8/12/2019 03-PPC2010 Notes to FS

1/15

PHILIPPINE POSTAL CORPORATIONNOTES TO FINANCIAL STATEMENTS

1. AGENCY PROFILE

By virtue of Republic Act (RA) No. 7354, otherwise known s the !"ostl#ervices Act of $%%&', the then "ostl #ervices ce ws converte* into +overnent-owne* n* controlle* corportion known s the "hilippine"ostl orportion ("").

"hilippine "ostl orportion or "hilpost *evelops, prootes n* opertes ntionwi*e postl syste with network to ny settleents in the"hilippines n* roun* the worl* to sustin the postl re/uireents of the0ilipinos in the &$stcentury.

At present, it hs $4 re+ionl oces n* opertes totl of &,155 postoces ntionwi*e. 2otl npower copleent which re *istribute* in

the entrl ce, Ntionl pitl Re+ion n* Re+ionl ces totle*$$,3$7.

2. FINANCIAL/OPERATIONAL HIGHLIGHTS

. oprtive 0inncil "osition

"rticulrs 2010&11%

As restte*

ncrese

(ecrese)

Assets 6,571,157,795

4,74,%5,3%6

$,&&,$7&,3%%

ibilities4,927,940,75

84,41$,56,$

75&6,37&,57$

8/uity 1,643,217,037

347,4$7,&1% $,&%5,7%%,&

. oprtive Results of pertions

"rticulrs 2010 &11% ncrese (ecrese)

pertin+ revenue 3,191,073,593

3,&13,3%,43

($&,3&4,45)

pertin+ e9penses 3,418,006,663

3,546,357,1$

($&,351,4$)

oss fro opertions (226,933,070

(34&,%5,643) $$6,1&5,573

0innce cost (34,738,670 (36,%63,&3) &,&&4,6$30orei+n e9chn+e (loss):+in (4,388,831 $,6&,743 (6,17$,574)

Net loss (266,060,571

(37,&3%,$3) $$&,$7,6$&

III. 0or the ;nncil yer en*in+ eceber 3$, &1$1, the orportion+enerte* totl revenue of "3.$% billion, *ecrese of 1.3%< fro

8

8/12/2019 03-PPC2010 Notes to FS

2/15

their &11% revenue of "3.&1 billion. 2he *ecrese ws substntillybrou+ht bout by the *ecrese in il volue, thereby *ecresin+revenue fro postl fees.

2he orportion=s >or source of revenue is post+e fees whichconstitute 6%< in &1$1 n* 6< in &11% of the totl revenue. 2hereinin+ 3$< in &1$1 n* 3&< in &11% re *istribute* s follows?

2010 &11%

Re+ulr:0orei+n "ostl 0ees 16! $%**consists of?

2010 &11%2rnsporttion n* *elivery 552,456,372 56&,&74,43%eprecition 52,088,374 54,55,&5@soline, oil n* lubricnts 47,478,926 41,51,435

2rvelin+ e9penses 44,968,887 4%,$4%,36i+ht n* wter 60,101,538 51,516,4%1#upplies n* terils 44,871,275 3,%6$,$3%thers 104,686,729 $11,1&,166

906,652,101 %6,61,&31

23. A#THORI?E% CAPITAL STOC@

2he orportion hs n uthorie* cpitl stock of "$1 billion "esos("$1,111,111,111) *ivi*e* into 45 illion lss !A' shres to besubscribe* by the @overnent n* 55 illion lss !B' shres to besubscribe* by privte entities with pr vlue of "$11.

24. APPRAISAL CAPITAL

Apprisl cpitl represents the ccuultive ount of pprislincreses s *eterine* by in*epen*ent pprisers who were hire* tocon*uct pprisl of ""=s ;9e* ssets. Apprisl increse is the ountby which the pprise* vlue e9cee*s the book vlue of ;9e* ssets n* is**e* to the crryin+ vlue of ;9e* ssets. 2he lst pprisl ws

18

8/12/2019 03-PPC2010 Notes to FS

12/15

con*ucte* in &11% n* &1$1 for selecte* lots only n* recor*e* t theirnew pprise* vlues, *etils s follows?

A2N 0 2#

A""RA#AR8"R2

#epteber ,

$%%4

R8A""RA#A&11%:&1$1

R8A""RA#8EAD8

ncrese(ecrese)

NR

BR Ro*, Hueon ity " $4$,1&1,111

"634,5%1,111 "

4%3,571,111

F8, "sy ity -

$,115,731,111

$,115,731,111

Re+ionl ces33,17$,411

$1,%7,5&1

75,%17,$&1

Apprisl ncrese " $74,1%$,411

" $,74%,&%,5&1

" $,575,&17,$&1

25. PRIOR PERIO% A%#STMENTS

2his consists of the followin+?

#ubstntil increse *ue to*>ustent of reciproclccounts

"$,&74,41%,&&4

Blnce of prior perio* *>ustents $&,$%7,$$2otl "

$,&6,617,135

26. A%#STMENTS TO THE &ALANCE SHEET FOR FAIR PRESENTATIONOF FINANCIAL POSITION

2he "" hs booke*up certin ccount blnces clle* !b* ccounts'which hve been presente* seprtely in its consoli*te* tril blncen* which coul* not be substntite*. A si+ni;cnt portion of theseccount blnces were lre*y booke* :in the ccounts of the "ostl#ervice ce ("#), the precursor of the "hilippine "ostl orportion(""). Dpon its incorportion in $%%&, "" continue* usin+ the "#books of ccounts. As result, these ccount blnces inclu*in+unreconcile* ounts, ie. *iCerence between the +enerl le*+er blncen* the totl of the sche*ule of subsi*iry le*+ers, were crrie* over tothe "" books of ccounts. n April $%%6, ;re broke out t the entrlce which copletely *estroye* the ccountin+ recor*s. "" set up

the +enerl le*+er ccount blnces of the entrl ce s of Inury $,$%%5 bse* on copy of the L $%%4 Annul Au*it Report of theoission on Au*it. n the other hn*, "" set up the subsi*iryle*+er blnces bse* on the *ocuents such s bnk stteentsreceive* fro outsi*e sources.

n **ition, these ccount blnces woul* hve been the result, on+others, of the followin+?

19

8/12/2019 03-PPC2010 Notes to FS

13/15

$. Non-recor*in+ by Re+ionl ces of *eposits *e by collectin+ocers.

&. Non-recor*in+ by Re+ionl ces of sweepin+s of *eposits to theentrl ce.

3. Recor*in+ of collections fro Accounts Receivble nterntionlAccounts to the peso ccount inste* of to the *ollr ccount.

4. Recor*in+ of collections to Accounts Receivble - nterntionlAccounts inste* of to Accounts Receivble nterntionl Foneyr*er Accounts.

5. Non recor*in+ by the entrl ce of issunces of post+e stpsto the Re+ionl ces.

6. Recor*in+ of receipts by the Re+ionl ces of post+estps:postl oney or*er fors t fce vlue inste* of t printin+

cost.

7. Non-recor*in+ of supplies use*.

. "rior yers= e9cess certi;ction on ccounts pyble.

%. 0ilure of the Re+ionl ces to recor* the trnsfer to the entrlce of trust libilities:pybles for oestic Foney r*ers issue*by the forer.

2he ccount titles n* the correspon*in+ blnces s of eceber 3$,&1$1 n* &11%, the net eCect of "45%,$4,7%5 ws chr+e* to retine*

ernin+s in &11% re s follows?

% 31, 2010 2009ebit re*it

sh n* csh e/uivlents $,$$%,76,1&$ 3$5,44$,%$Accounts receivble 367,$3%,%

43ue fro other +overnent ocesue fro re+ionl oces

47,&65,$76$,%74,771,%76

#upplies $,117,67%,667eferre* chr+es 4&%,$63@urnty *eposits &5,$4&Fobilition fees 54%,5%"repi* e9penses $&4,&7

3

nvestents in stocks $%,$1"roperty n* e/uipent $,16%,5$,1

$6ther ssets 6,1%,%

32otl Assets 3,6$,55%,564 &,&%1,76&,753

Accounts pyble $,466,567nter-+ency pybles 66,7&,516ue to entrl ce - oestic Foney r*er 0un* $$&,5,%%$

20

8/12/2019 03-PPC2010 Notes to FS

14/15

ue to subsi*iries n* lites 4,$5,4$1

ther libilities $14,753,44&eferre* cre*its 55,3$1,1& 2otl ibilities $$7,414,41$ $,145,3$&,5%7

Retine* ernin+s-contin+ent $,635,434ontin+ent cpitl &,16,34

2otl 8/uity 3,713,$

2otl ibilities n* 8/uity $$7,414,41$ $,14%,1$6,4$5

3,7%,%63,%65 3,33%,77%,$61

B* Accounts-net 45%,$4,7%5

27. OTHER MATTERS

$. 2he "hilippine "ostl orportion is now un*er+oin+ Rtionlition "ro+r which will ri+ht-sie the copny fro its

current he* count of $$,715 eployees, n* contrct of serviceworkers n* eer+ency lborers to roun* 7,676 personnel.

2he Rtionlition "ln ws pprove* by the Bor* of irectorsthrou+h Bor* Resolution No. &116-$& *te* eceber $%, &116n* ws re-pprove* on ctober &7, &1$$ thru Bor* Resolution No.&1$$-$53.

urrently, ll the re/uireents hve been forwr*e* by "" to theeprtent of Bu*+et n* Fn+eent (BF). Oeekly eetin+sre now bein+ hel* between "" n* the BF. 2he Rtionlition"ln is e9pecte* to be si+ne* by is 89cellency, "resi*ent Beni+no

#. A/uino , on Inury $4, &1$&. &. n Iuly $4, &1$$, the fourth Moor of the Re+ionl ce, Ntionl

pitl Re+ion which is occupie* by the 0innce eprtent, wsre* or totlly *estroye* by ;re. 2he estite* *+e ws*eterine* by the ccre*ite* @## A*>uster in the net ount of"5.1 illion.

2he buil*in+ which houses the Re+ionl ce, Ntionl pitlRe+ion n* the "hilippine "ostl #vin+s Bnk he* oce is insure*with the @## for the len*r Ler &1$$ in the totl ount of"&1.1 illion.

Bse* on the investi+tion con*ucte* by the eprtent of nteriorn* ocl @overnent (@), the cuse of the ;re is un*eterine*bse* on previlin+ circustnces n* evi*ences +there*.owever, the cse y be re-opene* when circustnces wrrnt.

21

8/12/2019 03-PPC2010 Notes to FS

15/15

3. 0ore+one revenues fro frnkin+ il privile+es for L &1$1ounte* to "35%,5&3,$65. 2hese were uthorie* un*er severlissunces n* were +iven to severl +overnent oces such s thece of the "resi*ent, #upree ourt, #ente, on+ress,oission on 8lections, etc.

4. 2he o*ernition pro+r of the "ostl #yste throu+h Buil*-ese- 2rnsfer schee pprove* by the "resi*ent of the "hilippinesin &116 ws not pushe* throu+h becuse the proponent,Renissnce of A+e (RA), file* to coply with the contrctsuch tht terintion letter ws sent on Iune &, &11.

5. "" stoo* s +urntor to "0 lons s follows?

re*itor Bnk"rincipl nterest Blnce (in illions)

AAA #pecil 0un* 08B2

&51,7&& $5$,4$5 41&,$37

Bnco e ro $%,5&5 37,$%$ &&6,7$6Allie* Bnkin+ orportion 44,&$ &3,37$ 67,5%"rovi*ent 0un* 3,&% 44 3,333

47,754 &$&,1&$ 6%%,775

6. 2he orportion hs reli+iously coplie* with n* enforce* theipleenttion of t9 lws pursunt to Revenue Re+ultion No. &-%*te* April $7, $%% ipleentin+ Republic Act No. 4&4. 2he t9eswithhel* fro the slries of eployees n* those tht re *ue frothe +ross pyent of +oo*s n* services *urin+ the onth for whichit ws *ue were reitte* ie*itely on the ensuin+ onth.

28. RESTATEMENT OF 2009 FINANCIAL STATEMENT &ALANCES

ertin ccounts in eceber 3$, &11% ;nncil stteents wererestte* to +ive retroctive eCect on *>ustents *e in eceber3$, &1$1 ;nncil stteents.

22