Sie sind auf Seite 1von 706

FY 2017

Annual Financial Report

National Government

Volume I
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

Legal Framework
The Commission on Audit (COA) prepares the Annual Financial Report (AFR) for the
National Government (NG) to keep its mandate under the 1987 Philippine Constitution
and the Government Auditing Code of the Philippines (P.D. No. 1445).

Specifically, the 1987 Constitution, under Section 4, Article IX-D states that: “The
Commission shall 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. It shall submit such other reports
as may be required by law.”

Further, pursuant to Section 41 (1) of P.D. No. 1445, the Commission shall submit to the
President and the Congress not later than the last day of September of each year an Annual
Report of the financial condition and results of operation of all agencies of the government
which shall include recommendations of measures necessary to improve the efficiency and
effectiveness of these agencies.

The Government Accountancy Sector (GAS) is tasked to prepare the AFR for the NG
pursuant to COA Resolution No. 2013-021 dated November 20, 2013, the Restructuring
of the GAS of this Commission.

The COA, through COA Resolution No. 2014-003 dated January 24, 2014, prescribed the
adoption of the Philippine Public Sector Accounting Standards (PPSAS), which are
aligned to the prevailing International Public Sector Accounting Standards. The
implementation of the PPSAS aims to enhance the quality and uniformity in financial
reporting by Philippine public sector entities, and to ensure accountability, transparency
and comparability of financial information with other public sector entities across the
globe. Consequently, COA issued COA Circular No. 2015-007 dated October 22, 2015
prescribing the use of the Government Accounting Manual (GAM) for National
Government Agencies (NGAs) that provides updated accounting guidelines and
procedures to implement the PPSAS.

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 information on appropriations, allotments,
obligations, disbursements, unreleased appropriations, and unobligated balances, as well
as the summary of the results of audit, specifically audit opinions on the financial
statements (FSs) and significant audit recommendations on economy, efficiency, and
effectiveness of operation of NGAs.

i
The financial information will serve as useful tool for the President, as overall head of the
government; the Congress, in the promulgation of laws and in performing its oversight
function in the budget process; and other oversight government agencies and heads of
agencies, for sound decision towards efficient and effective utilization of government
resources and delivery of services to the public.

The AFR also caters to the information needs of the public, as stakeholder and user of data,
in consonance with the fiscal policy of improved transparency and public accountability.

Contents
The AFR is composed of two volumes. Volume I is composed of the following parts:

Part Particulars
I Financial Highlights
II Appropriations, Allotments, Obligations, Disbursements, and Balances
III Current Surplus of the National Government
IV Financial Statements
V National Government Debt
VI Summary of Audit Opinions
VII Significant and Common Audit Observations and Recommendations
VIII Highlights of Accomplishments of the Top Ten Departments

Financial Highlights

The aggregate amount of the NG’s assets, liabilities and net assets/equity for FY 2017
amounted to P5.247 trillion, P7.105 trillion, and negative P1.858 trillion, respectively. In
comparison with FY 2016 balances, total assets increased by 11.72 percent, total liabilities
increased by 8.62 percent, and the negative balance of net assets/equity decreased by 0.73
percent.

For FY 2017, total revenue of the NG amounted to P2.524 trillion, posting an increment
of 13.18 percent from the previous year’s revenue of P2.230 trillion. Total current
operating expenses amounting to P1.537 trillion increased by 10.16 percent compared to
prior year’s amount of P1.396 trillion. After adding the negative net financial
assistance/subsidy of P802.51 billion, losses of P38.06 billion, and the non-operating
income of P10.18 billion to surplus from current operations of P986.16 billion, the
operations of the NG for FY 2017 resulted in a surplus of P155.77 billion.

Appropriations, Allotments, Obligations, Disbursements, and Balances

In performing its constitutional mandate, the COA, through the GAS, keeps the following
registries:

1. 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 NGAs and some GCs;
2. Registry of Allotments, Obligations and Disbursements (RAOD) to record the
allotments, obligations, and disbursements;

ii
3. Registry of Overdraft in Allotments (ROA) to record overdraft in allotments; and
4. Registry of Revenue (RR) to record the revenue that accrue to the General Fund
(GF).

These registries are maintained using budget data from the DBM and the Budget and
Financial Accountability Reports (BFARs) submitted by NGAs.

Based on the said registries, the following statements and/or schedules were prepared and
included in this Report:

1. Statement of Appropriations, Allotments, Obligations, and Disbursements


(SAAOD), which presents the authorized appropriations and adjustments,
adjusted allotments, obligations covered and not covered by allotments,
disbursements for payment of current year’s obligations, unreleased
appropriations, unobligated allotments, and unpaid obligations;
2. Statement of Appropriations, Allotments, Obligations, and Balances (SAAOB),
which shows the authorized appropriations and adjustments, adjusted allotments,
obligations covered and not covered by allotments, unreleased appropriations, and
unobligated allotments for reversion and retention;
3. Statement of Current Surplus (SCS), which shows total current surplus,
unappropriated surplus, unreleased appropriations, unobligated allotments, and if
any, overdraft in allotments;
4. Schedule of Continuing Appropriations (SCA); and
5. Schedule of Overdrafts in Allotments (SOA).

For FY 2017, the NG had total appropriations of P4.113 trillion; total allotments of P3.798
trillion, of which P1.87 million was to cover prior year’s overdraft; total obligations of
P3.466 trillion, of which P864.20 million was not covered by allotments; and total
disbursements of P2.624 trillion; thus, leaving an unreleased appropriations of P315.44
billion, unobligated allotments of P332.55 billion, and unpaid obligations of P842.49
billion.

Current Surplus

The Current Surplus of the NG is the net balance of the combined figures of the following
components: unappropriated surplus, unreleased continuing appropriations and
unobligated continuing appropriations, and overdraft in allotments.

The overall ending balance of the Current Surplus amounted to P939.10 billion, broken
down as follows: unappropriated surplus – P922.05 billion, unreleased continuing
appropriations – P4.83 billion, unobligated continuing appropriations – P13.54 billion, and
overdraft in allotments – P1.32 billion.

Financial Statements

The consolidated financial statements (FSs) presented in this Report was taken from the
FY 2017 and restated FY 2016 FSs of 318 NGAs and 3 GCs, namely: Cultural Center of
the Philippines, National Tobacco Administration, and Philippine Coconut Authority,
which are maintaining Special Account in the General Fund (SAGF).

iii
As required in the GAM for NGAs, enhanced Unified Accounts Code Structure, and other
relevant government accounting rules and regulations, the FSs should be prepared by the
NGAs by fund cluster, as follows:

Code Description
01 Regular Agency Fund
02 Foreign Assisted Projects Fund
03 Special Accounts-Locally Funded/Domestic Grants Fund
04 Special Accounts-Foreign Assisted/Foreign Grants Fund
05 Internally Generated Fund
06 Business Related Funds
07 Trust Receipts

However, some NGAs did not submit FSs by fund cluster, thus, the following consolidated
FSs presented in this Report were not prepared by fund cluster:

1. Statement of Financial Position (SFPos), which presents the assets and liabilities
classified as current and non-current, and the equity of the NG;
2. Statement of Financial Performance (SFPer), which presents the revenue,
expenses, net financial subsidy, gains or losses, and net surplus/(deficit) for the
period;
3. Statement of Changes in Net Assets/Equity (SCNA/E), which presents the net
surplus for the period, effects of changes in accounting policies, and prior period
and other adjustments;
4. Statement of Cash Flows (SCF), which presents the sources (cash inflows) and
utilizations (cash outflows) of funds;
5. Statement of Comparison of Budget and Actual Amounts (SCBAA), which
presents comparative budget information on the original and final budget, and
actual receipt and utilization of funds; and
6. Notes to Financial Statements, which presents additional and relevant information
and disclosures on the data presented in the consolidated FSs and information
about items that do not qualify for recognition in those statements.

National Government Debt

In monitoring the availment and repayment of domestic and foreign loans, and issuance
and redemption of treasury bills and bonds of the NG, the COA maintains a Registry of
Domestic and Foreign Borrowings (RDFB) based on the monthly and quarterly reports of
borrowings submitted by the Bureau of the Treasury (BTr).

Based on the RDFB, the following schedules were prepared and included in this Report:

1. Schedule of Commitment Fees Paid;


2. Schedule of Outstanding Foreign Borrowings, by Classification;
3. Schedule of Outstanding Foreign Borrowings, by Creditor;
4. Schedule of Domestic Debt Securities (treasury bills and treasury bonds); and
5. Schedule of Outstanding Domestic Loans (actual and guaranteed).

iv
The outstanding balance of the NG debt as at December 31, 2017 amounted to P7.131
trillion, composed of domestic borrowings of P4.639 trillion or 65.06 percent, and
foreign borrowings of P2.492 trillion or 34.94 percent.

Summary of Audit Opinions, and Significant and Common Audit


Observations and Recommendations

This Report includes a summary of the results of audit conducted on each NGA.
Specifically, it presents a summary of audit opinions on the FSs, and significant and
common audit observations and corresponding audit recommendations towards efficient
and effective operations of the NGAs. The audit opinion rendered on the fairness of
presentation of each NGA’s FSs was a representation and sole responsibility of the auditor
concerned.

Highlights of Accomplishments of the Top Ten Departments

This AFR also highlights the accomplishments taken from the respective Annual Reports
for FY 2017 of the following departments identified as top ten based on the amount of
their respective approved appropriations:

1. Department of Education;
2. Department of Public Works and Highways;
3. Department of National Defense;
4. Department of the Interior and Local Government;
5. Department of Social Welfare and Development;
6. Department of Health;
7. Department of Transportation;
8. Department of Agriculture;
9. Department of Environment and Natural Resources; and
10. Department of Finance.

Volume II presents the detailed FSs of the NG by department, including the pertinent
supporting schedules.

Methodology
Financial information was obtained from the audited and advanced copies of the FSs of
318 NGAs and 3 GCs maintaining SAGF. Change in the number of agencies reported in
previous year was due to: (a) inclusion of the FSs of the Overseas Workers Welfare
Administration which is now an attached agency of the Department of Labor and
Employment pursuant to Republic Act No. 10801; (b) non-submission of FSs by the
Commission on Elections; and (c) non-inclusion of the FSs for SAGF of the Tourism
Promotions Board as they were integrated in its Corporate Fund and were reported in the
AFR for GCs.

Trial Balances (TBs) and FSs were submitted by the agencies to the COA-GAS through
the Annual Financial Reporting System (AFRS), a web-based application system
developed by COA-GAS to facilitate online submission of the Pre-Closing TBs, FSs, and
Statement of Management’s Responsibility. In addition, the agencies submitted printed
and/or electronic copies of their TBs and FSs. The COA-GAS analyzed the individual FSs,
v
reconciled budgetary information with the DBM, verified deficiencies noted with agencies
concerned, and prepared the consolidated FSs by department and for the entire NG. Intra-
agency and inter-agency accounts, to a great extent, were eliminated based on combined
FSs of the NG.

All amounts presented in this Report are expressed in Philippine peso, rounded off to the
nearest thousands, unless otherwise stated. The difference between the totals and sum of
components is due to rounding off.

Guide to Users
For enhanced financial reporting and greater transparency, the electronic copy of this
Report is posted and can be downloaded from the COA website (www.coa.gov.ph).

The complete details of the audit opinions, and audit observations and recommendations
are presented in the individual Annual Audit Reports on the NGAs and are also posted on
the same website.

vi
TABLE OF CONTENTS
VOLUME I

Part Page

I FINANCIAL HIGHLIGHTS
Financial Position 1
Financial Performance 6
Changes in Net Assets/Equity (Accumulated Surplus/Deficit) 9
Cash Flows 9
Comparison of Budget and Actual Amounts 10

II APPROPRIATIONS, ALLOTMENTS, OBLIGATIONS,


DISBURSEMENTS AND BALANCES
Budget for Fiscal Year 2017 12
Appropriations, Allotments, Obligations, and Disbursements for FY 2017 13
Appropriations 15
Allotments 18
Appropriations and Allotments for Foreign-Assisted Projects 24
Unreleased Appropriations 26
Obligations 31
Overdraft in Allotments 33
Unobligated Allotments 35
Disbursements 38
Unpaid Obligations 39

III CURRENT SURPLUS OF THE NATIONAL GOVERNMENT


Legal Framework 43
Current Surplus of the National Government 44
Unappropriated Surplus 45
Unreleased Continuing Appropriations 45
Unobligated Continuing Appropriations 45
Overdraft in Allotments 46

IV COMPARATIVE FINANCIAL STATEMENTS


Statement of Financial Position - FY 2017 and FY 2016 Restated 47
Statement of Financial Performance - FY 2017 and FY 2016 Restated 48
Statement of Cash Flows - FY 2017 and FY 2016 Restated 49
Statement of Changes in Net Assets/Equity – FY 2017 and FY 2016 Restated 50
Statement of Comparison of Budget and Actual Amounts 51
Notes to Financial Statements 52
TABLE OF CONTENTS
VOLUME I

Part Page

V NATIONAL GOVERNMENT DEBT 228

VI SUMMARY OF AUDIT OPINIONS 238

VII SIGNIFICANT AND COMMON AUDIT OBSERVATIONS AND


RECOMMENDATIONS 343

VIII HIGHLIGHTS OF ACCOMPLISHMENTS OF TOP TEN


DEPARTMENTS
Department of Education 469
Department of Public Works and Highways 481
Department of the Interior and Local Government 487
Department of National Defense 505
Department of Social Welfare and Development 521
Department of Health 528
Department of Transportation 542
Department of Agriculture 563
Department of Environment and Natural Resources 580
Department of Finance 614

IX ANNEXES
A - List of NGAs which submitted their FSs for FY 2017 638
B - Original Budgeted Receipts 645
C - Final Budgeted Receipts 647
D - Actual Receipts 649
E - Difference between Final Budgeted Receipts and Actual Receipts 651
F - Original Budgeted Payments 653
G - Final Budgeted Payments 655
H - Actual Payments 657
I - Difference between the Final Budgeted Payments and Actual Payments 659
J - Net Receipts/Payments 661
LIST OF TABLES AND CHARTS

TABLES Page

I.A.1 Current Assets 2


I.A.2 Non – Current Assets 3
I.A.3 Current Liabilities 4
I.A.4 Non-Current Liabilities 5
I.A.5 Net Assets/Equity of the National Government 6
I.B.1 Financial Performance of the National Government 6
I.B.2 Net Financial Assistance/Subsidy 8
I.C.1 Accumulated Surplus/(Deficit) 9
II-1 Annual Budget, Fiscal Years 2009 to 2017 13
II-2 Comparative Appropriations, Allotments, Obligations,
Disbursements and Balances 14
II-3 Comparative Appropriations by Source 15
II-4 Appropriations by Department/Office by Source 17
II-5 Comparative Appropriations of Top Ten Departments/Offices 18
II-6 Comparative Allotments by Source 19
II-7 Allotments from Special Purpose Fund by Source 20
II-8 Allotments for Budgetary Support to GOCCs
by Government Corporation, by Purpose 21
II-9 Allotments by Department/Office and by Source 23
II-10 Comparative Allotments of Top Ten Departments/Offices 24
II-11 Appropriations for Foreign-Assisted Projects, by Department/Office, by
Allotment Class 25
II-12 Allotments for Foreign-Assisted Projects, by Department/Office, by
Allotment Class 26
II-13 Appropriations, Allotments and Unreleased Appropriations 26
II-14 Comparative Unreleased Appropriations by Source 28
II-15 Unreleased Appropriations from Special Purpose Funds 28
II-16 Comparative Unreleased Appropriations of Top Ten Departments/Offices 30
II-17 Unreleased Appropriations by Source, by Department/Office 30
II-18 Comparative Obligations, by Source 32
II-19 Obligations by Source, by Department/Office 33
II-20 Departments/Agencies with Overdraft 34
II-21 Comparative Obligations of Top Ten Departments/Offices 35
II-22 Allotments, Obligations and Unobligated Allotments, by
Department/Office 35
II-23 Comparative Unobligated Allotments, by Source 37
II-24 Comparative Unobligated Allotments of Top Ten Departments/Offices 37
II-25 Comparative Disbursements by Department/Office 38
II-26 Comparative Obligations, Disbursements and Unpaid Obligations, by
Department/Office 40
LIST OF TABLES AND CHARTS

TABLES Page

II-27 Comparative Unpaid Obligations by Department/Office 41

CHARTS Page
I.A.1 Financial Position for FYs 2017 and 2016 (in billion pesos) 1
I.A.2 Composition of Current Assets (in billion pesos) 2
I.A.3 Composition of Non-Current Assets (in billion pesos) 3
I.A.4 Composition of Current Liabilities (in billion pesos) 4
I.A.5 Composition of Non-Current Liabilities (in billion pesos) 5
I.B.1 Total Revenue (in billion pesos) 7
I.B.2 Current Operating Expenses (in billion pesos) 8
I.D.1 Cash Flows, by Activity (in billion pesos) 10
II-1 Trend Analysis of Appropriations, Allotments and Obligations (in billion
pesos) 15
II-2 Appropriations by Allotment Class (in billion pesos) 16
II-3 Comparative Allotments by Class (in billion pesos) 19
II-4 Unreleased Appropriations by Allotment Class (in billion pesos) 27
II-5 Comparative Obligations, by Allotment Class (in billion pesos) 32
II-6 Comparative Unobligated Allotments, by Class (in billion pesos) 36
II-7 Comparative Disbursements by Allotment Class (in billion pesos) 38
II-8 Comparative Unpaid Obligations by Allotment Class (in billion pesos)
40
I. FINANCIAL
HIGHLIGHTS
PART I – FINANCIAL HIGHLIGHTS

A. FINANCIAL POSITION
The Statement of Financial Position (SFPos) shows the assets and liabilities classified as
current and non-current, and the net assets/equity of the National Government (NG).

As at December 31, 2017, the aggregate assets and liabilities of the NG were posted at
P5.247 trillion and P7.105 trillion, respectively, resulting in a negative net assets/equity of
P1.858 trillion. Previous year’s total assets of P4.697 trillion increased by P550.40 billion
or 11.72 percent; liabilities of P6.541 trillion increased by P563.85 billion or 8.62 percent,
and net assets/equity of negative P1.845 trillion increased by negative P13.44 billion or
0.73 percent.

Chart I.A.1 Financial Position for FYs 2017 and 2016


(in billion pesos)

8,000.00 7,105.21
6,541.36 FY 2017
7,000.00
FY 2016
6,000.00 5,247.25
4,696.85
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
ASSETS LIABILITIES NET ASSETS
(1,000.00)
(2,000.00)
(1,857.96) (1,844.52)
(3,000.00)

ASSETS – P5.247 trillion

Total assets of P5.247 trillion is composed of current assets of P1.428 trillion and non-
current assets of P3.820 trillion.

Current Assets – P1.428 trillion

Current assets of P1.428 trillion constituted 27.21 percent of the total assets. It increased
by P334.09 billion or 30.55 percent from the previous year total of P1.094 trillion. Of the
total increase, cash and cash equivalents posted the highest amount of P199.60 billion or
529.08 percent. It was followed by receivables – P67.08 billion or 8.51 percent, other
current assets – P24.47 billion or 19.36 percent, inventories – P24.24 billion or 36.81
percent, and investments – P18.70 billion or 24.68 percent.

1
Chart I.A.2 presents the composition of current assets while Table I.A.1 shows the
comparison of current assets for FYs 2017 and 2016.

Chart I.A.2 Composition of Current Assets


(in billion pesos)

Other Current Cash and Cash


Assets Equivalent
150.85 237.33
10.57% 16.62%

Inventories
90.09 Investments
6.31% 94.47
Receivables 6.62%
854.92
59.88%

Table I.A.1 Current Assets

Amount
(in million pesos)
Particulars Percent
2016 Increase/
2017
(Restated) (Decrease)
Cash and Cash Equivalents 237,331.70 37,726.75 199,604.94 529.08
Investments 94,465.13 75,765.94 18,699.19 24.68
Receivables 854,917.54 787,841.07 67,076.47 8.51
Inventories 90,091.46 65,853.11 24,238.35 36.81
Other Current Assets 150,852.72 126,383.38 24,469.34 19.36
Total 1,427,658.54 1,093,570.25 343,088.29 30.55

Total cash and cash equivalents of the NG amounted to P714.26 billion but was reduced
to P237.33 billion due to the total negative balance of P476.93 billion composed of Cash-
Treasury/Agency Deposit, Special Account and Cash-Treasury/Agency Deposit, Trust
amounting to P384.07 billion and P92.86 billion, respectively. The details are discussed in
the Consolidated Notes to Financial Statements.

Non-Current Assets – P3.820 trillion

Non-current assets of P3.820 trillion accounted for 72.79 percent of the total assets. It
registered an increase of P216.32 billion or 6 percent compared to FY 2016 of P3.603
trillion. The increment was due primarily to the increase in property, plant and equipment
(PPE) of P320.07 billion or 14.71 percent. The increase was partially reduced by the
decrease in investments of P111.22 billion or 10.05 percent. Among the components of
the non-current assets, the highest percentage increase was reported for intangible assets
at 57.54 percent. Table I.A.2 shows the comparison of non-current assets for FYs 2017
and 2016.

2
Table I.A.2 Non-Current Assets

Amount
(in million pesos)
Particulars Percent
2016 Increase/
2017
(Restated) (Decrease)
Investments 995,205.69 1,106,420.92 (111,215.22) (10.05)
Receivables 203,481.17 200,276.49 3,204.67 1.60
Investment Property 2,159.38 2,699.79 (540.41) (0.20)
Property, Plant and Equipment 2,496,282.52 2,176,209.17 320,073.35 14.71
Biological Assets 1,478.26 1,942.53 (464.26) (23.90)
Intangible Assets 4,533.73 2,877.87 1,655.86 57.54
Other Non-Current Assets 116,449.87 112,848.72 3,601.15 3.19
Total 3,819,590.61 3,603,275.48 216,315.13 6.00

The biggest components of non-current assets are PPE and investments, accounting for
65.36 percent and 26.06 percent, respectively. Chart I.A.3 shows the composition of non-
current assets.

Chart I.A.3 Composition of Non-Current Assets


(in billion pesos)

995.21
26.06% 203.48
5.33%

116.45
3.05%
4.53
0.12%

2.16
0.06%
2,496.28 1.48
65.35% 0.04%

Property, Plant and Equipment Investments Receivables


Other Non-Current Assets Intangible Assets Investment Property
Biological Assets

LIABILITIES – P7.105 trillion

Total liabilities of P7.105 trillion increased by P563.85 billion or 8.62 percent from
previous year’s P6.541 trillion. A total of P5.938 trillion or 83.58 percent constitutes non-
current liabilities while P1.167 trillion or 16.42 percent represents current liabilities.

Current Liabilities – P1.167 trillion

Current liabilities of P1.167 trillion was higher by P79.62 billion or 7.32 percent than
previous year of P1.087 trillion. This was due to the increase in financial liabilities of

3
P105.00 billion or 11.90 percent, inter-agency payables of P1.66 billion or 2.68 percent,
intra-agency payables of P131.88 million, trust liabilities of P13.52 billion or 25.69 percent
and provisions of P13.78 million or 29.09 percent, which were partially offset by the
decrease in other payables of P40.15 billion or 47.19 percent, and deferred
credits/unearned income of P540.79 million or 9.91 percent. Table I.A.3 shows the
comparison of current liabilities for FYs 2017 and 2016.

Table I.A.3 Current Liabilities

Amount
(in million pesos)
Particulars Percent
2016 Increase/
2017
(Restated) (Decrease)
Financial Liabilities 987,220.73 882,225.36 104,995.37 11.90
Inter-Agency Payables 63,459.60 61,802.23 1,657.37 2.68
Intra-Agency Payables 131.88 - 131.88 -
Trust Liabilities 66,122.09 52,606.04 13,516.05 25.69
Other Payables 44,928.64 85,081.07 (40,152.43) (47.19)
Deferred Credits/Unearned Income 4,918.20 5,458.98 (540.79) (9.91)
Provisions 61.16 47.38 13.78 29.09
Total 1,166,842.29 1,087,221.07 79,621.22 7.32

The biggest component of current liabilities represents financial liabilities of P987.22


billion or 84.61 percent. Financial liabilities include the current portion of public debt,
both foreign and domestic in the amount of P687.97 billion, of which, 98.59 percent or
P601.06 billion was reported by the BTr, the agency mandated to manage, control and
service the public debt of the NG. Chart I.A.4 shows the composition of current liabilities.

Chart I.A.4 Composition of Current Liabilities


(in billion pesos)

66.12
5.67% 63.46
5.44%

44.93
3.85%
4.92
0.42%

987.22 0.13
84.61% 0.01%

0.06
0.01%
Financial Liabilities Trust Liabilities
Inter-Agency Payables Other Payables
Deferred Credits/Unearned Income Intra-Agency Payables
Provisions

4
Non-Current Liabilities – P5.938 trillion

Non-current liabilities increased by P484.23 billion or 8.88 percent compared to the


previous year of P5.454 trillion. This was due to the increase in the balances of financial
liabilities of P473.99 billion or 8.79 percent, trust liabilities of P4.24 billion or 37.11
percent, deferred credits/unearned income of P1.26 billion or 4.80 percent, other payables
of P5.65 billion or 23.55 percent, and offset by the decrease in provisions of P916.07
million or 31.44 percent. Table I.A.4 shows the comparison of FYs 2017 and 2016 non-
current liabilities.

Table I.A.4 Non-Current Liabilities

Amount
(in million pesos)
Particulars Percent
2016 Increase/
2017
(Restated) (Decrease)
Financial Liabilities 5,863,483.59 5,389,492.34 473,991.25 8.79
Trust Liabilities 15,647.42 11,411.90 4,235.51 37.11
Deferred Credits/Unearned Income 27,578.55 26,315.42 1,263.13 4.80
Other Payables 29,660.42 24,007.63 5,652.78 23.55
Provisions 1,997.84 2,913.91 (916.07) (31.44)
Total 5,938,367.82 5,454,141.21 484,226.61 8.88

Of the total non-current liabilities, P5.863 trillion or 98.74 percent represents financial
liabilities. This amount includes P5.852 trillion pertaining to the non-current portion of
public debt, both foreign and domestic, of which P5.851 trillion or 99.99 percent was
reported by the BTr. Chart I.A.5 shows the composition of non-current liabilities.

Chart I.A.5 Composition of Non-Current Liabilities


(in billion pesos)

27.58
0.46%

29.66
0.50%

5,863.48
98.74% 15.65
0.26%

2.00
0.03%

Financial Liabilities Other Payables


Deferred Credits/Unearned Income Trust Liabilities
Provisions

5
NET ASSETS/EQUITY – (P1.858 trillion)
As in prior years, liabilities of the NG exceeded the assets resulting in a negative balance
of P1.858 trillion in equity. The FY 2016 negative balance of P1.845 trillion further
increased by P13.44 billion or 0.73 percent in FY 2017. The negative balance of P1.858
trillion is composed of the negative balance of government equity of P1.859 trillion, and
the unrealized gain of P923.18 million. Table I.A.5 shows the net assets/equity for FYs
2017 and 2016.

Table I.A.5 Net Assets/Equity of the National Government

Amount
(in million pesos)
Particulars Percent
2016 Increase/
2017
(Restated) (Decrease)
Government Equity (1,858,884.14) (1,859,166.68) 282.55 (0.02)
Accumulated Surplus/(Deficit) (1,881,136.21) (1,935,204.80) 54,068.60 (2.79)
Contributed Capital 8.00 8.00 - -
Revaluation Surplus 22,244.07 76,030.12 (53,786.05) (70.74)
Unrealized Gain/(Loss) 923.18 14,650.14 (13,726.96) (93.70)
Unrealized Gain/(Loss) from Changes
in Fair Value of Financial Assets 923.18 14,650.14 (13,726.96) (93.70)
Net Assets/Equity (1,857,960.96) (1,844,516.54) (13,444.42) (0.73)

B. FINANCIAL PERFORMANCE
The Statement of Financial Position (SFPer) reflects the generated revenue/gains from
various sources, expenses incurred by allotment class including losses from various
transactions, and the surplus/(deficit) during the year.

For FY 2017, the NG realized a surplus from current operations of P986.16 billion, the
difference of total revenue generated of P2.524 trillion and current operating expenses
incurred of P1.537 trillion. The said surplus was slightly increased by P10.18 billion from
sale of assets and gains but remarkably reduced by P840.57 billion, composed of negative
balance of financial assistance/subsidy of P802.51 billion, and losses of P38.06 billion,
resulting in net surplus of P155.77 billion. Table I-6 presents the financial performance of
NG for FYs 2017 and 2016.

Table I.B.1 Financial Performance of the National Government

Amount
(in million pesos)
Particulars Percent
2016 Increase/
2017
(Restated) (Decrease)
Revenue 2,523,594.14 2,229,816.10 293,778.04 13.18
Less: Current Operating Expenses 1,537,436.65 1,395,671.57 141,765.08 10.16
Surplus/(Deficit ) from Current Operations 986,157.49 834,144.54 152,012.95 18.22
Net Financial Assistance/Subsidy (802,505.15) (732,770.09) (69,735.05) 9.52
Sale of Assets 302.69 717.46 (414.78) (57.81)
Gains 9,874.79 16,019.79 (6,144.99) (38.36)

6
Amount
(in million pesos)
Particulars Percent
2016 Increase/
2017
(Restated) (Decrease)
Losses (38,064.40) (76,859.13) 38,794.73 (50.48)
Surplus/(Deficit) 155,765.42 41,252.56 114,512.86 277.59

Revenue – P2.524 trillion

Compared to P2.230 trillion for FY 2016, total revenue for FY 2017 of P2.524 trillion
increased by P293.78 billion or 13.18 percent, composed of tax revenue and non-tax
revenue of P2.257 trillion and P266.41 billion, respectively. Tax revenue of P2.257 trillion
was higher by P270.90 billion or 13.64 percent than FY 2016 of P1.986 trillion while non-
tax revenue of P266.41 billion was higher by P22.88 billion or 9.39 percent compared with
FY 2016 of P243.53 billion. The comparison of revenue collections for FYs 2017 and 2016
is presented in Chart I.B.1.

Chart I.B.1 Total Revenue


(in billion pesos)

3,000.00 266.41 243.53


10.56% 10.92%
2,500.00
2,000.00
1,500.00
2,257.18 1,986.28
1,000.00 89.44% 89.08%
500.00
-
FY 2017 FY 2016
Tax Revenue Non Tax Revenue

Current Operating Expenses – P1.538 trillion

For FY 2017, the current operating expenses of the NG amounted to P1.538 trillion, higher
by P141.77 billion or 10.16 percent than previous year amount of P1.396 trillion. The
components are: Personnel Services (PS) of P831.60 billion or 54.09 percent, Maintenance
and Other Operating Expenses (MOOE) of P302.21 billion or 19.66 percent, Financial
Expenses (FinEx) of P325.20 billion or 21.15 percent, and Non-Cash Expenses of P78.43
billion or 5.10 percent.

The increase in the total current operating expenses was a result of total increases on the
components of expenses, the highest increase of which was for PS of P69.52 billion or
9.12 percent, followed by MOOE of P55.18 billion or 22.34 percent, FinEx of P9.40 billion
or 2.98 percent, and non-cash expenses of P7.66 billion or 10.83 percent. Chart I.B.2 shows
the comparison of current operating expenses for FYs 2017 and 2016.

7
Chart I.B.2 Current Operating Expenses
(in billion pesos)

900.00
831.60
800.00 762.08
700.00

600.00

500.00

400.00
302.21 325.20 315.80
300.00
247.03
200.00

100.00 78.43 70.77

0.00
PS MOOE FinEx Non-Cash Expenses

FY 2017 FY 2016

Net Financial Assistance/Subsidy – (P802.51) billion

Financial assistance/subsidy to NGAs, LGUs, government corporations (GCs), and non-


government organizations/people’s organizations (NGOs/POs) of P805.80 billion was
more than the financial assistance/subsidy from LGUs and GCs of P3.29 billion, thereby
resulting in negative balance of net financial assistance/subsidy of P802.51 billion, the
details of which are shown in Table I.B.2.

Table I.B.2 Net Financial Assistance/Subsidy

Amount
(in million pesos)
Particulars Percent
2016 Increase/
2017
(Restated) (Decrease)
Financial Assistance/Subsidy from NGAs,
LGUs, GOCCs 3,290.50 3,285.23 5.27 0.16
Assistance from Local Government Units 3,286.12 3,252.67 33.45 1.03
Assistance from Government-Owned or
Controlled Corporations 4.38 32.56 (28.17) (86.54)
Less: Financial Assistance/Subsidy to
NGAs, LGUs, GOCCs, NGOs/POs 805,795.65 736,055.32 69,740.33 9.47
Subsidy to NGAs 203.64 10,431.52 (10,227.88) (98.05)
Financial Assistance to Local Government
Units 50,988.27 48,861.29 2,126.98 4.35
Budgetary Support to Government-Owned
or Controlled Corporations 133,700.97 135,043.59 (1,342.62) (0.99)
Financial Assistance to NGOs/POs 539.11 478.31 60.80 12.71
Internal Revenue Allotment 486,883.08 428,617.58 58,265.50 13.59
Subsidies - Others 133,480.57 112,623.04 20,857.54 18.52
Net Financial Assistance/Subsidy (802,505.15) (732,770.09) (69,735.05) 9.52

8
C. CHANGES IN NET ASSETS/EQUITY
The Statement of Changes in Net Assets/Equity (SCNA/E) reflects the elements affecting
the changes of the accumulated surplus/(deficit) at the end of the year.

From the FY 2017 negative beginning balance of P1.935 trillion, the year-end balance of
accumulated surplus/(deficit) amounted to negative P1.881 trillion. The decrease in the
accumulated deficit of P54.07 billion represents the difference of surplus for the period of
P155.77 billion and total adjustments of P101.70 billion composed of adjustment of net
revenue recognized directly in net assets/equity of negative P4.02 billion, and other
adjustments of negative P97.67 billion. Table I.C.1 shows the comparative accumulated
surplus/(deficit) for FYs 2017 and 2016.

Table I.C.1. Accumulated Surplus/(Deficit)

2016
2017
Particulars (Restated)
(in million pesos)
Balances at January 1 (1,935,204.80) (1,564,181.68)
Add/(Deduct):
Changes in accounting policy - (1,537.64)
Prior period errors - (178,451.20)
Other adjustments - (45,570.72)
Restated Balances (1,935,204.80) (1,789,741.24)
Add/(Deduct):
Changes in Net Assets/Equity for the Fiscal Year
Surplus/(Deficit) for the period 155,765.42 41,252.56
Adjustment of net revenue recognized directly in net
assets/equity (4,024.20) (12,782.81)
Others (97,672.62) (173,933.32)
Balances at December 31 (1,881,136.21) (1,935,204.80)

D. CASH FLOWS
The Statement of Cash Flows (SCF), which was prepared using the direct method, shows
the cash inflows and outflows from operating, investing and financing activities.

The cash balance of the NG as at December 31, 2017 of P865.95 billion was higher by
P306.77 billion or 54.86 percent than the FY 2016 year-end balance of P559.18 billion.
The FY 2017 ending balance differed by P628.62 billion with the total cash and cash
equivalents of P237.33 billion in the SFPos. The difference represents the negative
balances of Cash-Treasury/Agency Deposit, Special Account of P432.79 billion and Cash-
Treasury/Agency Deposit, Trust of P118.46 billion, and Sinking Fund of P77.37 billion
recognized as investment instead of cash and cash equivalents in the books of the BTr NG.

The balance of cash and cash equivalents of P794.68 billion as at January 1, 2016 varied
from the P801.39 billion as at December 31, 2015 reported in the FY 2016 AFR. The
difference of P6.71 billion resulted from the inclusion of the P1.06 billion accounts of the
Overseas Workers Welfare Administration, a former government corporation but now an

9
attached agency of the Department of Labor and Employment, and the exclusion of P7.78
billion accounts of the Commission on Elections due to non-submission of FY 2017 FSs.

For FY 2017, total cash inflows of P4.320 trillion was more than the total outflows of
P4.013 trillion or a net cash flows of P306.41 billion. The details of total cash inflows and
outflows, by activity, for FYs 2017 and 2016 are shown in Chart I.D.1.

Chart I.D.1 Cash Flows, by Activity


(in billion pesos)

4,500.00 FY 2017 FY 2016

4,000.00

3,500.00 1,502.04
1,226.67

3,000.00 1,050.02 1,340.86

181.09
2,500.00 512.93
143.38
372.68
2,000.00

1,500.00
2,636.40
2,273.53 2,345.04
1,000.00 2,060.82

500.00

-
Inflows Outflows Inflows Outflows

Operating Investing Financing

E. COMPARISON OF BUDGET AND ACTUAL AMOUNTS


The Statement of Comparison of Budget and Actual Amounts (SCBAA) presents the
original and final targets of receipts versus the actual amounts collected as well as the
original and final budgets versus the actual amounts paid.

The SCBAA presents the receipts and payments classified into budgeted amounts (original
and final) and the actual amounts on comparable basis. The final budgeted amounts are
compared with the actual amounts on comparable basis to get the difference or variance.

For FY 2017, the original and final budgeted amounts under receipts totalled P2.479
trillion and P4.011 trillion, respectively, while the actual amounts of receipts amounted to
P3.958 trillion. The variance between the final targeted and actual receipts amounting to
P53.80 billion represents the under-collections of the NG during the year.

10
The original and final budgeted amounts under payments amounted to P3.604 trillion and
P3.852 trillion, respectively, while the actual amounts of payments amounted to P2.619
trillion. The difference of P1.233 trillion between the final budget and actual payments
represents unutilized final budgeted amount, reflecting a low budget utilization rate of only
67.99 percent for FY 2017, attributed collectively to unreleased appropriations,
unobligated allotments, and unpaid obligations amounting to P66.54 billion, P325.98
billion, and P841.46 billion, respectively.

Under original budgeted amounts, payments exceeded receipts by P1.124 trillion.


Conversely, receipts exceeded payments under the final budgeted amounts by P159.21
billion. Actual receipts was higher by P1.339 trillion than actual payments.

11
II. APPROPRIATIONS,
ALLOTMENTS,
OBLIGATIONS,
DISBURSEMENTS AND
BALANCES
PART II – APPROPRIATIONS, ALLOTMENTS,
OBLIGATIONS, DISBURSEMENTS, AND BALANCES

Budget for Fiscal Year 2017


The FY 2017 budget is the first budget of the Duterte Administration and is centered along the
overarching theme of A Budget of Real Change, By the People and For the People (Paggugol
Tungo sa Tunay na Makabuluhang Pagbabago) and was designed to effect real change – a
change that will positively impact the lives of the Filipinos. To achieve this, the 2017 Budget
is anchored on the following principles: (1) fair fiscal policy, (2) credible budgets, (3) strong
focus on social order and equitable progress, (4) real fiscal transparency, and (5) governance
and budget reforms.

The FY 2017 National Budget was initially drafted by the Aquino Administration. However,
it was revised to support the following priority agenda of the Duterte Administration as defined
in the President’s first State of the Nation Address in July 2016:

 Accelerate annual infrastructure spending to 5.4 percent of Gross Domestic


Product (GDP) in 2017

The government will hike infrastructure spending to 5.4 percent of GDP in 2017 to
provide a reliable transport network by, among others, improving national roads and
bridges, including the implementation of the Mindanao Logistics Infrastructure
Network as well as inter-island linkages, to enhance access to service centers and tourist
sites;

 Maintain peace and order within the country and with our neighbors

To achieve real progress, the government will be relentless in its fight against crime
and corruption, investing on a professional police and military establishment, a working
justice system, and a lean and clean bureaucracy.

 Invest on human capital development

The government will provide more for education and health systems, to ensure equal
access to economic opportunities responsive to the human resource needs of businesses
and the private sector.

 Provide ample social protection and sustainable livelihood

The government will ensure that the poorest and the marginalized sectors of society are
protected from economic shocks and environmental disasters.

 Increase agricultural and rural enterprise productivity and rural tourism

To ensure equitable growth, the government will provide greater support to agriculture
and small, medium, and micro enterprises through the provision of infrastructure,

12
credit, research, innovation and post-harvest and common facilities in rural and
agricultural communities.

 Ensure sustained efficient macroeconomic management

The government will ensure that the sustained efficient macroeconomic management
will result in increased buying power given reduced income taxes and lower prices
accompanying lower inflation rates and adequate transport network and cheaper
business operations.

Total approved budget under Republic Act (R.A.) No. 10924, the New General Appropriations
Act (GAA) for FY 2017, amounted to P2.499 trillion composed of Programmed New
Appropriations of P2.432 trillion, comprising 97.30 percent, and Unprogrammed
Appropriations of P67.50 billion. Unprogrammed appropriations represent standby authority
to be released only when revenue collections in any one of the identified revenue sources
exceeds targets per Budget of Expenditures and Sources of Financing or when new foreign
loans or grants are received.

In comparison with the last budget (FY 2016) of the Aquino Administration of P2.139 trillion,
FY 2017 amount was higher by P360.88 billion or 16.87 percent. Compared to the last budget
of the Arroyo Administration for FY 2010 of P1.304 trillion, FY 2017 budget was higher by
P1.195 trillion or 91.62 percent. Table II-1 shows the annual budget of the National
Government (NG) from 2009 to 2017.

Table II-1 Annual Budget, Fiscal Years 2009 to 2017

Increase/
Fiscal General Appropriations
(Decrease) Percent
Year Appropriations Act
(in million pesos)
2017 R.A. No. 10924 2,499,486.95 360,882.36 16.87
2016 R.A. No. 10717 2,138,604.60 275,779.94 14.80
2015 R.A. No. 10651 1,862,824.65 254,321.57 15.81
2014 R.A. No. 10633 1,608,503.08 240,273.93 17.56
2013 R.A. No. 10352 1,368,229.16 123,035.89 9.88
2012 R.A. No. 10155 1,245,193.27 244,805.51 24.47
2011 R.A. No. 10147 1,000,387.76 (304,018.64) (23.31)
2010 R.A. No. 9970 1,304,406.40 134,087.65 11.46
2009 R.A. No. 9524 1,170,318.75

Appropriations, Allotments, Obligations, and Disbursements


for FY 2017
Appropriations are authorizations made by law or legislative enactment directing payment
out of the government funds under specified conditions or for specific purposes.

Allotments are authorizations issued by the Department of Budget and Management (DBM)
to national government agencies (NGAs) and government corporations (GCs) maintaining
Special Account in the General Fund (SAGF) to incur obligations for specified amounts
contained in legislative appropriations in the form of budget releasing documents.

13
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.

Overdraft in allotments are obligations incurred by NGAs not covered by allotments or in


excess of allotments.

Unreleased appropriations represent the balance of the total appropriations for the year over
the total allotments released to various NGAs.

Unobligated allotments refer to the variance between total allotments, excluding allotments
to cover prior year’s overdraft, and obligations covered by allotments.

Disbursements represent the actual amounts spent or paid during a given period in currency,
thru issuance of checks/Advice to Debit Account (ADA)/Tax Remittance Advice (TRA), direct
payment abroad thru withdrawal application from the loan account, and outright deductions
from claims.

Unpaid Obligations represent the balance between total obligations and total disbursements.

For FY 2017, the NG had a total appropriations of P4.113 trillion, total allotments of P3.798
trillion, of which P1.87 million was to cover prior year’s overdraft, total obligations of P3.466
trillion, of which P864.20 million was not covered by allotment, and disbursements of P2.624
trillion thus, leaving an unreleased appropriations of P315.44 billion, unobligated allotments
of P332.55 billion, and unpaid obligations of P842.49 billion.

Compared with the previous year, a remarkable amount of increase was reported for:
appropriations – P354.35 billion or 9.43 percent, allotments – P368.68 billion or 10.75 percent,
obligations – P571.54 billion or 19.75 percent, disbursements – P204.85 billion or 8.47 percent
and unpaid obligations – P366.69 billion or 77.07 percent. The unreleased balance of
appropriations and unobligated balance of allotments both decreased by P14.33 billion or 4.34
percent and P201.10 billion or 37.68 percent, respectively. Table II-2 shows the appropriations,
allotments, obligations, disbursements and balances for FYs 2017 and 2016.

Table II-2 Comparative Appropriations, Allotments, Obligations,


Disbursements and Balances

Amount
(in million pesos)
Particulars Percent
Increase/
FY 2017 FY 2016
(Decrease)
Appropriations 4,113,286.31 3,758,934.57 354,351.73 9.43
Allotments 3,797,851.01 3,429,173.55 368,677.46 10.75
Obligations 3,466,158.89 2,894,615.00 571,543.89 19.75
Covered by Allotments 3,465,294.69 2,894,396.02 570,898.67 19.72
Overdraft in Allotments 864.20 218.98 645.22 294.65
Disbursements 2,623,665.98 2,418,814.76 204,851.22 8.47
Unreleased Appropriations 315,435.30 329,761.03 (14,325.73) (4.34)
Unobligated Allotments 332,554.45 533,655.12 (201,100.67) (37.68)
Unpaid Obligations 842,492.90 475,800.24 366,692.67 77.07

14
From FYs 2009 to 2017, the appropriations, allotments and obligations grew at an average rate
of 7.45 percent, 9.23 percent, and 8.76 percent, respectively. This trend analysis covers the
last one and a half years of President Arroyo’s Administration, the six years of President
Aquino’s Administration and the first one and a half years of President Duterte’s
Administration. Chart II-1 and Table II-3 show the trend analysis of appropriations, allotments
and obligations from FYs 2009 to 2017.

Chart II-1 Trend Analysis of Appropriations,


Allotments and Obligations
(in billion pesos)

4,113.29
4,500.00 3,758.93
4,000.00 3,077.57
3,507.80 3,797.85
2,335.48 2,408.79 2,818.39
3,500.00
2,497.48 2,529.56 3,466.16
3,000.00 3,146.83 3,429.17
2,500.00 2,729.82
2,573.71 2,894.62
2,000.00 2,379.41 2,554.02
1,976.75 2,161.40 2,228.80 2,227.53
1,500.00 1,879.46 2,196.11
1,997.29
1,000.00 1,868.48
1,764.40
500.00
0.00
2009 2010 2011 2012 2013 2014 2015 2016 2017

Appropriations Allotments Obligations

Appropriations – P4.113 trillion


For FY 2017, total appropriations of the NG amounted to P4.113 trillion composed of current
year appropriations of P3.714 trillion, and continuing appropriations of P399.23 billion.
Current year’s appropriations consists of new general appropriations (GA) of P2.499 trillion,
and automatic appropriations of P1.215 trillion, while continuing appropriations consists of
unreleased appropriations of P162.89 billion and unobligated allotments of P236.34 billion.
Table II-3 shows the comparative appropriations by source for FYs 2017 and 2016.

Table II-3 Comparative Appropriations by Source

Amount
(in million pesos)
Source Percent
Increase/
2017 2016
(Decrease)
Current Year’s Appropriations 3,714,056.54 3,381,320.06 332,736.47 9.84
New General Appropriations 2,499,486.95 2,138,604.60 360,882.36 16.87
Agency Specific Budget 1,965,345.50 1,619,842.11 345,503.39 21.33
Special Purpose Funds 534,141.45 518,762.49 15,378.97 2.96
Automatic Appropriations 1,214,569.59 1,242,715.47 (28,145.88) (2.26)
Continuing Appropriations 399,229.77 377,614.51 21,615.26 5.72
Unreleased Appropriations 162,887.20 172,766.60 (9,879.40) (5.72)
Unobligated Allotments 236,342.58 204,847.92 31,494.66 15.37
Total 4,113,286.31 3,758,934.57 354,351.73 9.43

15
By allotment class the components of FY 2017 appropriations of P4.113 trillion are the
following: Personnel Services (PS) – P993.42 billion, Maintenance and Other Operating
Expenses (MOOE) – P1.444 trillion, Financial Expenses (FinEx) – P336.96 billion, and Capital
Outlay (CO) – P1.339 trillion. Chart II-2 presents the comparative appropriations by allotment
class for FYs 2017 and 2016.

Chart II-2 Appropriations by Allotment Class


(in billion pesos)

1,600.00
1,444.18 1,338.73
1,400.00
1,264.37 1,275.98
1,200.00
993.42
1,000.00
823.94
800.00

600.00
394.64
400.00 336.96

200.00

-
PS MOOE FinEx CO

2017 2016

The amount appropriated for MOOE was higher by P179.81 billion or 14.22 percent than the
FY 2016 amount of P1.264 trillion. The increase was for the expansion of major social and
economic programs, notably the basic education program of the Department of Education
(DepEd), routine maintenance of infrastructures by the Department of Public Works and
Highways (DPWH), substantial subsidies to GCs, and financial assistance to local government
units (LGUs).

The appropriations for CO comprised 32.55 percent of the total budget. The increase of P62.74
billion or 4.92 percent was for the infrastructure requirements of the K-12 program of the
DepEd, health facilities enhancement program of the Department of Health (DOH), transport
infrastructure program of the Department of Transportation (DOTr) and road infrastructure
program of the DPWH.

PS of P993.42 billion represented 24.15 percent of the total appropriations. The increment of
P169.48 billion or 20.57 percent was primarily due to the financial requirements of the creation
of new positions and filling up of vacant items of key agencies as well as provisions for
compensation benefits including salary increase and additional allowances for
military/uniformed personnel.

Included in the appropriations for FinEx of P336.96 billion are interest expenses and bank
charges totaling P336.90 billion. Compared with the FY 2016 appropriations of P394.64
billion, a drop by P57.68 billion or 14.62 percent indicated improvement in government debt
management.

16
Table II-4 shows the appropriations by department/office and by source.

Table II-4 Appropriations by Department/Office by Source

Amount
(in billion pesos)
Continuing
Current Year Appropriations
Department/Office Appropriations
Total Agency Special Automatic Unreleased
Unobligated
Specific Purpose Appro- Appro-
Allotments
Budget Funds priations priations
Finance 1,411.85 21.50 201.03 1,141.11 42.62 5.60
Public Works and Highways 689.00 566.58 8.10 13.12 21.46 79.73
Education 501.24 434.63 3.49 26.88 2.16 34.08
National Defense 223.90 137.18 60.31 4.97 13.63 7.81
Interior and Local
Government 209.49 150.04 49.50 3.13 0.75 6.07
Social Welfare and
Development 161.57 126.78 8.07 0.42 5.39 20.91
Health 114.28 96.34 3.13 3.47 0.16 11.18
Transportation 83.48 53.35 5.73 4.08 0.19 20.13
State Universities and
Colleges 69.18 58.72 2.34 2.95 0.75 4.42
Other Executive Offices 52.73 43.40 0.91 3.93 0.96 3.54
Agriculture 51.79 39.22 0.30 1.42 4.76 6.10
Autonomous Region in
Muslim Mindanao 37.77 33.30 1.14 0.24 0.03 3.06
The Judiciary 34.78 31.85 0.32 0.92 - 1.68
Environment and Natural
Resources 31.30 26.65 0.91 0.77 0.27 2.71
Science and Technology 21.96 20.77 0.27 0.22 0.12 0.57
Justice 20.85 15.58 3.07 1.10 0.07 1.03
Foreign Affairs 20.62 16.59 0.64 0.13 0.01 3.25
Congress of the Philippines 18.27 14.98 - 0.47 - 2.83
Office of the President 16.75 15.79 0.12 0.05 - 0.80
Labor and Employment 15.18 11.44 0.71 0.31 0.16 2.56
Agrarian Reform 13.86 9.80 0.19 0.34 0.10 3.42
Commission on Elections 12.22 3.12 0.10 0.20 - 8.80
Commission on Audit 11.67 10.11 0.35 0.85 - 0.36
National Economic and
Development Authority 6.70 5.29 0.16 0.23 0.25 0.78
Information and
Communications
Technology 6.56 3.53 0.08 0.25 - 2.70
Trade and Industry 5.78 4.85 0.18 0.16 0.01 0.58
Tourism 4.02 3.28 0.04 0.03 0.33 0.34
Budget and Management 3.46 2.08 0.04 0.92 0.00 0.43
Presidential
Communications
Operations Office 3.00 2.78 0.09 0.05 0.05 0.03
Energy 2.98 1.10 0.06 1.68 - 0.14
Metropolitan Manila
Development Authority 2.63 - 2.19 0.00 - 0.43
Office of the Ombudsman 2.54 2.22 0.04 0.08 - 0.21
Civil Service Commission 1.49 1.34 0.05 0.09 - 0.01
Commission on Human
Rights 0.82 0.72 0.05 0.03 - 0.02
Office of the Vice-President 0.70 0.43 0.02 0.01 0.20 0.04

17
Amount
(in billion pesos)
Continuing
Current Year Appropriations
Department/Office Appropriations
Total Agency Special Automatic Unreleased
Unobligated
Specific Purpose Appro- Appro-
Allotments
Budget Funds priations priations
Joint Legislative-Executive
Councils 0.00 0.00 0.00 - - 0.00
Unreleased Special Purpose
Fund 248.89 - 180.43 - 68.46 -
Total 4,113.29 1,965.35 534.14 1,214.57 162.89 236.34

The Department of Finance (DOF) reported the highest amount of appropriations of P1.412
trillion representing 34.32 percent of the total appropriations, of which P647.28 billion or 15.74
percent was for debt service, and P486.89 billion or 11.84 percent for Internal Revenue
Allotments (IRA) of the LGUs being managed by the Bureau of the Treasury (BTr). The
DPWH and DepEd followed with P689 billion and P501.24 billion, respectively.

In comparison with the FY 2016, the appropriations of DPWH, DepEd and DOF increased by
P117.83 billion or 20.63 percent, P72.19 billion or 16.82 percent, and P46.74 billion or 3.42
percent, respectively.

Table II-5 shows the appropriations of top ten departments/offices for FYs 2017 and 2016.

Table II-5 Comparative Appropriations of Top Ten Departments/Offices

Amount
Percent (in million pesos)
Department/Office Percent
Distribution Increase/
2017 2016
(Decrease)
Finance 34.32 1,411,851.87 1,365,114.86 46,737.01 3.42
Public Works and Highways 16.75 688,995.03 571,165.24 117,829.79 20.63
Education 12.19 501,240.94 429,055.60 72,185.34 16.82
National Defense 5.44 223,896.24 195,869.03 28,027.22 14.31
Interior and Local Government 5.09 209,485.20 180,201.85 29,283.35 16.25
Social Welfare and Development 3.93 161,568.37 131,933.81 29,634.56 22.46
Health 2.78 114,275.26 94,850.26 19,425.01 20.48
Transportation 2.03 83,479.10 92,702.35 (9,223.25) (9.95)
State Universities and Colleges 1.68 69,176.55 60,242.53 8,934.02 14.83
Other Executive Offices 1.28 52,731.82 21,465.67 31,266.15 145.66
Other Departments/Offices and
Unreleased Special Purpose Fund 14.50 596,585.92 616,333.38 (19,747.46) (3.20)
Total 100.00 4,113,286.31 3,758,934.57 354,351.73 9.43

Allotments – P3.798 trillion


For FY 2017, total allotments released to the departments/offices amounted to P3.798 trillion,
representing 92.33 percent of the approved appropriations. Compared with FY 2016, PS of
P845.36 billion was higher by P73.64 billion or 9.54 percent; MOOE of P1.352 trillion was
higher by P226.75 billion or 20.15 percent; FinEx of P336.96 billion was lower by P57.68
billion or 14.62 percent; and CO of P1.263 trillion was higher by P125.96 billion or 11.08
percent. Chart II-3 presents the comparative allotments by class for FYs 2017 and 2016.

18
Chart II-3 Comparative Allotments by Class
(in billion pesos)

845.36
PS
771.72

1,352.29
MOOE
1,125.54

336.96
FinEx
394.64

1,263.23
CO
1,137.27

- 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00 1,600.00

2017 2016

Of the total allotments, P3.476 trillion or 91.52 percent was sourced from current year’s
appropriations, of which P2.261 trillion or 65.06 percent was funded from the new GA and
P1.215 trillion or 34.94 percent from automatic appropriations. Included in the allotments from
current year appropriations is the allotment to cover prior year’s overdraft of P1.87 million
released to the Philippine Sports Commission.

Total allotments from unreleased continuing appropriations amounted to P85.76 billion while
prior year’s unobligated allotments forwarded as extended allotments for FY 2017 amounted
to P236.34 billion.

Compared with FY 2016, total allotments for FY 2017 of P3.798 trillion increased by P368.68
billion or 10.75 percent. Allotments released from current year’s appropriations registered net
increase of P296.73 billion or 9.33 percent, attributable to the increase in allotments from new
GA of P324.88 billion or 16.78 percent partially offset by the decrease in allotments from
automatic appropriations of P28.15 billion or 2.26 percent.

Allotments from continuing appropriations of P322.10 billion posted an increase of P71.95


billion or 28.76 percent more than the previous year of P250.16 billion. Allotments from
unreleased continuing appropriations and unobligated continuing appropriations posted
increases of P40.45 billion or 89.27 percent and P31.49 billion or 15.37 percent, respectively.
Table II-6 shows the comparative allotments by source for FYs 2017 and 2016.

Table II-6 Comparative Allotments by Source

Amount
(in million pesos)
Source Percent
Increase/
2017 2016
(Decrease)
Current Year’s Appropriations 3,475,747.98 3,179,015.55 296,732.44 9.33
New General Appropriations 2,261,178.40 1,936,300.08 324,878.32 16.78
Agency Specific Budget 1,907,462.36 1,567,644.57 339,817.79 21.68

19
Amount
(in million pesos)
Source Percent
Increase/
2017 2016
(Decrease)
Special Purpose Funds 353,716.04 368,655.50 (14,939.46) (4.05)
Automatic Appropriations 1,214,569.59 1,242,715.47 (28,145.88) (2.26)
Continuing Appropriations 322,103.03 250,158.00 71,945.02 28.76
Unreleased Appropriations 85,760.45 45,310.09 40,450.36 89.27
Unobligated Allotments 236,342.58 204,847.92 31,494.66 15.37
Total 3,797,851.01 3,429,173.55 368,677.46 10.75

Of the total allotments from ASB, P1.174 trillion or 61.53 percent was for current operating
expenses (PS and MOOE), P732.06 billion or 38.38 percent for CO and P1.66 billion or 0.09
percent for FinEx.

Total allotments from Special Purpose Fund (SPF) of the new GA amounted to P353.72 billion.
Among the components of the SPF, the biggest amounts were released for Budgetary Support
to Government Corporations (BSGC) – P131.01 billion, Pension Gratuity Fund (PGF) – P91.02
billion, Allocation to Local Government Units (ALGU) – P60.73 billion, Miscellaneous
Personnel Benefits Fund (MPBF) – P25.76 billion, and Unprogrammed Appropriations/Fund
– P14.33 billion.

The breakdown of allotments from SPF is presented in Table II-7.

Table II-7 Allotments from Special Purpose Fund by Source

Amount
(in million pesos)
PY’s Continuing
Fund Appropriations
Current Year’s
Total Unreleased
Appropriations Unobligated
Appropriatio
Allotments
ns
Budgetary Support to GOCCs 149,682.74 131,012.27 18,670.47 -
Allocation to Local Government Units 74,998.42 60,727.29 13,836.65 434.47
a. Metropolitan Manila Development
Authority 2,611.55 2,178.02 - 433.53
b. Special Shares of LGUs in the
Proceeds of National Taxes
(MOOE) 32,146.20 18,756.70 13,389.51 -
c. Barangay Officials Death Benefits
Fund (MOOE) 34.17 33.23 - 0.94
d. Local Government Support Fund
(MOOE) 40,206.49 39,759.34 447.15 -
Contingent Fund 13,968.52 12,402.89 624.88 940.76
Miscellaneous Personnel Benefits Fund
(MPBF) 25,759.09 25,756.18 0.02 2.90
National Disaster Risk Reduction and
Management Fund (NDRRMF)/
Calamity Fund 53,514.60 18,463.32 28,541.23 6,510.05
Retirement Benefits Fund (Pension and
Gratuity Fund) – RBF (PGF) 91,030.49 91,022.62 - 7.88
Unprogrammed Appropriations/Fund 14,331.48 14,331.48 - -
Support for Infrastructure Projects
and Social Programs 3,887.02 3,887.02 - -

20
Amount
(in million pesos)
PY’s Continuing
Fund Appropriations
Current Year’s
Total Unreleased
Appropriations Unobligated
Appropriatio
Allotments
ns
Budgetary Support to Government-
Owned and/or Controlled
Corporations 3,181.00 3,181.00 - -
Support to Foreign-Assisted Projects 4,114.18 4,114.18 - -
General Fund Adjustments for Use of
Excess Income by Agencies 105.50 105.50 - -
General Fund Adjustments for the
Share of the ARMM pursuant to
R.A. No. 9054 (MOOE) 800.00 800.00 - -
Support for the Capability
Enhancement Program of the PNP 2,243.77 2,243.77 - -
Total 423,285.34 353,716.04 61,673.25 7,896.05

Total allotments released as budgetary support to GCs reached P166.51 billion funded from
the following SPFs: BSGC – P149.68 billion, UA/F – Support for Infrastructure Projects and
Social Programs – P3.61 billion, UA /F– BSGC – P3.18 billion and NDRRMF/Calamity Fund
– P10.04 billion. Among the GCs, the Philippine Health Insurance Corporation (PhilHealth)
received the highest subsidy of P50 billion to ensure that the poorest of the poor are covered
by a health insurance under the National Health Insurance Program. It increased by P7.66
billion or 18.10 percent over the previous year subsidy of P42.33 billion attributable to the
transfer of the appropriations for PhilHealth insurance from DOH to SPF–BSGC.

Other GOCCs that received budgetary support, equity investments and tax subsidies from NG
are shown in Table II-8.

Table II-8 Allotments for Budgetary Support to GOCCs


by Government Corporation, by Purpose

Amount
(in million pesos)
Government Corporation
Budgetary Equity Tax
Total
Support Investment Subsidy
Philippine Health Insurance Corporation 49,995.98 49,995.98 - -
National Irrigation Administration 39,976.61 39,976.61 - -
National Housing Authority 35,927.84 35,927.84 - -
National Food Authority 5,105.47 5,105.47 - -
Manila International Airport Authority 3,609.52 - - 3,609.52
Land Bank of the Philippines 3,181.00 - 3,181.00 -
National Power Corporation 2,798.25 2,798.25 - -
Philippine Economic Zone Authority 2,757.57 2,757.57 - -
National Electrification Administration 2,597.52 2,597.52 - -
Philippine Crop Insurance Corporation 2,500.00 2,500.00 - -
Local Water Utilities Administration 2,164.75 2,164.75 - -
Subic Bay Metropolitan Authority 2,149.74 2,092.56 57.19 -
National Home Mortgage Finance Corporation 1,464.11 237.41 1,226.70 -
Philippine Coconut Authority 1,423.77 1,423.77 - -
Social Housing Finance Corporation 1,103.89 1,103.89 - -

21
Amount
(in million pesos)
Government Corporation
Budgetary Equity Tax
Total
Support Investment Subsidy
Small Business Corporation 1,000.00 1,000.00 - -
Bases Conversion and Development Authority 896.13 896.13 - -
Sugar Regulatory Administration 853.41 853.41 - -
Cultural Center of the Philippines 838.16 838.16 - -
Philippine National Railways 715.00 715.00 - -
Philippine Rice Research Institute 561.00 561.00 - -
Development Academy of the Philippines 553.48 553.48 - -
Philippine Children’s Medical Center 544.16 544.16 - -
Philippine Postal Corporation 536.54 536.54 - -
Philippine Heart Center 503.92 503.92 - -
Trade and Investment Development Corporation
of the Philippines 500.00 - 500.00 -
National Kidney and Transplant Institute 464.19 464.19 - -
Lung Center of the Philippines 265.19 265.19 - -
Philippine Fisheries Development Authority 224.80 224.80 - -
Center for International Trade Expositions and
Missions 220.00 220.00 - -
National Dairy Authority 199.95 199.95 - -
Philippine Institute for Development Studies 163.54 163.54 - -
People’s Television Network, Inc. 157.30 157.30 - -
Authority of the Freeport Area of Bataan 125.00 - 125.00 -
Zamboanga City Special Economic Zone
Authority 120.00 50.00 70.00 -
Philippine Institute of Traditional and Alternative
Health Care 116.93 116.93 - -
Philippine Center for Economic Development 44.75 44.75 - -
Southern Philippines Development Authority 41.06 41.06 - -
Aurora Pacific Economic Zone and Freeport
Authority 40.00 40.00 - -
Light Rail Transit Authority 37.55 37.55 - -
Tourism Infrastructure and Enterprise Zone
Authority 20.00 20.00 - -
Credit Information Corporation 12.80 12.80 - -
Total 166,510.84 157,741.47 5,159.89 3,609.52

Total allotments from automatic appropriations amounted to P1.215 trillion of which, P1.134
trillion or 93.38 percent were for debt service and IRA amounting to P647.28 billion and
P486.89 billion, respectively. Allotments for debt service consists of P312.40 billion for
payment of principals and P334.88 billion for interest expenses.

For FY 2017, total allotments from continuing appropriations amounted to P322.10 billion,
posting an increase of P71.95 billion or 28.76 percent over previous year of P250.16 billion.
Of the total, P236.34 billion or 73.37 percent was from the forwarded unobligated allotments
of previous year, of which P228.43 billion or 96.65 percent was from the ASB, P7.90 billion
or 3.34 percent from the SPF, and P14.35 million or 0.01 percent from automatic
appropriations. Allotments from the unreleased continuing appropriations summed at P85.76
billion, sourced from the following: ASB - P24.09 billion and SPF - P61.67 billion.

Among the departments, the biggest allotments from ASB were released to DPWH and DepED
at P560.04 billion and P405.61 billion, respectively. On the other hand, the highest amount of

22
allotments from SPF and automatic appropriations was received by the DOF at P201.03 billion
and P1.141 trillion, respectively due to the administration by the BTr of the BSGC, ALGU,
IRA for LGUs, and debt service.

Table II-9 shows the allotments of the departments/offices, by source.

Table II-9 Allotments by Department/Office and by Source

Amount
(in billion pesos)
Current Year Appropriations Continuing Appropriations
Department/Office
Agency Special Automatic Unreleased
Total Unobligated
Specific Purpose Appropria- Appropria-
Allotments
Budget Funds tions tions
Finance 1,411.32 21.02 201.03 1,141.11 42.57 5.60
Public Works and Highways 674.93 560.04 8.10 13.12 13.94 79.73
Education 472.10 405.61 3.49 26.88 2.03 34.08
National Defense 218.37 131.87 60.31 4.97 13.43 7.81
Interior and Local Government 202.35 143.2 49.50 3.13 0.45 6.07
Social Welfare and Development 161.57 126.78 8.07 0.42 5.39 20.91
Health 112.25 94.31 3.13 3.47 0.16 11.18
Transportation 82.35 52.31 5.73 4.08 0.09 20.13
State Universities and Colleges 65.58 55.23 2.34 2.95 0.65 4.42
Other Executive Offices 52.45 43.17 0.91 3.93 0.90 3.54
Agriculture 51.75 39.18 0.30 1.42 4.76 6.10
Autonomous Region in Muslim
Mindanao 36.91 32.45 1.14 0.24 0.03 3.06
The Judiciary 34.31 31.39 0.32 0.92 - 1.68
Environment and Natural
Resources 31.25 26.60 0.91 0.77 0.27 2.71
Science and Technology 21.81 20.63 0.27 0.22 0.12 0.57
Justice 20.69 15.49 3.07 1.10 0.01 1.03
Foreign Affairs 20.61 16.59 0.64 0.13 - 3.25
Congress of the Philippines 17.78 14.49 - 0.47 - 2.83
Office of the President 16.75 15.79 0.12 0.05 - 0.80
Labor and Employment 14.99 11.26 0.71 0.31 0.16 2.56
Agrarian Reform 13.61 9.65 0.19 0.34 0.00 3.42
Commission on Elections 12.22 3.12 0.10 0.20 - 8.80
Commission on Audit 11.51 9.96 0.35 0.85 - 0.36
National Economic and
Development Authority 6.63 5.24 0.16 0.23 0.22 0.78
Information and
Communications Technology 6.55 3.52 0.08 0.25 - 2.70
Trade and Industry 5.77 4.84 0.18 0.16 0.01 0.58
Tourism 4.01 3.27 0.04 0.03 0.33 0.34
Budget and Management 3.44 2.06 0.04 0.92 0.00 0.43
Energy 2.98 1.09 0.06 1.68 - 0.14
Presidential Communications
Operations Office 2.84 2.63 0.09 0.05 0.05 0.03
Metropolitan Manila
Development Authority 2.63 - 2.19 0.00 - 0.43
Office of the Ombudsman 2.54 2.22 0.04 0.08 - 0.21
Civil Service Commission 1.49 1.34 0.05 0.09 - 0.01
Commission on Human Rights 0.81 0.71 0.05 0.03 - 0.02
Office of the Vice-President 0.70 0.43 0.02 0.01 0.20 0.04
Joint Legislative-Executive
Councils 0.00 0.00 0.00 - - 0.00
Total 3,797.85 1,907.46 353.72 1,214.57 85.76 236.34

Compared with the FY 2016, the FY 2017 allotments of DPWH and DepEd increased by
P125.40 billion or 22.82 percent and P55.68 billion or 13.37 percent, respectively. This is in

23
support for the DPWH commitments to complete the pavement of all national arterial and
secondary roads, inclusive of the remaining unpaved national roads as well as road network
development (e.g., construction of missing gaps, by-passes, diversion roads, etc.) asset
preservation, and various works for access roads leading to airports, ports and tourism
destinations, among others, and for DepEd’s K-12 program.

Table II-10 shows the comparative allotments of top ten departments/offices for FYs 2017 and
2016.

Table II-10 Comparative Allotments of Top Ten Departments/Offices

Amount
Percent
(in million pesos)
Department/Office Distri- Percent
Increase/
bution 2017 2016
(Decrease)
Finance 37.16 1,411,318.56 1,364,449.97 46,868.59 3.43
Public Works and Highways 17.77 674,932.88 549,535.40 125,397.48 22.82
Education 12.43 472,096.46 416,420.74 55,675.72 13.37
National Defense 5.75 218,374.23 181,335.59 37,038.64 20.43
Interior and Local Government 5.33 202,349.11 178,206.24 24,142.87 13.55
Social Welfare and Development 4.25 161,567.00 131,933.81 29,633.20 22.46
Health 2.96 112,246.14 90,704.79 21,541.35 23.75
Transportation 2.17 82,345.84 92,299.25 (9,953.42) (10.78)
State Universities and Colleges 1.73 65,581.81 58,203.88 7,377.93 12.68
Other Executive Offices 1.38 52,445.53 20,872.47 31,573.07 151.27
Other Departments/Offices 9.07 344,593.44 345,211.41 (617.97) (0.18)
Total 100.00 3,797,851.01 3,429,173.55 368,677.46 10.75

Appropriations and Allotments for Foreign-Assisted Projects


Appropriations – P49.14 billion

For FY 2017, total current year appropriations for foreign-assisted projects amounted to P49.14
billion, of which P38.06 billion or 77.44 percent was appropriated under the ASB of the
implementing departments/agencies concerned and P11.08 billion or 22.56 percent was from
the following SPF: UA/F-Support to Foreign-Assisted Projects (SFAPs) – P7.91 billion and
BSGC – P3.17 billion. Of the total appropriations, P40.89 billion was funded from loan
proceeds while the balance of P8.25 billion was the government counterpart provided by the
NG.

Among the departments/offices, the highest amount was appropriated for the DOTr in the
amount of P14.33 billion, of which P10.21 billion was funded from the ASB while P4.11 billion
was from UA/F-SFAPs. The DSWD and DPWH followed with P10.23 billion and P9.97
billion, respectively.

Table II-11 shows the appropriations for foreign-assisted projects, by department/office and by
allotment class.

24
Table II-11 Appropriations for Foreign-Assisted Projects,
by Department/Office, by Allotment Class

Amount
(in million pesos)
Maintenance
Department/Office
Personnel and Other Financial Capital
Total
Services Operating Expenses Outlay
Expenses
Current Year Appropriations 8.10 18,587.67 0.03 30,547.12 49,142.92
Agency Specific Budget 8.10 14,271.02 0.03 23,778.91 38,058.07
Social Welfare and
Development - 10,229.16 - - 10,229.16
Transportation - - - 10,214.37 10,214.37
Public Works and Highways - - - 9,974.21 9,974.21
Agriculture - 2,813.35 0.03 445.64 3,259.02
Agrarian Reform 6.64 682.86 - 1,494.70 2,184.20
Environment and Natural
Resources - 507.28 - 1,528.39 2,035.67
Finance - - - 121.60 121.60
State Universities and Colleges 1.47 25.37 - - 26.84
Interior and Local Government - 13.00 - - 13.00
Special Purpose Funds - 4,316.64 - 6,768.22 11,084.86
Unprogrammed
Appropriations/Fund - SFAPs - 1,146.51 - 6,768.22 7,914.73
Transportation - - - 4,114.18 4,114.18
Unreleased/Unallocated 1,146.51 2,654.04 3,800.55
Budgetary Support to GOCCs - 3,170.13 - - 3,170.13
Finance-BTr (budgetary
support to National
Irrigation Administration) - 3,170.13 - - 3,170.13
Total 8.10 18,587.67 0.03 30,547.12 49,142.92

Allotments – P43.61 billion

Of the amount appropriated, P43.61 billion or 88.75 percent was released to the implementing
departments/agencies broken down by allotment class as follows: PS – P8.10 million, MOOE
– P17.41 billion, FinEx – P0.03 million and CO – P26.20 billion.

Among the departments/offices, the highest allotments were released to the DOTr in the
amount of P13.30 billion, of which P9.19 billion was funded from the ASB while P4.11 billion
was from UF-SFAPs. The DSWD and DPWH followed with P10.23 billion and P9.31 billion,
respectively.

Table II-12 shows the allotments for foreign-assisted projects, by department/office and by
allotment class.

25
Table II-12 Allotments for Foreign-Assisted Projects,
by Department/Office, by Allotment Class

Amount
(in million pesos)
Maintenance
Department/Office
Personnel and Other Financial Capital
Total
Services Operating Expenses Outlay
Expenses
Agency Specific Budget 8.10 14,237.48 0.03 22,084.39 36,330.00
Social Welfare and Development - 10,229.16 - - 10,229.16
Public Works and Highways - - - 9,307.90 9,307.90
Transportation - - - 9,186.17 9,186.17
Agriculture - 2,813.35 0.03 445.64 3,259.02
Agrarian Reform 6.64 649.32 - 1,494.70 2,150.65
Environment and Natural
Resources - 507.28 - 1,528.39 2,035.67
Finance - - - 121.60 121.60
State Universities and Colleges 1.47 25.37 - - 26.84
Interior and Local Government - 13.00 - - 13.00
Special Purpose Funds - 3,170.13 - 4,114.18 7,284.31
Unprogrammed Fund/
Appropriations - SFAPs - - - 4,114.18 4,114.18
Transportation - - - 4,114.18 4,114.18
Budgetary Support to GOCCs - 3,170.13 - - 3,170.13
Finance-BTr (budgetary
support to National
Irrigation Administration) - 3,170.13 - - 3,170.13
Total 8.10 17,407.60 0.03 26,198.57 43,614.31

The Statements of Appropriations, Allotments and Balances (SAAB) for FAPs are presented
in Part VI, Volume II of this Report.

Unreleased Appropriations – P315.44 billion


The unreleased balance of appropriations for FY 2017 of P315.44 billion represents the
difference between the total appropriations of P4.113 trillion and the total allotments of P3.798
trillion. Table II-13 shows the appropriations, allotments and unreleased appropriations of the
departments/offices for FY 2017.

Table II-13 Appropriations, Allotments and Unreleased Appropriations

Amount
(in million pesos)
Particulars
Unreleased
Appropriations Allotments
Appropriations
Education 501,240.94 472,096.46 29,144.48
Public Works and Highways 688,995.03 674,932.88 14,062.14
Interior and Local Government 209,485.20 202,349.11 7,136.09
National Defense 223,896.24 218,374.23 5,522.01
State Universities and Colleges 69,176.55 65,581.81 3,594.74
Health 114,275.26 112,246.14 2,029.13

26
Amount
(in million pesos)
Particulars
Unreleased
Appropriations Allotments
Appropriations
Transportation 83,479.10 82,345.84 1,133.26
Autonomous Region in Muslim Mindanao 37,767.19 36,913.93 853.26
Finance 1,411,851.87 1,411,318.56 533.31
Congress of the Philippines 18,270.02 17,780.90 489.12
Judiciary 34,775.51 34,314.67 460.84
Other Executive Offices 52,731.82 52,445.53 286.29
Agrarian Reform 13,858.21 13,610.83 247.39
Labor and Employment 15,176.09 14,993.35 182.73
Commission on Audit 11,669.35 11,512.67 156.68
Justice 20,849.94 20,694.83 155.12
Presidential Communications Operations
Office 2,996.22 2,843.63 152.59
Science and Technology 21,956.79 21,808.89 147.89
National Economic and Development
Authority 6,704.24 6,625.19 79.05
Agriculture 51,793.35 51,745.99 47.36
Environment and Natural Resources 31,299.29 31,254.05 45.24
Budget and Management 3,460.97 3,442.86 18.12
Commission on Human Rights 821.73 806.92 14.81
Foreign Affairs 20,623.94 20,610.10 13.84
Information and Communications
Technology 6,559.93 6,546.19 13.74
Trade And Industry 5,780.95 5,770.21 10.75
Tourism 4,017.41 4,009.63 7.78
Energy 2,981.58 2,975.33 6.25
Civil Service Commission 1,493.26 1,489.75 3.51
Social Welfare and Development 161,568.37 161,567.00 1.37
Office of the Ombudsman 2,542.51 2,541.63 0.87
Office of the President 16,747.16 16,747.13 0.03
Commission on Elections 12,222.78 12,222.78 -
Office of the Vice-President 696.23 696.23 -
Joint Legislative-Executive Councils 3.81 3.81 -
Metropolitan Manila Development
Authority 2,631.93 2,631.93 -
Unreleased Special Purpose Funds 248,885.54 - 248,885.54
Total 4,113,286.31 3,797,851.01 315,435.30

Chart II-4 shows the unreleased Chart II-4 Unreleased Appropriations


appropriations for FYs 2017 and by Allotment Class
2016, by allotment class. (in billion pesos)
148.05 138.83 138.71
Compared to the previous year 150.00
balance of P329.76 billion, FY 91.89
2017 unreleased appropriations 100.00 75.49
decreased by P14.33 billion or 4.34 52.22
percent. The increase in the 50.00
unreleased balance of current year
appropriations of P36 billion was -
offset by the total decrease of PS MOOE CO
P50.33 billion in the unreleased
FY 2017 FY 2016
balance of continuing
appropriations.

27
Table II-14 presents the comparative unreleased appropriations by source for FYs 2017 and
2016.

Table II-14 Comparative Unreleased Appropriations by Source

Amount
(in million pesos)
Source Percent
Increase/
2017 2016
(Decrease)
Current Year Appropriations 238,308.55 202,304.52 36,004.04 17.80
Agency Specific Budget 57,883.14 52,197.53 5,685.60 10.89
Special Purpose Funds 180,425.42 150,106.98 30,318.43 20.20
Continuing Appropriations 77,126.75 127,456.51 (50,329.76) (39.49)
Agency Specific Budget 8,666.62 11,233.31 (2,566.69) (22.85)
Special Purpose Funds 68,460.12 116,223.20 (47,763.07) (41.10)
Total 315,435.30 329,761.03 (14,325.73) (4.34)

The details of the unreleased appropriations from current year and continuing appropriations
by SPF are shown in Table II-15.

Table II-15 Unreleased Appropriations from Special


Purpose Funds

Amount
(in million pesos)
Current Year
Particulars Continuing
Appropriations
Appropriations Total
R. A. No.
R. A. No. 10717
10924
Budgetary Support to GOCCs 6,198.91 2,641.63 8,840.55
Maintenance and Other Operating Expenses 5,520.47 2,641.63 8,162.11
Capital Outlays 678.44 - 678.44
Allocation to Local Government Units 12,429.31 18,265.48 30,694.79
Maintenance and Other Operating Expenses 12,429.31 18,265.48 30,694.79
a. Special Shares of LGUs in the Proceeds of
National Taxes 12,212.54 18,027.60 30,240.14
Share in the Utilization and Development of
National Wealth under R.A. No. 7160 and
R.A. No. 9513 2,539.81 2,414.98 4,954.79
Share in the Gross Income Taxes paid by all
Businesses and Enterprises within the
ECOZONES pursuant to R.A. No. 7922 56.53 20.30 76.83
Share in Value Added Tax pursuant to R.A.
No. 7643 9,151.14 15,557.89 24,709.04
Share in Value added Tax in Lieu of
Franchise Tax pursuant to R.A. No. 7953
and R.A. No. 8407 1.59 1.73 3.31
Prior Years' Obligations 422.48 1 422.48
Share in the 2% Special Privilege Tax
pursuant to RA 7156 41.00 32.69 73.69
b. Barangay Officials Death Benefits Fund 16.77 12.28 29.05
c. Local Government Support Fund - 25.60 25.60
d. Special Shares of LGUs in the Proceeds of Fire
Code Fees 200.00 200.00 400.00
Contingent Fund 3,097.11 189.00 3,286.11
Capital Outlays 3,097.11 189.00 3,286.11

28
Amount
(in million pesos)
Current Year
Particulars Continuing
Appropriations
Appropriations Total
R. A. No.
R. A. No. 10717
10924
Miscellaneous Personnel Benefits Fund 63,345.43 199.98 63,545.41
Personnel Services 63,145.46 - 63,145.46
Maintenance and Other Operating Expenses 199.96 199.98 399.94
National Disaster Risk Reduction and Management
Fund 1,290.68 5,054.00 6,344.68
Maintenance and Other Operating Expenses (573.05) - (573.05)
Capital Outlays 1,863.74 5,053.99 6,917.73
Pension and Gratuity Fund 40,895.45 1,274.13 42,169.58
Personnel Services 40,299.72 - 40,299.72
Maintenance and Other Operating Expenses 595.73 1,274.13 1,869.86
Unprogrammed Appropriations/Fund 53,168.52 40,835.91 94,004.43
Maintenance and Other Operating Expenses 36,022.88 12,960.94 48,983.82
Capital Outlays 17,145.64 27,874.97 45,020.61
Support for Infrastructure Projects and Social
Programs 8,063.97 2,701.16 10,765.14
Maintenance and Other Operating Expenses 1,841.47 2,244.54 4,086.01
Capital Outlays 6,222.50 456.62 6,679.12
AFP Modernization Program 5,000.00 10,000.00 15,000.00
Maintenance and Other Operating Expenses - 500.00 500.00
Capital Outlays 5,000.00 9,500.00 14,500.00
Budgetary Support to Government-Owned
and/or Controlled Corporations 819.00 - 819.00
Capital Outlays 819.00 - 819.00
Support to Foreign-Assisted Projects 3,800.55 270.38 4,070.93
Maintenance and Other Operating Expenses 1,146.51 84.55 1,231.06
Capital Outlays 2,654.04 185.82 2,839.86
Risk Management Program 29,000.00 24,500.00 53,500.00
Maintenance and Other Operating Expenses 29,000.00 10,000.00 39,000.00
Capital Outlays - 14,500.00 14,500.00
General Fund Adjustments for Use of Excess
Income by Agencies 94.50 129.44 223.93
Maintenance and Other Operating Expenses 89.50 96.92 186.41
Capital Outlays 5.00 32.52 37.52
General Fund Adjustments for the Share of the
ARMM pursuant to R. A. No. 9054 - 34.93 34.93
Maintenance and Other Operating Expenses - 34.93 34.93
Support for the Capability Enhancement
Program of the PNP 3,390.50 - 3,390.50
Maintenance and Other Operating Expenses 945.40 - 945.40
Capital Outlays 2,445.10 - 2,445.10
Provision of Scholarships to Faculty Members
and HEI Administrators 1,000.00 - 1,000.00
Maintenance and Other Operating Expenses 1,000.00 - 1,000.00
Provision for Payment of Arrears of LTO-IT
Service 2,000.00 - 2,000.00
Maintenance and Other Operating Expenses 2,000.00 - 2,000.00
Land Bank of the Philippines - Loan Portfolio
(Priority and Other Priority Areas) - 3,200.00 3,200.00
Capital Outlays - 3,200.00 3,200.00
Total 180,425.42 68,460.12 248,885.54

29
The unreleased appropriations of SPF totaled P248.89 billion. Of the total, P94 billion or 37.77
percent pertained to UA/F, of which P53.50 billion was for Risk Management Program, P15
billion for AFP Modernization Program, and P10.77 billion for Support for Infrastructure
Projects and Social Programs. Table II-16 shows the unreleased balances of appropriations of
the departments/offices for FYs 2017 and 2016.

Table II-16 Comparative Unreleased Appropriations of Top Ten Departments/Offices

Amount
Percent
Department/ (in million pesos)
Distri- Percent
Office Increase/
bution 2017 2016
(Decrease)
Education 9.24 29,144.48 12,634.86 16,509.62 130.67
Public Works and Highways 4.46 14,062.14 21,629.84 (7,567.69) (34.99)
Interior and Local Government 2.26 7,136.09 1,995.62 5,140.48 257.59
National Defense 1.75 5,522.01 14,533.43 (9,011.42) (62.00)
State Universities and Colleges 1.14 3,594.74 2,038.64 1,556.09 76.33
Health 0.64 2,029.13 4,145.47 (2,116.34) (51.05)
Transportation 0.36 1,133.26 403.09 730.17 181.14
Autonomous Region in Muslim Mindanao 0.27 853.26 838.37 14.89 1.78
Finance 0.17 533.31 664.89 (131.58) (19.79)
Congress of the Philippines 0.16 489.12 691.24 (202.13) (29.24)
Other Departments/Offices and Unreleased
Special Purpose Funds 79.55 250,937.76 270,185.56 (19,247.80) (7.12)
Total 100.00 315,435.30 329,761.03 (14,325.73) (4.34)

Of the unreleased appropriations of P315.44 billion for FY 2017, the amount of P310.60 billion
or 98.47 percent was reverted, composed of the following: PS – P148.05 billion, MOOE –
P91.89 billion, and CO – P70.66 billion. Of the amount reverted, P233.47 billion was from
current year appropriations while P77.13 billion was from continuing appropriations. The
unreleased balance of CO of P4.83 billion was retained as continuing appropriations,
representing the unreleased balance of the Revised AFP Modernization Program of the AFP
General Headquarters.

Table II-17 shows the unreleased appropriations by source, by department/office.

Table II-17 Unreleased Appropriations by Source,


by Department/Office

Amount
(in million pesos)
Continuing
Department/Office Current Year Appropriations Appro-
Total priations
For For For
Total
Reversion Retention Reversion
Education 29,144.48 29,017.48 29,017.48 - 127.00
Public Works and Highways 14,062.14 6,544.15 6,544.15 - 7,518.00
Interior and Local Government 7,136.09 6,838.49 6,838.49 - 297.60
National Defense 5,522.01 5,316.51 481.63 4,834.88 205.50
State Universities and Colleges 3,594.74 3,488.19 3,488.19 - 106.55
Health 2,029.13 2,029.13 2,029.13 - -
Transportation 1,133.26 1,033.72 1,033.72 - 99.54
Autonomous Region in Muslim
Mindanao 853.26 853.26 853.26 - -

30
Amount
(in million pesos)
Continuing
Department/Office Current Year Appropriations Appro-
Total priations
For For For
Total
Reversion Retention Reversion
Finance 533.31 483.31 483.31 - 50.00
Congress of the Philippines 489.12 489.12 489.12 - -
The Judiciary 460.84 460.84 460.84 - -
Other Executive Offices 286.29 233.79 233.79 - 52.50
Agrarian Reform 247.39 147.39 147.39 - 100.00
Labor and Employment 182.73 182.73 182.73 - -
Commission on Audit 156.68 156.68 156.68 - -
Justice 155.12 90.74 90.74 - 64.38
Presidential Communications
Operations Office 152.59 152.59 152.59 - -
Science and Technology 147.89 147.89 147.89 - -
National Economic and
Development Authority 79.05 50.73 50.73 - 28.32
Agriculture 47.36 43.96 43.96 - 3.40
Environment and Natural
Resources 45.24 45.24 45.24 - -
Budget and Management 18.12 18.12 18.12 - -
Commission on Human Rights 14.81 14.81 14.81 - -
Foreign Affairs 13.84 - - - 13.84
Information and
Communications Technology 13.74 13.74 13.74 - -
Trade and Industry 10.75 10.75 10.75 - -
Tourism 7.78 7.78 7.78 - -
Energy 6.25 6.25 6.25 - -
Civil Service Commission 3.51 3.51 3.51 - -
Social Welfare and
Development 1.37 1.37 1.37 - -
Office of the Ombudsman 0.87 0.87 0.87 - -
Office of the President 0.03 0.03 0.03 - -
Office of the Vice-President - - - - -
Joint Legislative-Executive
Councils - - - - -
Commission on Elections - - - - -
Metropolitan Manila
Development Authority - - - - -
Special Purpose Fund
Unreleased Appropriations 248,885.54 180,425.42 180,425.42 - 68,460.12
Total 315,435.30 238,308.55 233,473.67 4,834.88 77,126.75

Obligations – P3.466 trillion


For FY 2017, total obligations incurred by NGAs amounted to P3.466 trillion, representing
91.27 percent of the total allotments of P3.798 trillion. Of the total obligations, P3.465 trillion
or 99.98 percent was covered by allotments while P864.20 million was not covered by
allotments. Chart II-5 shows the comparative obligations by allotment class for FYs 2017 and
2016.

31
Chart II-5 Comparative Obligations, by Allotment Class
(in billion pesos)

1,400.00 1,294.69
1,200.00
1,013.74 1,026.64
1,000.00
832.61 823.12
800.00 753.67

600.00

400.00 312.22 304.09


200.00

-
PS MOOE FE CO

2017 2016

Of the total obligations, P3.194 trillion or 92.15 percent was charged to current year
appropriations and P272.02 billion or 7.85 percent was charged to continuing appropriations.
Compared to obligations of P2.894 trillion incurred in the previous year, FY 2017 total
obligations increased by P571.54 billion or 19.75 percent. Table II-18 shows the obligations,
by source for FYs 2017 and 2016.

Table II-18 Comparative Obligations, by Source

Amount
(in million pesos)
Source Percent
Increase/
2017 2016
(Decrease)
Current Year Appropriations 3,194,141.83 2,711,275.91 482,865.93 17.81
New General Appropriations 2,167,941.73 1,678,338.56 489,603.17 29.17
Agency Specific Budget 1,818,669.40 1,323,415.22 495,254.17 37.42
Special Purpose Funds 349,272.34 354,923.34 (5,651.00) (1.59)
Automatic Appropriations 1,026,200.10 1,032,937.35 (6,737.25) (0.65)
Continuing Appropriations 272,017.05 183,339.09 88,677.96 48.37
Unreleased Appropriations 81,188.48 37,695.71 43,492.78 115.38
Unobligated Allotments 190,828.57 145,643.38 45,185.19 31.02
Total 3,466,158.89 2,894,615.00 571,543.89 19.75

The highest obligations were incurred by DOF, DPWH, and DepEd in the amounts of P1.223
trillion, P621.64 billion, and P458.41 billion, respectively. Table II-19 presents the obligations
by source, by department/office.

32
Table II-19 Obligations by Source, by Department/Office

Amount
(in billion pesos)
Continuing
Current Year Appropriations
Department/Office Total Appropriations
Agency Special Automatic Unreleased
Unobligated
Specific Purpose Appro- Appropria
Allotments
Budget Funds priations -tions
Finance 1,222.50 18.07 201.00 956.97 42.57 3.89
Public Works And Highways 621.64 527.28 7.37 11.74 10.78 64.47
Education 458.41 397.77 3.41 26.80 1.59 28.84
National Defense 213.30 129.82 59.02 4.07 13.43 6.97
Interior and Local Government 200.93 142.54 49.39 3.10 0.45 5.43
Social Welfare and Development 153.62 121.98 7.04 0.38 4.79 19.43
Health 106.72 89.77 2.98 3.36 0.15 10.46
Transportation 69.24 46.08 5.71 3.83 0.08 13.54
State Universities and Colleges 63.39 53.73 2.25 2.87 0.58 3.97
Agriculture 48.88 37.15 0.29 1.23 4.55 5.67
Other Executive Offices 47.41 38.92 0.78 3.74 0.90 3.08
Autonomous Region in Muslim
Mindanao 35.19 30.91 1.14 0.24 0.03 2.87
The Judiciary 32.92 30.85 0.32 0.86 - 0.89
Environment and Natural
Resources 30.16 25.62 0.91 0.76 0.26 2.62
Science and Technology 20.62 19.56 0.25 0.21 0.08 0.52
Justice 19.03 14.61 2.66 1.06 0.01 0.70
Foreign Affairs 18.93 15.81 0.63 0.13 - 2.36
Congress of the Philippines 14.37 10.80 - 0.44 - 3.14
Labor and Employment 12.88 10.09 0.60 0.29 0.14 1.75
Office of the President 11.62 10.71 0.10 0.04 - 0.76
Commission on Audit 11.08 9.78 0.35 0.74 - 0.21
Agrarian Reform 10.57 8.43 0.19 0.32 0 1.63
Information and Communications
Technology 6.18 3.36 0.07 0.11 - 2.64
National Economic and
Development Authority 6.06 4.82 0.16 0.22 0.22 0.64
Commission on Elections 5.65 2.74 0.10 0.18 - 2.63
Trade and Industry 5.50 4.69 0.15 0.14 0.01 0.50
Tourism 3.70 3.03 0.03 0.03 0.33 0.27
Budget and Management 3.07 1.74 0.04 0.92 0. 0.38
Presidential Communications
Operations Office 2.68 2.47 0.09 0.05 0.05 0.03
Office of the Ombudsman 2.40 2.14 0.04 0.08 - 0.14
Metropolitan Manila
Development Authority 2.34 - 2.04 0 - 0.29
Energy 2.22 0.94 0.06 1.17 - 0.05
Civil Service Commission 1.48 1.33 0.05 0.09 - 0.01
Commission on Human Rights 0.81 0.71 0.05 0.03 - 0.02
Office of the Vice-President 0.66 0.40 0.02 0.01 0.20 0.04
Joint Legislative-Executive
Councils 0 0 0 - - 0
Total 3,466.16 1,818.67 349.27 1,026.20 81.19 190.83

Overdraft in Allotments – P864.20 million


Of the total obligations of P3.466 trillion, P864.20 million or 0.02 percent was not covered by
allotments, broken down as follows: PS – P44.32 million, MOOE – P686.34 million and CO –

33
P133.54 million. Of the overdraft in allotments, P178.08 million was charged to current year
appropriations while P686.12 million was charged to continuing appropriations.

The total overdraft in allotments in PS of P44.32 million included P28.92 million obligated and
paid by Philippine Drug Enforcement Agency and P1.80 million by Environmental
Management Bureau. These overdrafts were charged by both agencies to their respective
unreleased appropriations categorized as For Later Release (FLR) which they recorded as
allotments without the requisite Special Allotment Release Order (SARO). The total overdraft
in PS also included P9.54 million obligated and paid by the Bureau of Internal Revenue (BIR)
for retirement and life insurance premiums which were charged to BIR’s ASB. The overdraft
of P7.95 million was disbursed by the National Police Commission (NAPOLCOM) without
the corresponding allotments and obligations.

Of the overdraft in MOOE of P686.34 million, P686.08 million or 99.96 percent was incurred
by the House of Representatives (HOR). Without the requisite SARO, the HOR recorded as
released allotments the appropriations for PS under Administration of Personnel Benefits of
P686.08 million categorized as “FLR”. HOR retained the allotment as continuing
appropriations of FY 2016 and obligated the same in FY 2017.

Of the overdraft of P133.54 million in CO, P133.50 million or 99.97 percent was incurred by
the DPWH-OSEC for the procurement of closed circuit television cameras of the MMDA
pursuant to Road Board Resolution Nos. 17-06 and 17-11. The allotment released was for
MOOE but was recorded as CO without the approved realignment from DBM. The NGAs
which incurred overdraft for FY 2017 are shown in Table II-20

Table II-20 Departments/Agencies with Overdraft

Amount
Department/Agency (in thousand pesos)
Total PS MOOE CO
Congress of the Philippines 686,078.00 - 686,078.00 -
House of Representatives 686,078.00 - 686,078.00 -
Environment and Natural Resources 3,870.02 3,832.42 - 37.60
Office of the Secretary 37.60 - - 37.60
Environmental Management Bureau 3,832.42 3,832.42 - -
Finance 9,541.54 9,541.54 - -
Bureau of Internal Revenue 9,541.54 9,541.54 - -
Public Works and Highways 133,500 - - 133,500
Office of the Secretary 133,500 - - 133,500
Science and Technology 556.00 556.00 - -
Philippine Council for Health Research and
Development 556.00 556.00 - -
Other Executive Offices 30,650.48 30,387.26 263.22 -
Housing and Urban Development
Coordinating Council 102.66 102.66 - -
National Commission on Muslim Filipinos 303.34 40.12 263.22 -
Philippine Drug Enforcement Agency 30,244.48 30,244.48 - -
Total 864,196.04 44,317.22 686,341.22 133,537.60

34
Among the departments/offices, the DOF, DPWH and DepEd, reported the highest obligations
of P1.150 trillion, P425.84 billion, and P371.05 billion, respectively. The obligations incurred
by the DOF increased by P540.00 billion due to the transfer of the administration of the funds
for the LGUs from the DBM to the BTr and the increase in payments for debt service.

Table II-21 shows the comparative obligations of top ten departments/offices for FYs 2017 and
2016.

Table II-21 Comparative Obligations of Top Ten Departments/Offices

Increase/
Department/ Percent 2017 2016
(Decrease) Percent
Office Distribution
(in million pesos)
Finance 35.27 1,222,498.91 1,150,549.04 71,949.87 6.25
Public Works and Highways 17.93 621,639.46 425,841.69 195,797.77 45.98
Education 13.23 458,407.12 371,048.70 87,358.42 23.54
National Defense 6.15 213,296.03 168,667.68 44,628.35 26.46
Interior and Local Government 5.80 200,925.51 170,558.24 30,367.27 17.80
Social Welfare and Development 4.43 153,622.88 108,892.72 44,730.15 41.08
Health 3.08 106,720.28 78,679.87 28,040.41 35.64
Transportation 2.00 69,244.46 61,797.45 7,447.01 12.05
State Universities and Colleges 1.83 63,393.62 52,648.41 10,745.21 20.41
Agriculture 1.41 48,879.57 45,579.39 3,300.18 7.24
Other Departments/Offices 8.87 307,531.04 260,351.79 47,179.25 18.12
Total 100.00 3,466,158.89 2,894,615. 571,543.89 19.75

Unobligated Allotments – P332.55 billion


The unobligated allotments amounting to P332.55 billion represents the difference between
total allotments of P3.798 trillion, excluding allotment to cover previous year’s overdraft of
P1.87 million, and obligations covered by allotments of P3.465 trillion.

Table II-22 presents the allotments, obligations and unobligated allotments, by


department/office for FY 2017.

Table II-22 Allotments, Obligations and Unobligated Allotments,


by Department/Office
Amount
(in million pesos)
Particulars Obligations
Unobligated
Allotments Covered by
Allotments
Allotments
Finance 1,411,318.56 1,222,489.37 188,829.19
Public Works and Highways 674,932.88 621,505.96 53,426.92
Education 472,096.46 458,407.12 13,689.34
Transportation 82,345.84 69,244.46 13,101.38
Social Welfare and Development 161,567.00 153,622.88 7,944.13
Commission on Elections 12,222.78 5,648.59 6,574.19
Health 112,246.14 106,720.28 5,525.86
Office of the President 16,747.13 11,617.03 5,130.10
National Defense 218,374.23 213,296.03 5,078.20
Other Executive Offices 52,443.66 47,376.87 5,066.79
Congress of the Philippines 17,780.90 13,683.75 4,097.15

35
Amount
(in million pesos)
Particulars Obligations
Unobligated
Allotments Covered by
Allotments
Allotments
Agrarian Reform 13,610.83 10,573.50 3,037.32
Agriculture 51,745.99 48,879.57 2,866.42
State Universities and Colleges 65,581.81 63,393.62 2,188.19
Labor and Employment 14,993.35 12,883.06 2,110.29
Autonomous Region in Muslim Mindanao 36,913.93 35,186.62 1,727.31
Foreign Affairs 20,610.10 18,929.35 1,680.75
Justice 20,694.83 19,032.58 1,662.25
Interior and Local Government 202,349.11 200,925.51 1,423.60
Judiciary 34,314.67 32,922.21 1,392.46
Science and Technology 21,808.89 20,619.10 1,189.79
Environment and Natural Resources 31,254.05 30,155.97 1,098.07
Energy 2,975.33 2,218.75 756.58
National Economic and Development
Authority 6,625.19 6,055.27 569.92
Commission on Audit 11,512.67 11,079.98 432.69
Budget and Management 3,442.86 3,073.09 369.77
Information and Communications Technology 6,546.19 6,180.00 366.18
Tourism 4,009.63 3,702.19 307.44
Metropolitan Manila Development Authority 2,631.93 2,335.64 296.28
Trade And Industry 5,770.21 5,495.99 274.21
Presidential Communications Operations Office 2,843.63 2,684.06 159.57
Office of the Ombudsman 2,541.63 2,402.83 138.80
Office of the Vice-President 696.23 663.43 32.80
Civil Service Commission 1,489.75 1,479.39 10.36
Joint Legislative-Executive Councils 3.81 3.70 0.11
Commission on Human Rights 806.92 806.92 -
Total 3,797,849.14 3,465,294.69 332,554.45
Allotments to Cover Prior Year Overdraft 1.87 - -
Total 3,797,851.01 3,465,294.69 332,554.45

Chart II-6 shows the comparative unobligated allotments, by class for FYs 2017 and 2016.

Chart II-6 Comparative Unobligated Allotments, by Class


(in billion pesos)

350.00 313.26
300.00 236.73
250.00
200.00
111.78
150.00 90.56
100.00 58.29
18.07 24.74
50.00 12.79
-
PS MOOE FinEx CO

FY 2017 FY 2016

36
Compared with FY 2016 unobligated allotments of P533.66 billion, FY 2017 unobligated
balance decreased by P201.10 billion or 37.68 percent, as a result of the decrease in the
unobligated allotments from current year’s appropriations of P186.18 billion or 39.78 percent
and from continuing appropriations of P14.92 billion or 22.72 percent. Table II-23 shows the
comparative unobligated allotments by source for FYs 2017 and 2016.

Table II-23 Comparative Unobligated Allotments, by Source

Amount
(in million pesos)
Source Percent
Increase/
2017 2016
(Decrease)
Current Year’s Appropriations 281,782.36 467,958.62 (186,176.26) (39.78)
New General Appropriations 93,269.12 258,026.04 (164,756.92) (63.85)
Agency Specific Budget 88,825.97 244,293.26 (155,467.29) (63.64)
Special Purpose Funds 4,443.16 13,732.79 (9,289.63) (67.65)
Automatic Appropriations 188,513.24 209,932.58 (21,419.34) (10.20)
Continuing Appropriations 50,772.09 65,696.50 (14,924.42) (22.72)
Unreleased Appropriations 4,571.97 6,491.97 (1,920.00) (29.58)
Allotted Appropriations 46,200.12 59,204.53 (13,004.41) (21.97)
Total 332,554.45 533,655.12 (201,100.67) (37.68)

Of the unobligated balance of P332.55 billion, P13.54 billion was retained as continuing
appropriations while P319.01 billion was reverted to the unappropriated surplus of the general
fund. Of the total retained unobligated allotments, P6.41 billion was from current year
appropriations, while P7.13 billion was from prior years’ continuing appropriations. The
breakdown of retained unobligated allotments, by class are: PS – P4.79 billion, MOOE – P6.05
billion, and CO – P2.71 billion. Total unobligated balance of allotments reverted in FY 2017
of P319.01 billion comprised of PS – P8.01 billion, MOOE – P52.25 billion, FinEx – P24.74
billion and CO – P234.02 billion. The Schedule of Continuing Appropriations is presented in
Part IX, Volume II of this Report.

Table II-24 shows the comparative unobligated allotments of top ten departments/offices for
FYs 2017 and 2016.
Table II-24 Comparative Unobligated Allotments of
Top Ten Departments/Offices
Amount
Department/ Percent (in million pesos)
Percent
Office Distribution Increase/
2017 2016
(Decrease)
Finance 56.78 188,829.19 212,888.41 (24,059.22) (11.30)
Public Works and Highways 16.07 53,426.92 123,694.33 (70,267.41) (56.81)
Education 4.12 13,689.34 45,373.39 (31,684.04) (69.83)
Transportation 3.94 13,101.38 30,503.45 (17,402.07) (57.05)
Social Welfare and
Development 2.39 7,944.13 23,041.08 (15,096.96) (65.52)
Commission on Elections 1.98 6,574.19 8,803.65 (2,229.45) (25.32)
Health 1.66 5,525.86 12,024.92 (6,499.06) (54.05)
Office of the President 1.54 5,130.10 3,639.97 1,490.13 40.94
National Defense 1.53 5,078.20 12,668.38 (7,590.18) (59.91)
Other Executive Offices 1.52 5,066.79 3,419.36 1,647.43 48.18
Other Departments/Offices 8.48 28,188.35 57,598.20 (29,409.85) (51.06)
Total 100.00 332,554.45 533,655.12 (201,100.67) (37.68)

37
The Statements of Appropriations, Allotments, Obligations, and Balances for FY 2017 are
presented in Part VI, Volume II of this Report.

Disbursements – P2.624 trillion


For FY 2017, total disbursements by the NG amounted to P2.624 trillion, representing 75.69
percent of the total obligations of P3.466 trillion. Chart II-7 shows the comparative
disbursements by allotment class for FYs 2017 and 2016.

Chart II-7 Comparative Disbursements by Allotment Class


(in billion pesos)

1,200.00
1,043.55
1,000.00 887.62
814.26
800.00 729.17

600.00 498.49
454.20
400.00 311.66 303.54
200.00

-
PS MOOE FinEx CO

FY 2017 FY 2016

For FY 2017, huge amounts of decrease in disbursements were reported by DBM – P11.78
billion, DOTr – P10.89 billion and DOLE – P4.89 billion. The decline in disbursements of the
DBM was due primarily to the transfer of the administration of the IRA and financial subsidy
to LGUs to the BTr while the decline in disbursements of DOLE was due to the transfer of
Technical Education and Skills Development Authority as attached agency to Other Executive
Offices.
Table II-25 presents the comparative disbursements of department/offices for FYs 2017 and
2016.

Table II-25 Comparative Disbursements by Department/Office

Amount
(in million pesos)
Particulars Percent
Increase/
2017 2016
(Decrease)
Finance 1,113,965.92 1,097,282.60 16,683.32 1.52
Education 384,435.61 340,715.32 43,720.29 12.83
Public Works and Highways 226,263.16 186,042.16 40,221.00 21.62
Interior and Local Government 183,928.36 163,845.92 20,082.44 12.26

38
Amount
(in million pesos)
Particulars Percent
Increase/
2017 2016
(Decrease)
National Defense 172,267.09 154,991.44 17,275.65 11.15
Social Welfare and Development 129,805.34 92,644.35 37,160.99 40.11
Health 67,023.61 56,117.66 10,905.95 19.43
State Universities and Colleges 53,542.97 46,205.03 7,337.94 15.88
Agriculture 32,474.48 25,330.50 7,143.97 28.20
Judiciary 32,088.27 30,405.29 1,682.98 5.54
Transportation 27,122.26 38,011.03 (10,888.77) (28.65)
Other Executive Offices 23,842.19 13,065.71 10,776.48 82.48
Autonomous Region in Muslim Mindanao 23,140.82 21,827.57 1,313.24 6.02
Environment and Natural Resources 22,211.51 21,368.73 842.78 3.94
Justice 17,386.08 14,002.42 3,383.66 24.16
Foreign Affairs 17,190.57 15,530.84 1,659.73 10.69
Science and Technology 14,246.96 14,255.05 (8.10) (0.06)
Congress of the Philippines 13,069.29 11,517.85 1,551.44 13.47
Commission on Audit 10,978.13 9,598.18 1,379.95 14.38
Labor and Employment 10,404.19 15,293.62 (4,889.42) (31.97)
Office of the President 8,572.34 2,511.63 6,060.72 241.31
Agrarian Reform 8,273.69 7,362.04 911.65 12.38
Trade And Industry 4,741.85 4,363.33 378.52 8.68
Commission on Elections 4,618.18 5,823.27 (1,205.09) (20.69)
National Economic and Development
Authority 4,532.16 5,794.55 (1,262.39) (21.79)
Budget and Management 2,760.17 14,535.60 (11,775.43) (81.01)
Presidential Communications Operations
Office 2,602.37 1,176.78 1,425.58 121.14
Tourism 2,408.74 2,725.86 (317.12) (11.63)
Information and Communications
Technology 2,406.17 - 2,406.17 -
Office of the Ombudsman 2,289.72 2,117.76 171.96 8.12
Civil Service Commission 1,477.82 1,449.40 28.42 1.96
Metropolitan Manila Development
Authority 1,277.99 1,399.01 (121.02) (8.65)
Energy 998.48 787.25 211.23 26.83
Commission on Human Rights 700.58 449.20 251.38 55.96
Office of the Vice-President 615.23 265.17 350.06 132.01
Joint Legislative-Executive Councils 3.68 2.64 1.04 39.35
Total 2,623,665.98 2,418,814.76 204,851.22 8.47

Unpaid Obligations – P842.49 billion


For FY 2017, total unpaid obligations of the NG amounted to P842.49 billion or 24.31 percent
of the total obligations of P3.466 trillion. Chart II-8 reflects the comparative unpaid obligations
by allotment class for FYs 2017 and 2016.

39
Chart II-8 Comparative Unpaid Obligations by Allotment Class
(in billion pesos)

600.00 572.44
500.00
400.00 324.63
300.00 251.13

200.00 126.13
18.35 24.50 0.54
100.00 0.57

-
FY 2017 FY 2016
PS MOOE FinEx CO

Among the departments/offices, the highest amounts of unpaid obligations were reported by
the following: DPWH – P395.38 billion or 46.93 percent, DOF – P108.53 billion or 12.88
percent, DepEd – P73.97 billion or 8.78 percent, DOTr – P42.12 billion or 5 percent, DND –
P41.03 billion or 4.87 percent, and DOH – P39.70 billion or 4.71 percent. Table II-26 presents
the obligations, disbursements and unpaid obligations by department/office.

Table II-26 Comparative Obligations, Disbursements and Unpaid Obligations,


by Department/Office

Amount
(in million pesos)
Particulars
Unpaid
Obligations Disbursements
Obligations
Public Works and Highways 621,639.46 226,263.16 395,376.30
Finance 1,222,498.91 1,113,965.92 108,532.99
Education 458,407.12 384,435.61 73,971.51
Transportation 69,244.46 27,122.26 42,122.20
National Defense 213,296.03 172,267.09 41,028.94
Health 106,720.28 67,023.61 39,696.67
Social Welfare and Development 153,622.88 129,805.34 23,817.54
Other Executive Offices 47,407.52 23,842.19 23,565.33
Interior and Local Government 200,925.51 183,928.36 16,997.15
Agriculture 48,879.57 32,474.48 16,405.10
Autonomous Region in Muslim
Mindanao 35,186.62 23,140.82 12,045.81
State Universities and Colleges 63,393.62 53,542.97 9,850.65
Environment and Natural Resources 30,159.84 22,211.51 7,948.33
Science and Technology 20,619.66 14,246.96 6,372.70
Information and Communications
Technology 6,180.00 2,406.17 3,773.83
Office of the President 11,617.03 8,572.34 3,044.69
Labor and Employment 12,883.06 10,404.19 2,478.87
Agrarian Reform 10,573.50 8,273.69 2,299.82
Foreign Affairs 18,929.35 17,190.57 1,738.78
Justice 19,032.58 17,386.08 1,646.50

40
Amount
(in million pesos)
Particulars
Unpaid
Obligations Disbursements
Obligations
National Economic and Development
Authority 6,055.27 4,532.16 1,523.10
Congress of the Philippines 14,369.82 13,069.29 1,300.53
Tourism 3,702.19 2,408.74 1,293.45
Energy 2,218.75 998.48 1,220.27
Metropolitan Manila Development
Authority 2,335.64 1,277.99 1,057.66
Commission on Elections 5,648.59 4,618.18 1,030.41
The Judiciary 32,922.21 32,088.27 833.94
Trade and Industry 5,495.99 4,741.85 754.14
Budget and Management 3,073.09 2,760.17 312.92
Office of the Ombudsman 2,402.83 2,289.72 113.11
Commission on Human Rights 806.92 700.58 106.35
Commission on Audit 11,079.98 10,978.13 101.85
Presidential Communications Operations
Office 2,684.06 2,602.37 81.69
Office of the Vice-President 663.43 615.23 48.20
Civil Service Commission 1,479.39 1,477.82 1.56
Joint Legislative-Executive Councils 3.70 3.68 0.01
Total 3,466,158.89 2,623,665.98 842,492.90

In comparison with FY 2016, a significant drop in balances of unpaid obligations for FY 2017
were reported by: COMELEC – P6.19 billion, DA – P3.84 billion, DFA – P1.82 billion, DOT
– P608.83 million, DOJ – P452.60 million, and COP – P331.98 million. Table II-27 presents
the comparative unpaid obligations by department/office for FYs 2017 and 2016.

Table II-27 Comparative Unpaid Obligations by Department/Office

Amount
(in million pesos)
Particulars Percent
Increase/
2017 2016
(Decrease)
Public Works and Highways 395,376.30 239,799.53 155,576.77 64.88
Finance 108,532.99 53,266.44 55,266.55 103.75
Education 73,971.51 30,333.38 43,638.13 143.86
Transportation 42,122.20 23,786.41 18,335.78 77.09
National Defense 41,028.94 13,676.24 27,352.70 200.00
Health 39,696.67 22,562.20 17,134.46 75.94
Social Welfare and Development 23,817.54 16,248.37 7,569.17 46.58
Other Executive Offices 23,565.33 4,390.89 19,174.44 436.69
Interior and Local Government 16,997.15 6,712.32 10,284.82 153.22
Agriculture 16,405.10 20,248.89 (3,843.79) (18.98)
Autonomous Region in Muslim Mindanao 12,045.81 5,555.90 6,489.91 116.81
State Universities and Colleges 9,850.65 6,443.39 3,407.26 52.88
Environment and Natural Resources 7,948.33 4,306.77 3,641.56 84.55
Science and Technology 6,372.70 4,684.30 1,688.41 36.04
Information and Communications Technology 3,773.83 - 3,773.83 -
Office of the President 3,044.69 314.31 2,730.38 868.69
Labor and Employment 2,478.87 1,573.94 904.93 57.49
Agrarian Reform 2,299.82 830.35 1,469.46 176.97
Foreign Affairs 1,738.78 3,554.25 (1,815.48) (51.08)
Justice 1,646.50 2,099.09 (452,60) (21.56)

41
Amount
(in million pesos)
Particulars Percent
Increase/
2017 2016
(Decrease)
National Economic and Development
Authority 1,523.10 740.44 782.66 105.70
Congress of the Philippines 1,300.53 1,632.51 (331.98) (20.34)
Tourism 1,293.45 1,902.28 (608.83) (32.01)
Energy 1,220.27 1,010.78 209.49 20.73
Metropolitan Manila Development Authority 1,057.66 206.26 851.40 412.78
Commission on Elections 1,030.41 7,224.78 (6,194.36) (85.74)
The Judiciary 833.94 960.79 (126.85) (13.20)
Trade and Industry 754.14 1,001.45 (247.31) (24.70)
Budget and Management 312.92 432.11 (119.19) (27.58)
Office of the Ombudsman 113.11 152.84 (39.73) (26.00)
Commission on Human Rights 106.35 35.53 70.82 199.35
Commission on Audit 101.85 61.50 40.35 65.60
Presidential Communications Operations Office 81.69 28.24 53.46 189.30
Office of the Vice-President 48.20 13.65 34.55 253.20
Civil Service Commission 1.56 9.93 (8.37) (84.26)
Joint Legislative-Executive Council 0.01 0.16 (0.15) (91.22)
Total 842,492.90 475,800.24 366,692.67 77.07

The Statement of Appropriations, Allotments, Obligations, Disbursements and Balances for


FY 2017, by department/office and by agency is presented in Part VII, Volume II of this Report.

42
III. CURRENT SURPLUS
OF THE NATIONAL
GOVERNMENT
PART III – CURRENT SURPLUS OF THE NATIONAL
GOVERNMENT

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 (GF) of the National
Government (NG) now being maintained by the GAS thru the following registries
prescribed under COA Resolution No. 2014-022 dated September 12, 2014:

Registry Particulars
Registry of Revenue (RR)  revenues generated by the NG agencies
(NGAs) that accrue to the GF, including grants
based on the verified Quarterly Report on
Revenue and Other Receipts
Registry of Domestic and Foreign  domestic and foreign loans of the NG based on
Borrowings (RDFB) the verified Quarterly Report of Domestic and
Foreign Borrowings from the NGAs and
Bureau of the Treasury (BTr)
Registry of Appropriations and  appropriations of the agency based on the
Allotments (RAPAL) General Appropriations Act (GAA) and other
appropriations laws
 allotments releases by the Department of
Budget and Management (DBM) to the various
agencies of the government out of the
authorized appropriations
 appropriations and release of allotments
pertaining to Special Purpose Fund (SPF)
 transfer from one agency to another,
realignment/augmentation, and withdrawal of
appropriations and allotments based on the
Special Allotment Release Orders (SAROs),
budget documents/letter authority received
from the DBM
 unreleased appropriations
Registry of Appropriations and  appropriations for the SPF based on the GAA
Transfers for Special Purpose Funds  transfer of appropriations for SPF to the
(RATSPF) departments/agencies concerned based on the
SAROs/budget documents issued by the DBM
43
Registry Particulars
Registry of Allotments, Obligations  obligations incurred and paid by the agencies
and Disbursements (RAOD) out of the released allotments based on the
verified Budget and Financial Accountability
Reports (BFARs)
 unobligated balances of allotments
 unpaid obligations (due and demandable and
not yet due and demandable)
Registry of Overdraft in Allotments  obligations incurred by the agencies but not
(ROA) covered by allotments based on verified
BFARs

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 BFARs 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 (SAAODB) and
the Statement of Current Surplus (SCS), which form part of the Annual Report on
Appropriations, Allotments, Obligations and Disbursements (ARAAOD) and the Annual
Financial Report (AFR) for the NG.

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 GAA. 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.

Current Surplus of the National Government


The Current Surplus of the NG is the net balance of the combined figures of the following
components: Unappropriated Surplus, Unreleased Continuing Appropriations,
Unobligated Continuing Appropriations, and Overdraft in Allotments.

For FY 2017, the overall ending balance of the Current Surplus amounted to P939.10
billion, broken down as follows: Unappropriated Surplus – P922.05 billion, Unreleased
Continuing Appropriations – P4.83 billion, Unobligated Continuing Appropriations –
P13.54 billion, and Overdraft in Allotments – P1.32 billion.

Table III.1 Current Surplus of the National Government


(in million pesos)

Unreleased Unobligated Overdraft


Total Current Unappropriated
Description Continuing Continuing in
Surplus Surplus
Appropriations Appropriations Allotments
Beginning Balance 447,628.94 49,331.47 150,088.16 248,670.37 (461.06)
Adjustments - (473.11) 12,799.03 (12,327.79) 1.87
Adjusted Beginning
Balance 447,628.94 48,858.36 162,887.20 236,342.58 (459.19)
44
Unreleased Unobligated Overdraft
Total Current Unappropriated
Description Continuing Continuing in
Surplus Surplus
Appropriations Appropriations Allotments
Add:
Revenue 2,455,602.85 2,455,602.85 - - -
Borrowings 1,502,030.57 1,502,030.57 - - -
Issuance of Bills 713,901.42 713,901.42 - - -
Issuance of Bonds 727,939.84 727,939.84 - - -
Loan Proceeds 60,189.32 60,189.32 - - -
Sub-total 4,405,262.36 4,006,491.78 162,887.20 236,342.58 (459.19)
Obligations (3,466,158.89) (3,193,963.75) (81,188.48) (190,142.45) (864.20)
Sub-total 939,103.47 812,528.03 81,698.71 46,200.12 (1,323.39)
Reversion of
Continuing
Appropriations - 120,772.93 (81,698.71) (39,074.22) -
Sub-total 939,103.47 933,300.96 - 7,125.90 (1,323.39)
Retention of
Continuing
Appropriations - (11,248.70) 4,834.88 6,413.82 -
Ending Balances 939,103.47 922,052.26 4,834.88 13,539.72 (1,323.39)

Unappropriated Surplus – P922.05 billion

The Unappropriated Surplus is composed of various transactions that transpired during the
year, such as: revenue, borrowings, obligations, adjustments, reversions and retentions of
unreleased continuing appropriations and unobligated continuing appropriations.

From its beginning balance of P49.33 billion, it ended to P922.05 billion brought about by
the following transactions: adjustments – (P473.11) million, revenue – P2.456 trillion,
borrowings – P1.502 trillion, obligations covered by allotments from current year’s
appropriations – P3.194 trillion, reversions of unreleased continuing appropriations and
unobligated continuing appropriations of P120.77 billion, and retentions of unreleased
continuing appropriations and unobligated continuing appropriations of P11.25 billion.

Unreleased Continuing Appropriations – P4.83 billion

The unreleased continuing appropriations refers to the unreleased balance of the total
appropriations for which no comprehensive release and allotment release orders were
issued by the DBM.

From its beginning balance of P150.09 billion, the year-end balance registered at P4.83
billion brought about by the following: adjustments in the beginning balance – P12.80
billion, obligations – P81.19 billion, reversions – P81.70 billion, and retentions – P4.83
billion. The breakdown of retained unreleased continuing appropriations by
department/office and by agency is shown in Part VI, Volume II of this Report.

Unobligated Continuing Appropriations – P13.54 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.

45
From its beginning balance of P248.67 billion, the year-end balance amounted to P13.54
billion brought about by the following: adjustments in the beginning balance – (P12.33)
billion, obligations – P190.14 billion, reversions – P39.07 billion, and retentions – P6.41
billion. The breakdown of unobligated continuing appropriations by department/office
and by agency is presented in Part VI, Volume II of this Report.

Overdraft in Allotments – P1.32 billion

Obligations incurred in excess of allotments is another kind of transactions affecting the


Current Surplus. Total overdraft in allotments of P1.32 billion consists of the obligations
not covered by allotments incurred by NGAs in FY 2012 - P81.59 million, FY 2013 –
P3.26 million, FY 2014 – P148.53 million, FY 2015 – P8.71 million, FY 2016 – P217.11
million and FY 2017 – P864.20 million. The breakdown of overdraft in allotments
incurred by department/office and by agency is shown in Part VI, Volume II of this Report.

46
IV. COMPARATIVE FINANCIAL
STATEMENTS
Republic of the Philippines
National Government
Statement of Financial Position
As at December 31, 2017
(in thousand pesos)

2016
Note 2017 (Restated)

ASSETS
Current Assets
Cash and Cash Equivalent 4 237,331,695.16 37,726,754.18
Investments 5 94,465,127.56 75,765,942.05
Receivables 6 854,917,537.24 787,841,068.82
Inventories 7 90,091,458.27 65,853,106.09
Other Current Assets 8 150,852,722.58 126,383,381.83
Total Current Assets 1,427,658,540.81 1,093,570,252.96

Non-Current Assets
Investments 9 995,205,694.18 1,106,420,918.46
Receivables 10 203,481,165.74 200,276,491.50
Investment Property 11 2,159,375.50 2,699,787.05
Property, Plant and Equipment 12 2,496,282,517.73 2,176,209,166.05
Biological Assets 13 1,478,263.10 1,942,525.33
Intangible Assets 14 4,533,729.21 2,877,871.23
Other Non-Current Assets 15 116,449,869.04 112,848,720.33
Total Non-Current Assets 3,819,590,614.51 3,603,275,479.95

TOTAL ASSETS 5,247,249,155.32 4,696,845,732.91

LIABILITIES
Current Liabilities
Financial Liabilities 16 987,220,728.95 882,225,362.04
Inter-Agency Payables 17 63,459,598.79 61,802,233.79
Intra-Agency Payables 18 131,882.06 -
Trust Liabilities 19 66,122,086.88 52,606,038.52
Other Payables 20 44,928,638.71 85,081,070.97
Deferred Credits/Unearned Income 21 4,918,195.92 5,458,984.93
Provisions 22 61,163.34 47,380.26
Total Current Liabilities 1,166,842,294.65 1,087,221,070.52

Non-Current Liabilities
Financial Liabilities 23 5,863,483,592.88 5,389,492,343.60
Trust Liabilities 24 15,647,417.44 11,411,904.90
Deferred Credits/Unearned Income 25 27,578,554.34 26,315,419.93
Other Payables 26 29,660,416.52 24,007,632.12
Provisions 27 1,997,839.95 2,913,906.13
Total Non-Current Liabilities 5,938,367,821.13 5,454,141,206.68

TOTAL LIABILITIES 7,105,210,115.78 6,541,362,277.19

NET ASSETS (1,857,960,960.46) (1,844,516,544.29)

NET ASSETS/EQUITY
Government Equity (1,858,884,136.18) (1,859,166,682.92)
Accumulated Surplus/(Deficit) 42 (1,881,136,207.98) (1,935,204,804.90)
Contributed Capital 8,000.00 8,000.00
Revaluation Surplus 22,244,071.80 76,030,121.97

Unrealized Gain/(Loss) 923,175.71 14,650,138.64

NET ASSETS/EQUITY (1,857,960,960.46) (1,844,516,544.29)

Difference between totals and sum of components is due to rounding off


The above statement should be read in conjunction with the accompanying notes.

47
Republic of the Philippines
National Government
Detailed Statement of Financial Performance
For the Year Ended December 31, 2017
(in thousand pesos)

2016
Note 2017 (Restated)

Revenue
Tax Revenue 29 2,257,181,512.89 1,986,281,846.52
Service and Business Income 30 197,872,237.50 187,226,778.62
Shares, Grants and Donations 31 67,579,754.45 55,486,622.50
Miscellaneous Income 32 883,871.21 773,833.62
Gains 33 76,762.69 47,021.17

Total Revenue 2,523,594,138.74 2,229,816,102.44


Less: Current Operating Expenses
Personnel Services 34 831,596,893.62 762,078,451.54
Maintenance and Other Operating Expenses 35 302,208,768.34 247,028,807.80
Financial Expenses 36 325,201,289.14 315,797,365.97
Non-Cash Expenses 37 78,429,699.50 70,766,941.85

Total Current Operating Expenses 1,537,436,650.59 1,395,671,567.16

Surplus/(Deficit) from Current Operations 986,157,488.15 834,144,535.28

Net Financial Assistance/Subsidy 38 (802,505,148.53) (732,770,094.47)


Other Non-Operating Income 39 10,177,479.63 16,737,248.98
Losses 40 (38,064,397.32) (76,859,130.69)

Surplus/(Deficit) for the period 41 155,765,421.93 41,252,559.10

Difference between totals and sum of components is due to rounding off


The above statement should be read in conjunction with the accompanying notes.

48
Republic of the Philippines
National Government
Statement of Changes in Net Assets/Equity
For the Year Ended December 31, 2017
(in thousand pesos)

Accumulated
Surplus/(Deficit)
2016
Note 2017 (Restated)

Balances at January 1 42.1 (1,935,204,804.90) (1,564,181,676.04)


Add/(Deduct):
Changes in accounting policy - (1,537,638.81)
Prior period errors - (178,451,198.79)
Other Adjustments - (45,570,722.88)
Restated Balances (1,935,204,804.90) (1,789,741,236.51)

Add/(Deduct):
Changes in Net Assets/Equity for the Fiscal Year 42.2
Surplus/(Deficit) for the Period 155,765,421.93 41,252,559.10
Adjustment of net revenue recognized directly in net assets/equity (4,024,202.05) (12,782,810.11)
Others (97,672,622.96) (173,933,317.37)
Balances at December 31 42.3 (1,881,136,207.98) (1,935,204,804.90)

Difference between totals and sum of components is due to rounding off


The above statement should be read in conjunction with the accompanying notes.

49
Republic of the Philippines
National Government
Statement of Cash Flows
For the Year Ended December 31, 2017
(in thousand pesos)

2016
Note 2017 (Restated)
Cash Flows From Operating Activities
Cash Inflows 43
Collection of Income/Revenues 2,467,137,318.96 2,190,303,713.97
Receipt of Assistance and Subsidy and from
Other NGAs, LGUs and GOCCs 5,069,803.25 4,398,210.12
Collection of Receivables 52,328,652.62 41,566,084.32
Receipt of Inter-Agency Fund Transfers 22,283,150.52 19,690,739.26
Trust Receipts 70,601,648.78 55,720,607.57
Other Receipts 14,115,277.56 28,964,882.33
Adjustments 4,867,969.83 4,394,386.43
Total Cash Inflows 2,636,403,821.52 2,345,038,624.01
Cash Outflows 44
Payment of Expenses 742,730,020.78 699,073,429.77
Purchase of Inventories 43,418,790.03 31,752,507.19
Purchase of Consumable Biological Assets 167,636.65 1,987,687.47
Grant of Cash Advances 74,666,795.64 64,476,586.68
Prepayments 9,083,878.69 5,904,493.67
Refund of Deposits 31,174,818.32 41,613,455.93
Payment of Accounts Payable 82,209,942.76 57,938,603.94
Remittance of Personnel Benefit Contributions and
Mandatory Deductions 258,483,994.87 267,856,904.28
Grant of Financial Assistance/Subsidy 773,392,383.34 630,014,029.60
Release of Inter-Agency Fund Transfers 100,939,335.30 85,973,558.10
Other Disbursements 109,114,350.59 47,368,375.71
Adjustments 48,150,543.60 126,858,095.19
Total Cash Outflows 2,273,532,490.56 2,060,817,727.52
Net Cash Provided by (Used in) Operating Activities 362,871,330.97 284,220,896.50
Cash Flows from Investing Activities
Cash Inflows 45
Proceeds from Sale of Investment Property 11,151.52 22,218.74
Proceeds from Sale/Disposal of Property, Plant and Equipment 25,481.09 23,766.36
Sale of Investments 68,843,649.31 47,661,293.76
Receipt of Cash Dividends 30,440,502.26 28,900,821.54
Proceeds from Matured/Return of Investments 77,038,623.66 63,871,192.56
Collection of Long-Term Loans 4,727,651.28 2,900,273.36
Proceeds from Sale of Other Assets 5,167.66 4,231.19
Total Cash Inflows 181,092,226.79 143,383,797.50
Cash Outflows 46
Purchase/Construction of Investment Property 191,320.43 26,070.49
Purchase/Construction of Property, Plant and Equipment 392,593,408.27 324,400,980.77
Investments 115,783,207.00 44,363,360.85
Purchase of Bearer Biological Assets 24,563.12 22,067.88
Purchase of Intangible Assets 423,871.01 530,067.38
Grant of loans 3,909,720.31 3,332,461.70
Total Cash Outflows 512,926,090.14 372,675,009.06
Net Cash Provided by (Used in) Investing Activities (331,833,863.35) (229,291,211.57)
Cash Flows from Financing Activities
Cash Inflows 47
Proceeds from issuance of bills and bonds 1,441,842,233.81 1,001,423,131.69
Proceeds from Domestic and Foreign Loans 60,199,924.04 48,597,541.61
Total Cash Inflows 1,502,042,157.84 1,050,020,673.30
Cash Outflows 48
Payment of Long-Term Liabilities 64,766,166.13 68,883,868.15
Redemption of Bills/Bonds Issued 890,128,917.56 1,002,049,095.86
Payment of Interest Expense 271,777,888.84 269,924,677.69
Total Cash Outflows 1,226,672,972.53 1,340,857,641.70
Net Cash Provided by (Used in) Financing Activities 275,369,185.32 (290,836,968.40)
Increase(Decrease) in Cash and Cash Equivalents 306,406,652.94 (235,907,283.47)
Effects of Exchange Rate Changes on Cash and Cash Equivalents 49 363,198.37 414,337.71
Cash and Cash Equivalents, January 1, 50.1 559,183,327.01 794,676,272.76
Cash and Cash Equivalents, December 31 50.2 865,953,178.32 559,183,327.01

Difference between totals and sum of components is due to rounding off


The above statement should be read in conjunction with the accompanying notes.

50
Republic of the Philippines
National Government
Statement of Comparison of Budget and Actual Amounts
For the Year Ended December 31, 2017
(in thousand pesos)

Budgeted Amount Actual Amounts on Differrence Final


Note Original Final Comparable Basis Budget and Actual
RECEIPTS 51
Tax Revenue 2,313,470,975.00 2,321,385,274.76 2,264,578,047.22 56,807,227.54
Service and Business Income 145,021,928.00 126,116,292.89 133,136,548.72 (7,020,255.83)
Shares, Grants and Donations 19,447,233.00 57,846,494.05 54,838,252.41 3,008,241.64
Gains 22,647.00 2,502,405.44 2,511,883.49 (9,478.05)
Others 1,468,309.00 1,503,541,584.48 1,502,526,800.45 1,014,784.03
Non-Operating Income/Revenues 1,468,309.00 1,511,012.25 496,228.22 1,014,784.03
Loan Proceeds (Foreign Loans) - 60,189,317.19 60,189,317.19 -
Issuance of Bills (Domestic) - 713,901,417.87 713,901,417.87 -
Issuance of Bonds - 727,939,837.17 727,939,837.17 -
Domestic - 702,002,513.54 702,002,513.54 -
Foreign - 24,242,257.00 24,242,257.00 -
Interest - 1,695,066.63 1,695,066.63 -
Total Receipts 2,479,431,092.00 4,011,392,051.62 3,957,591,532.29 53,800,519.33
PAYMENTS 52
Personnel Services 765,275,418.14 882,630,668.47 811,113,046.40 71,517,622.07
Maintenance and Other Operating Expenses 1,112,886,647.11 1,350,721,161.22 1,042,083,209.21 308,637,952.01
Capital Outlays 1,074,926,306.08 969,448,255.85 301,198,843.15 668,249,412.70
Financial Expenses 337,357,042.80 336,961,159.35 311,655,887.19 25,305,272.16
Debt Service (Principal Amortization) 313,259,829.72 312,403,000.00 152,996,820.04 159,406,179.96
Total Payments 3,603,705,243.84 3,852,164,244.90 2,619,047,805.99 1,233,116,438.91
NET RECEIPTS/PAYMENTS 53 (1,124,274,151.84) 159,227,806.72 1,338,543,726.30 (1,179,315,919.58)

Difference between totals and sum of components is due to rounding off


The above statement should be read in conjunction with the accompanying notes.

51
Republic of the Philippines
National Government
Notes to Combined Financial Statements
For the Year Ended December 31, 2017

1. GENERAL INFORMATION

The 2017 AFR for the National Government (NG) presents the combined Financial
Statements (FSs) submitted by 321 national government agencies (NGAs),
including the state universities and colleges (SUCs), Autonomous Region in
Muslim Mindanao (ARMM) and government corporations (GCs) maintaining
Special Account in the General Fund (SAGF). Of these entities, 254 operate as
stand-alone, while 67 have staff bureaus, regional offices (ROs), and operating
units (OUs)/field offices (FOs), of which 19 adopt a centralized accounting system
and 48 a decentralized accounting system. The list of these entities and their
registered office addresses are shown in Annex A.

2. STATEMENT OF COMPLIANCE AND BASIS OF


PREPARATION OF FINANCIAL STATEMENTS

As stated in the Statement of Management Responsibilities for FSs signed by the


heads of the agencies, the FSs were prepared in conformity with the Philippine
Public Sector Accounting Standards (PPSAS) prescribed under Commission on
Audit (COA) Resolution No. 2014-003 dated January 24, 2014 and with generally
accepted state accounting principles. To a great extent, the NGAs complied with
the provisions of the Government Accounting Manual (GAM) issued under COA
Circular No. 2015-007 dated October 22, 2015.

The FSs comprise the Statement of Financial Position (SFPos), Statement of


Financial Performance (SFPer), Statement of Changes in Net Assets/Equity
(SCNA/E), Statement of Cash Flows (SCF), Statement of Comparison of Budget
and Actual Amounts (SCBAA), and the Notes to FSs. These statements were
prepared on the basis of historical cost, unless stated otherwise.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1. Basis of accounting

The combined FSs are prepared on an accrual basis in accordance with


applicable PPSAS except in the case of taxes and related fines and penalties
which are recognized when collected or when these are measurable and
legally collectible.

3.2. Combination/Consolidation

The combined FSs cover the FSs submitted by fund cluster, as follows:
a. Regular Agency Fund

52
b. Foreign Assisted Projects Fund
c. Special Account-Locally Funded/Domestic Grants Fund
d. Special Account-Foreign Assisted/Foreign Grants Fund
e. Internally Generated Funds
f. Business Related Funds
g. Trust Funds

Intra-governmental transactions are eliminated in the consolidation, except


for unmatched transactions and balances discussed in the succeeding pages
of this Report.

3.3. Presentation of financial statements

This Report presents on a comparative basis the FSs for FY 2017 and
restated FSs for FY 2016. This is to facilitate analysis of changes/variances
of the current year from that of the previous year.

3.4. Correction of prior years’ errors

Prior years’ errors affecting the assets and liabilities are corrected using the
related accounts, while those affecting the income and expense accounts
are adjusted to the Accumulated Surplus/(Deficit) account.

3.5. Changes in accounting estimates and policies

The NGAs apply the prospective application in recognizing the effects of


changes in accounting estimates; as such, the changes are included in the
surplus or deficit. On the other hand, the retrospective application is used
to effect changes in accounting policy, except when application is
impractical, wherein the prospective application is used.

3.6. Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash in banks, which
are composed of current and savings accounts, and time deposits, in
Philippine peso and foreign currencies. Cash equivalents are short-term and
highly liquid investments with original maturity of three months or less
from date of acquisition, which are readily convertible to known amounts
of cash and subject to insignificant risk of changes in value.

Petty Cash Fund (PCF) is set up for the recurring petty expenses of an
agency for one month. It is maintained on an imprest system wherein
replenishment is charged to the appropriate expense accounts. The PCF is
kept separately from the other cash advances, and is not used for payment
of regular expenses such as rentals, inventory items for stock and other
disbursements which should be paid through checks and/or Advice to Debit
Account (ADA).

53
3.7. Financial assets

a. Initial recognition

Financial assets are recognized by an NGA when it becomes party to


the contractual provisions of the instrument. A financial asset is
measured initially at its fair value plus, in the case of financial asset not
measured at fair value through surplus or deficit, transaction costs that
are directly attributable to the acquisition or issue of the financial asset.

Financial assets within the scope of PPSAS 29-Financial Instruments:


Recognition and Measurement, are classified as: (1) financial assets at
fair value through surplus or deficit, (2) held-to-maturity investments,
and (3) loans and receivables or available-for-sale financial assets, as
appropriate. The classification of financial assets at initial recognition
depends on the purpose for which the financial assets are bought and
held. Management decides on their initial classification at the time of
initial recognition.

b. Subsequent measurement

The subsequent measurement of financial assets depends on their


classification. After initial recognition, NGAs measure financial assets,
including derivatives that are assets, at their fair values, without any
deduction for transaction costs it may incur on sale or other disposal,
except for the following financial assets:

i. Loans and receivables and held-to-maturity investments measured


at amortized cost using the effective interest method; and
ii. Investments in equity instruments that do not have a quoted market
price in an active market and whose fair value cannot be reliably
measured, and derivatives that are linked to and must be settled by
delivery of such unquoted equity instruments, which are measured
at cost.

c. Impairment

An NGA assesses at each reporting date whether there is objective


evidence that a financial asset or a group of financial assets is impaired.
A financial asset or a group of financial assets is deemed impaired if,
there is objective evidence of impairment as a result of one or more
events that has/have occurred after the initial recognition of the asset
and that loss event has an impact on the estimated future cash flows of
the financial asset or the group of financial assets that can be reliably
estimated. Evidence of impairment may include the following:

i. The debtor or a group of debtors is experiencing significant


financial difficulty;
ii. Default or delinquency in interest or principal payments;
iii. The probability that debtors will enter bankruptcy or other financial

54
reorganization; and
iv. Observable data indicates a measurable decrease in estimated future
cash flows (e.g., changes in arrears or economic conditions that
correlate with defaults).

d. Derecognition

An NGA derecognizes a financial asset or, where applicable, a part of


a financial asset or part of a group of similar financial assets when:

i. the contractual rights to the cash flows from the financial asset
expired or are waived; and
ii. an NGA has transferred its contractual rights to receive the cash
flows of the financial assets, or retains the contractual rights to
receive the cash flows of the financial assets but assumes a
contractual obligation to pay the cash flows to one or more
recipients in an arrangement that meets the conditions set forth in
PPSAS 29-Financial Instruments: Recognition and Measurement;
and either an NGA has:

1) transferred substantially all the risks and rewards of ownership


of the financial asset; or
2) neither transferred nor retained substantially all the risks and
rewards of ownership of the financial asset, but has transferred
the control of the asset.

e. Financial assets at fair value through surplus and deficit

Financial assets at fair value through surplus and deficit include


financial assets held for trading and financial assets designated upon
initial recognition at fair value through surplus and deficit. Financial
assets are classified as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term.

Changes in fair value of non-derivative financial assets designated as


available-for-sale are reported in the SCNA/E.

Investments in government securities of Bond Sinking Fund (BSF) for


NG-issued bonds are financial assets classified as available-for-sale.

f. Financial assets-held to maturity

Non-derivative financial assets with fixed or determinable payments


and fixed maturities are classified as held to maturity when the agency
has the positive intention and ability to hold it to maturity.

After initial measurement, held-to-maturity investments are measured


at amortized cost using the effective interest method, less impairment.
Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are integral part of the

55
effective interest rate. The losses arising from impairment are
recognized in surplus or deficit.

Bond premiums or discounts on bond investments are added or


deducted from the Investments in Bonds account and are being
amortized over the life of the securities as adjustment to the payable
account.

3.8. Inventories

Inventories are initially recognized and measured at cost which include


purchase price, import duties and taxes, freight, handling and other costs
directly attributable to the acquisition of the finished goods, materials and
services as well as other costs incurred in bringing the inventories to their
present location and condition. Inventories acquired through non-exchange
transactions (for no cost or for a nominal cost) are measured at fair value at
the date of the acquisition.

Inventories are recognized as expense when issued for utilization or


consumption in the ordinary course of operation using the weighted average
method.

Tangible items below the capitalization threshold of P15,000 are accounted


as semi-expendable property but are also recognized as expenses upon issue
to the end-user. Minor repairs and maintenance are recognized as expense
in the period when incurred.

3.9. Investments

Bond premiums or discounts on NG-BSF and bond investments are added


to or deducted from the Investments in Bonds, and are 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.

a. Initial recognition

Investment Property is measured initially at cost, including transaction


costs. Such costs do not include start-up costs, abnormal waste, or initial
operating losses incurred before the investment property achieves the
planned level of occupancy. The carrying amount includes the
replacement cost of components of an existing investment property at
the time that cost is incurred if the recognition criteria are met.

Investment property acquired through non-exchange transaction is

56
measured at fair value at the date of acquisition.

b. Subsequent measurement

Subsequent to initial recognition, investment property is measured


using the cost model and is depreciated over its estimated useful life
using the straight line method. Useful life of investment property is
consistent with the useful life of similar property, plant and equipment
(PPE). Investment property is also tested for impairment and
impairment losses are also recognized when appropriate. In the case of
Investment Property, Building, impairment is a loss in the future
economic benefit over and above the systematic recognition of loss of
the asset’s future economic benefit through depreciation. After
recognition of an impairment loss, the depreciation charge of the
investment property is adjusted in future periods to allocate the assets
revised carrying amount over its remaining useful life.

c. Derecognition

Investment property is derecognized upon disposal or when it is


permanently withdrawn from use or no future economic benefits are
expected from its disposal. The difference between the net disposal
proceeds and the carrying amount of the asset is recognized in surplus
or deficit in the period of derecognition. Transfer to and from
investment property is made only when there is a change in use of the
asset.

3.11. Property, plant and equipment

PPE are tangible items that are held for use in the production or supply of
goods or services, for rental to others, or for administrative purposes; and
are expected to be used during more than one period and not intended for
resale in the ordinary course of business. PPE includes land, land
improvements, buildings and other structures, machinery and equipment,
transportation equipment, furniture, fixtures and books, leasehold
improvements and other PPE including specialized military equipment,
infrastructure assets, and heritage assets.

a. Initial recognition

PPE is recognized at cost. Cost includes the purchase price, including


import duties and non-refundable taxes, after deducting trade discounts
and rebates, and expenditures directly attributable to the acquisition of
the asset. Where PPE is acquired through a non-exchange transaction
or for no or nominal consideration, it is initially measured at its fair
value.

b. Subsequent measurement

After initial recognition, PPE, except land, is stated at cost less

57
accumulated depreciation and impairment losses. Land is measured at
cost less accumulated impairment losses. Significant parts of the PPE
purchased at required intervals are recognized as individual assets with
specific useful lives. Likewise, when a major repair/replacement is
done, its cost is recognized in the carrying amount of the PPE as a
replacement if the recognition criteria are satisfied. All other repair and
maintenance costs are recognized as expense in the surplus or deficit in
the period in which they are incurred.

c. Depreciation

PPE is depreciated over its useful life using the straight-line method
after assigning a residual value of at least five percent. The specific
useful life of a PPE is determined by an NGA based on the ranges
prescribed by the COA. Significant parts of the PPE purchased at
required intervals are depreciated over their specific useful lives. For
simplicity and to avoid proportionate computation, the depreciation is
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 starts in the succeeding month.

d. Impairment

PPE is assessed at each reporting date to determine the existence of


impairment. Impairment loss on a PPE is recognized if the carrying
amount is greater than its estimated recoverable amount or recoverable
service amount. After recognition of an impairment loss, the
depreciation charge of the PPE is adjusted in future periods to allocate
the assets revised carrying amount over its remaining useful life.

e. Derecognition

PPE and/or any significant part of a PPE is 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 is included in surplus or deficit.

3.12. Construction in progress

Construction in Progress (CIP) is stated at cost. While the construction is


in progress, the project costs are accrued based on the contractor’s
accomplishment reports and billings. These represent costs incurred for
technical services and capital works program contracted by the NGAs to
facilitate the implementation of projects. While the construction of the
project is in progress, no provision for depreciation is recognized.

CIP is transferred to the appropriate asset account when the construction or


installation and related activities necessary to prepare the asset for its
intended use have been completed, and the asset is ready for service.

58
3.13. Leases

a. Operating lease – lessee’s books

Lease payments under operating lease are recognized as expense on a


straight-line basis over the lease term unless another systematic basis is
representative of the time pattern of the lessee’s benefit.

b. Operating lease – lessor’s books

Lease revenue from operating lease is recognized on a straight-line


basis over the lease term unless another systematic basis is
representative of the time pattern in which benefits derived from the
lease assets is diminished. Initial direct costs, such as finder’s fees and
legal expenses, incurred in negotiating and arranging the operating
lease agreement are added to the carrying amount of the leased asset
and recognized as expense over the lease term on the same basis as the
lease revenue. Contingent rents are recognized as revenue in the period
in which they are earned.

Leased assets are depreciated consistent with the lessor’s normal


depreciation policy for similar assets.

c. Finance lease – lessee’s books

Assets held under a finance lease are capitalized at the commencement


of the lease at the fair value of the leased property or, if lower, at the
present value of the minimum lease payment. The associated liability is
recognized at the inception of the lease which is measured at the present
value of the future minimum lease payments at initial recognition.

Lease payments are apportioned between reduction of the lease liability


and finance charges. A constant rate of interest on the remaining
balance of the liability shall be applied. Finance charges are recognized
as finance costs in surplus or deficit.

Assets under a finance lease are depreciated over their useful lives,
however, if there is no reasonable certainty that the lessee obtains
ownership of the asset at the end of the lease term, the asset is
depreciated over the shorter of the estimated useful life of the asset and
the lease term.

d. Finance lease – lessor’s books

The lessor recognizes Finance Lease Receivable at an amount equal to


the net investment in the lease and finance revenue based on a pattern
reflecting a constant periodic rate of return on the net investment in the
lease. Initial direct costs such as commissions, legal fees, and internal
costs are included in the initial measurement of the Finance Lease
Receivable, and reduce the amount of revenue recognized over the lease

59
term.

3.14. Intangible assets

An intangible asset is an identifiable non-monetary asset without physical


substance.

a. Initial recognition

Intangible asset is recognized when it is identifiable, when it is probable


that the expected future economic benefits or service potential that are
attributable to the asset will flow to the agency, and when the cost or
fair value of the asset can be measured reliably.

Intangible asset acquired through purchase or by separate acquisition is


initially recognized at cost which includes non-refundable taxes and
other directly attributable costs. The cost of intangible asset acquired in
a non-exchange transaction is its fair value at the time of acquisition.
The cost of internally generated intangible asset, excluding capitalized
development costs, is recognized in surplus or deficit. No intangible
asset arising from research (or from the research phase of an internal
project) is recognized. Expenses on research (or on the research phase
of an internal project) is recognized as expense when incurred.
Expenditure on intangible asset is recognized as expense when it is
incurred unless it forms part of the cost that meets the recognition
criteria of an intangible asset.

b. Subsequent measurement

After initial recognition, intangible assets are carried at cost less any
accumulated amortization and accumulated impairment losses. The
useful life of the intangible asset is assessed as either finite or indefinite.
Those with finite lives are amortized over their useful lives using the
straight-line method. The amortization expense is recognized in surplus
or deficit.

Intangible assets with indefinite useful lives are not amortized but are
required to be tested for impairment at least annually or whenever there
is an indication of impairment. An intangible asset is impaired when its
carrying amount is greater than the estimated recoverable amount or
recoverable service amount. Amortization begins when the intangible
asset is available for use and ceases at the earlier of the date that the
asset is classified as held for sale and the date that the asset is
derecognized.

Gains or losses arising from derecognition of an intangible asset are


measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in surplus or deficit.

60
3.15. Financial liabilities

a. Initial recognition

NGAs recognize financial liabilities in their respective books of


accounts when they become party to the contractual provisions of the
instrument. A financial liability is measured initially at its fair value
plus, in the case of financial liability not measured at fair value through
surplus or deficit, transaction costs that are directly attributable to the
acquisition or issue of the financial liability.

Financial liabilities within the scope of PPSAS 29 are classified as:


(1) financial liabilities at fair value through surplus or deficit; and
(2) loans and borrowings, as appropriate. NGAs’ financial liabilities
include trade and other payables, loans and borrowings.

b. Subsequent measurement

After initial recognition, NGAs measure financial liabilities at


amortized cost using the effective interest method except for:

i. financial liabilities at fair value through surplus or deficit. Such


liabilities, including derivatives that are liabilities, are measured at
fair value except for a derivative liability that is linked to and must
be settled by delivery of an unquoted equity instrument whose fair
value cannot be reliably measured, which shall be measured at cost;
ii. financial liabilities that arise when a transfer of a financial asset
does not qualify for derecognition or when the continuing
involvement approach applies; and
iii. financial guarantee contracts which are measured at the higher of
the amount determined as provision, and the amount initially
recognized net of cumulative amortization recognized.

Amortized cost is calculated by taking into account any discount or


premium on acquisition and fees or costs that are integral part of the
effective interest rate.

c. Financial liabilities at fair value through surplus or deficit

Financial liabilities at fair value through surplus or deficit include


financial liabilities held for trading and financial liabilities designated
upon initial recognition at fair value through surplus or deficit.
Financial liabilities are classified as held for trading if these are
acquired for the purpose of selling or repurchasing in the near term.

d. Loans and borrowings

After initial recognition, interest bearing loans and borrowings are


subsequently measured at amortized cost using the effective interest
method. Gains or losses arising from the derecognition of the liabilities

61
as well as through the effective interest method amortization process
are recognized in surplus or deficit. Amortized cost is calculated by
taking into account any discount or premium on acquisition and fees or
costs that are integral part of the effective interest rate. Bond discounts
and premiums on the issuance of foreign and domestic treasury bonds
and bond exchanges are amortized over the remaining life of the bonds.

e. Derecognition

A financial liability is derecognized when the obligation specified in


the contract expires or is discharged, cancelled or waived.

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
is treated as a derecognition of the original liability and recognition of
a new liability. The difference between the carrying amount of a
financial liability (or a part of a financial liability) extinguished or
transferred to another party and the consideration paid, including any
non-cash assets transferred or liability assumed, is recognized in
surplus or deficit.

f. Contingent liabilities

Contingent liabilities are not recognized in the books of accounts but


are disclosed in the Notes to FSs.

3.16. Provisions

Provisions are liabilities of uncertain timing and amount. Provisions are


recognized when NGAs have present obligations (legal or constructive) at
the reporting date as a result of a past event, it is probable that an outflow
of resources embodying economic benefits or service potential will be
required to settle the obligation, and a reliable estimate can be made of the
amount of obligation. Provision is recognized at the best estimate of the
expenditure to settle the obligation. Best estimate is an amount that an NGA
would rationally pay to settle the obligation at the reporting date or to
transfer it to a third party. Best estimate is usually based on costs incurred
by an NGA and not on the transfer price to a third party which could include
a margin. Further, the risks and uncertainties that inevitably surround many
events and circumstances are taken into account in reaching the best
estimates of a provision. The expense relating to any provision is
recognized in surplus/deficit.

3.17. Revenue from non-exchange transactions

a. Recognition of assets from non-exchange transactions

An inflow of resources from a non-exchange transaction, other than


services in-kind, that meets the definition of an asset is recognized as

62
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 is initially measured at fair value at the date
of acquisition.

b. Recognition and measurement of revenue from non-


exchange transactions

An inflow of resources from a non-exchange transaction recognized as


an asset is recognized as revenue, except to the extent that a liability
was also recognized in respect of the same inflow.

As the recipient NGA 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 is reduced and an amount of revenue equal to that reduction
is recognized.

Revenue from a non-exchange transaction is measured at the amount of


the increase in net assets recognized by the NGA, unless a
corresponding liability is recognized.

c. Measurement of liabilities on initial recognition from


non-exchange transactions

The amount recognized as a liability in a non-exchange transaction is


the best estimate of the amount required to settle the present obligation
at the reporting date.

d. Taxes

Taxes and the related fines and penalties are recognized when collected
or when these are measurable and legally collectible. The related
refunds that are measurable and legally due to the taxpayers are
deducted from the recognized tax revenue if refunds are done during
the year the taxes are collected.

e. Fees and fines not related to taxes

Revenue from fees and fines, except those related to taxes, is


recognized when earned and when the asset recognition criteria are met.
Deferred income is 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 revenue is 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.

63
f. Gifts and donations

Assets and revenue from gifts and donations are recognized when it is
probable that the future economic benefits or service potential will flow
to the agency and when the fair value of the assets can be measured
reliably.

Goods in-kind are recognized as assets when the goods are received, or
when there is a binding arrangement to receive the goods. If goods in-
kind are received without condition, revenue is recognized
immediately. If conditions are attached, a liability is recognized, which
is reduced as revenue is recognized when the conditions are satisfied.

Gifts and donations including goods in-kind are initially measured at


fair value as at the date of acquisition, which is ascertained by reference
to an active market, or by appraisal. An appraisal of the value of an
asset is normally undertaken by a member of the valuation profession
who holds a recognized and relevant professional qualification. For
many assets, the fair value is ascertained by reference to quoted prices
in an active and liquid market.

g. Transfers

Assets in respect of transfers are recognized when the transferred


resources meet the definition of an asset and the criteria for recognition
as an asset is satisfied, except those arising from services in-kind.

h. Services in-kind

Services in-kind are not recognized as asset nor revenue considering the
complexity of the determination and recognition of asset and revenue
and the eventual recognition of expenses.

i. Transfers from other government agencies

Revenue from non-exchange transactions with other government


agencies and the related assets are measured at fair value and
recognized on obtaining control of the asset (cash, goods, services and
property) if the transfer is free from conditions, it is probable that future
economic benefits or service potential related to the asset will flow to
the agency and can be measured reliably.

3.18. Revenue from exchange transactions

a. Measurement

Revenue from exchange transactions are measured at the fair value of


the consideration received or receivable. Revenue are recognized when
it is probable that the future economic benefits or service potential will
flow to the agency and when these benefits can be measured reliably.

64
b. Rendition of services

Revenue from the rendition of services is recognized by reference to


the stage of completion when the outcome of the transaction can be
estimated reliably. The stage of completion is 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 is


recognized only to the extent that the expenses incurred are recoverable.

c. Sale of goods

Revenue from the sale of goods is recognized when the significant risks
and rewards of ownership are transferred to the buyer, usually upon
delivery of the goods and when the amount of revenue can be measured
reliably and when it is probable that future economic benefits or service
potential associated with the transaction will flow to the agency.

d. Interest income

Interest income is 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 applies this yield to the outstanding principal to determine
interest income for each period.

e. Dividends

Dividends or similar distributions are recognized when the agency’s


right to receive payments is established.

3.19. Foreign currency transactions

Transactions in foreign currencies are recorded in Philippine peso based on


Bangko Sentral ng Pilipinas (BSP) exchange rate prevailing at the date of
the transaction. Foreign currency denominated monetary assets and
liabilities at the reporting date are restated based on BSP Weighted Average
Rate published on the first working day of the following month in the BSP
Reference Exchange Rate Bulletin. Any difference in the revaluation of
assets and liabilities is recognized as a gain or loss on foreign exchange.

3.20. Budget information

The annual budget is prepared on a cash basis and is published in the


government website. In order to enable comparability between budget and
actual results, it is imperative that both budgeting and reporting systems are
prepared under similar assumptions making them easier to understand and
assess. The symmetry is fundamental as it determines accountability for
implementing the budget as authorized.

65
A separate SCBAA was prepared since the budget and the FSs were not
prepared on comparable basis.

The SCBAA is presented showing the original and final budget, and the
actual results of operations. Explanatory comments on the overall
growth/decline of the budget including overspending/underspending are
provided in Note 53 of this Report.

4. CASH AND CASH EQUIVALENTS

The total Cash and Cash Equivalents as at December 31, 2017 is accounted under
the following sub-major groups of accounts:

2017 2016 (Restated)


Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to total to total
pesos) pesos)
Cash on Hand 2,339,608 0.33 7,083,270 1.59
Cash in Bank-Local Currency 664,231,746 93.00 399,203,164 89.82
Cash in Bank-Foreign Currency 42,091,367 5.89 32,277,110 7.26
Cash Equivalents 5,595,167 0.78 5,901,457 1.33
Sub-Total 714,257,888 100.00 444,465,001 100.00
Less: Treasury/Agency Cash
Accounts 476,926,193 406,738,247
Total 237,331,695 37,726,754

4.1. Cash on Hand

Cash on Hand consists of Cash-Collecting Officers and Petty Cash


amounting to P2.04 billion and P296.92 million, respectively.

a. Cash-Collecting Officers

This refers to the sum of money received by authorized collecting


officers which remained unremitted/undeposited to the National
Treasury and/or to authorized government depository banks (AGDBs)
as at the reporting date. The departments/offices that reported balances
of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 397,647 19.47
Justice 370,205 18.12
The Judiciary 284,390 13.92
State Universities and Colleges 179,863 8.81
Health 171,847 8.41
Budget and Management 130,723 6.40
Public Works and Highways 115,816 5.67
Transportation 96,612 4.73
Information and Communications Technology 59,457 2.91

66
Amount Percent
Department/Office
(in thousand pesos) to Total
Labor and Employment 40,720 1.99
Sub-total 1,847,280 90.43
Other Departments/Offices 195,405 9.57
Total 2,042,685 100

The unremitted/undeposited collections accounted by Department of


Finance (DOF) pertained primarily to the Bureau of Customs (BOC),
Bureau of Internal Revenue (BIR) and Bureau of the Treasury (BTr) of
P250.12 million, P48.62 million and P47.50 million, respectively. The
amount pertaining to the BTr applies to the NG books which includes
the following:

Amount
Particulars
(in thousand pesos)
Escheated unclaimed balance for the odd year 2007 per Civil
Case No. MC 12-6521 35
Check representing settlement of penalty fee charged to
Rural Bank of Talisayan, Incorporated 4
Check representing settlement of escheat fees for the odd
year 2003 per Civil Case No. 15-133175 31,864
National Irrigation Administration’s payment for 5% final
tax and 2% expanded withholding tax on water delivery
fee for the period 9/25/17 to 10/25/17 15,594
Penalty charged to BPI for failure to submit sworn statement
and list of unclaimed balances within the period
prescribed by the law 5
Total 47,501

The balance of P370.21 million reported by the Department of Justice


(DOJ) is composed mainly of unremitted service fees imposed by Land
Registration Authority (LRA) through the 166 Registries of Deeds
nationwide. This also includes the balance of the Bureau of
Immigration (BI) of P55.46 million which pertains to the following:

Amount
Particulars
(in thousand pesos)
Trust Funds 6,562
Miscellaneous income 37,406
Alien Certificate of Registration Identity Card 10,793
Other legal collections 695
Total 55,457

The amount reported by the Judiciary refers to the


unremitted/undeposited receipts held by the Supreme Court of the
Philippines (SCP), Sandiganbayan and the Court of Appeals of P284.33
million, P40.31 thousand and P21.65 thousand, respectively.

Schedule 5, Volume II of this Report shows the list of agencies with


balances of Cash-Collecting Officers.

67
b. Petty Cash

This account refers to unexpended portion of the PCF still in the


possession of Petty Cash Custodians as at the reporting date.

The departments/offices which reported balances of Petty Cash are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Interior and Local Government 65,609 22.10
Health 58,895 19.84
State Universities and Colleges 33,390 11.25
Transportation 27,329 9.20
Other Executive Offices 18,164 6.12
Social Welfare and Development 16,446 5.54
National Defense 16,282 5.48
Education 9,037 3.04
Agriculture 5,764 1.94
Justice 5,748 1.94
Sub-total 256,663 86.44
Other Departments/Offices 40,260 13.56
Total 296,923 100.00

Schedule 6, Volume II of this Report shows the list of agencies with


balances of Petty Cash.

4.2. Cash in Bank-Local Currency

Cash in Bank-Local Currency is composed of the following accounts:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Bangko Sentral ng Pilipinas 310,353,974 46.72 124,835,543 31.27
Current Account 187,817,669 28.28 156,954,918 39.32
Savings Account 59,935,197 9.02 50,574,706 12.67
Time Deposits 106,124,907 15.98 66,837,997 16.74
Total 664,231,747 100.00 399,203,164 100.00

a. Cash in Bank-Local Currency, Bangko Sentral ng Pilipinas

This account is used to recognize the deposits with the BSP. The
departments/offices which reported balances of this account are as
follows:

68
Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 310,353,178 100.00
Other Executive Offices 794 0.00
Agriculture 2 0.00
Total 310,353,974 100.00

The BTr recognized the total for the DOF which represents deposits for
its collections from NGAs, proceeds from the issuances/flotations and
maturities of treasury bills (T-Bills) and treasury bonds (T-Bonds), and
fund transfers from other cash accounts of the BTr.

b. Cash in Bank-Local Currency, Current Account

This account is used to recognize the deposits made by the agencies to


AGDBs for income authorized to be used under specific laws and trust
receipts authorized under specific contracts and agreements.

The departments/offices maintaining peso deposits in current account


with AGDBs are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 29,369,362 15.64
Finance 27,618,026 14.70
Social Welfare and Development 21,542,195 11.47
National Defense 15,065,697 8.02
Education 14,500,986 7.72
Office of the President 14,107,710 7.51
Health 12,849,803 6.84
Other Executive Offices 5,873,094 3.13
Budget and Management 5,496,242 2.93
Public Works and Highways 4,356,003 2.32
Sub-total 150,779,118 80.28
Other Departments/Offices 37,038,551 19.72
Total 187,817,669 100.00

The total peso deposits of SUCs were reported by 113 tertiary schools
with the University of the Philippines System (UPS) having the highest
balance of P4.36 billion, followed by Cavite State University with
P1.06 billion.

The list of agencies with balances of Cash in Bank-Local Currency,


Current Account as at December 31, 2017 is shown in Schedule 7,
Volume II of this Report.

c. Cash in Bank-Local Currency, Savings Account

Cash in Bank-Local Currency, Savings Account is used in the BTr-NG


books to recognize deposits to savings account with AGDBs for fees
and charges collected by national collecting officers, investments of

69
funds, maturity of investments, and proceeds of over-the-counter
placement of T-Bills and T-Bonds. This account may also be
maintained by the BIR, BOC and other authorized agencies for amounts
held in escrow.

The peso savings accounts in local currency maintained with AGDBs


was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 35,573,397 59.35
The Judiciary 16,768,139 27.98
State Universities and Colleges 1,672,144 2.79
Trade and Industry 1,511,190 2.52
Health 1,095,937 1.83
Budget and Management 1,037,137 1.73
Labor and Employment 789,978 1.32
National Defense 607,603 1.01
Public Works and Highways 190,238 0.32
Foreign Affairs 168,404 0.28
Sub-total 59,414,167 99.13
Other Departments/Offices 521,030 0.87
Total 59,935,197 100.00

Schedule 7, Volume II of this Report shows the list of agencies with


balances of Cash in Bank-Local Currency, Savings Account as at
December 31, 2017.

d. Cash in Bank-Local Currency, Time Deposits

Time deposits in local currency maintained with AGDBs was reported


by ten departments/offices, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 70,023,348 65.98
State Universities and Colleges 19,351,927 18.24
Budget and Management 14,500,000 13.66
Transportation 1,233,333 1.16
The Judiciary 851,772 0.80
Education 60,651 0.06
National Defense 59,882 0.06
Other Executive Offices 41,309 0.04
Civil Service Commission 2,658 0.00
Science and Technology 26 0.00
Total 106,124,907 100.00

Schedule 7, Volume II of this Report shows the list of agencies with


balances of Cash in Bank-Local Currency, Time Deposits as at
December 31, 2017.

70
4.3. Cash in Bank-Foreign Currency

Cash in Bank-Foreign Currency is composed of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Bangko Sentral ng Pilipinas 15,150,896 36.00 11,031,288 34.18
Current Account 6,517,987 15.49 5,222,083 16.18
Savings Account 9,627,270 22.87 10,575,219 32.76
Time Deposits 10,795,215 25.65 5,448,520 16.88
Total 42,091,367 100.00 32,277,110 100.00

a. Cash in Bank-Foreign Currency, Bangko Sentral ng Pilipinas

This account is used to recognize in the BTr books the deposits with the
BSP of collections of NGAs, proceeds from borrowings and grants, and
proceeds from maturities on investments in foreign currencies.

b. Cash in Bank-Foreign Currency, Current Account

The total foreign currency deposits in current account maintained with


AGDBs was reported by six departments/offices, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Foreign Affairs 6,105,316 93.67
Labor and Employment 282,591 4.34
Health 61,715 0.95
Finance 34,566 0.53
State Universities and Colleges 21,970 0.34
Autonomous Region in Muslim Mindanao 11,830 0.18
Total 6,517,987 100.00

The entire amount of P6.11 billion of the Department of Foreign Affairs


(DFA) pertains to Cash in Bank of foreign service posts for working
funds, including the balance of International Commitment Fund.

c. Cash in Bank-Foreign Currency, Savings Account

The departments/offices with foreign currency deposits in savings


accounts with AGDBs are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 3,799,306 39.46
Social Welfare and Development 1,542,343 16.02
Energy 946,910 9.84
Agriculture 704,886 7.32
Transportation 683,139 7.10

71
Amount Percent
Department/Office
(in thousand pesos) to Total
Labor and Employment 486,608 5.05
Foreign Affairs 415,146 4.31
Justice 374,779 3.89
State Universities and Colleges 218,652 2.27
Environment and Natural Resources 140,122 1.46
Sub-total 9,311,891 96.72
Other Departments/Offices 315,379 3.28
Total 9,627,270 100.00

The amount reported by the DOF includes the deposits held by the BTr,
DOF-Office of the Secretary (OSEC) and BIR of P3.78 billion, P15.72
million and P43.31 thousand, respectively.

The deposits maintained by Department of Social Welfare and


Development (DSWD)-OSEC includes receipt of grants and donations,
and loan proceeds from the following:

i. National Community Driven Development Project (NCDDP)-


World Bank and Asian Development Bank (ADB)
ii. Social Protection Support Project
iii. Social Welfare and Development Reform Project
iv. DSWD Foreign Donations
v. JSDF: Community Enterprise Development as Pathway Out of
Poverty
vi. Kapitbisig Laban sa Kahirapan-Comprehensive and Integrated
Delivery of Social Services (KALAHI-CIDSS) NCDDP ADB AF
Typhoon Yolanda Multi-Donor Trust Fund
vii. Association of Southeast Asian Nations (ASEAN)-Republic of
Korea
viii. Japan ASEAN Integration Fund/Japan Fund

The balances reported by the Department of Energy were maintained


with the following local banks:

Amount
Banks
(in thousand pesos)
Philippine National Bank 782,083
Banco de Oro 150,807
Land Bank of the Philippines 14,020
Total 946,910

The deposits with the Philippine National Bank (PNB) represent the
partial credit guarantee component of the Electric Cooperative System
Loss Reduction Project which is currently in escrow. The said project
aims to assist the government in promoting energy efficiency
improvements through providing reliable and least cost power supply,
reducing carbon dioxide emissions and other pollutants, and providing
investments for electric cooperatives.

72
The amount maintained with Banco de Oro is intended for the
“Capacity Building to Remove Barriers to Renewable Energy
Development” Project funded under Global Environmental Facility
Fund. This project was initially implemented in 2003, and concluded in
2012. The said trust funds, however, has not yet been turned over to the
BTr as at year-end.

Schedule 8, Volume II of this Report shows the list of agencies with


balances of Cash in Bank-Foreign Currency, Savings Account as at
December 31, 2017.

d. Cash in Bank-Foreign Currency, Time Deposits

The time deposits in foreign currency maintained with local banks was
reported by only three departments/offices, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 10,704,392 99.16
State Universities and Colleges 49,387 0.46
Trade and Industry 41,436 0.38
Total 10,795,215 100.00

The cumulative amount for the DOF corresponds to the balance


accounted in the BTr-NG books. The total for the SUCs pertains to
balances of UPS and Mariano Marcos State University of P46.69
million and P2.69 million, respectively. The balance for the Department
of Trade and Industry (DTI) refers to US dollar denominated high yield
time deposit recognized by the Intellectual Property Office (IPO).

4.4. Other Notes on Local and Foreign Currency Deposits

The total of cash in bank accounts of the BTr of P468.46 billion comprises
deposits in local currency of P438.82 billion and in foreign currencies
equivalent to P29.64 billion. These deposits consist of the following:

Amount
Particulars
(in thousand pesos)
Free balances 393,932,847
Modified Disbursement System (MDS) seed money 12,050,860
Restricted accounts 57,180,513
Project loan/grant proceeds 5,293,360
Total 468,457,579

Free balances pertain to the amounts available for use in the operations of
the NG. Details are as follows:

73
Amount Percent
Particulars
(in thousand pesos) to Total
Treasurer of Philippines (TOP)-Treasury Single
Account (TSA) 252,205,194 64.02
BSP Foreign Currency Deposit (FCD), Dollar
Account 10,611,299 2.69
BSP-Foreign Currency Time Deposit (FCTD),
Dollar Account 2,100,126 0.53
LBP-Local Currency Time Deposit 55,000,000 13.96
LBP-FCD, Dollar Account 2,245,938 0.57
Land Bank of the Philippines (LBP)-FCTD, Dollar
Account 10,271,751 2.61
DBP Local Currency Time Deposit 15,000,052 3.81
United Coconut Planters Bank-Savings Account 30,000,586 7.62
Authorized Agent Banks (AAB)-BIR 8,863,828 2.25
AAB-BOC 2,866,197 0.73
Various accounts 4,767,877 1.21
Total 393,932,847 100.00

Of the total free cash balances, P599.23 million is considered dormant.

The MDS Seed Money refers to the portion of cash reserved to pay
expenditures charged against MDS accounts. This is being replenished
daily by the BTr upon request by Authorized Servicing Banks (ASBs). The
MDS Seed Money includes the following accounts:

Amount
Bank Account
(in thousand pesos)
Land Bank of the Philippines-MDS 11,379,359
Development Bank of the Philippines-MDS 579,819
Philippine Veterans Bank-MDS 91,682
Total 12,050,860

Restricted accounts represent special/sinking funds, managed funds and


escrow accounts. These consist the following accounts:

Amount
Bank Account
(in thousand pesos)
TSA (National Government Bond Sinking Fund) 1,471,536
TSA (NFA Bond Sinking Fund) 4,381,622
TSA (Securities Stabilization Fund) 1,556,257
TSA (Forfeited Swiss Deposit) 2,806,297
TSA (PCGG Coconut Industry Investment Fund) 13,390,437
TSA (NCCA) 1,228,803
BSP-D/D-S/A No. 2 – under MOA-MBR 560 28,265,953
LBP SA PD Agro Industry Modernization Credit and
Financing Program (AMCFP) 1,106,741
2nd Tropical Forest Conservation Account Fund 1,132,044
Various accounts 1,840,822
Total 57,180,513

74
Project Loan Grant Proceeds refer to the amounts earmarked for utilization
by various implementing agencies. These include the following:

Amount
Bank Account
(in thousand pesos)
Bangko Sentral ng Pilipinas
a) Peso Deposits (various) 3,599,164
b) Foreign Currency Deposits (various) 1,694,149
Land Bank of the Philippines
a) Foreign Currency Deposits (various) 46
Total 5,293,359

4.5. Treasury/Agency Cash Accounts

This sub-major group of cash accounts consists of the following:

2016
2017
Account (Restated)
(in thousand pesos)
Cash-Treasury/Agency Deposit, Special Account
(Reported by NGAs except the BTr) 48,723,268 25,891,051
Less: BTr-NG Credit Balance 432,793,112 359,025,952
Sub-Total (384,069,844) (333,134,901)
Cash-Treasury/Agency Deposit, Trust
(Reported by NGAs except the BTr) 25,600,865 24,580,805
Less: BTr-NG Credit Balance 118,457,215 98,184,151
Sub-Total (92,856,350) (73,603,347)
Total (476,926,193) (406,738,247)

For FY 2017, the BTr-NG Books reported credit balances of Cash-


Treasury/Agency Deposit, Special Account and Cash-Treasury/Agency
Deposit, Trust in the amount of P432.79 billion and P118.46 billion,
respectively. Other NGAs reported debit balances of P48.72 billion, and
P25.60 billion for the same accounts, respectively. The Cash-
Treasury/Agency Deposit cash accounts are reciprocal accounts in the
books of the BTr-NG and other NGAs and should have been reconciled and
eliminated at the end of the year. However, the non-reconciliation of these
accounts by the BTr-NG and other NGAs resulted in the net credit balance
of Cash-Treasury/Agency Deposit, Special Account of P384.07 billion and
Cash-Treasury/Agency Deposit, Trust of P92.86 billion, thereby
understating the total cash and cash equivalents of the NG by P476.93
billion. The BTr, therefore, requires all agencies concerned to provide
copies of Statement of Account and Utilization Reports to identify
discrepancies and effect adjustments, if appropriate.

The departments/offices with balances of Cash-Treasury/Agency accounts


are as follows:

75
Treasury/ Treasury/
Agency Deposit, Agency Total Percent
Department/Office Special Account Deposit, Trust to Total
(in thousand pesos)
Transportation 16,570,365 507,144 17,077,509 22.98
Justice 6,007,892 2,463,083 8,470,975 11.40
Energy 7,575,327 - 7,575,327 10.19
Public Works and Highways 351,705 6,297,522 6,649,227 8.95
Interior and Local
Government 4,418,127 1,273,833 5,691,960 7.66
National Defense 2,615,451 1,140,868 3,756,319 5.05
Other Executive Offices 3,325,213 305,550 3,630,763 4.89
Health 1,536,855 1,280,771 2,817,626 3.79
Environment and Natural
Resources 913,981 1,140,767 2,054,748 2.76
Office of the President - 2,010,706 2,010,706 2.71
Sub-Total 43,314,915 16,420,243 59,735,158 80.37
Other Departments/ Offices 5,408,353 9,180,622 14,588,975 19.63
Total 48,723,268 25,600,865 74,324,133 100.00
BTr-NG (credit balance) 432,793,112 118,457,215 551,250,327
Total (384,069,844) (92,856,350) (476,926,193)

Schedule 9, Volume II of this Report shows the list of agencies with


balances of Treasury/Agency Deposits Accounts.

a. Cash-Treasury/Agency Deposit, Special Account

This account refers to the collections of various NGAs pertaining to


SAGF that were remitted to the BTr. This includes, among others, the
remittances of the Department of Transportation (DOTr) for the
collections under Motor Vehicle Users’ Charge Fund and Seat Belt Use
Fund amounting to P15.89 billion and P77.20 million, respectively.
This also comprises the receipts of the DOJ of P4.24 billion
representing the 20 percent share of the LRA from land registration fees
under Presidential Decree (P.D.) No. 1529, and P7.58 billion for the 20
percent share of the Department of Energy (DOE) from the collections
of various fees arising from service contracts per P.D. No. 910.

Also forming part of Cash-Treasury/Agency Deposit, Special Account


are remittances of the Department of the Interior and Local Government
(DILG) comprising the collections of the Bureau of Fire Protection
(BFP) from fees and fines specified under Republic Act (R.A.) No.
9514 amounting to P4.42 billion.

The complete list of SAGF maintained by NGAs and their individual


UACS codes can be accessed through the UACS manual prescribed
under COA-DBM-DOF Joint Circular No. 2013-1 dated August 6,
2013, and through the UACS website (http://www.uacs.gov.ph).

b. Cash-Treasury/Agency Deposit, Trust

This account is used to recognize the remittances of collections of

76
NGAs for trust receipts and trust funds. This includes, among others,
inter-agency fund transfers, collections of security deposits, and
receipts from grants/donations with term of one year or less.

As at December 31, the balance of this account was composed mainly


of the remittances from the Department of Public Works and Highways
(DPWH)-OSEC aggregating to P6.30 billion. Of the P2.46 billion
balance of the DOJ, remittances of Presidential Commission on Good
Governance (PCGG) amounted to P1.45 billion or 58.72 percent which
includes proceeds from the sale of Wack Wack property of P111
million awaiting for resolution of legal issues before it can be accrued
to the Comprehensive Agrarian Reform Program (CARP) Fund.

4.6. Cash Equivalents

a. Treasury Bills

Cash Equivalents refers to T-Bills issued by the NG through the BTr


with a maturity period not exceeding 90 days. The total amount of P5.60
billion as at year-end was accounted specifically by the DOE, Other
Executive Offices (OEO) and Department of National Defense (DND).

The T-Bills of P3.40 billion pertaining to DOE refer to placements


made under Energy Regulation (ER) No. 1-94 with the LBP with
maturity of three months or less from the date of acquisition. This
includes the following short term, highly liquid investments:

Maturity Terms Amount


Date Placed Rate
Date (in days) (in thousand pesos)
12/13/17 02/14/18 63 2.575% 280,709
12/13/17 02/14/18 63 2.52% 28,947
12/13/17 02/14/18 63 2.575% 570,994
11/08/17 01/31/18 84 2.11% 1,331,901
10/25/17 01/03/18 70 2.0275% 1,190,201
Total 3,402,752

ER No. 1-94 represents the one-centavo kilowatt hour on electricity


sales as benefits to the Local Government Units (LGUs) for
electrification, development and livelihood, restoration, watershed
management, health and/or environment enhancement.

The T-Bills of P1.89 billion of the OEO represents the short-term


investments of the National Commission of Culture and the Arts
(NCCA) under the National Endowment Fund for Culture and the Arts.

The Cash Equivalents of P304.72 million reported by the DND consist


of T-Bills placed by the General Headquarters, Armed Forces of the
Philippines (GHQ-AFP) with the DBP and LBP. These investments
yield interests of 2.05 to 2.8725 percent, and are expected to mature in
2018.

77
5. INVESTMENTS

The current portion of NG investments comprises the following sub-major groups


of accounts:

2017 2016 (Restated)


Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Financial Assets at Fair Value Through
Surplus or Deficit 920 0.00 920 0.00
Financial Assets-Held to Maturity 13,416,198 14.20 11,279,023 14.89
Sinking Fund 81,048,010 85.80 64,485,999 85.11
Total 94,465,128 100.00 75,765,942 100.00

5.1. Financial Assets at Fair Value Through Surplus or Deficit

The Financial Assets at Fair Value through Surplus or Deficit consist of


investments retained by the Philippine Normal University in preferred
stocks, and deposits for new electric meter to Manila Electric Company
(MERALCO).

5.2. Financial Assets-Held to Maturity

This was composed of the following accounts:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Investments in Treasury Bills-
Local 13,391,693 99.82 11,254,606 99.78
Investments in Treasury
Bonds-Local 24,505 0.18 24,417 0.22
Total 13,416,198 100.00 11,279,023 100.00

a. Investments in Treasury Bills-Local

The total Investments in Treasury Bills-Local issued by the NG through


the BTr was reported by five departments/offices, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 12,513,543 93.44
State Universities and Colleges 415,500 3.10
Other Executive Offices 300,000 2.24
Labor and Employment 129,194 0.96
Education 33,457 0.25
Total 13,391,693 100.00

78
b. Investments in Treasury Bonds-Local

Investments in Treasury Bonds-Local amounting to P24.51 million


pertained to retail T-Bonds acquired by the University of Northern
Philippines through LBP. The increase of P88.09 thousand pertained to
the amortization of the discount availed during its acquisition.

5.3. Sinking Fund

The current portion of the Sinking Fund refers to the amount set aside to
pay off at maturity long-term debts such as bonds with maturity period of
three years or more.

For FY 2017, the balance of P81.05 billion reported by the BTr consisted
of investments in time deposits and T-Bills, and Bond Sinking Fund set
aside to cover redemption of issued and outstanding bonds of LBP-
Agrarian Reform Fund (ARF). Details are as follows:

Amount
Particulars
(in thousand pesos)
BSF-TD (DBP) 20,000,000
BSF-TD (LBP) 20,000,000
BSF-TD (UCPB) 5,000,000
BSF-FCTD-Dollar (DBP) 16,271,079
BSF-FCTD-Dollar (LBP) 15,593,600
BSF-FCTD-Dollar (UCPB) 506,478
BSF-Securities (Treasury Bills) 3,437,273
LBP- ARF BSF 239,530
Total 81,047,960

6. RECEIVABLES

Receivables aggregated to P854.92 billion, net of Allowance for Impairment of


P8.17 billion. These receivables are composed of the following sub-major groups:

2017 2016 (Restated)


Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Loans and Receivable Accounts 115,712,280 13.53 101,887,915 12.93
Lease Receivables 1,322,120 0.15 1,317,322 0.17
Inter-Agency Receivables 661,329,674 77.36 615,954,149 78.18
Intra-Agency Receivables 9,889,302 1.16 6,836,429 0.87
Other Receivables 66,664,162 7.80 61,845,253 7.85
Total 854,917,537 100.00 787,841,069 100.00

Schedule 10, Volume II of this Report shows the list of agencies with existing
balances of the aforementioned receivable accounts.

79
6.1. Loans and Receivable Accounts

This sub-major group of accounts is composed of the following:

Allowance
Gross Carrying
for Percent
Account Amount Amount
Impairment to Total
(in thousand pesos)
Accounts Receivable 30,167,126 3,136,293 27,030,833 23.36
Notes Receivable 147,945 41,298 106,647 0.09
Loans Receivable-
Government-Owned or
Controlled Corporations 19,050,045 1,234,768 17,815,278 15.40
Loans Receivable-Local
Government Units 7,705,700 7,803 7,697,897 6.65
Interests Receivable 53,582,853 19,229 53,563,624 46.29
Loans Receivable-Others 11,897,344 2,399,343 9,498,001 8.21
Total 122,551,013 6,838,733 115,712,280 100.00

a. Accounts Receivable

The departments/offices with balances of Accounts Receivable are as


follows:

Allowance
Gross Carrying
for Percent
Department/Office Amount Amount
Impairment to Total
(in thousand pesos)
Finance 12,968,155 2,167,627 10,800,528 39.96
State Universities and
Colleges 5,610,557 247,757 5,362,799 19.84
Health 4,564,004 205,129 4,358,874 16.13
Information and
Communications
Technology 2,988,921 38,542 2,950,378 10.91
Energy 1,644,659 - 1,644,659 6.08
Environment and Natural
Resources 919,641 210,202 709,438 2.62
Agriculture 504,271 219,577 284,694 1.05
Other Executive Offices 276,193 8,196 267,998 0.99
Presidential
Communications
Operations Office 271,306 3,700 267,606 0.99
Public Works and
Highways 86,314 656 85,658 0.32
Sub-total 29,834,019 3,101,388 26,732,631 98.90
Other Departments/
Offices 333,107 34,905 298,202 1.10
Total 30,167,126 3,136,293 27,030,833 100.00

The Accounts Receivable held by the DOF included claims of BTr


under LBP-ARF for the land acquired by agrarian reform beneficiaries
in accordance with the provisions of R.A. No. 3844, P.D. No. 27, E.O.
No. 228, E.O. No. 229, R.A. No. 6657, and R.A. No. 9700. It also

80
included dues from landowners/farmers/beneficiaries/cooperative
arising from land transfer claim and other loan related transactions, and
portion of the contract price of sold real and other properties acquired
(ROPA) in settlement of ARF funded loans amounting to P171.84
thousand. Breakdown are as follows:

Allowance
Gross Carrying
for
Particulars Amount Amount
Impairment
(in thousand pesos)
Agrarian Reform Receivable 12,952,475 2,158,324 10,794,151
Claims from Landowners, etc. 11,833 9,303 2,530
Contract Receivable – Sold ROPA 172 - 172
Total 12,964,480 2,167,627 10,796,852

b. Notes Receivable

The current portion of Notes Receivable was reported by the following


departments/offices:

Allowance
Gross Carrying
for Percent
Department/Office Amount Amount
Impairment to Total
(in thousand pesos)
Health 102,896 4,573 98,323 92.19
Agriculture 44,891 36,724 8,167 7.66
State Universities and
Colleges 155 - 155 0.14
Education 4 - 4 0.00
Total 147,945 41,298 106,647 100.00

The Notes Receivable reported by the Department of Health (DOH)


pertained to the promissory notes issued by several patients for services
rendered to them by different government hospitals.

The amount attributed to the DA corresponded to the balance of


Philippine Council for Agriculture and Fisheries (PCAF) and the
Philippine Fiber Industry Development Authority (PhilFIDA). The
receivables recorded by PCAF amounting to P37.92 million represents
the balance of Victoria Multi-Purpose Cooperative for sales under
contract of 10,139.93 metric tons of urea fertilizer-commodity grants
provided under the United States Public Law 480 Title I Program which
remained uncollected since 1998. The balance reported by the
PhilFIDA amounting to P6.97 million pertained to the dormant
accounts of Imperial Textile Mills and Atlas Development Corporation
which are subject of request for authority to write off.

c. Loans Receivable-Government-Owned or Controlled


Corporations

The details of this account reported by four departments/offices are


81
shown below.

Allowance
Gross Carrying Percent
for
Department/Office Amount Amount to
Impairment
Total
(in thousand pesos)
Finance 12,410,561 - 12,410,561 69.66
Education 3,159,263 475 3,158,788 17.73
Agriculture 3,348,698 1,234,292 2,114,406 11.87
Agrarian Reform 122,973 - 122,973 0.69
Energy 8,196 - 8,196 0.05
State Universities and
Colleges 355 - 355 0.00
Total 19,050,045 1,234,768 17,815,278 100.00

Loans Receivable accounted by the DOF consisted of due and


demandable loan outlays granted by the BTr to GCs amounting to
P12.41 billion.

The amount reported by DA-OSEC includes funds transferred to


Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) and
Philippine Rice Research Institute amounting to P1 billion and P656.13
million, 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 (ACEF). QUEDANCOR,
however, had been dissolved upon issuance of Memorandum Order No.
13 dated June 28, 2017 by the Office of the President (OP).

d. Loans Receivable-Local Government Units

Among the departments/offices of the NG, only three reported Loans


Receivable-Local Government Units, as follows:

Allowance
Gross Carrying
for Percent
Department/ Office Amount Amount
Impairment to Total
(in thousand pesos)
Finance 7,464,973 - 7,464,973 96.97
Agriculture 240,494 7,803 232,691 3.02
State Universities and
Colleges 233 - 233 0.00
Total 7,705,700 7,803 7,697,897 100.00

The loans recognized by the DOF pertained to loans granted by the


Municipal Development Fund Office (MDFO) to LGUs amounting to
P7.46 billion.

The amount for the DA, as accounted by the OSEC, was composed of
loans granted in the form of 4-wheel tractors, irrigation pumps and
warehouses with a repayment period of 5-10 years. This also includes

82
P31.65 million loans granted under the ACEF.

e. Interests Receivable

Interests Receivable expected to be collected within the next 12 months


from the reporting date is accounted by following departments/offices:

Allowance
Gross Carrying Percent
for
Department/ Office Amount Amount to Total
Impairment
(in thousand pesos)
Finance 52,736,760 861 52,735,898 98.45
Transportation 734,601 - 734,601 1.37
State Universities and
Colleges 42,089 - 42,089 0.08
Education 27,114 - 27,114 0.05
Energy 7,883 - 7,883 0.01
Other Executive Offices 5,320 971 4,349 0.01
Trade and Industry 3,691 - 3,691 0.01
Agrarian Reform 2,667 - 2,667 0.00
Labor and Employment 19,033 16,708 2,325 0.00
Agriculture 1,994 - 1,994 0.00
Sub-total 53,581,151 18,540 53,562,611 100.00
Other Departments/
Offices 1,702 689 1,013 0.00
Total 53,582,853 19,229 53,563,624 100.00

The amount reported by the DOF consisted of interests recognized by


the BTr on NG advances amounting to P52.15 billion, TOP Foreign
Currency Time Deposits in 1993 of P249.49 million, and investments
in T-Bonds of BSF, Securities Stabilization Fund (SSF) and DBP-Agro
Industrial Technology Transfer Program of P42.99 million. This also
included the interest receivable for LBP-ARF amounting to P10.31
million.

The DOTr-OSEC reported Interests Receivable of P719.24 billion


pertaining to the following:

Amount
Debtor Nature
(in thousand pesos)
Metro Rail Transit Interest charges on late payment
Development of monthly Development Rights
Corporation Payment (DRP) amortization to
Metro Star Express/EDSA MRT
III 683,873
Greenfields Interest charges from unpaid
Development DRP amortization
Corporation 424
Philharbor Ferries and Interest on unpaid instalment
Port Services, Inc. sale of MV 2 34,947
Total 719,243

The Agricultural Credit Policy Council, an attached agency of the DA,

83
also reported P1.99 million collectible from Peoples Credit and Finance
Corporation under Cooperative Banks Agri-Lending Program-
Agriculture and Fishery Financing Program.

f. Dividends Receivable

The Dividends Receivable reported by the BTr in FY 2016 pertained to


parcel of land in San Miguel, Bulacan measuring 15,511,416 sq.m.
which was declared by the BSP as property dividends to the NG. During
FY 2017, this account was reclassified as Investment Property in
compliance with the recommendation of the BTr COA auditor through
Audit Observation Memorandum dated February 27, 2017.

g. Loans Receivable-Others

Loans granted to recipients other than GCs and LGUs were reported by
12 departments/offices, as follows:

Allowance
Gross Carrying
for Percent
Department/Office Amount Amount
Impairment to Total
(in thousand pesos)
Agriculture 7,741,297 418,746 7,322,551 77.10
Other Executive Offices 583,363 1,539 581,824 6.13
National Defense 497,412 - 497,412 5.24
Finance 1,612,563 1,340,515 272,048 2.86
Trade and Industry 309,967 111,104 198,863 2.09
State Universities and
Colleges 182,443 5,896 176,547 1.86
Agrarian Reform 155,122 - 155,122 1.63
Labor and Employment 660,213 520,073 140,140 1.48
Science and Technology 88,905 - 88,905 0.94
Social Welfare and
Development 35,387 - 35,387 0.37
Energy 24,628 - 24,628 0.26
Autonomous Region in
Muslim Mindanao 6,044 1,470 4,574 0.05
Total 11,897,344 2,399,343 9,498,001 100.00

Loans recognized by the DA-OSEC are those granted to various


beneficiaries for the implementation of ACEF, Western Visayas “in
life” Program, and CARP, and those loans granted to farmers and
cooperatives in the form of post-harvest equipment, facilities, shallow
tube wells, open surface sources and other farm supplies and
equipment.

6.2. Lease Receivable

The current portion of Lease Receivable consisted of Operating Lease


Receivable and Finance Lease Receivable amounting to P1.20 billion and
P122.48 million, respectively.

84
a. Operating Lease Receivable

Rental income from lease of assets which remained uncollected as at


year-end were accrued by the following departments/offices:

Allowance
Gross Carrying
for Percent
Department/Office Amount Amount
Impairment to Total
(in thousand pesos)
Transportation 944,231 - 944,231 78.71
Agriculture 88,668 - 88,668 7.39
Other Executive Offices 66,287 - 66,287 5.53
Education 40,401 - 40,401 3.37
State Universities and
Colleges 33,270 35 33,235 2.77
Tourism 26,950 1,181 25,769 2.15
Environment and Natural
Resources 745 - 745 0.06
Science and Technology 308 - 308 0.03
Total 1,200,861 1,216 1,199,645 100.00

The Operating Lease Receivable from the DOTr pertained to the


following lease transactions:

Amount
Debtor Nature
(in thousand pesos)
Bayantel Albay Lease for Public Calling Offices
Telecom System (PCOs) Albay 2,926
Bayantel Camarines Lease for PCOs Camarines
Norte Telecom Norte
System 1,463
Greenfields DRP amortization
Development
Corporation 380
Philharbor Ferries and Charterhire lease of MV 1 and 2
Port Services, Inc. 28,636
Metro Rail Transit Account due to Metro Star
Development Express/EDSA MRT III for
Corporation DRP monthly amortization 910,827
Total 944,231

b. Finance Lease Receivable

On January 27, 2004, the Privatization and Management Office (PMO)


entered into a Deed of Conditional Sale with the Provincial Government
of Abra (PGA). All the remaining assets of Cellophil Resources
Corporation, a transferred asset by NG to Asset Privatization Trust
pursuant to Trust Agreement dated February 27, 1987 were
conditionally sold to PGA for P100.20 million. The PGA had already
paid P29 million from 2005 to 2007. The balance of P71.20 million
remained uncollected as at December 31, 2017.

On April 21, 2016, a contract to sell was executed by PMO in favor of

85
Triplex Enterprises, Incorporated for two parcels of land located in
Parañaque with an area of approximately 13,000 sq. m. The land was
formerly owned by Luzon Aggregates, Incorporated, and was
transferred by NG to PMO for disposition. The sale is worth P268
million with a down payment of P32 million. The balance shall be
payable quarterly in five years with interests of 3.5 percent per annum.
Outstanding Balance as at year-end was P173.39 million.

6.3. Inter-Agency Receivables

The details of this sub-major group of accounts are presented below.

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Due from National
Government Agencies 23,119,537 3.50 15,383,812 2.50
Due from Government-
Owned or Controlled
Corporations 570,488,182 86.26 558,701,006 90.70
Due from Local Government
Units 67,721,956 10.24 41,869,332 6.80
Total 661,329,674 100.00 615,954,149 100.00

a. Due from National Government Agencies

This account is used to recognize advances/fund transfers to NGAs for


the procurement of goods and services as authorized by law and for the
implementation of various programs/projects under specific contracts
and agreements, and other receivables from NGAs.

This account had been netted against “Due to National Government


Agencies” account to remove the effect of inter-agency transactions for
the NG as a whole. However, some agencies failed to reconcile such
accounts, thereby resulting in residual balance of P23.12 billion for FY
2017, details are as follows:

2016
2017
Account (Restated)
(in thousand pesos)
Due from National Government Agencies 99,377,462 85,397,101
Less: Due to National Government Agencies 76,257,925 70,013,289
Difference 23,119,537 15,383,812

b. Due from Government-Owned or Controlled Corporations

Due from Government-Owned or Controlled Corporations refers to


advances for the purchase of goods/services as authorized by law, fund
transfers to the GCs for implementation of projects, guarantee fees for
NG-guaranteed loans of GFIs/GCs, NG advances for debt service

86
payments on NG-relent or guaranteed loans of GFIs/GCs and other
receivables from GFIs/GCs. Unliquidated/unpaid portion of this
account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 516,545,628 90.54
Social Welfare and Development 11,245,054 1.97
National Defense 8,074,097 1.42
Health 7,165,946 1.26
Agriculture 6,363,828 1.12
Interior and Local Government 5,564,982 0.98
Transportation 3,796,955 0.67
Public Works and Highways 2,450,593 0.43
Other Executive Offices 1,796,446 0.31
State Universities and Colleges 1,667,131 0.29
Sub-Total 564,670,660 98.98
Other Departments/Offices 5,817,522 1.02
Total 570,488,182 100.00

Dues recognized by the DOF were composed primarily of receivables


of BTr for the account of the NG. Details are as follows.

Amount
Particulars
(in thousand pesos)
1. Guarantee fee receivables from GOCCs/GFIs 25,184,052
2. NG’s refinancing of BSP advances/payments on
liabilities retained with Central Bank-Board of
Liquidators 275,774,451
3. NG Receivable from BSP on IMF remuneration on
the reserve tranche 764,376
4. Balance of loans outlay released to LBP under the
Agrarian Reform Loans 1,255,528
5. NG advances in behalf of GOCCs/GFIs for their
foreign and domestic obligations (principal, interest
and other charges) 196,578,195
6. NG advances for assumed GOCCs/GFIs guaranteed
obligations 6,865,783
7. Dormant accounts subject to verification and
consequently will be requested for write-off 6,550,055
8. Overdue accounts from Loans Receivable which were
reclassified to Due from GOCCs 2,726,794
9. Balance of DBP’s outstanding obligations to the NG
relative to the Northern Cement Corporation covered
by Deed of Assignment of Rights and Interest
between DBP and PMO dated December 30, 2003
involving the transfer to NG through PMO, of DBP’s
receivables from the Department of Agrarian Reform
(DAR)/LBP arising from DBP’s transfer to DAR of
agricultural lands pursuant to E.O. No. 407 dated June
14, 1990 229,316
10. LBP-ARF Clearing Account with the LBP for ARF
collections 200,710
11. Others 74,332
Total 516,203,590

87
The receivables reported by DSWD are broken down as follows:

Amount
Particulars
(in thousand pesos)
Land Bank of the Philippines 10,746,364
Philippine International Trading Corp. 164,005
Social Housing and Finance Corp. 10,360
Technology and Livelihood Resource Center 23,500
Others 300,825
Total 11,245,054

The amount due from the LBP pertained to funds transferred for the
payment of cash grants to the beneficiaries of the Pantawid Pamilyang
Pilipino Program (4Ps). The balance from Philippine International
Trading Corporation pertained to the unliquidated portion of the funds
transferred during FY 2013 and 2014 for the emergency purchase of
goods and services, and infrastructure projects under the Yolanda
Recovery and Rehabilitation Program. The amount granted to the
Social Housing and Finance Corp. represents the shelter assistance to
148 informal settler families in Cagayan de Oro City who are victims
of the typhoon Sendong in 2011. Receivables from the Technology and
Livelihood Center pertained to the funds transferred for training and
livelihood programs, augmentation supports and assistance.

Other transfers include, among others, the allocation made by the


DSWD Field Offices to the National Food Authority (NFA) for the
purchase of rice as part of the Supplemental Feeding Program in Davao,
and the Mindanao State University-General Santos City and Surallah
National Agricultural School for the Modified Conditional Cash
Transfer Project, and vocational and technical skills training of 3,130
4Ps beneficiaries in North Cotabato under the Sustainable Livelihood
Program.

c. Due from Local Government Units

This account represents balances of funds transferred to LGUs for


purchase of goods/services as authorized by law, fund transfers to the
LGUs for implementation of projects, share from LGUs income and
other receivables. The departments/offices with balances of this
account are the following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 16,769,315 24.76
Social Welfare and Development 16,317,957 24.10
Interior and Local Government 12,096,519 17.86
Health 5,086,169 7.51
Other Executive Offices 3,243,407 4.79
Labor and Employment 2,713,942 4.01
Public Works and Highways 1,933,457 2.85
Agrarian Reform 1,394,979 2.06

88
Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 1,266,880 1.87
Autonomous Region in Muslim Mindanao 1,203,124 1.78
Sub-Total 62,025,749 91.59
Other Departments/Offices 5,696,207 8.41
Total 67,721,956 100.00

Funds transferred by the DA to LGUs are intended for the


implementation of infrastructure and post-harvest facility projects such
as farm-to-market roads, small water impounding projects and repair
and rehabilitation of existing irrigation system. These are also intended
to carry out Bottom-up Budgeting Project, National Livestock Program,
Targeted Actions to Reduce Poverty and Economic Transformation
Program and other projects involving agriculture and fisheries.

Transfers of the DSWD-OSEC to LGUs included the following


balances as at year-end:

Nature Amount
(in thousand pesos)
Fund releases to Payapa at Masaganang Pamayanan
(PAMANA)-Barangay LGU-Kapit-Bisig Laban sa
Kahirapan-Comprehensive and Integrated Delivery of
Social Services (KALAHI-CIDSS) as community grants
to various barangays 114,867
Funds transferred to the Municipality of Guihulngan,
Negros Oriental as augmentation for the Cash for Work
Program for the 1,422 families affected by earthquake in
Region VII 2,565
Funds transferred to the Municipality of La Libertad,
Negros Oriental as augmentation for the Cash for Work
Program for the 1,422 families affected by earthquake in
Region VII 1,002
Funds transferred to the Provincial Government of Aklan,
Antique, Camarines Sur, Oriental Mindoro and Sorsogon
for the implementation of implementation of various
programs and projects i.e. Social Pension for Indigent
Senior Citizens, Supplemental Feeding Program,
Sustainable Livelihood Program, various programs
under the Bottom-Up Budgeting process, Crisis
Intervention Program, shelter assistance and
construction of Day Care Center and Senior Citizens
Center 6
Total 118,440

6.4. Intra-Agency Receivables

Intra-Agency Receivables refer to reciprocal accounts that subsist within


the agency between the Central Office, Staff Bureaus, ROs and OUs.
Account components are as follows:

89
2017 2016 (Restated)
Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Due from Operating Units 9,889,302 100.00 6,739,624 98.58
Due from Other Funds - - 96,805 1.42
Total 9,889,302 100.00 6,836,429 100.00

To eliminate the effect of intra-agency transactions, Intra-Agency


Receivables accounts were netted against Intra-Agency Payables accounts.
After elimination, however, unmatched transactions and balances existed
in the following departments/offices:

Intra-Agency Intra-Agency
Balance
Department/Office Receivables Payables
(in thousand pesos)
Education 4,633,027 148,674 4,484,353
Autonomous Region in Muslim
Mindanao 3,386,290 826,900 2,559,390
Agriculture 1,164,881 289,573 875,308
Health 1,121,735 470,024 651,710
Foreign Affairs 1,116,324 564,530 551,794
Public Works and Highways 7,197,346 6,804,909 392,438
Agrarian Reform 648,703 377,406 271,298
National Defense 468,231 210,928 257,303
Environment and Natural Resources 175,927 43,331 132,595
National Economic and Development
Authority 131,515 36,003 95,512
Sub-Total 20,043,979 9,772,278 10,271,701
Other Departments/Offices 2,001,334 2,383,733 (382,399)
Total 22,045,313 12,156,012 9,889,302

Schedule 10, Volume II of this Report shows the list of agencies with
balances of Intra-Agency Receivables as at year-end.

6.5. Other Receivables

Details of this sub-major group of accounts are as follows:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Receivables-Disallowances/
Charges 7,658,375 11.49 7,260,325 11.74
Due from Officers and
Employees 1,328,587 1.99 753,328 1.22
Due from Non-Government
Organizations/People’s
Organizations 16,433,034 24.65 9,479,794 15.33
Other Receivables 41,244,165 61.87 44,351,806 71.71
Total 66,664,162 100.00 61,845,253 100.00

90
a. Receivables-Disallowances/Charges

This account refers to disallowances/charges imposed by the auditors


due from public and private entities or individuals which have become
final and executory. As at year-end, the following departments/offices
reported balances, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 1,966,874 25.68
National Defense 1,292,115 16.87
Public Works and Highways 1,174,281 15.33
Agriculture 532,418 6.95
Education 469,762 6.13
Health 358,503 4.68
State Universities and Colleges 313,684 4.10
Agrarian Reform 295,232 3.86
Interior and Local Government 241,950 3.16
Other Executive Offices 218,250 2.85
Sub- total 6,863,069 89.62
Other Departments/Offices 795,306 10.38
Total 7,658,375 100.00

b. Due from Officers and Employees

This account includes claims from officers and employees for


overpayment of salaries and other personnel benefits, operating
expenses, cash shortages, losses of assets and other bills.

The following departments/offices reported outstanding claims from


their officers and employees:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 557,747 41.98
Health 179,216 13.49
Foreign Affairs 89,592 6.74
State Universities and Colleges 83,782 6.31
Agriculture 68,649 5.17
Finance 62,452 4.70
Education 59,112 4.45
The Judiciary 52,953 3.99
Transportation 32,134 2.42
Interior and Local Government 30,716 2.31
Sub-total 1,216,353 91.55
Other Departments/Offices 112,234 8.45
Total 1,328,587 100.00

c. Due from Non-Government Organizations/People’s Organizations

Unliquidated portion of advances granted to Non-Government


Organizations (NGOs)/People’s Organizations (POs) were reported by

91
the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 6,875,705 41.84
Other Executive Offices 3,846,919 23.41
Agriculture 1,961,477 11.94
Science and Technology 1,295,122 7.88
Education 1,225,909 7.46
Agrarian Reform 486,406 2.96
Labor and Employment 419,864 2.56
Health 140,579 0.86
Trade and Industry 52,462 0.32
Environment and Natural Resources 25,388 0.15
Sub-total 16,329,831 99.37
Other Departments/Offices 103,202 0.63
Total 16,433,034 100.00

Receivables recognized by DSWD-OSEC include the balance of the


funds transferred to various NGOs in FY 2012 and prior years
amounting to P383.06 million which were funded through
Congressional Initiatives, Congressional Development Funds, and
Priority Development Assistance Fund of various solons. Receivables
also include, among others, the transfers to Associates of the Urban
Poor, Inc. amounting to P39.93 million for the housing assistance to the
beneficiaries of “Integrated People Driven Model Community Project
for the Typhoon Affected Families” in Tacloban City, and the balance
from International Organization for Migration amounting to P77.19
million for the construction of 700 single-detached transitional shelters,
and water, sanitation and hygiene facilities for Zamboanga Crisis-
affected populations, and for developing capacity to train families and
communities in evacuation preparedness.

d. Other Receivables

This account represents receivables from other debtors not falling under
any of the specific receivable accounts. The following
departments/offices reported balances of this account:

Allowance
Gross Carrying
for Percent
Department/Office Amount Amount
Impairment to Total
(in thousand pesos)
The Judiciary 14,908,243 232 14,908,011 36.15
Finance 15,033,775 978,589 14,055,187 34.08
Commission on Audit 2,723,906 - 2,723,906 6.60
Science and Technology 2,407,206 - 2,407,206 5.84
Other Executive Offices 855,146 3,072 852,074 2.07
National Economic and
Development
Authority 712,724 - 712,724 1.73
Health 666,380 8,345 658,035 1.60
Agriculture 638,030 13 638,017 1.55

92
Allowance
Gross Carrying
for Percent
Department/Office Amount Amount
Impairment to Total
(in thousand pesos)
National Defense 692,665 72,279 620,385 1.50
Office of the
Ombudsman 562,880 - 562,880 1.36
Sub-total 39,200,955 1,062,530 38,138,425 92.47
Other Departments/
Offices 3,376,171 270,430 3,105,741 7.53
Total 42,577,126 1,332,960 41,244,165 100.00

The balance of The Judiciary is composed primarily of receivables


recognized by SCP amounting to P13.66 billion. This includes, among
others, the unpaid loans of qualified Court employees, receivables from
local banks due to erroneous charging, dues from former employees,
and funds transferred to local banks for the Court’s infrastructure
projects, training programs and expenses of the Halls of Justice.

Other Receivables recognized by the BIR of P10.10 billion pertained to


taxation revenue transactions of different NGAs, revenue regions,
officers and employees, details of which are as follows:

Amount
Particulars
(in thousand pesos)
National Office
1. Receivable funding for the Tax Credit Certificates
(TCCs) and Tax Debit Memos (TDMs) issued by
various BIR offices and DOF One-Stop-Shop to the
taxpayers 9,915,678
2. Dishonored checks for FYs 1987 to 2015 195,046
3. Penalties on Authorized Agent Banks’ violations 2,401
4. Acceptance of dishonored checks as at December 31,
2017 93
5. Outstanding balance of Municipal Treasurers 35,664
designated as Regional Collecting Officers (RCOs)
6. Outstanding balances of collecting officers of various 30,256
NGAs
7. Cash shortages of former RCOs from FYs 1961-1970
who were no longer in service and whose
whereabouts could no longer be located (subject to
completion of documentary requirements for request 6,837
for write-off)
8. Outstanding balances of RCOs on accountable forms 304,413
(documentary stamps, science stamps auxiliary
labels) for the period FYs 1961-1989
9. Outstanding balance of BIR designated Revenue
Attaché/Revenue Representative who are no longer in
the service 1,671
10. Outstanding balance of DFA Finance Officers
designated as collecting agents of the BIR for
collection of internal revenue taxes from Filipinos 6,512
working abroad
11. Outstanding balance of dishonored check of a former
Special Collecting Officer 5
Sub-total 10,498,576

93
Amount
Particulars
(in thousand pesos)
Total Reported by Revenue Regions 424,389
Total 10,922,964

The DOF-PMO reported the following details of Other Receivables


account in the amount of P944.59 million:

Amount
Particulars
(in thousand pesos)
1. Mile Long Complex – operational expenses (e.g.,
management, conservation and maintenance) 1,656
2. Emerald Plaza - telephone/water/electric bill 356
3. Inland Property Ventures, Locator Marketing Corp.,
and Villapando, Carlito - share in common expenses
in the building (i.e. garbage dues, water and electric
bills) 420
4. Defunct Congressional Accounts Liquidation Office
– various accounts 7,225
5. Defunct government corporations - various accounts
from the former Board of Liquidators 934,755
6. Others 175
Total 944,586

7. INVENTORIES

This major group of accounts consists of the following sub-major groups:

2017 2016 (Restated)


Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Inventory Held for Sale 2,473,857 2.75 2,209,588 3.36
Inventory Held for Distribution 40,562,871 45.02 28,697,033 43.58
Inventory Held for Manufacturing 1,112,937 1.24 941,936 1.43
Inventory Held for Consumption 42,367,347 47.03 32,917,173 49.99
Semi-Expendable Machinery and
Equipment 2,208,286 2.45 689,756 1.05
Semi-Expendable Furniture, Fixtures
and Books 1,366,161 1.52 397,621 0.60
Total 90,091,458 100.00 65,853,106 100.00

7.1. Inventory Held for Sale

a. Merchandise Inventory

This account refers to the cost of goods purchased or acquired 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, among others. As at year-end,
the unsold merchandise was reported by the following

94
departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 1,118,274 45.20
Budget and Management 658,253 26.61
National Defense 493,586 19.95
State Universities and Colleges 193,584 7.83
Other Executive Offices 7,720 0.31
Tourism 1,315 0.05
Education 508 0.02
National Economic and Development
Authority 343 0.01
Transportation 273 0.01
Total 2,473,857 100.00

Merchandise kept by the DOH pertained to drugs and medicines,


medical, dental, laboratory and other related inventories that are held
for sale by the pharmacy of the different government hospitals.

Inventory reported by the DBM consisted of the merchandise held by


the Procurement Service as at reporting date after deducting loss of
P5.99 million from damaged and expired items.

7.2. Inventory Held for Distribution

This sub-major group of accounts is composed of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Food Supplies for Distribution 65,498 0.16 52,443 0.18
Welfare Goods for
Distribution 1,511,654 3.73 1,648,770 5.75
Drugs and Medicines for
Distribution 17,580,758 43.34 12,780,444 44.54
Medical, Dental and
Laboratory Supplies for
Distribution 2,683,223 6.61 2,035,697 7.09
Agricultural and Marine
Supplies for Distribution 4,712,693 11.62 3,124,377 10.89
Agricultural Produce for
Distribution 198,597 0.49 202,209 0.70
Textbooks and Instructional
Materials for Distribution 530,260 1.31 540,779 1.88
Construction Materials for
Distribution 86,759 0.21 74,394 0.26
Property and Equipment for
Distribution 11,077,778 27.31 6,534,023 22.77
Other Supplies and Materials
for Distribution 2,115,650 5.22 1,703,896 5.94
Total 40,562,871 100.00 28,697,033 100.00

95
a. Welfare Goods for Distribution

Welfare Goods for Distribution was reported by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 1,505,967 99.62
National Defense 2,274 0.15
Autonomous Region in Muslim Mindanao 2,157 0.14
Health 1,244 0.08
Education 11 0.00
Total 1,511,654 100.00

The welfare goods maintained by DSWD represents the food and non-
food supplies for distribution to individuals affected by various
calamities, disasters and ground conflicts. This also represents the
monetized value of donations of P895.89 thousand received prior to the
issuance of COA Circular No. 2014-002 dated April 15, 2014 and
locally purchased inventories of P439.86 million.

b. Drugs and Medicines for Distribution

Drugs and Medicines for Distribution was reported by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 17,571,043 99.94
Agriculture 5,731 0.03
Education 2,631 0.01
National Defense 720 0.00
Social Welfare and Development 634 0.00
Total 17,580,758 100.00

The amount reported by the DOH refers to drugs and medicines for
distribution to patients, hospitals and health facilities.

c. Medical, Dental and Laboratory Supplies for Distribution

Medical, Dental and Laboratory Supplies for Distribution was reported


by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 2,641,361 98.44
Social Welfare and Development 31,905 1.19
Education 6,342 0.24
Agriculture 3,616 0.13
Total 2,683,223 100.00

96
The amount reported by the DOH refers to medical, dental and
laboratory supplies for distribution to patients, hospitals and health
facilities.

d. Agricultural and Marine Supplies for Distribution

Agricultural and Marine Supplies for Distribution were reported by the


following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 4,705,860 99.86
State Universities and Colleges 4,223 0.09
Environment and Natural Resources 1,286 0.03
Agrarian Reform 1,279 0.03
Other Executive Offices 45 0.00
Total 4,712,693 100.00

e. Agricultural Produce for Distribution

Agricultural Produce for Distribution was reported by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Environment and Natural Resources 172,045 86.63
Agriculture 22,522 11.34
State Universities and Colleges 3,814 1.92
Agrarian Reform 169 0.09
Other Executive Offices 47 0.02
Total 198,597 100.00

f. Textbooks and Instructional Materials for Distribution

Textbooks and Instructional Materials for Distribution was reported by


the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 509,328 96.05
Other Executive Offices 11,082 2.09
Health 5,737 1.08
State Universities and Colleges 3,258 0.61
Science and Technology 856 0.16
Total 530,260 100.00

g. Construction Materials for Distribution

Construction Materials for Distribution was reported by the following


departments/offices:

97
Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 71,133 81.99
Social Welfare and Development 6,577 7.58
Agrarian Reform 4,252 4.90
Agriculture 3,626 4.18
Environment and Natural Resources 1,144 1.32
Public Works and Highways 27 0.03
Total 86,759 100.00

h. Property and Equipment for Distribution

The Property and Equipment for Distribution was reported by the


following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 5,446,817 49.17
National Defense 2,674,059 24.14
Health 1,804,016 16.28
Agrarian Reform 920,718 8.31
Education 154,764 1.40
Science and Technology 39,165 0.35
Trade and Industry 14,153 0.13
Transportation 11,024 0.10
Environment and Natural Resources 10,103 0.09
Sub-Total 11,074,818 99.97
Other Departments/Offices 2,960 0.03
Total 11,077,778 100.00

i. Other Supplies and Materials for Distribution

Other Supplies and Materials for Distribution was reported by the


following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 1,739,154 82.20
Agriculture 132,102 6.24
Other Executive Offices 107,799 5.10
Public Works and Highways 50,153 2.37
Social Welfare and Development 25,591 1.21
Transportation 24,544 1.16
Education 21,919 1.04
Agrarian Reform 9,300 0.44
Environment and Natural Resources 1,481 0.07
Sub-Total 2,112,044 99.83
Other Departments/Offices 3,606 0.17
Total 2,115,650 100.00

98
7.3. Inventory Held for Manufacturing

This sub-major group of accounts is composed of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Raw Materials Inventory 507,666 45.61 486,279 51.63
Work-in-Process Inventory 151,686 13.63 148,127 15.73
Finished Goods Inventory 453,585 40.76 307,530 32.64
Total 1,112,937 100.00 941,936 100.00

Only seven departments/offices reported balances of Inventories Held for


Manufacturing, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 927,017 83.29
Presidential Communications Operations Office 79,406 7.13
State Universities and Colleges 68,809 6.18
Transportation 16,921 1.52
Health 12,209 1.10
Education 6,332 0.57
Other Executive Offices 2,243 0.21
Total 1,112,937 100.00

The Government Arsenal of the DND reported Raw Materials Inventory of


P436.86 million, Work-in-Process Inventory of P70.82 million and
Finished Goods Inventory of P419.33 million. The Finished Goods
Inventory consisted of assorted ammunitions manufactured by the Agency
for delivery to the different DND offices.

Manufacturing inventories reported by the Presidential Communications


Operations Office (PCOO) pertains to raw, in-process and/or available for
sale accountable and standard forms, Official Gazettes, Philippine reports,
laws and resolutions, and various books and documents of the National
Printing Office.

7.4. Inventory Held for Consumption

This group of accounts refers to the costs of purchases/acquisitions of


inventory intended for consumption in the regular operations of an agency.
Unused portion of these inventories are reported as follows:

99
2017 2016 (Restated)
Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Office Supplies Inventory 4,473,452 10.56 3,676,782 11.17
Accountable Forms, Plates,
and Stickers Inventory 1,888,547 4.46 1,317,660 4.00
Non-Accountable Forms
Inventory 130,681 0.31 130,914 0.40
Animal/Zoological Supplies
Inventory 29,169 0.07 15,876 0.05
Food Supplies Inventory 569,914 1.35 289,312 0.88
Drugs and Medicines
Inventory 3,153,855 7.44 3,517,630 10.69
Medical, Dental, and
Laboratory Supplies
Inventory 3,823,553 9.02 3,322,034 10.09
Fuel, Oil and Lubricants
Inventory 3,263,143 7.70 1,738,392 5.28
Agricultural and Marine
Supplies Inventory 1,562,791 3.69 1,327,169 4.03
Textbooks and Instructional
Materials Inventory 4,810,436 11.35 4,010,114 12.18
Military, Police, and Traffic
Supplies Inventory 6,450,783 15.23 4,676,577 14.21
Chemical and Filtering
Supplies Inventory 62,059 0.15 23,550 0.07
Construction Materials
Inventory 4,030,057 9.51 3,775,839 11.47
Other Supplies and Materials
Inventory 8,118,906 19.16 5,095,323 15.48
Total 42,367,347 100.00 32,917,173 100.00

Inventories for Consumption were reported by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 13,833,282 32.65
Health 7,213,408 17.03
Education 5,743,479 13.56
Transportation 4,332,812 10.23
Interior and Local Government 2,408,358 5.68
Agriculture 1,929,029 4.55
State Universities and Colleges 1,590,874 3.75
Public Works and Highways 1,278,642 3.02
Finance 688,079 1.62
Social Welfare and Development 680,093 1.61
Sub-Total 39,698,054 93.70
Other Departments/Offices 2,669,293 6.30
Total 42,367,347 100.00

The balance of the DND pertained mostly to the unused supplies reported
by the Philippine Army (PA), Philippine Air Force (PAF) and Philippine
Navy (PN) amounting to P7.45 billion, P3.13 billion and P1.62 billion,

100
respectively. The unconsumed supplies of the PA was composed mainly of
Military, Police and Traffic Supplies such as ammunitions, explosives,
magazines and other firearms accessories acquired.

7.5. Semi-Expendable Machinery and Equipment

This sub-major group of accounts refers to machinery and equipment


purchased/acquired costing less than P15,000.00. It is composed of the
following accounts:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Machinery 77,724 3.52 19,259 2.79
Office Equipment 206,535 9.35 108,795 15.77
Information and
Communications
Technology Equipment 407,504 18.45 228,295 33.10
Agricultural and Forestry
Equipment 6,953 0.31 2,885 0.42
Marine and Fishery
Equipment 6,518 0.30 4,450 0.65
Communications Equipment 48,511 2.20 41,559 6.03
Disaster Response and Rescue
Equipment 116,371 5.27 38,157 5.53
Military, Police and Security
Equipment 100,940 4.57 34,148 4.95
Medical Equipment 139,107 6.30 63,757 9.24
Printing Equipment 4,397 0.20 2,210 0.32
Sports Equipment 8,470 0.38 3,763 0.55
Technical and Scientific
Equipment 818,530 37.07 28,450 4.12
Other Machinery and
Equipment 266,725 12.08 114,026 16.53
Total 2,208,286 100.00 689,756 100.00

The drastic increase was due to the adoption of accounting policy


reclassifying all machinery and equipment falling below the capitalization
threshold of P15,000, either currently or previously acquired, to form part
of the inventory.

Semi-Expendable Machinery and Equipment reported by the departments/


offices are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 1,096,560 49.66
Interior and Local Government 242,062 10.96
Health 197,337 8.94
State Universities and Colleges 95,399 4.32
Finance 77,191 3.50
Agriculture 74,264 3.36
Environment and Natural Resources 74,123 3.36

101
Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 63,502 2.88
Social Welfare and Development 36,517 1.65
National Defense 33,409 1.51
Sub-Total 1,990,365 90.13
Other Departments/Offices 217,921 9.87
Total 2,208,286 100.00

7.6. Semi-Expendable Furniture, Fixtures and Books

This sub-major group of accounts is composed of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Furniture and Fixtures 1,274,715 93.31 350,964 88.27
Books 91,445 6.69 46,656 11.73
Total 1,366,161 100.00 397,621 100.00

Similarly, the sudden increase of Semi-Expendable Furniture, Fixtures and


Books was due to change in accounting policy reclassifying all furniture,
fixtures and books costing less than P15,000, either currently or previously
acquired, to form part of the inventory.

Semi-Expendable Furniture, Fixtures and Books were reported by the


following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 771,826 56.50
State Universities and Colleges 160,899 11.78
Finance 67,743 4.96
Health 51,615 3.78
Environment and Natural Resources 35,131 2.57
Transportation 34,973 2.56
Agriculture 31,358 2.30
Public Works and Highways 30,794 2.25
Science and Technology 23,786 1.74
National Defense 22,694 1.66
Sub-Total 1,230,820 90.09
Other Departments/Offices 135,341 9.91
Total 1,366,161 100.00

8. OTHER CURRENT ASSETS

This major group of accounts is composed of advances, prepayments and deposits


paid in anticipation of future performance of services, receipt of goods, incurrence
of expenditures or the receipt of other assets.

102
2017 2016 (Restated)
Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Advances 15,408,119 10.21 10,964,891 8.68
Prepayments 71,430,947 47.35 62,379,203 49.36
Deposits 64,013,657 42.43 53,039,288 41.97
Total 150,852,723 100.00 126,383,382 100.00

8.1. Advances

This sub-major group of accounts is composed of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Advances for Operating
Expenses 5,287,540 34.32 3,907,225 35.63
Advances for Payroll 1,937,850 12.58 1,830,791 16.70
Advances to Special
Disbursing Officers 7,018,826 45.55 4,062,259 37.05
Advances to Officers and
Employees 1,163,903 7.55 1,164,616 10.62
Total 15,408,119 100.00 10,964,891 100.00

Schedule 14, Volume II of this Report shows the list of agencies with
balances of the Advances accounts as at year-end.

a. Advances for Operating Expenses

Unliquidated cash 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 are included in
this account. The departments/offices which showed balances of this
account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 3,383,427 63.99
Tourism 448,711 8.49
Information and Communications Technology 425,800 8.05
Agriculture 271,082 5.13
Labor and Employment 270,700 5.12
Trade and Industry 145,390 2.75
National Defense 103,029 1.95
Other Executive Offices 63,942 1.21
State Universities and Colleges 46,274 0.88
Health 17,867 0.34
Sub-total 5,176,221 97.89
Other Departments/Offices 111,319 2.11
Total 5,287,540 100.00

103
The unliquidated cash advances recorded by the Department of
Education (DepEd) pertained mainly to those granted to School Heads
for use in their regular operating requirements.

b. Advances for Payroll

This account 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/offices with
balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 595,670 30.74
Interior and Local Government 490,310 25.30
State Universities and Colleges 340,255 17.56
National Defense 208,373 10.75
Justice 64,258 3.32
Public Works and Highways 57,214 2.95
Agriculture 38,938 2.01
Health 37,681 1.94
Environment and Natural Resources 33,804 1.74
Other Executive Offices 19,294 1.00
Sub-total 1,885,796 97.31
Other Departments/Offices 52,054 2.69
Total 1,937,850 100.00

c. Advances to Special Disbursing Officers

This account pertains to advances granted to agency’s accountable


officers and employees for special purpose/time-bound undertakings
that were not liquidated as at year-end. This account also includes labor
payroll for projects undertaken by administration.

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 2,925,176 41.68
Education 1,188,145 16.93
Justice 487,423 6.94
Interior and Local Government 459,251 6.54
National Defense 441,146 6.29
Labor and Employment 390,417 5.56
Agriculture 274,923 3.92
Other Executive Offices 221,027 3.15
State Universities and Colleges 146,195 2.08
Office of the President 102,861 1.47
Sub-total 6,636,564 94.55
Other Departments/Offices 382,261 5.45
Total 7,018,826 100.00

104
Advances from DWSD to SDOs were intended for the implementation
of various DSWD programs and services such as social pension, cash
for work, livelihood training, Crisis Intervention Program and shelter
assistance. These also pertained to advances granted to Social Welfare
Attachés in other countries for which liquidation reports submitted were
subject to review and evaluation prior to recognition in the books of
accounts.

d. Advances to Officers and Employees

This account refers to the amount advanced to officers and employees


for official travel. The departments/offices with balances of this
account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 336,865 28.94
State Universities and Colleges 140,735 12.09
Foreign Affairs 92,249 7.93
Justice 87,023 7.48
National Defense 72,804 6.26
Agriculture 61,276 5.26
Labor and Employment 60,593 5.21
Interior and Local Government 35,513 3.05
Health 35,221 3.03
Other Executive Offices 33,733 2.90
Sub-total 956,012 82.14
Other Departments/Offices 207,892 17.86
Total 1,163,903 100.00

8.2. Prepayments

This sub-major group of accounts is composed of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Advances to Contractors 58,737,858 91.76 49,091,873 92.56
Prepaid Rent 569,456 0.89 632,614 1.19
Prepaid Registration 2,178 0.00 1,962 0.00
Prepaid Interest 2,154,564 3.37 1,336,525 2.52
Prepaid Insurance 1,257,724 1.96 255,190 0.48
Other Prepayments 1,291,877 2.02 1,721,124 3.24
Total 64,013,657 100.00 53,039,288 100.00

a. Advances to Contractors

This account referring to payments advanced to contractors as


authorized by law was reported by the following departments/offices:

105
Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 43,453,072 73.98
Health 5,777,522 9.84
Transportation 2,881,444 4.91
National Defense 1,964,910 3.35
State Universities and Colleges 1,109,266 1.89
Education 1,045,236 1.78
Agriculture 562,731 0.96
Science and Technology 383,498 0.65
Interior and Local Government 315,466 0.54
Environment and Natural Resources 300,579 0.51
Sub-total 57,793,725 98.39
Other Departments/Offices 944,133 1.61
Total 58,737,858 100.00

b. Prepaid Rent

This account pertaining to advance rental payments were recognized by


the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Foreign Affairs 348,499 61.20
National Economic and Development
Authority 53,632 9.42
Other Executive Offices 37,153 6.52
Labor and Employment 28,243 4.96
Finance 26,334 4.62
Transportation 20,433 3.59
Trade and Industry 19,020 3.34
Science and Technology 8,357 1.47
Interior and Local Government 5,407 0.95
Information and Communications Technology 4,031 0.71
Sub-total 551,110 96.78
Other Departments/Offices 18,346 3.22
Total 569,456 100.00

Prepaid Rent by the DFA refers to the advance rental payments by


FSPs.

c. Prepaid Registration

This account pertaining to prepayments for registration of government


property was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 505 23.19
Environment and Natural Resources 353 16.22
Health 351 16.09
National Economic and Development
Authority 304 13.95

106
Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 186 8.54
Interior and Local Government 181 8.33
State Universities and Colleges 108 4.97
Science and Technology 38 1.77
Transportation 36 1.63
National Defense 25 1.14
Sub-total 2,088 95.83
Other Departments/Offices 90 4.17
Total 2,178 100.00

d. Prepaid Interests

Prepaid Interests were recognized by the following departments/


offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 2,154,000 99.97
Office of the Ombudsman 556 0.03
Agrarian Reform 8 0.00
Total 2,154,564 100.00

The amount for the DOF was recorded in the books of the BTr which
refers to the prepaid interests or discounts on the issuance of T-Bills.

e. Prepaid Insurance

This account representing the unexpired portion of insurance coverage


for government property was recognized by the different
departments/offices, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 1,016,315 80.81
Health 52,641 4.19
State Universities and Colleges 33,559 2.67
Public Works and Highways 31,674 2.52
Agriculture 25,410 2.02
Science and Technology 11,607 0.92
Environment and Natural Resources 10,720 0.85
Interior and Local Government 7,314 0.58
Other Executive Offices 6,893 0.55
Presidential Communications Operations
Office 6,292 0.50
Sub-total 1,202,425 95.60
Other Departments/Offices 55,299 4.40
Total 1,257,724 100.00

107
f. Other Prepayments

Other prepayments not falling under any of the specific prepayment


accounts were reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 644,854 49.92
Interior and Local Government 266,830 20.65
Agriculture 102,709 7.95
Other Executive Offices 78,845 6.10
Health 56,753 4.39
State Universities and Colleges 50,193 3.89
Environment and Natural Resources 16,725 1.29
Education 14,206 1.10
Information and Communications Technology 12,444 0.96
Science and Technology 8,963 0.69
Sub-total 1,252,522 96.95
Other Departments/Offices 39,355 3.05
Total 1,291,877 100.00

8.3. Deposits

This sub-major group of accounts is composed of the following:

2017 2016 (Restated)


Amount Amount
Specific Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Deposit on Letters of Credit 59,702,943 83.58 50,223,871 80.51
Guaranty Deposits 11,197,549 15.68 12,083,661 19.37
Other Deposits 530,454 0.74 71,671 0.12
Total 71,430,947 100.00 62,379,203 100.00

a. Deposit on Letters of Credit

This account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 43,215,074 72.38
Health 14,545,718 24.36
Budget and Management 1,421,173 2.38
Agriculture 246,618 0.41
Science and Technology 200,772 0.34
Interior and Local Government 45,133 0.08
Transportation 27,252 0.05
Office of the President 618 0.00
State Universities and Colleges 206 0.00
Presidential Communications Operations
Office 194 0.00
Environment and Natural Resources 185 0.00
Total 59,702,943 100.00

108
Deposits on letters of credit of P38.72 billion placed by the DND with
AGDBs pertained primarily to the supply and delivery of firearms,
ammunitions, vehicular and communication requirements of the AFP,
including the cost of freight forwarding contracted with foreign
suppliers.

b. Guaranty Deposits

The departments/offices with balances of Guaranty Deposits are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 6,016,879 53.73
National Defense 4,497,648 40.17
Foreign Affairs 256,926 2.29
State Universities and Colleges 69,796 0.62
Autonomous Region in Muslim Mindanao 56,634 0.51
Other Executive Offices 44,588 0.40
Health 36,401 0.33
Science and Technology 33,921 0.30
Environment and Natural Resources 31,536 0.28
Transportation 28,928 0.26
Sub-total 11,073,256 98.89
Other Departments/Offices 124,293 1.11
Total 11,197,549 100.00

Guaranty deposits of the DA included the P6.02 billion pesos rendered


for its contribution/augmentation to Agricultural Guarantee Fund Pool
for Rice Self-Sufficiency Program.

c. Other Deposits

Other Deposits was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 398,456 75.12
Finance 47,278 8.91
Foreign Affairs 34,449 6.49
State Universities and Colleges 20,438 3.85
Other Executive Offices 7,226 1.36
Science and Technology 7,142 1.35
Labor and Employment 5,636 1.06
Congress of the Philippines 3,177 0.60
Agriculture 3,150 0.59
Health 1,872 0.35
Sub-total 528,823 99.69
Other Departments/Offices 1,631 0.31
Total 530,454 100.00

109
9. INVESTMENTS

The total Investments of the NG is composed of the following sub-groups:

2017 2016 (Restated)


Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Financial Assets-Held to Maturity 4,111,847 0.41 8,671,679 0.78
Financial Assets-Others 194,769,036 19.57 184,096,967 16.64
Investments in GOCCs 243,881,947 24.51 238,523,422 21.56
Sinking Fund 552,442,864 55.51 675,128,850 61.02
Total 995,205,694 100.00 1,106,420,918 100.00

9.1. Financial Assets-Held to Maturity

a. Investments in Treasury Bonds-Local

Investments in Treasury Bonds-Local represents the entire Financial


Assets-Held to Maturity. Only five departments/offices reported this
account, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 3,680,032 89.50
Other Executive Offices 137,226 3.34
National Economic and Development
Authority 134,000 3.26
Education 121,540 2.96
State Universities and Colleges 39,050 0.95
Total 4,111,848 100.00

The BTr reported this account which consists of NG investments in T-


Bonds and investments in T-Bonds of the funds managed/administered
by the BTr, details of which are as follows:

Amount
Particulars
(in thousand pesos)
NG-Special Guaranty Fund 126,129
Security Stabilization Fund 2,608,901
Metropolitan Waterworks and Sewerage System-Special
Reserve Fund 233,381
NCCA 711,621
Total 3,680,032

Among the agencies of the OEO, only the Technical Education and
Skills Development Authority (TESDA) and Cooperative Development
Authority (CDA) reported this account with carrying amounts of
P135.31 million or 98.60 percent and P1.92 million or 1.40 percent,
respectively. Those reported by the TESDA were investments under the
Sariling Sikap Project.

110
9.2. Financial Assets-Others

This sub-major group of accounts is composed of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Investments in Stocks 152,089,377 78.09 142,652,406 77.49
Investments in Bonds 5,309,956 2.73 5,093,397 2.77
Other Investments 37,369,703 19.19 36,351,165 19.75
Total 194,769,036 100.00 184,096,967 100.00

a. Investments in Stocks

The departments/offices which reported Investments in Stocks are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 151,047,183 99.31
Justice 906,493 0.60
Other Executive Offices 123,214 0.08
Sub-total 152,076,890 99.99
Other Departments/Offices 12,487 0.01
Total 152,089,377 100.00

Among the agencies under the DOF, the BTr and PMO reported
P150.65 billion or 99.74 percent and P396.16 million or 0.26 percent,
respectively.

The amount reported by the BTr consists of NG subscriptions to the


capital stocks of international financial institutions, as follows:

Amount
Particulars
(in thousand pesos)
Asian Development Bank 2,479,734
ADB Credit Guarantee and Investment Facility 150,582
Asian Infrastructure Investment Bank 5,920,121
International Bank for Reconstruction and Development 1,305,534
International Development Association 732,544
International Finance Corporation 50,877
International Fund for Agricultural Development 10,229
International Monetary Fund 139,972,300
Multilateral Investment Guarantee Agency 29,097
Total 150,651,018

Two agencies under the DOJ reported this account: PCGG with
P906.05 million or 99.95 percent pertaining to surrendered shares of
stocks mostly for privatization from 17 companies, and LRA with
P443.65 thousand or 0.05 percent representing cost of stocks of
111
MERALCO and deposit with the Philippine Long Distance Telephone
Company.

b. Investments in Bonds

Of the total Investments in Bonds of the NG, the BTr reported P4.85
billion or 91.73 percent which pertained to NG investments in NIA
Bonds. The purchase of the NG of a 10-year 8.375 percent NIA Bonds
due 2013 with a face amount of USD97 million was approved by the
BSP Monetary Board, under its Resolution No. 1511 dated October 15,
2003, based on the proposal of the Republic of the Philippines (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 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 RP issued bonds, to allow NIA to settle its obligation to
Casecnan.

c. Other Investments

Other Investments were reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Labor and Employment 17,897,531 47.89
State Universities and Colleges 11,297,069 30.23
Finance 6,997,534 18.73
Other Executive Offices 487,437 1.30
Agrarian Reform 251,977 0.67
Agriculture 227,818 0.61
Science and Technology 189,606 0.51
Education 9,214 0.02
Trade and Industry 5,443 0.01
Commission on Audit 1,798 0.00
Sub-total 37,365,425 99.99
Other Departments/Offices 4,278 0.01
Total 37,369,703 100.00

112
The OWWA reported P17.73 billion or 99.09 percent of the total for
DOLE.

The UPS reported P11.24 billion or 99.51 percent of the total Other
Investments of SUCs. This was reported by the following campuses:

Amount
Campus
(in thousand pesos)
UP System Administration 9,968,028
UP Diliman 108,068
UP Philippine General Hospital 74
UP Los Baños 1,165,294
Total 11,241,465

9.3. Investments in GOCCs

Of the total Investments in GOCCs of P243.88 billion, almost 100 percent


was reported by the BTr, details of which are as follows:

Amount
Particulars
(in thousand pesos)
NG equity in stock GOCCs 114,637,987
NG equity in non-stock GOCCs 119,899,000
NG equity in non-stock GOCCs which were already defunct,
converted to other NGAs and non-GOCCs 9,318,804
NG equity in unidentified GOCCs/Accounts 26,156
Total 243,881,946

9.4. Sinking Fund

The Sinking Fund account of P552.44 billion was entirely reported by the
BTr which includes NG-issued and NG-guaranteed LBP and NFA
securities administered/managed by the BTr, details of which are as
follows:

Amount
Particulars
(in thousand pesos)
BSF-Securities (Bonds) 475,618,495
BSF-Securities (RP) 76,824,369
Total 552,442,864

The BSF of the NG-issued bonds includes investments in government


securities, thus, the government is both a debtor and creditor of government
securities held by BSF with face amount of P524.76 billion, broken down
as follows:

Amount
Particulars
(in thousand pesos)
T-Bills 1,237,273
T-Bonds 459,655,867

113
Amount
Particulars
(in thousand pesos)
ROP Bonds 63,868,795
Total 524,761,935

10. RECEIVABLES

Receivables of the NG is composed of the following sub-groups of accounts:

2017 2016 (Restated)


Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Loans and Receivable Accounts 188,376,881 92.58 200,276,492 100.00
Lease Receivables 15,104,285 7.42 - 0.00
Total 203,481,166 100.00 200,276,492 100.00

10.1. Loans and Receivable Accounts

This sub-major group of accounts consists of the following:

Allowance
Gross Carrying
for Percent
Account Amount Amount
Impairment to Total
(in thousand pesos)
Notes Receivable 137,012,596 - 137,012,596 72.73
Loans Receivable-
Government-Owned or
Controlled Corporations 51,097,960 - 51,097,960 27.13
Loans Receivable-Local
Government Units 7,763 - 7,763 0.00
Interests Receivable 246,859 - 246,859 0.13
Loans Receivable-Others 11,816 113 11,702 0.01
Total 188,376,994 113 188,376,881 100.00

a. Notes Receivable

The total Notes Receivable was entirely disclosed by the BTr. It refers
to a promissory note issued by the 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.

b. Loans Receivable-Government-Owned or Controlled


Corporations

The Loans Receivable-Government-Owned or Controlled Corporations


reported solely by the BTr pertained to loans outlays to GCs (cash and
constructive cash). Accordingly, when the GCs are unable to pay their

114
loans, the NG advances payment to the creditors in behalf of GCs
debiting the account Due from Government-Owned or Controlled
Corporations for the total amount paid (principal plus interest and other
charges) and crediting Loans Receivable-Government-Owned or
Controlled Corporations for the principal portion only.

c. Loans Receivable-Local Government Units

Loans Receivable-Local Government Units was reported solely by the


DOF, specifically the MDFO.

d. Interests Receivable

The Interests Receivable of P242.60 million or 98.27 percent pertained


to MDFO under the DOF.

e. Loans Receivable-Others

Only SUCs and DND reported balances of Loan Receivable-Others,


amounting to P11.70 million or 99.94 percent and P7 thousand or 0.06
percent, respectively.

Among the SUCs, only four reported this account. These are the Bicol
University with P6.83 million or 58.42 percent, Batanes State
University with P2.50 million or 21.41 percent, Visayas State
University with P2.03 million or 17.39 percent, and Catanduanes State
University with P325.12 thousand or 2.78 percent.

10.2. Lease Receivables

a. Operating Lease Receivable

This account was reported solely by the PMO which refers to the unpaid
rental for the lease of Leyte Park Hotel.

b. Finance Lease Receivable

This account, reported solely by the PMO, consists of the following:

Amount
Accounts
(in thousand pesos)
G. Holdings, Inc. 241,702
Philnico Mining and Industrial Corporation 14,665,896
Social Housing Finance Corporation 45,322
Triplex Enterprises, Incorporated 122,116
Total 15,075,035

115
11. INVESTMENT PROPERTY

This sub-major group of accounts refers to investments in land and buildings,


composed of the following:

Gross Accumulated Carrying


Percent
Account Amount Depreciation Amount
to Total
(in thousand pesos)
Investment Property, Land 2,025,680 - 2,025,680 93.81
Investment Property, Buildings 263,267 152,329 110,938 5.14
Construction in Progress-Investment
Property, Buildings 22,758 - 22,758 1.05
Total 2,311,705 152,329 2,159,376 100.00

The following departments/offices reported Investment Property, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 2,025,680 93.81
State Universities and Colleges 114,437 5.30
Trade and Industry 13,826 0.64
Education 4,972 0.23
Other Executive Offices 461 0.02
Total 2,159,376 100.00

The BTr declared Investment Property, Land of P2.03 billion representing 100
percent of the total reported by the DOF pertaining to the value of reclaimed land
transferred by the Philippine National Construction Corporation (PNCC). The
portion of the land equivalent to P1.52 billion was part of APT recovery from the
PNCC account while the portion of the land equivalent to P510 million was DOF’s
proportionate right which was assigned to BTr.

12. PROPERTY, PLANT AND EQUIPMENT

This major group of accounts comprises 13 sub-major groups, as follows:

Accumulated
Gross Accumulated Carrying
Sub-Major Group of Impairment Percent
Amount Depreciation Amount
Accounts Losses to Total
(in thousand pesos)
Land 345,036,381 - 31 345,036,350 13.82
Land Improvements 23,102,970 4,339,921 84,320 18,678,729 0.75
Infrastructure Assets 1,414,992,189 810,393,199 6,375 604,592,615 24.22
Buildings and Other
Structures 273,587,918 80,794,076 32,238 192,761,604 7.72
Machinery and
Equipment 229,045,568 113,950,250 37,171 115,058,147 4.61
Transportation
Equipment 100,654,604 43,318,427 4,850 57,331,327 2.30
Furniture, Fixtures and
Books 18,081,384 7,923,395 3,472 10,154,516 0.41
Leased Assets 2,578,309 346,400 - 2,231,909 0.09

116
Accumulated
Gross Accumulated Carrying
Sub-Major Group of Impairment Percent
Amount Depreciation Amount
Accounts Losses to Total
(in thousand pesos)
Leased Assets
Improvements 511,495 257,186 - 254,309 0.01
Heritage Assets 929,858 128,793 - 801,065 0.03
Service Concession
Tangible Assets 18,601,367 5,355,811 - 13,245,556 0.53
Other Property, Plant
and Equipment 6,997,549 3,148,724 683 3,848,141 0.15
Construction in Progress 1,132,288,251 - - 1,132,288,251 45.36
Total 3,566,407,843 1,069,956,183 169,140 2,496,282,518 100.00

Schedule 15, Volume II of this Report shows the list of agencies with balances of
Property, Plant and Equipment.

12.1. Land

The following departments/offices were entitled to ownership/rights to


various land property:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 160,632,804 46.56
Finance 54,986,041 15.94
State Universities and Colleges 44,585,899 12.92
Social Welfare and Development 40,377,808 11.70
Education 14,271,206 4.14
Interior and Local Government 9,875,269 2.86
Transportation 8,578,243 2.49
Public Works and Highways 2,467,379 0.72
Office of the President 1,725,457 0.50
Other Executive Offices 1,416,067 0.41
Sub-total 338,916,172 98.23
Other Departments/Offices 6,120,177 1.77
Total 345,036,350 100.00

The value of the Land owned by DND includes a total land area of
235,497,452 sq.m. owned by PAF, of which 231,483,205 sq.m. valued at
P54.54 billion was recognized in the books of accounts. The locations and
status of the remaining land area of 4,014,247.00 sq.m. are as follows:

Area
Location Remarks
(in sq.m.)
Puerto Princesa City 585,413 For transfer in the name of the ROP
Puerto Princesa City 231,657 For acquisition
Pasay City 479,317 Covered by Land Swapping Agreement
Calarian, Zamboanga 1,169 For annotation of Deed of Donation
Lipa City, Batangas 2,671,655 Expropriated
Lipa City, Batangas 37,064 For acquisition
Calaca, Batangas Under DENR Case No. 6907 dated May
7,972 1997
Total 4,014,247

117
12.2. Land Improvements

The total Land Improvements is composed of the following accounts:

Accumulated
Gross Accumulated Carrying
Impairment Percent
Account Amount Depreciation Amount
Losses to Total
(in thousand pesos)
Land Improvements,
Aquaculture
Structures 582,253 240,445 14,081 327,727 1.76
Land Improvements,
Reforestation
Projects 10,065,067 - 69,395 9,995,672 53.51
Other Land
Improvements 12,455,650 4,099,476 844 8,355,330 44.73
Total 23,102,970 4,339,921 84,320 18,678,729 100.00

a. Land Improvements, Aquaculture Structures

This account was mainly reported by the DA, specifically by the Bureau
of Fisheries and Aquatic Resources (BFAR) and OSEC with carrying
amounts of P131.28 million and P112.97 million, respectively. BFAR
disclosed that the account relates to fishery and marine structures such
as drainage systems and incidental structures made to fishponds.

b. Land Improvements, Reforestation Projects

Only two departments/offices reported this account, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Environment and Natural Resources 9,992,498 99.97
State Universities and Colleges 3,174 0.03
Total 9,995,672 100.00

The amount reported by the Department of Environment and Natural


Resources (DENR) refers to those acquired through, among others,
National Greening Program, Fisheries Sector Program, Seedling
Production Project and various foreign-assisted projects. These
comprise costs incurred for perimeter fences, garden soil supplies,
ground leveling and other related costs, such as project management
and supervision costs, travelling expenses, and labor and materials.

c. Other Land Improvements

This account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 3,792,906 45.40
National Defense 1,283,829 15.37

118
Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 1,043,710 12.49
Agriculture 646,245 7.73
Environment and Natural Resources 330,287 3.95
Transportation 212,558 2.54
Health 180,627 2.16
Science and Technology 163,028 1.95
Education 158,070 1.89
Tourism 129,980 1.56
Sub-Total 7,941,240 95.04
Other Departments/Offices 414,090 4.96
Total 8,355,330 100.00

Other land improvements pertained to costs of improvements such as


parking lots, landscape, walkways, sidewalks, fences, and the like.

12.3. Infrastructure Assets

This sub-major group of accounts is composed of the following:

Accumulated
Gross Accumulated Carrying Percent
Impairment
Account Amount Depreciation Amount to
Losses
Total
(in thousand pesos)
Road Networks 1,191,310,199 673,634,398 28 517,675,773 85.62
Flood Control Systems 202,752,863 127,965,989 - 74,786,874 12.37
Sewer Systems 70,135 12,622 - 57,513 0.01
Water Supply Systems 1,144,757 115,360 - 1,029,397 0.17
Power Supply Systems 1,199,241 534,424 51 664,765 0.11
Communications
Networks 805,523 571,244 - 234,279 0.04
Seaport Systems 6,259,256 5,051,652 - 1,207,604 0.20
Airport Systems 5,349,246 2,034,116 - 3,315,130 0.55
Parks, Plazas and
Monuments 1,110,511 322,591 - 787,920 0.13
Other Infrastructure
Assets 4,990,459 150,803 6,296 4,833,360 0.80
Total 1,414,992,190 810,393,199 6,375 604,592,615 100.00

a. Road Networks

The departments/offices with constructed road networks are the


following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 514,855,830 99.46
Metropolitan Manila Development Authority 1,180,955 0.23
Agriculture 1,052,481 0.20
National Defense 220,010 0.04
Agrarian Reform 179,112 0.03
State Universities and Colleges 115,135 0.02
Autonomous Region in Muslim Mindanao 31,170 0.01
Sub-Total 517,634,693 99.99

119
Amount Percent
Department/Office
(in thousand pesos) to Total
Other Departments/Offices 41,080 0.01
Total 517,675,773 100.00

The amount reported by the DPWH includes projects of the OSEC


which were started since FYs 2013-2015 and completed during the
year.

b. Flood Control Systems

The departments/offices with Flood Control Systems account are the


following:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 72,158,943 96.49
Metropolitan Manila Development Authority 2,484,785 3.32
Environment and Natural Resources 47,958 0.06
Office of the President 43,370 0.06
National Defense 21,502 0.03
Other Executive Offices 20,986 0.03
Sub-Total 74,777,544 99.99
Other Departments/Offices 9,329 0.01
Total 74,786,874 100.00

The amount reported by the DPWH includes projects which were


started in FY 2013 and completed in FY 2017. This resulted in an
increase of P31.12 billion or 75.82 percent from P41.04 billion in FY
2016.

The flood control systems installed by Metro Metropolitan Manila


Development Authority (MMDA) for dredging, riprapping and
drainage improvements in Metro Manila include costs of
design/build/rehabilitation/upgrading of pumping stations located in
the following flood districts:

Amount
Location
(in thousand pesos)
East of Manila Flood District 143,529
South of Manila Flood District 425,000
West of Manila Flood District 373,228
North of Manila Flood District 480,468
Upgrading of Taguig Pumping Station 164,564
Upgrading of Hagonoy Pumping Station 202,177
Reinforced Concrete Box Culvert Mojica-Don Bosco St.,
Makati City 172,017
Estero De Uli-Uli at San Miguel, Manila 99,975
Upgrading of Pumping Stations at Central Post Office and
Jones Bridge Underpass 29,988
Various Locations 686,686
Total 2,777,631

120
c. Sewer Systems

This account was reported by four departments/offices only namely,


DOH – P48.48 million, SUCS – P8.90 million, DPWH – P128.60
thousand and DND – P8.19 thousand.

d. Water Supply Systems

This account pertained to water source facilities, irrigation canals and


laterals, waterways, water utilities systems and other water supply
facilities acquired either for public use or for income generation. The
departments/offices which acquired water supply systems are as
follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 399,808 38.84
Agriculture 235,562 22.88
Environment and Natural Resources 143,616 13.95
State Universities and Colleges 61,588 5.98
Agrarian Reform 55,160 5.36
Interior and Local Government 46,075 4.48
Health 26,188 2.54
National Defense 17,456 1.70
Education 17,207 1.67
Science and Technology 14,676 1.43
Sub-total 1,017,336 98.83
Other Departments/Offices 12,061 1.17
Total 1,029,397 100.00

e. Power Supply Systems

The departments/offices which reported balances of this account are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 252,635 38.00
Health 149,060 22.42
National Defense 147,401 22.17
Interior and Local Government 37,862 5.70
Justice 22,744 3.42
Education 21,213 3.19
Labor and Employment 7,810 1.17
Agriculture 7,376 1.11
Science and Technology 7,215 1.09
Environment and Natural Resources 5,712 0.86
Sub-total 659,027 99.14
Other Departments/Offices 5,739 0.86
Total 664,765 100.00

The power supply systems of SUCs were installed in 71 tertiary schools

121
led by the UPS, Batangas State University, Eulogio "Amang"
Rodriguez Institute of Science and Technology, Western Mindanao
State University, and Mindanao State University System.

f. Communications Networks

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Information and Communications Technology 155,321 66.30
Transportation 59,513 25.40
Metropolitan Manila Development Authority 6,500 2.77
Health 4,370 1.87
State Universities and Colleges 3,520 1.50
National Defense 2,257 0.96
Public Works and Highways 1,866 0.80
Environment and Natural Resources 929 0.40
Education 2 0.00
Total 234,279 100.00

The National Telecommunication Commission and OSEC of DICT


reported P122.68 million and P32.64 million, net of P30.64 million and
P797.55 thousand accumulated depreciation, respectively.

The DOTr-OSEC reported P59.51 million, net of P535.61 million


accumulated depreciation. This represents Municipal Telephone
Projects originally acquired at P185.93 million in FY 1993, P128.64
million in FY 1992, and P280.56 million in FY 1991 per IRP No. 2010-
10-331. These completed projects are to be transferred to the DICT.

g. Seaport Systems

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 1,182,324 97.91
National Defense 21,524 1.78
Autonomous Region in Muslim Mindanao 3,757 0.31
Total 1,207,604 100.00

The DOTr-OSEC and the Philippine Coast Guard (PCG) reported


P1.11 billion and P68.93 million, respectively. The seaport systems
acquired by the OSEC refer to various construction projects held
completely during the year which include, among others, the costs of
lighthouse signalling equipment, installation service fees and training
expenses charged against Maritime Safety Improvement Project - Phase
II. The amount reported by the PCG refers to the cost of 588 completed
lighthouses nationwide (structures only).

122
h. Airport Systems

This account refers to landing and take-off area for aircraft, passengers’
arrival and departure areas, facilities for aircraft maintenance, and other
airport facilities such as airport runways and taxiways, radio beacon,
aprons, and the like, for public use or for income generating purposes.

As at December 31, 2017, the DOTr and DND reported carrying


amount of P2.75 billion and P562.35 million, respectively. The amount
reported by the DND pertained to infrastructure assets held by the PAF
and GHQ-AFP.

i. Parks, Plazas and Monuments

Six departments/offices disclosed balances of this account, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 737,482 93.60
Interior and Local Government 17,228 2.19
Tourism 17,148 2.18
State Universities and Colleges 14,838 1.88
National Defense 1,114 0.14
Environment and Natural Resources 112 0.01
Total 787,920 100.00

Among the OEOs, only the Pasig River Rehabilitation Center and
National Historical Commission of the Philippines (NHCP) reported
this account of P672.29 million or 85.32 percent and P65.19 million or
8.27 percent, respectively, of the total for the NG.

j. Other Infrastructure Assets

The departments/offices with balances of public infrastructures which


cannot be classified under any of the specific types of public
infrastructures are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 2,972,153 61.49
Agriculture 738,343 15.28
Other Executive Offices 382,165 7.91
Metropolitan Manila Development Authority 195,352 4.04
Environment and Natural Resources 154,426 3.20
Autonomous Region in Muslim Mindanao 113,100 2.34
Science and Technology 70,979 1.47
Agrarian Reform 66,674 1.38
State Universities and Colleges 61,278 1.27
Health 47,567 0.98
Sub-total 4,802,036 99.35
Other Departments/Offices 31,323 0.65
Total 4,833,360 100.00

123
12.4. Buildings and Other Structures

Components of this sub-major group of accounts are as follows:

Accumulated
Gross Accumulated Carrying Percent
Impairment
Account Amount Depreciation Amount to Total
Losses
(in thousand pesos)
Buildings 88,096,175 30,893,414 10,803 57,191,958 29.67
School Buildings 131,598,892 32,693,985 3,481 98,901,426 51.31
Hospitals and
Health Centers 21,983,107 5,806,297 - 16,176,811 8.39
Markets 46,233 13,113 - 33,119 0.02
Slaughterhouses 2,140 1,507 - 633 0.00
Hostels and
Dormitories 1,268,115 394,880 839 872,396 0.45
Other Structures 30,593,255 10,990,881 17,114 19,585,261 10.16
Total 273,587,917 80,794,077 32,237 192,761,604 100.00

a. Buildings

Below are the departments/offices with their corresponding balances of


this account at year-end:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 6,956,976 12.16
Interior and Local Government 6,071,224 10.62
State Universities and Colleges 5,023,405 8.78
Finance 4,998,896 8.74
Public Works and Highways 4,586,394 8.02
Education 4,280,367 7.48
Agriculture 3,714,425 6.49
Environment and Natural Resources 2,587,867 4.52
Foreign Affairs 2,462,483 4.31
The Judiciary 2,355,331 4.12
Sub-total 43,037,367 75.25
Other Departments/Offices 14,154,591 24.75
Total 57,191,958 100.00

The PA, GHQ-AFP and PAF reported P3.37 billion, P2.20 billion, and
P519.94 million, respectively, or a total of P6.09 billion representing
87.55 percent of the total for DND.

b. School Buildings

Nine departments/offices reported School Buildings account, as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 72,150,944 72.95
State Universities and Colleges 21,173,586 21.41
Public Works and Highways 2,973,370 3.01

124
Amount Percent
Department/Office
(in thousand pesos) to Total
Autonomous Region in Muslim Mindanao 1,026,305 1.04
Other Executive Offices 648,405 0.66
Science and Technology 629,100 0.64
Interior and Local Government 200,655 0.20
National Defense 97,261 0.10
Agrarian Reform 1,800 0.00
Total 98,901,426 100.00

c. Hospitals and Health Centers

The departments/offices which disclosed balances of this account are


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 13,502,555 83.47
State Universities and Colleges 1,671,520 10.33
National Defense 860,362 5.32
Public Works and Highways 75,913 0.47
Justice 27,878 0.17
Interior and Local Government 27,006 0.17
Other Executive Offices 10,692 0.07
Office of the President 884 0.01
Total 16,176,811 100.00

d. Markets

Six departments/offices reported balances of this account, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 16,379 49.45
Agriculture 10,001 30.20
Other Executive Offices 3,586 10.83
State Universities and Colleges 1,855 5.60
Autonomous Region in Muslim Mindanao 1,275 3.85
Agrarian Reform 23 0.07
Total 33,119 100.00

e. Slaughterhouses

The DA, DepEd and SUCs disclosed balances of this account at P316
thousand, P259 thousand and P58 thousand, respectively.

f. Hostels and Dormitories

The departments/offices which disclosed balances of this account are


as follows:

125
Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 320,761 36.77
Science and Technology 220,160 25.24
Commission on Audit 130,957 15.01
Interior and Local Government 72,793 8.34
Education 60,547 6.94
Labor and Employment 53,308 6.11
Agriculture 8,237 0.94
Other Executive Offices 3,223 0.37
Environment and Natural Resources 1,603 0.18
National Defense 520 0.06
Health 287 0.03
Total 872,396 100.00

The balance for SUCs pertained to accounts of 34 SUCs. For the


Department of Science and Technology (DOST), the Philippine
Science High School System and the OSEC reported P218.20 million
and P1.96 million, respectively.

g. Other Structures

Shown below are the departments/offices with balances of this account:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 4,879,444 24.91
State Universities and Colleges 3,972,378 20.28
Agriculture 1,679,278 8.57
Public Works and Highways 1,523,491 7.78
Interior and Local Government 1,505,774 7.69
Education 1,396,526 7.13
Other Executive Offices 1,055,193 5.39
Transportation 803,574 4.10
Foreign Affairs 699,285 3.57
Health 616,896 3.15
Sub-total 18,131,840 92.58
Other Departments/Offices 1,453,421 7.42
Total 19,585,261 100.00

The GHQ-AFP, PAF, PN, and PA reported P1.61 billion, P1.01 billion,
P919.45 million, P821.08 million, respectively, or a total of P4.37
billion representing 89.46 percent of the total for DND.

12.5. Machinery and Equipment

This sub-major group of accounts is composed of the following:

126
Accumulated
Gross Accumulated Carrying Percent
Impairment
Account Amount Depreciation Amount to
Losses
Total
(in thousand pesos)
Machinery 4,231,398 1,937,630 189 2,293,578 1.99
Office Equipment 16,406,539 8,934,705 3,597 7,468,237 6.49
Information and
Communications
Technology Equipment 56,042,196 28,588,289 27,651 27,426,256 23.84
Agricultural and Forestry
Equipment 1,991,831 758,025 23 1,233,783 1.07
Marine and Fishery
Equipment 236,009 75,878 28 160,103 0.14
Airport Equipment 201,878 79,423 - 122,456 0.11
Communication Equipment 20,736,448 11,114,494 731 9,621,223 8.36
Construction and Heavy
Equipment 9,446,809 5,279,230 - 4,167,578 3.62
Disaster Response and
Rescue Equipment 9,886,097 5,837,838 - 4,048,259 3.52
Military, Police and
Security Equipment 27,118,762 13,101,042 - 14,017,720 12.18
Medical Equipment 30,769,477 12,358,093 2,110 18,409,274 16.00
Printing Equipment 123,549 70,038 - 53,512 0.05
Sports Equipment 375,282 147,120 64 228,098 0.20
Technical and Scientific
Equipment 31,850,290 12,677,624 1,126 19,171,540 16.66
Other Machinery and
Equipment 19,629,003 12,990,821 1,651 6,636,531 5.77
Total 229,045,568 113,950,250 37,170 115,058,147 100.00

a. Machinery

Balances of this account were reported by the following departments/


offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 583,113 25.42
National Defense 436,408 19.03
Trade and Industry 283,739 12.37
Finance 260,013 11.34
Agriculture 252,384 11.00
Science and Technology 138,774 6.05
Presidential Communications Operations
Office 53,899 2.35
Education 50,341 2.19
Other Executive Offices 49,375 2.15
Labor and Employment 46,931 2.05
Sub-total 2,154,977 93.96
Other Departments/Offices 138,601 6.04
Total 2,293,578 100.00

The top five SUCs which reported P416.92 million or 71.50 percent of
the total for SUCs are the UPS, Northern Iloilo State University ,
Technological University of the Philippines System (TUPS), Bataan
Peninsula State University and Capiz State University with P328.02
million, P27.87 million, P25.85 million, P21.31 million and P13.88
million, respectively.

127
b. Office Equipment

The departments/offices which disclosed balances of this account are


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 1,724,297 23.09
Public Works and Highways 1,058,350 14.17
Education 1,041,266 13.94
Health 586,166 7.85
Agriculture 475,575 6.37
Environment and Natural Resources 274,716 3.68
Science and Technology 220,745 2.96
Other Executive Offices 201,302 2.70
Finance 194,300 2.60
Transportation 193,302 2.59
Sub-total 5,970,019 79.94
Other Departments/Offices 1,498,219 20.06
Total 7,468,237 100.00

Among the 114 SUCs, the top five for this account are: UPS, Marikina
Polytechnic College, Negros Oriental State University, Isabela State
University, and Mindanao State University System with P383.91
million, P63.91 million, P57.94 million, P56.94 million and P45.31
million, respectively, or a total of P608 million representing 35.26
percent.

c. Information and Communications Technology Equipment

The departments/offices which disclosed balances of this account are


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 10,264,996 37.43
State Universities and Colleges 4,103,668 14.96
Public Works and Highways 1,183,342 4.31
Environment and Natural Resources 1,139,048 4.15
Information and Communications Technology 970,895 3.54
Finance 936,284 3.41
Justice 893,607 3.26
Health 865,190 3.15
Science and Technology 794,202 2.90
Social Welfare and Development 742,202 2.71
Sub-total 21,893,435 79.83
Other Departments/Offices 5,532,822 20.17
Total 27,426,256 100.00

Of the DepEd’s balance, the OSEC reported P10.25 billion or 99.89


percent.

128
d. Agricultural and Forestry Equipment

The following departments/offices reported balances of this account, as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 906,700 73.49
State Universities and Colleges 200,277 16.23
Environment and Natural Resources 98,581 7.99
Justice 7,711 0.63
Agrarian Reform 7,545 0.61
Education 6,292 0.51
Autonomous Region in Muslim Mindanao 4,282 0.35
Other Executive Offices 1,872 0.15
Public Works and Highways 472 0.04
Health 50 0.00
Total 1,233,783 100.00

For the balance of DA, OSEC, PhilFIDA, Philippine Center for


Postharvest Development and Mechanization and BFAR reported
P833.03 million or 91.88 percent, P36.23 million or 4.00 percent,
P18.88 million or 2.08 percent, and P18.56 million or 2.05 percent,
respectively.

e. Marine and Fishery Equipment

This account was reported by only four departments/offices, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 141,840 88.59
State Universities and Colleges 12,567 7.85
Environment and Natural Resources 5,425 3.39
Education 271 0.17
Total 160,103 100.00

The amount for the DA was reported entirely by the BFAR which
includes scuba diving equipment, motor pumps, and incubation tanks.

f. Airport Equipment

The departments/offices which disclosed balances of this account are


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 110,096 89.91
National Defense 9,998 8.16
Interior and Local Government 2,361 1.93
Total 122,456 100.00

129
As reported by the DOTr-OSEC, this account included two units airport
rescue firefighting vehicle, two units hold baggage X-ray inspection
system, one unit cabin baggage X-ray inspection system, and three units
walk-through metal detector which were funded under Japan
International Cooperation Agency Grant Aid Program for the
rehabilitation and recovery of Tacloban airport from Typhoon Yolanda.

g. Communication Equipment

Shown below are the departments/offices with balances of this account:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 5,630,062 58.52
Information and Communications Technology 1,170,658 12.17
Interior and Local Government 976,864 10.15
State Universities and Colleges 276,279 2.87
Transportation 241,971 2.51
Presidential Communications Operations
Office 208,255 2.16
Agriculture 206,119 2.14
Public Works and Highways 113,370 1.18
Health 112,434 1.17
Education 95,149 0.99
Sub-total 9,031,161 93.87
Other Departments/Offices 590,062 6.13
Total 9,621,223 100.00

The GHQ-AFP, PA and PN reported balances of P1.95 billion, P1.76


billion and P1.36 billion, or a total of P5.07 billion or 90.05 percent of
the total reported by the DND.

h. Construction and Heavy Equipment

The departments/offices which disclosed balances of this account are


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 3,248,131 77.94
National Defense 717,492 17.22
Autonomous Region in Muslim Mindanao 84,332 2.02
Metropolitan Manila Development Authority 45,049 1.08
State Universities and Colleges 41,447 0.99
Trade and Industry 10,082 0.24
Presidential Communications Operations
Office 5,635 0.14
Education 3,672 0.09
Agriculture 3,470 0.08
Interior and Local Government 2,579 0.06
Sub-total 4,161,887 99.86
Other Departments/Offices 5,692 0.14
Total 4,167,578 100.00

130
The amount reported by the DPWH pertained to the costs of various
construction equipment used for the implementation of various
infrastructure projects.

i. Disaster Response and Rescue Equipment

The total balance of this account was reported by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Interior and Local Government 3,665,118 90.54
National Defense 106,439 2.63
Metropolitan Manila Development Authority 91,539 2.26
Health 52,177 1.29
Transportation 38,824 0.96
State Universities and Colleges 37,276 0.92
Environment and Natural Resources 9,807 0.24
Labor and Employment 8,579 0.21
Congress of the Philippines 5,311 0.13
Education 4,973 0.12
Sub-total 4,020,045 99.30
Other Departments/Offices 28,214 0.70
Total 4,048,259 100.00

The bulk of this equipment was reported by the BFP at P3.66 billion
representing 90.44 percent of the total for the NG. From the FY 2016
balance of BFP, there was an increase of P298 million representing
costs of various PPEs purchased through the Procurement Service, and
receipt of the 3rd batch of donation from Japan Grant.

j. Military, Police and Security Equipment

The departments/offices shown below had balances of this account as


at year-end:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 9,167,541 65.40
Interior and Local Government 4,177,450 29.80
Other Executive Offices 402,630 2.87
Justice 123,101 0.88
Congress of the Philippines 67,366 0.48
Office of the President 23,617 0.17
State Universities and Colleges 15,249 0.11
Finance 11,905 0.08
Health 7,799 0.06
Agriculture 6,817 0.05
Sub-total 14,003,476 99.90
Other Departments/Offices 14,244 0.10
Total 14,017,720 100.00

131
The GHQ-AFP, PA, PN and PAF disclosed P4.38 billion, P3.26 billion,
P1.17 billion, and P223.49 million, respectively, or a total of P9.03
billion representing 98.55 percent of the total for DND.

The PNP disclosed P3.98 billion representing 95.34 percent of the


amount reported by the DILG. Likewise, the Bureau of Jail
Management and Penology (BJMP) and the Philippine Public Safety
College (PPSC) reported P187.79 million and P6.36 million,
respectively.

k. Medical Equipment

The departments/offices which disclosed balances of this account are


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 13,501,766 73.34
State Universities and Colleges 3,551,020 19.29
National Defense 862,598 4.69
Agriculture 161,236 0.88
Interior and Local Government 109,507 0.59
Other Executive Offices 59,165 0.32
Science and Technology 44,361 0.24
Autonomous Region in Muslim Mindanao 36,220 0.20
Education 28,190 0.15
Justice 15,968 0.09
Sub-total 18,370,031 99.79
Other Departments/Offices 39,243 0.21
Total 18,409,274 100.00

For the DOH, the OSEC and the Commission on Population reported
P13.50 billion or 99.99 percent and P1.27 million or 0.01 percent,
respectively.

l. Printing Equipment

Shown below are the departments/offices which disclosed balances of


this account:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 18,828 35.19
Presidential Communications Operations
Office 7,593 14.19
Public Works and Highways 7,462 13.94
Education 5,413 10.12
Environment and Natural Resources 4,928 9.21
Congress of the Philippines 3,760 7.03
Commission on Audit 1,264 2.36
Science and Technology 1,037 1.94
National Defense 884 1.65

132
Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 841 1.57
Sub-total 52,011 97.20
Other Departments/Offices 1,500 2.80
Total 53,512 100.00

The University of Southeastern Philippines, Leyte Normal University,


Isabela State University and Samar State University disclosed balances
of P4.98 million, P2.56 million, P2.16 million, and P1.45 million,
respectively, or a total of P11.15 million or 59.20 percent for the SUCs.

Under the PCOO, the Bureau of Communication Services and the NPO
reported P4.91 million and P2.69 million, respectively.

m. Sports Equipment

The departments/offices which showed balances of this account are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 88,328 38.72
National Defense 65,819 28.86
Education 31,197 13.68
Other Executive Offices 21,394 9.38
Interior and Local Government 3,745 1.64
Health 3,009 1.32
Office of the President 2,077 0.91
Budget and Management 1,906 0.84
Labor and Employment 1,670 0.73
Science and Technology 1,650 0.72
Sub-total 220,794 96.80
Other Departments/Offices 7,304 3.20
Total 228,098 100.00

The top five SUCs which reported balances of this account are: UPS,
Isabela State University, Cagayan State University, Mountain Province
State Polytechnic College and Sultan Kudarat State University with
P10.81 million, P4.70 million, P4.49 million, P3.72 million, and P2.50
million, respectively, or a total of P26.22 million representing 29.69
percent of the total for SUCs.

The PA reported P59.88 million or 90.98 percent of the total DND.

n. Technical and Scientific Equipment

Balances of this account were reported by the following departments/


offices:

133
Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 4,177,651 21.79
Education 3,751,001 19.57
Science and Technology 3,682,371 19.21
Environment and Natural Resources 1,909,653 9.96
Agriculture 1,512,689 7.89
Public Works and Highways 1,072,126 5.59
National Defense 579,809 3.02
Interior and Local Government 506,496 2.64
Transportation 500,492 2.61
Energy 446,501 2.33
Sub-total 18,138,789 94.61
Other Departments/Offices 1,032,751 5.39
Total 19,171,540 100.00

The UPS, Eastern Samar State University, University of Science and


Technology of Southern Philippines - Cagayan de Oro, Rizal
Technological University and Visayas State University disclosed
P969.47 million, P237.76 million, P198.07 million, P179.75 million,
and P131.44 million, respectively, or a total of P1.72 billion or 41.09
percent of the total for SUCs.

The OSEC, National Museum (NM) and Philippine High School for the
Arts reported P3.68 billion or 98.16 percent, P65.63 million or 1.75
percent, and P3.52 million or 0.09 percent, respectively, for the DepEd.

o. Other Machinery and Equipment

This account refers to other equipment not otherwise classified under


the specific equipment accounts, the total balance of which was
reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 1,806,609 27.22
Agriculture 781,002 11.77
Health 559,420 8.43
Finance 475,819 7.17
Trade and Industry 414,918 6.25
National Defense 397,275 5.99
Education 387,141 5.83
Interior and Local Government 319,583 4.82
Transportation 279,441 4.21
Science and Technology 196,549 2.96
Sub-total 5,617,759 84.65
Other Departments/Offices 1,018,772 15.35
Total 6,636,531 100.00

The UPS, Don Honorio Ventura Technological State University, Nueva


Vizcaya State University, Eulogio "Amang " Rodriguez Institute of
Science and Technology and West Visayas State University reported

134
P369.03 million, P128.27 million, P52.72 million, P46.60 million and
P44.45 million, respectively, or a total of P641.07 million or 35.48
percent of the total for SUCS.

12.6. Transportation Equipment

This sub-major group of accounts consists of the following:

Accumulated
Gross Accumulated Carrying Percent
Impairment
Account Amount Depreciation Amount to
Losses
Total
(in thousand pesos)
Motor Vehicles 33,129,422 19,374,399 1,660 13,753,364 23.99
Aircrafts and
Aircrafts Ground
Equipment 42,769,032 11,079,755 - 31,689,276 55.27
Watercrafts 24,375,663 12,713,450 3,190 11,659,023 20.34
Other
Transportation
Equipment 380,486 150,823 - 229,664 0.40
Total 100,654,603 43,318,427 4,850 57,331,327 100.00

a. Motor Vehicles

The departments/offices which disclosed balances of this account are


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Interior and Local Government 3,895,503 28.32
National Defense 2,581,379 18.77
Public Works and Highways 1,329,065 9.66
Agriculture 738,403 5.37
State Universities and Colleges 716,031 5.21
Environment and Natural Resources 638,904 4.65
Health 507,381 3.69
Transportation 401,708 2.92
Other Executive Offices 401,545 2.92
Education 242,542 1.76
Sub-total 11,452,461 83.27
Other Departments/Offices 2,300,902 16.73
Total 13,753,364 100.00

The PNP disclosed P3.46 billion or 88.91 percent of the total for DILG.
The OSEC and BJMP also reported P204.25 million or 5.24 percent and
P101.70 million or 2.61 percent, respectively.

The PN, GHQ-AFP, PA, and PAF reported P1.03 billion, P833.54
million, P395.45 million and P181.30 million, respectively, or a total of
P2.44 billion representing 94.66 percent of the total for the DND.

135
b. Aircrafts and Aircrafts Ground Equipment

Shown below are the balances of this account reported by six


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 31,159,879 98.33
Transportation 450,070 1.42
Environment and Natural Resources 51,905 0.16
Interior and Local Government 23,016 0.07
State Universities and Colleges 2,858 0.01
Agriculture 1,548 0.01
Total 31,689,276 100.00

In the DND, the GHQ-AFP, PN and PAF disclosed P28.03 billion,


P1.63 billion and P1.49 billion, respectively, or a total of P31.16 billion
representing 98.32 percent of the total Aircrafts and Aircrafts Ground
Equipment of the NG. The amount for DOTr was solely reported by the
PCG.

c. Watercrafts

The departments/offices which disclosed balances of this account are


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 5,335,464 45.76
National Defense 4,837,088 41.49
Public Works and Highways 483,422 4.15
Environment and Natural Resources 403,679 3.46
Agriculture 364,141 3.12
Interior and Local Government 131,051 1.12
State Universities and Colleges 39,437 0.34
Metropolitan Manila Development Authority 32,663 0.28
Labor and Employment 20,567 0.18
Health 6,096 0.05
Sub-total 11,653,607 99.95
Other Departments/Offices 5,416 0.05
Total 11,659,023 100.00

The PCG reported solely the whole amount for DOTr which refers to
search and rescue vessels, small crafts, rubber boats, aluminum boats,
etc. The PN and the GHQ-AFP primarily reported the balance for the
DND with P2.39 billion and P2.29 billion, respectively.

d. Other Transportation Equipment

The departments/offices which disclosed balances of this account are


as follows:

136
Amount Percent
Department/Office
(in thousand pesos) to Total
Interior and Local Government 136,232 59.32
National Defense 47,222 20.56
Agriculture 20,905 9.10
State Universities and Colleges 8,539 3.72
Environment and Natural Resources 5,771 2.51
Metropolitan Manila Development Authority 3,262 1.42
Social Welfare and Development 3,100 1.35
Agrarian Reform 1,243 0.54
National Economic and Development
Authority 671 0.29
Transportation 582 0.25
Sub-total 227,527 99.07
Other Departments/Offices 2,137 0.93
Total 229,664 100.00

Under the DILG, only the PNP and PPSC reported balances of this
account with P122.10 million or 89.63 percent and P14.13 million or
10.37 percent, respectively.

12.7. Furniture, Fixtures and Books

The total Furniture, Fixtures and Books is composed of the following


accounts:

Accumulated
Gross Accumulated Carrying Percent
Impairment
Account Amount Depreciation Amount to
Losses
Total
(in thousand pesos)
Furniture and
Fixtures 15,343,362 6,212,604 1,917 9,128,840 89.90
Books 2,738,022 1,710,791 1,555 1,025,676 10.10
Total 18,081,384 7,923,395 3,472 10,154,516 100.00

a. Furniture and Fixtures

The total of this account was reported by the following departments/


offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 4,410,052 48.31
State Universities and Colleges 1,318,858 14.45
The Judiciary 384,670 4.21
Science and Technology 355,321 3.89
Agriculture 351,029 3.85
Public Works and Highways 336,839 3.69
Finance 313,576 3.44
Health 231,667 2.54
Environment and Natural Resources 178,477 1.96

137
Amount Percent
Department/Office
(in thousand pesos) to Total
Autonomous Region in Muslim Mindanao 170,586 1.87
Sub-total 8,051,074 88.19
Other Departments/Offices 1,077,766 11.81
Total 9,128,840 100.00

The OSEC reported P4.38 billion or 99.38 percent of the total for
DepEd.

b. Books

Shown below are the departments/offices with balances of this account:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 609,903 59.46
Education 215,375 21.00
Other Executive Offices 71,291 6.95
Interior and Local Government 57,996 5.65
Science and Technology 10,527 1.03
Health 10,461 1.02
Autonomous Region in Muslim Mindanao 10,368 1.01
The Judiciary 10,016 0.98
Finance 6,388 0.62
Labor and Employment 5,963 0.58
Sub-total 1,008,289 98.30
Other Departments/Offices 17,387 1.70
Total 1,025,676 100.00

The top five SUCs which reported P236.02 million or 38.70 percent of
the total for SUCs are the UPS, Negros Oriental State University,
Cagayan State University, Batangas State University and Bohol Island
State University with P146.86 million, P29.29 million, P21.12 million,
P19.79 million and P18.96 million, respectively.

12.8. Leased Assets

Leased Assets is a sub-major group of accounts used in the books of the


lessee under a finance lease to recognize the value of an asset being leased.
This sub-major group of accounts as reported in the books of the agencies
concerned consist of the following accounts:

Gross Accumulated Carrying


Amount Depreciation Amount Percent
Account
to Total
(in thousand pesos)
Leased Assets, Land 805,934 - 805,934 36.11
Leased Assets, Buildings and Other
Structures 1,141,466 255,918 885,548 39.68
Leased Assets, Machinery and
Equipment 613,321 86,389 526,932 23.61
Leased Assets, Transportation
Equipment 9,671 1,750 7,921 0.35

138
Gross Accumulated Carrying
Amount Depreciation Amount Percent
Account
to Total
(in thousand pesos)
Other Leased Assets 7,917 2,343 5,574 0.25
Total 2,578,309 346,400 2,231,909 100.00

The DOF books showed a total of P942.60 million for Leased Assets.
Particularly, the BIR reported Leased Assets, Land of P299.85 million and
Leased Assets, Buildings and Other Structures of P642.23 million, a total
of P942.07 million or 99.94 percent of total Leased Asset of the DOF.

12.9. Leased Assets Improvements

Leased Assets Improvements is a sub-major group of accounts used to


recognize the cost of improvements and alterations made on assets under
operating lease which are used for government operations or for
commercial and/or income generating purposes. These sub-major groups
of accounts as reported in the books of the agencies concerned consist of
the following accounts:

Gross Accumulated Carrying


Amount Depreciation Amount Percent
Account
to Total
(in thousand pesos)
Leased Assets Improvements, Land 23,184 9,905 13,279 5.22
Leased Assets Improvements,
Buildings 456,579 231,707 224,872 88.43
Other Leased Assets Improvements 31,733 15,575 16,158 6.35
Total 511,496 257,187 254,309 100.00

The top departments/offices that reported Leased Assets Improvements are


DFA for P106.21 million or 41.76 percent, DTI for P29.51 million or 11.60,
and DA for P27.12 million, or 10.66 percent.

12.10. Heritage Assets

This sub-major group of PPE 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 is accounted under the following accounts:

Gross Accumulated Carrying


Percent
Account Amount Depreciation Amount
to Total
(in thousand pesos)
Historical Buildings 280,138 473 279,665 34.91
Works of Arts and Archeological
Specimens 483,520 2,740 480,780 60.02
Other Heritage Assets 166,200 125,580 40,620 5.07
Total 929,858 128,793 801,065 100.00

139
a. Historical Buildings

The department/offices which disclosed balances of this account are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 270,449 96.70
Education 9,216 3.30
Total 279,665 100.00

Among the OEOs, only the NHCP and NCCA reported this asset
account with P253.92 million or 93.89 percent and P16.53 million or
6.11 percent, respectively.

b. Works of Arts and Archeological Specimens

The departments/offices which disclosed balances of this account are


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 287,275 59.75
State Universities and Colleges 130,897 27.23
Tourism 37,027 7.70
Other Executive Offices 17,938 3.73
Finance 2,992 0.62
Commission on Audit 2,613 0.54
Congress of the Philippines 1,200 0.25
National Defense 560 0.12
Foreign Affairs 148 0.03
Health 86 0.02
Sub-total 480,737 99.99
Other Departments/Offices 43 0.01
Total 480,780 100.00

The NM reported the entire amount of Works of Arts and Archeological


Specimens for DepEd.

c. Other Heritage Assets

The following departments/offices recognized Other Heritage Assets in


their respective books of accounts:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 22,217 54.70
Education 11,503 28.32
Other Executive Offices 6,900 16.99
Total 40,620 100.00

140
Among the agencies of the DND, the PAF reported the whole amount
for the department. This includes environmental conservation areas and
nature reserves, natural landmarks of historical interest, areas of land
based on or concerned with events in history, and track of lands
declared as public property by the NG with a view to its preservation
and development for purposes of recreation and culture.

12.11. Service Concession-Tangible Assets

This sub-major group of accounts consists of Other Service Concession


Assets of P13.25 billion, net of Accumulated Depreciation of P5.36 billion.
The entire amount, reported by DepEd, pertained to the completed sub-
projects under Public-Private Partnership (PPP) for school infrastructure
projects.

12.12. Other Property, Plant and Equipment

Details of this sub-major group of accounts are as follows:

Accumulated
Gross Accumulated Carrying Percent
Impairment
Account Amount Depreciation Amount to
Losses
Total
(in thousand pesos)
Work/Zoo Animals 220,558 10,202 - 210,356 5.47
Other Property, Plant
and Equipment 6,776,991 3,138,523 683 3,637,785 94.53
Total 6,997,549 3,148,725 683 3,848,141 100.00

a. Work/Zoo Animals

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Transportation 75,899 36.08
Interior and Local Government 63,331 30.11
National Defense 30,406 14.45
Agriculture 28,720 13.65
State Universities and Colleges 6,132 2.91
Other Executive Offices 3,894 1.85
Education 971 0.46
Environment and Natural Resources 949 0.45
Congress of the Philippines 54 0.03
Total 210,356 100.00

The PCG reported the whole amount for the DOTr while PNP reported
the whole amount for DILG.

b. Other Property, Plant and Equipment

The departments/offices with balances of this account are as follows:

141
Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 907,944 24.96
Health 494,329 13.59
Science and Technology 467,898 12.86
Environment and Natural Resources 348,747 9.59
Transportation 313,222 8.61
Education 231,466 6.36
Agriculture 125,934 3.46
Trade and Industry 116,466 3.20
Other Executive Offices 108,262 2.98
Interior and Local Government 87,745 2.41
Sub-total 3,202,012 88.02
Other Departments/Offices 435,773 11.98
Total 3,637,785 100.00

Among the 114 SUCs, the top five to this account are: Philippine
Merchant Marine Academy, Technological University of the
Philippines System, UPS, Jose Rizal Memorial State University, and
Laguna State Polytechnic University with P252.61 million, P61.58
million, P58.49 million, P49.54 million and P46.52 million,
respectively, or a total of P468.73 million representing 51.63 percent of
the total reported by SUCs.

12.13. Construction in Progress

Construction in Progress (CIP) represents the ongoing projects undertaken


by various government agencies which include the contract cost and the
related expenses. The CIP account will be reclassified to the appropriate
asset account upon completion of the project. The components of this
account are as follows:

Amount Percent
Account
(in thousand pesos) to Total
Land Improvements 18,793,783 1.66
Infrastructure Assets 1,023,813,674 90.42
Buildings and Other Structures 89,657,747 7.92
Leased Assets 1,439 0.00
Leased Assets Improvements 21,608 0.00
Total 1,132,288,251 100.00

a. Construction in Progress-Land Improvements

The departments/offices with balances of Construction in Progress-


Land Improvements are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Environment and Natural Resources 18,235,915 97.03
State Universities and Colleges 201,028 1.07
National Defense 136,077 0.72
Science and Technology 64,332 0.34

142
Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 60,323 0.32
National Economic and Development
Authority 33,068 0.18
Tourism 21,101 0.11
Education 10,797 0.06
Interior and Local Government 7,121 0.04
Health 6,346 0.03
Sub-total 18,776,108 99.91
Other Departments/Offices 17,675 0.09
Total 18,793,783 100.00

Of the total Construction in Progress-Land Improvement of DENR,


almost 100 percent pertained the OSEC.

b. Construction in Progress-Infrastructure Assets

The departments/offices with balances of Construction in Progress-


Infrastructure Assets are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 964,972,437 94.25
Transportation 32,039,470 3.13
Agriculture 13,151,539 1.28
Autonomous Region in Muslim Mindanao 5,635,372 0.55
Agrarian Reform 3,624,651 0.35
Environment and Natural Resources 1,736,964 0.17
State Universities and Colleges 514,854 0.05
National Defense 471,716 0.05
Health 440,369 0.04
National Economic and Development
Authority 323,979 0.03
Sub-total 1,022,911,350 99.91
Other Departments/Offices 902,324 0.09
Total 1,023,813,674 100.00

The various ongoing infrastructure projects of DPWH under this


account was entirely reported by the OSEC.

c. Construction in Progress-Leased Assets

Among the departments/offices of the NG, only the DepEd-OSEC


reported balance of this account.

d. Construction in Progress-Leased Assets Improvements

This account was reported by three departments, as follows:

143
Amount Percent
Department/Office
(in thousand pesos) to Total
National Economic and Development
Authority 19,568 90.56
Environment and Natural Resources 1,476 6.83
Trade and Industry 564 2.61
Total 21,608 100.00

Among the agencies of NEDA, the Philippine Statistics Authority and


Tariff Commission reported P10.57 million or 54.01 and P9 million or
45.99 percent, respectively.

13. BIOLOGICAL ASSETS

This major group of accounts is divided into two sub-major groups, as follows:

Accumulated
Gross Carrying
Impairment Percent
Sub-Major Group of Accounts Amount Amount
Losses to Total
(in thousand pesos)
Bearer Biological Assets 552,805 959 551,846 37.33
Consumable Biological Assets 926,426 9 926,417 62.67
Total 1,479,231 968 1,478,263 100.00

13.1. Bearer Biological Assets

This sub-major group of accounts is composed of the following:

Accumulated
Gross Carrying
Impairment Percent
Account Amount Amount
Losses to Total
(in thousand pesos)
Breeding Stocks 342,586 163 342,423 62.05
Livestock 89,294 14 89,280 16.18
Trees, Plants and Crops 107,944 782 107,162 19.42
Aquaculture 9,599 - 9,599 1.74
Other Bearer Biological Assets 3,382 - 3,382 0.61
Total 552,805 959 551,846 100.00

The DA disclosed a total balance of P374.90 million, of which OSEC,


Philippine Carabao Center (PCC), and BFAR reported P290.78 million,
P74.27 million and P9.85 million, respectively.

13.2. Consumable Biological Assets

This sub-major group of accounts consists of the following:

144
Accumulated
Gross Carrying Percent
Impairment
Account Amount Amount to Total
Losses
(in thousand pesos)
Livestock Held for
Consumption/Sale/
Distribution 890,452 9 890,443 96.12
Trees, Plants and Crops Held
for Consumption/Sale/
Distribution 27,654 - 27,654 2.99
Agricultural Produce Held for
Consumption/Sale/
Distribution 1,790 - 1,790 0.19
Aquaculture for Consumption/
Sale/Distribution 6,401 - 6,401 0.69
Other Consumable Biological
Assets 129 - 129 0.01
Total 926,426 9 926,417 100.00

Only two agencies under the DA, namely: OSEC and PCC reported
P757.43 million or 87.50 percent and P108.18 million or 12.50 percent,
respectively. The amount reported by the OSEC includes purchases of
animals and crops for dispersal to LGUs beneficiaries and other
program/project implementation requiring distribution of biological assets.

14. INTANGIBLE ASSETS

This major group of accounts comprised of the following sub-major groups of


accounts:

Accumulated
Gross Accumulated Impairment Carrying Percent
Sub-Major Group of Amount Amortization Losses Amount to
Accounts
Total
(in thousand pesos)
Intangible Assets 5,977,522 1,750,319 15,877 4,211,326 92.89
Service Concession-
Intangible Assets 40 10 - 30 0.00
Development in Progress 322,373 - - 322,373 7.11
Total 6,299,935 1,750,329 15,877 4,533,729 100.00

14.1. Intangible Assets

This sub-major group of accounts consists of the following:

Accumulated
Gross Accumulated Carrying Percent
Impairment
Account Amount Amortization Amount to
Losses
(in thousand pesos) Total

Patents/Copyrights 92,489 - - 92,489 2.19


Computer Software 4,831,971 1,672,041 15,877 3,144,052 74.66
Websites 2,119 512 - 1,607 0.04

145
Accumulated
Gross Accumulated Carrying Percent
Impairment
Account Amount Amortization Amount to
Losses
(in thousand pesos) Total

Other Intangible Assets 1,050,943 77,766 - 973,177 23.11


Total 5,977,522 1,750,319 15,877 4,211,326 100.00

a. Patents/Copyrights

Only three departments/offices reported Patents/Copyrights, as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Science and Technology 77,707 84.02
Education 14,594 15.78
State Universities and Colleges 188 0.20
Total 92,489 100.00

Among the attached agencies of the DOST, Metals Industry Research


and Development Center solely reported Patents/Copyrights which
pertained to the development of prototypes.

For the DepEd, the National Council for Children’s Television (NCCT)
and OSEC reported P7.80 million and P6.79 million, respectively. The
amount reported by the NCCT represents the full payment to CBN Asia,
Inc. of the pilot plus 12 episodes of the television program for the
children entitled “OYAYI”.

b. Computer Software

The departments/offices which reported balances of this account are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 557,414 17.73
The Judiciary 516,286 16.42
Information and Communications Technology 434,869 13.83
Environment and Natural Resources 285,873 9.09
Education 224,919 7.15
Public Works and Highways 190,540 6.06
Trade and Industry 164,993 5.25
Commission on Audit 129,323 4.11
State Universities and Colleges 97,156 3.09
Science and Technology 93,705 2.98
Sub-total 2,695,080 85.72
Other Departments/Offices 448,972 14.28
Total 3,144,052 100.00

Of the balance for DOF, the BIR reported P420.27 million or 75.40

146
percent pertaining to developed, contracted and purchased software and
systems.

c. Websites

Only four departments/offices reported Websites, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 1,308 81.40
Trade and Industry 150 9.34
State Universities and Colleges 99 6.15
Health 50 3.11
Total 1,607 100.00

Among the attached agencies of the DOF, the Securities and Exchange
Commission (SEC) reported solely the balance of Websites.

d. Other Intangible Assets

At year-end, the departments/offices which reported balances of this


account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Environment and Natural Resources 955,516 98.19
Labor and Employment 12,154 1.25
Other Executive Offices 3,780 0.39
Science and Technology 1,600 0.16
Health 115 0.01
State Universities and Colleges 12 0.00
Total 973,177 100.00

The balance of Other Intangible Assets of DENR which was reported


entirely by National Mapping and Resource Information Authority
pertained to the cost of airborne Interferometric Synthetic Aperture
Radar data for the production of nationwide Digital Elevation Model
and Ortho-Radar Imagery.

14.2. Development in Progress

This sub-major group of accounts consists of the following accounts:

Amount Percent
Account
(in thousand pesos) to Total
Patents/Copyrights 47,395 14.70
Computer Software 254,879 79.06
Other Intangible Assets 20,100 6.24
Total 322,374 100.00

147
This sub-major group of accounts was reported by the following
departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 106,487 33.03
Budget and Management 100,000 31.02
Science and Technology 54,813 17.00
Other Executive Offices 16,371 5.08
Trade and Industry 14,851 4.61
Information and Communications Technology 12,160 3.77
State Universities and Colleges 10,894 3.38
Labor and Employment 2,756 0.86
Tourism 2,360 0.73
Health 1,680 0.52
Total 322,373 100.00

The amount reported by the DOF pertained to BTr and SEC in the amount
P86.90 million or 81.60 percent and P19.59 million or 18.40 percent,
respectively.

15. OTHER NON-CURRENT ASSETS

This major group of accounts reported by the NG consists of the following sub-
major groups of accounts:

2017 2016 (Restated)


Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Prepayments 2,491,950 2.14 1,376,343 1.22
Deposits 11,549,664 9.92 11,277,888 9.99
Other Assets 102,408,255 87.94 100,194,489 88.79
Total 116,449,869 100.00 112,848,720 100.00

15.1. Prepayments

The total Prepayments of the NG of P2.49 billion is broken down as


follows:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Advances to Contractors 576,571 23.14 544,067 39.53
Prepaid Rent 30,118 1.21 29,021 2.11
Prepaid Registration 35 0.00 187 0.01
Prepaid Insurance 9,797 0.39 7,155 0.52
Other Prepayments 1,875,429 75.26 795,913 57.83
Total 2,491,950 100.00 1,376,343 100.00

148
a. Advances to Contractors

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 190,503 33.04
State Universities and Colleges 106,903 18.54
Other Executive Offices 101,136 17.54
Environment and Natural Resources 66,589 11.55
Finance 51,825 8.99
Social Welfare and Development 30,502 5.29
The Judiciary 8,540 1.48
Agriculture 7,170 1.24
Congress of the Philippines 5,096 0.88
National Economic and Development
Authority 3,711 0.64
Sub-total 571,975 99.20
Other Departments/Offices 4,596 0.80
Total 576,571 100.00

For the DND, the PA, GHQ-AFP, PN and Philippine Military Academy
reported P88.97 million or 46.70 percent, P85.82 million or 45.05
percent, P10.31 million or 5.41 percent, and P5.40 million or 2.83
percent, respectively.

Among the 114 SUCs, only 13 reported balances of this account led by
the Eulogio "Amang" Rodriguez Institute of Science and Technology,
Carlos C. Hilado Memorial State College, Romblon State University,
Siquijor State College and Marinduque State College which reported
P32 million or 29.93 percent, P22.81 million or 21.34 percent, P13.34
million or 12.48 percent, P10.60 million or 9.91 percent, and P9.86
million or 9.23 percent, respectively.

Of the balance for OEO, P96.89 million or 95.80 percent pertained to


the cost of the Housing and Land Use Regulatory Board-Central Office
building.

b. Prepaid Rent

This account was reported by only nine departments/offices, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Trade and Industry 14,794 49.12
State Universities and Colleges 7,519 24.97
Social Welfare and Development 2,244 7.45
Office of the Vice-President 1,997 6.63
National Economic and Development
Authority 1,830 6.08
Other Executive Offices 1,285 4.27
Commission on Human Rights 225 0.75

149
Amount Percent
Department/Office
(in thousand pesos) to Total
Environment and Natural Resources 140 0.47
Justice 83 0.28
Total 30,118 100.00

For DTI, only the IPO and Construction Industry Authority of the
Philippines (CIAP) have reported balances of P14.55 million or 98.38
percent and P240 thousand or 1.62 percent, respectively.

c. Prepaid Registration

Among the departments/offices of the NG, only three reported balances


of this account, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Trade and Industry 16 45.28
Environment and Natural Resources 10 30.01
Social Welfare and Development 9 24.71
Total 35 100.00

The total Prepaid Registration of DTI was reported solely by the CIAP.

d. Prepaid Insurance

At year-end, the departments/offices which reported balances of this


account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 3,487 35.59
National Defense 2,802 28.60
State Universities and Colleges 2,456 25.07
Environment and Natural Resources 506 5.17
Trade and Industry 215 2.20
National Economic and Development
Authority 142 1.45
Other Executive Offices 111 1.13
Budget and Management 62 0.64
Commission on Human Rights 15 0.15
Total 9,797 100.00

The balance for the DSWD was reported entirely by the OSEC while
the AFP-Health Service Command accounted the whole amount for the
DND.

e. Other Prepayments

The departments/offices which reported balances of this account are as

150
follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 1,095,599 58.42
Public Works and Highways 542,803 28.94
Social Welfare and Development 203,327 10.84
Finance 25,521 1.36
Interior and Local Government 3,716 0.20
Environment and Natural Resources 2,972 0.16
State Universities and Colleges 1,049 0.06
Other Executive Offices 241 0.01
The Judiciary 88 0.00
Trade and Industry 70 0.00
Sub-total 1,875,386 100.00
Other Departments/Offices 43 0.00
Total 1,875,429 100.00

The PN and GHQ-AFP reported P916.85 million and P173.71 million


or a total of P1.09 billion or 99.54 percent for the DND.

15.2. Deposits

This sub-major group of accounts includes the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Deposit on Letters of Credit 6,312,403 54.65 8,171,241 72.45
Guaranty Deposits 5,214,495 45.15 3,031,964 26.89
Other Deposits 22,766 0.20 74,683 0.66
Total 11,549,664 100.00 11,277,888 100.00

a. Deposit on Letters of Credit

The departments/offices which reported Deposit on Letters of Credit


are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 5,117,606 81.07
Interior and Local Government 1,176,086 18.63
Transportation 18,711 0.30
Total 6,312,403 100.00

The GHQ-AFP reported P4.14 billion or 80.88 percent on account


Deposit on Letters of Credit representing deposits with AGDBs for the
purchase of firearms, ammunitions, vehicular and communication
requirements of the AFP contracted with foreign suppliers and the cost
of freight forwarding.

151
b. Guaranty Deposits

This account represents deposits made by the NGAs for suppliers to


secure or guarantee performance of services or delivery of supplies
contracted and/or the deposits with AGDBs to secure or guaranty the
compliance with the terms of agreement.

The departments/offices which reported balances of this account are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 4,612,299 88.45
Public Works and Highways 338,267 6.49
Agriculture 105,649 2.03
Trade and Industry 71,043 1.36
State Universities and Colleges 23,409 0.45
Finance 22,253 0.43
Social Welfare and Development 9,744 0.19
Other Executive Offices 7,661 0.15
Commission on Audit 4,623 0.09
Information and Communications Technology 4,114 0.08
Sub-Total 5,199,062 99.70
Other Departments/Offices 15,433 0.30
Total 5,214,495 100.00

The GHQ-AFP reported Guaranty Deposits of P4.61 billion or 99.99


percent which represents deposits to secure or guarantee the compliance
of certain requirements for the delivery of contracted services and/or
logistical needs of the AFP.

c. Other Deposits

The departments/offices which reported Other Deposits are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 7,610 33.43
Agriculture 3,151 13.84
National Economic and Development
Authority 2,530 11.11
Other Executive Offices 2,509 11.02
Office of the Ombudsman 1,535 6.74
State Universities and Colleges 1,518 6.67
Finance 1,126 4.95
Public Works and Highways 788 3.46
Science and Technology 778 3.42
Social Welfare and Development 644 2.83
Sub-Total 22,189 97.47
Other Departments/Offices 577 2.53
Total 22,766 100.00

152
The total Other Deposits of DND was reported solely by AFP-
Commissary and Exchange Service (CES). The BFAR reported solely
the balance for the DA.

15.3. Other Assets

This sub-major group of accounts includes the following:

Accumulated
Gross Carrying
Impairment Percent
Account Amount Amount
Losses to Total
(in thousand pesos)
Acquired Assets 67,133,501 1,029,000 66,104,501 64.55
Foreclosed Property/Assets 8,525 - 8,525 0.01
Forfeited Property/Assets 127,523 - 127,523 0.12
Confiscated Property/Assets 607,951 - 607,951 0.59
Abandoned/Surrendered
Property/Assets 14,818,594 - 14,818,594 14.47
Other Assets 20,847,056 105,896 20,741,160 20.25
Total 103,543,150 1,134,896 102,408,254 100.00

a. Acquired Assets

The DOF-BTr disclosed P66.04 billion or 99.90 percent of the total


Acquired Assets of the NG, details are as follows:

Amount
Particulars
(in thousand pesos)
1. Part of the transferred assets under Proclamation No. 50
wherein disposition and sale are being handled by PMO
and National Power Corporation (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 56,226,108
2. Part of the transferred assets from DBP, PNB and
Philippine Guarantee and Investment Corporation in the
form of financial assets 4,629,764
3. NG holdings in the capital stock of Philippine Air Lines
(PAL) pursuant to Administrative Order (A.O.) No. 242
dated October 21, 1991 and Proclamation No. 50 dated
December 8, 1986 1,050,000
4. Equity in the PNCC transferred by GFIs to NG 1,262,561
5. ROPAs transferred by Al-Amanah Islamic Investment
Bank of the Philippines to NG in exchange for a
corresponding reduction in NG deposits 350,958
6. Real and other property obtained and transferred by the
CB-BOL to the ROP through the BTr as partial
settlement of the liability of CB-BOL to the NG 3,404,266
7. Value of real property known as the Boracay Mansion
per COA’s appraisal as of March 14, 2008 which was
ordered forfeited in favor of the government by the
Sandiganbayan in its decision dated September 12, 2007 142,918
8. Nominal value of P1.00 of National Development
Company (NDC)’s shares of stocks in FILSYN which

153
Amount
Particulars
(in thousand pesos)
was transferred to the NG pursuant to Settlement
Agreement dated December 30, 2003 between NDC and
NG/PMO
Total 67,066,576
Less: Accumulated Impairment Losses pertaining to NG
holdings in the capital stock of PAL (1,029,000)
Net Amount 66,037,576

b. Foreclosed Property/Assets

Of the total NG’s Foreclosed Property/Assets, the BTr and DAR-OSEC


reported P8.15 million or 95.55 percent and P379.50 thousand or 4.45
percent, respectively.

c. Forfeited Property/Assets

The total Forfeited Property/Assets pertained to the following property


forfeited by the BIR as payment of tax debts:

Amount
Particulars
(in thousand pesos)
1. Land 110,976
2. Other Structures 75
3. Office Equipment 5,401
4. Other Property, Plant and Equipment 14
5. Equity instruments 11,056
Total 127,523

d. Confiscated Property/Assets

As at year-end, the confiscated property/assets for which ownership has


been finally decided in favor of the government are reported by the
following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 236,103 38.83
Environment and Natural Resources 232,965 38.32
Justice 137,501 22.62
Information and Communications Technology 1,382 0.23
Total 607,951 100.00

The BOC reported the whole amount for DOF. The OSEC reported the
whole amount for DENR which includes the value of
confiscated/seized forest products, conveyance tools, compliments and
equipment decided by court to be in favor of the government.

The balance for DOJ pertained to the jewelry collections that were

154
confiscated/surrendered to PCGG. The amount of P137,500,701.81
used in recognizing these assets in the books of PCGG was based on
Sotheby’s appraisal in March 2003.

e. Abandoned/Surrendered Property/Assets

This account represents the abandoned or surrendered property or assets


for which ownership has been finally decided in favor of the following
departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Justice 14,818,350 100.00
Education 236 0.00
Other Departments 8 0.00
Total 14,818,594 100.00

The total amount for DOJ represents Abandoned/Surrendered


Property/Assets of PCGG, the details are as follows:

Amount
Particulars
(in thousand pesos)
Land 14,535,046
Land Improvements 12,411
Buildings 26,536
Office Equipment 234,841
Furniture and Fixtures 9,516
Total 14,818,350

f. Other Assets

The departments/offices with balances of Other Assets account are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 8,753,395 42.20
Agriculture 1,778,762 8.58
National Defense 1,650,502 7.96
State Universities and Colleges 1,592,313 7.68
Health 1,338,335 6.45
Public Works and Highways 1,254,192 6.05
Other Executive Offices 1,047,523 5.05
Science and Technology 609,268 2.94
Justice 529,390 2.55
Education 416,905 2.01
Sub-total 18,970,585 91.46
Other Departments/Offices 1,770,575 8.54
Total 20,741,160 100.00

The BTr disclosed P3.99 billion or 45.57 percent of the DOF’s Other Assets

155
consisting of the following:

Amount
Particulars
(in thousand pesos)
1. SMPC shares owned by the NDC which were
transferred to the NG to settle NDC’s obligations
pursuant to MOA dated December 18, 2015 amongst
DOF, BTr, PMO and NDC 3,930,363
2. Other Bonds 54,994
3. Appraised value as of November 10, 2005 of diamonds
in the Treasury vault deposited by various government
agencies which were escheated in favor of the ROP per
Court Order dated May 5, 1997 2,143
4. Obsolete Fixed Assets, LBP-ARF 1,392
Total 3,988,893

The DA-OSEC reported P1.71 billion or 96.10 percent which consists


of obsolete and unserviceable assets awaiting final disposition as well
as those assets still serviceable but are no longer being used.

Out of the total Other Assets for DND, the PAF reported P1.32 billion
or 79.86 percent.

16. FINANCIAL LIABILITIES

Financial Liabilities is composed of the following sub-major groups of accounts:

2017 2016 (Restated)


Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Payables 299,249,374 30.31 279,130,440 31.64
Bills/Bonds/Loans Payable 687,971,355 69.69 603,094,922 68.36
Total 987,220,729 100.00 882,225,362 100.00

Schedule 16, Volume II of this Report shows the list of agencies with balances of
Financial Liabilities as of the end of the year.

16.1. Payables

This sub-major group of accounts consists of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Accounts Payable 102,734,841 34.33 95,672,364 34.28
Due to Officers and
Employees 14,278,950 4.77 13,899,125 4.98
Notes Payable 84,546,704 28.25 84,535,252 30.29
Interest Payable 82,690,530 27.63 79,725,643 28.56
Operating Lease Payable 46,346 0.02 91,511 0.03

156
2017 2016 (Restated)
Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Finance Lease Payable 449,669 0.15 185,890 0.06
Awards and Rewards Payable 1,316,203 0.44 1,316,215 0.47
Tax Refunds Payable 13,186,131 4.41 3,704,440 1.33
Total 299,249,374 100.00 279,130,440 100.00

a. Accounts Payable

This account represents unpaid obligations arising from the normal


course of trade and business operation. The departments/offices which
reported balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 17,949,072 17.47
State Universities and Colleges 12,876,692 12.53
Finance 10,770,129 10.48
Health 10,404,314 10.13
Education 7,823,038 7.62
Transportation 6,626,787 6.45
Other Executive Offices 6,032,454 5.87
Social Welfare and Development 4,558,502 4.44
Interior and Local Government 3,715,014 3.62
National Defense 2,723,749 2.65
Sub-Total 83,479,751 81.26
Other Departments/Offices 19,255,090 18.74
Total 102,734,841 100.00

The OSEC reported P17.95 billion or 99.99 percent of the total for the
DPWH.

Among the SUCs, the UPS topped the list with P8.06 billion
representing 7.84 percent of the total Accounts Payable of the NG.

The BOC and BTr disclosed P5.41 billion or 50.24 percent and P3.22
billion and 29.91 percent, respectively, of the total of P10.77 billion
reported by DOF.

The OSEC reported P10.32 billion or 99.18 percent of the total for the
DOH.

b. Due to Officers and Employees

This account represents unpaid claims of officers and employees for


salaries, benefits and other emoluments including authorized
reimbursements. The departments/offices reported balances of this
account as follows:

157
Amount Percent
Department/Office
(in thousand pesos) to Total
Education 4,374,663 30.64
National Defense 2,737,696 19.17
Interior and Local Government 2,127,067 14.90
Health 1,033,919 7.24
Finance 894,640 6.27
State Universities and Colleges 744,165 5.21
Foreign Affairs 350,753 2.46
Social Welfare and Development 299,229 2.10
Justice 244,870 1.71
Public Works and Highways 229,913 1.61
Sub-Total 13,036,915 91.30
Other Departments/Offices 1,242,035 8.70
Total 14,278,950 100.00

The OSEC reported P4.37 billion or 99.92 percent of the total for
DepEd.

The PA and PN reported P1.37 billion and P1.06 billion or 49.89


percent and 38.85 percent, respectively, of the total for DND.

The National Headquarters of the PNP reported balance of P1.57 billion


or 73.94 percent of the total for DILG.

c. Notes Payable

Only the DOF and SUCs reported balances of this account as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 84,546,544 100.00
State Universities and Colleges 160 0.00
Total 84,546,704 100.00

The total for the DOF was reported solely by the BTr, which represents
promissory notes issued to BSP, IMF, International Bank for
Reconstruction and Development (IBRD), ADB and Multilateral
Investment Guarantee Agency (MIGA) for payment of subscription to
the capital stock of IMF, IBRD, ADB and MIGA.

Among the SUCs, the Nueva Ecija University of Science and


Technology reported Notes Payable of P160.45 thousand.

d. Interest Payable

Only three departments/offices reported balances of this account as


follows:

158
Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 82,689,934 100.00
State Universities and Colleges 560 0.00
Science and Technology 36 0.00
Total 82,690,530 100.00

The amount reported by the DOF pertained to accrued interest on the


re-issuance of Treasury Bonds and outstanding NG debt of the BTr.

e. Operating Lease Payable

The National Printing Office of PCOO reported solely the Operating


Lease Payable of P46.35 million. This pertained to accrued expenses
on the lease of machinery from private printers used for specialized
forms.

f. Finance Lease Payable

This account, which has counterpart leased asset account(s), is used to


recognize a liability arising from a finance lease contract.

Seven departments/offices reported balances as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 298,058 66.28
Finance 79,854 17.76
Transportation 44,785 9.96
Other Executive Offices 25,836 5.75
Trade and Industry 548 0.12
State Universities and Colleges 420 0.09
Environment and Natural Resources 167 0.04
Total 449,668 100.00

The DOH-OSEC reported entirely the total of P298.06 million


representing liability for leased equipment.

The DOF, specifically the BIR, reported P79.85 million or 17.76


percent of the total Finance Lease Payable of the NG. This pertained to
the finance lease contracts of the Bureau with its lessors: LBP Leasing
Corporation, and Philippine Reclamation Authority (PRA).

The LTO reported the entire account for the DOTr. This represented the
current liability of LTO-NCR relative to a Lease-Purchase Agreement
for the acquisition of the Regional Office building payable in 5 years
per Multi-Year Obligational Authority No. A-13-002 issued by the
DBM on November 8, 2013.

159
g. Awards and Rewards Payable

This account is used to recognize awards granted for civic or


professional achievement and rewards to informers for the receipt of
reliable information leading to successful arrest/capture of fugitives,
seizure/confiscation of smuggled goods, or collection/recovery of
unpaid taxes/surcharges/ fines/penalties.

Among the departments/offices, only the DOF reported a balance for


this account; the BOC with P1.32 billion or 99.91 percent and the BIR
with P1.18 million or 0.09 percent.

h. Tax Refunds Payables

The departments/offices which reported balances of this account are as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 13,142,730 99.67
The Judiciary 18,358 0.14
State Universities and Colleges 10,346 0.08
Health 8,335 0.06
Social Welfare and Development 1,331 0.01
Office of the Ombudsman 1,262 0.01
Agrarian Reform 1,064 0.01
Science and Technology 839 0.01
Sub-Total 13,184,265 99.99
Other Departments/Offices 1,866 0.01
Total 13,186,131 100.00

The BOC reported P12.92 billion or 98.31 percent of the total for DOF,
which composed mainly of payables covered by TCCs in
acknowledgement of approved tax credits.

The SCP reported solely the balance for The Judiciary, P46.35 thousand
of which pertained to the forwarded balance from the Jurisconsult.

16.2. Bills/Bonds/Loans Payable

This sub-major group of accounts consists of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Treasury Bills Payable 314,369,300 45.70 287,936,300 47.74
Bonds Payable-Domestic 313,776,788 45.61 228,719,661 37.92
Bonds Payable-Foreign - - 26,008,732 4.31
Loans Payable-Domestic 906,414 0.13 963,547 0.16
Loans Payable-Foreign 58,918,853 8.56 59,466,682 9.86
Total 687,971,355 100.00 603,094,922 100.00

160
a. Treasury Bills Payable

This account is used to recognize issuances/flotations of T-Bills to


government securities eligible dealers, GFIs/GOCCs, LGUs, tax
exempt institutions and other entities through auction, over the counter
or tap method. Under the DOF, the BTr reported solely the total
Treasury Bills Payable of the NG in the amount of P314.37 billion.

b. Bonds Payable-Domestic

This account pertains to issuances/flotations of peso-denominated


bonds. Among the departments/offices, only the DOF and SUCs
reported balances of this account, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 313,775,721 100.00
State Universities and Colleges 1,066 0.00
Total 313,776,787 100.00

Under the DOF, the BTr reported entirely the P313.78 billion or almost
100 percent of the total Bonds Payable-Domestic of the NG. The
remaining balance was reported by the Bohol Island State University
with P1.06 million and Mindanao State University System with P2.20
thousand.

c. Loans Payable-Domestic

Five departments/offices reported balances of this account, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 792,499 87.43
State Universities and Colleges 57,751 6.37
Metropolitan Manila Development Authority 53,116 5.86
Other Executive Offices 3,056 0.34
Autonomous Region in Muslim Mindanao (8) 0.00
Total 906,414 100.00

The BTr reported the total for DOF which pertained to DBP and PNB’s
obligations assumed by the NG of P442.49 million and P350 million,
respectively.

Among the SUCs, 12 disclosed balances of this account. The


Polytechnic University of the Philippines (PUP) topped the list with
P19.54 million or 33.83 percent of the total for the SUCs which
pertained to the loan from the GSIS for the purchase of the Condotel-
Hostel located in Manila.

The balance reported by the MMDA consisted of loans from DBP

161
which were originally intended for the conversion of Makati Hotel into
MMDA building.

d. Loans Payable-Foreign

This account was reported solely by the DOF, specifically the BTr. The
creditors/lending institutions include the ADB, Bank of Austria,
Belgian Loan, Deutsche Bank, French Loan, IBRD, Instituto Credito
Official, IDA, International Fund for Agricultural Development, Japan
Bank for International Cooperation, Japan Export Import Bank,
Kreditanstalt Fur Wiederaufbau, Organization of Petroleum Exporting
Countries, United States Agency for International Development, US
Investing Housing Aid, and US Public Law 480.

17. INTER-AGENCY PAYABLES

17.1. Inter-Agency Payables

This sub-major group of accounts pertains to payables that subsist between


NGAs, LGUs, and GOCCs. It is composed of the following accounts:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Due to BIR 8,320,059 13.11 7,349,490 11.89
Due to GSIS 8,535,343 13.45 6,864,943 11.11
Due to Pag-IBIG 510,388 0.80 429,751 0.70
Due to PhilHealth 1,216,026 1.92 1,113,604 1.80
Due to GOCCs 36,003,213 56.73 38,014,926 61.51
Due to LGUs 8,874,570 13.98 8,029,520 12.99
Total 63,459,599 100.00 61,802,234 100.00

Schedule 17, Volume II of this Report shows the list of agencies with
balances of Inter-Agency Payables as of the end of the year.

a. Due to BIR

This account represents taxes withheld from salaries of officers and


employees, and payments to suppliers and service providers which are
yet to be remitted by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 2,986,467 35.89
Education 1,021,092 12.27
Health 828,527 9.96
National Defense 626,273 7.53
State Universities and Colleges 515,453 6.20
Interior and Local Government 274,437 3.30

162
Amount Percent
Department/Office
(in thousand pesos) to Total
Agriculture 241,172 2.90
Transportation 177,141 2.13
Office of the President 170,905 2.05
Environment and Natural Resources 157,032 1.89
Sub-Total 6,998,498 84.12
Other Departments/Offices 1,321,561 15.88
Total 8,320,059 100.00

Both the OSECs of DPWH and DepEd reported unremitted taxes


withheld of P2.99 billion or 35.89 percent and P1 billion or 12.06
percent, respectively, of the total Due to BIR.

b. Due to GSIS

This account represents the employees’ premium payments and other


payables for remittance to the GSIS. The following departments/offices
reported balances as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 7,407,754 86.79
Autonomous Region in Muslim Mindanao 324,571 3.80
State Universities and Colleges 176,834 2.07
Interior and Local Government 131,602 1.54
The Judiciary 101,938 1.19
Information and Communications Technology 57,256 0.67
Health 53,547 0.63
Finance 29,459 0.35
Other Executive Offices 28,950 0.34
National Defense 25,421 0.30
Sub-Total 8,337,333 97.68
Other Departments/Offices 198,010 2.32
Total 8,535,343 100.00

For the DepEd, the OSEC reported P7.41 billion or almost 100 percent.

The ARMM-Office of the Regional Governor reported unremitted


GSIS premiums of P324.57 million or 3.80 percent of the total for the
NG.

The UPS and Eastern Visayas State University reported P83.04 million
and P23.21 million or 46.96 percent and 13.12 percent, respectively, of
the total for SUCs. It may be noted that of the 114 universities/colleges,
six reported abnormal/negative balances totaling P2.98 million.

c. Due to Pag-IBIG

This account represents withheld employees’ premium payments and


other payables for remittance to the Home Development Mutual Fund
by the following departments/offices:
163
Amount Percent
Department/Office
(in thousand pesos) to Total
Education 400,063 78.38
State Universities and Colleges 23,763 4.66
Justice 19,604 3.84
Health 13,102 2.57
Public Works and Highways 12,876 2.52
Information and Communications Technology 11,544 2.26
Autonomous Region in Muslim Mindanao 8,658 1.70
Agriculture 6,230 1.22
Environment and Natural Resources 5,785 1.13
National Defense 5,013 0.98
Sub-Total 506,638 99.27
Other Departments/Offices 3,750 0.73
Total 510,388 100.00

The OSEC reported P400.04 million or 99.99 percent of the total for
DepEd.

Four departments/offices posted abnormal/negative balances as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Metropolitan Manila Development Authority 12,160 77.13
Finance 1,392 8.83
The Judiciary 1,193 7.57
Presidential Communications Operations
Office 1,022 6.48
Total 15,767 100.00

The balance of MMDA resulted from over remittance and erroneous


recording in 1998 to 2000 which are still being reconciled with
pertinent records.

Under the DOF, the BOC reported abnormal/negative balance of P4.28


million balance due to advance recording of remittances owing to the
delayed submission of payrolls by the offices and ports/sub-ports
concerned.

Among the agencies under The Judiciary, the SCP reported abnormal/
negative balance of P1.29 million which pertained to non-adjustment
of remittance withheld from cancelled salaries of former employees
who have retired or resigned, transferred to other government offices or
overpaid due to insufficient leave credits.

The Philippine Information Agency of the PCOO reported


abnormal/negative balance of P1.39 million.

164
d. Due to PhilHealth

This account represents withheld employees’ premium payments for


remittance to the Philippine Health Insurance Corporation by the
following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 1,112,515 91.49
State Universities and Colleges 18,322 1.51
The Judiciary 13,368 1.10
Autonomous Region in Muslim Mindanao 11,838 0.97
National Defense 9,125 0.75
Health 7,404 0.61
Justice 6,123 0.50
Transportation 5,022 0.41
Interior and Local Government 4,310 0.35
Public Works and Highways 3,692 0.30
Sub-Total 1,191,720 98.00
Other Departments/Offices 24,306 2.00
Total 1,216,026 100.00

The DepEd-OSEC reported P1.11 billion representing 91.49 percent of


the total Due to PhilHealth of the NG. The SCP reported P13.29 million
or 99.43 percent of the total for The Judiciary while the UPS reported
P6.88 million or 37.53 percent of the total for SUCs.

e. Due to GOCCs

The balance of this account was reported by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 22,882,375 63.56
Public Works and Highways 7,458,560 20.72
Foreign Affairs 2,764,446 7.68
Transportation 976,527 2.71
National Defense 636,097 1.77
Budget and Management 560,038 1.56
National Economic and Development
Authority 304,519 0.85
Energy 72,809 0.20
State Universities and Colleges 61,793 0.17
Other Executive Offices 52,210 0.15
Sub-Total 35,769,373 99.35
Other Departments/Offices 233,840 0.65
Total 36,003,213 100.00

The DOF, particularly the BTr, reported P22.87 billion or 63.52 percent
of the total Due to GOCCs, detailed as follows:

165
Amount
Particulars
(in thousand pesos)
1. Managed funds and escrow account held by NG for
BSF, Debt Repayment Fund and other GOCCs 9,109,473
2. Remittances of GOCCs 235,765
3. Philippine Coconut Authority collections (8,826)
4. Balance of proceeds from the drawing of USD120
million Performance Bond/Irrevocable Standby Letter
of Credit put up by Maynilad Water Services, Inc. to
secure its concessions fee liabilities with Metropolitan
Waterworks and Sewerage System 133,299
5. NG payable to BSP representing IMF revaluation of the
Special Drawing Rights in Philippine Peso with BSP 12,900,961
6. NG Equity to PhilExim credited to TOP account
pending issuance of EO on the consolidation of
guarantees to serve as a guarantee reserve fund of new
PhilExim 500,000
7. Advances made by LBP for the account of LBP-ARF 86
Total 22,870,758

The amount reported by the DPWH represents receipts from GOCCs


for the implementation of infrastructure projects.

f. Due to LGUs

This account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Energy 7,176,459 80.87
Agriculture 836,899 9.43
Autonomous Region in Muslim Mindanao 238,001 2.68
Public Works and Highways 141,193 1.59
Budget and Management 135,278 1.52
State Universities and Colleges 80,851 0.91
Metropolitan Manila Development Authority 80,619 0.91
Interior and Local Government 55,907 0.63
Social Welfare and Development 44,074 0.50
Education 32,318 0.36
Sub-Total 8,821,599 99.40
Other Departments/Offices 52,971 0.60
Total 8,874,570 100.00

The balance reported by the DOE represented the subsidy to various


host communities under Energy Regulation No. 1-94. Rule 29 of the
Implementing Rules and Regulations of R.A. No. 9136 required that
generating facilities and/or energy resource development facilities
provide financial benefits of one centavo per kilowatt-hour of their
electricity sales. These funds are maintained as trust funds to be used
for the implementation of electrification, development and livelihood
and reforestation, watershed management, health and/or environment
enhancement projects to the host communities. As at yearend, there
were 96 LGU recipients from the said fund.

166
18. INTRA-AGENCY PAYABLES

18.1. Intra-Agency Payables

Intra-Agency Payables refer to reciprocal accounts that subsist between the


Central Office, Staff Bureaus, ROs and OUs within the agency.

a. Due to Other Funds

This account refers to the transfers from other funds and/or payables to
other funds. To eliminate the effect of intra-agency transactions of the
NG, Due to Other Funds were netted against Due from Other Funds.
After elimination, however, balances still exist in the following
departments/offices:

Due to Due from


Other Other Balance
Department/Office
Funds Funds
(in thousand pesos)
Education 181,802 10,887 170,916
Labor and Employment 94,019 10 94,009
Foreign Affairs 457,928 413,145 44,783
Health 436,350 398,498 37,853
Office of the Ombudsman 10,446 1,808 8,637
Autonomous Region in Muslim
Mindanao 5,804 - 5,804
Other Executive Offices 5,598 3,962 1,636
The Judiciary 12,897 11,593 1,304
Agriculture 6,490 5,421 1,068
Environment and Natural Resources 7,448 6,941 507
Sub-Total 1,218,782 852,265 366,517
Other Departments/Offices 2,174,282 2,408,917 (234,635)
Total 3,393,064 3,261,182 131,882

Schedule 18, Volume II of this Report shows the list of agencies with
balances of Due to Other Funds as of the end of the year.

19. TRUST LIABILITIES

19.1. Trust Liabilities

This sub-major group of accounts is used to recognize receipt of amounts


held in trust for specific purposes. It is accounted under the following
accounts:

167
2017 2016 (Restated)
Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Trust Liabilities 20,196,962 30.54 18,122,615 34.45
Trust Liabilities-Disaster Risk
Reduction and Management
Fund 559,042 0.85 441,394 0.84
Bail Bonds Payable 625,559 0.95 510,702 0.97
Guaranty/Security Deposits
Payable 44,343,349 67.06 33,227,705 63.16
Customers’ Deposits Payable 397,175 0.60 303,623 0.58
Total 66,122,087 100.00 52,606,039 100.00

Schedule 19, Volume II of this Report shows the list of agencies with
balances of Trust Liabilities as of the end of the year.

a. Trust Liabilities

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 8,942,446 44.28
Labor and Employment 3,036,246 15.03
Finance 2,695,261 13.34
The Judiciary 852,153 4.22
Interior and Local Government 777,793 3.85
Health 660,712 3.27
Agrarian Reform 607,253 3.01
Justice 503,070 2.49
Education 486,402 2.41
National Defense 347,138 1.72
Sub-Total 18,908,474 93.62
Other Departments/Offices 1,288,488 6.38
Total 20,196,962 100.00

For the SUCs, the UPS reported P7.13 billion or 35.32 percent of the
total Trust Liabilities of the NG, with UP Los Baños of P4.95 billion.

b. Trust Liabilities-Disaster Risk Reduction and Management Fund

Five departments with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 418,803 74.91
National Defense 109,669 19.62
Labor and Employment 16,809 3.01
Agriculture 13,731 2.46
Finance 30 0.00
Total 559,042 100.00

168
The account reported by the DSWD-OSEC pertained to cash donations
received, disbursed and/or transferred to FOs which includes FO-VI
fund totaling to P275.84 million for Typhoon Yolanda Rehabilitation.

The Office of the Civil Defense reported the entire for the DND. This
pertained to the balance received from both local and foreign sources
intended for victims of calamities, P16.85 million of which is subject
for liquidation.

c. Bail Bonds Payable

This account refers to the liability arising from the receipt of cash bond
of persons who are in the custody of law to guarantee their 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 the
Philippine laws.

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
The Judiciary 466,466 74.57
Justice 155,793 24.90
Other Executive Offices 1,745 0.28
Health 1,555 0.25
Total 625,559 100.00

Of the balance for The Judiciary, the Sandiganbayan and Court of


Appeals reported P283.72 million or 60.82 percent and P165.75 million
or 35.53 percent, respectively. Balances reported by other
departments/offices are subject for further verification and
adjustment/reclassification, if appropriate, by the agencies concerned.

d. Guaranty/Security Deposits Payable

This account pertains to the liability arising from receipt of cash or cash
equivalents to guarantee performance which are refundable after the
fulfillment of the purpose of the bond or forfeiture for failure to comply
with the purpose of the bond.

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 33,167,949 74.80
Finance 3,724,761 8.40
Health 2,148,108 4.84
Education 1,279,332 2.89
State Universities and Colleges 1,044,851 2.36
Agriculture 708,105 1.60

169
Amount Percent
Department/Office
(in thousand pesos) to Total
Environment and National Resources 544,181 1.23
National Defense 436,952 0.99
Agrarian Reform 184,636 0.42
Science and Technology 166,267 0.37
Sub-Total 43,405,141 97.88
Other Departments/Offices 938,208 2.12
Total 44,343,349 100.00

The total for the DPWH was reported solely by the OSEC, which
represents 10 percent retention fees from contractors’ billings and
performance bonds posted by suppliers.

e. Customers’ Deposits Payable

The following departments/offices reported balances of this account:

Amount Percent
Department/Office
(in thousand pesos) to Total
Presidential Communications Operations
Office 331,882 83.56
Tourism 18,038 4.54
State Universities and Colleges 10,942 2.75
Finance 9,540 2.40
Health 8,206 2.07
Public Works and Highways 6,338 1.60
Environment and Natural Resources 5,703 1.44
Justice 3,729 0.94
Education 1,266 0.32
Science and Technology 692 0.17
Sub-Total 396,336 99.79
Other Departments/Offices 839 0.21
Total 397,175 100.00

The balance for PCOO was reported solely by the NPO which referred
to advance deposits made by different agencies for the purchase of
accountable and standard forms that were not yet delivered as at
yearend.

20. OTHER PAYABLES

20.1. Other Payables

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 18,532,111 41.25
Education 7,476,673 16.64
Transportation 5,343,645 11.89

170
Amount Percent
Department/Office
(in thousand pesos) to Total
Justice 3,157,802 7.03
Health 3,113,368 6.93
Finance 2,034,910 4.53
Agriculture 795,849 1.77
Foreign Affairs 729,853 1.62
Other Executive Offices 434,838 0.97
Agrarian Reform 369,806 0.82
Sub-Total 41,988,855 93.46
Other Departments/Offices 2,939,784 6.54
Total 44,928,639 100.00

For the SUCs, the UPS reported P15.35 billion or 34.17 percent of the total
Other Payables. Of the said amount, P6.87 billion representing 15.30
percent of the total Other Payables was accounted in the books of UP
Diliman.

The OSEC reported P7.40 billion or 98.98 percent of the total for the
DepEd which comprised but not limited to payables to private lending
institutions and insurance companies for loan repayments and insurance
premiums deducted from salaries of employees.

The DOTr-OSEC reported P5.34 billion or 11.88 percent of the total Other
Payables which included, among others, P2.91 billion payable to Metro
Rail Transit Corporation for collections from the operations of Metro Rail
Transit 3.

Of the total for DOJ, P2.70 billion representing 6.02 percent of the total
Other Payables was reported by the PCGG. This account involved
collections from sequestered assets deposited to the BTr pending litigations
for the rightful ownership. It also included the proceeds of P111 million
from the sale of Wack property awaiting resolution of some legal issues.

The DOH-OSEC reported P3.10 billion or 6.90 percent of the total Other
Payables. This pertained to unpaid salaries of contractual employees,
deductions from salaries of regular employees for payment of monthly dues
and loans from cooperatives, among others.

21. DEFERRED CREDITS/UNEARNED INCOME

21.1. Deferred Credits/Unearned Income

This sub-major group of accounts consists of the following:

171
2017 2016 (Restated)
Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Other Deferred Credits 4,712,269 95.81 5,285,173 96.82
Unearned Revenue-Investment
Property 30 0.00 - -
Other Unearned Revenue 205,897 4.19 173,812 3.18
Total 4,918,196 100.00 5,458,985 100.00

a. Other Deferred Credits

This account was reported by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 1,869,456 39.67
State Universities and Colleges 1,370,939 29.09
National Defense 531,589 11.28
Health 523,408 11.11
Agriculture 144,942 3.08
Education 124,204 2.64
Transportation 89,326 1.90
Agrarian Reform 16,394 0.35
Other Executive Offices 9,753 0.21
Public Works and Highways 7,733 0.16
Sub-Total 4,687,744 99.48
Other Departments/Offices 24,525 0.52
Total 4,712,269 100.00

Under the DOF, the BTr reported P1.51 billion or 31.98 percent of the
total Other Deferred Credits of the NG which included the following:

Amount
Particulars
(in thousand pesos)
Accrued Interest on 10-year and 25-year bonds payable,
LBP-ARF 341,255
Interest increment on P.D. No. 27 and E.O. No. 228
claims, LBP-ARF 1,165,814
Total 1,507,069

The UPS with P616.85 million or 13.09 percent of the total Other
Deferred Credits topped among the SUCs.

b. Unearned Revenue-Investment Property

Among the SUCs, the University of Southeastern Philippines reported


a total of P30 thousand which pertained to advances from lessees for
rental of commercial stalls.

172
c. Other Unearned Revenue

This account is used to recognize other income/revenue received in


advance. The departments/offices which reported balances of this
account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 172,783 83.92
Science and Technology 14,710 7.14
Agriculture 7,687 3.73
Trade and Industry 7,671 3.73
Health 2,342 1.14
National Defense 385 0.19
Education 191 0.09
Environment and Natural Resources 111 0.05
Labor and Employment 13 0.01
Sub-Total 205,894 100.00
Other Departments/Offices 3 0.00
Total 205,897 100.00

Among the SUCs, the Carlos C. Hilado Memorial State College


reported P76.74 million or 44.42 percent while TUPS reported P67.91
million or 39.30 percent.

22. PROVISIONS

22.1. Provisions

This sub-major group of accounts is composed of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Leave Benefits Payable 42,174 68.95 30,185 63.71
Other Provisions 18,989 31.05 17,195 36.29
Total 61,163 100.00 47,380 100.00

a. Leave Benefits Payable

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 21,674 51.39
Education 18,000 42.68
Transportation 2,370 5.62
Autonomous Region in Muslim Mindanao 140 0.33
Health 109 0.26

173
Amount Percent
Department/Office
(in thousand pesos) to Total
Trade and Industry 54 0.13
Office of the President 52 0.12
Finance (225) (0.53)
Total 42,174 100.00

The TUPS and OSEC reported the entire Leave Benefits Payable of the
SUCs and DepEd, respectively.

The abnormal/negative balance for the DOF was accounted in the books
of Bureau of Local Government Finance.

b. Other Provisions

This account is used to recognize liabilities of uncertain timing or


amount.

Among the departments, only the DND and SUCs reported balances of
this account. The AFP-CES with P17.20 million or 90.55 percent of the
total for NG pertained to the reserve for contingency claims by the
agency’s civilian employees who filed labor cases against the agency.
The amount of P1.79 million or 9.45 percent reported by the Benguet
State University pertained to the claim of a contractor against the
university.

23. FINANCIAL LIABILITIES

Financial Liabilities is composed of the following sub-major groups of accounts:

2017 2016 (Restated)


Amount Amount
Sub-Major Group of Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Payables 11,495,554 0.20 8,620,888 0.16
Bill/Bonds/Loans Payable 5,851,988,039 99.80 5,380,871,456 99.84
Total 5,863,483,593 100.00 5,389,492,344 100.00

Schedule 16, Volume II of this Report shows the list of agencies with balances of
Financial Liabilities as of the end of the year.

23.1. Payables

Payables consists of the following:

174
2017 2016 (Restated)
Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Interest Payable 102,994 0.90 - -
Finance Lease Payable 765,637 6.66 840,370 9.75
Service Concession
Arrangements Payable 10,626,923 92.44 7,780,518 90.25
Total 11,495,554 100.0 8,620,888 100.00

a. Interest Payable

This account, which was reported exclusively by the OEO-Philippine


Drug Enforcement Agency (PDEA), pertained to the interest of the loan
availed by the Economic Intelligence and Investigation Bureau from
the National Housing Authority which was assumed by the PDEA. The
settlement of the assumed obligation by PDEA is yet to be addressed
while waiting for the approval of the President on PDEA’s request on
the waiver of the penalty of this delinquent account.

b. Finance Lease Payable

This account with a total of P765.64 million represents 0.01 percent


only of the total Financial Liabilities of the NG. It was reported by the
DOF, specifically the BIR, which pertained to the lease payments under
the finance lease contract payable by the Bureau to the lessors, LBP
Leasing Corporation and PRA.

c. Service Concession Arrangements Payable

This account was reported solely by the DepEd-OSEC representing the


financial obligation regarding Public Private Partnership for School
Infrastructure Project (PSIP) Phase I and II which was covered by a
Build-Lease-Transfer Agreement with contractors to finance, design
and construct classrooms in exchange of quarterly lease payments for
the period of ten years, detailed as follows:

Amount Payment Balance


Recapitulation PSIP Particulars
(in thousand pesos)
Bright Future
Package A,
Educational Facilities, I
Region I
Inc. 3,441,882 1,243,172 2,198,710
Citicore-Megawide Package B,
I
Consortium, Inc. Region III 5,229,899 1,876,461 3,353,438
Citicore-Megawide Package C,
Consortium, Inc. I Region IV-
A 7,593,214 2,518,439 5,074,775
Megawide Construction
II Package A
Corporation 1,358,020 1,358,020 -
Bsp & Company, Inc.
/Vicente T.Lao II Package E
Construction (Jv) 978,302 978,302 -
Total 18,601,317 7,974,394 10,626,923

175
23.2. Bills/Bonds/Loans Payable

This sub-major group of accounts is composed of the following:

Gross Carrying
Premium Discount
Accounts Amount Amount
(in thousand pesos)
Bonds Payable-Domestic 3,813,841,489 3,473,184 56,397,110 3,760,917,563
Bonds Payable-Foreign 1,364,059,948 2,218,976 65,763,290 1,300,515,634
Loans Payable-Domestic 614,669 - - 614,669
Loans Payable-Foreign 789,940,173 - - 789,940,173
Total 5,968,456,279 5,692,160 122,160,400 5,851,988,039

a. Bonds Payable-Domestic

Except for the nil amount of P2.30 thousand reported by DA-OSEC,


the total Bonds Payable-Domestic of P3.760 trillion or almost 100
percent was reported by DOF-BTr representing T-Bonds issued
domestically with a maturity beyond one year.

b. Bonds Payable-Foreign

This account, reported solely by the DOF-BTr, pertained to offshore


bond flotations of the ROP that will be maturing beyond a period of one
year.

c. Loans Payable-Domestic

The balance of this account was reported by the four


departments/offices, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 595,586 96.90
Metropolitan Manila Development Authority 17,000 2.76
The Judiciary 1,276 0.21
Agriculture 806 0.13
Total 614,668 100.00

The PUP topped the SUCs with P415.13 million or 67.54 percent of the
total Loans Payable-Domestic of the NG. This pertained to the non-
current portion of the loan from the GSIS for the purchase of the
Condotel-Hostel located in Manila.

The total for MMDA represents its loans from LBP for the Metro
Manila Kilusang Kabuhayan at Kaunlaran Livelihood Projects.

d. Loans Payable-Foreign

The balance of this account was reported by three departments/offices,

176
as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 789,825,874 99.99
Foreign Affairs 96,057 0.01
Metropolitan Manila Development Authority 18,242 0.00
Total 789,940,173 100.00

The balance for DOF was reported solely by the BTr.

The balance for DFA was recognized entirely by the OSEC


representing the Foreign Currency Deposit Unit loan granted by PNB,
London in connection with the acquisition of property at Suffolk Street,
London on April 10, 2006 which serves as the Philippine Chancery
authorized per UK-369-OUA-2006 dated July 12, 2006. The loan is
payable in 13 years in 52 equal installments due every quarter.

The Loans Payable-Foreign acquired by the MMDA in 1982 at 8.25


percent per annum from the IBRD was intended for Infrastructure
Maintenance and Development Management Systems of the Metro
Manila Infrastructures and Utilities Program.

24. TRUST LIABILITIES

24.1. Trust Liabilities

The total Trust Liabilities consists of the following sub-major groups of


accounts:

2017 2016 (Restated)


Sub-Major Group of Amount Amount
Percent Percent
Accounts (in thousand (in thousand
to Total to Total
pesos) pesos)
Trust Liabilities 14,067,197 89.90 1,294,217 11.34
Bail Bonds Payable 122,907 0.79 9,198,943 80.61
Guaranty/Security Deposits
Payable 563,094 3.60 896,723 7.86
Customers’ Deposits Payable 894,219 5.71 22,022 0.19
Total 15,647,417 100.00 11,411,905 100.00

Schedule 18, Volume II of this Report shows the list of agencies with
balances of Trust Liabilities as of the end of the year.

a. Trust Liabilities

The departments/offices with balances of this account are as follows:

177
Amount Percent
Department/Office
(in thousand pesos) to Total
The Judiciary 13,064,074 92.87
National Defense 540,477 3.84
Other Executive Offices 314,932 2.24
Office of the Ombudsman 57,524 0.41
Interior and Local Government 50,778 0.36
State Universities and Colleges 31,743 0.23
Environment and Natural Resources 4,877 0.03
National Economic and Development
Authority 2,365 0.02
Sub-Total 14,066,770 100.00
Other Departments/Offices 427 0.00
Total 14,067,197 100.00

The balance for The Judiciary which was reported solely by the SCP
comprised of Office of the Court Administrator Fiduciary Fund and
Fiduciary Fund Notarial collections.

The total Trust Liabilities recognized by DND, particularly the GHQ-


AFP which amounted to P540.57 million, pertained to reimbursable
amounts received from United Nations Mission and Balikatan Title X
and other trust receipts.

Among the OEOs, the Commission on Higher Education and the


HLURB topped the list with P138.51 million or 43.98 percent, and
P130.38 million or 41.40 percent, respectively.

b. Bail Bonds Payable

The balance of this account was reported by two departments/offices,


as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
The Judiciary 122,877 99.98
Justice 30 0.02
Total 122,907 100.00

The Presidential Electoral Tribunal (PET) of The Judiciary reported


P74.20 million or 60.37 percent of the total Bail Bonds Payable of the
NG which pertained to the partial cash deposit for the election counter-
protest for Vice President per PET Case No. 005.

c. Guaranty/Security Deposits Payable

The departments/offices with balances of this account are as follows:

178
Amount Percent
Department/Office
(in thousand pesos) to Total
Justice 169,435 30.09
State Universities and Colleges 98,103 17.42
National Defense 72,328 12.84
Environment and Natural Resources 69,782 12.39
Other Executive Offices 46,108 8.19
The Judiciary 44,507 7.90
Social Welfare and Development 39,473 7.01
Agriculture 14,904 2.65
Finance 2,723 0.48
Office of the Ombudsman 2,473 0.44
Sub-Total 559,836 99.42
Other Departments/Offices 3,258 0.58
Total 563,094 100.00

The LRA reported the entire DOJ’s total, details of which are as
follows:

Amount
Particulars
(in thousand pesos)
Retention Fee-Contractor 2,865
Retention Fee-Land Registration System, Inc. 166,240
Bid/Performance Bond Payable 330
Total 169,435

Among the SUCs, the Mindanao State University System topped the
list which reported P53.82 million or 9.56 percent of the total
Guaranty/Security Deposits Payable of the NG.

d. Customers’ Deposits Payable

This account, which is used to recognize the cash deposits from


customers for goods/services, was reported by the following
departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
The Judiciary 870,724 97.37
Finance 18,263 2.04
State Universities and Colleges 2,578 0.29
National Defense 1,539 0.17
Social Welfare and Development 1,094 0.12
Other Executive Offices 20 0.00
Total 894,219 100.00

The amounts for The Judiciary and DOF were reported solely by the
SCP and PMO, respectively. The total for SCP comprised of LC’s
Sheriff’s Trust Fund collections while the PMO’s accounts represented
deposits from the buyers of property of North Davao Mining
Corporation, National Coal Authority, and Pamplona Redwood and

179
Veneer, Inc.

25. DEFERRED CREDITS/UNEARNED INCOME

25.1. Deferred Credits/Unearned Income

This sub-major group of accounts consists of the following:

2017 2016 (Restated)


Amount Amount
Account Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Other Deferred Credits 27,576,409 99.99 26,291,412 99.91
Other Unearned Revenue 2,145 0.01 24,008 0.09
Total 27,578,554 100.00 26,315,420 100.00

a. Other Deferred Credits

The departments/offices with balances of this account are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 27,189,460 98.60
State Universities and Colleges 136,420 0.49
Agriculture 120,650 0.44
Justice 82,843 0.30
Science and Technology 34,126 0.12
Presidential Communications Operations
Office 8,271 0.03
Other Executive Offices 3,911 0.01
Sub-Total 27,575,681 100.00
Other Departments/Offices 728 0.00
Total 27,576,409 100.00

Of the balance for the DOF, PMO reported P15.66 billion or 57.59
percent which arose from the installment sale of transferred assets. The
BIR reported P9.97 billion or 36.67 percent representing the
unredeemed Backpay Certificate of Indebtedness turned over to the BTr
for redemption and donated lot by the Provincial Government of
Pampanga to which a condition was attached.

The BTr also reported P1.56 billion or 5.74 percent, detailed as follows:

Amount
Particulars
(in thousand pesos)
1. Proceeds from ROP’s issuance of Debt Exchange
Warrants which entitles the holders during exercise
period to tender dollar/euro bonds and receives in
exchange a peso denominated treasury bonds. 1,471,585
2. Contra account in setting up the receivable from DBP
and PMO 44,612

180
Amount
Particulars
(in thousand pesos)
3. Capitalized interest and other charges, LBP-ARF 38,776
4. Unearned discount on Treasury Bills held by BSF 4,301
5. Converted balance under Fund 105 which had remained
dormant for over 30 years and was already requested for
write-off 566
Total 1,559,841

b. Other Unearned Revenue

This account was reported solely by the SUCs. Of the 114 universities
and colleges, only the Northwest Samar State University, Quirino State
College and Isabela State University reported balances of this account.

26. OTHER PAYABLES

26.1. Other Payables

The following departments/offices reported balances of Other Payables:

Amount Percent
Department/Office
(in thousand pesos) to Total
Social Welfare and Development 28,596,497 96.41
State Universities and Colleges 263,626 0.89
National Defense 183,956 0.62
Finance 169,502 0.57
Justice 159,944 0.54
The Judiciary 113,813 0.38
Other Executive Offices 90,986 0.31
Congress of the Philippines 24,905 0.08
Environment and Natural Resources 24,414 0.08
Trade and Industry 14,160 0.05
Sub-Total 29,641,803 99.94
Other Departments/Offices 18,614 0.06
Total 29,660,417 100.00

The amount for the DSWD was reported solely by the OSEC which
represents mainly of unpaid cash grants of P27.06 billion or 94.64 percent
for 4Ps beneficiaries. The remaining amount of P1.53 billion or 0.36
percent pertained to trust account from United Nations Development
Programme, payroll deductions for remittance to KBC Bank Ireland,
Mutual Benefits Association, Social Welfare Employees Association of the
Philippines, Project to Supplement Personnel Economic Resources, SSS,
healthcard, and other individual creditors/suppliers which include service
providers/suppliers of Crisis Intervention Unit clients.

181
27. PROVISIONS

27.1. Provisions

This sub-major group of accounts consists of the following:

2017 2016 (Restated)


Amount Amount
Accounts Percent Percent
(in thousand (in thousand
to Total to Total
pesos) pesos)
Pension Benefits Payable 1,995,568 99.89 2,911,643 99.92
Leave Benefits Payable 1,160 0.06 1,709 0.06
Retirement Gratuity Payable 1,112 0.06 554 0.02
Total 1,997,840 100.00 2,913,906 100.00

Three departments/offices reported balances of this sub-major groups of


accounts, as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 1,988,155 99.52
Transportation 9,234 0.46
State Universities and Colleges 451 0.02
Total 1,997,840 100.00

The balance for the DND was reported solely by the Philippine Veterans
Affairs Office representing pension benefits payable to pensioners/
beneficiaries.

The PCG reported solely the balance for the DOTr with the following
details:

Amount Percent
Accounts
(in thousand pesos) to Total
Pension Benefits Payable 7,412 80.28
Leave Benefits Payable 709 7.68
Retirement Gratuity Payable 1,112 12.04
Total 9,233 100.00

The entire balance of the SUCs was disclosed by Leyte Normal University
pertaining to the accrued money value of the earned vacation and sick leave
credits of an employee who retired on December 7, 2017.

28. CONTINGENT LIABILITIES

As disclosed by the BTr, the recognized liabilities did not include the following
total contingent liabilities of the NG amounting to P478.11 billion:

182
Foreign Domestic
Particulars Currency
(in thousand pesos)
NG Direct Guarantee on GOCC Loans USD 5,531,079
Peso 276,321,626 197,381,136
GFI Guarantee Assumed by NG per USD 85,562
Proclamation 50 Peso 4,274,525 136,069
Total USD 5,616,641
Peso 280,596,151 197,517,205

Excluded from the list are the contingent liabilities of the NG under the 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.

The DOF-PMO also disclosed a contingent liability to the GSIS of P1.78 million
representing bond premium from February14, 2014 to February 14, 2017 or a
yearly premium of P593.72 thousand relative to the Court of Tax Appeals (CTA)
Resolution dated February 7, 2013. This ensued as the Tacloban City Government
(TCG) issued Warrants of Levy over the properties of Leyte Park Hotel for non-
payment of real property tax of P65.96 million. The PMO obtained Temporary
Restraining Order (TRO) 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.

29. TAX REVENUE

FY 2017 total tax revenue collections of P2.257 trillion, which was 89.44 percent
of the total revenue of P2.524 trillion, has increased by P270.90 billion or 13.64
percent compared to previous year’s tax revenue of P1.986 trillion. Details of this
major group of accounts are shown below.

2016
2017
Particulars (Restated)
(in thousand pesos)
Tax Revenue-Individual and Corporation
Income Tax 987,748,394 884,198,478
Immigration Tax 115,702 86,668
Total Tax Revenue-Individual and Corporation 987,864,096 884,285,146
Tax Revenue-Property
Estate Tax 3,506,114 3,818,018
Donors Tax 1,864,089 1,755,684
Capital Gains Tax 25,208,472 25,729,675
Total Tax Revenue-Property 30,578,675 31,303,377
Tax Revenue-Goods and Services
Import Duties 59,576,254 58,544,179
Excise Tax 270,238,669 214,582,182
Business Tax 786,078,470 689,761,337
Tax on Sand, Gravel and Other Quarry Products - 144

183
2016
2017
Particulars (Restated)
(in thousand pesos)
Tax on Forest Products - 18,971
Total Tax Revenue-Goods and Services 1,115,893,393 962,906,814
Tax Revenue-Others
Documentary Stamp Tax 81,996,097 75,094,378
Motor Vehicles Users' Charge 15,906,807 14,375,050
Other Taxes 20,114,060 15,371,684
Total Tax Revenue-Others 118,016,964 104,841,112
Tax Revenue-Fines and Penalties
Tax Revenue-Fines and Penalties-Taxes on Individual
and Corporation 1,813,950 1,287,044
Tax Revenue-Fines and Penalties-Property Taxes 432,555 310,958
Tax Revenue-Fines and Penalties-Taxes on Goods and
Services 585,088 540,534
Tax Revenue-Fines and Penalties-Other Taxes 1,996,792 806,861
Total Tax Revenue-Fines and Penalties 4,828,385 2,945,398
Total Tax Revenue 2,257,181,513 1,986,281,847

29.1. Tax Revenue–Individual and Corporation

Tax Revenue-Individual and Corporation represented 43.77 percent of the


total tax revenue of P2.257 trillion for FY 2017. The Income Tax revenue
of P987.75 billion or 99.99 percent was the highest collection in this sub-
major group of accounts. The income tax collections of DOF-BIR increased
by P103.55 billion or 11.71 percent from previous year’s collections of
P884.20 billion. Immigration tax collections of P115.70 million, reported
by DOJ-BI, also increased by P29.03 million compared to previous year’s
amount of P86.67 million.

29.2. Tax Revenue–Property

BIR reported a total of P30.58 billion property tax collections for FY 2017,
lower by P724.70 million or 2.32 percent than previous year’s P31.30
billion. Capital Gains Tax contributed the highest component at P25.21
billion or 82.44 percent, followed by Estate Tax at P3.51 billion or 11.47
percent, and Donors Tax at P1.86 billion or 6.10 percent. This sub-major
group of accounts represented 1.35 percent of the total tax revenue.

29.3. Tax Revenue–Goods and Services

The total collections on Tax Revenue-Goods and Services, which


represented 49.44 percent of the total tax revenue, increased to P1.116
trillion, higher by P152.99 billion or 15.89 percent than previous year’s
P962.91 billion. This was reported by DOF-BIR and BOC at P651.20
billion or 58.36 percent and P464.69 billion or 41.64 percent, respectively.

29.4. Tax Revenue–Others

Collections of Tax Revenue-Others of P118.02 billion, which represented


5.23 percent of the total tax revenue, was higher by P13.18 billion or 12.57
184
percent than previous year’s P104.84 billion.

Of the total Tax Revenue-Others, Documentary Stamp Tax registered the


highest component at P82 billion or 69.48 percent. Of this amount, P81.54
billion or 99.45 percent was collected by DOF-BIR. Motor Vehicle Users’
Charge totalling P15.91 billion or 13.48 percent of total tax revenue-others
was reported by DOTr-LTO. Of Other Taxes of P20.11 billion or 17.04
percent of the Tax Revenue-Others, P19.96 billion or 99.25 percent was
reported by DOF-BIR.

29.5. Tax Revenue–Fines and Penalties

Tax Revenue-Fines and Penalties total collections of P4.83 billion


increased by P1.88 billion or 63.93 percent from previous year’s amount of
P2.95 billion. The increase was due to the significant 147.48 percent
increase of Tax Revenue-Fines and Penalties-Other Taxes from P806.86
million in FY 2016 to P2 billion in FY 2017. DOF-BIR contributed P4.77
billion or 98.73 percent of the total collections while the remaining P61.52
million or 1.27 percent was collected by DOF-BOC and DOTr-OSEC.

30. SERVICE AND BUSINESS INCOME

Total service and business income of P197.87 billion, which represented 7.84
percent of the total revenue of P2.524 trillion, decreased by P10.65 billion or 5.69
percent from FY 2016 of P187.23 billion. The composition of this major group of
accounts is as follows:

2017 2016 (Restated)


Particulars
(in thousand pesos)
Service Income
Permit Fees 1,719,715 1,443,813
Registration Fees 14,995,097 14,434,488
Registration Plates, Tags and Stickers Fees 1,246,072 1,242,160
Clearance and Certification Fees 3,562,295 2,730,801
Franchising Fees 98,648 136,225
Licensing Fees 4,832,108 3,465,980
Supervision and Regulation Enforcement Fees 4,546,524 4,214,409
Spectrum Usage Fees 2,365,411 2,708,340
Legal Fees 2,774,544 2,882,471
Inspection Fees 849,680 792,331
Verification and Authentication Fees 2,637,708 2,052,014
Passport and Visa Fees 6,318,387 5,380,387
Processing Fees 3,128,999 2,906,577
Fines and Penalties-Service Income 2,058,447 2,132,780
Other Service Income 18,812,842 19,472,471
Total Service Income 69,946,478 65,995,247
Business Income
School Fees 11,663,763 12,891,875
Affiliation Fees 90,714 90,374
Examination Fees 1,008,490 855,041
Seminar/Training Fees 849,189 730,035
Rent/Lease Income 991,160 846,815

185
2017 2016 (Restated)
Particulars
(in thousand pesos)
Communication Network Fees 8,952 9,203
Transportation System Fees 16 48
Road Network Fees 45,612 39,334
Waterworks System Fees 3,632 3,703
Power Supply System Fees 2,183 2,517
Landing and Parking Fees 1,604 4,823
Income from Hostels/Dormitories and Other
Like Facilities 608,854 438,954
Slaughterhouse Operation 578 380
Income from Printing and Publication 89,230 77,203
Sales Revenue 15,304,331 14,544,304
Sales Discounts (86,243) (154,284)
Cost of Sales (14,096,213) (13,371,796)
Net Sales 1,121,874 1,018,224
Hospital Fees 16,134,501 14,350,120
Guarantee Income 5,509,641 2,828,561
Fidelity Insurance Income 964,330 975,451
Dividend Income 31,240,581 26,142,632
Interest Income 49,263,842 53,141,394
Share in the Profit of Joint Venture 809,031 96,690
Fines and Penalties-Business Income 359,794 234,044
Service Concession Revenue 16,830 13,231
Other Business Income 7,141,361 6,440,881
Total Business Income 127,925,760 121,231,531
Total Service and Business Income 197,872,237 187,226,779

30.1. Service Income

Service Income of P69.95 billion, which represented 35.35 percent of the


total service and business income, was higher by P3.95 billion or 5.99
percent than previous year’s reported income of P66 billion. The Other
Service Income of P18.81 billion or 26.90 percent was the biggest
component of total service income, followed by Registration Fees of P15
billion or 21.44 percent, Passport and Visa Fees of P6.32 billion or 9.03
percent, Licensing Fees of P4.83 billion or 6.91 percent, and Supervision
and Regulation Enforcement Fees of P4.55 billion or 6.50 percent.

The departments/offices which reported substantial amount of Service


Income are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Justice 14,518,547 20.76
Transportation 10,234,359 14.63
Foreign Affairs 8,082,234 11.55
Finance 7,812,278 11.17
Information and Communication Technology 5,106,701 7.30
Labor and Employment 4,795,186 6.86
Interior and Local Government 2,884,864 4.12
Public Works and Highways 2,840,793 4.06
The Judiciary 2,809,255 4.02

186
Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 2,608,185 3.73
Sub-total 61,692,401 88.20
Other Departments/Offices 8,254,077 11.80
Total Service Income 69,946,478 100.00

Most of the total Other Service Income of P18.81 billion was reported by
the following departments/agencies: DPWH-OSEC – P2.68 billion, DOJ-
BI – P2.42 billion, and DOTr – P2.40 billion.

The agencies with the biggest registration fees were: DOJ-LRA – P8.58
billion, DOF-SEC – P2.35 billion and DOF-BIR – P958.09 million. DFA
reported P6.29 billion or 99.56 percent collections on Passport and Visa
Fees.

The biggest collections of Licensing Fees were reported by the following


departments/agencies: DOTr-OSEC – P2.95 billion, DOLE-PRC and
POEA – P664.56 million, and DILG-PNP – 577.69 million. Licensing Fees
collected by PNP refers to firearm and explosives licenses fees and security
agency & guard licenses for private security agencies, private detective
agencies, company guard force and government security force.

30.2. Business Income

Total business income of P127.93 billion, which was 64.65 percent of total
service and business income, was P6.69 billion or 5.52 percent higher than
previous year of P121.23 billion. The highest source of business income
was Interest Income of P49.26 billion or 38.51 percent, of which P46.60
billion or 94.59 percent was reported by DOF BTr-NG, followed by
Dividend Income of P31.24 billion or 24.42 percent, of which P31.21
billion or 99.90 percent was also reported by DOF BTr-NG.

Other sources of significant business income were Hospital Fees and


School Fees of P16.13 billion or 12.61 percent and P11.66 billion or 9.12
percent, respectively. The DOH-OSEC reported total collections of
Hospital Fees of P14.78 billion or 91.60 percent, while SUC-UPS
(Philippine General Hospital) reported P912.56 million or 5.66 percent.
School Fees were mainly reported by SUCs, the biggest collections of
which were: Batangas State University – P653.48 million or 5.60 percent,
Cavite State University – P486.17 million or 4.17 percent, Bulacan State
University – P456.44 million or 3.91 percent, and Cebu Technological
University – P359.55 million or 3.08 percent.

The departments/offices which reported substantial amounts of business


income were the following:

187
Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 91,026,879 71.16
Health 15,162,572 11.85
State Universities and Colleges 15,103,183 11.81
Labor and Employment 1,200,351 0.94
Environment and Natural Resources 1,098,017 0.86
Education 853,958 0.67
Other Executive Offices 662,916 0.52
Civil Service Commission 507,774 0.40
National Defense 506,829 0.40
Budget and Management 426,794 0.33
Sub-total 126,549,271 98.92
Other Departments/Offices 1,376,489 1.08
Total Business Income 127,925,760 100.00

31. SHARES, GRANTS AND DONATIONS

Income from shares, grants and donations totalling P67.58 billion represented 2.68
percent of the total revenue. This amount was higher by P12.09 billion or 21.79
percent compared to previous year of P55.49 billion. The details were as follows:

2017 2016 (Restated )


Particulars
(in thousand pesos)
Shares
Share from National Wealth 22,745,392 17,386,719
Share from PAGCOR/PCSO 35,248,853 32,073,545
Share from Earnings of GOCCs 1,697,541 1,898,253
Sub-total 59,691,787 51,358,517
Grants and Donations
Income from Grants and Donations in Cash 3,074,306 2,199,849
Income from Grants and Donations in Kind 4,813,661 1,928,256
Sub-total 7,887,967 4,128,106
Total 67,579,754 55,486,623

31.1. Share from National Wealth

Share from National Wealth represents government’s share on royalties,


production share on service contracts and other similar income from the
exploration, development and utilization of natural resources.
DOE collections of P21.61 billion or 95 percent of the total Share from
National Wealth was computed in accordance with Petroleum Act of 1949
and its Implementing Rules and Regulations. These collections form part
of the SAGF to finance energy resource development and exploration
programs and other government projects. DENR reported the remaining
P1.14 billion collections or 5 percent.

188
31.2. Share from PAGCOR/PCSO

This account represents share of government agencies from receipts of


Philippine Amusement and Gaming Corporation (PAGCOR) and
Philippine Charity Sweepstakes Office (PCSO). For FY 2017, this account
posted a balance of P35.25 billion, with an increase of P3.18 billion or 9.90
percent compared to previous year of P32.07 billion. Recipients of the total
Share from PAGCOR/PCSO were as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance
BTr-NG 26,728,859 75.83
Office of the President 6,500,000 18.44
Other Executive Offices 1,451,016 4.12
Philippine Sports Commission 1,306,016 3.71
Dangerous Drugs Board 120,000 0.34
Philippine Drug Enforcement Agency 25,000 0.07
Interior and Local Government
Philippine National Police 318,024 0.90
Education
Early Childhood Care and Development
Council 250,000 0.71
Health 954 0.00
Total 35,248,853 100.00

Dangerous Drugs Board (DDB) receives 10 percent of all unclaimed and


forfeited sweepstakes and lotto prizes but not less than P12 million per year
from the PCSO and P5 million a month from PAGCOR. The amount of
P120 million received in FY 2017 was still in the National Treasury as at
year-end.

The amount of P25 million reported by Philippine Drug Enforcement


Agency was the mandatory contribution from PCSO for anti-drug
operations received in August 2017 per E.O. No. 218, to fund its operations
and the task forces supporting it. The amount was remitted to the National
Treasury to be utilized for FY 2018 operations. PNP share was from PCSO
Small Town Lottery revenue.

PAGCOR contributed/granted P250 million to DepEd-Early Childhood


Care and Development Council as mandated in Section 10.2 of R.A. No.
10410 to fund the establishment of National Child Development Center and
conversion of existing day care centers to child development centers in
various LGUs.

31.3. Share from Earnings of GOCCs

Share from Earnings of GOCCs represents mandatory/statutory shares of


government agencies from earnings of GOCCs other than PAGCOR and
PCSO.

189
The departments/offices which received total share of P1.70 billion from
earnings of GOCCs were as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance-BTr NG 1,612,114 94.97
Tourism 82,106 4.84
Other Executive Offices-DDB 3,321 0.20
Total 1,697,541 100.00

Pursuant to Section 105 of R.A. No. 9593, DOT receives a share of net
income from its attached GOCCs.

31.4. Income from Grants and Donations

Total Income from Grants and Donations of P7.89 billion, which


represented 11.67 percent of total shares, grants and donations, was higher
by P3.76 billion than previous year of P4.13 billion. Of the total grants and
donations, P3.07 billion or 38.97 percent was received in cash and P4.81
billion or 61.03 percent was received in kind.

The departments/offices which received grants and donations were as


follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance 2,428,673 30.79
Education 1,896,300 24.04
Health 1,108,223 14.05
State Universities and Colleges 722,190 9.16
National Defense 623,082 7.90
Interior and Local Government 294,647 3.74
Metro Manila Development Authority 167,268 2.12
Social Welfare and Development 150,876 1.91
Energy 149,935 1.90
Other Executive Offices 87,557 1.11
Sub-total 7,628,751 96.71
Other Departments/Offices 259,216 3.29
Total 7,887,967 100.00

32. MISCELLANEOUS INCOME

Miscellaneous Income of P883.87 million was higher by P110.04 million or 14.22


percent compared to FY 2016 of P773.83 million. Details are as follows:

2017 2016 (Restated)


Particulars
(in thousand pesos)
Proceeds from Insurance/Indemnities 24,435 36,170
Miscellaneous Income 859,436 737,664
Total 883,871 773,834

190
The departments/offices with their corresponding miscellaneous income are
enumerated as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 268,390 30.37
National Defense 217,758 24.64
Public Works and Highways 68,651 7.77
Transportation 66,050 7.47
Foreign Affairs 49,957 5.65
State Universities and Colleges 43,837 4.96
Agriculture 41,171 4.66
Education 40,621 4.60
Other Executive Offices 19,295 2.18
Finance 16,305 1.84
Sub-total 832,035 94.14
Other Departments/Offices 51,836 5.86
Total 883,871 100.00

33. GAINS

Total gains of P76.76 million was higher by P29.74 million or 63.25 percent
compared to previous year of P47.02 million. Except for Gain from Changes in
Fair Value Less Cost to Sell of Biological Assets Due to Price Change, all other
gains accounts reported increases. The breakdown of gains are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Gain on Initial Recognition of Biological Assets 19,479 19,218
Gain on Sale of Biological Assets 9,126 2,726
Gain from Changes in Fair Value Less Cost to Sell of
Biological Assets Due to Physical Change 29,943 19,469
Gain from Changes in Fair Value Less Cost to Sell of
Biological Assets Due to Price Change 27 229
Gain on Sale of Agricultural Produce 14,896 5,380
Gain on Initial Recognition of Agricultural Produce 3,292 -
Total 76,763 47,021

The departments/offices/agencies with reported gains are as follows:

Amount Percent
Department/Office/Agency (in thousand pesos) to Total
Agriculture 53,230 69.34
Office of the Secretary 14,828
Philippine Carabao Center 38,402
State Universities and Colleges 22,257 29.00
Central Mindanao University 12,842
Bataan Peninsula State University 3,309
Mariano Marcos State University 1,697

191
Amount Percent
Department/Office/Agency (in thousand pesos) to Total
Other State Universities and Colleges 4,409
Education 1,216 1.58
Agrarian Reform 60 0.08
Total 76,763 100.00

34. PERSONNEL SERVICES

Total Personnel Services (PS) of P831.60 billion represented the biggest share at
54.09 percent of the total current operating expenses of P1.537 trillion. Compared
to previous year of P762.08 billion, total PS increased by P69.52 billion or 9.12
percent. The composition of PS was as follows:

2017 2016 (Restated)


Particulars
(in thousand pesos)
Salaries and Wages 430,283,694 386,789,137
Other Compensation 232,576,800 204,659,774
Personnel Benefit Contributions 49,205,823 44,097,707
Other Personnel Benefits 119,530,576 126,531,833
Total 831,596,894 762,078,452

As shown in the following table, the DepEd was the biggest spending department
for PS at P324.95 billion or 39.07 percent.

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 324,946,449 39.07
Interior and Local Government 155,221,720 18.67
National Defense 126,891,097 15.26
State Universities and Colleges 40,901,939 4.92
Health 30,770,753 3.70
The Judiciary 23,272,034 2.80
Justice 14,132,893 1.70
Public Works and Highways 13,503,202 1.62
Autonomous Region in Muslim Mindanao 11,454,681 1.38
Environment and Natural Resources 8,722,966 1.05
Sub-total 749,817,732 90.17
Other Departments/Offices 81,779,162 9.83
Total 831,596,894 100.00

34.1. Salaries and Wages

Total salaries and wages of P430.28 billion constituted 51.74 percent of the
total PS, of which P417.42 billion or 97.01 percent was paid to regular
civilian employees and uniformed personnel, and the remaining balance of
P12.86 billion or 2.99 percent was paid to casual/contractual personnel, as
shown in the following table:

192
2016
2017
Particulars (Restated)
(in thousand pesos)
Salaries and Wages-Regular 417,426,739 374,568,910
Salaries and Wages-Casual/Contractual 12,856,955 12,220,227
Total 430,283,694 386,789,137

DepEd-OSEC, DILG-PNP, and DND-PA incurred the largest amount of


salaries and wages of P219.17 billion, P42.32 billion, and P19.01 billion,
respectively. The total salaries and wages by department/office is broken
down as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 219,286,570 50.96
Interior and Local Government 52,705,758 12.25
National Defense 32,124,503 7.47
State Universities and Colleges 23,739,878 5.52
Health 17,063,205 3.97
Public Works and Highways 9,756,378 2.27
The Judiciary 9,344,059 2.17
Justice 8,129,200 1.89
Autonomous Region in Muslim Mindanao 7,600,440 1.77
Environment and Natural Resources 5,310,229 1.23
Sub-total 385,060,220 89.49
Other Departments/Offices 45,223,474 10.51
Total 430,283,694 100.00

34.2. Other Compensation

Other compensation totalling P232.58 billion was 27.97 percent of the total
PS, an increase of P27.92 billion or 13.64 percent from previous year of
P204.66 billion. This increase was mainly due to the 55.08 percent increase
in Other Bonuses and Allowances account of P19.41 billion. The top three
departments that contributed to this increase were DILG, DND, and DepEd,
with an increase of P8.74 billion, P4.69 billion, and P3.09 billion,
respectively. The comparative details of other compensation are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Personal Economic Relief Allowance (PERA) 35,180,796 33,546,336
Representation Allowance (RA) 2,083,438 2,180,054
Transportation Allowance (TA) 1,879,067 1,744,338
Clothing/Uniform Allowance 9,138,597 8,502,623
Subsistence Allowance 23,347,614 21,863,593
Laundry Allowance 275,658 264,484
Quarters Allowance 1,900,292 1,892,843
Productivity Incentive Allowance 624,328 742,377
Overseas Allowance 5,560,915 5,341,564
Honoraria 3,148,861 3,156,930
Hazard Pay 7,918,659 6,115,648
Longevity Pay 19,376,026 18,059,261

193
2016
2017
Particulars (Restated)
(in thousand pesos)
Overtime and Night Pay 1,428,832 1,231,732
Year End Bonus 58,757,033 57,830,874
Cash Gift 7,305,834 6,947,067
Other Bonuses and Allowances 54,650,848 35,240,049
Total 232,576,800 204,659,774

The top spenders for this group of accounts are DepEd-OSEC, DILG-PNP,
and DND-PA, with P70.67 billion, P54.58 billion, and P25.39 billion,
respectively. The departments/offices and their respective expenses for
total other compensation are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 70,721,163 30.41
Interior and Local Government 62,993,109 27.08
National Defense 38,952,319 16.75
State Universities and Colleges 11,197,979 4.81
Health 10,382,436 4.46
Foreign Affairs 5,042,995 2.17
Justice 3,474,763 1.49
The Judiciary 3,445,481 1.48
Transportation 2,844,763 1.22
Public Works and Highways 2,562,587 1.10
Sub-total 211,617,596 90.99
Other Departments/Offices 20,959,204 9.01
Total 232,576,800 100.00

34.3. Personnel Benefit Contributions

Government’s share in personnel benefit contributions of P49.21 billion


was 5.92 percent of the total PS. Compared to previous year’s figure of
P44.10 billion, there was an increase of P5.11 billion or 11.58 percent. The
comparative details of personnel benefit contributions are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Retirement and Life Insurance Premiums 40,699,160 36,283,948
Pag-IBIG Contributions 1,964,935 1,741,714
PhilHealth Contributions 4,590,407 4,293,290
Employees Compensation Insurance Premiums 1,791,983 1,675,189
Provident/Welfare Fund Contributions 159,337 103,567
Total 49,205,823 44,097,707

The total personnel benefit contributions was incurred by the


departments/offices as follows:

194
Amount Percent
Department/Office
(in thousand pesos) to Total
Education 30,317,052 61.61
State Universities and Colleges 3,191,279 6.49
Health 2,350,011 4.78
Interior and Local Government 1,782,942 3.62
National Defense 1,041,663 2.12
Autonomous Region in Muslim Mindanao 1,041,330 2.12
The Judiciary 1,017,016 2.07
Budget and Management 868,817 1.77
Public Works and Highways 778,475 1.58
Environment and Natural Resources 722,878 1.47
Sub-total 43,111,464 87.61
Other Departments/Offices 6,094,359 12.39
Total 49,205,823 100.00

34.4. Other Personnel Benefits

Other personnel benefits of P119.53 billion, which represented 14.37


percent of the total PS, was lower by P7 billion or 5.53 percent than
previous year’s total of P126.53 billion. The comparative details of other
personnel benefits are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Pension Benefits 78,431,789 79,930,495
Retirement Gratuity 7,474,277 8,469,627
Terminal Leave Benefits 14,153,622 15,475,126
Other Personnel Benefits 19,470,889 22,656,585
Total 119,530,576 126,531,833

The total other personnel benefits was incurred by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
National Defense 54,772,611 45.82
Interior and Local Government 37,739,911 31.57
The Judiciary 9,465,478 7.92
Education 4,621,663 3.87
State Universities and Colleges 2,772,803 2.32
Justice 1,834,360 1.53
Commission on Audit 1,294,751 1.08
Transportation 1,155,395 0.97
Health 975,101 0.82
Congress 858,155 0.72
Sub-total 115,490,228 96.62
Other Departments/Offices 4,040,349 3.38
Total 119,530,576 100.00

195
35. MAINTENANCE AND OTHER OPERATING EXPENSES

Total Maintenance and Other Operating Expenses (MOOE) of P302.21 billion was
19.66 percent of the total current operating expenses. FY 2017 MOOE had a net
increase of P55.18 billion or 22.34 percent compared to previous year of P247.03
billion mainly due to increases in three major components, as follows: Other
Maintenance and Operating Expenses of P17.43 billion, Supplies and Materials of
P9.49 billion, and Professional Services of P7.94 billion.

The top five major components of MOOE are Supplies and Materials Expenses of
P69.67 billion or 23.05 percent; Other Maintenance and Operating Expenses of
P63.55 billion or 21.03 percent; Professional Services of P31.11 billion or 10.30
percent; Training and Scholarship Expenses of P30.80 billion or 10.19 percent; and
Repairs and Maintenance of P26.96 billion or 8.92 percent. The components of
MOOE are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Traveling Expenses 14,520,669 12,220,251
Training and Scholarship Expenses 30,792,183 23,802,037
Supplies and Materials Expenses 69,669,031 60,177,324
Utility Expenses 14,299,955 12,878,663
Communication Expenses 4,644,623 4,360,674
Awards/Rewards and Prizes 758,616 670,415
Survey, Research, Exploration and Development Expenses 989,288 909,689
Demolition/Relocation and Desilting/Dredging Expenses 63,862 32,867
Generation, Transmission and Distribution Expenses 7,957 14,510
Confidential, Intelligence and Extraordinary Expenses 8,967,373 4,444,111
Professional Services 31,113,658 23,176,078
General Services 15,029,871 13,528,385
Repairs and Maintenance 26,955,059 25,037,838
Taxes, Insurance Premiums and Other Fees 17,703,079 17,281,247
Labor and Wages 3,145,691 2,376,453
Other Maintenance and Operating Expenses 63,547,855 46,118,265
Total 302,208,768 247,028,808

The DepEd incurred the biggest amount of MOOE at P37.27 billion or 12.33
percent of the total MOOE. Other departments/offices and their corresponding
MOOE are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 37,265,479 12.33
Health 33,023,154 10.93
National Defense 22,612,995 7.48
Interior and Local Government 21,802,265 7.21
Finance 20,161,722 6.67
State Universities and Colleges 19,534,237 6.46
Other Executive Offices 17,359,431 5.74
Agriculture 17,028,366 5.63
Public Works and Highways 16,218,640 5.37

196
Amount Percent
Department/Office
(in thousand pesos) to Total
Office of the President 14,944,767 4.95
Sub-total 219,951,056 72.78
Other Departments/Offices 82,257,712 27.22
Total 302,208,768 100.00

35.1. Traveling Expenses

Traveling expenses totalling P14.52 billion represented 4.80 percent of the


total MOOE. This group of accounts posted an increase of P2.30 billion or
18.82 percent from previous year’s total of P12.22 billion. The comparative
details are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Traveling Expenses-Local 11,923,446 9,853,015
Traveling Expenses-Foreign 2,597,222 2,367,236
Total 14,520,669 12,220,251

The total traveling expenses was incurred by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 2,284,883 15.74
Agriculture 1,182,230 8.14
Environment and Natural Resources 968,212 6.67
National Defense 967,499 6.66
Other Executive Offices 881,132 6.07
State Universities and Colleges 860,782 5.93
Social Welfare and Development 801,759 5.52
Health 651,309 4.49
Public Works and Highways 586,420 4.04
Foreign Affairs 566,487 3.90
Sub-total 9,750,713 67.15
Other Departments/Offices 4,769,955 32.85
Total 14,520,669 100.00

35.2. Training and Scholarship Expenses

Training and scholarship expenses totalling P30.79 billion represented


10.19 percent of the total MOOE. This group of accounts posted an increase
of P6.99 billion or 29.37 percent from previous year’s total of P23.80
billion. The comparative details are as follows:

197
2016
2017
Particulars (Restated)
(in thousand pesos)
Training Expenses 20,758,854 15,763,438
Scholarship Grants/Expenses 10,033,329 8,038,599
Total 30,792,183 23,802,037

The total training and scholarship expenses was incurred by the following
departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 6,928,262 22.50
Other Executive Offices 5,616,451 18.24
State Universities and Colleges 4,819,319 15.65
Interior and Local Government 2,135,752 6.94
Agriculture 2,078,410 6.75
Health 1,773,235 5.76
Social Welfare and Development 1,297,271 4.21
Science and Technology 1,148,445 3.73
National Defense 1,012,786 3.29
Environment and Natural Resources 843,728 2.74
Sub-total 27,653,658 89.81
Other Departments/Offices 3,138,524 10.19
Total 30,792,183 100.00

35.3. Supplies and Materials Expenses

This group of accounts in the total amount of P69.67 billion or 23.05


percent is the top component of MOOE. It posted an increase of P9.49
billion or 15.77 percent from previous year’s amount of P60.17 billion.
Overall increase was attributed to the significant increases in semi-
expendable expenses, welfare goods expenses, and textbooks and
instructional materials expenses. The comparative details of supplies and
materials expenses are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Office Supplies Expenses 12,162,915 11,115,972
Accountable Forms Expenses 4,201,612 3,557,379
Non-Accountable Forms Expenses 32,212 39,145
Animal/Zoological Supplies Expenses 216,947 179,184
Food Supplies Expenses 8,299,112 6,723,404
Welfare Goods Expenses 2,671,810 1,651,314
Drugs and Medicines Expenses 5,801,544 4,802,767
Medical, Dental and Laboratory Supplies
Expenses 7,285,642 5,777,222
Fuel, Oil and Lubricants Expenses 8,321,352 7,851,693
Agricultural and Marine Supplies Expenses 2,992,384 3,145,209
Textbooks and Instructional Materials Expenses 1,788,248 1,122,188
Military, Police and Traffic Supplies Expenses 1,115,668 1,258,351
Chemical and Filtering Supplies Expenses 90,108 98,164

198
2016
2017
Particulars (Restated)
(in thousand pesos)
Semi-Expendable Machinery and Equipment
Expenses 1,876,434 1,205,550
Semi-Expendable Furniture, Fixtures and Books
Expenses 1,169,068 844,460
Other Supplies and Materials Expenses 11,643,974 10,805,321
Total 69,669,031 60,177,324

Expenses in this group of accounts were topped by DOH-OSEC, DepEd-


OSEC and DILG-PNP amounting to P12.99 billion, P12.29 billion, and
P5.88 billion, respectively. The departments/offices with their
corresponding expenses for supplies and materials are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 13,013,099 18.68
Education 12,314,302 17.68
Interior and Local Government 10,951,589 15.72
National Defense 7,732,503 11.10
Agriculture 4,091,972 5.87
State Universities and Colleges 3,387,852 4.86
Foreign Affairs 3,233,693 4.64
Social Welfare and Development 2,883,376 4.14
Public Works and Highways 2,285,541 3.28
Transportation 2,146,572 3.08
Sub-total 62,040,499 89.05
Other Departments/Offices 7,628,532 10.95
Total 69,669,031 100.00

35.4. Utility Expenses

Utility expenses totalling P14.30 billion represented 4.73 percent of the


total MOOE. This group of accounts posted an increase of P1.42 billion or
11.04 percent from previous year’s total of P12.88 billion. The comparative
details are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Water Expenses 2,842,662 2,592,717
Electricity Expenses 11,443,839 10,281,269
Gas/Heating Expenses 6,359 4,200
Other Utility Expenses 7,095 477
Total 14,299,955 12,878,663

Total utility expenses was incurred by the following departments/offices:

199
Amount Percent
Department/Office
(in thousand pesos) to Total
Education 2,851,197 19.94
State Universities and Colleges 2,141,973 14.98
National Defense 1,846,071 12.91
Health 1,491,039 10.43
Interior and Local Government 1,217,893 8.52
Transportation 557,423 3.90
Finance 447,075 3.13
Public Works and Highways 410,089 2.87
Other Executive Offices 378,282 2.65
Agriculture 372,026 2.60
Sub-total 11,713,069 77.64
Other Departments/Offices 2,586,885 18.09
Total 14,299,955 100.00

35.5. Communication Expenses

Communication expenses totalling P4.64 billion represented 1.54 percent


of the total MOOE. This group of accounts posted an increase of P283.95
million or 6.51 percent from previous year’s total of P4.36 billion. The
comparative details are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Postage and Courier Services 388,120 354,336
Telephone Expenses 2,266,442 2,114,061
Internet Subscription Expenses 1,770,644 1,666,117
Cable, Satellite, Telegraph and Radio Expenses 219,417 226,160
Total 4,644,623 4,360,674

Total communication expenses was incurred by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Education 826,257 17.79
National Defense 416,578 8.97
State Universities and Colleges 407,780 8.78
Interior and Local Government 345,426 7.44
Science and Technology 241,658 5.20
Health 206,165 4.44
Agriculture 194,564 4.19
Social Welfare and Development 191,478 4.12
Other Executive Offices 185,058 3.98
Finance 152,254 3.28
Sub-total 3,167,218 68.19
Other Departments/Offices 1,477,405 31.81
Total 4,644,623 100.00

200
35.6. Awards/Rewards and Prizes

Awards/Rewards and Prizes totalling P758.62 million represented 0.25


percent of the total MOOE. This group of accounts posted an increase of
P88.20 million or 13.16 percent from previous year of P670.42 million. The
comparative details are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Awards/Rewards Expenses 521,042 531,759
Prizes 237,255 137,883
Indemnities 319 772
Total 758,616 670,415

Total awards/rewards and prizes was incurred by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Other Executive Offices 222,686 29.35
State Universities and Colleges 170,872 22.52
Agriculture 165,893 21.87
Interior and Local Government 46,985 6.19
Science and Technology 36,854 4.86
Health 34,834 4.59
National Defense 22,239 2.93
Education 16,094 2.12
Justice 13,175 1.74
Social Welfare and Development 7,166 0.94
Sub-total 736,798 97.12
Other Departments/Offices 21,818 2.88
Total 758,616 100.00

35.7. Survey, Research, Exploration and Development Expenses

Survey, research, exploration and development expenses totalling P989.29


million represented 0.33 percent of the total MOOE. This group of accounts
posted an increase of P79.60 million or 8.75 percent from previous year’s
total of P909.69 million. The comparative details are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Survey Expenses 650,725 679,316
Research, Exploration and Development Expenses 338,563 230,373
Total 989,288 909,689

Total survey, research, exploration and development expenses was incurred


by the following departments/offices:

201
Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 452,021 45.69
Agrarian Reform 202,382 20.46
Environment and Natural Resources 129,502 13.09
National Economic and Development Authority 60,064 6.07
State Universities and Colleges 54,988 5.56
Science and Technology 36,225 3.66
Education 27,925 2.82
Other Executive Offices 11,165 1.13
Agriculture 9,503 0.96
Health 2,356 0.24
Sub-total 986,131 99.68
Other Departments/Offices 3,158 0.32
Total 989,288 100.00

35.8. Demolition/Relocation and Desilting/Dredging Expenses

Demolition/relocation and desilting/dredging expenses totalling P63.86


million represented 0.02 percent of the total MOOE. This group of accounts
posted an increase of P30.99 million or 94.30 percent from FY 2016 total
of P32.87 million. The comparative details are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Demolition and Relocation Expenses 18,359 15,667
Desilting and Dredging Expenses 45,503 17,200
Total 63,862 32,867

Demolition/relocation and desilting/dredging expense was incurred by the


following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Metro Manila Development Authority 31,426 49.21
Other Executive Offices 28,178 44.12
State Universities and Colleges 2,143 3.36
National Defense 750 1.17
Education 717 1.12
Public Works and Highways 648 1.01
Total 63,862 100.00

35.9. Generation, Transmission and Distribution Expenses

Generation, transmission and distribution expenses totalling P7.96 million


represented 0.003 percent of the total MOOE. This account posted a
decrease of P6.55 million or 45.16 percent from previous year’s total of
P14.51 million. MSU-Marawi was the only agency which reported this
expense.

202
35.10. Confidential, Intelligence and Extraordinary Expenses

Confidential, intelligence and extraordinary expenses totalling P8.98


billion represented 2.97 percent of the total MOOE. This group of accounts
posted an increase of P4.52 billion or 101.78 percent from previous year of
P4.44 billion. The comparative details are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Confidential Expenses 1,998,470 803,353
Intelligence Expenses 4,402,932 1,093,214
Extraordinary and Miscellaneous Expenses 2,565,971 2,547,544
Total 8,967,373 4,444,111

Total confidential, intelligence and extraordinary expenses was incurred by


the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Office of the President 2,515,273 28.05
National Defense 2,222,328 24.78
Congress of the Philippines 1,797,303 20.04
Interior and Local Government 883,462 9.85
Other Executive Offices 434,716 4.85
Justice 346,372 3.86
The Judiciary 236,898 2.64
Autonomous Region in Muslim Mindanao 104,502 1.17
Finance 77,243 0.86
Education 47,643 0.53
Sub-total 8,665,740 96.64
Other Departments/Offices 301,632 3.36
Total 8,967,373 100.00

35.11. Professional Services

This group of accounts aggregating P31.11 billion or 10.30 percent was the
third major component of MOOE. This account posted an increase of P7.94
billion or 34.25 percent from previous year’s total of P23.18 billion. The
overall increase was due to significant increases in consultancy services
and other professional services. The comparative details are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Legal Services 317,577 206,281
Auditing Services 77,656 71,519
Consultancy Services 6,726,780 3,091,482
Other Professional Services 23,991,645 19,806,795
Total 31,113,658 23,176,078

203
The total professional services was incurred by the following
departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Health 9,084,386 29.20
Social Welfare and Development 5,079,309 16.33
Office of the President 3,262,959 10.49
Environment and Natural Resources 2,285,001 7.34
State Universities and Colleges 1,699,147 5.46
Agriculture 1,382,275 4.44
Other Executive Offices 1,150,207 3.70
Congress of the Philippines 1,111,095 3.57
Finance 687,957 2.21
Trade and Industry 551,354 1.77
Sub-total 26,293,688 84.51
Other Departments/Offices 4,819,970 15.49
Total 31,113,658 100.00

35.12. General Services

General services totalling P15.03 billion represented 4.97 percent of the


total MOOE. This group of accounts posted an increase of P1.50 billion or
11.10 percent from previous year’s total of P13.53 billion. The comparative
details are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Environment/Sanitary Services 1,859,726 1,889,957
Janitorial Services 2,928,962 2,603,611
Security Services 4,697,924 4,219,565
Other General Services 5,543,258 4,815,253
Total 15,029,871 13,528,385

Total general services was incurred by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
State Universities and Colleges 2,364,500 15.73
Education 1,891,183 12.58
Metro Manila Development Authority 1,811,327 12.05
Health 1,309,458 8.71
Transportation 814,180 5.42
National Economic and Development Authority 618,554 4.12
Environment and Natural Resources 615,802 4.10
Finance 570,369 3.79
Other Executive Offices 479,984 3.19
Interior and Local Government 443,581 2.95
Sub-total 10,918,938 72.65
Other Departments/Offices 4,110,932 27.35
Total 15,029,871 100.00

204
35.13. Repairs and Maintenance

Total repairs and maintenance of P26.96 billion was higher by P1.92 billion
or 7.66 percent than previous year’s total of P25.04 billion. This was mainly
due to the increase in repairs and maintenance of infrastructures assets, and
building and other structures of P1.62 billion and P780.92 million,
respectively. The comparative details of repairs and maintenance expenses
are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Repairs and Maintenance-Investment Property 2,184 871
Repairs and Maintenance-Land Improvements 126,949 156,638
Repairs and Maintenance-Infrastructure Assets 9,547,097 7,922,384
Repairs and Maintenance-Buildings and Other
Structures 10,027,370 9,246,455
Repairs and Maintenance-Machinery and
Equipment 2,675,181 2,515,062
Repairs and Maintenance-Transportation
Equipment 4,255,465 4,915,195
Repairs and Maintenance-Furniture and Fixtures 163,934 159,437
Repairs and Maintenance-Leased Assets 26,032 12,090
Repairs and Maintenance-Leased Assets
Improvements 25,095 26,416
Restoration and Maintenance-Heritage Assets 2,729 2,536
Repairs and Maintenance-Semi-Expendable
Machinery and Equipment 20,982 5,805
Repairs and Maintenance-Semi-Expendable
Furniture, Fixtures and Books 10,666 15,244
Repairs and Maintenance-Other Property, Plant
and Equipment 71,375 59,705
Total 26,955,059 25,037,838

The total repairs and maintenance was incurred by the following


departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 10,090,541 37.43
Education 5,158,727 19.14
National Defense 4,410,521 16.36
Interior and Local Government 1,162,200 4.31
State Universities and Colleges 966,881 3.59
Transportation 956,166 3.55
Finance 799,623 2.97
Other Executive Offices 651,816 2.42
Agriculture 471,862 1.75
Environment and Natural Resources 406,042 1.51
Sub-total 25,074,380 93.02
Other Departments/Offices 1,880,679 6.98
Total 26,955,059 100.00

205
35.14. Other Maintenance and Operating Expenses

This group of accounts totalling P63.55 billion or 21.03 percent


representing the second major component of MOOE was higher by P17.43
billion or 37.79 percent from previous year of P46.12 billion. The increase
resulted from substantial increases in donations, rent/lease expenses,
representation expenses, and other maintenance and operating expenses.
The comparative details of other maintenance and operating expenses are
as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Advertising Expenses 1,505,258 920,138
Printing and Publication Expenses 1,918,223 1,857,197
Representation Expenses 7,614,974 4,495,337
Transportation and Delivery Expenses 682,983 693,567
Rent/Lease Expenses 12,534,676 8,486,505
Membership Dues and Contributions to
Organizations 1,740,659 1,768,889
Subscription Expenses 820,295 395,201
Donations 15,657,580 10,518,611
Litigation/Acquired Assets Expenses 30,803 37,011
Loss on Guaranty 994,919 960,800
Other Maintenance and Operating Expenses 20,047,486 15,985,010
Total 63,547,855 46,118,265

The OP, DA-OSEC, and DOT-OSEC were the leading spenders, with
P8.19 billion, P4.68 billion, and P4.58 billion, respectively. The total other
MOOE was incurred by the following departments/offices:

Amount Percent
Department/Office
(in thousand pesos) to Total
Office of the President 8,187,330 12.88
Other Executive Offices 6,375,216 10.03
Agriculture 5,258,969 8.28
Transportation 4,870,413 7.66
Health 4,200,615 6.61
Education 4,095,711 6.45
Finance 4,077,758 6.42
Interior and Local Government 3,887,097 6.12
Congress of the Philippines 3,101,988 4.88
Foreign Affairs 2,507,613 3.95
Sub-total 46,562,711 73.27
Other Departments/Offices 16,985,144 26.73
Total 63,547,855 100.00

36. FINANCIAL EXPENSES

Total financial expenses of P325.20 billion, which represented 21.15 percent of the
total current operating expenses, was higher by P9.40 billion or 2.98 percent

206
compared to previous year of P315.80 billion.

Of the total amount of P325.20 billion, the DOF accounted for P324.69 billion or
99.84 percent, of which P323.77 billion or 99.72 percent was incurred by the BTr-
NG mostly on interest expenses. The details of financial expenses are as follows:

2017 2016 (Restated)


Particulars
(in thousand pesos)
Management Supervision/Trusteeship Fees 496 9,025
Interest Expenses 323,349,088 313,631,722
Guarantee Fees 544 -
Bank Charges 1,155,589 1,220,872
Commitment Fees 189,164 150,233
Other Financial Charges 506,408 785,515
Total 325,201,289 315,797,366

37. NON-CASH EXPENSES

The total non-cash expenses of P78.43 billion, which represented 5.10 percent of
the total current operating expenses, was higher by P7.66 billion or 10.83 percent
than FY 2016 of P70.77 billion. The details are as follows:

2017 2016 (Restated)


Particulars
(in thousand pesos)
Depreciation 73,751,864 66,422,987
Amortization 845,864 203,384
Impairment Loss 3,343,153 3,986,944
Losses 488,818 153,627
Total 78,429,699 70,766,942

By department/office, the total non-cash expenses was distributed as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Public Works and Highways 45,655,447 58.21
National Defense 7,093,401 9.04
Education 5,359,379 6.83
State Universities and Colleges 3,746,496 4.78
Agriculture 3,037,563 3.87
Health 2,590,335 3.30
Interior and Local Government 2,274,247 2.90
Finance 2,058,727 2.62
Environment and Natural Resources 964,585 1.23
Transportation 908,310 1.16
Sub-total 73,688,488 93.95
Other Departments/Offices 4,741,211 6.05
Total 78,429,699 100.00

207
37.1. Depreciation

Total depreciation expense for FY 2017 posted an increase of P7.33 billion


or 11.03 percent compared to FY 2016 of P66.42 billion, mostly due to the
increase in the depreciation of infrastructure assets of P5.11 billion.

The top components of depreciation were the following: infrastructure


assets of P45.08 billion or 61.13 percent, machinery and equipment of
P12.37 billion or 16.77 percent, buildings and other structures of P7.13
billion or 9.66 percent, and transportation equipment of P6.02 billion or
8.17 percent. The breakdown of depreciation expenses is shown in the
following table:

2016
2017
Particulars (Restated)
(in thousand pesos)
Depreciation-Investment Property 9,221 11,275
Depreciation-Land Improvements 349,686 356,753
Depreciation-Infrastructure Assets 45,084,375 39,972,530
Depreciation-Buildings and Other Structures 7,125,699 6,784,400
Depreciation-Machinery and Equipment 12,369,989 11,066,517
Depreciation-Transportation Equipment 6,023,788 5,322,755
Depreciation-Furniture, Fixtures and Books 763,057 875,250
Depreciation-Leased Assets 91,513 66,409
Depreciation-Leased Assets Improvements 28,999 36,488
Depreciation-Heritage Assets 2,662 8,042
Depreciation-Service Concession Assets 1,545,220 1,545,177
Depreciation-Other Property, Plant and Equipment 357,655 377,389
Total 73,751,864 66,422,987

The top five departments with big amounts of depreciation expenses are:
DPWH – P45.51 billion or 61.70 percent; DND – P6.93 billion or 9.40
percent; DepEd – P4.90 billion or 6.64 percent; SUCs – P3.65 or 4.95
percent; and DOH – P2.56 billion or 3.47 percent.

37.2. Amortization

Total amortization of P845.86 million or 1.08 percent of the total non-cash


expenses pertained to amortization of intangible assets such as
patents/copyrights, computer software, websites and other intangible
assets. The top three departments with highest amounts of amortization are:
DepEd – P460.27 million or 54.41 percent; DPWH – P146.77 million or
17.35 percent; and The Judiciary – P82.49 million or 9.75 percent.

DepEd-OSEC amortization increased significantly by P460.13 million due


to increase in the amount of computer software.

208
37.3. Impairment Loss

Total impairment loss for FY 2017 registered a decrease of P643.79 million


or 16.15 percent from FY 2016 of P3.99 billion. The comparative details of
impairment loss are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Impairment Loss-Financial Assets Held to
Maturity - 6,238
Impairment Loss-Loans and Receivables ,027,424 664,806
Impairment Loss-Lease Receivables 14 16
Impairment Loss-Other Receivables 990,824 3,119,838
Impairment Loss-Inventories 12,874 -
Impairment Loss-Investment Property - 128
Impairment Loss-Property, Plant and Equipment 267,544 173,047
Impairment Loss-Biological Assets 1,076 243
Impairment Loss-Intangible Assets 16,082 130
Impairment Loss-Other Assets 27,316 22,497
Total 3,343,153 3,986,944

The top three departments/offices with big amounts of impairment loss are:
DA – P1.51 billion or 45.09 percent, DOF – P1.37 billion or 40.99 percent,
and DND – P159 million or 4.76 percent.

37.4. Losses

Details of losses, all pertaining to biological assets, are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Loss on Sale of Biological Assets 9,655 1,521
Loss on Sale of Agricultural Produce - 19
Loss on Initial Recognition of Biological Assets 5 -
Loss from Changes in Fair Value Less Costs to
Sell of Biological Assets Due to Physical
Change 478,822 152,060
Loss from Changes in Fair Value Less Costs to
Sell of Biological Assets Due to Price Change 337 26
Total 488,818 153,627

Of the total losses, P487.48 million or 99.73 percent was incurred by the
DA-PCC.

38. NET FINANCIAL ASSISTANCE/SUBSIDY

The negative balance of P802.51 billion in net financial assistance/subsidy is the


difference between the financial assistance/subsidy from NGAs, LGUs, and
GOCCs of P3.29 billion and financial assistance/subsidy to NGAs, LGUs, GOCCs,
209
and NGOs/POs of P805.80 billion. FY 2017 negative balance was higher by
P69.74 billion than previous year’s negative balance of P732.77 billion. The
comparative data are as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Financial Assistance/Subsidy from NGAs, LGUs and
GOCCs
Assistance from Local Government Units 3,286,118 3,252,671
Assistance from Government-Owned or Controlled
Corporations 4,384 32,557
Total 3,290,501 3,285,227
Less: Financial Assistance/Subsidy to NGAs, LGUs,
GOCCs and NGOs/POs
Subsidy to NGAs 203,639 10,431,516
Financial Assistance to Local Government Units 50,988,269 48,861,287
Budgetary Support to Government-Owned or Controlled
Corporations 133,700,972 135,043,592
Financial Assistance to NGOs/POs 539,115 478,311
Internal Revenue Allotment 486,883,083 428,617,582
Subsidies-Others 133,480,572 112,623,035
Total 805,795,650 736,055,322
Net Financial Assistance/Subsidy (802,505,149) (732,770,094)

For purposes of FS consolidation, the following financial assistance and subsidy


from and to accounts were eliminated as follows:

2016
2017
Particulars (Restated)
(in thousand pesos)
Financial Assistance/Subsidy from NGAs, LGUs and
GOCCs
Subsidy from National Government 2,523,084,117 2,073,881,103
Subsidy from Other National Government Agencies 20,627,167 17,129,119
Subsidy from Other Funds 687,342 2,447,154
Subsidy from Central Office 36,746,311 32,179,254
Subsidy from Regional Office/Staff Bureaus 3,033,810 519,782
Total 2,584,178,747 2,126,156,411
Less: Financial Assistance/Subsidy to NGAs, LGUs,
GOCCs and NGOs /POs
Subsidy to NGAs 2,523,084,117 2,073,881,103
Financial Assistance to NGAs 9,611,354 18,145,371
Subsidy to Regional Offices/Staff Bureaus 18,979,337 27,035,524
Subsidy to Operating Units 26,084,026 15,602,023
Subsidy to Other Funds 21,936 267,668
Subsidies-Others 6,397,977 (8,775,278)
Total 2,584,178,747 2,126,156,411
Net Financial Assistance/Subsidy - -

210
38.1. Financial Assistance/Subsidy from NGAs, LGUs and GOCCs

a. Assistance from Local Government Units

FY 2017 Assistance from LGUs of P3.29 billion was higher by P33.45


million or 1.03 percent than previous year of P3.25 billion. Of this
amount, P3.11 billion or 94.67 percent was reported by MMDA. This
represented the amount withheld by the DBM from the IRA of NCR
LGUs and released to the MMDA for its operational use pursuant to
R.A. No. 7924, an act creating the MMDA. The departments/offices
which received financial assistance from LGUs are as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Metro Manila Development Authority 3,110,954 94.67
Education 77,344 2.35
Health 26,703 0.81
State Universities and Colleges 24,195 0.74
Interior and Local Government 22,462 0.68
Other Executive Offices 15,383 0.47
Office of the President 5,650 0.17
Social Welfare and Development 2,403 0.07
Transportation 500 0.02
Environment and Natural Resources 411 0.01
Science and Technology 112 0.00
Total 3,286,118 100.00

b. Assistance from Government-Owned or Controlled


Corporations

GOCCs’ assistance of P4.38 million was lower by P28.17 million or


86.54 percent than previous year’s amount of P32.56 million. FY 2017
recipients of financial assistance from GOCCs are PCOO-OSEC and
DepEd amounting to P3.45 million and P933.50 thousand, respectively.
The assistance received by PCOO-OSEC from PAGCOR were
supplemental funds for the production of photo of President Rodrigo
Duterte.

38.2. Financial Assistance/Subsidy to NGAs, LGUs, GOCCs and NGOs/POs

a. Subsidy to NGAs

Subsidy to NGAs account is used by the BTr to recognize


replenishments made to AGDBs for negotiated MDS checks and other
payments on accounts of NGAs. After the elimination of Subsidy to
NGAs, this account had a balance of P203.64 million, representing the
replenishment of MDS checks issued by NGAs in FY 2016 but
presented for encashment only in FY 2017.

211
b. Financial Assistance to Local Government Units

Financial Assistance to LGUs totalled to P50.99 billion, an increase of


P2.13 billion or 4.35 percent from previous year’s P48.86 billion.

The Financial Assistance to LGUs reported by DOF BTr-NG at P42.90


billion consisted of special shares of LGUs from the proceeds of
National Taxes – P3.92 billion, Local Government Support Fund –
P38.95 billion, and Pension and Gratuity Fund – P21.13 million.

The departments/offices which reported Financial Assistance to LGUs


were as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance-BTr NG 42,898,707 84.13
Health 4,418,890 8.67
Interior and Local Government 2,026,135 3.97
Agriculture 607,362 1.19
Transportation 297,272 0.58
Agrarian Reform 201,547 0.40
Other Executive Offices 178,620 0.35
Budget and Management 124,813 0.24
Labor and Employment 94,690 0.19
Environment and Natural Resources 69,345 0.14
Education 51,721 0.10
Autonomous Region in Muslim Mindanao–
Office of the Regional Governor 14,350 0.03
Tourism 4,815 0.01
Total 50,988,269 100.00

c. Budgetary Support to Government-Owned or


Controlled Corporations

Budgetary support to GOCCs aggregated to P133.70 billion, a decrease


of P1.34 billion or 0.99 percent from previous year’s total of P135.04
billion. The departments/offices which reported budgetary support to
GOCCs were as follows:

Amount Percent
Department/Office
(in thousand pesos) to Total
Finance-BTr NG 131,077,677 98.04
Health 2,405,707 1.80
Transportation 170,339 0.13
Tourism 45,577 0.03
Other Executive Offices-National Commission
for Culture and the Arts-Proper 1,010 0.00
Interior and Local Government 553 0.00
Education 110 0.00
Total 133,700,972 100.00

212
The details of budgetary support of P131.08 billion to 39 GOCCs
reported by the DOF-BTr NG are as follows:

Amount
Percent
Particulars (in thousand
to Total
pesos)
1. Philippine Health Insurance Corporation 47,190,663 36.00
2. National Irrigation Administration 30,141,824 23.00
3. National Housing Authority 19,557,279 14.92
4. National Food Authority 5,105,468 3.89
5. Manila International Airport Authority 3,609,522 2.75
6. Philippine Economic Zone Authority 2,805,266 2.14
7. Philippine Crop Insurance Corporation 2,500,000 1.91
8. Subic Bay Metropolitan Authority 2,173,951 1.66
9. National Electrification Administration 2,050,736 1.56
10. Bases Conversion and Development Authority 1,350,590 1.03
11. Philippine Coconut Authority 1,324,117 1.01
12. Social Housing Finance Corporation 1,246,205 0.95
13. National Power Corporation 1,191,680 0.91
14. Sugar Regulatory Administration 1,136,211 0.87
15. Local Water Utilities Administration 1,000,801 0.76
16. National Home Mortgage Finance Corporation 1,000,000 0.76
17. Small Business Guarantee and Finance
Corporation 936,778 0.71
18. Light Rail Transit 819,389 0.63
19. Philippine Children’s Medical Center 676,936 0.52
20. Philippine Heart Center 613,594 0.47
21. Philippine Rice Research Institute 561,000 0.43
22. Social Security System 541,076 0.41
23. Philippine Postal Corporation 536,537 0.41
24. Philippine National Railways 516,491 0.39
25. National Kidney and Transplant Institute 468,089 0.36
26. Cultural Center of the Philippines 320,365 0.24
27. Development Academy of the Philippines 285,262 0.22
28. Lung Center of the Philippines 265,190 0.20
29. Center for International Trade Expositions &
Mission 220,000 0.17
30. National Dairy Authority 199,945 0.15
31. Philippine Institute for Development Studies 163,537 0.12
32. People’s Television Network Incorporated 137,975 0.11
33. Philippine Institute of Traditional &
Alternative Health Care 109,539 0.08
34. Philippine Fisheries Development Authority 98,284 0.07
35. Zamboanga City Special Economic Zone
Authority 50,000 0.04
36. Credit Information Corporation 47,574 0.04
37. Philippine Center for Economic Development 44,745 0.03
38. Southern Philippines Development Authority 41,058 0.03
39. Aurora Pacific Economic Zone & Freeport
Authority 40,000 0.03
Total 131,077,677 100.00

d. Financial Assistance to NGOs/POs

Financial Assistance to NGOs/POs increased by P60.80 million or

213
12.71 percent from previous year’s amount of P478.31 million. OEO-
NCCA reported the highest amount of P140.36 million or 26.03
percent, followed by DepEd-OSEC and DA with amounts of P104.72
million or 19.42 percent, and P78.99 million or 14.65 percent,
respectively.

e. Internal Revenue Allotment

IRA is the annual share of LGUs from national internal revenue taxes.
Section 85 of the General Provisions of FY 2017 GAA provides that
IRA and all LGU shares appropriated therein shall be directly released
by the DOF-BTr to the LGU beneficiaries through AGDBs. For FY
2017, the DOF-BTr NG reported a total of P486.88 billion IRA for
LGUs.

f. Subsidies-Others

This account refers to the financial assistance given to individuals and


institutions other than government agencies or NGOs/POs for
implementation of government programs/projects/activities. FY 2017
total Subsidies-Others of P133.48 billion was P20.86 billion or 18.52
percent higher than previous year of P112.62 billion. DSWD-OSEC
reported P108.67 billion or 81.42 percent, consisting of cash grants for
4Ps beneficiaries.

39. NON-OPERATING INCOME/GAINS

This group of accounts is broken down as follows: