annual audit report of psa 2018 - republic of the philippines

Republic of the Philippines COMMISSION ON AUDIT

Commonwealth Avenue, Quezon City

CONSOLIDATED ANNUAL AUDIT REPORT

on the

PHILIPPINE STATISTICS AUTHORITY

For the Year Ended December 31, 2018

EXECUTIVE SUMMARY

A. Introduction

Republic Act (RA) No. 10625, otherwise known as the Philippine Statistical Act of 2013, was signed into law on September 12, 2013. It merged the National Statistics Office (NSO), Bureau of Agricultural Statistics (BAS), National Statistical Coordination Board (NSCB), and the Bureau of Labor and Employment Statistics (BLES) into one agency named Philippine Statistical Authority or the PSA.

The PSA shall be primarily responsible for the implementation of the objectives and provisions of RA No. 10625. It shall plan, develop, prescribe, disseminate, and enforce policies, rules, and regulations, and coordinate government-wide programs governing the production of official statistics, general purpose statistics, and civil registration services. It shall take charge of all national censuses and surveys, sectoral statistics, consolidation of selected administrative recording systems, and compilation of national accounts. It also serves as the central statistical authority on primary data collection in the Philippines. The PSA is headed by a National Statistician and Civil Registrar General, and is assisted by three Deputy National Statisticians and eight Assistant National Statisticians. The PSA has three support services, namely: (a) Sectoral Statistics Office; (b) Census and Technical Coordination Office; and (c) Civil Registration and Central Support Office, and each office is composed of many divisions. As of December 31, 2018, the personnel profile of the PSA is shown below:

Particular Central Office Regional Office Total

Total Plantilla 841 1,959 2,800 Filled-up 689 1,667 2,356 Co-Terminus 12 - 12 Job Orders 425 669 1,094 Total Personnel Complement 1,126 2,336 3,462

B. Financial Highlights

The financial position, financial performance and the sources and utilization of funds for Calendar Year (CY) 2018, with the corresponding figures for CY 2017 are summarized on the next page:

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Particulars

Amounts (in Million)

2018 2017 Increase/ (Decrease)

Financial Position Assets P2,764.848 P2,612.167 P 152.682 Liabilities 1,554.372 1,799.836 (245.464) Net Assets/Equity 1,210.476 812.330 398.146

Financial Performance Revenues 1,667.043 1,373.119 293.925 Expenses 3,204.312 3,289.292 (84.979) Surplus 2,131.038 1,401.423 729.614

SAAODB (Annex A) Appropriations 5,916.152 4,106.520 1,809.632 Allotments Received 5,899.432 4,105.162 1,794.270 Obligations Incurred 3,699.334 3,684.944 14.390 Disbursements 3,190.161 2,820.124 370.037 Unexpended Balance 2,200.097 420.218 1,779.880

C. Operational Highlights

For CY 2018, the PSA had accomplished its planned activities under the three major final output (MFOs), where accomplishments under MFOs 2 and 3 on the areas of Statistical Policy and Coordination Services and Civil Registration Services had exceeded the targets, ranging from 1 percent to 9 percent.

D. Scope and Objectives of Audit

The audit covered the financial accounts and operations for CY 2018 of the PSA, including transactions for the period from September to December 2017 that were not covered in the CY 2017 audit due to non submission of related documents and reports. The objectives of the audit were to determine the reliability of the accounting data, propriety of the financial transactions, and fairness of the presentation of the financial statements; and ascertain compliance with laws, rules, and regulations.

E. Independent Auditor’s Report on the Financial Statements

The auditor rendered an unqualified opinion on the fairness of presentation of the financial statements.

F. Summary of Significant Observations and Recommendations

Among the audit observations and corresponding recommendations discussed in Part II of this report, the significant observations are summarized as follows:

1. Accounting errors/omissions were noted in the recording of transactions and

classifying of accounts that affected the accuracy of reported account balances.

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We recommended and Management agreed to direct the Accountant of Central Office (CO) and concerned Regional Offices (ROs) to prepare the necessary journal entries to correct the noted errors, and henceforth, observe the proper recording of accounts and transactions in accordance with the Government Accounting Manual and other existing accounting rules and regulations.

The accuracy and completeness of the reported asset accounts could not be ascertained due to various accounting deficiencies.

We recommended and Management agreed to:

a) Require the Accountant and Property/Supply Officers in CO and

concerned ROs to reconcile their respective records, and effect the necessary adjustments/corrections in their respective books of accounts and property records;

b) Require the Regional Accountant to prioritize the submission of the

revised confirmation letters and file the request for the write-off of the dormant account in compliance with COA Circular No. 2016-005 dated December 19, 2016;

c) The Accountants and bookkeepers of the regional and provincial

offices to submit certification to the CO OIC-Chief Accountant that the funds transferred have been liquidated and accounted for in the books together with the Report of Disbursements; and

d) The OIC-Chief Accountant of the CO to monitor and recognize the

liquidation and refund of excess amount of the fund transfers, and reconcile and eliminate the intra-agency receivables and payables of prior years in consonance with the accounting practice rules and regulations.

2. The balance of Due from NGAs of P63.963 million does not reconcile with the

balance per Agency Summary of Payments and Deliveries of the Procurement Service- Department of Budget and Manila (PS-DBM) of P36.122 million or a difference of P27.841 million. We recommended and Management agreed to: a) Instruct the OIC-Accountant to reconcile their records with the PS-

DBM on a regular basis. b) Utilize the balance of the account by charging current procurement to

reduce the balance of the account with PS or demand refund of the value of all undelivered items; and

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c) Require the Supply Officer to submit regularly to the Accounting Division all the delivery receipts and its supporting documents of the delivery for all supplies and materials in order to properly record on time the deliveries from PS-DBM in the books.

3. Funds transferred by the PSA CO and RO V to other NGAs totaling P28.993

million remained unliquidated at year-end, contrary to Section 4.6 of COA Circular No. 94-013, thus the appropriate expenses incurred for the period could not be properly accounted for.

We recommended and Management agreed to monitor and demand from the implementing agencies concerned (PSRTI, CSC and DPWH) to submit the RCI and RD to report on the utilization of the funds transferred to them and return unused balance, if any; and We also recommend that Management direct the accountant to analyze the outstanding subsidiary ledger fund balances of the BAS and NSCB considering that these agencies were already merged with the NSO/PSA and coordinate to the PS-DBM to determine the status of these fund transfers.

4. Unserviceable assets totaling P5.611 million in five ROs were not disposed of

for several years now, resulting in further deterioration, incurrence of additional storage cost, and loss of opportunity to earn additional income from sale thereof.

We recommended and Management agreed to require the Property Officers of the ROs to: a) Conduct full inventory and inspection of all unserviceable assets and

prepare the corresponding Inventory and Inspection Report of Unserviceable Property; and

b) Cause the immediate disposal of all unserviceable assets either by

destruction, donation or sale, and submit the complete documents to the Accountant for de-recognition in the books of accounts.

5. Accounts Payable of P1.017 million which remained outstanding for two years

was not reverted to Accumulated Surplus/(Deficit) account, contrary to PD No. 1445 and DBM-COA Joint Circular 99-6 dated November 13, 1999.

We recommended and Management agreed to revert to Accumulated Surplus/(Deficit) account all Accounts Payable aged two years and above, pursuant to Section 98 of PD No. 1445 and DBM-COA Joint Circular No. 99-6.

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6. There were lapses noted in property management such as: (i) non-conduct of physical count of inventories and PPE; (ii) non-maintenance/updating of supplies and PPE ledger cards, and Stock Cards; (iii) non-preparation and submission of Requisition Issue Slips (RIS) and Reports of Supplies and Materials Issued (RSMI); and (iv) non-updating of Property Acknowledgement Receipt (PAR) as required under existing rules and regulations.

We recommended that Management require, among others: a) The Inventory Committee of ROs VI, VIII, XII and XIII to conduct

physical count of Inventory and PPE, prepare the RPCPPE and RPCI and submit the said reports duly signed by the Inventory Committee to the Resident Auditor on the set date;

b) The Accounting and Property personnel of ROs IV-A VI, VIII, XII and

XIII to maintain/update PPE and supplies ledger cards, and stock cards, respectively; and

c) The Property Officers of concerned ROs to submit to the Accounting

Division the RSMI as basis for recording the issuances, and prepare/update the PAR.

G. Status of Settlement of Audit Suspensions, Disallowances and Charges In CY 2018, notices of suspensions and disallowances amounting to P5.506 million and P456 million, respectively, were issued to the PSA. Details are in Part II of this Report.

H. Status of Implementation of Prior Year’s Audit Recommendations

Out of the 28 audit recommendations embodied in the CY 2017 Consolidated Annual Audit Report of PSA, 19 were fully implemented and nine partially implemented. The results of the validation of the implementation of the prior year’s audit recommendations are presented in Part III of this Report. We enjoin Management to ensure full implementation of all audit recommendations to improve the financial and operational efficiency of the PSA.

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TABLE OF CONTENTS

PART PARTICULARS PAGE I

Audited Financial Statements

Independent Auditor’s Report

1

Statement of Management’s Responsibility for Financial Statements

3

Consolidated Statement of Financial Position 4

Consolidated Statement of Financial Performance 5

Consolidated Statement of Changes in Net Assets/Equity

6

Consolidated Statement of Cash Flows

7

Statement of Comparison of Budget and Actual Amounts

9

Notes to Consolidated Financial Statements

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II

Audit Observations and Recommendations 63

III

Status of Implementation of Prior Year’s Audit Recommendations

83

IV Annexes

PART I

AUDITED FINANCIAL STATEMENTS

PART II

AUDIT OBSERVATIONS AND RECOMMENDATIONS

PART III

STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT

RECOMMENDATIONS

PART IV

ANNEXES

Republic of the Philippines COMMISSION ON AUDIT

Commonwealth Avenue, Quezon City

INDEPENDENT AUDITOR’S REPORT The National Statistician and Civil Registrar General Philippine Statistics Authority East Avenue, Quezon City Unqualified Opinion We have audited the consolidated financial statements of the Philippine Statistics Authority, which comprise the consolidated statement of financial position as at December 31, 2018, and the consolidated statement of financial performance, consolidated statement of changes in net assets/equity, consolidated statement of cash flows, consolidated statement of comparison of budget and actual amounts for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Philippine Statistics Authority as at December 31, 2018, and its financial performance, statement of changes in net assets/equity, statement of cash flows, statement of comparison of budget and actual amounts for the year then ended, and notes to the financial statements, including a summary of significant accounting policies in accordance with Philippine Public Sector Accounting Standards (PPSASs). Basis for Unqualified Opinion We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the agency in accordance with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibility of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with PPSASs, and for such internal control as management

determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Our audit involves performing procedures to obtain evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s professional judgment, including the assessment of the risk of material misstatement of the financial statements whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the agency’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the agency’s internal control. Our audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Other matter In our report dated June 27, 2018, we did not express an opinion on the CY 2017 financial statements because of the significance of the matter described in the Basis for Disclaimer of Opinion section of our report. However, such matter which pertains to non-submission of underlying reports, schedules and disbursement vouchers, and documents covering the period September to December 2017 was already complied and included in this year’s audit. Accordingly, our present opinion on the financial statements as of December 31, 2018, an unqualified opinion as presented herein, is different from that stated in our previous report.

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June 20, 2019

3

Note 2018 2017

ASSETS

Current Assets

Cash and Cash Equivalents 4 436,087,023.61 296,429,585.69

Receivables 5 325,504,916.18 255,976,613.71

Inventories 6 75,087,072.15 87,030,452.77

Other Assets 9 31,870,530.62 243,026,614.55

Total Current Assets 868,549,542.56 882,463,266.72

Non-Current Assets

Property, Plant and Equipment 7 1,673,578,811.11 1,678,282,668.98

Intangible Assets 8 43,163,625.46 41,725,933.50

Other Non-Current Assets 9 179,556,402.16 9,694,835.21

Total Non-Current Assets 1,896,298,838.73 1,729,703,437.69

Total Assets 2,764,848,381.29 2,612,166,704.41

LIABILITIES

Current Liabilities

Financial Liabilities 10 960,800,089.59 1,104,811,984.87

Inter-Agency Payables 11 143,300,581.04 357,352,291.39

Intra-Agency Payables 12 23,829,596.56 26,972,493.83

Trust Liabilities 13 421,161,948.10 307,396,056.66

Other Payables 14 5,253,394.41 3,303,571.64

Deferred Credits/Unearned Income 14.2 26,800.00 -

Total Current Liabilities 1,554,372,409.70 1,799,836,398.39

Total Liabilities 1,554,372,409.70 1,799,836,398.39

Total Assets less Total Liabilities 1,210,475,971.59 812,330,306.02

NET ASSETS/EQUITY

Accumulated Surplus/(Deficit) 1,210,475,971.59 812,330,306.02

Total Net Assets/Equity 1,210,475,971.59 812,330,306.02

This statement should be read in conjunction with the accompanying notes.

(In Philippine Peso)


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2018

ALL FUNDS

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Republic of the Philippines

Philippine Statistics Authority

1. Cash an

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the Year ended December 31, 2018

1. General Information/Agency Profile

The consolidated financial statements of Philippine Statistics Authority (PSA) were authorized for issue on February 13, 2019 as shown in the Statement of Management Responsibility for Financial Statements signed by Ms. Maria Celeste D. L. Balanza, Officer-in-Charge, Accounting Division, and Ms. Lisa Grace S. Bersales, Ph.D, National Statistician and Civil Registrar General. The PSA, pursuant to its mandate as the primary statistical agency of the government and its functions as stipulated in Republic Act (RA) No. 10625 and its Implementing Rules and Regulations, produced timely, reliable and relevant official statistics, and provided statistical products and services to support the formulation of development plans and programs, decision making, research and public policy discussion. It plans develops, prescribes, disseminates and enforces policies, rules and regulations and coordinate government-wide programs governing the production of official statistics, general purpose-statistics, and civil registration services. It is primarily responsible for all national censuses and surveys, sectoral statistics, consolidation of selected administrative recording systems and compilation of national accounts. Pursuant to Article 7 of the Family Code, the PSA also issues certificates of registration of authority to solemnize marriage to solemnizing officers. The Agency’s registered address is 2/F TAM Building, PSA Complex, East Avenue, Diliman, Quezon City, Philippines 1101.

2. Statement of Compliance and Basis of Preparation of Financial Statements

The consolidated financial statements have been prepared in accordance with the Philippine Public Sector Accounting Standards (PPSAS) issued by the Commission on Audit (COA) per COA Resolution No. 2014-003 dated January 24, 2014. The consolidated financial statements have been prepared on the basis of historical cost. The Statement of Cash Flows is prepared using the direct method.

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3. Summary of Significant Accounting Policies

3.1 Basis of accounting

The consolidated financial statements are prepared on an accrual basis in accordance with PPSAS.

3.2 Consolidation

Consolidated Entities The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the Central and Regional Offices (ROs).

3.3 Financial instruments

a. Financial assets

Initial recognition and measurement Financial assets within the scope of PPSAS 29 Financial Instruments: Recognition and Measurement are classified as financial assets at fair value through surplus or deficit, loans and receivables, held-to-maturity investments or available-for-sale financial assets, as appropriate. PSA determines the classification of its financial assets at initial recognition. PSA's financial assets include: cash and short-term deposits and other receivables. Subsequent measurement The subsequent measurement of financial assets depends on their classification. Derecognition PSA derecognizes a financial asset or, where applicable, a part of a financial asset or part of PSA of similar financial assets when:

• The rights to receive cash flows from the asset have expired or are waived.

• PSA has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party; and either: (a) PSA has transferred substantially all the risks and rewards of the asset; or (b) PSA has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

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Impairment of financial assets PSA assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include the following indicators: • The debtors or a group of debtors are experiencing significant

financial difficulty

• Default or delinquency in interest or principal payments

• The probability that debtors will enter bankruptcy or other financial reorganization

• Observable data indicates a measurable decrease in estimated future cash flows (e.g. changes in arrears or economic conditions that correlate with defaults)

b. Financial liabilities Initial recognition and measurement Financial liabilities within the scope of PPSAS 29 are classified as financial liabilities at fair value through surplus or deficit or loans and borrowings, as appropriate. PSA determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, plus directly attributable transaction costs. PSA’s financial liabilities include trade and other payables. Subsequent measurement The measurement of financial liabilities depends on their classification.

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

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Gains or losses on liabilities held for trading are recognized in surplus or deficit. Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in surplus or deficit.

c. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

3.4 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash at bank, deposits on call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits as defined above, net of outstanding bank overdrafts.

3.5 Inventories

Inventory is measured at cost upon initial recognition. To the extent that inventory was received through non-exchange transactions (for no cost or for a nominal cost), the cost of the inventory is its fair value at the date of acquisition.

Inventories are recognized as an expense when deployed for utilization or consumption in the ordinary course of operations of the PSA.

3.6 Property, Plant and Equipment (PPE)

Recognition An item is recognized as PPE if it meets the characteristics and recognition criteria as such. The characteristics of PPE are as follows:

• Tangible items;

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• Are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and

• Are expected to be used during more than one reporting period.

An item of PPE is recognized as an asset if:

• It is probable that future economic benefits or service potential associated with the item will flow to the entity; and

• The cost or fair value of the item can be measured reliably.

Measurement at Recognition An item recognized as PPE is measured at cost. A PPE acquired through non-exchange transaction is measured at its fair value as at the date of acquisition. The cost of the PPE is the cash price equivalent or, for PPE acquired through non-exchange transaction its cost is its fair value as at recognition date. Cost includes the following:

• Its purchase price, including import duties and non-refundable purchase

taxes, after deducting trade discounts and rebates; • Expenditure that is directly attributable to the acquisition of the items;

and • Initial estimate of the costs of dismantling and removing the item and

restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired, or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

Measurement After Recognition After recognition, all PPE are stated at cost less accumulated depreciation and impairment losses. When significant parts of PPE are required to be replaced at intervals, PSA recognizes such parts as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major repair/replacement is done, its cost is recognized in the carrying amount of the PPE as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized as expense in surplus or deficit as incurred. Depreciation Each part of an item of PPE with a cost that is significant in relation to the total cost of the item is depreciated separately.

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The depreciation charge for each period is recognized as expense unless it is included in the cost of another asset. Initial Recognition of Depreciation Depreciation of an asset begins when it is available for use such as when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. For simplicity and to avoid proportionate computation, the depreciation is for one month if the PPE is available for use on or before the 15th of the month. However, if the PPE is available for use after the 15th of the month, depreciation is for the succeeding month. Depreciation Method The straight line method of depreciation was adopted as more appropriate for agency operation. Estimated Useful Life PSA uses the Schedule on the Estimated Useful Life of PPE by classification prepared by COA.

The PSA uses a residual value equivalent to at least five percent (5%) of the cost of the PPE.

Impairment An asset’s carrying amount is written down to its recoverable amount, or recoverable service amount, if the asset’s carrying amount is greater than its estimated recoverable service amount.

Derecognition PSA derecognizes items of PPE and/or any significant part of an asset upon disposal or when no future economic benefits or service potential is expected from its continuing use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the surplus or deficit when the asset is derecognized.

3.7 Intangible Assets

Recognition and measurement Intangible assets are recognized when the items are identifiable non-monetary assets without physical substance, it is probable that the expected future economic benefits or service potential that are attributable to the assets will flow to the entity, and the cost or fair value of the assets can be measured reliably. Intangible assets acquired separately are initially recognized at cost.

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Subsequent Measurement The straight line method is adopted in the amortization of the expected pattern of consumption of the expected future economic benefits or service potential. The amortization period and the amortization method, for an intangible asset with a finite useful life, were reviewed at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset were considered to modify the amortization period or method, as appropriate, and were treated as changes in accounting estimates. The amortization expense on an intangible asset with a finite useful life is recognized in surplus of deficit as the expense category that is consistent with the nature of the intangible asset. Gains or losses arising from derecognition of an intangible asset were measured as the difference between the net disposal proceeds and the carrying amount of the asset and were recognized in the surplus of deficit when the asset is derecognized.

3.8 Changes in accounting policies and estimates

PSA recognizes the effects of changes in accounting policy retrospectively. The effects of changes in accounting policy are applied prospectively, if retrospective application is impractical. PSA recognizes the effects of changes in accounting estimates prospectively by including in surplus or deficit. The PSA corrects material prior period errors retrospectively in the first set of financial statements authorized for issue after their discovery by:

• Restating the comparative amounts for prior period(s) presented in

which the error occurred; or • If the error occurred before the earliest prior period presented, restating

the opening balances of assets, liabilities and net assets/equity for the earliest prior period presented.

3.9 Foreign currency transactions

Transactions in foreign currencies are initially recognized by applying the spot exchange rate between the function currency and the foreign currency at the transaction. At each reporting date:

• Foreign currency monetary items are translated using the closing rate;

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• Non-monetary items that are measured in terms of historical cost in a foreign currency shall be translated using the exchange rate at the date of the transaction; and

• Non-monetary items that are measured at fair value in a foreign currency shall be translated using the exchange rates at the date when the fair value was determined.

Exchange differences arising (a) on the settlement of monetary items, or (b) on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements, are recognized in surplus or deficit in the period in which they arise, except as those arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation.

3.10 Revenue from non-exchange transactions

Recognition and Measurement of Assets from Non-Exchange Transactions An inflow of resources from a non-exchange transaction, other than services in-kind, that meets the definition of an asset are recognized as an asset if the following criteria are met:

• It is probable that the future economic benefits or service potential associated with the asset will flow to the entity; and

• The fair value of the asset can be measured reliably.

An asset acquired through a non-exchange transaction is initially measured at its fair value as at the date of acquisition.

Recognition Revenue from Non-Exchange Transactions An inflow of resources from a non-exchange transaction recognized as an asset is recognized as revenue, except to the extent that a liability is also recognized in respect of the same inflow. Fees and fines not related to taxes PSA recognizes revenues from fees and fines, when earned and the asset recognition criteria are met. Deferred income is recognized instead of revenue if there is a related condition attached that would give rise to a liability to repay the amount. Other non-exchange revenues are recognized when it is probable that the future economic benefits or service potential associated with the asset will flow to the entity and the fair value of the asset can be measured reliably. Transfers PSA recognizes an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset, except those arising from services in-kind.

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Transfers from other government entities Revenues from non-exchange transactions with other government entities and the related assets are measured at fair value and recognized on obtaining control of the asset (cash, goods, services and property) if the transfer is free from conditions and it is probable that the economic benefits or service potential related to the asset will flow to the PSA and can be measured reliably.

3.11 Revenue from Exchange transactions

Measurement of Revenue Revenue shall be measured at the fair value of the consideration received or receivable. Interest income Interest income pertains to interest earned from bank accounts maintained by PSA CO, Regional and Provincial Offices (POs). It is accrued using the simple interest method.

3.12 Budget information

The annual budget is prepared on a cash basis and is published in the government website. A separate Statement of Comparison of Budget and Actual Amounts (SCBAA) are presented showing the original and final budget and the actual amount on comparable basis to the budget.

3.13 Impairment of Non-Financial Assets

Impairment of cash-generating assets At each reporting date, PSA assesses whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, PSA estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or the cash-generating unit (CGU) exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In

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determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. For assets, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, PSA estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in surplus or deficit.

Impairment of non-cash-generating assets PSA assesses at each reporting date whether there is an indication that a non-cash-generating asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, PSA estimates the asset’s recoverable service amount. An asset’s recoverable service amount is the higher of the non-cash generating asset’s fair value less costs to sell and its value in use. Where the carrying amount of an asset exceeds its recoverable service amount, the asset is considered impaired and is written down to its recoverable service amount. PSA classifies assets as cash-generating assets when those assets are held with the primary objective generating a commercial return. Therefore, non-cash generating assets would be those assets from which PSA does not intend (as its primary objective) to realize a commercial return.

3.14 Employee benefits

The employees of PSA are member of the Government Service Insurance System (GSIS), which provides life and retirement insurance coverage. PSA recognizes the undiscounted amount of short term employee benefits, like salaries, wages, bonuses, allowance, etc., as expense unless capitalized, and as a liability after deducting the amount paid. PSA recognizes expenses for accumulating compensated absences when these are paid (commuted or paid as terminal leave benefits). Unused entitlements that have accumulated at the reporting date are not recognized as expense. Non-accumulating compensated absences, like special leave privileges, are not recognized.

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4. Cash and Cash Equivalents

Accounts 2018 2017

Cash on Hand P 5,572,026.57 P 6,743,626.27 Cash in Bank - Local Currency 265,726,181.39 223,126,064.31 Cash in Bank-Foreign Currency 843,299.04 293,698.58 Treasury/Agency Cash Accounts 163,945,516.61 66,266,196.53 Total P436,087,023.61 P296,429,585.69

4.1 Cash on Hand

Accounts 2018 2017 Cash – Collecting Officers P5,249,310.77 P6,491,049.18 Petty Cash 322,715.80 252,577.09 Total P5,572,026.57 P6,743,626.27

4.1.1 Cash-Collecting Officers account is composed of collections from

refund of cash advances, sale of publications, data request, sale of civil registry forms and Census Serbilis Outlets, which are for deposit in January 2019:

Office Amount General Fund

Central Office P 18,417.00 NCR 134,555.02 CAR 500.00 Region IV-A 18,500.00 Region VI 10,500.00 Region VIII 35,000.00 Region XII 500.00

Subtotal 217,972.02 Trust Fund

Central Office 5,031,338.75 Total P5,249,310.77

4.1.2 Petty Cash Fund account of General Fund- Central Office and Regional

Office is composed of balances as of year-end and refunded as follows:

Particulars Amount Remarks Central Office:

Agustin S. Blanco P 66.00 Refunded February 1, 2019 OR# 19592272

Annabel L. Villa 1,209.65 Refunded January 10, 2019 OR# 19592229

Benjamin Arsenio Y. Navarro

299.25 Refunded January 18, 2019 OR# 19592247

Cynthia C. Vallesteros 1,765.95 Refunded January 7, 2019 OR# 19592222

Daisy S. Adlawan 244.00 Refunded January 24, 2019 OR# 19592260

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Particulars Amount Remarks Daisy P. Mangabat 1,408.19 Refunded January 23, 2019 OR#

19592253 Edgar M. Fajutagana 994.60 Refunded January 24, 2019 OR #

19592256

Lotis I. Ira P 2,253.19 Refunded January 8, 2019 OR# 19592225

Lourdines C. Dela Cruz 656.66 Refunded January 4, 2019 OR# 19592220 and January 9, 2019 OR# 19592227

Malcolm C. Queyquep 21.25 Refunded January 14, 2019 OR# 19592239

Oliver P. Chancoco 25,066.00 Refunded February 8, 2019 OR# 19592280

Revelyn C. Abduhalim 286.25 Refunded January 4, 2019 OR# 19592219

Rosalinda M. Garcia 9,894.00 Refunded January 7, 2019 OR# 19592223

Severa B. De Costo 304.45 Refunded January 10, 2019 OR# 19592231

Simonette A. Nisperos 1,182.90 Refunded January 30, 2019 OR# 19592269

Thelma P. Kahanding 181.00 Refunded January 29, 2019 OR# 19592265

Subtotal 45,833.34 Regional Office: Region I 15,000.00 Pertains to Regional Office year-end

balance Region II 10,000.00 Pertains to Regional Office year-end

balance Region IV-A 10,000.00 Pertains to Regional Office year-end

balance Region V 83,997.21 Pertains to year-end balance with

breakdown as follows: RO – 969.37, Albay – 20,000.00, Camarines Norte – 9,150.00, Camarines Sur – 4,727.84, Catanduanes - 20,000.00, Masbate - 10,000.00 and Sorsogon - 19,150.00

Region VI 107,885.25 Pertains to year-end balance with breakdown as follows: RO – 20,476.50, Aklan – 12,439.00, Antique – 20,000.00 , Capiz– 6,486.75, Guimaras - 6,814.00, Iloilo - 16,669.00 and Negros Occidental – 25,000

Region IX 50,000.00 Pertains to year-end balance with breakdown as follows: RO – 15,000.00, ZamboangaSibugay – 15,000.00, Zamboanga del Norte – 10,000.00 and Zamboanga del Sur – 10,000.00

Subtotal 276,882.46 Total P322,715.80

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4.2 Cash in Bank-Local Currency

Account 2018 2017 Cash in Bank – Local Currency,

Current Account P261,342,648.29 P219,241,742.97

Cash in Bank – Local Currency, Savings Account

P 4,383,533.10 P 3,884,321.34

Total P265,726,181.39 P223,126,064.31

4.2.1 Cash in Bank – Local Currency, Current Account is shown below

Office 2018 2017 Central Office P248,515,778.28 P204,987,581.65 NCR 2,978,016.42 2,096,126.41 CAR 247,518.00 351,708.93 Region I 751,746.73 832,462.43 Region II 372,068.94 330,219.53 Region III 704,402.13 1,267,893.41 Region IV-A 368,361.46 78,221.48 Region IV-B 77,068.88 72,724.37 Region V 460,903.13 745,686.77 Region VI 1,262,191.24 940,032.37 Region VII 649,476.92 716,044.71 Region VIII 1,415,194.45 913,644.55 Region IX 860,333.31 1,798,004.47 Region X 62,910.49 62,138.31 Region XI 947,784.72 1,156,366.95 Region XII 756,733.21 1,397,444.28 CARAGA 711,651.35 719,331.51 ARMM 200,508.63 776,110.84 Total P261,342,648.29 P219,241,742.97

The Cash in Bank-Local Currency, Current Account - CRS-ITP (LBP-UN Avenue, LBP West Avenue and PNB Recto) is composed of the collections deposited from the operation of Civil Registry System Information Technology Project (CRS-ITP). The creation of an escrow account indicated in the Concession Agreement with Unysis Managed Services Corporation in collaboration with the Department of Finance (DOF) is on-going. On the other hand, Cash in Bank-Local Currency, Current Account - OCRG represents the proceeds from the transaction of civil registry forms while Cash in Bank-Local Currency, Current Account-Trust Fund represents the various trust receipts from different source agencies for the funding of special surveys/projects. The collections from each account are remitted to BTR, then, a Notice of Cash Allocation (NCA) will be requested from DBM. The NCA received will be recognized as a debit in Cash- Modified Disbursement System (MDS), Trust and credit to Cash Treasury/Agency Deposit, Trust.

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Particulars Bank Amount

PSA– Trust Fund LBP – United Nations (UN Avenue) P113,732,390.42 PSA – CRS ITP LBP – UN Avenue 76,181,468.62 PSA – OCRG LBP – UN Avenue 5,447,955.39 PSA – CRS ITP LBP – West Avenue P 46,641,181.40 PSA – CRS ITP PNB – Recto 6,512,782.45 Total P248,515,778.28

4.2.2 Cash in Bank – Local Currency, Savings Account

Accounts 2018 2017

General Fund Central Office P 12,297.83 P 11,390.61 NCR 30,000.00 30,000.00 Subtotal 42,297.83 41,390.61

Trust Fund Central Office 4,341,235.27 3,842,930.73

Total P4,383,533.10 P3,884,321.34

The balance in the Central Office is composed of account maintained by the former National Statistics Office (NSO) for payroll fund in the LBP – UN Avenue amounting to P12,297.83.

The balance in NCR is the account maintained for payroll fund in LBP – UN Avenue amounting to P30,000.00

4.3 Cash in Bank - Foreign Currency

4.3.1 Cash in Bank- Foreign Currency Savings Account of Trust Fund-Central Office is account maintained by the former NSO for overseas remittances of payments for requests of civil registry documents.

Particulars Bank 2018 2017 Dollar Peso Dollar Peso

PSA-CRS ITP

LBP–West $16,434.70 P843,299.04 $5,754.21 P288,149.13

PSA-ADB LBP–West $ - P - $ 110.82 P 5,549.45 Total $16,434.70 P843,299.04 $5,865.03 P293,698.58

4.4 Treasury/Agency Cash Accounts

Accounts 2018 2017 Cash –Modified Disbursement System (MDS),

Regular P -

P20,186,371.16

Cash –Treasury/Agency Deposits, Trust 163,945,516.61 37,642,580.96 Cash –MDS, Special - 4,653,470.97 Cash –Tax Remittance Advice - 3,783,773.44 Total P163,945,516.61 P66,266,196.53

4.4.1 Cash – Modified Disbursement System (MDS), Regular was not included

in the Consolidated Financial Statements as per advice by the Government Accountancy Sector of COA, this represents unreleased

23

checks which were reverted back to the cash account of Cordillera Administrative Region (CAR), Region V and Region VII for the year 2018.

4.4.2 Cash – Treasury/Agency Deposits, Trust represents the balance of CO as of year-end.

5 Receivables

Accounts 2018 2017 Inter-agency Receivables P232,920,212.17 P155,717,268.50 Intra-agency Receivables 90,796,548.34 99,157,016.91 Other Receivables 1,788,155.67 1,102,328.30 Total P325,504,916.18 P255,976,613.71

5.1 Inter-Agency Receivables

Accounts 2018 2017 Due from NGAs P225,205,020.17 P 68,786,305.13 Due from GOCCs 7,644,000.00 86,859,771.37 Due from LGUs 71,192.00 71,192.00 Total P232,920,212.17 P155,717,268.50

5.1.1 Due from NGAs account is composed of the following balances:


Central Office P149,484,396.13 NCR 225,506.95 Region II 17,829,618.36 Region IV-A 26,241.76 Region IV-B 446,938.59 Region V 54,136,273.24 Region VI 400,000.00 Region VII 55,451.00 Region VIII 200,000.00 Region IX 106,831.54 Region XII 750,000.00 Region XIII 1,464,774.08 Subtotal 225,126,031.65

Trust Fund Central Office 78,988.52

Total P225,205,020.17

5.1.1.1 Due from NGAs account for General Fund is composed of the following balances:

ROs

Impleme-nting

Agency Purpose/Particular Amount

CO PS-DBM Forwarded Balance from Bureau of Agricultural Statistics (BAS) re: amount transferred to Procurement Service for various office supplies. As per DBM

P 107,980.07

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ROs

Impleme-nting


Statement of Account, the amount was already deposited to Bureau of Treasury (BTR), however supporting documents were not yet submitted to PSA.

CO PS-DBM Forwarded Balance from NSCB re: amount transferred to Procurement Service for various office supplies. As per DBM Statement of Account, the amount was already deposited to Bureau of Treasury (BTr), however supporting documents were not yet submitted to PSA.

P 210,676.94

CO DPWH (UPMO-VUMC-Personnel)

Payment of services in connection with the construction of PSA Building.

299,986.50

CO CSC-NCR Transfer for the procurement of services to conduct training on Capacity Building/ Human Resource Development.

21,377,596.39

CO PSRTI Transfer for the conduct of PSA-FIES 2018 Audit Survey.

6,720,000.00

CO PS-DBM Airplane Fare (Government Fares Agreement) balance as

1,504,492.31

of December 31, 2018. CO PS-DBM Balance of PSA re: amount

transferred to PS-DBM for various office supplies.

62,263,663.92

CO UP Transfer of funds for the implementation of training, data collection, data processing, generation of

57,000,000.00

statistical tables and report preparation for the NMS 2017.

NCR PS-DBM Undelivered Office Supplies. 225,506.95 RO II PS-DBM Pertains to amount disbursed

for the procurement of office supplies but remain undelivered as of year-end.

19,153.00

RO II DPWH Unliquidated balance of advances granted for the construction of PSA office building.

17,810,465.36

RO IV-A

PS-DBM Airplane Fee (Government Fares Agreement)

26,241.76

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ROs

Impleme-nting


RO IV-B

PS-PhilGEPS

Pertains to fund held in trust or debit line to purchase official travel tickets.

446,938.59

RO V PS-DBM Pertains to year-end balance for the procurement of office supply but was not yet delivered with breakdown as follows: Camarines Sur – P198,896.04 and Masbate – P34.724.27. And, Fund Transfer balance for GFA amounting to P147,011.24.

P 380,631.55

RO V DPWH Pertains to the following: Soil Exploration – P275,641.69 and Building construction - P53,480,000.00.

53,755,641.69

RO VI PS-DBM Airplane Fare (Government Fares Agreement).

400,000.00

RO VII PS-DBM Airplane Fare (Government Fares Agreement).

55,451.00

RO VIII PS-DBM Airplane Fare (Government Fares Agreement).

200,000.00

RO IX PS-DBM Airplane Fare (Government Fares Agreement).

106,831.54

RO XII PS-DBM Airplane Fare (Government Fares Agreement).

750,000.00

XIII PS-DBM Pertains to year-end balance for the procurement of the following: P380,000.00 for advance payment of airline tickets under the Government Fares Agreement and P1,084,774.08 for undelivered ICT Equipment purchased.

1,464,774.08

Total

P225,126,031.65

5.1.1.2 Due from NGAs account of Trust Fund- Central Office is composed of the following balances:

Particulars Remarks Amount PS-DBM Balance of PSA re: amount transferred

to Procurement Service for various office supplies

P33,236.32

PSRTI Balance of PSA re: amount transferred to PSRTI under the project Livestock and Poultry Information Early Warning System

11,245.00

PS-DBM Balance of PSA re: Procurement of ICT Equipment under UNICEF Project

34,507.20

Total P78,988.52

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5.1.2 Due from GOCCs account of General Fund - Central Office represents balances of amount transferred to the following:

Particulars Remarks Amount Development Academy of the Philippines

Balance of PSA re: Transfer of funds for ISO 9001: 2015 Quality Management System Scope Expansion for the Philippine Statistics Phase 1.

P7,644,000.00

5.1.3 Due from LGUs account of General Fund represents the following:

Particulars Remarks Amount

Region III Unliquidated cash advances granted to various municipalities in 1991 for the implementation of the survey on MBN. The Regional Office validated the non-existence of said accounts thru certification received from respective municipalities, and the request for authorization to write-off the amount was already submitted to COA for approval.

P71,192.00

5.2 Intra-Agency Receivables

Account 2018 2017

Due from Regional Offices/Staff Bureaus P77,817,051.49 P84,893,064.49 Due from Operating Units 12,979,496.85 14,263,952.42 Total P90,796,548.34 P99,157,016.91

5.2.1 Due from Regional Offices represents the balances of amount transferred

to Regional Statistical Service Offices by the Central Office for payment of the implementation of various activities projects charged against trust funds.

5.2.2 Due from Operating Units represents the balances of amount transferred to Provincial Statistical Service Offices by Regional Statistical Service Offices for payment for the implementation of various activities projects charged against trust funds, breakdown as follows:

Office Amount

General Fund Region I P 505.76

Trust Fund NCR 438,774.13 CAR 30,000.00 Region I 7,344,540.40 Region II 178,817.17 Region III 2,607,851.68 Region IV-B 310,326.82 Region V 41,354.54 Region VI 569,770.88 Region VII 340,575.46 Region VIII 300,538.08

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Office Amount Region IX 10,000.00 Region X 52,910.49 Region XI 145,818.80 Region XII 497,367.64 ARMM P 110,345.00

Subtotal 12,978,991.09 Total P12,979,496.85

5.3 Other Receivables

Accounts 2018 2017

Receivables–Disallowances/Charges P1,235,333.68 P 834,174.37 Due from Officers and Employees 307,899.70 65,330.64 Other Receivables 244,922.29 202,823.29 Total P1,788,155.67 P1,102,328.30

5.3.1 Receivables – Disallowances/Charges account is composed of the

following balances:


Central Office P 714,000.00 NCR 500,000.00 Region I 5,000.00

Subtotal 1,219,000.00 Trust Fund

Region I 16,333.68 Total P1,235,333.68

5.3.2 Receivables – Disallowances/Charges account of General Fund -

Central Office is composed of the following balances:

Name Remarks Amount Various BAS

employees Disallowance for the payment of consultant services of BAS

P702,000.00

Lourdines C. Dela Cruz

Refund of equivalent value of barong per AOM No. 2018-002-101 (2017)

12,000.00

Total P714,000.00

5.3.1.2 Receivables – Disallowances/Charges of General Fund-Region I is composed of various service allowances of employees in Pangasinan Provincial Office as well as training expenses disallowed by the auditor.

5.3.1.3 Receivables – Disallowances/Charges of Trust Fund-Region I

pertains to excessive payment of travelling expenses of various employees which were disallowed by the auditor.

5.3.2 Due from Officers and Employees

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Office Amount Central Office P 2,940.00 Region I 9,090.80 Region II P 418.18 Region III 26,800.00 Region V 820.00 Region VI 31,020.90 ARMM P36,809.82 Total P307,899.70

5.3.2.1 Due from Officers and Employees account of Central Office

pertains to the forwarded receivable balance from Mr. Roy A. Ramirez formerly of BAS, amounting to P2,940.00.

5.3.2.2 Due from Officers and Employees of Region II pertains to the

following: personal call (P18.18) and overpayment of travelling expenses (P400.00) which were granted to employees of the Regional Office.

5.3.2.3 Due from Officers and Employees of Region III pertains to the

receivable of Mr. Allan G. Bruno, Statistical Analyst of Bataan for the COA disallowance amounting to P26,800.00 due to lost Asset-Mobile Phone- Nokia E7.

5.3.2.4 Due from Officers and Employees of Region V pertains to bank

charge of PSA Sorsogon which was not properly disbursed by the designated bookkeeper and no funds were available to pay the said bank charge.

5.3.2.5 Due from Officers and Employees of Region VI represents

collectible from PSO Escote of PSA Antique.

5.3.3 Other Receivables


Central Office P 97,604.70 Region V 145,345.52

Subtotal 242,950.22 Trust Fund

Region VII 1,972.07 Total P244,922.29

5.3.3.1 Other Receivables account of General Fund - Central Office

pertains to the forwarded receivable balance from NSCB and refund for CY 2018 details as follows:

Name Remarks Amount

Jimmy Baban Unpaid/unsettled cash and travel advances of various Regional Statistical Coordination

P 1,890.00 Jaime Nefulda 10,798.67 Brigida Roscom 6,964.00

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Name Remarks Amount Jeremias Reala Committee members, former and

retired NSCB employees, which have been outstanding for ten years.

1,890.00 Presentacion Penpillo P 736.11

Romeo Nimeno Deceased 2,051.97 Domingo Estrella Deceased 31,174.95 Sharon I. Martinez Refund of 2018 Mid-Year bonus

relative to Administrative Case No. 2018-004.

42,099.00

Total P97,604.70

5.3.3.2 Other Receivables account of General Fund - Region V is shown on the next page:


Regional Office

With letter to COA for request for relief from accountability

P116,721.82

Albay 23,625.70 Catanduanes 2,499.00 Sorsogon 2,499.00 Total P145,345.52

5.3.3.3 Other Receivables of Trust Fund - Region VII pertains to

receivable set up in the Regional Office caused by unreconciled differences between Cash in Bank-LCCA and Due to Central Office accounts. The reconciliation of the accounts is on-going as of 2018.

6 Inventories

Accounts 2018 2017 Inventory Held for Consumption P32,684,318.15 P39,413,551.34 Semi-Expendable Machinery and Equipment 27,682,244.66 30,363,275.07 Semi-Expendable Furniture, Fixtures and Books 14,720,509.34 17,253,626.36 Total P75,087,072.15 P87,030,452.77

6.1 Inventories Held for Consumption

Accounts 2018 2017 Office Supplies Inventories P28,565,165.63 P34,302,273.57 Accountable Forms, Plates and Stickers

Inventory 68,145.00 17,928.36

Drugs and Medicines Inventory 4,310.05 352,518.46 Medical, Dental and Laboratory Supplies

Inventory 13,084.36 13,554.75

Fuel, Oil and Lubricants Inventory 42,194.00 37,445.00 Other Supplies and Materials Inventory 3,991,419.11 4,689,831.20 Total P32,684,318.15 P39,413,551.34

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6.1.1 Office Supplies Inventory

Office 2018 2017 General Fund

Central Office P 1,710,232.23 P 5,479,116.27 NCR 1,566,211.05 1,947,304.90 CAR 1,873,727.54 2,118,616.49 Region I 863,286.66 1,223,110.69 Region II 2,713,818.57 2,207,324.90 Region III 2,078,524.88 1,849,320.27 Region IV-A 1,642,476.71 1,351,924.34 Region IV-B 726,625.24 895,875.76 Region V 3,491,655.72 2,387,526.32 Region VI 1,633,779.56 1,636,346.82 Region VII 1,047,426.13 1,734,258.49 Region VIII 2,802,556.51 3,548,861.54 Region IX 1,904,056.28 1,925,855.88 Region X 747,336.04 601,030.56 Region XI 1,384,105.97 1,849,345.76 Region XII 1,333,723.38 1.458,540.12 CARAGA 1,033,363.66 2,075,641.89 ARMM 2,899.50 12,272.57 Subtotal 28,555,805.63 34,302,273.57

Trust Fund Region I 9,360.00 -

Total P28,565,165.63 P34,302,273.57

6.1.2 Accountable Forms, Plates and Stickers Inventory account for General Fund - CO represents the balance as of year-end of OR for distribution to the field offices.

6.1.3 Drugs and Medicines Inventory

Office 2018 2017

Region V P3,849.00 P 5,182.00 Region VIII 461.05 346,159.06 Region IX - 1,177.40 Total P4,310.05 P352,518.46

6.1.4 Medical, Dental and Laboratory Supplies Inventory

Office 2018 2017

Region III P 2,927.77 P10,753.00 Region VIII 4,344.60 - Region IX 5,811.99 2,801.75 Total P13,084.36 P13,554.75

6.1.5 Fuel, Oil and Lubricants Inventory account for General Fund pertains to

the year-end balance of Region IX amounting to P42,194.00.

31

6.1.6 Other Supplies and Materials Inventory

Office 2018 2017 Central Office P 413,605.80 P1,195,296.50 CAR 220,988.59 138,993.80 Region I 75,469.11 134,855.85 Region II 264,141.68 88,010.28 Region III 492,009.93 516,491.77 Region V 627,773.03 605,859.87 Region VI 8,308.26 222,866.50 Region VII 53,080.00 16,425.00 Region VIII 114,836.81 - Region IX 360,413.80 365,628.96 Region X 84,969.48 24,075.16 Region XI 57,164.00 67,320.00 Region XII 1,029,195.86 985,458.61 Region XIII 189,462.76 328,548.90

Total P3,991,419.11 P4,689,831.20 6.2 Semi-Expendable Machinery and Equipment

Accounts 2018 2017 Semi-Expendable Office Equipment P 5,464,697.00 P 5,907,165.84 Semi-Expendable ICT Equipment 20,298,880.59 21,432,977.72 Semi-Expendable Communications Equipment 565,778.00 864,628.33 Semi-Expendable Disaster Response and Rescue

Equipment 51,380.00 36,130.00

Semi-Expendable Medical Equipment 15,887.50 9,835.00 Semi-Expendable Sports Equipment 193,646.25 253,754.50 Semi-Expendable Other Machinery and Equipment 1,091,975.32 1,858,783.68 Total P27,682,244.66 P30,363,275.07

6.2.1 Semi-Expendable Office Equipment


NCR P1,167,663.84 P1,000,764.35 CAR 12,899.75 65,089.00 Region I 178,324.75 113,524.75 Region II 599,537.02 375,807.75 Region III 67,458.00 73,324.00 Region IV-A 4,845.66 31,800.00 Region IV-B - 55,945.00 Region V 971,214.65 708,424.65 Region VI 21,180.00 163,547.50 Region VII 675,882.19 731,326.30 Region VIII 585,163.22 578,669.12 Region IX 1,014,388.92 1,235,819.97 Region XI 71,358.00 439,066.70 Region XII 52,471.00 220,849.00 Region XIII 42,310.00 113,207.75

Total P5,464,697.00 P5,907,165.84

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6.2.2 Semi-Expendable ICT Equipment


NCR P 510,993.23 P 545,655.18 CAR 198,144.00 116,151.00 Region I 374,933.00 - Region II 5,793,468.74 1,302,194.54 Region III 226,863.60 98,660.40 Region IV-A 230,648.66 1,021,975.96 Region V 1,072,440.42 1,160,860.42 Region VI 363,229.28 221,729.28 Region VII 4,118,479.14 3,435,805.02 Region VIII 3,587,942.15 3,340,922.92 Region IX 3,221,744.62 2,469,718.55 Region XI 342,987.00 441,396.40 Region XII 241,626.75 6,757,148.05 Region XIII - 451,660.00 Subtotal 20,283,500.59 21,363,877.72

Trust Fund Region II 7,600.00 - Region VII 7,780.00 69,100.00 Subtotal 15,380.00 69,100.00

Total P20,298,880.59 P21,432,977.72

6.2.3 Semi-Expendable Communications Equipment


NCR P 74,485.00 P - CAR - 14,267.00 Region I 3,495.00 - Region III - 70,595.83 Region V 2,000.00 66,439.00 Region VII 255,405.00 273,602.50 Region VIII 200,394.00 193,524.00 Region IX 29,999.00 - Region XI - 238,400.00 Subtotal 565,778.00 856,828.33

Trust Fund Region VII - 7,800.00

Total P565,778.00 P864,628.33

6.2.4 Semi-Expendable Disaster Response and Rescue Equipment account for General Fund pertains to the year-end balance of Region VIII amounting to P51,380.00.

33

6.2.5 Semi-Expendable Medical Equipment


NCR P 3,600.00 P3,600.00 Region IX 12,287.50 6,235.00

Total P15,887.50 P9,835.00

6.2.6 Semi-Expendable Sports Equipment

Particulars 2018 2017 General Fund

NCR P 33,212.50 P 33,212.50 Region II 11,795.00 11,795.00 Region V 12,499.00 - Region VIII 77,898.00 193,187.00 Region IX 58,241.75 15,560.00

Total P193,646.25 P253,754.50

6.2.7 Semi-Expendable Other Machinery and Equipment


Central Office P 2,600.00 P - NCR 205,117.50 226,548.50 CAR - 56,450.00 Region I 35,455.00 - Region IV-A 17,632.14 504,673.75 Region IV-B - 49,686.00 Region V 396,655.01 440,797.76 Region VI - 16,199.50 Region VII 279,709.32 184,891.82 Region VIII 104,628.75 75,980.00 Region IX 19,664.00 - Region XI 27,953.60 254,540.35 Region XIII - 49,013.00

Subtotal P1,089,415.32 P1,858,780.68 Trust Fund

Region VII 2,560.00 - Total P1,091,975.32 P1,858,780.68

6.3 Semi-Expendable Furniture, Fixtures and Books

Account 2018 2017 Semi-Expendable Furniture and Fixtures P14,720,509.34 P17,244,056.86 Semi-Expendable Books - 9,569.50 Total P14,720,509.34 P17,253,626.36

34

6.3.1 Semi-Expendable Furniture and Fixtures


NCR P 3,528,532.05 P 3,812,210.25 CAR 238,170.00 609,720.00 Region I 208,600.00 208,600.00 Region II 1,244,338.50 402,821.50 Region III - 608,822.91 Region IV-A 5,039.50 1,654,795.00 Region IV-B - 136,345.00 Region V 521,836.10 726,738.21 Region VI 305,250.00 224,372.37 Region VII 3,948,325.15 2,333,742.25 Region VIII 892,418.88 1,432,293.88 Region IX 2,527,604.16 1,736,741.86 Region XI 195,561.75 1,040,356.58 Region XII - 1,316,608.05 Region XIII 664,533.25 846,749.00 ARMM - 146,940.00 Subtotal 14,280,209.34 17,237,856.86

Trust Fund Region VII 440,300.00 6,200.00

Total P14,720,509.34 P17,244,056.86

6.3.2 Semi Expendable Books


Region VII P - P3,729.00 Region IX - 5,840.50

Total P - P9,569.50

7 Property, Plant and Equipment

Particulars Total Land 2018 2017 2018 2017

Carrying Amount, January 1 P1,678,282,668.98 P1,260,027,366.25 P13,332,095.42 P13,313,095.42 Additions/Acquisitions 418,690,929.47 561,978,721.23 - 19,000.00 Totals 2,096,973,598.45 1,822,006,087.48 13,332,095.42 13,332,095.42 Disposals and other

movements (352,250,105.99) (58,135,725.75) - -

Depreciation (71,020,133.99) (85,441,535.79) - - Impairment Loss (124,547.36) (146,156.96) - - Carrying Amount,

December 31 (As per Statement of Financial Position)

1,673,578,811.11 1,678,282,668.98 13,332,095.42 13,332,095.42

Gross Cost 2,319,730,013.63 2,299,939,113.47 13,332,095.42 13,332,095.42 Less: Accumulated

Depreciation 646,090,909.30 621,621,224.10 - -

Allowance for Impairment 60,293.22 35,220.39 - - Carrying Amount,

December 31 P1,673,578,811.11 P1,678,282,668.98 P13,332,095.42 P13,332,095.42

35

Particulars Land Improvement Buildings and Other Structures 2018 2017 2018 2017

Carrying Amount, January 1 P 4,957,103.71 P 5,777,507.97 P 92,255,392.82 P 95,641,822.37 Additions/Acquisitions - - - 192,600.00 Totals 4,957,103.71 5,77,507.97 92,255,392.82 95,834,422.37 Disposals - (4,702.40) (192,600.00) (40,266.73) Depreciation (817,272.24) (815,701.86) (3,542,297.40) (3,538,762.82) Impairment Loss - - - - Carrying Amount,


4,139,831.47 4,957,103.71 88,520,495.42 92,255,392.82

Gross Cost 12,229,053.62 12,229,053.62 114,365,750.99 114,558,350.99 Less: Accumulated

Depreciation 8,089,222.15 7,271,949.91 25,845,255.57 22,302,958.17

Allowance for Impairment - - - - Carrying Amount,

December 31 P 4,139,831.47 P 4,957,103.71 P 88,520,495.42 P 92,255,392.82

Particulars Machinery and Equipment Transportation Equipment 2018 2017 2018 2017

Carrying Amount, January 1 P195,629,725.81 P219,410,044.78 P 95,769,208.96 P 42,855,659.58 Additions/Acquisitions 108,985,204.04 76,552,058.08 6,947,909.05 73,110,170.55 Totals 304,614,929.85 295,962,102.86 102,717,118.01 115,965,830.13 Disposals (22,571,018.99) (41,318,644.18) (2,086,930.98) (6,201,325.79) Depreciation (45,644,211.60) (58,867,890.99) (15,789,643.27) (13,995,295.38) Impairment Loss (121,135.64) (145,841.88) (3,411.72) - Carrying Amount,


236,278,563.62 195,629,725.81 84,837,132.04 95,769,208.96


Depreciation 418,936,168.95 410,436,249.55 144,672,536.60 132,982,860.07

Allowance for Impairment 56,881.50 35,220.39 3,411.72 - Carrying Amount,

December 31 P236,278,563.62 P195,629,725.81 P 84,837,132.04 P 95,769,208.96

Particulars Furniture, Fixtures and Books Lease Assets Improvements 2018 2017 2018 2017

Carrying Amount, January 1 P15,324,068.41 P25,649,532.50 P1,003,548.27 P1,190,367.63 Additions/Acquisitions 1,308,693.50 2,474,817.54 - - Totals 16,632,761.91 28,124,350.04 1,003,548.27 1,190,367.63 Disposals (2,845,623.75) (9,346,017.78) (246,342.36) - Depreciation (1,607,069.95) (3,454,263.85) (225,171.90) (186,819.36) Impairment Loss - - - - Carrying Amount,


12,180,068.21 15,324,068.41 532,034.01 1,003,548.27


Depreciation 16,434,819.20 18,899,363.38 1,317,751.54 1,273,469.28


December 31 P12,180,068.21 P15,324,068.41 P 532,034.01 P1,003,548.27

Particulars Construction in Progress Other Property, Plant and

Equipment 2018 2017 2018 2017

Carrying Amount, January 1 P1,241,950,635.77 P836,050,621.14 P18,060,889.81 P20,138,714.86 Additions/Acquisitions 300,106,051.64 405,900,014.63 1,343,071.24 3,730,060.43

36

Particulars Construction in Progress Other Property, Plant and

Equipment 2018 2017 2018 2017

Totals P1,542,056,687.41 P1,241,950,635.77 P19,403,961.05 P23,868,775.29 Disposals and other

movements (323,978,576.63) - (329,013.28) (1,224,768.87)

Depreciation - - (3,394,467.63) (4,582,801.53) Impairment Loss - - - (315.08) Carrying Amount,


1,218,078,110.78 1,241,950,635.77 15,680,480.14 18,060,889.81

Gross Cost 1,218,078,110.78 1,241,950,635.77 46,475,635.43 46,515,263.55 Less: Accumulated

Depreciation - - 30,795,155.29 28,454,373.74


December 31 P1,218,078,110.78 P1,241,950,635.77 P15,680,480.14 P18,060,889.81

7.1 Land

Office Amount General Fund Central Office P12,245,295.42 Region I 19,000.00 Region V 1,067,800.00 Total P13,332,095.42

7.1.1 Land account of Central Office represents the value and related costs of

PSA lot located in East Avenue, Diliman, Quezon City with a total area of 20,001 square meters as per TCT No. 40608.

7.1.2 Land account of Region V represents the value of lot situated in PSA

Sorsogon per TCT No. 083-2016000712.

7.2 Land Improvements

Office Cost Accumulated Depreciation

Carrying Amount

General Fund Central Office P 8,778,841.89 P5,346,464.19 P3,432,377.70 Region I 1,052,640.76 801,360.35 251,280.41 Region III 2,397,570.97 1,941,397.61 456,173.36

Total P12,229,053.62 P8,089,222.15 P4,139,831.47

7.3 Buildings and Other Structures


Carrying Amount

General Fund Central Office P 86,232,262.04 P19,215,620.36 P67,016,641.68 Region III 28,133,488.95 6,629,635.21 21,503,853.74

Total P114,365,750.99 P25,845,255.57 P88,520,495.42

37

7.4 Machinery and Equipment

Accounts Cost Accumulated Depreciation

Accumulated Impairment

Losses

Carrying Amount

Office Equipment P 97,793,832.78 P 55,176,475.74 P - P 42,617,357.04 ICT Equipment 551,133,245.17 361,108,819.34 56,881.50 189,967,544.33 Communication

Equipment 4,675,157.33 1,908,511.57 - 2,766,645.76

Medical Equipment 315,671.00 277,654.16 - 38,016.84 Sports Equipment 147,297.50 75,138.38 - 72,159.12 Technical and

Scientific Equipment

403,300.00 198,162.00 - 205,138.00

Other Machinery and Equipment

803,110.29 191,407.76 - 611,702.53

Total P655,271,614.07 P418,936,168.95 P56,881.50 P236,278,563.62

7.4.1 Office Equipment


Carrying Amount

General Fund Central Office P30,084,415.11 P13,585,503.12 P16,498,911.99 NCR 3,588,068.27 1,498,262.84 2,089,805.43 CAR 3,179,569.04 1,760,738.47 1,418,830.57 Region I 4,306,797.70 2,865,949.71 1,440,847.99 Region II 5,936,036.65 5,021,817.89 914,218.76 Region III 2,463,292.65 1,305,501.13 1,157,791.52 Region IV-A 3,316,866.13 2,816,664.75 500,201.38 Region IV-B 3,634,333.51 2,724,068.99 910,264.52 Region V 4,264,327.49 2,466,877.22 1,797,450.27 Region VI 5,300,194.10 3,475,963.18 1,824,230.92 Region VII 4,637,971.84 3,216,422.02 1,421,549.82 Region VIII 5,269,678.30 2,925,546.51 2,344,131.79 Region IX 3,809,591.50 2,137,945.59 1,671,645.91 Region X 2,248,558.50 827,148.21 1,421,410.29 Region XI 3,161,458.04 1,941,872.14 1,219,585.90 Region XII 5,862,734.42 2,695,901.43 3,166,832.99 Region XIII 3,006,906.00 2,310,603.20 696,302.80 ARMM 1,671,424.53 1,157,663.10 513,761.43 Subtotal 95,742,223.78 54,734,449.50 41,007,774.28 Trust Fund Central Office 702,386.00 57,037.46 645,348.54 Region V 424,591.00 146,070.31 278,520.69 Region VIII 670,024.00 142,167.27 527,856.73 CARAGA 254,608.00 96,751.20 157,856.80 Subtotal 2,051,609.00 442,026.24 1,609,582.76 Total P97,793,832.78 P55,176,475.74 P42,617,357.04

7.4.2 Information and Communication Technology (ICT) Equipment



Losses

Carrying Amount

General Fund

38



Losses

Carrying Amount

Central Office

P282,602,621.78 P187,042,451.65 P - P 95,560,170.13

NCR 25,563,704.61 10,749,189.45 - 14,814,515.16 CAR 11,509,577.29 6,957,681.15 - 4,551,896.14 Region I 23,460,928.81 20,633,079.61 - 2,827,849.20 Region II 13,517,735.74 9,126,495.28 - 4,391,240.46 Region III 17,557,766.30 10,147,483.91 - 7,410,282.39 Region IV-A 20,711,767.82 13,587,149.73 - 7,124,618.09 Region IV-B 12,611,377.63 8,286,407.07 - 4,324,970.56 Region V 21,811,527.13 17,237,212.82 - 4,574,314.31 Region VI 24,781,951.97 17,905,689.17 - 6,876,262.80 Region VII 18,270,192.35 14,796,469.11 - 3,473,723.24 Region VIII 13,589,907.47 7,551,426.99 56,881.50 5,981,598.98 Region IX 4,051,465.68 3,373,785.44 - 677,680.24 Region X 12,091,453.09 9,093,910.62 - 2,997,542.47 Region XI 9,789,324.80 6,282,782.02 - 3,506,542.78 Region XII 14,445,018.27 5,520,202.81 - 8,924,815.46 Region XIII 11,920,343.37 7,660,444.92 - 4,259,898.45 ARMM 5,425,589.06 3,018,065.08 - 2,407,523.98 Subtotal 543,712,253.17 358,969,926.83 56,881.50 184,685,444.84

Trust Fund Central Office 7,390,992.00 2,127,017.51 - 5,263,974.49 Region V 30,000.00 11,875.00 - 18,125.00 Subtotal 7,420,992.00 2,138,892.51 - 5,282,099.49 Total P551,133,245.17 P361,108,819.34 P56,881.50 P189,967,544.33

7.4.3 Communication Equipment


Carrying Amount

General Fund Central Office P1,976,903.54 P 437,805.05 P1,539,098.49 CAR 83,488.00 37,535.47 45,952.53 Region I 266,773.32 95,944.77 170,828.55 Region II 9,248.00 7,710.52 1,537.48 Region III 549,816.48 425,198.86 124,617.62 Region IV-B 68,367.20 46,852.50 21,514.70 Region V 145,690.00 83,286.03 62,403.97 Region VI 5,230.00 4,707.00 523.00 Region VII 317,642.76 246,653.54 70,989.22 Region VIII 298,453.60 98,766.02 199,687.58 Region IX 119,840.00 19,098.52 100,741.48 Region X 114,400.00 108,680.00 5,720.00 Region XI 114,352.00 65,227.23 49,124.77 Region XII 171,269.00 53,710.50 117,558.50 Region XIII 366,685.43 152,597.00 214,088.43 Subtotal 4,608,159.33 1,883,773.01 2,724,386.32

Trust Fund Region VIII 27,999.00 11,771.48 16,227.52 Region XIII 38,999.00 12,967.08 26,031.92 Subtotal 66,998.00 24,738.56 42,259.44

Total P4,675,157.33 P1,908,511.57 P2,766,645.76

39

7.4.4 Medical Equipment


Carrying Amount

General Fund Central Office P306,751.00 P277,654.16 P29,096.84 Region I 8,920.00 - 8,920.00

Total P315,671.00 P277,654.16 P38,016.84

7.4.5 Sports Equipment


Carrying Amount

General Fund Region I P 63,490.00 P18,094.66 P45,395.34 Region III 48,807.50 37,093.64 11,713.86 Region VIII 35,000.00 19,950.08 15,049.92

Total P147,297.50 P75,138.38 P72,159.12

7.4.6 Technical and Scientific Equipment account for General Fund - Cordillera Administrative Region pertains to the balance as of year-end with a carrying value of P205,138.00.

7.4.7 Other Machinery and Equipment


Carrying Amount

General Fund Central Office P295,750.00 P - P295,750.00 NCR 350,943.00 168,497.41 182,445.59 Region II 12,417.29 2,390.35 10,026.94 Region VIII 144,000.00 20,520.00 123,480.00

Total P803,110.29 P191,407.76 P611,702.53

7.5 Transportation Equipment

Accounts Cost Accumulated Depreciation


Losses

Carrying Amount

Motor Vehicles P229,442,880.61 P144,661,099.25 P3,411.72 P84,778,369.64 Other Transportation Equipment

70,199.75 11,437.35 - 58,762.40

Total P229,513,080.36 P144,672,536.60 P3,411.72 P84,837,132.04

7.5.1 Motor Vehicles



Losses

Carrying Amount

General Fund Central Office P35,844,024.86 P 20,782,903.19 P - P15,061,121.67 NCR 7,819,334.40 6,481,377.40 - 1,337,957.00 CAR 11,673,972.00 7,058,539.33 - 4,615,432.67

40



Losses

Carrying Amount

Region I P 10,812,892.23 P 6,456,570.72 P - P 4,356,321.51 Region II 10,745,933.28 6,775,624.62 - 3,970,308.66 Region III 16,468,713.60 9,504,910.21 - 6,963,803.39 Region IV-A 12,101,375.24 7,826,120.27 - 4,275,254.97 Region IV-B 11,007,112.80 6,300,972.88 - 4,706,139.92 Region V 14,044,766.00 8,909,321.87 - 5,135,444.13 Region VI 13,261,371.20 8,917,194.43 - 4,344,176.77 Region VII 12,910,858.80 8,498,417.02 - 4,412,441.78 Region VIII 13,272,087.10 8,391,329.27 3,411.72 4,877,346.11 Region IX 5,471,594.00 4,589,041.07 - 882,552.93 Region X 12,883,335.20 8,164,429.20 - 4,718,906.00 Region XI 10,603,336.00 6,635,639.34 - 3,967,696.66 Region XII 8,542,526.00 5,805,625.44 - 2,736,900.56 Region XIII 11,294,122.80 6,762,232.48 - 4,531,890.32 ARMM 10,685,525.10 6,800,850.51 - 3,884,674.59

Total P229,442,880.61 P144,661,099.25 P3,411.72 P84,778,369.64

7.5.2 Other Transportation Equipment account for General Fund pertains to the balance of Region VIII as of year-end with a carrying value of P58,762.4

7.6 Furniture, Fixtures and Books

Office Cost Accumulated Depreciation Carrying Amount

Furniture and Fixtures P28,567,708.91 P16,391,773.28 P12,175,935.63 Books 47,178.50 43,045.92 4,132.58 Total P28,614,887.41 P16,434,819.20 P12,180,068.21

7.6.1 Furniture and Fixtures


Carrying Amount

General Fund Central Office P10,289,517.63 P 8,496,255.58 P 1,793,262.05 NCR 740,009.58 242,808.02 497,201.56 CAR 625,867.98 232,169.04 393,698.94 Region I 1,728,970.61 1,092,248.64 636,721.97 Region II 773,661.81 615,759.12 157,902.69 Region III 754,719.79 533,048.43 221,671.36 Region IV-A 1,635,900.70 630,088.20 1,005,812.50 Region IV-B 929,245.71 282,223.54 647,022.17 Region V 2,441,534.55 1,516,486.76 925,047.79 Region VI 1,675,012.70 484,765.42 1,190,247.28 Region VII 593,333.00 364,500.42 228,832.58 Region VIII 912,875.00 567,043.94 345,831.06 Region IX 266,850.00 115,299.52 151,550.48 Region X 1,092,388.89 270,410.98 821,977.91 Region XI 178,979.00 51,423.54 127,555.46 Region XII 2,864,975.22 509,471.16 2,355,504.06 Region XIII 232,252.00 68,010.03 164,241.97

41


Carrying Amount

ARMM P 585,569.74 P 226,848.53 358,721.21 Subtotal 28,321,663.91 16,298,860.87 12,022,803.04

Trust Fund Region V 88,545.00 26,808.24 61,736.76 Region VIII 157,500.00 66,104.17 91,395.83 Subtotal 246,045.00 92,912.41 153,132.59

Total P28,567,708.91 P16,391,773.28 P12,175,935.63

7.6.2 Books


Carrying Amount

General Fund Central Office P45,000.00 P42,750.00 P2,250.00 Region V 1,867.00 - 1,867.00 Region XIII 311.50 295.92 15.58

Total P47,178.50 P43,045.92 P4,132.58

7.7 Leased Assets Improvements

Leased Assets Improvements - Buildings


Carrying Amount

General Fund Region I P 805,765.45 P 765,612.57 P 40,152.88 Region IV-A 950,020.10 533,534.72 416,485.38 Region IX 94,000.00 18,604.25 75,395.75

Total P1,849,785.55 P1,317,751.54 P532,034.01

7.8 Construction in Progress

Accounts Amount

Construction in Progress- Land Improvements P 31,958,021.74 Construction in Progress- Infrastructure Assets - Construction in Progress- Buildings and Other Structures 1,175,552,085.25 Construction in Progress- Leased Assets Improvements 10,568,003.79 Total P1,218,078,110.78

7.8.1 Construction in Progress- Land Improvements account is composed of the following:

Particulars Amount Solfio P. Jacinto & Ericvonne Construction Joint Venture -

Concrete retaining Wall P26,958,021.74

Solfio P. Jacinto & Ericvonne Construction Joint Venture - Drainage System

5,000,000.00

Total P31,958,021.74

7.8.2 Construction in Progress - Buildings and Other Structures account is composed of the following:

42

Particulars Amount General Fund

Central Office P1,167,316,033.61 Region I 130,000.00 Region II 8,106,051.64

Total P1,175,552,085.25

7.8.2.1 Construction in Progress - Buildings and Other Structures account General Fund of Central Office is shown on the next page:

Particulars Amount

Archion Architects - ESCA Incorporated, Joint Venture

P 70,856,033.61

Tokwing Construction 1,044,460,000.00 ESCA Incorporated 39,137,021.11 Department of Public Works and Highways (DPWH) 12,862,978.89 Total P1,167,316,033.61

7.8.2.2 Construction in Progress - Buildings and Other Structures account

General Fund of Region I pertains to the payment of Ilocos Sur for Architectural and Structural Design for building to be constructed.

7.8.2.3Construction in Progress - Buildings and Other Structures account of

Region II pertains to the liquidated portion of the amount advanced to DPWH RO2 for the construction of the PSA Regional Office amounting to P7,913,451.64 and the remaining balance pertains to the amount used for the installation of water lines and electricity needed for the construction. At year-end, the percentage of completion of construction has reached to 39.92 per cent accomplishment as per DPWH report.

7.8.3 Construction in Progress - Leased Assets Improvements account - Central

Office is composed of:

Particulars Amount Total Ventures Inc. P 10,568,003.79

7.8.4 Other movements for Construction in Progress pertain to derecognition of

Construction in Progress- Infrastructure Assets account

7.9Other Property, Plant and Equipment


Carrying Amount

General Fund Central Office P34,186,113.82 P22,421,905.73 P11,764,208.09 NCR 630,102.28 556,657.08 73,445.20 CAR 272,835.50 21,615.80 251,219.70 Region I 510,345.43 199,959.76 310,385.67 Region II 237,613.68 3,000.00 234,613.68 Region III 212,199.00 65,668.71 146,530.29 Region IV-A 1,005,654.42 705,549.34 300,105.08

43


Carrying Amount

Region IV-B 149,784.00 100,618.10 49,165.90 Region V 1,919,496.99 1,133,685.12 785,811.87 Region VII 685,618.57 512,429.03 173,189.54 Region IX 930,081.21 883,577.14 46,504.07 Region X 3,750,319.16 2,819,028.96 931,290.20 Region XI 1,148,580.07 999,790.02 148,790.05 Region XIII 136,812.00 117,501.07 19,310.93 ARMM 193,959.30 73,132.92 120,826.38 Subtotal 45,969,515.43 30,614,118.78 15,355,396.65

Trust Fund Central Office 222,120.00 84,405.60 137,714.40 Region V 284,000.00 96,630.91 187,369.09 Subtotal 506,120.00 181,036.51 325,083.49

Total P46,475,635.43 P30,795,155.29 P15,680,480.14

8. Intangible Assets Computer Software

Particulars Cost Accumulated Amortization

Net Carrying Amount

General Fund Central Office P50,296,116.01 P7,966,197.98 P42,329,918.03 Region XI 383,300.00 74,904.15 308,395.85 Region XIII 380,445.00 87,573.42 292,871.58 ARMM 232,440.00 - 232,440.00

Total P51,292,301.01 P8,128,675.55 P43,163,625.46

9. Other Assets

Account Current Non-Current 2018 2017 2018 2017

Advances P 1,655,258.20 P 3,620,688.57 P - P - Prepayments 27,730,243.54 236,926,754.24 171,408,995.86 - Deposits 2,485,028.88 2,479,171.74 70,000.00 - Other Assets - - 8,077,406.30 9,694,835.21 Total P31,870,530.62 P243,026,614.55 P179,556,402.16 P9,694,835.21

9.1 Advances

Particulars 2018 2017 Advances for Operating Expenses P 66,400.00 P 602,002.83 Advances for Payroll 68,617.20 1,981,166.93 Advances to Special Disbursing Officers 629,941.83 413,677.19 Advances to Officers and Employees 890,299.17 623,841.62 Total P1,655,258.20 P3,620,688.57

44

9.1.1 Advances for Operating Expenses account of General Fund is shown on

below:

9.1.1.1 Advances for Operating Expenses account of General Fund for Region VII pertains to the balance as of year-end, breakdown as follows:


Edwina M. Carriaga

Meals for ROHRMPSB interview of applicants on December 29, 2018. The CA was liquidated on January 18, 2019 with refund per OR No. 17810777 dated January 30, 2019

P14,250.00

Ann Emilyn Eballe

Meals for On-Boarding Program on December 26-27, 2018. The CA was liquidated on 18 Jan 2019 with refund per OR No. 17810778 dated January 30, 2019

7,150.00

Total P21,400.00

9.1.1.2 Advances for Operating Expenses account of General Fund -ARMM pertains to PSO-Maguindanao with the amount of P45,000.00 which remain unliquidated as of December 31, 2018.

9.1.2 Advances for Payroll account of General Fund consists of the following balances:

Office 2018 2017

General Fund Central Office P 42.20 P1,248,647.56 Region II - .01 Region III - 106,521.80 Region V - 59,558.73 Region VII 68,575.00 42,562.07 Region IX - 159,324.26 Region XIII - 342,688.50 Subtotal 68,617.20 1,959,302.93

Trust Fund RO XIII - 21,864.00

Total P68,617.20 P1,981,166.93

9.1.2.1 Advances for Payroll account for General Fund-Central Office pertains to the unexpended cash advance of Ms. Annabel L.

Particulars 2018 2017 General Fund

Central Office P - P411,146.08 Region VII 21,400.00 - ARMM 45,000.00 185,000.00 Subtotal 66,400.00 596,146.08

Foreign Assisted Project Fund Central Office - 5,856.75

Total P66,400.00 P602,002.83

45

Villa for the payment of overtime services of regular employees which was refunded on February 7, 2019 with OR No. 19592275.

9.1.2.2 Advances for Payroll account of General Fund of Region VII pertains to the BAC Honorarium granted to Ms. Lorna R. Chan which was not fully released as of December 31, 2018.

9.1.3 Advances to Special Disbursing Officers account consists of the

following balances:


Central Office P590,468.08 P 69,786.10 Region I - 304,238.09 Region II 25,000.00 20,000.00 Subtotal 615,468.08 394,024.19

Trust Fund Central Office 9,473.75 19,653.00 Region II 5,000.00 - Subtotal 14,473.75 19,653.00

Total P629,941.83 P413,677.19

9.1.3.1 Advances to Special Disbursing Officers account for General Fund - Central Office consists of the following balances:


Agustin S. Blanco Refund of unexpended cash advance for payment of expenses for 2018 Physical Wellness Activities with OR No. 19592251 dated January 22, 2019

P 74,686.00

Annabel L. Villa Refund of unexpended cash advance for payment of wages of various Job Order Personnel for the period of November to December 2018 with OR No. 19592264 dated January 29, 2019

460,620.77

Annabel L. Villa Refund of unexpended cash advance for payment of travelling and other miscellaneous expenses with OR No. 19592276 dated February 7, 2019

118.42

Oliver P. Chancoco Refund of unexpended cash advance for payment of miscellaneous expenses for the 2018 Year-End Organizational Update and General Assembly with OR No. 19592268 dated January 30, 2019

16,652.75

Severa B. De Costo Refund of unexpended cash advance for Training/Workshop on Standard Statistical Classification for LGUs with OR No. 19592230 dated January 10, 2019

38,390.14

Total P590,468.08

9.1.3.2 Advances to Special Disbursing Officer for General Fund of Region II pertains to cash advance granted for the use in the partnership and linkages activity of the office, re: Feeding program and gift giving at Simulation and Therapeutic Activity

46

Center (STAC) for children which remain unliquidated as of year-end.

9.1.3.3 Advances for Special Disbursing Officer account for Trust Fund

consists of the following balances:

Office Remarks Amount Central

Office Refund of unexpended cash advance for the 29th National Statistics Month (NSM) Working Group on Advocacy and Promotions as per S.O. 2018-09NS-1510A with OR No.19500447 dated January 30, 2019

P9,473.75

Region II Cash advance for the 29th National Statistics Month

P 5,000.00

Total P14,473.75

9.1.4 Advances to Officers and Employees account consists of the following balances:


Central Office P373,444.91 P330,355.58 Region I 16,000.00 - Region V 31,258.38 - Region VII 155,720.00 - Region IX 42,515.00 82,713.52 ARMM 271,360.88 210,772.52

Total P890,299.17 P623,841.62

9.1.4.1 Advances to Officers and Employees account for General Fund- Central Office consists of the following balances:

Particulars Amount Remarks Anthony B. Abalos

P 1,008.70 Refund of unexpended cash advance for payment of pre-departure allowance, meals, incidental expenses and international airfare

for official travel to Jakarta, Indonesia as per FTO No. 190-18 with OR No. 19592226 dated January 9, 2019.

Aurelia A. Alido

11,585.50 Traveling expenses incurred in Iloilo on Feb. 26, 2018 as per SO No. 2018-01NS-96. Demand letter with reference No.17FAS03-153 was issued last April 18, 2018 to liquidate outstanding cash advance.

Carole A. Blanco

2,125.45 Refund of unexpended cash advance re: incidental expenses for travel to Cusco, Peru as per FTO No. 181-18 with OR No. 19592237 dated January 11, 2019.

Carlo A. Garcia

48,251.87 Traveling expenses for ASEAN Data Visualization as per FTO No. 161-18. The amount was liquidated on January 14, 2019.

Divina Gracia L. Del Prado

948.85 Unexpended cash advance re: Traveling expenses for UNESCAP 6th Session of the Committee on Statistics as per FTO No. 162-18. The amount was not yet refunded.

47

Particulars Amount Remarks Edgar M. Fajutagana

P 26,593.55 Refund of unexpended cash advance for official travel to Canberra, Australia as per FTO No. 101-18 with OR No. 19592255 dated January 24, 2019.

Michelle P. Robles

71,854.66 Traveling Expenses for DSA re: Regional Workshop on Data and Metadata sharing and Exchange for Asian Countries on December 9-15, 2018 as per FTO No. 192-18. The amount was liquidated on January 23, 2019.

Ronaldo C. Taghap

51,204.38 Traveling expenses in connection with the fourth meeting of the Regional Steering Group for Civil Registration and Vital Statistics in Asia and the Pacific at Bangkok, Thailand as per FTO No. 174-18. The amount was liquidated on February 6, 2019.

Rudy C. Casiquin III

197.00 Refund of unexpended cash advance for traveling expenses in Vigan, Ilocos Sur as per SO No. 2018-10NS-1700 with OR No. 19592217 dated January 3, 2019.

Vivian R. Ilarina

111,423.08 Traveling Expenses for DSA re: 2nd Meeting of the Working Group on Measuring Sustainable Tourism on October 22-26, 2018 as per FTO No. 044-18. The amount was liquidated on January 30, 2019.

Von Jeric F. Adona

48,251.87 Traveling expenses for DSA re: Participation in the workshop on ASEAN Data Visualisation as per FTO No. 159-18. The amount was liquidated on January 17, 2019.

Total P373,444.91

9.1.4.2 Advances to Officers and Employees account for General Fund of Region VII pertains to the balance as of year-end which consists of travelling expenses of various employees that remain unliquidated as of December 31, 2018.

9.1.4.3 Advances to Officers and Employees account for General Fund-

Region IX consists of travelling expenses/per diem in attending regional planning workshop and general assembly:

Particulars Amount

Bonifacio E. Albino P 2,520.00 Jesus Normel R. Alfanta 2,040.00 Jether L. Amores 2,520.00 Camilo M. Bagsican 3,160.00 Helendrita P. Bagsican 2,520.00 Roxanne A. Berhay 1,920.00 Lerma D. Blen 1,120.00 Grace A. Codilla 1,340.00 Belinda B. Garcia 1,120.00 Yehrida S. Gulam 1,320.00

48

Particulars Amount Shelda B. Jikiri P 2,070.00 Shirley Ann Z. Juarez 2,040.00 Roxan Kastine M. Lumapas 1,920.00 Muslima A. Mahari 2,520.00 Rabia A. Nami 2,520.00 Michelle Grace C. Natividad 2,200.00 Criselda G. Pantasan 2,040.00 Leonila S. Quino 2,585.00 Frederick D. Talaver III 2,520.00 Daisy P. Yanos 2,520.00 Total P42,515.00

9.2 Prepayments

Account 2018 2017 Current Non-Current Current Non-Current

Advances to Contractors

P - P140,286,139.84 P193,103,128.35 P -

Prepaid Rent 25,105,780.63 30,551,494.49 41,579,191.78 - Prepaid

Registration 10,574.44 290,835.35 298,063.03 -

Prepaid Insurance

2,441,423.70 280,526.18 1,799,560.10 -

Other Prepayments

172,464.77 - 146,810.98 -

Total P27,730,243.54 P171,408,995.86 P236,926,754.24 P -

9.2.1 Advances to Contractor account of the General Fund - Central Office balance account is shown below:


MERALCO Bill deposit – Amparo Warehouse 62,740.00 MERALCO Meter deposit 10,720.00 J.D. Legaspi

Construction PSA-CVEA Service Facility 85,000.00

Tokwing Construction Corporation

15% advance payment for the construction of 23-storey PSA building less recoupment made by contractors

140,127,679.84

Total P140,286,139.84

9.2.2 Prepaid Rent account of General Fund consists of the following balances:

Office 2018 2017

Current Non-Current Current Non-Current Central Office P14,787,389.84 P30,551,494.49 P30,551,494.49 P - NCR 8,493,284.20 - 8,493,284.20 - CAR 307,400.00 - 1,083,772.00 - Region III 347,288.57 - 347,288.57 - Region IV-A 70,560.00 - 70,560.00 -

49

Office 2018 2017

Current Non-Current Current Non-Current Region V P 190,000.00 P - P 190,000.00 P - Region VI 559,893.00 - 558,547.50 - Region VIII 260,000.00 - - - Region XII 64,765.02 - 228,245.02 - Region XIII 25,200.00 - 56,000.00 - Total P25,105,780.63 P30,551,494.49 P41,579,191.78 P -

Prepaid Rent of the Central Office represents deposits/advances for office space rental in accordance with the lease contracts, breakdown is shown on the next page:


Eton Properties Philippines Inc. 16th& 17th Floor, Three Cyberpod Centris-North Tower, corner EDSA & Quezon Ave.

P25,382,053.25

Vibal Publishing House CRD-Quezon Ave. 4,082,978.40 Adriano Laquindanum CRD Warehouse 510,000.00 Jacala Metal Works Corp. CRD Warehouse 576,462.84 Total P30,551,494.49

9.2.3 Prepaid Registration account of General Fund consists of the following

balances:

Office 2018 2017 Current Non-Current Current Non-Current

Central Office

P - P290,835.35 P290,835.35 P -

Region II 4,458.12 - - - Region XIII 6,116.32 - 7,227.68 - Total P10,574.44 P290,835.35 P298,063.03 P -

Prepaid Registration account represents prepayments to Land Transportation Office for registration of former BAS vehicles and motorcycles.

9.2.4 Prepaid Insurance account of General Fund consists of the following

balances:


Central Office P1,189,606.38 P280,526.18 P1,047,994.31 P - NCR 8,299.19 - 9,145.79 - CAR 140,670.67 - 94,069.58 - Region I 72,465.26 - - - Region II 102,341.46 - 32,986.91 - Region V 315,963.16 - 112,932.42 - Region VI - - 3,286.64 - Region VII 30,811.98 - 21,776.89 - Region VIII 208,151.47 - 38,600.59 - Region IX 21,808.75 - 68,566.76 -

50


Region X 82,395.86 - 67,080.20 - Region XI P 78,643.67 P - P 34,652.37 P - Region XII 39,790.09 - 81,021.29 - CARAGA 147,663.95 - 187,446.35 - ARMM 2,811.81 - - - Total P2,441,423.70 P280,526.18 P1,799,560.10 P -

Prepaid Insurance of Central Office consists of premiums paid for insurance of government service vehicles and for fidelity bonds of Accountable Officers.

9.2.5 Other Prepayments account of General Fund consists of the following

balances:

Office 2018 2017 CAR P 24,000.00 P 24,000.00 Region II 720.00 720.00 Region VIII 18,000.00 18,000.00 Region IX - 32,060.86 Region X 31,500.46 72,030.12 CARAGA 98,244.31 - Total P172,464.77 P146,810.98

9.3 Deposits

Accounts 2018 2017 Current Non-Current Current Non-Current

Guaranty Deposits P2,461,528.88 P20,000.00 P2,426,171.74 P - Other Deposits 23,500.00 50,000.00 53,000.00 - Total P2,485,028.88 P70,000.00 P2,479,171.74 P -

9.3.1 Guaranty Deposits consists of the following:

Office 2018 2017

Current Non-Current Current Non-

Current General Fund

Central Office P - P20,000.00 P 20,000.00 P - CAR 1,240,980.00 - 1,240,980.00 - Region I 428,576.75 - 428,576.75 - Region II 1,800.00 - 1,800.00 - Region III 111,392.46 - 111,392.46 - Region IV-A 204,117.14 - 148,760.00 - Region XI 82,381.38 - 82,381.38 - Region XII 362,760.00 - 362,760.00 - Subtotal 2,432,007.73 20,000.00 2,396,650.59 20,000.00

Trust Fund Region XI 29,521.15 - 29,521.15 -

Total P2,461,528.88 P20,000.00 P2,426,171.74 P20,000.00

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Guaranty Deposits for Central office is forwarded balance from NSO prior to 1985. With letter to three utility companies, MERALCO, Maynilad and PLDT to identify and to determine the details of the deposit.

9.3.2 Other Deposits account of General Fund-Central Office is forwarded

balance in 2014, which represents deposit to Twin Hearts for gasoline expenses.

9.4 Other Assets

Other Assets account of General Fund represents the value of fully depreciated, obsolete and unserviceable properties awaiting final disposition with details below:


Central Office P7,305,454.86 P7,785,319.77 CAR 397,310.27 845,419.27 Region I 44,895.51 44,895.51 Region II 150.52 150.52 Region IV-B 322.52 322.52 Region V 51,070.25 51,070.25 Region VI 44,714.78 105,787.49 Region VII 19,578.85 19,578.85 Region IX - 530,189.70 Region XI 12,830.05 22,042.02 Region XIII 81,285.23 118,770.88 ARMM 119,793.46 171,288.43

Total P8,077,406.30 P9,694,835.21

10. Financial Liabilities

Accounts 2018 2017 Accounts Payable P958,373,931.16 P1,104,329,404.29 Due to Officers and Employees 2,426,158.43 482,580.58 Total P960,800,089.59 P1,104,811,984.87

10.1 Accounts Payable consists of the following balances:

Office 2018 2017

General Fund Central Office P957,778,806.60 P1,084,196,671.48 CAR - 3,186,445.43 Region I 245,679.21 583,720.00 Region IV-B 28,593.04 28,593.04 Region V - 8,192,107.91 Region VI 2,097.50 2,097.50 Region VII 12,825.00 3,570,492.73 Region VIII - 1,003,590.20 Region X 9,028.60 9,028.60 Region XII 105,341.14 3,293,739.00 Region XIII 189,090.57 262,918.40 Subtotal P958,371,461.66 P1,104,329,404.29

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Office 2018 2017 Trust Fund

Region VII 2,469.50 - Total Accounts Payable P958,373,931.16 P1,104,329,404.29

10.2 Due to Officers and Employees of consists of the following balances:


Central Office P2,393,153.50 P 57,713.77 Region I 1,860.24 755.58 Region III 34.93 - Region V 30,839.76 59,558.73 CARAGA 270.00 342,688.50 Subtotal 2,426,158.43 460,716.58

Trust Fund Region XIII - 21,864.00

Total P2,426,158.43 P482,580.58

11. Inter-Agency Payables

Account 2018 2017 Due to BIR P 92,430,568.22 P 13,223,136.86 Due to GSIS 209,014.09 231,534.23 Due to Pag-IBIG 526,466.19 301,327.29 Due to PhilHealth 12,361.89 292,299.95 Due to NGAs 50,122,170.65 38,769,807.82 Due to GOCCs - 304,534,185.24 Total P143,300,581.04 P357,352,291.39

11.1 Due to BIR

Office Remarks Amount

General Fund Central Office Remitted on January 10, 2019 P17,540,466.47 NCR 1,843,360.17 CAR Remitted on January 10, 2019 612,085.11 Region I 188,844.47 Region II Remitted on January 10, 2019 314,861.42 Region III Remitted on January 7, 2019 840,686.45 Region V 740,399.02 Region VI 764,867.47 Region XIII Remitted on January 8, 2019 260,517.75 ARMM Remitted on January 10, 2019 617,279.81


Central Office Remitted on January 5 &10, 2019 68,677,312.51 NCR 11,813.78 Region II Remitted on January 10, 2019 2,400.00 Region III Remitted on January 8, 2019 443.09 Region V 1,571.54

53

Office Remarks Amount Region VI P 4,587.47 Region IX Remitted on January 10, 2019 328.95 Region X 2,910.49 Region XII 5,832.25

Subtotal 68,707,200.08 Total P92,430,568.22

Due to BIR Accounts of Trust Fund - Central Office pertains to the documentary stamp tax and taxes withheld for the month of December 2018.

11.2 Due to GSIS

Office Remarks Amount

General Fund Central Office Remitted on January 9, 2019 P122,612.15 Region I 366.12 Region VII Remitted on January 10, 2019 291.62 Region VIII 1,857.44 Region IX Remitted on January 11, 2019 1,749.73 Region XIII Remitted on January 31, 2019 204.91 ARMM Remitted on January 22, 2019 81,932.12

Total P209,014.09

11.3 Due to Pag-IBIG pertains to year-end balance of CO which was remitted on January 7, 2019.


General Fund Central Office Remitted January 7, 2019 P526,458.73 Region VII Remitted January 22, 2019 7.46 Total P526,466.19

11.4 Due to PhilHealth pertains to year-end balance of CO which was remitted on

January 7, 2019.

11.5 Due to NGAs


Central Office P 9,612,978.89 ARMM 79,715.00


Central Office 40,257,798.51 Region II 12,864.25 Region III 158,814.00

Subtotal 40,429,476.76 Total P50,122,170.65

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Office Amount

12. Intra-Agency Payables

Particulars 2018 2017 Due to Central Office P21,589,886.17 P25,201,889.53 Due to Regional Offices 2,239,710.39 1,759,854.30 Due to Operating Units - 10,750.00 Total P23,829,596.56 P26,972,493.83

12.1 Due to Central Office

Office Amount Trust Fund

NCR P 2,807,647.47 CAR 217,118.00 Region I 7,735,451.38 Region II 469,502.35 Region III 3,026,198.34 Region IV-A 275,196.00 Region IV-B 310,326.82 Region V 343,541.63 Region VI 1,233,738.41 Region VII 583,886.75 Region VIII 995,840.98 Region IX 708,490.86 Region X 12,910.49 Region XI 936,927.87 Region XII 1,124,113.47 Region XIII 698,650.35 ARMM 110,345.00

Total P21,589,886.17

12.2 Due to Regional Offices


Region I P 505.76 Trust Fund

NCR 438,774.13 Region I 316,049.43 Region II 63,014.51 Region III 210.00 Region IV-A 40,000.00 Region V 39,953.00 Region VI 373,805.59 Region VII 310,058.07 Region VIII 125,689.00 Region IX 160,711.97 Region X 50,000.00 Region XI 145,818.80

55

Office Amount Region XII 64,775.13 ARMM 110,345.00

Subtotal P2,239,204.63 Total P2,239,710.39

13. Trust Liabilities

Account 2018 2017 Trust Liabilities P381,414,564.23 P303,022,133.18 Guaranty/Security Deposits Payable 39,747,383.87 4,373,923.48 Total P421,161,948.10 P307,396,056.66

13.1 Trust Liabilities account consists of various trust receipts of Central Office

collected for implementation of various projects/activities and amount collected as Guaranty/Security Deposits.

13.2 Guaranty/Security Deposits Payable account of Trust Fund consists of the

following balances:


Central Office P35,266,184.12 Trust Fund

Central Office 4,461,799.75 Region I 8,900.00 Region VII 10,500.00 Subtotal 4,481,199.75

Total P39,747,383.87

14. Other Deferred Credits

14.1 Other Payables


Central Office P2,390,120.05 CAR 830.79 Region I 3,498.34 Region II 514.54 Region IX 100.00 Region XIII 45.54 Subtotal 2,395,109.26

Trust Fund Central Office 1,086,666.00

NCR 158,555.17 CAR 60,400.00 Region I 67,800.00 Region II 15,705.00 Region III 126,588.38

56

Office Amount Region IV-A 53,165.46 Region IV-B 77,068.88 Region V P 117,191.50 Region VI 219,830.65 Region VII 85,110.13 Region VIII 538,022.45 Region IX 801.53 Region X 50,000.00 Region XI 40,000.00 Region XII 59,380.00 Region XIII 52,000.00 ARMM 50,000.00 Subtotal 2,858,285.15

Total P5,253,394.41

14.1.1 Other Payables account of General Fund – Central Office pertains to current salary deductions for Philippine Statistics Authority Employees Multi-Purpose Cooperative amounting to P2,390,120.05 remitted in January 2019.

14.1.2 Other Payables account of General Fund – CAR Regional Office

has other payable to agencies pertaining to current salary deductions for Census Provident Fund and Union of Statistics Employees amounting to P166.16 and P664.63 remitted in January 2019.

14.1.3 Other Payables account of General Fund – Region II amounting to P514.54 pertains to unremitted union dues from salary differential of those newly promoted employees at the regional office

14.1.4 The Other Payables balance is the Census Provident Fund contribution deducted from the salary differential for step increment of RD Rosalinda C. Apura was remitted on January 29, 2019.

14.1.5 Other Payables account of Trust Fund- Central office is composed of following:


Proceeds from sale of bid documents

Proceeds from sale of bid documents from various suppliers’ net of disbursements related to bidding.

P1,086,666.00

14.2 Deferred Credits/Unearned Income account pertains to COA Disallowance

charged to Mr. Allan G. Bruno for the loss of asset (mobile phone Nokia E 71) in the amount of P28,000.00. The said amount of P500.00 per month starting September 2018 and will continuously be deducted from his salary until fully paid.

15. Service and Business Income

Accounts 2018 2017

57

Accounts 2018 2017 Service Income

Registration Fees P 4,959,940.00 P 14,516,100.00 Clearance and Certification Fees P 800.00 P 1,320.00 Verification and Authentication Fees 1,611,019,184.90 1,327,989,773.16 Fines and Penalties - Service Income 30,474.99 - Other Service Income 20,581.44 19,486.48

Business Income Income from Printing and Publication 252,138.00 675,427.49 Sales Revenue 79,520.64 - Interest Income 52,543.63 1,132,496.78 Fines and Penalties - Business Income 285,879.82 187,086.00 Other Business Income 48,587,411.39 28,041,046.56

Total P1,665,288,474.81 P1,372,562,736.47

16. Shares, Grants and Donations

Account 2018 2017

Income from Grants and Donations in Kind P1,755,000.00 P556,092.75

17. Personnel Services

Accounts 2018 2017 Salaries and Wages P 805,560,153.10 P 666,603,538.47 Other Compensation 313,505,487.51 328,150,047.34 Personnel Benefit Contributions 111,992,229.32 92,224,168.81 Other Personnel Benefits 47,057,969.21 33,226,988.15 Total P1,278,115,839.14 P1,120,204,742.77

17.1 Other Compensation

Account 2018 2017 Personal Economic Relief Allowance

(PERA) P 53,614,726.09 P 47,648,641.16

Representation Allowance (RA) 12,493,812.14 12,247,288.00 Transportation Allowance (TA) 2,799,000.00 3,166,447.27 Clothing/Uniform Allowance 13,019,000.00 9,481,500.00 Productivity Incentive Allowance 440,500.00 - Honoraria 1,043,790.45 317,627.86 Longevity Pay 2,053,000.00 347,000.00 Overtime and Night Pay 30,663,352.91 36,355,588.14 Year End Bonus 30,385,716.44 108,441,160.17 Cash Gift 11,389,542.15 9,641,499.00 Other Bonuses and Allowances 55,603,047.33 100,503,295.74 Total P313,505,487.51 P328,150,047.34

17.2 Personnel Benefit Contributions

Account 2018 2017 Retirement and Life Insurance Premiums P 97,057,434.37 P80,401,902.16 Pag-IBIG Contributions 2,682,432.26 2,422,253.50 PhilHealth Contributions 9,598,382.18 7,002,185.64 Employees Compensation Insurance 2,653,980.51 2,397,827.51

58

Account 2018 2017 Premiums

Total P111,992,229.32 P92,224,168.81 17.3 Other Personnel Benefits

Account 2018 2017 Terminal Leave Benefits P19,128,525.42 P12,345,754.23 Other Personnel Benefits 27,929,443.79 20,881,233.92 Total P47,057,969.21 P33,226,988.15

18. Maintenance and Other Operating Expenses

Account 2018 2017 Travelling Expenses P 196,631,291.17 P 208,756,511.21 Training and Scholarship Expenses 263,931,286.71 313,933,407.84 Supplies and Materials Expenses 156,119,034.33 253,596,879.20 Utility Expenses 106,030,184.52 85,723,206.31 Communication Expenses 35,125,512.31 36,516,012.43 Awards/Rewards and Prizes 845,435.90 570,713.25 Survey, Research, Exploration and Development

Expenses - 39,000,000.00

Confidential, Intelligence and Extraordinary Expenses

3,907,077.32 3,419,566.31

Professional Services 8,153,895.00 69,801,851.63 General Services 555,250,392.95 568,057,880.78 Repairs and Maintenance 79,206,867.43 63,739,146.13 Taxes, Insurance Premiums and Other Fees 6,874,828.45 6,173,041.15 Labor and Wages 732.00 16,223.96 Other Maintenance and Operating Expenses 442,246,461.76 433,725,929.76 Total P1,854,322,999.85 P2,083,030,369.96

18.1 Traveling Expenses

Account 2018 2017 Traveling Expenses - Local P188,894,501.30 P197,559,501.43 Traveling Expenses - Foreign 7,736,789.87 11,197,009.78 Total P196,631,291.17 P208,756,511.21

18.2 Supplies and Materials Expenses

Accounts 2018 2017

Office Supplies Expenses P 56,944,134.99 P 69,766,606.61 Accountable Forms Expenses 66,483.36 27,586,962.20 Drugs and Medicines Expenses 29,626.60 136,351.19 Medical, Dental and Laboratory Supplies

Expenses 75,133.00 131,749.50 Fuel, Oil and Lubricants Expenses 17,516,691.89 12,961,271.31 Semi-Expendable Machinery and Equipment

Expenses 30,475,233.29 76,169,773.99

Semi-Expendable Furniture, Fixtures and Books Expenses

13,784,266.77 20,905,880.26

Other Supplies and Materials Expenses 37,227,464.43 45,938,284.14

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Accounts 2018 2017 Total P156,119,034.33 P253,596,879.20

18.3 Utility Expenses

Accounts 2018 2017

Water Expenses P 11,160,051.36 P10,200,724.88 Electricity Expenses 94,870,133.16 75,522,481.43 Total P106,030,184.52 P85,723,206.31

18.4 Communication Expenses

Accounts 2018 2017

Postage and Courier Services P 8,051,899.86 P10,286,725.63 Telephone Expenses 16,605,976.24 15,824,982.24 Internet Subscription Expenses 10,234,525.84 10,192,569.85 Cable, Satellite, Telegraph and Radio Expenses 233,110.37 211,734.71 Total P35,125,512.31 P36,516,012.43

18.5Awards/Rewards and Prizes

Accounts 2018 2017

Awards/Rewards Expenses P 76,500.00 P 10,000.00 Prizes 768,935.90 560,713.25 Total P845,435.90 P570,713.25

18.6 Professional Services

Account 2018 2017

Legal Services P1,036,928.00 P 1,040,944.49 Auditing Services 299,218.41 328,411.75 Consultancy Services - 16,637,740.85 Other Professional Services 6,817,748.59 51,794,754.54 Total P8,153,895.00 P69,801,851.63

18.7 General Services

Accounts 2018 2017

Environment/ Sanitary Services P 42,000.00 P 38,500.00 Janitorial Services 10,167,915.48 7,877,451.92 Security Services 81,736,891.94 83,079,827.70 Other General Services 463,303,585.53 477,062,101.16 Total P555,250,392.95 P568,057,880.78

18.8 Repairs and Maintenance

Accounts 2018 2017 Repairs and Maintenance - Buildings and

Other Structures P 1,620,774.87 P 1,672,958.70

Repairs and Maintenance - Machinery and Equipment

60,064,321.81 36,178,775.93

Repairs and Maintenance - Transportation Equipment

11,659,874.18 13,599,997.44

Repairs and Maintenance - Furniture and 900,872.04 917,864.70

60

Accounts 2018 2017 Fixtures

Repairs and Maintenance – Leased Assets 440,321.61 5,587.00 Repairs and Maintenance – Leased Assets

Improvements

4,106,667.51 11,047,513.78

Repairs and Maintenance-Semi-Expendable Machinery and Equipment

44,072.69 -

Repairs and Maintenance-Semi-Expendable Furniture, Fixtures and Books

40,000.00 -

Repairs and Maintenance - Other Property, Plant and Equipment

329,962.72 316,448.58

Total P79,206,867.43 P63,739,146.13

18.9 Taxes, Insurance Premiums and Other Fees

Accounts 2018 2017 Taxes, Duties and Licenses P 177,147.47 P 130,774.33 Fidelity Bond Premiums 2,468,048.32 2,193,920.54 Insurance Expenses 4,229,632.66 3,848,346.28 Total P6,874,828.45 P6,173,041.15

18.10Other Maintenance and Operating Expenses

Account 2018 2017

Advertising Expenses P 1,055,217.87 P 1,406,647.03 Printing and Publication Expenses 33,831,715.95 25,289,051.24 Representation Expenses 9,793,533.47 9,591,175.22 Transportation and Delivery Expenses 862,125.84 1,606,703.67 Rent/Lease Expenses 343,091,482.02 303,598,803.18 Membership Dues and Contributions to

Organizations 510,500.00 629,091.93 Subscription Expenses 657,193.23 452,668.97 Donations 440,573.66 1,537,790.22 Other Maintenance and Operating Expenses 52,004,119.72 89,613,998.30 Total P442,246,461.76 P433,725,929.76

19. Financial Expenses

Account 2018 2017

Bank Charges P386,000.00 P373,196.20 Other Financial Charges 26,151.49 12,841.27 Total P412,151.49 P386,037.47

20. Non-Cash Expenses

Account 2018 2017

Depreciation P71,020,133.99 P85,356,640.79 Amortization – Intangible Asset 316,411.37 10,679.00 Impairment Loss 124,547.36 303,205.02 Total P71,461,092.72 P85,670,524.81

20.1 Depreciation

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Account 2018 2017 Depreciation-Land Improvements P 817,272.24 P 815,701.86 Depreciation-Buildings and Other Structures 3,542,297.40 3,538,762.82 Depreciation-Machinery and Equipment 45,644,211.60 58,782,995.99 Depreciation-Transportation Equipment 15,789,643.27 13,995,295.38 Depreciation-Furniture, Fixtures and Books P 1,607,069.95 P 3,454,263.85 Depreciation-Leased Assets Improvements 122,961.00 186,819.36 Depreciation-Other Property, Plant and

Equipment 3,496,678.53 4,582,801.53

Total P71,020,133.99 P85,356,640.79

20.2 Impairment Loss

Account 2018 2017 Impairment Loss – Inventories P - P 54,735.40 Impairment Loss – Property, Plant and

Equipment 124,547.36 146,156.96 Impairment Loss – Other Assets - 102,312.66 Total P124,547.36 P303,205.02

21. Net Financial Assistance/Subsidy

Financial Assistance/Subsidy from NGAs, LGUs, GOCCs

Account 2018 2017 Subsidy from National Government P3,626,092,168.97 P3,318,389,948.22 Subsidy from Central Office 43,772,420.03 - Net Financial Assistance/Subsidy P3,669,864,589.00 P3,318,389,948.22

22. Non-Operating Income, Gain or Losses

Accounts 2018 2017 Non-Operating Income/Gain P 277,242.23 P 167,970.72 Non-Operating Losses 1,981,713.91 961,666.41 Miscellaneous Income 146,306.11 - Total P2,405,262.25 P1,129,637.13

22.1 Non-Operating Income/Gain

Account 2018 2017

Gain on Sale of Property, Plant and Equipment P 31,179.50 P105,373.28 Other Gains 246,062.73 62,597.44 Total P277,242.23 P167,970.72

22.2 Non-Operating Losses

Account 2018 2017 Loss on Sale of Property, Plant and Equipment P1,974,034.01 P904,928.01 Loss of Assets 7,679.90 56,738.40 Total P1,981,713.91 P961,666.41

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OBSERVATIONS AND RECOMMENDATIONS

Financial Audit

Accounting Errors 1. Accounting errors/omissions were noted in the recording of transactions and

classifying of accounts that affected the accuracy of reported account balances.

Section 15, Chapter 2, Volume I, Government Accounting Manual (GAM) states that the Financial Statements (FSs) shall present fairly the financial position, financial performance, and cash flows of the entity. Fair presentation requires faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, revenues and expenses set out in PPSAS. The application of PPSAS, with appropriate disclosures, if necessary, would result in fair presentation of the FSs.

Review and verification of the FSs and supporting documents/schedules

of the Philippine Statistics Authority (PSA) Central Office (CO) and Regional Offices (ROs) disclosed accounting errors/ommissions as shown in Table 1.

Table 1. Summary of Accounting Errors/Omissions

Accounting Errors Accounts Affected Amount of Misstatement

Effects on the Account Criteria

a. Stale checks not cancelled (RO IV-A and RO IV-B)

Cash-in-Bank Accounts Payable

216,728.20 216,728.20

Understated Understated

Section 44,-45, Vol. 1, GAM

b. Outstanding checks/ADA not reverted to cash accounts (RO II, VI and XIII)

Cash-in-bank Accounts Payable

1,380,380.66 1,380,380.66


Section 44, Chapter 6, Vol. I, GAM

c. Asset falling below capitaliza-tion threshold of P15,000.00 not properly reclassified to semi-expendable property (RO VI and XII)

Semi-expendable – Information and

Communication Technology Equipment (ICTE)

Office Equipment ICT Equipment Office Supplies and

Materials Inventory

19,315.00

19,050.00 51,544.91 89,909.91

Understated


Overstated


d. Supplies and materials purchased for inventory directly recorded as expense (CO and RO II)

Other Supplies and Materials Expense Inventory

324,645.96 324,645.96

Overstated Understated

Sections 9 and 15, Chapter 8, GAM, Vol. I

e. Obligations misclassified as accounts payable (RO V)

Accounts Payable Due to Officers and Employees Other Payables Due to GSIS

4,559,926.35

2,039,159.51 198,000.00 838,122.05

Overstated

Understated Understated Understated

Section 112, PD 1445, Volume III, GAM

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Due to Pag-IBIG Due to Philhealth Due to BIR Due to NGAs Due to GOCCs Due to LGUs

46,016.01 44,011.63 41,870.50

1,335,598.81 15,147.84 2,000.00

Understated Understated Understated Understated Understated Understated

(CO) Accounts Payable Cumulative Results of Operations – Unappropriated (CROU)

956,486,907.34 956,486,907.34


Section 3.2 of COA Circular 99-004 dated Aug 17, 1999

f. Duplicate/double recording of transactions

Due to Officers and Employees Traveling Expenses Representation

Expenses Office Supplies

Expenses Other Supplies

Expenses

16,580.00

3,136.58 1,965.00

2,925.00

8,553.42

Overstated


Understated

Understated

Section 7, Chapter 19, Volume 1, GAM

g. Misclassification of transactions to appropriate accounts (CO and RO VII)

Accounts Payable Due from Officers and Employees

1,248,890.73 1,248,890.73


Chapter 3, Volume III, GAM -Description of Accounts

Advances for Operating Expenses Advances to Special Disbursing Officers

21,400.00 Overstated

Understated 21,400.00

h. Non-recognition of audit disallowance which has become final and executory (CO)

Receivables – Disallowances and Charges Accumulated Surplus/(Deficit)

26,524,249.93 Understated Chapter 3, Vol. III, GAM, -Description of Accounts

26,524,249.93 Understated

i. Non-recognition of monthly salary deductions

Due to BIR Due to GSIS Due to Pag-IBIG Due to Philhealth Receivables- Disallowances and Charges Salaries and Wages - Regular

71.970.39 51.118.65

1000.00 5,368.35

463,527.61

592,985.00

Understated Understated Understated Understated Understated

Understated

Section 7, Chapter 19, Volume 1, GAM

j. Unrecorded PPE due to non-issuance of PAR NCR

Accumulated Surplus/(Deficit) ICT Equipment

23,888.88

23,888.88

Overstated

Understated

Section 42 (a), Chapter 10, Vol. I, GAM

k. Disposed unserviceable PPE still recorded in the books (NCR and CO)

ICT Equipment Furniture & Fixtures Donations

2,486,276.70 18,000.00

2,504,276.70

Overstated Overstated

Understated

Sec 38, Chapter 10, Vol, GAM; Appendix 71

l. Liability account not recognized on land acquired through conditional deed of sale* (RO V)

Accumulated Surplus/(Deficit) Other Deferred Credits

1,067,800.00 1,067,800.00

Overstated

Understated

Section 13, Chapter 10, Vol.I, GAM

m. Non-recognition of depreciation expense of PPE (RO XII)

Office Equipment ICT Equipment

174,450.00 217,450.00 391,900.00

Overstated Overstated

Understated


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Depreciation Expense

n. Unreliable Motor Vehicles account due to erroneous computation of residual value (RO IX)

Motor Vehicle Accumulated

Depreciation

51,168.29 Overstated 51,168.29 Understated

*No additional Information was submitted by RO V & RO XII

The above-cited errors in recognition and reporting financial transactions had affected the accuracy of the recorded account balances.

We recommended and Management agreed to direct the Accountant

of CO and concerned ROs to prepare the necessary journal entries to correct the noted errors, and henceforth, observe the proper recording of accounts and transactions in accordance with the GAM and other existing accounting rules and regulations.

Accounting Deficiencies

2. The accuracy and completeness of the reported asset accounts could not be

ascertained due to various accounting deficiencies.

a. Unreconciled difference between the Accounting and the Property and Supply records- P68.995 million and P9.811 million

Comparison of Accounting and Property records on Property, Plant and

Equipment and Inventories disclosed differences in amounts totaling P68.995 million and P9.811 million which is not in accordance to Section 42, Chapter 10 and Section 9, Chapter 8, of Volume 1, GAM, respectively, as shown in Table 2.

Table 2. Comparative Summary of Deficiencies

Office GL RPCPPE Variance Remarks a. GL and Report on the Physical Count of Property, Plant and Equipment (RPCPPE) CO P403,650,845.74 P360,748,897.13 P42,901,948.61 The reasons, among

others, for the discrepancy were due to non-conduct/ completion of physical inventory of PPE and periodic reconciliation of accounting and property records.

CAR 7,169,435.52 7,611,862.62 (442,427.10) RO III 5,037,995.61 5,039,302.01 (1,306.40) RO IVA 9,891,794.68 10,037,006.50 (145,211.82) NCR 25,563,704.61 22,615,036.33 2,948,668.28 RO V 44,879,975.76 42,582,288.08 2,297,687.68 RO VI 8,519,173.68 1,827,017.69 6,692,155.99 RO IX 14,743,422.39 - 14,743,422.39 Total P519,456,347.99 P450,461,410.36 P68,994,937.63 b. GL and the Report on the Physical count of Inventories (RPCI)

Office GL RPCI Variance Remarks RO III P 138,590.77 P 26,674.62 P 111,916.15 The reasons, among

others, for the discrepancy were due to

RO IV-A 728,166.04 292,256.63 435,909.41 RO VI 472,922.52 518,431.89 (45,509.37)

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Office

GL RPCI Variance Remarks

RO IX P9,196,406.02 P 22,599.50 P9,173,806.52 non-conduct/ completion of supplies and materials and periodic reconciliation of accounting and property records.

RO XIII 1,265,136.42 1,130,631.94 134,504.48

Total P11,801,221.77 P1,990,594.58 P9,810,627.19

b. Dormant Account Due from Local Government Units (LGUs) In RO III, the account Due from Local LGUs amounting to P71,192.00

remained dormant for more than two decades due to the non-availability of necessary record/documents for their write-off causing non-compliance with COA Circular No. 2016-005 dated December 19, 2016.

The account represented fund transfers granted by the PSA RO III to local

government unit for the implementation of the survey on Minimum Basic Needs (MBN) which remained non-moving since 1991. No records/documents regarding the account were turned over to the current regional accountant.

Management served confirmation letters to concerned LGUs and filed a

request for authority to write-off the dormant account in December 2017. However, sent confirmation letters were required to be revised by the audit team but management has not complied up to now.

c. Non-elimination of reciprocal accounts (Intra-agency Receivables/Payables)

Accounting practice dictates that reciprocal accounts should be reconciled

and balances eliminated at the end of the accounting period to reflect complete recording of transactions and present the true financial position and performance of the agency. Thus, these reciprocal accounts should have zero balance after elimination.

In the consolidation of financial statements, balances, transactions,

revenues, and expenses between entities within the economic entity shall be eliminated in full.1

In the process of consolidation, the CO Chief Accountant shall eliminate

the reciprocal accounts between the CO and the ROs and Provincial Offices/Operating Units, if any.2

Intra-agency receivables (Due from Regional Offices and Operating

Units) represent the balances of amount transferred to regional and provincial

1 Section 8. Chapter 20, Government Accounting Manual 2 Item 3.2.3, Government Accounting and FMIS Circular Letter No. 2003-007 dated December 19, 2003

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statistical service offices by the CO and regional statistical service offices for the payment of expenses in the implementation of various projects charged against the agency. This account is credited upon receipt of goods/services and liquidation of the funds/receivable.

Intra-agency payables (Due to Central Office and Due to Regional Offices) recognize the receipt of funds from CO and ROs of PSA for the implementation of programs and projects by the regional and provincial offices. This account is debited for liquidation of funds received for settlement of liabilities.

As at year-end, the balances of the subject intra-agency accounts are shown in Table 3.

Table 3. Unreconciled Intra-Agency Accounts

Accounts Debit Credit Due from Regional Offices/Staff Bureaus P77,817,051.49 Due from Operating Units 12,979,496.85

Due to Central Office P21,589,886.17

Due to Regional Offices 2,239,710.39 Total P90,796,548.34 P23,829,596.56

We noted in CY 2018 that liquidation reports, expenses and refund of the unexpended balance of the various projects were properly recognized in the accounts. However, for prior years’ the OIC-Chief Accountant was not able to recognize the liquidation reports of the ROs and POs. This was due to the absence of any information that the liquidation reports have been post-audited by the respective regional auditors. Despite the issuance COA Circular 2016-002 dated May 31, 2016, amending COA Circular 2012-001 dated June 14, 2012, where certification of Auditor that liquidation reports have been post audited is no longer required, these fund transfers remained unliquidated in the books of accounts.

Inquiry with the Accountant disclosed the balances of the reciprocal accounts pertained to the periods from 2001 to 2015, for the payment of salaries, wages, and travelling expenses including per diem of statistical research personnel and enumerators assigned at the ROs and POs.

The Analysis of the Effect of Misstatements on the Financial Statements is shown in Annex B.


a) Require the Accountant and Property/Supply Officers in CO and

concerned ROs to reconcile their respective records, and effect the

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necessary adjustments/corrections in their respective books of accounts and property records;

b) Require the Regional Accountant to prioritize the submission of the revised confirmation letters and file the request for the write-off of the dormant account in compliance with COA Circular No. 2016-005 dated December 19, 2016;

c) The Accountants and bookkeepers of the regional and provincial offices to submit certification to the CO OIC-Chief Accountant that the funds transferred have been liquidated and accounted for in the books together with the Report of Disbursements; and

d) The OIC-Chief Accountant of the CO to monitor and recognize

the liquidation and refund of excess amount of the fund transfers, and reconcile and eliminate the intra-agency receivables and payables of prior years in consonance with the accounting practice rules and regulations.

Unreconciled fund transfers to the PS-DBM - P27.841 million

3. The balance of Due from NGAs of P63.963 million does not reconcile with

the balance per Agency Summary of Payments and Deliveries of the PS-DBM of P36.122 million or a difference of P27.841 million.

Executive Order (EO) No. 40, s. 2001, provides that common-use

supplies, materials and equipment shall be procured from the Procurement Service–Department of Budget and Management (PS-DBM).

The agency procures its common-use supplies, material, and equipment

from the PS in line with the national policy that procurement of government supplies and material by government agencies shall be through the PS-DBM. The funds needed therefore are paid in advance to the PS and recognized in the books of accounts as Due from NGAs. Thus, the account Due from NGAs is debited for amounts advanced and credited for deliveries of supplies and materials.

The variance between the books of the agency and PS-DBM totaled

P27.841 million, as shown in Table 4. Table 4. Comparative Analysis of Balances of Due from NGAs – PS-DBM

Per Books Per PS Confirmation Difference CO

PS-DBM General Fund P62,263,663.92 PS-DBM Trust Fund 78,988.52 P36,104,462.80 P27,742,681.95 Airplane tickets 1,504,492.31

NCR PS-DBM General Fund 116,684.76 18,178.23 98,506.53 Total P63,963,829.51 P36,122,641.03 P27,841,188.48

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The difference is composed of supplies and materials based on various

Agency Procurement Requests that have remained undelivered for long time, even before the merger of statistics offices to PSA.

In CO, results of confirmation from the PS-DBM showed a balance of

P36.104 million or a difference of P27.743 million. We observed that recording/posting in the books of deliveries of supplies and materials amounting to P41.139 million was not immediately done due to delay in the submission by the General and Supply Division (GSD) of the Delivery Receipts (DR) and their supporting documents to the Accounting Division.

Further, PS-DBM delivered the goods on separate dates within the year,

however, deliveries were recorded in the books only in December 2018. Inquiry with the Accountant disclosed that the DRs were submitted in bulk causing the delay in recognition in the books.

In NCR, detailed analysis also showed that the beginning balances of the

agencies were not reconciled, showing a difference of P18,279.58. Further misposting of the delivery receipts occurred in the ledger of the POs and ROs.


a) Instruct the OIC- Accountant to reconcile their records with the PS-

DBM on a regular basis.

b) Utilize the balance of the account by charging current procurement to reduce the balance of the account with PS or demand for the refund for the value of all undelivered items; and

c) Require the Supply Officer to submit regularly to the Accounting

Division all the DRs and its supporting documents of the delivery for all supplies and materials in order to properly record on time the deliveries from PS-DBM in the books.

Compliance Issues Unliquidated Funds Transferred to Other Agencies 4. Funds transferred by the PSA CO and RO V to other NGAs totaling P28.993

million remained unliquidated at year-end, contrary to Section 4.6 of COA Circular No. 94-013, thus the appropriate expenses incurred for the period could not be properly accounted for.

Section 4.6 of COA Circular No. 94-013 dated December 13, 1994,

requires the Implementing Agency (IA) to submit within 10 days after the end of

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each month or end of the agreed period for the Project, Report of Checks Issued (RCI) and Report of Disbursements (RD) to report the utilization of the funds.

Section 5.4 of the same COA Circular requires that, among others, the

Source Agency (SA) shall require the IA to submit the reports and furnish the IA with a copy of the journal voucher taking up the expenditures.

Analysis of the Due from NGAs account of the CO and ROs revealed that

funds transferred by the PSA CO and RO V to various agencies totaling P28.993 million remained unliquidated as of December 31, 2018, details are in Table 5.

Table 5. Summary of Unliquidated Fund Transfer to Other NGAs

Source Agency Implementing Agency

Amounts (in Million) Purpose Fund

Transfer Liquidation Balance

PSA – CO

Philippine Statistical Research and Training Institute (PSRTI)

P 6.720 P - P 6.720 Conduct Family Income Expenditure Survey (FIES)

Civil Service Commission (CSC)

28.916 7.538 21.378 Functional Learning and Development Program for PSA personnel

DPWH - UPMO-BUMC Personnel

0.300 - 0.300 Salaries/wages of DPWH personnel assigned at the construction of the PSA building

Bureau of Agricultural Statistics (BAS)

0.108 - 0.108 Supplies and materials from PS-DBM

National Statistics and Coordination Board (NSCB)

0.211 - 0.211 Supplies and materials from PS- DBM

PSA RO V

RO V DPWH 0.276 - 0.276 Soil Exploration Project

Total P36.531 P7.538 P28.993

In RO V, based on the Memorandum of Agreement (MOA) entered into by and between the PSA RSSOV and the DPWH executed on December 11, 2017, the Soil Exploration Project of P275,641.69 should have already been completed; however, liquidation reports have yet to be submitted as of December 31, 2018.

We recommended and Management agreed to monitor and demand

from the implementing agencies concerned (PSRTI, CSC and DPWH) to submit the RCI and RD to report on the utilization of the funds transferred to them and return unused balance, if any; and

We also recommend that Management direct the accountant to

analyze the outstanding subsidiary ledger fund balances of the BAS and NSCB considering that these agencies were already merged with the NSO/PSA and coordinate to the PS-DBM to determine the status of these fund transfers.

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Non-disposal of unserviceable assets

5. Unserviceable assets totaling P5.611 million in five ROs were not disposed of

for several years now, resulting in further deterioration, incurrence of additional storage cost, and loss of opportunity to earn additional income from sale thereof.

Section 79 of PD No. 1445 states that “when government property has

become unserviceable for any cause, or is no longer needed, it shall, upon application of the officer accountable therefor, be inspected by the head of the agency or his duly authorized representative in the presence of the auditor concerned and, if found to be valueless or unsalable, it may be destroyed in their presence.”

In addition, EO No. 309, series of 1996 provides the need to expedite the

disposal of unserviceable equipment and property of the government to avoid further deterioration, especially those exposed to elements.

Table 6. Undisposed Unserviceable PPE

RO Amount RO III P1,254,558.64 RO V 1,155,250.14 RO VI 2,054,178.71 RO VIII 814,452.39 RO XIII 332,707.60 Total P5,611,147.48

Immediate disposal of said unserviceable properties would reduce rental

cost of the warehouse, and possible additional income to the agency from sale thereof.

We recommended and Management agreed to require the Property

Officers of the ROs to:

a) Conduct full inventory and inspection of all unserviceable assets and prepare the corresponding Inventory and Inspection Report of Unserviceable Property; and

b) Cause the immediate disposal of all unserviceable assets by either

destruction, donation or sale, and submit the complete documents to the Accountant for de-recognition in the books of accounts.

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Unreverted Accounts Payable 6. Accounts Payable of P1.017 million which remained outstanding for two

years was not reverted to Accumulated Surplus/(Deficit) account, contrary to PD No. 1445 and DBM-COA Joint Circular 99-6 dated November 13, 1999.

Section 98, Title II, Chapter 4, PD No.1445 states that, “The Commission, upon notice to the head of agency concerned, may revert to the unappropriated surplus of the general fund of the national government, any unliquidated balance of accounts payable in the books of the national government, which have been outstanding for two years or more and against which no actual claim, administrative or judicial, has been filed or which is not covered by perfected contracts on record.”

Further, Section 3.1 of DBM-COA Joint Circular No. 99-6 provides that all

documented A/Ps of all funds which have remained outstanding for two years shall be reverted to the Cumulative Results of Operations – Unappropriated, now Accumulated Surplus/(Deficit), except on-going capital outlays projects.

Verification of Accounts Payable with a year-end balance of P957.778

million, and the related schedule and supporting documents disclosed that the account included P1.017 million payables aged two years and above which were not reverted yet reverted to the Accumulated Surplus as required under existing rules and regulations. Details are shown in Table 7.

Table 7. Summary of Accounts Payable over Two Years

Name of Creditor Amount Development Academy of the Philippines P 335,216.00 Development Academy of the Philippines 245,280.00 First One Kitchen Equipment Services 36,645.00 U.S.A. Development Corporation 399,420.00 Total P 1,016,561.00

We recommended and Management agreed to revert to Accumulated

Surplus/(Deficit) account all Accounts Payable aged two years and above, pursuant to Section 98 of PD No. 1445 and DBM-COA Joint Circular No. 99-6.

Non-conduct of physical count of PPE and Inventories

7. There were lapses noted in property management such as: (i) non-conduct

of physical count of inventories and PPE; (ii) non-maintenance/updating of supplies and PPE ledger cards, and Stock Cards; (iii) non-preparation and submission to Property and Accounting of RIS and RSMI; and (iv) non-updating of PAR as required under existing rules and regulations.

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Review of Inventory and PPE accounts with total balances of P16.983 million and P68.991 million, respectively in ROs IV-A, VI, VIII, XII and XIII revealed the following deficiencies in property management.

Table 8. Deficiencies in Property Management

Deficiencies Criteria Non-conduct of physical count of Inventories and PPE RO VI, VIII, XII and XIII

Section 38, Chapter 10, Vol. I GAM

Non-maintenance/non-updating of PPE ledger cards and Property Cards (RO VI, XII & XIII )

Para. 3, Sec 13, Chapter 8, Vol. I GAM

Non-renewal of Property Acknowledgement Receipt (PAR) RO VI


Non-preparation/non-submission of Requisition Issue Slip (RIS) and Report of Supplies and Materials Issued (RSMI)


Non-maintenance/non-updating of Stock Cards and Supplies Ledger Cards (RO IV-A, VI, & XIII)


Consequently, the RPCPPE and RPCI were not submitted to the Audit

Team of the regions, thus the accuracy and completeness of the balance per books could not be ascertained nor reconciled with the result of the actual count.

We recommended that Management require:

a) The Inventory Committee of ROs VI, VIII, XII and XIII to conduct

physical count of Inventory and PPE, prepare the RPCPPE and RPCI and submit the said reports duly signed by the Inventory Committee to the Resident Auditor on the set date;

b) The Accounting and Property personnel of ROs IV-A VI, VIII, XII and XIII to maintain/update PPE and supplies ledger cards, and stock cards, respectively; and

c) The Property Officer of concerned ROs to submit to the Accounting

Division the RSMI as basis for recording the issuances, and prepare/update the PAR.

Delay in Liquidation of Cash Advances 8. Advances to Special Disbursing Officers (SDO) and Advances to Officers &

Employees totaling of P122,549.89 and P150,748.08, respectively, remained unliquidated as of December 31, 2018 which is not in compliance with Section 4.1.2, 5.1.2 and 5.1.3 of COA Circular No. 97-002 dated February 10, 1997 and reiterated under COA Circular No. 2012-004 dated November 28, 2012.

Section 4.1.12 of COA Circular No. 97-002 provides that “no additional cash advances shall be allowed to any official or employee unless the

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previous cash advance given to him is first settled or a proper accounting thereof is made”. The Accountable Officer (AO) shall liquidate his cash advance as follows:

a. Petty Operating Expenses and Field Operating Expenses – within twenty (20) days after the end of the year; subject to replenishment as frequently as necessary during the year.

b. Official Travel - within 60 days after return to the Philippines in the

case of foreign travel or within 30 days after return to his permanent official station in the case of local travel, as provided for in EO 248 and COA Circular No. 96-004.

This requirement was reiterated in COA Circular No. 2012-004 dated

November 28, 2012, which states that “cash advances must, as a rule, be liquidated within the prescribed periods depending upon the nature and purpose of the cash advance (e.g., for salaries and wages; petty and field operating expenses; local travel and foreign travel). Included among operating expenses are cash advances for the payment of honoraria and similar payments to officials and employees; operating expenditures for special projects and activities like anniversary celebration; and special purpose and time bound activity like cultural and athletic activities. These must be liquidated within twenty (20) days from accomplishment of the purpose.”

In 2018, eight AOs did not liquidate the cash advances issued to them

within the prescribed deadline, as follows: Table 9. Number of Days Delayed in Liquidation of Cash Advances

Account Amount No. of days delayed Advances to SDO P122,549.89 75-96 days Advances to Officers and Employees 150,748.08 55-320 days

On the other hand, the audit team also noted that there were liquidations

made by the AOs in CY 2018, however the balance was remitted only in January and February 2019.

Inquiry disclosed that the OIC - Chief Accountant was not remiss in her

duty of reminding the AOs concerned, however, the AOs did not prioritize the liquidation of their cash advances.

We recommended and Management agreed to require the concerned

AOs to strictly adhere to the rules and regulations on the grant, utilization and liquidation of cash advances as provided under PD No. 1445 and COA Circular No. 97-002, particularly immediate settlement/liquidation of their respective cash advances within the prescribed period.

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Weak Internal Control 9. Disbursements in CO and in three ROs were paid through reimbursement

basis instead of going through the regular/proper process of disbursement, contrary to Section 93 of PD No. 1445, thereby showing control weaknesses in the disbursements of government funds.

Section 93 of PD No. 1445 categorically state that “checks drawn

against the Treasury Checking Account for Agencies maintained with any government depository shall be made payable either directly to the creditor to whom the money is due or to a disbursing officer for official disbursement.”

We noted that various expenses in CO and three ROs were paid through

reimbursement basis instead of going through the regular process of disbursement, as shown in Table 10.

Table 10. Summary of Expenses Paid through Reimbursement

CO/RO Particular Amount Remarks CO Reimbursed thru

CA - Local Travels Foreign Travels-

P 103,732.90 196,148.68

A total of 45 reimbursements transactions was paid out of this cash advance from February to December 2018. Management Issued Office Memorandum/Order 2019-60 dated April 1, 2019 re: guidelines in the liquidation/reimbursement of CAs/travel expenses

RO III Fuel/Gasoline; Toll Fees

475,337.45 Management had difficulty looking for a supplier for fuel/gasoline on credit line or contract. Suppliers required an advance payment/deposit or minimum gasoline consumption per month.

RO XI Meals and entertainment

189,131.01 An estimated amount of P13,260.69 should have been collected as tax. Management justified that reimbursement cannot be avoided especially when PSA CO gives late notices of its activities.

ARMM Fuel/Office Supplies/Meals/ Training Expenses/Freight

2,388,928.16 Management commented that they had already minimized the practice but they cannot be totally eliminated because some suppliers do not accept check as mode of payment. Late transfer of funding from the CO/DBM is one factor that reimbursement cannot be avoided.

Total P3,457,011.10

In PSA CO, the SDO of the agency was granted a cash advance of

P300,000.00 for payment/reimbursement of local and foreign travel expenses amounting to P103,732.00 and P196,148.68, respectively. Instead of reimbursing these employees individually, these expenses were reimbursed by the accountable officers from the cash advance of the SDO.

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According to the OIC-Chief Accountant, these employees had difficulty in completing the documentary requirements during the year which caused the delay in processing of liquidation. In order to comply and process their claim for payment before the year ended, Management was constrained to reimburse/pay them thru cash advance granted to the SDO contrary to the proper procedure in disbursement.

In RO III, verification of disbursements in the amount of P475,337.45

for the purchase of fuel/gasoline and toll fees for its regular operations for CY 2018 were all paid through reimbursement by concerned employees/officials, instead of observing direct contracting as a mode of procurement indicated in the Annual Procurement Plan (APP) of RO III.

With this kind/mode of payment/practice, the possibility and risk of

funds diverted for personal use by officials is high considering that anybody may use his personal receipts from his personal disbursement and reimburse himself out of the government funds. Likewise, mandatory taxes were not withheld properly and depriving the government to collect income from taxes.


a) Discontinue the practice of procurement through reimbursement

and adhere to the mode of procurement as provided in the APP;

b) Procure fuel gasoline for the regular operation of the agency thru direct contracting;

c) In RO XI, efficiently plan its activities and limit the granting of cash

advances for payment of meals unless extremely necessary and impractical for them to pay by check and discontinue the reimbursement mode of payment to third party to ensure that taxes due to the government is collected and remitted; and

d) In ARMM, maintain a petty cash fund for emergency purchases to

minimize disbursements thru reimbursements. Compliance with Other Mandatory Accounts/Areas Gender and Development (GAD) 10. The PSA’s CY 2018 GPB was not approved by the PCW; and was not

disseminated to all ROs. However, 10 ROs reported several GAD accomplishments, while in CO, accomplishment reports were not submitted to the audit team for evaluation.

Section 30 of the General Provisions of the GAA for FY 2018 or RA No.

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10964 mandates all agencies of the government to formulate a GAD Plan designed to address gender issues within their concerned sectors.

Item V, COA Circular No. 2014-001 dated March 18, 2014 requires the

Audited agency to submit a copy of the Annual GAD Plan and Budget (GPB) to the COA Audit Team assigned to the agency within five working days from the receipt of the approved plan from the Philippine Commission on Women (PCW) or their mother or central offices, as the case may be. Likewise, a copy of the corresponding Accomplishment Report (AR) shall be furnished the said Audit Team within five working days from the end of January of the preceeding year.

Under the FY 2018 GAA, the PSA has a budget of P3.286 billion. Thus,

the corresponding five per cent is equivalent to P284.261 million. Based on the submitted GPB, a lower amount of P200.408 million was budgeted for the entire PSA. Despite the non-approval by the PCW of the GPB, the CO budgeted P106.613 million and disbursed P49.764 million for the implementation of GAD-related activities. While the Audit Team is aware that the PSA CO had conducted several GAD activities during the year, no ARs were submitted to COA, hence, the extent of the accomplishment of the GPB could not be ascertained.

Deficiencies were, however, noted in the planning and implementation of

the CY 2018 GAD projects/activities, as summarized in Table 11.

Table 11. Other Deficiencies in GAD Implementation Deficiencies Office

A. GPB issues GPB and GAR were not submitted within prescribed period ROs IV-A No GPB was prepared for the entire region NCR Absence of GAD Focal Point System (GFPS) who will be

responsible in the preparation, implementation, and monitoring of the GPB

NCR

Copy of the PCW approved GPB from CO not received ROs II, IV-A, VI B. GAD Reporting issues

Non-attribution of the cost of regular agency functions to GAD activities.

NCR, ROs III, IV-A, IV-B, VI,

There was no costing provided for some GAD activities Delay in submission of GAD AR Expenses incurred for GAD were more than the budgeted amount

RO IV-A RO IX

CO

On the other hand, the CY 2018 GAD accomplishment of the ROs which

were duly validated by the Audit Team concerned, are summarized in Table 12.

Table 12. GAD Accomplishments of CO and ROsAccomplishments Office

Participated in the National Women’s month celebration NCR, ROs III, V, VI, X, XIII

Conducted/participated in various trainings, lectures, meeetings, debates, learning sessions and capacity building on gender issues, fire safety, gender watch and sensitivity, among others

CO, NCR, ROs III, IV-B, V, VI, X, XIII

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Table 12. GAD Accomplishments of CO and ROsAccomplishments Office

Produced publications, processed survey results, sex disaggregated data, and statistical data

CO, NCR, ROs III, IV-B, V, VI, X, XIII

Participated in activities such as clean-up day, poster making, teambuilding, summit, cooking, spiritual well-being, tree planting, and other sports activities, among others

NCR, ROs III, V, VI, X XIII

Conducted youth summit, participated family week activities, Ramadan program, statistical olympics, and civil service anniversary celebration

NCR


a) Ensure that the GAD Plan and Budget is approved by the PCW;

b) Require the GFPS in CO to ensure that the PCW-endorsed GPB is disseminated to all ROs as basis in the preparation of their respective GPBs;

c) Monitor the implementation of GAD activities, including related expenses and ensure that expenses are within the budgeted amount;

d) Constitute a GFPS in NCR; and

e) Ensure submission of the GPBs and ARs to the Audit Teams within the prescribed period.

Senior Citizens (SC) and Persons with Disability (PWD) 11. The PSA has not formulated plans and programs and provide budget for

SCs and PWDs required under Section 31, General Provisions of the GAA for FY 2018.

The PSA has not formulated plans and programs and provide budget for

the SCs and PWDs required under Section 31, General Provisions of the GAA for FY 2018. However, the PSA submitted the following accomplishments in the CO and in 10 ROs, which were validated by the Audit Teams where the SCs and PWDs benefitted from its programs and activities, as summarized in Table 13.

Table 13. Accomplishments for SCs and

PWDsAccomplishments Office

Conducted various seminars and lectures on dementia, massage therapy, health and wellness, family values and unity, benefits and privileges, deaf awareness, pre-retirement, best practices for women, and senior citizens forums

NCR, ROs IV-A, V XIII

Conducted outreach activities, feeding programs, donated art materials, gift giving, and provided first aid medicines

NCR, ROs IV-A, V, XIII

Provided priority lanes, windows, seats, ramps, comfort rooms, waiting areas and continuous assitance to SCs and PWDs filing for civil registry documents

ROs II, III, IV-A, IV-B, V, VI, XIII

Joined grandparents day, published Senior Citizens fact sheets ROs V, XIII

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We recommended and Management agreed to formulate plans and programs and provide budget for SCs and PWDs, and monitor accomplishments in adherence with existing laws, rules, and regulations.

12. Tax Laws and Regulations, GSIS Premiums and Other Loan Amortizations, and PhilHealth and Pag-IBIG Contributions

For CY 2018, the summary of amounts withheld and remitted to the

Bureau of Internal Revenue (BIR), Government Service Insurance System (GSIS), Philippine Health Insurance Corporation (PHIC), and Home Development Mutual Fund (HDMF)/Pag-IBIG is presented in Table 14.

Table 14. Summary of Withheld and Remitted Mandatory Deductions

Account Amounts

Remarks Beginning balance Withheld Remitted Ending

Balance Due to BIR P8,001,365.24 P141,560,422.62 P125,930,548.83 P23,631,239.03 Remitted

in January 2019

Due to GSIS 151,902.03 167,640,177.35 165,270,426.12 2,521,653.26 Due to PhilHealth*

293,349.73 9,164,557.73 9,402,066.03 55,841.43

Due to Pag- IBIG *

288,924.95 15,877,566.17 15,605,181.13 561,309.99

*ROs did not submit additional information – NCR, CAR, ROs I, III, IV-B and X

While various deficiencies were noted in the withholding and remittances

of these mandatory deductions as follows:

Table 15. Summary of Deficiencies

Account Deficiencies Due to BIR RO XII failed to deduct taxes totalling P26,116.66 from overtime

pay

Due to GSIS RO III and one PO failed to deduct P327,011.24 and P93,036.54, respectively, from the salaries of 13 personnel because deduction would lower the required net take home pay of the concerned personnel. However, Management discussed this issue with them and promised to update their delinquency, and will strictly enforce Section 14 of the IRR of RA No. 8291.

The account of RO III has a balance of P1,966.68 as of December 31, 2017 which is still for reconciliation.

The CO reported a balance of P151,902.03 as of December 31, 2017, however, verification of the remittance made on January 11, 2018 showed a total of P6.834 million to GSIS. There is a huge discrepancy of P6.682 million between the recorded payable and the actual remittance.

Due to PhilHealth

The CO reported a balance of P288,924.95 as of December 31, 2017, however, verification of the remittance on January 8, 2018 showed a total of P369,300.00 to PhilHealth or a discrepancy of P80,375.05

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Account Deficiencies between the recorded payable and the amount paid.

Due to Pag-IBIG

RO II has a balance of P3.20 which was unremitted.

The CO reported a balance of P293,324.73 as of December 31, 2017, however, verification of the remittance on January 9, 2018 showed a total of P373,976.18 or a discrepancy of P80,651.45 between the recorded payable and the amount paid.

Two SLs with negative balances of P43,668.32 and P15,634.36 were reported for Pag-IBIG Multi-Purpose Loan and Pag-IBIG Housing Loan accounts, respectively.

We recommended and Management agreed to instruct the

Accounting Officials concerned to:

a) Review and analyze the discrepancies and negative balances of the subject accounts, so that adjustments and other appropriate actions could be made; and

b) Require the employees to refund the unpaid taxes totaling P26,116.66

in the payment of overtime services. (RO XII). GSIS Property Insurance Law 13. The insurable assets of the CO and four ROs totaling P25.700 million were

not insured with the General Insurance Fund of the GSIS, thus, the risk that the agency may not be indemnified in case of damage or loss of properties due to fortuitous events.

Section 5 of RA No. 656 otherwise known as the Property Insurance Law

requires all government agencies to insure its properties with the fund against any insurable risk herein provided and pay the corresponding premiums thereon.

Properties in the total amount of P25.7 million in CO and ROs were not

insured with the GSIS, as summarized in Table 16.

Table 16. Breakdown of ROs with uninsured PPE

Office Amount RO IV-B P 2,198,424.99 RO V 5,383,205.59 RO VI 10,912,776.18 ARMM 7,194,582.06 Total P25,688,988.82

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The cited reason for the non-filing/payment of insurance for PPE in six ROs was due to non-provision of funds by the CO to cover the payment of premium for the asset insurance, while in RO XI, the filing of insurance was inadvertently overlooked.

We recommended and Management agreed to provide amount for

payment of property insurance premium, and the concerned ROs to ensure that all insurable assets of the agency are adequately covered with insurance under GSIS.

14. Hiring of Casuals, Job Orders, Contractuals and Consultants

In compliance with the audit recommendations in CY 2017, PSA Management hired 144 job order (JO) personnel as of August 15, 2018, to vacant plantilla positions of the agency as shown below: Table 17. Eligible Job Order Personnel Hired to Occupy Plantilla Positions

Office No. of Vacant Positions

No. of Eligible JOs Hired Percentage

Central Office 202 50 24.75 Field Offices 387 94 24.28

Total 589 144 24.45

15. Supreme Court’s Decisions on PDAF and DAP

The PSA did not received Priority Development Assistance Fund (PDAF) and Disbursement Acceleration Program (DAP) funds from the DBM or from any government agency for CY 2018.

16. Yolanda Funds

For CY 2018, financial assistance from the Presidential Social Fund totaling P1.755 million for typhoon Yolanda victim employees of PSA RO VIII were transferred to the regional Trust Fund account by the National Economic and Development Authority. The said amount was distributed to the beneficiaries thru their ATM accounts, and was fully liquidated by the RO.

17. Marawi Funds

For CY 2018, the PSA had not received funds for the rehabilitation of Marawi City.

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18. Status of Settlement of Audit Suspensions, Disallowances, and Charges For CY 2018, various Notices of Suspensions, Disallowances, and

Charges (NS/ND/NC) were issued which remained unsettled as at year-end, contrary to COA Circular No. 2009-006 dated September 15, 2009. Table 18 shows the summary of status of audit suspensions, disallowances, and charges.

Table 18. Status of Audit Suspensions, Disallowances and Charges

Particulars

Beginning balance

Issued/Settled January 1 – December 31 2018 Ending balance

January 1, 2018 NS/ND/NC NSSDC December

31,2018 NS P510,101,425.49 P 5,506,225.68 P495,945,571.28 P 19,662,079.89 ND 70,929,173.46 456,520,024.39 426,347.43 527,022,850.42 NC 44,578.00 - - 44,578.00 Total P581,075,176.95 P462,026,250.07 P496,371,918.71 P546,729,508.31

The details on the status of the unsettled disallowances per Office are

discussed in Table 19.

Table 19. Details of Status of Unsettled Disallowances per Office

Office Amount Remarks CO P509,752,804.50 With NFD and COE – P27,226,249.93

With COA Decision affirming the ND - P28,305,858.57 With pending appeal with the Commission Proper (CP) – P1,823,488.96 With appeal to NGS-C2 – P452,397,207.04 Settled/Refunded - With appeal to NGS-C2 - P12,584,750.00

NCR 12,584,750.00 RO I 42,104.75 RO V 610,065.22 RO VI 39,338.40 RO X 7,360.00 RO XI 3,986,427.55 Total P527,022,850.42

We recommended that Management require the Accountant to:

a) Intensify/enforce the settlement of the amounts disallowed, particularly

those which are deemed final and executory; and b) Ensure that accountable officials and employees are not granted

clearance unless their accountabilities corresponding to the disallowances issued are settled.

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STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT RECOMMENDATIONS

We followed-up and validated the actions taken by PSA on the implementation of prior year’s audit recommendation as contained in the Consolidated Annual Audit Report for CY 2017 and noted the following:

Status of Implementation No. of Recommendations Fully Implemented 19 Partially Implemented 9 Not Implemented - Total 28

The results of our validation were discussed during the exit conference and we

recommended that Management continue remedial actions to address the issues in order to fully implement the partial recommendations. The details are as follows:

Observations and Recommendations Ref. Management Action Status of Implementation

Results of Auditor’s Validation

1. Financial statements, reports, and documents of CO, ROs I, V and VI were either submitted late or not submitted to the Audit Team, thus, precluded the timely review/ verification of the same that could have ascertained the validity and regularity of the subject transactions, and the accuracy and completeness of the account balances.

Management agreed to: a) Direct the concerned Accountants

and other responsible officials to submit immediately to the COA, all unsubmitted reports, vouchers, and supporting documents for audit, otherwise, enforce the suspension of salaries of accountable and responsible officials for the persistent late and/or non-submission of the required reports/documents to the Office of the Auditor, pursuant to Section 22 of Presidential Decree No. 1445; and

b) Henceforth, direct the concerned

Accountants and other responsible officials to submit immediately to the COA within the prescribed period,

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PSA- Central Office (CO) submitted the September to December financial reports and supporting documents. CO, ROs I and V promptly submitted accounting reports and observed

Fully Implemented

Fully

Implemented

Validated the date of receipt of the financial reports on June 28, 2018. Validated and noted that Management submitted the

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the complete Financial Statements/ Trial Balance/Schedules/ Reports together with all mandatory documentary requirements.

deadlines. ROs VI hired or assigned additional personnel to assist the Disbursing Officer and Accounting Section in submission of reports and documents.

financial reports on time.

2. The existence and completeness of the balances of some asset accounts cannot be determined due to unreconciled records of the Accounting Division and the Property and Supply Section, absence of actual physical count, non-maintenance/unupdated subsidiary records, and non-submission of Report of Supplies and Materials Issued (RSMI) and supporting documents.

Management agreed to require:

a) The Accountant to thoroughly

analyze, verify, confirm, reconcile, identify, and account the discrepancies using the available records, and prepare the necessary adjustments in the books of accounts of CO, ARMM, ROs I, III, IV-A, IV-B, V, VII and IX ; and

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ROs I, III, IV-B, VII, IX and ARMM reconciled already their balances. CO, ROs IV-A and V are still in the process of reconciliation.

Partially

Implemented

The Audit Teams (ATs) of ROs I, III, IV-B, VII, IX and ARMM validated the adjusting entries for unreconciled balances. In CO, Management sent request for meeting with Department of Budget and Management – Procurement Service (DBM-PS), however, they have a hard time to push it through due to conflict in schedule and problem with PS-DBM servers.

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b) The Accountant and the Property

Officer to: i. Conduct periodic reconciliation

of accounting and property records and the physical count of PPE and inventories; and

ii. Maintain/update subsidiary

ledgers and property records, respectively, to facilitate reconciliation.

ROs VI, VIII, IX, X, XII and XIII conducted physical count of PPE and inventories and submitted Report on the Physical Count of Inventories (RPCI) and RSMI to the Audit Team. ROs I, IV-A and IX are still in the process of updating stockcards.

Partially

Implemented

Witnessed the conduct of physical count of Property, Plant and Equipment (PPE) and inventories and ROs validated the submission of RPCI and RSMI to the Audit team.

3. Accounting errors/omissions were noted in the review and verification of accounts of CO, NCR, ROs III, V, VI, VII, VIII and XII that affected the existence, occurrence, and completeness of account balances reported in the financial statements.

Management agreed to direct the Accountants of CO and concerned ROs to prepare the necessary adjusting journal entries to correct the noted errors, and henceforth, observe the proper recording of accounts and transactions in accordance with the GAM and other existing accounting rules and regulations.

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ROs III, VI and XII prepared the necessary adjusting entries to the books. CO and NCR were still in the process of reconciliation of accounts affected. RO VIII prepared JEV to book up unrecognized PPE such as Motor Vehicle.

Partially Implemented

The ATs of ROs III, VI and XII validated the corrected errors noted in the accounts. In CO, validated various Journal Entry Vouchers (JEVs) used to record deliveries from PS-DBM totaling P368,346.78; Upon validation of JEV no. 17-05-0631 dated May 3, 2017, cancelled check amounting to P455,863.20 dated May 3, 2017 was not recorded in the books, hence, no adjusting entry was recorded for reversal.

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Lost Laptop was found and reported to COA Region V, no need to set up Due from Officers and Employees account. RO VII stale checks totaling to P20,724.85 were adjusted last March 2018 with JEV no. 18-03-0040.

4. Fund transferred to the Philippine Statistical Research and Training Institute (PSRTI) totaling P4.6 million remained unliquidated as of date, despite the lapse of one year from project completion, thus, the appropriate expenses cannot be recognized in the books.

Management require the PSRTI to submit the report of disbursement duly verified by the Resident Auditor, considering that the duration of the project undertaking per Memorandum of Agreement had already ended, and to recognize the appropriate expense accounts and to clear the books of unliquidated fund transfer.

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CO recognized partial liquidation.

Partially implemented

Validated the adjusting entries per JEV nos. 18-01-0099 and 18-02-0203 totaling P4,454,842.22, with remaining balance P145,157.78 as of December 31, 2018

5. Payment for overtime services in the CO, and various disbursements in the CO and ROs III, V, VI, VII, VIII, IX, XII, ARMM totaling P19.348 million and P113.256 million, respectively, had incomplete documentary requirements, thus preventing the determination of the propriety and validity of reported transactions.

Management agreed to direct the Accountant to:

a) Process all claims only if these are

supported with complete documentary requirements;

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CO, ROs VI, VII and VIII processed claims with complete

Fully Implemented

In CO, Management submitted

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b) Comply strictly with the

requirement of the CSC-DBM Joint Circular No. 1 dated November 25, 2015 in the payment of overtime services; and,

c) Comply faithfully with the laws, rules and regulations governing the complete documentation/ reporting and proper accounting of financial transactions.

documentary requirements, strictly adhered with CSC-DBM Circular and complied faithfully with laws, rules and regulations. In ARMM, they promised to comply with the documentary requirements despite of inapplicabity and impracticability in their region. The Regional Accountant instructed the field offices to comply faithfully with laws, rules and regulations. In ROs III, V, IX and XII, no Audit Observation Memorandum (AOM) was received regarding this item.

Fully Implemented

Fully Implemented

compliance to the recommendation on August 10, 2018. Upon validation of succeeding overtime pay claims, it was noted that the accounting processed the claims with complete documentary requirements. Management complied strictly with the requirements. Management processed only overtime claims with complete documentary requirements.

3. The PSA procured through shopping for a total contract price of P297,000.00, clothing materials for the 7th Session of the Asean Community Statistical System Committee, which is not in compliance with COA Circular No. 2012-003.

Management agreed to require the concerned officials and employees to refund the corresponding cost of clothing materials received. Henceforth, refrain from incurring similar expenditures.

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All officials have refunded the corresponding costs of clothing.

Fully

Implemented

Validated Official Receipts representing refund of concerned officials and employees and the recording thereof.

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4. Fees and trust receipts totaling P4.143 million in the CO were deposited in local current accounts instead of remitting to the Bureau of Treasury (BTr), contrary to Sections 4 and 6 of the General Provisions of the General Appropriations Act (GAA) for FY 2017.

Management agreed to require the Accountant in CO to remit the total amount of P4.143 million to the BTr, and henceforth, ensure that all fees/trust receipts are deposited to the BTr.

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a. Deposited receipts to BTr; b. On-going reconciliation of accounts balances; c. Quarterly Reports were submitted on the following trust receipts: • 2016 Household

Survey on Domestic Visitors in the Philippines – submitted on February 22, 2018

• 2015/2016 Integrated Survey on Labor and Employment – submitted on March 5, 2018 2016 National Disability Prevalence Survey – submitted on March 22, 2018.


Validated deposits to BTr per OR Nos. 19500327 and 19500328 totaling P104 million, inclusive of P4.143 million, on March 7, 2018. Validated dates receipt of the Reports and supporting documents for the particular projects.

5. The PSA and the Concessionaire have not opened an escrow account for the Civil Registry System – Information Technology Project (CRS-ITP2) Concession Agreement, in violation of DOF-DBM-NEDA-BOT Center JC No. 03-01, series of 2003, and Section 9.3 of the Concession Agreement dated September 30, 2016.

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Management facilitate discussion with the Department of Finance (DOF) and other concerned agencies for the purpose of opening an escrow account for the CRS-ITP2 project, and thereafter, instruct all Civil Registry System (CRS) collecting officers to deposit all CRS collections to the said account.

CO submitted letter reply.

Fully Implemented

The AT validated the submitted letter dated October 23, 2018.

6. The balances of funds for completed projects in ROs III and IX were not returned to CO, including proceeds from sale of bid documents, for remittance to the BTr thus, the risk that the funds may be misused.

Management agreed to require ROs III and IX to:

a) Return to the CO the unexpended

fund balances of completed projects, and the CO to remit the amount to the BTr, or remit directly to the BTr and furnish the CO with the deposit slip for recording and monitoring purposes; and

b) Remit the balances of the bid

documents directly to BTr.

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RO III is still in the process of reconciliation of the CRS Accounts. RO IX remitted the unexpended fund balances to CO. RO III and IX remitted the balances of bid documents to BTr.


Fully

Implemented

The AT of RO III validated the remittance, except for the unreconciled balances of CRS Account. The AT of RO IX validated the amount of P227,136.00 was remitted to CO on March 21, 2019. RO IX validated the deposit slip representing remittances to BTr.

7. Unserviceable assets totaling P14.221 million in the CO and ROs III, IV-A, IV-B and VI were not disposed of for several years now, resulting in further deterioration, incurrence of additional storage cost, and loss of opportunity to earn additional income from sale thereof.

Management agreed to require the Property Officers in the CO and concerned ROs to:

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a) Conduct full inventory and inspection of all unserviceable assets and prepare the corresponding Inventory and Inspection Report of Unserviceable Property; and

b) Cause the immediate disposal of all unserviceable assets either by destruction, donation or sale, and submit the complete documents to the Accountant for de-recognition in the books of accounts.

RO IV-A conducted Inventory inspection for unserviceable assets. RO IV-B and VI Property officer already prepared the IIRUP and submitted to COA. CO, RO IV-A and IV-B conducted partial disposal by donation and sale. RO III and VI were evaluating their IIRUP for disposal.

Fully Implemented

Partially

Implemented

Witnessed the inspection and inventory of unserviceable properties set at different dates and the Audit Team received the IIRUP submitted by Management. Witnessed the conduct of disposal through donation and sale of unserviceable properties.

Gender and Development (GAD)

8. The PSA’s CY 2017 GAD Plan and Budget (GPB) duly endorsed by the Philippine Commission for Women (PCW) was not disseminated to all ROs. However, 10 ROs reported several GAD accomplishments, while in CO, Annual Report was not submitted to the Audit Team, for evaluation.

Management agreed to:

a) Require the GAD Focal Point System (GFPS) in CO to ensure that the PCW-endorsed GPB is disseminated to all ROs as basis in the preparation of their respective GPBs;

b) Monitor the implementation of GAD

activities, including related expenses;

c) Constitute a GFPS in RO II; and

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CO GFPS disseminated the PCW-endorsed GPB to regions. CO created TWG to develop, implement and monitor GAD related activities. RO II constituted GFPS.

Fully Implemented

Fully Implemented

Fully

Implemented

Validated and noted that Management disseminated the GPB to all ROs. Review the Office Memorandum issued relative to GAD-TWG. Communicated with the Director of RO II and confirmed that they have existing GFPS.

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d) Ensure submission of the ARs to the Audit Teams within the prescribed period.

CO submitted the 2017 GAD AR.

Fully Implemented

The submission of CY 2017 GAD AR was submitted on July 27, 2018.

9. Senior Citizens (SCs) and Persons with Disability (PWD)

The PSA has not formulated plans and programs and provide budget for the SCs and PWDs required under Section 31, General Provisions of the GAA for FY 2017. However, the PSA submitted the following accomplishments in the CO and in 10 ROs, which were validated by the Audit Teams where the SCs and PWDs benefitted from its programs and activities.

Management agreed to formulate plans and programs and provide budget for SCs and PWDs, and monitor accomplishments in adherence with the existing law.

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Management submitted the SCs and PWDs 2017 Plan and Budget.

Fully

Implemented

Management submitted the CY 2017 Plan and Budget on July 27, 2018 for SCs and PWDs.

10. Tax Laws and Regulations, GSIS Premiums and Other Loan Amortizations, and PhilHealth and Pag-IBIG Contributions for CO, ROs II and III.

Management agreed to review and analyze the discrepancies and negative balances of the subject accounts, so that adjustments and other appropriate actions could be made.

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CO remitted the payment for contributions. RO II remitted the payment for contributions RO III, no AOM was received for this item.

Fully

Implemented

Validated check nos. 1012484, 1012485, 1012486 totaling P5.668 million for the payment of contributions which was remitted on January 2018. Validated check no. 349402 dated February 23, 2018 remitted on March 8, 2018 .

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11. The insurable assets of NCR and ROs I, II, III, V, VI and XI were not insured with the General Insurance Fund of the GSIS, thus, the risk that the Agency may not be indemnified in case of damage or loss of properties due to fortuitous events.

Management agreed to provide amount for payment of property insurance premium, and the concerned ROs to ensure that all insurable assets of the agency are adequately covered with insurance under GSIS.

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NCR and RO I instructed the Supply/Property Officers to comply with the recommendations. RO II and III insured their assets with General Insurance Fund (GIF). RO V, VI and IX field offices partially complied with the recommendation.

Partially

Implemented

Validated the instruction to Supply/Property Officers of NCR and RO I. RO II and III validated the insured assets with GIF.

12. The PSA-CO hired 428 Job Order (JO) workers for CY 2017, some of whom were performing tasks/functions which are part of the job description of the existing regular employees. Moreover, qualified JOs were not given priority in the hiring for regular positions.


a) Consider filling up the vacant

plantilla positions, with the placement of qualified/ eligible JO workers or recruitment from outside;

b) Limit the hiring of JOs in

accordance with Item No. 7 of CSC, COA and DBM Joint Circular No. 1, series of 2017; and

c) Refrain from assigning the tasks of regular personnel to the JOs.

2017 CAAR Page 83

a. Expedited

recruitment process;

b. Hired JOs for particular projects in accordance with CSC, COA and DBM guidelines;

c. Refrained from assigning tasks of regular personnel to JOs.

Fully

Implemented

Fully

Implemented

Fully Implemented

CO hired the 53 JO personnel to a regular/ permanent position as of November 30, 2018. CSC, COA, DBM Joint Circular No. 1, s. 2018 dated November 9, 2018 was issued to extend the hiring of JOs until December 30, 2020.

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13. Status of Settlement of Audit Suspensions, Disallowances, and Charges of CO, NCR and ROs I, II, V and X for CY 2017, various Notices of Suspensions, Disallowances, and Charges (NS/ND/NC) were issued which remained unsettled as at year-end, contrary to COA Circular No. 2009-006 dated September 15, 2009.


a) Intensify/enforce the settlement of the amounts disallowed, particularly those which are deemed final and executory; and

In CO concerned officials and employees filed individual appeal. Two employees liable are settling the COA Order Execution (COE) No. 2018-044 thru withholding payment of their salaries and other emoluments NCR Management received COE No. 2018-006 dated August 20, 2018. RO II settled the audit disallowances. RO I directed Mr. Michael Gapuzan to settle immediately the disallowance. RO XI disallowances were partially settled. In CO, two officials separated from service were not yet granted clearance and benefits pending resolution of their appeal.


Seventeen Auditor’s Answers to the Appeal Memorandum were filed to NGS-Cluster 2 for the disallowances as of December 31, 2018. Validated and noted that two employees liable in COE No. 2018-044 were dropped in the payroll lists; RO I issued NSSDC No. 17-01 dated June 21, 2017 for settlement of ND.

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b) Ensure that accountable officials and employees are not granted clearance unless their accountabilities corresponding to the disallowances issued are settled.

Fully Implemented

Validated and noted that clearance were not yet granted, and checks for terminal leave benefits were not yet claimed by two officials.

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Annex A

PS MOOE CO TOTAL PS MOOE CO TOTAL

Current Year's Allotment

Regular Appropriations 1,001,961,000.00 2,665,380,000.00 1,935,136,000.00 5,602,477,000.00 985,241,181.00 2,665,380,000.00 1,935,136,000.00 5,585,757,181.00

Automatic Appropriations

Retirement and Life

Insurance Premium

99,802,052.00 - - 99,802,052.00 99,802,052.00 - - 99,802,052.00

Special Purpose Funds

Pension & Gratuity Fund 17,081,811.00 - - 17,081,811.00 17,081,811.00 - - 17,081,811.00

Miscellaneous Personnel

Benefits Fund (MPBF)196,790,787.00 - - 196,790,787.00 196,790,787.00 - - 196,790,787.00

TOTAL 1,315,635,650.00 2,665,380,000.00 1,935,136,000.00 5,916,151,650.00 1,298,915,831.00 2,665,380,000.00 1,935,136,000.00 5,899,431,831.00

SARO No.

Particulars APPROPRIATIONS ALLOTMENTS


Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (SAAODB)

For the Period January to December 2018


Regular Appropriations


Retirement and Life

Insurance Premium


Pension & Gratuity Fund


Benefits Fund (MPBF)

TOTAL

SARO No.

Particulars





982,165,455.80 1,923,851,631.81 482,888,608.78 3,388,905,696.39 945,608,770.02 1,769,191,861.84 165,108,576.52 2,879,909,208.38

97,275,274.49 - - 97,275,274.49 97,153,975.67 - - 97,153,975.67

17,081,802.59 - - 17,081,802.59 17,081,802.58 - - 17,081,802.58

196,071,493.08 - - 196,071,493.08 196,016,030.76 - - 196,016,030.76

1,292,594,025.96 1,923,851,631.81 482,888,608.78 3,699,334,266.55 1,255,860,579.03 1,769,191,861.84 165,108,576.52 3,190,161,017.39

OBLIGATIONS DISBURSEMENTS


Regular Appropriations


Retirement and Life

Insurance Premium


Pension & Gratuity Fund


Benefits Fund (MPBF)

TOTAL

SARO No.

Particulars





3,075,725.20 741,528,368.19 1,452,247,391.22 2,196,851,484.61 36,556,685.78 154,659,769.97 317,780,032.26 508,996,488.01

2,526,777.51 - - 2,526,777.51 121,298.82 - - 121,298.82

8.41 - - 8.41 0.01 - - 0.01

719,293.92 - - 719,293.92 55,462.32 - - 55,462.32

6,321,805.04 741,528,368.19 1,452,247,391.22 2,200,097,564.45 36,733,446.93 154,659,769.97 317,780,032.26 509,173,249.16

UNPAID OBLIGATIONSBALANCES

annual audit report of psa 2018 - republic of the philippines

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