources Board (NWRB)
In 2015, the DENR, through the NWRB, approved a total of 692 water
permits applications, resolved 117 water use conflicts, decided 116 certificates of
public convenience (CPC) and other CPC-related applications, and
inspected/tested/sealed 65,056 water meters. In addition, 6,692 water
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sources/diversion waterworks facilities were inspected, 2,236 violations or complaints

were acted upon and 102 water utilities were inspected/monitored. All of these posted
more than 100% accomplishment.
Under the project “Development of Groundwater Management Plan for

Highly Urbanized Water Constraint Areas”, all the eight (8) monitoring wells
installed in Iloilo City, the project’s pilot area, were already operational in 2015.
Cagayan de Oro City, the second location, was installed with initial six (6) monitoring
wells. For the year in review, the development of groundwater management plan in
the areas of Angeles City in Pampanga, Metro Manila and Cavite is being pursued.
The project entitled “Comprehensive Water Resources Assessment for the

Agno River Basin” was started in July 2015. It aims to gain a holistic knowledge on
the current water resources situation in the area where three (3) of the six (6) major
dams in the Philippines are located, namely: Ambuklao, Binga and San Roque
reservoirs. The project has come up with several reports including the groundwater
modeling report. It is targeted to be completed in April 2016. Another project for the
Agno River Basin which started in the lattermost part of the year and still ongoing is
the “Climate-Resilient Management of the Dams and Reservoirs in the Upper Agno
River Basin”.
The DENR, through the National Water Resources Board, played a crucial
role in the efficient management of water resources from Angat Dam during the onset
of strong El Nino in the Philippines in the second semester of 2015.
Several projects were completed in 2015 relative to the development,

utilization and management of the country’s water resources. The “Listahang
Tubig”(Water Register), the first ever nationwide survey of all water utilities in the
Philippines was completed supported by the World Bank Water and Sanitation
Program (WB-WSP). It primarily aims to create a database of water utilities operating
in the country. It expanded to generating profiles, establishing a benchmark for level 3
water utilities, facilitating improvement in water regulation and water service delivery
through access to information of participating water service providers.
A breakthrough technology was turned over to the NWRB under the project
“Establishment of an Integrated 3D GIS-Based Water Resources Management
Information System for the Provinces of Pampanga and Bulacan” or the Water GIS
Philippines Project, a Korean government-assisted venture. It provides real time data,
exact location, information, analysis and design of consumption pattern, spatial
simulation and selection of suitable water resources locations. Among the significant
features of the project is the monitoring of Ipo, Bustos and Angat Dams.
A support program for small water utilities was completed called

“Accreditation Program for Technical Service Providers (ATSP)”, a technical
assistance from the Water Sanitation Program of World Bank. This is a support
program for small water utilities to improve their access to expert advice and
mentoring on technical, financial, and management matters including strategic and
investment planning. Consultants are accredited to provide basic services whose fees
may be loaned by client water utilities from the ATSP Revolving Fund. The Program
417
has accredited 78 TSPs. A total of 77 water utilities have engaged 21 ATSPs under
the program. Of these, 37 have completed the assistance, with the rest, still ongoing.
Palawan Council for Sustainable Development (PCSD)
In 2015, the operation of the Strategic Environmental Plan (SEP) Clearance

System delivered way above the target. A total of 5,741 permits and clearances (SEP
clearances, wildlife-related permits, cave-related permits, chainsaw related permits)
were issued to stakeholders and clients achieving an accomplishment rate of 2,296%.
The very high accomplishment is attributed to the amendment of PCSD
Administrative Order Nos. 5 and 10 in 2014 which transferred the permitting of live
fish traders and carriers under the PCSD AO 12 (Detailed Guidelines in the
Implementation of Wildlife Act). Also, there was an increase in the number of
projects and establishments securing SEP clearances.
The SEP is the prescribed legal sustainable development framework for local
and national government agencies in Palawan. To ensure the conformity of all local
development plans and projects with the SEP framework, the integration of the
Environmentally Critical Areas Network (ECAN) into the local Comprehensive Land
Use Plans (CLUPs) is necessary. Three (3) municipalities were selected for
integration of ECAN into their respective CLUPs: El Nido, Taytay and Roxas. As part
of the integration, an ECAN Resource Management Plan (ERMP) was developed for
each municipality. These ERMPs will later be integrated into the formulated CLUPs
of the municipalities. Related to this, a guidebook entitled “Mainstreaming ECAN in
the Local Land Use Planning System: Framework and Methods” was drafted as guide
on the process of mainstreaming.
Development of plans for the sustainable management of critical ecosystems

in Palawan was pursued. In 2015, the Cave Management Plan for the Hundred Caves
in Puerto Princesa City was formulated in collaboration with various stakeholders.
Coastal resource assessment was conducted to monitor the status of marine
environment of Palawan. In 2015, assessment was done in the municipalities of San
Vicente and Quezon.
To assess the state of Palawan’s natural resources, the 2015 Updates of the
State of Environment of Palawan was published covering its priority resources: land
and forests, water, coastal-marine, biodiversity and human resources including
protected areas. It also highlights some of the fundamental environmental issues
confronting the province.
Significantly, a client satisfaction rating of 93% was attained under the

National Greening Program and 86% under the Land Disposition Program (CARP).
Finally, in 2015, the Department endeavoured to be ISO 14001: 2015-

certified. A total of 755 officials and employees, including workforce from the
janitorial and security services, were oriented and informed of the fundamentals of
ISO 14001 and make them ready for certification audit. By the end of the year, as a
result of our vigorous efforts to comply with all the requirements, the DENR was
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finally recommended for ISO 14001:15 certification by the Societe Generale de

Surveillance (SGS).
The foregoing achievements clearly manifest the Department’s firm resolve to

fulfill its responsibilities in the conservation, management, development, and
protection of the country’s environment and natural resources. It shall remain
steadfast in carrying out various initiatives geared towards the realization of its vision
of “a nation enjoying and sustaining its natural resources and clean and healthy
environment”.
Table 1. Target vs. Accomplishments

Accomplishment as of December 31, 2015
%
Program/Project/Activity TARGET ACCOMP REMARKS
Accomplishment
ANNUAL TO DATE ANNUAL
1. National Greening Program
1.1 Plantation Establishment
- Area planted (ha) 300,000 334,364 111%
- Seedlings planted (no.) 313,582,339
1.2 Job Generation

- Jobs generated (no.) 544,035 915,729 168%
- Persons employed (no.) 77,763 123,519 159%
2. Land Disposition
- Patents issued
a) Agricultural
(no.) 74,911 78,503 105%
(ha) 65,100 61,855 95%
b) Residential
(no.) 58,221 58,064 100%
3. Protected Areas and Biodiversity

Conservation
3.1 PA Management
- PA boundaries demarcated (km) 432 439.97 102%
- PA Management Plan prepared and 11 11 100%
endorsed to PAMB (no.)
3.2 Ecotourism Development

- Ecotourism facilities developed (no.) 146 144 99%
- Ecotourism business 19 19 100%
plans/development plans(no.)
419
%
Accomplishment
3.3 Establishment of Critical Habitats
- Draft DAO for critical habitat 12 13 108%
prepared (no.)
3.4 Wetland Conservation
- Priority wetlands assessed (no.) 47 47 100%
- Wetland Management Plans prepared 37 37 100%

(no.)
3.5 Sustainable Management of Coral
Reefs and Associated Habitats
- Area of habitat and resources

83,269 91,737.64 110%
mapped and assessed with report
submitted to BMB (ha)
- Coral reef managed and protected 51,411 54,197.81 105%
(ha)
- Sustainable livelihood enterprise 150 142 95%
(no.)
- PO members and local communities 271 321 118%
organized and mobilized (no.)
4. Ecosystems Research and Development
- Clonal nursery maintained (no.) 22 22 100%
- Seed Production Area (SPA)

75 75 100%
identified (no.)/ Individual Plus Trees
(IPTs) identified – province (no.)
- Seedlings produced/procured 2,343,550 2,850,881 122%
(indigenous/premium) (no.)
- Mycorrhizal inoculants produced by 1,100 520 47%
ERDB (tons)
- NGP sites benchmarked (no.) 32 32 100%
5. Geohazard Assessment and Mapping
a. Vulnerability and Risk Assessment

- LGU assessed City/Municipality 35 35 100%
(no.)
a. Updating of 1:10,000 scale Geo-
hazards Maps
(no.)
b. Conduct of IEC to LGUs
- Consultations/workshops for Brgy. 5,802 7,029 121%
Capt. & Officials conducted (no.)
c. Detailed Sub-surface Assessment
(no.)
6. Ecological Solid Waste Management
420
%
Accomplishment
- Technical assistance provided to
LGUs in proper closure and 1,348 1,578 117%
rehabilitation of open and controlled
dumpsites (no.)
- Supported MRFs (no.) 76 76 100%
- Climate-resilient National &

16 16 100%
Regional Ecology Centers
maintained (no.)
7. Clean Water
- Firms monitored (no.) 3,869 4,260 110%
- New esteros/water bodies adopted 64 64 100%

(no.)
- MOA signed (no.) 84 102 121%
8. Clean Air
- Sampling stations operated and 74 74 100%
maintained & calibrated (no.)
- Firms monitored (no.) 9,029 9,514 105%
- Sampling stations operated and 74 74 100%

maintained & calibrated (no.)
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DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
I. Drive for local transparency and accountability pushed
LGUs have been assessed, recognized and given incentives for good local
governance, while optimizing citizen participation.
1. 96% of LGUs (73 provinces, 139 cities and 1,318 municipalities) and
36,506 barangays complying with the Full Disclosure Policy (FDP)
2. 254 LGUs (41 provinces, 28 cities and 185 municipalities) conferred with
the Seal of Good Local Governance (SGLG); SGLG was recognized as
12th place in the Open Government Awards (OGA) from 30 participating
countries showcasing active involvement in good governance
3. Performance Challenge Fund (PCF) amounting to a total of Php4B

granted to qualified LGUs based on the SGLG 89% (1,946) of the 2,187
PCF-subsidized projects for the period 2010-2015 already complete
4. 67 provinces and 29 HUCs entered into agreement with inter-faith groups

under the Ugnayan ng Barangay at Simbahan (UBAS) to monitor the
status of 41,156 Bottom- up Budgeting (BuB) projects, of which 40%
(16,576) are already completed
5. Citizen’s Satisfaction Index System (CSIS) implemented in 141 cities,

results of which amplified citizens’ feedback in improving service
delivery in LGUs
II. Making businesses thrive in LGUs pressed
Campaign for ease of doing business in LGUs sustained
1. 86% of cities and municipalities (139 cities and 1,264 municipalities)

have already streamlined their Business Permit and Licensing System
(BPLS)
2. 48 cities and 34 municipalities officially enrolled and coached on

Regulatory Simplification for Local Governments (RS4LG), of which
27 have already completed the regulatory simplification work
3. LGUs helped with local economic drivers under the Accelerating

Investments for More Business (AIMBIZ) Project:
• 49 cities and municipalities on updating the Local Revenue Code and

Local Investment and Incentive Code
• 56 LGUs on formulating LGU Business Plan, and organization of

Local Economic and Investment Promotion Office (LEIPO) for local
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economic development and investment promotion
4. 663 kms. and 380 kms. local roads rehabilitated under the Special Local
Roads Fund (SLRF) and Provincial Roads Management Facility
(PRMF), respectively
III. 24/7 Disaster Preparedness in LGUs compelled
Local capacities to anticipate and manage disasters have been enhanced
1. Introduced early and critical LGU preparedness actions under Alpha,

Bravo and Charlie protocols tomprevent loss of lives and properties under
the Operation Listo.
2. LGU Disaster Manuals were distributed to all LGUs (Checklist of Early

Preparations for Mayors, Checklist fo Critical Preparations for Mayors,
and Checklist for Municipal Local Government Officers, Chiefs of Police
and Fire Marshall)
3. Local capacities developed:

• 1,004 LGUs on local Climate Change Adaptation Plan
• 730 LGUs on use of the Geographic Information System in risk
analysis
• Around 4,000 batrangays on community-based DRRM, contingency
planning and community organizing
4. Around 1,300 LGUs complying with the Disaster Risk Reduction

Management (DRRM) Act
5. Around 1,500 LGUs complying with the Calamity Response Protocols
6. Speedy rehabilitation and recovery from disasters:
• 551 of 1,079 sub-projects completed under the Bohol Earthquake

Assistance (BEA) Project
• 294 of 307 sub-project completed under the Recovery Assistance on

Yolanda (RAY) Project – Batch 1, and 566 of 3,626 sub-projects
under Batch 2
IV. Poverty reduction initiatives agreed and implemented
Collaboration among LGUs, CSOs and DILG fostered to bring about shared
solutions to local poverty.
1. Provided safe and potable water for people in waterless LGUs and
communities:
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• 332 of 1,215 water projects completed under the Sagana at Ligtas na

Tubig (SalinTubig) Program
• 971 of 2,815 water projects completed under the BuB Water Project
2. Helped forward the agenda that bring peace and development to conflict-
affected areas:
• 422 of 651 sub-projects completed under the Payapa at Masaganang

Pamayanan (PAMANA) – Pillar 3
3. Helped build roads and other vital local infrastructures identified at the
grassroots level:
• 523 of 684 sub-projects completed under the BuB Local Access

Project
• 148 of 1,432 sub-projects completed under the BuB Other Local

Infrastructure Project
4. Addressed the plight of the marginalized sector living in dangerous areas:
• 21,756 Informal Settler Families (ISFs) in 8 major waterways and

17 other waterways relocated and 18,961 ISFs provided with
dislocation assistance thru the Assistance to ISFs Living in Danger
Areas Program
V. Peace and order and public safety strengthened
1. Crime Clearance Efficiency (CCE) and Crime Solution Efficiency (CSE)

improved to 63.92% and 51.36% from the previous 56.11% and 43.55%,
respectively
2. Improved police-to-population ration to 1:627 from 1:674
3. 1,470 patrol cars and various “move, shoot and communicate” gear and
equipment (radio, vests, armor) procured
4. 47 police stations constructed in various PROs
5. Improved fireman-to-population ratio of 1:4,750 from the previous 1:5,327
6. 68.4% or 1,118 cities and municipalities with fire trucks
7. 65.85% or 1,076 cities and municipalities with fire stations
8. Additional firefighting gears (1,600 pairs of boots, gloves and helmets)
9. Improved jail officers-to-jail population to 11,466 from the previous 10,759
10. 177 9mm pistol Taurus procured improving the firearms capability to 1:1 ratio
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(including handheld radios, prisoner’s vans, batons, handcuffs, solar, satellite

phone and CCTV units)
11. 13 jail facilities constructed and 15 jail facilities repaired
12. 1,870 PNP offices/stations/units nationwide were subjected to audit and

inspection
13. 1,174 complaints against PNP personnel acted upon (498 endorsed for summary
dismissal proceedings, 400 referred to the PNP for disciplinary authorities for
appropriated action, and 276 dropped, withdrawn or dismissed)
14. Continuous professionalization of the police, fire and jail officers thru the
conduct of 42,955 classes on various programs
15. Various construction and rehabilitation of dormitories and other facilities
VI. Improving internal governance capacities prioritized
The Department has invested in support systems to help deliver meaningful

results.
1. Various systems and processes implemented within the Department and/or its
Attached Agencies, such as:
• Quality Management Systems (QMS)
• Results-based Monitoring and Evaluation (RbME) System
• Plan Implementation Monitoring System (PIMS)
• Performance Governance System (PGS)
• Electronic Time Allowance Calculator (ETAC)
2. Implemented Regional innovations initiated by the Regional Offices for its

personnel and the LGUs meant to improve the performance of both
425
DEPARTMENT OF NATIONAL DEFENSE - AFP
For the status of the Armed Forces of the Philippines (AFP) Modernization
Program, two (2) projects were completed under the Capability, Materiel and
Technology Development (CMTD) component of RA 7898 as of 30 June 2016. These
projects are the Refurbished UH-1 Helicopter under the Philippine Air Force (PAF) and
the PSG Security Operations Mobility System under the General Headquarters. In
addition, there are 25 ongoing projects as of June 2016. The variance of ten (10) under
the ongoing projects represents the two (2) completed projects and the eight (8) projects
which were terminated. The data on the other modernization components remain the
same from 2015 to 2016.
Status of AFPMP RA 7898
STATUS OF AFPMP RA 10349 (1st Horizon)
426
427
DEPARTMENT OF FINANCE – Bureau of Internal Revenue

CY 2015 Major Accomplishments Bureau of Internal Revenue
Key Result Area A: Transparent, Accountable, and Participatory Governance

Accomplishment (As of Office Monitoring
Program Brief Description/Objectives
December 2015) the Program
1 RATE This program identifies and 94 RATE cases were filed Legal
Program* prosecutes high profile tax with the DOJ with estimated Group/RATE
evaders through investigation of tax liabilities of P9,708.74 Task Force
large-scale violations of tax laws. Billion.
Started in the year 2005, it was re-
invigorated under the Source: RATE Task Force
Administration of President
Benigno S. Aquino and
Commissioner Kim S. Jacinto-
Henares. It has also been
expanded to the revenue regions.
The resolute and continuous
nationwide implementation of the
program has led to higher levels
of tax consciousness and
compliance not only among
private individuals and companies
but also in public entities and
instrumentalities.
2 Oplan An initiative involving the The Bureau collected Operations
Kandado strengthening of the Bureau's P323,951,631.39 and closed Group
Program* imposition of prescribed 259 business establishments.
administrative sanctions of
suspending the business Source: Operations Group
operations and closing
temporarily of business
establishments for non-
compliance with essential
requirements such as taxpayer's
registration, the issuance of sales
invoices/receipts, filing of Value-
Added Tax (VAT) returns,
declaration of correct taxable
transactions and paying the right
amount of taxes by persons
engaged in transactions subject to
VAT pursuant to Section 115 of
the Tax Code, as amended.
3 Electronic This is a major Information and ITS data for the period Operations
Tax Communications Technology December 15, 2014 to June Group/
Information (ICT) undertaking intended to 21, 2015 was successfully Assessment
Systems enhance/improve BIR application uploaded to eTIS. Likewise, Service
(eTIS) systems, providing a single, web- the Data synchronization of
Project* based automated solution. It is set eTIS data to ITS is being
to replace the existing BIR done daily.
Integrated Tax System (ITS) - the
core infrastructure that powers
several tax application systems.
(For roll-out to other sites)
428

To date, the Taxpayer
Registration System, the
Returned Filing and
processing (RFP), Audit
(AUD) and the Case
Management System are
running across all pilot sites.
The Collection and
Remittance Reconciliation
(CRR) is in soft launch to
the Revenue Accounting
Division (RAD).
Source: Assessment Service
4 Electronic A web-based system that This system was rolled-out Operations

Certificate generates the CAR with barcode and fully implemented in Group/
Authorizing and electronically transmit data to Revenue Regions Nos. 1 to Assessment
Registration Land Registration Authority, 9, LT Regular 1 to 3, LT Service/
(eCAR)* eliminating or reducing revenue Excise 1 & 2 and LTDO Assessment
losses from all types of transfer Makati. Performance
tax transactions. The information Monitoring
from the eCAR system shall be The linkage with LRA using Division
used by BIR offices in conducting BIR-LRA CAR Verification
of pre and post-audit of said System has been
transactions. implemented starting June 1,
2015 thru Revenue
Memorandum Circular No.
28-2015.
Source: Assessment Service/

APMD
5 Electronic An automated facility on excise The eORB system for the Large Taxpayers
Official products that shall allow the cigarette & tobacco Service/LT
Registry Book manufacturers of excisable suppliers was rolled-out. Performance
(eORB)* products to electronically submit The BIR has conducted Monitoring
the ORBs. Allows to monitor the coaching & re-orientation to Program
submission and check entries to Taxpayers to access the Division
undercover discrepancies on system. Presently, there are
declarations of the Official twenty-nine (29) tobacco
Registry Book of business manufacturers and leaf
involved in tobacco, alcohol and tobacco dealers being
petroleum products. monitored by the BIR.
Enhancement/revision of template Source: Large Taxpayers Service/

of eORB form and preparation of LTPMPD
business and technical
functionalities and Terms of
Reference (TOR) for the
expansion of the eORB system to
the alcohol industry.
(Procurement of eORB for Alcohol

Industry)
429

6 Internal A web-based application that will Total no. of stamps ordered Large Taxpayers
Revenue manage the ordering, production, are 6,084,005,435 and Service/Large
Stamps distribution, affixing and tracking 6,042,600,205 stamps were Taxpayer Field
Integrated as well as provision of security released, which generated Operations
System features in the revenue stamps for collections amounting to Division
(IRSIS) for distilled spirits & wines. Its P136,989,177,924.00.
Distilled primary objective is to ensure
Spirits and collection of correct excise taxes Source: Large Taxpayer Service/
Wines on distilled spirits & wines. LTFOD
(Procurement of IRSIS for Alcohol

Industry)
7 Compliance A system that will develop a Approval of the 2015 Project

Improvement comprehensive end to end Compliance Improvement Management and
Strategy* compliance improvement strategy Strategy Plan (CISP). The Implementation
for taxpayers for the effective plan sets out the risks that Service
management of risks and to BIR will prioritize,
improve overall levels of treatment strategies,
compliance in the areas of responsible officers and
registration, filing and payment, milestones/measures of
under-reporting, and arrears success. The strategies
management. therein are being
implemented in the 4 Metro
The compliance improvement Manila Regions.
strategy will further strengthen tax
administration and will Formed the Data Analytics
complement and support the Team (DAT), a sub-team
achievement of the BIR Strategic that helps the management
Plan. make informed decisions in
assessing risks and
formulating treatment
strategies.
Source:
Project Management and
Implementation Service
8 Enhanced This project is for the Application MRCOS web application for Operations
Mobile Enhancement and Maintenance of encoding of Revenue Group/Collection
Revenue the MRCOS, and the need to Official Receipt Service/Collectio
Collection acquire more efficient and (ROR)/Official Receipt n Programs
Officers effective equipment that will (OR)/Acknowledgement Division
System likewise maximize the features of Receipt (AR) to Desktop PC
(MRCOS)* the MRCOS. was rolled-out to nineteen
(19) regions.
The application enhancement
shall include the following:
1. Transform the downloadable

MRCOS mobile application
into a cross platform application
capable of running on the
broadest array of mobile
Operating Systems (OS).
430

2. Integration of the Philippine The procurement process of

National Public Key Application Enhancement
Infrastructure (PNPKI) System: and maintenance of MRCOS
a. Login authentication using was transferred to the
iGov certificates Procurement Service -
b. Application of digital Department of Budget and
signature on issued eReceipts Management (PS-DBM) on
and validation thereof to December 8, 2015. The BIR
authenticate is waiting for the pre-
3. Enable sending of eReceipts via procurement schedule from
SMS and email. PS-DBM.
4. Implementation of the Unified
Accounts Code Structure Source: Collection Service/CPD
(UACS)
5. Enhancement of the web-based
MRCOS:
a. Dashboard facility to monitor
total collections received by
the Revenue Collection
Officer (RCO) and the
number of transactions issued
per RCO.
b. Summary Report of
Collection successfully
uploaded in the ITS/eTIS.
c. Summary Report of Deposit
successfully uploaded in the
ITS/eTIS.
d. Capability to accept tax
payments thru credit/debit/
prepaid cards
(Enhancement of Application; Lease of

new POS device; Sustainability)
9 Integrity The Integrity Management Submitted the BIR Priority Legal

Management Program or IMP is a preventive Key Risk Areas to the Group/Internal
Program* anti- corruption measure of the Program Management Affairs Service /
government. It aims to install a Committee (PMC), IMC c/o Internal
standard but flexible approach at Undersecretary Geron of OP- Investigation
the agency and program level in ODESLA dated March 23, Division
ensuring that standard norms of 2015, as such; Monitoring of
conduct for public officials are establishments producing
consistently applied. excisable products,
Implementation of Data Fix,
Electronic Letter of Authority
Monitoring System
(eLAMS), Electronic
Certificate of Authority to
Register (eCAR),
Administrative Investigation
and Case Resolution,
Procurement Process and
Process on Payment of
Money Claims.
431

BIR officials and other
members of BIR-IMC
attended the first IMP
Convention at Shangri-la,
Ortigas Center on December
10, 2015
BIR-IMC members attended

the Training conducted by
PMC from OP-ODESLA and
OMB in Malacanang dated
October 14, 2015.
Conducted the BIR Integrity

Workshop at the BIR
National Office with an
objective of assisting
participants to think more
analytically about the
meaning of "Integrity" and
how this impacts on their role
as a BIR Officials/employee.
Source: Internal Affairs Service
10 Expansion of Implementation of Quality Three (3) district offices was Operations

ISO Management System (QMS) as conferred ISO Certification, Group
Certification mandated under Executive Order bringing a total of ten (10) /Client Support
to Other No. 605 (Institutionalizing the ISO Certified districts. Service/Taxpayer
District Structure, Mechanisms and Service Programs
Offices* Standards to Implement the & Monitoring
Government Quality Management Division
Program). The main objective of Source: Client Support Service
EO 605 is the promotion and /TSPMD
enhancement of public sector
performance through the adoption
of International Organization for
Standardization (ISO) 9001:2008
QMS in all government agencies.
BIR established QMS for the
Business Registration Process for
both individual and non-
individual taxpayers.
11 Exchange of This program seeks to make the On EOIR, three hundred Legal Group
Information BIR more aware of the benefits of (300) Revenue Examiners /Legal Service /
(EOI) EOI on Request (EOIR) in attended the training for International Tax
Program and collecting taxes, particularly, on auditors on October 28 and Affairs Division
the cross- border transactions. Since 29 and November 24, 2015 in
implementatio information on foreign-sourced Cebu and Makati Revenue
n of the incomes derived by taxable Regions.
Foreign residents are often declared on
Account Tax voluntary basis, the BIR can
Compliance obtain information from another
Act tax authority regarding such
income.
432

Intergovernm This information will assist our There are 7 EOI cases
ental revenue officers in building up a involving 4 RDOs resulted in
Agreement case whether in a simple tax audit the detection of tax liabilities
Model 1 or a tax fraud case. amounting to around P309M
(FATCA-IGA and actual collection of
1) and FATCA is a type of EOI covered P46M.
Common by an intergovernmental
Reporting agreement with the US Internal For the CRS, an AEOI Pilot
Standard Revenue Service which calls for Project Team between BIR &
(CRS)* automatic exchange of financial DOF was created per
account information. While, CRS Department Order 99-2015.
is the automatic exchange of Conducted AEOI training on
financial information with other August 17-21, 2015 and
treaty parties. December 10-11, 2015.
Briefing of Financial Industry
The benefits of FATCA and CRS: was held on November 23
• Improved tax transparency and and December 9, 2015.
international tax compliance
(i.e. US tax law) The FATCA, PH-US
• BIR will receive data on Intergovernmental
Filipinos with bank accounts Agreement (IGA) was signed
and assets abroad helps on July 31, 2015. BIR
enforcement efforts registered with and provided
• Covers individuals and access to US International
corporations. Data Exchange System
(IDES) on September 8,
2015.
BIR is undertaking parallel

efforts for both FATCA &
CRS to deliver the following:
Legal Framework,
Implementing Regulations,
IT System for exchange,
confidentiality and data
safeguards.
Source: Legal Service/ITAD
12 Strategic The SPMS seeks to link Review of the BIR-SPMS Resource

Performance individual performance with the process, particularly on the Management
Management agency's organizational vision, individual level, have been Group
System mission, and strategic goals. With done to prepare for system /Human
(SPMS)* some adjustments, it also makes development. Resource
use of existing performance Development
evaluation and management Accomplishment of the Service/Personne
systems and links performance Project Description l Division
management with other human Questionnaire for the USAID
resource (HR) systems. on the Development of
Performance Management
System for Individual Level
was prepared.
Submitted the Performance-
Based Bonus Forced-Rank
List (PBB-FRL) to DBM.
Source: Human Resource
Development Service/ Personnel
Division
433

13 Industry This program was introduced by Discussed and revisited the Legal
Issues the Large Taxpayers Service following: Group/Large
Resolutions - beginning June, 2014 following 1. Existing regulations Taxpayers
Legal* the issuance of Revenue regarding the issuance of Service (Audit
Memorandum Order No. 9-2014 Subpoena Duces Tecum Divisions)
setting forth the guidelines in the (SDT)
processing of requests for rulings 2. Proper treatment of deemed
with the Law and Legislative denied VAT Refund
Division. For the purpose, LTS Applications
Core Group was created to 3. RR 10-76 regarding the
address and tackle any industry Imposition of Gross
tax issues and concerns of large Receipts Tax (GRT) on
taxpayers, specifically on matters offshore income
declared as "No Ruling Areas". 4. Various audit cases with
Also being discussed for legal and industy issues
resolution by the Core Group are
issues raised in an ongoing
audit/investigation requiring Source: Large Taxpayers Service
immediate action and resolution
and/or crafting of appropriate
revenue issuances or amendments
to existing issuances. The LTS
Core Group is composed of the
LTS Officials and representatives
from the Legal Group.
14 e-Lounges A venue where taxpayers can Launched the 6 RDO Operations
Facility access BIR eServices in the eLounge facilities: Group / Client
Regional and District Offices 1. RDO 16 - Cabarroguis, Support
similar to an internet café. It is Quirino Service/Public
equipped with computers through 2. RDO 69 - Virac, Information &
which the internet can be Catanduanes Education
accessed. 3. RDO 70 - Masbate City Division
4. RDO 84 - Tagbilaran City
5. RDO 85 - Catarman,
Northern Samar
6. RDO 92 - Pagadian City
Fifty-four (54) e-Lounge

facilities are operational
nationwide
Source: Client Support Service/

PIED
15 Centralization The project will monitor and Launching of DPD of RR No. Operations
of Document oversee the establishment of the 3-Tuguegarao, Cagayan and Group /
Processing to Document Processing Divisions Orientation and Change Assessment
the Regional (DPD) in all Reveneu Regions. It Management Seminar was Service/Audit
Offices will also ensure that suitable conducted on June 10, 2015. Information, Tax
policies, guidelines and Exemption &
procedures are formulated and A total of fourteen (14) DPDs Incentives
implemented to standardize were established in the Division
returns processing and encoding following offices:
in all DPDs and promote more RR 2 – CAR
efficiency and effectiveness in its RR 3 - Tuguegarao, Cagayan
434

operations. One of the Project's RR 5 - Caloocan City
tasks is to administer the RR 6 - Manila
procurement of electronic systems RR 7 - Quezon City
that will simplify and automate RR 8 -Makati City
manual processes in the DPDs to RR 9 -San Pablo City
generate a satisfactory work flow RR 10 - Legazpi City
environment and a progressive RR 14 - Tacloban City
production rate. RR 15 - Zamboanga City
RR 16 - Cagayan de Oro City
RR 17 - Butuan City
RR 18 - Koronadal City
RR 19 - Davao City

AITIED
16 Accounts A web-based system that will This system was deployed to Operations
Receivable enable the establishment of the following offices: Group /
Management accurate Accounts 1. Selected Offices in the Collection
System Receivable/Delinquent Accounts National Office (ARMD, Service/Accounts
(ARMS) (AR/DA) database of the BIR Offices under the LTS, Receivables
across all offices for easy Offices under the Monitoring
monitoring/tracking and timely Enforcement and Division
generation of required Advocacy Service;
correspondences and reports. The 2. All RDOs and selected
system likewise provides divisions under Revenue
functionalities for online Region Nos. 5,6,7 and 8
generation of tax clearances (except island RDOs); and
required by taxpayers for bidding 3. Revenue Region Nos. 4
and other purposes, processing and 9 (Soft Launch)
and monitoring of installment
agreements, actions on application
for compromise Source: Collection Service/
settlement/abatement, the Accounts Receivables
Monitoring Division
enforcement of summary
remedies from issuance and
execution of WDL, as well as the
disposition/auction of seized
real/personal properties for
conversion into cash/revenues.
17 Re- Refers to the pilot implementation Issued Revenue Project

engineering of and possible expansion of re- Memorandum Order No. 19- Management and
other Business engineered business processes 2015 (BIR Audit Program) Implementation
Processes thru the following: VAT Audit Service/
Program, Arrears Management Operations
Program and Compliance Group/Collection
Improvement Strategy. and Assessment
Service
VAT Audit The program aims to increase A. Proposed
Program revenue collection and enhance institutionalization of
voluntary compliance by focusing VAP
on risk-based and issue-oriented A revised business plan for
audit of VAT liabilities and to the institutionalization of the
broaden the tax base by VAT Audit Program was
identifying buyers and suppliers submitted to the Department
of goods and services subject to of Budget Management for
VAT.
435

approval. This business plan

includes the source of
plantilla items for the
proposed VAT Audit Unit
under the Large Taxpayers
Service and VAT Audit
Sections in the Assessment
Divisions of the Metro
Manila Regional Offices.
The proposal as to personnel

complement is in process
with reference to the List of
Approved Staffing Pattern
under Executive Order No.
366 from the Personnel
Division.
B. Conduct of issue-based on
VAT liabilities
A memorandum dated
August 28, 2015 of the
Commissioner was issued to
all Regional VATAG Heads
as regards the conduct of
issue-based audit on selected
VAT liabilities under VAP.
This aims to facilitate the
reporting of cases within the
prescribed 60 to 90-day
period. As its pilot
implementation, each RO is
required to conduct an issue-
based audit approach on ten
(10) out of thirty (30) cases
maximum workload.
C. Conduct of issue-based on
VAT liabilities
Regional VATAG (RR Nos.
5,6,7 and 8)
No. of Amount
Cases
Collection 1,670 1,586.05 M
Assessment 284 6,630.34 M
Total 1,954 8,216.39 M
LTS VATAG
No. of Amount
Cases
Collection 78 885.31 M
Assessment 9 1,939.12 M
Total 87 2,824.44 M

Assessment Programs Division
436

Institutionali- To centralize the handling and Submitted the Macro Project
zation of management of tax arrears by Business Case re: Management and
Arrears creating the Arrears Management Institutionalization of Arrears Implementation
Management Team (AMT), a pool of Seizure Management teams (AMTs) Service/
Team (AMT) Agents in each of the Metro as a Section in the Collection Operations
in the Manila Regions was authorized Division of the regional Group/
Regional by the Commissioner to pilot the Offices. Assessment
Office (RO) centralized administration and Service
management of accounts Drafted the functions of
receivables and delinquent proposed new offices: (i.e
accounts at the Regional Arrears Management Section
Collection Division. in the Regional Office, Tax
Clearance Section and
Forfeited Assets Management
Division in the National
Office).
The results of evaluation
were presented to the
concerned Metro Manila
Regional Directors,
Collection Division Chiefs,
AMT Heads and Seizure
Agents and submitted the
final evaluation reports to
Project Sponsor and PMIS.
The BIR collected P3,075.49

Million for this project.
Source: PMIS/Collections
Service
18 eBIR Forms The eBIRForms was developed Several issuances were issued Operations
primarily to provide taxpayers such as: Revenue Regulation Group (Client
with an alternative mode of No. 5-2015 was issued on Support Service)
preparing and filing tax returns. January 9, 2015 regarding the / Information
Through the use of downloadable Amendment to RR 6-2014 Systems Group
eBIRForms Software Package and Imposition of Penalties (Information
(also known as the Offline for Failure to File Returns Systems
Package), taxpayers and Under the Electronic Systems Development and
Accredited Tax Agents will be of the BIR and Revenue Operations
able to fill-up tax returns offline Memorandum Circulars Nos. Service)
and submit it to the BIR through 12 to 22 and 26- 2015 for
the Online eBIRForms System. additional guidelines and
procedures.
It is a package application More than seven million

covering 36 BIR Forms comprise 7,000,000 tax returns were e-
of Income Tax Returns, Excise filed using eBIRForms for
Tax Forms, VAT Forms, year 2015. Majority of
Withholding Tax Forms, DST taxpayers are using eBIR
Forms, Percentage Tax Forms, Forms to prepare their returns
ONETT Forms and Payment for ease and convenience.
Forms.
Source: ISG (ISPMS)
437

19 Collection A web-based system which Issued Revenue Operations
Reconciliation provides facility the automated Memorandum Order No. 8- Group
System (CRS) reconciliation of internal revenue 2015 dated March 12, 2015 (Collection
tax collection between the records Prescribing the Policies, Service) / Project
of the BIR with that of the Bureau Guidelines and Procedures in Management and
of Treasury (BTr), as well as the the Implementation of the Implementation
data from Authorized Agent CRS. The system was re- Service
Banks (AABs) and the Bangko launched in revenue Region
Sentral ng Pilipinas (BSP). No. 8 - Makati
Likewise, the system enables all
the concerned national, regional
and district offices to easily
identify possible sources and/or Source: PMIS/Collection Service
causes of discrepancies in the (RAD)
collection data and reduces the
need for manual reconciliation
thereof. It also streamlines and
expedites the tax collection
reconciliation processes for more
speedy and efficient solution of
identified discrepancies, thereby
ensuring the integrity of the
collection data reported by the
Bureau and the different
implementing offices under it.
20 Electronic This is an on-line application The Bureau processed and Large Taxpayers
Authority to system for the Authority to issued 21,394 ATRIGs Service
release Release Imported Goods through the National Single
Imported (ATRIG), which automates the Window (NSW) facility,
Goods processing and issuance thereof. generating an excise tax
(eATRIG) collection of P41,032.76
Million.
Source: Large Taxpayers Service
21 Increase in This program aims to increase the Total No. of new registrants Operations
Taxpayer taxpayer base with minimal from January to December Group/Client
Database expenditure, thus, annually 2015 is 166,874 Support
(Registered increase the number of registered Service/Taxpayer
Taxpayers) taxpayers that are fully compliant. Service Programs
Increase in the number of & Monitoring
registrants can be attained thru Division
different initiatives like: massive Source: Client Support Service/
information campaign, taxpayer TSPMD
education, improvement in the
registration process, etc
438

E-Services
Electronic Allows taxpayers to electronically Posted a total of 25,621 eFPS Operations

Filing and process and transmit tax return activated users for CY 2015. Group/Client
Payment information including attachments Support
System (eFPS) and taxes due thereon to the Service/Taxpayer
government over the internet Service Programs
through the BIR website Source: Client Support & Monitoring
www.bir.gov.ph Service/TSPMD Division
Electronic The eDST is a secured web-based For the period January to Operations
Documentary system that allows taxpayers to December 2015. DST Group/Collection
Stamp Tax imprint / affix secured collection thru this facility Service
System (eDST) documentary stamps on taxable amounted to P33.938 Billion
documents, using off-the-shelf with 743 enrollees.
1200 dpi laser printer. It was
launched in October 2009 as a
tool through which the Bureau can
audit and monitor taxpayers' DST Source: Collection Service
payments and utilization, as well
as affixtures to taxable documents
through system generated reports.
Electronic A web-based application built to Collection from eLAs Operations

Letter of enforce management and control amounted to Group/
Authority of audit conducts as well as to P3,557,530,435.52 No. of Assessment
Monitoring monitor the workload of eLAs issued for 2015: 27,397 Service/
System concerned case/revenue officer's Notes: Assessment
(eLAMS) audit. 1. Data were extracted from Performance
eLAMs by BID Monitoring
2. Collection from eLAs Division
were based on the
Collection Date from
January to December
31,2015
Source: Assessment Service/APMD
Electronic An online facility via email where As of December 2015, the Operations
Complaint taxpayers can lodge their Bureau received a total of 49 Group/Client
(eComplaint) administrative complaints against complaints via email facility Support
BIR employees as well as against Service/Public
other taxpayers who do not issue Source: PIED Information &
official receipts or commit tax Education
fraud. Division
*Revenue Memorandum Circular No. 3-2015 re: CY 2015 Priority Programs
439
DEPARTMENT OF HEALTH
OUTCOME 1: IMPROVED FINANCIAL RISK PROTECTION
NATIONAL HEALTH INSURANCE PROGRAM
The National Health Insurance Program of the Philippine Health Insurance Corporation
(PhilHealth) covered 92 percent or 93.45 million principal members and dependents of the
country’s 2015 projected population of 101.45 million. Of this total coverage, 45.41 million
principal members and dependents were enrolled as national government sponsored
members as of December 31, 2015.
Notes:
The number of indigent members and dependents is based on the Listahanan database of Department of Social
Welfare and Development and is subject to further validation. The 2015 projected population of 101,449,681 is based
on the May 1, 2010 National Statistics Office Census.
Source: PhilHealth
PHILHEALTH BENEFITS
Expanded Z Benefit Package for Colon and Rectum Cancers
In 2015, PhilHealth expanded the coverage of the Z Benefit Package to include the treatment
and management of colon and rectum cancers.
For the entire treatment course of colon cancer, the package rate is Php150,000 for Stages I
and II (low risk), and Php300,000 for Stages II and III (high risk). PhilHealth also pays
Php400,000 for pre-operative clinical Stage I with post-operative pathologic Stages II-III
using the linear accelerator as mode of radiotherapy. The benefit package becomes
Php320,000 when cobalt is used as the mode of radiotherapy for the same stages.
440
For the entire treatment course of rectum cancer, PhilHealth pays Php150,000 for Stage I
(clinical and pathologic). Clinical stages II-III are covered at Php400,000 when the linear
accelerator as mode of radiotherapy is used and at Php320,000 when the cobalt mode of
radiotherapy is used.
Point of Care (POC) Enrollment Program
Piloted in eight government hospitals in 2013, the POC enrollment program was continued
and expanded by PhilHealth in 2015. Class C-3 (near poor) and D (poor) non- members and
members with insufficient qualifying contributions who are confined in government
hospitals may be enrolled as health care institution/facility-sponsored members. Their
premium contributions are borne by the government facility, provided that they are certified
poor by the medical social worker at the time of admission. As of December 2015, a total of
366 health care facilities were participating in the program.
Enhanced Primary Care Package (TSeKaP)
In the early part of 2015, PhilHealth launched an enhanced Primary Care Benefit Package or
“Tamang Serbisyo sa Kalusugan ng Pamilya” (TSeKaP). This expanded the Primary Care
Benefit 1 and the Primary Care Benefit 2 implemented in 2012 and 2014, respectively.
Included in TSeKap are drugs and medicines for ten common conditions that can be
managed at a primary care level: asthma, acute gastroenteritis, upper respiratory tract
infection, pneumonia, urinary tract infection, diabetes mellitus, hypertension, dyslipidemia,
deworming, and ischemic heart disease.
Electronic medical records are generated for TSeKaP by provider-facilities whose IT

systems are connected to PhilHealth.
Extended Dialysis Coverage
Because of the increased incidence of kidney diseases among Filipinos, PhilHealth has
expanded its coverage for hemodialysis from 45 to 90 sessions per year. With this
expansion, out-of-pocket expenses for dialysis treatment of PhilHealth members and their
qualified dependents are reduced considerably.
OUTCOME 2: GREATER ACCESS TO HEALTH CARE SERVICES
In 2015, the Department took steps to upgrade facilities to meet the Department of Health’s
licensure and PhilHealth’s accreditation requirements.
441
HEALTH HUMAN RESOURCE DEPLOYMENT PROGRAM
In 2015, the Department continued to deploy physicians, nurses, midwives, and other health
professionals to communities that needed them most. For the first time, dentists and medical
technologists were included in the deployment.
The year also saw the start of the two-year Public Health Associate Deployment Project.
Forty-four priority provinces were selected as focus geographical areas. In these areas,
public health associates were deployed to work on monitoring and evaluation mechanisms to
ensure timely and adequate logistical support for universal health care policy and program
implementation.
Health professionals were also sent to doctorless areas in identified fifth and sixth class
municipalities to support various programs such as the Accelerated Sustainable Anti-Poverty
Program, Whole of Nation Initiative, and Bottom-Up Budgeting, among others.
OUTCOME 3: PUBLIC HEALTH MILLENIUM DEVELOPMENT GOALS (MDGs)

ACHIEVED
In 2015, the Department intensified its efforts to improve health outcomes among priority
vulnerable populations nationwide through the Universal Health Care High Impact Five (Hi-
5) strategy. The regional operations strategy has as its theme, “Sa Tuwid na Daan,
Kalusugang Tuloy-tuloy para sa Pamilyang Pinoy,” and focuses on the five critical areas of
maternal care, infant care, child care, HIV/AIDS, and service delivery network.
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MDG 4: REDUCE CHILD MORTALITY
Expanded Program on Immunization (EPI)
As part of the essential public health program for the achievement of MDG 4, the Expanded
Program on Immunization conducted a nationwide immunization campaign for infants in
2015. 83% of the targeted population fully immunized (Source: DOH).
National School-based Immunization Campaign
The National Immunization Program launched a national school-based immunization

campaign from August to October 15, 2015. With the theme “Bakuna Para sa Kabataan,
Proteksiyon sa Kinabukasan,” it provided free immunization against Measles Rubella and
Tetanus-diphtheria to Grades 1 and 7 students enrolled in public schools.
Micronutrient Supplementation
Providing essential vitamins and minerals such as Vitamin A capsules and iron supplements
to children under five is a strategy against severe nutritional deficiencies.
Percentage of Children given Vitamin A and Iron Supplements
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Mass Deworming
In July 2015, the Department of Health together with the Department of Education
conducted Oplan: GoodBYE Bulate, a deworming program for Kinder to Grade 6 students.
Reach and Innovative Desired Rational Scores (RAIDeRs)
Hi-5’s Reach and Innovative Desired Rational Scores intensified the Department’s efforts to
reach as many beneficiaries as possible and increase the number of fully immunized
children. With the poor vulnerable population as a priority, it focused on tracing defaulters
in vaccination and referred them to the different health services needed.
MDG 5: IMPROVED MATERNAL HEALTH
The Department continues to implement and reinforce the three-pronged strategy of

Women’s Health and Safe Motherhood: deployment of skilled human resources for health,
construction and development of health facilities to support the referral system for basic and
comprehensive emergency obstetric care, and reproductive or family planning services.
High impact breakthrough activities in regions nationwide were conducted to advocate for
(1) Tama, Sigurado, Sapat, Makabuluhang Information System (TSISMIS), a program to
ensure positive health outcomes for mothers through regular case monitoring of pregnant
women and defaulters, including provision of essential, accurate and timely information on
healthy practices; and (2) RAIDeRS, a program which seeks defaulters in breastfeeding
practices for counselling.
These activities were carried out in cooperation with officials and other health stakeholders
in local government units.
The MDG target for maternal mortality rate (MMR) in 2015 was 52 deaths per 100,000 live
births. The estimated MMR for the Philippines is 114. Through Hi-5, intensified efforts
were undertaken in the areas of advocacy, community involvement, male participation, and
women empowerment to improve this figure.
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MDG 6: COMBAT HIV/AIDS, MALARIA, AND OTHER DISEASES
HIV/AIDS
Though HIV prevalence remains at less than 1.0 percent, DOH explored various approaches
to monitor HIV cases.
I-ACT - I A-cknowledge, C-hoose to be tested, T-ake action to fight campaign against

HIV was launched on December 2015. The social media – inspired photo-booth
campaign aims to promote HIV testing among the high risk key population of Filipinos
15 to 24 years of age. This age group comprised 186 out of 651 or 29 percent of new
reported cases of HIV/AIDS.
H.I.V/A.I.D.S - Harmonious Innovations for Vulnerable populations, Advocacy and

Intensified Diagnostic Treatment Strategy is part of the Hi-5 strategy used to increase the
number of counseled, screened, and tested against HIV. Activities included enhancement
of HIV testing facilities, deployment of peer educator or counselor in vulnerable/target
areas, as well as peer recruitment or walk-in system to promote diagnostic testing and
treatment.
23RD MEETING OF THE ASEAN TASK FORCE ON AIDS - Hosted by Assistant

Secretary Dr. Gerardo V. Bayugo on July 28, 2015, the meeting discussed the efforts and
actions taken by the ASEAN countries to halt and reverse the spread of HIV/AIDS
and to provide universal access to treatment of HIV/AIDS
Tuberculosis (TB)
The Department continues its effective fight

against TB by tracking its indicators. The
Philippine target rate has now been set at 90
percent of TB case detection (all forms) and TB
treatment success (all forms).
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DISEASE-FREE ZONE INITIATIVES: RABIES, MALARIA, DENGUE,

FILARIASIS
Rabies
Ten municipalities were declared rabies-free in 2015 in addition to the twenty three areas
reported in 2014. All of the 544,992 reported cases as of November 2015 were given post-
exposure prophylaxis against rabies. Efforts are now in place to reach the goal incidence rate
of 1.5 cases per million population by 2016.
Malaria
In 2015, 8,160 malaria cases were reported in the country, 57 of which were contracted
outside the Philippines. In the same year, the number of malaria-free provinces totaled 32.
These provinces reported no local malaria infection in the last five years and maintained
strong surveillance and response for the prevention of disease within their respective areas.
By the end of 2017, three more provinces are targeted to be declared as malaria-free. Also,
inter-regional collaboration centers have been established to support the efforts of regions
and provinces in achieving and sustaining their malaria-free status.
Dengue
Deaths from dengue cases remained very low at 598 deaths or less than 1 percent of
recorded dengue cases, equivalent to a case fatality rate of 0.30 percent. Dengue Tetravalent
Vaccine is now registered with the Philippine Food and Drug Administration and will soon
be available in the market. The vaccine is approved for the prevention of disease caused by
dengue virus serotypes 1, 2, 3, and 4 in individuals 9 to 45 years of age living in endemic
areas.
Brigada Kalinisan Para sa Kalusugan - Aksyon Barangay Kontra Dengue

In October 2015, The Department of Health together with the Department of Education,
Department of Social Welfare and Development, Department of Interior and Local
Government, and the local government unit of Marikina strengthened their partnership for
the anti- dengue advocacy campaign in schools and communities. Among the highlights of
the campaign was the installation of insecticide treated screens in public schools in Marikina
City
Filariasis
The National Filariasis Elimination Program continued with its intensified efforts to
eradicate filariasis by 2018. The number of filariasis-free provinces increased from 27 in
2014 to 33 in 2015. The latest additions to the list were the provinces of Maguindanao,
Zamboanga del Sur, Zamboanga Sibugay, Davao Oriental, Sarangani, and Agusan del
Norte.
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EMERGING AND RE-EMERGING DISEASES
Ebola
As of April 2015, no Ebola cases were reported in the country. However, precautions have
been taken through intensive screening and a mandatory 21- day quarantine of overseas
Filipino workers and travellers coming in from the three heavily affected countries with
widespread transmission: Guinea, Liberia, and Sierra Leone.
Issuances and advisories were issued by the Department on ebola virus disease (EVD).
Training was provided on both hospital and community management of EVD to ensure the
health and safety of the public, especially the healthcare providers who are directly exposed
to possible positive patient encounters. A total of 744 participants attended the training from
various institutions and organizations
Mers-Corona Virus (MERS-CoV)

To ensure public safety, DOH takes necessary measures for the prevention and containment
of MERS-CoV in the country. The Bureau of Quarantine and all other Department offices
are directed to maintain surveillance activities and instruct travellers coming from MERS-
CoV affected countries (Arabian Peninsula, South Korea, and China) to adhere to the
observation of self-monitoring and home quarantine.
Travellers are advised to seek immediate consultation at the nearest health facility once they
experience any symptoms of MERS-CoV.
The Department has also created Task Force MERS-CoV to heighten the awareness and
vigilance of Filipinos against the disease.
In February 2015, the Philippines reported its first laboratory-confirmed case of MERS-CoV
to the World Health Organization. The patient was admitted to the Research Institute for
Tropical Medicine and no other case has since been identified.
DISASTER PREPAREDNESS AND A CHANGING CLIMATE
National Disaster Consciousness Month

The Department observed the National Disaster Consciousness Month in July 2015 with
activities around the theme “Pamilya at Pamayanang Handa, Katuwang sa Pag-unlad ng
Bansa.” The Health Emergency Management Bureau spearheaded the earthquake evacuation
drills and subsequent fire drills in the Department’s offices. Officials and employees of the
DOH central office as well as hospital personnel from Dr. Jose Fabella Memorial Hospital,
San Lazaro Hospital, and Jose Reyes Memorial Medical Center took part in the metro-wide
earthquake drill.
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Climate Change Conference

In March 2015, a three-day National Conference on Climate Change and Water Safety for
Health was conducted by the World Health Organization in collaboration with the
Department of Health. In support of its theme “Water Safety: a Sustainable Measure of
Health Adaptation for Climate Change,” the conference showcased emergency response and
recovery and preparedness activities for water safety as part of climate change and health
adaptation. The conference featured the recognition of water utilities with water safety plans
reviewed by the Department and the signing of a declaration of support by participants.
OUTCOME 4: IMPROVED HEALTH GOVERNANCE
ISO Certification
As of December 2015, 45 out of 70 Department of Health hospitals were ISO certified.
ISO CERTIFIED DOH HOSPITALS

1. National Kidney and Transplant Institute 24. Western Visayas Sanitarium
2. Quirino Memorial Medical Center 25. San Lorenzo Ruiz Women’s Hospital
3. Philippine Children’s Medical Center 26. Valenzuela Medical Center
4. Ilocos Training and Regional Medical Center 27. Southern Isabela General Hospital
5. Region 1 Medical Center 28. Talavera Extension Hospital
6. Rizal Medical Center 29. Cotabato Regional Medical Center
7. Mariano Marcos Memorial Hospital and Medical 30. Saint Anthony Mother and Child Hospital
Center
8. Paulino J. Garcia Memorial Research & Medical 31. Baguio General Hospital and Medical
Center Center
9. Bataan General Hospital 32. Veterans Regional Hospital
10. Eversley Child Sanitarium 33. Talisay District Hospital
11. Jose B. Lingad Memorial Regional Hospital 34. Western Visayas Medical Center
12. East Avenue Medical Center 35. Tondo Medical Center
13. Corazon Locsin Montelibano Memorial Regional 36. Luis Hora Memorial Hospital
Hospital
14. Research Institute for Tropical Medicine 37. Dr. Jose Fabella Memorial Hospital
15. Bicol Medical Center 38. Batanes General Hospital
16. Mariveles Mental Hospital 39. Zamboanga City Medical Center
17. Bicol Sanitarium 40. Dr. Jose N. Rodriguez Memorial Hospital
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ISO CERTIFIED DOH HOSPITALS (continued)

18. Southern Philippines Medical Center 41. Far North Luzon General Hospital and
Training Center
19. National Children’s Hospital 42. San Lazaro Hospital
20. Batangas Medical Center 43. Northern Mindanao Medical Center
21. Bicol Regional Training and Teaching Hospital 44. Cagayan Valley Medical Center
22. Vicente Sotto Memorial Medical Center 45. Don Jose Monfort Medical Center and
Extension Hospital
23. Don Emilio Del Valle Memorial Hospital
National Health Summit
The National Health Summit held on August 14, 2015, at Marriott Hotel in Pasay City
brought together local chief executives, health officers, and representatives of the non-
government and private sectors. The event which was co-sponsored by the European Union
recognized the support network needed for Hi-5 implementation. Department of Health
Secretary Dr. Janette Garin, Department of Education Secretary Brother Armin Luistro, and
Department of Interior and Local Government Manuel Roxas II signed a Memorandum of
Understanding for the provision of school- based barangay health stations and dental buses
to selected areas nationwide.
Local Government Unit Awards
The Department of Health awarded exemplary provinces, cities, and municipalities with
cash prizes in recognition of their valuable contribution to the achievement of universal
health care. These local government units were conferred the awards of Excellence in
Kalusugan Pangkalahatan, Red Orchid, National Sandugo, and Disease-Free Zone. The
awarding ceremony was held at SMX Convention Center, Pasay City on February 20, 2015.
Forum 2015
For the first time, the P h i l ippine s hos te d the Global Forum of the Council on Health
Research for Development (COHRED). The four-day event held at the Philippine
International Convention Center from August 24 to 27, 2015, had as its theme, “People at
the Center for Research and Innovation for Health,” and as its hosts, COHRED, the
Department of Science and Technology, and the Department of Health. Participants included
executives from the three host institutions as well as representatives of academic institutions,
international agencies, and government and private organizations. Among the topics
discussed were emergencies and disasters, research and innovation, and food and nutrition.
449
World Health Organization Executive Board
Secretary of Health Dr. Janette Loreto-Garin represented the Philippines as a member of the
WHO Executive Board. The country was selected to serve for a three-year term from 2015
to 2018. The Executive Board functions as the implementer of the World Health Assembly’s
decisions and policies. It also provides technical advice and facilitates the assembly’s work.
National Barangay Health Workers Convention
Fifth Asia Pacific Economic Cooperation (APEC) High Level Meeting 5 on Health and
the Economy
The fifth APEC High Level Meeting 5 held at the Waterfront Hotel in Cebu City on August
30-31, 2015 gathered health ministers, as well as public and private stakeholders to discuss
the Healthy Asia-Pacific 2020 Roadmap. The group agreed that implementing the “Healthy
Asia Pacific 2020 Initiative” would mitigate threats to the Asia-Pacific Region’s people,
trade, and economic security.
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DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
HIGHLIGHTS OF ACCOMPLISHMENTS ALONG MAJOR

FINAL OUTPUTS
A. MFO 1: SOCIAL PROTECTION POLICY SERVICES

1. Policy Formulation
a. Issued policies and guidelines
1) 10 Memorandum Circulars
2) 8 Administrative Orders
3) CY 2017 to 2019 DSWD GAD Agenda – Sustains the GAD
mainstreaming effort (through client-focused and organizational-
focused initiatives) within the Department
b. Mainstreaming Social Protection

1) Successfully forged with the Department of Interior and Local
Government the Joint Memorandum Circular No. 1 (JMC #1), series of
2015, pertaining to the Use of the Social Protection Handbook.
2) Twenty four (24) Executive Orders issued by five (5) Provinces and 19
municipalities for the Creation of Provincial and Municipal Social
Protection Teams.
3) Support from three (3) Provinces to their municipalities by providing
additional funds to ensure saturation in the Roll-out of the Social
Protection Handbook.
4) One (1) LGU was able to conduct the Family Risk and Vulnerability
Assessment, a tool in the Social Protection Handbook, covering 10% of
the household population or 900 households in 19 barangays.
c. Promoted the Department’s proposed priority legislative measures through

the preparation and submission of 10 Position Papers to concerned
Committees in both Houses of Congress on a range of issues.
d. Crafted the Department’s Research Agenda, 2016 – 2022, and managed

three (3) research studies, to wit:
1) ASEAN Active Ageing Project (under ASEAN-ROK Fund) outlining
programs and services that respond to the concerns of the ageing
population in the ASEAN region;
2) Assessment of the Behavioral and Social Outcomes of Pantawid Pamilya
Program (under DFAT TA 70507) examining the behavioral changes
brought about by the household’s participation in the program; and
factors affecting the sustainability of the education and health results,
and expected behavioral outcomes; and
3) Pantawid Pamilyang Pilipino Program’s Contribution to the Local
Economy in the Bicol Region (under DFAT TA 70507) that intends to
provide better understanding to the potential link of the Pantawid
Program to economic growth and poverty reduction using case studies of
Bicol region’s experience on the Program.
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e. Completed the Report on the Baseline Information on the Functionality of

Local Social Welfare and Development Office (LSWDO) following the
assessment of 1,035 local government units (LGUs) in the previous year.
f. Technical inputs to United Nations (UN) and Association of Southeast

Asian Nations (ASEAN)-related documents
2. Strategy Management. For 2015, the Department focused its efforts for the
Performance Governance System (PGS) Proficiency conferral of the
Department in October by ensuring that the proficiency elements are
satisfactorily complied with.
3. Monitoring and Evaluation

a. Deployment of the Unified Results Based Monitoring and Evaluation
(URBME)
b. Development of the 2016-2021 Evaluation Agenda which institutionalized a
results-based management of the Department’s programs and projects;
c. Encoding of 2,906,647 Social Welfare Development Indicators (SWDI)
Baseline Assessment score sheets indicating the levels of well-being of the
following number of Pantawid Pamilya families:
Level Number of families %
Level 1 (Survival) 116,244 4.00

Level 2 (Subsistence) 2,469,762 84.97
Level 3 (Self-Sufficiency) 320,641 11.03
d. Spot checks on the conduct of the SWDI Baseline Assessment to ensure

accuracy of data collected and encoded in the information system.
4. Information Management. The Department developed and maintained

interoperable information systems for the coordinated implementation of social
protection programs/projects/services, and administrative support services as
follows:
a. DSWD Data Warehousing System – This refers to an online data sharing
and reporting system.
b. DSWD Map Viewer – The new and improved DSWD Map Viewer is a one-
stop, interactive, and responsive online map viewer for all data users, agency
partners, and stakeholders.
c. 4Ps Payment Modules - is undergoing development (September 2015 to
January 2016) based on policy changes which shall include Business
Process Reengineering (BPR) and Reassessment of Pantawid Business
Processes and Management Information System (MIS)
d. Legislative Agenda Information System (LAIS) – facilitates access of the
general public to the position papers prepared by the Department on
legislative measures concerning the basic sectors it serves.
e. Alternative Family Care Information System (AFCIS) – It houses data on
the profile of children and adoptive/foster parents/families, data and status of
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transactions, summaries and reports.

f. Social Welfare and Development Information System (SWDIS) – The
SWDI IS [Online] as a tool for case management and to identify the needs
and capabilities of Pantawid Pamilya beneficiaries allows the Department to
access household information from the Pantawid Pamilya database; tally and
compute SWDI Scores; and securely submit data. Additionally, the SWDI
Mobile Application is being developed to expand accessibility and delivery
of services in operations.
g. Enhanced Unified Results-Based Monitoring and Evaluation System
(URBMES) – continuous development of the ICT component for monitoring
and evaluation of the different targets and accomplishments of all DSWD
offices.
h. Electronic Personal Data Sheet (ePDS) for FO VI - It captures Personnel
information based on Personal Data Sheet (PDS) and generates data
summaries about employees. Status: Operational and partially deployed.
i. Continual enhancement of Information Security Management System and
Business Continuity Management, and Optimization of Information and
Communications Technology (ICT):
1) Security of Information Systems
2) Business Continuity Management System
3) Implementation of Information Technology Infrastructure Library
(ITIL)-based IT Operation Portal.
5. Listahanan. The DSWD embarked on the 2nd round of assessment, updating

the National Household Targeting System for Poverty Reduction (NHTS-PR),
also known as Listahanan, database of poor families. The result of this second
round of assessment indicated 15,760,463 families or 103 percent of the 15
million household target that have already been assessed. The initial list of
poor generated from this number of households was posted in barangays and
municipal/city halls for validation of the public.
B. MFO 2: SOCIAL PROTECTION SERVICES

1. Convergence Strategy. Capacity building for C/MAT Leaders were conducted
while intensifying partnership-building through Regional Directors Consultation
Workshops (RDCWs).
2. Social Technology Development

a. There were two (2) LGUs that were able to replicate/adopt the social
technologies particularly in Region XII. General Santos City in South
Cotabato and Tacurong City in the Province of Sultan Kudarat released their
respective Sangguniang Panlungsod Resolutions; while Kabacan in the
Province of North Cotabato inked two (2) Memorandum of Agreement
(MOA) with the DSWD. Some of these social technologies are the
Comprehensive Interventions Against Gender-based Violence (CIAGV);
Comprehensive Delivery of Reintegration Services for Deportees,
Repatriates and Irregular Overseas Filipino Workers (OFWs); Gender
Responsive Cases Management (GRCM) Model; Aruga at Kalinga sa
Barangay; Sheltered Workshop for Senior Citizens and Persons with
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Disability (PWDs); and Care and Support Services for Persons Living with
human immunodeficiency virus (PLHIV).
b. Research on the Implementation of the National Family Violence

Prevention Program which aims to revisit the relevance of the program of its
responsiveness and comprehensive intervention. The results revealed that
domestic violence against women and children cases still increases from
2004 to 2015 wherein most perpetrators are their husbands, partners, and
their own relatives.
c. Research study on the Development of SWD Model of Intervention for

PWDs aiming to generate additional information on the situation of PWDs.
Community participatory activities have been conducted in Regions NCR,
V, and IX.
d. Developed the project design and concept of eight (8) social technologies,
namely:
1) #StopChildPornph Project – ensures massive preventive approach to the
growing number of at-risk children and youth in the internet both offline
and online.
2) Strengthening and Empowerment of OFW Families Towards Family
Preservation
3) Support to Children in Need of Caregivers
4) Reporting System and Prevention Program for Elderly Abuse Cases
(ReSPPEC)
5) Intensive Juvenile Intervention for Children in Conflict with the Law
(IJI-CICL)
6) Community Action and Resources for Accessible, Better and Leverage
Environment (CARe-ABLE)
7) Development of the Child Development Service Manual (formerly Day
Care Service)
e. Implemented and monitored five (5) on-going Social Technologies, namely:

1) Strategies toward Acceptance, Reintegration, and Transformation
(START)
2) Sustaining Interventions in Poverty Alleviation and Governance
(SIPAG) Project
3) Comprehensive Program for Street Children, Street Families and IPs,
especially Bajaus
4) Sama-Bajau Localized Interventions and Learning Approach for Holistic
Improvement (SALINLAHI)
5) Comprehensive Rehabilitation Program for Victims of Torture and
Enforced Disappearance
f. Completed four (4) social technologies as follows:

1) Music and Art Therapy Program (MATP) for Persons with Disability
(PWD) specifically with Autism Spectrum Disorder (ASD)
2) Enriched Comprehensive Interventions Against Gender-based Violence
(CIAGV)
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3) Team Balikatan and Rescue in Emergency (TeamBRE)

4) Cash Transfer / Cash Voucher for Affected Families in Emergencies
(CTCVAFE)
3. Pantawid Pamilyang Pilipino Program (Pantawid Pamilya). The program

investing in human capital development through health and education, has
expanded to 41,519 barangays in all 144 cities and 1,483 municipalities in 80
provinces nationwide. As of CY 2015, there are 4,377,762 active households
registered in the program or 98.67% of this year’s target of 4,436,732
households. There are 89.21% female beneficiary grantees while 10.79% are
male. Most of the female grantees are from the ARMM Region.
Output Indicator Target Actual

No. of household beneficiaries 4,377,762
4,436,732
Regular conditional cash transfer (CCT) 4,139,728
Modified 238,034
CCT
4. Sustainable Livelihood Program (SLP). The Sustainable Livelihood Program
(SLP) is a community-based capacity building program implemented through
the Community- Driven Enterprise Development approach, which equips
program participants to actively contribute to production and labor markets by
looking at available resources and accessible markets.
As a result, the program served a total of 507,607 family beneficiaries or 34

percent higher than the 378,822 target families. The MD track covered 75
percent or 380,068 family beneficiaries while the EF track covered 25 percent
or 127,539 family beneficiaries.
5. KALAHI-CIDSS National Community Driven Development Program (KC-

NCDDP). A total of 2,088,029 households benefitted from 8,990 completed
CDD projects. Basic social services remains to be the priority sub-projects of
communities. In addition, barangay assemblies were attended by at least 66% of
Pantawid Pamilya household beneficiaries. During its implementation, at least a
total of 493,629 community volunteers (CVs) have been trained on situational
assessment, needs identification, project proposal preparation, project
implementation and management, and local planning and resource allocation.
6. Supplementary Feeding Program. For the 5th Cycle School Year (SY) 2015-
2016 total of 1,584,591 day care children or 77.17% of the 2,053,383 targets
were provided with supplementary feeding during the period. The program
provides hot meals to children currently enrolled in LGU-run day care centers
and supervised neighborhood play for 120 days. It is implemented by school
year, thus, unserved beneficiaries for the current year will be served on the first
quarter of 2016.
Meanwhile, the Kalahi-CIDSS has also launched a four-module community-

based complementary feeding to a total of 140 children in: San Jose,
Occidental Mindoro (120 children aged 1-3 years old); in Dinalungan, Aurora
(90 day care children); Calatagan, Batangas (60 beneficiaries); Dasmarinas,
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Cavite (120 beneficiaries), and Pililla, Rizal (60 beneficiaries aged 3-6 years
old).
7. Social Pension Program. For CY 2015, a total of 877,198 social pensioners or

93.36% out of the 939,609 target (eligible 65 years old and above) in all regions
have already been provided with cash grants. The conduct of payouts is still on-
going in all Regions as of this date to cover all the remaining beneficiaries for
CY 2015. Other delivery schemes were also implemented to further improve
and facilitate pay-outs though: Fund Transfer to LGUs; FDO-SDO Pay-out;
Door-to-Door Delivery, and Door-to-Door Service Provider by Banks.
8. Programs/Services in Residential and Non-Residential Facilities. The

Department served a total of 23,980 clients in its 71 residential and non-
residential facilities that cater to the vulnerable and disadvantaged children,
youth, women, senior citizen, persons with disability, and individual and
families in crisis situation.
The 64 residential centers provided protective services to 22,889 clients

indicating a 126.68% accomplishment rate against the 18,068 target.
Table 1. Number of Clients Served in Residential Care Facilities, January to

December 2015
No. of Clients
Sector Residential Facilities Served
Reception and Study Center for Children (RSCC) 798
Haven for Children 210
Lingap Center 75
Nayon ng Kabataan 559
Children in Need
of Special Marillac Hills 241
Protection Home for Girls 800
(CNSP) Haven for Women and Girls 299
Non-Children Center:
Haven for Women 462
AMOR Village (Non-PWD) 52
Jose Fabella Center 891
Processing Center for Displaced Persons (PCDP) 2,558
Sub-Total 6,945
Regional Rehabilitation Center for Youth (RRCY) 1,481
Youth in Need of Non-Youth Center:
Special Nayon ng Kabataan 12
Protection AMOR Village 28
(YNSP)
Sub-Total 5,339
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Table I, Continued
No. of Clients
Sector Residential Facilities Served
Haven for Women 642

Sanctuary Center 245
Women in
Especially Haven for Women and Girls 76
Difficult Non-WEDC Center:
Circumstances Home for Girls 110
(WEDC) Marillac Hills 59
Sub-Total 3,510
GRACES 371
Home for the Elderly/Aged 373
Senior Citizens Non-Senior Citizen Center:
Jose Fabella Center (NCR) 58
Processing Center for Displaced Persons (PCDP) 186
Sub-Total 988
Elsie Gaches Village 643
Persons with AMOR Village 43
Disability Non-PWD Center:
Home for Girls 24
Haven for Women 5
Sub-Total 1005
Other Adults in Jose Fabella Center 1,337
Need Processing Center for Displaced Persons (PCDP) 3,765
Sub-Total 5,102
Total 22,889
Seven (7) non-residential centers however served a total of 1,086 clients, where
991 PWD beneficiaries are being provided with vocational/ social rehabilitation
and skills training in 6 training and rehabilitation facilities. The INA Healing
Center served 100 grieving mothers, bereaved husband/wife and other family
members.
Table 2. Number of Clients Served Non-Residential Facilities, January to December 2015

No. of Clients
Sect Non-Residential Facilities
Served
or
Rehabilitation Sheltered Workshop (RSW) 82
National Vocational Rehabilitation Center (NVRC) 283
Persons With Disability Area Vocational Rehabilitation Center (FO I) 118
Area Vocational Rehabilitation Center (FO VII) 252
Area Vocational Rehabilitation Center (FO IX) 153
Center for Handicapped 103
Sub-Total 991
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Table 2, continued
No. of Clients
Sect Non-Residential Facilities
Served
or
Women in Especially
Difficult Circumstances INA Healing Center 100
(Grieving Mothers)
TOTAL 1,091
9. Protective Services Program.

a. Assistance to Individuals in Crisis Situations (AICS). The DSWD was
able to serve a total of 968,720 clients that were provided with various
social welfare and development services through the Crisis Intervention
Units nationwide. This includes educational, medical, transportation, and
burial assistance as well as food and non-food items.
b. Assistance to Communities in Need (ACN). A total of 120 project

proposals were submitted to DSWD Field Offices by the proponent LGUs,
34 of which have been approved while 86 are still for review and/or
approval. The approved proposals were: construction of twenty-five (25)
Day Care Centers in Region I; repair of four Day Care Centers in Region I,
and construction of five Senior Citizens Center in Region V.
10. Alternative Family Care Program. With the enactment of the Domestic
Adoption Act (RA 8552); Issuance of Certification Declaring a Child Legally
Available for Adoption (CDCLAA) or RA 9523; and the Foster Care Act (RA
10165), the Department facilitates the review and processing of documents of
children for issuance of CDCLAA, inter- regional foster care matching, issuance
of inter-country adoption (ICA) clearance and manages the foster care program.
It oversees the implementation of foster care services and monitors the
movement of cases of children identified for adoption or foster care in
residential care facilities of the Department, including NGO-Child Caring
Agencies nationwide. Under this program, two (2) services are being delivered
by the DSWD:
a. Adoption. For CY 2015, the Department has issued 687

CDCLAA, or 83% of the 831 dossiers received during the year. Of the
total, 192 were cleared for Intercountry Adoption (ICA). Majority of the
children issued with CDCLAA this year were healthy male children, aged 0-
2 years old, mostly coming from the National Capital Region. There were
also 83 matching conferences conducted the same year.
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Table 3. Number of Cases of Children Issued with CDCLAA by

Region, Case Categories, Types of Placement, Sex, Age and
Developmental Conditions.
Type of Developmen
Case Category Sex Age
Placement tal Condition
Total
Region Issue 13-18
With Special Needs

Direct Entrustment
0-2 3-6 7-12 years
d
Normal / Healthy
years years years old
CDCL and
Foster-Adopt
Surrendered
AA old old old

Abandoned
Foundling above
Regular
Female
Male
I 13 8 2 3 - 12 1 7 6 7 3 2 1 10 3
II 16 7 6 3 10 4 2 6 10 8 7 1 - 15 1
III 26 11 9 6 12 14 - 9 17 12 10 3 1 23 3
IV-A 119 41 32 46 88 28 3 68 51 46 26 35 12 107 12
IV-B 17 15 2 - 15 1 1 9 8 7 8 2 - 14 3
V 15 7 4 4 12 3 - 4 11 12 3 - - 14 1
VI 55 42 10 3 21 32 2 31 24 24 19 10 2 52 3
VII 72 43 10 19 41 30 1 39 33 33 19 13 7 65 7
VIII 22 19 2 1 7 14 1 9 13 7 10 4 1 21 1
IX 6 3 1 2 2 4 - 3 3 3 3 - - 6 -
X 21 15 5 1 7 12 2 10 11 11 6 3 1 21 -
XI 42 26 7 9 24 16 2 24 18 31 6 5 - 37 5
XII 8 6 1 1 4 4 - 8 - 4 4 - - 6 2
CARA 10 6 - 4 - 6 4 4 6 5 2 2 1 9 1
GA
CAR 18 8 9 1 15 2 1 12 6 9 3 3 3 14 4
NCR 227 86 75 66 177 41 9 124 103 109 63 38 17 185 42
Total 687 343 175 169 435 223 29 367 320 328 192 121 46 599 8
8
b. Foster Care Service. A total of 1,723 children were under foster care: 321
children were from the DSWD Center/Residential Care Facilities and 1,402
were placed to licensed foster parents by the Social Welfare and
Development (SWAD) Team, LGUs and NGOs.
Those from the DSWD Center/Residential Care Facilities, 287 children

were from the Reception and Study Center for Children (RSCC) and 34
were from other DSWD residential care facilities. Of these, 246 children are
with subsidy and 75 are without subsidy. Those placed by the Social
Welfare and Development (SWAD) Team, LGUs and NGOs: 978, 231 and
193, respectively. Of which, 324 children are with subsidy while the 1,078
children are without subsidy.
There are at present 1,642 licensed foster parents, assessed by the DSWD-
SWAD, others are from Child Placing Agencies and the rest are from the
LGUs.
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11. Youth Welfare Development Program/UNLAD-KABATAAN Program

(UKP). The program promotes the development of the Out-of-School (OSYs)
aged 15 to 30 years old, and other disadvantaged youth (those who have special
needs such as the abused, neglected, exploited, delinquent, street youth, victims
of prostitution, with disabilities, children in conflict with the law, and youths in
cultural communities, among others) to become self-reliant, economically
productive, and socially responsible citizens able to contribute to the
development of their family and community.
The OSYs are organized through Pag-Asa Youth Association of the Philippines
(PYAP) with 73,445 members with 7,454 federations.
12. Recovery and Reintegration Program for Trafficked Persons (RRPTP). The
RRPTP is a comprehensive program that ensures adequate recovery and
reintegration services provided to trafficked persons. A total of 2,268 trafficked
persons were assisted by DSWD which is 151.20% of 1,500 target. Comprehensive
package of services to trafficked persons and their families include rescue, counselling,
financial assistance, skills training, auxiliary services, temporary shelter and legal
assistance.
13. International Social Welfare Services for Filipino Nationals (ISWSFN).

Institutionalizing a system of providing social welfare and protection services to
overseas Filipinos (OFs), specifically for needs of undocumented and distressed
individuals, the ISWSFN deployed Social Welfare Attachés (SWAtt) in eight
(8) posts/countries namely, Riyadh, KSA and Jeddah, KSA; Kuwait; Malaysia;
South Korea; Abu Dhabi; Qatar; and Hong Kong. A total of 6,970 OFs were
served with Riyadh that has the highest number of clients at 1,915 individuals.
Further, 68.9% or 4,803 of the total clients availed of counseling services, the
remaining share availed of food assistance and other basic needs.
14. Disaster Risk Reduction and Management.

a. Relief Assistance. This is the provision of Food and Non-Food Items
(FNFI) to the disaster affected families. DSWD provided Php
358,201,168.07 worth of relief assistance to 696,807 affected families in all
regions. It was ensured that the IDPs inside and outside the evacuation
centers were provided adequate assistance to sustain their basic food and
shelter needs;
b. Cash-for-Work (CFW). This is a short-term intervention which provides
transitional support and citizenship building through temporary employment
in exchange for community works participated and/or trainings either along
disaster mitigation, preparedness, response or early recovery and
rehabilitation initiatives to provide alternative source of income to the
families. DSWD provided Php 7,737,030,476.00 worth of financial
assistance to 520,002 affected families in Regions I,II, III, IV-A, IV- B, V,
VI, VII, VIII, IX, X, XI, XII, NCR, CAR and ARMM;
c. Transitional Shelters. The DSWD provided 1,386 shelters in partnership
with International Organization for Migration (IOM) in Regions VIII and
IX;
460
d. Emergency Shelter Assistance (ESA). DSWD provided Php

18,778,410,000.00 worth of financial or material assistance to 1,015,737
families in Regions IV-B, VI, VII and VIII with damaged houses due to
STY Yolanda; and
e. Core/Modified Shelter Assistance Program (C/MSAP). DSWD provided
74,567 shelter units worth Php 5,728,560,000.00 in partnership with UN
Habitat, Habitat for Humanity and LGUs in Regions I, II, III, IV-A, IV-B,
V, VI, VII, VIII, X, XI, XII, CAR and ARMM.
15. Bottom-Up Budgeting. Pilot tested in 2013 and now on its 3rd cycle, the
Bottom-Up Budgeting (BUB) Process is an approach in preparing the budget
proposals of line agencies, taking into consideration the development needs of
cities/ municipalities as identified in their local poverty reduction action plans
that shall be formulated with strong participation of the basic sector organization
and other civil society organizations at the grassroots level.
A menu of programs ranging from sustainable livelihood, protective services,

and community-driven development sub-projects are implemented to meet the
needs of various sectors across regions.
Table 4. BUB project completion rate as of December 2015

2013 Projects 2014 Projects 2015 Projects
REGION
Total SPs Completed Rate Total SPs Completed Rate Total SPs Completed Rate
ARMM 29 27 93% 63 21 33% 43 6 14%
CAR 22 22 100% 161 84 52% 63 2 3%
CARAGA 72 72 100% 216 158 73% 90 8 9%
I 23 21 91% 207 159 77% 165 39 24%
II n/a 168 81 48% 137 5 4%
III n/a 168 107 64% 256 5 2%
IV-A 19 14 78% 181 126 72% 204 59 29%
IV-B 86 78 91% 174 86 49% 84 1 1%
IX 63 63 100% 96 51 53% 56 2 4%
NCR 48 36 77% 35 19 54% 37 0 0%
V 74 64 88% 279 179 65% 114 6 5%
VI 55 50 91% 415 162 39% 231 9 4%
VII 64 58 91% 376 224 61% 153 17 11%
VIII 22 16 73% 293 139 47% 97 5 5%
X 62 61 98% 279 160 57% 100 13 13%
XI 49 48 98% 93 71 76% 78 26 33%
XII 105 105 100% 198 112 57% 120 21 18%
Total 793 735 93% 3402 1939 57% 2028 224 11%
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16. Payapa at Masaganang Pamayanan (PAMANA). The PAMANA is the

national government’s program and framework for peace and development. It is
implemented in areas affected by conflict and communities covered by existing
peace agreements. It ensures that the communities benefit from improved
delivery of basic services and are served by responsive, transparent and
accountable LGUs. In turn, the DSWD implements PAMANA through the
Kalahi-CIDSS, SLP, and PAMANA Pillar 2.
a. PAMANA Kalahi-CIDSS. This program was able to fund a total of 3,886

sub- projects for 940,493 households. A total of 3,100 subprojects or 80%
are already completed, directly benefiting 820,147 households. These
projects include infrastructure projects, day care centers, health stations,
birthing rooms, concrete pathways, mini-wharf, tri-people centers, multi-
purpose pavements, water system, and installation of street lights.
b. PAMANA Sustainable Livelihood Program (SLP). This program is

implemented in identified conflict vulnerable areas (CVAs) in Regions VIII,
IX, X, XII and Caraga through a community cash grant or the PAMANA
Peace and Development Fund (PDF). The cash grant amounts to Php
300,000 that is provided to duly qualified SLP Associations. A total of 356
projects were completed for the CY 2015 projects. To make it more
sustainable, the DSWD provides SLP associations with enabling
interventions, either on marketing, training, or additional
technology/equipment, and a grant worth Php 50,000.
c. PAMANA Pillar 2. This program refers to the community-driven

development interventions promoting the convergent delivery of services
and goods focused on households and communities. Pillar 2 is implemented
with a cash grant of Php 300,000 per barangay for a period of three years
from CY 2012 to 2015. For the year, 24 projects were implemented in
Regions X and XII as well as the Negros Island Region (NIR).
C. MFO 3: CAPACITY BUILDING SERVICES

1. Provision of Technical Assistance to Intermediaries and Other
Stakeholders. Capability Building Programs. Out of 560 targeted
intermediaries for this year, a total of 650 participants were provided with
Learning Development Interventions (LDIs), Capacity Building Activities
(CBAs), and other training services covering 16 regions.
a. LDI Course 2: Building Competency on Strategic Communication. As

of CY 2015, 11 batches were conducted with 366 LSWDOs (3 PSWDOs,
12 CSWDOs, and 184 MSWDOs) and 137 Registered Social Welfare
(RSW) staff (Social Welfare Officers and Social Welfare Assistants)
participants covering 13 regions. Overall evaluation showed that majority of
the trained participants rated the LDIs with “Very Satisfactory” and some
rated it “Excellent” on the areas of content, objectives, methods, resource
persons/facilitators, and logistics.
462
b. LDI Course 1: Problem Solving and Decision Making. There were 12

batches were conducted with 284 LSWDOs (19 PSWDOs, 22 CSWDOs,
and 243 MSWDOs) and 61 RSW staff participants covering 16 regions.
Overall evaluation showed that majority of the trained participants rated the
LDIs with “Very Satisfactory” and some rated it “Excellent” on the areas of
content, objectives, methods, resource persons/facilitators, and logistics.
A training manual and Problem Solving and Decision Making (PSDM)

modules were also developed.
2. Provision of Technical Assistance to Offices, Bureaus, Services, and Units

(OBSUs)
A total of 104 Division Chiefs from the Central Office (CO) and the Field
Offices (FOs) were trained on Strategic Systems Thinking (SST) on June 15-19,
2015, July 6-10, 2015, and November 23-27, 2015.
3. Management of Capacity Building Activities of OBSUs. Activities were

delivered to in support to facilitating services and other capability building
activities performed by other OBSUs. These activities can be outlined as
follows:
a. Stress Management for Crisis Intervention Unit (CIU) Workers
b. Training of Trainers (TOT) on the Social Protection Manual
c. Write shop on DSWD Disaster Risk Reduction and Management (DRRM)
policies and guidelines
d. Financial Management Conference Workshop
e. TOT on Mainstreaming Evacuation Support and Preparedness in DRRM
f. Standardizing Capacity Building Proposal
g. Training of MSWDO/Day Care Supervisor of the 36 GPH UNICEF areas
4. Knowledge Management. The Department re-articulated 2016 vision

basecamp as “the established national knowledge and resource/ learning center
for good practices on social protection that is recognized in the ASEAN level by
2018” through the development of knowledge products, strengthening of
knowledge sharing mechanisms, and upgrading of knowledge sharing facilities.
a. Knowledge Products Development

1) Materials Development. Learning materials on various sectors namely:
(a) Infoposter entitled “Monitoring Mechanisms for Senior Citizens”;
(b) infoposter entitled “Inclusive Access for the Elderly”;
(c) Brochure entitled “WID, WAD, GAD: A Quick Reference”;
(d) Infoposter on non-handicapping environment;
(e) Five (5) learning materials on Family and Community Based
Disaster Preparedness: one (1) booklet entitled “Your Guide to
Mapping Disasters”;
(f) Four (4) learning materials on Camp Coordination and Camp
Management;
(g) Three (3) learning materials on Strategic Communication;
(h) One (1) compendium was developed from data mining called,
463
“Women Friendly Spaces: DSWD Experience in Setting up Safe

Spaces for Women”; and
(i) Five (5) guidelines defining and standardizing the process and
formatting of knowledge products.
2) Good Practice Documentation Review and Sharing. Out of the 128

good practice documentations, 21 are already available for viewing in
the KEC or have been uploaded in the Knowledge Portal; 13 are for still
for packaging; 28 were returned to OBS and FOs for enhancement; 46
are for review, while the rest of the documentations are filed for
archiving.
b. Knowledge Sharing Mechanism

1) Core Group of Specialists (CGS). Updating the roster of the CGS was
done a CGS Competency Model was drafted.
Two (2) CGS activities dubbed as “Learning Materials Development on

Social Protection Services for the Sector” were conducted for CGS
Women and for CGS Senior Citizens. These activities highlighted the
role of the DSWD CGS in producing learning materials on social
protection services along the major sectors served by the Department.
2) Social Welfare and Development Learning Network (SWDL-Net).

Technical support was provided for the SWDL-Net as a mechanism
of the Department in which existing partners such as National
Government Agencies (NGAs), LGUs, Non-Governmental
Organizations (NGOs), Academe, People’s Organizations (POs) and
CSOs engaged in social welfare and social protection are mobilized for
capability building programs or activities. Meanwhile, resource
augmentation in the amount of Php20,000.00/FO to support the
activities of the network such as conduct of meetings and planning
workshops.
3) Social Welfare and Development Forum. The SWD Forum is a venue

for sharing and capture of experiences, comments, or feedback of
partners and stakeholders on SWD policies, programs, and services,
which could contribute to the continuous improvement of outcomes of
SWD services.
4) Local and Foreign Orientations. Conducted 8 orientations to local and

foreign visitors as one mechanism for knowledge sharing and exchange
popularizing the Department experiences and milestones in social
welfare and development and social protection.
c. Knowledge Sharing Facilities

1) Knowledge Exchange Center (KEC) - The KEC is a hub which is
464
dynamic, interactive and virtual designed to be a user friendly and

accessible repository of important knowledge on social welfare and
social protection.
2) Knowledge Portal –There were a total of 343 uploaded categorized

program manuals, guidelines, accomplishment reports policies, program
briefers, feature stories and studies with at least a total of 25,738
hits/views recorded.
3) Regional Learning Resource Centers (RLRCs)-RLRCs has

established in ten (10) Field Offices. Technical assistance is being
provided in operationalizing the RLRCs.
4) Activities for the Establishment of the Learning Institute (LI) -

served as a venue for conduct of seminars, trainings, workshops,
orientations capacitating SP/SWD service providers to be able to
respond to current trends and need, hub for knowledge sharing and
exchange.
5) Collaboration Partnership with the Academe - Several conversations

has initiated with the academe particularly with the National Association
of Social Work Education, Inc. (NASWEI) since 2013 to establish a
formal partnership and later influence the academe to enhance and
integrate in the Social Work curriculum as practice models the initiatives
of the DSWD. One of the identified areas for collaboration is a conduct
of an activity that will promote the concept of social protection and the
new DSWD social welfare and social protection initiatives and
technologies.
5. Management of Development Partners technical assistance grants. Through

the Department’s Technical Assistance Unit (TAU), it ensures that along the
expansion of the DSWD social protection reform agenda, technical assistance
are complementary and responsive; strengthens coordination, advisory and
information sharing; and facilitates and monitors the technical assistance
implementation.
Overall, the total grant funds accessed amounted to Php 231.1 Million which
focused on the following:
a. Support to Pantawid Pamilya processes and operations and assessment of
behavioral and social outcomes of the Program;
b. Support to the DSWD convergence strategy;
c. Capability building on program management, monitoring and evaluation,
theory of change, and risk management;
d. Policy formulation and action research for Social Protection; and
e. Disaster response operations.
6. Human Resource Development. As part of its services to its employees, the

Department was able to institutionalize the Competency-Based Recruitment,
Selection and Placement System (CBRSPS) as well as enhance the Performance
465
Management System tools, processes, and practices.
D. MFO 4: REGULATORY SERVICES
1. Standards Development. For the sustainability of implementation of the

Quality Management System (QMS)/ISO 9001:2008, the following were
undertaken: Revised Quality Manual of the Standards Bureau; Enhanced the Six
(6) Quality Procedures (QPs); and a 3rd Party ISO 9001:2008 1st Surveillance
Audit was conducted. Results of audit surveillance are issuance of one (1) minor
Corrective Action Request (CAR) and four (4) observations/opportunity for
improvements (OFI). Roll-out of ISO 9001:2008 to Regions continued with the
Development Academy of the Philippines (DAP) contracted to provide
assistance to FOs I, CAR and CARAGA in readiness of FOs for ISO
Certification on Capacity building, Technical Guidance and Final Gap
Assessment.
Further, relevant guidelines on DSWD standards were approved, including:

Erratum on the Provisions of the Administrative Order No. 17 s. 2012 of the
Standards for the Accreditation of Community Based Services; IDG Order No.
1 series of 2015 entitled “Protocols on Providing Technical Assistance Along
Department of Social Welfare and Development's (DSWD) Regulatory
Services”; and Amendment on AO 11 s. of 2015 (Revised Standards on
Residential Care Services).
2. Standards Compliance and Monitoring.

a. 192 SWDAs were registered for the period while 247 SWAs were licensed
b. Accredited SWDAs/Centers/Service providers includes:
1) 120 NGOs
2) 12 DSWD Centers and Institutions
3) 13 LGU centers and institutions
4) 51 Senior Citizens Centers (SCCs)
5) 4,831 Day Care Centers
6) 5,164 Day Care Workers
7) 172 Pre-Marriage Counselors
8) 103 social workers managing court cases (SWMCCs)
c. CSO Assessment and Accreditation. A total of 183 CSOs were assessed of
which 14 CSOs were accredited
E. GENERAL ADMINISTRATION AND SUPPORT TO SERVICES.

1. Legal Services. The Department was able to review a total of 1,229 legal
documents, providing commentaries to Bills and Resolutions, Contracts,
Memoranda of Agreement, and related manuscripts. Three hundred four (304)
MOA/MOU/contracts were also reviewed and provided with comments and
legal bases.
466
In view of its strategic alliances with the Public Attorney’s Office (PAO) which
seeks to provide free legal assistance to qualified beneficiaries, workshops
capacitating PAO lawyers were initiated in Quezon City, Cebu City and Davao
City. Lawyers and selected legal personnel provided legal counseling and
referrals to walk-in clients and answered inquiries received through telephone,
electronic and snail mails.
2. General Services. The agency has accounted activities to strengthen records

and archives management. Among these activities was the conduct of Training
Workshop on Restructuring Records Disposition Schedule (RDS) and File
Classification Guide (FCG) as well as the Digitization Project for preservation
of permanent records. It was also able to implement its Vehicle Fleet
Replacement Program for disaster operations and deployment in program field
operations.
3. National Resource Operations. The DSWD has undergone major renovations

and improvements of its facilities, including construction of new buildings and
refurbishment of grounds, installation of power back-up and CCTVs. With the
support of the United Nations - World Food Programme (UN-WFP), the
Mechanized Production System was installed at Warehouses D and E. The
Mechanized Production System enables the automated production of 50,000
Family Food Packs (FFPs) in a single day operation with a minimum manpower
requirement.
Table 5. National Resource Operations Summary of Accomplishments
4. Property and Asset Management. A property accountability information

system was established to efficiently track status of property accountabilities of
agency personnel.
5. Procurement. For CY 2015, the DSWD was able to process 2,613 contracts
amounting to Php 682,936,960.36 which covers mandatory services/utilities,
food and non-food relief supplies and materials, consulting services, ICT
services, board and lodging and equipment outlay.
467
II. ACCOMPLISHMENTS OF ATTACHED AGENCIES
A. Council for the Welfare of Children’s (CWC)
1. Policy Monitoring, Development and Advocacy. The Council approved,

adopted and issued a total of nine (9) Council Board Resolutions. It also
conducted several fora on child such as on sexual abuse and exploitation in
emergencies; on children in situations of armed conflict; undocumented
children of Overseas Filipinos; and Bangsamoro Basic Law and Child’s
Rights. The CWC Board was also able to approve the Implementing Rules
and Regulations of Executive Order No. 138 entitled, “Amending Executive
Order No. 56 (2001) Adopting the Comprehensive Program Framework for
CIAC, strengthening the CWC and for other purpose. Further, a Manual of
Operations for the Regional Committee/Sub-Committee for the (RC/SCWC)
was also adopted.
2. Research and Development. The research to craft a National Baseline

Study on Violence Against Children (NBS VAC) was completed during the
“Ako Para Sa Bata, The international Conference” in Cebu City.
3. Plan Review and Formulation. The results of the mid-term review of the
2nd National Plan of Action for Children (NPAC) was approved. It presents
strategic directions for the 3rd National Plan of Action for Children for its
members/partners consideration and appropriate action. Likewise, an Inter-
agency Committee on Children in Armed Conflict (IAC-CIAC) Action
Planning was conducted to develop a comprehensive program framework
relative to the strategic NPAC goals and corresponding programs/services.
4. Advocacy and Communication Planning Workshop. The Inter-Agency

Committee on Children in Situations of Armed Conflict (IAC CIAC)
conducted an Advocacy and Communication Planning Workshop. For the
2015 Presidential Award for Child-Friendly Municipalities and Cities, the
National Award Committee (NAC) for the PACFMC shortlisted 21 Local
Government Units (LGUs) from among the 934 Seal of Child-Friendly
Local Governance (SCFLG) conferees. For the “Search for the Exemplary
Government Registered Social Workers Awards (during Typhoon Yolanda
disaster operations)”, five (5) national awardees and one exemplary social
workers was awarded. A total of 1,093 out of the 1,439 audited LGUs were
conferred with the Seal of Child-Friendly Local Governance (SCFLG).
5. Monitoring and Evaluation. Harmonization Workshop of the Results-

based Monitoring and Evaluation System (RBM&ES) and the Subaybay
Bata Macro Monitoring System (SBMMS) was conducted to track the
implementation of both the UN CRC Observations and Recommendations
468
and the implementation of the 2nd NPAC. The Council has conducted the
Assessment of the Communities of Practice on Child-Friendly Local
Governance. The assessment sought to generate insights and lessons learned
from the CoP LGUs, assess and evaluate the different components of the
CoP-CFLG (objectives, processes, and key actors), and identify key action
points and recommendations. A total of 56 cases/incidents of grave child
rights violation had been reported and was coordinated by the CWC with the
IAC-CIAC.
B. National Council on Disability Affairs (NCDA)

1. Policy Monitoring, Development and Advocacy. The NCDA has also
worked for the adoption of responsive policy agenda for persons with
disability and improve capacity of intermediaries/stakeholders to respond to
the needs of PWDs. Moreover, it focused on increasing functionalities of
Regional Councils and local government units in line with the SG3 of the
Department of Social Welfare and Development.
The engagement with the DILG to include the establishment of PDAO and
the issuance of PWD IDs by LGUs as indicators in the 2016 Seal of Good
Local Governance (SGLG); with the DOH, the World Health Organization
(WHO) and groups representing different types of disabilities in coming up
with a revised eligibility criteria for the issuance of a PWD ID; engagement
with DSWD & WHO on KALAHI CIDDS Standard Community
Empowerment activity where accessibility issues will be given attention
during community consultation to ensure meaningful participation of
PWDs; coordination with the Department of Transportation and
Communications on the proposed Manila-Quezon City Corridor
Improvement Project to incorporate the concerns of the PWD sector and key
stakeholders to the detailed engineering plan of the project.
Engaged with partner agencies for adoption of disability-inclusive related

policies, such as the full implementation of 20% discount of passengers with
disabilities on domestic airfare. Conduct of series of consultations with the
Sector of PWDs to gather inputs on the proposed Implementing Rules and
Regulations of RA No. 10070 or the Creation of Persons with Disability
Affairs Office (PDAO);
Participated in the formulation of guidelines to enhance the involvement of

the “Aging and Disability Task Force” in disability-inclusive intervention
during disasters and calamities.
2. Plan Review and Formulation. Close collaboration with the UN Economic

and Social Commission for Asia and the Pacific (ESCAP) was established
regarding the joint Disability Data Project where a National Plan of Action
on Data Collection on Disability will be developed. Reviewed and passed
two (2) resolutions on policies directly affecting PWDs including
469
participation in ten (10) Committee Hearings for both Houses of Congress

and review of four (4) pending bills in Congress.
3. Monitoring and Evaluation. Developed data-base/system on disability-

related information by collecting disability-related data. Monitored and
evaluated the compliance of disability-related laws and policies, which
resulted to the following to: 72 functional disability-related structures at the
regional / local level organized and strengthened; 24 Local Policy and
Program Orientation-Forum / Capacity building activities conducted; and
1,933 Local Leaders, NGOs / NGAs and other stakeholders from 26
provinces / cities given direct orientation on disability laws
4. Research and Development. Collaborated with the DOH, Organizations of

PWDs, representatives from the Academe and wheelchair service providers
on the results of the wheelchair research conducted by United States Agency
for International Development (USAID), Jhpiego, and the Institute of Health
Policy and Development Studies. Related to this, the Philippine Society of
Wheelchair Professionals was created to be the unifying professional body
responsive to promoting the well-being of Filipino wheelchair users and
other service stakeholders through advancement of the body of knowledge,
standard service systems, influencing policy and advocacy, and promoting
evidence-based practices.
5. Advocacy Awareness. In advocacy and awareness raising, the NCDA has

led the observances of disability celebrations, gave local officials
information and technical assistance on the importance of passing local
ordinances and resolutions in support of national policies and programs, and
has conducted Local Disability Policy Fora in different regions. Some of
these campaigns were the World Autism Awareness Day Celebration; the
37th National Disability Prevention and Rehabilitation (NDPR) Week;
White Cane Safety Day; Cerebral Palsy and Protection Week. Other notable
activities were Demonstration Workshop on Handling Passengers with
Disabilities who Travel Speakers’ Bureau on Disability Promotion for Cebu
Pacific Staff on Handling Special Needs of Cebu Pacific Passengers; and
Sensitivity Training on Caring for Customers with Special Needs;
Consultation meeting with Aviation and other Key Stakeholders on Air
Transportation Accessibility. Further, continued education and information
campaign on disability- inclusive development and UN Convention on the
Rights of PWDs, such as the conduct of “Regional Forum on Accessible
Tourism / how to Handle PWDs in the Tourism Industry”; launching of the
Disability Section at San Beda College; and establishment of two (2)
Disability Sections in the Caloocan Public Library on the proposed
establishment of similar section in Caloocan City Hall.
6. Programs and Support Services. Provided 11 Assistive Devices and eight

(8) referrals to PWDs, their families, disabled people’s organizations,
support groups and advocates. Expansion and sustainability of Non-
Handicapping Environment (NHE) Project. Provision of Social Enterprise
Fund amounting to P50,000 each to nine (9) DPOs through the DSWD
funds transferred to the NCDA.
470
7. Capacity Building for Stakeholders and Partner Agencies. Conducted

consultation and strategic planning workshop in the development of Five-
Year plan on auxiliary support services for persons with disabilities among
focal persons and social workers, in partnership with the Department of
Social Welfare and Development. Conducted four (4) Cluster Conferences
of the Regional Committees on Disability Affairs (RCDAs) which aim to
provide directions to their member-agencies on convergence of programs
and services for persons with disabilities and provision of Technical
Assistance and Resource Augmentation to Disabled People’s Organizations
(DPOs) and local government units on for assistive devices livelihood
projects, employment opportunities, skills trainings, and participation in
Bottom-Up-Budgeting (BUB) scheme of persons with disabilities. The
Regional Directors sit and act as Chair of each RCDA including the DSWD
Secretary of the Autonomous Region of Muslim Mindanao.
C. Inter-country Adoption Board. The Intercountry Adoption Board (ICAB) is

the Central Authority of the Philippines that carries out the provisions of RA
8043 or the Intercountry Adoption Act of 1995. It continues to undertake
activities and strategies to ensure the protection of Filipino children placed for
international adoption.
1. Policy Formulation and Regulation of Foreign Adoption Agencies.

There were 9 Board meetings that discussed and resolved issues and
concerns on ICAB policies and procedures, bilateral agreements, among
others.
2. Program Development and Implementation. This semester, the following

had been accomplished:
a. 201 new adoption applications were assessed of which 163 were

approved.
Age Preference of Adoption Applicants

Jan-June 2015
N= 201
92
100
40
50 29
19 16
5
0
0-2 yo 2-4 yo 4-6 yo 6-8 yo8-10 yors and above
b. 156 Prospective Adoptive Parents (PAPs) were matched and 121

accepted the referral.
471
c. 231 new cases of children were given ICA Clearance by the DSWD.
Table 6. Distribution of Children: Cleared, Matched and Approved and

Entrusted to their PAPs According to Legal Status and Sex
Cleared Matched and Entrusted to
Children Approved PAPs
Deed of Voluntary 130 83 120
Commitment CDCLAA
Abandoned CDCLAA 101 94 86
Total 231 176 186
Male 122 102 104
Female 109 74 82
Total 231 176 186
d. 297 children were awaiting matching during the semester, 176 or 59%
were matched within the timeline and 141 or 80% of the matched
children were accepted, 186 were entrusted to their Prospective
Adoptive Parents.
Table 7. Summary of matched children and were entrusted to their

Prospective Adoptive Parents (PAPs)
Age Range Children Cleared Children Matched Entrusted to
and Approved PAPs
0-2 years old 49 43 109
2-4 years old 50 48 31
4-6 years old 33 17 31
6-8 years old 25 18 15
8-10 years old 18 16 0
10 yrs & above 56 34 0
TOTAL 231 176 186
e. The DSWD Secretary issues the Affidavit of Consent to Adoption

(ACA) if reciprocal child-adoptive family bonding is proven. The
outcomes of the three (3) post placement reports done every two
months during the 6 months trial custody period are the bases for the
issuance of this legal document. 189 ACAs were endorsed to the
CAs/FAAs during semester of CY 2015.
f. 194 Adoption Decrees were received during the semester in review. The
Adoption Decrees received during the year were for the children whose
placement occurred from 2012-2014.
472
Number and Distribution by Geographical Location Adoption

Decrees Received 1st Semester 2015
100
48 49
36 27
50 15 6 9 4
0
Europe USA Canada Asia Pacific
1Q 2Q
1. Networking and Advocacy. A training on Intercountry Adoption Program

was conducted for Regions CAR, I, VIII and X social workers, attended by
181 social workers. Continuous technical assistance and advocacy visits
were also provided to the different DSWD/LGUs/NGOs to assist in the case
movement and management of children cases.
2. Budget & Expenses. At the end of the 1st Semester of CY 2015, the ICAB
operated on a total budget of Php44,059 Million which was derived from the
Regular Allotment (RA 10651) of Php14,611 Million and P28,547 Million
from use of income per Section 13 of RA 8043
On the other hand, ICAB earned a total of Php20,853,831.90 which was

55% of the annual target income of Php38,086,400.
D. Juvenile Justice and Welfare Council (JJWC). The Juvenile Justice and
Welfare Council (JJWC) is a policy-making, coordinating, and monitoring body
that promotes and protects the rights of children at risk and children in conflict
with the law under a restorative justice and welfare system.
1. There were 30 provinces, 82 cities, 585 municipalities, and 5,451 barangays

that have local juvenile intervention programs and services integrated in the
local development plans, 5 resolutions were adopted and implemented.
2. There were 8 national policies, plans and programs that has been developed,
issued, disseminated, and updated. 11 policies were also issued by the
RJJWCs
3. There were a total of 6,171 LGUs with local juvenile intervention programs.
Data is based on the monitoring of DILG, a member agency of the JJWC
tasked to monitor the compliance of LGUs to RA 9344 as amended,
specifically to monitor LGUs implementation of the provision of the law to
develop the CLJIP.
473
4. Furthermore, the following had also been accomplished:

a. 25 RJJWC meetings were facilitated by all 16 RJJWC. The members
were convene to develop and finalize their Work and Financial Plan for
2015 and to discuss pertinent issues, among others.
b. 381 local bearers had participated in the capacity building activity to
strengthen the awareness on the implementation of RA 9344.
c. 22 Bahay Pag-asa and other rehabilitation centers for the CICL were
inspected, among others.
474
DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS

For CY 2015, the Department together with its offices, agencies and corporation were able to
generate a total Revenue Collection of Php66.04 Billion, 14.48% higher than the CY 2014
collection of Php57.69 Billion. The highest contributor is the LTO with a Php22.12 Billion followed
by PPA with Php13.2 Billion and by MIAA at P10.4 Billion.
By Sector, the Road Sector accounts for the highest collection of Php23.90 Billion (35.36%)
followed by the Civil Aviation Sector of Php18.75 Billion (29.70%) then by the Maritime Sector of
Php16.97 Billion (23.78%). The Rail Sector contributed Php6.40 Billion (11.14%) while the DOTC
Central Office shared Php 18.57 Million (0.02%) of the total revenue collection.
Presented herewith are the revenues by Sector and by Agency of the Department of Transportation
and Communications (DOTC).
Refer to the attached Figures (Pie Chart and Bar Graph) showing the percentage share of each sector
to the total Revenue generated by the Department.
Table: 1 REVENUE COLLECTION

DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS
REVENUES (Million)
CY 2015 -2014
Sector/Office/Agency 2015 2014 % Inc. /(Dec)
ROAD SECTOR
LTO 22,125.00 18,766.00 17.90
LTFRB 643.00 649.00 (0.92)
TRB 1,133.33 984.41 13.00
OTC (No Revenue Collection)
SUB TOTAL 23,901.33 20,399.41 17.17
CIVIL AVIATION SECTOR

CAAP 6,552.00 5,738.00 14.19
MIAA 10,413.00 9,291.00 12.08
MCIAA 983.62 1,438.34 (31.61)
CAB 159.09 65.28 143.70
PADC 54.82 70.30 (22.02)
CIAC 587.00 532.00 10.34
SUB TOTAL 18,749.53 17,134.92 9.42
MARITIME SECTOR
PPA 13,197.88 11,783.42 12.00
CPA 1,521.51 1,220.87 24.63
MARINA 983.73 713.66 37.84
PCG 1,268.11
PMMA( No Revenue Collection)
SUB TOTAL 16,971.23 13,717.95 23.72
RAIL SECTOR
LRTA
Line 1 2,289.52 2,695.95 (15.08)
475

Line 2 1,332.81 1,024.93 29.06
MRT 3 2,325.37 2,030.07 14.55
PNR (Total) 450.62 674.20 (33.16)
SUB TOTAL 6,398.32 6,425.15 (0.42)
OTS (No Revenue Collection)

CENTRAL OFFICE 18.57 10.52 76.60
GRAND TOTAL 66,038.98 57,687.95 14.48
476
Table A: ROAD SECTOR

Information Systems Division
Key Performance Indicators (KPIs)
CY 2015 and CY 2014
ACTUAL % Inc. / TARGET %
AGENCIES PARTICULARS 2015 2014 2015 Variance
(Dec.)
LTO MV Registration Transactions (000) 14,602 12,089 20.79 12,452 17.27
MV Registered (000) 8,707 8,081 7.74 8,324 4.60
License Cases Handled (000) 7,982 7,344 8.69 7,489 6.59
Licenses Issued (000) 5,626 5,214 7.90 5,314 5.87
Apprehension Cases (000) 541 635 (14.76) 614 (11.80)
Revenue Collection (Millions) 22,125 18,766 17.90 20,776 6.49
LTFRB Filed Cases (000) 1,088 1,024 6.30 1,180 (7.78)

Adjudicated Cases (000) 1,056 947 11.53 1,133 (6.73)
Revenue Collection (Millions) 643 649 (1.00) 463 38.93
OTC Coordination/Facilitation of
Promotional and Briefing Activities 49 35 40.00 15 226.67
TC Application for Accreditation 53 60 (11.67) 25 112.00
Issuance of Certificates for TC
Accreditation 32 54 (40.74) 25 28.00
Coordination/Facilitation of CETOS
& variousTrainings and Seminars 247 200 23.50 170 45.29
Conduct of Financial Mgt. Assistance 9 21 (57.14) 10 (10.00)
Inspection of TCs 91 69 31.88 65 40.00
Issuance of Certificate of 286 276 3.62 200 43.00
Good Standing
* TRB MFO 1-Tollway Regulatory Services

P1 1 - Monitoring (Qty.)
No. of complaints acted upon 40 40 0.00
No. of inspection conducted 118 12 883.00
Increased km-length of tollroad 125 108 15.74
P1 1 - Monitoring (Qlty.)
% of non-compliance with the O & M Manual 0.26 0.50 (0.48)
Performance Standards by the toll operators
% of notices issued to the toll operators for the 0.82 0.70 17.10
non-compliance with the O & M Manual /PS
w/in 7 days after inspection
477
ACTUAL % Inc. / TARGET %

AGENCIES PARTICULARS 2015 2014 2015 Variance
(Dec.)
PI 2-Enforcement (Qty.)
No. of traffic violations detected/recorded 1,571 576 172.7
PI 2-Enforcement (Qlty.)
% of traffic violations detected by TRB 0.47 0.5 -6.0%
against the total nos. of apprehensions
recorded by TO.
Timeliness
% of notices issued to toll operators for non- 1.00 0.70 0.30
apprehensions of motviolation of the report.
Revenue (Billion) 1,133.33

* TRB's Revised Key Performance Indicator for CY 2015 to measure the accomplishment of TRB's Plans
and Programs as per agreement by TRB and DBM.
Table B: CIVIL AVIATION SECTOR

CY 2015 and CY 2014
Sector/Office/Agency/Indicators 2014 Actual 2015 Actual % Inc.(Dec.) 2015 Target Variance (% )

CIVIL AVIATION
CAAP
Registered Aircraft inspected 664 837 26.05
Airmen Licensed 18,678 16,803 (10.04)
Aircraft Movement (000) 792.00 996.00 25.77
Passenger Movement (000) 53.46 57.90 8.31
Cargo Movement (million kgs.) 709.00 569.00 (19.79)
Revenue (million) 5,738.00 6,552.00 14.90
MIAA
Aircraft Movement (000) 266,261.00 280,925.00 5.51
Passenger Movement (000) 34,274.97 36,583,459.00 7.31
Cargo Movement (million kgs.) 520,402.00 586,890.00 12.78
Return on Assets (%)
Before NG Share 9.27 4.00 (56.85) 2.78 43.88
After NG Share 6.80 3.00 (55.88) 3.00 0.00
Operating Ratio (after NG Share - %) 51.13 46.00 (10.03) 70.55 (34.80)
Queuing Time at Check-in Counters (mins) 5.30 5.30 0.00 5.30 0.00
Baggage Retrieval Time (mins) 5.50 5.50 0.00 5.50 0.00
Waiting loading at driveway (mins) 5.40 5.00 (7.41) 5.00 0.00
Revenue (millions) 9,291.00 10,413.00 12.08
478
Sector/Office/Agency/Indicators 2014 Actual 2015 Actual % Inc.(Dec.) 2015 Target Variance (% )

MCIAA
Aircraft Movement (000) 56.27 61.77 9.77 61.46 0.50
Passenger Movement (000) 6,839.85 7,687.71 12.40 7,339.34 4.75
Cargo Movement (metric tons) 51,833.74 80,913.29 56.10 60,382.21 34.00
Revenue (millions) 1,438.34 983.62 (31.61) 695.67 41.39
CIAC
Aircraft Movement (000) 6.65 6.05 (9.04) 7.25 (16.55)
Passenger Movement (000) 877,757 642,549 (26.80) 788,000 (18.46)
Cargo Movement (metric tons) 47.98 35.01 (27.03) 45.84 (23.62)
Revenue (millions) 532.00 587.00 10.33 608.00 (2.30)
CAB
Chartered Flight Approved 1,326 1,419 7.01 700 102.71
New/renewals of permits/licenses/CPCN iss 128 169 32.03 100 69.00
No. of petition processed 2,136 3,231 51.26 2,600 24.27
No. of Annual Reviews conducted 505 473 (6.34) 240 97.08
Applications for Renewals of Certificate of 520 470 (9.62) 240 95.83
No. of Air agreement negotiated 10 10 0.00 6 66.67
Revenue (millions) 65.28 159.09 143.70 65.10 144.37
PADC
Revenue (millions) 70.30 54.82 (22.02) 24.00 128.42
MIAA Revenue reported (January to October for 2014 and 2015) only.
Table C: MARITIME TRANSPORT SECTOR

CY 2015 and CY 2014
MARITIME
PPA
No. of Shipcalls (000) 394.91 333.82 18.30
Passenger Carried (millions) 62.66 54.60 14.75
Cargo Thoughput (MMT) 228.83 210.17 8.88
Rate of Return on Revalued Asset (%) 18.48 19.89 (7.09)
Operating Ratio (%) 37.10 36.07 2.86
Capital Projects (%) 51.96 64.00 (18.81)
Repairs & Maintenance (%) 78.06 80.00 (2.43)
Volume of Silts dredged (millions cum.) 0.79 0.04 1,875.00
CPA
No. of Shipcalls 110.36 108.94 1.30
Passenger Carried (millions) 18.34 16.31 12.45
479
Cargo Thoughput (MMT) 41.86 36.64 14.25

Operating Ratio (%) 35.55 45.58 (22.01)
Capital Projects (%) 75.08 67.89 10.59
Repairs & Maintenance (%) 78.73 94.31 (16.52)
Volume of Silts dredged (millions cum.) 0.03 0.01 108.33
MARINA
No. of Ships Registered 9,981.00 8,071.00 23.66
No. of Cert.,Permits & Licenses Issued 43,868.00 60,104.00 (27.01)
No of Companies/Ships Audited 535.00 802.00 (33.29)
relative to ISMN
No. of Quasi-Judicial Issuances 1,249.00 1,059.00 17.94
No. of SIRB Issued 190,737.00 173,708.00 9.80
COP/COC/COE/GOC Issued 1,256,602.00 717,845.00 75.05
Revenue 983.73 713.66 37.84
PMMA
Graduates for Baccalaureate and
Graduate School Programs
1. Higher Education
BS Marine Transportation 74.00 102.00 (27.45)
BS Marine Engineering 91.00 128.00 (28.91)
Advance Education
Ship Management 8.00 5.00 60.00
Maritime Education and Training 4.00 2.00 100.00
Revenue N/A
Table C-1 MARITIME TRANSPORT SECTOR

Department of Transportation and
Communications Information Systems Division
Philippine Coast Guard
(PCG) CY 2015 (Actual vs
Target)
TARGET ACTUAL % Inc./

AGENCY PARTICULARS
2015 (Dec.)
PCG MFO 1-Maritime Security and Patrol Services
PI 1 - No. of kilometres of Phil. Coast Patrolled/monitored 59,088 146,283 147.58
PI 2 - % detected incidents intercepted and apprehended 8% 3.5% (56.25%)
PI 3 -% decrease in the no. of maritime incidents/infraction 12% 19% 58.33%
against the ave. no. of incidents/infraction over the last 3
years
480
PI 4 - % of the Philippine Coast under surveillance patrol 17% 166% 876.5%

more than 50 times a year
TARGET ACTUAL % Inc./

AGENCY PARTICULARS
2015 (Dec.)
MFO 2-Marine Search and Rescue Services
No. of incidents reported 458 452 (1.3)
% of incidents w/ successful search and/or rescue 98% 98% 0%
% of incidents responded w/in 6 hours 49% 97% 48%
MFO 3: Navigational Safety Services
No. of nautical miles of shipping lanes under management 11,285 11,285 0
No. of marine incidents of ship collisions and other recorded 343 486 98
navigational incidents in the last 3 years
% of incidents were defective navigation facilities replaced 4% No data
or repaired w/in 30 days of detection
MFO 4 – Maritime Regulations Services
No. of vessels and facilities inspected by PCG on marine 10,785 17,281 60.28
pollutions regulations
No. of vessels and facilities inspected in the last 2 years w/ 2 17 29 70.59
or more defect notices issued a % of the total number of
ships issued w/ a defect notice
% of vessels and facilities subjected to 2 or more marine 0.24% 0.6% 0.18%

pollution compliance inspections in the last 2 years
Monitoring
No. of vessels, sites and facilities monitored and/or 10,785 10,810 2
inspected with reports issued
% submitted reports that resulted in the issuance of violation 0.48% 0.12% (0.36%)
reports and penalties imposed
% of sites that have been inspected more than twice in the 36% 10% (26%)
last 2 years
Enforcement
No. of violations or complaints acted upon and reports 390 2 (388)
issued
% of vessels persons and facilities w/3 or more recorded No data No data No data
violations in 3 years
% of detected violations that are resolved or referred for No data 0.12 No data
prosecution w/in 5 wkg. days
Table D: RAIL SECTOR

CY 2015 and CY 2014
AGENCY INDICATORS ACTUAL 2015 ACTUAL 2014 % INC./(DEC)
LRTA
Line 1
Ridership (Millions) 141.34 170.74 (17.22)
Peak-Hour LRV Trips 46 50 (8.00)
Load Factor (%) 99.68 98.03 1.68
Fairbox Ratio 1.48 1.18 25.42
Revenue Collection (Millions) 2,289.52 2,695.95 (15.08)
481
Line 2
Ridership (Millions) 62.21 72.85 (14.60)
AGENCY INDICATORS ACTUAL 2015 ACTUAL 2014 % INC./(DEC)
Peak-Hour LRV Trips 43 45 (4.44)
Load Factor (%) 53.96 59.11 (8.71)
Fairbox Ratio 1.44 1.00 44.00
Revenue Collection (Millions) 1,322.81 1,024.93 29.06
MRT
Passengers Carried (Millions) 118.16 167.82 (29.59)
Passengers-Kms (000) 1,108,616 1,560,717 (28.97)
Load Factor % 68.92 91.49 (24.67)
Ave. Trains Dispatched/Day 14 18 (24.09)
Revenue Collection (Millions) 2,325.37 2,030.07 14.55
(Rail & Non-Rail)
PNR
Passenger Carried (Millions) Total 19.18 24.67 (22.24)
Bicol Express Service (Tutuban-Naga)*
Metro Manila Commuter Srvcs.(MMCS) 18.74 24.20 (22.58)
Bicol Commuter Service (BCS) 0.45 0.47 (5.11)
Passenger-Kms (000) Total 336,034 434,862 (22.73)
Bicol Express Service
Metro Manila Commuter Srvcs.(MMCS) 324,980 424,770 (23.49)
Bicol Commuter Service (BCS) 11,055 10,092 9.54
Load Factor (%)
Bicol Commuter Service (BCS) 52.89 60.89 (13.14)
Ave. Train Dispatched/Day Total 53 60 (11.59)
Metro Manila Commuter Srvcs.(MMCS) 49 56 (12.94)
Bicol Commuter Service (BCS) 4 4 7.50
Train Run (Trips) Total 15,499 21,785 (28.85)
Metro Manila Commuter Srvcs.(MMCS) 13,934 20,363 (31.57)
Bicol Commuter Service (BCS) 1,565 1,422 10.06
Revenue (Rail & Non-Rail Income ) 450.62 674.20 (33.16)
(Millions)Tot
Railway (Operating Rev.) 244.77 313.80 (22.00)
Bicol Express Service (Tutuban-Naga)* 0.00 0.00
Bicol Commuter Service (BCS) 9.24 8.76 5.52
Non Rail Income 205.86 360.40 (42.88)
Note:PNR- No data for Bicol Express Service due to suspension of operation starting Oct. 26, 2012 due to
damaged rail tracks caused by typhoons "Reming and Melinyo". Metro South Commuter or Metro
Manila Commuter Service (MMCS) operations was suspended on May 5, 2015 due to derailed train
and operations resumed on July 23, 2015. Additional Service of CS routing Naga-Legaspi
commenced on July 23,2015.
MRT - 2015 & 2014 revenue includes (rail & no n-rail income). The 2014 decrease of the revenue
can be attributed to the wear & tear of the tracks in the later part of 2014, thereby reducing the
number of loops(trips)
LRTA Line 1-Privatized as of Sept. 12, 2015. LRMC provided the data for LRT Line 1 until Dec.
31, 2015.
LRTA Lines 1& 2 & MRT3 increase in revenue collection due to fare hike effective Jan. 4, 2015.
LRTA Line 2-Implemented the " One Ticketing System" on July 20, 2015, while LRTA
Line1implemented on August 16, 2016.
482
MRT implemented on Oct. 3, 2015.
INFRASTRUCTURE DEVELOPMENT SERVICES
Highlights of Implementation as of December 31, 2015.
DOTC Locally –Funded Infrastructure Projects (CY 2010 – CY 2015)
Airport Projects - Out of the total of 139airport projects implemented under CY 2010-2015
Infrastructure, only 41 (29.50%) airport projects were completed; 19 (13.67%) on going; 36
(25.90%) under BAC/contract process; 6(4.32%) under detailed engineering, 23(16.55%)
implemented thru a MOA and 14(10.07%) were suspended/deferred.
Port Projects - There are 160 port projects implemented from CY 2011 -2015. Of this total , 78
port projects were completed; 22 are on-going; 9 under BAC/contract process; 40 implemented
through a MOA and 11 were suspended/deferred.
Building Projects- A total of 25 building projects implemented, of which 20 (80%) are already
completed; 3 are on going; 1 under BAC/ contract process and 1 are suspended/deferred.
KBK Toilet Facilities Improvement Projects- To construct and rehabilitate a total of 1,008
public toilets at the airports train/ rail stations as well as frontlines of DOTC sectoral offices and
attached agencies and corporations. Status of the projects – 83.98% complete based on the
total cost of the project as shown below:
Total cost of all clustered projects excluding terminated Contracts - P108.782

Million Total cost of all Clustered Projects - P182.182
Cost of terminated Clustered Projects - P 73.400
No. of Toilets for awarded contract - 1,008
No. of Toilets for Terminated Contracts - 411
Remaining No. of Toilets for construction - 597
No. of completed Toilets - 501
Total cost of Completed Projects - P91.35Million

Percentage of Completed Projects - 83.98%
PRIORITY PROJECTS (46 projects)
A. 2012 SONA Commitments: (35 Projects)

(Construct High-Quality Terminals to Lessen traffic in EDSA)
1. Metro Manila Integrated Transport System ( ITS) System -P75 Million
Southwest- PRA lot along coastal Road Paranaque City(2.8 has.)– Pre-construction activities
and procurement of Independent Consultant on-going;
South terminal - FTI Compound along SLEX, Taguig City (5.57 has.) - Contract for the project
is expected to be signed in January 2016;
North Terminal - Three (3) possible locations are being considered: Veterans memorial Medical
Center, Manila Seedling Bank at corner EDSA and Quezon Ave., and National Housing
483
Authority property near Trinoma Mall, Quezon City -Feasibility Study undergoing review.
(Fully Repair Structural Defects in NAIA Terminal 3 – P67,000.000 Million)
2. NAIA Terminal 3 Full Operationalization
a. Commissioning of 21 Electomechanical System for the full operation of NAIA Terminal 3

system facilities - Substantially completed (99.97%). Correction of punchlist items and
closing out activities on-going.
b. Structural Retrofitting – Completed and provisionally accepted as of July 9, 2013.
B. Upgrading of International Airports
3. Mactan Cebu International Airport – P 17,500,000.00

Construction of New Passenger Terminal Building and others. – Work commenced on
June 30, 2015. ; On-going operation and maintenance of the existing facilities. On-
going DED review by the Independent Consultant
4. Tacloban Airport Development Project – Program Cost – P200.00 Million

a. Airside Civil Works – Completed on April 8, 2015;
b. Repair of PTB, CAAP Admin., Fire Station and PMO Buildings, Const. Of Perimeter
Fence, Elevated Water Tank and Provision of Generator sets - Completed on April 20, 2015;
c. Asphalt Overlay of Runway/Const. of Turn Around Pad – Completed on July 6, 2015 ;
d. Proposed New PTB, VPA, Access Rd., Building facilities, Special Equipment and NavAids
– Under Procurement of Consultantfor DE Design & Construction Supervision;
e. Completion of Shore Protection with Runway Grade Correction – For procurement.
5. Puerto Princesa Airport Development Project – Program Cost – P 4,461.405 Million;

The project involves the ff:
a. Construction of PTB, Air Control Tower, Cargo Terminal Bldg., Admin. And Rescue and
Fire Fighting Bldgs.; b) Const. of New Access road off the national highway; c) widening
of runway; d) installation of new security fence and removal of remaining obstacles and
installation of new navigational aids, air traffic control communications and airfield
lighting- Construction supervision in progress includes review of the detailed engineering
design prepared by EPC Contractor.
b. Civil Works (Engineering Procurement and Construction; Design Built Contract. -On-going
with an accomplishment of 43.44%. Target date of completion is on 16 January 2017.
c. Functional Replication of WESCOM Structures and Facilities – On-going with an
accomplishment of 6.38%
d. ROW/Land Acquisition – Under expropriation;
e. Socialized Housing – Fund transferred from NHA to LGU on August 28, 2014.
6. Caticlan Airport development Project – P2,506.855 Million

a. Phase 1 A (Improvement/upgrading of the existing terminal ) -Completed/Inaugurated on
25 June 2011;
b. Phase 1 B ( Interim Runway Extension) –Package 1& 2 is 99.94%; Package 3 is 6.13%;
Package 4 (widening, upgrading, asphalt overlay) is 4.04%;
c. Airfield Lighting Works-51.48%;
d. Phase 2 (Extension of runway towards the sea (reclamation)– Master Development Plan
submitted by the 3 Consultant has a project cost of P10.8B and now being reviewed by the
Legal Department of CAAP.
C. Rehabilitation of Primary Airports
484
7. Butuan Airport Development Project

Expansion of Apron, improvement/expansion of VPA, Const. of CHB Fence, and
Construction of Drainage System – Completed but still subject for liquidated damages.
8. Cotabato Airport Development Project

Widening of Taxiway and Runway and Const. of Perimeter Fence – Substantially
completed (99.86%). Rectification of punchlist items on-going.
9. Dipolog Airport Development Project

a. Construction of New PTB – Completed on July 9, 2014;
b. Expansion of Apron with ramp, widening of taxiway, const. of river protection with
shoulder grade correction and drainage system – On-going with 66.26% against 69.22%
target accomplishment. Negative Slippage of 2.96% due to non-issuance of NOTAM by
CAAP. All activities resumed on October 2015 after NOTAM was issued.
10. Pagadian Airport Development Project

Rehab/improvement of PTB, extension of runway, widening of taxiway, improvement/expansion
of VPA, const. of perimeter fence and drainage system – Completed on July 25, 2015.
11. Sanga – Sanga Airport Development Project

a. Const of VPA with drainage system, Const of Perimeter Fence and Security Fence- bid out
29 August 212 but NTP received by the contractor only on 13 March 2014. The contractor
opted not to implement the project instead requested for termination of the contract.
b. Site Development for new Terminal Bldg., Const of new Passenger Terminal Bldg.,
expansion of apron and drainage system –Notice of Award was issued last 03 Dec.
2012.The contractor requested termination of contract now being resolved by DOTC Legal
Service.
12. Maasin Airport Development Project

a. Const. of runway strip and runway subgrade extension/hill obstruction removal – Completed
14 June 2013;
b. Concreting of runway Extension – Completed 26 January 2014.
c. Const. of Passenger Terminal Bldg. – 71.71% complete. Project was suspended due to
processing Variation Order 1 .
13. San Vicente Airport Development Project

a. Const. of PTB, runway extension with slope protection, hill obstruction removal, const. of
Fire Station Building and const. of elevated gallon water tank – 100% complete, for
rectification of punchlisted items. Subject to liquidated damages due to delays;
b. Completion of Runway Extension, Const. of VPA, Security Fence, CHB Perimeter Fence,
drainage system, hill obstruction removal, const. of pedestrian gate, vehicular gates – 100%
complete. Subject for liquidated damages due to delays.
D. Increased International Tourist Arrivals
DOTC-DOTC CONVERGENCE PROGRAM
A. Construction/Rehab.of Airports Leading to Tourism Sites
14. Marinduque Airport Development Project

a. Concreting of runway – Completed 02 May 2014;
b. Continuation of Concreting of Runway – Work suspended due to non-issuance of temporary
quarry permit by the Province of Marinduque.
15. San Jose Airport Development Project

485
Runway Widening and Extension/Rehab. of PTB – Completed on 16 June 2015.
16. Naga Airport Development Project -Expansion of Apron – Completed 21 January 2014.
17. Kalibo Airport Development Project

a. Asphalt Overlay of runway – Completed09 June 2015.
b. Lot Acquisition for the runway strip width correction – MOA with LGU, P71M
was partial released on September 2014. Lot acquisition/expropriation on
progress.
18. Ormoc Airport Development Project

a. Concreting of Apron – Already 90.05% complete. Suspended since 01 September 2015 due
to VO No. 2, still on process;
b. Asphalt Overlay of Runway – Completed 25 February 2015.
19. Catarman Airport Development Project

Asphalt Overlay of runway – On-going with 97.67% accomplishment. The contractor
requested V.O No. 1 is still for approval.
20. Dipolog Airport Development Project

On-going with 87.06% accomplishment. Contractor requested for time suspension due to non-
issuance of NOTAM /Permit to Enter by CAAP.
21. Zamboanga Airport Development Project

Desiltation/De-clogging of existing box culvert and const. of steel strainer – Completed 15
January 2015.
22. Butuan Airport Development Project
Expansion/Renovation of Existing Passenger Terminal Building – Completed on December 1,

2014.
23. Siargao Airport Development Project

Concreting of Runway and Const. of Elevated Water Tank including installation of deep well –
The project is 59.53% complete. Suspended since September 28, 2014 due to non-issuance of
NOTAM by CAAP
24. Surigao Airport Development Project- Expansion of Terminal Building, - Completed 30

January 2015.
E. Const./Rehab. oF Port Leading to Tourism Sites
25. Azagra Feeder Port (San Fernando, Romblon)(Const. of reinforced concrete pier and
provision of mooring bollards –On going with 87.27% against 100% as scheduled,
delayed by 12.73%.
26. Vinzons Port (Calaguas Is., Cam Norte) -Construction of Causeway – Completed 10
October 2014, Ahead by 24.80% of the target completion. Target completion date is 10
November 2014.
27. Mercedes Port (Camarines Norte)- Continuation of Construction of Seawall –

Completed January 2014.
28. Sabang Port (San Jose, Cam Norte)- Construction of Back-up Area and Terminal
Building– Completed 25 April 2014.
486
29. San Vicente Port (Caramoan, Cam. Sur) -Construction of reinforce concrete pier –
Completed 19 March 2015.
30. Pilar Port (Sorsogon) - Extension of reinforce concrete pier – Completed July 2014.
31. Cagban Jety Port (Aklan) - Extension of reinforce concrete pier – The project is 41.20%
complete. Suspended since 18 June 2014 due to V.O No. 1 .
32. Sta. Fe Port (Bantayan Is., Cebu) -Construction of reinforce concrete Pier with Roro
Ramp – Recommended for contract termination.
F. Other Priority Projects
33. NAIA Terminal 1 Rehabilitation Project – (P2,800.000 Million)

Structural Retrofitting Works – Substantially completed. Correction of Punchlist items
and closing out activities on going.
34. Night-Landing Operation of Airports (installation/upgrading of ALS and Upgrading of

Power Supply System of the following:
- Dipolog Airport (P24.650M) - Suspended since 21 July 2014 due to ongoing slope grade
correction @ runway 20 and Apron expansion projects;
- Cotabato Airport (P14.150M) - Work suspended since 22 Sept 2014 due to pending
approval of the permit to enter/site possession. Variation Order to be charged against CY
2015 allocation was prepared due to contracted items were found insufficient based on
actual site layout.
- Ozamis Airport (55.350M) - a)Air Lighting Systems – Work suspended since 23 Sept. 2014,
due to runway widening project which was completed 30 September 2015. However, the
proposed runway extension for the airport may result for another suspension.
- Roxas Airport (55.950M) - Air Lighting Systems –Suspended since 10 March 2015, pending
approval of the permit to enter/site possession.
- Tuguegarao Airport ( P48.052 M) -Suspended since 10 March 2015, due to pending
compliance to the standard requirements of the runway and taxiway and approval of
Variation Order for the restoration of damaged and stolen runway lights and accessories.
35. PNR Integrated Luzon Railway Project (The project shall cover the existing railway
corridor from San Fernando, La Union to Metro Manila and Metro Manila to
Legaspi, Albay including spur lines from Tarlac to San Jose, Nueva Ecija and
Calamba City , Laguna to Batangas). It will also cover potential extension line from
San Jose, Nueva Ecija to Cagayan in the north; as well as Legaspi City, Albay to
Sorsogon in the south.
- Feasibility Study - completed.
- Consultancy Services – NTP issued 11 September 2015
- ROW/Land Acquisition - Acquired 227,072.50 sq.m (89.68%) of the required 253,203.50 sq.m
of private and public lots for the ROW. Balance is under negotiation/expropriation. For
issuance of NOA and NTP.
36. LRT Line 1 Extension – Program cost (P64.900 Million)

- Civil Works and Electromechanical System– Acquisition of 30-41 cartrains or 120 caoches as
part of Cavite Extension to be bid out on December 14, 2015.
- Depot/Rolling Stock – NTP is targeted on December 15, 2015 and Depot Contractor on January
31, 2016.
- Consultancy Services – NTP issued on September 11, 2015.
- ROW/Land acquisition – 227,072.50 sq. meter is acquired of private and public lots for the
487
ROW. Balance is still under negotiation. For issuance of NOA and NTP.
37. LRT Line 2 –East (Masinag) Extension – P9,760.000Million (Design and construction
of the 4.19 km eastern extension of the existing LRT Line 2 from Santolan Station at
Marcos Highway and terminating at Masinag Junction)
- DED and Construction Supervision (Consultancy Services) –Detailed Engineering Design for
viaduct already completed. On-going construction supervision and DLP assistance for Package
1 and assistance in tendering for Package 2.
- Civil Works: Two stations and viaducts:
Package 1 –Const. of Elevated Guideway/Viaduct for the extension of the existing LRT Line 2
System by 3.934 km from the existing station. - Construction ongoing. Bored piles completed
from Pier 65 to Pier 90.
- Electro –Mechanical System (EMS)and Consultancy Services :
Consultancy: Preparation and Performance Specification and Tender Documents, Construction

supervision and DLP Assistance. Completed and submitted the Performance Specification and
Bid Documents. Ongoing Tender Assistance.
Electro-mechanical equipment: Ingoing procurement. Pre-bid conference on 23 December 2015.
Package 2 – Construction of two (2) additional stations one (10 in front of Robinson’s place
Metro East (Cainta) and at Masinag Junction in Antipolo City). Bid opened on 04 December
2015, under evaluation by TWG -BAC
38. MRT 3 Capacity Expansion Project :
Lot 1 – Procurement of 48 new rolling stocks.

nd
Contract awarded to CNR Dalian Locomotive & Rolling Stock Co (Chia) in December 2013. 2
MRT 3 Coaches delivered on 23 December 2015. Two (2) more LRVs are expected to be
delivered by March/April 2016. The 3 – year contract for new maintenance provider to maintain
the line was awarded to Busan company on 24 December 2015.
Lot 2 – Upgrade of Ancillary System – Submission and opening of of bids was postponed until
further notice. MRTA to undertake the procurement;
Lot 3 – Upgrade of Signalling System – Contract awarded to Bombardier Transportation Signal
Ltd Existing local control system will be replaced with EBI Screen 900 within 7 years;
Lot 4 – Procurement of Consultancy Services – NOA signed on 12 September 2014. Under
contract preparation.
39. Automated Fare Collection System (P1,722.000Million)- Full Systems Acceptance of

the lap-and-go ticketing scheme on 3rd week of December 2015 simultaneous with the
completion of the trial period.
40. Davao Port Development Project (P4,046.000 Million) – Pre-bid conference held on 26
October 2015. Bid proposals for submission in January 2016.
41. Central Roll-On Roll-Off (RORO) Spine (P56,500.000 Million) – For procurement of
Consultants to conduct pre-investment studies.
42. Cebu Bus Rapid Transit (BRT) Project (P10,618.000 Million)-(Establishment of a

transport system with around 176 buses that will run thru exclusive bus- ways from
Bulacao to Talamban in Cebu City, with a link to Cebu’s South Road Property (CSP).
488
Installation of 33 bus stations along the 23-km corridor in Cebu City.
Consultancy Services:
Phase 1 - Detailed Engineering Design (DED) and Preparation of Bidding Documents for the
Engineering, Structural, Civil, Architectural, Electrical and Mechanical Designs.- NOA received
on 22 April 2015. NTP issued on 13 May 2015. DED commenced on 27 May 2015. Draft
Preliminary and Basic Design submitted on 29 September 2015 for DOTC approval.
Phase 2 - Supervision of the transit way and the support infrastructure during the construction. –
Technical Support :Opening of bids on 21 Sept. 2015, Technical proposal are under evaluation.
Social Management: Request for Expression of Interest (EQI) for Consulting Services for the
updating and implementation the Social Management Plan re-advertised on 24 July 2015.
Civil
th
Works: Procurement to start 4 Quarter 2015.
43. Metro Manila Bus Integrated Transit(BRT) –P4,882,000,000)(Establishment of a 32-km

bus system from Quirino Highways to manila City Hall, passing along Quezon
Avenue:
Consultancy Services: - Under procurement stage
44. DOTC Road Transport IT Infrastructure Project Phase 1 (P3.4 Billion) - Development,
supply, installation, implementation, service and maintenance of the information and
communication technology (ICT) system of the LTO for its licensing and vehicle
registration functions - Suspended indefinitely due to TRO issued by the Mandaluyong
Regional Trial Court.
45. DOTC Road Transport IT Infrastructure Project Phase 2 – Development, supply,

installation, implementation, service and maintenance of the information and
communication technology (ICT) system of the LTFRB for its efficient registration
and franchising system - submission and opening of pre-qualification documents held
on 04 December 2015. One group found to be qualified to bid the project.
46. LRT Line 1 & 2 Rehabilitation Project – (P 6,241B) –Approved - On-going (P14.541B)
–Revised
Line 1: Systematic Rail replacement - 8,714 m track length installed rails. Replacement of Anchor
Bolts:- 58.85% completed ahead of schedule.
Line 2: Upgrading of Digital Trunk Radio System –ahead of schedule with approved contract for
contract for the reduced quantity of radio. Repair of Unbonded concrete plinths at mainline
- Phase 1 - substantially completed on 06 June 2015. Restoration/upgrading of air-
conditioning system ongoing.
G. Public-Private Partnership Projects :
1. Metro Manila Integrated Transport System (ITS) Project –P7.5B (Establishment of

integrated terminals that are par with international standards to provide interconnections
between different transport modes and services at the following locations:
a. Southwest- PRA along Coastal Rd. Paranaque City- Pre –construction activities and
procurement of Independent Consultant on going.
b. South Terminal (FTI Compound along SLEX, Taguig City) – Contract for the project to be
signed in January 2016; Procurement of Independent Consultant –submission and opening
of Eligibility documents moved from November 2015 to 11 December 2015.
c. North Terminal- Feasibility Study undergoing review.
489
2. DOTC Road Transport IT Infra Project (P3.4B) –Opening of bids was scheduled on
May 12, 2014 was suspended due to TRO issued by the Mandaluyong RTC.
3. DOTC Road Transport IT Infrastructure Project Phase 2 –submission and opening of

bids held on October 2, 2015.
4. LRT Line 1 Cavite Extension (Southern Extension of LRT Line 1 of approximately

11.7 km from its exisiting tail end rail tracks south of Baclaran Station, thru the cities of
Paranaque and Las Pinas up to the municipality of Bacoor, Cavite which involves the ff:
- Development of 3 intermodal facilities to provide smooth transfer of passengers to/from other
road based transport service namely Niyog, Zapote and Dr. Santos) - Pre-construction
activities and procurement of Independent Consultant on going.
- Railway System component which includes provision for train control and signalling system,
traction power supply, distribution system and telecommunication system - Acquisition of
30-4 car trains or 120 coaches as part of the Cavite Extension to be bid out Pre-bid conference
rd
held on 30 October 2015. Start of Civil Works on 3 Quarter of 2015.
- Depot/Rolling Stock –NTP received by the consultant on 29 January 2015; CMX started
mobilization in February 2015; Contract implementation on going. NTP for the Rolling Stock
Contractor is targeted on 15 December 2015 and Depot Contractor on 31 January 2016.
- Consultancy Services (For the supervision of the Civil and Electromechanical Works) – NTP
issued on 11 September 2015.
- ROW/Land Acquisition – Acquired only 89% of the total area of 253,203.50 sq.m of private
and public lots for the ROW. Balance is under negotiation /expropriation. For issuance of
NOA and NTP. The court issued a writ of possession to the affected property in Cavite.
5. LRT Line 2 East (Masinag) Extension (P9.7B) Million (Design and construction of the
4.19 km eastern extension of the existing LRT Line 2 from Santolan Station at Marcos
Highway and terminating at Masinag Junction)
- DED and Construction Supervision – Detailed Engineering Design for viaduct already
completed. On-going construction supervision and DLP assistance for Package 1 and
assistance in tendering for Package 2.
Civil Works:
Package 1 - ECC approved on August 17, 2015.

Package 2 – Bidding documents for review and approved by DOTC.
6. MRT 3 Capacity Expansion Project –P 3.77 Billion

Lot 1 - Procurement of 48 Rolling Stocks. Award of a 3 year contract for Maintenance Provider
to replace the existing 7 contractors is expected by January 2016.
Lot 2 - Upgrade of Ancillary System – Submission of bids was postponed until further notice.
MRTA to undertake the procurement.
Lot 3 - Upgrade of Signalling System – Under contract with Signal Ltd. Existing local
control system will be replaced by EDI Soren 900.
Lot 4 - Procurement of Consultancy Services – NOA issued on March 2, 2015 for Signalling and
Communications Consultant.
7. Metro Rail Transit Line 7 (MRT 7) – Detailed Engineering will commence upon the
completion of the selection for EPC Contractor
8. Automated Fare collection System (AFCS) P 1.722 Billion – Pre-operation activities:

Pre- full acceptance for Line 1,2 and 3 commenced on October 23, 2015.
9. North –South Railway Project (South Line)-(P170,700,000,000) – Submission of pre-

490
qualification documents scheduled in December 2015.
10. Mactan-Cebu International Airport Development Project – (P17.5B) – Commenced

work on June 30, 2015. Pre-Operational activities including soft renovations of
existing building on going. Independent Consultant already on board as of August 10,
2015 and is currently review the detailed design.
11. Regional Airport Operation and Maintenance (Bacolod, Iloilo, Davao, New Bohol,
Laguindingan Airport) - Approved by NEDA Board. On going pre-qualification
evaluation. Opening of bids in January 2016.
12. Clark International Airport – On-going study.
13. Davao (Sasa) Port Development Project –(-P4.05 Billion) – Bid proposals for
submission in January 2016.
14. Central Roll-on Roll_Off (RORO) Spine –(P56.5 Billion) – Procurement of Consultants
to conduct pre-investment studies for the feasibility study.
APEC 2015 Projects (300 Projects)
The DOTC projects are concentrated on the major gateways leading to and from the venues of the
meeting. Below are the listing of 2015 APEC Summit and their corresponding scope of work and
status:
Attached Agencies
Cebu Port Authority (CPA) – 37 port projects were implemented; 16 completed; 5 on going; 9
under procurement process 5; under detailed engineering and 2 deferred.
Civil Aviation Authority of the Philippines (CAAP) – It has a total of 136 airport projects, of
which 7 completed; 10 on going; 17 Under BAC/contract process; 101 under detailed engineering
and 1 suspended.
Manila International Airport Authority (MIAA) – 8 projects, 3 completed and 5 on going.
Philippine National Railways (PNR) - It has 5 on going projects, that include the Reopening of
the Bicol Line, Rehabilitation of the Alabang to Calamba line, Rehabilitation of Bridges and
Station Building, Track works and Construction Maintenance Depots and Rehabilitation/
Reconstruction of Main Line South.
Philippine Ports Authority (PPA)

A total of 114 port project were implemented by PPA for CY 2914- 2015, 12 are completed; 40
ongoing; 13 under procurement process; 46 under detailed engineering/evaluation and 3
suspended/deferred.
ODA (Foreign Assisted) Projects (7 Projects)
1. Laguindingan Airport Development Project (LADP) – Both Main Civil Works

(Construction of Airports and Air Navigational Support Facilities reached 100%
completion.
491
2. New Communications, Navigation and and Surveillance /Air Traffic Management

Systems Development Project (CNS/ATM) - Over all accomplishment is 81.10%.
3. New Bohol (Panglao) airport Construction and Sustainable Environment Protection
Project – Program Amount – P5.101 Billion; Implementation period is from November
2014 to May 2017.
4. Puerto Princesa Airport Development Project – Project cost – P4.461 Billion is sourced
from Korean EDCF-Civil works contract commenced on August 1, 2014 and is
scheduled to be completed on January 16, 2017. The project is 36.67% accomplished.
5. Cebu Bus Rapid Transit Project –P10.60 Billion. - The project was approved by NEDA
on May 20, 2014.
6. Philippine Ports and Coast Guard Capability Development Project – A French Loan
ODA, which involves the delivery of four(4) brand new units 24-meter patrol boats and
one (1) unit 82-meter patrol boat for the use of PCG to strengthen the existing limited
capability of PCG to conduct maritime patrol search and rescue operations and
enforcement of the applicable maritime laws in our area of maritime jurisdiction.
7. Maritime Safety Capability Improvement Projects for PCG - Project Cost –P9,337.46
Million; a JICA Step Loan project involves the acquisition of ten (10) units 40-meter
Multi- Role Respond Vessels (MRRV) which aims to improve the capabilities of the
PCG to quickly respond to coastal maritime incidence, such as search and rescue,
maritime law enforcement, etc. thereby contributing to maritime safety of the country.
Accepted Projects from CY 2010-2015
A total of 149 locally-funded projects were accepted as end of October 2015 consisting of 113
airports, 27 ports and 9 LTO/LTFRB projects. On the other hand, 149 projects were inspected
which still remain unaccepted due to non-submission of required documents prior to
recommendation for acceptance.
492
COMMISSION ON AUDIT
KEY OFFICIALS
COMMISSION PROPER
MICHAEL G. AGUINALDO
Chairperson
JOSE A. FABIA
Commissioner
ISABEL D. AGITO
Commissioner
ASSISTANT COMMISSIONER
DIVINIA M. ALAGON
SABINIANO G. CABATUAN
LOURDES M. CASTILLO
WINNIE ROSE H. ENCALLADO
SUSAN P. GARCIA
ALEXANDER B. JULIANO
CARMELA S. PEREZ
MANOLO C. SY
LUZ L. TOLENTINO
ELIZABETH S. ZOSA
KEY OFFICIALS

SUSAN P. GARCIA
Assistant Commissioner
Estelita B. Catubay
Director III
Cluster 1
Marietta M. Lorenzo - Director IV
Adela L. Dondonilla - Director III
Cluster 2
Adelina L. Ancajas - Director IV
Cluster 3
Martha Roxana C. Sese - Director IV
Villa DJ. Bernaldo - Director III
Cluster 4
Irma S. Besas - Director IV
Michael R. Bacani - Director III
Cluster 5
Cecilia B. Camon - Director IV
Sofia C. Gemora - Director III
Cluster 6
Cora Lea A. Dela Cruz - Director IV
Aurora A. Ebora - Director III
Cluster 7
Rizalina Q. Mutia - Director IV
Fatima V. Bermudez - Director III
Cluster 8
Ma. Mileguas M. Leyno - Director IV
Maribeth F. De Jesus - Director III
GOVERNMENT ACCOUNTANCY SECTOR
Office of the Assistant Commissioner
Lourdes M. Castillo - Assistant Commissioner
Editha M. Ramirez - State Auditor V
Luisa S. Nadonga - Supervising Administrative Officer
Maricel S. Ampoc - Administrative Officer II
Benjie D. Baturi - Administrative Aide VI
Magdalena M. Gaviola - Administrative Aide IV
Government Accountancy Office

Office of the Director General Accounts Services - National 1
Atty. Usmin P. Diamel - Director IV Anicia H. Guillermo - State Auditor V
Maria Fe A. Dinapo - Assistant Director Lorelei L. Datu - State Auditor IV
Ma. Belen L. Estuaria - Chief Administrative Officer Susan C. Vega - State Auditor III
Mary Jane S. Liberato - Administrative Aide VI Josefino O. Lainez - State Auditor III
Zosimo B. Ranoco - Administrative Aide VI Carol F. Manzanillo - State Auditor I
Rufa L. Gunabe - Administrative Aide V Janette N. Caluya - State Auditing Examiner II
Maria C. Lainez - Administrative Aide V Bryan B. Viloria - State Auditing Examiner II
Teddy Alejandro - Administrative Aide IV
General Accounts Services - National II Public Debt and Miscellaneous Accounts Services
Thelma F. Panganiban - State Auditor V Marilyn C. Bibat - State Auditor V
Narcisa S. Dela Rosa - State Auditor III Elmer M. Grande - State Auditor IV
Ma. Corazon D. Eguia - State Auditor II Visitacion T. Corpuz - State Auditor II
Jane L. Maramag - State Auditor II Jose Jayson L. Medel - State Auditor I
Rodel Joseph Y. Navarro - State Auditor I Joseph Emmanuel I. Romero - State Auditing Examiner II
Earvin John R. Bote - State Auditing Examiner II Luthor Ace C. Villalva - State Auditing Examiner II
Erwin C. Santos - State Auditing Examiner II Jeline G. Esase - Computer Maintenance Technician I
Local Government Accounts Services Corporate Government Accounts Services

Emelita V. Cayetano - State Auditor V Agustina Q. Baseo - State Auditor IV, OIC
Avelina G. Marquez –State Auditor IV Ma. Lourdes D. Marayan - State Auditor IV
Aida A. Donasco - State Auditor III Zenaida P Balmes - State Auditor III
Maribel Cablayan - State Auditor III Elizabeth P. Quiban - State Auditor I
Joven L.Recto - State Auditor III Princess M. Buan - State Auditor I
Elizabeth D. Ducay - State Auditor II Zosimo C. Gamanos, Jr. - State Auditing Examiner II
Accounting Systems Development and Other Services Office
Office of the Director ASDOS - National

Luzvi Pangan Chatto - Director IV Annabelle A. Puserio - State Auditor V
Elena B. Monteza - State Auditor V, Officer-in-Charge Vanessa Donnabel F. Manito - State Auditor III
Editha C. Ramirez - Administrative Assistant VI Cristina C. Gungon - State Auditor III
Lailah D. Chua - Administrative Aide VI Pretizel Ivy T. Arteche - State Auditor I
Robert L. Palita, Jr. - Administrative Aide IV Rossmon A. Doroja - State Auditing Examiner II
Marissa D. Labajan - Administrative Aide IV Berlin M. Quevedo - Administrative Officer II
Ma. Eloise Marie P. Chatto - Job Order
ASDOS - Local ASDOS - Corporate

Carmen Z. Zafe - State Auditor IV, OIC Annabelle P. Gabiran - State Auditor IV, OIC
Susana M. de Guzman - State Auditor IV Juanita C. Fuggan - State Auditor III
Hannah Grace P. Valente - State Auditing Examiner II Mairyl Ann R. Merced - State Auditor I
Mhay L. Ondoy - Administrative Aide IV Arnel A. Manalastas - State Auditing Examiner II
Technical Assistance and Help Desk Services

Romeo C. Cruz - State Auditor V Dianne Nicole G. Gabriel - Administrative Officer II
Jorgen Z. Fulleros - State Auditor IV Lara Jane M. dela Torre - Administrative Aide VI
Michelle M. Gagara - Administrative Officer III Shekinah Roebec M. Osorio - Administrative Aide VI
Gabriel B. Mercado - Computer Maintenance Tech. I Sarah Joy M. Lambino - Programmer
Kayla Mae B. Servigon - Administrative Officer II Lev Justin E. Saclayan - Programmer
Ma. Karizza A. Cabildo - Administrative Officer II Christian L. Baturi - Programmer

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FY 2015

Annual Financial Report

II. FINANCIAL HIGHLIGHTS

III. APPROPRIATIONS, ALLOTMENTS, OBLIGATIONS AND BALANCES

IV. CURRENT SURPLUS OF THE NATIONAL GOVERNMENT

VI. NATIONAL GOVERNMENT DEBT 165

VII. SIGNIFICANT AND COMMON AUDIT OBSERVATIONS AND

VIII. SUMMARY OF AUDIT OPINIONS 274

IX. HIGHLIGHTS OF ACCOMPLISHMENT OF THE

The Commission on Audit (COA) is mandated under Section 4, Article IX-D of

The 2015 Annual Financial Report (AFR) is prepared by the Government

This AFR is prepared to provide essential information on the financial position,

The Report is highlighted by a brief write-up on the financial position, financial

It also highlights the comparative condensed Statement of Financial Position

The highlights of accomplishments of the top ten departments, as to amount of

This Report is presented in two volumes, as follows:

Volume I - Financial Highlights; Appropriations, Allotments, Obligations and

Volume II - CY 2015 Detailed FSs; Statement of Appropriations, Allotments,

A parallel testing of this year’s manually consolidated and the System’s

a. Regular Agency Fund

Balances of the inter-agency accounts were not eliminated in the absence of

Appropriations, Allotments, Obligations and Balances

The COA-GAS keeps the Registry of Appropriations and Allotments (RAPAL)

The COA-GAS also keeps the Registry of Allotments, Obligations and

National Government Debt

 Audited Financial Statements

Significant and Common Audit Observations and Recommendations and Summary

The summaries of significant and common audit observations and

Highlights of Accomplishments of the Top Ten Departments

The highlights on the accomplishments of the following departments were taken

1. Department of Agrarian Reform

2.1 Financial Position

As of December 31, 2015, the aggregate assets of the NG reached P4.818

Chart II-1 - Financial Position for 2015 and 2014 R

Assets Liabilities Net Assets/Equity

2.1.1 Assets – P4.818 trillion

The Total Assets of P4.818 trillion is composed of Current Assets

 Current Assets – P1.635 trillion

Current Assets of P1.635 trillion constituted 33.93 percent of

As shown in Chart II-2, Receivables share the largest portion

Chart II-2 Composition of Current Assets

Cash & Cash Equivalents Investments

Cash and cash equivalents which shared the second largest

 Non-Current Assets – P3.182 trillion

Non-Current Assets of P3.182 trillion constituted 66.07

Table II-2 Non-Current Assets

Among the composition of Non-Current Assets, the Property,

Chart II-3 Components of Non-Current Assets

2.1.2 Liabilities – P6.354 trillion

This year’s reported Liabilities of P6.354 trillion posted an

 Current Liabilities – P1.232 trillion

The Current Liabilities of P1.232 trillion posted an increment

Table II-3 Current Liabilities

Among the components of Current Liabilities, the largest

Financial Liabilities Inter-Agency Payables

 Non-Current Liabilities – P5.122 trillion

There was a decrease in the balance of Non-Current

Table II-4 Non-Current Liabilities

The bulk or 98.53 percent of Non-Current Liabilities pertain

Chart II-5 - Composition of Non-Current Liabilities

Financial Liabilities Trust Liabilities

2.1.3 Net Assets/Equity – (P1.537 trillion)

The Net Assets/Equity of the NG as of December 31, 2015 is a

Table II-5 Net Assets/Equity of the National Government