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COMMISSION ON AUDIT
OF.FICE OF THE CHAIRPERSON
27 September 2012
His Excellem:y
BENIGNO SIMEON C. AQUINO III
President of the Philippines
Malacafiang, Manila
The Audit Performance Summary Report contains the highlights of the Annual Financial
Reports, for quick reference.
find it useful.
This is our first Report of this nature, and we trust that you will
COMMISSION ON AUDIT
OFFICE OF TilE CHAIRPERSON
Commonwealth Avenue, Quezon City, Philippines
27 September 2012
His Excellency
BENIGNO SIMEON C. AQUINO Ill
President o f the Philippines
Malacaiiang, Manila
2.
The Audit Performance Summary Report contains the highlights of the Annual Financial
Reports, for quick reference.
find it useful.
This is our first Report of this nature, and we trust that you will
.
Phohe: (632) 952-5700 local I 0 II /931-9232 /931-9220 /951-0936
Fax: (632) 931-9223
Email: cmgplan@coa.gov.ph
Website: www.coa.guv.ph
27 September 2012
The Honorable
JUAN PONCE ENRILE
President, Philippine Senate
GS.IS Complex, Pasay City
I have the honor to submit, pursuant to Section 4, Article IX-D of the Constitution of the
Philippines, the following 2011 reports:
1.
2.
The Audit Performance Summary Report contains the highlights of the Annual Financial
Reports, for quick reference.
find it useful.
This is our first Report of this nature, and we trust that you will
27 September 2012
The Honorable
FELICIANO R. BELMONTE, JR.
Speaker, House of Representatives
National Government Center
Quezon City
The Audit Performance Summary Report contains the highlights of the Annual Financial
Reports, for quick reference. This is our first Report of this nature, and we trust that you will
find it useful.
If
Fax:
27 September 2012
The Honorable
FRANKLIN M. DRILON
Chairman, Committee on Finance
Philippine Senate
GSIS Complex, Pasay City
1.
2.
lB)
II-B)
The Audit Performance Summary Report contains the highlights of the Annual Financial
Reports, for quick reference.
find it useful.
This is our first Report of this nature, and we trust that you will
27 September 2012
The Honorable
CHAIRMAN, COMMITIEE ON APPROPRIATIONS
House of Representatives
National Government Center
Quezon City
I have the honor to submit, pursuant to Section 4, Article IX-D of the Constitution of the
Philippines, the following 2011 reports:
1.
2.
The Audit Performance Summary Report contains the highlights of the Annual Financial
Reports, for quick reference.
find It useful.
This is our first Report of this nature, and we trust that you will
2011
Annual Financial Report
National Government
Volume I-A
TABLE OF CONTENTS
Page
I.
INTRODUCTION
II.
REPORT HIGHLIGHTS
III.
18
Overview
Appropriations, Allotments, Obligations and Balances
IV.
FINANCIAL STATEMENTS
Condensed Balance Sheet
Condensed Statement of Income and Expenses
Condensed Statement of Government Equity
Condensed Statement of Cash Flows
Notes to Financial Statements
V.
44
45
46
47
48
FINANCIAL ANALYSES
Balance Sheet
Assets
Liabilities
Equity
59
88
112
VI.
121
VII.
139
VIII.
144
IX.
158
Table No.
Particulars
Report Highlights
II-1
II-2
II-3
II-4
II-5
III-1
III-2
III-3
III-4
III-5
III-6
III-7
III-8
III-9
III-10
III-11
III-12
III-13
III-14
III-15
III-16
III-17
III-18
III-19
III-20
V.1-1
V.1-2
V.1-3
V.1-4
V.1-5
V.1-6
V.1-7
V.1-8
ii
V.1-9
V.1-10
V.1-11
V.1-12
V.1-13
V.1-14
V.1-15
V.1-16
V.1-17
V.1-18
V.1-19
V.2-1
V.2-2
V.2-3
V.2-4
V.2-5
V.2-6
V.2-7
V.2-8
V.2-9
V.2-10
V.2-11
V.2-12
V.2-13
V.2-14
V.2-15
V.2-16
V.2-17
V.2-18
V.2-19
V.2-20
V.2-21
V.2-22
V.2-23
V.2-24
V.2-25
V.2-26
V.2-27
V.2-28
V.2-29
V.2-30
iii
V.2-31
V.3-1
V.3-2
V.3-3
V.3-4
V.3-5
V.3-6
V.3-7
V.3-8
V.3-9
V.3-10
VI-1
VI-2
VI-3
VI-4
VI-5
VI-6
VI-7
VI-8
VI-9
VI-10
VI-11
VII-1
VIII-1
VIII-2
VIII-3
VIII-4
Appropriation of CARP
Statement of Appropriations, Allotments, Obligations and Balances
Balance Sheet
Statement of Income and Expenses
iv
Particulars
Chart No.
Report Highlights
II-1
II-2
II-3
II-4
II-5
II-6
III-1
III-2
V.1-1
V.1-2
V.1-3
V.1-4
V.2-1
V.2-2
V.3-1
V.3-2
VI-1
VI-2
VI-3
VI-4
VI-5
VI-6
NG Debt by Source
Domestic Debt by Legal Source
Foreign Debt by Legal Source
NG Debt Growth
Actual Debt Service Expenditures of the NG
Principal Repayments of the NG
Special Account in the General Fund
VII-1
VII-2
ACRONYMS
AAB
AAR
ABC
ABM
ACEF
ACPC
ADB
AFMP
AFP
AFPSLAI
AFR
AGDB
AGPF
AHS
ALDA
ALGU
ALI
ALI
AMWSLAI
ANC
AO
APP
APT
ARBOs
ARBs
ARCMTS
ARCPII
ARCs
ARE
ARF
ARISP
ARMM
ASU
AVACC
AVAs
BAC
BB
BC
BESF
BFAD
BFAR
BFT
BIR
BMBE
BnB
BOC
BOO
BOQ
BS
BSF
BSGC
BSP
BSPMC
BSWM
BTr
BU
BUPRE
BWSC
C.N.A.
CARP
CB-BOL
CCCP
CCNTS
CCT
CDF
CENRO
vi
CFLs
CHD
CHED
CHR
CICT
ACRONYMS
FLA
FMR
FS
FY
GAA
GAAM
GAAP
GAS
GFIs
GHQ
GL
GMDSS
GOCCs
GOP
GSIS
HBR
HDMF
HEDF
HEI
HGC
HIFHI
HILROS
HUDCC
IA
IACAT
IAs
IBRD
IBs
IGP
ILS
IMF
IRA
IROWR
IRR
ISF
IT
JBIC
JDF
JORIFA
JRMSC
KGA
KMS
LABATT
LAD
LAO
LBP
LC
LCC
LCCA
LGUs
LRA
LTFRB
LTI
LTO
LUUSRAI
LWOP
MDFO
MDS
MIAA
MICP
MIGA
MLs
MMDA
MNGAS
MOA
MOOE
MPBF
MRT
vii
MRTB
MRTDC
MSMEs
MSU
MWSS
NABCOR
NAFC
NAIA
NAPCO
NASSA
NBI
NCA
NCAA
NCR
NDA
NDC
NEDA
NEUST
NFA
NG
NGAs
NGAS
NGDAD
NGLAGU
NGOs
NGP
NHA
NHMFC
NIA
NIPAS
NLRC
NLSF
NORSU
NPC
NSO
NT
NTCA
NWRB
ObR
ODA
OEO
OFW
OMB
OP
OSEC
OSG
OTC
OTOP
4Ps
PACCU
PADCC
PAF
PAGASA
ACRONYMS
PCSO
PD
PDAF
PDIC
PEEP
PEI
PENRO
PERA
PGF
PHC
PHIC/PHILHEALTH
PHILSCA
PI
PITAHC
PITC
PME
PMO
PNB
PNCC
PNHB
PNOC
PNP
PNPP
PNR
POCC
POE
POEA
POLO
POLOs
POs
PPA
PPE
PPELC
PRC
PRRC
PS
PS
PSF
PTA
PTAP
PVAO
PVB
PY
R.A.
RA
RAD
RAO
RAPAL
RASPF
RaSSFIP
RATA
RFU
RHIBs
RLIP
viii
ROCO
ROI
ROP
ROW
RPCPPE
RPMO
RPSU
RSMI
RWS
SAAOB
I. INTRODUCTION
INTRODUCTION
1.1 Legal Bases
The Commission on Audit (COA) is mandated under Section 4, Article IX-D of
the Philippine Constitution to submit to the President and Congress the Annual
Financial Report (AFR) of the National Government. On the other hand, Section 41 of
Presidential Decree No. 1445, otherwise known as the Auditing Code of the
Philippines, requires that an annual report on the financial condition and results of
operation of all agencies of the government, which shall include recommendations of
measures necessary to improve their effectiveness and efficiency shall be submitted not
later than September 30 of each year.
In conformity with this mandated function, the COA, through the Government
Accountancy Sector (GAS) submits to the President and the Congress the Annual
Financial Report (AFR) of the National Government (NG) for calendar year (CY) 2011.
1.2 Objectives
The AFR aims to provide information on the total approved budget/authorized
appropriations, releases of allotments, utilization/obligations incurred and Notice of
Cash Allocations (NCA) received by national government agencies (NGAs), cash
inflows and outflows and the financial condition and results of operations as shown in
the consolidated financial statements of the NGAs. The budget data serve as useful
tools for the Congress in the enactment of appropriations and other laws, while the other
information presented in the AFR aspires to guide the President, legislators, economic
planners and other government executives in the formulation of economic policies, in
the development of budget plans, and in aid of legislation.
1.3 Contents/Features
The AFR presents the main financial statements, namely: Balance Sheet (BS),
Statement of Income and Expenses (SIE), Statement of Government Equity (SGE) and
Statement of Cash Flows (SCF), in condensed and detailed form with comparative
figures for CYs 2010 and 2011. It also features the appropriations, allotments,
obligations and balances by department/agency and by source, and the common and
significant audit observations and recommendations.
The report comprises of the following:
Volume I-A
1.4 Methodologies
1.4.1
The SCF submitted by NGAs were analyzed and converted into the
prescribed format to facilitate inputting and processing of data into the AFR
system. Due to lack of a module to offset collections of income/revenue against
remittances to the National Treasury, manual computation was done. The
offsetting, however, was done on the overall SCF due to lack of information as
to the nature of remittances made. The intra-agency and inter-agency transfers
were also not eliminated in the absence of data as to the transferor/donor and
transferee/recipient. The system generated the overall consolidated SCF by
book, by department/office and by agency.
1.4.3
Coverage
This years financial data were obtained from the audited and advance copies of
financial statements (FS)/reports of 329 agencies. Of the total number of NGAs, only
five have not submitted their financial reports namely, Eastern Visayas State
University, Iloilo State College of Fisheries, National Climate Change Commission,
Cultural Center of the Philippines and Fiber Industry Development Authority
(National Government Book only). Of the 494 targeted number of FS/Preliminary
Trial Balances (PTBs) to be included in the AFR, 224 or 45.34 percent are based on
the audited FS while the 270 or 54.66 percent are from the advance copies of FS
submitted by the NGAs accounting units. The unsubmitted audited FS of other
departments/offices were received by GAS after the cut-off date.
REPORT HIGHLIGHTS
Appropriations
Allotments
Obligations
P1,326.79 billion
766.93 billion
315.06 billion
The details of appropriations authorized under Other Acts or laws for the year
totaling P766.93 billion were as follows:
Amount
(in million pesos)
1. Debt Service Fund (DSF)
710,264.41
Principal Repayment
444,196.12
Interest Payment
266,068.29
2. Retirement and Life Insurance Premium
25,430.61
3. Special Account in the General Fund (SAGF)
31,231.76
Total
766,926.78
1. Unobligated Allotments
RA No. 9970
Regular Appropriations
Special Purpose Fund
Automatic Appropriations
Other Acts
Regular Appropriations
Automatic Appropriations
2. Unreleased Appropriations
RA No. 9970
Regular Appropriations
Special Purpose Fund
Automatic Appropriations
Special Account in the General Fund
Total
Amount
(in million pesos)
91,315.22
81,369.65
66,812.53
12,240.31
2,316.81
9,945.57
3,256.63
6,688.94
223,750.20
223,750.20
76,347.57
147,397.63
5.00
5.00
315,065.42
Total
PS
Allotment Class
MOOE
CO
FE
1,258,396.96
758,632.14
161,804.84
11,554.05
326,405.92
286,944.24
18,999.93
_481,797.44
399,406.94
79,700.40
2,372.55
____ 317.55
-
581,698.93
184,954.91
63,222.28
8,956.95
324,564.78
286,944.24
18,999.93
194,898.02
174,267.72
18,882.15
224.55
1,523.59
-
14,420.64
3,169.73
311.04
14,420.64
2,269.22
589.46
2,548.05
294.04
20.00
9.29
6.51
-
1,620.13
294.04
16.39
0.19
921.42
3.61
9.11
766,926.78
710,264.41
444,196.12
266,068.29
25,430.61
31,231.76
136,077.38
91,315.22
81,369.65
66,812.53
12,240.31
2,316.81
9,945.57
3,256.63
6,688.94
44,762.16
9,830.80
34,931.35
2,161,401.12
2.57
2.57
-_
-
__25,435.65
-_
25,430.61
5.04
1,083.43
1,083.43
572.91
533.04
1.27
38.60
510.52
481.12
29.40
-
16,761.68
16,761.68
57,594.08
39,691.03
34,430.31
26,067.66
6,840.82
1,521.83
5,260.72
1,322.94
3,937.78
17,903.05
1,175.94
16,727.11
458,661.16 266,068.29
444,196.12 266,068.29
444,196.12
- 266,068.29
14,465.04
-_
77,399.87
-_
50,540.76
46,366.43
-_
40,211.82
5,398.22
756.38
4,174.33
-_
1,452.57
2,721.76
26,859.11
-_
8,654.87
18,204.24
-
508,316.51
656,054.69
730,959.05 266,070.86
266.07
PS
MOOE
CO
FE
Of the total allotments for CO, P444.20 billion or 60.77 percent was allotted for
loan principal repayments.
1,135,778.28 478,391.47
657,061.89 396,783.94
146,352.63 78,943.68
9,402.61
2,349.67
322,961.16
314.18
286,942.56
18,941.23
14,420.64
1,355.66
309.13
537,674.50
149,318.52
59,209.39
6,904.53
322,242.05
286,942.56
18,941.23
14,420.64
1,030.25
119,709.78
110,956.89
8,199.55
148.40
404.93
16.29
2.54
2.54
-
991.01
292.96
5.04
-
604.17
292.96
381.80
-
11.41
5.68
10.06
0.19
1.35
5.50
Source
Total
Other Acts
DSF
Principal
Interest
RLIP
SAGF
Continuing
Unobligated
RA No. 9970
Regular
SPF
Automatic
Other Acts
Regular
Automatic
Unreleased
RA No. 9970
Regular
SPF
Grand Total
PS
Expenditure Class
MOOE
CO
FE
745,975.13
710,264.41
444,196.12
266,068.29
24,806.94
10,903.78
115,539.45
76,859.16
71,976.81
60,033.65
10,501.99
1,441.17
4,882.34
1,000.03
3,882.31
38,680.29
28,811.38
24,806.94
4.44
297.63
297.63
144.33
141.45
1.27
1.62
153.30
149.61
3.69
-
10,238.88
10,238.88
50,692.42
33,039.58
29,647.69
22,093.23
6,766.61
787.85
3,391.89
514.15
2,877.74
17,652.84
444,856.58
444,196.12
444,196.12
660.46
64,549.39
43,521.95
42,184.79
37,798.96
3,734.12
651.70
1,337.16
336.27
1,000.89
21,027.45
266,068.29
266,068.29
266,068.29
-
9,311.07
29,369.22
987.54
16,665.30
8,323.53
12,703.92
1,997,292.86
503,500.48
598,605.80
629,115.75
266,070.83
2,093,720.46
1,326,793.68
758,610.01
12,566.90
229,210.85
326,405.92
286,944.24
18,999.93
14,420.64
2,025,323.74
1,258,396.96
758,632.14
11,554.05
161,804.84
326,405.92
286,944.24
18,999.93
14,420.64
68,396.73
68,396.73
(22.13)
1,012.85
67,406.01
-___
-
Source
Appropriations
SAGF
Grants and Donations
Tax Refunds
NIPAS
Sale of Assets
Other Acts
DSF
RLIP
SAGF
Continuing Appropriations
RA 9970
Alloted
Regular
SPF
Automatic
Unalloted
Regular
SPF
Automatic
Other Acts
Alloted
Regular
Automatic
Total
Allotments
Unreleased
3,169.73
2,548.05
294.04
20.00
9.29
766,926.78
710,264.41
3,169.73
2,548.05
294.04
20.00
9.29
766,926.78
710,264.41
25,430.61
25,430.61
31,231.76
315,065.42
305,119.85
81,369.65
66,812.53
12,240.31
2,316.81
223,750.20
76,347.57
147,397.63
5.00
9,945.57
9,945.57
3,256.63
6,688.94
31,231.76
136,077.38
126,131.81
81,369.65
66,812.53
12,240.31
2,316.81
44,762.16
9,830.80
34,931.35
9,945.57
9,945.57
3,256.63
6,688.94
-___
178,988.04
178,988.04
-____
178,988.04
66,516.76
112,466.27
5.00
-____
-____
-
2,408,785.89
2,161,401.12
247,384.77
Allotments
2,025,323.74
1,258,396.96
758,632.14
11,554.05
161,804.84
326,405.92
286,944.24
18,999.93
14,420.64
3,169.73
2,548.05
294.04
20.00
9.29
10
Obligations
1,881,545.98
1,135,570.86
656,855.27
9,402.61
146,352.49
322,960.48
286,942.56
18,941.23
14,420.64
1,355.66
990.33
292.96
11.41
5.68
Balance
143,777.75
122,826.10
101,776.87
2,151.44
15,452.35
3,445.44
1.68
58.70
1,814.06
1,557.72
1.08
8.59
3.61
Source
Other Acts
DSF
RLIP
SAGF
Continuing Appropriations
RA 9970
Alloted
Regular
SPF
Automatic
Unalloted
Regular
SPF
Other Acts
Alloted
Regular
Automatic
Total
Allotments
766,926.78
710,264.41
25,430.61
31,231.76
136,077.38
126,131.81
81,369.65
66,812.53
12,240.31
2,316.81
44,762.16
9,830.80
34,931.35
9,945.57
9,945.57
3,256.63
6,688.94
Obligations
745,975.13
710,264.41
24,806.94
10,903.78
115,539.45
110,657.10
71,976.81
60,033.65
10,501.99
1,441.17
38,680.29
9,311.07
29,369.22
4,882.34
4,882.34
1,000.03
3,882.31
Balance
20,951.65
623.67
20,327.98
20,537.93
15,474.71
9,392.84
6,778.88
1,738.32
875.64
6,081.87
519.73
5,562.13
5,063.23
5,063.23
2,256.60
2,806.63
2,161,401.12
1,997,085.43
164,315.69
The total unobligated allotments for the current year consist of P4.93 billion
PS, P57.45 billion MOOE and P101.94 billion CO. The balance for MOOE and
CO were retained as continuing allotments which are authorized to be used in the
following year while those for PS were reverted in accordance with the existing
laws.
2.2 Financial Condition
As of December 31, 2011, the NG had total assets of P3.299 trillion and total liabilities
of P5.382 trillion resulting to negative government equity of P2.083 trillion. Compared to the
previous year, all components of the Balance Sheet increased as shown in Chart II - 3.
Chart II- 3 Assets, Liabilities and Equity
(in trillion pesos)
5.382
3.299
2011
5.018
3.139
(2.083)
Assets
Liabilities
11
(1.880)
Equity
2010
2011
1,186.64
Current Assets
1,203.32
Investm ents
Other Assets
1,016.24
842.10
987.06
985.80
109.50
107.64
Current Assets reduced by P16.69 billion this year due to decreases in Cash
and Other Current Assets amounting to P61.66 billion and P3.78 billion,
respectively, exceeded the increases in Receivables P16.69 billion, Prepayments
P30.89 billion and Inventories P1.17 billion.
Investments growth of P174.14 billion this year was brought about by the
P161.20 billion or 26.19 percent increments in Sinking Fund contributions and
P12.94 billion improvement in Investment in Securities.
Property, Plant and Equipment, net of accumulated depreciation and Other
Assets showed minimal increases of P1.26 billion and P1.87 billion, respectively.
2.2.2 Liabilities P5.382 trillion
The value of liabilities increased from P5.018 trillion last year to P5.382
trillion or by P363.58 billion this year. The growth was contributed by the
following: Long Term Liabilities P465.98 billion and Deferred Credits P0.43
billion offset by the drop in Current Liabilities by P102.83 billion as shown in Table
II - 5.
12
5,382.01
5,018.44
363.58
7.24
Majority or 99.96 percent or P4.643 trillion of the total Long Term Liabilities
was reported by the BTr DOF, being the agency tasked to control and service
NGs public debt, both foreign or domestic.
2.2.3 Government Equity (P2.083) trillion
As in previous years, liabilities of the NG exceeded its assets resulting to
negative balance of P2.083 trillion in equity. This years level posted an increase of
P203 billion or 10.80 per cent compared to negative P1.880 trillion reported in
2009.
The increase in the negative balance was brought about by net loss from
current operation P13.62 billion, adjustments related to prior years transactions
P76.76 billion, completed public infrastructures P31.60 billion and reforestation
projects P952.19 million, which were transferred to the Registry of Public
Infrastructures and Registry of Reforestation Projects, respectively, and the
remittance to National Treasury for disposal of assets P2.59 million.
13
2010
Incom e/Revenue
60
6.
22
68
9.
29
63
7.
46
70
9.
72
1,
24
3.
68
2
.0
99
3
1,
Current Operating
Incom e from
Expenses
Current Operations
Table C.1, Revenue Program, by Source, 2010-2012, 2012 Budget of Expenditures and Sources of Financing,
DBM.
2
Ibid
3
Ibid
14
On the other hand, the general income increased by P24.31 billion from
P152.77 billion in 2010 to P177.07 billion this year. It is composed of Business
Income- P45.43 billion, Other Income P91.87 billion, Service Income P32.03
billion and Permits and Licenses P7.74 billion.
2.3.2 Current Operating Expenses P709.72 billion
The current operating expenses of the NG totaling P709.72 billion surpassed
last years amount of P637.46 billion by 11.34 percent or P72.27 billion. The
composition of the current operating expenses is as follows: PS P512.11 billion or
72.16 percent and MOOE P197.61 billion or 27.84 percent.
Expenses for PS rose by P47.89 billion this year primarily due to the
implementation of the 3rd tranche of the modified Salary Schedule for civilian
personnel and the modified Base Pay Schedule for military and uniformed
personnel, both provided under the Senate and House of Representatives Joint
Resolution No. 4, series of 2009, approved on June 17, 2009, and as mandated
under Executive Order No. 900, issued on June 23, 2010.
2.3.3 Income from Current Operations P689.29 billion
The current operation of the government for fiscal year 2011 resulted to an
income of P689.29 billion, exhibiting 13.70 percent growth or P83.07 billion more
than last years P606.22 billion.
15
491.88
171.40
353.07
(138.80)
Operating Activities
Investing Activities
1,3
65
.39
1,4
61
.69
Outflows
2,6
58
.91
2,8
30
.31
Inflows
(96.29)
Financing Activities
16
Borrowings from domestic sources representing 57.90 percent of the total debt of
the NG, increased by P156.02 billion while foreign debt grew by P83.25 billion.
From year 2002 to 2011, domestic debt showed an average growth rate of 6.58
percent or P132.85 billion per year while the annual growth of foreign debt is 5.38
percent or P81.34 billion.
17
III. APPROPRIATIONS,
ALLOTMENTS,
OBLIGATIONS AND
BALANCES
3.1 Overview
In his Budget Message, President Benigno S. Aquino III called the 2011 budget, the
first financial blueprint of his Administration, a Reform Budget, which promises to make
real the changes needed to revitalize the economy while leaving no sector behind. The
President stated that the 2011 budget was crafted with bias for the poor and vulnerable and
stressed that transparency and accountability are important thrusts of this years budget which
shall be used as strategies to combat corruption and as tools to achieve better public financial
management.
In fulfillment of the Presidents Social Contract with the Filipino People, the Aquino
Administration took steps in reducing poverty and providing sustainable development by
increasing the appropriations of the DSWD by 142.66 percent, an indication of the
Administrations sincerity in alleviating the conditions and protecting the interests of the poor
and marginalized sectors. For the year, the appropriations of the DSWD included the second
phase implementation of the KALAHI-CIDSS Project in various LGUs, conditional cash
transfers (CCT) to 2.3 million households, rice subsidy, and pension for indigent senior
citizens.
During the year, the government undertook a painstaking-yet-necessary review and
reform of cost assumptions, quality standards and procurement processes that caused delay in
the implementation of planned infrastructure projects which resulted to government under
spending, and was blamed for the lackluster economic growth in the first three quarters of
2011.
To address this, President Aquino approved the Disbursement Acceleration Program
(DAP) on October 12, 2011. The P72.11 billion funds for the DAP were taken out of savings
from completed or discontinued projects and its release to agencies and GOCCs was fast
tracked as 2011 drew to a close. As reported in the Official Gazette, the DAP contributed
immensely to the governments increased spending in the last months of the year, allowing
agencies to quickly implement programs and projects aligned with the Presidents Social
Contract with the Filipino People.
Aside from the initial P72.11 billion, additional amount of P13.4 billion was
authorized by the President to further boost government spending and strengthen the national
economy for fiscal year 2012. The additional funds will also provide for deficiencies under
the Special Purpose Funds, including the Calamity Fund and Contingent Fund, and augment
the much reduced internal revenue allocations for LGUs.
The projects funded by the additional P13.40 billion include the P1.60 billion
nationwide Disaster Risk, Exposure, Assessment and Mitigation (DREAM) program of the
Department of Science and Technology (DOST); the P4.28 billion additional budget for State
Universities and Colleges (SUCs) under the Commission on Higher Education (CHED), the
P2.3 billion incentives of personnel affected by the Rationalization Program of the
Department of Public Works and Highways (DPWH); and the P450 million Jalaur River
Multipurpose Project of the Department of Agriculture (DA).
18
Presented in Schedule 7, Volume I-B of this report are the details on allotment releases
for DAP and the corresponding obligations incurred during the year, by department/agency.
3.2 Appropriations, Allotments, Obligations and Balances
An appropriation is an authorization under past Acts of Congress, Presidential
Decrees or other legislative enactments, for payments to be made with funds of the
government under specified condition and/or for specified purpose.
In any given year, there are two budgets being executed namely: the GAA for the
current year which contains new appropriations intended to finance the programmed
activities of various agencies and the special projects and programs of the NG; and the
balances of prior years appropriations which are set by law to be available as continuing
appropriations until the end of the following year. In addition to these, automatic
appropriations provided by standing appropriation laws also form part of the total NG
budget for the year.
Table III-1 shows the summary of appropriations, allotments, obligations incurred
and balances for the year which are separately discussed in the succeeding pages of this
report. The details are presented by appropriation source in Schedules 1 and 2, and by
department/agency in Schedules 3 and 4, Volume I-B.
Particulars
Unobligated
Allotments
765,405.33
399,406.94
758,632.14
399,406.94
6,773.19
-
656,855.27
396,674.58
101,776.87
2,732.35
185,401.47
2.57
180,594.35
184,954.91
2.57
174,267.72
446.56
6,326.63
149,317.67
2.54
110,860.47
35,637.24
0.03
63,407.25
12,566.90
2,372.55
11,554.05
2,372.55
1,012.85
-
9,402.60
2,349.67
2,151.45
22.88
9,969.80
224.55
229,210.85
78,252.49
8,956.95
224.55
161,804.84
20,448.76
1,012.85
67,406.01
57,803.73
6,904.53
148.40
146,352.49
19,263.28
2,052.42
76.15
15,452.35
1,185.48
59,397.93
20,275.94
15,902.79
59,397.93
20,275.94
14,793.43
1,109.37
58,846.32
20,070.74
14,584.61
551.61
205.20
208.82
19,538.82
16,038.82
3,500.00
16,038.82
24,620.00
6,000.00
20,423.24
5,708.23
4,196.76
291.78
11,527.73
2,815.43
8,895.51
2,892.80
1,000.00
824.30
175.70
382.68
441.62
2,964.33
2,964.33
2,503.59
460.74
19
Appropriations
Unreleased
Appropriations
Allotments
258.54
258.54
1,000.00
(6,795.32)
35,970.30
671.32
(30,660.92)
(12,104.70)
1,000,387.76
1,093,332.70
444,196.12
266,068.29
286,944.24
96,124.05
931,991.03
1,093,332.70
444,196.12
266,068.29
286,944.24
Unobligated
Allotments
59.09
199.45
260.20
411.11
(30,660.92)
(12,104.70)
68,396.73
-
812,610.37
1,068,935.61
444,196.12
266,068.29
286,942.56
119,380.67
24,397.09
1.68
96,124.05
71,728.64
24,395.41
2,093,720.46
2,025,323.74
68,396.73
1,881,545.98
143,777.75
91,315.22
70,069.16
1,014.16
91,315.22
70,069.16
1,014.16
76,859.16
61,033.68
291.06
14,456.07
9,035.48
723.10
27,390.60
41,664.39
12,240.31
1.27
27,390.60
41,664.39
12,240.31
1.27
22,607.38
38,135.24
10,501.99
1.27
4,783.22
3,529.15
1,738.32
-
6,840.82
5,398.22
9,005.76
68.00
6,840.82
5,398.22
9,005.76
68.00
6,766.61
3,734.12
5,323.48
5.31
74.21
1,664.11
3,682.27
62.69
5,459.61
3,478.15
5,459.61
3,478.15
3,665.59
1,652.59
1,794.02
1,825.56
223,750.20
59,734.07
44,762.16
9,830.80
178,988.04
49,903.27
38,680.29
9,311.07
6,081.87
519.73
11,853.66
47,880.41
147,397.63
1,175.94
8,654.87
34,931.35
10,677.72
39,225.55
112,466.27
987.54
8,323.53
29,369.22
188.39
331.34
5,562.13
38,799.30
108,598.33
16,613.50
5.00
16,727.11
18,204.24
-
22,072.19
90,394.09
16,613.50
5.00
16,665.30
12,703.92
-
61.81
5,500.33
-
5.00
5.00
315,065.42
136,077.38
178,988.04
115,539.45
20,537.93
247,384.77
1,997,085.43
164,315.69
Total NG Appropriations
2,408,785.89
2,161,401.12
* Does not include obligations not covered by allotments.
Difference between totals and sum of components is due to rounding off.
20
Obligations*
328.68
(6,795.32)
35,970.30
1,400
1,304.41
1,300
1,170.33
1,200
1,066.18
1,100
1,000.39
1,000
900 830.35
800
2007
2008
2009
2010
2011
21
86,665.39
9,458.66
10.91
2,356,273.73 (262,553.27)
(11.14)
91,315.22
101,594.54
(10,279.32)
(10.12)
223,750.20
39,610.11
184,140.09
464.88
315,065.42
2,408,785.89
141,204.66
2,497,478.39
173,860.76
(88,692.50)
123.13
(3.55)
22
The DSWD got the highest increase of 142.66 percent or P21.85 billion from
last years P15.31 billion. The increase can be attributed to the inclusion of the
second phase implementation of the KALAHI-CIDSS Project in various LGUs,
conditional cash transfers (CCT) to 2.3 million households, rice subsidy, and pensions
for indigent senior citizens. The increase in regular appropriations for the Defense
Department of P46.54 billion or 80.68 percent is due to the integration of the AFP
Modernization Fund which was originally budgeted under the Special Purpose Funds.
Comparative details of regular appropriations by department/agency are
shown in Table III-3.
Table III-3 Comparative Regular Appropriations By Department/Agency
Amount (in million pesos)
Department/Agency
Percent
Increase /
2011
2010
(Decrease)
Education
182,674.24
157,409.15
25,265.09
16.05
Public Works and Highways
114,625.80
141,681.93 (27,056.13)
(19.10)
National Defense
104,217.44
57,682.20
46,535.24
80.68
Interior and Local Government
87,208.45
65,744.85
21,463.60
32.65
Social Welfare and Development
37,159.91
15,313.52
21,846.39
142.66
Agriculture
33,389.26
39,241.61
(5,852.88)
(14.91)
Transportation and
Communications
30,858.07
16,547.04
14,311.03
86.49
Health
28,659.10
25,703.11
2,955.99
11.50
State Universities and Colleges
21,373.93
21,761.47
(387.54)
(1.78)
Finance
13,735.75
9,261.87
4,473.88
48.30
The Judiciary
13,621.52
12,711.16
910.36
7.16
Environment and Natural Resources
11,823.26
12,221.08
(397.82)
(3.26)
Autonomous Region in Muslim
Mindanao
11,780.14
9,178.36
2,601.78
28.35
Foreign Affairs
10,550.06
12,443.26
(1,893.20)
(15.21)
Science and Technology
9,362.29
5,313.94
4,048.35
76.18
Congress of the Philippines
8,491.34
8,880.01
(388.67)
(4.38)
Justice
7,700.50
6,424.48
1,276.02
19.86
Labor and Employment
7,277.72
6,143.83
1,133.89
18.46
Office of the President
4,605.61
4,827.38
(221.77)
(4.59)
Other Executive Offices
4,481.74
5,456.31
(974.57)
(17.86)
Commission on Audit
4,293.33
3,825.29
468.04
12.24
Agrarian Reform
3,885.31
7,820.23
(3,934.92)
(50.32)
Trade and Industry
2,483.98
2,443.73
40.25
1.65
Commission on Elections
2,255.44
10,432.68
(8,177.24)
(78.38)
National Economic and
Development Authority
2,122.20
4,021.80
(1,899.60)
(47.23)
Tourism
1,606.53
1,578.09
28.44
1.80
Budget and Management
1,157.81
1,215.17
(57.36)
(4.72)
Office of the Ombudsman
1,031.90
1,064.27
(32.37)
(3.04)
Energy
930.06
665.71
264.35
39.71
Presidential Communications
Operations Office
929.60
1,119.49
(189.89)
(16.96)
23
Percent
9.23
(6.64)
(4.28)
68.08
14.37
24
Particulars
Percent
(4.84)
(46.43)
60.00
76.74
(50.00)
(74.15)
(100.00)
(100.00)
(100.00)
(61.76)
(75.77)
(63.07)
25
19,431.30
8,487.81
6,500.00
(10,817.28)
-
(55.67)
-
3,000.00
2,000.00
902.00
3,000.00
2,000.00
-
902.00
100.00
78,252.49
50,000.00
118,913.95
(50,000.00) (100.00)
(40,661.46) (34.19)
Percent
(59.42)
(68.75)
(15.95)
4.25
336.32
(46.90)
(100.00)
(100.00)
24.19
24.19
(46.88)
(11.88)
Particulars
Lung Center of the Philippines
National Kidney and Transplant
Institute
Philippine Heart Center
Philippine Institute of Traditional
and Alternative Health Care
Tourism
Tourism Promotions Board
Philippine Convention and
Visitors Corporation
Trade and Industry
Aurora Pacific Economic and
Freeport Zone
Center for International Trade
Expositions and Missions
Cottage Industry Technology Center
Transportation and
Communications
Philippine National Railways
National Economic and
Development Authority
Philippine Institute for
Development Studies
Presidential Communications
Operations Office
Peoples Television Network,
Incorporated
Other Executive Offices
National Housing Authority
National Home Mortgage Finance
Corporation
Home Guaranty Corporation
Cagayan Economic Zone Authority
Cultural Center of the Philippines
Authority of the Free Port Area of
Bataan
Zamboanga City Special
Economic Zone Authority
Southern Philippines Development
Authority
Development Academy of the
Philippines
Budgetary Support to Government
Corporations Others
Total
Percent
(12.70)
183.05
133.00
529.05
531.05
(346.00)
(398.05)
(65.40)
(74.96)
37.00
65.00
65.00
40.00
425.00
360.00
(3.00)
(360.00)
(295.00)
(7.50)
(84.71)
(81.94)
223.99
65.00
883.75
(65.00)
(659.76)
(100.00)
(74.66)
136.30
800.00
(663.70)
(82.96)
79.69
8.00
73.75
10.00
5.94
(2.00)
8.05
(20.00)
131.00
131.00
285.00
285.00
(154.00)
(154.00)
(54.04)
(54.04)
585.30
17.00
568.30
3,342.94
585.30
17.00
568.30
3,342.94
200.00
(200.00)
(100.00)
6,028.29
4,275.00
200.00
6,624.45
3,600.00
(200.00)
(596.16)
675.00
(100.00)
(9.00)
18.75
500.00
500.00
294.19
195.00
900.00
600.00
1,114.45
140.00
(400.00)
(100.00)
(820.26)
55.00
(44.44)
(16.67)
(73.60)
39.29
100.00
100.00
60.10
70.00
(9.90)
(14.14)
59.00
30.00
29.00
96.67
45.00
70.00
(25.00)
(35.71)
6,841.14
19,538.82
13.61
20,533.37
6,827.53
(994.55)
50,165.51
(4.84)
28
15,902.79
29,686.62 (13,783.82)
(46.43)
R.A.
10147
29.85%
Other
Acts
70.15%
1,093,332.70
1,060,908.45
32,424.25
Percent
10.39
(10.42)
7.95
36.83
13.21
14,864.11
(69.26)
145.36
28.95
166.29
3.06
30
31
Department/Agency
Pasig River Rehabilitation
Commission
Commission on Human
Rights
Joint LegislativeExecutive Councils
SPF Unreleased
Appropriations
Overall Savings
Total
Total
Regular
Appropriations
Special
Purpose
Funds
Automatic
Appropriations
16.58
16.58
9.58
9.58
0.07
0.07
112,466.27
16,613.50
11,689.03
112,466.27
4,924.07
0.40
315,065.42
141,492.25
164,562.01
9,011.16
3.2.2
FE
2.57
2.57
266,068.29
266,068.29
-
CO
193,374.43
174,267.72
224.55
18,882.15
460,184.75
444,196.12
-
Particulars
SAGF
RLIP
Grants and Donations
Tax Subsidy
Tax Refunds
NIPAS
Sale of Assets
Total Current Years
Allotments
Continuing Appropriations
Unobligated Allotments
Unreleased Appropriations
Total Allotments
Total
34,401.48
25,430.61
2,548.05
18,999.93
294.04
20.00
9.29
PS
316.07
25,430.61
6.51
-
2,025,323.74 507,233.08
136,077.38
91,315.22
44,762.16
2,161,401.12
MOOE
19,030.91
1,620.13
18,999.93
294.04
16.39
0.19
598,460.61
FE
-
CO
15,054.50
921.42
-
3.61
9.11
266,070.86 653,559.18
1,083.43
1,083.43
-
57,594.08
39,691.03
17,903.05
77,399.87
50,540.76
26,859.11
508,316.51
656,054.69
266,070.86
730,959.05
33
Department/Agency
Health
State Universities and Colleges
Finance
The Judiciary
Environment and Natural
Resources
Autonomous Region in Muslim
Mindanao
Foreign Affairs
Science and Technology
Congress of the Philippines
Justice
Labor and Employment
Office of the President
Other Executive Offices
Commission on Audit
Agrarian Reform
Trade and Industry
Commission on Elections
National Economic and
Development Authority
Tourism
Budget and Management
Office of the Ombudsman
Energy
Presidential Communications
Operations Office
Civil Service Commission
Commission on Human Rights
Office of the Vice-President
Joint Legislative- Executive
Councils
Total
28,342.44
21,373.93
13,735.75
13,621.52
PS
7,234.41
18,384.46
4,859.35
10,050.14
MOOE
12,139.68
2,977.33
6,662.09
3,486.26
11,823.26
5,216.70
11,777.29
10,550.06
9,358.20
8,491.34
7,631.13
7,277.72
4,605.61
4,481.74
4,293.33
3,885.31
2,483.98
2,255.45
Total
FE
-
CO
8,968.35
12.15
2,214.31
85.12
4,120.40
2,486.16
7,082.84
5,200.88
2,343.33
3,584.79
5,435.25
2,785.13
640.41
2,075.70
3,857.23
1,907.60
952.66
1,546.11
2,317.48
5,221.81
6,406.93
4,879.47
2,059.10
4,322.80
3,861.95
2,301.95
298.20
780.76
1,250.78
709.33
2,376.98
127.38
607.93
27.08
136.79
169.79
103.25
104.08
137.90
1,196.95
280.54
-
2,122.20
1,606.53
1,157.81
1,031.90
930.06
1,101.61
291.45
725.65
843.55
204.95
970.30
1,140.08
397.55
188.35
687.94
50.29
175.00
34.61
37.17
929.60
666.85
266.90
177.11
493.75
523.97
207.55
36.57
403.41
137.09
59.35
137.30
32.44
5.80
3.24
2.19
1.63
0.50
0.06
758,632.14
399,406.94
184,954.91
2.57
174,267.72
(10.48)
Total
4,275.00
2,500.00
1,867.51
35
Equity
Investments
4,275.00
2,500.00
1,867.51
-
Subsidies
Particulars
800.00
Equity
Investments
800.00
-
585.30
542.70
585.30
542.70
500.00
500.00
500.00
-
500.00
500.00
453.51
450.00
336.00
322.80
315.02
294.19
263.26
195.00
500.00
453.51
450.00
336.00
322.80
315.02
263.26
195.00
294.19
-
183.05
183.05
136.30
133.00
131.00
113.77
45.00
133.00
131.00
113.77
91.30
-
110.00
100.00
110.00
-
100.00
79.69
75.00
65.00
79.69
17.50
65.00
57.50
-
60.10
49.10
11.00
59.00
59.00
45.00
45.00
37.00
8.00
1.50
1.12
37.00
8.00
1.50
1.12
16,038.82
14,984.83
1,053.99
Total
Subsidies
36
14,793.43
100.00
37
Department/Agency
Autonomous Region in Muslim
Mindanao
Trade and Industry
Environment and Natural
Resources
Energy
Total
Percent
30.50
21.75
9.00
13.15
21.50
8.60
238.89
65.43
13.73
-
16.05
5.00
(2.32)
(5.00)
(14.45)
(100.00)
20,423.24 8,593.50
11,829.74
137.66
The highest PDAF allotment of P11.35 billion was released to DPWH for
construction, repair and rehabilitation of public infrastructures such as roads,
bridges, flood control facilities, water supply systems, school buildings and other
educational facilities, hospitals and other health facilities, public markets and multipurpose buildings. The DBM received P5.41 billion as financial assistance for the
implementation of priority programs and projects of various LGUs nationwide
while the DOF got P716.48 million as budgetary support to GOCCs for medical
assistance to indigent patients in hospitals.
38
Particulars
Customs Duties
Grants and Donations
Tax Refunds
NIPAS (Sec. 16 RA 7586)
Sale of Assets
Total
14,420.64
2,548.05
294.04
20.00
9.29
46,917.34
1,038.48
15.51
3.49
Increase /
Decrease
(32,496.70)
1,509.57
294.04
4.49
5.80
1,093,322.70
1,060,228.79
33,103.91
2011
2010
Percent
(69.26)
145.36
28.95
165.90
3.12
Appropriations
1,000,387.76
765,405.33
12,566.90
229,210.85
(6,795.32)
39
Allotments
931,991.03
758,632.14
11,554.05
161,804.84
-
Unreleased
Appropria- Percent
tions
68,396.73
6,773.19
1,012.85
67,406.01
(6,795.32)
6.84
0.88
8.06
29.41
-
Particulars
Automatic Appropriations
Debt Service Principal
Debt Service Interest
IRA
Other Automatic
Appropriations
Total Current Years
Unreleased Appropriations
Appropriations
Allotments
Unreleased
Appropria- Percent
tions
1,093,332.70
444,196.12
266,068.29
286,944.24
1,093,332.70
444,196.12
266,068.29
286,944.24
0.00
-
0.00
-
96,124.05
96,124.05
2,093,720.46
2,025,323.74
68,396.73
3.27
2,161,401.12
1,997,085.43
40
164,315.69
41
CO
459,679.76
375.32
10,607.98
104,243.72
2,243.21
1,839.87
501.97
17,463.36
13,883.79
7,802.83
209.12
330.49
2,906.40
217.16
2,013.82
1,735.13
734.51
151.06
136.21
218.62
232.42
35.50
171.60
41.32
382.19
70.45
175.00
141.00
245.91
62.82
112.74
5.80
-
Department/Agency
Office of the Vice-President
Pasig River Rehabilitation
Commission
Joint Legislative Executive
Councils
Total
Total
202.83
PS
44.31
MOOE
157.75
127.82
9.63
2.15
1,997,085.43
FE
-
CO
0.77
71.49
46.70
1.66
0.39
0.10
503,390.99
598,604.95
266,070.83
629,018.66
As in the previous years, DOF incurred the highest obligations at P817.66 billion
due mainly to debt servicing requirements of the NG amounting to P710.26 billion. Of
the amount, P444.20 billion was obligated for principal amortization and P266.27 billion
was incurred for interest payments, including commitment fees, bank charges and other
financial charges.
The DBM, as fund administrator, ranked second, reported obligations of P320.96
billion, consisting of IRA P286.94 billion; ALGU P14.58 billion and various funds
P19.44 billion. The DepED incurred the third highest obligations amounting to P219.07
billion of which P186.82 billion or 85.28 percent was for salaries, allowances and other
personnel benefits of teaching and non-teaching personnel of the Department and its
attached agencies.
At yearend, some departments/agencies reported overdrafts or obligations not
covered by allotments totaling P207.43 million. The Department of Health incurred an
overdraft of P105.56 million for the payment of personnel benefits, including longevity
pay, monetization of leave credits and hazard pay authorized under the Magna Carta for
Public Health Workers.
The Department of Energy incurred overdraft of P100.02 million of which P96.31
million was for the Philippine Energy Efficiency Project; P0.59 million for Electric
Cooperative System Loss Reduction Project; and P3.12 million for regular operating
expenses.
The Commission on Filipino Language under Other Executive Offices had an
overdraft of P0.64 million incurred for the payment of terminal leave benefits. Its request
for the covering allotment has not yet been granted by the DBM.
The DOJs overdraft of P0.62 million was incurred by the Parole and Probation
Administration, for the relief operations and restoration of damages brought about by
typhoon Sendong in Region X.
Shown in Table III-20 are the details of Obligations Not Covered by Allotments, by
Department/Agency and Allotment Class.
42
207.43
109.49
0.85
97.09
43
2011
Percent
ASSETS
Current Assets
Cash (Note 4.6)
Receivables (Note 4.7)
Inventories
Prepayments (Note 4.8)
Other Current Assets
1,186,635,929.99
262,514,417.66
760,049,247.00
26,370,237.42
130,055,757.04
7,646,270.87
1,203,322,845.47
324,176,711.12
743,355,998.48
25,199,509.94
99,162,010.94
11,428,614.99
1,016,243,590.62
842,102,100.81
987,058,346.31
198,777,358.39
141,098,205.34
350,682.77
32,879,306.56
48,382,515.82
24,859,590.07
7,081,960.80
533,628,726.55
985,800,170.65
203,622,074.14
133,866,279.27
282,225.90
31,961,281.09
46,275,957.84
24,322,119.38
6,175,588.81
539,294,644.21
1,258,175.66
(4,844,715.76)
7,231,926.08
68,456.87
918,025.47
2,106,557.98
537,470.70
906,371.99
(5,665,917.67)
0.13
(2.38)
5.40
24.26
2.87
4.55
2.21
14.68
(1.05)
109,501,927.00
107,636,700.19
1,865,226.82
1.73
3,299,439,793.92
3,138,861,817.12
160,577,976.80
5.12
710,193,731.92
114,370,525.68
65,253,731.72
147,722,257.91
85,466,695.29
297,380,521.32
813,020,739.71
122,372,756.85
49,816,032.41
7,208,543.22
80,403,915.35
553,219,491.87
4,644,761,074.53
4,178,785,583.30
465,975,491.23
11.15
27,060,301.55
26,632,575.49
427,726.06
1.61
5,382,015,108.00
5,018,438,898.50
363,576,209.51
7.24
(202,998,232.70)
10.80
160,577,976.80
5.12
TOTAL ASSETS
(16,686,915.48)
(61,662,293.46)
16,693,248.52
1,170,727.48
30,893,746.10
(3,782,344.13)
(1.39)
(19.02)
2.25
4.65
31.15
(33.10)
174,141,489.81
20.68
LIABILITIES
(2,082,575,314.08) (1,879,577,081.37)
3,299,439,793.92
44
3,138,861,817.12
(102,827,007.78)
(8,002,231.17)
15,437,699.31
140,513,714.68
5,062,779.94
(255,838,970.55)
(12.65)
(6.54)
30.99
1,949.27
6.30
(46.25)
Increase
(Decrease)
1,399,016,708.69
1,243,676,540.12
155,340,168.58
1,221,943,746.14
1,090,909,324.92
131,034,421.22
177,072,962.55
152,767,215.19
24,305,747.35
7,739,470.97
32,029,531.38
45,430,648.15
91,873,312.05
459,620.01
74,163,616.53
10,977,870.88
67,166,107.77
7,279,850.96
(42,134,085.15)
34,452,777.26
24,707,204.28
2011
INCOME/REVENUE (Note 4.14)
Tax Revenue
General Income
Permits and Licenses
Service Income
Business Income
Other Income
Percent
12.49
12.01
15.91
1,583.88
(56.81)
313.84
36.79
709,723,668.65
637,457,265.94
72,266,402.71
512,110,992.85
197,612,675.80
464,219,664.38
173,237,601.55
47,891,328.47
24,375,074.25
11.34
10.32
14.07
689,293,040.04
606,219,274.18
83,073,765.86
13.70
(391,266,566.73)
(340,097,090.75)
(51,169,475.99)
(317,896,685.84)
(281,547,018.17)
(36,349,667.67)
15.05
12.91
(72,842,240.62)
(527,640.28)
(57,104,688.60)
(1,445,383.98)
(15,737,552.02)
917,743.70
27.56
(63.49)
298,026,473.31
266,122,183.43
31,904,289.87
11.99
282,771,722.55
304,516,600.13
(21,744,877.58)
(7.14)
15,254,750.75
(38,394,416.70)
53,649,167.45
(139.73)
2,794,300.81
(35,470,663.04)
38,264,963.85
(107.88)
(31,674,006.17)
49,781,956.44
(81,455,962.60)
(38,690.85)
(3,157,035.48)
(28,471,379.95)
(49,962.08)
43,062.21
(61,127.75)
(4,571,077.81)
54,214,718.51
(48,263.11)
247,706.60
22,436.90
1,414,042.32
(82,686,098.47)
(1,698.97)
(204,644.39)
(163.63)
(36.70)
(30.93)
(152.52)
3.52
(82.62)
NET INCOME/(LOSS)
(13,624,954.60)
(24,083,123.30)
10,458,168.69
(43.43)
45
2010
Increase
(Decrease)
Percent
10.97
(90,389,381.58)
(13,624,954.60)
(76,764,426.98)
(71,395,106.95)
(24,083,123.30)
(47,311,983.66)
(18,994,274.63)
10,458,168.69
(29,452,443.32)
26.60
(43.43)
62.25
(31,598,932.88)
(952,188.85)
(41,506,369.73)
(748,900.58)
9,907,436.85
(203,288.28)
(23.87)
27.14
(2,590.70)
(3,864.92)
1,274.22
46
(32.97)
10.80
2010
Increase
(Decrease)
Percent
1,338,462,288.94
1,150,006,445.40
155,830,789.94
32,355,819.38
12,377,792.86
2,194,063.72
36,125,355.34
102,958,528.11
2,830,311,083.70
1,130,306,160.54
1,111,167,881.79
117,861,212.77
34,623,891.30
10,044,868.41
1,694,368.46
25,106,711.87
102,395,410.52
2,533,200,505.66
208,156,128.40
38,838,563.61
37,969,577.17
(2,268,071.91)
2,332,924.45
499,695.26
11,018,643.47
563,117.59
297,110,578.03
18.42
3.50
32.22
(6.55)
23.23
29.49
43.89
0.55
11.73
1,089,043,014.23
658,076,578.69
379,264,294.42
1,069,063,857.95
505,313,283.58
306,872,959.77
19,979,156.28
152,763,295.11
72,391,334.65
1.87
30.23
23.59
133,263,196.08
94,606,466.16
69,767,888.65
69,046,323.79
119,388,983.58
70,119,491.07
98,195,858.84
63,533,626.13
13,874,212.50
24,486,975.09
(28,427,970.19)
5,512,697.66
11.62
34.92
(28.95)
8.68
20,236,837.32
14,733,562.31
27,847,837.98
324,110.50
102,703,129.60
2,658,913,239.73
171,397,843.96
25,332,460.72
16,107,936.31
25,666,997.38
1,103,048.59
47,541,157.89
2,348,239,661.80
184,960,843.86
(5,095,623.39)
(1,374,374.00)
2,180,840.60
(778,938.09)
55,161,971.71
310,673,577.94
(13,562,999.90)
(20.11)
(8.53)
8.50
(70.62)
116.03
13.23
(7.33)
319,828,070.22
30,509,090.79
2,644,226.37
91,560.16
353,072,947.54
333,017,072.85
49,756,350.90
2,955,312.14
546,244.32
386,274,980.21
(13,189,002.64)
(19,247,260.11)
(311,085.77)
(454,684.16)
(33,202,032.67)
(3.96)
(38.68)
(10.53)
(83.24)
(8.60)
408,014,366.70
431,654,930.23
(5.48)
83,333,796.15
527,883.22
491,876,046.07
(138,803,098.54)
132,211,215.13
468,344.98
564,334,490.33
(178,059,510.12)
(23,640,563.53)
(48,877,418.97)
59,538.25
(72,458,444.26)
39,256,411.58
(36.97)
12.71
(12.84)
(22.05)
1,365,394,131.22
1,604,444,390.42
(239,050,259.20)
(14.90)
1,221,329,483.19
240,292,424.49
65,934.32
1,461,687,842.00
(96,293,710.78)
1,332,051,048.30
236,607,356.00
123,845.40
1,568,782,249.69
35,662,140.73
(110,721,565.11)
3,685,068.48
(57,911.07)
(107,094,407.70)
(131,955,851.51)
(8.31)
1.56
(46.76)
(6.83)
(370.02)
(63,698,965.35)
381,252,483.63
42,563,474.47
338,706,144.54
(106,262,439.82)
42,546,339.09
317,553,518.28
381,269,619.02
(63,716,100.74)
(249.66)
12.56
(16.71)
Financing Activities
Add: Cash Balance, Beginning January 1
Cash Balance, Ending December 31 (Note 4.6.2)
Difference between totals and sum of components is due to rounding off
47
Regular Agency (RA) Books used to record the receipt and utilization of
Notice of Cash Allocation and other income/receipts which the agencies are
authorized to use and to deposit with the National Treasury and/or with the
Authorized Government Depository Banks (AGDB).
National Government (NG) Books used to record the income which the
agencies are not authorized to use and are required to be remitted to the
National Treasury.
The accounting system of the NG adopts the one fund concept in recording
the financial transactions and in the preparation of the financial statements.
However, separate fund accounting is done when specifically required by law, or
by a donor agency, or when necessitated by circumstances subject to prior
approval of the Commission on Audit.
4.5.2 Use of NGAS Chart of Accounts
The accounts used are in conformity with the NGAS Chart of Accounts
prescribed under COA Circular No. 2004-008 dated September 20, 2004, the
Updated Description of Accounts, and COA Accounting Circular No. 2006-001
dated November 6, 2006.
4.5.3 Control of Appropriations and Allotments and Monitoring of Obligations
Following the NGAS policy, separate registries are maintained by the COA
to record the appropriations and allotments, by agency/source/allotment class; and
by the NGAs to record the allotments and obligations by allotments class and by
program/project/activity.
4.5.4 Notice of Cash Allocation (NCA)
The receipt of NCA by the agency is recorded in the books as debit to
account Cash-National Treasury, Modified Disbursement System (NT, MDS)
and credit to account Subsidy Income from National Government (SING).
The unused/lapsed/expired cash balance under the Cash-NT, MDS is
reverted by debiting the account SING and crediting Cash-NT, MDS.
At the end of the year, an adjustment is prepared for the restoration of cash
equivalent to the unreleased checks and recognition of the appropriate
48
49
and
services
are
Commitments or obligations incurred by agencies which are not yet due and
demandable (services not rendered and/or goods not yet delivered) are recorded in
the registries, hence, not recognized as liability.
4.5.11 Revenue and Expense Recognition
The Modified accrual basis of accounting is used. Income is recorded upon
delivery of goods and services except for tax revenues, duties, fees, fines and
penalties, including user charges, which are recognized upon collection. Expenses
are recognized when incurred and reported in the financial statements in the
period to which they relate.
Collections of income due for remittance to the National Treasury are
recorded in the NG books of the NGAs as liability, Due to National Treasury
with subsidiary ledger of the specific income account. Upon receipt of the
remittance, these are recorded as income in the NG books of the Bureau of the
Treasury. The collections of income authorized to be used by the agencies are
recorded in the RA books and are likewise remitted to the National Treasury.
Upon receipt of the remittances by the National Treasury, these are recorded in the
BTr-NG books as liability, Due to Other NGAs.
50
4.6 Cash
4.6.1 The total cash balance aggregating P262,514,417,661.08 consisted of the
following:
Accounts
Cash on Hand
Cash-National
Treasury, MDS
Total
P4,622,034,158.74
NG Book
P807,607,561.45
RA Book
P3,814,426,597.29
4,078,188,981.96
49,912,940.34
4,028,276,041.62
51
Accounts
Cash in Bank
Local Currency
Cash in Bank
Foreign Currency
Total
Total
NG Book
RA Book
202,398,575,735.63*
100,531,959,699.99
101,866,616,035.64
51,415,618,784.75*
42,597,847,475.51
8,817,771,309.24
P262,514,417,661.08 P143,987,327,677.29
P118,527,089,983.79
The Cash in Bank, Local and Foreign Currency in the NG books totaled
P143,129,807,175.50. The amount of P135,910,782,595.27 or 95 percent
pertains to BTr-GOP accounts which included free balances that are available
for NG operations P87,800,463,496.98; project loan/grant proceeds earmarked
to be utilized by various implementing agencies P3,603,311,585.68; restricted
accounts for special/sinking fund, BTr managed funds and escrow accounts
P44,068,976,193.44; and MDS Seed Money P438,031,319.17.
The Cash in Bank, Local and Foreign Currency in the RA books totaled
P110,684,387,344.88. This included P15,772,502,572.25 pertaining to
collections of income from tuition fees and other school charges authorized to
be treated as Special Trust Fund and to be deposited in AGDB by the SUCs
under RA No. 8292 and the Higher Education Modernization Act of 1997. Also
included are the cash balances of agencies under the Comprehensive Agrarian
Reform Program (CARP) Fund P10,341,120,785.50.
4.6.2 The difference in cash ending balance per Balance Sheet (BS) and Statement of
Cash Flows (SCF) amounting to P55,039,100,618.26 represents Sinking Fund
cash accounts lodged under Investments in BTr-GOP amounting to
P55,139,592,837.98; cash accounts totaling P3,830.75 not included in the BS of
DOTC; and cash accounts of SUCs of P100,099,258.22 and DOLE of
P396,792.25 not included in their SCF ending balances.
52
4.7 Receivables
The total Receivables in the amount of P760,049,247,002.47 is net of Allowance
for Doubtful Accounts amounting to P585,564,103.26 and the eliminated amounts for
Inter-Agency Receivables of P53,234,301,495.07 and Intra-Agency Receivables of
P27,273,333,399.85.
In the overall consolidation of the balance sheet accounts, inter-agency
receivables were eliminated with inter-agency payables. This is to reflect the amount of
cash expected to be realized from the receivables and the actual payables subsisting
between NGAs. Likewise, intra-agency receivables were eliminated with intra-agency
payables to reflect the balances of reciprocal accounts subsisting between central
offices, regional offices/staff bureaus and operating units. The elimination was based
on the consolidated total balances of RA and NG books as follows:
Account Title
Assets
Inter-Agency Receivables
Due from National Treasury
Due from NGA
Intra-Agency Receivables
Due from Central Office
Due from Regional Office/Staff Bureaus
Due from Operating Units
Due from Other Funds
Total Assets
Liabilities
Inter-Agency Payables
Due to Other NGAs
Intra-Agency Payables
Due to Central Office
Due to Regional Office/Staff Bureaus
Due to Operating Units
Due to Other Funds
Total Liabilities
Amount
P53,234,301,495.07
25,330,373,425.33
27,903,928,069.74
27,273,333,399.85
1,203,524,784.80
2,102,923,670.24
2,645,885,499.76
21,320,999,445.05
P80,507,634,894.92
P53,234,301,495.07
53,234,301,495.07
27,273,333,399.85
1,195,223,364.98
1,203,524,784.80
3,553,585,805.02
21,320,999,445.05
P80,507,634,894.92
4.8 Prepayments
The total Prepayments amounted to P130,055,757,041.81. Of the amount,
P104,906,575,185.05 or 80.66 percent was reported by BTr-GOP as Deferred Charges
pertaining to discounts on Bond Exchange, issued Zero-Coupon Bonds and global
bonds issued abroad, and premium on investments in bonds held by Bond Sinking Fund
(BSF), Special Guaranty Fund (SGF), Security Stabilization Fund (SSF) and
Metropolitan Waterworks and Sewerage System (MWSS) which are being amortized
over the life of the bonds.
53
4.9 Investments
The total Investments included the following:
Particulars
Sinking Fund
Investments in Stocks
Other Investments and
Marketable Securities
Investments in Treasury Bills
Investments in Bonds
Total
Amount
P776,808,701,509.75
126,390,176,595.23
Percent
76.44
12.44
90,910,268,048.43
14,196,227,883.14
7,938,216,587.87
8.95
1.40
0.78
P1,016,243,590,624.42
100.00
Sinking Fund pertains to amounts set aside for the liquidation of long-term debt.
BTr-GOP balance of P776,800,744,940.42 included Sinking Fund accounts of NG
issued and NG Guaranteed bonds issued by GOCCs such as: LBP, MWSS, HGC, NFA,
NPC, PPA and HDMF.
201,185,885,098.00
Accumulated
Depreciation
(2,408,526,711.27)
198,777,358,386.73
184,312,444,782.15
477,108,465.63
63,226,426,220.50
(43,214,239,440.05)
(126,425,696.55)
(30,347,119,656.09)
141,098,205,342.10
350,682,769.08
32,879,306,564.41
83,964,994,866.27
46,326,448,205.28
9,267,344,995.37
(35,582,479,046.26)
(21,466,858,132.04)
(2,185,384,191.07)
48,382,515,820.01
24,859,590,073.24
7,081,960,804.30
533,628,726,547.01
________-_______
533,628,726,547.01
1,122,389,379,180.21
(135,331,032,873.33)
987,058,346,306.88
Gross Amount
54
Currency
EUR
US$
JPY
PHP
55
Original
Amount
500,000,000
23,448,587,000
100,000,000,000
98,879,000,000
Peso Equivalent
P28,422,180,850
1,029,838,492,453
57,081,524,300
98,879,000,000
P1,214,221,197,603
Amount
P4,961,953,021.37
529,017,364.33
565,952.85
( 206,312,444.17)
7,290,608.15
44,612,225.83
1,471,585,312.50
P6,808,712,040.86
Particulars
Foreign:
US Dollar
Currency
Equivalent
Peso Currency
Domestic
Total
NG direct
Guarantee
on GOCC Loans
$9,374,774,093.27
P412,021,321,399.26
157,450,400,000.00
P569,471,721,399.26
GFI Guarantee
Assumed by NG
per Proclamation
No. 50
$85,649,024.54
Total
$9,460,423,117.81
P3,764,274,628.58 P415,785,596,027.84
136,069,374.78
157,586,469,374.78
P3,900,344,003.36 P573,372,065,402.62
56
(P13,624,954,604.28)
(76,764,426,976.31)
(32,551,121,728.85)
(2,590,695.98)
(122,943,094,005.42)
(80,055,138,698.27)
(P202,998,232,703.69)
57
P1,184,613,454,825.50
(1,181,819,154,016.65)
P2,794,300,808.85
58
V. FINANCIAL ANALYSES
FINANCIAL ANALYSES
5.1 Balance Sheet
The total assets of the National Government as of December 31, 2011 rose to P3.299
trillion. Compared to the 2010 level of P3.139 trillion, a growth of P160.58 billion or 5.12
percent was noted.
For the same period, the total liabilities of the NG also grew to P5.382 trillion from
P5.018 trillion in 2010, exhibiting an increase of P363.58 billion or 7.24 percent. The total
liabilities of the government exceeded the total assets by P2.083 trillion, posting a negative
increase in the equity by P203 billion or 10.80 percent from a negative equity of P1.880
trillion in 2010. Table V.1-1 shows the comparative assets, liabilities and equity for CY
2011 and 2010.
Table V.1-1 Assets, Liabilities and Equity
Amount (in million pesos)
Particulars
Assets
Current Assets
Investments
Property, Plant and
Equipment
Other Assets
Liabilities
Current Liabilities
Long-Term Liabilities
Deferred Credits
Equity
3,299,439.79
1,186,635.93
1,016,243.59
3,138,861.82
1,203,322.84
842,102.10
Increase
(Decrease)
160,577.98
(16,686.91)
174,141.49
987,058.35
109,501.93
5,382,015.11
710,193.73
4,644,761.07
27,060.30
(2,082,575.31)
985,800.17
107,636.70
5,018,438.90
813,020.74
4,178,785.58
26,632.58
(1,879,577.08)
1,258.18
1,865.23
363,576.21
(102,827.01)
465,975.49
427.73
(202,998.23)
2011
2010
Percent
0.13
1.73
7.24
(12.65)
11.15
1.61
10.80
5.12
(1.39)
20.68
5.1.1
3,138,861.82
259,338.56
9.01
2009
2,879,523.26
9,249.78
0.32
2008
2,870,273.48
237,572.33
9.02
2,632,701.15 102,020.55
4.03
Total assets of P3.299 trillion 2007
2006
2,530,680.60
consists of Current Assets P1.187
trillion, Investments P1.016 trillion,
Average Growth
153,751.84
5.50
Property, Plant and Equipment P987.06
billion and Other Assets P109.50 billion. Of the components of assets, Investments
showed the highest growth at 20.68 percent, while Current Assets decreased by 1.39
percent. The other components, Other Assets and Property Plant and Equipment showed a
slight increase of 1.73 percent and 0.13 percent, respectively. Chart V.1-1 presents the
percentage distribution of the major categories of assets for fiscal year 2011.
59
Other
Assets
3.32%
Current
Assets
35.96%
Property,
Plant and
Equipm ent
29.92%
Investments
30.80%
The composition of the current assets are as follows: Cash P262.51 billion,
Receivables P760.05 billion, Inventories P26.37 billion, Prepayments P130.06
billion and Other Current Assets P7.65 billion.
2006
2007
2008
2009
2010
2011
Cash on Hand
10.27
6.14
4.98
5.51
3.97
4.62
Cash, NT-MDS
7.41
4.71
5.72
4.51
6.29
4.08
Cash in Bank
174.55
205.10 295.25
60
324.38 313.92
253.81
Among the major components of cash, Cash in Bank combined balance of P253.81
billion accounted for 96.69 percent of the total. Cash on Hand and Cash-National Treasury,
MDS shared P4.62 billion or 1.76 percent and P4.08 billion or 1.55 percent, respectively.
From the years 2007 to 2009, Cash in Bank increased by an average of 23.77 percent, but in
the last two years, 2010 to 2011, it significantly dropped to an average of 11.19 percent.
Table V.1-3 Comparative Composition of Cash
Amount (in million pesos)
Particulars
Cash on Hand
Cash in Vault
Cash Collecting Officers
Cash Disbursing Officers
Petty Cash Fund
Payroll Fund
Cash- National Treasury MDS
Cash in Bank
Bangko Sentral ng Pilipinas
Cash in Bank Local Currency
Current Account
Savings Account
Time Deposit
Cash in Bank Foreign Currency
Current Account
Savings Account
Time Deposit
Total
2011
2010
Increase/
(Decrease)
4,622.03
2.22
2,351.55
733.46
106.13
1,428.67
4,078.19
253,814.19
51,709.41
175,410.42
83,469.56
58,666.38
33,274.48
26,694.36
3,658.21
6,955.36
16,080.78
262,514.42
3,966.95
2.19
1,763.86
597.22
81.24
1,522.44
6,287.71
313,922.05
134,474.00
150,775.41
71,378.03
47,344.07
32,053.31
28,672.64
2,447.04
9,711.76
16,513.84
324,176.71
655.08
0.03
587.70
136.24
24.88
(93.77)
(2,209.52)
(60,107.86)
(82,764.59)
24,635.01
12,091.53
11,322.31
1,221.17
(1,978.27)
1,211.17
(2,756.40)
(433.06)
(61,662.29)
Percent
16.51
1.49
33.32
22.81
30.63
(6.16)
(35.14)
(19.15)
(61.55)
16.34
16.94
23.91
3.81
(6.90)
49.50
(28.38)
(2.62)
(19.02)
Cash in Vault balance was P2.22 million, of which P2.16 million was accounted by the
BTr-GOP and the amount of P66.21 thousand was reported by the Bureau of Fisheries
and Aquatic Resources, under the DA.
Cash Collecting Officers account balance of P2.35 billion pertains to the collections
of national government agencies which were not yet remitted/deposited with the
National Treasury/Authorized Government Depository Bank (AGDB) as of year-end.
The departments/offices with the highest balances to this account were:
Departments/Offices
Judiciary
Finance
Budget and Management
Justice
Energy
State Universities and Colleges
Transportation and Communications
Foreign Affairs
Health
Other Executive Offices
Other Departments/Offices
Total
61
Amount
(in million pesos)
992.71
461.29
259.80
126.50
87.57
73.25
67.26
60.53
47.16
34.89
140.60
2,351.55
Percent
42.22
19.62
11.05
5.38
3.72
3.11
2.86
2.57
2.01
1.48
5.98
100.00
The Supreme Court and Lower Courts of the Judiciary reported P992.65
million unremitted collections, of which the amount of P935.39 million
pertains to collections of Fiduciary Fund and Sheriffs Trust Fund from the
Lower Courts. The balance of the Supreme Court Proper amounting to
P56.81 million was deposited in January 2012.
The Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR),
both under the DOF, reported balances of P274.56 million and P166.32
million, respectively.
The DBM balance of P259.80 million pertains to the undeposited collections
of the Procurement Service.
Amount
(in million pesos)
264.71
132.93
106.47
49.33
42.16
33.10
22.45
20.77
13.37
13.24
12.58
22.34
733.46
Percent
36.09
18.12
14.52
6.72
5.75
4.51
3.06
2.83
1.82
1.80
1.72
3.05
100.00
62
Petty Cash Fund granted to duly designated custodian to cover petty expenses
increased to P106.13 million, an increment of P24.88 million or 30.63 percent
compared to previous years level of P81.24 million was noted. The COMELEC and
the DOH OSEC are the two agencies that reported the highest balances at P15.64
million and P15.33 million, respectively.
Payroll Fund balance of P1.43 billion was reduced by P93.77 million or 6.16 percent
compared to the P1.52 billion balance of last year. This fund represents cash advances
for payment of salaries, allowances and other emoluments which remained unliquidated
at year-end. The DepED-OSEC had the highest unliquidated balance of P499.16 million
or 34.94 percent of the total Payroll Fund followed by the DOF-BOC with P289.48
million or 20.26 percent, and by the DILG - Philippine National Police with P100.75
million or 7.05 percent.
The list of department/agencies with Cash on Hand presented by account is in
Schedule 8, Volume I-B.
Cash - National Treasury, MDS account refers to the Notice of Cash Allocation
(NCA) received from the DBM and it is credited for the amount of MDS checks issued
by agencies. The balance of P4.08 billion represents the unreleased/unclaimed MDS
checks at the end of the year for payment of obligations/liabilities which was restored
back to cash account by agencies in compliance with COA Circular Letter No. 2002001 dated December 16, 2002. The departments/offices which reported more than P100
million worth of unreleased MDS checks as of year-end are the following:
Amount
Departments/Offices
1,179.55
725.43
489.25
463.52
242.91
229.43
196.99
119.69
112.81
318.61
4,078.19
Percent
28.92
17.79
12.00
11.37
5.96
5.63
4.83
2.93
2.77
7.81
100.00
63
Treasurer of the Philippines and the remaining P42.83 million was reported by the AntiMoney Laundering Council.
Cash in Bank, Local Currency of P175.41 billion increased by P24.64 billion or 16.34
percent compared to 2010 level of P150.78 billion. It consists of: Current Account
P83.47 billion, Savings Account P58.67 billion and Time Deposits P33.27 billion.
Pursuant to Executive Order No. 449, the BTr is the custodian of government funds
consisting of all the receipts and disbursements of the NG. However, some agencies
have the authority to use their income as provided in specific law or under contracts and
agreements to deposits their income in AGDB, such as those agencies with Special
Account in the General Fund, Revolving Fund and Trust Fund. Table V.1-4 shows the
departments/offices with Cash in Bank in Local Currency deposits of more than P2.0
billion balance. Schedule 10, Volume I-B presents the departments/offices/agencies
with Cash in Bank, Local Currency.
Table V.1-4 Departments/Offices with more than P2.0 billion
Cash in Bank-Local Currency
(in million pesos)
Departments/Offices
Finance
State Universities and Colleges
Judiciary
Agriculture
National Defense
Education
Other Executive Offices
Health
Agrarian Reform
Budget and Management
Public Works and Highways
Transportation and Communications
Labor and Employment
Interior and Local Government
Other Departments/Agencies
Current
17,650.13
8,554.64
914.12
8,867.26
6,748.58
7,537.12
4,218.03
4,929.04
4,097.20
1,430.26
3,696.22
2,523.06
2,270.66
2,069.14
7,964.09
Savings
45,169.32
1,093.52
7,694.40
55.80
1,488.19
8.39
1,797.36
15.36
0.57
1.72
46.64
35.63
38.34
0.27
1,220.88
Time
14,269.45
15,184.03
550.06
0.01
30.00
2,500.00
516.76
224.17
Total
77,088.90
24,832.20
9,158.57
8,923.07
8,236.79
7,575.50
6,015.38
4,944.41
4,097.77
3,931.99
3,742.86
3,075.44
2,309.00
2,069.40
9,409.15
Total
83,469.56
58,666.38
33,274.48
175,410.42
The DOF- BTr GOP reported the highest deposits amounting to P66.37 billion
consisting of free balances available for NG operations, restricted accounts of
various sinking funds/managed funds and various project loan/grants proceeds
earmarked to be utilized by various implementing agencies and MDS seed money.
The BIR and the MDFO followed with balances of P7.51 billion and P2.22 billion
respectively.
Among the SUCs, the University of the Philippines System (UPS) topped with
P15.77 billion deposits, followed by Batangas State University with P710.34
million and Bulacan State University, ranked 3rd, with P404.57 million. SUCs are
authorized under R.A. No. 8292, the Higher Education Modernization Act of
1997, to deposit in AGDB as Special Trust Fund, collections of income from
tuition fees and other school charges.
64
From the Judiciary, the Supreme Court and Lower Courts accounted for P8.50
billion shared by the Supreme Court Proper P2.26 billion and Lower Courts,
including the Office of the Court Administrator P6.24 billion.
Finance
Foreign Affairs
Justice
Energy
Social Welfare and Development
Tourism
Labor and Employment
State Universities and Colleges
ARMM
Public Works and Highways
Environment and Natural Resources
Interior and Local Government
Agriculture
Transportation and Communications
Other Departments/Offices
Total
Time
15,511.21
436.83
132.10
0.64
________
16,080.78
Total
18,038.23
4,056.03
912.49
831.89
784.08
301.21
277.37
264.41
209.50
194.29
189.66
185.02
127.84
123.48
198.86
26,694.36
Of the P18.04 billion reported by the DOF, the BTr-GOP accounted P17.88
billion balance. This includes free balances and managed funds P8.55 billion;
Forfeited Swiss deposits P7.45 billion; NY Collateral Bonds ConversionFederal Reserve Bank P728.46 million; and Escrow account P151.30 million.
The DFA-OSEC deposits of P4.06 billion represents cash in bank balances
maintained by Foreign Service Posts, of which P3.2 billion or 79.18 percent was
retained as working funds.
65
Receivables P25.79 billion. Details of the Receivables by accounts are shown in Table
V.1-6.
Table V.1-6 Details of Receivables by Account
Particulars
Receivable Accounts
Accounts Receivable, Net
Notes Receivable
Due from Officers and
Employees
Loans Receivable - GOCCs
Loans Receivable - LGUs
Loans Receivable - Others
Interest Receivable
Advances to Officers and
Employees
Inter-Agency Receivables
Due from National Treasury
Due from NGAs
Due from GOCCs
Due from LGUs
Due from NGOs/POs
Intra-Agency Receivables
Due from Regional Offices/
Staff Bureaus
Due from Operating Units
Other Receivables
Receivables-Disallowances/
Charges
Other Receivables
Total
Percent
(0.83)
(16.92)
0.02
789.41
79,914.80
3,329.40
8,356.46
2,925.37
716.57
81,429.12
3,425.68
8,062.81
1,337.29
72.85
(1,514.32)
(96.29)
293.65
1,588.08
10.17
(1.86)
(2.81)
3.64
118.75
6,450.43
489,030.59
7,607.01
5,427.98
447,413.98
19,649.90
8,931.72
-
7,562.36
469,946.71
14,018.74
433,547.29
14,355.71
8,024.97
448.76
(1,111.93)
19,083.88
(6,411.73)
5,427.98
13,866.69
5,294.19
906.75
448.76
(14.70)
4.06
(45.74)
3.20
36.88
11.30
(100.00)
25,792.24
448.76
25,692.97
(448.76)
99.27
(100.00)
0.39
4,981.42
20,810.82
760,049.25
4,861.79
20,831.17
743,356.00
119.62
(20.35)
16,693.25
2.46
(0.10)
2.25
Accounts Receivables (Net) balance of P6.35 billion representing less than one percent
of the total receivables, exhibited a decline of P1.29 billion or 16.92 percent compared
to P7.65 billion reported in previous year. The five agencies that reported huge
balances with a combined total of P4.01 billion or 63.26 percent were as follows:
DOH-OSEC P1.03 billion; DOTC-OSEC P837.22 million; DOE-OSEC P834.29
million; University of the Philippines P543.79 million and DENR National Water
Resources Board P561.40 million. Schedule 11, Volume I-B enumerates the
departments/ offices with Net Accounts Receivables.
Notes Receivables of P137.11 billion constituted 18.04 percent of the total receivables
of the NG, of which P137.02 billion or 99.94 percent was reported by the DOF-BTrGOP. It pertains to the Promissory Note issued by the Central Bank-Board of
Liquidators (CB-BOL) in favor of the Treasurer of the Philippines in substitution for
the frozen/retained deposits of the NG in the CB-BOL.
Due from Officers and Employees rose to P789.41 million, showing an increase of
P72.85 million or 10.17 percent from P716.57 million in previous year. The amount
consisted of billings for overpayment of salaries, allowances/entitlements, honoraria
and cash shortages. The five agencies that reported the largest balance to this account
66
are: DFA OSEC P134.54 million, DA-OSEC P123.46 million; DOF-BIR P92.63
million; Supreme Court of the Philippines and Lower Courts - P41.42 million; DepED
OSEC P39.03 million. Schedule 12, Volume I-B presents the complete list of
departments/offices/agencies with balances to this account.
Loans Receivable GOCCs totaling P79.91 billion decreased by P1.51 billion or 1.86
percent compared to previous years balance of P81.43 billion. Of the total, the DOFBTr-GOP reported P76.71 billion or 95.99 percent consisting of cash and constructive
cash loan outlays to GOCCs. This also included the balances of accounts InvestmentsInterest Bearing Loans to GOCCs and Other Interest Bearing Loans amounting to
P73.17 million and P37.59 million, respectively, which remained dormant for 12 to 30
years. Details of Loans Receivables by GOCCs, by the Bureau of the Treasury are
presented in Schedule 13, Volume I-B.
Amount
(in million pesos)
329.53
309.69
165.16
162.41
154.54
134.55
126.34
95.03
24.63
0.06
1,501.94
67
or 118.75 percent. This was mainly due to the DOF-BTr-GOPs P1.74 billion accrued
interest on investments in Treasury Bonds from the Special and Sinking Funds; and
LBP administered Agrarian Reform Fund (ARF). The DOFMDFO also reported
P478.03 million interest receivable from loans released to LGUs.
Advances to Officers and Employees dropped to P6.45 billion from prior years
balance of P7.56 billion, posting a reduction of P1.11 billion or 14.70 percent. The
amount represents the unliquidated cash advances granted for local and foreign travels
and for special purpose/time-bound undertakings. The DepED OSEC topped the list
with P1.73 billion corresponding to 26.84 percent of the total, followed by the DSWD OSEC with P848.43 million or 13.15 percent; and the OP-Presidential Anti-Organized
Crime Commission P550 million or 8.53 percent. Schedule 12, Volume I-B presents
the complete list of departments/offices/agencies with unliquidated advances to officers
and employees.
Inter-agency Receivables rose to P489.03 billion from P469.95 billion in prior year,
posting an increment of P19.08 billion or 4.06 percent. It consisted of the following
accounts: Due from National Treasury P7.61 billion, Due from NGAs P5.43 billion,
Due from GOCCs P447.41 billion, Due from LGUs P19.65 billion and Due from
NGOs/POs P8.93 billion.
Due from National Treasury (NT) was reduced to P7.61 billion after the
elimination of the P25.33 billion balances reported in the Regular Agency books of
various NGAs with the reciprocal account Due to Other NGAs in the BTR-GOP
books. Due from NT account pertains to collections of income which some
government agencies are authorized to use but are required to remit to the National
Treasury pursuant to Executive Order No. 338 and other non-income receipts such
as performance/bail/bidders bond in cash.
Due from GOCCs balance of P447.41 billion grew by P13.87 billion or 3.20
percent from P433.55 billion in 2010. The DOF-BTr-GOP reported the highest
balance of P424.92 billion or 94.97 percent, details of which are shown in Table
V.1.7. The DA- OSEC followed, with P6.54 billion representing fund transfer to
LBP for ACEF project and to NABCOR, ZREC, PADCC for implementation of
PDAF and other DA projects. The DOTC-OSEC, the 3rd highest, reported P5.71
billion balance which include fund transferred to the Light Rail Transit Authority of
P4.50 billion and to the Manila International Airport Authority of P1.10 billion for
the MRT 3 System Capacity Expansion Project and NAIA Terminal I
Rehabilitation Project, respectively. Schedule 14, Volume I-B presents the list of
GOCCs with balances under this account in the Bureau of the Treasury.
Due from LGUs balance of P19.65 billion increased by P5.29 billion or 36.88
percent from the 2010 level of P14.36 billion. The account pertains to unliquidated
fund transfers to various LGUs for implementation of specific agencies projects in
the locality. The DA-OSEC reported the highest balance at P4.39 billion consisting
of funds transferred by OSEC, RFUs and Bureaus to the LGUs for implementation
of various infrastructures projects and post-harvest facilities such as Farm to Market
Roads, Small Water Impounding Projects, farm inputs/implements and
repair/rehabilitation of existing irrigation. The DSWD-OSEC balance of P3.12
billion includes rehabilitation assistance for the victims of calamities and for
implementation of various DSWD programs and projects. Other agencies with
68
more than P1.50 billion balances under this account are: DOH-OSEC P2.48
billion, DPWH-OSEC P2.10 billion and DAR OSEC P1.74 billion.
Table V.1-7 Due from GOCCs
Reported by the Bureau of the Treasury
Nature
NGs advances in behalf of GOCCs/GFIs for their foreign and domestic
obligations (principal, interest and other charges)
NGs refinancing of BSP advances/payments on liabilities retained
with CB-BOL
Guarantee fee receivables
NG advances for assumed GOCCs/GFIs guaranteed obligations
Dormant accounts
Balance of loans outlay released to LBP under the Agrarian Reform
Loans
Balance of DBPs outstanding obligations to NG involving the transfer
of DBPs receivable from DAR/LBP pursuant to EO No. 407 dated
June 14, 1990
Others
Total
Amount
(in million
pesos)
259,239.90
136,781.50
11,572.06
7,976.05
7,758.49
1,272.42
272.25
____44.61
424,917.29
69
Other Receivables dropped to P20.81 billion from P20.83 billion in 2010, showing
a minimal decrease of P20.35 million. The DOF-BTr-GOP reported P12.62 billion
comprising 60.65 percent of the total, of which P12.13 billion pertains to the
receivables of the Treasurer of the Philippines from Authorized Agent Banks for the
BIR collections per Department Order No. 73-02 dated September 20, 2002 and the
Memorandum of Agreement between the banks, the BTr and the BIR.
Schedule 16, Volume I-B shows the departments/agencies with balances to
Other Receivables accounts.
70
Deposit on Letters of Credit of P9.09 billion reduced by P1.49 billion or 14.06 percent
from the 2010 balance of P10.57 billion. The DND-GHQ-AFP and the Philippine
Army accounted the highest balances at P5.70 billion or 63.14 percent and P1.03 billion
or 11.39 percent of the total, respectively. The account represented marginal deposits or
prepayments deposited to authorized depository banks for the supplies and delivery of
ammunitions, vehicles and communication requirements of the AFP contracted from
foreign suppliers and cost of freight forwarding. Other agencies which reported more
than P100 million balances were: DBM-Procurement Service P1.21 billion, DAOSEC P214.81 million, COMELEC P209.74 million, DOTC- OSEC P187.71
million, and DND Government Arsenal P132.37 million.
Other Current Assets group aggregating P7.65 billion consisted mostly of Guaranty
Deposits of P7.27 billion or 95.14 percent and Other Current Assets account of P371.52
million.
Guaranty Deposits at P7.27 billion reduced by P3.76 billion or 34.10 percent from last
years balance of P11.04 billion. The account represented the cash deposits with
government banks and other private institutions mainly for the procurement of goods,
equipment and ammunitions locally and from abroad subject to refund. The DA-OSEC
reported P4.01 billion while DND- AFP -GHQ shared P2.41 billion representing 55.08
percent and 33.15 percent of the total, respectively.
The account of the DA-OSEC included the P4.00 billion contribution/
augmentation to the Agricultural Guarantee Pool Fund (AGPF) for Rice SelfSufficiency Program of the Government per Administrative Order No. 244 dated
October 23, 2008 issued by the Office of the President.
The departments/offices with balances of Other Current Assets by account are
presented in Schedule 19, Volume I-B.
78,899.69
615,605.81
842,102.10
71
12,010,.57
161,202.89
174,141.49
Percent
5.71
6.02
(0.09)
3.14
15.22
26.19
20.68
Sinking Fund of P776.81 billion represents 66.71 percent of the total investments of the
NG. This pertains to Sinking Fund accounts of NG-issued and NG Guaranteed LBP,
MWSS, HGC, NFA, NPC, PPA and PAG-IBIG Bonds being administered by the DOFBTr-GOP.
72
Percent
(2.38)
5.40
24.26
2.87
48,382.52
24,859.59
46,275.96
24,322.12
2,106.56
537.47
4.55
2.21
7,081.96
533,628.73
987,058.35
6,175.59
539,294.64
985,800.17
906.37
(5,665.92)
1,258.18
14.68
(1.05)
0.13
LeaseholdImprovements
OfficeEquipment,FurnitureandFixtures
14.29%
TransportationEquipment
0.72%
0.04%
2.52%
4.90%
MachineriesandEquipment
3.33%
OtherProperty,PlantandEquipment
ConstructioninProgress
Land and Land Improvements group accumulated value of P198.78 billion exhibited
a reduction of P4.84 billion or 2.38 percent from P203.62 billion in previous year. Of
the components, the Land account had the highest balance at P160.66 billion
representing 80.82 percent, followed by the Land Improvement account with net book
value of P35.44 billion or 17.83 percent. Runways/Taxiways account had the least
balance at P210. 48 million, noting a reduction of P1.13 billion or 84.30 percent from
last years P1.34 billion. The significant reduction was due to the dropping from DOTC
books the transfer of completed projects to the recipient agency. Table V.1-10 shows
the comparative components of Land and Land Improvement accounts
73
593.63
203,622.07
18.63
(4,844.72)
Percent
0.46
(11.21)
(84.30)
3.14
(2.38)
The agencies that reported more than P10 billion worth of property under the
Land and Land Improvement category of accounts are: DSWD-OSEC P40.26 billion,
DPWH-OSEC P30.90 billion, DA-OSEC P19.22 billion, DND-Philippine Air Force
P17.65 billion and DOJ-PCGG P16.02 billion.
Buildings accumulated net book value of P141.10 billion comprised 14.29 percent of
the total PPE. It registered an increase of P7.23 billion or 5.40 percent over the 2010
level of P133.87 billion. Among the components of this group of PPE, the School
Buildings account shared the biggest portion at P60.85 billion or 43.12 percent,
followed by Office Buildings at P44.71 billion or 31.69 percent, and Other Structures at
P27.17 billion or 19.26 percent. Table V.1-11 shows the components of Buildings.
Table V.1-11 Components of Buildings
Particulars
Office Buildings
School Buildings
Hospitals and Health Centers
Markets and Slaughterhouses
Other Structures
Total
Percent
3.62
6.71
15.27
(25.51)
2.95
5.40
The DepED - OSEC reported the biggest balance valued at P44.08 billion, of
which P42.04 billion or 95.36 percent were School buildings. The amount of buildings
booked up does not include the School Building Projects implemented by the DPWH
due to non-availability of documents such as the certificate of final completion and
certificate of acceptance by the end-users. The other two agencies with huge balances to
this PPE group of account were: DPWH-OSEC with P24.42 billion, which included
completed school building projects that were already transferred to the end-user
agencies but not yet dropped from the books of DPWH; and DOH-OSEC with P6.86
billion net book value of buildings, of which P6.08 billion were hospitals.
74
Percent
15.72
492,649.70
309,819.00
188.51
4,054.07
503,643.57
326,691.53
838.46
6,014.21
(10,993.87)
(16,872.53)
(649.95)
(1,960.15)
(2.18)
(5.16)
(77.52)
(32.59)
3,117.76
69,324.13
49,156.00
3,354.51
60,712.76
52,796.04
(236.76)
8,611.37
(3,640.04)
(7.06)
14.18
(6.89)
2,102.64
54,887.59
2,129.63
2,085.62
44.01
533,628.73
2,270.15
50,965.90
2,079.80
2,043.15
36.64
539,294.64
(167.51)
3,921.68
49.83
42.47
7.36
(5.665.92)
(7.38)
7.69
2.40
2.08
20.09
(1.05)
75
5.1.1.4
Reforestation
Projects
aggregating P2.13 billion
showed a slight increase of
P49.83 million or 2.40
percent from the previous
years balance of P2.08
billion. This was reported by
the DENR-OSEC consisting
of P2.09 billion or 97.93
percent for Upland and
P44.00 million or 2.07
percent for Marshland/
Swampland.
Agencies
DPWH - OSEC
DA-OSEC
DOTC-OSEC
DAR-OSEC
MMDA
DENR-OSEC
DOH-OSEC
Pasig River Rehabilitation
Commission
DND-Phil Army
DOT-OSEC
ARMM-Office of the
Regional Governor
Other Agencies
Total
Amount
(in million
pesos)
398,561.45
66,415.00
23,138.80
1,708.34
850.22
781.73
318.38
Percentage
80.90
13.48
4.70
0.35
0.17
0.16
0.06
312.07
195.07
137.05
0.06
0.04
0.03
100.22
131.35
492,649.70
0.02
0.03
100.00
The aggregate Other Assets of the NG stood at P109.50 billion and represented
3.32 percent of the total assets. This group of account went up by 1.73 percent or P1.86
billion from last years balance of P107.64 billion. Among the components of this group,
Work/Other Animals had the highest growth rate of 34.71 percent but with least balance
of P132.29 million, while the Other Assets Account had the least growth rate of 2.14
percent but with the biggest balance of P98.07 billion. Table V.1-14 shows the
components of the Other Assets group.
Table V.1-14 Components of Other Assets Group
Particulars
Other Assets
Items in Transit
Breeding Stocks
Arts, Archeological Specimen
and Other Exhibit
Work/Other Animals
Total
394.56
98.20
107,636.70
19.71
34.09
1,865.22
Percent
2.14
(2.13)
(2.71)
4.99
34.71
1.73
The Other Assets account is used to record the value of serviceable assets not used in
operation and those waiting for disposal. At year-end, this account amounted to P98.07
billion or 89.56 percent of the total. The DOF-BTr-GOP reported P72.75 billion
balance consisted mostly of transferred assets under Proclamation No. 50 wherein
disposition and sale are being handled by the Privatization and Management Office and
PNPP/NPC, and financial assets transferred from DBP, PNB and Philguarantee
amounting to P68.12 billion and P4.63 billion, respectively. It also included the P2.17
million appraised value of diamonds in the Treasury Vault deposited by various
government agencies which were escheated in favor of the Republic of the Philippines
per court order dated May 5, 1997.
76
6,000
5,000
4,000
3,000
2,000
1,000
0
C urre nt Lia bilit ie s
2002
2003
2004
2005
2006
2007
2008
2009
2 0 10
2 0 11
6 7 2 .8 7
2 0 4 .10
2 2 5 .9 0
2 12 .8 0
2 3 9 .7 4
2 5 0 .12
2 7 1.7 7
9 12 .8 6
8 13 .0 2
7 10 .19
The chart shows that total liabilities continued to grow, except in 2007 where there
was a slight decline brought about by the decrease in Long-term Liabilities. The decrease in
Long-term Liabilities and the increase in Current Liabilities in 2009 were due to the
reclassification of the current portion of the Loans Payable-Domestic from Long-term
Liabilities to Current Liabilities. For FY 2011, total liabilities increased due to the great
increment in Long-term Liabilities though there was a slight decrease in Current Liabilities.
The Deferred Credits, though forming part of the total liabilities, was not included in the
graphical presentation because of its insignificant amount.
5.1.2.1 Current Liabilities P710.19 billion
This years Current Liabilities posted a decrease of P102.83 billion or 12.65
percent from last years balance of P813.02 billion. This was due to the decline in
Loans Payable - Domestic, Current by P255.84 billion or 46.25 percent and Payable
Accounts by P8.00 billion or 6.54 percent. There were, however, increases in InterAgency Payables of P15.44 billion or 30.99 percent, Intra-Agency Payables of
P140.51 billion or 1,949.27 percent, and Other Liability Accounts of P5.06 billion or
6.30 percent. Table V.1-15 shows the components of Current Liabilities with
comparative figures for 2010.
77
Payable Accounts
Inter-Agency Payables
Intra-Agency Payables
Other Liability Accounts
Loans Payables, Domestic, Current
Total
2011
Amount
Percent
(in million
Distribupesos)
tion
2010
Amount
(in million
pesos)
114,370.53
65,253.73
147,722.26
85,466.69
297,380.52
710,193.73
122,372.76
49,816.03
7,208.54
80,403.92
553,219.49
813,020.74
16.10
9.19
20.80
12.03
41.87
100.00
Increase/ (Decrease)
Amount
(in million
Percent
pesos)
(8,002.23)
15,437.70
140,513.71
5,062.78
(255,838.97)
(102,827.01)
(6.54)
30.99
1,949.27
6.30
(46.25)
(12.65)
Accounts Payable of P97.16 billion accounted for 84.96 percent of the total
Payable Accounts. It exhibited a decrease of P7.98 billion or 7.59 percent from
P105.14 billion in 2010. Table V.1-16 shows the comparative Accounts Payable
by department/office/agency.
Table V.1-16 Accounts Payable by Department/Office/Agency
Percent
(11.16)
152.25
0.09
10.37
40.89
(21.81)
(56.82)
(13.45)
(36.42)
(17.16)
(18.34)
(7.59)
The table discloses that the decrease in Accounts Payable was mainly due to
the decrease in the accounts of the DPWH P5.82 billion, DOF P3.60 billion,
DOTC P1.32 billion, SUCs P1.17 billion, and other departments P2.20
billion. However, the decrease was partly offset by the increase in the DSWD
P4.46 billion, DA P1.89 billion, and DOH P616.30 million.
78
The DPWH, particularly the OSEC, reported the biggest Accounts Payable
of P46.26 billion which pertains to unpaid accounts on contractors progress
billings and suppliers goods.
The DSWD followed with P7.39 billion. The amount includes P5.39 billion
representing various claims of creditors and unpaid cash grants of the
beneficiaries of Pantawid Pamilyang Pilipino Program, and P1.18 billion
pertaining to unreleased checks subject for reversion in the ensuing year.
Of the P6.67 billion accounts payables declared by the PRRC, P6.66 billion
pertains to payables for various infrastructure projects which were paid under the
direct payment scheme charged against the ADB loan and Belgian Super Subsidy
Facility loan awaiting the release of the Notice of NCAA from the DBM.
The DOH has an outstanding amount of P6.56 billion in accounts payable,
P6.52 billion of which was reported by the OSEC pertaining to purchases of
inventories and PPE on account and unpaid contracts for services.
The DA has an accumulated balance of P6.50 billion. Of this amount, P5.92
billion was reported by the OSEC representing unreleased checks and due and
demandable obligations and P1.41 billion paid by the bank under the direct
payment scheme but remained outstanding in the books due to the non-issuance of
the NCAA by the DBM.
The SUCs shared a total of P4.21 billion of which P2.94 billion was
accounted by the University of the Philippines.
The DOF reported P2.74 billion, of which P1.89 billion was accounted by
the DOF-BOC.
The DepED has an outstanding Accounts Payable of P2.56 billion. Of this
amount, a total of P1.74 billion was reported by the Regional Offices, and
P785.48 million was recorded in the books of the OSEC and its bureaus.
The DOTC has an accumulated balance of P2.31 billion as of yearend. The
OSEC reported P1.47 billion which refers to obligations to external creditors for
goods delivered and services rendered, P1.01 billion of which are payables aged
less than 90 days. Of the payables over one year and above, the amount of
P100.76 million shall be reverted in 2012. The LRTA also reported P659.40
million which pertains to obligations to different contractors for various projects.
The amount of P9.81 billion or 10.10 percent of the total Accounts Payable
was shared by other department/office/agency. Details of Accounts Payable by
department/office/agency are presented in Schedule V-25, Volume I-B.
Notes Payable with a balance of P7.15 billion represents 6.25 percent of the total
payables. Of this amount, P7.14 billion refers primarily to promissory notes
issued by the DOF-BTr-GOP to Multilateral Investment Guaranty Agency
(MIGA), Asian Development Bank (ADB), International Monetary Fund (IMF),
79
and International Bank for Reconstruction and Development (IBRD) for payment
of subscription to the capital stock.
Due to Officers and Employees of P9.53 billion shared 8.33 percent of the total
payables which decreased by P362.67 million or 3.67 percent from P9.89 billion
in 2010. It represents unpaid salaries, fringe benefits and other emoluments, and
other unpaid obligations due to officers and employees of NGAs. The DILG
reported the biggest amount of P2.59 billion, followed by DND and DepED with
P2.43 billion and P2.24 billion, respectively. The remaining balance of P2.27
billion was reported by the other departments/offices.
Due to BIR of P3.18 billion constitutes 4.87 percent of the total inter-agency
payables. This account refers to unremitted withholding taxes from salaries of
officers and employees and from claims of suppliers, contractors, and other
creditors.
80
P5.88 billion represent 9.01 percent of the total inter-agency payables. They
pertain to unremitted deductions from salaries of government officials and
employees such as: mandatory contributions to GSIS for life and retirement
insurance premiums, PAG-IBIG and PHILHEALTH premiums, including
government shares, and various deductions for loan payments.
Amount (in
million pesos)
17,075.51
5,035.95
928.22
133.30
48.21
43.06
23,264.25
The DFA also reported P2.95 billion while the remaining balance of P1.47
billion was shared by the other departments/offices/agencies.
Due to LGUs of P6.22 billion constitutes 9.53 percent of the total inter-agency
payables. This consists of P4.16 billion trust funds administered by the DOE
under the Energy Regulatory 1-94 which was remitted by generation companies
and/or energy resource developers. These companies are mandated to set aside
one centavo per kilowatt-hour of the electricity sales as financial benefit of the
host community/local government unit to be used for the latters electrification,
development and livelihood, reforestation, watershed management, health and
environment enhancement projects. The amount also includes interest
earned/income from deposits/investments out of the fund which are exempted
from the requirement of accrual to the General fund and remittance to the National
Treasury.
The DBM also reported a huge balance of P1.57 billion. Of this amount,
P1.53 billion represents the outstanding funding requirements for the
implementation of the priority programs of various LGUs obligated for CYs 1999
to 2008.
81
32,805.60
12,409.94
8,748.37
5,353.00
4,157.00
4,110.54
3,385.78
3,336.07
2,202.64
1,965.77
6,991.99
85,466.70
82
38.38
14.52
10.24
6.26
4.86
4.81
3.96
3.90
2.58
2.3
8.18
100.00
The DOF reported the biggest Other Liability Accounts in the amount of
P32.81 billion or 38.38 percent of the total. Of this amount, P16.01 billion was
reported by the BTr-GOP of which P15.97 billion pertains to the following:
Particulars
1. Forfeited Swiss Deposits
2. 20% Final Tax Withheld on Peace Bonds (10 year )coupon bonds due Oct. 2011)
3. Payments of GOCCs for servicing of their foreign loans
4. Emergency Guerilla Currency Notes (RA369)
5. Contributions to FFIs
6. Backpay Rights Sinking Fund (RA897)
7. Backpay Rights Sinking Fund (RA304)
8. Others
Total
Amount
(in million
pesos)
10,531.97
4,966.21
395.53
31.71
26.20
22.41
1.11
0.20
15,975.35
The BIR, the BOC, and the CDA also reported Other Liabilities of P7.69
billion, P7.90 billion, and P992.99 million, respectively.
The SUCs shared P12.41 billion or 14.52 percent of Other Liabilities. Of this
amount, P 10.26 billion belonged to the UP.
Other Liabilities of the Judiciary totaled P8.75 billion or 10.24 percent. The
Supreme Court of the Philippines and Lower Courts reported P7.74 billion for cash
bond received to guarantee faithful performance of contracts with the government,
bidders bonds, bail bonds, rental deposits, consignation and other fiduciary fees
collected.
Other Liabilities of the DOTC amounting to P5.35 billion or 6.26 percent
comprises mainly of Other Payables in the amount of P4.49 billion and Guaranty
Deposits of P853.03 million. Other Payables of P2.05 billion, reported by the DOTCOSEC, includes P1.89 billion pertaining to collections from the operation of the
EDSA MRT 3 to be used for the payment of rental/equity and maintenance fee and
other payments enumerated in the agreement to build, operate and transfer. The LTO
also reported P2.43 billion in Other Payables which represents collected
computerization fees held in escrow on behalf of the LTO-IT project proponent,
STRADCOM Corporation.
The DPWH balance for this liability group summed up to P4.16 billion or 4.86
percent. Of this amount, the Regional Offices reported P2.57 billion consisting mainly
of Guaranty Deposits Payable of P2.21 billion. Moreover, of the total Other Liabilities
reported by the DPWH, P1.12 billion was classified as Other Payables which includes
claims of employees for reserved leaves and terminal pay, and allowable deductions
in the compensation of employees payable to private companies, claims of public and
private establishments for the refund of cash bonds posted in securing excavation
permits and deposits for sub-soil exploration.
Under the DND, PVAO reported Other Payables amounting to P2.78
billion for pension payments where the liquidation of actual remittances are not yet
submitted by the bank to PVAO. During the year, disbursements intended for
83
remittance to pensioners accounts are not deducted from Other Payables until receipt
of the bank certification that such have already been remitted to the pensioners.
4,644,761.08
100.00
4,178,785.58
465,975.49
Bonds Payable Domestic of P2.563 trillion or 55.18 percent of the total Long-term
Liabilities represents Treasury Bonds issued domestically by the National
Government.
Bonds Payable Foreign of P1.214 trillion or 26.14 percent of the total long-term
liabilities corresponds to offshore bond flotation of the Republic of the Philippines.
Long-term Payables were mostly reported by the BTr-GOP. It fully accounted for
Bonds Payables Domestic and Foreign. Likewise, the BTR-GOP shared P865.74
billion or 99.95 percent of the total Loans Payable Foreign.
84
A detailed discussion on National Government Debt reported by the DOF-BTrGOP is presented on pages 121 to 138 of this report.
5.1.2.3 Deferred Credits P27.06 billion
At the close of the year, Deferred Credits amounted to P27.06 billion,
showing an increase of P427.73 million or 1.61 percent from last years balance of
P26.63 billion. The departments/offices which reported substantial balances are: DOF
P21.10 billion, OEO P4.23 billion, and SUCs P1.17 billion.
Among the agencies under the DOF, the PMO reported P14.24 billion
pertaining to the installment sale of transferred assets. The BTr also reported P6.81
billion, details of which are as follows:
Amount
(in million pesos)
4,961.95
Nature
1,471.58
529.02
44.61
7.29
0.57
(206.31)
6,808.71
85
86
Through the years, the DPWH, being the implementing arm of the NG for
infrastructure projects of the country, has always been reporting the highest completed
public infrastructures, and for this year it totaled P17.37 billion or 54.96 percent of the
completed public infrastructures. The PRRC, DA, and DOTC followed with P6.36
billion or 20.12 percent, and P5.64 billion or 17.85 percent, and P1.51 billion or 4.79
percent, respectively.
Completed Reforestation Projects of P952.19 million, showed an increase of
P203.29 million or 27.14 percent from the previous years balance of P748.90 million.
For the last three years, only the DENR and the SUCs have been reporting
completed reforestation projects. The DENR, being the agency responsible for the care
and protection of forest lands and the conservation of natural resources, reported
P923.08 million or 96.94 percent while the SUCs, accounted for P29.11million or 3.06
percent.
87
88
Percent
12.49
12.01
15.91
11.34
10.32
14.07
13.70
15.05
12.91
27.56
(63.49)
11.99
(7.14)
(139.73)
(107.88)
(163.63)
(43.43)
1,221.94
1,273.24
Actual
Programmed
177.07
Tax
Non-Tax
138.06
Of the total tax revenue, P923.82 billion or 75.60 percent was shared by the BIR
and P264.83 billion or 21.66 percent by the BOC including non-cash revenue from the
Tax Expenditure Fund (TEF) of P9.41 billion and the rest by other tax collecting
agencies, namely: the DOTC-LTO, Motor Vehicle Users Charge (MVUC); DILG-BFP,
Fire Code Tax; DOJ-BI, Immigration Tax; DENR-OSEC, Forest Charges; and OEOCHED & NCCA, Other Taxes. This year, tax revenue represents 87.34 percent of the
aggregate consisting of: Taxes on Goods and Services P528.70 billion or 43.27 percent;
Income Taxes P426.28 billion or 34.89 percent; Final Taxes P130.95 billion or 10.72
percent; Import Duties P48.80 billion or 3.99 percent; Property Taxes P8.95 billion or
0.73 percent; Other Taxes P65.27 billion or 5.34 percent; and Fines and Penalties
P12.98 billion or 1.06 percent.
Based on the financial reports submitted by the main tax revenue collecting
agencies, current years tax collections of the BIR exceeded last years collection of
P822.70 billion by P101.12 billion or 10.95 percent, while the BOC reported an increase
of P7.97 billion or 3.10 percent over last years collection of P256.86 billion.
89
The total tax revenue collections pertaining to taxes on net income and profits
contributed the biggest share at P557.23 billion or 45.60 percent. The increase of P80.69
billion was mainly due to the increase of income tax on corporations and final tax of
P54.68 billion and P21.80 billion, respectively. Despite the total increase for the year
under this tax category, it was not sufficient for the tax collecting agencies to meet the set
target at P569.52 billion or a shortfall of P12.29 billion. (Source of set target: BESF for
FY 2012) Table V.2-2 shows the comparative Income Taxes for calendar years 2011 and
2010.
Table V.2-2 Comparative Income Taxes, By Source
Amount (in million pesos)
Increase
Particulars
Percent
2011
2010
(Decrease)
Corporations
269,731.68 215,052.31
54,679.37
25.43
Individuals
156,394.74 152,252.69
4,142.05
2.72
Final Tax
130,948.46 109,144.28
21,804.18
19.98
Partnerships
156.71
94.51
62.20
65.82
Total
557,231.59 476,543.79
80,687.80
16.93
Difference between totals and sum of components is due to rounding off.
This year, tax collections on goods and services remained the second largest
provider at P528.70 billion or 43.27 percent of the total tax revenue. This is higher by
P226.61 billion or 75.01 percent than last years P302.10 billion. This category consists
of tax collections on General Sales, Turnover or VAT; Excises on Goods; Taxes on
Services and Taxes on the Use of Goods or Property or Permission to Perform Activities.
The impressive growth was fueled by the increase in Turnover or VAT collections, as
reflected in the reports submitted by the BOC. Table V.2-3 shows the comparative Taxes
on Goods and Services for calendar years 2011 and 2010.
Table V.2-3 Comparative Taxes on Goods and Services, By Source
Amount (in million pesos)
Increase
Particulars
Percent
2011
2010
(Decrease)
General Sales, Turnover or VAT
422,290.97 224,332.70
197,958.27
88.24
Excise Tax on Articles
96,937.87
67,593.99
29,343.88
43.41
Taxes on the Use of Goods, Property,
Permission to Perform Activities
(6.82)
__9,476.14
10,169.84
(693.69)
Total
528,704.98 302,096.53
226,608.45
75.01
Difference between totals and sum of components is due to rounding off.
As reported by the BOC, there was a sharp decline on the collection of Import
Duties from last years P215.81 billion to this years P48.80 billion or a decrease of
P167.01 billion or 77.39 percent.
90
Documentary Stamp Tax, the main component of Other Taxes amounting to P49.08
billion or 75.19 percent was reported mostly by the BIR at P48.41 billion and the BOC at
P664.93 million. Other components are: Tax on Forest Products P45.53 million or 0.07
percent as reported by DENR-OSEC; Immigration Tax P61.19 million or 0.09 percent
as reported by DOJ-Bureau of Immigration. Also included in this category in the amount
of P16.09 billion is Other National Taxes which represent the undistributed amount
lumped in this account by the BTr.
The BIR, the lone collector of Property Taxes, made a total collection on property
transfers amounting to P8.95 billion for the year. This is 39.66 percent lower than last
years collection of P14.84 billion. In this tax category, Capital Gains Tax contributed the
highest at P8.03 billion or 89.65 percent. Table V.2-4 shows the comparative components
of Property Taxes.
Table V.2-4 Comparative Components of Property Taxes
Amount (in million pesos)
Increase
Particulars
2011
2010
(Decrease)
Capital Gains Tax
8,027.17
12,998.05
(4,970.87)
Estate Tax
552.68
1,346.99
(794.31)
Donors Tax
374.17
493.44
(119.27)
Total
8,954.03
14,838.48
(5,884.46)
Percent
(38.24)
(58.97)
(24.17)
(39.66)
The amount of P12.98 billion, representing fines and penalties on late payment of
national taxes, ballooned by P10.89 billion or more than five times from last years P2.08
billion. It was collected mainly by the BOC at P11.79 billion or 90.84 percent. On the
other hand, the BIR collected P1.18 billion or 9.09 percent.
5.2.1.2
91
During the year, Other Income registered an increase of P24.71 billion or 36.79
percent from last years figure of P67.17 billion. The aggregate Other Income includes
among others: P36.75 billion Interest Income; P29.13 billion Dividend Income;
P13.87 billion Share from PAGCOR/PCSO; and the other components shared the
balance of P12.12 billion as shown in Table V.2-6.
Table V.2-6 Components of Other Income
Amount
Percentage
(in million
Particulars
Distribution
pesos)
Interest Income
36,750.81
40.00
Dividend Income
29,133.40
31.71
Share from PAGCOR/PCSO
13,867.32
15.09
Income from Grants and Donations
6,337.99
6.90
Miscellaneous Income
4,798.03
5.22
Insurance Income
535.13
0.58
Internal Revenue Allotment
236.58
0.26
Other Fines and Penalties
134.85
0.15
Sale of Confiscated/Abandoned/Seized Goods
and Properties
78.71
0.09
Share from National Wealth
0.49
a
Share from Expanded Value Added Tax (EVAT)
b
a
________
Total
91,873.31
92
______
100.00
Amount
Finance
State Universities and Colleges
Other Executive Offices
National Defense
Agriculture
Trade and Industry
Energy
The Judiciary
Education
Other Departments/Offices
Total
36,189.38
324.96
63.97
60.74
23.79
21.14
20.88
16.97
8.19
20.79
36,750.81
The national government earned Dividend Income of P29.13 billion from equity
investments in GFIs and GOCCs. Dividends remitted by the GFIs and GOCCs to the BTr
increased by P17.12 billion or 142.48 percent compared to last years P12.01 billion.
Table V.2-8 GOCCs/GFIs with Dividend
Remitted to the DOF-BTr
Amount
GOCC/GFI
(in million
pesos)
Bangko Sentral ng Pilipinas
14,234.92
Land Bank of the Philippines
4,426.29
Development Bank of the Philippines
2,844.00
PNOC Exploration Corporation
2,498.34
Manila International Airport Authority
1,206.26
Philippine Ports Authority
961.29
Philippine Deposit Insurance Corporation
581.26
93
Percentage
Distribution
48.86
15.19
9.76
8.58
4.14
3.30
2.00
Amount
(in million
pesos)
543.29
480.33
233.37
221.01
150.00
140.55
115.94
100.00
100.00
56.99
52.61
47.77
40.00
26.28
18.00
17.46
9.72
6.85
6.77
2.76
2.51
2.38
1.83
3.30
29,132.10
Percentage
Distribution
1.86
1.65
0.80
0.76
0.51
0.48
0.40
0.34
0.34
0.20
0.18
0.16
0.14
0.09
0.06
0.06
0.03
0.02
0.02
0.01
0.01
0.01
0.01
0.01
100.00
Table V.2-8 shows the top ten corporations and other GOCCs which remitted
dividends to the National Treasury totaling P29.13 billion as reported by the DOFBTr. The Bangko Sentral ng Pilipinas remitted the biggest amount of dividends at
P14.23 billion or 48.86 percent, while Land Bank of the Philippines and Development
Bank of the Philippines contributed P4.43 billion and P2.84 billion, respectively.
Income from Grants and Donations received in cash and in kind from foreign and
domestic sources accounted for P6.34 billion, higher by P1.27 billion or 25.08 percent
than last years P5.07 billion.
Table V.2-9 shows the departments/offices which received grants and donations
during the year. DOST-Industrial Technology Development Institute topped the list with
P1.62 billion or 25.62 percent of the aggregate amount.
94
Department/Office
Finance
State Universities and Colleges
Public Works and Highways
Labor and Employment
Health
National Defense
Education
Civil Service Commission
Other Executive Offices
Other Departments/Offices
Total
Amount
3,332.12
507.54
431.81
149.76
135.80
121.85
37.17
19.17
13.10
49.71
4,798.03
95
Amount
Percentage
(in million pesos) Distribution
34,483.00
75.90
5,511.69
12.13
3,048.29
6.71
734.54
1.62
703.52
1.55
550.90
1.21
127.65
0.28
115.90
0.26
107.33
0.24
38.35
0.08
6.42
0.01
1.42
a
1.03
a
0.35
a
0.27
a
___________________
______________
Total
45,430.65
100.00
a Below 0.005 percent.
Difference between totals and sum of components is due to rounding off.
Permits and Licenses increased by P7.28 billion or more than fifteen times from last
years P459.62 million. The biggest component of the account pertains to Registration
Fees amounting to P2.59 billion or 33.47 percent. Based on the Reports of Income of the
Departments/Offices, the highest contributors of Registration Fees are: OEO P1.52
billion; DTI P437.80 million; DOF P215.82 million; SUCs P139.82 million; and
DOH P102.71 million. Table V.2-12 shows the components of Permits and Licenses.
Table V.2-12 Components of Permits and Licenses
Amount
Percentage
Particulars
(in million pesos) Distribution
Registration Fees
2,590.24
33.47
Fines and Penalties
2,215.31
28.62
Other Permits and Licenses
1,900.71
24.56
Franchising and Licensing Fees
669.54
8.65
Permit Fees
363.20
4.69
Fishery Rental Fees
0.46
0.01
Total
7,739.47
100.00
Difference between totals and sum of components is due to rounding off.
5.2.1.3
Under the NGAS, NGAs act as collecting agents of the NG, thus income collections
are remitted to the National Treasury. For calendar year 2011, of the total revenue of
P1.399 trillion, 97.58 percent or P1.365 trillion was recorded in the BTr GOP books
representing remittances of various NGAs. The remaining P33.88 billion or 2.42 percent
was reported under RA Books pertaining to collections of various NGAs both with and
without authority to use their income. Table V.2-13 below shows the breakdown of
income by department/office and by book (NG and RA).
96
Total
Legislative Branch
Congress of the Philippines
Executive Branch
Office of the President
Office of the Vice-President
Agrarian Reform
1.10
1.10
34.02
0.01
16.54
34.02
0.01
16.54
275.69
190.85
1,669.03
12,042.91
22.27
275.69
190.85
1,669.03
12,042.91
22.27
99.35
1,365,692.48
296.09
6,643.57
1,855.49
1,365,132.54
-
99.35
559.94
296.09
6,643.57
1,855.49
111.91
617.69
596.46
499.69
1,670.77
111.91
617.69
596.46
499.69
1,670.77
646.67
67.56
420.55
12.54
646.67
67.56
420.55
12.54
17.38
93.04
2,924.11
387.45
0.63
17.38
93.04
2,924.11
387.45
0.63
1,792.59
1,792.59
215.34
62.97
215.34
62.97
13.69
9.78
13.69
9.78
8.57
7.89
8.57
7.89
Total
1,399,016.71
Difference between totals and sum of components is due to rounding off.
1,365,132.54
33,884.17
Agriculture
Budget and Management
Education
State Universities and Colleges
Energy
Environment and Natural Resources
Finance
Foreign Affairs
Health
Interior and Local Government
Justice
Labor and Employment
National Defense
Public Works and Highways
Science and Technology
Social Welfare and Development
Tourism
Trade and Industry
Transportation and Communications
National Economic and Development Authority
Presidential Communications Operations Office
Other Executive Offices
Metropolitan Manila Development Authority
Pasig River Rehabilitation Commission
Judicial Branch
The Judiciary
Constitutional Offices
Civil Service Commission
Commission on Audit
Commission on Elections
Office of the Ombudsman
Other Independent Offices
Commission on Human Rights
Autonomous Region in Muslim Mindanao
97
Of the total income of the NG, NCR reported a total of P1.216 trillion or 86.90
percent, followed by Region IV with P59.23 billion and Region III with P51.32 billion.
Table V.2-14 shows the Regional Breakdown of Income by Source.
Table V.2-14 Regional Breakdown of Income by Source
Amount (in million pesos)
Region
Tax
Non-Tax
Total
Revenue
Revenue
National Capital Region
1,215,782.44 1,062,633.89
153,148.55
Region I
7,098.88
5,614.50
1,484.37
Cordillera Administrative Region
2,140.24
1,387.51
752.73
Region II
3,464.85
2,313.62
1,151.23
Region III
51,317.45
48,616.10
2,701.35
Region IV
59,226.95
56,076.42
3,150.54
Region V
4,128.70
2,824.76
1,303.94
Region VI
5,436.74
3,308.84
2,127.91
Region VII
15,270.44
13,465.20
1,805.24
Region VIII
3,859.55
2,845.77
1,013.78
Region IX
2,672.43
1,794.28
878.16
Region X
9,518.31
7,925.04
1,593.27
Region XI
11,162.84
9,149.05
2,013.79
Region XII
3,708.74
2,046.74
1,662.00
Region XIII
2,486.72
1,940.87
545.85
Autonomous Region in Muslim Mindanao
223.90
1.17
222.73
Foreign Service Posts
1,517.51
1,517.51
Total
1,399,016.71 1,221,943.75
177,072.96
Difference between totals and sum of components is due to rounding off.
Figures presented in the table are taken from the agencies Report of Income.
Details of Income/Revenue by department, by account and by region are presented in
Schedules 27 to 29, Volume I-B.
5.2.2 Expenses
Chart V.2-2 Expenses of the National
Government
(in billion pesos)
98
99
Percent
12.83
0.61
12.32
16.05
10.32
100
Among the departments/offices, the DSWD reported the highest figure for
MOOE at P32.36 billion or 16.38 percent, and is higher by P22.08 billion or more
than twice compared to its previous years level of P10.28 billion. Table V.2-19
presents the departments/offices with big amounts of MOOE.
101
102
Other
Maintenance
and
Operating Expenses of P20.50 billion
accounted for 10.38 percent of the
total expenses under MOOE.
Compared to the previous years
figure of P20.63 billion, a decrease of
P131.17 million or 0.64 percent was
noted for the current year.
The DOTC reported the biggest
amount at P6.78 billion or 33.07
percent, followed by Congress of the
Philippines P2.54 billion or 12.37
percent, DepED P2.05 billion or
9.99 percent, DA P1.66 billion or
8.11 percent and DOH P1.43 billion
or 6.98 percent. Shown in Table V.221 are the departments/offices which
reported big amounts of Other MOE.
20,503.60
100.00
103
Total Repairs and Maintenance for this year decreased by P2.18 billion or
11.40 percent compared to P19.11 billion in 2010. Table V.2-22 shows the
comparative components of Repairs and Maintenance.
Table V.2-22 Comparative Components of Repairs and Maintenance Expenses
(in million pesos)
Amount
Particulars
Percent
Increase
2010
2009
(Decrease)
Public Infrastructures
8,276.44
10,714.89
(2,438.44)
(22.76)
Buildings
4,536.94
4,062.47
474.46
11.68
Transportation Equipment
2,179.46
2,400.51
(221.05)
(9.21)
Office Equipment,
Furniture and Fixtures
897.53
864.54
32.98
3.82
Machineries and Equipment
786.61
777.08
9.53
1.23
Land Improvements
101.84
145.14
(43.29)
(29.83)
Reforestation Projects
69.19
70.51
(1.32)
(1.87)
Other Property, Plant and
Equipment
58.90
56.22
2.67
4.75
Leasehold Improvements
26.49
21.85
4.64
21.23
16,933.40
19,113.22
(2,179.82)
(11.40)
Total
Difference between totals and sum of components is due to rounding off.
Of the components, P8.28 billion or 48.88 percent was expended for the
Repairs and Maintenance of Public Infrastructures. This years cost of repairs
and maintenance is lower by P2.44 billion or 22.76 percent over last years level
of P10.71 billion. Of the total, P6.79 billion or 82.03 percent was for the
Repairs and Maintenance of Roads, Highways and Bridges and P1.08 billion or
13.03 percent was for Flood Control. The remaining P408.77 million or 4.94
percent is shared by all other public infrastructures.
104
The total Subsidy to LGUs, GOCCs and NGOs/POs this year of P391.27 billion is
higher by P51.17 billion or 15.05 percent compared to the previous years level of
P340.10 billion. As shown in Table V.2-23, the breakdown with comparative details is as
follows: LGUs (net) P317.90 billion or 81.25 percent, GOCCs P72.84 billion or
18.62 percent, and NGOs/POs P527.64 million or 0.13 percent.
Table V.2-23 Comparative Details of Subsidy To
LGUs, GOCCs and NGOs/POs
Amount (in million pesos)
Increase
Particulars
2011
2010
(Decrease)
Subsidy to LGUs
(320,001.98) (283,614.73)
(36,387.25)
Subsidy from Other LGUs
2,105.29
2,067.71
37.58
Net Subsidy From/(To) LGUs
(317,896.69) (281,547.02)
(36,349.67)
Subsidy to GOCCs
(72,842.24)
(57,104.69)
(15,737.55)
Subsidy to NGOs/POs
(527.64)
(1,445.38)
917.74
Total
(391,266.57) (340,097.09)
(51,169.48)
Percent
12.83
1.82
12.91
27.56
(63.49)
15.05
105
Table V.2-24 shows the comparative breakdown of releases made by the Central
and Regional Offices of the DBM to the LGUs.
Table V.2-24
Comparative Breakdown of Subsidy to LGUs as Reported by DBM CO and ROs
(in million pesos)
2011
2010
Increase (Decrease)
CO/RO
Amount
Percent
Amount
Percent
Amount
Percent
Distribution
Distribution
CO
7,055.80
2.22
6,388.93
2.27
666.87
10.44
NCR
19,057.54
6.01
17,424.47
6.19
1,633.07
9.37
I
22,386.06
7.06
17,160.41
6.10
5,225.65
30.45
CAR
9,790.92
3.09
8,404.93
2.99
1,385.99
16.49
II
15,433.58
4.87
13,640.36
4.85
1,793.21
13.15
III
29,165.75
9.19
26,393.40
9.38
2,772.35
10.50
IV-A
33,254.17
10.48
28,859.35
10.25
4,394.82
15.23
IV-B
13,377.38
4.22
11,842.27
4.21
1,535.11
12.96
V
19,234.94
6.06
17,352.10
6.16
1,882.84
10.85
VI
25,895.98
8.16
22,934.81
8.15
2,961.17
12.91
VII
21,065.28
6.64
19,126.95
6.79
1,938.33
10.13
VIII
18,239.51
5.75
16,548.90
5.88
1,690.62
10.22
IX
18,499.73
5.83
16,883.53
6.00
1,616.20
9.57
X
16,437.13
5.18
14,816.85
5.26
1,620.28
10.94
XI
14,388.27
4.54
12,821.52
4.55
1,566.75
12.22
XII
22,778.99
7.18
20,562.03
7.30
2,216.96
10.78
XIII
11,160.21
3.52
10,348.45
3.68
811.76
7.84
TOTAL 317,221.23
100.00
281,509.25
100.00
35,711.98
12.69
The subsidy reported by the Regional Offices IX and XII, includes subsidy for LGUs of ARMM.
Difference between totals and sum of components is due to rounding off.
16,196.70
14,092.08
9,214.26
7,932.22
6,639.80
4,183.36
1,867.51
1,670.33
106
3,500.00
38,420.09
3,506.10
4,403.27
10.14
12,696.69
14,092.08
(29,205.83)
7,932.22
3,133.70
(219.91)
1,867.51
1,660.19
Percent
362.76
(76.02)
89.38
(4.99)
16,370.24
Percent
1,437.36
1,000.00
712.93
685.30
647.03
640.31
542.70
500.00
496.00
460.87
450.00
426.50
423.99
346.07
336.00
315.02
296.10
216.12
195.00
117.00
113.77
1,299.18
163.97
19.20
259.65
294.79
585.00
418.00
281.28
80.00
781.19
297.59
52.20
180.38
20.00
100.00
113.77
138.18
1,000.00
548.96
666.10
387.38
345.52
(42.30)
500.00
78.00
179.59
450.00
346.50
(357.20)
48.48
336.00
262.82
115.72
196.12
95.00
117.00
0.00
10.64
334.79
3,469.27
149.19
117.21
(7.23)
18.66
63.85
433.13
(45.72)
16.29
503.49
64.15
980.62
95.00
0.00
79.69
67.50
65.00
59.00
55.50
49.10
41.61
73.75
22.50
65.00
30.00
30.00
4.04
5.94
45.00
0.00
29.00
55.50
19.10
37.57
37.00
17.50
11.83
8.00
72,646.08
50.00
12.52
1,932.85
57,006.45
(13.00)
17.50
11.83
(4.52)
(1,932.85)
15,639.62
Particulars
National Livelihood Development Corporation
National Home Mortgage Finance Corporation
Philippine National Railways
Philippine Institute for Development Studies
Philippine Childrens Medical Center
Philippine Heart Center
Philippine Coconut Authority
Philippine Fisheries Development Authority
Philippine Rice Research Institute
Philippine Postal Corporation
National Irrigation Administration
National Resources Development Corporation
Bases Conversion Development Authority
National Kidney and Transplant Institute
Technology Livelihood Resource Center
National Dairy Authority
Lung Center of the Philippines
Development Academy of the Philippines
Cultural Center of the Philippines
Laguna Lake Development Authority
Philippine Crop Insurance Corporation
Center for International Trade Expositions and
Missions
Aurora Special Economic Zone Authority
Philippine Convention and Visitors Corporation
Southern Philippines Development Authority
Local Water Utilities Administration
Zamboanga City Special Economic Zone Authority
Peoples Televisions Network Inc.
Philippine Institute of Traditional and Alternative
Health Care
Credit Information Corporation
Development Bank of the Philippines
Cottage Industry Technology Center
Other GOCCs
Total
8.05
200.00
0.00
96.67
63.67
930.35
(26.00)
(36.10)
(100.00)
27.43
Other departments that reported Subsidy to GOCCs are the following: NEDA
P99.51 million, DOLE - P46.22 million, DOH P38.48 million, DOT P10.43
million and OEO P1.52 million.
5.2.2.3 Financial Expenses P282.77 billion
Total Financial Expenses of P282.77 billion for the calendar year declined by
P21.74 billion or 7.14 percent compared to P304.52 billion of the previous year. Of the
aggregate, the DOF accounted for P282.42 billion or 99.88 percent, of which P282.23
billion or 99.93 percent was reported by the BTr GOP in the payment of foreign and
domestic loans and bonds and notes payable.
107
As shown in Table V.2-26, total payments for interest expenses and other financial
charges for our foreign and domestic borrowings shrank by P19.54 billion or 6.67 percent
and P2.98 billion or 70.44 percent, respectively.
Table V.2-26 Comparative Components of Financial Expenses
Amount (in million pesos)
Particulars
Percent
Increase
2011
2010
(Decrease)
Interest Expenses
273,205.27
292,742.50
(19,537.23)
(6.67)
Documentary Stamp
Expenses
7,703.84
7,061.08
642.77
9.10
Other Financial Charges
1,249.30
4,226.70
(2,977.40)
(70.44)
Commitment Fees
332.60
397.93
(65.34)
(16.42)
Bank Charges
280.72
88.39
192.33
217.60
Total
282,771.72
304,516.60
(21,744.88)
(7.14)
Difference between totals and sum of components is due to rounding off.
PS
MOOE
FE
Subsidies
TOTAL
NCR
I
CAR
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
ARMM
FSPs
Total
262,039.88
16,870.01
8,234.15
13,092.83
26,019.91
34,645.89
18,848.69
23,703.13
17,532.46
16,268.86
12,551.72
14,506.63
12,788.24
11,452.96
8,505.92
11,444.17
3,605.55
512,110.99
122,407.44
4,800.31
2,939.79
4,230.37
8,007.59
11,461.33
5,338.31
5,515.65
5,466.50
3,583.50
4,066.59
4,620.73
4,792.10
4,605.97
2,889.41
1,702.67
1,184.43
197,612.68
282,696.68
0.15
0.49
0.08
6.74
7.92
3.55
2.94
0.16
0.83
1.32
0.84
0.21
1.67
1.73
0.38
46.03
282,771.72
97,390.15
22,531.25
10,021.66
15,475.96
29,600.15
47,035.79
19,283.21
26,177.95
21,378.84
18,308.94
18,531.42
16,650.98
14,454.15
23,093.98
11,195.42
136.71
391,266.57
764,534.16
44,201.72
21,196.09
32,799.24
63,634.38
93,150.93
43,473.76
55,399.66
44,377.96
38,162.13
35,151.06
35,779.18
32,034.70
39,154.57
22,592.49
13,283.93
4,836.01
1,383,761.96
108
Percentage
Distribution
55.25
3.19
1.53
2.37
4.60
6.73
3.14
4.00
3.21
2.76
2.54
2.59
2.32
2.83
1.63
0.96
0.35
100.00
109
Compared to the P1.093 trillion in calendar year 2010, this years level
increased by P70.85 billion or 6.48 percent. As the administrator of funds for NGs
subsidies to LGUs, the DBM reported the highest amount of P319.69 billion,
accounting for 27.47 percent of the total. The DepEd, DND and DPWH followed
with P216.19 billion or 18.58 percent, P117.99 billion or 10.14 percent and P106.88
billion or 9.18 percent, respectively.
5.2.3.1.2
As shown in Table V.2-29, this years Subsidy to NGAs reported in the DOFBTr GOP Books is lesser by P26.48 billion or 2.23 percent compared to the previous
years level of P1.187 trillion.
5.2.3.2
From a Net Gain of P49.78 billion in the previous year, a significant Net Loss of
P31.67 billion was reported for the year ended 2011. This was caused mainly by the Net
Loss of P28.47 billion in foreign exchange during the year as compared to the FOREX
Gain of P54.21 billion in 2010. Other contributor is the Loss on Guaranty of P3.16
billion. The account Loss on Guaranty is used for the payment of foreign exchange risk
cover claims for NG guaranteed obligations of GFIs (LBP, DBP and SBGFC). Table V.230 shows the Comparative Details of Gains/(Losses) for calendar years 2011 and 2010.
110
Percent
(152.52)
(30.93)
(36.70)
3.52
82.62
(163.63)
5.2.4
111
Operating
Investing
Financing
Total
Inflows
2,830.31
353.07
1,365.39
4,548.77
Outflows
2,658.91
491.88
1,461.69
4,612.48
171.40
(138.80)
(96.29)
(63.69)
Net Cash Provided by
(Used in)
Difference between totals and sum of components is due to rounding off.
112
The second largest source of cash flows from operating activities totaling
P1.150 trillion are receipt of NCA for regular operations P1.118 trillion, receipt of
NTCA P31.97 billion and receipt of NCA for trust and other receipts P432.75
million. Among the departments/offices, the DBM accounted for the highest receipt
at P319.63 billion or 27.79 percent of the total. Of this amount, P318.10 billion
pertains to DBM administered funds which were allocated as financial subsidies to
LGUs. The receipt of NCA, by department/office is listed in Table V.3-2.
113
114
Amount
5,021.47
4,421.02
3,629.80
2,634.05
1,441.97
1,109.96
17,867.09
36,125.36
115
836,757.69
253,793.67
34,543.36
14,722.65
4,613.13
4,540.81
836,635.49
253,793.67
34,520.65
14,465.25
3,640.23
4,497.22
RA
Books
122.20
22.71
257.40
972.90
43.59
4,528.41
2,371.07
4,528.16
2,339.58
0.25
31.49
1,789.11
1,773.06
1,201.27
608.29
13,708.20
6,441.13
1,172,569.39 1,163,242.73
16.06
592.98
7,267.07
9,326.65
Total
NG Books
Another cash outflow item that took the most part of operating outflow
activities is DOF-BTrs replenishment of negotiated MDS checks amounting
to P1.089 trillion.
The government also deploys a large portion of its cash on payment of
operating expenses at P658.08 billion, which is P152.76 billion or 30.23
percent higher than last years P505.31 billion. Among the
departments/offices, the DepEd incurred the highest disbursement on
operating expenses at P163.62 billion or 24.86 percent of the total. Payment
of operating expenses, by department is shown in Table V.3-7.
116
117
Total
Finance
403,655.02
Energy
2,819.17
Trade and Industry
807.40
Agriculture
212.24
State Universities and Colleges
159.58
Other Executive Offices
100.00
Science and Technology
96.03
Education
86.94
Labor and Employment
30.78
National Economic and
Development Authority
20.00
Health
16.63
Office of the Ombudsman
10.57
Total
408,014.37
Investments in
Investments
Other
Stocks/
in
GOCCs/
Long-Term
Bonds/MarkeGFIs
Investments
table Securities
390,765.97
2,819.17
12,889.05
807.40
212.24
125.84
33.74
100.00
96.03
86.94
30.78
20.00
393,952.63
13,696.46
16.63
10.57
365.28
118
5.3.3 Net Cash Provided by (Used in) Operating, Investing and Financing Activities
(P63.69 billion)
During the year, the net cash used went down to a negative P63.69 billion. This is
due to the heavy use of cash in operating activities which increased by 13.23 percent
and the governments trimming down on loan acquisitions by14.90 percent.
Chart V.3-2 shows the net cash provided by (used in) operations by the NG from
FYs 2002 to 2011. This years net result on operating, investing and financing activities
is the lowest in ten years.
119
90
66.95
63.39
70
42.56
50
29.31
30
27.16
10
-10
9.14
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
-30
(33.28)
-50
(56.89)
-70
(63.69)
120
VI. NATIONAL
GOVERNMENT DEBT
121
c. P.D. No. 139 issued on June 27, 1984 amended R.A. No. 4860, increasing
foreign debt limit to an amount not exceeding US$10 billion or its equivalent
in other foreign currencies at the exchange rate prevailing at the time the
loans, credits or indebtedness are incurred at terms of payment of not less than
ten (10) years except those contracted in the interest of national security and
rehabilitation resulting from natural calamities.
g. P.D. No. 142, approved on March 2, 1973 amending R.A. No. 245 entitled:
An Act Authorizing the Secretary of Finance to Borrow to Meet Public
Expenditures Authorized by Law and for Other Purposes
122
123
Percent
1.28
56.19
(14.25)
(17.61)
(0.40)
5.98
(49.80)
132.71
(186.15)
(7.32)
(33.62)
100.00
100.00
100.00
100.00
5.15
(307.47)
(168.34)
124
Particulars
Domestic
Bonds Payable
Loans Payables
Foreign
Bonds Payable
Loans Payables
1,999,604.54
1,171,071.27
828,533.28
(2,888.11)
(2,888.11)
1,996,716.44
1,171,071.27
825,645.17
Total NG Debt
4,729,825.99
(28,685.31)
4,701,140.68
Domestic
Treasury Bonds
Treasury Bills
Outstanding
as of
12/31/2011
2,860,442.11
2,563,061.59
297,380.52
Foreign
Bonds
Loans
Direct and Relent
Assumed
Total NG Debt
1,996,716.44
1,171,071.27
825,645.17
825,606.98
38.18
4,701,140.68
2,079,965.84
1,214,221.20
865,744.64
865,733.71
10.93
4,940,407.951
Particulars
202,784.84
122,235.05
80,549.79
80,549.79
1,703,789.15
150,837.97
85,277.51
65,560.46
65,545.96
14.50
1,497,690.90
The domestic debt of P2.860 trillion consists of Bonds Payable and Loans
Payable amounting to P2.563 trillion or 89.60 percent and P297.38 billion or
10.40 percent, respectively.
The foreign debt of P2.080 trillion consists of Bonds Payable P1.214
trillion or 58.38 percent and Loans Payable P865.74 billion or 41.62 percent.
125
The bulk of the domestic Bonds Payable consists of Fixed Rate Treasury
BondsP1.047 trillion; Benchmark BondsP990.90 billion; Retail Treasury
BondsP435.84 billion; Treasury Bonds Central Bank-Board of Liquidator (CBBOL) P50.00 billion; Multi-rate Treasury Bonds P21.83 billion and Special
Purpose Treasury Bonds (CARP) P9.82 billion. While the domestic Loans
Payables include the amount pertaining to CB-BOL of P174.57 billion, Treasury
Bills of P120.50 billion, Development Bank of the Philippines (DBP) Assumed
loans of P2.29 billion, Treasury Bills-Certificated of P11.65 million and Treasury
Notes of P5.89 million. The DBP Assumed loans exist by virtue of Proclamation
No. 50 issued in 1986.
The outstanding foreign debt pertains to bonds issued such as US Bonds
P1.129 trillion; Japanese Yen Bonds P57.08 billion and Euro Bonds P28.42
billion. The foreign Loans Payable of P865.74 billion were contracted by the NG
from the following types of creditor: Bilateral P502.83 billion, Multilateral
P357.34 billion and Commercial P5.57 billion.
The balance of NG debt for 2011 posted an increase of P239.27 billion or
5.09 percent from P4.701 trillion in 2010. Shown in Table VI-3 is the comparative
outstanding NG debt for 2010 and 2011.
Table VI-3 Comparative Outstanding NG Debt
(in million pesos)
Increase
Particulars
2011
2010
(Decrease)
Domestic
2,860,442.11
2,704,424.24
156,017.87
Loans Payable
297,380.52
529,723.62
(232,343.10)
Treasury Bills - CB-BOL
174,568.30
174,568.30
Treasury Bills
120,500.50
352,843.60
(232,343.10)
DBP Assumed Loans
2,294.17
2,294.17
Treasury Bills-Certificated
11.65
11.65
Treasury Notes
5.89
5.89
-
126
Percent
5.77
(43.86)
(65.85)
-
2011
2010
Bonds Payable
Fixed Rate Treasury Bonds
Benchmark Bonds
Retail Treasury Bonds
Treasury Bonds - CB-BOL
Multi Currency RTB (OFW)
Zero Coupon Treasury Bonds
Special Purpose Treasury
Bonds (CARP)
Certificated Treasury Bonds
Foreign
Loans Payable
NG Direct/Relent
NG-assumed (Proc. 50)
Bonds Payable
US Bonds
Japanese Yen Bonds
Euro Bonds
Total
2,563,061.59
1,046,527.54
990,896.26
435,844.23
50,000.00
21,830.93
8,131.60
2,174,700.62
867,635.25
872,140.39
292,150.04
50,000.00
21,921.49
54,679.60
Increase
(Decrease)
388,360.97
178,892.30
118,755.87
143,694.19
(90.56)
(46,548.00)
9,815.00
16.03
2,079,965.84
865,744.64
865,733.71
10.93
1,214,221.20
1,128,717.49
57,081.52
28,422.18
4,940,407.95
16,157.62
16.24
1,996,716.43
825,645.16
825,606.98
38.18
1,171,071.27
1,060,807.74
80,949.58
29,313.94
4,701,140.67
(6,342.62)
(0.21)
83,249.41
40,099.48
40,126.74
(27.25)
43,149.93
67,909.75
(23,868.06)
(891.76)
239,267.28
Percent
17.86
20.62
13.62
49.19
(0.41)
(85.13)
(39.25)
(1.29)
4.17
4.86
4.86
(71.38)
3.68
6.40
(29.49)
(3.04)
5.09
127
128
Totals
889,510.50
348,941.70
326,504.78
214,064.02
1,501,004.30
182-364
days
313,968.80
169,568.30
144,400.50
25 years
71,961.70
71,961.70
-
Treasury Bills worth P289.02 billion with maturity period of 1-91 days
correspond to 47.27 percent of the total issuances. While those with maturity period
of 92-181 days of P8.50 billion and 182-364 days of P313.97 billion are equivalent
to 1.39 percent and 51.34 percent of the total issuances, respectively. For the
Treasury Bonds floated, the maturity period are as follows: P461.05 billion or
51.83 percent 4-10 years; P356.50 billion or 40.08 percent 15-20 years and
P71.96 billion or 8.09 percent 25 years.
Repayments/Redemptions P1.347 trillion
Redemptions during the year of P1.347 trillion include Bonds P503.02
billion or 37.35 percent and Treasury Bills and Notes P843.84 billion (including
those for the CB-BOL of P429.57 billion) or 62.65 percent.
Bonds redeemed of P503.02 billion consist of Benchmark Bonds P207.75
billion or 41.30 percent; Fixed Rate Treasury Bonds P170.05 billion or 33.81
percent; Retail Treasury Bonds P70.37 billion or 13.99 percent; Zero Coupon
Bonds P46.55 billion or 9.25 percent; Special Purpose Treasury Bonds (SPTB)
CARP P6.34 billion or 1.26 percent and Agrarian Reform Bonds P1.96 billion
or 0.39 percent.
Foreign Debt
Availments/Issuances P202.78 billion
The availments during the year of P202.78 billion were made through flotation
of bonds amounting to P122.24 billion or 60.28 percent and contracting by the NG
of direct and relent loans of P80.55 billion or 39.72 percent. Table VI-5 shows the
availments made by the NG during the year.
129
122,235.05
65,293.50
54,770.00
2,171.55
80,549.79
55,468.23
Percent
to Total
60.28
32.20
27.01
1.07
39.72
68.86
40,751.79
11,809.28
2,377.75
317.04
212.37
25,081.56
8,681.06
5,332.42
1,563.00
892.16
583.16
73.46
21.29
4.29
0.57
0.38
31.14
34.61
21.26
6.23
3.56
2.33
368.64
247.88
7,413.25
202,784.84
1.47
0.99
29.56
100.00
Amount
Bonds
Philippine Global Bonds
Global Bonds
Global Bond Exchange
Direct/Relent Loans
Cash Availment
International Bank for Reconstruction and
Development
Asian Development Bank
Japan Bank for International Cooperation
International Fund for Agricultural Development
Other Creditors
Constructive Receipts of Cash
Japan Bank for International Cooperation
BNP Paribas
Eximbank of China
Saudi Fund for Development
Eximbank of Korea
International Bank for Reconstruction and
Development
Asian Development Bank
Other Creditors
Total
Difference between totals and sum of components is due to rounding off.
Source: National Government Debt Accounting Division, BTr
The bonds consist of: Global Bonds P54.77 billion or 44.80 percent,
denominated in foreign currency issued to foreign investors; Global Bond Exchange
P2.17 billion or 1.78 percent, which is a bond swap transaction of old bonds to
new bonds; and Philippine Global Bonds P65.29 billion or 53.42 percent, issued
to foreign investors in Philippine currency.
The direct and relent loans contracted by the NG include cash availments of
P55.47 billion while the amount of P25.08 billion was received in kind. Of the
amount of cash availed, IBRD provided P40.75 billion while JBIC and ADB lent
P2.38 billion and P11.81 billion, respectively. For availments received in kind, the
JBIC accounted for P8.68 billion and BNP Paribas shared P5.33 billion.
Repayments/Redemptions P150.84 billion
Repayments for direct, relent and assumed loans reached P65.56 billion. Table
VI-6 shows the creditors where repayments were made.
130
Creditor
JBIC
ADB
IBRD
JEXIM
Deutsche Bank
BNP Paribas
Other Creditors
Total
Total
29,549.04
12,047.20
6,090.74
5,015.45
4,700.70
1,700.29
6,457.06
65,560.47
Of the amount paid, P29.55 billion or 45.07 percent went to JBIC, a bilateral
creditor. The ADB and IBRD, both multilateral creditors accounted for P12.05
billion or 18.38 percent and P6.09 billion or 9.29 percent, respectively. For the
assumed loans, the amount of P14.50 million was paid.
Payments made for matured pre-terminated Global Bonds reached P85.28
billion.
6.5 NG Debt Growth
For the ten year period, 2002 to 2011, NG debt has grown by an average of
P214.19 billion or 6.01 percent as shown in Table VI-7. The biggest growth of P503.02
billion or 17.97 percent was in 2003. From 2004 to 2006, NG debt is at decreasing level
and in 2007 a negative amount of P99.39 billion or 2.56 percent was noted. This was
brought about by the decrease in foreign debt of P145.48 billion or 8.52 percent which
was partially offset by an increase in domestic debt of P46.09 billion or 2.12 percent. In
2008, NG debt grew by P356.52 billion or 9.43 percent and since then, the increases
and decreases in amount were noted.
NG
Year
Amount
Annual
Growth
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2,798.50
3,301.52
3,699.81
3,878.70
3,880.87
3,781.48
4,138.00
4,348.08
4,701.14
4,940.41
503.02
398.29
178.89
2.17
(99.39)
356.52
210.08
353.06
239.27
Ave.
3,946.85
214.19
2,233.58
132.85
131
6.58
1,713.28
Foreign
294.97
136.05
(2.50)
13.02
(145.48)
134.44
170.15
129.47
83.25
Annual
Growth
Rate
23.29
8.71
(0.15)
0.77
(8.52)
8.60
10.03
6.93
4.17
81.34
5.38
Annual
Growth
Domestic debt grew by an average of P132.85 billion or 6.58 percent. The biggest
growth was in 2004 with P262.24 billion or 15.07 percent. On the other hand, the
average growth of foreign debt is P81.34 billion or 5.38 percent, with the highest
growth of P294.97 billion or 23.29 percent seen in 2003. Chart VI-4 shows the growth
of domestic and foreign debt from 2002-2011.
The
amount paid
for
servicing domestic and foreign
debt totaled P1.780 trillion
consisting of Principal Repayment
P1.498 trillion or 84.14 percent;
Interest P272.89 billion or 15.33
percent and financial charges
P9.33 billion or 0.52 percent. Chart
VI-5 shows the composition of
debt service expenditure for 2011.
132
133
Percent
(8.06)
(9.22)
(1.49)
(32.35)
(5.82)
3.57
(74.14)
(6.68)
Interest for foreign loans of P102.94 billion showed a decrease of P9.03 billion
compared to the previous years amount of P111.97 billion. Payments made for Direct
and Relent foreign loans amounting to P16.59 billion also showed a decrease of P0.25
billion or 1.49 percent. On the other hand, interest paid for Global Bonds flotation
reached P86.35 billion.
Payments made on Interest for domestic debt of P169.95 billion went down by
P10.51 billion or 5.82 percent.
Financial expenses paid for foreign debt of P2.04 billion decreased by P3.94
billion or 65.86 percent compared to last years amount of P5.98 billion. Commitment
fees paid by the NG for the undrawn foreign loans decreased during the year.
Documentary Stamp Tax related to the issuance of global bonds also decreased. The
Other Financial charges of P1.05 billion include the capitalized service charge of
P11.55 million imposed by JBIC; front-end fee of P144.41 million paid to IBRD and
the amount related to the issuance of foreign currency denominated bonds of P891.30
million.
134
The financial expenses of P7.29 billion incurred for domestic debt transactions
increased by P1.57 billion or 27.41 percent. Payment for documentary stamp tax of
P7.09 billion increased by P1.52 billion or 27.17 percent while other financial charges
of P200.11 million increased by P53.51 million or 36.5 percent. No bank charges
related to domestic debt transactions was reported for the year.
135
Department
PS
Unprogrammed Fund
Unallocated
DSWD
DAR
DA
Total
29.15
Appropriations
MOOE
CO
455.19 10,351.47
149.11 10,289.38
300.00
59.64
6.08
2.45
Total
10,806.66
10,438.49
300.00
59.64
8.53
7,404.06
55,964.57
48,531.36
136
6.7.2
Particulars
Principal
Interest
Documentary Stamps Tax
Loss on Guaranty
Other Financial Charges
Commitment Fess
Bank Charges
Total
The appropriation for servicing domestic debt and foreign debt amounted to
P467.75 billion or 65.15 percent and P250.22 billion or 34.85 percent,
respectively. Of the appropriated amount, P444.20 billion or 61.87 percent was
intended for principal repayment; P261.80 billion or 36.46 percent was for interest
and the balance of P11.97 billion or 1.67 percent was for documentary stamps tax,
foreign exchange risk cover, commitment fees, bank charges and other financial
charges.
The released allotments of P717.97 billion is lesser than the amount of debt
service expenditures recorded at the BTr of P1.783 trillion. The following are the
explanations given by the BTr on the discrepancies of P 1.065 trillion between the
Special Allotment Release Order (SARO) releases and actual debt service
expenditures:
137
BTr FS
Difference
1,497,690.90
1,346,852.93
(1,053,494.79)
(1,047,563.16)
144,906.34
150,837.97
(5,931.63)
266,068.29
277,682.75
(11,614.46)
261,804.01
272,894.74
(11,090.73)
Bank Charges
Other Financial Charges
52.99
748.54
52.99
1,247.37
(498.83)
Commitment Fees
305.99
330.89
(24.90)
Loss on Guaranty
3,156.76
3,156.76
__7,702.46
717,966.87
7,702.46
1,783,076.12
_ __
(1,065,109.25)
Particulars
Principal Payment
Domestic
Foreign
138
Explanations
7.1 Introduction
The General Appropriations Act (GAA) includes general and specific provisions
on Special Account in the General Fund (SAGF) intended for various specific purposes
which are sourced from grants and donations, collections of specific fees, charges,
premiums, among others. Exempted from these are donations for specific purposes with
a term not exceeding one (1) year and which shall be treated as trust receipts pursuant to
Section 12 of R.A. 10147, the 2011 GAA.
7.1.1 Legal Basis/Purpose
Presidential Decree No. 1234 dated November 8, 1977 provides that the
establishment of Special and Fiduciary Funds has been authorized from time to
time in order to facilitate the funding of priority activities of Government
including those undertaken by GOCCs. This decree contains the following
provisions quoted as follows:
Section 1. All income and collections for Special or Fiduciary Funds
authorized by law shall be remitted to the Treasury and treated as SAGF xxx
corporations.
Section 2. The amounts collected and accruing to Special or Fiduciary Funds
shall be considered as being automatically appropriated for the purposes
authorized by law creating the said Funds, except as may be otherwise
provided in the General Appropriations decree.
Section 3. The amounts collected under Special or Fiduciary Funds shall be
released to the implementing agencies subject to the approval of the President
and to Special Budget under Section 40 of P.D. No. 1177: PROVIDED, That
funds needed for regular operations or other duly authorized purposes may be
automatically released under such conditions as may be approved by the
President.
Section 4. The funds once released shall be administered by the government
agency or corporations concerned and shall be utilized only for the purposes
authorized in the law creating the said Special or Fiduciary Funds.
7.1.2 Existing Accounting Procedures
The New Government Accounting System (NGAS) adopts the one fund
concept and provides that separate accounting shall be done only when
specifically required by law or by a donor agency or when otherwise necessitated
by circumstances subject to prior approval of the Commission.
PD No. 1234 authorized the creation of the SAGF, thus, departments and
agencies maintain separate books of accounts for these funds. However, upon
implementation of the NGAS, some departments/agencies integrated the SAGF
139
transactions with the General Fund 101. The list of departments/agencies with
SAGF is presented in Annex A of Volume I-B of this Report.
Income of government agencies which was constituted as SAGF was
remitted to the National Treasury and disbursed by means of separate MDS check
series and subject to the issuance of SAROs and NCAs by DBM, except those
authorized to maintain bank accounts with government depository banks and/or
exempted from the provisions of Executive Order No. 338.
7.2 Financial Data
The financial data contained in this report were derived from the consolidation
of the balances of the accounts reflected in 72 SAGF/Special Fund trial balances as of
December 31, 2011, which were submitted by 19 departments/agencies, while the
budgetary data were based on the consolidated statement of appropriations, allotments
and obligations prepared by this Sector. The data also includes income accruing to
SAGF which were collected by various NGAs and remitted to the National Treasury.
However, balances of accounts pertaining to CARP Fund 158 were excluded as these
are presented in a separate chapter of this report. Likewise, those accounts pertaining to
the receipt and utilization of the SAGF, for which no books of accounts were separately
maintained, were excluded but were instead integrated in the respective agencys
consolidated trial balances.
7.2.1 Appropriations, Allotments and Obligations
For the calendar year 2011, the total appropriations for SAGF, net of
CARP, totalled P37.13 billion, of which P37.12 billion was released, leaving a
balance of P0.01 billion. The total obligations incurred amounted to P13.36 billion
as shown in Table VII-1 below.
Table VII-1 Appropriations, Allotments and Obligations
Special Account in the General Fund (Net of CARP)
(in million pesos)
Department
Appropriations
National Defense
Public Works and Highways
Finance
Other Executive Offices
Energy
Education
Agriculture
Interior and Local Government
Environment and Natural Resources
Transportation and Communications
Justice
Budget and Management
Labor and Employment
140
14,445.46
8,839.61
7,911.15
1,219.28
894.95
750.94
634.27
568.52
522.29
450.38
370.34
235.39
98.78
Allotments
14,445.46
8,839.61
7,911.15
1,219.28
894.95
750.94
634.27
568.52
505.84
450.38
370.34
235.39
98.78
Obligations
660.61
2,399.54
7,743.13
376.78
310.67
152.86
375.30
142.21
123.46
349.05
306.55
206.89
91.94
Department
Appropriations
Health
Office of the President
National Economic Development
Authority
Social Welfare and Development
Trade and Industry
Tourism
Science and Technology
Totals
Allotments
Obligations
44.81
41.24
44.81
41.24
41.08
35.94
40.67
23.75
22.71
15.00
4.61
37,134.15
40.67
23.75
22.71
15.00
4.61
37,117.71
14.63
8.18
3.48
15.00
4.46
13,361.76
80,000.00
73.54
70,000.00
DPWH2.77
DOE3.72
60,000.00
OEO8.23
50,000.00
DND19.95
57.10
DOE3.72
OEO3.72
DND18.94
40,000.00
30,000.00
20,000.00
DOF33.70
16.44
DOE9.66
10,000.00
OEO4.51
(10,000.00)
DOF33.37
DOE5.94
TotalAssets
Total
Liabilities
141
TotalEquity
PRRC
DOST
OP
DSWD
NEDA
DOT
DTI
DENR
DOTC
DOLE
JUDICIARY
DILG
DOJ
DA
DPWH
DOE
OEO
DND
The Department of Energy had the biggest SAGF liabilities with P9.66
billion, 96 percent of which are Due to National Treasury consisting of
revenue/receivables of the government for its share or royalties from
service/operating contracts and other fees, and interest earned from bank deposits.
Aside from the DOE, the OEO, DND, DOF, and DPWH have the biggest SAGF
liabilities amounting to P4.51 billion, P1.01 billion, P 0.32 billion and P 0.26
billion, respectively.
The departments with the biggest share in SAGF equity are the DOF-P33.37
billion, DND-P18.94 billion, OEO-P3.72 billion, DPWH-P2.49 billion and DAP1.43 billion. However, the DOE posted a negative equity which was mainly due
to the prior years adjustment relative to the loss on sale of the subrogated banked
gas under Service Contract No. 38 Malampaya Natural Gas Project amounting
to P13.82 billion; and direct payments relative to World Bank and ADB Foreign
Assisted Projects awaiting NCAA from the DBM.
7.2.3 Income and Expenses
For the calendar year 2011, the aggregate income recorded accruing to
SAGF amounted to P49.86 billion consisting of Service Income-P39.52 billion,
Motor Vehicle Users Charge-P10.10 billion, Permits and Licenses-P16.65,
Business Income P0.17 million and Other Income P218.42 million. The top five
departments with substantial income constituted as SAGF are the DOE, DPWH,
DND, DOF and OEO with P20.07, P9.26, P7.62, P5.60 and P2.44 billion,
respectively. Income from Malampaya exploration and motor vehicles users
charges are the main sources of income of DOE and DPWH, respectively. Shown
in Chart No. VII-2, below is the composition of the total SAGF income, net of
CARP.
Chart VII-2 - Income by Department
Special Account in the General Fund (Net of CARP)
(in billion pesos)
OEO2.44
DND7.62
DOTC1.64
DOF 5.60
DOH 0.04
DOJ1.10
DILG0.85
DSWD0.45
DPWH9.26
OP 0.04
DENR 0.15
DA0.32
NEDA
0.01
DOLE 0.24
Other0.49
DOE20.07
142
DOT 0.01
The total SAGF income does not include the net Gain on Foreign
Exchange and Sale of Disposed Assets amounting to P50.61 million and income
of various agencies which are still for deposit to the National Treasury.
Based on the certified income remitted to the National Treasury, the
departments/agencies request for allotments and NCAs to enable them to utilize
the fund for the intended purpose/s of SAGF.
As shown in Table VII-3 below, the Department of Finance has the
biggest expenses, the bulk of which pertain to subsidies to the National Power
Corporation, National Electrification Administration and Cultural Center of the
Philippines amounting to P6.62 billion, P814.41 million and P5.0 million,
respectively. Of the total expenses of the DPWH, 94 percent or P3.78 billion are
repairs and maintenance of the Roads and Bridges as accounted by the Road
Board.
Table VII-3 Expenses by Department/Office
Special Account in the General Fund (Net of CARP)
(in million pesos)
Total
PS
MOOE
Department
Finance
7,695.15
7,695.00
Public Works and Highways
4,023.51
27.72
3,995.77
Other Executive Offices
897.87
16.22
881.64
National Defense
664.67
0.07
664.55
Justice
377.70
65.33
312.37
Transportation and Communications
350.84 213.69
137.15
Energy
228.84
228.84
Trade and Industry
209.92
0.86
209.06
Judiciary
155.61
155.61
Environment and Natural Resources
120.86
120.82
Agriculture
118.03
5.04
112.80
Labor and Employment
76.47
76.13
Office of the President
75.03
3.95
71.08
Interior and Local Government
66.74
66.73
Social Welfare and Development
31.51
31.51
National Economic and Development
Authority
6.89
6.89
Science and Technology
4.63
4.63
Tourism
2.70
2.70
Pasig River Rehabilitation Commission
0.02
0.02
Totals
15,107.00 332.89 14,773.30
Difference between totals and sum of components is due to rounding off.
143
FE
0.15
0.02
0.01
0.04
0.03
0.19
0.34
0.01
0.01
0.81
VIII. COMPREHENSIVE
AGRARIAN REFORM
PROGRAM
CO
150.00
150.00
145
Appropriations
Allotments
Obligations
8,629.33
3,966.11
702.64
293.03
109.69
74.90
29.38
13,805.08
8,032.76
3,966.11
702.64
280.18
109.69
74.90
29.38
13,195.66
5,956.11
3,966.11
589.87
251.70
101.51
72.35
22.55
10,960.20
DAR
DOF-LBP
DENR
DA-NIA
DOJ-LRA
DTI
DPWH
Total
Unobligated
Balance
Unreleased
Appropriations
2076.65
112.77
28.48
8.18
2.55
6.83
2,235.46
596.57
12.85
-
31.89
609.42
Of the total allotments of P13.20 billion and obligations of P10.96 billion, the
DAR reported 60.87 percent or P8.03 billion and 54.34 percent or P5.96 billion,
respectively. As in last year, the DOF-LBP ranked second with both allotments and
obligations of P3.97 billion which was fully obligated due to the release of subsidy to
LBP to cover payment of LBP bonds issued to the farmers.
8.5 Financial Highlights
8.5.1 Balance Sheet
The total Assets of the CARP as of December 31, 2011, reached P93.48 billion
comprising of Current Assets of P24.87 billion and Non-Current Assets of P68.61
billion as shown in Table VIII-3. Of the total Current Assets, P14.18 billion or 57.02
percent consists of Receivables, the bulk of which pertains to Accounts Receivables
(Net) P6.77 billion, Due from GOCCs P3.12 billion and Due from Local
Government Units - P1.25 billion.
The Non-Current Assets of P68.61 billion, on the other hand, composed mainly
of Property, Plant and Equipment (PPE) P66.38 billion and Investments P2.08
billion. The total PPE comprised primarily of Land and Land Improvements of P62.30
billion, the bulk of which was reported by DOF-LBP P45.15 billion and PCGG
P16.02 billion.
Table VIII-3 Balance Sheet
(in million pesos)
17,295.46
137.50
137.50
-
DOF LBP
64,446.63
18,963.32
7,788.41
11,162.69
12.21
-
93,483.20
24,868.28
10,341.12
14,179.86
293.93
46.81
0.01
6.56
1,852.30
-
3.80
-
17,157.96
1,068.72
45,483.32
326.08
68,614.92
2,075.36
1,852.28
3.58
16,089.24
45,157.24
66,376.80
Particulars
DAR
DA-NIA
DENR
DOJLRA
DPWH
DTI
DOJ PCGG
Total Assets
Current Assets
Cash
Receivables
Inventories
Prepayments
Other Current
Assets
NonCurrent
Assets
Investments
Property, Plant
and Equipment
6,572.84
4,774.45
2,253.68
2,444.21
68.68
2.12
2,871.19
752.07
263.29
411.48
49.97
27.34
270.97
88.42
22.70
27.66
22.70
14.56
20.14
2.67
0.85
0.36
1.46
-
1,976.04
123.75
10.08
110.99
0.39
2.28
29.91
26.11
2.09
22.49
1.01
0.51
5.76
0.79
1,798.39
568.92
2,119.12
111.64
182.55
-
17.48
-
1,204.80
1,879.38
176.15
14.12
146
Total
Particulars
Other Assets
Total Liabilities
Current
Liabilities
Long-Term
Liabilities
Deferred Credits
Equity
Total Liabilities
and Equity
DOF LBP
DOJ PCGG
DA-NIA
DENR
DOJLRA
24.66
960.31
128.10
623.62
6.40
113.99
3.36
9.23
0.02
32.02
0.22
3.71
20,917.82
22,660.72
956.07
623.62
113.99
9.23
32.02
3.71
10,921.22
12,659.86
0.12
4.13
7,793.28
2,203.32
5,612.52
2,247.57
156.98
10.91
1,944.03
26.20
17,295.46
43,528.80
7,793.40
2,207.45
70,822.48
6,572.84
2,871.19
270.97
20.14
1,976.04
29.91
17,295.46
64,446.63
93,483.20
DAR
DPWH
DTI
Total
162.76
147
Net
Subsidy
6,935.50
238.72
572.58
101.91
81.62
72.03
8,002.37
Income
Total
11.13
0.05
0.38
.02
166.28
177.86
6,946.63
238.77
572.96
101.91
81.62
72.05
166.28
8,180.22
Expenses
5,002.41
88.92
512.60
104.05
4.03
69.45
2.03
2,225.80
8,009.29
Net Income/
(Loss)
1,944.22
149.85
60.36
(2.13)
77.59
2.60
(2.03)
(2,059.52)
170.93
148
Accomplishments
34,656
111,889
14,880
7,488
11,095
44,544
3,033
4,046
19,006
56,338
57,136
225,401
1,488
3,756
13,368
14,787
20,805
Program/Project/Activity
No. of hectares
2.4 Resolved/disposed conflicts/disputes under mediation/
conciliation process
2.5 Resolved agrarian cases under the adjudication process
C. Program Beneficiary Development
1. Confirmation of Agrarian Reform Communities (ARCs) and Strategic ARCs
1.1 Number of ARCs
1.2 Number of SARBs
2. Trained ARBs on various courses in LTI, Support to Social Infrastructure and
Local Capability Building
3. Provided interventions to organization and its members enabling them to
operate and manage their farm, non-farm and off-farm enterprises
3.1 No. of organizations
3.2 No. of members
4. Provided complementary support services to ARCs
5. Facilitated preparation of agribusiness plans for agribusiness development
5.1 No. of plans
5.2 No. of hectares
6. Developed products and services and launched in commercial markets
6.1 No. of products developed
6.2 No. products launched
7. Facilitated signing of marketing contracts between agribusiness firms and
farmers organizations
7.1 No. of marketing contracts
7.2 Amount of sales generated (in million pesos)
8. Provided credit and microfinance assistance
8.1 No. of ARBs assisted
8.2 Amount of credit and microfinance assistance (in billion pesos)
9. Generated jobs for ARBs from physical infrastructure projects both FAPs and
ARF
9.1 No. of jobs from agri-business enterprises
9.2 No. of jobs from micro, small and medium enterprises
9.3 No. of jobs from development of new lands
10. Facilitated the completion of physical infrastructure projects
10.1 Irrigation systems - 172 with service area in hectares
10.2 Farm-to-market roads - 810 with length in kilometers
10.3 Pre and post-harvest facilities - 72 projects in units
10.4 Bridges - 82 with length in linear meters
10.5 Multi-purpose pavements - 128 with area in square meters
11. Facilitated the provision of the following basic social service facilities
11.1 Potable water supply systems
11.2 Classrooms constructed and rehabilitated
11.3 Health centers constructed and rehabilitated
11.4 Power supply projects completed
12. Enrolled ARBs/ARB Households in Philhealth and other care providers
13. Implemented capital and technical assistance projects
13.1 No. of projects
13.2 Total Investments (in billion pesos)
14. Established Womens Desk and implemented projects for women
14.1 No. of womens desk
14.2 No. of women served by the womens desk
149
Accomplishments
49,717
40,650
19,006
26
10
147,765
6,430
849,005
53,032
387
44,913
571
291
1,053
P652
843
P1.316
23,098
20,353
10,620
55,136
3,836
643
1,271
45,679
1,579
227
205
55
138,816
62
P79.166
1,150
27,983
Program/Project/Activity
14.3 No. of projects implemented
14.4 No. of women served by the project
15. Established Landowners Desk
15.1 No. of landowners desk
15.2 No. of landowners served
16. Granted Programang Agraryo Iskolar to deserving dependents of ARBs
16.1 No. of enrollees
D. Support to Operations
1. Engaged and attended the following summits:
1.1 National Summit on Poverty, Inequality and Social Reform organized by
the Catholic Bishops Conference of the Philippines (CBCP)
1.2 National Secretariat for Social Change (NASSA)
1.3 Climate Change Congress of the Philippines (CCCP)
2. Conducted in-house study titled Revisiting the Implementation of the
Agribusiness Venture Arrangements (AVAs) between the ARBs and the
Investors
3. Completed Commissioned Research Study: An Analysis of the Process of the
Design and Implementation of the 2009ARB Profiling under the ARB
Carding and Identification (ID) System
4. Issued Memorandum Circulars for the smooth implementation of the CARP:
4.1 Joint DAR-DENR-LRA-NCIP Memorandum Circular No. 1, Series of
2011 Creation of Joint Task Force which shall determine Policy
Direction in Order to Address Jurisdictional and Operational Issues
between DAR, DENR, LRA and NCIP over Agricultural, Public and/or
Ancestral Lands
4.2 Memorandum Circular No. 2, Series of 2011 Revised Rate of Fees and
Charges
4.3 Joint DAR-LBP Memorandum Circular No. 3, Series of 2011 Microfinance Capacity Development Program in Agrarian Reform Areas
4.4 Memorandum Circular No. 4, Series of 2011 Implementing Guidelines
to Access Funds, Implement and Monitor Projects under the DARPBD Partnership-Support Fund
4.5 Joint DAR-DENR-LRA-NCIP Memorandum Circular No. 5, Series of
2011- Extension of Time for the DAR-DENR-LRA-NCIP Task Force
to Formulate the Joint Administrative Order on Addressing Conflict
Jurisdiction
4.6 Memorandum Circular No. 6, Series of 2011 Clarificatory Guidelines
on the Implementation of the Land Acquisition and Distribution
Phasing Under R.A. No. 9700
4.7 Memorandum Circular No. 7, Series of 2011 Adopting and
Implementing the Right to Information with Respect to Quasi-Judicial
and Disciplinary Functions of the DAR and Providing Guidelines
Therefor
4.8 Memorandum Circular No. 8, Series of 2011 Revised Guidelines and
Procedures in the Delisting of ARCs, ARC Barangays and
Organizations
4.9 Memorandum Circular No. 9, Series of 2011 Creation of Task Force
Problematic Lands Addressing Land Acquisition and Distribution
(LAD) Concerns and Related Issues on CARP Implementation
150
Accomplishments
1,098
28,085
86
4,414
3,448
3
16
Program/Project/Activity
4.10 Memorandum Circular No. 10, Series of 2011 Transforming the
Agribusiness Entrepreneurship Development Program (AREDP) Office
to National ARCCESS Program Coordinating Office (NAPCO) and
Installing ARCCESS Implementing Structure at All Levels
4.11 Memorandum Circular No. 11, Series of 2011 Suspension of Certain
Provisions of Administrative Order No. 6, Series of 2011 for the
Purpose of Transitioning from the Old Cancellation Rules to the New
One
4.12 Memorandum Circular No. 12, Series of 2011 Case Control Number
System on Cancellation of Cases
4.13 Memorandum Circular No. 13, Series of 2011 Interim Guidelines
Governing the Integration of ARCs Monitoring and Tracking System
(ARCMTS) and ARC Level of Development Assessment (ALDA) in
the DARs Planning, Monitoring and Evaluation (PME) System
during the Transition Period
4.14 Memorandum Circular No. 14, Series of 2011 Operating Guidelines
on the Grant of National Government Assistance to LGUs (NGALGU)
for Rural Infrastructure Development under the ARC Project II
(ARCPII)
4.15 Memorandum Circular No. 15, Series of 2011 Prohibition Against
Signing Agrarian Related Contracts
4.16 Memorandum Circular No. 16, Series of 2011 Amending
Memorandum Circular No. 12, Series of 2011 Titled Case Control
Number System for Cancellation of Cases
5. Issued Administrative Orders:
5.1 Administrative Order No. 1, Series of 2011 Guidelines Governing
Gender Equality in the Implementation of Agrarian Reform Laws and
Mainstreaming Gender and Development in the DAR
5.2 Administrative Order No. 2, Series of 2011 Rules on the Conversion of
Agricultural Lands for Government Housing Projects Intended for
Armed Forces of the Philippines and Philippine National Police
Personnel Pursuant to Office of the President Administrative Order No.
9, Series of 2011
5.3 Administrative Order No. 3, Series of 2011 Revised Rules and
Regulations Implementing Section 19 of R.A. No. 9700 (Jurisdiction and
Referral Cases that are Agrarian in Nature)
5.4 Administrative Order No. 4, Series of 2011 Amendment to
Administrative Order No. 2, Series of 2009 on the Installation of ARB
with Registered Certificate Landownership Award (CLOA)
5.5 Administrative Order No. 5, Series of 2011 2011 Rules on the
Administration of Oaths in Pursuance of Section 50 of R.A. No. 6657 as
Amended
5.6 Administrative Order No. 6, Series of 2011 The 2011 Revised Rules
and Procedures Governing the Cancellation of Emancipation Patents
and Certificates of Landownership Awards (CLOAs) and Other Titles
Issued Under Any Agrarian Reform Program
5.7 Administrative Order No. 7, Series of 2011 Revised Rules and
Procedures Governing the Acquisition and Distribution of Agricultural
Lands under R.A. No. 6657 as Amended
5.8 Administrative Order No. 8, Series of 2011 Rules for the Coverage of
CAR-Covered Lands Subject to Unauthorized Transfers or Conveyances
151
Accomplishments
Accomplishments
Program/Project/Activity
5.9 Administrative Order No. 9, Series of 2011 Rules for the Survey and/or
Field Investigation of Landholdings Where the DAR and Land Bank of
the Philippines are Denied Entry Thereto
6. Served walk-in Clients by the Public Assistance and Complaints Coordinating
Unit (PACCU)
7. Facilitated the resolution of cases by the Quick Response Operation Units
7.1 No. of urgent cases
7.2 No. of flashpoints
7,727
95
14
8.6.2 DTI
Program/Project/Activity
Target
152
Accomplishments
Percent
P826.32
P1,564.18
45,828
1,620
908
130
P1,070.87
P2,146.12
56,137
1,617
794
188
130
137
122
99.8
87
145
680
10,399
48
341
P40.56
1,123
18,154
130
153
P55.99
165
175
271
45
138
2,003
49,175
133
605
P924.84
1,696
54,699
492
714
P1,440.94
85
111
370
118
156
573
12,747
104
491
774
15,893
226
304
135
125
217
62
620
10,297
125
487
742
14,320
158
195
120
139
126
40
265
5,617
69
229
283
6,821
67
129
107
121
97
56
Program/Project/Activity
368
11,385
233
270
Accomplishments
495
30,996
192
155
97
1,300
19
110
113
1,587
27
55
116
122
142
50
2,193
40,130
133
519
P470.75
2,854
54,485
1,219
350
P551.19
130
136
917
67
117
31
593
13
54
P3.42
24
383
11
23
P2.70
77
65
85
43
79
341
26,658
71
497
P67.63
529
336,689
310
363
P95.98
155
1,263
437
73
142
297
13,973
53
348
431
17,413
1,087
153
145
125
2,051
44
327
565
549
344
12,679
132
364
498
1,014
1,000
858
13,959
338
159
152
179
182
249
110
256
44
213
31,658
222
404
135
170
52,733
228
315
113
80
167
103
78
84
101
87
86
Target
153
Percent
135
272
82
57
8.6.3 DOLE
Program/Project /Activity
Self-Reliant Organizations for CARP (SRO-CARP)
Accomplishments
No. of
No. of
Trainings
Participants
1. Organizational Development
1.1 Trainings Conducted
46
1,522
1.1.1 Region VI
18
597
1.1.2 Region X
5
200
1.1.3 Region XI
13
419
1.1.4 Region XIII
10
306
Trainings and seminars include, capability building on organizational development and
management, enterprise/project and financial management and specific skills trainings such as
abaca, nito, coconut midribs weaving, organic farming technologies, food lot technology, dried fish
processing, etc.
2. Livelihood and Enterprise Development
Name of Cooperative
Region
Project
2.1 San Rafael ARC MPC, Murcia,
VI
a. Bio-Intensive Gardening
Negros Occidental
b. Organic Red Rice Production Demo
Farm
c. Sugarcane Production
2.2 Bulanon Farmers ARB Cooperative,
VI
a. Basic Commodity and Agri-Inputs
Sagay City
Store
b. Food Lot Module Technology Demo
Farm
c. Dried Fish Processing/ Production
and Iron Works
2.3 Umagos-Banglay ARC, Lagonglong,
X
a. Banana Production and Trading
Misamis Oriental
b. Abaca, Nito, Coconut Mid-ribs and
Romblon Weaving Projects
2.4 Bread Muti-purpose Coop, Barangay
XI
a. Coconut Wine and Coco-Vinegar
Darong, Sta. Cruz, Davao del Sur
Production
b. Vermi- composing
c. Backyard
organic
vegetable
gardening
2.5 JORIFA and Sibulan Upland Farmers
XI
a. Abaca Production
Association
b. Native/Black Coffee Production
2.6 PASCOFBEC, Las Nieves, Agusan
XIII
a. Consumers Store
del Norte
b. Coconut Trading
c. Coco-Rehab and Fertilizer
Distribution
d. Post Harvest Facility
e. Coco-Charcoal Production
Source: DOLE SRO-CARP CY 2011 Accomplishment Report
8.6.4 LRA
Program/Project/Activity
I. Registration and Titling
1. Emancipation Patent (EP)
1.1 Number of Titles
1.2 Number of Areas (has.)
154
Target
Accomplishments
Percent
3,886
3,695
3,850
3,681
99
99.6
Program/Project/Activity
Target
Accomplishments
Percent
30,497
84,188
94
98
64,682
37,286
100
71,212
88
36,775
Accomplishments
No. of Titles
No. of Hectares
2,345
653
217
79
9,958.33
3,019.66
720.45
596.09
54
54
1,446.96
3,454.81
165
40
20,950
795
676
541
2,308
4,269
95,518
118,130
4,711
28,751.85
704.38
11,221
49,377
8.6.5 NIA
Particulars
A. Engineering Activities
1. No. of Projects
2. Area Accomplished (in has.)
3. Generated
4. Restored
5. No. of FBs Benefited
1st Qtr.
9
655
71
584
1,642
2
155
Accomplishments
2nd Qtr. 3rd Qtr. 4th Qtr.
Total
3
225
7
589
9
562
28
2,031
0
225
492
485
104
539
136
426
270
692
1,339
2,943
15
26
Particulars
1.2 IA Strengthening
1.3 IA Members Organization
1.4 IA Members Strengthening
2. IA Development
2.1 No. of Batches
2.2 No. of Participants
3. Staff Development Training
3.1 No. of Batches
3.2 No. of Participants
1st Qtr.
200
-
Accomplishments
2nd Qtr. 3rd Qtr. 4th Qtr.
55
21
110
1,153
386
9,559
2,767
Total
76
1,849
12,326
10
205
4
111
3
126
18
577
36
1,019
6
82
8
177
12
316
14
372
40
947
8.6.6 DENR
Particulars
1. Inspection, Verification and
Approval of Survey
1.1 No. of surveys
1.2 Areas covered (has.)
2. Public Land Survey (has.)
3. Patent Processing and Issuance
3.1 No. of Patents
3.2 Areas covered (has.)
1st Qtr.
Accomplishments
2nd Qtr. 3rd Qtr. 4th Qtr.
Total
11,213
18,809
5,124
11,033
24,650
5,918
17,485
21,588
20,409
23,812
45,338
30,965
63,543
110,385
62,416
6,971
4,821
25,524
18,989
23,583
19,549
59,553
48,787
115,631
92,146
8.6.7 LBP
Program Type
PD27/
EO 228
Beginning Inventory
No. of Claims
Area (Has.)
Recipients from DAR
No. of Claims
Area (Has.)
Total Claims on Hand
No. of Claims
Area (Has.)
Returns to DAR
No. of Claims
Area (Has.)
Excluded Portion
Area (Has.)
Suspended ARMM Claims
No. of Claims
Area (Has.)
Net Processable Claims
No. of Claims
Area (Has.)
Approved for Payment with COD
No. of Claims
Area (Has.)
156
Accomplishments
RA 6657/
EO 229
Total
20
241.50
5,541
82,426.25
5,561
82,667.75
446
1,202.23
1,484
16,754.93
1,930
17,957.16
466
1,443.73
7,025
99,181.18
7,491
100,624.91
22
189.67
1,184
13,128.50
1,206
13,318.17
17
73
90
7
113.64
4,345
68,573.89
4,352
68,687.53
437
1,123.24
1,496
17,405.76
1,933
18,529.00
429
930.53
1,124
12,883.30
1,153
13,813.83
Program Type
Accomplishments
RA 6657/
EO 229
109
639
PD27/
EO 228
No. of LOs
No. of FBs
Land Value (P Mn)
Ending Inventory
No. of Claims
Area (Has.)
Total
749
1,068
72.20
9,603
1,260.55
10,671
1,332.75
8
192.71
372
4,522.46
380
4,715.17
8.6.8 DPWH
No. of
Projects
Particulars
Roads
Construction
Improvement/Rehabilitation
Multipurpose Pavement/ Concreting
Small Water Impounding Projects
Completed
Pre-Construction Activities
Total
1,727
2,272
1,344
8
5,350
1
5,351
Length
(in kms.)
Cost
(in million pesos)
2,987.43
5,036.25
268.41
0.00
8,292.09
0.00
8,292.09
157
2,424.17
2,715.57
504.66
15.58
5,658.99
1.00
5,659.99
Overview
Pursuant to Section 2, Article IX-D of the Philippine Constitution, the
Commission on Audit regularly conducts audit of accounts of all NGAs. The audit is
conducted in accordance with the generally accepted state auditing standards and the
results are communicated and discussed in the Annual Audit Reports (AARs) and in
the Management Letters (MLs) submitted to the audited agency, the Office of the
President, the Congress and other stakeholders.
9.2
Audit Opinions
The AAR sets forth the audit opinion regarding the entitys financial
statements. The auditors opinion, depending on the result of the audit, reflects only
one of the following opinions:
9.2.1. Unqualified Opinion. It states that the financial statements present fairly,
in all material respects, the financial position, results of operations and
cash flows of the audited agency in conformity with generally accepted
accounting principles (GAAP). This is equivalent to a Clean Opinion.
9.2.2. Qualified Opinion. It states that the financial statements present fairly
the entitys financial position, results of operations and cash flows in
conformity with the GAAP except for the matter of qualifications.
Normally, qualified opinions are issued when there are: (1)limitations on the
scope of the auditors examination on one or more areas of the financial
statements, and although they could not be verified, the rest of the financial
statements were audited and complied with GAAP or (2) single
deviation/departure from GAAP exists.
9.2.3. Adverse Opinion. When issuing this opinion, the Auditor concludes that
the financial statements do not present fairly the audited agencys
financial position, results of operations and cash flows in conformity
with the generally accepted state accounting principles. This type of
opinion is issued when the financial statements contain very material
departures from GAAP.
9.2.4
158
The audit opinions excluded audited agencies with AARs not yet transmitted as
of 31 August 2012 and/or only management letters were issued. Presented in the
graph below is the Summary of Audit Opinions for CY 2011.
160
140
120
100
Unqualified
80
Qualified
Adverse
60
Disclaimer
40
20
0
2011
159
are
the following
160
161
162
9.4.1.13 Remit to the National Treasury all existing balances of trust receipts
and all collections from whatever source not allowed to be used by the
agency, in compliance to Executive Order No. 338 dated May 17,
1996, COA-DBM-DOF Joint Circular No. 9-81 dated October 19,
1981 and COA-DBM-DOF Joint Circular No. 1-97 dated January 2,
1997. In the case of Revenue District Offices of the Bureau of
Internal Revenue, they should monitor compliance of their Collecting
Officers on remitting their collections intact and regularly as
required under Section 21, Volume II of the MNGAS for National
Government Agencies (NGAs).
9.4.1.14 Return to the source agency the unused funds for the completed
projects, pursuant to COA Circular No. 94-013 dated December 13,
1994 as agreed in the Memorandum of Agreement (MOA).
9.4.2 Receivables
9 4.2.1 Cash advances to Officers and Employees of 208 audited agencies for travel,
special time bound undertakings and other activities totaling P1.44 billion
were not
liquidated within the specified
period and remained
unliquidated
due to
the non-implementation of
the prescribed
controls on the granting and liquidation of cash advances.
9.4.2.2 Funds transferred by 131 NGAs to other NGAs, Local Government Units
(LGUs), Government - Owned and Controlled Corporations (GOCCs)
and
Non-Governmental Organizations (NGOs)/ Peoples Organizations
(POs) for the implementation of projects with an aggregate amount of
P19.30 billion, remained unliquidated for several years due to the
following deficiencies:
a. Failure of the source agencies to monitor transferred funds and to enforce
submission of liquidation reports after completion of the project;
b. Failure of the implementing/recipient agencies to regularly submit
liquidation reports and refund unused balances to the source agencies after
completion of the projects; and
c. Lack of` periodic reconciliation of accounting records between the source
agencies and implementing agencies.
9.4.2.1 Dormant receivables were reported in 70 NGAs amounting to P2.33 billion
primarily due to insufficient or lack of supporting documents leading to a
remote possibility of its collection.
9.4.2.2 Unrecorded receivables of 11 NGAs amounting to P118.92 million resulted to
an understatement of the agencies receivable accounts balances.
9.4.2.3 Two audited agencies failed to recoup their advances to contractors totaling
P1.46 million which is disadvantageous to the government.
163
Recommendations
9.4.2.3 To ensure collection of receivables and liquidation of cash advances, the
following measures are recommended:
a. Prepare and maintain a complete and up-to-date subsidiary records
and aging schedule that are reconciled with General Ledger balances.
b. Adhere strictly to pertinent regulations on the granting, utilization
and liquidation of cash advances which include, among others:
164
b. Strictly implement the provisions of COA Circular Nos. 94-013, 96003 and 2007-001 and the provisions of the MOA by requiring the
implementing agency to immediately submit the required liquidation
reports and refund any unutilized balances including interest, if any;
and
c. Refrain
from
granting
additional
fund
releases
to
NGAs/LGUs/GOCCs/ NGOs/POs with unliquidated balances to
prevent accumulation of amounts.
9.4.3 Inventories
9.4.3.1
9.4.3.2
9.4.3.3
9.4.3.4
9.4.3.5
165
9.4.3.6
9.4.3.7
Recommendations
9.4.3.8
9.4.3.9
9.4.3.10 Require the Supply Officer to submit regularly the Report of Supplies
and Materials Issued (RSMI) and other required inventory reports to
the Accounting Unit to support the recording of consumption/
issuances of supplies and materials or mortality in case of livestock.
Likewise, prepare the necessary adjustment to record expenses,
unrecorded deliveries and various accounting errors.
9.4.3.11 Oblige the Supply Officer and other concerned personnel to adhere
strictly to the established rules and regulations prescribed in Section
65, Volume II of the MNGAS relative to the conduct of physical count
of inventory items and maintain updated inventory records in
accordance with Section 41, Volume II of the MNGAS.
9.4.3.12 Require the Accountant to maintain the Supplies Ledger Card (SLC)
in accordance with Sections 12, Volume II of the MNGAS, undertake
regular reconciliation of the SLC with the GL and prepare the
necessary adjustments.
9.4.3.13 Adhere to the provisions of Administrative Order No. 17 to use
the Procurement Service (PS) in the procurement activities of the
NGAs to achieve transparency, efficiency and economy in the
procurement process.
Comply with Section 53(e) of the Implementing Rules and
Regulations of Republic Act No. 9184 which provides that agencys
procurement of commonly used goods shall be through the DBM Procurement Service.
9.4.3.14 Record all purchases of supplies and materials following the perpetual
inventory record and maintain supplies ledger cards for each item in
accordance to Section 43 of MNGAS, Volume I.
166
9.4.4.2
9.4.4.3
9.4.4.4
9.4.4.5
9.4.4.6
9.4.4.7
167
Recommendations
9.4.4.8
9.4.4.9
9.4.4.10 Conduct a complete physical inventory of all assets at least once a year
pursuant to Section 490, Vol. I of the GAAM and prepare the Report
of the Physical Count of PPE (RPCPPE). Any discrepancies between
physical count and inventories per books must be analyzed,
investigated and a corresponding course of action be taken up
immediately.
9.4.4.11 Require the Accountant to prepare and maintain Property, Plant and
Equipment Ledger Card (PPELC) and reconcile it with the property
records/inventory reports on a regular basis. He/She shall ensure that
the PPELC is always reconciled with the GL to comply with Sec. 43,
paragraphs 3 and 4 of MNGAS, Volume 1 and Section 490 (a and b) of
GAAM, Volume 1.
9.4.4.12 The Accountant should ensure that Depreciation Expenses for all PPE
accounts are recorded at the end of each month. Further, a review of
the PPELC should be done to correct errors posted in the estimated
useful life of the asset to coincide with the prescribed estimated useful
life under COA Circular No. 2003-007. Record the recommended
audit adjustments to correct accumulated depreciation as of December
31, 2010.
9.4.4.13 Require the Management to insure all its insurable physical assets with
the General Insurance Fund of the Government Service Insurance
System (GSIS) in accordance with Section 5 of R. A. No. 656 and
Administrative Order No. 141 dated August 12, 1994 to protect its
interests in case of fortuitous events.
9.4.4.14 Require the Management to undertake various remedial actions to
ensure optimum utilization of the idle/unutilized PPE and ensure
proper maintenance of these assets to avoid wastage of government
resources.
168
9.4.5 Liabilities
9.4.5.1
9.4.5.2
9.4.5.3
9.4.5.4
Recommendations
To establish the validity and accuracy of current years balances and to present a
more reliable figure of payables in the succeeding years financial statements,
the following procedures are recommended:
9.4.5.5
9.4.5.6
9.4.5.7
9.4.5.8
Maintain and update SLs for each payable account to support their
existence and validate accuracy of records. Amounts that have no
breakdown, not supported with complete documentation and not
reconciled with SLs cast further doubt on the reliability of the account
balances.
9.4.5.9
Adhere to the detailed procedures in the COA Cir. 97-001 dated Feb.
5, 1997 for dormant accounts.
9.4.5.10 Comply with laws, rules and regulations governing prompt and regular
remittance of salary deductions for taxes and contributions to BIR,
GSIS, PAG-IBIG and other authorized agencies.
169
9.4.6 Revenues
9.4.6.1
9.4.6.2
9.4.6.3
Recommendations
9.4.6.4
9.4.6.5
9.4.6.6
9.4.7 Expenses
9.4.7.1
170
used
for
171
b. The Special Trust Fund (STF) was used to the Program on Awards and
Incentives for Service Excellence (PRAISE) Incentive contrary to
Commission on Audit (COA) Circular No. 2000-002, Section 4(d) of RA
No. 8292 and RA No. 6758 as well as Civil Service Commission (CSC)
Resolution No. 010112, resulting in audit disallowance by Northwest
Samar State University amounting to P4.96 million.
9.4.7.4
Recommendations
To preclude incurrence of unauthorized/illegal/excessive expenditures and the
misuse of government funds including erroneous recording thereof, we recommend the
following:
9.4.7.2 Require the agency heads to explain in writing and submit legal basis that
would justify the granting of Collective Negotiation Agreement (CNA),
incentives, representation allowance and transportation allowance (RATA),
additional bonuses and other allowances, otherwise the amount should be
refunded. Henceforth, management should strictly adhere to the provisions of
Administrative Order No. 135 dated December 27, 2005, DBM Budget
Circular No. 2006-001dated February 1, 2006, Presidential Decree No. 1597,
Section 4 of Presidential Decree No. 1445 and other issuances relevant to said
transactions.
9.4.7.3 Direct the Budget Officers to exercise due diligence and proper control over
the disposition of government funds and remind them of the personal liability
of the persons responsible for the incurrence of overdrafts as provided under
Section 41, Book VI of the Revised Administrative Code of 1987, Section 47
of Presidential Decree No. 1177, Section 20 of Republic Act No. 992, and
other related issuances.
9.4.7.4 Ensure that overspending of allocated funds is avoided through realistic
planning/programming; otherwise realignment should be properly made, if
warranted. Make representations with the Department of Budget and
Management (DBM) for the issuance of the Special Allotment Release Order
(SARO), for authorized overdrafts, to adjust the same.
172
9.4.7.5 Secure the operational efficiency of agencys assets in order to attain the
desired goals/outputs of each program or project.
9.4.7.6 Stop the payment of professional fees/honoraria/incentives to officers and
employees involved in regular activities which are in line with their officially
mandated functions. Determination of individual liability shall be done upon
receipt of Notice of Disallowance, without prejudice to the provisions of
Section 7 of Department of Budget and Management (DBM) Circular No.
2007-01 on the responsibility and personal liability of agency heads. Require
the refund of the amounts illegally received.
9.4.7.7 Ensure that funds are used in accordance with the purpose for which these are
intended. To avert misuse of funds, install policies and controls on the proper
use of funds; prepare a program of expenditures or a Work and Financial Plan
and require submission of audited Statement of Utilization or report on the
completion of the project or trip with accompanying details of transaction.
9.4.7.8 Analyze the transactions resulting to understatements and overstatements of
expenditures and prepare the correcting entries. PPE and inventories should
be recorded using the appropriate asset accounts. Depreciation should be
computed using the Straight Line Method.
9.4.7.9 Direct the Accountant to adhere strictly to the provisions of Section 4 (6) of
Presidential Decree No. 1445, the Omnibus Rules Implementing Book V of
E.O. No. 292 and other Civil Service Laws, Executive Order No. 298 dated
March 23, 2004, Department of Budget and Management Circular No. 2006001 dated February 1, 2006, Department of Budget and Management Circular
No. 2010-3, and other directives, requiring completeness of supporting
documents to claims before payments.
9.4.8 Compliance
Submission of reports/documents
9.4.8.1 Yearend/monthly reports, disbursements vouchers (DVs) and supporting
documents (SDs) and other reports of 12 agencies were submitted beyond the
reglementary period as required under Section 7.2.1(a) of Commission on
Audit (COA) Circular No. 2009-006 dated September 15, 2009, causing delay
in the analysis and review of the accounts and delay in informing
management of the deficiencies noted therein;
9.4.8.2 Copies of the contracts with supporting documents of nine agencies/campuses
were not submitted to the COA Auditor within the prescribed period as
required under COA Circular No. 96-010 dated August 15, 1996;
9.4.8.3 Disbursement vouchers amounting to P40.96 million of 30 agencies were
paid
even
without
complete
supporting
documents
and/or
approval/certifications by proper officials contrary to the provisions of Section
4 of Presidential Decree No. 1445.
173
Recommendations
9.4.8.4
9.4.8.5
9.4.8.6
Procurement
9.4.8.7
174
Recommendations
9.4.8.8
Require the Bids and Award Committee (BAC), BAC Secretariat and
Technical Working Group to establish criteria/standards for the
establishment of the baseline prices as ABC of items offered for public
bidding; and
9.4.8.9
175
176
RECOMMENDATIONS
AUDIT OBSERVATIONS
settled, which is an indication of lapses
in
the
enforcement
of
existing
operational procedures to collect/settle
such matured bonds. Of this amount,
P718,901,439.50
refers
to
2011
transactions.
177
RECOMMENDATIONS
AUDIT OBSERVATIONS
P254,395,327.23 pertain to CYs 2000 to
2011 transactions, while the
rest
representing 79 percent were outstanding
accounts of 1999 and prior years.
According to the Chief of Bonds
Division, the 79 percent accounts are no
longer moving and suggested to be
recommended for write-off.
(2) Eight hundred seventy containers
for transshipment, with an estimated
duties and taxes of S7,352,627.51 and
P341,752,699.90, respectively were not
confirmed as received by the Port of
Batangas. While out of the 222
manually processed transhipments, 162
container vans were also not confirmed
as received by the Port of Batangas.
This indicated failure on the part
of concerned MICP officials and
employees to implement the proper
procedures and security measures on
transhipment instituted by the Bureau
of
Customs such
as the applicable
provision of the TCCP, CMO Nos.
14-2011,
9-2011 and 43-2010, that
have resulted in the loss of revenue in
the form of uncollected customs duties
million
and taxes of at least P342
for
transhipments processed under the
e2m alone and an undetermined amount for
the a62 container vans manually processed.
178
RECOMMENDATIONS
AUDIT OBSERVATIONS
should
P11,008,634.00
collected by the MICP.
have
been
(2) There
were
unaccounted/missing
jewelry, watches and Philippine currency,
and other held baggage receipt (HBR) with
some articles of undetermined amount.
The HBRs are high value goods that are
supposed to have been transferred from the
In-Bond Section to the Vault of Collection
Division. Out of the 15 HBR
forfeited/seized, only six were inventoried
and nine are unaccounted/missing.
179
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.4 Department of Energy (DOE)
(1) Based on the list provided by the LTO
and LTFRB, out of the estimated 220,000
Public Transport Assistance
Program
(PTAP)
beneficiaries, only 156,514
PTAP cards or 71.1 percent were
generated/printed; out of the printed
PTAP cards, only
90,259 or 57.67
percent were loaded with cash value of
P1,050 each, as of December 31, 2011, due
to lack of verified and validated final list of
beneficiaries, disinterest and reluctance of
some driver beneficiaries to stop plying
their routes just to claim the cards and
their inability to produce the required
documents.
180
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.5 Philippine Air Force (PAF)
Out of the total P12.3 billion cash
allocation received by the Philippine Air
Force from the Department of Budget
and Management (DBM) and from the
AFP General Headquarters (GHQ) for
the year 2011, only P10.7 billion was
utilized due to
the delay in the
downloading of projects to procurement
centers and in the conduct of bidding and
procurement activities
thus,
P1.6
billion or 13.17 percent intended for
various programs/ activities was reverted
back to the National Treasury.
Appropriation
in
the
amount
of
P7,000,000.00 released under Agency
Budget Matrix No. BMB 11-005015 dated
February 3, 2011 for the project
Rehabilitation of STII Building (electrical
and cable system) was not utilized due to
failure to implement the project during the
year.
181
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.8 Metro Manila Development
Authority (MMDA)
The agency, in line with its sanitation
program, procured between 2003 and
2009 a total of 1,040 units of male urinals
costing P26.25 million of which only 477
units were installed but were not also
properly maintained. The balance of 563
units costing P12.18 million remained
uninstalled and improperly stored, some
of which are already dilapidated, being
exposed to the elements, thereby, defeating
the objective of the program and resulting
in wastage of government funds.
Mobilization
fee
amounting
to
P10,522,582.00 paid to ITP Construction,
Inc. for a project that was not implemented
has not been collected from the contractor
and remained outstanding for over eight
(8) years resulting in loss/wastage of
government resources.
182
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.10 Department of Social Works and
Development (DSWD) -OSEC
The total Over-the Counter disbursements/
liquidations recorded in the books for the
Pantawid Pamilyang Pilipino Program
(4Ps) amounted to P14,486,750,011.28, out
of which only P10,716,588,449.28 were
properly documented and verified, leaving
P3,770,161,562.00 as unaccounted balance,
thus affecting the reliability of the ending
balances of the Cash in Bank -LCCA for
various 4Ps account.
The P169,430,596.88 rentals for the UPAyala Techno Hub property could not be
verified due to lack of supporting
documents,
including
the
unsettled
technical and auditorial issues raised
previously on the P4.2 billion 25-year lease
contract entered into by the University of
the Philippines and the Ayala Land, Inc.
(ALI) delaying further the complete
determination
of
the
accuracy,
reasonableness and validity of the said
project.
9.5.12 Tondo Medical Center (TMC)
183
AUDIT OBSERVATIONS
RECOMMENDATIONS
184
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.15 Department of Labor and
Employment (DOLE) OSEC
(a) In 2011, prospective employers of 13
POLOs were erroneously charged with
verification fees in the total amount of
P20,419,688.04 due to the use of fixed
arbitrary rates which were neither the spot
rate or collection rate, as periodically
determined by the DFA in computing for
the local currency equivalent of the US$10
verification
fee
pursuant
to
DOLE/DFA/DBM/DOF/
COA
Joint
Circular No. 3-99 dated September 28,
1999. (b) The recorded collections in the
books of the DOLE-OSEC were
understated by P20,711,535.12 as the same
arbitrary fixed rate of exchange was used in
computing for the United States dollar
(US$) equivalent of the total local currency
collection, or the fixed rate of US$10 per
document verified.
185
AUDIT OBSERVATIONS
9.5.16 Department of Labor
Employment (DOLE) OSEC
RECOMMENDATIONS
and
186
AUDIT OBSERVATIONS
RECOMMENDATIONS
187
RECOMMENDATIONS
AUDIT OBSERVATIONS
188
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.19 Technical Education & Skills
Development Authority (TESDA)-Main
Advance payments to the Procurement
Services
(PS)
amounting
to
P19,391,647.01 as of December 31, 2011
remained outstanding for six years now due
to the failure of the said agency to deliver
the goods intended for the operations of the
three foreign assisted projects which were
already completed in 2006 and 2009. In
effect, the opportunity to maximize the
utilization of the said amount during the
projects implementation became futile.
189
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.21 Department of Public Works and
Highways (DPWH) -OSEC
Significant delays in the implementation of
foreign-assisted infrastructure projects
funded by Official Development Assistance
(ODA) adversely affected the timely
utilization of the loan proceeds for the
purpose, thus resulted in the payment by the
government of commitment fees amounting
to P46,673,689.12 for Calendar Year 2011
and deprived the public of the benefits that
could have been derived from their
immediate and maximum use.
190
AUDIT OBSERVATIONS
RECOMMENDATIONS
Government Equity; and make proper
disclosure in the Notes to FS the disputed
accounts receivable from the MRT DevCo
so as not to mislead the readers of the
financial statements.
RECOMMENDATIONS
AUDIT OBSERVATIONS
.
192
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.26
Bureau of Soils and Water
Management (BSWM)
A total of 166 units of Shallow Tube Wells
(STWs) amounting to P12,939,700.00
have not been fully utilized to provide
irrigation
needed to intensify
rice
production areas affected by the El Nio
phenomenon because they remained
undistributed to farmer-beneficiaries as of
December 31, 2011.
(b)
Ten
ferry
stations
costing
P180,871,959.43 constructed at Pasig
River funded out of Asian Development
Bank loan remained idle after the Pasig
River Ferry Service ceased its operation
since January 16, 2011
thus, the
government is paying a foreign loan for a
project whose main objective of
decongesting road traffic was not attained.
193
AUDIT OBSERVATIONS
RECOMMENDATIONS
Region 1
9.5.29 Don Mariano Marcos Memorial
State University (DMMMSU)
DMMMSU Pig Extension Research Farm
(DPERF) still posted a net loss of P5.37M
from its operation, thereby giving doubt to
its continued operation without budgetary
support from the National Government. For
the past nine years (2003-2011), DPERF
incurred a total net loss of P46,236,234.50
with annual net loss ranging from
P305,790.24 to P11,108,705.51. Further,
loan payable of P18M to National
Livelihood Support Fund (NLSF) had
incurred accumulated Interest Payables and
Penalties amounting to P47.7M and
P46.6M, respectively.
Region 2
9.5.30 Department of Agriculture (DA)
(a) Of the P463 million Malampaya Fund
received in CY 2008-2019, P74,817,784.91
was used for other purposes like projects
and allowances of employees.
194
AUDIT OBSERVATIONS
RECOMMENDATIONS
Region 5
9.5.31 Philippine National Police (PRO 5)
a. Strict compliance with COA Circular No.
94-013 dated December 13, 1994 and the
guidelines of PNP Memorandum Circular
No. 2011-002, dated January 17, 2011 to
ensure compliance to the said guidelines on
the transfer and utilization of PCSO-STL
Funds by PNP PRO 5.
Various
guidelines/
procedures/
responsibilities on the accounting and
preparation/submission of Program of
Expenditures (POE) and reports on the
receipt and utilization of PCSO Funds
remitted to PNP PRO5 for CY 2011
totaling P10,123,399.41 were not strictly
complied/adopted by
RHQ/PPOs/PS
pursuant to PNP Memorandum Circular
Nos. 2011-002
and 2011-004 dated
January 17, 2011 and February 10,2011,
respectively; hence, funds received/utilized
were
not
properly
recorded
and
disbursement vouchers together with the
supporting documents were not submitted
to the auditor. This hampered the timeliness
of audit/review of the STL transactions and
validation whether the funds received were
used for the intended purpose and in
accordance with the approved POE.
195
AUDIT OBSERVATIONS
RECOMMENDATIONS
c. Require the Accountant to prepare and
submit the Report of Collections and
Disbursements
together
with
the
Disbursement Vouchers (DVs) and the
authenticated copy of deposit slips monthly,
pursuant to VI.A.4 of Memo Circular No.
2011-002, and also submit the DVs and
supporting documents for the expenses
incurred for the month of December 2011
on the PCSO-STL funds received by the
PNP PRO 5;
d.
Prepare
regularly
the
Bank
Reconciliation Statements for the PCSOSTL Fund under LBP CA No. 01321063-98 pursuant to the aforecited Memo
Circular; and
e. Require the submission of the
documents/DVs for the receipt and
utilization of the PCSO-STL funds for the
period January to June 2011 and for
the month of July 2011, if there was any.
REGION 6
9.5.32 Department of Interior and Local
Government (DILG)
The amount invested by the government in
its Emergency Network Philippines Project
(ENP) amounting to P100,138,592.69,
especially the DILG Patrol, is not
commensurate with the benefits so far
obtained.
9.5.33 Department
Technology (DOST)
of
Science
and
196
AUDIT OBSERVATIONS
RECOMMENDATIONS
197
RECOMMENDATIONS
AUDIT OBSERVATIONS
JO Builders bid was not disqualified even
if the bid security presented was a company
check which is not a valid bid security
under Section 27.2 of the said IRR.
Therefore, the contract entered into by the
University with JO Builders cannot be
considered valid under RA 9184.
(b) The advance payment to the contractor
in the amount of P6,870,000.00 for the
construction of the 5-storey Technology
Building with roof deck was not supported
with an irrevocable standby letter of credit
of equivalent value from a commercial
bank nor a surety bond callable upon
demand which is a violation of Section 4.2,
Annex of the Revised IRR of RA No.
9184. Hence the University is not secured
in case of default by the contractor.
198
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.38 Department of Public Works and
Highways (DPWH)- 3rd ED
Failure of management to thoroughly
review the detailed engineering, surveys,
designs and condition of the site on the
Rehabilitation of Progreso Cambaol
Cayacay - Napo Road with a contract cost
of P31,850,129.00 resulted in the delay in
the implementation of the project.
9.5.39 Provincial
Office (PARO)
Agrarian
Reform
Stop the practice of utilizing the Agrarian
Reform Form/CARP Fund for regular
maintenance and operating expenses for
which appropriations are provided under
the General Fund, and instead use the same
in accordance with Executive Order No.
229 dated July 22, 1987. Furthermore,
make representations with DAR Central
Office for them to provide appropriations
for regular maintenance and operating
expenses under the General Fund (Fund
101).
Region 8
9.5.40
Department
(Southern Leyte)
of
Education
199
RECOMMENDATIONS
AUDIT OBSERVATIONS
conditions, thus, thwarting the program of
government to address the shortage of
school buildings in the province.
of
Labor
and
200
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.44 Department of Public Works and
Highways (DPWH) 1st DEO
The absence of an Annual Procurement
Plan/Program for the regular repair and
maintenance of national roads and bridges
and making as basis the amount of Agency
Budget Matrix (ABM)/Special Allotment
Release Orders (SAROs) in the Monthly
Cash Program (MCP) submitted to DBM
instead of the
actual
due and
demandable obligations, resulted in the
lapsing/reversion of unutilized and excess
Notice of Cash Allocation (NCA)/Notice of
Transfer of Allocation (NTA) in an
aggregate amount of P148,855,753.41, and
may open the possibility for the agency to
utilize the excess amount for purposes other
than the intended ones.
Region 11
9.5.45 Department of Public Works and
Highways (DPWH) RO XI
(a) The agency could have made use of the
steel bollards, blinking lights and tower
lights, amounting to P2,922,275.00,
P302,032.00 and P514,976.00, respectively
or totaling P3,739,283.00, had the turnover
of the items been required of the contractor
after the conduct of inventory upon
completion of the current project, thus,
making possible the generation of savings
from incoming projects.
201
AUDIT OBSERVATIONS
RECOMMENDATIONS
9.5.48 DPWH-Davao
Engineering Office
City
District
Establish property ownership by the
government
before
implementing
infrastructure projects; see to it that releases
of funds are spent for public purposes.
202
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.49 Provincial Environment and
Natural Resources Office (PENRO),
Davao del Sur
The swapping of the office building
between Provincial Environment and
Natural Resources Office (PENRO)
located at Mabini Superhighway, Barangay
Aplaya and City Environment and Natural
Rresources Office (CENRO) located in
Barangay Matti, all in Digos City through a
regional directive had grossly undermined
the purpose and intent of PD No. 740 dated
Nov. 26, 2004. Furthermore, it caused the
agency to incur capital investment for the
repair and rehabilitation of office building
in the amount of P2,371,965.84 on a lot not
owned by the agency in violation of
existing laws, rules and regulations.
Region 12
9.5.50 Commission on Higher Education
(CHED), RO XII
Strengthen the monitoring system of the
scholarship programs; require the Higher
Education Institutions to comply strictly
with applicable guidelines on scholarship
programs set by the Commission on Higher
Education (CHED); and incorporate in the
Memorandum of Agreements of the CHED
Regional Offices and in the CHED
policy/guidelines the related provisions of
COA Circular Nos. 94-013 and 2007-001
including sanctions for non-compliance to
ensure the efficient and effective
implementation of the program.
Deficiencies
in the Memorandum of
Agreement of CHED Regional Office 12
with Higher Education Institutions (HEIs)
and poor monitoring
of the Student
Assistance Fund for Education (SAFE)
loan/scholarship and Student Financial
Assistance Program (STUFAP) program
implementation
resulted in the nonsubmission of reports/ status of fund
utilization which serves as liquidation
reports on transferred funds to various
HEIs,
thus,
receivables
totaling
P41,729,000.00 remain unliquidated in the
books.
203
RECOMMENDATIONS
AUDIT OBSERVATIONS
9.5.51 Department of Environment and
Natural Resources (RO 12)
Peoples Organizations (POs) contracted to
produce seedlings procured from outside
sources, defeating the purpose of the
National Greening Program (NGP) and
depriving them of immediate employment
and income that could have been derived
from said activities.
204