2012 Annual Financial Report of Government-owned or ...€¦ · summarized/consolidated to provide readers an overview of the financial position and results of performance of the

2012

Annual

Financial

Report

Volume II - A

Government Owned and/or

Controlled Corporations

Table of Contents

Page

Chapter I - Introduction

Legal basis………….……………………………………………………. 1

COA - CY 2012 Thrusts………………………………………………... 2

Structure, contents, and limitations……………………………………… 2

Methodology of summarization……………………………………......... 4

Guide to users……………………………………………………………. 5

Chapter II - Financial Highlights and Analysis

Financial condition………………………...…………………………….. 6

Financial performance……………………………..…………………….. 9

Changes in equity………………………………………………..………. 11

Cash flows……………………………………………………………...... 12

Chapter III - Summary Financial Statements

Over-all summary financial statements

Balance Sheet…………………………………………………. 15

Income Statement……………………………………………... 16

Statement of Changes in Equity………………………………. 17

Cash Flow Statement………………………………………….. 20

Summary financial statements by Cluster and GOCCs

Cluster 1 – Banking and Credit ………………………………………. 23

Cluster 2 – Social Security Services and Housing……………………. 71

Cluster 3 – Public Utilities…………………………………………….. 111

Cluster 4 – Industrial and Area Development……………………….... 155

Cluster 5 – Agricultural and Natural Resources…………………….… 227

Cluster 6 – Social, Cultural, Trading, Promotional and Other Services. 279

Chapter IV – Summary Audit Results

Summary Audit opinions………………………………………………… 332

Summary of significant and common audit observations and

corresponding recommendations…………………………………….. 333

Suspensions, Disallowances and Charges….............................................. 376

Summary of implementation of prior years’ recommendations…............. 378

Chapter V – Annexes

1

Chapter I

Introduction

Legal basis

1 Section 4, Article IX-D of the Philippine Constitution and Section 41 of

Presidential Decree (PD) 1445, otherwise known as the Government Auditing

Code of the Philippines, requires the Commission on Audit to submit to the

President and Congress an annual report on the financial condition and results of

operation of the government. For government-owned or controlled corporations

(GOCCs) including the government financial institutions (GFIs) and their

subsidiaries, and water districts, the Annual Financial Report (AFR) is prepared

by the Corporate Government Sector. Presented in the AFR is a comparative

summary of the financial statements of GOCCs for the CYs 2012 and 2011. The

financial statements are comprised of the balance sheet, income statement,

statement of changes in equity, cash flow statement, and the summary of

significant accounting policies and other explanatory information or notes to the

financial statements. Also disclosed in the AFR in concise and summarized form

are the audit observations/findings and recommendations or measures to improve

the efficiency and effectiveness of corporate governance as well as the status of

implementation of prior years’ audit recommendations. These audit observations

and status of implementation of recommendations were lifted from the individual

annual audit reports of each GOCC as submitted by the respective auditor

assigned thereat.

2 The Corporate Government Sector of COA has audit jurisdiction over GOCCs

including GFIs. In line with the implementation of the Integrated/Unified Audit

Approach, the GOCCs are grouped into six clusters (Annex 1) under the

supervision of Cluster Directors. The functions of each GOCC are summarized

under Annex 4.

3 Stand-alone GOCCs situated in the fifteen regions including water districts are

placed under the audit jurisdiction of the Regional Directors assigned nationwide.

COA – CY 2012 Thrusts

4 The Commission on Audit’s 113th

Foundation Anniversary theme: “Integrity,

Solidarity and Synergy: Key to COA’s Effectiveness,” depicts its mission of

carrying out its constitutional mandate with the highest degree of

professionalism, competence, integrity, team work and organizational efficiency

and provide people’s trust in government by upholding public accountability.

Along this line, the following thrusts were defined to be implemented:

2

1. Promoting integrity and independence in the conduct of audit; 2. Providing more efficient, timely and quality audit services; 3. Maintaining a highly competent and professional human resource; and 4. Providing for mutual assistance and better coordination with public audit

stakeholders and coherence in effective partnership/linkages.

Objectives

5 This Annual Financial Report is designed to serve as a useful tool to address the

advocacy of various groups such as the media, civil society, people’s

organizations, non-government organizations and even the international

community in attaining transparency in government agencies and giving public

access to needed information.

6 It aims to make available to a wide range of users the necessary information on

the financial position, performance, changes in equity, and cash flows not only of

the individual GOCC but also of the entire corporate government. The wide

range of users include, among others, the President, the executive branch tasked

to manage the affairs of the entire bureaucracy, and the legislative branch of

government in charge of governance relative to its rendition of economic

decisions. It also provides information, in summarized form, on the audit

observations and the corresponding value-added measures recommended by the

Commission, including the status of implementation of the previous years’ audit

recommendations, intended to enhance the relevance and reliability of financial

reporting and management or operational processes of GOCCs. Primarily, the

contents are aimed at satisfying the information needs of government

stakeholders, present and potential investors, employees, lenders, suppliers and

other trade creditors, customers, and the public.

Structure, content and limitations

7 The AFR presents in capsule form the audited financial statements of the GOCCs

for the year ended December 31, 2012. It reports, in a summarized structure, the

GOCC’s financial position as of December 31, 2012, the financial performance,

changes in equity, cash flows for the year then ended, and the summary of

significant accounting policies and other explanatory information. The details of

the CY 2012 financial statements including the findings and recommendations

and status of implementation of prior years’ audit recommendations are in the

individual Annual Audit Report (AAR) of the respective GOCCs which can be

accessed from the COA website (www.coa.gov.ph). Reference to the individual

AAR is advised in view of its detailed layout and propriety of the agency-specific

financial information. The data as presented in the individual AARs shall

necessarily prevail over the summarized information presented in this report.

3

8 Featured in this 2012 AFR are the financial reports of 582 or 89.99 percent of the

total 654 GOCCs/agencies under the audit jurisdiction of the Corporate

Government Sector of the Commission on Audit. Of the 582 agencies, 139 are

regular GOCCs which financial statements are summarized under Volume II-A

while the remaining 443 are water districts which financial reports are separately

summarized under Volume II-B.

9 Of the 582 financial reports consolidated in two volumes, only 295 or 50.69

percent were audited while the remaining 287 or 49.31 percent are yet to be

audited. The bulk of the unaudited financial statements pertain to water districts

located in the different regions. These water districts are audited through team

audit approach, the audit engagement of which are usually performed after the

audits of the regular agencies. Audits of regular GOCCs are prioritized due to the

assignment of resident auditors in these agencies.

10 Included in this report as Annexes are the list of agencies that failed to submit as

of September 16, 2013 the required financial statements. Likewise included is

the list of agencies with financial statements that were included but unaudited as

of report writing. Annex 1 details the total number of GOCCs under the audit

jurisdiction of the six Clusters under the Corporate Government Sector, Annex 2

presents the roster of CY 2012 membership in the GOCCs’ governing boards

including the acronyms of the respective agencies with which they were affiliated

for the year; and Annex 3 is the list of GOCCs, financial data which are not

incorporated in this year’s summarization.

11 Chapter II presents the comparative financial highlights and analysis of the CYs

2012 and CY 2011 financial profile of GOCCs. Analysis is based on the overall

financial data and summary totals of the major line figures shown in the

consolidated financial statements as presented in Chapter III of this report.

12 Chapter III presents in comparative form the summarized financial statements for

CYs 2012 and 2011. It is however informed that there were agencies which

submitted their financial statements for CY 2011 but failed to submit their CY

2012 data, hence, adjustments were effected in last year’s financial data. These

changes are properly disclosed in the Notes to the Financial Statements.

13 Generally, the accompanying financial statements are presented in conformity

with the requirements of PD 1445, rules and regulations, and the Public Sector

Accounting Standards. Further, both the regulatory and auditing frameworks

require summarization of financial information based on the audited financial

statements. The summarized financial data as presented in Volume II-B includes

the unaudited financial statements of the water districts, as these are the

proximate data available then at the time of the report preparation. The unaudited

summarized financial information as presented may not carry the level of

reliability as the audited financial data of other GOCCs. The reader is therefore,

advised to periodically refer to the COA website for the published AARs of the

GOCCs, subsequent to the cut-off date of September 16, 2013.

4

Methodology of summarization

14 The summarized financial data as presented is a consolidation of the balance

sheets, income statements, statements of changes in equity, and cash flow

statements. The overall data in the financial statements were derived thru line by

line summarization of the reported balances of accounts in the financial

statements of GOCCs. This summarization is done at the Cluster level having

jurisdiction over the auditees.

15 On the other hand, the financial information of water districts are initially

summarized at the regional level. The inputs coming from the fifteen regions for

the water districts are combined at the Office of the Assistant Commissioner for

Corporate Government Sector to generate the overall figures and presented as one

combined data for the water districts nationwide in the summarized financial

statements of Cluster 3 – Public Utilities. The top level summarization done at

the Office of the Assistant Commissioner for CGS combines the financial data

which were summarized at the Cluster level.

16 The audit findings and recommendations and status of implementation of prior

year’s audit recommendations include only the data of GOCCs available as of

September 16, 2013. The audit opinions, significant and common audit

observations, status of issuance of the notices of suspensions, disallowances and

charges and the status of implementation of prior years’ audit recommendations

are discussed in detail in Chapter IV of this report.

17 The financial reporting framework adopted by the GOCCs in the presentation and

preparation of the financial statements are varied. A significant number of

GOCCs grouped under Cluster 1 – Banking and Credit adopts the Philippine

Financial Reporting Standards (PFRS) and to some extent, the various regulatory

frameworks such as those prescribed by the Bangko Sentral ng Pilipinas and the

Insurance Commission. All the other GOCCs adopt a variety of financial

reporting frameworks ranging from the PFRS, the accounting principles generally

accepted in the Philippines, and the accounting principles enunciated under the

New Government Accounting System (NGAS).

5

Guide to users

18 Volume II-A of the AFR is composed of four chapters, namely: (I) introduction;

(II) financial highlights; (III) financial statements; and (IV) summary audit

results; and annexes. The financial data as presented are

summarized/consolidated to provide readers an overview of the financial position

and results of performance of the entire corporate government sector.

19 The first set of summary financial statements presented in Chapter III, shows the

overall financial figures for the entire government corporate sector duly

supported with the summarized financial information by Cluster. The Cluster

summarization is further supported by the individual GOCC financial data which

is published at the COA Website at http://www.coa.gov.ph.

6

Chapter II

Financial Highlights and Analysis 20 The analysis and interpretation of financial data of the entire government-owned

or controlled corporations (GOCCs) were based on the summary totals of the

major accounts from the combined financial statement components ((balance

sheet, income statement, statement of changes in equity and statement of cash

flow) presented in Chapter III hereof. Such financial analysis and interpretation

of data are stated in general terms and does not reflect the financial position,

performance, changes in equity and corresponding cash flows of the individual

GOCC. The separate discussion on the financial highlights and analysis of the

transactions of the individual GOCC are presented in the Annual Audit Reports

(AARs) rendered by the Commission on Audit (COA) for each

GOCC/government financial institution (GFIs) which can be accessed through

the COA Website at http://www.coa.gov.ph.

Financial condition

21 As of December 31, 2012, the GOCCs had total assets of P9,402.97 billion, total

liabilities of P7,165.54 billion and equity of P2,237.43 billion. A graphical

comparison of the over-all financial condition of GOCCs for CYs 2012 and 2011

is shown in Chart II – 1.

Chart II – 1

Comparative financial condition

(in billion pesos)

1,918.64

2,237.43

6,898.90

7,165.54

8,817.55

9,402.97

0 2,000 4,000 6,000 8,000 10,000

Equity

Liabilities

Assets

2011 2012

7

22 For CY 2012, GOCC’s ability to provide future services to its clients can be

gleaned from its combined total assets which reached the level of P9,402.97

billion, an increase of P585.43 billion or 6.64 percent when compared to previous

year’s level of P8,817.55 billion. The top 20 GOCCs ranked in terms of total

assets based on those that submitted the required financial data is shown in

Annex 5.

23 Exhibited in Chart II – 2 is the composition of the combined current assets which

represents 62.53 percent of the total combined resources of the GOCCs.

24 Current assets during the year reached P5,879.91 billion, up by P295.97 billion or

5.30 percent from the previous year’s level of P5,583.94 billion. The largest

portion of the combined current assets of GOCCs at 58.24 percent pertain to the

gross international reserves amounting to P3,424.29 billion which posted a slight

increase of P137.78 billion or 4.19 percent over the previous year’s total of

P3,286.52 billion. This current asset account is used solely by the Bangko

Sentral ng Pilipinas (BSP) for its investment securities, gold, deposits with

foreign banks, International Monetary Fund (IMF) special drawing rights as well

as other cash and cash equivalents.

25 Non-current assets which represent 37.47 percent of the total assets increased by

P289.46 billion or 8.95 percent from P3,233.61 billion in 2011 to P3,523.07

billion in 2012. The composition of non-current assets are presented in Chart II –

3. Long-term receivables, property, plant and equipment as well as long-term

investment amounting to P1,356.88 billion, P877.83 billion and P871.65 billion,

respectively, comprised the bulk of non-current assets representing 38.51 percent,

24.92 percent and 24.74 percent, respectively.

Chart II – 2

Composition of current assets

(in percentage)

8.32%

58.24%

13.73%

18.31%

0.76%

0.19%

0.45%

Cash and cash equivalent

Gross international reserves

Short-term investments

Receivables

Inventories

Prepayments & deferred charges

Others

8

26 The GOCCs incurred total liabilities of P7,165.54 billion for CY 2012 compared

to previous year’s balance of P6,898.90 billion, an increase of P266.64 billion or

3.86 percent. From among the GOCCs that submitted financial reports, the top

20 agencies ranked by total liabilities are presented in Annex 6.

27 Current liabilities amounting to P5,635.72 billion posted a slight increase of

P326.08 billion or 6.14 percent from the CY 2011 balance of P5,309.64 billion.

Deposit liabilities amounting to P3,580.34 billion represents the largest portion of

the current liabilities at 63.53 percent. The account consists of current and long-

term domestic and foreign deposits of the banks’ clients, either in savings,

demand and time deposit accounts that earn annual fixed interest rates. Currency

in circulation posted the next highest contribution of P692.66 billion or 12.29

percent of the total current liabilities.

28 Non-current liabilities for CY 2012 closed at P1,529.82 billion which is P59.44

billion or 3.74 percent lower compared with the previous year level of P1,589.26

billion. The amount is comprised of domestic and foreign borrowings, totaling

P457.08 billion and P426.25 billion, representing 29.88 percent and 27.86

percent, of the combined non-current liabilities, respectively. Annexes 7 and 8

show the breakdown of the domestic and foreign borrowings, respectively. Chart

II – 4 illustrates the composition of non-current liabilities.

Chart II – 4

Composition of non-current assets

(in percentage)

38.51%

24.74%

24.92%

1.35%

0.01%

3.25%

7.22%

Long-term receivables

Long-term investments

Property, plant & equipment

Investment property

BOT electric plants under capital lease

Intangible assets

Others

9

29 The working capital or liquidity ratio (current assets of P5,879.91 billion vis-à-vis

current liabilities of P5,635.72 billion) shows a positive ratio of P1.04 current

assets for every P1.00 current liabilities.

30 The combined equity of GOCCs at year-end totaling P2,237.43 billion increased

by P318.79 billion or 16.62 percent from the previous year’s balance of

P1,918.64 billion. From among the GOCCs included in the summarized overall

financial statements, the top 20 agencies ranked by total equity are presented in

Annex 9.

Financial performance

31 For CY 2012, the over-all operations of GOCCs resulted in a total comprehensive

income of P193.11 billion, an increase of P59.62 billion or 44.66 percent

compared to the P133.49 billion net income after tax in CY 2011.

32 Gross income in CY 2012 closed at P794.18 billion compared to P730.46 billion

in 2011 posting a moderate increase of P63.72 billion or 8.72 percent. From

among the GOCCs that submitted their financial statements, the top 20 GOCC

revenue grossers are presented in Annex 10.

33 The greater part of the revenues generated by GOCCs came from its business and

service income amounting to P640.80 billion. This year-end total is P38.42

billion or 6.38 percent higher compared with the 2011 total of P602.38 billion.

Chart II – 5 shows the composition of income expressed in billion pesos.

Chart II – 4

Composition of non-current liabilities

(in billion pesos)

Foreign

borrowings

426.25

Domestic

borrowings

457.08

Other non-

current liabilities

646.49

10

34 The CY 2012 share of the National Government (NG) from the income of

GOCCs totaling P18.26 billion surpassed last year’s share of P16.81 billion by

P1.45 billion or 8.65 percent. The bulk of the amount was contributed by the

Philippine Amusement and Gaming Corporation (PAGCOR). The NG share

from PAGCOR is computed at 50 percent of winnings, net of payouts and after

the five percent franchise tax. It is directly remitted to the Bureau of Treasury.

35 Total expenses for the year which closed at P677.52 billion was higher by P41.24

billion or 6.48 percent compared to the 2011 totals of P636.28 billion. The top

20 GOCCs ranked by total expenditures, culled from among those that submitted

their financial statements, is exhibited in Annex 11.

36 Total expenses, as shown in Chart II – 6, is comprised of business expenses at

P282.83 billion or 41.75 percent, maintenance and other operating expenses at

P192.28 billion and personal services, financial expenses and other expenses

which collectively closed at P202.41 billion.

Chart II – 6

Composition of expenses

(in billion pesos)

282.83

70.17

192.28

78.03

54.21

Business expenses

Personal services

MOOE

Financial expenses

Others

Chart II – 5

Composition of income

(in billion pesos)

Business and

service income

640.8

Gains and

premiums

84.72

Others

68.66

11

37 Extracted from the financial data of GOCCs herein presented as Annex 12 is a

summary of discretionary (P29.634 million), representation and entertainment

(P1,162.61 million), extraordinary and miscellaneous (P132.03 million),

promotional/advertising (P1,273.57 million), confidential/intelligence (P271.40

million), and consultancy (P1,246.65 million) expenditures, or a total of

P4,115.89 million, accounting for 0.61 percent of the total expenditures incurred

for CY 2012.

38 Subsidy income provided to GOCCs by the national government (NG) and other

government agencies increased by P39.48 billion or 102.55 percent from P38.50

billion in 2011 to P77.97 billion in 2012. Annex 13 presents a list of GOCCs and

the annual increase on subsidy received from the NG while Annex 14 details the

subsidy received from other government agencies.

39 An increase of P7.55 billion or 93.00 percent was depicted on taxes imposed by

the NG on income earned by GOCCs as it closed at P15.67 billion in CY 2012

from the 2011 figure of P8.12 billion. The top 20 GOCC taxpayers is presented

in Annex 15.

40 Net income after taxes amounted to P160.71 billion at the end of CY 2012. The

figure is P52.96 billion or 49.15 percent more than the previous year-end total of

P107.75 billion.

41 Annex 16 presents a list of the top 20 GOCCs that remitted the sum of P23.06

billion dividends to the NG during CY 2012.

Changes in equity

42 Total net worth of GOCCs increased by P318.79 billion or 16.62 percent from the

2011 total equity of P1,918.64 billion to P2,237.43 billion in 2012.

43 The bulk of the total equity were derived from surplus reserves amounting to

P1,209.86 billion which comprised 54.07 percent of the total equity. Other

accounts comprising government’s net worth include government equity at

P378.21 billion or 16.90 percent, share capital of P249.18 billion or 11.14

percent, members’ equity of P228.30 billion or 10.20 percent, and appraisal

increment at P187.19 billion or 8.37 percent. Collectively, retained earnings of

GOCCs closed at a negative balance of P194.03 billion. All other equity

accounts collectively contributed P178.72 billion or 7.99 percent of the total net

worth.

12

44 Presented in Chart II – 7 is the graphical illustration of the composition of equity

expressed in billion pesos.

Cash flows

45 The combined Cash Flow Statement showed cash and cash equivalents

amounting to P358.55 billion at the end of calendar year 2012. The figure is

P298.91 billion or 45.46 percent lower than the previous year-end total of

P657.46 billion. Chart II – 8 shows the comparative cash flow activities of

GOCCs for calendar years 2012 and 2011.

Chart II – 7

Composition of equity

(in billion pesos)

Chart II – 8

Comparative cash flow activities

(in billion pesos)

82.06

(45.15)

(196.81)

(101.12)34.38 33.52

-200

-150

-100

-50

0

50

100

2012 2011

Operating Investing Financing

378.21

187.19

1,209.86

-194.03 249.18

228.30

178.72

-200

0

200

400

600

800

1000

1200

1400

Government e

quity

Appraisal in

crement

Surplus reserve

s

Retained earnings

Share capital

Member's equity

Others

13

46 Net cash used in operating activities of CY 2012 reached P45.15 billion, down by

P127.21 billion or 155.02 percent lower than the previous year’s positive level

(net cash provided from operating activities) of P82.06 billion. GOCCs

collectively incurred cash outflows of P1,008.19 billion compared to the P963.04

billion cash inflows generated from operations.

47 A decrease of P95.69 billion was noted in the cash used in investing activities as

its collective cash outflows continued to outpace cash inflows during the last

couple of years. Net cash used for investing activities at P196.81 billion in CY

2012 is 94.62 percent higher than the P101.12 billion net cash used in investing

activities in CY 2011. Investing transactions in 2012 accumulated cash outflows

amounting to P662.03 billion which outpaced cash inflows of P465.22 billion.

48 Net cash provided by financing activities for CY 2012 generated P34.38 billion

which is P0.86 billion or 2.55 percent higher compared with the previous year

level of P33.52 billion. Net cash provided in financing activities resulted from

engaging inflows of P612.10 billion over P577.72 billion outflows.

14

Chapter III

Summary Financial Statements 49 The financial statements in the succeeding pages pertain to the summarized

financial data from the consolidated balance sheet, income statement, statement

of changes in equity and cash flow statements of each of the six Clusters of

GOCCs shown in this Chapter.

50 The overall balance sheet presents the total financial position of GOCCs as of

December 31, 2012 while the income statement shows their entire financial

performance for the year ended December 31, 2012. The statement of changes in

equity provides information on all the changes in equity. The cash flow

statement imparts information on the cash flow from operating, investing and

financing activities as well as the effects of exchange rate changes.

51 At the next level of summarization is the presentation of financial statement

components showing the GOCCs’ totals by Cluster and the corresponding

summary of significant accounting policies and other explanatory information.

52 Further, at the next lower level is the presentation of summarized financial

statements showing the total per GOCC under each cluster. The overall total for

the water districts is incorporated in Cluster 3 – Public Utilities.

53 While the summary financial statements of water districts are presented under

Cluster 3 – Public Utilities in the summary financial statements by GOCCs, these

are further summarized by region, by province and by specific water districts,

details of which are presented in Volume II–B of the AFR.

15

Republic of the Philippines

Government-Owned or Controlled Corporations

Summary Balance Sheet

December 31, 2012

(With corresponding figures for 2011)

In thousand pesos

2012 2011

Assets

Current Assets 5,879,906,856 5,583,940,047

Cash and cash equivalents 489,132,987 440,892,521

Gross international reserves 3,424,294,819 3,286,515,864

Short-term investments 807,351,351 769,690,143

Receivables (net) 1,076,854,685 986,918,041

Inventories (net) 44,499,083 64,161,050

Prepayments and deferred charges 11,035,336 9,020,510

Others 26,738,595 26,741,918

Non-current assets 3,523,066,074 3,233,605,051

Long-term receivables (net) 1,356,878,664 1,345,418,928

Long-term investments (net) 871,648,310 750,175,337

Property, plant and equipment (net) 877,825,848 800,367,646

Investment property 114,489,348 101,608,339

BOT electric plants under capital lease 47,506,125 49,465,232

Intangible assets 407,715 582,630

Others 254,310,064 185,986,939

Total assets 9,402,972,930 8,817,545,098

Liabilities and equity

Current liabilities 5,635,723,328 5,309,642,518

Deposit liabilities 3,580,338,103 3,137,006,530

Currency in circulation 692,657,077 648,910,933

Securities sold under agreements to repurchase 278,496,737 296,041,225

Trade and non-trade payables 418,420,847 425,837,163

Current portion of long-term debt 80,316,047 75,102,452

BOT lease obligation 32,087,802 34,261,796

Others 553,406,715 692,482,419

Non-current liabilities 1,529,815,209 1,589,259,883

Deposit liabilities 588,292 549,189

Bills payable 97,285,287 118,714,019

Mortgage payable 633,963 662,749

Notes payable 31,568,826 15,418,215

Bonds payable 256,524,960 271,620,506

Loans and advances payable 685,951,998 679,273,875


Provision for estimated liabilities 1,059,053 1,099,100

Accrued retirement benefits 3,014,091 3,027,681

Deferred credits 95,771,295 91,494,210

Others 92,061,119 93,306,227

Liabilities 7,165,538,537 6,898,902,401

Equity 2,237,434,393 1,918,642,697

Total liabilities and equity 9,402,972,930 8,817,545,098

16



Summary Income Statement

Year ended December 31, 2012


In thousand pesos

2012 2011

Income 794,179,285 730,458,302

Business and service income 640,800,604 602,383,504

Gains and premiums 84,719,558 78,984,314

Others 68,659,123 49,090,484

Share of National Government 18,258,591 16,805,151

Income after share of National Government 775,920,694 713,653,151

Expenses 677,515,157 636,276,788

Business expenses 282,829,218 282,820,959

Personal services 70,169,602 68,684,255

Maintenance and other operating expenses 192,275,605 180,409,923

Financial expenses 54,208,687 53,769,661

Others 78,032,045 50,591,990

Net income before subsidy 98,405,537 77,376,363

Subsidy income 77,973,135 38,495,761

Net income before tax 176,378,672 115,872,124

Income tax expense 15,671,120 8,119,551

Net income after tax 160,707,552 107,752,573

Other comprehensive income 32,402,824 25,741,255

Total comprehensive income 193,110,376 133,493,828

17



Summary Statement of Changes in Equity



In thousand pesos

2012 2011

Government equity

Balance, beginning of period 339,469,051 339,463,426

Additions/deductions 38,738,572 5,625

Balance, end of period 378,207,623 339,469,051

Share capital


Additions/deductions 54,267,077 32,196,778


Contingent capital

Balance, beginning of period 40,004 40,004

Additions/deductions 298 -

Balance, end of period 40,302 40,004

Share premium


Additions/deductions - 5,274


Invested capital


Additions/deductions (227,726) (341,589)


Other equity instrument – Hybrid Tier 1


Additions/deductions - -


Restricted capital


Additions/deductions (451,599) 1,287,974


Appraisal increment




Member’s equity




18

2012 2011

Net unrealized gains and losses




Donated capital




Equity in joint venture




Miscellaneous surplus


Additions/deductions (6,026,455) 242,688


Surplus reserves

Balance, beginning of period 1,091,236,498 1,097,010,183

Additions/deductions 118,623,812 (5,773,685)

Balance, end of period 1,209,860,310 1,091,236,498

Deposit for future subscriptions

Balance, beginning of period 1,794,576 273,439



Appraisal capital


Additions/deductions 6,127,369 -

Balance, end of period 6,316,416 189,047

Retained earnings

Balance, beginning of period (217,019,764) (275,622,118)


Balance, end of period (194,028,497) (217,019,764)

Treasury shares

Balance, beginning of period (735) (735)


Balance, end of period (735) (735)

19

2012 2011

Accumulated other comprehensive income




Non-controlling interest in the net assets

Balance, beginning of period 1,844 1,584,476

Additions/deductions 2,479 (1,582,632)


Total Equity 2,237,428,470* 1,918,642,703

* Variance is noted in the equity account presented in the Balance Sheet. The

composition of the variances is attributed to the unaudited financial statements of San

Jose Water District amounting to P5.92 million for the year 2012.

20



Summary Cash Flow Statement



In thousand pesos

2012 2011

Cash flow from operating activities

Cash inflows 963,041,608 972,301,102

Cash outflows 1,008,193,936 890,241,875

Net cash provided by (used in) operating activities (45,152,328) 82,059,227

Cash flow from investing activities

Cash inflows 465,217,488 439,180,815

Cash outflows 662,030,622 540,305,606

Net cash used in investing activities (196,813,134) (101,124,791)

Cash flow from financing activities

Cash inflows 612,101,656 691,735,478

Cash outflows 577,722,124 658,212,310

Net cash provided by financing activities 34,379,532 33,523,168

Effects of exchange rate changes on cash and cash

equivalents (91,325,898) 3,918,957

Net decrease in cash and cash equivalents (298,911,828) 18,376,561

Cash and cash equivalents, beginning of period 657,461,697 639,084,824

Cash and cash equivalents, end of period ** 358,549,869 657,461,385

** Of the total variances between the cash and cash equivalents reflected in the Summary

Cash Flow Statement vis-à-vis the Summary Balance Sheet amounting to P216.53

billion and P278.71 billion for the years ending 2012 and 2011, respectively, P216.56

billion and P278.76 billion were attributed to the balances reflected as main components

of the Bangko Sentral ng Pilipinas’ gross international reserves, short-term investments

and receivables reduced by the demand liabilities consisting of government demand

deposits and deposit of banks and other financial institutions. The remaining P0.01

billion and P0.01 billion for years 2012 and 2011, respectively, resulted from the

variances in the financial statements of water districts. The breakdown of which is

presented in Annex E of Volume II-B of this report.

Cluster 1 - Banking and Credit

Summary Statement of Financial Position

December 31, 2012


(In thousand pesos)

2011

Note 2012 As restated

Assets

Current assets 4,438,256,747 4,316,684,948

Cash and cash equivalents 2 237,074,515 229,810,906

Gross International reserves 3 3,424,294,819 3,286,515,864

Short-term investments 4 363,263,963 393,666,368

Receivables 5 403,507,095 395,813,407

Inventories 6 8,998,844 10,130,140

Prepayments and deferred charges 7 115,200 118,173

Others 8 1,002,311 630,090

Non-current assets 786,883,244 645,546,077

Long-term receivables 9 334,710,510 321,899,916

Long-term investments 10 323,100,992 256,940,016

Property, plant and equipment 11 24,253,615 22,918,848

Investment property 12 18,041,873 17,486,677

Others 13 86,776,254 26,300,620

Total assets 5,225,139,991 4,962,231,025


Liabilities

Current liabilities 5,105,294,241 4,773,315,215

Deposit liabilities 14 3,580,338,103 3,137,006,530

Currency in circulation 15 692,657,077 648,910,933

Securities sold under agreements to repurchase 16 278,496,737 296,041,225

Trade and non-trade payables 17 21,074,327 22,182,596

Current portion of long-term debt 19, 22 35,131,183 24,600,532

Others 18 497,596,814 644,573,399

Non-current liabilities 245,217,265 254,903,486

Deposit Liabilities 14 588,292 549,189

Bills payable 19 97,285,287 118,714,019

Notes payable 20 29,568,826 13,418,215

Bonds payable 21 32,796,054 35,043,530

Loans payable 22 66,170,631 68,534,449

Accrued retirement benefits 23 1,509,763 1,521,085

Deferred credits 24 471,497 346,087

Others 25 16,826,915 16,776,912

Total liabilities 5,350,511,506 5,028,218,701

Equity 26 (125,371,515) (65,987,676)


See Notes to Summary Financial Statements.

TOTAL

23


Statement of Financial Position

December 31, 2012


(In thousand pesos)

2011 2011

2012 As restated 2012 2011 2012 2011 2012 As restated

Assets

Current assets 3,875,974,409 3,753,148,853 871,636 1,019,498 148,204 108,222 503,427 458,454

Gross International reserves 3,424,294,819 3,286,515,864 - - - - - -

Cash and cash equivalents - - 93,795 87,941 147,921 108,222 422,774 407,338

Short-term investments 218,142,721 240,373,317 - - - - - -

Receivables 224,522,112 216,362,492 777,841 777,841 1 - 67,071 40,103

Inventories 8,729,543 9,897,180 - - 5 - 13,422 10,862

Prepayments and deferred charges - - - - 277 - 160 151

Others 285,214 - - 153,716 - - - -

Non-current assets 99,953,135 34,309,211 714,982 715,743 1,188 - 39,717 33,242


Property, plant and equipment 16,498,532 15,375,347 - - 1,188 - - -

Investment property 10,429,445 9,745,270 - - - - - -

Others 73,025,158 9,188,594 714,982 715,743 - - 39,717 33,242

Total assets 3,975,927,544 3,787,458,064 1,586,618 1,735,241 149,392 108,222 543,144 491,696


Liabilities

Current liabilities 3,888,685,274 3,623,148,369 416,565,190 416,564,703 592 1,041 222,201 185,987

Deposit liabilities 2,854,530,489 2,466,251,744 - - - - - -

Currency in circulation 692,657,077 648,910,933 - - - - - -

Securities sold under agreements to repurchase 278,496,737 296,041,225 - - - - - -

Trade and non-trade payables 449,700 449,345 166 273,287 592 1,041 86,334 87,166

Others 62,551,271 211,495,122 416,565,024 416,291,416 - - 135,867 98,821

Non-current liabilities 22,726,520 24,761,093 105 3,714 - - - -

Bonds Payable 20,537,695 21,957,684 - - - - -

Loans payable 52,792 967,965 - - - - - -

Accrued retirement benefits 1,501,127 1,514,816 - - - - - -

Others 634,906 320,628 105 3,714 - - - -

Total liabilities 3,911,411,794 3,647,909,462 416,565,295 416,568,417 592 1,041 222,201 185,987

Equity 64,515,750 139,548,602 (414,978,677) (414,833,176) 148,800 107,181 320,943 305,709

Total liabilities and equity 3,975,927,544 3,787,458,064 1,586,618 1,735,241 149,392 108,222 543,144 491,696

BSP CB-BOL CIC PICCI

24



December 31, 2012


(In thousand pesos)

2011 2011 2011

2012 As restated 2012 As restated 2012 As restated 2012 2011

Assets

Current assets 349,308,061 327,411,457 686,957 730,112 40,163 51,539 51,228 43,184

Cash and cash equivalents 99,734,270 70,150,648 547,523 565,404 36,126 51,466 21,187 20,301

Short-term investments 96,981,515 99,892,009 6,646 6,136 - - - -

Receivables 152,592,276 157,368,800 130,300 156,190 4,037 73 29,802 22,726

Inventories - - 1,774 1,667 - - - -

Prepayments and deferred charges - - 714 715 - - 239 157

Non-current assets 11,766,910 12,503,985 21,180 22,251 40,104 43,924 7,171 7,606

Long-term investments 3,230,109 3,432,249 65 65 36,360 28,900 5,000 5,000

Property, plant and equipment 2,240,851 2,086,178 16,975 18,705 - - 1,491 1,885

Investment property 567,302 489,882 - - - - - -

Others 5,728,648 6,495,676 4,140 3,481 3,744 15,024 680 721

Total assets 361,074,971 339,915,442 708,137 752,363 80,267 95,463 58,399 50,790


Liabilities

Current liabilities 226,989,077 195,840,834 265,458 279,059 4,196 1,451 11,611 5,321

Deposit liabilities 176,920,854 158,369,550 223,909 237,254 - - - -

Trade and non-trade payables - - 14,580 13,649 4,196 1,451 11,450 5,160

Current portion of long-term debt 35,041,742 24,545,493 - - - - - -

Others 15,026,481 12,925,791 26,969 28,156 - - 161 161

Non-current liabilities 91,829,972 102,453,964 - - 3,580 1,044 8,636 6,269

Bills payable 67,436,787 82,883,903 - - - - - -

Notes Payable 12,134,826 6,484,215 - - - - - -

Bonds payable 12,258,359 13,085,846 - - - - - -

Accrued retirement benefits - - - - - - 8,636 6,269

- - - - - 1,044 - -

Others - - - - 3,580 - - -

Total liabilities 318,819,049 298,294,798 265,458 279,059 7,776 2,495 20,247 11,590

Equity 42,255,922 41,620,644 442,679 473,304 72,491 92,968 38,152 39,200

Total liabilities and equity 361,074,971 339,915,442 708,137 752,363 80,267 95,463 58,399 50,790

Deferred credits

DBP AAIIBP DBPMC DCI

25



December 31, 2012


(In thousand pesos)

2012 2011 2012 2011 2012 2011 2012 2011

Assets

Current assets 278,483 181,490 6,672,515 6,574,396 189,763,048 203,505,645 244,628 246,517

Cash and cash equivalents 104,537 58,974 930,307 1,639,668 131,509,538 143,721,184 115,768 127,194

Short-term investments - - 894,352 1,102,494 47,085,402 52,201,692 - -

Receivables 168,098 116,709 4,847,856 3,832,234 11,168,108 7,582,769 91,861 86,231

Inventories 214 159 - - - - 15,341 12,951

Prepayments and deferred charges 5,210 5,224 - - - - 21,658 20,141

Others 424 424 - - - - - -

Non-current assets 1,201,708 970,007 18,377 15,304 499,365,647 439,770,237 240,470 183,227

Long-term receivables 1,198,684 966,477 - - 292,786,156 276,117,645 - -

Long-term investments - - - - 189,207,766 143,685,814 109,743 90,135

Property, plant and equipment 3,007 3,396 52 52 4,680,485 4,561,261 11,575 4,783

Investment property - - 13,672 14,096 6,741,972 6,976,018 112,673 81,663

Others 17 134 4,653 1,156 5,949,268 8,429,499 6,479 6,646

Total assets 1,480,191 1,151,497 6,690,892 6,589,700 689,128,695 643,275,882 485,098 429,744


Liabilities

Current liabilities 111,537 64,651 58,769 57,619 546,247,820 510,172,268 66,625 57,329

Deposit liabilities - - - - 543,260,714 506,908,786 - -

Trade and non-trade payables 2,849 2,337 3,645 3,326 - - 58,181 48,488

Current portion of long-term debt 45,808 11,406 43,633 43,633 - - - -

Others 62,880 50,908 11,491 10,660 2,987,106 3,263,482 8,444 8,841

Non-current liabilities 647,367 478,618 436,331 479,965 60,977,449 57,273,407 146 74

Deposit liabilities - - - - 588,292 549,189 - -

Bills payable - - - - 26,823,600 33,394,415 - -

Notes payable - - - - 17,434,000 6,934,000 - -

Loans payable 336,978 234,308 436,331 479,965 - - - -

310,389 244,310 - - - - 146 74

Others - - - - 16,131,557 16,395,803 - -

Total liabilities 758,904 543,269 495,100 537,584 607,225,269 567,445,675 66,771 57,403

Equity 721,287 608,228 6,195,792 6,052,116 81,903,426 75,830,207 418,327 372,341

Total liabilities and equity 1,480,191 1,151,497 6,690,892 6,589,700 689,128,695 643,275,882 485,098 429,744

Deferred credits

DLC IGLF LBP LBRDC

26



December 31, 2012


(In thousand pesos)

2011 2011


Assets

Current assets 17,933 18,512 689,291 416,812 696,239 890,597 164,376 116,352

Cash and cash equivalents 10,159 12,605 619,739 367,043 44,594 19,973 79,825 72,262

Short-term investments - - 412 381 - - - -

Receivables 7,506 5,807 68,219 48,144 645,012 862,714 36,976 18,384

Inventories 39 39 - - - - 39,883 17,913

Prepayments and deferred charges 193 61 765 1,107 1,924 2,764 6,369 6,944

Others 36 - 156 137 4,709 5,146 1,323 849

Non-current assets 88,832 81,952 214,831 455,768 2,436,093 2,068,103 5,616 5,494

Long-term receivables - - - - 2,319,316 1,957,004 - -

Long-term investments 85,907 78,790 186,035 426,082 7,060 8,137 57 57

Property, plant and equipment 2,647 3,012 25,603 26,964 35,170 35,210 909 787

Investment property - - - - 2,314 13,567 4,650 4,650

Others 278 150 3,193 2,722 72,233 54,185 - -

Total assets 106,765 100,464 904,122 872,580 3,132,332 2,958,700 169,992 121,846


Liabilities

Current liabilities 2,786 1,759 101,315 101,028 1,315,106 1,588,740 63,357 24,127

Trade and non-trade payables 2,786 1,759 89,854 87,911 1,278,809 1,549,040 54,552 16,502

Others - - 11,461 13,117 36,297 39,700 8,805 7,625

Non-current liabilities - - - - 605,147 239,865 - -

Bills payable - - - - 444,185 139,206 - -

- - - - 160,962 100,659 - -

Total liabilities 2,786 1,759 101,315 101,028 1,920,253 1,828,605 63,357 24,127

Equity 103,979 98,705 802,807 771,552 1,212,079 1,130,095 106,635 97,719

Total liabilities and equity 106,765 100,464 904,122 872,580 3,132,332 2,958,700 169,992 121,846

Deferred credits

LCDFI LIBI LLC MSI

27



December 31, 2012


(In thousand pesos)

2011 2011 2011

2012 2011 2012 2011 2012 As restated 2012 As restated 2012 As restated

Assets

Current assets 3,663,508 3,433,953 1,794,652 2,003,715 240,264 224,555 2,746,487 12,044,961 3,701,238 4,056,124

Cash and cash equivalents 260,135 278,107 112,216 344,962 2,844 3,273 2,146,154 11,672,818 135,103 101,523

Short-term investments - - - - - - - - 152,915 90,339

Receivables 3,353,583 3,108,811 1,680,578 1,653,585 37,448 31,453 - - 3,278,410 3,738,341

Inventories - - 420 332 198,203 189,037 - - - -

Prepayments and deferred charges 1,873 2,114 1,174 3,232 1,769 792 - - 72,875 74,771

Others 47,917 44,921 264 1,604 - - 600,333 372,143 61,935 51,150

Non-current assets 215,556 191,506 3,441,357 3,368,351 27,233 29,361 164,561,036 148,859,587 2,522,101 1,911,218

Long-term receivables - - 962,494 882,952 - - 36,910,079 41,432,774 533,781 543,064

Long-term investments - - 1,903,025 1,858,497 - - 126,598,894 106,259,764 1,730,971 1,066,526

Property, plant and equipment 11,160 12,802 468,491 546,885 13,208 14,962 153,987 158,949 88,284 67,670

Investment property 74,249 56,642 - - - - - - 95,596 104,889

Others 130,147 122,062 107,347 80,017 14,025 14,399 898,076 1,008,100 73,469 129,069

Total assets 3,879,064 3,625,459 5,236,009 5,372,066 267,497 253,916 167,307,523 160,904,548 6,223,339 5,967,342


Liabilities

Current liabilities 154,054 143,990 42,136 282,745 1,039,408 951,741 17,844,943 18,517,834 5,502,786 5,324,619

Deposit liabilities - - - - - - - - 5,402,137 5,239,196

Trade and non-trade payables 95,268 87,837 9,549 60,633 1,034,075 950,741 17,844,943 18,517,834 32,798 25,089

Others 58,786 56,153 32,587 222,112 5,333 1,000 - - 67,851 60,334

Non-current liabilities 2,580,715 2,296,495 168,836 172,436 6,577 23,394 65,225,884 66,713,148 - -

Bills payable 2,580,715 2,296,495 - - - - - - - -

Loans payable - - 112,069 115,669 6,577 23,394 65,225,884 66,713,148 - -

Others - - 56,767 56,767 - - - - - -

Total liabilities 2,734,769 2,440,485 210,972 455,181 1,045,985 975,135 83,070,827 85,230,982 5,502,786 5,324,619

Equity 1,144,295 1,184,974 5,025,037 4,916,885 (778,488) (721,219) 84,236,696 75,673,566 720,553 642,723

Total liabilities and equity 3,879,064 3,625,459 5,236,009 5,372,066 267,497 253,916 167,307,523 160,904,548 6,223,339 5,967,342

PCFC NLDC PDICNFC PPSBI

28

2011


Income 27 151,006,301 192,123,256

100,940,784 106,364,621

38,158,157 74,995,724

11,907,360 10,762,911

Expenses 28 227,238,504 208,913,812

111,156,650 120,350,335

19,615,301 19,290,583

21,214,151 19,979,626

9,987,228 9,499,539

65,265,174 39,793,729

Net income/(loss) before subsidy (76,232,203) (16,790,556)

Subsidy income 27 3,238,476 1,730,382

Net income/(loss) before tax (72,993,727) (15,060,174)

2,589,374 2,890,093

(75,583,101) (17,950,267)

29 1,449,262 12,976,634

Total comprehensive income/(loss) (74,133,839) (4,973,633)

Cluster 1 - Banking and CreditSummary Statement of Profit or Loss and Other Comprehensive Income Year ended December 31, 2012(With corresponding figures for 2011)

TOTAL


Net income/(loss) after tax

Income tax expense

Business expenses

(In thousand pesos)

Personal services

Maintenance and other operating expenses

Other comprehensive income

Others

Business and service income

Gains and premiums

Others

Financial expenses

29

Statement of Profit or Loss and Other Comprehensive Income

2011

2012 2011 2012 2011 2012 2011 2012 As restated

Income 64,829,032 117,587,330 4,291 3,458 1,471 495 212,318 167,783

40,658,673 44,877,707 3,171 3,448 - - 194,729 154,419

17,842,716 67,317,955 - - - - - 4

6,327,643 5,391,668 1,120 10 1,471 495 17,589 13,360

Expenses 160,164,719 151,044,603 167,382 294,481 11,595 1,041 207,834 164,142

96,539,372 101,285,097 - - - - - -

9,172,279 8,860,312 183 224 1,998 956 64,851 58,885

2,831,927 3,601,183 16,528 2,275 9,597 85 142,978 105,257

850,213 769,510 682 13,949 - - - -

50,770,928 36,528,501 149,989 278,033 - - 5 -

Net income/(loss) before subsidy (95,335,687) (33,457,273) (163,091) (291,023) (10,124) (546) 4,484 3,641

Subsidy income - - - - 28,410 17,500 - -

Net income/(loss) before tax (95,335,687) (33,457,273) (163,091) (291,023) 18,286 16,954 4,484 3,641

Income tax expense 44,576 230,834 - - - - - -

Net income/(loss) after tax (95,380,263) (33,688,107) (163,091) (291,023) 18,286 16,954 4,484 3,641

(38,203) 4,315,464 - - - - - -

Total comprehensive income/(loss) (95,418,466) (29,372,643) (163,091) (291,023) 18,286 16,954 4,484 3,641


CICBSP PICCI

(In thousand pesos)



CB-BOL

Other comprehensive income/(loss)

Others


Gains and premiums

Others

Business expenses

Personal services


Financial expenses

30


2011 2011

2012 As restated 2012 As restated 2012 2011 2012 2011

Income 28,448,347 19,654,985 45,036 33,735 3,920 6,857 63,399 58,071

14,162,475 14,226,463 14,792 8,562 1,008 2,359 60,431 55,128

13,079,772 4,023,658 - - - 52 - -

1,206,100 1,404,864 30,244 25,173 2,912 4,446 2,968 2,943

Expenses 23,693,763 14,924,501 75,661 88,037 633 1,545 58,035 50,707

2,117,953 2,567,248 1,823 2,102 - - 12,965 9,986

2,425,532 2,567,724 37,253 35,310 - - 41,692 36,021

2,962,756 2,731,090 36,432 50,463 633 1,106 3,378 4,700

4,687,633 4,305,854 153 162 - - - -

11,499,889 2,752,585 - - - 439 - -

Net income/(loss) before tax 4,754,584 4,730,484 (30,625) (54,302) 3,287 5,312 5,364 7,364

Income tax expense 621,243 792,983 - - 142 2,061 1,412 2,003

Net income/(loss) after tax 4,133,341 3,937,501 (30,625) (54,302) 3,145 3,251 3,952 5,361

256,111 (363,195) - - 3,917 - - -

Total comprehensive income (loss) 4,389,452 3,574,306 (30,625) (54,302) 7,062 3,251 3,952 5,361


Financial expenses

Others

Business expenses

DCI


Gains and premiums


Other comprehensive income/(loss)

(In thousand pesos)

DBPMC



DBP AAIIBP

Personal services

Others

31


2012 2011 2012 2011 2012 2011 2012 2011

Income 72,702 76,580 232,070 247,100 37,683,098 34,200,828 220,395 153,875

68,765 68,315 231,301 243,627 27,013,835 28,073,260 217,958 147,195

- - 144 678 6,613,665 2,551,756 2 -

3,937 8,265 625 2,795 4,055,598 3,575,812 2,435 6,680

Expenses 86,693 63,746 22,457 26,912 26,151,914 25,162,276 194,852 136,530

- - - - 5,388,674 7,151,514 164,013 103,286

15,953 13,760 - - 6,477,791 6,455,650 14,839 14,828

55,434 39,023 17,651 21,562 9,338,279 9,412,708 16,000 18,416

15,306 10,963 4,806 5,350 2,103,155 1,911,324 - -

- - - - 2,844,015 231,080 - -

Net income/(loss) before tax (13,991) 12,834 209,613 220,188 11,531,184 9,038,552 25,543 17,345

Income tax expense 343 3,619 34,451 29,387 806,466 200,000 6,628 4,069

Net income/(loss) after tax (14,334) 9,215 175,162 190,801 10,724,718 8,838,552 18,915 13,276

Other comprehensive income/(loss) - - (5,985) 36,508 1,328,366 3,031,334 - -

Total comprehensive income/(loss) (14,334) 9,215 169,177 227,309 12,053,084 11,869,886 18,915 13,276

LBP LBRDC


Gains and premiums

IGLF


Financial expenses

Others

DLC

(In thousand pesos)

Personal services




Others

Business expenses

32


2011 2011


Income 29,578 27,407 115,309 123,649 519,963 498,237 182,852 133,312

24,999 23,021 85,976 90,964 461,880 443,526 182,852 133,312

- - 228 284 - - - -

4,579 4,386 29,105 32,401 58,083 54,711 - -

Expenses 24,304 23,001 30,959 34,389 333,633 340,082 170,644 125,672

22,890 21,508 - - 141,917 148,369 155,266 112,755

- - 15,995 18,610 16,139 15,015 15,378 6,702

1,414 1,493 14,915 15,759 88,805 97,387 - 6,215

- - - 20 86,772 79,311 - -

- - 49 - - - - -

Net income before tax 5,274 4,406 84,350 89,260 186,330 158,155 12,208 7,640

Income tax expense - - 16,767 17,247 40,739 31,521 3,291 1,974

Net income after tax 5,274 4,406 67,583 72,013 145,591 126,634 8,917 5,666




MSILLC

(In thousand pesos)

Others


Financial expenses

LIBI

Others

Business expenses

Personal services


Gains and premiums

LCDFI

33


2011 2011 2011


Income 344,073 359,892 341,715 366,140 107,725 100,992 17,021,860 17,823,173 527,147 499,357

342,672 357,343 271,227 278,014 106,899 100,169 16,379,959 16,654,561 457,182 423,228

- - - - - - 613,949 1,100,798 7,681 539

1,401 2,549 70,488 88,126 826 823 27,952 67,814 62,284 75,590

Expenses 259,308 280,534 218,275 271,369 149,998 127,766 14,719,065 15,259,166 496,780 493,312

- - - - 87,833 66,681 6,400,212 8,780,827 123,732 100,962

39,958 40,181 61,667 57,008 12,888 11,374 1,057,584 952,506 143,321 145,517

89,129 109,749 154,048 211,551 14,072 14,016 5,198,603 3,296,008 221,572 239,580

130,221 130,604 2,560 2,810 35,060 34,867 2,062,512 2,229,825 8,155 4,990

- - - - 145 828 154 - - 2,263

Net income/(loss) before subsidy 84,765 79,358 123,440 94,771 (42,273) (26,774) 2,302,795 2,564,007 30,367 6,045

Subsidy income - - - - - - 3,210,066 1,712,882 - -

Net income/(loss) before tax 84,765 79,358 123,440 94,771 (42,273) (26,774) 5,512,861 4,276,889 30,367 6,045

Income tax expense 21,462 17,078 - - - - 991,854 1,557,317 - -

Net income/(loss) after tax 63,303 62,280 123,440 94,771 (42,273) (26,774) 4,521,007 2,719,572 30,367 6,045

Other comprehensive income/(loss) - - - - - - (102,407) 5,950,877 7,463 5,646

Total comprehensive income/(loss) 63,303 62,280 123,440 94,771 (42,273) (26,774) 4,418,600 8,670,449 37,830 11,691

Others

Gains and premiums

Others


(In thousand pesos)



NLDC


PPSBIPDIC

Financial expenses


Personal services

Business expenses

PCFC NFC

34





(In thousand pesos)

2011


Government equity

Balance at beginning of period 3,035,928 3,035,928

Additions/(deductions) - -

Balance at end of period 3,035,928 3,035,928

Share capital


Additions/(deductions) 20,228,545 10,249,235


Restricted capital




Appraisal increment

Balance at beginning of period 555,427 560,671

Additions/(deductions) (31,012) (5,244)

Balance at end of period 524,415 555,427

Surplus reserves


Additions/(deductions) 9,279,847 (86,145,599)


Retained earnings/(Deficit)

Balance at beginning of period (300,782,660) (352,195,701)

Additions/(deductions) (90,310,481) 51,413,041

Balance at end of period (391,093,141) (300,782,660)

Accumulated other comprehensive income


Additions/(deductions) 29 1,449,262 12,976,634


Other Equity Instrument - Hybrid Tier 1




Share premium




Total Equity 26 (125,371,515) (65,987,676)

Total


35


Statement of Changes in Equity



(In thousand pesos)

2011

2012 2011 2012 2011 2012 2011 2012 As restated

Share capital

Balance at beginning of period 20,000,000 10,000,000 - - 90,000 90,000 50,000 50,000

Additions/(deductions) 20,000,000 10,000,000 - - 23,333 - - -

Balance at end of period 40,000,000 20,000,000 - - 113,333 90,000 50,000 50,000

Surplus reserves

Balance at beginning of period 77,798,147 167,315,268 - - - - 2,000 2,000

Additions/(deductions) 709,693 (89,517,121) - - - -

Balance at end of period 78,507,840 77,798,147 - - - - 2,000 2,000

Retained earnings

Balance at beginning of period 49,767,955 8,997,233 (414,833,176) (414,657,803) 17,181 227 253,709 175,458

Additions/(deductions) (95,704,342) 40,770,722 (145,501) (175,373) 18,286 16,954 15,234 78,251

Balance at end of period (45,936,387) 49,767,955 (414,978,677) (414,833,176) 35,467 17,181 268,943 253,709

Accumulated other comprehensive income/(loss)

Balance at beginning of period (8,017,500) (12,332,964) - - - - - -

Additions/(deductions) (38,203) 4,315,464 - - - - - -

Balance at end of period (8,055,703) (8,017,500) - - - - - -

Total Equity 64,515,750 139,548,602 (414,978,677) (414,833,176) 148,800 107,181 320,943 305,709

BSP CB-BOL PICCICIC

36





(In thousand pesos)

2011 2011

2012 As restated 2012 2011 2012 As restated 2012 2011

Share capital

Balance at beginning of period 12,500,000 12,500,000 200,002 200,002 45,000 45,000 20,280 20,280

Additions/(deductions) - - - - - - - -

Balance at end of period 12,500,000 12,500,000 200,002 200,002 45,000 45,000 20,280 20,280

Appraisal increment

Balance at beginning of period - - - 5,244 - - - -

Additions/(deductions) - - - (5,244) - - - -

Balance at end of period - - - - - - - -

Surplus reserves

Balance at beginning of period 273,357 265,192 2,493 2,493 - - - -

Additions/(deductions) 2,495 8,165 - - - - - -

Balance at end of period 275,852 273,357 2,493 2,493 - - - -

Retained earnings

Balance at beginning of period 24,211,392 21,650,896 (534,429) (480,127) 39,307 36,056 18,920 13,559

Additions/(deductions) 376,672 2,560,496 (30,625) (54,302) (24,394) 3,251 (1,048) 5,361

Balance at end of period 24,588,064 24,211,392 (565,054) (534,429) 14,913 39,307 17,872 18,920

Accumulated other comprehensive income(loss)

Balance at beginning of period (1,889,091) (1,525,896) - - 8,661 8,661 - -

Additions/(deductions) 256,111 (363,195) - - 3,917 - -

Balance at end of period (1,632,980) (1,889,091) - - 12,578 8,661 - -

Other Equity Instrument - Hybrid Tier 1

Balance at beginning of period 6,524,986 6,524,986 - - - - - -


Balance at end of period 6,524,986 6,524,986 - - - - - -

Share premium

Balance at beginning of period - - 805,238 805,238 - - - -


Balance at end of period - - 805,238 805,238 - - - -

Total Equity 42,255,922 41,620,644 442,679 473,304 72,491 92,968 38,152 39,200

AAIIBP DBPMC DCIDBP

37





(In thousand pesos)

2012 2011 2012 2011 2012 2011 2012 2011

Government equity

Balance at beginning of period - - 803,304 803,304 - - - -



Share capital

Balance at beginning of period 600,000 600,000 - - 12,072,098 12,072,098 105,163 105,163

Additions/(deductions) 132,000 - - - - - 33,212 -

Balance at end of period 732,000 600,000 - - 12,072,098 12,072,098 138,375 105,163

Appraisal increment

Balance at beginning of period - - - - - - 61,200 61,200

Additions/(deductions) - - - - - -

Balance at end of period - - - - - - 61,200 61,200

Surplus reserves

Balance at beginning of period - - 190,187 181,138 14,472,046 13,972,047 - -

Additions/(deductions) - - 12,659 9,049 3,755,000 499,999 - -

Balance at end of period - - 202,846 190,187 18,227,046 14,472,046 - -

Retained earnings

Balance at beginning of period 8,229 (986) 5,002,573 4,847,822 25,912,839 20,223,406 205,978 192,549

Additions/(deductions) (18,941) 9,215 137,002 154,751 989,853 5,689,433 12,774 13,429

Balance at end of period (10,712) 8,229 5,139,575 5,002,573 26,902,692 25,912,839 218,752 205,978


Balance at beginning of period (1) (1) 56,052 19,544 23,373,224 20,341,890 - -

Additions/(deductions) - - (5,985) 36,508 1,328,366 3,031,334 - -

Balance at end of period (1) (1) 50,067 56,052 24,701,590 23,373,224 - -

Total Equity 721,287 608,228 6,195,792 6,052,116 81,903,426 75,830,207 418,327 372,341

IGLF LBP LBRDCDLC

38





(In thousand pesos)

2011 2011


Share capital

Balance at beginning of period - - 300,000 300,000 485,552 485,552 100,000 100,000


Balance at end of period 300,000 300,000 485,552 485,552 100,000 100,000

Restricted capital

Balance at beginning of period 15,000 15,000 - - - - - -


Balance at end of period 15,000 15,000 - - - - - -

Surplus reserves

Balance at beginning of period 20,618 20,618 - - - - - -



Retained earnings

Balance at beginning of period 63,087 58,680 471,552 441,084 536,397 464,145 (2,281) (10,302)

Additions/(deductions) 5,274 4,407 31,255 30,468 81,984 72,252 8,916 8,021

Balance at end of period 68,361 63,087 502,807 471,552 618,381 536,397 6,635 (2,281)


Balance at beginning of period - - - - (5,825) (5,825) - -


Balance at end of period - - - - (5,825) (5,825) - -

Share premium

Balance at beginning of period - - - - 113,971 113,971 - -



Total Equity 103,979 98,705 802,807 771,552 1,212,079 1,130,095 106,635 97,719

LIBI LLC MSILCDFI

39





(In thousand pesos)

2011 2011 2011


Government equity

Balance at beginning of period - - 2,232,624 2,232,624 - - - - - -

Additions/(deductions) - - - - - - - - - -


Share capital

Balance at beginning of period 1,000,000 1,000,000 - - 104,545 1,017 - - 549,235 300,000

Additions/(deductions) - - - - - 103,528 - - 40,000 249,235

Balance at end of period 1,000,000 1,000,000 - - 104,545 104,545 - - 589,235 549,235

Restricted capital

Balance at beginning of period - - - - - - 3,000,000 3,000,000 - -

Additions/(deductions) - - - - - - - - - -

Balance at end of period - - - - - - 3,000,000 3,000,000 - -

Appraisal increment

Balance at beginning of period - - 494,227 494,227 - - - - - -

Additions/(deductions) - - (31,012) - - - - - - -

Balance at end of period - - 463,215 494,227 - - - - - -

Surplus reserves

Balance at beginning of period - - - - - - 60,295,282 57,440,973 - -

Additions/(deductions) - - - - - - 4,800,000 2,854,309 - -

Balance at end of period - - - - - - 65,095,282 60,295,282 - -

Retained earnings

Balance at beginning of period 184,974 213,485 2,190,034 2,088,564 (825,764) (802,589) 6,469,483 4,254,620 59,380 98,322

Additions/(deductions) (40,679) (28,511) 139,164 101,470 (57,269) (23,175) 3,865,537 2,214,863 30,367 (38,942)

Balance at end of period 144,295 184,974 2,329,198 2,190,034 (883,033) (825,764) 10,335,020 6,469,483 89,747 59,380


Balance at beginning of period - - - - - - 5,908,801 (42,076) 34,108 28,462

Additions/(deductions) - - - - - - (102,407) 5,950,877 7,463 5,646

Balance at end of period - - - - - - 5,806,394 5,908,801 41,571 34,108

Total Equity 1,144,295 1,184,974 5,025,037 4,916,885 (778,488) (721,219) 84,236,696 75,673,566 720,553 642,723

NLDC NFC PPSBIPDICPCFC

40



(In thousand pesos)

2011

As restated

Cash flows from operating activities

Cash inflows 210,035,974 304,395,644

Cash outflows (383,364,978) (296,094,637)

Net cash generated by (used in) operating activities (173,329,004) 8,301,007

Cash flows from investing activities

Cash inflows 146,839,133 162,818,156

Cash outflows (300,378,076) (222,419,978)


Cash flows from financing activities

Cash inflows 517,364,306 557,127,905

Cash outflows (439,581,115) (514,967,299)

Net cash generated by financing activities 77,783,191 42,160,606

Net decrease in cash and cash equivalents (249,084,756) (9,140,209)

(90,801,080) 3,780,700


CASH AND CASH EQUIVALENTS, END OF PERIOD 2 106,484,171 446,370,007


equivalents


Summary Statement of Cash Flows


TOTAL

Note 2012

41



(In thousand pesos)

2011

2012 2011 2012 2011 2012 2011 2012 As restated


Cash inflows 69,735,275 126,439,283 8,391 62,830 29,88117,995 184,692 255,465

Cash outflows (303,440,660) (177,830,087) (2,385) (3,329) (12,241) - (180,005) (176,013)

Net cash generated by (used in) operating activities (233,705,385) (51,390,804) 6,006 59,501 17,640 17,995 4,687 79,452


Cash inflows - - - - - - - -

Cash outflows (83,325,502) (57,424,867) (152) (123) (1,274) - - -

Net cash generated by (used in) investing activities (83,325,502) (57,424,867) (152) (123) (1,274) - - -


Cash inflows 481,341,271 533,294,703 - - 23,333 57,500 14,362 75,690

Cash outflows (417,998,445) (490,698,097) - (44,592) - - (3,613) (1,080)

Net cash generated by (used in) financing activities 63,342,826 42,596,606 - (44,592) 23,333 57,500 10,749 74,610

Net increase (decrease) in cash and

cash equivalents (253,688,061) (66,219,065) 5,854 14,786 39,699 75,495 15,436 154,062

(93,461,384) 4,011,751 - - - - - -

Cash and cash equivalents, beginning of period 216,559,101 278,766,415 87,941 73,155 108,222 32,727 407,338 253,276

CASH AND CASH EQUIVALENTS, END OF PERIOD (130,590,344) 216,559,101 93,795 87,941 147,921 108,222 422,774 407,338

CB-BOL CIC PICCI


Statement of Cash Flows


equivalents

BSP

42



(In thousand pesos)

2011 2011

2012 As restated 2012 As restated 2012 2011 2012 2011


Cash inflows 42,289,015 42,872,091 74,259 48,009 14,023 20,831 57,451 60,241

Cash outflows (16,251,000) (24,483,264) (89,182) (504,183) (3,101) (3,975) (56,565) (56,460)

Net cash generated by (used in) operating activities 26,038,015 18,388,827 (14,923) (456,174) 10,922 16,856 886 3,781


Cash inflows - - 2,706 5,963 1,277 7,555 - -

Cash outflows (9,180,287) (12,301,432) (5,664) (6,079) (27,539) - (161)

Net cash generated by (used in) investing activities (9,180,287) (12,301,432) (2,958) (116) (26,262) 7,555 - (161)


Cash inflows 16,939,574 13,017,000 - - - - - -

Cash outflows (4,213,680) (6,154,541) - - - - - -

Net cash generated by financing activities 12,725,894 6,862,459 - - - - - -


cash equivalents 29,583,622 12,949,854 (17,881) (456,290) (15,340) 24,411 886 3,620

Cash and cash equivalents, beginning of period 70,150,648 57,200,794 565,404 1,021,694 51,466 27,055 20,301 16,681

CASH AND CASH EQUIVALENTS, END OF PERIOD 99,734,270 70,150,648 547,523 565,404 36,126 51,466 21,187 20,301


DCIDBP AAIIBP DBPMC


43



(In thousand pesos)

2012 2011 2012 2011 2012 2011 2012 2011


Cash inflows 66,838 61,041 432,246 135,722 70,458,980 108,642,960 215,170 162,744

Cash outflows (65,043) (50,857) (1,098,398) (276,657) (47,456,174) (69,741,772) (206,750) (176,159)

Net cash generated by (used in) operating activities 1,795 10,184 (666,152) (140,935) 23,002,806 38,901,188 8,420 (13,415)


Cash inflows 131,760 82,537 424 1,084 5,168,484 8,941,001 10,493 12,319

Cash outflows (352,457) (128,618) - - (44,867,597) (3,218,148) (24,198) (33,288)

Net cash generated by (used in) investing activities (220,697) (46,081) 424 1,084 (39,699,113) 5,722,853 (13,705) (20,969)


Cash inflows 282,000 50,000 - - 13,428,556 4,382,214 - -

Cash outflows (17,535) (4,286) (43,633) (43,633) (11,604,349) (11,464,442) (6,141) -

Net cash generated by (used in) financing activities 264,465 45,714 (43,633) (43,633) 1,824,207 (7,082,228) (6,141) -


cash equivalents 45,563 9,817 (709,361) (183,484) (14,872,100) 37,541,813 (11,426) (34,384)

- - - - 2,660,454 (231,080) - -

Cash and cash equivalents, beginning of period 58,974 49,157 1,639,668 1,823,152 143,721,184 106,410,451 127,194 161,578

CASH AND CASH EQUIVALENTS, END OF PERIOD 104,537 58,974 930,307 1,639,668 131,509,538 143,721,184 115,768 127,194



equivalents

IGLF LBRDCDLC LBP


44



(In thousand pesos)

2011 2011



Cash inflows 9,850 6,352 103,140 118,947 489,679 498,475 166,429 270,175

Cash outflows (5,048) (1,587) (53,288) (75,164) (389,393) (649,137) (143,569) (227,505)

Net cash generated by (used in) operating activities 4,802 4,765 49,852 43,783 100,286 (150,662) 22,860 42,670


Cash inflows 48,962 36,154 240,162 61,233 - - - 821

Cash outflows (56,210) (34,630) (1,318) (596) (2,169) (201) (15,297) (21,367)

Net cash generated by (used in) investing activities (7,248) 1,524 238,844 60,637 (2,169) (201) (15,297) (20,546)


Cash inflows - - - - 1,843,800 1,583,396 - -

Cash outflows - - (36,000) (35,438) (1,917,296) (1,479,955) - -

Net cash generated by (used in) financing activities - - (36,000) (35,438) (73,496) 103,441 - -


cash equivalents (2,446) 6,289 252,696 68,982 24,621 (47,422) 7,563 22,124

Cash and cash equivalents, beginning of period 12,605 6,316 367,043 298,061 19,973 67,395 72,262 50,138

CASH AND CASH EQUIVALENTS, END OF PERIOD 10,159 12,605 619,739 367,043 44,594 19,973 79,825 72,262

MSILCDFI



LIBI LLC

45



(In thousand pesos)

2011

2012 2011 2012 2011 2012 2011 2012 As restated 2012 2011


Cash inflows 94,197 249,715 2,166,304 3,315,608 139,460 128,479 21,417,929 19,774,150 1,882,765 1,254,531

Cash outflows (304,676) (35,264) (2,481,592) (3,361,990) (140,082) (137,576) (9,716,184) (16,606,443) (1,269,642) (1,697,215)

Net cash generated by (used in) operating activities (210,479) 214,451 (315,288) (46,382) (622) (9,097) 11,701,745 3,167,707 613,123 (442,684)


Cash inflows 4,202 4,967 205,168 233,013 94 248 140,998,660 153,196,076 26,741 235,185

Cash outflows (932) (6,427) (119,026) (128,418) (1,844) (527) (161,750,323) (149,075,892) (646,287) (39,204)

Net cash generated by (used in) investing activities 3,270 (1,460) 86,142 104,595 (1,750) (279) (20,751,663) 4,120,184 (619,546) 195,981


Cash inflows 1,914,563 1,407,940 - - 5,982 28,660 1,530,865 2,981,567 40,000 249,235

Cash outflows (1,725,326) (1,626,794) (3,600) (3,300) (4,039) (26,009) (2,007,458) (3,385,132) - -

Net cash generated by (used in) financing activities 189,237 (218,854) (3,600) (3,300) 1,943 2,651 (476,593) (403,565) 40,000 249,235


cash equivalents (17,972) (5,863) (232,746) 54,913 (429) (6,725) (9,526,511) 6,884,326 33,577 2,532

- - - - - - (153) 31 3 (2)

Cash and cash equivalents, beginning of period 278,107 283,970 344,962 290,049 3,273 9,998 11,672,818 4,788,461 101,523 98,993

CASH AND CASH EQUIVALENTS, END OF PERIOD 260,135 278,107 112,216 344,962 2,844 3,273 2,146,154 11,672,818 135,103 101,523

PPSBI


PDIC


equivalents

PCFC NFCNLDC


46

47

CLUSTER 1 – BANKING AND CREDIT NOTES TO SUMMARY FINANCIAL STATEMENTS (Amounts in thousand pesos unless otherwise stated) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of financial statements The financial statements of seventeen (17) corporations included in this Report have been prepared in accordance with Philippine Financial Reporting Standards (PFRS) while the remaining four (4) corporations adopted the generally accepted accounting principles (GAAP). Three (3) agencies adopted the New Government Accounting System (NGAS), namely, Credit Information Corporation (CIC), National Livelihood Development Corporation (NLDC) and National Foods Corporation (NFC). These financial statements have been prepared on a historical cost basis modified by the fair value measurement of financial assets at fair value through profit or loss, available for sale investments and derivative financial instruments. The specific accounting policies adopted by the Corporations included in this Report and the standards, amendments and interpretations which became effective in 2012 are discussed extensively in the individual Notes to Financial Statements. Combined financial statements The financial statements of the following corporations for CY 2012 were combined with those of its branches and/or regional offices:

1. Development Bank of the Philippines 2. Al-Amanah Islamic Investment Bank of the Philippines 3. Land Bank of the Philippines 4. Philippine Postal Savings Bank, Inc.

For DBP and LBP, the financial statements as presented in their Annual Audit Reports showed both the consolidated statements of the parent and its subsidiaries, which is called the “Group”, and those exclusively for the parent. For purposes of presentation of these financial statements, the figures were derived from those of the parents instead of the “Group”, as well as from their subsidiaries which were all presented individually.

Currency of presentation Unless otherwise stated, all amounts presented in this report are expressed in Philippine pesos, rounded off to the nearest thousands (P000). Foreign currency translation For financial reporting purposes, the foreign currency denominated monetary assets and liabilities are translated in Philippine pesos using the Philippine Dealing System (PDS)/published BSP Reference Rate Bulletin closing rate prevailing at the reporting date, and foreign currency denominated income and expenses, at the PDS weighted average rate (PDSWAR) for the year. Foreign exchange differences arising from revaluation and translation of

48

foreign currency denominated assets and liabilities are credited to or charged against operations in the year in which the rates change. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Accrual Basis of Accounting In accordance with Philippine Accounting Standard (PAS) 1, the financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Significant accounting judgments and estimates In accordance with PFRS and GAAP, the preparation of the financial statements requires the use of certain critical accounting estimates and assumptions that affect the reported amount of assets, liabilities, income and expenses and disclosure of contingent assets and contingent liabilities. It also requires management to exercise its judgment in applying the Corporations’ accounting policies. Future events may occur which will cause the assumptions used in arriving at the estimates to change. The effects of any change in estimates are reflected in the financial statements as they become reasonably determinable. Financial assets Financial assets are classified in the following major categories: financial assets at fair value through profit or loss, held to maturity investments, available-for-sale financial assets and loans and receivables. At initial recognition, the agencies classify the financial assets based on the purpose for which they are acquired and re-evaluate the designation at every reporting date. Financial liabilities BSP’s financial liabilities are denominated in foreign and local currencies. Financial liabilities denominated in foreign currency comprise of short-term foreign currency deposits of banks, the National Government and other government entities, and short and long-term borrowings of the BSP. These liabilities are initially recognized at cost and subsequently converted at the current value using weighted average exchange rates at the reporting date. Interest is accrued monthly and recognized in the statement of profit or loss and other comprehensive income. Foreign currency borrowings contracted after the creation of BSP in CY 1993 are collateralized either by securities or gold. As of end of CY 2012, there are no outstanding foreign currency borrowings collateralized by securities or gold. Financial liabilities denominated in local currency refer to deposits of the National Government, banks and other financial institutions. All banks and quasi-banks operating in the country are required to maintain reserves against their deposit and/or deposit substitutes liabilities. The reserve position of each bank or quasi-bank is calculated daily on the basis of the amount of the institution’s reserves at the close of business for the day and the amount of its liability accounts against which reserves are required to be maintained. A portion of these deposits is paid interest at rates approved by

49

the Monetary Board until April 5, 2012. Interest is accrued monthly and credited quarterly to the respective demand deposit accounts. The fair value of deposits with no stated maturity is the amount repayable on demand. Financial assets and liabilities are classified in the financial statements at the appropriate assets and liabilities accounts. Sale and repurchase agreements Repurchase and reverse repurchase transactions are used as monetary tools when BSP engages in purchase and sale of government securities that intends to expand or contract, for the time being, money supply in the market. Government securities purchased under agreements to resell are presented under Receivables while income earned from the transaction is reflected in the statement of profit or loss and other comprehensive income as business and service income. Securities sold under agreements to repurchase remain part of the government securities inventory but are reclassified in the financial statements every end of the month. The obligation to repurchase is recognized as a liability while the difference between the sale and repurchase price represents interest expense and is recognized in the statement of profit or loss and other comprehensive income. Impairment of financial assets The Corporations assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. If there is objective evidence that an impairment loss on loans and receivables carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the statement of profit or loss and other comprehensive income. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed by adjusting the allowance account. However, the carrying amount after the reversal of the impairment loss should not exceed the carrying amount of the loan account had there been no impairment loss recognized. The amount reversed is recognized in the statement of profit or loss and other comprehensive income. When an indicator of impairment of property and equipment, investment property and other resources exists, the Corporations make a formal estimate of the recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Recoverable amount is the higher

50

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 group of assets. Allowance for probable losses Allowance for probable losses is adequately set up at a level to provide for potential receivables, the collection of which is considered remote. The level of this allowance is based on management’s evaluation on past collection experience and other factors that may affect collectibility. Periodic evaluation of receivables is made to identify potential accounts that require allowance. Property, plant and equipment Property, plant and equipment, except land, are stated at cost less accumulated depreciation/amortization and impairment in value. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, when it is probable that future economic benefits associated with the item will flow to the entities and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or loss during the financial period in which they are incurred. Recognition of income and expenses Income is recognized on accrual basis to the extent that it is probable that the economic benefits will flow into the corporations and the income can be reliably measured. Expenses are recognized on accrual basis when the expenses are incurred. Subsequent events Any post-year end event that provides additional information about the Corporations’ position at the reporting date (adjusting event) is reflected in the financial statements. Post-year end events that are non-adjusting events, if any, are disclosed in the individual Notes to financial statements, when material.

2. CASH AND CASH EQUIVALENTS

For purposes of reporting cash flows, cash and cash equivalents is composed of the following accounts with maturities of three months or less from the date of acquisition:

2012

2011 As restated

Due from Bangko Sentral ng Pilipinas 163,452,993 119,565,478 Cash on hand and in banks 23,723,471 32,385,164

Securities purchased under agreements to resell 40,000,000 64,500,000 Due from other banks 8,703,632 10,343,694 Interbank loans receivable 7,265 2,237,093 Short-term investments 1,187,154 779,477

51

2012

2011 As restated

237,074,515 229,810,906

The cash and cash equivalents, end of period, shown in the statement of cash flows of the BSP aggregating negative P130,590,344 for 2012 and P216,559,101 for 2011, were not included in the above breakdown. The said balances are reflected as main components of gross international reserves, short-term investments and receivables reduced by the demand liabilities consisting of government demand deposits and deposit of banks and other financial institutions. This is consistent with the presentation of the accounts in the balance sheet of BSP.

Short-term investments classified as cash equivalents have maturities of three months or less from date of acquisition.

3. GROSS INTERNATIONAL RESERVES

This account is used solely by the Bangko Sentral ng Pilipinas and is composed of the following:

2012 2011

Investment securities

2,744,317,114

2,633,965,315

Gold 425,279,338 351,911,883 Deposits with foreign banks 198,802,059 251,232,381 IMF special drawing rights 52,928,624 49,110,899 Loan to IMF 2,538,255 - Other cash balances 429,429 295,386

3,424,294,819 3,286,515,864

Investment securities primarily consist of marketable securities (foreign securities (free) and repurchase agreements) totaling to P2,231.763 billion; and Other investments include externally managed funds, Asian bond fund, Bank for International Settlement and Investment Pool, and securities under the Securities Lending Agreement amounting to P465.048 billion, P26.951 billion, P9.030 billion and P3.452 billion, respectively. Gold is classified as that in bullion vault amounting to P169.774 billion and P167.543 billion as at December 31, 2012 and 2011, respectively; and gold with foreign financial institutions of P255.505 billion and P184.369 billion as at December 31, 2012 and 2011, respectively.

4. SHORT-TERM INVESTMENTS

These include temporary investments on mostly government securities, as follows:

2012 2011

As restated

Financial assets available for sale 272,905,967 291,817,075

Held to maturity investments 65,464,951 61,781,713 Securities/financial assets at fair value

through profit and loss 24,738,897 39,976,549

52

Due from other banks/collecting banks 152,915 90,339 Investments in bonds and other debt

instruments 6,646 1,166

Foreign currency held for trading 412 381

Financial assets held for trading - 4,970

Accumulated market losses (5,825) (5,825)

363,263,963 393,666,368

5. RECEIVABLES This account consists of the following:

2012 2011

As restated

Loans and discounts/loans receivable 182,721,670 182,078,897

Loans and advances-local currency 117,980,623 113,563,303

Other foreign currency receivables 59,887,010 50,338,253

Due from administrator of funds 29,956,212 29,139,122

Other local currency receivables 14,647,549 20,120,222

Derivative instruments in a gain position 1,521,056 2,627,982

Loans and advances – foreign currency 1,307,503 1,351,451 Finance lease receivable 742,225 940,835

Due from Bangko Sentral ng Pilipinas 584,190 809,954

Accounts receivable 407,900 294,054

Interest receivable 113,421 94,479

Dividend receivable 109,500 145,500

Service fee receivable 38,141 25,482

Due from regional offices/branch offices 34,119 19,402

Due from NGOs/POs 8,635 128,013

Receivables – disallowances/charges 7,339 7,363

Other receivables 4,527 4,761 Due from government agencies/national

treasury 3,273 8,996 Tax withheld receivable 2,430 2,061

Islamic financing 2,154 -

Sales contracts receivable 698 1,262

Due from officers and employees 340 334 Advances to officers and

employees/contractors affiliates 242 44

Notes receivable 65 3,235

Creditable value added tax 3 -

Interbank call loans receivable - 910,000

Allowance for probable losses (6,573,730) (6,801,598)

403,507,095 395,813,407

Loans and discounts/loans receivable are generally carried in the books at amortized cost or at the amount at which the financial asset is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization, using the effective interest method, of any difference between the initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.

53

6. INVENTORIES The breakdown of this account is as follows:

2012 2011

As restated

Gold for refining 3,074,295 3,377,676

Security Plant Complex inventories 2,780,398 3,292,900

Work-in-process inventory 1,803,090 1,821,782

Currency inventory 1,034,592 1,356,023

Merchandise Inventory 147,641 144,363

Agricultural products and supplies inventory 86,664 59,509

Gold for domestic sale 26,563 24,004

Office supplies inventory 16,052 13,319

Construction materials inventory 11,216 3,407 Silver for refining 10,219 8,838

Contract in progress 5,640 10,609

Spare parts inventory 1,142 950

Others 1,332 16,760

8,998,844 10,130,140

7. PREPAYMENTS AND DEFERRED CHARGES

This account consists of the following:

2012

2011 As

restated

Prepaid expenses 110,664 112,429

Deferred charges 2,363 4,301

Prepaid rent 2,015 792 Input tax 65 117

Prepaid insurance 62 317

Prepaid tax - 217

Others 31 -

115,200 118,173

8. OTHER CURRENT ASSETS


2012 2011

Property dividend to NG 285,214 -

Guaranty deposits 996 1,751 Revaluation of international reserves - 153,716

Others 716,101 474,623

1,002,311 630,090

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9. LONG-TERM RECEIVABLES These are non-current receivables that are expected to be recovered or realized beyond twelve months after the balance sheet date, broken down as follows:

2012 2011

As restated

Loans and receivables 332,088,006

319,641,785

Finance lease receivable 2,289,606 1,833,877

Vessel for lease 490,735 455,183 Unquoted debt securities

classified as loans 477,652 477,187

Accounts receivable 65,585 64,799 Sales contract receivable 56,129 65,877

Claims receivable 43,525 -

Others 769,337 772,124


334,710,510 321,899,91

6

10. LONG-TERM INVESTMENTS

The details of this account are as follows:

2012 2011

Available-for-sale financial assets 317,230,009 251,471,126

Held to Maturity Investments 1,662,882 1,279,105

Investments in treasury bills/notes 478,796 499,319

Investments in bonds 1,424,229 1,359,178

Equity investment in subsidiaries 2,158,756 2,188,139

Equity investment in associates 152,439 152,439

Other investment 65 65 Equipment and other properties

for lease 7,060 8,137

Equity investment in joint venture 4,000 4,000

Investments in real estate 20,370 16,122 Allowance for decline in value of investments (37,614) (37,614)

323,100,992 256,940,016

11. PROPERTY, PLANT AND EQUIPMENT


Land,

buildings and leasehold improve-

ments

Construction in progress

Furniture, fixtures,

and office equipment

Machine-ries and equipment

Transpor-

tation Equipment

/Motor Vehicle

Transpor-

tation Equipment

under Lease

Others

Total

Cost

25,788,661

77,338

7,914,988

7,496,547

747,856

282,539

71,025

42,378,954

Accumulated depreciation/

55

amortization/ impairment

(7,261,473)

(5,656,408)

(4,360,259)

(605,582)

(176,750)

(64,867)

(18,125,339)

Net carrying amount, 12/31/12

18,527,188

77,338

2,258,580

3,136,288

142,274

105,789

6,158

24,253,615

Net carrying amount,12/31/11, as restated

17,228,159

45,502

2,162,415

3,214,043

126,481

139,438

2,810

22,918,848

12. INVESTMENT PROPERTY

This account pertains to real properties acquired by the government corporations and subsidiaries in settlement of loans. The investment properties are recognized in the books either at cost or fair value. Prior to the adoption of PFRS 1 which became effective for periods beginning on or after January 1, 2005, investment properties valued at cost were revalued, based on the latest available appraised values that were carried over at the opening balance sheet as deemed cost. The following corporations/subsidiaries adopted the cost model in valuing its investment properties:

1. Bangko Sentral ng Pilipinas 2. Development Bank of the Philippines 3. Land Bank of the Philippines 4. LBP Resources and Development Corporation 5. LBP Leasing Corporation 6. Masaganang Sakahan, Inc. 7. People’s Credit and Finance Corporation 8. Al-Amanah Islamic Investment Bank of the Philippines 9. Industrial Guarantee and Loan Fund 10. Philippine Postal Savings Bank, Inc.

For corporations that adopted the fair value model, the investment properties are initially measured at cost, including transaction costs. After initial recognition, it is measured at fair value with any change therein recognized in the statement of profit or loss and other comprehensive income for the period.

The following corporations recorded significant amount of investment properties in 2012 and 2011:

2012 2011

Bangko Sentral ng Pilipinas 10,429,445 9,745,270 Land Bank of the Philippines 6,741,972 6,976,018 Development Bank of the Philippines 567,302 489,882 LBP Resources and Development Corporation 112,673 81,663 Philippine Postal Savings Bank, Inc. 95,596 104,889 People’s Credit and Finance Corporation 74,249 56,642 Industrial Guarantee and Loan Fund 13,672 14,096 Masaganang Sakahan, Inc. 4,650 4,650 LBP Leasing Corporation 2,314 13,567

18,041,873 17,486,677

13. OTHER NON-CURRENT ASSETS The breakdown of this account is as follows:

56

2012 2011

Revaluation of foreign currency 64,562,905 -

Deferred tax asset 6,982,503 7,006,355

Garnished/foreclosed assets 467,533 1,211,832 Intangibles 388,840 442,757

Non-current assets held for sale 31,196 90,715

Rental deposit 208 208

Miscellaneous assets 969,240 910,458

Others 15,634,257 18,874,766


86,776,254 26,300,620

14. DEPOSIT LIABILITIES

These consist of current and long-term domestic and foreign deposits of the banks’ clients, either in demand, savings and time deposit accounts that earn annual fixed interest rates. The details of this account are as follows:

2012 2011

As restated

Current deposits 3,580,338,103

3,137,006,530

Long-term deposits 588,292 549,189

3,580,926,395 3,137,555,71

9

15. CURRENCY IN CIRCULATION

This represents liability recorded at face value, for Philippine currency notes and coins issued by BSP, fully guaranteed by the government of the Republic of the Philippines, in favor of the holder. In accordance with Section 51 of Republic Act 7653 or the New Central Bank Act, notes and coins issued by the BSP shall be liabilities of BSP and may be issued only against, and in amounts not exceeding, the assets of the BSP. Said notes and coins shall be a first and paramount lien on all assets of the BSP. The BSP’s holdings of its own notes and coins are not considered part of its currency issue, and accordingly, do not form part of the assets and liabilities of the BSP.

Denomination Quantity Amount

2012 2011 2012 2011

Notes

100,000

122

117

12,200

11,700

2,000 30,882 28,594 61,764 57,188 1,000 357,208,764 359,808,429 357,208,764 359,808,429 500 428,661,228 345,789,521 214,330,614 172,894,761 200 36,739,177 34,272,943 7,347,836 6,854,589 100 565,412,913 510,571,571 56,541,291 51,057,157 50 413,605,566 429,579,072 20,680,278 21,478,954

57

20 681,631,519 812,435,954 13,632,630 16,248,719 10 68,029,405 68,545,142 680,294 685,451 5 30,285,697 30,353,456 151,429 151,767

Total notes in circulation

670,647,100

629,248,715

Coins

10 Piso

554,327,359

462,935,579

5,543,273

4,629,356

5 Piso 1,644,619,551 1,498,059,741 8,223,098 7,490,299 1 Piso 6,145,911,809 5,531,434,696 6,145,912 5,531,434 25 Sentimo 6,157,221,807 5,917,437,738 1,539,305 1,479,359 10 Sentimo 2,734,758,713 2,574,427,459 273,476 257,443 5 Sentimo 2,046,369,034 1,844,482,148 102,318 92,224 1 Sentimo 24,680,206 22,895,172 247 229

21,827,629 19,480,344 BSP commemorative coins

3,258,957

3,196,633

182,348

181,874

Total coins in circulation

22,009,977

19,662,218

Total currency in circulation

692,657,077

648,910,933

16. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

On a temporary basis, BSP sells government securities (the underlying instrument) with an undertaking/commitment to buy back the same securities after a specified future date and at a predetermined rate. This account is credited upon availment of a bank of the Reverse Repurchase agreement window of the BSP and is debited upon pre-termination/maturity of said availment. As at December 31, 2012 and 2011, the account has a balance of P278,496,737 and P296,041,225, respectively.

17. TRADE AND NON-TRADE PAYABLES

2012 2011

As restated

Accounts payable and accrued expenses 16,508,078 15,554,507

Social insurance claims payable 2,481,058 3,961,810

Bills payable 1,122,700 1,437,567

Dividends payable 526,700 564,960

Loans payable – domestic 323,471 303,742

Deposit on lease contracts 87,325 61,097

Income tax payable 11,230 13,317

Interest payable 8,973 9,468

Due to officers and employees 511 60 Loans payable – foreign - 272,992

Others 4,281 3,076

21,074,327 22,182,596

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18. OTHER CURRENT LIABILITIES

2012 2011

As restated

Due to National Treasury/Nat’l Government 416,578,729 416,485,242

Other liabilities – foreign currency 5,216,547 3,670,925

Accrued taxes payable 2,986,491 3,302,786

Treasurer’s/cashier’s/manager’s check 1,585,017 1,673,024

Cash letters of credit 759,105 1,114,187

Marginal deposits 754,434 519,898

Payment order payable 91,170 101,639

Due to Bangko Sentral ng Pilipinas 59,672 31,675

Unearned/deferred income 59,089 47,267

Deposits/advances from clients and tenants 42,013 30,888

Due to BIR/withholding tax payable 19,040 10,274 Provision for employee’s fund 17,401 27,110

Inter-agency payables 17,398 15,805

Accounts payable - suppliers 11,735 4,784

Guaranty deposits payable 6,408 12,805

Accrued expenses payable 5,954 6,658

Performance/bidders/bail bonds payable 4,045 3,985

Capitalized interest and other charges 2,215 2,215

Due to GOCCs/LGUs/NGAs 879 809

Deposit to other banks 209 4

Customer’s deposit 161 161

Due to other banks (clearing) 8 8

Other taxes and licenses 3,364 3,266 Other deferred credits 11,878,069 9,521,539

Miscellaneous/sundry accounts payable 4,505,815 5,597,347

Others 52,991,846 202,389,098

497,596,814 644,573,399

19. BILLS PAYABLE

This represents domestic and foreign borrowings of the following corporations:

2012

2011 As restated

Development Bank of the Philippines

67,436,787

82,883,903

Land Bank of the Philippines 26,823,600 33,394,415 People’s Credit and Finance Corporation 2,580,715 2,296,495 LBP Leasing Corporation 444,185 139,206

97,285,287 118,714,019

The balance includes foreign borrowings to multilateral and bilateral funding agencies such as the World Bank, Asian Development Bank, Japan International Cooperation Agency, ANZ Bank, Cobank Denver, and Kreditanstalt fur Wiederaufbau. Most of these foreign borrowings are provided with foreign exchange (FX) risk cover by the National Government. Bills payable with maturities of one year or less are classified in this Report under the Current portion of long-term debt account amounting to

59

P35,041,742 and P24,545,493 as at December 31, 2012 and 2011, respectively.

20. NOTES PAYABLE

This account which is recorded as Unsecured Subordinated Debt in the books of DBP and LBP represent long-term foreign and domestic securities issued by the two government banks to increase and strengthen their capital base with a balance of P29,568,826 and P13,418,215 as at December 31, 2012 and 2011, respectively.

21. BONDS PAYABLE

This account includes foreign currency financial liabilities consisting of “Yankee Bonds” issued by BSP on June 24, 1997, due 2027 and 2097, with balances of P20,537,695 and P21,957,684 as at December 31, 2012 and 2011, respectively. It also includes DBP’s issuance of 5.5 per cent US$300.00 million notes due on March 25, 2021 approved by the Monetary Board of Bangko Sentral ng Pilipinas amounting to P12,258,359 and P13,085,846 as at December 31, 2012 and 2011, respectively.

22. LOANS PAYABLE

2012 2011

Loans payable-domestic 65,681,508 67,086,519

Loans payable-foreign 489,123 1,447,930

66,170,631 68,534,449

The current portion of the Loans payable are classified in this Report under the Current portion of long-term debt account amounting to P89,441 and P55,039 as at December 31, 2012 and 2011, respectively.

23. ACCRUED RETIREMENT BENEFITS

This account represents the government corporations’ provision for retirement benefit or past service pension cost and vacation/sick leave payable with balances of P1,509,763 and P1,521,085 as at December 31, 2012 and 2011, respectively.

24. DEFERRED CREDITS


2012 2011


Unearned income 224,616 195,822

Deferred tax liability 146 1,118

471,497 346,087

60

25. OTHER NON-CURRENT LIABILITIES These liabilities consist of:

2012 2011

Derivative instruments in a loss position-

foreign currency 634,857 320,628

Miscellaneous liabilities/preferred shares 16,192,058 16,456,284

16,826,915 16,776,912

26. EQUITY

The composition and changes in this account consist of the following:

a) Government equity pertains to the National Government’s share in NLDC and IGLF amounting to P2,232,624 and P803,304, respectively.

b) Share capital has significant increase in CY 2012 as a result of an issuance of capital stock of BSP, DLC, PPSBI and additional paid-in capital of CIC.

c) Restricted capital includes the Restricted Fund of PDIC and LCDFI in

the amount of P3,000,000,000 and P15,000,000, respectively.

d) The net decrease in appraisal increment of P31,012 pertains to the NLDC’s disposal of its project Angeles Livelihood Complex amounting to P39,600 and appraisal increase of its properties of P8,588.

e) Surplus reserves include, among others, additional reserve for trust

business of DBP, reserve for expansion/renovation of field offices and upgrading/enhancement of telecommunications of LBP, net increment of BSP’s managed fund and additional estimated insurance losses of PDIC.

f) The retained earnings/(deficit) includes the net income/(loss) of the

corporations (net of cash/property/stock dividends and other adjustments) and surplus on revaluation of gold and silver recoveries, among others. The decrease in retained earnings is attributed to the net loss of BSP for the period amounting to P95,380,263.

g) Accumulated other comprehensive income includes the unrealized

gain/(loss) on investment in government securities of BSP, DBPMC, IGLF, LBP, PDIC and PPSBI and other comprehensive income of DBP.

h) Other Equity Instrument represents Hybrid Tier 1 capital securities of

DBP.

61

27. INCOME

The income reported by government-owned and/or controlled corporations under the Cluster is classified into three categories: business and service income, gains and premiums and other income, details as follows: a) Business and service income include among others, interest income

from foreign/local currency financial assets of BSP, DBP, LBP, and PDIC totaling P82,156,795; assessment, service, financing, guarantee and commitment fees, rental/lease income and construction income, which are directly related to the principal revenue-producing activities of the entities.

b) Gains and premiums include income from financial asset and liabilities

held for trading, sale/derecognition of securities/investment, dealings in foreign currency and disposal of assets.

c) Other income includes interest on bank deposits, dividend and

commission income and other miscellaneous income which do not fall under business and service income or gains and premiums.

d) Subsidy income represents subsidy from the National Government to

CIC amounting to P28,410 and P17,500 in 2012 and 2011, respectively; and PDIC’s tax obligations charged to the Tax Expendure Fund in accordance with Section 17 of PDIC Charter amounting to P3,210,066 and P1,712,882 in 2012 and 2011, respectively.

Total income for calendar years 2012 and 2011 (exclusive of subsidy) amounted to P151,006,301 and P192,123,256, respectively.

28. EXPENSES

Expenses are classified into business expenses, personal services, maintenance and other operating expenses, financial expenses and other expenses, detailed as follows: a) Business expenses include among others, interest expense on local and

foreign currency financial liabilities of BSP of P90,761,643 and interest expense on deposit liabilities of LBP, DBP, PPSBI and AAIIBP totaling P7,632,182. Other business expense consists of lending cost, construction cost, commission, property development expenses, currency printing and minting cost; and insurance and assistance financial losses such as deposit claims pay-out, rehabilitation cost and receivership and liquidation expenses.

b) Personal services consist of salaries and wages and other manpower

costs including personnel benefits contributions to GSIS, HDMF, PHIC and ECC and employees’ terminal benefits. The breakdown is presented as follows:

2012 2011

Salaries and wages 9,275,271 9,220,655 Other compensation 80,671 81,926

Personnel benefits contributions 2,186,711 2,091,699

Others 8,072,648 7,896,303

62

19,615,301 19,290,583

c) Maintenance and other operating expenses include expenses other than

manpower costs, breakdown as follows:

2012 2011

As restated

Provision for probable losses/bad debts 5,382,685

3,327,857

Taxes, insurance premiums and other fees 2,951,294

5,546,991

Depreciation expense 1,680,858 2,383,714 Rent expenses 912,281 881,367

Repairs and maintenance 409,117 383,491

Utility expenses 377,225 339,016

Traveling expenses 322,838 418,191

Professional services and other services 215,193 215,764

Training and scholarship expenses 193,397 76,414

Communication expenses 145,738 172,484

Donations 144,412 133,004

Insurance 87,796 86,168

Supplies and materials expenses 73,706 81,108

Losses 38,514 (153) Representation expenses 18,849 21,858

Advertising expenses 12,391 7,882

Foreclosure/litigation expenses and legal 10,240 12,509

Fuel, oil and lubricants 4,994 6,033

Program development expenses 4,930 4,972

Directors' fees and allowances 3,240 3,756

Transportation and delivery expenses 3,090 1,437

Provident fund contribution 3,082 2,911

Management fees 2,975 1,841

Amortization expense 2,759 2,508

Commission 1,921 7,019 Membership dues and contributions to

Organizations 1,805

2,499

Business development expenses 1,135 1,082

Printing and binding expenses 585 599 Confidential, intelligence, extraordinary

and miscellaneous expenses 581

1,099

Interest expense 349 248

Subscription expenses 308 422

Meetings and conferences 200 1,130

Cultural and athletic expenses 57 58

Others 8,205,606 5,854,347

21,214,151 19,979,626

d) Financial expenses are those that are not directly related to the

operations of the entities such as interest expense on loans obtained, bank charges, documentary stamp taxes, commitment fees and other financial charges.

2012 2011

Interest expenses 9,099,291

8,661,528

Documentary stamps expenses 8,308 12,375

63

Bank charges 117 89 Others 879,512 825,547

9,987,228 9,499,539

e) All other expenses that are not classified as personal services,

maintenance and other operating expenses and financial expenses are classified as other expenses. These expenses consist mainly of loss on foreign exchange rates fluctuations of BSP amounting to P50,525,999. Also included under other expenses are losses on impairment, sale of securities/investments and disposal of assets. Total expenses for calendar years 2012 and 2011 (excluding income tax) amounted to P227,238,504 and P208,913,812, respectively.

29. OTHER COMPREHENSIVE INCOME

Other comprehensive income includes among others, unrealized gain (loss) on investment securities, adjustments on gain on fair value and available for sale financial assets, exchange differences on translating foreign operations and unrealized gain (loss) on derivative valuation.

The following corporations reported other comprehensive income/(loss) for the years 2012 and 2011, as shown below:

2012

2011 As restated

Land Bank of the Philippines 1,328,366

3,031,334

Development Bank of the Philippines 256,111 (363,195)

Philippine Postal Savings Bank, Inc. 7,463 5,646

DBP Management Corporation 3,917 -

Industrial Guarantee and Loan Fund (5,985) 36,508

Bangko Sentral ng Pilipinas (38,203) 4,315,464 Philippine Deposit Insurance Corporation (102,407) 5,950,877

1,449,262 12,976,634

30. RESTATEMENT AND RECLASSIFICATION

In compliance with the provisions of PAS 8 which prescribes the criteria for selecting and changing accounting policies, changes in accounting estimates and corrections of errors, material prior period errors on the financial statements of some corporations included in this report were restated or corrected retrospectively by:

a) Restating the comparative amounts for the prior period(s) presented in which the error occurred; or

b) If the error occurred before the earliest prior period presented,

restating the opening balances of assets, liabilities and equity of the earliest prior period presented.

The financial statements for CY 2011 of the following corporations/subsidiaries were restated to conform to the provisions of PAS 8:

64

1. Bangko Sentral ng Pilipinas 2. Philippine International Convention Center, Inc. 3. Development Bank of the Philippines 4. Al-Amanah Islamic Investment Bank of the Philippines 5. DBP Management Corporation 6. Landbank Countryside Development Foundation, Inc. 7. Masaganang Sakahan, Inc. 8. Northern Foods Corporation 9. Philippine Deposit Insurance Corporation 10. Philippine Postal Savings Bank, Inc.

Also, certain accounts in the 2011 financial statements were reclassified to conform to the 2012 presentation.

31. OTHER RELEVANT INFORMATION

Accounting period of Northern Foods Corporation (NFC) The NFC uses the Fiscal Year Ended May 31 accounting period. The NFC is a subsidiary of Livelihood Corporation (LIVECOR) known as KKK Processing Center Authority. LIVECOR merged with National Livelihood Support Fund (NLSF) now National Livelihood Development Corporation (NLDC) by virtue of EO 681 and 681A. NFC is attached for supervision, control and policy/program coordination with the Department of Agriculture by virtue of EO No. 233.

Schedule 1

1 Bangko Sentral ng Pilipinas BSP - A. Mabini and P. Ocampo Streets, Manila Section 20, Article XII of Philippine

Constitution and RA No. 7653

2 Central Bank - Board Of Liquidators CB-BOL BSP Rm. 610 EDPC Bldg. BSP Complex,

Manila

EO No. 169 as amended by EO No. 455

3 Credit Information Corporation CIC BSP Unit 004, Atlanta Center 31 Annapolis St.

Greenhills, San Juan City

RA No. 9510

4 Philippine International Convention

Corporation Inc.

PICCI BSP CCP Complex, Roxas Boulevard, Pasay

City

PD No. 520 as amended by PD No. 710

5 Development Bank of the Philippines DBP - 7/F DBP Bldg., Sen. Gil J. Puyat Ave.

corner Makati Ave., Makati City

RA No. 85

6 Al-Amanah Islamic Investment Bank of the

Philippines

AAIIBP DBP G/F Orient Mansion 118 Tordesillas St.,

Salcedo Village, Makati City

RA 6848

7 DBP Data Center Inc. DCI DBP 4/FDBP Bldg., Senator Gil J. Puyat

Avenue corner Makati Avenue, Makati

City

DBP Board Resolution No. 3172 and SEC

Registration No. 1077887

8 DBP Leasing Corporation DLC DBP 11th Floor NDC Bldg. 116 Tordesillas St.,


Corporate Law/SEC Registration No.

128538

9 DBP Management Corporation DBPMC DBP 8th Floor DBP Bldg., Senator Gil J. Puyat

Avenue corner Makati Avenue, Makati

City

DBP Board Resolution No. 3403/SEC

Registration No. 102149

CORPORATE GOVERNMENT SECTOR

Address Enabling Law/Creation

Summary Data of Agencies Under Cluster 1 - Banking and Credit

Agency NameAbbrevia-

tion

Parent /

Controlling

Entity

CLUSTER 1 - BANKING AND CREDIT

65

Address Enabling Law/CreationAgency NameAbbrevia-

tion

Parent /

Controlling

Entity

10 Industrial Guarantee and Loan Fund IGLF DBP 3rd Floor, DBP Bldg., Sen Gil Puyat Ave.,

corner Makati Avenue, Makati City

Counterpart Project Agreement No. 32

11 Land Bank of the Philippines LBP - Land Bank Plaza, 1598 M. H. del Pilar

corner Dr. J. Quintos Sts., Malate, Manila

RA 3844

12 LBP Countryside Development Foundation

Inc.

LCDFI LBP 12/F SSHG Law Centre Bldg., 105 Paseo

de Roxas St., Legaspi Village, Makati City


110790

13 LB Realty Development Corporation LBRDC LBP 24/F Land Bank Plaza, 1598 M. H.Del

Pilar corner Dr. J. Quintos Sts., Malate,

Manila


61385

14 LBP Insurance Brokerage, Inc. LIBI LBP 12/F SSHG Law Centre Bldg., 105 Paseo



105764

15 LBP Leasing Corporation LLC LBP 15/F SSHG Law Centre Bldg., 105 Paseo



111115

16 Masaganang Sakahan Inc. MSI LBP 11/F SSHG Law Centre Bldg., 105 Paseo



59145

17 Northern Food Corporation NFC NLDC One Corporate Plaza, Arnaiz Avenue,

Makati City


119668

18 National Livelihood Development

Corporation

NLDC LBP One Corporate Plaza, Arnaiz Avenue,

Makati City

EO 681 and EO 681A

19 People's Credit and Finance Corporation PCFC LBP 395 Accelerando Bldg., Gil Puyat Avenue,

Makati City

AO No. 148/Memorandum Order No. 261

66

Address Enabling Law/CreationAgency NameAbbrevia-

tion

Parent /

Controlling

Entity

20 Philippine Deposit Insurance Corporation PDIC - PDIC Bldg., 2228 Chino Roces Ave.,

Makati City

RA No. 3591

21 Philippine Postal Savings Bank Inc. PPSBI PPC Liwasang Bonifacio, Intramuros, Manila PPC Board Resolution No. 94-34

67

CLUSTER 2 – SOCIAL

SECURITY SERVICES

AND HOUSING

2012

FINANCIAL

STATEMENTS

Cluster 2 - Social Security Services and Housing

Summary Statement of Financial Position

December 31, 2012


In thousand pesos

2011

As restated

Assets

Current assets



Receivables (net) 5 323,716,329 318,246,038

6 6,730,595 11,770,078

Prepayments and deferred charges 7 328,613 178,087

Others 59,304 61,471

823,153,756 754,123,577

Non-current assets

Long-term receivables (net) 8 464,788,634 410,190,710

Long-term investments (net) 9 149,598,737 141,954,651

Property, plant and equipment (net) 10 20,133,783 10,840,349


Others 12 40,521,778 41,107,904

739,104,684 658,627,727

Total assets 1,562,258,440 1,412,751,304


Liabilities

Current liabilities


Current portion of long-term debt 14 11,552,584 8,543,572

Others 15 27,482,341 26,991,784

82,480,202 82,671,646

Non-current liabilities

Loans payable 16 51,484,615 55,030,308

Deferred credits 17 34,552,320 32,546,411

Bonds payable 18 12,070,860 12,270,268

Accrued retirement benefits 19 1,504,328 1,506,596

Mortgage payable 20 500,000 500,000

Others 21 3,607,283 3,435,858

103,719,406 105,289,441

Total Liabilities 186,199,608 187,961,087

Equity 22 1,376,058,832 1,224,790,217



Inventories (net)

2012Note

TOTAL

71



December 31, 2012


In thousand pesos

2011 2011(As restated) (As restated)

Assets

Current assets 668,476,732 583,109,559 4,486,096 3,479,380 20,084 18,589

Cash and cash equivalents 35,348,722 40,120,268 374,987 167,803 12,869 13,760

Short-term investments 411,404,294 336,833,570 3,311,215 2,972,665 - -

Receivables (net) 221,723,716 206,155,721 782,205 321,717 6,794 4,430

Inventories - - - - 404 399

Prepayments and deferred charges - - - - 17 -

Others - - 17,689 17,195 - -

Non-current assets 59,099,008 50,534,288 9,853,869 10,055,669 6,385 6,664

Long-term receivables (net) - - 607,616 636,651 - -

Long-term investments (net) 1,164,802 1,167,448 8,745,827 8,924,749 - -

Property, plant and equipment (net) 10,671,990 4,658,234 30,568 36,095 6,343 6,622

Investment property 29,989,697 29,704,289 188 188 - -

Others 17,272,519 15,004,317 469,670 457,986 42 42

Total assets 727,575,740 633,643,847 14,339,965 13,535,049 26,469 25,253

Liabilities and Equity

Liabilities

Current liabilities 16,863,425 17,932,587 1,299,836 1,137,826 1,945 1,266

Securities sold under agreements to repurchase - - - - - -

Trade and non-trade payables 12,252,554 9,752,363 541,493 521,195 1,463 1,004

Current portion of long-term debt - - 220,785 186,598 - -

Others 4,610,871 8,180,224 537,558 430,033 482 262

Non-current liabilities 2,827,102 1,060,820 2,874,482 2,714,586 842 842

Deferred Credits 2,827,102 1,060,820 321,561 274,499 - -

Others - - 2,552,921 2,440,087 842 842

Total Liabilities 19,690,527 18,993,407 4,174,318 3,852,412 2,787 2,108

Equity 707,885,213 614,650,440 10,165,647 9,682,637 23,682 23,145

Total liabilities and equity 727,575,740 633,643,847 14,339,965 13,535,049 26,469 25,253

GSIS SUMSIAFPRSBS

2012 2012 2011 2012

72



December 31, 2012

(With corresponding figures for 2011)In thousand pesos

2011 2011 2011

(As restated) (As restated) (As restated)

Assets

Current assets 94,757,354 107,517,284 2,472,915 3,013,348 2,206,200 1,117,014 3,429,679 3,216,553

Cash and cash equivalents 4,114,542 9,072,776 1,401,695 1,984,282 2,136,276 1,049,822 2,378,542 2,506,422

Short term investments 5,793,293 1,906,514 - - - - 33,069 32,625

Receivables (net) 84,685,611 96,397,666 1,035,636 989,660 64,532 61,866 947,085 578,027

Inventories 122,452 96,728 - - 3,570 3,431 1,302 4,334

Prepayments and deferred charges 40,568 42,712 - - 1,153 1,296 69,681 95,145

Others 888 888 35,584 39,406 669 599 - -

Non-current assets 219,778,537 197,362,426 31,157,983 33,844,283 9,759,061 9,539,847 29,246,012 26,321,768

Long-term receivables (net) 183,691,357 165,428,670 17,755,968 21,668,294 9,561,375 9,339,593 5,949,689 2,960,744

Long-term investments (net) 23,698,893 24,639,330 11,390,589 10,222,532 - - 1,440,594 1,411,219

Property, plant and equipment (net) 1,110,981 1,186,217 93,997 89,410 197,686 200,254 101,491 96,342

Investment property 10,392,686 5,775,473 - - - - 8,045,544 5,357,784

Others 884,620 332,736 1,917,429 1,864,047 - - 13,708,694 16,495,679

Total assets 314,535,891 304,879,710 33,630,898 36,857,631 11,965,261 10,656,861 32,675,691 29,538,321


Liabilities

Current liabilities 23,452,150 27,629,109 2,675,096 2,111,974 1,198,244 1,041,089 16,855,281 16,995,342

Deposit liabilities - - - - - - - -

Trade and non-trade payables 10,477,857 16,881,358 169,000 163,051 683,779 701,599 11,778,601 12,199,278

Current portion of long-term debt 10,604,973 7,488,761 - - - - - -

Others 2,369,320 3,258,990 2,506,096 1,948,923 514,465 339,490 5,076,680 4,796,064

Non-current liabilities 35,216,503 36,124,875 34,511,386 39,365,258 10,526,704 9,293,700 8,550,885 7,888,255

Bonds payable 11,767,305 11,669,527 - - - - 303,555 600,741

Loans and advances payable 5,000,000 5,000,000 29,568,490 34,715,693 10,390,831 9,148,521 4,024,889 3,127,549

Accrued retirement benefits - - - - - - - -

Deferred credits 18,449,198 19,455,348 4,244,811 3,958,176 - - 4,222,441 4,159,965

Others 698,085 691,389 135,873 145,179

Total Liabilities 58,668,653 63,753,984 37,186,482 41,477,232 11,724,948 10,334,789 25,406,166 24,883,597

Equity 255,867,238 241,125,726 (3,555,584) (4,619,601) 240,313 322,072 7,269,525 4,654,724

Total liabilities and equity 314,535,891 304,879,710 33,630,898 36,857,631 11,965,261 10,656,861 32,675,691 29,538,321

SHFCHDMF HGCNHMFC

2012 2011 2012 2012 2012

73



December 31, 2012


In thousand pesos

Assets

Current assets 26,566,898 26,879,814 313,801 284,303 221,517 187,617

Cash and cash equivalents 16,151,334 15,261,265 304,933 257,016 169,142 176,627

Short-term investments 3,368,853 5,066,651 - - - -

Receivables (net) 6,940,878 6,429,705 8,237 26,553 49,315 8,015

Inventories (net) 104,267 115,912 - - 2,961 2,889

Prepayments and deferred charges 62 5,312 - - 99 86

Others 1,504 969 631 734 - -

Non-current assets 336,238,157 295,500,086 44,701 47,242 75,989 70,347

Long-term receivables (net) 219,818,559 188,287,237 - - - -

Long-term investments (net) 93,688,818 85,716,917 - - - -

Property, plant and equipment (net) 3,207,863 3,218,487 41,568 44,514 75,521 69,879

Investment property 14,222,594 12,350,544 167 - - -

Others 5,300,323 5,926,901 2,966 2,728 468 468

Total assets 362,805,055 322,379,900 358,502 331,545 297,506 257,964


Liabilities

Current liabilities 9,484,199 5,783,296 34,789 26,436 39,924 36,769 Deposit Liabilities - - - - - -

Trade and non-trade payables 3,551,804 2,844,951 34,227 25,813 22,646 20,818

Others 5,932,395 2,938,345 562 623 17,278 15,951

Non-current liabilities 1,898,818 1,923,772 - - - -

Accrued retirement benefits 1,504,328 1,506,596

Deferred credits 394,490 417,176 - - - -

11,383,017 7,707,068 34,789 26,436 39,924 36,769

Equity 351,422,038 314,672,832 323,713 305,109 257,582 221,195

Total liabilities and equity 362,805,055 322,379,900 358,502 331,545 297,506 257,964

SSS ECC OSHC

2012 2011 2012 2011 2012 2011

74



December 31, 2012

(With corresponding figures for 2011)In thousand pesos

2011

(As restated)

Assets

Current assets 14,268,931 18,874,016 26,062 23,446 3,503,117 3,645,835 2,404,370 2,756,819

Cash and cash equivalents 3,822,209 3,839,203 15,020 20,643 421,776 551,508 184,871 67,232

Short-term investments - - - - 77,490 181,519 1,493,783 1,785,732

Receivables (net) 3,761,312 3,475,243 10,859 2,611 3,003,851 2,912,808 696,298 882,016

Inventories (net) 6,495,097 11,546,321 55 64 - - 487 -

Prepayments and deferred charges 190,313 13,249 128 128 - - 26,592 20,159

Others - - - - - - 2,339 1,680

Non-current assets 40,795,050 32,087,629 1,245 1,003 2,282,221 2,628,577 766,466 627,898

Long-term receivables (net) 26,756,730 21,398,740 - - 146,745 109,898 500,595 360,883

Long-term investments (net) 7,619,992 7,637,372 - - 1,848,935 2,234,733 287 351

Property, plant and equipment (net) 4,410,172 1,039,972 1,243 1,001 88,051 90,500 96,309 102,822

Investment property 1,163,304 1,097,712 - - 103,451 108,431 144,121 139,692

Others 844,852 913,833 2 2 95,039 85,015 25,154 24,150

Total assets 55,063,981 50,961,645 27,307 24,449 5,785,338 6,274,412 3,170,836 3,384,717


Liabilities

Current liabilities 6,867,468 6,002,722 6,509 3,915 1,133,107 1,064,898 2,568,229 2,904,417

Deposit Liabilities - - - - - - - -

Trade and non-trade payables 584,486 420,332 - - 937,914 868,945 2,409,453 2,735,583

Current portion of long-term debt 617,259 747,259 - - 109,567 120,954 - -

Others 5,665,723 4,835,131 6,509 3,915 85,626 74,999 158,776 168,834

Non-current liabilities 5,118,383 4,184,711 - - 2,190,814 2,728,954 3,487 3,668

Mortgage Payable 500,000 500,000

Loans and advances payable 337,991 337,991 - - 2,162,414 2,700,554 - -

Deferred credits 4,089,230 3,216,759 - - - - 3,487 3,668

Others 191,162 129,961 - - 28,400 28,400 - -

Total Liabilities 11,985,851 10,187,433 6,509 3,915 3,323,921 3,793,852 2,571,716 2,908,085

Equity 43,078,130 40,774,212 20,798 20,534 2,461,417 2,480,560 599,120 476,632

Total liabilities and equity 55,063,981 50,961,645 27,307 24,449 5,785,338 6,274,412 3,170,836 3,384,717

2012

PDGCC TIDCORPNHA SBC

2012 2011 2012 2011 2012 2011

75


Summary Statement of Comprehensive Income



(In thousand pesos)

2011

As restated

Income 23 304,227,802 269,374,579

297,494,755 260,380,690

876,737 2,867,857

5,856,310 6,126,032

Expenses 24 193,535,758 172,476,861

159,417,455 147,981,808

11,727,251 12,091,850

11,707,669 8,245,578

2,560,252 2,994,290

8,123,131 1,163,335

Net income before subsidy 110,692,044 96,897,718

Subsidy income 25 5,733,471 6,698,577

Net income before tax 116,425,515 103,596,295

125,008 141,599

116,300,507 103,454,696

26 30,953,562 12,764,621

Total comprehensive income 147,254,069 116,219,317


Business expenses

2012Note

Other comprehensive income

Others

Financial expenses

Gains and premiums

Net income after tax

Income tax expense

TOTAL

Personal services



Others

76

2011 2011

2012 As restated 2012 2011 2012 As restated

Income 140,710,810 123,749,523 272,773 243,077 20,290 19,968

138,033,971 120,065,670 272,773 243,077 19,822 19,615

617,128 1,576,652 - - - -

2,059,711 2,107,201 - - 468 353

Expenses 78,131,161 63,223,508 123,531 125,926 18,792 17,905

68,127,842 56,901,335 - - 11,776 11,030

3,187,030 3,921,203 57,515 54,037 3,564 3,571

1,573,534 1,876,838 66,016 71,889 3,452 3,304

- - - - - -

5,242,755 524,132 - - - -

Net income (loss) before tax 62,579,649 60,526,015 149,242 117,151 1,498 2,063

Income tax expense - - - - 361 526

Net income (loss) after tax 62,579,649 60,526,015 149,242 117,151 1,137 1,537

Other comprehensive income 30,667,028 12,685,707 - - - -

Total comprehensive income (loss) 93,246,677 73,211,722 149,242 117,151 1,137 1,537

GSIS

Others

Business expenses

Personal services


Financial expenses

AFPRSBS SUMSI


Statement of Comprehensive Income

Others


Gains and premiums

(In thousand pesos)



77

2011 2011 2011

2012 2011 2012 As restated 2012 As restated 2012 As restated

Income 25,252,886 24,797,006 3,990,116 1,073,508 419,891 417,246 825,984 820,962

22,730,566 21,245,354 3,590,376 684,885 259,161 252,545 816,202 816,185

159,138 1,222,705 45,742 36,286 - - - 1,110

2,363,182 2,328,947 353,998 352,337 160,730 164,701 9,782 3,667

Expenses 12,002,035 12,837,777 3,814,725 1,055,390 357,341 268,651 1,370,619 1,401,496

7,093,791 8,291,302 - - 11,203 18,293 - -

1,605,269 1,308,450 153,116 124,531 150,564 137,514 103,664 94,402

2,039,293 1,894,851 3,280,974 376,895 185,402 102,830 170,716 168,528

1,014,534 1,343,174 380,595 361,689 10,172 10,014 972,039 1,096,879

249,148 - 40 192,275 - - 124,200 41,687

Net income (loss) before subsidy 13,250,851 11,959,229 175,391 18,118 62,550 148,595 (544,635) (580,534)

Subsidy income - - 500,000 1,462,140 - - - -

Net income (loss) before tax 13,250,851 11,959,229 675,391 1,480,258 62,550 148,595 (544,635) (580,534)

Income tax expense - - 58,414 40,138 19,223 51,156 30,470 41,412

Net income (loss) after tax 13,250,851 11,959,229 616,977 1,440,120 43,327 97,439 (575,105) (621,946)

Other comprehensive income (loss) for the year 5,038 (1,923) - - - - 297 15,419

Total comprehensive income (loss) 13,255,889 11,957,306 616,977 1,440,120 43,327 97,439 (574,808) (606,527)



HGC



SHFCNHMFCHDMF

(In thousand pesos)


Financial expenses

Others

Business expenses

Personal services


Gains and premiums

Others

78

2012 2011 2012 2011 2012 2011

Income 130,473,648 115,836,852 93,224 77,440 12,370 13,698

129,781,879 114,981,059 86,508 71,873 8,743 10,412

- - - - -

691,769.00 855,793 6,716 5,567 3,627 3,286

Expenses 94,317,921 90,282,151 74,620 67,611 99,093 92,190

84,172,843 82,759,848 - - -

5,326,608 5,430,462 37,662 35,844 46,751 48,060

2,313,640 1,994,831 36,958 31,767 52,335 44,122

- - - 7 8

2,504,830 97,010 - - -

Net income (loss) before subsidy 36,155,727 25,554,701 18,604 9,829 (86,723) (78,492)

Subsidy income 45,280 - - - 121,607 89,742

Net income before comprehensive income (loss) 36,201,007 25,554,701 18,604 9,829 34,884 11,250

Other comprehensive income (loss) 326,965 130,460 - - - -

Total comprehensive income 36,527,972 25,685,161 18,604 9,829 34,884 11,250


Gains and premiums

Others

Business expenses

Personal services


Financial expenses

Others

OSHC



(In thousand pesos)



ECCSSS

79

2011

2012 2011 2012 2011 2012 2011 2012 As restated

Income 1,229,392 1,123,900 11,546 12,033 361,995 371,895 552,877 510,060

1,168,092 1,087,210 11,546 12,033 347,380 351,350 367,736 321,444

- - - - 660 - 54,069 31,104

61,300 36,690 - - 13,955 20,545 131,072 157,512

Expenses 2,581,536 2,049,763 11,411 12,923 297,074 312,120 335,899 422,039

- - - - - - - -

817,716 698,276 1,766 1,681 111,406 110,628 124,620 123,191

1,762,641 1,350,995 9,645 11,242 111,879 131,627 101,184 185,859

1,179 492 - - 73,789 69,641 107,937 112,393

- - - - - 224 2,158 596

Net income (loss) before subsidy (1,352,144) (925,863) 135 (890) 64,921 59,775 216,978 88,021

Subsidy income 5,066,584 5,146,695 - - - - - -

Net income (loss) before tax 3,714,440 4,220,832 135 (890) 64,921 59,775 216,978 88,021

Income tax expense - - - - (3,758) (13,356) 20,298 21,723

Net income (loss) after tax 3,714,440 4,220,832 135 (890) 68,679 73,131 196,680 66,298

Other comprehensive income (loss) - - - - (89,652) (96,745) 43,886 31,703

Total comprehensive income 3,714,440 4,220,832 135 (890) (20,973) (23,614) 240,566 98,001

PDGCC TIDCORP





(In thousand pesos)


Financial expenses

Others

SBC


Gains and premiums

Others

Business expenses

Personal services

NHA

80



Period Ended December 31, 2012

(with corresponding figures for 2011)

(in thousand pesos)

2011

(As restated)

Government equity


Additions/deductions 47,040 -


Share capital 22 a


Additions/deductions 900,000 1,549,510


Miscellaneous Capital


Additions/deductions (6,026,455) 242,688


Restricted capital




Appraisal Capital

Balance at beginning of period - -

Additions/Deductions 6,127,219 -

Balance at end of period 6,127,219 -

Appraisal increment




Members' equity 22 c




Net unrealized gain/loss on available for sale-investment/financial assets 22 d




Donated capital

Balance at beginning of period 1,651,908 272,362



Surplus reserve 22 b




Retained earnings 22 e




Other (Non Controlling Interest in the Net Assets)

Balance at beginning of period 1,844 1,584,476



TOTAL EQUITY 1,376,058,832 1,224,790,217

See Notes to Summary Financial Statements

TOTAL

Note 2012

81





(in thousand pesos)

2011 2011

(As restated) (As restated)

Government equity

Balance at beginning of period - - 200,000 200,000

Additions/deductions - - - - -

Balance at end of period - - 200,000 200,000 - -

Share capital


Additions/deductions - - - - -

Balance at end of period - - - - 10,000 10,000



Additions/deductions - - - - - -

Balance at end of period - - - - - -

Restricted capital



Balance at end of period 27,487 27,487 - - - -

Appraisal Capital


Additions/Deductions - -


Appraisal increment


Additions/deductions 6,062,873

Balance at end of period 6,472,579 409,706 - - - -

Members' equity

Balance at beginning of period - - 7,483,090 7,004,371 - -

Additions/deductions - - 675,533 478,719 - -

Balance at end of period - - 8,158,623 7,483,090 - -

Net unrealized gain/loss on AFS



Balance at end of period 63,179,561 38,575,406 - - - -

Donated capital

Balance at beginning of period 11,677 11,677 - - - -


Balance at end of period 11,677 11,677 - - - -

Surplus reserve

Balance at beginning of period 543,899,282 486,675,848 - - -

Additions/deductions 60,473,461 57,223,434 - - -


Retained earnings

Balance at beginning of period 31,725,038 27,673,620 1,999,547 1,876,333 13,145 11,608

Additions/deductions 2,091,805 4,051,418 (192,523) 123,214 537 1,537

Balance at end of period 33,816,843 31,725,038 1,807,024 1,999,547 13,682 13,145


Balance at beginning of period 1,844 1,584,476


Balance at end of period 4,323 1,844 - - -

TOTAL EQUITY 707,885,213 614,650,440 10,165,647 9,682,637 23,682 23,145

AFPRSBS SUMSIGSIS

2012 2012 20122011

82

mailto:[email protected]





(in thousand pesos)

2011 2011 2011

(As restated) (As restated) (As restated)

Government equity

Balance at beginning of period 61,155 61,155 - -

Additions/deductions 47,040 - - -


Share capital

Balance at beginning of period - - 3,870,510 3,870,510 10,000 10,000 13,573,000 12,673,000

Additions/deductions 400,000 - - - 500,000 900,000

Balance at end of period - - 4,270,510 3,870,510 10,000 10,000 14,073,000 13,573,000


Balance at beginning of period

Additions/deductions - - - - - - - -


Restricted capital


Additions/deductions -


Appraisal Capital


Additions/Deductions


Appraisal increment


Additions/deductions -

Balance at end of period - - - - - - 2,407,442 2,407,442

Members' equity


Additions/deductions 12,115,710 19,958,932 - - - - - -




Additions/deductions - - 297 3,847


Donated capital

Balance at beginning of period 251 251 1,379,546 -

Additions/deductions - - 2,689,609 1,379,546

Balance at end of period 251 251 - - - - 4,069,155 1,379,546

Surplus reserve


Additions/deductions 1,832 1,141 - - -


Retained earnings

Balance at beginning of period 33,281,325 29,206,046 (8,551,266) (9,993,137) 312,072 229,341 (12,720,683) (12,098,737)

Additions/deductions 2,623,970 4,075,279 616,977 1,441,871 (81,759) 82,731 (575,105) (621,946)

Balance at end of period 35,905,295 33,281,325 (7,934,289) (8,551,266) 230,313 312,072 (13,295,788) (12,720,683)



Additions/deductions


TOTAL EQUITY 255,867,238 241,125,726 (3,555,584) (4,619,601) 240,313 322,072 7,269,525 4,654,724

NHMFC

2012 2012 2012 20122011

SHFC HGCHDMF

83





(in thousand pesos)

2012 2011 2012 2011 2012 2011

Government equity




Share capital

Balance at beginning of period - - - -







Restricted capital

Balance at beginning of period - - - - - -



Appraisal Capital

Balance at beginning of period - - - - - -

Additions/Deductions - - - - - -


Appraisal increment

Balance at beginning of period 1,505,524 1,505,524 -

Additions/deductions 258,102 - - -


Members' equity

Balance at beginning of period -

Additions/deductions 330,088

Balance at end of period 330,088 - - - - -

Net unrealized gain/loss on AFS/FS


Additions/deductions 68,863 130,460


Donated capital

Balance at beginning of period 11,392 11,392 249,042 249,042


Balance at end of period 11,392 11,392 - - 249,042 249,042

Surplus reserve

Balance at beginning of period 285,619,354 260,172,015 1,271 1,271 - -

Additions/deductions 36,092,153 25,447,339 - - - -

Balance at end of period 321,711,507 285,619,354 1,271 1,271 - -

Retained earnings

Balance at beginning of period - - 303,838 294,009 (27,847) (39,097)

Additions/deductions - - 18,604 9,829 36,387 11,250

Balance at end of period - - 322,442 303,838 8,540 (27,847)





TOTAL EQUITY 351,422,038 314,672,832 323,713 305,109 257,582 221,195

SSS ECC OSHC

84





(in thousand pesos)

2011

(As restated)

Government equity

Balance at beginning of period - - - - - - - -



Share capital

Balance at beginning of period 2,893,407 2,893,407 - - 1,968,739 1,889,229 5,461,899 4,891,899

Additions/deductions - - - - - 79,510 - 570,000

Balance at end of period 2,893,407 2,893,407 - - 1,968,739 1,968,739 5,461,899 5,461,899



Additions/deductions (6,026,455) 242,688 - - - - - -


Restricted capital


Additions/deductions - - - -


Appraisal Capital


Additions/Deductions 6,127,219 -

Balance at end of period 6,127,219 - - - - - - -

Appraisal increment

Balance at beginning of period - - -



Members' equity

Balance at beginning of period - 17,898 17,898




Balance at beginning of period - - 31,703 (224)

Additions/deductions - - - - - - 12,183 31,927


Donated capital




Surplus reserve

Balance at beginning of period - - - - - - - -



Retained earnings

Balance at beginning of period 28,243,227 24,520,058 2,636 2,927 511,821 549,487 (5,016,970) (3,917,371)

Additions/deductions 2,203,154 3,723,169 264 (291) (19,143) (37,666) 110,305 (1,099,599)

Balance at end of period 30,446,381 28,243,227 2,900 2,636 492,678 511,821 (4,906,665) (5,016,970)





TOTAL EQUITY 43,078,130 40,774,212 20,798 20,534 2,461,417 2,480,560 599,120 476,632

20122011 2011 2011

TIDCORPNHA PDGCC SBC

2012 2012 2012

85

(In thousand pesos)

Note 20122011

As restated


Cash inflows 300,472,455 250,384,245

Cash outflows (264,328,489) (232,536,070)

Net cash provided by operating activities 36,143,966 17,848,175


Cash inflows 250,348,364 238,698,471

Cash outflows (305,417,289) (272,806,305)



Cash inflows 26,968,403 30,693,423

Cash outflows (16,286,408) (13,481,142)

Net cash provided by financing activities 10,681,995 17,212,281

Net decrease in cash and cash equivalents

(8,242,964) 952,622

(8,745) 174




equivalents


Summary Statement of Cash Flows

For the Year Ended December 31, 2012



TOTAL

86



(In thousand pesos)

2011

(As restated)

Cash inflows 86,389,409 74,093,466 262,104 271,335 4,169 9,982

Cash outflows (67,863,984) (65,824,961) (1,134,492) (1,068,075) (3,276) (7,379)

Net cash provided by (used in) operating activities 18,525,425 8,268,505 (872,388) (796,740) 893 2,603

Cash inflows 49,890,012 43,148,990 165,340 193,011 -

Cash outflows (73,186,983) (65,209,498) (15,848) (34,327) (1,199) (1,392)

(23,296,971) (22,060,508) 149,492 158,684 (1,199) (1,392)

Cash inflows - - 1,426,287 1,226,936 15 -

Cash outflows - - (496,207) (569,198) (600) (300)

- - 930,080 657,738 (585) (300)

cash equivalents (4,771,546) (13,792,003) 207,184 19,682 (891) 911

- - - - - -

40,120,268 53,912,271 167,803 148,121 13,760 12,849

35,348,722 40,120,268 374,987 167,803 12,869 13,760

2011 2012 2011 2012

Net cash provided by (used in) investing activities


2012

SUMSI



GSIS AFPRSBS

Net cash provided by (used in) financing activities


Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period


equivalents



87



(In thousand pesos) 5

2012 2011 2012 2011 2012 2011 2012 2011

Cash inflows 78,421,505 51,862,902 3,966,604 4,025,744 242,196 1,281,028 1,219,303 1,948,337

Cash outflows (91,206,847) (61,991,635) (3,920,018) (2,636,173) 865,147 (1,042,755) (480,458) (1,316,466)

Net cash provided by (used in) operating activities (12,785,342) (10,128,733) 46,586 1,389,571 1,107,343 238,273 738,845 631,871

Cash inflows 199,041,672 194,608,775 632,721 384,339 - - 91,737 309,586

Cash outflows (202,680,382) (197,306,885) (1,261,894) (860,287) (20,889) (9,475) (62,211) (627,972)

(3,638,710) (2,698,110) (629,173) (475,948) (20,889) (9,475) 29,526 (318,386)

Cash inflows 24,308,040 27,201,946 - - - - 500,000 900,000

Cash outflows (12,833,843) (11,032,392) - - - - (1,396,115) (535,028)

11,474,197 16,169,554 - - - - (896,115) 364,972

cash equivalents (4,949,855) 3,342,711 (582,587) 913,623 1,086,454 228,798 (127,744) 678,457

(8,379) - - - - - (136) 1

9,072,776 5,730,065 1,984,282 1,070,659 1,049,822 821,024 2,506,422 1,827,964

4,114,542 9,072,776 1,401,695 1,984,282 2,136,276 1,049,822 2,378,542 2,506,422

NHMFC SHFC HGC




HDMF









equivalents

88



(In thousand pesos)

2011

(As restated)

Cash inflows 120,482,758 107,824,679 110,509 77,188 102,023 105,591

Cash outflows (91,575,677) (91,182,253) (61,742) (61,249) (102,863) (85,864)

Net cash provided by (used in) operating activities 28,907,081 16,642,426 48,767 15,939 (840) 19,727

Cash inflows - - 6,672 6,201 3113 3110

Cash outflows (27,933,950) (8,652,455) (7,522) (520) (9,758) (5,234)

(27,933,950) (8,652,455) (850) 5,681 (6,645) (2,124)

Cash inflows 60,290 - - - - -

Cash outflows (143,352) (107,362) - - - -

(83,062) (107,362) - - - -

cash equivalents 890,069 7,882,609 47,917 21,620 (7,485) 17,603

- - - -

15,261,265 7,378,656 257,016 235,396 176,627 159,024

16,151,334 15,261,265 304,933 257,016 169,142 176,627

2012 20112012


ECC OSHC



SSS

2012 2011









equivalents

89



(In thousand pesos)

2011

(As restated)

Cash inflows 7,980,659 7,141,398 76,058 75,070 628,961 1,080,638 586,197 586,887

Cash outflows (7,755,153) (5,085,367) (81,223) (70,867) (610,547) (867,779) (397,356) (1,295,247)

Net cash provided by (used in) operating activities 225,506 2,056,031 (5,165) 4,203 18,414 212,859 188,841 (708,360)

Cash inflows 1,118 1,158 - - 231,291 43,242 284,688 59

Cash outflows (222,936) (9,062) (458) (323) (6,293) (13,004) (6,966) (75,871)

(221,818) (7,904) (458) (323) 224,998 30,238 277,722 (75,812)

Cash inflows - - - - 173,771 494,541 500,000 870,000

Cash outflows (20,682) (37,785) - - (546,915) (644,708) (848,694) (554,369)

(20,682) (37,785) - - (373,144) (150,167) (348,694) 315,631

cash equivalents (16,994) 2,010,342 (5,623) 3,880 (129,732) 92,930 117,869 (468,541)

- - (230) 173

3,839,203 1,828,861 20,643 16,763 551,508 458,578 67,232 535,600

3,822,209 3,839,203 15,020 20,643 421,776 551,508 184,871 67,232

2011 2012



NHA PDGCC SBC TIDCORP



2012 2011 2012 2011 2012







equivalents


90

91

CLUSTER 2 – SOCIAL SECURITY SERVICES AND HOUSING NOTES TO SUMMARY FINANCIAL STATEMENTS (Amounts in thousand pesos unless otherwise stated) 1. GENERAL INFORMATION COA Resolution No. 2012-019 dated December 20, 2012 revised, among others,

the restructuring of the Corporate Government Sector (CGS) under COA Resolution No. 2012-016 dated December 7, 2012. This is to support the implementation of unified and package audits of agencies in the Central and Regional Offices to attain the integrated audit actions for more efficient and effective delivery of audit services. It also aims to attain consistency and uniformity in the implementation of audit policies, procedures and processes.

The four Clusters of CGS per COA Resolution No. 2012-016 was increased to six

Clusters, one of which is Cluster 2 - Social Security Services and Housing, which has the following government- owned or controlled corporations (GOCCs) under its audit jurisdiction: 1. AFP-Retirement and Separation Benefits System (AFP-RSBS) 2. Employees’ Compensation Commission (ECC) 3. 4.

Government Service Insurance System (GSIS) GSIS Family Bank (GFB)

5. Home Development Mutual Fund (HDMF) 6. Home Guaranty Corporation (HGC) 7. National Home Mortgage Corporation (NHMFC) 8. 9. 10.

National Housing Authority (NHA) Occupational Safety and Health Center (OSHC) Palacio del Gobernador Condominium Corporation (PDGCC)

11. Small Business Corporation (SBC) 12. Social Housing Finance Corporation (SHFC) 13. 14.

Social Security System (SSS) Southern Utility Management and Services Inc. (SUMSI)

15. Trade & Investment Development Corporation of the Philippines (TIDCORP)

Of the 15 GOCCs, seven are operating only at the National Capital Region (NCR), namely; AFP-RSBS, GFB, HGC, OSHC, PDGCC, TIDCORP and SUMSI while the others have branches, extension or project offices, satellite offices and receiving centers in the other regions . The GFB is a subsidiary of GSIS while SUMSI is a subsidiary of AFP-RSBS. The SHFC is the only subsidiary of the NHMFC.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation The financial statements of nine Corporations included in this Report have been prepared in accordance with accounting principles generally accepted in the Philippines as set forth in the Philippine Financial Reporting Standards (PFRS) and the generally accepted accounting principles (GAAP), as well as the reporting practices prescribed by the concerned regulatory agencies. The OSHC and PDGCC adopted the old generally accepted state accounting principles. Four agencies adopted the New Government Accounting System (NGAS), namely; National Home Mortgage Finance Corporation (NHMFC), National Housing Authority (NHA), Social

92

Housing Finance Corporation (SHFC), and Southern Utility Management and Services Inc. (SUMSI). The specific accounting policies adopted by the Corporations included in this Report and the standards, amendments and interpretations which became effective in 2012 are discussed extensively in the individual Notes to Financial Statements. Consolidated Annual Audit Report The Annual Audit Report of GSIS, HDMF, NHA, NHMFC, SHFC, SSS, ECC and SBC for CY 2012 included consolidated financial data from its regional branches, extension, district or project offices and receiving centers. The Annual Audit Report of GSIS Family Bank is consolidated with its parent, GSIS. Basis of Compliance The financial statements are presented in accordance with Philippine Accounting Standard (PAS) 1, Presentation of Financial Statements. All items of income and expenses are presented in a single statement of comprehensive income while items in the statement of financial position are presented in the order of liquidity. Currency of presentation Unless otherwise stated, all amounts presented in this report are expressed in Philippine pesos, rounded off to the nearest thousands (P000). Accrual Basis of Accounting In accordance with Philippine Accounting Standard (PAS) 1, the financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Significant accounting judgments and estimates In accordance with PFRS and old GAAP, the preparation of the financial statements requires the use of certain critical accounting estimates and assumptions that affect the reported amount of assets, liabilities, income and expenses and disclosure of contingent assets and contingent liabilities. It also requires management to exercise its judgment in applying the Corporations’ accounting policies. Future events may occur which will cause the assumptions used in arriving at the estimates to change. The effects of any change in estimates are reflected in the financial statements as they become reasonably determinable. Financial assets Financial assets are classified in the following major categories: financial assets at fair value through profit or loss, held to maturity investments, available-for-sale financial assets and loans and receivables. At initial recognition, the agencies classify the financial assets based on the purpose for which they are acquired and re-evaluate the designation at every reporting date. Financial assets are derecognized when the rights to receive cash flows from the asset have expired or has transferred its rights to receive cash flows from the asset and either has transferred substantially all the risks and rewards of the asset, or has neither transferred nor retained the risk and rewards of the asset but has transferred the control of the asset.

93

Financial liabilities Financial liabilities are recognized when the Corporation becomes a party to the contractual agreements of the instrument. All interest and related charges are recognized as an expense in the statement of comprehensive income. Financial liabilities are derecognized from the statement of financial position only when the obligations are extinguished either through discharge, cancellation or expiration. Financial assets and liabilities are classified in the financial statements at the appropriate assets and liabilities accounts. Impairment of financial assets The Corporation assesses at each balance sheet date whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. If there is objective evidence that an impairment loss on loans and receivables carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the income statement. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed by adjusting the allowance account. However, the carrying amount after the reversal of the impairment loss should not exceed the carrying amount of the loan account had there been no impairment loss recognized. The amount reversed is recognized in the income statement. When an indicator of impairment of property and equipment, investment property and other resources exists, the Corporations make a formal estimate of the recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. 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 group of assets. Allowance for probable losses Allowance for probable losses is adequately set up at a level to provide for potential receivables, the collection of which is considered remote. The level of this allowance is based on management’s evaluation on past collection experience and other factors that may affect collectibility. Periodic evaluation of receivables is made to identify potential accounts that require allowance.

94

Property and equipment Property, plant and equipment, except land, are stated at cost less accumulated depreciation/amortization and impairment in value. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, when it is probable that future economic benefits associated with the item will flow to the entities and the cost of the item can be measured reliably. Significant improvements are capitalized and all other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. When property is disposed, the cost and the related accumulated depreciation are eliminated and any gain or loss resulting from their disposal is credited or charged to current operations. Depreciation Depreciation is computed over the depreciable amount less its residual value. It is recognized in the income statement on a straight-line basis over the estimated useful lives of the property and equipment. Recognition of income and expenses Income is recognized on accrual basis to the extent that it is probable that the economic benefits will flow into the corporations and the income can be reliably measured. Expenses are recognized on accrual basis when the expenses are incurred. Subsequent events Any post-year event that provides additional information about the Corporations’ position at the balance sheet date (adjusting event) is reflected in the financial statements. Post-year end events that are non adjusting events, if any, are disclosed in the individual Notes to financial statements, when material.

3. CASH AND CASH EQUIVALENTS This account consists of the following:

2012 2011

Cash on hand and in banks 33,861,312 38,082,282 Cash equivalents 32,975,606 37,006,345

66,836,918 75,088,627

Cash in banks earn interest at the respective bank deposit rates. Cash equivalents consist of money market placements, special savings, time deposits and other fixed income securities with maturities of three months or less from date of acquisition and which earn interest at the respective short-term deposit rates.

4. SHORT-TERM INVESTMENTS This account includes the following:

95

2012 2011

Financial assets available for sale 246,156,075 164,727,894 Held to maturity investments 164,046,200 174,685,981 Securities held for trading/held for trading financial assets 11,848,935 6,037,228

Marketable securities 3,397,718 3,295,548

Investments in bonds & other debt instruments 33,069 32,625

425,481,997 348,779,276

The increase in the financial assets available for sale of P81.428 billion was caused by the net increase in securities available for sale of GSIS, HDMF and TIDCORP while the decrease of held to maturity investments by P10.640 billion was mainly due to maturity of investments of GSIS, SSS and SBC.

5. RECEIVABLES This account consists of the following:

2012 2011

Loans receivable 272,481,611 217,218,760

Premium receivable 38,988,703 24,957,888

Mortgage contracts receivable 23,133,508 31,353,298

Sales contracts receivable 13,695,074 24,884,554

Accounts receivable 7,366,894 7,149,453

Due from other banks/collecting banks 5,716,292 5,272,490

Interest receivable 3,093,408 2,847,133

Rent receivable 2,349,091 2,343,447

Loans receivable-others 974,847 1,060,162

Due from NGAs 186,062 78,815

Due from other funds 184,440 148,133

Due from LGUs 130,350 49,819


Due from GOCCs 56,384 10,840

Finance lease receivable 27,346 27,129

Advances to officers and employees 6,310 8,776

Due from NGOs/POs 4,332 2,400

Advances to contractors/affiliates 1,755 1,755

Due from officers and employees 892 7,302

Other receivables 3,213,255 1,059,206

371,727,560 318,599,015

Allowance for doubtful accounts (48,011,231) (352,977)

323,716,329 318,246,038

Loans receivable are generally carried in the books at amortized cost or at the amount at which the financial asset is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization, using the effective interest method, of any difference between the initial amount and the maturity amount, and

96

minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility. Loans receivable represents loans granted to members, government agencies and private entities. Premium receivable represents receivable arising from unremitted members’ contribution and other premiums already due but not yet collected. Mortgage contract receivables represents loans that are backed-up by real estate mortgages (REM) under various home lending programs. Sales contracts receivable pertains to high yielding receivables purchased from various developers intended to provide them with liquidity mechanism. The purchase is with recourse, substitution, buy back feature and a cash flow guarantee that ensures full remittance of the monthly interest and principal. This account also consists of receivables from borrowers under the home lending program using the Contract to Sell (CTS) as a primary debt instrument.

6. INVENTORIES The breakdown of this account is as follows:

2012 2011

Merchandise inventory 5,096,614 7,559,452

Construction in progress 1,391,583 3,980,471


Other supplies inventory 1,319 1,715

Materials inventory 404 -

Drugs and medicines inventory 154 127

Accountable forms inventory 55 64

6,730,595 11,770,078

Merchandise Inventory account represents the cost of completed projects available for disposition/sale and properties acquired from beneficiaries who failed to pay their accounts with NHA. Construction in Progress account pertains to the cost of on-going projects of NHA.



2012 2011

Prepaid expenses 113,504 145,493

Deposit on letters of credit 101,379 -

Advances to contractors 88,240 12,694


Prepaid insurance 2,050 1,851

Prepaid rent 3 -

97

328,613 178,087

8. LONG-TERM RECEIVABLES These are non-current receivables that are expected to be recovered or realized beyond twelve months after the balance sheet date, broken down as follows:

2012 2011

Notes and bonds 152,392,156 125,069,678

Loans and receivables 93,957,344 82,226,074

Mortgage contract receivable 86,091,751 79,818,588

Sales contract receivable 79,558,849 67,774,652

Installment sales receivable 29,147,857 28,910,891


Due from government agencies 12,085,004 13,253,653

Assets held in trust 9,530,906 9,310,125

Lease receivable 324,811 352,157


Receivables from banks 142,870 151,978

Others 7,376,848 7,448,255

483,605,132 427,434,287


464,788,634 410,190,710

9. LONG-TERM INVESTMENTS The details of this account are as follows:

Available-for-sale financial assets 117,814,335 111,054,622

Investments in bonds/stocks 11,083,178 11,226,679

Investments in real estate 7,008,594 7,036,751

Sinking fund 1,440,594 1,411,219

Held to maturity investments 1,415,273 1,535,321

Investment in joint venture 1,164,802 1,167,448

Advances to subsidiaries and associates 49,216 53,180

Equity investments 7,937 6,437

Other long term investments 11,390,876 10,222,883

151,374,805 143,714,540

Allowance for decline in value of investments (1,776,068) (1,759,889)

149,598,737 141,954,651

Available for sale financial assets include among others, marketable securities, corporate bond and other debt instruments of SSS, HDMF and SBC.

98



Land,

Buildings and Leasehold

Improvements

Construction

in Progress

Furniture,

Fixtures, and Office

Equipment

Machineries

and Equipment

Transpor-

tation Equipment

/Motor Vehicle

Others

Total

Cost 22,165,863 114,428 8,671,716 15,253 393,844 231,500 31,592,604 Accumulated depreciation/ amortization/ impairment

(4,672,344)

-

(6,397,566)

(13,146)

(255,567)

(120,198)

(11,458,821)


17,493,519

114,428

2,274,150

2,107

138,277

110,302

20,133,783


8,008,198

219,174

2,378,093

1,672

121,327

111,885

10,840,349


Land

Buildings

and Building Improvements

Real and Other

Properties Acquired

Others

Total

Cost 20,757,382 4,188,302 45,938,151 1,432,076 72,315,911 Accumulated depreciation/impairment (169,327) (6,793,606) (6,962,933) Disposal/deductions (396,162) (834,614) (60,450) (1,291,226)

Net carrying amount, 12/31/12 20,361,220 4,018,975 38,309,931 1,371,626 64,061,752


16,183,937

3,917,300

33,018,202

1,414,674

54,534,113

This account consists of properties acquired by agencies from defaulting borrowers held to earn rental or for capital appreciation or both. Investment properties are initially recognized at cost, including transaction costs. Subsequently, it is measured at fair value with changes in fair value recognized in the income statement. The agencies under this Cluster adopted the cost model in measuring its investment properties, hence, these are carried at cost less accumulated depreciation and any impairment in value. Depreciation and impairment loss are recognized in the same manner as in Property and Equipment. Investment property is derecognized upon disposal or when permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on the retirement or disposal of an investment property is recognized in profit or loss in the year of retirement or disposal.

12. OTHER NON-CURRENT ASSETS This account consists of the following:

2012 2011

Income receivable 17,271,117 16,403,159

Garnished/foreclosed assets 9,640,126 12,436,897 Non-current assets held for sale 5,135,261 5,705,055

Due from reinsurer 2,272,390 2,365,630

99


Assets held in trust 1,068,790 1,063,837

Paintings and tapestries 411,918 411,918

Intangibles 336,739 440,314

Restricted funds/assets 302,293 289,584

Deferred tax asset 72,803 64,391

Rental deposit 573 1,443

Other non-current assets 7,013,002 6,547,750


40,521,778 41,107,904

Income receivable pertains to interests on members’ and non-members’ loan receivables, interests on premium in arrears, interest on investments and accrued rentals.



2012 2011


Insurance liabilities 11,769,737 9,425,347

Bonds payable 11,768,122 14,188,790

2012 2011

Loans payable – domestic 2,050,000 7,200,000

Notes payable 978,316 909,347

Dividends payable 538,609 361,057


Due to officers and employees 52,004 1,235


Income tax payable 874 539

43,445,277 47,136,290

14. CURRENT PORTION OF MEMBERS’ EQUITY

This account pertains to the Members’ Equity representing Total Accumulated Values (TAVs) of HDMF members which have reached the 20 year maturity at December 31, 2012 but have not been withdrawn, as well as those that will reach the same maturity by year 2013 are reclassified to Accounts Payable - Members at year end.

15. OTHER CURRENT LIABILITIES


2012 2011

Sundry accounts payable 3,016,881 4,661,226

100

Due to National Treasury/Nat’l Government 2,371,884 2,329,926

Inter-agency payables 1,523,488 1,384,938

Funds held in trust 1,220,895 1,418,754

Due to GOCCs/LGUs/NGAs 1,086,890 470,711


Undistributed collections 756,634 1,748,448

Vouchers payable 587,261 555,608

Member’s contribution payable 537,558 430,033

Other deferred credits 262,352 252,093

Provision for pending litigation 185,356 895,702

Unearned/deferred income 130,475 139,503

Accrued taxes and licenses payable 68,958 75,741

Due to BIR/HDMF/PHIC/GSIS 30,591 14,486


Customer’s deposit 482 262

Tax refunds payable 433 411

Other current liabilities 14,883,917 12,093,267

27,482,341 26,991,784

16. LOANS PAYABLE

2012 2011

Loans payable-domestic 34,568,490 39,715,693

Trust liabilities 13,346,930 11,574,394

Loans payable-foreign 2,162,414 2,338,393

Due to other funds 1,068,790 1,063,837

Due to other NGAs 337,991 337,991

51,484,615 55,030,308

Loans payable - domestic represents among others obligations to Funders (SSS, HDMF and GSIS) of the Unified Housing Loan Program of NHMFC amounting to P29.568 billion and P34.716 billion for CY 2012 and 2011, respectively. This account also includes the P5.000 billion loan of HDMF with GSIS which will mature on December 15, 2031.

17. DEFERRED CREDITS


2012 2011

Unearned income 9,238,634 7,161,211

Due to other funds-trust accounts 4,052,711 3,995,429

Depository liabilities-beneficiaries 866,840 435,534


Other deferred credits 20,387,340 20,945,653

34,552,320 32,546,411

101

The other deferred credits consists among others the capitalized interest income on HDMF - Multi-Purpose Loans and restructured housing loans which are credited to interest income upon amortization every month end. It also includes capitalized origination fees on loans processed prior to May 30, 2001, being amortized and credited as income over the term of the loan; unearned income from Housing Loans; and rental payments on foreclosed properties under the redemption period and Rent-to-Own arrangement.

18. BONDS PAYBLE

This account consists of the non-current portion of the HDMF outstanding housing bonds and HGC debenture bonds intended to ensure the steady flow of funds for shelter programs and generate funds for payment of guaranty calls totaling P12.071 billion and P12.270 billion for CY 2012 and 2011, respectively.

19. ACCRUED RETIREMENT BENEFITS This account represents the SSS provision for retirement benefit or past service pension cost and vacation/sick leave payable with balances of P1.504 billion and P1.507 billion for CY 2012 and 2011, respectively.

20. MORTGAGE PAYABLE This account represents proceeds of the loan of NHA from the Philippine Veterans Bank amounting to P500 million used to bridge finance acquisition of various lots for the Northrail Relocation Program which is secured by properties of NHA in Vitas Reclamation Industrial Area. 21. OTHER NON-CURRENT LIABILITIES

This account consists among others of estimated liability on earning of member’s contribution of AFPRSBS amounting to P2.553 billion and P2.440 billion for CY 2012 and 2011. Total other non-current liabilities amounted to P3.607 billion and P3.436 billion for CY 2012 and 2011, respectively.

22. EQUITY

This account consists among others the following:

a) Share in capital consists of the paid in portion of the authorized capital of the Corporations.

b) Surplus reserves consists among others the net operating revenue of GSIS reduced by the increase in reserves. This also includes the reserve fund of SSS which consist of the total comprehensive income reduced by the corporate operating budget for ECC and OSHC.

c) Members’ equity represents among others the contributions reduced by withdrawals/refund of the members of HDMF, SSS and AFPRSBS. For

102

HDMF, it includes the corresponding employers’ counterpart of the members’ contributions as well as the accumulated dividends of members. The account is reduced by the provident claims of members, offsetting of unpaid provident/multi-purpose loans against Total Accumulated Values (TAV) and projected 20-year maturing TAVs. For CY 2012, this account was also reduced by the Members’ Contributions-Unallocated dividends which was reclassified to Retained Earnings amounting to P7.223 billion.

d) Net unrealized gain/loss on equity securities represents the difference between the cost of investments/other financial assets and their market values at balance sheet date which is treated as temporary increase or decline in market value and presented as increase or reduction in net worth/equity. These are recorded in the books of GSIS, SSS, HGC and TIDCORP.

e) The retained earnings includes the net income of the corporations, net

among others of the transfer reserves of GSIS amounting to P60.488 billion, HDMF’s provision for impairment loss of P10 billion, dividends of HDMF members of P8.491 billion and other prior period adjustments.

23. INCOME

The reported income by government-owned and/or controlled corporations under the Cluster is classified into three categories: business and service income, gains and premiums and other income, details as follows: a. Business and service income include among others, members’ contributions

from members of the GSIS and SSS amounting to P80.433 billion and P94.210 billion or a total of P174.643 billion; income from investments of GSIS, AFPRSBS, HGC, SBC and SSS totaling P73.895 billion; income from financial assistance/loans; interest income, service fees, financing fees, guarantee and commitment fees, rent/lease income and fine and penalties which are directly related to the principal revenue-producing activities of the agencies.

For calendar years 2012 and 2011, total business and service income amounted to P297.495 billion and P260.381 billion, respectively.

b. Gains and premiums include income from financial asset and liabilities held for

trading, sale/derecognition of securities/investment, disposal of assets and dealings in foreign currency. For calendar years 2012 and 2011, total gains and premiums amounted to P0.877 billion and P2.868 billion, respectively or a decrease of P1.991 billion due to decrease among others on gain from financial asset and liabilities held for trading of GSIS and HDMF.

c. Other income includes interest on bank deposits, dividend income and other

miscellaneous income, which totaled P5.856 billion and P6.126 billion, for CY 2012 and 2011 respectively.

Total income for calendar years 2012 and 2011 (exclusive of subsidy) amounted to P304.228 billion and P269.375 billion, respectively.

103

24. EXPENSES Expenses are classified into business expenses, personal services, maintenance and other operating expenses, financial expenses and other expenses, details as follows: a. Business expenses include among others, the following:

Claims and benefits paid by GSIS for social, optional life, general, pre-need and employee compensation insurance of P68.128 billion and P56.901 billion for CY 2012 and 2011, respectively.

Benefit payments by SSS for retirement, death, disability, maternity, funeral grant, sickness and medical services totaling P84.173 billion and P82.760 billion for CY 2012 and 2011, respectively.

Lending costs of HDMF totaling P7.094 billion and P8.291 billion for CY 2012 and 2011 respectively.

b. Personal services consist of salaries and wages and other manpower costs

including personnel benefits contributions to GSIS, HDMF, PHIC and ECC and employees’ terminal benefits. The breakdown is presented as follows:

2012 2011

Salaries and wages 4,422,446 4,495,122

Other compensation 2,610,981 2,310,776

Personnel benefits contributions 2,009,091 2,229,113

Others 2,684,733 3,056,839

11,727,251 12,091,850

c. Maintenance and other operating expenses include expenses other than

manpower costs, breakdown as follows:

2012 2011

Provision for probable losses/bad debts 3,212,702 1,196,811

Professional services and other services 1,076,008 972,938

Depreciation expense 1,054,831 1,268,787


Utility expenses 558,108 473,567

Rent expenses 508,911 463,828


Supplies and materials expenses 339,982 287,181

Foreclosure / litigation expenses and legal 269,372 194,010

Taxes, insurance premiums and other fees 203,968 157,415

Advertising expenses 168,987 121,308 Confidential, intelligence, extraordinary and miscellaneous expenses

165,841

176,301

Insurance 162,009 165,056


Membership dues & contributions to organizations 68,171 90,056


104

Representation expenses 26,507 32,960

Fuel, oil and lubricants 21,792 24,384

Transportation and delivery expenses 19,344 30

Cultural and athletic expenses 18,960 13,914

Printing and binding expenses 6,914 26,268

Donations 6,024 820

Business development expenses 4,512 2,295

Meetings and conferences 3,104 2,810

Program development expenses 2,394 1,433

Directors' fees and allowances 1,833 2,706

Subscription expenses 576 516

2012 2011

Rewards and other claims 511 8,240

Others 2,554,282 1,354,855

11,707,669 8,245,578

d. Financial expenses are those that are not directly related to the operations of the

agencies such as interest expense on loans, bank charges and other financial charges, details as follows:

2012 2011

Interest expense 2,548,144

2,987,631

Bank charges 9,212 5,151

Others 2,896 1,508

2,560,252 2,994,290

Interest expense account include among others, the interest on bonds and borrowings by HDMF, HGC, SBC and TIDCORP.

e. All other expenses that are not classified as personal services, maintenance and

other operating expenses and financial expenses are classified as other expenses, details as follows:

2012 2011

Impairment loss

4,555,676

601,353

Loss on foreign exchange/ revaluation 3,435,860 327,354

Loss on sale of disposed assets 94,031 3,295

Loss on sale of securities/investment 591 192,275

Others 36,973 39,058

8,123,131 1,163,335

The increase in this account was caused among others, by the net increases on impairment loss on financial assets of GSIS and SSS amounting to P1.854 billion and P2.408 billion, respectively and on loss on foreign exchange of GSIS amounting to P2.858 billion.

105

25. SUBSIDY INCOME

This account consists of income received by agencies from the National Government, details as follows:

2012 2011

National Housing Authority 5,066,584

5,146,695

National Home Mortgage and Finance Corporation 500,000 1,462,140

Occupational Safety and Health Center 121,607 89,742

Social Security System 45,280 -

5,733,471 6,698,577

26. OTHER COMPREHENSIVE INCOME

This account includes unrealized gain (loss) on investment securities, revaluation increase on land, adjustments on gain on fair value and available for sale financial assets, exchange differences on translating foreign operations and unrealized gain (loss) on derivative valuation. The increase in this account was caused among others by the increase of P11.918 billion in unrealized gain on investments and valuation of land of P6.063 billion, both for GSIS. Other comprehensive income totaled P30.954 billion and P12.765 billion for CY 2012 and 2011, respectively.

27. RESTATEMENT AND RECLASSIFICATION In compliance with the provisions of PAS 8 which prescribes the criteria for selecting and changing accounting policies, changes in accounting estimates and corrections of errors. Material prior period errors on the financial statements of some corporations included in this report were restated or corrected retrospectively by:

a) Restating the comparative amounts for the prior period(s) presented in which the error occurred; or

b) If the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity of the earliest prior period presented.

The financial statements for CY 2011 of the following corporations/subsidiaries were restated to conform with the provisions of PAS 8:

1. Government Service Insurance System 2. Home Guaranty Corporation 3. National Home Mortgage Finance Corporation 4. Social Housing Finance Corporation 5. Southern Utility Management Services Inc. 6. Trade & Investment Development Corporation of the Philippines

Also, certain accounts in the 2011 financial statements were reclassified to conform with the 2012 presentation.

Schedule 1

1 AFP - Retirement and Separation Benefits

System

AFPRSBS - 424 Capinpin Avenue, Camp Aguinaldo,

Quezon City

PD 361

2 Employees' Compensation Commission ECC - ECC Bldg. 355 Sen. Gil Puyat Ave.,

Makati City

PD No. 626

3 Government Service Insurance System GSIS - Government Financial Center, Roxas

Boulevard, Pasay City

Commonwealth Act No. 186

4 GSIS Family Bank GSISFB GSIS 2/FAIC Grande Tower, Garnet Road,

Ortigas Center, Pasig City

Corporate Law/Acquired thru dacion

5 Home Development Mutual Fund HDMF - JELP Bldg., 409 Addition Hills, Shaw

Blvd., Mandaluyong City

PD No. 1530

6 Home Guarantee Corporation HGC - Jade Bldg., 335 Sen. Gil J. Puyat Ave.,

Makati City

RA 8763

7 National Home Mortgage Finance

Corporation

NHMFC - 104 3rd Floor, Filomena Bldg.,

Amorsolo St., Legaspi Vill., Makati City

PD No. 1267

8 National Housing Authority NHA - Elliptical Road, Diliman, Quezon City PD 757 as amended EO 90 of 1986

9 Occupational Safety and Health Center OSHC - North Ave., cor. Agham Road, Diliman,

Quezon Ctiy

EO No. 307 issued on November 4, 1987

10 Palacio Del Gobernador Condominium

Corporation

PDGCC - Gen. Luna St., cor. Andres Soriano, Jr.

Ave., Intramuros, Manila

Corporate Law


CLUSTER 2 - SOCIAL SECURITY SERVICES AND HOUSING

Address Enabling Law/Creation

Summary Data of Agencies Under Cluster 2 - Social Security Services and Housing

Agency Name Abbreviation

Parent /

Controlling

Entity

106

Address Enabling Law/CreationAgency Name Abbreviation

Parent /

Controlling

Entity

11 Small Business Corporation SBC - 139 Corporate Center, 139 Valero St.,

Salcedo Vill., Makati City

Section 11 of RA No. 6977 amended by

RA No. 8289

12 Social Housing Finance Corporation SHFC NHMFC Banco De Oro Plaza, 8737 Paseo de

Roxas, Makati City

EO No. 272

13 Social Security System SSS - East Ave., Quezon City RA No. 1161

14 Southern Utilities Management and

Services Inc.

SUMSI AFPRSBS RSBS Blvd. Phase I, San Lorenzo

Subdivision, Sta. Rosa, Laguna

Corporate Law

15 Trade and Investment Development

Corporation of the Philippines

TIDCORP - 3/F Citibank Center, Citibank Plaza,

8741 Paseo de Roxas, Makati City

PD No. 550 and PD No. 1080

107

Financial

Statements

of

GOCCs

Cluster 3

Cluster 3 - Public Utilities



(In thousand pesos)

Notes 2012 2011

Assets

Current assets 387,376,767 299,290,051


Short term investments 4,624,381 4,957,556

Receivables (net) 3 269,008,165 201,721,532

Inventories, net 4 4,658,593 4,476,443

Prepayments and deferred charges 5 7,383,101 5,960,001

Others 6 23,598,993 24,415,309

Non-Current Assets 1,458,488,166 1,391,401,365

Long-term receivables, net 7 536,325,005 588,084,614


Property, plant and equipment - net 9 527,164,614 448,523,705


BOT electric plants under capital lease 11 47,506,125 49,465,232

Intagible Assets 407,715 582,630

Others 12 98,403,659 96,576,263

Total Assets 1,845,864,933 1,690,691,416


Current liabilities 271,558,772 283,080,300

Trade & non-trade payables 14 190,254,765 197,786,743


BOT lease obligation 11 32,087,802 34,261,796

Others 22,050,382 15,286,720

Non-Current Liabilities 935,513,279 978,118,611

Notes payable 2,000,000 2,000,000


Bonds payable 208,158,046 220,806,708

Loans and advances payable 15 387,425,223 368,289,745


Provision for estimated liabilities 1,055,177 1,095,758


Others 52,072,126 54,443,152

Total liabilities 1,207,072,051 1,261,198,911

Equity 638,792,882 429,492,505


See accompanying Notes to Summary Financial Statements.

December 31, 2012

TOTAL

111




(In thousand pesos)

2012 2011 2012 2011 2012 2011 2012 2011

AssetsCurrent assets 4,162,407 8,593,637 2,769,051 2,890,424 10,159,437 9,520,034 11,937,199 6,833,800

Cash and cash equivalents 380,277 4,854,463 1,862,287 1,598,202 1,970,887 1,412,907 6,084,544 3,193,944

Short term investments - - - - - - - -

Receivables (net) 2,509,723 2,342,887 843,321 1,192,738 7,784,659 7,505,043 5,840,293 3,632,439

Inventories, net 1,267,518 1,362,436 3,039 3,203 644 737 11,210 5,952

Prepayments and deferred charges 4,889 33,851 60,404 96,281 403,247 601,347 1,152 1,465

Others - - - - - - - -

Non-Current Assets 66,625,982 49,797,526 12,785,515 13,058,545 44,620,752 43,577,393 7,832,933 9,222,841

Long-term receivables, net - - 8,522,448 8,778,437 10,728 10,728 7,575,920 8,965,749

Long-term investments 216 216 553,569 581,879 366,685 475,920 1,038 1,038

Property, plant and equipment - net 58,162,639 45,789,996 181,596 207,911 43,384,809 42,224,026 252,302 252,381

Investment property - - - - - - - -

BOT electric plants under capital lease - - - - - - - -

Intagible Assets - - - - - - - -

Others 8,463,127 4,007,314 3,527,902 3,490,318 858,530 866,719 3,673 3,673

Total Assets 70,788,389 58,391,163 15,554,566 15,948,969 54,780,189 53,097,427 19,770,132 16,056,641


Current liabilities 9,112,831 12,210,674 3,615,034 4,082,385 3,714,438 3,847,412 18,211,293 13,713,618

Trade & non-trade payables 6,317,140 9,330,170 66,362 495,039 1,947,320 1,825,144 12,102,199 12,174,643

Current portion of long-term debt 2,780,872 2,868,619 647,160 654,432 978,131 1,226,734 359,993 436,712

BOT lease obligation - - - - - - - -

Others 14,819 11,885 2,901,512 2,932,914 788,987 795,534 5,749,101 1,102,263

Non-Current Liabilities 60,402,002 65,091,973 5,480,562 6,372,426 14,586,606 14,600,663 480,852 1,100,754

Notes payable - - - - - - - -

Mortgage payable - - - - - - - -

Bonds payable - - - - - - - -

Loans and advances payable 60,402,002 65,091,973 5,473,907 6,367,769 11,641,293 11,974,276 426,693 1,044,927

BOT lease obligation - - - - - - - -

Provision for estimated liabilities - - - - - - - -

Deferred credits - - 6,655 4,657 2,945,313 2,626,387 54,159 55,827

Others - - - - - - - -

Total liabilities 69,514,833 77,302,647 9,095,596 10,454,811 18,301,044 18,448,075 18,692,145 14,814,372

Equity 1,273,556 (18,911,484) 6,458,970 5,494,158 36,479,145 34,649,352 1,077,987 1,242,269

Total liabilities and equity 70,788,389 58,391,163 15,554,566 15,948,969 54,780,189 53,097,427 19,770,132 16,056,641


December 31, 2012

LRTA LWUA MWSS NEA

112




(In thousand pesos)

AssetsCurrent assets

Cash and cash equivalents

Short term investments

Receivables (net)

Inventories, net

Prepayments and deferred charges

Others

Non-Current Assets

Long-term receivables, net


Property, plant and equipment - net

Investment property


Intagible Assets

Others

Total Assets


Current liabilities

Trade & non-trade payables

Current portion of long-term debt

BOT lease obligation

Others

Non-Current Liabilities

Notes payable

Mortgage payable

Bonds payable

Loans and advances payable


Provision for estimated liabilities

Deferred credits

Others

Total liabilities

Equity

Total liabilities and equity


December 31, 2012

2012 2011 2012 2011 2012 2011 2012 2011

17,610,289 12,626,407 846,873 787,476 6,607,518 5,882,424 5,920,528 4,525,344

4,323,340 3,225,335 324,639 293,159 4,522,343 4,098,113 1,816,618 873,652

- - - - - - - -

11,989,473 8,095,802 471,985 463,658 1,243,892 1,001,613 3,956,188 3,409,185

1,265,911 1,277,774 9,764 4,632 43,379 39,362 107,763 101,137

31,565 27,496 40,485 26,027 797,620 743,052 39,959 36,091

- - - - 284 284 - 105,279

8,930,565 9,538,293 52,255,681 12,834,333 97,895,869 98,899,199 2,907,632 2,912,246

269,662 289,777 - - - - - -

- - - - 1,989,104 2,180,899 476,145 475,933

8,655,777 9,172,946 52,239,712 12,818,364 95,569,305 96,366,624 2,431,487 2,436,313

- - - - - - - -

- - - - - - - -

- - - - - - - -

5,126 75,570 15,969 15,969 337,460 351,676 - -

26,540,854 22,164,700 53,102,554 13,621,809 104,503,387 104,781,623 8,828,160 7,437,590

3,859,243 7,011,330 22,971,621 22,039,548 3,428,102 4,945,565 5,910,479 4,844,514

3,793,281 6,903,709 22,498,197 21,523,162 2,573,372 3,675,219 2,234,945 2,478,852

42,553 44,358 335,338 466,385 475,554 846,463 - -

- - - - - - - -

23,409 63,263 138,086 50,001 379,176 423,883 3,675,534 2,365,662

1,438,868 1,506,609 2,984,411 3,567,460 9,901,234 11,701,640 279,180 299,238

- - - - 2,000,000 2,000,000 - -

- - - - - - - -

- - - - - - - -

806,504 885,069 2,792,261 3,371,978 7,072,227 8,859,022 184,542 206,854

- - - - - - - -

625,062 613,463 - - 430,115.00 482,295 - -

7,302 8,077 192,150 195,482 398,892 360,323 94,638 92,384

- - - - - - - -

5,298,111 8,517,939 25,956,032 25,607,008 13,329,336 16,647,205 6,189,659 5,143,752

21,242,743 13,646,761 27,146,522 (11,985,199) 91,174,051 88,134,418 2,638,501 2,293,838

26,540,854 22,164,700 53,102,554 13,621,809 104,503,387 104,781,623 8,828,160 7,437,590

NPC PNR PPA PPC

113




(In thousand pesos)




Receivables (net)

Inventories, net


Others

Non-Current Assets




Investment property


Intagible Assets

Others

Total Assets


Current liabilities




Others


Notes payable

Mortgage payable

Bonds payable




Deferred credits

Others

Total liabilities

Equity



December 31, 2012

2012 2011 2012 2011 2012 2011 2012 2011

7,297,752 10,073,459 533,545 509,222 502,034 535,942 4,787,018 4,063,917

2,910,852 4,448,276 422,574 407,720 276,352 287,976 2,087,771 1,847,838

3,121,433 4,332,554 - - - - 729,070 1,124

48,940 72,733 98,218 85,492 171,919 189,492 960,576 1,396,747

- - - - 40,334 46,439 455,315 283,864

180,707 197,605 12,718 16,008 3,598 2,204 554,286 534,344

1,035,820 1,022,291 35 2 9,831 9,831 - -

33,408,987 33,242,663 2,388,149 2,410,198 396,549 345,113 9,176,438 8,878,853

1,216,881 1,031,301 - - - - - -

5,273,274 5,273,274 2,155 2,479 123,024 73,024 375,848 332,580

225,643 197,565 1,287,005 1,291,795 4,925 3,496 8,026,898 7,868,590

11,600,292 11,610,519 1,098,989 1,100,217 265,965 265,965 - -

- - - - - - - -

- - - - - - - -

15,092,897 15,130,004 - 15,707 2,635 2,628 773,692 677,683

40,706,739 43,316,122 2,921,694 2,919,420 898,583 881,055 13,963,456 12,942,770

419,836 378,209 24,462 16,060 10,042 8,764 935,201 804,667

341,954 281,424 24,462 16,060 6,673 5,395 367,479 664,248

- - - - - - - -

- - - - - - - -

77,882 96,785 - - 3,369 3,369 567,722 140,419

5,008,231 5,083,078 405,877 406,226 245,163 260,757 2,621,465 2,663,424

- - - - - - - -

- - - - - - - -

- - - - - - - -

2,790,605 2,868,204 386,747 386,747 79,707 79,707 14,243 13,201

- - - - - - - -

- - - - - - - -

2,217,626 2,214,874 19,130 19,479 - - 2,427,693 2,476,422

- - - - 165,456 181,050 179,529 173,801

5,428,067 5,461,287 430,339 422,286 255,205 269,521 3,556,666 3,468,091

35,278,672 37,854,835 2,491,355 2,497,134 643,378 611,534 10,406,790 9,474,679

40,706,739 43,316,122 2,921,694 2,919,420 898,583 881,055 13,963,456 12,942,770

PNOC PNOC-AFC PNOC-DMC PNOC-EC

114




(In thousand pesos)




Receivables (net)

Inventories, net


Others

Non-Current Assets




Investment property


Intagible Assets

Others

Total Assets


Current liabilities




Others


Notes payable

Mortgage payable

Bonds payable




Deferred credits

Others

Total liabilities

Equity



December 31, 2012

2012 2011 2012 2011 2012 2011 2012 2011

746 732 492,533 714,108 110,643 244,755 282,308,823 205,773,120

11 11 397,199 619,057 36,412 30,388 45,719,409 26,251,103

728 715 - - - - - -

7 6 61,191 66,916 44,482 33,822 210,742,057 155,087,718

- - 12,517 14,794 5,764 11,082 - -

- - 21,626 13,341 12,769 104,412 3,505,675 1,392,457

- - - - 11,216 65,051 22,341,682 23,041,842

- - 627,638 401,602 877,491 919,666 715,078,732 730,477,494

- - - - - 8,669 398,140,822 445,008,941

- - 347,850 122,457 5,443 5,443 222,831,094 182,297,864

- - 279,767 279,124 858,908 892,414 34,594,680 39,599,151

- - - - - - - -

- - - - - - 47,506,125 49,465,232

- - - - - - - -

- - 21 21 13,140 13,140 12,006,011 14,106,306

746 732 1,120,171 1,115,710 988,134 1,164,421 997,387,555 936,250,614

1,632 1,606 30,842 31,823 103,588 39,754 182,581,776 192,007,052

1,632 1,606 30,842 31,823 103,588 39,754 128,947,752 128,543,918

- - - - - - 21,546,222 29,201,338

- - - - - - 32,087,802 34,261,796

- - - - - - - -

- - 80,494 80,494 1,320,134 1,242,877 656,929,876 689,862,184

- - - - - - - -

- - - - - - - -

- - - - - - 208,153,443 220,802,928

- - 80,494 80,494 - 225,762 137,552,570 102,680,363

- - - - - - 265,356,325 314,094,112

- - - - - - - -

- - - - - - 931,839 872,716

- - - - 1,320,134 1,017,115 44,935,699 51,412,065

1,632 1,606 111,336 112,317 1,423,722 1,282,631 839,511,652 881,869,236

(886) (874) 1,008,835 1,003,393 (435,588) (118,210) 157,875,903 54,381,378

746 732 1,120,171 1,115,710 988,134 1,164,421 997,387,555 936,250,614

PNOC-MPC PNOC-RC PNOC-STC PSALM

115




(In thousand pesos)




Receivables (net)

Inventories, net


Others

Non-Current Assets




Investment property


Intagible Assets

Others

Total Assets


Current liabilities




Others


Notes payable

Mortgage payable

Bonds payable




Deferred credits

Others

Total liabilities

Equity



December 31, 2012

2012 2011 2012 2011

21,308,001 16,849,666 10,022,370 8,865,584

756,902 595,303 4,211,117 3,721,763

- - 773,150 623,163

19,106,366 14,328,292 3,134,875 2,816,949

53,142 52,970 1,382,293 1,272,061

1,391,591 1,873,101 320,810 260,919

- - 200,125 170,729

362,139,406 336,222,281 40,539,847 38,663,119

120,565,315 123,966,636 23,229 24,376

610 6,896 3,369,747 3,362,318

186,002,541 155,945,274 35,006,620 33,177,735

- - - -

- - - -

- - 407,715 582,630

55,570,940 56,303,475 1,732,536 1,516,060

383,447,407 353,071,947 50,562,217 47,528,703

12,525,595 13,327,818 4,102,757 3,769,501

5,221,192 6,406,928 3,676,375 3,389,649

- - - -

- - - -

7,304,403 6,920,890 426,382 379,852

152,933,985 154,174,101 20,414,339 20,104,707

- - - -

- - 1,103 1,988

- - 4,603 3,780

138,611,197 145,528,491 19,110,231 18,624,908

- - - -

- - - -

9,387,941 7,811,121 761,941 649,399

4,934,847 834,489 536,461 824,632

165,459,580 167,501,919 24,517,096 23,874,208

217,987,827 185,570,028 26,045,121 23,654,495

383,447,407 353,071,947 50,562,217 47,528,703

TRANSCO Water District

116


Summary Statement of Income and Expenses



(in thousand pesos)

Notes 2012 2011

Income 136,656,659 99,373,168


Gains and premiums 15 38,846,239 769,185

16 8,485,881 14,075,661

Less: Share of national government - -


Expenses 86,717,472 91,772,116

Business expenses 12,107,573 14,291,608

Personal services 17 11,666,050 11,593,321

Maintenance and other operating expenses 18 31,812,227 30,875,816


Others 19 1,157,374 5,274,855

Net income (loss) before subsidy 49,939,187 7,601,052

Subsidy income 18,143,020 5,077,870

Net income (loss) before tax 68,082,207 12,678,922

Income Tax Expense (benefit) 2,622,644 1,824,015

NET INCOME (LOSS) AFTER TAX 65,459,563 10,854,907

See notes to summary financial statements

Total

Others

117





(in thousand pesos)

2012 2011 2012 2011 2012 2011 2012 2011

Income 9,679,520 3,317,069 1,751,932 1,106,146 4,077,407 2,643,699 864,828 668,112

Business and service income 3,442,165 3,126,827 1,106,927 1,235,666 2,719,051 2,643,489 125,094 28,812

Gains and premiums 6,010,349 - 641,101 (133,960) 1,357,705 7 69,254 30,412

227,006 190,242 3,904 4,440 651 203 670,480 608,888

Less: Share of national government - - - - - - -

Income after share of National Government 9,679,520 3,317,069 1,751,932 1,106,146 4,077,407 2,643,699 864,828 668,112

Expenses 5,879,031 6,957,621 807,092 2,467,603 2,131,702 2,310,603 412,321 460,664

Business expenses 750,637 645,890 - - - - - -

Personal services 628,897 600,480 406,717 517,365 193,305 208,279 204,671 208,676

Maintenance and other operating expenses 2,974,362 3,071,282 113,675 1,571,204 1,682,245 1,673,786 117,623 108,681

Financial expenses 1,524,575 691,564 286,700 379,034 256,017 281,494 90,027 143,307

Others 560 1,948,405 - - 135 147,044 - -

Net income (loss) before subsidy 3,800,489 (3,640,552) 944,840 (1,361,457) 1,945,705 333,096 452,507 207,448

Subsidy income - 1,867,512 - - - - - -

Net income (loss) before tax 3,800,489 (1,773,040) 944,840 (1,361,457) 1,945,705 333,096 452,507 207,448

Income Tax Expense (benefit) - - 77,103 (409,322) - - 111,929 51,721

NET INCOME (LOSS) AFTER TAX 3,800,489 (1,773,040) 867,737 (952,135) 1,945,705 333,096 340,578 155,727


LRTA LWUA MWSS NEA

Others

118





(in thousand pesos)

Income


Gains and premiums

Less: Share of national government

Income after share of National Government

Expenses

Business expenses

Personal services


Financial expenses

Others

Net income (loss) before subsidy

Subsidy income

Net income (loss) before tax

Income Tax Expense (benefit)

NET INCOME (LOSS) AFTER TAX


Others

2012 2011 2012 2011 2012 2011 2012 2011

10,163,390 7,581,267 965,214 356,693 10,542,361 8,523,917 3,307,362 3,435,065

10,055,789 7,384,940 232,974 188,442 9,124,361 8,359,905 3,304,360 3,429,403

38,639 18,066 562,484 - 1,244,503 - - 3,421

68,962 178,261 169,756 168,251 173,497 164,012 3,002 2,241

- - - - - - - -

10,163,390 7,581,267 965,214 356,693 10,542,361 8,523,917 3,307,362 3,435,065

9,765,811 9,857,028 1,143,950 1,104,618 6,323,785 6,603,842 3,255,316 3,424,777

7,006,365 7,118,801 - - - - - -

- - 100,953 89,346 1,285,046 1,442,565 2,288,933 2,385,799

2,699,911 2,432,386 638,315 496,830 4,539,043 4,137,166 938,164 1,023,979

32,572 184,538 404,682 463,822 459,979 525,739 26,329 14,999

26,963 121,303 - 54,620 39,717 498,372 1,890 -

397,579 (2,275,761) (178,736) (747,925) 4,218,576 1,920,075 52,046 10,288

- 2,256,888 128,653 780,000 - - 600,538 167,540

397,579 (18,873) (50,083) 32,075 4,218,576 1,920,075 652,584 177,828

- - - - 1,060,556 770,140 - -

397,579 (18,873) (50,083) 32,075 3,158,020 1,149,935 652,584 177,828

PPC NPC PNR PPA

119





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income





Others

2012 2011 2012 2011 2012 2011 2012 2011

2,036,406 5,592,954 103,330 98,305 81,217 113,024 8,963,359 10,164,275

2,036,406 5,592,954 99,587 91,602 64,541 97,440 8,918,590 10,088,621

- - - 66 - - - -

- - 3,743 6,637 16,676 15,584 44,769 75,654

- - - - - - - -

2,036,406 5,592,954 103,330 98,305 81,217 113,024 8,963,359 10,164,275

334,043 358,573 108,682 273,227 46,513 41,283 4,708,351 5,744,858

173,020 172,657 68,320 81,875 25,240 26,163 3,941,923 4,981,470

- - - - - - - -

92,609 122,531 39,160 90,663 21,119 14,984 707,283 626,467

67,732 59,142 1,202 100,689 154 136 - 5,593

682 4,243 - - - - 59,145 131,328

1,702,363 5,234,381 (5,352) (174,922) 34,704 71,741 4,255,008 4,419,417

- - - - - - - -

1,702,363 5,234,381 (5,352) (174,922) 34,704 71,741 4,255,008 4,419,417

48,261 33,616 427 (46,639) 2,860 2,799 1,320,893 1,416,868

1,654,102 5,200,765 (5,779) (128,283) 31,844 68,942 2,934,115 3,002,549


120





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income





Others

2012 2011 2012 2011 2012 2011 2012 2011

14 17 39,339 78,846 (43,814) 6,609 46,466,009 19,356,344

- - 131 51,495 220,221 252,577 10,634,681 6,055,430

- - - - - - 28,899,960 845,469

14 17 39,208 27,351 (264,035) (245,968) 6,931,368 12,455,445

- - - - - - - -

14 17 39,339 78,846 (43,814) 6,609 46,466,009 19,356,344

26 23 33,253 77,028 327,683 460,223 26,556,949 29,884,948

- - 104 33,467 99,523 122,621 - 1,047,130

- - 14,900 12,222 - - 144,681 154,618

26 23 17,202 31,339 215,220 273,242 1,202,783 1,228,207

- - 1,047 - 12,940 64,360 25,209,485 25,180,546

- - - - - - - 2,274,447

(12) (6) 6,086 1,818 (371,497) (453,614) 19,909,060 (10,528,604)

- - - - - - 16,545,140 -

(12) (6) 6,086 1,818 (371,497) (453,614) 36,454,200 (10,528,604)

- - 306 363 - - - -

(12) (6) 5,780 1,455 (371,497) (453,614) 36,454,200 (10,528,604)


121





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income





Others

2012 2011 2012 2011

17,291,038 17,553,206 20,367,747 18,777,620

17,135,575 17,378,843 20,104,086 18,521,876

22,604 2,460 (360) 3,244

132,859 171,903 264,021 252,500

- - - -

17,291,038 17,553,206 20,367,747 18,777,620

6,744,202 4,840,970 18,138,762 16,904,227

42,441 61,534 - -

92,994 97,165 6,304,953 5,876,806

5,690,320 4,664,157 10,123,167 9,308,889

1,601 1,284 1,599,206 1,640,269

916,846 16,830 111,436 78,263

10,546,836 12,712,236 2,228,985 1,873,393

864,128 - 4,561 5,930

11,410,964 12,712,236 2,233,546 1,879,323

- - 309 4,469

11,410,964 12,712,236 2,233,237 1,874,854

Water Districts TRANSCO

122





(In thousand pesos)

Note 2012 2011

Government equity




Share capital




Contingent capital




Share premium


Additions/deductions - 5,274


Invested capital

Balance, beginning of period - -


Balance, end of period - -

Appraisal increment




Donated capital












Surplus reserves/appropriated RE




Retained earnings (deficit) 16




Treasury shares

Balance, beginning of period (735) (735)


Balance, end of period (735) (735)

Restricted capital




Appraisal capital




Deposits for future subscriptions



Balance, end of period 17,807,763 -

TOTAL EQUITY 638,786,959 429,492,511

TOTAL

See accompanying Notes to Summary Financial Statements123





(In thousand pesos)

2012 2011 2012 2011 2012 2011 2012 2011

Government equity

- - - - - - 5,148,021 5,148,021

- - - - - - - -

- - - - - - 5,148,021 5,148,021

Share capital

2,985,546 2,985,546 2,500,000 2,500,000 6,095,487 6,095,487 - -

- - - - - - - -

2,985,546 2,985,546 2,500,000 2,500,000 6,095,487 6,095,487 - -

Contingent capital

35,431 35,431 - - - - - -

- - - - - - - -

35,431 35,431 - - - - - -

Share premium

- - - - - - - -

- - - - - - - -

- - - - - - - -

Invested capital

- - - - - - - -

- - - - - - - -

- - - - - - - -

Appraisal increment

3,034,879 3,034,879 - - 28,656,079 28,656,079 - -

(3,034,648) - - - - - - -

231 3,034,879 - - 28,656,079 28,656,079 - -

Donated capital

23 23 3,542,118 3,542,118 1,046,971 1,046,971 - -

- - 97,075 - - - - -

23 23 3,639,193 3,542,118 1,046,971 1,046,971 - -


- - - - - - - -

- - - - - - - -

- - - - - - - -

LRTA LWUA MWSS NEA

Balance, beginning of period


Balance, end of period






















124





(In thousand pesos)

2012 2011 2012 2011 2012 2011 2012 2011

LRTA LWUA MWSS NEA


- - 61,370 61,370 - - - -

- - - - - - - -

- - 61,370 61,370 - - - -


- - - - - - - -

- - - - - - - -

- - - - - - - -

Retained earnings (deficit)

(24,967,363) (22,956,113) (609,330) 342,805 (1,149,185) (2,365,776) (3,905,752) (3,976,150)

5,411,925 (2,011,250) 867,737 (952,135) 1,829,793 1,216,591 (164,282) 70,398

(19,555,438) (24,967,363) 258,407 (609,330) 680,608 (1,149,185) (4,070,034) (3,905,752)

Treasury shares

- - - - - - - -

- - - - - - - -

- - - - - - - -

Restricted capital

- - - - - - - -

- - - - - - - -

- - - - - - - -

Appraisal capital

- - - - - - - -

- - - - - - - -

- - - - - - - -


- - - - - - - -

17,807,763 - - - - - - -

17,807,763 - - - - - - -

TOTAL EQUITY 1,273,556 (18,911,484) 6,458,970 5,494,158 36,479,145 34,649,352 1,077,987 1,242,269

See accompanying Notes to Summary Financial Statements






















125





(In thousand pesos)

Government equity

Share capital

Contingent capital

Share premium

Invested capital

Appraisal increment

Donated capital


























2012 2011 2012 2011 2012 2011 2012 2011

- - 903 903 - - - -

- - - - - - - -

- - 903 903 - - - -

27,048,871 27,048,871 1,500,000 1,500,000 4,312,337 4,312,337 3,756,810 3,277,810

- - - - - (12,012) 479,000

27,048,871 27,048,871 1,500,000 1,500,000 4,312,337 4,312,337 3,744,798 3,756,810

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

2,222,387 2,222,387 1,023,588 1,023,588 66,559,868 57,634,892 1,575,397 1,575,397

- - 39,352,818 - (115,798) 8,924,976 (190) -

2,222,387 2,222,387 40,376,406 1,023,588 66,444,070 66,559,868 1,575,207 1,575,397

4,158 4,158 - - 892,839 845,424 217 217

(1,335) - - - - 47,415 301 -

2,823 4,158 - - 892,839 892,839 518 217

- - - - - - - -

- - - - - - - -

- - - - - - - -

PPCNPC PNR PPA

126





(In thousand pesos)

Government equityMiscellaneous surplus



Treasury shares

Restricted capital

Appraisal capital


TOTAL EQUITY























2012 2011 2012 2011 2012 2011 2012 2011

PPCNPC PNR PPA

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

(15,628,655) (20,852,524) (14,509,690) (14,012,004) 16,369,374 16,157,045 (3,038,586) (3,210,208)

7,597,317 5,223,869 (221,097) (497,686) 3,155,431 212,329 356,564 171,622

(8,031,338) (15,628,655) (14,730,787) (14,509,690) 19,524,805 16,369,374 (2,682,022) (3,038,586)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

21,242,743 13,646,761 27,146,522 (11,985,199) 91,174,051 88,134,418 2,638,501 2,293,838

127





(In thousand pesos)

Government equity

Share capital

Contingent capital

Share premium

Invested capital

Appraisal increment

Donated capital


























2012 2011 2012 2011 2012 2011 2012 2011

- - - - - - - -

- - - - - - - -

- - - - - - - -

3,114,596 3,114,596 2,400,000 2,400,000 72,301 72,301 2,002,253 2,002,253

- - - - - -

3,114,596 3,114,596 2,400,000 2,400,000 72,301 72,301 2,002,253 2,002,253

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - 22,425 22,425

- - - - - -

- - - - - - 22,425 22,425

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - 1,008,396 1,008,396 69,953 69,953 - -

- - - - - - - -

- - 1,008,396 1,008,396 69,953 69,953 - -

- - - - - - 89,308 89,308

- - - - - - - -

- - - - - - 89,308 89,308

- - - - - - - -

- - - - - - - -

- - - - - - - -


128





(In thousand pesos)




Treasury shares

Restricted capital

Appraisal capital


TOTAL EQUITY























2012 2011 2012 2011 2012 2011 2012 2011


- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - 5,200,000 7,500,000

- - - - - - 1,112,000 (2,300,000)

- - - - - - 6,312,000 5,200,000

34,740,239 32,088,648 (911,262) (681,815) 469,280 408,685 2,161,428 1,866,108

(2,576,163) 2,651,591 (5,779) (229,447) 31,844 60,595 (179,889) 295,320

32,164,076 34,740,239 (917,041) (911,262) 501,124 469,280 1,981,539 2,161,428

- - - - - - (735) (735)

- - - - - - - -

- - - - - - (735) (735)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

35,278,672 37,854,835 2,491,355 2,497,134 643,378 611,534 10,406,790 9,474,679

129





(In thousand pesos)

Government equity

Share capital

Contingent capital

Share premium

Invested capital

Appraisal increment

Donated capital


























2012 2011 2012 2011 2012 2011 2012 2011

- - - - - - - -

- - - - - - - -

- - - - - - - -

625 625 374,972 374,972 190,000 190,000 (15,517,804) (22,553,100)

- - - - 39,178,784 7,035,296

625 625 374,972 374,972 190,000 190,000 23,660,980 (15,517,804)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - 187,820 187,820 27,451,371 -

- - - - (2,519,635) 27,451,371

- - 187,820 187,820 - - 24,931,736 27,451,371

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -


130





(In thousand pesos)




Treasury shares

Restricted capital

Appraisal capital


TOTAL EQUITY























2012 2011 2012 2011 2012 2011 2012 2011


- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - (244,293) - - - - -

- - (244,293) - - - - -

(1,499) (1,493) 440,601 439,441 (308,210) 148,488 42,447,811 35,002,164

(12) (6) 249,735 1,160 (317,378) (456,698) 66,835,376 7,445,647

(1,511) (1,499) 690,336 440,601 (625,588) (308,210) 109,283,187 42,447,811

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

(886) (874) 1,008,835 1,003,393 (435,588) (118,210) 157,875,903 54,381,378

131





(In thousand pesos)

Government equity

Share capital

Contingent capital

Share premium

Invested capital

Appraisal increment

Donated capital


























2012 2011 2012 2011

187,532,230 190,314,722 4,913,096 4,707,477

35,298,863 (2,782,492) 316,553 205,619

222,831,093 187,532,230 5,229,649 4,913,096

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - 22,914 17,640

- - - 5,274

- - 22,914 22,914

- - - -

- - - -

- - - -

- - -

- - -

- - - -

- - 1,478,920 1,393,690

- - 80,025 85,230

- - 1,558,945 1,478,920

- - - -

- - - -

- - - -

Water DistrictsTRANSCO

132





(In thousand pesos)




Treasury shares

Restricted capital

Appraisal capital


TOTAL EQUITY























2012 2011 2012 2011


- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

(1,962,202) (660,338) 16,605,119 14,838,681

(2,881,064) (1,301,864) 1,938,708 1,766,438

(4,843,266) (1,962,202) 18,543,827 16,605,119

- - - -

- - - -

- - - -

- - 445,405 436,452

- - 49,261 8,953

- - 494,666 445,405

- - 189,047 189,047

- - 150 -

- - 189,197 189,047

- - - -

- - - -

- - - -

217,987,827 185,570,028 26,039,198 23,654,501

133



Year Ended December 31, 2012


(In thousand pesos)

2012 2011


Cash inflows 220,477,198 209,457,401

Cash outflows 160,305,971 173,920,250

Net cash from (used in) operating activities 60,171,227 35,537,151


Cash inflows 3,805,286 11,372,315

Cash outflows 9,348,234 11,632,981

Net cash from (used in) investing activities (5,542,948) (260,666)


Cash inflows 61,133,571 87,661,939

Cash outflows 95,372,273 113,726,028

Net cash from (used in) financing activities (34,238,702) (26,064,089)

Effects of exchange rate changes on cash and cash equivalents (48,102) 98,348

Net increase (decrease) in cash and cash equivalents 20,341,475 9,310,744

Cash and cash equivalents at beginning of period 57,769,285 48,458,229

Cash and cash equivalents at end of period 78,110,760 57,768,973


TOTAL

134





(In thousand pesos)

2012 2011 2012 2011 2012 2011 2012 2011


Cash inflows 3,749,560 4,594,944 1,108,522 1,258,886 2,906,042 3,777,744 11,203,386 8,005,702

Cash outflows 3,090,920 2,963,023 889,710 1,116,897 338,385 645,894 7,478,081 5,341,094

Net cash from (used in) operating activities 658,640 1,631,921 218,812 141,989 2,567,657 3,131,850 3,725,305 2,664,608


Cash inflows - 4,500,000 40,538 305,122 180,000 319,402 - 619

Cash outflows 339,414 1,618,598 576,707 844,035 2,424,175 2,293,854 12,466 2,464

Net cash from (used in) investing activities (339,414) 2,881,402 (536,169) (538,913) (2,244,175) (1,974,452) (12,466) (1,845)


Cash inflows 85,250 370,167 1,284,204 2,856,638 2,274,446 4,479,443 - -

Cash outflows 4,878,662 384,895 702,762 1,123,004 2,036,733 8,582,142 822,239 960,355

Net cash from (used in) financing activities (4,793,412) (14,728) 581,442 1,733,634 237,713 (4,102,699) (822,239) (960,355)

Effects of exchange rate changes on cash and cash equivalents - - - - (3,215) (26,568) - 26

Net increase (decrease) in cash and cash equivalents (4,474,186) 4,498,595 264,085 1,336,710 557,980 (2,971,869) 2,890,600 1,702,434

Cash and cash equivalents at beginning of period 4,854,463 355,868 1,598,202 261,492 1,412,907 4,384,776 3,193,944 1,491,510

Cash and cash equivalents at end of period 380,277 4,854,463 1,862,287 1,598,202 1,970,887 1,412,907 6,084,544 3,193,944


LRTA LWUA MWSS NEA

135





(In thousand pesos)


Cash inflows

Cash outflows

Net cash from (used in) operating activities


Cash inflows

Cash outflows

Net cash from (used in) investing activities


Cash inflows

Cash outflows

Net cash from (used in) financing activities

Effects of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period


2012 2011 2012 2011 2012 2011 2012 2011

14,772,774 13,283,186 472,241 863,623 10,497,095 9,237,898 3,969,336 3,744,991

11,338,810 10,653,082 633,347 546,079 6,802,927 5,580,145 2,947,329 3,234,170

3,433,964 2,630,104 (161,106) 317,544 3,694,168 3,657,753 1,022,007 510,821

69,474 12,877 331,597 6,660 194,369 828,235 - 37

89,723 215,384 136,841 86,535 1,111,900 1,736,614 29,422 2,058

(20,249) (202,507) 194,756 (79,875) (917,531) (908,379) (29,422) (2,021)

65,000 - - - - 500,000 - -

2,380,685 281,062 2,170 - 2,354,111 1,753,813 47,729 254,397

(2,315,685) (281,062) (2,170) - (2,354,111) (1,253,813) (47,729) (254,397)

(25) - - - 1,704 40 (1,890) 3,421

1,098,005 2,146,535 31,480 237,669 424,230 1,495,601 942,966 257,824

3,225,335 1,078,800 293,159 55,490 4,098,113 2,602,512 873,652 615,828

4,323,340 3,225,335 324,639 293,159 4,522,343 4,098,113 1,816,618 873,652

NPC PPA PPCPNR

136





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

593,753 726,171 118,178 118,106 92,849 82,365 8,441,661 32,891,252

297,934 552,531 103,065 126,539 52,316 47,452 5,756,671 29,209,561

295,819 173,640 15,113 (8,433) 40,533 34,913 2,684,990 3,681,691

1,947,088 3,175,078 14,393 14,714 - - - -

202,798 223,607 14,652 13,255 52,157 168 937,192 423,902

1,744,290 2,951,471 (259) 1,459 (52,157) (168) (937,192) (423,902)

- - - - - - -

3,577,533 524,638 - - - - 1,501,503 5,396,363

(3,577,533) (524,638) - - - - (1,501,503) (5,396,363)

- - - - - - (6,362) 505

(1,537,424) 2,600,473 14,854 (6,974) (11,624) 34,745 239,933 (2,138,069)

4,448,276 1,847,803 407,720 414,694 287,976 253,231 1,847,838 3,985,907

2,910,852 4,448,276 422,574 407,720 276,352 287,976 2,087,771 1,847,838

PNOC PNOC-AFC PNOC-ECPNOC-DMC

137





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

- - 16,282 28,187 256,202 350,878 140,907,410 110,292,632

- - 38,251 54,902 235,688 314,982 102,794,662 97,257,063

- - (21,969) (26,715) 20,514 35,896 38,112,748 13,035,569

14 18 34,398 650,952 - 265 - -

14 18 234,287 7,753 46,327 66,619 234,386 152,594

- - (199,889) 643,199 (46,327) (66,354) (234,386) (152,594)

- - - - 152,000 75,000 56,255,469 78,061,493

- - - - 120,163 26,838 74,629,703 91,596,263

- - - - 31,837 48,162 (18,374,234) (13,534,770)

- - - - - - (35,822) 120,847

- - (221,858) 616,484 6,024 17,704 19,468,306 (530,948)

11 11 619,057 2,573 30,388 12,684 26,251,103 26,782,051

11 11 397,199 619,057 36,412 30,388 45,719,409 26,251,103

PSALMPNOC-MPC PNOC-RC PNOC-STC

138





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011

266,870 354,541 21,105,037 19,846,295

290,927 388,997 17,216,948 15,887,839

(24,057) (34,456) 3,888,089 3,958,456

667,489 1,249,202 325,926 309,134

479,341 1,397,475 2,426,432 2,548,048

188,148 (148,273) (2,100,506) (2,238,914)

- - 1,017,202 1,319,198

- - 2,318,280 2,842,258

- - (1,301,078) (1,523,060)

(2,492) 77 - -

161,599 (182,652) 486,505 196,482

595,303 777,955 3,731,838 3,535,044

756,902 595,303 4,218,343 3,731,526


139

140

CLUSTER 3

GENERAL INFORMATION

Cluster 3 composes of GOCCs engaged in energy, electrification, communication,

transportation, water and real estate development. The mandates of the GOCCs under this

Cluster are enumerated in Annex 4.

As of December 31, 2012, a total of 19 GOCCs composes this Cluster consisting of

11 parent/stand alone corporations, 8 subsidiaries and 477 Water Districts. The audit

jurisdiction and supervision over the 477 Water Districts and the following GOCCs, which are

located in the Regions, is with the various COA Regional Offices:

NAME OF GOCC ACRONYM REGION

Stand alone

Cebu Port Authority CPA VII

Light Rail Transit Authority LRTA NCR

Local Water Utilities Administration LWUA NCR

Metropolitan Waterworks and Sewerage Authority MWSS NCR

National Electrification Administration NEA NCR

National Power Corporation NPC NCR

Philippine National Oil Company PNOC NCR

Philippine National Railways PNR NCR

Philippine Ports Authority PPA NCR

Philippine Postal Corporation PPC NCR

Power Sector Assets and Liabilities Management Corp. PSALM NCR

Subsidiary

APO Production Unit APU NCR

National Transmission Corporation TransCo NCR

PNOC-Alternative Fuels Corporation PNOC-AFC NCR

PNOC-Renewables Corporation PNOC-RC NCR

PNOC-Development and Management Corporation PNOC-DMC NCR

PNOC-Shipping and Transport Corporation PNOC-STC NCR

PNOC-Exploration Corporation PNOC-EC NCR

PNOC-Malampaya Production Corporation PNOC-MPC NCR

A complete listing of the GOCCs under the audit jurisdiction of this Cluster, including their

acronyms, the addresses of their registered offices and the laws creating them, is presented in

Schedule 1.

Report Coverage/Limitations

The discussions that follow pertain to the Summary Financial Statements of GOCCs under this

Cluster other than the Water Districts. The Summary Financial Statements of the various

Water Districts are presented separately but without Notes to Financial Statements.

Excluding the Water Districts, there are 19 parent and subsidiary corporations under this

Cluster. The financial statements of these GOCCs were included in this AFR, with Annual

Audit Reports on 17 GOCCs already transmitted to their Boards/Managements.

The members of the governing boards of the GOCCs under this Cluster are listed in Annex 2.

141

CLUSTER 3

NOTES TO SUMMARY FINANCIAL STATEMENTS (in thousand pesos)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

EXPLANATORY INFORMATION

Basis of Preparation

The financial statements of the PNOC and subsidiaries have been prepared in accordance with

the Philippine Financial Reporting Standards. On the other hand, the financial statements of

the other GOCCs included in this AFR have been prepared in accordance with the Generally

Accepted Accounting Principles in the Philippines.

These financial statements have been prepared using the historical cost basis except for certain

properties which are stated at appraised or fair value.

The financial statements of the parent corporations were presented separately from those of

their subsidiaries.

The financial statements are presented in Philippine peso, which is the functional and

presentation currency of all the GOCCs under this Cluster. All amounts are rounded to the

nearest thousand.


Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid

investments with original maturities of three months or less from dates of purchase.

Receivables

Receivables are stated at face value, less allowance for doubtful accounts. Allowance for

uncollectibility is established based on a certain percentage of the receivables as aged which

varies among the GOCCs.

Inventories

Most GOCCs stated their inventories at cost which is determined by either the moving average

method or the first-in, first-out (FIFO) method. Other GOCCs stated their inventories at the

lower of cost and net realizable value.

Property, plant and equipment

Property, plant and equipment, except for land, are stated net of accumulated depreciation.

Property, plant and equipment are measured at cost except land and land improvements

pertaining to the Line 1 operations of LRTA. For LRTA, the property and equipment

pertaining to its Line 1 operations are measured at appraised value. Property and equipment of

PPA are carried at appraised value except for additions in between the periods of appraisal

which are recorded at cost. Appraisal of PPA property and equipment is being done once

every five years.

Utility plants of NPC and TransCo are carried at revalued amount less any accumulated

depreciation. NPC-transferred assets are recorded in PSALM books at their carrying amounts

as of transfer date of December 31, 2008.

Depreciation on property, plant and equipment is provided on a straight-line method over the

estimated useful lives of the corresponding assets.

Major repairs and improvements are capitalized; maintenance and minor repairs are charged to

operations in the year expenses are incurred.

142

The costs of assets retired or sold, together with the accumulated depreciation, are removed

from the accounts and any profit or loss on disposition is recognized for the period.

Build-Operate-Transfer (BOT) Plants

Total capacity fees for the duration of the cooperation period are capitalized and recognized as

asset under BOT Electric Plants under Capital Lease account. A liability corresponding to the

unpaid portion of the capital recovery fees is set up under BOT Lease Obligation. BOT assets

are amortized over 20 years, except for 1 plant which is amortized over 29 years. Privatized

BOT plants are derecognized from the books upon their turnover to the appointed Independent

Power Producer Administrator.

Revenue recognition

For PNOC-EC revenue is measured at the fair value of the consideration received.

For PNOC-STC Revenue is recognized to the extent that it is probable that economic benefits

will flow to the Company and the amount thereof can be reliably measured. However, when an

uncertainty arises on the collectability of an amount already included in revenue, the

uncollectible amount or the amount in respect of which recovery has ceased to be probable is

recognized as an expense rather than as an adjustment of the amount of revenue originally

recognized.

Revenues from services are stated at the amounts invoiced to customers excluding Value-

Added Tax (VAT). Revenues are recognized when there is evidence of an arrangement,

delivery of the service has already occurred and corresponding payment for such delivery is

reasonably assured.

For PDMC, revenues include Sale of real estate from the Costa Verde Subdivision and the El

Pueblo Condo units, interest on money market placements, management fee and rental.

The Company adopts the installment method of accounting in the determination of the period’s

income. Income is recognized upon receipt of sufficient down payment. Under the installment

method, gross profit on sale is initially deferred and recognized when the principal payments

on the related installment contracts receivable are collected. Realized income is computed

based on the collections multiplied by the average gross profit rate of the project.

For PAFC, revenues include sale, lease of land and services in connection with the

administration and operation of the common areas/facilities within the Park. The Company

adopts the accrual method of accounting in the determination of the period’s income.

The GOCCs adopt the accrual method of accounting for revenue and expenses.

Foreign currency transactions

Foreign currency transactions are recorded based on either the Bangko Sentral ng Pilipinas

(BSP) or the Philippine Dealing System (PDS) reference rates prevailing on the date of

transactions. Monetary assets and liabilities denominated in foreign currency are translated

using the exchange rate at balance sheet date. Translation adjustments are recognized in profit

and loss.


2012 2011

Cash on hand 1,369,497 1,353,185

Cash in banks 61,284,382 41,423,919

143

Short-term placements 11,238,538 11,260,343

73,892,417 54,037,447

Cash in banks, which are in local and foreign currencies, earn interest at the respective bank

deposit rates.

Short-term placements are made for varying periods of up to three months. These placements

earn interest at the respective short-term placement rates.

3. RECEIVABLES

2012 2011


Lease/rent receivable 409,875 391,886


Due from GOCCs, NGAs and LGUs 91,775,573 97,154,418


Due from Non-Government Organizations and

cooperatives 3,538,923

1,141,988

Due from operating units/other

funds/subsidiaries and affiliates 11,842,254

6,030,102

Due from officers and employees 493,763 380,036

Notes receivable 17,419 22,415



Others 13,859,168 24,687,358

271,289,027 203,967,287

Less: Allowance for doubtful accounts 5,415,737 5,062,704

265,873,290 198,904,583

Accounts receivable substantially consists of PSALM’s Power receivables of P80,959.79 and

P28,103.94 million for CY 2012 and CY 2011, respectively, consisting of power generation

charges, including ancillary service charges and restructured power receivables, net of refunds

to power customers as a result of ERC decisions. It also consists of PSALM’s receivable from

various Independent Power Producer Administrators (IPPAs) amounting to P38,809.09 million

and P18,752.37 million for CY 2012 and CY 2011, respectively, and receivables of NPC from

power customers amounting to P6,051.60 million and P3,227.43 million for CY 2012 and CY

2011, respectively.

Others substantially consist of PSALM account representing various transferred accounts from

NPC amounting to P3,514.30 million and P15,465.52 million for CY 2012 and CY 2011,

respectively, the nature of which is subject to validation upon disclosure of further details and

submission of supporting documents by NPC. It also consists of MWSS receivables from its

two concessionaires, the Maynilad Water Services, Inc. (MWSI) and the Manila Water

Company Incorporated (MWCI). The receivable from MWSI pertains to the restructured

concession fees amounting to P5,591.21 million and P5,509.50 million for CY 2012 and CY

2011, respectively, which composes the Tranche A2 concession fees-debt service and Tranche

B concession fees-cost of borrowings while that of the MWCI amounted to P136.19 million

and P141.17 million for CY 2012 and CY 2011, respectively.

4. INVENTORIES

144

2012 2011

At net realizable value:

Merchandise inventory 49,387 46,975

Materials and supplies 1,902,873 1,920,051

Gasoline, oil and lubricants 647,717 625,293

Others 681,124 622,076

3,281,101 3,214,395

Less : Allowance for obsolescence 4,801 10,013

3,276,300 3,204,382

Materials and Supplies substantially consists of spare parts for the repair and maintenance of

rolling stocks of LRTA.


2012 2011

Prepayments 2,990,896 711,989

Input VAT 316,829 336,926

Prepaid taxes 201,415 514,504

Creditable withholding tax 167,740 202,828



Guaranty deposits 964,613 968,764

Others 1,608,727 1,999,456

7,062,291 5,699,082


This account substantially consists of the following PSALM accounts: (1) Assets Held for Sale

representing the generation plants with total carrying amount of P16,869.73 million and

P14,379.41 million for CY 2012 and CY 2011, respectively, which are scheduled for

privatization in 2013; and (2) Assets in Trust with NPC amounting to P3,766.55 million and

P6,922.89 million for CY 2012 and CY 2011, respectively, representing various assets held by

NPC as part of its working capital as “Operator” under the Operations and Management

Agreement with PSALM.

7. LONG-TERM RECEIVABLES

2012 2011




funds/subsidiaries and affiliates 1,350,656

1,165,076

Others 10,916 79,585

549,704,883 603,006,993


536,301,776 588,060,238

Accounts receivable substantially consists of PSALM’s long-term portion of Power receivables

amounting to P58,237.10 million and P70,555.92 million for CY 2012 and CY 2011,

respectively. It also consists of PSALM’s receivable from various Independent Power

Producer Administrators (IPPAs) amounting to P349,728.97 million and P386,079.07 million

145

for CY 2012 and CY 2011, respectively. It also includes MWSS’s long-term portion of

Concession fee receivables amounting to P115,628.60 and P118,794.77 for CY 2012 and CY

2011, respectively.

Loans receivable substantially consists of NEA and LWUA accounts. The NEA account

includes the outstanding financial obligations of the electric cooperatives to NEA and to other

government agencies incurred for the purpose of financing the rural electrification program

which were assumed by the Power Sector Assets and Liabilities Management Corporation

(PSALM) per Section 60 of the EPIRA Law. The LWUA account consists of peso and foreign

cost releases to finance the development of various water supply projects in the provincial

areas.


2012 2011

Investment in subsidiaries/affiliates/joint

ventures 228,811,793

188,283,425

Investment in stocks 412,218 418,504

Sinking fund 1,466,872 1,151,047

Investment in Treasury Bills/Notes 280,749 1,016,240

Investment in bonds 593,443 445,094

Others 1,347,095 1,081,707

232,912,170 192,396,017

Less: Allowance for impairment 566,115 566,115

232,346,055 191,829,902

Investment in subsidiaries/affiliates/joint ventures includes the cost or fair value of investments

in TransCo of PSALM amounting to P222,831.09 million and P182,297.86 million for CY

2012 and CY 2011, respectively.


2012 2011

Land and land improvements 139,101,141 95,369,927

General plant facilities 343,198 243,611

Wells, platform and other facilities 13,270,232 12,670,700

Buildings and improvements 54,233,099 52,985,387

Leasehold improvements 3,521 3,398

Office equipment, furniture and fixtures 5,757,305 9,747,839

Machinery and equipment 3,044,944 4,241,134

Transportation equipment 50,057,601 41,941,907

Utility plant 401,972,605 350,113,173

Non-utility properties 29,935,358 24,676,077

Plant equipment and transmission lines 60,376,334 60,376,334

Others 1,585,825 1,581,532

759,681,163 653,951,019

Less: Accumulated depreciation 302,396,755 266,460,264

457,284,408 387,490,755

Construction-in-progress 34,873,586 27,855,215

492,157,994 415,345,970

Utility plant refers to Electric Plant in Service of PSALM, NPC and TransCo which include

transmission and distribution facilities, general plant and equipment, as well as substation and

communication equipment. This account also includes electric plants which are not in service

146

at NPC and TransCo.

Transportation equipment substantially consists of the trains of LRTA.

Plant equipment and transmission lines include the costs of transmission lines of MWSS.

Construction-in-progress includes the costs of Engineering Expansion Projects and operation

and maintenance/ system operation/ metering projects of TransCo amounting to P7,882.51

million and P9,462.09 million for CY 2012 and CY 2011, respectively. It also includes Line I

Rehabilitation and Modernization Project and initial costs of North Extension Project which

are both LRTA projects amounting to P14,725.59 million and P7,906.20 million for CY 2012

and CY 2011, respectively. The implementation of Angat Water Utilization and Aqueduct

Improvement Project (AWUAIP) Phase 2 of MWSS is also included in this account.


This account consists of land being leased to third parties by PNOC and PDMC. It also

includes the land and building in the Energy Center and eight (8) properties conveyed by the

National Development Company to PNOC as redemption of the preferred shares through a

two-tranche dacion en pago.

11. BOT ELECTRIC PLANTS UNDER CAPITAL LEASE/BOT LEASE

OBLIGATION

The BOT electric plants under capital lease represents the total computed capacity fees of the

remaining Build-Operate-Transfer (BOT) projects of PSALM for the duration of the

cooperation period, net of accumulated amortization; while the BOT lease obligation pertains

to the outstanding balances of the liability set up for the capital cost recovery fees of the BOT

power plants during the cooperation period indicated in the BOT contracts.

12. OTHER NON-CURRENT ASSETS

2012 2011

Idle assets 15,205,725 15,068,824

Less: Accumulated depreciation/allowance for

dormant accounts

519,000

519,000

14,686,725 14,549,824

Inactive receivable accounts 9,843,525 9,875,228

Deferred charges 12,775,793 15,305,985

Exploration and development costs 554,789 496,617

Restricted funds/assets 2,960,048 3,316,176

Deferred tax asset 1,217,904 1,244,130

Others 54,811,652 50,343,059

Less: Allowance for doubtful account (179,313) (70,816)

96,671,123 95,060,203

Others substantially consist of the long-term portion of TransCo’s Advances to PSALM

amounting to P41,001.26 million and P39,239.06 million for CY 2012 and CY 2011,

respectively. The account refers to the periodic payment of concession fees made by the

National Grid Corporation of the Philippines (NGCP) to PSALM in accordance with the

147

Concession Agreement, less the amount of remittances of reported net profits of TransCo per

quarter following the provision of EPIRA. Others also include LRTA accounts representing

funds intended for the Line 1 North and South Extension Projects.

13. TEMPORARY REGISTRY

As mandated under the EPIRA and pursuant to the instructions from the respective Board of

Directors and Managements of NPC, PSALM and TransCo, the actual separation of books of

TransCo from NPC and the assets-debt accounts transfer from NPC to PSALM was

implemented on October 1, 2008 based on the balances of interim financial report, except for

Small Power Utilities Group (SPUG) as of September 30, 2008. As a result of the asset-debt

transfer, certain accounts pertaining to PSALM/TransCo were retained at NPC and are

reported under the Temporary Registry accounts.

These Temporary Registry accounts consist of accounts (i) which shall be used by NPC in the

continuous operation and maintenance of the transferred assets to PSALM under the Operation

and Maintenance Agreement; and (ii) those that are for validation, adjustment and

reconciliation and, at a later date, for further transferring to PSALM, TransCo and/or NPC, as

the case may be.


2012 2011


Due to National Treasury 34,326,670 33,565,316

Due to operating units/other funds/subsidiaries

and affiliates 53,335,722

51,406,880

Due to GOCCs, NGAs and LGUs 53,080,078 54,133,236

Interest payable 9,109,761 9,041,862

Dividends payable - 509,803

Guarantee deposit/security deposit/advance

rental payable 1,832,139

1,767,666

Notes payable - 2,679,200


Trust liability 491,903 761,964

Others 6,596,733 5,223,830

186,578,390 194,397,094

Due to operating units/other funds/subsidiaries and affiliates refer mostly to the amount of

concession fees received by PSALM from NGCP. The amount shall be offset by: (i) any

remittance made by PSALM to TransCo; (ii) the receipt of dividends from TransCo; and (iii)

the reduction in value of TransCo assets, represented by the amount of depreciation.

15. LOANS AND ADVANCES PAYABLE

2012 2011

Loans payable 186,373,744 197,403,670


and affiliates 14,243

13,201

Deferred tax liability 3,332,576 3,332,641

Others 178,594,429 148,915,325

368,314,992 349,664,837

148

Loans payable represents domestic and foreign loans of the various GOCCs.

16. RETAINED EARNINGS

2012 2011


Net profit (loss) for the period 63,226,326 8,980,053

Dividends (3,646,080) (19,471,744)

Prior-year’s adjustments 20,409,812 22,391,727


Total deficit amounted to P55,457.03 million and P66,991.73 million for CY 2012 and CY

2011, respectively. Nine (9) of the GOCCs included in this summarization suffered deficits in

CY 2012 and CY 2011 with the following incurring the biggest deficits:

LRTA

PNR

NPC

TransCo

NEA

PPC

PAFC

PSTC

PMPC

17. GAINS AND PREMIUMS

2012 2011

Gain on foreign exchange 37,345,534 (82,800)

Gain on revaluation 1,184,537 -

Gain on sale/disposal of assets 316,529 848,741

38,846,600 765,941

Gain on foreign exchange substantially consists of PSALM’s account which pertains to foreign

exchange adjustments realized on repayment of loans and unrealized on restatement of

outstanding balances of foreign-currency denominated loans, trade and other payables, short-

term placements and cash in banks.

18. OTHER INCOME

2012 2011

Dividend income 6,098,116 11,350,989

Equipment rental 602 170

Liquidated damages 18 2

Interest income 1,883,519 2,085,189

Miscellaneous 74,390 113,218

Other Income 104,673 215,080

Rent income 317,360 299,243

Others (256,819) (240,730)

8,221,859 13,823,161

149

Dividend income substantially consists of TransCo’s remittance to PSALM of its net profit as

provided for under the EPIRA law.

19. PERSONAL SERVICES

2012 2011



Personnel benefits contributions 502,115 480,351

Others 347,254 482,311

5,361,097 5,716,515

20. MAINTENANCE AND OTHER OPERATING EXPENSES

2012 2011

Depreciation, amortization and bad debts 11,624,101 12,032,969

Light, power and water 994,021 1,038,549

Professional and other contracted services 2,828,119 2,375,331

Repairs and maintenance 1,903,079 1,493,338

Taxes, duties and premiums 677,444 676,324

Donations 139,516 127,077

Demolition and dredging 399,017 391,283

Supplies and materials 383,236 355,404

Awards, prizes and other claims 132,384 286,543

Rent/lease 66,119 75,897

Communication, training and travel 693,311 741,917

Confidential, extraordinary and miscellaneous 10,504 38,895

Printing and advertising 28,721 52,562

Representation 39,358 43,303

Subsidies 1,479,290 1,370,782

Survey and research expenses - 5,854

Cultural and athletic expenses 187 197

Membership dues and contributions 333 708

Other maintenance and operating expenses 290,320 459,994

21,689,060 21,566,927

21. OTHER EXPENSES

2012 2011

Loss on sale/disposal of assets 48,121 11,793

Loss on foreign exchange 49,706 4,455,397

Loss on revaluation - 407,595

Impairment loss - 94,753

Loss of assets 25,275 71,601

Others 922,836 155,453

1,045,938 5,196,592

Schedule 1

AcronymsParent/Controll

ing EntityPrincipal Office and Address Enabling Law/Creation

1 . Cebu Ports Authority CPA North Reclamation Area, Cebu City 600 RA 7621

2 . Light Rail Transit Authority LRTA Administration Bldg., LRTA Compound,

Aurora Blvd., Pasay City

EO 603 as amended by EO 830

of 1982 and EO 210 of 1987

3 . Local Water Utilities Administration LWUA Katipunan Road, Balara, Quezon City PD 198 of 1973 as amended by

PD 768 and PD 1479

4 .

Metropolitan Waterworks and Sewerage

System MWSS

MWSS Bldg., Katipunan Road, Old Balara,

Quezon City

RA 6234 of 1971 and RA 8041

of 1995

5 . National Electrification Administration NEA

NIA Road, Government Center, Diliman,

Quezon City PD 269 of 1973

6 . National Power Corporation NPC

Quezon Avenue corner BIR Road, Diliman,

1100 Quezon City

CA 120 of 1936 as amended by

RA 6395

7 . Philippine National Oil Company PNOC

PNOC Bldg. 6, Energy Center, Fort

Bonifacio, Taguig City PD 334 of 1973

8 . PNOC Alternative Fuels Corporation PAFC PNOC

2263 La Panday Center, Pasong Tamo Extn.,

Makati City Corporation Law

9 .

PNOC Development and Management

Corporation PDMC PNOC


Bonifacio, Taguig City Corporation Law

10 . PNOC Exploration Corporation PNOC-EC PNOC



11 . PNOC Malampaya Production Corporation PMPC PNOC



Agency Name


Cluster 3

Summary Data of Agencies Under Cluster 3

150

AcronymsParent/Controll

ing EntityPrincipal Office and Address Enabling Law/CreationAgency Name

12 . PNOC Renewables Corporation PNOC-RC PNOC



13 . PNOC Shipping and Transport Corporation PSTC PNOC

S & L Bldg., 1500 Roxas Blvd., Ermita,

Manila Corporation Law

14 . Philippine National Railways PNR PNR Executive Bldg., Tutuban, Manila RA 4156 and 6366; PD 741

15 . Philippine Ports Authority PPA Bonifacio Drive, South Harbor, Port Area,

Manila

PD 505 of 1974 as revised by

PD 857 of 1975

16 . Philippine Postal Corporation PPC Liwasang Bonifacio, 1000 Manila RA 7354 of 1992

17 .

Power Sector Assets and Liabilities

Management Corporation PSALM

7/F Bankmer Bldg., 6756 Ayala Avenue,

Makati City RA 9136

18 . National Transmission Corporation TransCo PSALM

Quezon Avenue cor. BIR Road, Diliman,

1100 Quezon City RA 9136

151

Financial

Statements

Of

GOCCs

Cluster 4

Cluster 4 - Industrial and Area Development



(In thousand pesos)

Notes 2012 2011

Assets

Current assets 75,222,225 63,235,089


Short term investments 68,670 836,325

Receivables (net) 3 27,157,162 19,018,208

Inventories, net 4 4,265,204 4,783,012


Others 6 1,797,997 1,345,858

Non-Current Assets 241,218,252 246,439,478

Long-term receivables, net 7 18,678,314 22,778,740


Property, plant and equipment - net 9 140,425,822 149,381,106


Others 11 17,091,493 12,197,799

Total Assets 316,440,477 309,674,567



Trade & non-trade payables 12 35,826,988 32,289,575


Others 1,097,021 1,119,572

Non-Current Liabilities 82,681,650 87,965,383

Notes payable - -

Mortgage payable - -

Bonds payable 3,500,000 3,500,000


Provision for estimated liabilities 3,876 3,342


Others 3,232,291 2,964,520

Total liabilities 126,072,116 127,587,837

Equity 190,368,361 182,086,730

Total liabilities and equity 316,440,477 309,674,567


December 31, 2012

TOTAL

155

Notes

Assets

Current assets

Cash and cash equivalents 2


Receivables (net) 3

Inventories, net 4

Prepayments and deferred charges 5

Others 6

Non-Current Assets

Long-term receivables, net 7

Long-term investments 8

Property, plant and equipment - net 9

Investment property 10

Others 11

Total Assets


Current liabilities

Trade & non-trade payables 12


Others


Notes payable

Mortgage payable

Bonds payable

Loans and advances payable 13


Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

374,348 308,077 131,104 250,258 16,785,126 12,769,633 19,839 9,721

230,992 196,112 77,760 183,397 9,197,589 7,172,564 7,819 2,839

- - - - 10,627 195,929 - -

88,415 88,585 15,761 14,059 4,927,355 3,466,855 9,620 4,062

3,778 4,077 42 1,168 1,284,300 998,998 1,347 1,767

51,163 19,303 37,541 51,634 481,863 466,102 1,053 1,053

- - - - 883,392 469,185 - -

1,031,794 999,576 565,927 365,540 113,688,077 116,955,260 38,174 58,259

- - - - 197,919 3,012,226 - -

- - - - 41,674,104 42,353,346 - -

1,024,616 990,071 565,927 365,540 70,288,924 70,057,935 30,327 50,412

- - - - - - -

7,178 9,505 - - 1,527,130 1,531,753 7,847 7,847

1,406,142 1,307,653 697,031 615,798 130,473,203 129,724,893 58,013 67,980

374,979 299,113 23,022 23,308 9,173,947 8,144,215 10,480 481,505

372,620 296,898 23,022 23,308 8,295,816 7,051,069 10,480 481,505

- - - - 878,131 1,093,146 - -

2,359 2,215 - - - - - -

145,666 225,088 - - 32,097,276 37,914,347 3,117 3,117

- - - - - - - -

- - - - - - - -

- - - - - - - -

145,666 225,088 - - 25,602,393 31,184,772 - -

- - - - - - - -

- - - - 6,494,883 6,729,575 2,752 2,752

- - - - - - 365 365

520,645 524,201 23,022 23,308 41,271,223 46,058,562 13,597 484,622

885,497 783,452 674,009 592,490 89,201,980 83,666,331 44,416 (416,642)

1,406,142 1,307,653 697,031 615,798 130,473,203 129,724,893 58,013 67,980

APECO BTPIBCDAAFAB

156

Notes

Assets

Current assets



Receivables (net) 3

Inventories, net 4


Others 6

Non-Current Assets





Others 11

Total Assets


Current liabilities



Others


Notes payable

Mortgage payable

Bonds payable



Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

283,528 250,496 1,195,191 1,150,781 316,019 191,305 85,758 46,323

256,939 237,733 981,989 928,728 160,126 51,348 68,728 30,427

- - - - - - - -

23,344 10,068 187,413 192,134 140,916 126,456 8,825 7,591

2,961 2,998 5,482 7,125 7,358 7,606

3,245 2,695 22,828 26,921 5,458 3,684 847 699

- - - - 4,037 2,692 - -

198,548 218,384 4,880,685 4,982,115 1,278,953 1,424,961 81,211 80,965

1,311,287 1,363,483 - 22,369 21,354

73,325 101,483 88,043 129,092 884 884 132 132

5,164 5,836 3,186,088 3,199,355 1,277,388 1,423,396 47,427 48,196

- - - - - - - -

120,059 111,065 295,267 290,185 681 681 11,283 11,283

482,076 468,880 6,075,876 6,132,896 1,594,972 1,616,266 166,969 127,288

145,519 134,765 596,828 707,841 152,420 115,961 32,141 30,200

145,519 134,765 513,767 627,322 152,420 115,961 32,141 30,200

- - 65,456 65,456 - - - -

- - 17,605 15,063 - - - -

5,965 6,572 1,348,841 1,325,597 1,560,452 1,605,578 4,883 4,845

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - 1,320,154 1,325,597 1,558,025 1,604,434 3,737 3,737

- - - - - - -

5,965 6,572 - - 2,427 1,144 1,146 1,108

- - 28,687 - - - -

151,484 141,337 1,945,669 2,033,438 1,712,872 1,721,539 37,024 35,045

330,592 327,543 4,130,207 4,099,458 (117,900) (105,273) 129,945 92,243

482,076 468,880 6,075,876 6,132,896 1,594,972 1,616,266 166,969 127,288

BMHI JHMCCIACCDC

157

Notes

Assets

Current assets



Receivables (net) 3

Inventories, net 4


Others 6

Non-Current Assets





Others 11

Total Assets


Current liabilities



Others


Notes payable

Mortgage payable

Bonds payable



Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

105,925 53,977 719,330 503,502 41,589 41,437 14,792,450 11,061,170

74,967 29,256 263,734 177,313 41,589 41,437 4,140,864 4,667,690

- - - - - - - -

28,527 22,387 339,996 301,570 - - 10,648,459 6,393,122

97 260 - - - -

2,431 2,334 115,503 24,359 - - - -

- - - - - - 3,127 358

88,038 592,973 3,983,715 3,792,926 - 12 8,400,958 14,965,390

569 181 2,276 2,269 - - - -

15,015 15,015 687,249 538,513 - - - -

53,906 559,861 3,290,959 3,245,582 - 12 2,639,789 9,191,915

- - - - - - - -

18,548 17,916 3,231 6,562 - - 5,761,169 5,773,475

193,963 646,950 4,703,045 4,296,428 41,589 41,449 23,193,408 26,026,560

107,142 561,461 149,859 63,311 6,334 6,334 6,322,484 3,381,279

105,575 560,385 147,927 55,823 6,269 6,269 6,314,974 3,377,286

- - - 7,105 - - - -

1,567 1,076 1,932 383 65 65 7,510 3,993

18,437 18,437 2,762 2,575 - - 63,755 60,358

- - - - - - - -

- - - - - - - -

- - - - - - - -

18,437 18,437 - - - - 52,030 44,801

- - - - - - - -

- - 2,762 2,575 - - - -

- - - - - - 11,725 15,557

125,579 579,898 152,621 65,886 6,334 6,334 6,386,239 3,441,637

68,384 67,052 4,550,424 4,230,542 35,255 35,115 16,807,169 22,584,923

193,963 646,950 4,703,045 4,296,428 41,589 41,449 23,193,408 26,026,560

CEZA NLPCSI CAAPPPMC

158

Notes

Assets

Current assets



Receivables (net) 3

Inventories, net 4


Others 6

Non-Current Assets





Others 11

Total Assets


Current liabilities



Others


Notes payable

Mortgage payable

Bonds payable



Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

2,011,268 1,792,970 12,410,347 12,461,616 7,602 5,725 2,429,191 2,597,491

1,774,372 1,609,011 9,424,631 10,034,502 3,242 1,052 796,483 626,740

- - - - - - 58,043 640,396

129,572 113,094 2,715,923 2,101,275 1,055 411 1,498,127 1,257,989

31,829 21,782 23,414 21,109 3,256 4,213 - -

75,495 49,083 246,379 304,730 49 49 2,533 2,529

- - - - - 74,005 69,837

4,517,655 4,713,371 19,833,131 15,555,687 28,695 29,361 9,864,695 7,444,480

- 138,006 496,822 - - 4,890,163 4,891,813

3,053 3,053 12,505 12,505 - - 1,564,549 1,002,409

4,511,029 4,706,921 14,688,540 14,847,572 28,574 29,240 20,810 42,908

- - 52,165 56,774 - - 2,879,727 65,477

3,573 3,397 4,941,915 142,014 121 121 509,446 1,441,873

6,528,923 6,506,341 32,243,478 28,017,303 36,297 35,086 12,293,886 10,041,971

290,552 310,324 4,936,840 4,909,008 518 616 4,451,229 4,589,990

247,887 279,369 3,623,843 4,005,037 477 391 599,926 858,532

- - 917,549 505,745 - - 3,786,272 3,633,703

42,665 30,955 395,448 398,226 41 225 65,031 97,755

- - 8,478,073 5,640,030 14 14 3,959,014 4,002,850

- - - - - - - -

- - - - - - - -

- - - - - - 3,500,000 3,500,000

- - 8,402,834 5,521,062 - - 308,099 308,099

- - - - - - - -

- - 74,804 118,533 - - - -

- - 435 435 14 14 150,915 194,751

290,552 310,324 13,414,913 10,549,038 532 630 8,410,243 8,592,840

6,238,371 6,196,017 18,828,565 17,468,265 35,765 34,456 3,883,643 1,449,131

6,528,923 6,506,341 32,243,478 28,017,303 36,297 35,086 12,293,886 10,041,971

MIAA NDCMCIAA MRHI

159

Notes

Assets

Current assets



Receivables (net) 3

Inventories, net 4


Others 6

Non-Current Assets





Others 11

Total Assets


Current liabilities



Others


Notes payable

Mortgage payable

Bonds payable



Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

32,274 23,935 10,267 10,420 135,691 144,790 113 112

32,035 23,773 7,974 8,238 2,526 1,099 113 112

- - - - - - - -

239 162 2,293 2,182 133,165 143,691 - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

35,289 35,296 135 135 9,086 9,086 16,920 16,920

- - 135 135 - - - -

41 54 - - - - - -

40 22 - - - - 16,920 16,920

35,208 35,220 - - 9,086 9,086 - -

- - - - - - - -

67,563 59,231 10,402 10,555 144,777 153,876 17,033 17,032

22,401 13,074 11,229 9,813 2,496 764 74,061 74,029

22,401 13,074 11,229 9,813 2,496 764 74,061 74,029

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

22,401 13,074 11,229 9,813 2,496 764 74,061 74,029

45,162 46,157 (827) 742 142,281 153,112 (57,028) (56,997)

67,563 59,231 10,402 10,555 144,777 153,876 17,033 17,032

IIGSIGYREIFCIEIBLCI

160

Notes

Assets

Current assets



Receivables (net) 3

Inventories, net 4


Others 6

Non-Current Assets





Others 11

Total Assets


Current liabilities



Others


Notes payable

Mortgage payable

Bonds payable



Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

12,269 4,786 142,247 213,806 53,412 52,783 - 1,073

7,364 3,947 138,977 209,765 53,399 52,524 - 1,073

- - - - - - - -

4,905 839 3,048 3,819 13 259 - -

- - 222 222 - - - -

- - - - - - - -

- - - - - - - -

6,252 6,252 176,531 199,559 6,575 6,575 - -

- - 17,033 17,032 6,575 6,575 - -

- - 1 1 - - - -

- - 158,612 181,655 - - - -

6,252 6252 - - - - -

- - 885 871 - - - - -

18,521 11,038 318,778 413,365 59,987 59,358 - 1,073

1,770 542 3,052 2,414 51 40 - 34

1,723 507 3,052 2,414 51 40 - 34

- - - - - - - -

47 35 - - - - - -

- - - - 2,303 2,303 - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - 1,813 1,813 - -

- - - - - - - -

- - - - - - - -

- - - - 490 490 - -

1,770 542 3,052 2,414 2,354 2,343 - 34

16,751 10,496 315,726 410,951 57,633 57,015 - 1,039

18,521 11,038 318,778 413,365 59,987 59,358 - 1,073

PNLNPICKRC MGC

161

Notes

Assets

Current assets



Receivables (net) 3

Inventories, net 4


Others 6

Non-Current Assets





Others 11

Total Assets


Current liabilities



Others


Notes payable

Mortgage payable

Bonds payable



Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

1,502 1,640 98,456 97,210 2,666,737 2,343,506 898,322 934,437

1,496 1,639 25,586 26,987 1,820,590 1,386,660 27,726 112,314

- - - - - - - -

6 1 8,029 4,670 746,476 861,498 847,976 791,042

- - 64,841 65,553 14,938 13,365 6,505 9,320

- - - - 84,702 81,952 16,115 21,761

- - - - 31 31 - -

2,252 2,252 33,646 24,920 2,472,343 2,419,365 8,859,332 8,793,675

- - 191 112 - - - -

- - 4,959 4,959 - - 261,969.00 261,957.00

- - 14,526 10,620 2,437,204 2,385,618 557,770 565,965

2252 2252 - - - - 7,848,246.00 7,848,246.00

- - 13,970 9,229 35,139 33,747 191,347 117,507

3,754 3,892 132,102 122,130 5,139,080 4,762,871 9,757,654 9,728,112

131 123 18,512 21,645 1,238,419 1,268,531 8,581,897 8,443,068

129 123 13,658 16,791 913,949 942,166 8,581,897 8,443,068

- - - - 11,080 12,476 - -

2 - 4,854 4,854 313,390 313,889 - -

- - 9,488 8,874 314,508 315,689 2,700,834 2,725,160

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - 5,612 5,532 149,577 180,483 2,686,988 2,711,314

- - 3,876 3,342 - - - -

- - - - 164,931 135,206 13,846 13,846

- - - - - - - -

131 123 28,000 30,519 1,552,927 1,584,220 11,282,731 11,168,228

3623 3,769 104,102 91,611 3,586,153 3,178,651 (1,525,077) (1,440,116)

3,754 3,892 132,102 122,130 5,139,080 4,762,871 9,757,654 9,728,112

PRC PNCCPEZAPADC

162

Notes

Assets

Current assets



Receivables (net) 3

Inventories, net 4


Others 6

Non-Current Assets





Others 11

Total Assets


Current liabilities



Others


Notes payable

Mortgage payable

Bonds payable



Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

602,582 270,861 1,261 1,136 221,210 117,650 9,265 11,895

572,558 218,090 408 448 157,715 59,706 1,384 1,282

- - - - - - - -

28,614 28,286 853 688 54,048 48,103 1,128 3,637

- - 2,680 2,493 3,696 4,023

1,410 24,485 - - 6,767 7,348 3,057 2,953

- - - - - - - -

64 306,747 11,379 11,379 13,960 17,121 1,993 1,993

- - - - - - - -

- - - - 930 930 - -

64 306,747 11,379 11,379 12,631 14,581 1,313 1,313

- - - - - - - -

- - - - 399 1,610 680 680

602,646 577,608 12,640 12,515 235,170 134,771 11,258 13,888

97,955 97,845 33,606 33,731 18,926 16,916 3,773 2,920

97,955 97,845 33,606 33,731 18,926 16,916 3,637 2,792

- - - - - - - -

- - - - - - 136 128

0 0 - - 172,108 83,918 60,457 61,259

- - - - - - -

- - - - - - -

- - - - - - -

- - - - 172,108 83,918 60,457 61,259

- - - - - - - -

- - - - - - - -

- - - - - - - -

97,955 97,845 33,606 33,731 191,034 100,834 64,230 64,179

504,691 479,763 (20,966) (21,216) 44,136 33,937 (52,972) (50,291)

602,646 577,608 12,640 12,515 235,170 134,771 11,258 13,888

CDCP-FC DISCCBGSIASDI TCPC

163

Notes

Assets

Current assets



Receivables (net) 3

Inventories, net 4


Others 6

Non-Current Assets





Others 11

Total Assets


Current liabilities



Others


Notes payable

Mortgage payable

Bonds payable



Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

9,798,581 7,588,445 204,696 178,969 2,010,045 2,395,020 38,308 53,057

3,856,836 2,871,025 197,009 171,095 669,427 547,801 1,294 8,031

- - - - - - -

3,290,838 1,263,823 7,687 7,874 471,736 1,001,865 35,429 43,073

2,639,285 3,438,739 - - 43,721.00 42,676.00 771 1,139

10,070 13,320 - - 692 636 639 639

1,552 1,538 - - 824,469 802,042 175 175

23,425,090 24,310,373 41,944 43,300 4,054,328 3,460,127 93,015 110,051

11,451,266 12,592,286 - -

539,857 544,083 34,131 34,340 21,670 21,670 11,212 14,843

116,722 118,949 6,193 7,795 3,176,272 3,289,199 81,535 87,713

8,480,052 8,480,052 - - 107,489.00 107,489.00 -

2,837,193 2,575,003 1,620 1,165 748,897 41,769 268 7,495

33,223,671 31,898,818 246,640 222,269 6,064,373 5,855,147 131,323 163,108

3,363,921 2,417,050 10,058 10,412 1,034,155 929,337 18,597 21,395

3,127,521 2,174,568 2,089 2,593 904,278 799,460 18,597 20,986

- - - - 129,877 129,877 - -

236,400 242,482 7,969 7,819 - - - 409

15,370,069 16,060,963 232,842 208,280 4,746,201 4,695,320 627 137

- - - - - - - -

- - - - - - - -

- - - - - - - -

1,577,802 1,573,154 - - 3,441,754 3,571,632 500 -

- - - - - - -

10,985,449 11,943,181 - - 1,304,447 1,123,688 127 137

2,806,818 2,544,628 232,842 208,280 - - - -

18,733,990 18,478,013 242,900 218,692 5,780,356 5,624,657 19,224 21,532

14,489,681 13,420,805 3,740 3,577 284,017 230,490 112,099 141,576

33,223,671 31,898,818 246,640 222,269 6,064,373 5,855,147 131,323 163,108

PEATCPRA (PEA) SPDAPIA

164

Notes

Assets

Current assets



Receivables (net) 3

Inventories, net 4


Others 6

Non-Current Assets





Others 11

Total Assets


Current liabilities



Others


Notes payable

Mortgage payable

Bonds payable



Deferred credits

Others

Total liabilities

Equity



2012 2011 2012 2011 2012 2011 2012 2011

1,066,857 955,635 5,442,513 4,276,377 11,665 9,498 55,337 53,566

730,872 595,219 4,725,949 3,633,891 8,682 7,052 50,433 48,141

- - - - - - - -

215,096 229,607 536,323 480,810 2,534 2,068 3,418 553

111,482 119,754 12,778 11,747 421 360 - 2,518

9,407 11,055 160,254 149,929 28 18 1,486 2,354

- - 7,209 - - - - -

26,953,932 28,023,499 5,836,233 5,783,093 92,911 75,718 594,786 602,782

640,525 374,452 - - - - - -

358,481 361,680 250,036 70,036 - - - -

25,902,623 27,234,070 5,584,898 5,705,353 92,866 75,673 594,786 602,782

- - - - - - - -

52,303 53,297 1,299 7,704 45 45 - -

28,020,789 28,979,134 11,278,746 10,059,470 104,576 85,216 650,123 656,348

1,344,626 1,815,615 724,643 667,866 4,267 3,061 7,626 12,998

666,534 1,087,015 724,643 630,667 4,267 3,061 7,626 12,998

678,092 728,600 - 37,199 - - - -

- - - - - - - -

10,923,197 12,442,719 460,722 551,314 - - 39 39

- - - - - - - -

- - - - - - - -

- - - - - - - -

8,338,726 9,853,030 405,145 483,588 - - - -

- - - - - - -

2,584,471 2,589,689 55,577 67,726 - - 39 39

- - - - - - - -

12,267,823 14,258,334 1,185,365 1,219,180 4,267 3,061 7,665 13,037

15,752,966 14,720,800 10,093,381 8,840,290 100,309 82,155 642,458 643,311

28,020,789 28,979,134 11,278,746 10,059,470 104,576 85,216 650,123 656,348

ZCSEZASBMA TIEZA CFI

165

Cluster 4 - Idustrial and Area Development




(in thousand pesos)

Notes 2012 2011

Income 44,332,204 36,278,102


Gains and premiums 15 6,767,155 273,078

16 3,935,925 5,216,923

Less: Share of national government 933,829 936,843


Expenses 26,189,947 28,852,442

Business expenses 147,540 197,208




Others 19 569,589 2,687,873

Net income (loss) before subsidy 17,208,428 6,488,817

Subsidy income 361,543 358,721


Income Tax Expense 2,293,890 1,914,360



Total

Others

166





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 2012 2011 2012 2011

857,558 786,615 2,181 205 8,344,087 4,716,772 8,229 4,903

839,454 775,953 2,136 198 1,712,827 1,475,379 8,229 4,903

- - - - 4,755,428 - - -

18,104 10,662 45 7 1,875,832 3,241,393 - -

857,558 786,615 2,181 205 8,344,087 4,716,772 8,229 4,903

- - - - - - - -

857,558 786,615 2,181 205 8,344,087 4,716,772 8,229 4,903

832,319 855,301 60,597 48,587 3,277,657 5,318,097 52,726 59,828

- - - - - - - -

57,398 60,164 17,136 15,262 233,611 242,225 8,865 8,512

766,871 753,183 43,456 33,320 2,455,834 2,889,853 43,854 51,316

8,048 20,861 5 5 588,209 631,996 - -

2 21,093 - - 3 1,554,023 7 -

25,239 (68,686) (58,416) (48,382) 5,066,430 (601,325) (44,497) (54,925)

- - 55,000 67,500 137,556 137,556 - -

25,239 (68,686) (3,416) 19,118 5,203,986 (463,769) (44,497) (54,925)

- - - - (46,436) (53,803) - -

25,239 (68,686) (3,416) 19,118 5,157,550 (517,572) (44,497) (54,925)

AFAB APECO BCDA BTPI

167





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 2012 2011 2012 2011

60,669 52,363 1,181,930 1,143,243 516,138 355,190 6,090 4,630

46,114 37,958 1,119,044 984,361 499,581 343,787 5,877 4,377

- - - 7,551 - - - 107

14,555 14,405 62,886 151,331 16,557 11,403 213 146

60,669 52,363 1,181,930 1,143,243 516,138 355,190 6,090 4,630

- - - - - - - -

60,669 52,363 1,181,930 1,143,243 516,138 355,190 6,090 4,630

51,520 44,820 972,990 876,916 523,480 473,397 64,116 53,614

37,120 31,720 - - - - - -

10,039 8,411 608,070 516,145 200,844 198,830 22,488 19,963

4,361 4,689 361,953 360,738 300,487 251,835 41,242 33,649

- - 45 33 22,149 22,732 3 2

- - 2,922 - - - 383 -

9,149 7,543 208,940 266,327 (7,342) (118,207) (58,026) (48,984)

- - - - - - 65,184 45,565

9,149 7,543 208,940 266,327 (7,342) (118,207) 7,158 (3,419)

(181) (129) (21,657) (23,054) (621) - - -

8,968 7,414 187,283 243,273 (7,963) (118,207) 7,158 (3,419)

BMHI CDC CIAC JHMC

168





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 2012 2011 2012 2011

69,574 57,782 335,699 190,798 151 168 4,686,177 4,105,517

69,190 57,345 310,948 170,472 - - 4,599,955 3,968,758

- - - - - - - 44,881

384 437 24,751 20,326 151 168 86,222 91,878

69,574 57,782 335,699 190,798 151 168 4,686,177 4,105,517

- - - - - - - -

69,574 57,782 335,699 190,798 151 168 4,686,177 4,105,517

71,705 60,429 227,264 170,992 11 278 2,760,470 2,703,006

- - - - - - - -

22,778 21,964 22,806 19,965 - 240 1,352,604 1,423,206

42,574 37,829 196,838 147,985 - 38 1,281,230 1,278,766

- - 160 2,238 - - 1,148 1,034

6,353 636 7,460 804 11 - 125,488 -

(2,131) (2,647) 108,435 19,806 140 (110) 1,925,707 1,402,511

- - 1,811 - - - - -

(2,131) (2,647) 110,246 19,806 140 (110) 1,925,707 1,402,511

(1,386) (1,118) (37,650) (5,686) - - - -

(3,517) (3,765) 72,596 14,120 140 (110) 1,925,707 1,402,511

PPMC CEZA NLPCSI CAAP

169





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 2012 2011 2012 2011

1,482,340 1,349,048 8,003,938 7,866,155 21,228 20,216 826,425 1,034,989

1,444,703 1,308,738 8,276,461 8,648,656 21,228 20,216 763,918 856,681

630 1,015 471,921 1,303 - - 22,899 178,012

37,007 39,295 189,385 153,039 - - 39,608 296

1,482,340 1,349,048 8,937,767 8,802,998 21,228 20,216 826,425 1,034,989

- - (933,829) (936,843) - - - -

1,482,340 1,349,048 8,003,938 7,866,155 21,228 20,216 826,425 1,034,989

1,335,104 1,061,724 4,537,815 5,081,528 19,919 18,033 489,568 587,353

- - - - 8,144 7,004 - -

240,069 216,676 695,672 831,280 6,867 6,234 21,181 14,814

1,092,934 843,911 3,416,862 3,672,864 4,908 4,777 79,738 86,474

64 190 425,281 316,154 - 18 303,587 369,310

2,037 947 - 261,230 - - 85,062 116,755

147,236 287,324 3,466,123 2,784,627 1,309 2,183 336,857 447,636

- - - - - - - -

147,236 287,324 3,466,123 2,784,627 1,309 2,183 336,857 447,636

(55,950) (86,197) (825,564) (900,733) - - (6,307) (6,617)

91,286 201,127 2,640,559 1,883,894 1,309 2,183 330,550 441,019

MCIAA MIAA MRHI NDC

170





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 # 2012 2011 2012 2011

17,986 18,043 865 527 4,563 8,322 1 1

17,264 17,718 - - - - - -

- - - - - - - -

722 325 865 527 4,563 8,322 1 1

17,986 18,043 865 527 4,563 8,322 1 1

- - - - - - -

17,986 18,043 865 527 4,563 8,322 1 1

6,016 4,573 2,418 2,433 13,102 8,876 32 32

- - - - - - - -

806 710 408 385 54 47 - -

5,194 3,863 771 972 13,048 8,829 32 32

16 - 1,239 1,076 - - - -

- - - - - - - -

11,970 13,470 (1,553) (1,906) (8,539) (554) (31) (31)

- - - - - - - -

11,970 13,470 (1,553) (1,906) (8,539) (554) (31) (31)

(3,380) (3,946) (13) (7) (91) (166) - -

8,590 9,524 (1,566) (1,913) (8,630) (720) (31) (31)

BLCI FCIEI GYREI IIGSI

171





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 2012 2011 2012 2011

6,073 3,712 5,017 6,889 1,610 1,330 6 526

- - - - - - - -

- - - - - - - -

6,073 3,712 5,017 6,889 1,610 1,330 6 526

6,073 3,712 5,017 6,889 1,610 1,330 6 526

- - - - - - - -

6,073 3,712 5,017 6,889 1,610 1,330 6 526

2,063 1,305 7,148 6,313 980 946 83 169

- - - - - - - -

54 47 356 345 558 521 - -

2,006 1,258 6,607 5,967 382 425 83 169

3 - 154 1 - - - -

- - 31 - 40 - - -

4,010 2,407 (2,131) 576 630 384 (77) 357

- -

- - - - - - - -

4,010 2,407 (2,131) 576 630 384 (77) 357

(1,169) (696) - - - - - -

2,841 1,711 (2,131) 576 630 384 (77) 357

KRC MGC NPIC PNL

172





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 2012 2011 2012 2011

1,831 13,846 46,465 37,325 7,581,352 7,211,496 139,612 196,634

- - 13,667 3,648 6,672,623 6,320,959 116,170 160,427

- - - - 9,846 6,502 4,472 26,562

1,831 13,846 32,798 33,677 898,883 884,035 18,970 9,645

1,831 13,846 46,465 37,325 7,581,352 7,211,496 139,612 196,634

- - - - - - - -

1,831 13,846 46,465 37,325 7,581,352 7,211,496 139,612 196,634

396 266 39,392 30,558 6,504,596 6,177,810 350,857 657,936

- - 16,563 1,094 - - - 46,833

54 47 11,514 20,090 511,056 561,047 48,101 88,072

341 219 11,315 9,374 5,986,990 5,608,738 44,715 262,155

1 - - - 6,527 7,322 258,037 260,140

- - - - 23 703 4 736

1,435 13,580 7,073 6,767 1,076,756 1,033,686 (211,245) (461,302)

- - - - - - - -

1,435 13,580 7,073 6,767 1,076,756 1,033,686 (211,245) (461,302)

(418) (4,045) (591) (2,368) (336,516) (293,571) - -

1,017 9,535 6,482 4,399 740,240 740,115 (211,245) (461,302)

PRC PADC PEZA PNCC

173





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 2012 2011 2012 2011

91,952 5,672 167 167 94,110 111,411 506 8,175

- - - - 93,104 111,054 396 8,162

74,892 - - - - - 104 1

17,060 5,672 167 167 1,006 357 6 12

91,952 5,672 167 167 94,110 111,411 506 8,175

- - - - - - - -

91,952 5,672 167 167 94,110 111,411 506 8,175

2,802 9,053 1 42 83,911 120,655 2,795 18,492

- - - - 71,900 88,997 326 8,475

1,311 3,654 - 13 8,437 30,717 1,839 7,762

1,289 5,189 1 29 3,436 941 628 2,238

202 210 - - 138 - - 16

- - - - - - 2 1

89,150 (3,381) 166 125 10,199 (9,244) (2,289) (10,317)

- - - - - - - -

89,150 (3,381) 166 125 10,199 (9,244) (2,289) (10,317)

(25,039) (1,134) - - - - - -

64,111 (4,515) 166 125 10,199 (9,244) (2,289) (10,317)

ASDI CDCP - FC DISCCBGSI TCPC

174





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 2012 2011 2012 2011

3,236,438 1,970,861 163 178 440,140 470,060 4,888 6,515

3,161,883 1,886,908 - - 410,344 453,903 377 179

- - - - - - 1,878 4,301

74,555 83,953 163 178 29,796 16,157 2,633 2,035

3,236,438 1,970,861 163 178 440,140 470,060 4,888 6,515

- - - - - - - -

3,236,438 1,970,861 163 178 440,140 470,060 4,888 6,515

177,411 242,535 - - 329,437 331,437 47,300 50,508

- - - - - - - -

88,271 98,353 - - 47,203 46,851 25,391 22,249

85,248 139,036 - - 177,148 173,033 21,836 28,178

3,892 5,146 - - 93,040 94,075 73 81

- - - - 12,046 17,478 - -

3,059,027 1,728,326 163 178 110,703 138,623 (42,412) (43,993)

- - - - - - 28,392 59,000

3,059,027 1,728,326 163 178 110,703 138,623 (14,020) 15,007

(895,563) (493,312) - - (24,045) (32,744) - -

2,163,464 1,235,014 163 178 86,658 105,879 (14,020) 15,007

PRA PEATC PIA SPDA

175





(in thousand pesos)

Income


Gains and premiums



Expenses

Business expenses

Personal services


Financial expenses

Others


Subsidy income


Income Tax Expense


Others

2012 2011 2012 2011 2012 2011 2012 2011

3,012,150 1,457,397 2,268,103 2,086,722 24,935 25,445 17,028 11,411

1,365,608 1,217,355 2,016,550 1,913,408 24,445 25,189 17,028 11,409

1,346,264 2,841 78,821 - - - - 2

300,278 237,201 172,732 173,314 490 256 - -

3,012,150 1,457,397 2,268,103 2,086,722 24,935 25,445 17,028 11,411

- - - - - - - -

3,012,150 1,457,397 2,268,103 2,086,722 24,935 25,445 17,028 11,411

2,201,222 2,571,048 1,031,922 1,105,296 31,281 29,273 77,521 68,983

- - 13,487 13,085 - - - -

641,432 667,580 336,353 346,081 4,707 4,300 34,163 32,887

1,007,393 961,625 664,944 699,911 26,178 24,944 43,358 36,096

226,068 255,742 16,148 18,882 - - - -

326,329 686,101 990 27,337 396 29 - -

810,928 (1,113,651) 1,236,181 981,426 (6,346) (3,828) (60,493) (57,572)

- - - - 24,500 - 49,100 49,100

810,928 (1,113,651) 1,236,181 981,426 18,154 (3,828) (11,393) (8,472)

(11,313) (5,034) - - - - - -

799,615 (1,118,685) 1,236,181 981,426 18,154 (3,828) (11,393) (8,472)

SBMA TIEZA CFI ZCSEZA

176





(in thousand pesos)

Note 2012 2011

Government equity




Share capital


Additions/deductions (6,038,239) 12,873,237


Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital


Additions/deductions - (279,843)














Retained earnings (deficit) 13




Total

177





(in thousand pesos)

Note 2012 2011

Total

Treasury shares




Restricted capital

Balance, beginning of period 307 307


Balance, end of period 307 307


Balance, beginning of period 1,794,576 273,439



TOTAL EQUITY 190,368,361 182,086,730


178





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

901,676 792,197 573,827 442,617 77,269,614 74,928,711 - -

50,247 109,479 85,367 131,210 558,099 2,340,903 - -

951,923 901,676 659,194 573,827 77,827,713 77,269,614 - -

- - - - - - 100,000 100,000

- - - - - - - -

- - - - - - 100,000 100,000

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - 1,138 1,138 - -

- - - - - - - -

- - - - 1,138 1,138 - -

AFAB BTPIAPECO BCDA

179





(in thousand pesos)

Government equityEquity in joint venture
















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011

AFAB BTPIAPECO BCDA

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

(118,224) (38,949) 18,663 - 6,395,579 6,913,151 (516,642) (461,845)

51,798 (79,275) (3,848) 18,663 4,977,550 (517,572) (56,052) (54,797)

(66,426) (118,224) 14,815 18,663 11,373,129 6,395,579 (572,694) (516,642)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - 517,110 -

- - - - - - 517,110 -

885,497 783,452 674,009 592,490 89,201,980 83,666,331 44,416 (416,642)

180





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

- - - - - - - -

- - - - - - - -

- - - - - - - -

280,000 280,000 2,813,507 2,813,507 1,250 1,250 120,000 120,000

- - - - - - - -

280,000 280,000 2,813,507 2,813,507 1,250 1,250 120,000 120,000

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

BMHI CIACCDC JHMC

181





(in thousand pesos)

















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011

BMHI CIACCDC JHMC

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

47,543 40,129 596,713 579,418 (938,771) (831,943) (281,822) (287,367)

3,049 7,414 15,462 17,295 (12,627) (106,828) 32,640 5,545

50,592 47,543 612,175 596,713 (951,398) (938,771) (249,182) (281,822)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - 689,238 6,622 832,248 - 254,065 252,767

- - 15,287 682,616 - 832,248 5,062 1,298

- - 704,525 689,238 832,248 832,248 259,127 254,065

330,592 327,543 4,130,207 4,099,458 (117,900) (105,273) 129,945 92,243

182





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

- - 33,456 33,456 - - - -

- - - - - - -

- - 33,456 33,456 - - - -

80,000 80,000 3,908,708 3,529,627 40,000 40,000 20,081,596 13,064,126

- - 293,948 379,081 - - (6,331,505) 7,017,470

80,000 80,000 4,202,656 3,908,708 40,000 40,000 13,750,091 20,081,596

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

692 692 - - - - - -

- - - - - - - -

692 692 - - - - - -


183





(in thousand pesos)

















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011


15,000 15,000 - - - - - -

- - - - - - - -

15,000 15,000 - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

(47,665) (43,204) 288,378 320,785 (4,885) (4,770) 2,503,327 2,975,280

(1,624) (4,461) 25,934 (32,407) 140 (115) 553,751 (471,953)

(49,289) (47,665) 314,312 288,378 (4,745) (4,885) 3,057,078 2,503,327

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

19,025 14,050 - - - - - -

2,956 4,975 - - - - - -

21,981 19,025 - - - - - -

68,384 67,052 4,550,424 4,230,542 35,255 35,115 16,807,169 22,584,923

184





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

- - 7,191,934 7,191,934 - - 8,602,803 8,602,803

- - - - - - - -

- - 7,191,934 7,191,934 - - 8,602,803 8,602,803

1,724,121 1,724,121 - - 7,233 7,233 - -

- - - - - - - -

1,724,121 1,724,121 - - 7,233 7,233 - -

3,115 3,115 - - - - - -

298 - - - - - - -

3,413 3,115 - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

2,867,516 2,867,516 - - - - - -

- - - - - - - -

2,867,516 2,867,516 - - - - - -

- - - - 13,850 13,850 28,883 28,883

- - - - - - - -

- - - - 13,850 13,850 28,883 28,883

- - 221 280,064 - - 112,740 112,740

- - - (279,843) - - - -

- - 221 221 - - 112,740 112,740

NDCMRHIMIAAMCIAA

185





(in thousand pesos)

















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011

NDCMRHIMIAAMCIAA

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

1,601,265 1,459,150 10,276,110 9,054,041 13,373 17,249 (7,295,295) (7,666,494)

42,056 142,115 1,360,300 1,222,069 1,309 (3,876) 2,434,512 371,199

1,643,321 1,601,265 11,636,410 10,276,110 14,682 13,373 (4,860,783) (7,295,295)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

6,238,371 6,196,017 18,828,565 17,468,265 35,765 34,456 3,883,643 1,449,131

186





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

- - - - - - - -

- - - - - - - -

- - - - - - - -

36,623 36,623 10,000 10,000 9,086 9,086 4,300 4,300

- - - - - - - -

36,623 36,623 10,000 10,000 9,086 9,086 4,300 4,300

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - 16,676 16,676

- - - - - - - -

- - - - - - 16,676 16,676

- - - - - - - -

- - - - - - - -

- - - - - - - -

FCIEIBLCI IIGSIGYREI

187





(in thousand pesos)

















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011

FCIEIBLCI IIGSIGYREI

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

9,534 2,653 (9,258) (6,993) 144,026 595 (77,973) (77,852)

(995) 6,881 (1,569) (2,265) (10,831) 143,431 (31) (121)

8,539 9,534 (10,827) (9,258) 133,195 144,026 (78,004) (77,973)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

45,162 46,157 (827) 742 142,281 153,112 (57,028) (56,997)

188





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

- - - - - - - -

- - - - - - - -

- - - - - - - -

6,733 6,733 120,000 120,000 80,000 80,000 682 49,000

- - - - - - (682) (48,318)

6,733 6,733 120,000 120,000 80,000 80,000 - 682

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - 181,430 177,757 - - - -

- - (23,055) 3,673 - - - -

- - 158,375 181,430 - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

MGC PNLNPICKRC

189





(in thousand pesos)

















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011

MGC PNLNPICKRC

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

3,763 3,901 109,521 359,783 (22,985) (23,151) 357 8,504

6,255 (138) (72,170) (250,262) 618 166 (357) (8,147)

10,018 3,763 37,351 109,521 (22,367) (22,985) - 357

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

16,751 10,496 315,726 410,951 57,633 57,015 - 1,039

190





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

- - - - 2,136,008 2,136,008 - -

- - - - - - - -

- - - - 2,136,008 2,136,008 - -

2,252 2,252 257,667 257,667 - - 7,808,762 2,283,758

- - - - - - - 5,525,004

2,252 2,252 257,667 257,667 - - 7,808,762 7,808,762

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - 367,827 381,004

- - - - - - (1,611) (13,177)

- - - - - - 366,216 367,827

- - - - - - - -

- - - - - - - -

- - - - - - - -

PRC PNCCPEZAPADC

191





(in thousand pesos)

















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011

PRC PNCCPEZAPADC

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

1,517 355 (166,056) (194,586) 1,042,643 470,997 (9,616,705) (6,777,703)

(146) 1,162 12,491 28,530 407,502 571,646 (83,350) (2,839,002)

1,371 1,517 (153,565) (166,056) 1,450,145 1,042,643 (9,700,055) (9,616,705)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

3,623 3,769 104,102 91,611 3,586,153 3,178,651 (1,525,077) (1,440,116)

192





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

- - - - - - - -

- - - - - - - -

- - - - - - - -

500,000 500,000 15,120 15,120 97,014 97,014 1,000 1,000

- - - - - - - -

500,000 500,000 15,120 15,120 97,014 97,014 1,000 1,000

- -

- -

- - - - - - - -

- - - - - - - -

- - - - - -

- - - - - - - -

- - - - - - - -

- - - - - -

- - - - - - - -

- - 10,299 9,478 - - - -

- - - 821 - - - -

- - 10,299 10,299 - - - -

- - - - - - - -

- - - - - -

- - - - - - - -

CDCP-FC TCPCASDI DISCCBGSI

193





(in thousand pesos)

















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011

CDCP-FC TCPCASDI DISCCBGSI

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

(20,237) (15,412) (46,635) (47,262) (63,077) (53,833) (51,291) (35,310)

24,928 (4,825) 250 627 10,199 (9,244) (2,681) (15,981)

4,691 (20,237) (46,385) (46,635) (52,878) (63,077) (53,972) (51,291)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

504,691 479,763 (20,966) (21,216) 44,136 33,937 (52,972) (50,291)

194





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

- - - - 200,000 200,000 - -

- - - - - - - -

- - - - 200,000 200,000 - -

3,248,276 3,248,276 2,000 2,000 - - -

- - - - - - - -

3,248,276 3,248,276 2,000 2,000 - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

SPDAPIAPEATCPRA

195





(in thousand pesos)

















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011

SPDAPIAPEATCPRA

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

10,172,529 9,973,064 1,577 1,399 30,490 5,267 141,576 113,633

1,068,876 199,465 163 178 53,527 25,223 (29,477) 27,943

11,241,405 10,172,529 1,740 1,577 84,017 30,490 112,099 141,576

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

14,489,681 13,420,805 3,740 3,577 284,017 230,490 112,099 141,576

196





(in thousand pesos)

Government equity




Share capital




Contingent capital




Share premium




Invested capital




Appraisal increment




Donated capital




2012 2011 2012 2011 2012 2011 2012 2011

- - 10,850 250,000 - - 771,500 760,500

- - - (239,150) - - 10,669 11,000

- - 10,850 10,850 - - 782,169 771,500

19,942,815 19,942,815 - - - - - -

- - - - - - - -

19,942,815 19,942,815 - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

259,493 601,082 - - - - - -

(227,726) (341,589) - - - -

31,767 259,493 - - - - - -

- - 9,680 9,680 - - - -

- - - - - - - -

- - 9,680 9,680 - - - -

37,618 37,618 - - - - - -

- - - - - - - -

37,618 37,618 - - - - - -

TIEZA CFI ZCSEZASBMA

197





(in thousand pesos)

















Treasury shares




Restricted capital








TOTAL EQUITY


2012 2011 2012 2011 2012 2011 2012 2011

TIEZA CFI ZCSEZASBMA

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

(5,519,433) (5,133,756) 8,819,760 7,881,508 82,155 65,944 (128,189) (120,499)

1,259,892 (385,677) 1,253,091 938,252 18,154 16,211 (11,522) (7,690)

(4,259,541) (5,519,433) 10,072,851 8,819,760 100,309 82,155 (139,711) (128,189)

- - - - - - - -

- - - -

- - - - - - - -

307 307 - - - - - -

- - - - - - - -

307 307 - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

15,752,966 14,720,800 10,093,381 8,840,290 100,309 82,155 642,458 643,311

198





(In thousand pesos)

2012 2011


Cash inflows 44,426,058 47,232,091

Cash outflows (32,454,702) (32,047,640)

Net cash from (used in) operating activities 11,971,356 15,184,451


Cash inflows 895,031 3,470,470

Cash outflows (2,823,082) (3,541,969)

Net cash from (used in) investing activities (1,928,051) (71,499)


Cash inflows 5,610,874 3,403,974

Cash outflows (10,635,431) (7,391,325)

Net cash from (used in) financing activities (5,024,557) (3,987,351)



Cash and cash equivalents at beginning of period 35,980,061 24,823,563

Cash and cash equivalents at end of period 40,592,177 35,980,061


TOTAL

199





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

829,567 811,429 155,270 207,896 5,357,837 10,210,543 36,780 33,338

(758,805) (659,877) (95,134) (51,819) (1,623,072) (3,175,482) (30,530) (34,549)

70,762 151,552 60,136 156,077 3,734,765 7,035,061 6,250 (1,211)

- - - - - 5,416 - -

(86,130) (113,051) (165,773) (96,691) (217,611) (596,026) (1,270) -

(86,130) (113,051) (165,773) (96,691) (217,611) (590,610) (1,270) -

50,248 98,369 - - 15,287 423,992 - -

- - - - (1,507,416) (882,969) - -

50,248 98,369 - - (1,492,129) (458,977) - -

- - - - - 108 - -

34,880 136,870 (105,637) 59,386 2,025,025 5,985,582 4,980 (1,211)

196,112 59,242 183,397 124,011 7,172,564 1,186,982 2,839 4,050

230,992 196,112 77,760 183,397 9,197,589 7,172,564 7,819 2,839

AFAB BTPIAPECO BCDA

200





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

54,334 93,034 1,334,817 970,009 515,271 339,678 123,259 80,240

(86,439) (85,672) (1,194,206) (945,510) (344,233) (355,965) (89,175) (82,687)

(32,105) 7,362 140,611 24,499 171,038 (16,287) 34,084 (2,447)

55,852 106,841 9,157 9,286 66,134 22,797 6,954 100

(271) - (99,523) (510,190) (73,016) (10,615) (2,737) -

55,581 106,841 (90,366) (500,904) (6,882) 12,182 4,217 100

- - 120,427 551,775 - 52,163 - -

(4,270) - (116,851) (124,077) (55,378) (9,742) - -

(4,270) - 3,576 427,698 (55,378) 42,421 - -

- - (560) 8,146 - - - 6

19,206 114,203 53,261 (40,561) 108,778 38,316 38,301 (2,341)

237,733 123,530 928,728 969,289 51,348 13,032 30,427 32,768

256,939 237,733 981,989 928,728 160,126 51,348 68,728 30,427

BMHI CIAC JHMCCDC

201





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

70,014 73,316 291,748 85,424 152 168 5,848,028 4,897,231

(74,883) (63,099) (119,294) (113,658) - (400) (5,786,185) (4,415,683)

(4,869) 10,217 172,454 (28,234) 152 (232) 61,843 481,548

330 434 - - - - - -

- (26,037) (365,257) (408,804) - - (463,168) (236,284)

330 (25,603) (365,257) (408,804) - - (463,168) (236,284)

50,250 26,038 293,948 379,081 - - - -

- - (7,264) (30,657) - - - -

50,250 26,038 286,684 348,424 - - - -

- - (7,460) (804) - - (125,501) 44,881

45,711 10,652 86,421 (89,418) 152 (232) (526,826) 290,145

29,256 18,604 177,313 266,731 41,437 41,669 4,667,690 4,377,545

74,967 29,256 263,734 177,313 41,589 41,437 4,140,864 4,667,690

CAAPNLCPSICEZAPPMC

202





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

1,645,915 1,494,906 10,170,764 12,093,805 23,943 22,381 396,125 410,409

(1,304,541) (1,075,666) (7,523,975) (7,954,130) (21,753) (20,436) (325,686) (457,315)

341,374 419,240 2,646,789 4,139,675 2,190 1,945 70,439 (46,906)

- - 1,474 4,739 - - 54,935 1,124,649

(91,642) (67,405) (508,540) (438,718) - - (28,438) (33,725)

(91,642) (67,405) (507,066) (433,979) - - 26,497 1,090,924

- - 4,882,278 - - - 179,375 1,619,343

(84,371) (233,374) (7,455,383) (2,305,723) - (2,000) (93,449) (2,448,200)

(84,371) (233,374) (2,573,105) (2,305,723) - (2,000) 85,926 (828,857)

- - (176,489) 30,404 - - (13,119) 65

165,361 118,461 (609,871) 1,430,377 2,190 (55) 169,743 215,226

1,609,011 1,490,550 10,034,502 8,604,125 1,052 1,107 626,740 411,514

1,774,372 1,609,011 9,424,631 10,034,502 3,242 1,052 796,483 626,740

MCIAA MIAA NDCMRHI

203





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

28,403 18,762 4,284 597 16,209 9,083 1 1

(10,575) (9,923) (4,548) (977) (14,782) (8,616) - -

17,828 8,839 (264) (380) 1,427 467 1 1

13 13 - - - - - -

(55) (32) - - - - - -

(42) (19) - - - - - -

- - - - - - - -

(9,524) (2,653) - - - - - -

(9,524) (2,653) - - - - - -

- - - - - - - -

8,262 6,167 (264) (380) 1,427 467 1 1

23,773 17,606 8,238 8,618 1,099 632 112 111

32,035 23,773 7,974 8,238 2,526 1,099 113 112

BLCI FCIEI IIGSIGYREI

204





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

6,150 2,574 5,788 6,895 2,092 1,318 55 740

(2,733) (2,114) (7,115) (26,181) (1,217) (1,372) (118) (264)

3,417 460 (1,327) (19,286) 875 (54) (63) 476

- - - - - - - 46,066

- - (46) (68) - - - -

- - (46) (68) - - - 46,066

- - 2 10 - - - -

- (1,850) (69,417) (250,612) - - (1,010) (111,075)

- (1,850) (69,415) (250,602) - - (1,010) (111,075)

- - - - - - - -

3,417 (1,390) (70,788) (269,956) 875 (54) (1,073) (64,533)

3,947 5,337 209,765 479,721 52,524 52,578 1,073 65,606

7,364 3,947 138,977 209,765 53,399 52,524 - 1,073

PNLKRC MGC NPIC

205





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

1,956 14,808 42,857 41,758 7,696,069 6,943,748 139,634 184,020

(936) (5,181) (42,786) (37,617) (6,726,565) (6,352,737) (177,481) (361,457)

1,020 9,627 71 4,141 969,504 591,011 (37,847) (177,437)

- - - - 2,203 103,643 44,284 18,258

- - (1,472) (250) (153,957) (213,063) (91,025) (100,897)

- - (1,472) (250) (151,754) (109,420) (46,741) (82,639)

- - - - - - - -

(1,163) (8,372) - - (382,809) (238,891) - (5,513)

(1,163) (8,372) - - (382,809) (238,891) - (5,513)

- - - 56 (1,011) (391) - -

(143) 1,255 (1,401) 3,947 433,930 242,309 (84,588) (265,589)

1,639 384 26,987 23,040 1,386,660 1,144,351 112,314 377,903

1,496 1,639 25,586 26,987 1,820,590 1,386,660 27,726 112,314

PADC PNCCPEZAPRC

206





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

13,344 4,443 86 77 87,373 160,292 3,393 14,801

(26,024) (16,739) (126) (17) (80,312) (116,676) (2,197) (19,366)

(12,680) (12,296) (40) 60 7,061 43,616 1,196 (4,565)

406,531 - - - 96,916 4,539 - -

- (91,860) - - (5,968) (1,298) - -

406,531 (91,860) - - 90,948 3,241 - -

- 207,500 - - - - 249 5,800

(39,383) - - - - - (1,341) (2,000)

(39,383) 207,500 - - - - (1,092) 3,800

- - - - - - (2.00) -

354,468 103,344 (40) 60 98,009 46,857 102 (765)

218,090 114,746 448 388 59,706 12,849 1,282 2,047

572,558 218,090 408 448 157,715 59,706 1,384 1,282

TCPCDISCCBGSICDCP FCASDI

207





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

2,448,396 1,558,315 44,989 50,237 626,833 486,080 31,815 62,548

(1,526,169) (1,207,141) (43,772) (56,871) (221,066) (129,186) (39,217) (58,902)

922,227 351,174 1,217 (6,634) 405,767 356,894 (7,402) 3,646

75,382 83,566 7,618 6,259 - - 2,418 4,355

(11,798) (379,768) 0 (28,385) (75,407) (15,139) (1,753) (65)

63,584 (296,202) 7,618 (22,126) (75,407) (15,139) 665 4,290

- - 17,079 26,450 - - - -

- - - - (208,734) (103,819) - -

- - 17,079 26,450 (208,734) (103,819) - -

- - - - - - - -

985,811 54,972 25,914 (2,310) 121,626 237,936 (6,737) 7,936

2,871,025 2,816,053 171,095 173,405 547,801 309,865 8,031 95

3,856,836 2,871,025 197,009 171,095 669,427 547,801 1,294 8,031

SPDAPIAPEATCPRA (PEA)

208





(In thousand pesos)


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows







2012 2011 2012 2011 2012 2011 2012 2011

2,096,374 1,905,416 4,149,469 3,829,556 48,910 24,887 77,754 87,328

(1,313,956) (1,271,841) (2,754,307) (2,795,745) (25,071) (25,126) (55,718) (51,643)

782,418 633,575 1,395,162 1,033,811 23,839 (239) 22,036 35,685

64,188 153,309 - 1,775,642 - - 642 558

(69,349) (145,156) (266,281) (11,229) (22,209) (242) (20,386) (16,971)

(5,161) 8,153 (266,281) 1,764,413 (22,209) (242) (19,744) (16,413)

1,731 13,453 - - - - - -

(560,845) (593,269) (36,823) (36,529) - - - -

(559,114) (579,816) (36,823) (36,529) - - - -

(82,490) (51,574) - - - - - -

135,653 10,338 1,092,058 2,761,695 1,630 (481) 2,292 19,272

595,219 584,881 3,633,891 872,196 7,052 7,533 48,141 28,869

730,872 595,219 4,725,949 3,633,891 8,682 7,052 50,433 48,141

TIEZA CFISBMA ZCSEZA

209

210

CLUSTER 4

GENERAL INFORMATION

Pursuant to COA Resolution No. 2012-019 dated December 20, 2012, the Corporate

Government Sector was divided into six (6) clusters. The then Cluster B was subdivided into

two (2) Clusters which are Cluster 3 and Cluster 4.

Cluster 4 composes of GOCCs engaged in transportation, housing and area development. The

mandates of the GOCCs under this Cluster are enumerated in Annex 4.

As of December 31, 2012, a total of 45 GOCCs composes this Cluster consisting of 21

parent/stand alone corporations and 24 subsidiaries. The audit jurisdiction and supervision

over the following stand alone GOCCs, which are located in the Regions, are with the various

COA Regional Offices:

NAME OF GOCC ABBREVIATION REGION

Subic Bay Metropolitan Authority SBMA III

Authority of the Freeport Area of Bataan AFAB III

Aurora Pacific Economic Zone Authority APECO III

Partido Development Administration PDA V

Mactan Cebu International Airport Authority MCIAA VII

Zamboanga City Special Economic Zone Authority ZCSEZA IX

Marawi Resort Hotels, Inc. MRHI X

PHIVIDEC Industrial Authority PIA X

Southern Philippines Development Authority SPDA X

A complete listing of the GOCCs under the audit jurisdiction of this Cluster, including their

acronyms, the addresses of their registered offices and the laws creating them, is presented in

Schedule 1.

Report Coverage/Limitations

The discussions that follow pertain to the Summary Financial Statements of GOCCs under this

Cluster.

There are 45 parent and subsidiary corporations under this Cluster. The financial statements of

40 of these GOCCs were included in this AFR, with Annual Audit Reports on 33 GOCCs

already transmitted to their Boards/Managements and the remaining 7 are still under review by

the Cluster. The financial statements not included in this AFR pertain to the 5 GOCCs where

the audit of their financial statements are either at the execution or reporting phase or whose

Annual Audit Reports (AARs) were not yet submitted to this Cluster. The status of audit as of

August 31, 2013 of each of the corporations under this Cluster is listed in Annex 1.

The members of the governing boards of the GOCCs under this Cluster are listed in Annex 2.

211

CLUSTER 4

NOTES TO SUMMARY FINANCIAL STATEMENTS (in thousand pesos)



Basis of Preparation

The financial statements of the 40 GOCCs included in this AFR have been prepared in

accordance with the Generally Accepted Accounting Principles in the Philippines.

These financial statements have been prepared using the historical cost basis except for certain

properties which are stated at appraised or fair value.

The financial statements of the parent corporations were presented separately from those of

their subsidiaries.

The following subsidiaries of the NDC have changed their basis of accounting from the going-

concern to the liquidation basis due to the winding down of their operations because of

continued losses or shortening of corporate life, or impending dissolution. Accordingly, the

carrying values of the remaining assets of these subsidiaries are presented at estimated

realizable values, while the liabilities are presented at estimated settlement amounts:

1. IIGSI

2. MGC

3. NPIC

4. PNL

The financial statements are presented in Philippine peso, which is the functional and

presentation currency of all the GOCCs under this Cluster. All amounts are rounded to the

nearest thousand.


Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid

investments with original maturities of three months or less from dates of purchase.

Receivables

Receivables are stated at face value, less allowance for doubtful accounts. Allowance for

uncollectibility is established based on a certain percentage of the receivables as aged which

varies among the GOCCs.

Inventories

Most GOCCs stated their inventories at cost which is determined by either the moving average

method or the first-in, first-out (FIFO) method. Other GOCCs stated their inventories at the

lower of cost and net realizable value.

Investments

The BCDA, PRA, and CDC adopted the cost method of valuation of their investments in

subsidiaries less allowance for impairment except for CDC’s investment in Clark Expo which

is accounted under the equity method. On the other hand, SBMA used the equity method.

NDC’s investments in affiliates are accounted for under the equity method.

212


Property, plant and equipment, except for land, are stated net of accumulated depreciation.

Property, plant and equipment are measured at cost except for buildings and structures, roads,

highways and bridges of PRA. For PRA, roads, highways and bridges are stated at assessed

value, while buildings and structures are stated at current available appraised value.

Depreciation on property, plant and equipment is provided on a straight-line method over the

estimated useful lives of the corresponding assets.

Major repairs and improvements are capitalized; maintenance and minor repairs are charged to

operations in the year expenses are incurred.

The costs of assets retired or sold, together with the accumulated depreciation, are removed

from the accounts and any profit or loss on disposition is recognized for the period.

Investment property

Investment properties of NDC, BLCI, GYREI, KRC and PRC are measured at cost while that

of PRA is booked using the Fair Market Value Model. For conservatism, the fair value

considered is the latest lowest available appraisal of the property.

Revenue recognition

The GOCCs adopt the accrual method of accounting for revenue and expenses.

Foreign currency transactions

Foreign currency transactions are recorded based on either the Bangko Sentral ng Pilipinas

(BSP) or the Philippine Dealing System (PDS) reference rates prevailing on the date of

transactions. Monetary assets and liabilities denominated in foreign currency are translated

using the exchange rate at reporting date. Translation adjustments are recognized in profit and

loss.


2012 2011

Cash on hand 257,775 228,355

Cash in banks 14,978,759 14,715,412

Short-term placements 25,355,643 21,036,294

40,592,177 35,980,061

Cash in banks, which are in local and foreign currencies, earn interest at the respective bank

deposit rates.

Short-term placements are made for varying periods of up to three months. These placements

earn interest at the respective short-term placement rates.

3. RECEIVABLES

2012 2011


Lease/rent receivable 3,429,111 1,095,776

Loans receivable 273,820 273.473




cooperatives 41,189

45,536

Due from operating units/other 5,556,616 1,695,910

213

funds/subsidiaries and affiliates


Notes receivable 5,329 961


Dividends receivable 27,542 297,356


Others 1,807,865 2,581,874

32,148,301 23,827,993


27,157,162 19,018,208

Accounts receivable substantially consists of CAAP’s receivables of P7,077.89 million and

P6,269.52 million for CY 2012 and CY 2011, respectively, consisting of amount due from

customers for Operating Services by the Head Office and Area Centers. It also consists of

MIAA’s receivables from airline companies (including the current portion of receivables from

the Philippine Airlines), concessionaires/lessees and other government entities for the use of

facilities, services and utilities of the airport amounting to P3,745.29 million and P3,319.95

million for CY 2012 and CY 2011, respectively. It also includes long-outstanding and non-

moving trade receivables from concessionaires with rate disputes and collection cases.

Due from operating units/other funds/subsidiaries and affiliates substantially consist of CAAP

account representing unliquidated fund transfer from Head Office to Area Centers.

4. INVENTORIES

2012 2011

At cost:

Finished goods 2,423,284 3,225,590

Work in process 224,626 223,934

At net realizable value:


Materials and supplies 337,374 355,144

Gasoline, oil and lubricants 23,938 6,842

Others 3,688 4,500

4,300,906 4,818,720

Less : Allowance for obsolescence 35,702 35,708

4,265,204 4,783,012

Finished goods is comprised of the Coastal Plaza lots and share of PRA on the reclaimed lots

at the Central Business Park IA, IB/C and II.

Merchandise inventory substantially consists of subdivision lots, condominium and residential

units allocated to BCDA in McKinley Hills, Serendra, Newport City and Pacific Plaza Tower

Projects.

The accounts of PADC, MGC, IIGSI, PNCC and TCPC were provided with an allowance for

obsolescence.


2012 2011

Prepayments 268,145 268,450

Input VAT 42,227 148,323



214




Others 3,543 3,251

1,341,015 1,271,625


This account substantially consists of the BCDA’s account amounting to P883.392 million and

P469.184 million for CY 2012 and CY 2011, respectively, representing mainly of proceeds

from the sale of Serendra condominium units and lease income from Serendra retail area

wherein the proceeds are being maintained in an escrow account with the DBP pending sales

verification and reconciliation between the BCDA and Ayala Land, Inc.

7. LONG-TERM RECEIVABLES

2012 2011


Installment receivable 32,633 12,903




funds/subsidiaries and affiliates 577,988

1,282,920



cooperatives 11,488

11,488

Others 62,721 94,154

20,974,334 25,024,499

Less: Allowance for doubtful accounts

/impairment

2,296,020

2,245,759

18,678,314 22,778,740

Due from GOCCs, NGAs and LGUs pertain to the non-current portion of PRA receivables

arising

from the sale of lots to GOCCs, Lease with Option to Purchase Agreements for the completed

buildings financed and constructed by PRA for NGAs, and the Value-Added Tax due from the

City Governments of Parañaque and Pasay.

Loans receivable pertains to NDC account representing the non-current portion of the loan

granted to National Irrigation Administration (NIA), which loan was funded from the proceeds

of Agri-Agra bonds.


2012 2011

Investment in subsidiaries/affiliates/joint

ventures

39,724,525

40,323,848

Investment in stocks 4,849,322 4,804,046

Investment in Treasury Bills/Notes 606,611 150,058

Investment in bonds 421,994 259,372

Others 4,215,545 4,150,567

49,817,997 49,687,891

215

Less: Allowance for decline in value of

investments

4,215,851

4,216,906

45,602,146 45,470,985

Others mainly pertain to BCDA’s equities on various joint venture projects amounting to

P3,950.01 million and P3,884.83 million for CY 2012 and CY 2011, respectively.


2012 2011


Buildings and improvements 42,205,056 35,901,019

Transportation equipment 557,359 566,707

Roads, highways and bridges 48,621 48,621

Office equipment, furniture and fixtures 5,039,451 4,335,770

Electrification, power and energy structures 2,226,964 2,213,271

Machinery and equipment 10,349,946 10,211,629

Others 681,768 707,641

184,503,463 182,444,974

Less: Accumulated depreciation 50,311,320 47,807,459

134,192,143 134,637,515

Construction-in-progress 6,233,679 14,743,591

140,425,822 149,381,106

Land and land improvements substantially consists of BCDA’s account amounting to

P74,192.00 million and P73,811.82 million for CY 2012 and CY 2011, respectively.

Machinery and equipment mostly pertain to MIAA’ account amounting to P5,698.91 million

and P5,650.79 million for CY 2012 and CY 2011, respectively.


This account substantially consists of lands and other assets which are held for undetermined

future use. These are the following:

2012 2011

Three Islands 6,704,979 6,704,979

Asiaworld 788,648 788,648

R-1 Landstrips 632,820 632,820

Bacolod Reclamation 323,868 323,868

Libertad Channel 29,737 29,737

8,480,052 8,480,052

Three Islands consist of 157.844 hectares reclaimed land at various elevation recorded at June

2008 appraisal while the Asiaworld represents lots 2A & 2B of the Reclamation Plan with a

total area of 28,166 square meters. R-1 Landstrips pertain to the 154,272 square meter lots

along the Coastal Road area recorded at June 2007 and June 2008 appraisals. These accounts,

together with Bacolod Reclamation and Libertad Channel accounts pertain to PRA.


2012 2011

Inactive receivable accounts 2,235,383 1,520,195

216

Less: Allowance for doubtful accounts 59,495 59,491

2,175,888 1,460,704

Idle assets 6,380,047 6,284,578

Less: Accumulated depreciation/allowance for

obsolescence

12,881

12,881

6,367,166 6,271,697

Deferred charges 1,624,864 1,715,606

Assets for write off 9,615,422 9,615,422

Assets held-in-trust 2,914,920 2,644,025

Project development costs and pre-operating

expenses

21,213

21,213

Restricted funds/assets 5,547,362 613,755

Deferred tax asset 14,193 18,036

Others 515,346 587,397

20,253,320 15,215,454

28,796,374 22,947,855

Less: Allowance for impairment 11,704,881 10,750,056

17,091,493 12,197,799


2012 2011


Due to Bureau of Treasury 6,169,418 4,749,806


and affiliates 7,104,354

4,018,204



Dividends payable 2,580,891 2,822,329

Guarantee deposit/security deposit/advance

rental payable 1,931,161

2,240,309


Trust liability 1,377,165 795,582

Others 477,830 427,033

35,826,988 32,289,575

Due to GOCCs, NGAs and LGUs refers mostly to the account of PNCC pertaining to the

amount of concession fees payable to the Toll Regulatory Board, unremitted share in the toll

revenue and unremitted Joint Venture companies’ dividends.


2012 2011

Loans payable 46,566,123 51,591,733



and affiliates 232,565

145,177

Deferred tax liability 3,837,722 3,832,455

Others 2,304,294 1,875,705

54,251,857 58,761,750

Loans payable represents domestic and foreign loans of the various GOCCs.

217

14. RETAINED EARNINGS

2012 2011


Net profit (loss) for the period 15,276,081 4,933,178

Dividends (2,992,207) (2,561,576)

Prior-year’s adjustments 1,043,293 (3,422,223)


Total deficit amounted to P21,271.82 million and P24,904.91 million for CY 2012 and CY

2011, respectively. Seventeen (17) of the GOCCs included in this summarization suffered

deficits in CY 2012 and CY 2011 with the following incurring the biggest deficits:

NDC

PNCC

SBMA

CIAC

BTPI

JHMC

PADC

15. GAINS AND PREMIUMS

2012 2011

Gain on foreign exchange 5,316,571 65,760

Gain on revaluation 1,346,264 27,923

Gain on sale/disposal of assets 104,320 179,395

6,767,155 273,078

Gain on revaluation substantially consists of SBMA’s account representing unrealized gain or

loss from translation of foreign denominated accounts to its peso equivalent using the BSP rate

as of reporting date.

16. OTHER INCOME

2012 2011

Dividend income 521,018 654,710

Interest income 607,970 602,125

Share from income of joint venture operations 1,407,832 1,923,000

Rent income 842,791 807,941

Others 556,314 1,229,147

3,935,925 5,216,923

Share from income of joint venture operations refers mostly to BCDA’s share from joint

venture companies.


2012 2011


218


Personnel benefits contributions 312,482 321,079

Others 629,647 787,111

5,282,496 5,535,649


2012 2011

Depreciation, amortization and bad debts 3,146,889 3,278,295

Light, power and water 7,593,537 7,074,141

Professional and other contracted services 2,349,327 2,546,727


Taxes, duties and premiums 948,867 920,530

Donations 19,600 23,111

Demolition and dredging 32,511 37,688

Supplies and materials 441,495 452,451

Awards, prizes and other claims 17,107 11,519

Rent/lease 193,093 288,761

Communication, training and travel 325,567 306,379

Confidential, extraordinary and miscellaneous 24,055 39,370

Advertising 166,976 169,543

Representation 65,436 59,686

Subsidies 298,198 383,825

Survey and research expenses 1,951 687

Membership dues and contributions 1,106,717 1,602,983

Other maintenance and operating expenses 563,415 571,411

18,236,085 18,424,448

19. OTHER EXPENSES

2012 2011

Loss on sale/disposal of assets 1,365 1,920

Loss on foreign exchange 355,839 2,034,035

Loss on revaluation 106,551 417,023

Impairment loss 6,132 109,305

Other losses 99,702 125,590

569,589 2,687,873

Schedule 1

1. Aurora Pacific Economic Zone Authority

and Freeport Authority

APECO Casiguran, Aurora RA 10083 as amended by RA 9490

2. Authority of the Freeport Area of Bataan AFAB(BEPZ) Mariveles, Bataan RA 9728

3. Bases Conversion and Development

Authority

BCDA 2F Bonifacio Technology Center,

31st Street, Cresent Park West

Bonifacio Global City, Taguig City

RA 7227 amended by RA 9717

4. Bataan Technology Park, Incorporated BTPI BCDA Sabang, Morong, Bataan Corporation Law

5. BCDA Management and Holdings,

Incorporated

BMHI BCDA 2F Bonifacio Technology Center,



Corporation Law

6. Clark Development Corporation CDC BCDA Clark Special Economic Zone, Clark

Field, Angeles City, Pampanga

Corporation Law

7. Clark International Airport Corporation CIAC BCDA Corporate Office Bldg., Clark

Freeport Zone, Clark Field,

Pampanga

Corporation Law

8. John Hay Management Corporation JHMC BCDA Camp John Hay, Baguio City Corporation Law

9. North Luzon Railways Corporation NORTHRAIL BCDA St. Agatha Homes Pavilion, Sta Rita,

Guiguinto, Bulacan

Corporation Law


Cluster 4

Summary Data of Agencies Under Cluster 4

Parent

/Controlling

Entity

Agency Name Acronyms Principal Office and Address Enabling Law/Creation

219

Parent

/Controlling

Entity


10. Philippine Centennial Expo'98 Corporation EXPOCORP BCDA 2F Bonifacio Technology Center,



Corporation Law

11. Poro Point Management Corporation PPMC BCDA Pennsylvania Avenue, Poro Point,

San Fernando, La Union

Corporation Law

12. Cagayan Economic Zone Authority CEZA 7th Flr Westar Building, 611 Shaw

Blvd., Pasig

RA 7922

13. Northeastern Luzon Pacific Coastal

Service, Incorporated

NLPCSI 7th Flr Westar Building, 611 Shaw

Blvd., Pasig

Corporation Law

14. Civil Aviation Authority of the Philippines CAAP Old MIAA Road, Pasay City RA 9497

15. Laguna Lake Development Authority LLDA SRA Compound, North Avenue,

Quezon City

RA 4850 as amended by PD 813 of

1975 EO 927 of 1983

16. Mactan-Cebu International Airport

Authority

MCIAA Lapulapu City, Cebu RA 6958

17. Manila International Airport Authority MIAA MIAA Administration Bldg., MIAA

Road, Pasay City

EO 778 of 1982 as amended by EO

903 and EO 909 both of 1983

18. Marawi Resort Hotels, Incorporated MRHI Marawi City Corporation Law

19. National Development Company NDC #116 Tordesillas St., Salcedo

Village, Makati City

Legislative Act 2849 of 1919 as

amended by CA Act 182 of 1936, as

amended by CA 311 of 1938; PD

1648 of 1979

20. Batangas Land Company, Incorporated BLCI NDC #116 Tordesillas St., Salcedo


Corporation Law

220

Parent

/Controlling

Entity


21. Crowntex Realty Corporation Crowntex NDC #116 Tordesillas St., Salcedo


Corporation Law

22. First Cavite Industrial Estate, Incorporated FCIEI NDC #116 Tordesillas St., Salcedo


Corporation Law

23. First Centennial Clark Corporation FCCC NDC #116 Tordesillas St., Salcedo


Corporation Law

24. GY Realty Estate, Incorporated GYREI NDC #116 Tordesillas St., Salcedo


Corporation Law

25. Inter-Island Gas Services, Incorporated IIGSI NDC #116 Tordesillas St., Salcedo


Corporation Law

26. Kamayan Realty Corporation KRC NDC #116 Tordesillas St., Salcedo


Corporation Law

27. Luzon Integrated Services, Incorporated LINSI NDC #116 Tordesillas St., Salcedo


Corporation Law

28. Luzon Stevedoring Corportion LUZTEVECO NDC #116 Tordesillas St., Salcedo


Corporation Law

29. Manila Gas Corporation MGC NDC #116 Tordesillas St., Salcedo


Corporation Law

30. National Precision Cutting Tools,

Incorporated

NPCTI NDC #116 Tordesillas St., Salcedo


Corporation Law

31. National Stevedoring and Lighterage

Corporation

NSLC NDC #116 Tordesillas St., Salcedo


Corporation Law

32. National Trucking and Forwarding

Corporation

NTFC NDC #116 Tordesillas St., Salcedo


Corporation Law

33. NDC-Philippine Infrastructure Corporation NPIC NDC #116 Tordesillas St., Salcedo


Corporation Law

221

Parent

/Controlling

Entity


34. Philippine National Lines PNL NDC #116 Tordesillas St., Salcedo


Corporation Law

35. Pinagkaisa Realty Corporation PRC NDC #116 Tordesillas St., Salcedo


Corporation Law

36. Tacoma Bay Shipping Corporation TABASCO NDC #116 Tordesillas St., Salcedo


Corporation Law

37. UP-NDC Basilan Plantations, Incorporated UNBPI NDC #116 Tordesillas St., Salcedo


Corporation Law

38. Partido Development Administration PDA Caraycayon, Tigaon, Camarines Sur RA 7820 of 1994

39. Philippine Aerospace Development

Corporation

PADC Hangar 2, General Aviation Area,

Domestic Rd., Paranaque City

PD 286 of 1973 as amended by PDs

346 of 1973 and 696 of 1975

40. Philippine Economic Zone Authority PEZA Roxas Blvd. corner San Luis Street,

Pasay City

RA 7916 of 1995 as amended by RA

8748

41. Philippine National Construction

Corporation

PNCC Km. 15, East Service Road, Bicutan,

Paranaque City

LOI 1295 of 1983

42. Alabang- Sto.Tomas Development,

Incorporated

ASDI PNCC Km. 15, East Service Road, Bicutan,

Paranaque City

Corporation Law

43. CDCP Farms Corporation CDCP-FC PNCC Km. 15, East Service Road, Bicutan,

Paranaque City

Corporation Law

44. DISC Contractors Builders and General

Services, Inc.

DISCCBGSI PNCC Km. 15, East Service Road, Bicutan,

Paranaque City

Corporation Law

45. Tierra Factors Corporation TFC PNCC Km. 15, East Service Road, Bicutan,

Paranaque City

Corporation Law

222

Parent

/Controlling

Entity


46. Traffic Control Products Corporation TCPC PNCC Km. 15, East Service Road, Bicutan,

Paranaque City

Corporation Law

47. PNCC Skyway Corporation PSC PNCC Km. 15, East Service Road, Bicutan,

Paranaque City

Corporation Law

48. Philippine Reclamation Authority PRA(PEA) 7/F Legaspi Towers 200 Bldg., 107

Paseo de Roxas St. Legaspi Village,

1226 City of Makati

PD 1084 of 1977

49. PEA Tollway Corporation PEATC PRA(PEA) Aguinaldo Blvd., Coastal

Rd.,Paranaque City

Corporation Law

50 PHIVIDEC Industrial Authority PIA Municipalities of Togoloan and

Villanueva, Misamis Oriental

PD 538 as amended by PD1491; EO

No. 1031

51. Southern Philippines Development

Authority

SPDA 4th Floor, Karpentrade Building,

Km. 2 McArthur Highway, Matina,

Davao City

PD 690 of 1975 as amended by PD

1703 of 1980

52. Subic Bay Metropolitan Authority SBMA SBMA Building 229, Subic Bay

Freeport Zone, Olongapo City

RA 7227

53. Freeport Services Corporation FSC SBMA FSC Building H8211, Burgos St.

corner Causeway Rd., Subic Bay

Freeport Zone, Olongapo City

Corporation Law

54. Tourism Infrastructure and Enterprise Zone

Authority

TIEZA Department of Tourism Building,

T.M. Kalaw Street, Ermita, City of

Manila

PD 189 amended under PD 564;

Section 63 of RA 9593

55. Corregidor Foundation, Inc. CFI TIEZA Department of Tourism Building,

T.M. Kalaw Street, Ermita, City of

Manila

Corporation Law

223

Parent

/Controlling

Entity


56. Zamboanga City Special Economic Zone

Authority

ZCSEZA San Ramon, Zamboanga City RA 7903 of 1995

224

Cluster 5 - Agricultural and Natural Resources

Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets 86,673,169 87,462,408


Short-term investments 3 116,362 698,910

Receivables (net) 4 43,900,557 39,476,144

Inventories (net) 5 18,289,848 31,615,638


Others 7 155,614 172,299


Long-term receivables (net) 8 1,084,159 1,141,293

Long-term investments (net) 9 8,708,085 8,014,971

Property, plant and equipment (net) 10 130,549,888 130,859,532

Others 11 3,702,645 2,719,220

TOTAL ASSETS 230,717,946 230,197,424


Liabilities 237,870,596 243,309,051



Others 3,273,252 2,895,587


Mortgage payable 2,860 761



Others 14 4,159,875 4,300,343

Equity (7,152,650) (13,111,627)

TOTAL LIABILITIES AND EQUITY 230,717,946 230,197,424

TOTAL

Notes 2012 2011

227


Balance Sheet

December 31, 2012


In thousand pesos

2012 2011 2012 2011 2012 2011 2012 2011

Assets

Current assets 497,530 494,674 1,252,154 1,385,034 58,498 73,969 356,351 358,523

Cash and cash equivalents 185,115 179,443 300,646 364,299 58,013 68,715 23,674 25,709

Short-term investments - - - - - - - -

Receivables (net) 311,079 313,970 864,157 834,747 485 5,240 332,151 332,145

Inventories (net) 668 658 82,590 181,547 - - 526 669

Prepayments and deferred charges 345 436 3,229 2,831 - 14 - -

Others 323 167 1,532 1,610 - - - -

Non-current assets 533,921 536,279 1,683,129 1,560,620 18,969 13,954 516 427

Long-term receivables (net) - - 480 480 - - - -

Long-term investments (net) 352,994 353,994 484,846 492,708 965 965 - -

Property, plant and equipment (net) 87,464 88,822 294,529 1,049,136 - - 516 427

Others 93,463 93,463 903,274 18,296 18,004 12,989 - -

TOTAL ASSETS 1,031,451 1,030,953 2,935,283 2,945,654 77,467 87,923 356,867 358,950


Liabilities 158,872 160,532 4,255,765 4,643,268 55,377 63,170 341,319 344,285

Current liabilities 145,663 143,628 2,561,611 2,548,871 55,377 63,170 340,843 343,809

Trade and non-trade payables 24,457 22,422 2,536,546 2,535,863 53,719 61,512 340,450 341,901

Others 121,206 121,206 25,065 13,008 1,658 1,658 393 1,908

Non-current liabilities 13,209 16,904 1,694,154 2,094,397 - - 476 476


Loans and advances payable - - 981,884 718,592 - - 476 476

Deferred credits 4,850 5,574 700 - - - - -

Others 8,359 11,330 711,570 1,375,805 - - - -

Equity 872,579 870,421 (1,320,482) (1,697,614) 22,090 24,753 15,548 14,665

TOTAL LIABILITIES AND EQUITY 1,031,451 1,030,953 2,935,283 2,945,654 77,467 87,923 356,867 358,950

HSDC NABCOR PADCC ZREC

228


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets

Long-term receivables (net)

Long-term investments (net)

Property, plant and equipment (net)

Others

TOTAL ASSETS


Liabilities

Current liabilities

Trade and non-trade payables

Others


Mortgage payable


Deferred credits

Others

Equity

TOTAL LIABILITIES AND EQUITY

2012 2011 2012 2011 2012 2011 2012 2011(As Restated) (As Restated)

935,714 1,032,758 20,762,755 35,220,633 6,117,960 1,019,919 13,447,052 7,321,233

541,128 586,079 1,781,662 2,374,518 1,136,405 815,043 11,434,250 5,875,884

- - - - - - - -

388,000 441,536 853,520 1,369,223 4,961,166 174,008 782,921 556,921

4,573 3,995 17,781,713 31,109,152 1,950 1,970 5,397 5,903

199 199 9,674 12,828 13,709 24,247 1,221,507 879,861

1,814 949 336,186 354,912 4,730 4,651 2,977 2,664

297,942 156,424 4,574,597 4,218,105 6,626,968 18,011,473 92,825,064 80,509,347

- - - - - - - -

46,207 45,644 2,044,637 1,583,836 - - - -

56,019 54,079 2,388,910 2,488,064 6,525,025 17,917,200 92,806,448 80,491,922

195,716 56,701 141,050 146,205 101,943 94,273 18,616 17,425

1,233,656 1,189,182 25,337,352 39,438,738 12,744,928 19,031,392 106,272,116 87,830,580

783,159 954,356 162,793,041 171,499,237 595,673 1,309,647 4,969,362 4,712,699

737,771 908,882 52,762,699 59,783,008 487,219 1,204,198 4,969,198 4,712,535

732,642 858,529 52,290,425 59,292,131 487,197 1,203,965 4,620,010 4,545,919

5,129 50,353 472,274 490,877 22 233 349,188 166,616

45,388 45,474 110,030,342 111,716,229 108,454 105,449 164 164

- - - - - - - -

39,585 39,585 109,468,752 111,052,555 - - - -

5,803 5,889 561,590 663,674 108,454 105,449 164 164

- - - - - - - -

450,497 234,826 (137,455,689) (132,060,499) 12,149,255 17,721,745 101,302,754 83,117,881

1,233,656 1,189,182 25,337,352 39,438,738 12,744,928 19,031,392 106,272,116 87,830,580

NDA NFA FTI NIA-F101

229


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity


2012 2011 2012 2011 2012 2011 2012 2011

529,248 408,443 34,211,399 31,878,033 33,211 30,352 172,076 148,704

387,814 260,491 2,163,804 783,860 8,976 7,414 52,722 45,701

- - - - - - - -

116,120 119,998 32,044,395 31,129,538 16,113 17,248 89,511 73,286

800 800 109,107 116,647 79 363 29,370 29,246

24,514 27,154 99,852 60,519 7,038 4,858 32 30

- - (205,759) (212,531) 1,005 469 441 441

2,173,886 2,214,844 24,690,519 25,149,899 4,626 4,879 326,491 327,795

- - - - - - - -

- - 11,224 11,224 - - 225,000 225,000

2,082,974 2,123,932 24,157,341 24,537,348 746 775 10,710 12,014

90,912 90,912 521,954 601,327 3,880 4,104 90,781 90,781

2,703,134 2,623,287 58,901,918 57,027,932 37,837 35,231 498,567 476,499

704,730 591,783 45,423,443 44,067,167 30,809 24,411 301,872 294,331

704,730 591,783 16,115,962 15,440,162 30,585 23,176 232,569 225,817

667,639 569,276 14,873,182 14,348,355 30,504 23,095 128,443 121,691

37,091 22,507 1,242,780 1,091,807 81 81 104,126 104,126

- - 29,307,481 28,627,005 224 1,235 69,303 68,514

- - - - - - - -

- - 11,506,340 11,506,340 - - 30,000 30,000

- - 17,801,141 17,120,665 - - 39,303 38,514

- - - - 224 1,235 - -

1,998,404 2,031,504 13,478,475 12,960,765 7,028 10,820 196,695 182,168

2,703,134 2,623,287 58,901,918 57,027,932 37,837 35,231 498,567 476,499

NIA-F158 NIA-F501 NIACI NRDC

230


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity


2012 2011 2012 2011 2012 2011 2012 2011(As Restated)

504,413 437,018 62,655 56,274 727,559 718,335 1,423,449 966,287

65,068 95,943 55,978 50,007 70,453 156,913 1,013,040 670,812

- - - - - - - -

439,206 340,993 811 223 635,751 543,765 233,368 227,151

139 82 5,857 6,044 10,811 10,967 173,450 64,653

- - 9 - 9,798 5,870 770 788

- - - - 746 820 2,821 2,883

4,585 4,546 279,728 281,274 473,927 377,260 1,063,410 1,035,618

- - - - - - - -

- - - - 7,017 35,891 89 89

3,577 3,538 271,968 275,174 346,775 247,131 341,628 320,375

1,008 1,008 7,760 6,100 120,135 94,238 721,693 715,154

508,998 441,564 342,383 337,548 1,201,486 1,095,595 2,486,859 2,001,905

82,289 12,635 183,477 193,989 125,752 105,056 442,417 315,201

82,289 12,635 65,821 59,666 125,744 105,048 368,907 262,349

82,289 12,635 65,340 59,185 109,068 98,994 368,907 262,349

- - 481 481 16,676 6,054 - -

- - 117,656 134,323 8 8 73,510 52,852

- - - - - - 2,860 761

- - 113,333 130,000 - - - -

- - 4,323 4,323 8 8 70,650 52,091

- - - - - - - -

426,709 428,929 158,906 143,559 1,075,734 990,539 2,044,442 1,686,704

508,998 441,564 342,383 337,548 1,201,486 1,095,595 2,486,859 2,001,905

PFC PMDC NTA PCA

231


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity


2012 2011 2012 2011 2012 2011 2012 2011(As Restated) (As Restated)

517,756 329,677 1,158,066 642,576 783,785 809,996 1,788,593 2,870,429

352,115 111,382 898,455 399,128 485,838 428,731 679,691 161,736

- 7,695 - - 85,000 85,518 - 575,111

160,726 204,823 227,863 216,219 208,536 290,992 1,099,180 2,122,574

- - 11,618 12,560 - - 7,704 8,195

490 408 16,468 6,025 4,411 4,755 1,793 2,048

4,425 5,369 3,662 8,644 - - 225 765

753,426 752,112 314,562 370,522 5,508,740 5,208,909 911,653 1,012,883

334,360 332,641 13,931 13,922 356,118 330,977 379,270 463,273

396,669 396,669 89 89 5,137,899 4,863,048 449 5,814

22,387 22,802 293,459 349,481 14,709 14,884 55,539 55,709

10 - 7,083 7,030 14 - 476,395 488,087

1,271,182 1,081,789 1,472,628 1,013,098 6,292,525 6,018,905 2,700,246 3,883,312

393,695 339,554 1,425,503 970,758 5,296,689 5,190,669 8,583,280 6,634,748

107,492 79,643 1,354,554 899,033 1,304 915 7,447,132 5,241,669

40,456 69,951 1,338,401 885,864 1,304 915 7,276,296 5,064,410

67,036 9,692 16,153 13,169 - - 170,836 177,259

286,203 259,911 70,949 71,725 5,295,385 5,189,754 1,136,148 1,393,079

- - - - - - - -

- - 47,793 51,475 2,638,505 2,638,506 602,218 1,259,218

32,692 28,608 23,156 20,250 91 - 4,508 4,439

253,511 231,303 - - 2,656,789 2,551,248 529,422 129,422

877,487 742,235 47,125 42,340 995,836 828,236 (5,883,034) (2,751,436)

1,271,182 1,081,789 1,472,628 1,013,098 6,292,525 6,018,905 2,700,246 3,883,312

PFDA PHILSUCOR QUEDANCORPCIC

232


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity


2012 2011 2012 2011 2012 2011(As Restated)

331,071 257,877 51,638 6,208 950,236 995,456

293,555 221,560 50,252 394 753,920 780,215

31,362 30,586 - - - -

2,332 2,226 909 690 132,257 158,628

2,212 1,734 408 5,074 60,876 55,379

1,610 1,771 41 22 2,725 776

- - 28 28 458 458

121,751 117,452 196,232 193,248 660,135 677,146

- - - - - -

- - - - - -

121,751 117,452 18,211 20,972 649,202 668,295

- - 178,021 172,276 10,933 8,851

452,822 375,329 247,870 199,456 1,610,371 1,672,602

99,492 109,936 90,699 36,602 733,881 735,017

99,360 109,804 86,752 27,585 729,001 717,352

56,567 52,888 86,752 27,585 128,737 149,716

42,793 56,916 - - 600,264 567,636

132 132 3,947 9,017 4,880 17,665

- - - - - -

- - - - - -

132 132 3,947 9,017 4,880 17,665

- - - - - -

353,330 265,393 157,171 162,854 876,490 937,585

452,822 375,329 247,870 199,456 1,610,371 1,672,602

SRA BFI (R10) PRRI (R3)

233


Income Statement



In thousand pesos

Income 51,191,931 34,251,093


Gains and premiums 6,949 3,360

Others 28,546,061 3,658,770

Less: share of National Government - -

Income after share of National Government 16 51,191,931 34,251,093

Expenses 48,821,146 55,581,279



Financial expenses 19 9,375,946 9,231,891

Others 20 2,154,521 520,923

Net income (loss) before subsidy 2,370,785 (21,330,186)

Subsidy income 33,581,272 17,826,511

Net income (loss) before tax 35,952,057 (3,503,675)

Income tax expense (benefit) 6,603,658 45,398

NET INCOME (LOSS) AFTER TAX 29,348,399 (3,549,073)

Notes 2012 2011

TOTAL

234


Income Statement



In thousand pesos

Income 43,656 40,163 77,098 74,529 1,516 12,126 13,168 21,697

Business and service income 37,027 32,800 68,256 66,260 311 4,144 12,875 21,333

Gains and premiums - - - - - - - -

Others 6,629 7,363 8,842 8,269 1,205 7,982 293 364

Less: share of National Government - - - - - - - -

Income after share of National Government 43,656 40,163 77,098 74,529 1,516 12,126 13,168 21,697

Expenses 39,252 36,486 105,803 118,300 4,190 5,363 11,487 16,435


Maintenance and other operating expenses 25,612 24,682 76,321 86,308 818 248 10,291 14,860

Financial expenses 2 - 279 199 1 3 - -

Others - 283 69 - - - - -

Net income (loss) before subsidy 4,404 3,677 (28,705) (43,771) (2,674) 6,763 1,681 5,262

Subsidy income - - - - - - - -

Net income (loss) before tax 4,404 3,677 (28,705) (43,771) (2,674) 6,763 1,681 5,262

Income tax expense (benefit) - - - - - - 419 1,494

NET INCOME (LOSS) AFTER TAX 4,404 3,677 (28,705) (43,771) (2,674) 6,763 1,262 3,768

20112012 2011 2012 2012 20122011 2011


235


Income Statement



In thousand pesos

Income


Gains and premiums

Others

Less: share of National Government


Expenses

Personal services


Financial expenses

Others


Subsidy income


Income tax expense (benefit)


2011 2011

(As Restated) (As Restated)

19,407 19,099 21,627,741 28,470,354 24,177,561 373,490 - -

1,966 1,138 17,687,884 25,929,864 372,547 341,506 - -

- - - - 353 199 - -

17,441 17,961 3,939,857 2,540,490 23,804,661 31,785 - -

- - - - - - - -

19,407 19,099 21,627,741 28,470,354 24,177,561 373,490 - -

141,648 134,632 35,130,616 46,637,164 2,150,054 339,403 327,548 70,998

66,432 57,360 2,046,149 1,854,772 67,120 77,591 - 2,133

75,193 77,245 25,061,231 35,937,829 202,428 230,048 311,269 61,330

23 27 8,023,236 8,844,563 10,294 15,764 - -

- - - - 1,870,212 16,000 16,279 7,535

(122,241) (115,533) (13,502,875) (18,166,810) 22,027,507 34,087 (327,548) (70,998)

337,912 116,171 8,029,829 2,500,000 - - 22,234,471 13,438,303

215,671 638 (5,473,046) (15,666,810) 22,027,507 34,087 21,906,923 13,367,305

- - - - 6,603,239 39,657 - -

215,671 638 (5,473,046) (15,666,810) 15,424,268 (5,570) 21,906,923 13,367,305

20112012 2012 2011 2012 2012

FTI NIA-GFNDA NFA

236


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services


Financial expenses

Others


Subsidy income




47 50 2,570,986 2,776,590 49,975 56,213 23,072 22,717

- - 2,224,851 2,190,668 49,378 55,242 22,742 22,454

- - 1,637 1,556 - - - -

47 50 344,498 584,366 597 971 330 263

- - - - - - - -

47 50 2,570,986 2,776,590 49,975 56,213 23,072 22,717

80,831 88,924 3,697,310 3,070,589 53,772 53,722 28,034 29,059

65,112 76,576 1,685,013 1,285,195 5,363 4,434 12,374 11,154

15,715 12,334 1,643,646 1,779,038 48,291 49,262 12,847 15,250

4 14 366,280 152 10 4 2,813 2,655

- - 2,371 6,204 108 22 - -

(80,784) (88,874) (1,126,324) (293,999) (3,797) 2,491 (4,962) (6,342)

234,946 238,725 984,362 - - - 16,500 -

154,162 149,851 (141,962) (293,999) (3,797) 2,491 11,538 (6,342)

- - - - - 734 - -

154,162 149,851 (141,962) (293,999) (3,797) 1,757 11,538 (6,342)

20112012 2011 2012 2012 20122011 2011

NIA-SF NIA-CF NIACI NRDC

237


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services


Financial expenses

Others


Subsidy income




2011

(As Restated)

11,844 425 83,559 39,922 108,013 109,130 307,613 291,478

11,561 210 83,027 38,727 98,927 98,685 295,876 281,479

- - - - - 690 249

283 215 532 1,195 9,086 10,445 11,047 9,750

- - - - - - - -

11,844 425 83,559 39,922 108,013 109,130 307,613 291,478

13,838 8,983 68,212 78,375 242,092 220,604 1,136,332 736,324

7,162 6,773 16,777 16,951 170,907 147,150 416,817 374,566

6,676 2,209 34,776 50,650 71,130 73,266 719,343 361,239

- 1 13,658 10,436 55 188 172 519

- - 3,001 338 - - - -

(1,994) (8,558) 15,347 (38,453) (134,079) (111,474) (828,719) (444,846)

- 416,500 - - 219,200 77,454 1,182,757 542,700

(1,994) 407,942 15,347 (38,453) 85,121 (34,020) 354,038 97,854

- 3,513 - - - - - -

(1,994) 404,429 15,347 (38,453) 85,121 (34,020) 354,038 97,854

2012 2012 2012 20122011 2011 2011

PFC PMDC NTA PCA

238


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services


Financial expenses

Others


Subsidy income




2011 2011


589,010 491,097 557,001 524,190 314,942 340,297 124,653 179,189

559,725 458,171 551,902 519,691 - - 89,443 148,617

- 2 - - - - 4,269 1,354

29,285 32,924 5,099 4,499 314,942 340,297 30,941 29,218

- - - - - - - -

589,010 491,097 557,001 524,190 314,942 340,297 124,653 179,189

446,070 674,985 552,216 519,548 121,107 118,961 3,651,833 1,828,467

103,658 99,894 269,058 246,376 5,903 4,936 170,789 238,800

86,338 86,596 279,733 269,036 9,654 8,479 2,629,494 1,340,124

1,405 1,441 558 715 105,550 105,546 851,550 249,543

254,669 487,054 2,867 3,421 - - - -

142,940 (183,888) 4,785 4,642 193,835 221,336 (3,527,180) (1,649,278)

- - - - - - 394 653

142,940 (183,888) 4,785 4,642 193,835 221,336 (3,526,786) (1,648,625)

- - - - - - - -

142,940 (183,888) 4,785 4,642 193,835 221,336 (3,526,786) (1,648,625)

2012 2012 2012 20122011 2011

PHILSUCOR QUEDANCORPCIC PFDA

239


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services


Financial expenses

Others


Subsidy income




2011

(As Restated)

419,499 328,050 19,200 7,702 52,370 72,585

409,322 323,740 19,198 7,699 42,103 46,535

- - - - - -

10,177 4,310 2 3 10,267 26,050

- - - - - -

419,499 328,050 19,200 7,702 52,370 72,585

337,527 343,811 28,104 32,178 453,270 417,968

231,571 220,742 12,847 13,522 126,316 121,820

105,956 123,069 15,257 18,656 321,953 295,961

- - - - 56 121

- - - - 4,945 66

81,972 (15,761) (8,904) (24,476) (400,900) (345,383)

- - - - 340,901 496,005

81,972 (15,761) (8,904) (24,476) (59,999) 150,622

- - - - - -

81,972 (15,761) (8,904) (24,476) (59,999) 150,622

2012 2012 20122011 2011


240





In thousand pesos

Government equity, beginning of period 23,888,994 24,207,901

Additions (deductions) 1,043,515 (318,907)

Government equity, end of period 24,932,509 23,888,994

Share capital, beginning of period 15,046,547 15,036,047

Additions (deductions) 9,999 10,500

Share capital, end of period 15,056,546 15,046,547

Share premium, beginning of period - -

Additions (deductions) - -

Share premium, end of period - -

Deposit on subscription, beginning of period - -


Deposit on subscription, end of period - -

Restricted capital, beginning of period - -


Restricted capital, end of period - -

Appraisal increment, beginning of period 17,324,603 17,638,509

Additions (deductions) (10,819,868) (313,906)

Appraisal increment, end of period 6,504,735 17,324,603

Members' equity, beginning of period - -


Members' equity, end of period - -

Net unrealized gains and losses, beginning of period - -


Net unrealized gains and losses, end of period - -

Donated capital, beginning of period 270,502 270,502


Donated capital, end of period 15 270,502 270,502

Equity in joint venture, beginning of period - -


Equity in joint venture, end of period - -

Surplus reserves, beginning of period 7,310 7,310


Surplus reserves, end of period 7,310 7,310

Retained earnings (deficit), beginning of period (69,649,583) (55,823,298)

Additions (deductions) 15,725,331 (13,826,285)

Retained earnings (deficit), end of period (53,924,252) (69,649,583)

Treasury shares, beginning of period - -


Treasury shares, end of period - -

TOTAL EQUITY (7,152,650) (13,111,627)

Note 2012 2011

TOTAL

241





In thousand pesos

Government equity, beginning of period 1,970,125 1,970,125 - - - - - -

Additions (deductions) - - - - - - - -

Government equity, end of period 1,970,125 1,970,125 - - - - - - - -

Share capital, beginning of period - - 299,750 299,750 69,004 69,004 7,400 7,400


Share capital, end of period - - 299,750 299,750 69,004 69,004 7,400 7,400

Share premium, beginning of period

Additions (deductions)

Share premium, end of period

Deposit on subscription, beginning of period - - - - - - - -


Deposit on subscription, end of period - - - - - - - -

Restricted capital, beginning of period - - - - - - - -


Restricted capital, end of period - - - - - - - -

Appraisal increment, beginning of period - - - - - - - -


Appraisal increment, end of period - - - - - - - -

Members' equity, beginning of period


Members' equity, end of period

Net unrealized gains and losses, beginning of period


Net unrealized gains and losses, end of period

Donated capital, beginning of period - - - - - - - -


Donated capital, end of period - - - - - - - -

Equity in joint venture, beginning of period


Equity in joint venture, end of period

Surplus reserves, beginning of period - - - - - - - -


Surplus reserves, end of period - - - - - - - -

Retained earnings (deficit), beginning of period (1,099,704) (1,107,201) (1,997,364) (1,297,876) (44,251) (51,596) 7,265 4,627

Additions (deductions) 2,158 7,497 377,132 (699,488) (2,663) 7,345 883 2,638

Retained earnings (deficit), end of period (1,097,546) (1,099,704) (1,620,232) (1,997,364) (46,914) (44,251) 8,148 7,265

Treasury shares, beginning of period - - - - - - - -


Treasury shares, end of period - - - - - - - -

TOTAL EQUITY 872,579 870,421 (1,320,482) (1,697,614) 22,090 24,753 15,548 14,665

20112012 2012 2012 20122011 2011 2011


242

mailto:=@sum('changes%20in%20equity'!I23:I24)+'changes%20in%20equity'!I39




















In thousand pesos

Government equity, beginning of period


Government equity, end of period

Share capital, beginning of period


Share capital, end of period




Deposit on subscription, beginning of period


Deposit on subscription, end of period

Restricted capital, beginning of period


Restricted capital, end of period

Appraisal increment, beginning of period


Appraisal increment, end of period







Donated capital, beginning of period


Donated capital, end of period




Surplus reserves, beginning of period


Surplus reserves, end of period

Retained earnings (deficit), beginning of period


Retained earnings (deficit), end of period

Treasury shares, beginning of period


Treasury shares, end of period

TOTAL EQUITY

2011

(As Restated)

83,009 83,009 - - - - - -

- - - - - - - -

83,009 - 83,009 - - - - - - - - - -

- - 5,000,000 5,000,000 500,000 500,000 - -

- - - - - - - -

- - 5,000,000 5,000,000 500,000 500,000 - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - 17,160,090 17,473,996 - -

- - - - (10,819,626) (313,906) - -

- - - - 6,340,464 17,160,090 - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

151,817 151,179 (137,060,499) (121,310,819) 61,655 93,501 83,117,881 74,642,034

215,671 638 (5,395,190) (15,749,680) 5,247,136 (31,846) 18,184,873 8,475,847

367,488 151,817 (142,455,689) (137,060,499) 5,308,791 61,655 101,302,754 83,117,881

- - - - - - - -

- - - - - - - -

- - - - - - - -

450,497 234,826 (137,455,689) (132,060,499) 12,149,255 17,721,745 101,302,754 83,117,881

20112012 2012 2012 20122011 2011

NDA NFA FTI NIA-GF

243





















In thousand pesos








































TOTAL EQUITY

1,497,352 1,497,352 18,040,452 18,364,174 - - 77,564 77,564

(197,416) - 1,230,950 (323,722) - - - -

1,299,936 - 1,497,352 19,271,402 18,040,452 - - 77,564 77,564

- - 5,559,192 5,559,192 10,000 10,000 81,626 81,626

- - - - - - - -

- - 5,559,192 5,559,192 10,000 10,000 81,626 81,626

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

534,152 207,895 (10,638,879) (5,486,457) 820 (937) 22,978 64,342

164,316 326,257 (713,240) (5,152,422) (3,792) 1,757 14,527 (41,364)

698,468 534,152 (11,352,119) (10,638,879) (2,972) 820 37,505 22,978

- - - - - - - -

- - - - - - - -

- - - - - - - -

1,998,404 2,031,504 13,478,475 12,960,765 7,028 10,820 196,695 182,168

20112012 2012 2012 20122011 2011 2011

NRDCNIA-SF NIA-CF NIACI

244





















In thousand pesos








































TOTAL EQUITY

2011

(As Restated)

- - - - 410,450 410,432 1,161,371 1,156,574

- - - - 74 18 3,942 4,797

- - - - 410,524 410,450 1,165,313 1,161,371

10,000 10,000 125,000 125,000 - - - -

- - - - - - - -

10,000 10,000 125,000 125,000 - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - 144,416 144,416 - - 20,097 20,097

- - - - - - (242) -

- - 144,416 144,416 - - 19,855 20,097

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

418,929 14,285 (125,857) (87,404) 580,089 614,109 505,236 407,382

(2,220) 404,644 15,347 (38,453) 85,121 (34,020) 354,038 97,854

416,709 418,929 (110,510) (125,857) 665,210 580,089 859,274 505,236

- - - - - - - -

- - - - - - - -

- - - - - - - -

426,709 428,929 158,906 143,559 1,075,734 990,539 2,044,442 1,686,704

2012 2012 2012 20122011 2011 2011

PFC PMDC NTA PCA

245





















In thousand pesos








































TOTAL EQUITY

2011 2011


- - 3,816 3,816 125,000 125,000 - -

- - - - - - -

- - 3,816 3,816 125,000 125,000 - -

1,500,406 1,489,906 495,157 495,157 - - 1,120,495 1,120,495

10,000 10,500 - - - - (1) -

1,510,406 1,500,406 495,157 495,157 - - 1,120,494 1,120,495

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - 64,070 64,070 - - - -

- - - - - - - -

- - 64,070 64,070 - - - -

- - 7,310 7,310 - - - -

- - 7,310 7,310 - - - -

(758,171) (573,375) (528,013) (532,655) 703,236 481,900 (3,871,931) (2,328,320)

125,252 (184,796) 4,785 4,642 167,600 221,336 (3,131,597) (1,543,611)

(632,919) (758,171) (523,228) (528,013) 870,836 703,236 (7,003,528) (3,871,931)

- - - - - - - -

- - - - - - - -

- - - - - - - -

877,487 742,235 47,125 42,340 995,836 828,236 (5,883,034) (2,751,436)

2012 2012 2012 20122011 2011

PFDAPCIC PHILSUCOR QUEDANCOR

246





















In thousand pesos








































TOTAL EQUITY

2011

(As Restated)

52,754 52,754 - - 467,101 467,101

5,965 - - - - -

58,719 52,754 - - 467,101 467,101

- - 268,517 268,517 - -

- - - -

- - 268,517 268,517 - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - 206,432 206,432 -

- - - - - -

- - 206,432 206,432 - -

- - - - - -

- - - - - -

212,639 228,400 (312,095) (282,469) 470,484 326,157

81,972 (15,761) (5,683) (29,626) (61,095) 144,327

294,611 212,639 (317,778) (312,095) 409,389 470,484

- - - -

- - - - - -

- - - - - -

353,330 265,393 157,171 162,854 876,490 937,585

SRA

2011

BFI (R10) PRRI (R3)

2012 2012 20122011

247

mailto:=@sum('changes in equity'!I23:I24)+'changes in equity'!I39









Cash Flow Statement



In thousand pesos


Cash inflows 42,652,258 41,164,416

Cash outflows 33,779,698 45,534,584

Net cash provided by (used in) operating activities 8,872,560 (4,370,168)


Cash inflows 42,988,185 14,737,313

Cash outflows 28,672,486 12,912,022

Net cash provided by (used in) investing activities 14,315,699 1,825,291


Cash inflows 152,305 12,528,913

Cash outflows 14,984,730 7,379,732

Net cash provided by (used in) financing activities (14,832,425) 5,149,181

Effects of exchange rate changes on cash and cash equivalents (27,237) (7,157)




Note 2012 2011

TOTAL

248


Cash Flow Statement



In thousand pesos


Cash inflows 57,808 48,491 12,429 94,486 11,594 35,151 13,195 21,893

Cash outflows 53,117 42,833 80,599 190,530 23,311 52,877 15,034 17,188

Net cash provided by (used in) operating activities 4,691 5,658 (68,170) (96,044) (11,717) (17,726) (1,839) 4,705


Cash inflows 3,028 2,388 - - 1,015 1,602 - -

Cash outflows 2,047 2,969 4,506 15,523 - - 196 141

Net cash provided by (used in) investing activities 981 (581) (4,506) (15,523) 1,015 1,602 (196) (141)


Cash inflows - - 142,247 61,815 - - - -

Cash outflows - - 133,224 127,345 - - - -

Net cash provided by (used in) financing activities - - 9,023 (65,530) - - - -

Effects of exchange rate changes on cash and cash equivalents - - - - - - - -

Net increase (decrease) in cash and cash equivalents 5,672 5,077 (63,653) (177,097) (10,702) (16,124) (2,035) 4,564

Cash and cash equivalents, beginning of period 179,443 174,366 364,299 541,396 68,715 84,839 25,709 21,145

CASH AND CASH EQUIVALENTS, END OF PERIOD 185,115 179,443 300,646 364,299 58,013 68,715 23,674 25,709


2012 2011 2012 2012 20122011 2011 2011

249


Cash Flow Statement



In thousand pesos


Cash inflows

Cash outflows

Net cash provided by (used in) operating activities


Cash inflows

Cash outflows



Cash inflows

Cash outflows





CASH AND CASH EQUIVALENTS, END OF PERIOD

2011 2011(As Restated) (As Restated)

457,982 517,367 29,633,796 30,577,898 547,764 497,964 - -

497,975 111,378 15,238,511 35,435,856 9,520,066 389,708 - -

(39,993) 405,989 14,395,285 (4,857,958) (8,972,302) 108,256 - -

1,339 727 1,875 724 19,480,835 74,606 22,713,592 14,254,615

6,297 203,705 293,505 540,595 10,187,171 27,733 17,138,029 11,659,287

(4,958) (202,978) (291,630) (539,871) 9,293,664 46,873 5,575,563 2,595,328

- - - 12,425,072 - - - -

- - 14,690,127 7,201,547 - - - -

- - (14,690,127) 5,223,525 - - - -

- - (6,384) 391 - - (17,197) (7,535)

(44,951) 203,011 (592,856) (173,913) 321,362 155,129 5,558,366 2,587,793

586,079 383,068 2,374,518 2,548,431 815,043 659,914 5,875,884 3,288,091

541,128 586,079 1,781,662 2,374,518 1,136,405 815,043 11,434,250 5,875,884

FTI NIA F-101NDA NFA

2012 2012 2012 20122011 2011

250


Cash Flow Statement



In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






624,784 527,044 5,592,979 4,426,938 58,378 64,167 39,571 25,605

382,277 338,295 3,567,759 4,595,999 56,145 64,516 32,459 20,937

242,507 188,749 2,025,220 (169,061) 2,233 (349) 7,112 4,668

- - 9 31 - - - -

116,478 125,128 535,285 187,773 358 86 91 286

(116,478) (125,128) (535,276) (187,742) (358) (86) (91) (286)

1,294 - - - - - - -

- - 110,000 - 205 - - -

1,294 - (110,000) - (205) - - -

- - - - (108) - - -

127,323 63,621 1,379,944 (356,803) 1,562 (435) 7,021 4,382

260,491 196,870 783,860 1,140,663 7,414 7,849 45,701 41,319

387,814 260,491 2,163,804 783,860 8,976 7,414 52,722 45,701

NIACINIA F-158 NIA F-501 NRDC

2012 2012 2012 20122011 2011 2011 2011

251


Cash Flow Statement



In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






2011

(As Restated)

74,303 418,741 97,183 44,759 510,776 303,824 1,475,154 807,376

104,586 339,304 68,492 46,772 489,918 451,323 1,099,556 706,793

(30,283) 79,437 28,691 (2,013) 20,858 (147,499) 375,598 100,583

- - - - 315 134 31,520 11,156

592 764 901 4,766 107,633 10,559 47,849 8,832

(592) (764) (901) (4,766) (107,318) (10,425) (16,329) 2,324

- - - - - - 8,764 42,026

- - 18,818 20,699 - - 25,805 23,237

- - (18,818) (20,699) - - (17,041) 18,789

- - (3,001) - - - - -

(30,875) 78,673 5,971 (27,478) (86,460) (157,924) 342,228 121,696

95,943 17,270 50,007 77,485 156,913 314,837 670,812 549,116

65,068 95,943 55,978 50,007 70,453 156,913 1,013,040 670,812

PFC PMDC NTA PCA

2012 2012 2012 20122011 2011 2011

252


Cash Flow Statement



In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






2011 2011


659,493 370,646 1,078,017 581,948 162,539 78,229 245,121 338,900

459,944 567,927 512,098 475,010 93,589 173,124 307,134 369,701

199,549 (197,281) 565,919 106,938 68,950 (94,895) (62,013) (30,801)

44,915 205,267 3,908 2,767 15,131 50,577 682,102 128,920

3,731 2,763 63,402 77,856 26,974 10 102,134 27,176

41,184 202,504 (59,494) (75,089) (11,843) 50,567 579,968 101,744

- - - - - - - -

- - 6,551 6,904 - - - -

- - (6,551) (6,904) - - - -

- - (547) (13) - - - -

240,733 5,223 499,327 24,932 57,107 (44,328) 517,955 70,943

111,382 106,159 399,128 374,196 428,731 473,059 161,736 90,793

352,115 111,382 898,455 399,128 485,838 428,731 679,691 161,736

PHILSUCOR QUEDANCORPCIC PFDA

20112012 2011 2012 2012 2012

253


Cash Flow Statement



In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






2011(As Restated)

441,703 426,533 89,296 43,748 768,393 912,708

361,436 390,018 37,305 41,298 778,387 713,197

80,267 36,515 51,991 2,450 (9,994) 199,511

8,601 3,799 - - - -

16,873 7,469 2,133 3,352 16,301 5,249

(8,272) (3,670) (2,133) (3,352) (16,301) (5,249)

- - - - - -

- - - - - -

- - - - - -

- - - - - -

71,995 32,845 49,858 (902) (26,295) 194,262

221,560 188,715 394 1,296 780,215 585,953

293,555 221,560 50,252 394 753,920 780,215


2012 2012 20122011 2011

254

255

CLUSTER 5 – AGRICULTURAL AND NATURAL RESOURCES

NOTES TO FINANCIAL STATEMENTS

(All amounts in Thousand Pesos unless otherwise stated)

1. GENERAL INFORMATION

On December 20, 2012, COA Resolution No. 2012-019 was issued revising the Corporate

Government Sector (CGS) structure from three Clusters (A, B and C) to six Clusters (1, 2, 3, 4, 5

and 6), to give way for the seamless implementation of the unified and package audits and to

equitably distribute the audit workload. Government-Owned and Controlled Corporations

(GOCCs) in the National Capital Region are now under the audit, technical and administrative

supervision of the Cluster Directors together with their regional and provincial offices/branches,

except stand-alone GOCCs with offices located in the regions or provinces.

There are 19 GOCCs under the audit jurisdiction of the present Cluster 5 categorized as agricultural

and natural resources, which were formerly under the Clusters A, B and C, details as follows:

From

(Cluster)

Name of GOCC Acronym

1 C Human Settlements Development Corporation HSDC

Subsidiaries

2 C National Agribusiness Corporation NABCOR

3 C Philippine Agricultural Development and Commercial

Corporation

PADCC

4 C ZNAC Rubber Estate Corporation ZREC

5 C National Dairy Authority NDA

6 C National Food Authority NFA

Subsidiary

7 C Food Terminal, Inc. FTI

8 C National Irrigation Administration

C National Irrigation Administration – Corporate Fund NIA – CF (F501)

C National Irrigation Administration – General Fund NIA – GF (F101)

C National Irrigation Administration – Special Fund NIA – SF (F158)

Subsidiary

9 C NIA Consult, Inc. NIACI

10 C Natural Resources Development Corporation NRDC

Subsidiaries

11 C Philippine Forest Corporation PFC

12 C Philippine Mining Development Corporation PMDC

13 C National Tobacco Administration NTA

14 C Philippine Coconut Authority PCA

15 C Philippine Fisheries Development Authority PFDA

16 B Sugar Regulatory Administration SRA

17 B Philippine Sugar Corporation PHILSUCOR

18 A Philippine Crop Insurance Corporation PCIC

19 A Quedan and Rural Credit Guarantee Corporation QUEDANCOR

The 19 GOCCs under Cluster 5 were created either by virtue of an enabling law, such as

presidential decree and republic act, or through registration with the Securities and Exchange

Commission (SEC), summarized as follows:

No. of GOCCs

Presidential Decree 6

Executive Order 3

Republic Act 3

SEC Registered 7

Total 19

256

These corporations mostly hold their principal place of business and operations in Quezon City, as

shown below:

No. of GOCCs

Quezon City 12

Pasig City 4

City of Manila 1

Makati City 1

Taguig City 1

Total 19

Two stand-alone GOCCs namely Bukidnon Forests, Incorporated (BFI) and Philippine Rice

Research Institute (PRRI) with principal offices located in Regions X and III, respectively, were

included in the summarized or consolidated financial statements of this Cluster in compliance with

COA Memorandum No. 2010-026 dated October 11, 2010.

Schedule 1 shows a complete list identifying the parent and its subsidiaries as well as information

regarding each GOCC’s complete address and legal form. In addition, functions of the GOCCs

under Cluster 5 are summarized in Annex 4.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY

INFORMATION

a. Reporting Framework

The GOCCs under the cluster adopted and implemented varied applicable financial reporting

frameworks in their preparation and presentation of financial statements, such as the Philippine

Financial Reporting Standards (PFRS) as adopted by PCIC and QUEDANCOR and partially

adopted by PFDA, while the remaining 18 GOCCs included in the summarized or combined

financial statements adopted the accounting principles generally accepted in the Philippines or

State accounting principles.

b. Basis for consolidation

Last year, the report presented consolidated financial data based on the Annual Audit Reports

(AARs) of 38 GOCCs, which were either issued/transmitted or still under review in the former

Cluster C. For this report, financial data contained herein were based on AARs of 21 GOCCs,

15 of which had been issued or transmitted to the concerned auditee agencies as of September

13, 2013, including BFI and PRRI, the audit jurisdiction over which has been transferred to

Regions X and III per 2008 COA Restructuring. The eight remaining AARs of six GOCCs

namely NFA, NIA (NIA-GF, NIA-SF and NIA-CF), PFC, PCA, PCIC and QUEDANCOR are

still under review in the Cluster or returned to the respective Supervising Auditors/Audit Team

Leaders for revision.

c. Cash and Cash Equivalents

Cash includes cash on hand and cash in banks comprised of current accounts and savings

deposits, both in Philippine peso and foreign currency. Cash equivalents are short-term and

highly liquid investments with short maturities of three months or less from date of acquisition,

which are readily convertible to a known amount of cash and subject to an insignificant risk of

changes in value.

d. Allowance for Doubtful Accounts

Allowance for doubtful accounts is maintained at a level adequate to provide for potential

uncollectible receivables. The level of allowance is based on historical data on collection/write-

off experience, current economic trends, change in customer payment terms and other factors

that may affect the ability to collect receivables. A review/evaluation of the receivables,

designed to identify accounts to be provided with allowance, is performed on a continuous

257

basis during the year. The rates of allowance are approved by respective Board of

Directors/Trustees of the GOCCs.

e. Inventories

Inventories are stated by some corporations at lower of cost or net realizable value. In costing

inventories, four GOCCs [Food Terminal, Inc. (FTI), National Agribusiness Corporation

(NABCOR), National Tobacco Administration (NTA) and Sugar Regulatory Administration

(SRA)], use the first-in-first-out (FIFO) method, four GOCCs [National Dairy Authority

(NDA), Natural Resources Development Corporation (NRDC), Philippine Fisheries

Development Authority (PFDA) and Philippine Rice Research Institute (PRRI)] use the

moving average method prescribed under the NGAS while Philippine Coconut Authority

(PCA) adopted the weighted average method. The lower of cost or net realizable value is

adopted by National Irrigation Administration – Corporate Fund (NIA-CF) (Fund 501) in

recording its inventories.

The inventories of National Food Authority (NFA) are recognized at cost. This cost includes

the basic procurement cost plus direct incidental expenses that are identified with each cereal

type at the time they are incurred. However, the customs duties on imported rice/corn which

are fully funded by the National Government are not included in the cost in accordance with

Philippine Accounting Standard No. 2 which provides that only import duties and other taxes

which are subsequently recoverable by the entity from taxing authorities are included in the

cost of the item. Stock issuances are valued based on last month's average unit cost.

In the event that there is obsolescence or impairment of inventories, the cost of inventories is

written down to its net realizable value by recognizing impairment loss and allowance for

obsolescence.

f. Investments

Investments with maturities of one year or less from balance sheet date are included in current

assets, and those with maturities greater than 12 months after the balance sheet date are

classified as non-current assets. Investments in bonds are recorded at premium or discount,

which is amortized on a straight-line method over the life of the bonds. Interest income

pertaining thereto and that of the investments in treasury bills are recognized on an accrual

basis.

Investments in subsidiaries of Human Settlements Development Corporation (HSDC),

NABCOR and NRDC are recorded under the equity method.

g. Property, Plant and Equipment

Property, plant and equipment (PPE) are carried at cost less accumulated depreciation and any

impairment in value. Cost includes expenditures that are directly attributable to the acquisition

of the items.

Depreciation on assets is calculated using the straight-line method to allocate the cost of the

asset net of residual value of 10 per cent of cost over its estimated useful life as prescribed by

COA Circular 2003-007 dated December 11, 2003 which provides the policies and guidelines

on the computation of depreciation of government property and on their useful lives.

Depreciation starts on the second month after purchase.

Major repairs/renovations are depreciated over the remaining useful life of the related asset

while regular maintenance, repair and minor replacements are charged against Maintenance

and Other Operating Expenses (MOOE) as these are incurred.

PPE acquired by externally-funded projects are recorded as Asset Held in Trust while PPE not

used in operations and those for disposal are reclassified as Other Assets.

The construction period theory is applied in the costing of assets of NIA General Fund (Fund

101) and Comprehensive Agrarian Reform Program (CARP) assets under construction by NIA

recorded in the books of NIA Special Fund (Fund 158). Related expenses incurred during the

258

construction period are capitalized while those incurred after construction of the project form

part of the operating cost.

h. Income and Expenses

The accrual method of accounting for income and expenses is adopted by 19

GOCCs, while NTA, PRRI and QUEDANCOR used modified accrual and

NIA Corporate Fund adopted the modified cash basis. Under the accrual

method, all expenses and income are recognized when incurred and earned.

Income is taken up on a modified cash basis by NIA Corporate Fund, i.e.

Income from space and facilities rental, bid documents and management fee

are taken up on a cash basis, whereas income from operations is taken up on an

accrual basis. Collections-in-kind (palay, corn, etc.) are recognized as income

upon receipt of cash at the time of sale of the palay, corn, etc. inventory

received from the farmers.

i. Foreign Currency Transactions

Transactions in foreign currencies are recorded in Philippine Peso based on the Bangko Sentral

ng Pilipinas (BSP) rate of exchange at the time of the transaction. At the end of the year, these

are revalued using the closing rate per Reference Exchange Rate Bulletin of the BSP at balance

sheet date. Gains or losses arising from changes in foreign currency exchange rates were

included in the computation of the annual profit and loss.


This account, composed of cash in banks and cash in the hands of officers and employees, is broken

down as follows:

Particulars 2012 2011

(As restated)

Cash in bank 20,697,523

13,015,038

Cash equivalent 1,866,720

1,239,120

Cash - collecting officers 135,719

131,412

Cash - disbursing officers 32,761

19,032

Working fund 18,586

18,674

Cash in National Treasury 18,210

14,283

Payroll fund 14,184

19,390

Petty cash fund 5,799

5,896

Cash in vault 3,072

1,132

Cash and Cash Equivalents 22,792,574 14,463,977

A total of P2.446 billion Cash in Bank is restricted for use, of which P1.375 billion are held in trust

by NFA. The remaining balance of P1.071 billion is restricted for the following projects, programs

and activities: (a) PFDA (P767.506 million) - Department of Agriculture (DA) and Bureau of

Fisheries and Aquatic Resources (BFAR) Projects, (b) NIA Special Fund (P293.111 million),

representing funds received from the Department of Agrarian Reform (DAR) for the

implementation of Agrarian Reform Infrastructure Support Project (ARISP), Agrarian Reform

Communities Development Project (ARCDP) and Mindanao Sustainable Settlement Area

Development (MINSSAD) projects; and (c) NRDC (P10 million) as Fund Manager for the

Environment Impact Assessment Review Committee Fund Project (EIARCFP).

Cash equivalent includes investment made by FTI with the Land Bank of the Philippines (LBP) and

Philippine National Bank (PNB) amounting to P1.012 billion and P117.349 million, respectively. It

also includes time deposit made by PHILSUCOR amounting to P559.501 million and investment in

marketable securities by PCIC amounting to P26.211 million.

259


This account is composed of:


(As restated)

Investments in treasury bills/notes 31,280 605,615

Others 85,082 93,295

Short Term Investments 116,362 698,910

Investments in treasury bills/notes represent investment made by SRA wherein the amount of

P21.077 million is held in escrow for payment of National Sugar Trading Corporation

(NASUTRA) payables. Other short term investments pertain to investment of PHILSUCOR

and SRA amounting to P85.000 million and P0.082 million, respectively.

5. RECEIVABLES (net)



(As restated)

Accounts receivable 23,690,568

18,488,329

Due from GOCCs 14,045,022

14,029,624

Accounts receivable - trade related 5,830,657

5,781,605

Due from NGAs 1,064,568

953,884

Due from NGOs/POs 853,415

778,885

Interests receivable 820,343

854,194

Due from LGUs 701,964

609,506

Deficiency claims receivable 585,587 570,606

Due from other funds 508,899

328,944

Due from regional offices/staff bureaus/branch offices 507,254

584,370

Subrogated receivables (guarantee claims) 497,239 507,076

Loans receivable – others 385,534

306,064

Due from officers and employees 196,096

309,090

Receivables - disallowances/charges 178,220

204,091

Loans receivable 171,892

263,813

Premiums receivable 152,034 198,274

Loans receivable – GOCCs 125,791

125,791

Notes receivable 97,488

97,199

Due from operating units 95,874

74,942

Due from other government agencies 69,693

54,083

Advances to officers and employees 48,534

37,476

Due from central office/home office 43,203

43,737

Assigned receivables 17,123 20,213

Due from subsidiaries/affiliates 15,721

15,721

Miscellaneous 13,895

12,549

Installment receivables 8,630 11,655

Dividend receivable 1,611

1,611

Non-trade receivables 715

695

Project cash advances 89

89

Unrecorded payments at the field offices (17,033) (22,009)

Due from national treasury (84,535)

(84,535)

Others 1,200,359

1,037,745

Allowance for doubtful accounts (7,925,893)

(6,719,173)

Receivables (net) 43,900,557 39,476,144

260

Accounts receivable consists of trade receivables due from the various clients/customers doing

business with the corporations under the audit jurisdiction of Cluster 5 which were made part of

this report.

Of the total accounts receivable of P23.691 billion, 72.82 per cent or P17.252 billion represents

trade/business receivables by NIA from irrigation service fees, current installment receivables

from amortization of irrigation pumps, communal irrigation systems and motorcycles.

Accounts receivable of FTI includes receivable from Ayala Land, Inc. amounting to P4.866

billion, representing balance of the sale price of the FTI property amounting to P24.331 billion

against payments made, which is payable within one year from the date of first payment, October

28, 2012, as follows:

Sale of 74 hectares FTI’s property exclusive of VAT P24,331,389

Less: Total payments made (exclusive of VAT) 19,465,111

Balance P4,866,278

Receivables from Ayala Land, Inc. will be remitted to the Bureau of the Treasury (BTr) upon

collection.

Due from Government-Owned or Controlled Corporations (GOCCs) consists mainly of receivable

of NIA – Corporate Fund (Fund 501) amounting to P13.631 billion, which includes receivable

from National Power Corporation relative to the sale of electrical energy generated by the

Casecnan Multi-Purpose Irrigation and Power Project per Power Purchase Agreement dated June

30, 1995 and Supplemental Agreement dated September 25, 2003. The account also includes

receivable of NFA and HSDC from various GOCCs amounting to P211.966 million and P155.542

million, respectively.

Due from NGAs includes receivable of NIA – Corporate Fund (Fund 501) in the amount of

P820.131 million representing releases to the Department of Public Works and Highways (DPWH)

District Offices for the construction/rehabilitation of farm to market roads out of the National

Development Company (NDC) loan proceeds. It also includes advances totaling P146.407 million

extended by NIA – General Fund (Fund 101) to the Department of Environment and Natural

Resources (DENR) and Department of Health (DOH) as partners in the implementation of the

irrigation component under Environment and Health per Loan Package for Southern Philippines

Irrigation Sector Project (SPISP) extended by Asian Development Bank (ADB).

Due from Non-Governmental Organizations/Peoples’ Organizations (NGOs/POs) consists mainly

of funds released by PFC, ZREC and NABCOR to various NGOs/POs amounting to P426.205

million, P331 million and P93.287 million, respectively, for the implementation of various projects

of proponents/legislators out of the latter’s Priority Development Assistance Fund (PDAF) and

other livelihood projects.

Deficiency claims receivable arises when the value of the property foreclosed/acquired is not

sufficient to cover the borrowers’ outstanding loan balance as of the date of issuance of certificate

of sale by the sheriff in favor of QUEDANCOR.

Subrogated receivables represent claims against defaulting borrowers on account of guarantees

paid by QUEDANCOR to the lending bank.

261

6. INVENTORIES (net)

This account includes:

Particulars 2012

2011

(As restated)


Raw materials inventory 7,129,750 9,568,451

Agricultural supplies inventory 177,381 106,032

Work-in-process inventory 92,462 160,936


Finished goods inventory 43,286 37,973

Confiscated/abandoned/seized goods inventory 29,374 29,002


Spare parts inventory 8,988 9,125

Supplies and materials inventory 8,240 8,237

Gasoline, oil and lubricants inventory 5,731 5,463

Crops and fruits inventory 5,657 3,452

Accountable forms inventory 3,294 3,352

Rubber trees 2,917 2,917

Semi-expendable 2,770 2,331

Construction materials inventory 2,089 1,767

Other agricultural, fishery and forestry products inventory 1,040 5,661

Medical, dental and laboratory supplies inventory 846 544

Drugs and medicines inventory 567 567

Textbooks and instructional materials inventory - 3

Livestock inventory -

56,151

Others 728,670

1,115,385

Allowance for obsolescence (352,351)

(437,268)

Inventories (net) 18,289,848 31,615,638

Merchandise inventory consists primarily of the rice inventory of NFA amounting to P10.259

billion while raw materials inventory pertains mainly to the palay inventory of NFA costing

P7.079 billion.

Confiscated/abandoned/seized goods inventory represents the cost of donated confiscated products

per Deeds of Donation from the Department of Environment and Natural Resources (DENR) to

NRDC. Fifty per cent of the proceeds from the sale of inventories are reverted to DENR in cash

and in kind.


This account is broken down as follows:


(As Restated)

Advances to contractors 1,347,354

958,780

Prepaid rent 15,843

16,141

Deferred charges 9,130

10,015

Prepaid taxes 6,067

3,888

Deferred tax assets 4,114

4,361

Prepaid insurance 2,774

2,933

Deposit on letters of credit 197

118

Prepaid interest 4

2

Prepaid subscriptions 3

4

Other prepaid expenses 20,700

30,441

Others 12,028

8,757

Prepayments and Deferred Charges 1,418,214 1,035,440

262

Advances to contractors include mobilization costs for various projects undertaken under NIA

General Fund, NIA Corporate Fund, NIA Special Fund and PFDA amounting to P1.218 billion,

P83.074 million, P24.514 million and P15.100 million, respectively. The advance payment will be

deducted from periodic progress payments to the contractors.


This account consists of:


(As Restated)

Inventory in transit 129,215 148,267


Input tax 4,396 3,800

Miscellaneous assets and deferred charges 1,739 1,739

Deposit on containers 100 38

Other inventory 150,371 144,826

Others (211,530) (210,357)

Other Current Assets 155,614 172,299

Inventory in transit pertains to the amount carried in the books of NFA while other

inventory consists of balances reflected in the books of NFA and PCIC amounting to

P149.816 million and P0.555 million, respectively.

9. LONG-TERM RECEIVABLES (net)

This account is comprised of:


(As Restated)

Loans receivable 704,579

679,438

Active programs receivable 371,436 461,970

Premiums receivable 315,665 315,665

Due from NGAs 140,720

140,720

Guarantee receivable 60,107 60,107

Installment receivable 7,834 1,303

Due from LGUs 7,105 7,109

Receivables - disallowances/charges 2,503

2,490

Others 93,837

92,118

Allowance for doubtful accounts - long term (619,627)

(619,627)

Long-Term Receivables (net) 1,084,159 1,141,293

Loans receivable includes P606.378 million recorded in the books of PHILSUCOR. The amount

represents portion of the loans receivable of PNB that were transferred to PHILSUCOR on

February 15, 1984 pursuant to the Memorandum of Agreement (MOA) between PNB and

PHILSUCOR. It also includes the restructured loans granted to Gamboa Hermanos Farmworkers

Multi-Purpose Cooperative and First Farmers Holding Corporation that bear interest of nine per

cent and 10 per cent per annum payable over an extended period of 10 and five years, respectively

and accrued interest on time deposits. Also included in this account is a receivable of NABCOR

from its subsidiaries totaling P98.201 million.

263

Active programs receivable represents program receivables of QUEDANCOR that will mature

beyond December 31, 2013.

Premiums receivable of PCIC pertains to the cumulative premium subsidy arrearages from the

National Government (NG) when RA No. 8715 was enacted in 1995. This consists of

unappropriated and/or unreleased government premium subsidy for policies written for the period

covered May 1, 1981 up to 1995. The receivable was programmed for payment by the NG within

a period of 10 years from 1996. The account also includes unpaid Government Premium Share

from 1996 to 2011.

10. LONG-TERM INVESTMENTS (net)



(As Restated)

Sinking fund 6,665,089

5,929,437

Investments in stocks 729,410

729,410

Investments in joint ventures/subsidiaries/OUs 485,141

493,003

Investments in stocks and bonds 418,937

419,937

Investments in bonds 395,076

423,802

Other investments and marketable securities 80,325

85,275

Others 156,366

156,366

Allowance for decline in value of investments (222,259)

(222,259)

Long-Term Investments (net) 8,708,085 8,014,971

An irrevocable sinking fund was set up by PHILSUCOR for the redemption of the bonds issued to

PNB pursuant to the Trust Agreement entered into by and between PNB and PHILSUCOR on

December 5, 1991. A deposit of P220 million on December 19, 1991 initially constitutes the trust

fund. Additional deposits and earnings also form part of the fund. The Agreement provides that

no disbursement/s may be made from the fund until the sugar bonds shall have been retired and all

related liabilities shall have been paid. As of December 31, 2012, a total of P5.138 billion

constitutes the sinking fund. Also included in this account is the provision of sinking fund for long

term bonds of NFA amounting to P1.527 billion.

Investments in stocks includes the amount of P501.997 million recognized in the books of NFA

pursuant to Section 8 of PD No. 1770 dated January 14, 1981, which provides that the investments

and loans as well as related obligations incurred by HSDC in the FTI shall be transferred to the

NFA. This account also includes investment of NRDC with BFI and PMDC amounting to P160

million and P55 million, respectively. The investment in BFI pertains to the net transfer value of

assets consisting of Philippine cash contributions per Deed of Assignment between NRDC and BFI

dated July 24, 1992 amounting to P125 million and the share of the Philippine Government in the

Exchange of Notes between the Governments of New Zealand and the Philippines amounting to

P35 million. Investment in PMDC pertains to ownership of NRDC in the equity of PMDC

equivalent to 44 per cent.

Investment in joint ventures/subsidiaries/OUs consists mainly of NABCOR’s investment in 17

Post Harvest Processing and Trading Centers (PHPTCs) amounting to P484.176 million and

investment in joint venture made by PADCC with Harty Philippines, Incorporated amounting to

P0.965 million in October 2003, covering projects to be implemented at the Floridablanca National

Agricultural School (FNAS) 30-hectare usufruct area. Both parties have a 50:50 per cent sharing

on the joint venture. The pilot projects were mushroom, hydrophonics and tilapia production. The

joint venture ceased operations in October 2005.

264

Investment in bonds includes investments made by PCIC with LBP representing Subordinated

Notes amounting to P200 million at 7.25 per cent interest rate which will mature on June 9, 2019

and P94.625 million LBP Bonds, with term of 5.45 years at 5.605 per cent interest rate which will

mature on January 27, 2016; BTr Bonds of P100 million with term of 10 years at 7.375 per cent

interest rate which will mature on March 3, 2021.

11. PROPERTY, PLANT AND EQUIPMENT (net)



(As Restated)

Construction in progress (CIP) 82,862,521

69,296,289


Buildings 5,347,847

5,748,431

Machineries and equipment 4,080,090

4,696,583

Public infrastructure (irrigations, canals and laterals) 4,044,338

3,408,829

Office equipment, furniture and fixtures 1,367,252

1,371,349

Other property, plant and equipment 988,438

981,443

Transportation equipment 895,770

886,558

Leasehold improvements 162,083

161,230

Accumulated depreciation (19,240,259)

(17,647,266)

Property, Plant and Equipment (net) 130,549,888 130,859,532

Construction in progress pertains mainly of the following:

a. Cost of ongoing irrigation projects of NIA amounting to P74.325 billion recorded under the

General Fund, which consists of irrigation canals and laterals, artesian wells and reservoirs,

and other public infrastructures funded by foreign borrowings and by the National

Government. This account is composed of the direct labor, direct materials, overhead, land,

project contracts cost, equipment and consultancy cost in the implementation of various

projects. Various completed projects were still included in this account balance pending the

completion of the documentary requirements for the transfer cost of CIP to the proper PPE

accounts.

b. Cost of CARP projects released by DAR to NIA consisting of ongoing irrigation canals and

laterals recorded under Special Fund valued at P1.172 billion.

c. Cost of projects implemented out of the project funds directly released to NIA by the

Department of Budget and Management amounting to P6.174 billion recorded under the

Corporate Fund.

Land and land improvements consists mainly of the following:

a. Cost of completed irrigation projects such as canals, laterals, dams and other irrigation

facilities funded by foreign borrowings and by the National Government which were recorded

in the books of NIA – General Fund (Fund 101, 102, 161 and 171) amounting to P17.406

billion.

b. Cost of irrigation canals and laterals constructed under CARP, Agrarian Reform Communities

Development Project (ARCDP), Agrarian Reform Infrastructure Support Project (ARISP) -

ARISP I and ARISP II recorded in the books of NIA – Special Fund (Fund 158) amounting to

P713.075 million.

265

c. Cost of completed irrigation projects amounting to P24.157 billion recorded under NIA –

Corporate Fund (Fund 501) which had generally redounded to the benefit of the farmers in

terms of serviced areas. These also include those funded out of appropriations from the

National Government through the DPWH and the Department of Agriculture (DA) in 1990 up

to 1996.

d. Remaining balance of Appraisal Capital amounting to P6.340 billion representing appraisal

increase on FTI property booked up in 2009 based on Valencia appraisal in 1996 where land

was appraised at P15,000/square meter.

e. Includes the amount of P742.761 million and P281.248 million carried in the books of NFA

and PRRI, respectively.

The decrease in land and land improvements account by P11.914 billion is brought about mainly

by the sale of land by FTI to Ayala Land, Inc. (ALI) containing an area of 74 hectares, reducing

FTI’s total land area to 45.92 hectares from the original area of 119.92 hectares. This land area

includes the 11.80 hectares, which FTI grants usufruct to the City of Taguig per Memorandum of

Agreement dated August 4, 2004, and 4.20 hectares Dacion en Pago of NFA-Food Development

Center. The usufruct shall be in effect for 25 years and renewable for another 25 years subject to

such terms and conditions as FTI and the City of Taguig shall see fit to impose.

Buildings and properties included in the 74 hectares FTI land which was sold to ALI amounting to

P634.489 million were likewise dropped from the books and recorded as deductions from the

Extraordinary Income from Sale of Property lumped under Miscellaneous Income.

Included in Buildings account are the cost of buildings recorded in the books of NFA, NIA

Corporate Fund, PRRI, PCA and PFDA amounting to P2.200 billion, P1.207 billion, P642.473

million, P240.585 million and P192.562 million, respectively.

Machineries and equipment consists mainly of the balances recorded in the books of NFA, NIA

General Fund, NIA Corporate Fund, SRA and PRRI amounting to P1.229 billion, P945.604

million, P971.617 million, P172.130 million and P198.311 million, respectively, consisting of

machineries, agricultural, fishery and forestry equipment, construction and heavy equipment,

technical and scientific equipment and medical, dental and laboratory equipment.

Public infrastructure (irrigations, canals and laterals) pertains to completed projects recorded in the

books of NIA Corporate Fund and NIA Special Fund amounting to P3.809 billion and P235.602





(As Restated)

Others/contingent assets 556,708

531,214

Acquired assets 417,848

337,029

Forest/tree plantation 180,030 174,210

Breeding stocks 176,695

37,680

Restricted funds/assets 146,137

142,981

Assets held in trust 90,912

90,912

Other non-current assets 46,337

46,200

Garnished/foreclosed assets 28,126 122,746

Items in transit 16,359

16,359

Other receivables 12,745

7,910

Deferred charges 6,868

5,137

COA disallowances 6,506

6,506

Work/other animals 4,228

925

Unserviceable assets 2,190

2,212

Guaranty deposits 741

818

Other assets 2,322,351

1,508,456

266


(As Restated)

Allowance for doubtful accounts, depreciation, valuation or

losses (312,136) (312,075)

Other Non-Current Assets 3,702,645 2,719,220

Other assets of P2.322 billion include PCA’s trust assets – Coconut Industry Stabilization Fund

(CISF) amounting to P710.429 million which had been inactive for more than 10 years, thus the

PCA Management had already requested from the Commission on Audit for the write-off of the

account balances in the CISF books, based on the following reasons:

The assets of the CISF, except for a high-yield cash deposit at Land Bank of the Philippines (LBP)

amounting to P0.489 million as of December 31, 2012, comprised of penalties for late remittances

and non-remittances of levy deficiencies and intra-fund accounts in the amount of P0.206 million,

have been inactive for more than 10 years. These penalties are still under protest by the oil millers

and until such time proper authorities resolve these, said amount is recorded as a memorandum

entry. However, since the lifting of the levy on August 28, 1982, the purpose of the fund was

discontinued and no financial transactions transpired since then.

PCA Management has analyzed/evaluated the final disposition of the CISF accounts in the Trial

Balance, premised on the reason that persons involved in the collection and management of the

fund had either retired or were already deceased, with no proper turnover of accountabilities and

necessary records. Based on the results of said evaluation/analysis and due to lack/unavailability

of supporting documents which the present accounting personnel could rely on, proper

adjusting/closing entries shall be made following the provisions of COA Circular No. 97-001 dated

February 5, 1997, Re: Guidelines on the proper disposition/closure of dormant funds and/or

accounts of National Government Agencies.

Others/contingent assets include the uncollected matured placements of Human Settlements

Development Corporation (HSDC) amounting to P50.817 million from Trustee with cases to

recover these accounts being handled by the Office of the Government Corporate Counsel (OGCC)

and still pending in various courts. It also includes Cash-Inter-agency-Transferred amounting to

P40.598 million which represents cash advances granted by HSDC to various

agencies/corporations and regions for the implementation of the Rural Bliss Program, Special Bliss

Program and Shelter/Livelihood Project Operations. The settlement of the cash advances is

doubtful since these were non-moving for several years and documents to support them could no

longer be located, hence, a 100 per cent allowance was provided pursuant to Board Resolution No.

2003-034.

Likewise, contingent assets include renovation/construction works done by NRDC amounting to

P88.223 million for various buildings not owned or used by NRDC, including the L & S Building

in Manila, Mt. Arayat National Park in Pampanga, training centers in Quezon City and Nueva

Ecija and other buildings located in Tarlac and Pampanga.

Acquired assets account represents mortgages subsequently foreclosed by QUEDANCOR from

defaulting borrowers. The foreclosed properties consist of several real and personal properties of

borrowers under the Intensified Rice Production Program (IRPP), Livelihood Financing for

Employees Program (LIFE), Agri-Aqua and Production (CAMP), Livelihood Aqua-Marine

Productivity (LAMP), Joint Agribusiness Venture (JAV), Fisherfolk Integrated Livelihood

Program (FILP), Barangay Marketing Center (BMC), Credit Guarantee Program (CGP), Rice and

Corn Based Financing System (RCBFS) and the GMA-CARES Programs.

267



Particulars 2012

2011

(As Restated)

Notes payable 28,782,773 34,632,280

Due to national treasury 21,453,283 15,859,454

Due to other NGAs 18,807,556 18,456,397

Accounts payable 5,768,139 10,987,226

Loans payable – domestic 4,585,298 4,302,795

Interest payable 2,024,491 2,775,855

Accrued expenses payable 1,731,080 83,349


Due to other funds 470,665 322,958

Due to other GOCCs 396,732 511,440

Due to BIR 377,332 283,116

Due to LGUs 341,045 84,007

Due to regional/staff bureaus/branch offices 222,140 222,140

Due to central office/home office 220,017

399,422

Due to officers and employees 197,537

214,734

Performance/bidders/bail bonds payable 164,937

730,889

Due to GSIS 106,397

110,922

Due to retired/separated employees 17,242

17,863

Customers' deposits payable 11,050

7,905

Due to Pag-IBIG 8,343

7,206

Output tax payable 8,272

7,128

Due to PhilHealth 7,428

8,310

Contractor's security deposits 7,144

2,105

Due to operating units 5,142 1,844

Advances from clients 3,679

1,559

Income tax payable 834

834

Funds held in trust 479

479

Tax refunds payable 89

133

Trade and Non-Trade Payables 86,339,331 90,609,151

Notes payable pertains mainly to the short-term credit lines availed by the NFA from different

banks to finance the rice importation activities of the agency amounting to P28.710 billion.

Due to National Treasury includes the P20.411 billion liability of NFA which consists primarily of

guarantee fees payable to the Bureau of the Treasury (BTr) in the amount of P3.693 billion and

advances made by the BTr for the settlement of NFA’s short-term loans through net lending

program amounting to P16 billion and proceeds of USPL 480 rice valued at P638 million. This

account also includes the liability of PFDA and NIA Corporate Fund to the National Treasury

amounting to P427.858 million and P543.872 million, respectively.

Due to other NGAs consists mainly of the liability of NIA Corporate Fund to the BTr in the

amount of P13.134 billion representing advances made to the CE Casecnan Water and Energy

Company, Inc. for Guaranteed and Excess Energy delivery fee per Amended and Restated

Casecnan Project Agreement dated June 26, 1995. It also includes trust receipts from national

government agencies (i.e., DA and DPWH) to finance specific projects or to pay specific

obligations, subject to liquidation to the source agencies. This account also includes liability to

other NGAs of NABCOR, NFA, PFDA, NDA and ZREC amounting to P2.185 billion, P953.328

million, P782.960 million, P672.218 million and P331 million, respectively.

268

Accounts payable includes liability of NIA Corporate Fund to various creditors, who are either

foreign or local contractors, on their project accomplishments, and to suppliers for the delivery of

goods in the amount of P3.748 billion. This account also includes NFA’s liability to farmers and

private contractors amounting to P677.420 million. The books of accounts of NIA Corporate Fund

and PCA also reported the amount of P483.106 million and P281.305 million respectively, as

balances of accounts payable as of December 31, 2012.

Loans payable – domestic pertains mainly to the current portion of the long-term debt of

QUEDANCOR amounting to P4.585 billion which includes loan extended by the Department of

Agriculture (DA).

Interest payable includes the P1.191 billion and P737.655 million accrued interest recognized by

NFA and QUEDANCOR, respectively, on their loans/notes payable to various banks.

Accrued expenses payable represents mainly the balance recorded in the books of accounts of

QUEDANCOR amounting to P1.717 billion.

Guaranty deposits payable consists of 10 per cent retention fee due to contractors which are

currently retained by the agency and rental deposits for leasing operations.




(As Restated)

Loans payable - domestic 121,152,817

123,313,484

Bonds payable - domestic 2,638,505 2,638,506

Notes payable 981,884

718,592

Loans payable - foreign 655,680

756,165

Loans and Advances Payable 125,428,886 127,426,747

Loans payable – domestic consists primarily of the loans availed by the NFA from various banks

amounting to P109.132 billion which will mature from 2011 to 2021. It also includes domestic

loans of NIA Corporate Fund in the amount of P6.360 billion payable to the BTr representing

payments made by the BTr to lending banks in favor of NIA. The BTr periodically forwards

notices of payments to NIA, which serve as basis of the latter in the recording of advances made

by the former. Most of these payments cover only the interest incurred on loans. It also includes

loans availed by NIA Corporate Fund from the National Development Company (NDC)

amounting to P4.875 billion and loan availed by QUEDANCOR from Department of Agriculture

(DA) with outstanding balance of P602.218 million as of December 31, 2012.

Bonds payable – domestic represents bonds issued by PHILSUCOR in accordance with PD No.

1890 and as authorized by the Central Bank, it floated on February 15, 1984 bonds totaling P3

billion. The bonds, which are fully and unconditionally guaranteed by the then Philippine Sugar

Commission as to principal and interest, bear a four per cent interest per annum and are payable

within 30 years. The bonds were issued to PNB in consideration for the transfer to PHILSUCOR

of the P3 billion accounts of the various sugar mill corporations with PNB.

Notes payable consists of loans granted to NABCOR by the Philippine Deposit Insurance

Corporation (PDIC), HSDC and Department of Agrarian Reform (DAR) with balances amounting

to P968.171 million, P8.322 million and P5.390 million, respectively. On September 30, 2001,

PNB assigned NABCOR’s loan to PDIC by way of dacion, value dated July 31, 2002, amounting

to P968.171 million, P696.457 million of which pertains to the principal and P271.714 million

represents interest. The loan consists mainly of letters of credit for the importation of cattle drawn

from the credit line of the Corporation by its subsidiary, the Philippine Genetics, Inc. (PGI).

269

Loans payable – foreign represents foreign loans availed by NFA, NIA Corporate Fund and PFDA

amounting to P336.633 million, P271.254 million and P47.793 million, respectively. The foreign

loan of NFA consists of the 1995 Japanese Rice Loan amounting to Y541.355 million, at two per

cent per annum on the 1st to 10

th year and three per cent per annum from 11

th to 30

th year (with 10

years grace period) annual installments of Y27,067.74 starting July 31, 2006 to July 31, 2005; and

the 1996 USPL 480 at three per cent per annum for the 1st to 5

th year and four per cent per annum

for the 6th

to 20th

year (with a four year grace period) annual installments of $312 million. On the

other hand, the foreign loan of NIA Corporate Fund represent loans availed from the Asian

Development Bank (ADB), International Bank for Reconstruction and Development and

International Fund for Agricultural Development with outstanding balances as of December 31,

2012 amounting to P139.040 million, P83.155 million and P49.059 million, respectively. The

foreign loan of PFDA consists of ADB Loan No. 628 PHI, OECF Loan No. PH – P69 and IBRD

Loan No. 2156 PHP with balances amounting to P15.040 million, P15.896 million and P16.857


15. OTHER NON-CURRENT LIABILITIES



(As Restated)

Accrued interest 3,368,359

3,927,053


Due to other NGAs 167,538

150,580

Guarantee deposits payable 8,359

11,330

Due to other funds 953 1,028

Estimated liability for employees benefits 224

1,235

Others 85,520 80,195

Other Non-Current Liabilities 4,159,875 4,300,343

Accrued interest pertains mainly to the interest on bonds of PHILSUCOR amounting to P2.657

billion and interest on notes payable of NABCOR in the amount of P711.570 million.

Due to other GOCCs represents liability of QUEDANCOR to Agricultural Credit Policy Council

(ACPC) and DA – CARAGA – RFU amounting to P523.922 million and P5 million, respectively.

16. DONATED CAPITAL

This account pertains to donations received by BFI and PFDA amounting to P206.432 million and

P64.070 million, respectively. The donated capital of BFI represent grants received from New

Zealand (NZ) consisting of cash and in kind grants (excluding technical assistance and P0.150

million Staff Welfare Fund) in the agreed amount as P101.204 million as determined from Price

Waterhouse Coopers (Joaquin Cunanan & Co) audit report in August 1998, with additional

payments for 1998 and 1999 added (“NZ Contribution”) shall be directed to the NZ Philippines

Sustainable Plantation Forestry Foundation by BFI and/or the Government of the Philippines

should a decision be taken to sell or a substantial part of the assets of or shares in BFI to private

sector owners.

270

17. INCOME AFTER SHARE OF NATIONAL GOVERNMENT


(As Restated)

Business income 19,299,236

27,319,329

Service income 2,907,682

2,844,922

Permits and licenses 432,003

424,712

Gain/premiums 6,949

3,360

Other income 28,546,061

3,658,770

Income After Share of National Government 51,191,931 34,251,093

Business income consists mainly of sales revenue of NFA amounting to P17.688 billion. Also

included are insurance premiums earned by PCIC amounting to P559.725 million and rental

income earned by PFDA and FTI amounting to P305.453 million and P338.875 million,

respectively. The other business income recorded includes income earned from

canteens/restaurants/dormitories/guest houses/cottages/markets/mining – royalty fee/forestry-

confiscated logs and others.

Service income for the current year pertains mainly to service fees, water and management

supervision fees earned by NIA Corporate Fund amounting to P1.351 billion, P480.857 million

and P33.958 million, respectively. It also includes monitoring fees, fines and penalties – service

income and clearance/certification fees earned by SRA amounting to P191.198 million, P98.332

million and P27.293 million, respectively.

Permits and licenses consist mainly of income earned by PCA, NTA, PFDA and SRA for issuing

permits and licenses to their clients.



(As Restated)

Salaries and wages 3,281,063

3,104,502

Other compensation 1,116,414

1,146,089

Personnel benefits contributions 674,049

446,160

Others 455,181 213,995

Personal Services 5,526,707 4,910,746



(As Restated)

Cost of goods sold 22,391,716

33,257,126

Bad debts expense 2,753,006

1,614,093

Depreciation expense 1,563,151

1,359,584

Professional services 902,927

840,279

Losses/loss of assets 820,090

592,231

Supplies and materials expenses 775,868

503,233

Utility expenses 536,943

485,549

Storage expenses 214,731

374,328

Repairs and maintenance 193,099

202,817

Traveling expenses 173,023

140,682

Taxes, insurance premiums and other fees 159,169

250,332

Rewards and other claims 137,595

90,703

Handling 130,937

132,061

Rent expenses 98,769

102,805

Communication expenses 75,838

71,469

Training and scholarship expenses 42,126

19,051

Transportation and delivery expenses 40,550

90,615

271


(As Restated)

Confidential, intelligence, extraordinary and miscellaneous 24,250

26,466

Representation expenses 12,961

15,268

Advertising expenses 11,646

20,927

Printing and binding expenses 5,985

3,585

Insurance benefits 5,129

5,337

Subsidies and donations 3,432

4

Subscription expenses 2,509

1,284

Membership dues and contributions to organizations 1,144

1,179

Awards and indemnities 938

369

Honorarium 494 69

Medical benefits 244

219

Research, Explorations and Development Expenses 226

278

Donations 207

1,768

Survey expenses 123

257

Others 685,146 713,751

Maintenance and Other Operating Expenses 31,763,972 40,917,719

20. FINANCIAL EXPENSES


(As Restated)

Interest expense 7,236,908 6,954,961


Bank charge 2,083 119,005

Others 2,000,519 1,425,044

Financial Expenses 9,375,946 9,231,891

Interest expense pertains mainly to the interest recognized on the loans availed by NFA from

various banks and creditors amounting to P6.467 billion.

Other financial expenses include guarantee fees of P1.419 billion recorded in the books of

accounts of NFA. Also included is the amount of P580.568 million reflected in QUEDANCORs

books.

21. OTHER EXPENSES


(As Restated)

Extraordinary expenses 1,870,212

16,000

Program and projects 254,656

487,054

Others – loss on foreign exchange 27,024 12,364

Dividend expense 2,320

2,383

Loss on sale of palay 231

2,773

Loss on sale of fixed assets/sale of investment 78

66

Loss on retirement of assets - 283

Other Expenses 2,154,521 520,923

272

Extraordinary expenses represent expenses related to the sale of the 74 hectares FTI property

amounting to P1.868 billion and payment made to Trade Agriculture Organization Development,

Inc. for the case against FTI amounting to P1.877 million.

Programs and projects consist mainly of expenses incurred by PCIC representing insurance

benefits or losses/claims paid for the period amounting to P227.104 million. Out of the total

insurance benefit paid, 95 per cent or P215.453 million were claims paid for palay and corn losses.

22. CORPORATE INCOME TAX

As provided for under Section 27(c) of Republic Act No. 8424 (The National Internal Revenue

Code of 1997), PAGCOR together with the Government Service Insurance System (GSIS), Social

Security System (SSS), Philippine Health Insurance Corporation (PHIC) and the Philippine

Charity Sweepstakes Office (PCSO), was exempted from the payment of corporate income tax.

Subsequently, however, under Republic Act No. 9337 dated July 1, 2005, said provision was

amended by excluding PAGCOR from the GOCCs exempted from corporate income tax payment.

As such, all GOCCs except those exempted as mentioned above, are required to pay to the BIR,

the corporate income tax equivalent to 30 per cent of the taxable income.

23. RESTATEMENT OF ACCOUNTS

Of the 21 GOCCs included in this report, there were six GOCCs which the financial statements in

2011 had been restated to reflect the impact of changes in accounting policies and estimates, and

the correction of prior period errors, in accordance with Philippine Accounting Standard No. 8.

Schedule 1

Name of Agency Acronym Principal Office Address Name of Auditor Position Enabling Law/Creation

Cora D. Marquez State Auditor V -

Supervising

Auditor

Anita T. Tormon - Audit

Team Leader

State Auditor IV

Subsidiary:

2 Food Terminal, Inc. FTI FTI Complex, Taguig City Lily T. Manalo State Auditor III,

Designated OIC

SEC Registration No. 35176

dated May 3, 1968,

subsidiary of NFA by virtue

of PD 1770 dated January

14, 1981

3 NIA Elena L. Agustin State Auditor V-

Supervising

Auditor

RA No. 3601 dated June 22,

1963

NIA General Fund Ma. Linda C. Decena State Auditor IV

NIA Corporate Fund Ma. Georgina R. Hernandez State Auditor IV

NIA Special Fund

Subsidiary:

4 NIA Consult, Inc. NIACI NIA Building, EDSA, Quezon

City

Marita A. Yap State Auditor IV SEC Registration No. 95869

dated October 20, 1980

Cluster 5- Agricultural and Natural Resources

Audit Group B- National

Irrigation Administration

Audit Group A- National

Food Authority

NFA

List of Government Owned and Controlled Corporations

1

Corporate Government Sector

PD No. 4 and PD No. 1770

EDSA Quezon City

5th Floor, SRA Buidling,

Visayas Ave., Quezon City

273


5 PCA PCA Bldg, Elliptical Road,

Diliman, Quezon City

Annie L. Recabo State Auditor IV-

OIC Supervising

Auditor

PD No. 232 dated June 30,

1973 as amended by PD No.

1468

6 Sugar Regulatory

Administration

SRA Sugar Center Building, North

Avenue, Diliman, Quezon

City

Thelma C. Quijano State Auditor III,

Designated OIC

EO No. 18 dated May 28,

2986

7 Philippine Sugar

Corporation

PHILSUCOR Ayala Avenue, Makati City State Auditor III,

Designated OIC

PD No. 1890

Divina M. Telan State Auditor IV-

OIC Supervising

Auditor

8 Philippine Fisheries Development AuthorityPFDA 3rd Floor, PCA Annex Bldg,

Elliptical Road, Quezon City

Sonia H. Alday State Auditor IV PD No. 977 dated August

11, 1976 as amended by EO

No. 772 dated February 8,

1982

9 National Dairy

Authority

NDA NDA Building, Bureau of

Animal Industry Compound,

Visayas Ave, Diliman,

Quezon City

Achilles F. Fortu State Auditor III,

Designated OIC

RA No. 7884 dated March

12, 1995

10 National Tobacco

Administration

NTA NTA Bldg, Scout Reyes cor

Panay Ave, Quezon City

Milagros C. Pangilinan State Auditor IV EO No. 116 dated January

30, 1987 and implemented

by EO No. 245 dated July

24, 1987

Merle M. Valentin State Auditor IV-

OIC Supervising

Auditor

Audit Group C- Philippine

Coconut Authority

Audit Group D-

PFDA/NDA/NTA

Audit Group E- Natural

Resoources and Technology

Group

274


11 HSDC Unit 1405 West Tower, Phil.

Stock Exchange Centre,

Exchange Road, Ortigas

Center, Pasig City

Edita S. Manota State Auditor IV PD No. 1396 dated June 2,

1978

Subsidiaries:

12 National Agribusiness

Corporation

NABCOR Unit 2602-D West Tower,

Phil Stock Exchange Center,


Center, Pasig City

Diana E. Casado State Auditor III,

Designated OIC

SEC Registration No.

121272 dated June 26, 1984

13 Philippine Agricultural

Development and

Commercial Corporation

PADCC Unit 1405 West Tower, Phil.

Stock Exchange Centre,


Center, Pasig City Edita S. Manota State Auditor IV


121210 dated June 21, 1984

15 ZNAC Rubber Estate

Corporation

ZREC DA, Elliptical Road, Quezon

City


120669 dated May 17, 1984

16 NRDC 9th Floor DENR By the Bay,

L & S Bldg, 1515 Roxas

Blvd,, Ermita, Manila

EO No. 786 dated March 19,

1982

Subsidiaries:

17 Philippine Forest

Corporation

PFC 3rd Flr. Forest Management

Bureau Annex Bldg., BAI

Cpd, Visayas Avenue,

Diliman, Q.C.

Jesusa B. Aleste State Auditor IV SEC Registration No.

CS200519117 dated January

24, 2006

18 Philippine Mining

Development

Corporation

PMDC Philippine Stock Exchange

Tower, Ortigas Center, Pasig

City


CS200314923 dated July 4,

2003

Human Settlements

Development Corporation

Natural Resources

Development Corporation

275


Arsenio S. Rayos, Jr. State Auditor IV-

OIC Supervising

Auditor

19 PCIC 7th Floor NIA Bldg. A, NIA

Complex EDSA, Quezon City

Filomena P. Dimaunahan State Auditor IV PD 1467 dated June 11,

1978 amended by PD No.

1733 dated October 21, 1980

and EO No. 708 dated July

27, 1981, further amended

by RA No. 8175 was enacted

December 20, 1995

20 QUEDANCOR 34 Panay Avenue, Quezon

City

Elvira E. Datu State Auditor IV RA No. 7393 dated April 13,

1992

21 BFI Malaybalay City, Bukidnon Felicidad D. Torayno State Auditor IV SEC Registration on October

7, 1992

22

PRRI

Science City of Munoz,

Nueva Ecija Merlita M. Carlos

State Auditor III -

Designated OIC

EO No. 1061 dated

November 5, 1985

Audit Group F-

PCIC/QUEDANCOR

Philippine Crop Insurance

Corporation

Quedan and Rural Credit

Guarantee Corporation

Philippine Rice Research

Institute (Region III)

Under the audit jurisdiction of Regional Offices

Bukidnon Forest Corporation

(Region X)

276

Cluster 6 - Social, Cultural, Trading, Promotional and Other ServicesBalance SheetDecember 31, 2012(With corresponding figures for 2011)In thousand pesos

AssetsCurrent assets 69,224,192 63,143,974



Receivables (net) 4 9,565,377 12,642,712

Inventories (net) 5 1,555,999 1,385,739

Prepayments and deferred charges 6 449,193 457,184 Others 7 124,376 116,891


Long-term receivables (net) 8 1,292,042 1,323,655 Long-term investments (net) 9 108,922,548 102,602,494

Property, plant and equipment (net) 10 35,298,126 37,844,106 Others 11 7,814,235 7,085,133

TOTAL ASSETS 222,551,143 211,999,362


Liabilities 57,812,660 50,626,814

Current liabilities 12 43,387,064 37,448,165

Trade and non-trade payables 41,480,159 35,832,808 Others 1,906,905 1,615,357




Deferred credits 942,181 402,331

Others 14 12,162,629 11,385,442

Equity 164,738,483 161,372,548

TOTAL LIABILITIES AND EQUITY 222,551,143 211,999,362

TOTAL

Notes 2012 2011

279

Cluster 6 - Social, Cultural, Trading, Promotional and Other Services

Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets 124,130 108,240 179,143 74,979 3,041 1,517 353,284 324,342

Cash and cash equivalents 42,538 38,635 161,747 40,481 1,800 130 151,270 65,880

Short-term investments - - - - - - 149,262 200,800

Receivables (net) 41,946 31,965 13,772 25,114 1,224 1,370 42,328 43,462

Inventories (net) 37,435 34,871 389 476 17 17 8,076 8,356

Prepayments and deferred charges 542 1,100 2,104 6,442 - - 1,101 1,184

Others 1,669 1,669 1,131 2,466 - - 1,247 4,660

Non-current assets 2,956,561 2,960,185 307,010 400,726 37,202 40,998 1,165,369 1,187,239

Long-term receivables (net) 600,000 600,000 - - - - - -

Long-term investments (net) 1,556,210 1,558,389 42 597 21 21 3,249 3,248

Property, plant and equipment (net) 769,189 780,238 25,731 13,657 20,517 24,313 1,111,322 1,133,224

Others 31,162 21,558 281,237 386,472 16,664 16,664 50,798 50,767

TOTAL ASSETS 3,080,691 3,068,425 486,153 475,705 40,243 42,515 1,518,653 1,511,581


Liabilities 88,964 102,392 78,405 75,570 7,584 5,751 211,928 207,161

Current liabilities 75,851 83,362 65,874 67,451 7,584 5,751 209,715 201,975

Trade and non-trade payables 75,466 82,906 59,924 60,482 7,350 5,508 127,756 120,601

Others 385 456 5,950 6,969 234 243 81,959 81,374

Non-current liabilities 13,113 19,030 12,531 8,119 - - 2,213 5,186


Loans and advances payable - - - - - - - -

Deferred credits - - 12,531 8,119 - - 2,213 5,186

Others 13,113 19,030 - - - - - -

Equity 2,991,727 2,966,033 407,748 400,135 32,659 36,764 1,306,725 1,304,420

TOTAL LIABILITIES AND EQUITY 3,080,691 3,068,425 486,153 475,705 40,243 42,515 1,518,653 1,511,581

BSP CITEM CITC CCP

20112012 2011 2012 2012 20122011 2011

280


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity


2011 2011 2011(As Restated) (As Restated) (As Restated)

408,803 296,239 2,021,102 1,888,360 466,780 332,894 1,627,418 1,562,698

27,885 35,656 1,475,296 1,412,871 255,093 120,027 957,603 919,876

195,000 140,000 - - - - - -

151,590 100,102 278,635 267,458 191,291 198,608 375,807 347,653

4,426 4,964 259,541 203,197 18,690 11,211 294,008 295,169

27,627 13,711 7,630 4,834 - - - -

2,275 1,806 - - 1,706 3,048 - -

169,739 208,327 817,201 1,001,667 4,304,343 4,277,682 1,839,461 1,378,786

- - - - - - - -

7 50,007 1,146 1,146 - - - -

166,893 153,907 103,982 99,385 4,304,343 4,277,682 1,829,128 1,368,453

2,839 4,413 712,073 901,136 - - 10,333 10,333

578,542 504,566 2,838,303 2,890,027 4,771,123 4,610,576 3,466,879 2,941,484

297,777 226,453 2,415,708 2,449,761 526,572 520,565 1,112,728 762,656

138,101 120,547 2,401,500 2,442,666 319,243 279,208 1,111,116 761,044

101,816 95,879 2,400,947 2,441,696 250,472 239,661 619,222 347,784

36,285 24,668 553 970 68,771 39,547 491,894 413,260

159,676 105,906 14,208 7,095 207,329 241,357 1,612 1,612

- - - - 130,000 160,000 - -

- - - - - - - -

128,762 79,005 14,208 7,095 77,329 81,357 1,612 1,612

30,914 26,901 - - - - - -

280,765 278,113 422,595 440,266 4,244,551 4,090,011 2,354,151 2,178,828

578,542 504,566 2,838,303 2,890,027 4,771,123 4,610,576 3,466,879 2,941,484

DAP DFPC LCP NKTI

2012 2011 2012 2012 2012

281


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity



373,400 409,145 877,440 905,537 165,455 89,942 11,398,977 8,981,959

366,683 400,045 687,473 704,554 71,378 22,122 9,286,534 6,863,073

- - - - - - - -

5,691 7,876 181,034 191,215 36,307 18,079 1,403,440 1,405,241

857 1,036 5,511 5,795 - - 446,899 358,985

169 188 3,422 3,973 6,949 6,949 262,104 354,660

- - - - 50,821 42,792 - -

2,453,008 7,317,683 15,028,036 13,605,780 815,581 796,462 22,998,453 21,537,995

- - - - 288,931 308,652 55,729 58,729

52 52 14,536,669 13,045,236 - - 43,175 142,855

2,451,363 7,316,266 194,154 205,057 493,916 455,076 19,825,450 18,141,722

1,593 1,365 297,213 355,487 32,734 32,734 3,074,099 3,194,689

2,826,408 7,726,828 15,905,476 14,511,317 981,036 886,404 34,397,430 30,519,954

29,990 30,981 600,266 510,843 565,871 548,186 20,033,098 17,956,054

26,806 27,949 600,266 510,841 477,094 448,308 7,934,027 6,627,211

24,356 26,958 558,248 468,056 477,094 448,308 7,091,592 5,926,826

2,450 991 42,018 42,785 - - 842,435 700,385

3,184 3,032 - 2 88,777 99,878 12,099,071 11,328,843

- - - - - - - -

- - - - - - - -

3,184 3,032 - 2 88,777 99,878 36,185 39,825

- - - - - - 12,062,886 11,289,018

2,796,418 7,695,847 15,305,210 14,000,474 415,165 338,218 14,364,332 12,563,900

2,826,408 7,726,828 15,905,476 14,511,317 981,036 886,404 34,397,430 30,519,954

NPF OWWA PTNI PAGCOR

2012 2012 2012 20122011 2011

282


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity



67,552 40,441 11,365,911 9,362,205 799,692 696,001 33,434,952 34,160,772

29,941 25,615 10,560,700 8,141,480 625,315 293,550 15,006,716 5,831,825

15,616 - 253,008 742,811 - - 13,060,417 19,564,222

21,259 14,361 359,873 294,678 134,140 357,677 5,238,097 8,677,188

453 353 174,630 158,082 38,607 43,935 43,076 32,589

283 112 3,127 10,648 1,630 839 41,277 13,313

- - 14,573 14,506 - - 45,369 41,635

71,820 88,673 1,924,814 2,007,583 286,694 242,753 92,938,511 87,892,403

- - - - - - - -

65,776 81,808 400,405 200,405 - - 91,720,591 86,751,980

6,044 6,865 1,133,946 1,154,284 286,208 242,267 1,067,136 990,240

- - 390,463 652,894 486 486 150,784 150,183

139,372 129,114 13,290,725 11,369,788 1,086,386 938,754 126,373,463 122,053,175

627 629 11,705,093 11,470,127 380,754 316,443 11,291,014 9,344,004

627 629 11,696,936 11,457,885 380,319 316,229 10,770,695 9,313,181

627 629 11,604,644 11,366,204 310,377 261,653 10,770,695 9,313,181

- - 92,292 91,681 69,942 54,576 - -

- - 8,157 12,242 435 214 520,319 30,823

- - - - - - - -

- - - - - - - -

- - 8,157 12,242 435 214 520,319 30,823

- - - - - - - -

138,745 128,485 1,585,632 (100,339) 705,632 622,311 115,082,449 112,709,171

139,372 129,114 13,290,725 11,369,788 1,086,386 938,754 126,373,463 122,053,175

PCED PCSO PCMC PHIC

2012 2011 2012 2012 2012

283


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity



962,310 644,972 724,792 141,874 223,199 229,178 1,889,772 1,545,507

335,066 55,283 205,607 103,796 146,840 135,363 1,872,914 1,518,991

- - 2,109 28,309 - - - -

385,411 400,630 515,667 8,398 25,250 38,527 11,659 23,591

192,121 187,219 453 597 24,714 31,922 437 456

49,663 1,791 854 732 23,924 21,450 4,762 2,469

49 49 102 42 2,471 1,916 - -

1,180,254 1,148,968 299,233 324,876 89,162 85,677 151,804 158,643

- - - - - - - -

29,631 28,334 286,819 311,731 - - 62,859 68,639

1,142,248 1,111,255 12,394 13,106 89,092 85,614 1,868 2,141

8,375 9,379 20 39 70 63 87,077 87,863

2,142,564 1,793,940 1,024,025 466,750 312,361 314,855 2,041,576 1,704,150

790,479 855,467 571,506 28,763 14,843 30,156 1,856,403 1,519,909

736,253 761,146 570,272 27,116 14,843 29,772 1,846,604 1,511,647

636,473 674,488 557,489 5,921 14,648 29,519 1,807,235 1,477,136

99,780 86,658 12,783 21,195 195 253 39,369 34,511

54,226 94,321 1,234 1,647 - 384 9,799 8,262

- - - - - - - -

53,546 93,636 - - - - - -

680 685 1,234 1,647 - 384 21 114

- - - - - - 9,778 8,148

1,352,085 938,473 452,519 437,987 297,518 284,699 185,173 184,241

2,142,564 1,793,940 1,024,025 466,750 312,361 314,855 2,041,576 1,704,150

PHC PIDS PITAHC PITC

2012 2012 2011 2012 20122011

284


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity


2011(As Restated)

706,244 617,499 43,006 67,951 687,244 554,536 236,730 53,562

552,109 506,505 3,918 18,428 606,648 464,114 227,094 33,053

120,000 75,000 - - - - - -

27,723 29,702 28,850 39,401 80,596 90,422 5,844 18,467

2,272 1,922 939 3,484 - - 2,448 1,103

2,508 2,984 9,299 6,638 - - 13 23

1,632 1,386 - - - - 1,331 916

2,154,595 855,804 3,088 4,091 1,115,105 1,141,449 37,955 11,981

2,484 2,473 - - 344,898 353,801 - -

73,164 167,507 - - 131,211 182,156 124 124

37,026 41,686 3,088 4,091 40,656 42,696 13,534 11,255

2,041,921 644,138 - - 598,340 562,796 24,297 602

2,860,839 1,473,303 46,094 72,042 1,802,349 1,695,985 274,685 65,543

2,199,956 854,152 358,201 343,669 2,591,955 2,388,081 66,703 37,480

2,153,549 822,797 339,095 326,901 1,428,237 1,225,574 66,222 37,414

2,151,652 822,797 336,892 323,418 1,419,100 1,216,404 59,849 35,232

1,897 - 2,203 3,483 9,137 9,170 6,373 2,182

46,407 31,355 19,106 16,768 1,163,718 1,162,507 481 66

- - - - - - - -

- - - - 1,137,240 1,137,240 - -

46,053 31,045 - - - - 481 66

354 310 19,106 16,768 26,478 25,267 - -

660,883 619,151 (312,107) (271,627) (789,606) (692,096) 207,982 28,063

2,860,839 1,473,303 46,094 72,042 1,802,349 1,695,985 274,685 65,543

PRA PPI TRC TPB

2012 2011 2012 20112012 2011 2012

285


Balance Sheet

December 31, 2012


In thousand pesos

Assets

Current assets



Receivables (net)

Inventories (net)


Others

Non-current assets




Others

TOTAL ASSETS


Liabilities

Current liabilities


Others


Mortgage payable


Deferred credits

Others

Equity


83,815 53,624

75,101 38,387

566 566

7,943 11,527

- -

205 3,144

- -

181,952 178,957

- -

11,397 8,259

168,898 169,626

1,657 1,072

265,767 232,581

16,235 41,561

16,235 41,561

16,235 41,561

- -

- -

- -

- -

- -

- -

249,532 191,020

265,767 232,581

VFP

20112012

286

Cluster 6 - Social, Cultural, Trading, Promotional and Other ServicesIncome StatementYear ended December 31, 2012


In thousand pesos

Income 106,764,388 99,058,104


Gains and premiums 64,321 75,110

Others 9,927,586 9,250,187

Less: share of National Government 17,324,762 15,868,308

Income after share of National Government 17 89,439,626 83,189,796

Expenses 95,012,330 78,680,278


Business expense (Direct expense) - -


Financial expenses 20 356,776 300,161

Others 21 762,256 1,151,275

Net income (loss) before subsidy (5,572,704) 4,509,518

Subsidy income 16,915,353 6,803,700


Income tax expense (benefit) 1,436,546 1,304,086


TOTAL

Notes 2012 2011

287


Income Statement



In thousand pesos

Income 323,771 349,434 33,587 37,316 7,060 7,963 145,710 124,600

Business and service income 308,432 270,169 27,194 27,918 5,901 5,157 67,586 50,121

Gains and premiums - 26,730 - 15 428 150 - 13

Others 15,339 52,535 6,393 9,383 731 2,656 78,124 74,466

Less: share of National Government - - - - - - - -

Income after share of National Government 323,771 349,434 33,587 37,316 7,060 7,963 145,710 124,600

Expenses 295,898 294,335 208,939 154,603 17,443 17,640 351,299 317,061


Business expense (Direct expense)

Maintenance and other operating expenses 246,034 245,050 151,330 109,894 5,408 5,034 211,241 191,922

Financial expenses 159 3,530 219 265 - - 18 30

Others 195 - 3,383 234 - - 1,492 -

Net income (loss) before subsidy 27,873 55,099 (175,352) (117,287) (10,383) (9,677) (205,589) (192,461)

Subsidy income - - 179,510 79,686 9,412 8,000 201,327 201,625

Net income (loss) before tax 27,873 55,099 4,158 (37,601) (971) (1,677) (4,262) 9,164

Income tax expense (benefit) - - - - - - - -

NET INCOME (LOSS) AFTER TAX 27,873 55,099 4,158 (37,601) (971) (1,677) (4,262) 9,164

2012 2011 2012 2012 20122011 2011 2011

BSP CITEM CITC CCP

288


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services



Financial expenses

Others


Subsidy income





317,812 233,702 10,160,779 9,918,497 541,505 461,456 2,177,595 1,892,380

297,227 212,668 10,103,344 9,872,857 527,879 447,603 2,115,554 1,851,126

- 96 39,995 28,758 - - - -

20,585 20,938 17,440 16,882 13,626 13,853 62,041 41,254

- - - - - - - -

317,812 233,702 10,160,779 9,918,497 541,505 461,456 2,177,595 1,892,380

369,427 275,012 9,615,645 9,338,790 720,273 636,260 2,266,122 1,906,476

110,646 99,656 502,645 466,375 253,939 225,390 420,884 378,505

257,925 175,353 9,109,909 8,869,047 458,397 402,592 1,827,255 1,516,668

29 3 3,091 3,368 7,937 8,278 5,772 6,197

827 - - - - - 12,211 5,106

(51,615) (41,310) 545,134 579,707 (178,768) (174,804) (88,527) (14,096)

54,267 43,275 - - 333,308 157,560 264,839 163,266

2,652 1,965 545,134 579,707 154,540 (17,244) 176,312 149,170

- - - - - - - -

2,652 1,965 545,134 579,707 154,540 (17,244) 176,312 149,170

2012 2012 201220112012

LCP NKTIDAP DFPC

289


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services



Financial expenses

Others


Subsidy income





29,803 43,691 2,654,471 2,327,978 127,276 110,950 40,913,550 36,697,628

21,316 32,463 1,715,900 1,659,734 123,920 108,141 40,054,865 36,143,418

- - 21,072 - 3,356 2,666 - 15,956

8,487 11,228 917,499 668,244 - 143 858,685 538,254

- - - - - - 17,324,762 15,868,308

29,803 43,691 2,654,471 2,327,978 127,276 110,950 23,588,788 20,829,320

46,410 32,940 1,507,358 1,856,499 258,005 245,725 19,414,430 16,497,038

3,604 2,904 435,939 433,400 124,582 138,401 8,174,381 7,805,716

42,806 30,036 286,855 247,586 133,330 107,228 11,023,146 8,483,162

- - 118,150 35,691 84 96 186,375 208,160

- - 666,414 1,139,822 9 - 30,528 -

(16,607) 10,751 1,147,113 471,479 (130,729) (134,775) 4,174,358 4,332,282

- - 23,162 55,393 152,835 41,613 - -

(16,607) 10,751 1,170,275 526,872 22,106 (93,162) 4,174,358 4,332,282

- - - - - - 1,373,926 1,250,507

(16,607) 10,751 1,170,275 526,872 22,106 (93,162) 2,800,432 3,081,775

2012 2012 201220112012 2011


290


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services



Financial expenses

Others


Subsidy income





9,344 7,999 5,720,696 4,752,392 537,471 499,331 39,849,406 38,259,652

4,519 3,211 4,772,828 4,083,977 508,903 476,427 33,092,083 31,608,706

- - - - - 15 50 292

4,825 4,788 947,868 668,415 28,568 22,889 6,757,273 6,650,654

- - - - - - - -

9,344 7,999 5,720,696 4,752,392 537,471 499,331 39,849,406 38,259,652

13,584 11,030 3,801,554 3,858,687 899,150 832,675 51,750,202 39,104,464

2,170 1,663 1,700,417 1,377,673 459,251 420,176 2,825,776 2,675,329

- -

11,414 9,367 2,098,174 2,477,878 439,515 410,083 48,910,234 36,415,810

- - 2,873 2,033 270 203 14,192 13,325

- - 90 1,103 114 2,213 - -

(4,240) (3,031) 1,919,142 893,705 (361,679) (333,344) (11,900,796) (844,812)

14,500 - - - 445,000 601,200 14,274,074 5,186,144

10,260 (3,031) 1,919,142 893,705 83,321 267,856 2,373,278 4,341,332

- - - - - - - -

10,260 (3,031) 1,919,142 893,705 83,321 267,856 2,373,278 4,341,332

2012 2012 20122012 2011

PCED PCSO PCMC PHIC

291


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services



Financial expenses

Others


Subsidy income





2,308,777 2,403,089 54,011 41,519 66,822 92,374 147,833 100,714

2,268,455 2,059,600 23 44 61,645 86,311 102,808 66,309

(580) 319 - - - - - 93

40,902 343,170 53,988 41,475 5,177 6,063 45,025 34,312

- - - - - - - -

2,308,777 2,403,089 54,011 41,519 66,822 92,374 147,833 100,714

2,518,084 2,296,052 70,102 60,408 95,032 102,739 146,803 155,546

761,687 712,102 50,835 44,564 46,528 43,365 52,007 46,377

1,755,995 1,580,366 18,832 15,510 48,496 59,345 91,312 109,122

402 2,183 123 95 8 29 240 47

- 1,401 312 239 - - 3,244 -

(209,307) 107,037 (16,091) (18,889) (28,210) (10,365) 1,030 (54,832)

622,919 123,138 31,000 23,300 40,000 37,000 - -

413,612 230,175 14,909 4,411 11,790 26,635 1,030 (54,832)

- - - - - - (494) (5,511)

413,612 230,175 14,909 4,411 11,790 26,635 1,524 (49,321)

2012 2011 20122012 2012 2011

PITAHC PITCPHC PIDS

292


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services



Financial expenses

Others


Subsidy income




2011(As Restated)

361,468 316,639 63,783 154,591 100,393 119,449 11,949 5,276

338,613 302,587 63,727 154,223 90,814 108,116 845 3,114

- - - - - - - 7

22,855 14,052 56 368 9,579 11,333 11,104 2,155

- - - - - - - -

361,468 316,639 63,783 154,591 100,393 119,449 11,949 5,276

171,354 106,638 104,263 180,615 217,612 227,638 101,230 77,953

25,282 18,739 19,629 22,449 62,068 56,503 50,712 48,301

102,939 86,865 67,924 141,648 155,534 171,125 50,100 29,429

11 16 16,710 16,518 10 10 103 84

43,122 1,018 - - - - 315 139

190,114 210,001 (40,480) (26,024) (117,219) (108,189) (89,281) (72,677)

- - - - - - 269,200 82,500

190,114 210,001 (40,480) (26,024) (117,219) (108,189) 179,919 9,823

63,114 59,090 - - - - - -

127,000 150,911 (40,480) (26,024) (117,219) (108,189) 179,919 9,823

2012 2011 2012 20112012 2011 2012

PRA PPI TRC TPB

293


Income Statement



In thousand pesos

Income


Gains and premiums

Others



Expenses

Personal services



Financial expenses

Others


Subsidy income




99,516 99,484

98,100 98,807

- -

1,416 677

- -

99,516 99,484

52,111 93,454

14,715 16,838

37,396 76,616

- -

- -

47,405 6,030

- -

47,405 6,030

- -

47,405 6,030

2012 2011

VFP

294

In thousand pesos

Government equity, beginning of period 16,997,056 16,449,093

Additions (deductions) 1,328,219 547,963

Government equity, end of period 18,325,275 16,997,056

Share capital, beginning of period 1,718,561 1,718,561


Share capital, end of period 1,718,561 1,718,561

Share premium, beginning of period - -


Share premium, end of period - -

Deposit on subscription, beginning of period - -


Deposit on subscription, end of period - -

Restricted capital, beginning of period 7,643,890 6,364,869

Additions (deductions) (500,860) 1,279,021

Restricted capital, end of period 7,143,030 7,643,890

Contingent capital, beginning of period 1,458 1,458


Contingent capital, end of period 1,458 1,458

Appraisal increment, beginning of period 8,295,541 8,062,008

Additions (deductions) (4,856,259) 233,533

Appraisal increment, end of period 3,439,282 8,295,541

Members' equity, beginning of period - -


Members' equity, end of period - -

Net unrealized gains and losses, beginning of period - -


Net unrealized gains and losses, end of period - -

Donated capital, beginning of period 3,703,248 3,699,034

Additions (deductions) (989) 4,214

Donated capital, end of period 16 3,702,259 3,703,248

Equity in joint venture, beginning of period - -


Equity in joint venture, end of period - -

Surplus reserves, beginning of period 103,293,572 103,293,572

Additions (deductions) 11,908,812 -

Surplus reserves, end of period 115,202,384 103,293,572

Retained earnings (deficit), beginning of period 19,719,222 23,080,273

Additions (deductions) (4,512,988) (3,361,051)

Retained earnings (deficit), end of period 15,206,234 19,719,222

Treasury shares, beginning of period - -


Treasury shares, end of period - -

TOTAL EQUITY 164,738,483 161,372,548

Note 2012 2011

TOTAL





295

In thousand pesos

Government equity, beginning of period - - 41,222 39,767 262 262 1,519,347 1,519,327

Additions (deductions) - - - 1,455 - - - 20

Government equity, end of period - - 41,222 41,222 262 262 1,519,347 1,519,347

Share capital, beginning of period - - - - - - - -


Share capital, end of period - - - - - - - -




Deposit on subscription, beginning of period - - - - - - - -


Deposit on subscription, end of period - - - - - - - -

Restricted capital, beginning of period 2,810,280 2,810,280 385,628 372,356 - - - -

Additions (deductions) - - (105,236) 13,272 - - - -

Restricted capital, end of period 2,810,280 2,810,280 280,392 385,628 - - - -

Contingent capital, beginning of period


Contingent capital, end of period

Appraisal increment, beginning of period - - 5,055 5,055 14,111 14,111 - -

Additions (deductions) - - - - (3,134) - - -

Appraisal increment, end of period - - 5,055 5,055 10,977 14,111 - -







Donated capital, beginning of period - - - - 1,535 1,535 - -


Donated capital, end of period - - - - 1,535 1,535 - -




Surplus reserves, beginning of period 14,634 14,634 - - - - - -

Additions (deductions) (2,179) - - -

Surplus reserves, end of period 12,455 14,634 - - - - - -

Retained earnings (deficit), beginning of period 141,119 86,020 (31,770) 19,103 20,856 22,533 (214,927) (243,107)

Additions (deductions) 27,873 55,099 112,849 (50,873) (971) (1,677) 2,305 28,180

Retained earnings (deficit), end of period 168,992 141,119 81,079 (31,770) 19,885 20,856 (212,622) (214,927)

Treasury shares, beginning of period - - - - - - - -


Treasury shares, end of period - - - - - - - -

TOTAL EQUITY 2,991,727 2,966,033 407,748 400,135 32,659 36,764 1,306,725 1,304,420

2011 2012 20112012 2011 2012 2011 2012

CITC CCP





BSP CITEM

296

















In thousand pesos











































TOTAL EQUITY





2011 2011 2011

(As Restated) (As Restated) (As Restated)

47,500 47,500 8,235 8,235 220,509 220,509 - -

- - - - - - - -

47,500 47,500 8,235 8,235 220,509 220,509 - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

161,898 161,898 14,387 14,387 2,919,591 2,919,591 136,744 133,054

- - - - - - (989) 3,690

161,898 161,898 14,387 14,387 2,919,591 2,919,591 135,755 136,744

- - - - - - 108,938 108,938

- - - - - -

- - - - - - 108,938 108,938

68,715 66,750 417,644 (397,207) 949,911 1,516,957 1,933,146 1,729,317

2,652 1,965 (17,671) 814,851 154,540 (567,046) 176,312 203,829

71,367 68,715 399,973 417,644 1,104,451 949,911 2,109,458 1,933,146

- - - - - - - -

- - - - - - - -

- - - - - - - -

280,765 278,113 422,595 440,266 4,244,551 4,090,011 2,354,151 2,178,828

2012 20122012 2011 2012

DAP DFPC LCP NKTI

297

















In thousand pesos











































TOTAL EQUITY





2011 2011


133,423 133,423 13,976,563 13,431,011 394,919 394,919 - -

(30,981) - 1,304,736 545,552 54,841 - - -

102,442 133,423 15,281,299 13,976,563 449,760 394,919 - -

- - - - 1,000,000 1,000,000 71,431 71,431

- - - - - - - -

- - - - 1,000,000 1,000,000 71,431 71,431

- - - -

- - - -

- - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - 4,447,100 3,181,351

- - - - - - (395,624) 1,265,749

- - - - - - 4,051,476 4,447,100

7,043,840 7,043,840 23,911 23,911 - - 85,506 85,506

(4,853,125) - - - - - - -

2,190,715 7,043,840 23,911 23,911 - - 85,506 85,506

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- -

- - - - - - - -

518,584 513,210 - - (1,056,701) (963,539) 7,959,863 6,143,837

(15,323) 5,374 - - 22,106 (93,162) 2,196,056 1,816,026

503,261 518,584 - - (1,034,595) (1,056,701) 10,155,919 7,959,863

- - - - - - - -

- - - - - - - -

- - - - - - - -

2,796,418 7,695,847 15,305,210 14,000,474 415,165 338,218 14,364,332 12,563,900

2012 2011 2012 2011 2012 2012


298

















In thousand pesos











































TOTAL EQUITY





2011 2011 2011

(As Restated) (As Restated) (As Restated)

23,678 23,678 - - - - - -

- - - - - - - -

23,678 23,678 - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

1,458 1,458

- -

1,458 1,458

- - 889,585 889,585 - - - -

- - - - - - - -

- - 889,585 889,585 - - - -

14,890 14,890 - - - - - -

- - - - - - - -

14,890 14,890 - - - - - -

- - - - - - 103,170,000 103,170,000

11,910,991 -

- - - - - - 115,080,991 103,170,000

89,917 92,948 (989,924) (1,584,915) 622,311 354,455 9,537,713 16,272,412

10,260 (3,031) 1,685,971 594,991 83,321 267,856 (9,537,713) (6,734,699)

100,177 89,917 696,047 (989,924) 705,632 622,311 - 9,537,713

- - - - - - - -

- - - - - - - -

- - - - - - - -

138,745 128,485 1,585,632 (100,339) 705,632 622,311 115,082,449 112,709,171

2011 2012 201220122012

PCMC PHICPCED PCSO

299

















In thousand pesos











































TOTAL EQUITY





2011 2011


200,902 200,902 313,026 311,641 54,253 54,702 - -

- - (377) 1,385 - (449) - -

200,902 200,902 312,649 313,026 54,253 54,253 - -

- - - - - - 300,000 300,000

- - - - - - - -

- - - - - - 300,000 300,000

- - - - - - - -

- - - - - - - -

- - - - - - - -

882 882 - - - - - -

- - - - - - - -

882 882 - - - - - -

95,885 - - - - - - -

- 95,885 - - - - - -

95,885 95,885 - - - - - -

423,726 423,202 - - - - - -

- 524 - - - - - -

423,726 423,726 - - - - - -

- - - - - - - -

- - - - - - - -

217,078 (13,097) 124,961 120,550 230,446 199,099 (115,759) (97,923)

413,612 230,175 14,909 4,411 12,819 31,347 932 (17,836)

630,690 217,078 139,870 124,961 243,265 230,446 (114,827) (115,759)

- - - - - - - -

- - - - - - - -

- - - - - - - -

1,352,085 938,473 452,519 437,987 297,518 284,699 185,173 184,241

2012 2011 20122012 2012 2011

PHC PIDS PITAHC PITC

300

















In thousand pesos











































TOTAL EQUITY





2011

(As Restated)

63,217 63,217 - - - - - -

- - - - - - - -

63,217 63,217 - - - - - -

- - 37,500 37,500 309,630 309,630 - -

- - - - - - - -

- - 37,500 37,500 309,630 309,630 - -

- - - -

- - - -

- - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - 10,893 10,893 - -

- - - - - - - -

- - - - 10,893 10,893 - -

- - - - - - - -

- - - - - - - -

555,934 553,159 (309,127) (283,103) (1,012,619) (1,073,184) 28,063 18,240

41,732 2,775 (40,480) (26,024) (97,510) 60,565 179,919 9,823

597,666 555,934 (349,607) (309,127) (1,110,129) (1,012,619) 207,982 28,063

- - - - - - - -

- - - - - - - -

- - - - - - - -

660,883 619,151 (312,107) (271,627) (789,606) (692,096) 207,982 28,063

2012 20112012 2011 2012 2012 2011

PRA PPI TRC TPB

301

















In thousand pesos











































TOTAL EQUITY





- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

137,648 -

- 137,648

137,648 137,648

19,584 19,584

- -

19,584 19,584

- -

- -

- -

33,788 27,758

58,512 6,030

92,300 33,788

- -

- -

- -

249,532 191,020

2012 2011

VFP

302






In thousand pesos


Cash inflows 144,977,665 119,667,305

Cash outflows 133,960,098 110,108,694

Net cash provided by (used in) operating activities 11,017,567 9,558,611


Cash inflows 20,341,489 8,701,813

Cash outflows 15,391,455 17,610,074

Net cash provided by (used in) investing activities 4,950,034 (8,908,261)


Cash inflows 872,197 319,324

Cash outflows 862,167 1,266,784

Net cash provided by (used in) financing activities 10,030 (947,460)


Net increase (decrease) in cash and cash equivalents 15,943,529 (281,115)



TOTAL

Note 2012 2011

Cash Flow Statement



303


In thousand pesos


Cash inflows 280,723 265,524 253,312 180,031 23,304 16,366 406,578 336,176

Cash outflows 263,375 275,814 231,739 216,552 22,071 21,228 313,769 346,223

Net cash provided by (used in) operating activities 17,348 (10,290) 21,573 (36,521) 1,233 (4,862) 92,809 (10,047)


Cash inflows 10,453 45,506 109,742 32,142 437 199 - -

Cash outflows 23,898 36,271 6,955 35,683 - - 7,419 10,859

Net cash provided by (used in) investing activities (13,445) 9,235 102,787 (3,541) 437 199 (7,419) (10,859)


Cash inflows - - - - - - - -

Cash outflows - - - - - - - -

Net cash provided by (used in) financing activities - - - - - - - -

Effects of exchange rate changes on cash and cash equivalents - - (3,094) 15 - - - -

Net increase (decrease) in cash and cash equivalents 3,903 (1,055) 121,266 (40,047) 1,670 (4,663) 85,390 (20,906)

Cash and cash equivalents, beginning of period 38,635 39,690 40,481 80,528 130 4,793 65,880 86,786

CASH AND CASH EQUIVALENTS, END OF PERIOD 42,538 38,635 161,747 40,481 1,800 130 151,270 65,880

2012 2011 2012 2011 2012 2011 2012 2011

Cash Flow Statement



BSP CITEM CITC CCP

304


In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






Cash Flow Statement




768,770 528,574 9,973,283 9,713,549 812,691 620,145 2,353,496 1,786,403

664,617 509,333 9,512,201 9,564,247 652,650 519,133 1,702,551 1,556,449

104,153 19,241 461,082 149,302 160,041 101,012 650,945 229,954

(70,998) 16,708 - - - - - -

40,293 34,708 17,894 19,737 24,975 47,158 456,158 169,944

(111,291) (18,000) (17,894) (19,737) (24,975) (47,158) (456,158) (169,944)

(633) 37 - - - 20,000 253,493 178,730

- - 380,763 79,294 - - 410,553 134,230

(633) 37 (380,763) (79,294) - 20,000 (157,060) 44,500

- - - - - - - -

(7,771) 1,278 62,425 50,271 135,066 73,854 37,727 104,510

35,656 34,378 1,412,871 1,362,600 120,027 46,173 919,876 815,366

27,885 35,656 1,475,296 1,412,871 255,093 120,027 957,603 919,876

2012 2011 2012 2012 2012

DFPC LCP NKTIDAP

305


In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






Cash Flow Statement




35,379 45,398 2,674,912 2,414,204 99,074 122,069 43,868,640 37,321,121

54,423 36,369 1,218,626 1,763,360 185,329 150,677 39,913,043 33,691,346

(19,044) 9,029 1,456,286 650,844 (86,255) (28,608) 3,955,597 3,629,775

- - 65,307 79,921 - - 251 623

14,310 1,060 1,538,674 591,045 17,153 380 1,501,859 1,467,961

(14,310) (1,060) (1,473,367) (511,124) (17,153) (380) (1,501,608) (1,467,338)

- - - - 152,835 41,613 - -

- - - - 171 22 - 1,042,217

- - - - 152,664 41,591 - (1,042,217)

(8) (1) - - - - (30,528) 15,956

(33,362) 7,968 (17,081) 139,720 49,256 12,603 2,423,461 1,136,176

400,045 392,077 704,554 564,834 22,122 9,519 6,863,073 5,726,897

366,683 400,045 687,473 704,554 71,378 22,122 9,286,534 6,863,073

2011 2012 2011 2012 20122012

PAGCORNPF OWWA PTNI

306


In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






Cash Flow Statement



2011 2011 2011As Restated (As Restated) (As Restated)

24,140 8,101 24,953,492 21,735,402 1,341,275 923,046 51,159,562 39,276,460

12,494 9,247 22,812,679 19,465,877 939,534 891,537 50,301,545 37,040,136

11,646 (1,146) 2,140,813 2,269,525 401,741 31,509 858,017 2,236,324

- 23,476 495,279 1,218 - - 19,533,248 8,361,438

7,320 13,401 216,872 551,699 69,862 17,516 11,216,177 14,455,530

(7,320) 10,075 278,407 (550,481) (69,862) (17,516) 8,317,071 (6,094,092)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - (114) 15 (197) 3

4,326 8,929 2,419,220 1,719,044 331,765 14,008 9,174,891 (3,857,765)

25,615 16,686 8,141,480 6,422,436 293,550 279,542 5,831,825 9,689,590

29,941 25,615 10,560,700 8,141,480 625,315 293,550 15,006,716 5,831,825

2011 2012 2012 20122012

PCED PCSO PCMC PHIC

307


In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






Cash Flow Statement




2,184,156 1,979,915 664,220 109,979 120,688 123,347 1,548,541 1,114,315

2,149,140 2,003,713 612,091 98,929 100,258 106,675 1,194,490 860,745

35,016 (23,798) 52,129 11,050 20,430 16,672 354,051 253,570

33,515 391 81,117 48,262 - 80,789 - -

183,776 53,750 31,435 36,018 8,953 10,536 128 149

(150,261) (53,359) 49,682 12,244 (8,953) 70,253 (128) (149)

465,708 78,500 - - - - - -

70,680 11,021 - - - - - -

395,028 67,479 - - - - - -

- - - - - - - -

279,783 (9,678) 101,811 23,294 11,477 86,925 353,923 253,421

55,283 64,961 103,796 80,502 135,363 48,438 1,518,991 1,265,570

335,066 55,283 205,607 103,796 146,840 135,363 1,872,914 1,518,991

2011 2012 2011 20122012 2012

PIDS PITAHC PITCPHC

308


In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






Cash Flow Statement



2011(As Restated)

378,464 347,561 78,497 165,293 328,427 214,096 495,017 162,107

371,600 307,718 92,970 170,687 226,402 213,759 297,689 141,401

6,864 39,843 (14,473) (5,394) 102,025 337 197,328 20,706

##############################################################################################################################################################################################################################################################

38,740 - - - 44,393 11,128 5 12

- 45,943 37 - 3,884 9,491 3,131 629

38,740 (45,943) (37) - 40,509 1,637 (3,126) (617)

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - (161) 7

45,604 (6,100) (14,510) (5,394) 142,534 1,974 194,041 20,096

506,505 512,605 18,428 23,822 464,114 462,140 33,053 12,957

552,109 506,505 3,918 18,428 606,648 464,114 227,094 33,053

2012 2012 2011 2012 20112012 2011

TPBPRA PPI TRC

309


In thousand pesos


Cash inflows

Cash outflows



Cash inflows

Cash outflows



Cash inflows

Cash outflows






Cash Flow Statement



151,024 158,123

114,812 147,539

36,212 10,584

- -

292 606

(292) (606)

794 444

- -

794 444

- -

36,714 10,422

38,387 27,965

75,101 38,387

20112012

VFP

310

311

CLUSTER 6 – SOCIAL, CULTURAL, TRADING, PROMOTIONAL AND OTHER

SERVICES

Under the 2008 COA Organization Restructuring, majority of the corporations under the audit jurisdiction of

the former Clusters V and VI, Corporate Government Sector (CGS), were combined and placed under the

audit responsibility of Cluster C. Originally, this covered 50 corporations composed of 37 parent

corporations and 13 subsidiaries. However, by virtue of Executive Order (EO) Nos. 681 and 681A dated

November 22, 2007 and February 1, 2008, the Livelihood Corporation (LIVECOR) was merged with the

National Livelihood Support Fund (NLSF) which is under the audit jurisdiction of Cluster A. In 2011,

Radio Philippines Network, Inc. (RPN9) had been declared as a private corporation as enunciated under

Supreme Court Decision (GR No. 148076) dated January 12, 2011. Likewise, the Philippine Commission

on the Promotion and Development of Sports Scuba Diving, previously under the audit jurisdiction of the

Tourism Infrastructure and Enterprise Zone Authority (TIEZA), had been consolidated with the Department

of Tourism (DOT), thus under its audit jurisdiction.

Of the remaining 45 corporations, three (Philippine Genetics Incorporated, Negros Occidental Copperfield

Mines Inc. and National Sugar Development) already ceased operations. Another corporation (IBC 13) is a

private entity sequestered by the Presidential Commission on Good Government (PCGG).

On December 7, 2012, COA Resolution 2012-016 was issued mindful of the work overload that resulted in

having only three (3) Clusters in the CGS thus, increasing its number to four (4). This did not materialize

upon realizing that the present structure does not support the implementation of unified package audit in

attaining the integrated audit action for more efficient and effective delivery of audit services. COA

Resolution No. 2012-019 was issued on December 20, 2012, revising NGS and CGS structures from four

Clusters (A, B, C and D) to six Clusters (1, 2, 3, 4, 5 and 6), to give way for the seamless implementation of

the unified and package audit and to equitably distribute the audit workload. Government-Owned and

Controlled Corporation (GOCCs) in the National Capital Region (NCR), together with its regional,

provincial offices/branches except stand-alone GOCCs with offices located in the regions or provinces are

now under the audit, technical and administrative supervision of the Cluster Directors.

The GOCCs under the audit jurisdiction of former Cluster C was divided into Clusters 5 and 6 wherein

Cluster 6 now has audit jurisdiction of 27 agencies categorized as social, cultural, trading, promotional and

other services including three GOCCs added to this Cluster, namely Boy Scouts of the Philippines (BSP),

Girl Scouts of the Philippines (GSP) and Philippine Health Insurance Corporation (PHIC). The

Occupational Safety and Health Center (OSHC) was placed under Cluster 2, while the Tourism

Infrastructure Enterprise Zone Authority (TIEZA) under Cluster 4. All others are now under the jurisdiction

of Cluster 5.

These corporations were created either by virtue of an enabling law, such as Presidential Decree and

Republic Act, or through registration with the Securities and Exchange Commission (SEC), summarized as

follows:

No. of GOCCs

Presidential Decree 12

Executive Order 4

Republic Act 5

Philippine Commonwealth Act 2

Letter of Instruction 1

Philippine Legislature Act 1

SEC Registered 2

Total 27

These corporations mostly hold their principal place of business and operations in Quezon City, as

shown below:

No. of GOCCs

Quezon City 8

City of Manila 5

Makati City 5

312

Pasay City 5

Pasig City 2

Marikina City 1

Parañaque City 1

Total 27

Schedule 1 shows a complete list identifying the parent and its subsidiaries as well as information

regarding each GOCC’s complete address and legal form. In addition, the functions of the GOCCs

under Cluster 6 are summarized in Annex 4.

CLUSTER 6 – SOCIAL, CULTURAL, TRADING, PROMOTIONAL AND OTHER SERVICES

NOTES TO FINANCIAL STATEMENTS

(All amounts in Thousand Pesos unless otherwise stated)



a. Reporting Framework

The GOCCs under the Cluster adopted and implemented varied applicable financial reporting

frameworks in their preparation and presentation of financial statements, such as the Philippine

Financial Reporting Standards (PFRS) as adopted by Philippine International Trading Corporation

(PITC) and Technology Resource Center (TRC) while the remaining 23 GOCCs included in the

summarized or combined financial statements adopted the accounting principles generally accepted

in the Philippines or State accounting principles.

b. Basis for consolidation

Last year, the report presented consolidated financial data based on the Annual Audit Reports

(AARs) of 38 GOCCs, which were either issued/transmitted or still under review in the Cluster,

formerly Cluster C. For this report, financial data contained herein were based on AARs of 25

GOCCs, 19 of which had been issued or transmitted to the concerned auditee agencies as of

September 2, 2013. The six remaining AARs namely, Boys Scouts of the Philippines (BSP),

Philippine Charity Sweepstakes Office (PCSO), Philippine International Trading Corporation

(PITC), Philippine Retirement Authority (PRA), Technology Resource Center (TRC) and Veterans

Federations of the Philippines (VFP) are still under review in the Cluster or returned to the

respective Supervising Auditors/Audit Team Leaders for revision.

The financial reports on the following GOCCs which were not included in the 2011 Report are

included in this year’s report:

Boy Scouts of the Philippines

Philippine Charity Sweepstakes Office

Veterans Federations of the Philippines

c. Cash and Cash Equivalents

Cash includes Cash on Hand and Cash in Bank comprised of current accounts and savings deposits,

both in Philippine peso and foreign currency. Cash equivalents are short-term and highly liquid

investments with short maturities of three months or less from date of acquisition, which are readily

convertible to a known amount of cash and subject to an insignificant risk of changes in value.

d. Allowance for Doubtful Accounts

Allowance for Doubtful Accounts is maintained at a level adequate to provide for potential

uncollectible receivables. The level of allowance is based on historical data on collection/write-off

experience, current economic trends, change in customer payment terms and other factors that may

affect the ability to collect receivables. A review/evaluation of the receivables, designed to identify

313

accounts to be provided with allowance, is performed on a continuous basis during the year. The

rates of allowance are approved by respective Board of Directors/Trustees of the GOCCs.

e. Inventories

Inventories are stated by some corporations at lower of cost or net realizable value. In costing

inventories, nine GOCCs [Cottage Industry Technology Center (CITC), Development Academy of

the Philippines (DAP), Lung Center of the Philippines (LCP), Overseas Workers Welfare

Administration (OWWA), People’s Television Network, Inc. (PTNI), Philippine Charity

Sweepstakes Office (PCSO), Philippine Children’s Medical Center (PCMC), Philippine Health

Insurance Corporation (PHIC) and Philippine Heart Center (PHC)] use the first-in-first-out (FIFO)

method, eleven GOCCs [Boys Scouts of the Philippines (BSP), Cultural Center of the Philippines

(CCP), Duty Free Philippines Corporation (DFPC), Nayong Pilipino Foundation (NPF), Philippine

Amusement and Gaming Corporation (PAGCOR), Philippine Center for Economic Development

(PCED), Philippine Institute for Development Studies (PIDS), Philippine Institute of Traditional

and Alternative Health Care (PITAHC), Tourism Promotions Board (TPB), National Kidney and

Transplant Institute (NKTI) and PITC Pharma, Inc. (PPI)] use the moving average

method/weighted average method. The lower of cost or net realizable value is adopted by PITC in

recording its inventories. No method is used by VFP because they directly procure goods as

needed. With regard to PITACH that involved in manufacturing/production, the costs of ending

inventory of finished goods/work in process are computed based on the cost of production.

In the event that there is obsolescence or impairment of inventories, the cost of inventories is

written down to its net realizable value by recognizing impairment loss and allowance for

obsolescence.

f. Investments

Investments with maturities of one year or less from balance sheet date are included in current

assets, and those with maturities greater than 12 months after the balance sheet date are classified as

non-current assets. Investments in bonds are recorded at premium or discount, which is amortized

on a straight-line method over the life of the bonds.

g. Property, Plant and Equipment

Property, Plant and Equipment (PPE) are carried at cost less accumulated depreciation and any

impairment in value. Cost includes expenditures that are directly attributable to the acquisition of

the items.

Depreciation on assets is calculated using the straight-line method to allocate the cost of the asset

net of residual value of 10 per cent of cost over its estimated useful life as prescribed by COA

Circular 2003-007 which provides the policies and guidelines on the computation of depreciation of

government property and on their useful lives. Depreciation starts on the second month after

purchase.

Major repairs/renovations are depreciated over the remaining useful life of the related asset while

regular maintenance, repair and minor replacements are charged against Maintenance and Other

Operating Expenses (MOOE) as these are incurred.

h. Income and Expenses

The accrual method of accounting for income and expenses is adopted by 19 GOCCs, while

OWWA and PHIC used modified accrual and PCMC adopted the modified cash basis. Under the

accrual method, all expenses and income are recognized when incurred and earned. The cash basis

is applied for certain transactions by two GOCCs (PAGCOR and PHC).

i. Foreign Currency Transactions

Transactions in foreign currencies are recorded in Philippine Peso based on the Bangko Sentral ng

Pilipinas (BSP) rate of exchange at the time of the transaction. At the end of the year, these are

revalued using the closing rate per Reference Exchange Rate Bulletin of the BSP at balance sheet

314

date. Gains or losses arising from changes in foreign currency exchange rates were included in the

computation of the annual profit and loss.


This account, composed of cash in banks and cash in the hands of officers and employees, is broken

down as follows:


Cash in bank 42,081,906 26,538,264

Cash equivalent 914,453 665,767

Cash – collecting officers 424,838 259,567

Cash – disbursing officers 292,328 298,424

Petty cash fund 16,047 18,741

Cash on hand 2,682 1,252

Payroll fund 815 7,725

Others 200

Cash and Cash Equivalents 43,733,269

27,789,740

The Cash in Bank account includes a total of P7.79 billion bank accounts of PAGCOR with the

Philippine National Bank (PNB), Philippine Veterans Bank (PVB), Philippine Postal Savings Bank

(PPSB) and Land Bank of the Philippines (LBP) maintained by the Home Office and branches. It

includes placements in time deposits which can be pre-terminated when necessary.

Cash in Bank account also includes P3.57 billion peso savings and current accounts placed with the

LBP and the PNB located at the PCSO Head Office.




Investments in treasury bonds 6,032,770

19,592,531

Others 7,763,208

1,159,177

Short Term Investments 13,795,978

20,751,708

The Short-term investments include investment of PHIC in treasury bonds and special saving deposit

amounting to P6.02 billion and P7.05 billion respectively.

4. RECEIVABLES (net)



Due from NGAs 3,028,659 4,818,980


Accrued interest receivable 1,764,842 1,925,873

Accounts receivable – trade related 858,299 773,813

Due from LGUs 793,486 441,554

Notes receivable 421,749 375,402

Premium receivable 412,397 2,012,316

Non-trade receivables 91,974 91,538

Due from GOCCs 297,377 295,056


Advances to officers and employees 70,831 69,419


Company sponsored receivables 34,848 25,326

Due from other government agencies 30,408 28,425

315


Interest receivable 23,190 25,148

Due from subsidiaries/affiliates 16,759 16,759

Miscellaneous 5,415 5,415

Due from central office/home office 10,988 14,181

Receivables – locators 6,664 10,349

Due from other funds 6,555 9,768

Accrued income 6,030 15,634

Lease receivable 5,945 3,280


Rent receivables 2,030 1,974

Insurance claims receivable 1,563 2,858

Due from regional offices/staff bureaus/branch offices (15,741) 18,103

Others 563,079

614,922

Allowance for doubtful accounts (1,325,145)

(1,297,011)

Receivables (net) 9,565,377

12,642,712

Due from NGAs includes receivable of PHIC for the balance of the computed deficiency in

employer share of the health insurance premium contributions to PHIC, uncollected portion of NG

Counterpart Sponsored Program CY 2011, billing made to PCSO for the counterpart premium

payment of the jeepney drivers for the 3rd District of Tarlac, billing for the enrollment of non-

National Household Targeting System (NHTS) enrolled indigents and NHTS families totaling

P2.28 billion.

Accounts Receivable consists of trade receivables due from the various clients/customers doing

business with the corporations under the audit jurisdiction of Cluster 6 which were made part of this

report. Of the total Accounts Receivable of P2.61 billion, 51 percent or P1.34 billion represents

trade receivables by PAGCOR from other companies, individuals and organizations, such as

gasoline/oil withdrawals by the National Parks Development Committee and amounts due from

bingo franchisees, poker operators and licensed casinos.

The Accrued Interest Receivable amounting to P1.76 billion interest earned from all short-term and

long-term investments of PHIC. While, the Due from LGUs amounting to P777.27 million

represents different LGUs in the regions as counterpart for the Sponsored Program.

The account Advances to Officers and Employees consists mainly of cash advances of OWWA to

Overseas and Head Office Personnel for special programs and projects which are subject to

liquidation. Of the total unliquidated cash advances of P55.20 million, P13.80 million (P3.66

million for the Head Office and P10.14 million for the Regional Welfare Officers (RWOs), or 25

per cent was granted in 2012, while P41.40 million or 75 per cent was granted in 2011 and prior

years. Out of P41.40 million, P5.50 million represents unliquidated cash advances of Head Office

Personnel whose salaries and other benefits were already withheld pending submission of

liquidation reports and also those whose report of liquidations were already submitted but were

inadvertently misplaced and had requested for relief from accountabilities while the balance of

P35.90 million are cash advances of accountable officers who were either resigned, AWOL,

separated from the service or employees of other government agencies wherein demand letters had

been sent.

5. INVENTORIES (net)

This account includes:

Particulars 2012

2011

Merchandise inventory 301,474 245,415

Medical, dental and laboratory supplies inventory 296,260 314,001

Drugs and medicines inventory 238,025 226,672

Chips and tokens 198,691 172,548


Gaming supplies 104,169 54,803


Finished goods inventory 27,078 11,197

Food supplies inventory 27,070 22,845

316

Particulars 2012

2011

Work-in-process inventory 22,039 18,594

Spare parts inventory 20,162 22,594

Supplies and materials inventory 14,331 22,661

Raw materials inventory 8,249 14,772

Construction materials inventory 8,244 9,401

Inventory in transit 6,966 7,299

Accountable forms inventory 6,163 6,616

Military and police supplies inventory 1 -

Others 29,412 24,068

Allowance for obsolescence (10,001) (11,265)

Inventories (net) 1,555,999

1,385,739

Merchandise Inventory includes the DFPC year-end physical inventory at MMS values amounting

to P250.82 million.

The Medical, Dental and Laboratory Supplies Inventory and Drugs and Medicines Inventory

accounts include P156.66 million and P109.65 million respectively inventories of NKTI as of

December 31, 2012.





Prepaid rent 80,802 212,117


Other prepaid expenses 60,270 31,263

Prepaid insurance 17,706 22,273


Prepaid subscriptions 948 761

Deposit on letters of credit 790 790

Deferred charges deposit on containers 11 11

Others 42,958 47,123

Prepayments and Deferred Charges 449,193

457,184

Advances to contractors include 15 percent mobilization fee for the one lot physical repair,

rehabilitation and restoration of the facilities of DAP located in Pasig and Tagaytay. The advance

payment will be deducted from periodic progress payments to the contractor.





Input tax 31,699 30,042


Other inventory 150 128

Stocks and securities of service enterprises 1 1

Others 6,873 7,746

Other Current Assets 124,376

116,891

Guaranty Deposits include the P45.37 million transactions made by PHIC Head Office and

Philhealth Regional Offices (PROs) in compliance with the requirements provided in the contracts

for office rentals.

317

8. LONG-TERM RECEIVABLES (net)

This account is comprised of:






Others 711,743 714,743

Allowance for doubtful accounts - long term (1,715,458) (1,720,014)

Long-Term Receivables (net) 1,292,042 1,323,655

The Long-term loans receivable refers to financial assistance granted to various proponents funded

from TRC Corporate funds or from special project funds as follows: Export Industry

Modernization Department II (EIMD II), Livelihood External Assistance Project II (LEAP II),

Barangay Agro-Industrial Development (BAID), Urban Livelihood Financing Department

(ULFD), Livelihood External Assistance Project I (LEAP I), Kakayahan (KKYH), Bagong Pagkain

ng Bayan Department (BPBD), Technology Utilization Financing Department (TUFD),

Comprehensive Agrarian Reform Program (CARP), Project Team Micro Lending (PTML), and

Balikatan Sa Kabuhayan Deparment (BSKD). Long-term loans are stated net of probable losses

from non-collection of certain loans. In previous years past due and delinquent accounts are

reclassified to Accounts with Legal which are also provided with Allowance for doubtful accounts.

In 2011, the Accounts with Legal is reverted back to Long Term Loans and its corresponding

Allowances since all these accounts are already overdue and delinquent.

9. LONG-TERM INVESTMENTS (net)



Investments in bonds 92,404,072 87,267,719

Other investments and marketable securities 14,194,295 12,843,901

Investment property 2,179,123 2,201,388

Investments in stocks and bonds 72,564 79,547

Investments in stocks 61,089 113,757

Investments in subsidiaries and affiliates 22,500 -

Equity investment 2,382 2,382

Investments in treasury bills/notes - 87,915

Others 11,397

8,259

Allowance for decline in value of investments (24,874)

(2,374)

Long-Term Investments (net) 108,922,548

102,602,494

Investments in bonds include the P409.46 million balances in investment in debenture bonds of

OWWA issued by the Home Guaranty Corporation.

The account Other investments and marketable securities includes the P14.10 billion investment of

OWWA managed by DBP and LBP placed under Investment Management Agreement (IMA) as

authorized by the Board of Trustees on August 9, 2004. The agreements with the said banks were

signed on April 21, 2005 designating them as investment managers of OWWA’s investible

funds/assets. The transfer of funds to the investment managers started on May 23, 2005.

The bulk of investment property amounting to P131.20 million consists of various

technocenters/productivity centers of the TRC located in different parts of Central Luzon. These

technocenters were initially established to augment the income generating activities of the

communities which were greatly affected by the eruption of Mt. Pinatubo. These were also

established to attract foreign and local investors in order to stimulate economic activities and

318

provide employment in the nearby communities, as well as generate foreign exchange for the

country. In addition, these technocenters serve as hubs for the Center’s Business Incubation

Program.

Furthermore, investment property also includes the proposed housing project of the PHC for its

employees amounting to P29.35 million. A total of 81,690 square meters covered by TCT Nos.

435850 and 485351 or 40 percent of the entire property was the actual allocation to PHC pursuant

to a Memorandum of Agreement entered into and signed between the GSIS and the PHC. As

regards the right of way, the only easement area that is accessible to the property through Katipunan

Extension is leading towards the GSIS property. The GSIS, through a GSIS Board Resolution, has

granted PHC access to the property.

10. PROPERTY, PLANT AND EQUIPMENT (net)



Land and land improvements 23,334,821

27,877,869

Machineries and equipment 11,872,780

9,390,219

Buildings 5,049,194

4,971,264

Office equipment, furniture and fixtures 3,842,805

3,479,004

Transportation equipment 752,966

749,378

Leasehold improvements 641,654

595,616

Construction in progress 525,057

410,209

Other property, plant and equipment 415,892

398,969

Land, building and leasehold improvements 221,159 213,968

Accumulated depreciation (11,358,202)

(10,242,390)

Property, Plant and Equipment (net) 35,298,126

37,844,106

Land and land improvements consist of the following:

a. The land of NFP was previously appraised at P7.08 billion but currently appraised at P2.20

billion and the decrease was due to the transfer of the remaining 22.3 hectare land being

occupied by the Foundation and the park to MIAA pursuant to EO No. 58 issued in September

2011. The amount of P2.205 billion of land is the appraised value of the 15-hectare land in

Pasay City which was being swapped with the PRA property in Parañaque City.

b. The CCP has a total of 608,569 square meters of land amounting to P796.39 million consisting

of 507,046 square meters reclaimed area assigned to CCP pursuant to Presidential Decree Nos.

15 and 74, dated October 5, 1972 and August 22, 1975, respectively, costing P507.05 million;

and the land where the Manila Film Center is situated which was assigned to CCP by the

Public Estate Authority in 1985 pursuant to LOI 1411 containing an area of 101,523 square

meters with a total cost of P289.34 million.

Machineries and equipment consists of the cost of hospital equipment, medical, dental, laboratory,

technical and scientific equipments recognized in the books of the four hospitals namely LCP,

NKTI, PCMC and PHC in the total amount of P3.96 billion and cost of various machineries and

equipment recorded in the book of PAGCOR amounting to P6.72 billion.

Buildings include the cost of hospitals, health centers and office buildings of the four hospitals with

an aggregate total of P3.39 billion.




Restricted funds/assets 2,377,647 1,051,226


Non-current receivables 1,215,389 1,193,417

319


Miscellaneous deposits 797,142 805,065


Acquired assets 551,351 518,603

Others/contingent assets 405,114 667,409

Other non-current assets 309,991 310,237


Advances to Provident Fund 216,115 353,949

Other assets 55,169 62,954

Arts, archeological specimen and other exhibits 52,392 52,392

Deferred tax assets 44,484 44,082

Input tax 34,868 230,546

Organizational cost 23,280 26,754

Advances on foreclosure 12,336 12,336

Unserviceable assets 8,720 5,320

Advances special projects 5,015 5,015

Pre-investment and project development cost 2,987 2,987

Items in transit 2,327 3,337

Non-performing assets 706 706

Other investment 892 892

Investment in stocks 64 64

Assets held in transit - 204

Others 114,437 103,111

Allowance for doubtful accounts, depreciation, valuation or losses (723,665)

(647,769)

Other Non-Current Assets 7,814,235

7,085,133

Restricted funds/assets include P2.04 billion cash deposits from retirees recorded in the books of

PRA which pertains to the member’s required visa deposit held in trust for the account of the

retiree-members, placed in NCTD with the DBP in the name of PRA, with maturity of one year.

Other receivables include the amount of P425.30 million representing balances of livelihood and

groceria loans granted by OWWA to member OFWs, including the Filipino Expatriates Livelihood

Support Fund (FELSF) loan which was granted to displace OFWs affected by the global economic

crisis. During the latter part of the year, loans in the amount of P10,000 to families of OFWs who

were victims of Typhoon Ondoy were also granted. Loans from OFWs for livelihood, groceries

and receivables from government agencies are already overdue and are not expected to be collected

during the current accounting period.

Included in the Non-current receivables is the OFW Loan Borrowers account of OWWA amounting to P425.30 million representing the balance of livelihood and groceria loans granted by OWWA to member OFWs, including the FELSF loan which was granted to displaced OFWs affected by the global economic crisis. Also, it includes receivable from Government Agencies in the amount of P132.11 million released to the Provincial Government of Misamis Oriental for the construction of a provincial hospital in Alubijid town with a wing reserved for OFWs. The amount represents 70 percent of the total construction cost of P45 million. The release of fund was approved by the Board of Trustees under Board Resolution No. 015 series of 2010 and covered by a Memorandum of Agreement between OWWA and the Province of Misamis Oriental. Further, there is a Non-Current Receivables – Others pertaining to the receivable from Landoil Resources Corporation amounting to P6.06 million. The loan was granted to Landoil for the repatriation expenses of stranded OFWs from Libya. It was secured by a real property mortgage consisting of 60 parcels of land located in Bataan. The property subject of the mortgage has been levied by the Provincial Government of Bataan due to non-payment of taxes.

Acquired assets represent assets foreclosed by TRC on delinquent loans. In previous years, it was

recorded at loan value (unpaid balance of the loan plus capitalized advances/expenses). In 2010,

foreclosures of assets were taken up in the books at appraised value.



320

Particulars 2012

2011

Accounts payable 12,058,618 12,139,451

Accrued expenses payable 7,107,570 6,412,745

Due to other NGAs 4,781,403 2,147,280

Due to other funds 4,678,170 4,065,370

Due to BIR 4,042,545 4,192,510

Funds held in trust 2,768,450 1,253,097

Due to national treasury 1,968,621 2,130,980

Customers’ deposits payable 1,750,172 1,428,751






Claims and benefits payable 1,698 1,880


Priority Development Assistance Fund 106,337 21,347

Due to PAGCOR Retirement Fund 100,000 132,226

Due to GSIS 96,611 85,290

Bills payable 83,640 86,959

Deposit liabilities 51,493 38,533

Letters of credit 28,867 31,054

Miscellaneous deposits 24,618 22,571

Sales commission payable 15,891 16,082

Due to PhilHealth 16,220 14,621

Due to PAG-IBIG 15,072 13,227

Output tax payable 7,757 8,027

Due to subsidiaries/affiliates 14,042 10,706

Retention payable 12,053 7,596

Contractor’s security deposits 9,328 6,532

Advances from clients 3,353 3,353

Unearned income 2,072 -

Amounts withheld from salaries and wages 1,133 946

Miscellaneous refunds and flexitrade payables 1,024

1,028

Supplies requisition for stock 755 755

Trust liability-bid documents 589 28

Due to retired/separated employees 486 486

Due to regional/staff bureaus/branch offices 168 2

Tax refunds payable 60 60

Due to LGUs 40 180

Legal account - 1,000

Others 1,906,905 1,615,357

Trade and Non-Trade Payables 43,387,064 37,448,165

The Accounts Payable account includes the accrued operating expenses of PCSO mainly to the

unpaid television, radio, print advertisements and monthly recurring charges the payables of the

Branch Offices amounting to P1.83 billion. It also includes the account Charity Fund amounting to

P1,56 billion pertaining to the amounts payable to hospitals and other institutions/agencies for

financial assistance under the Individual Medical Assistance Program of PCSO.

The Accrued expenses payable account includes the 93 percent or P6.72 billion payables of PHIC.

The bulk of the Due to BIR account pertains to unpaid franchise tax, Value-added Tax (VAT) and

withholding taxes as of year-end. The amount of taxes is less than 30 days of age and is paid in

January of the following year.

The account Due to other funds pertains to the balance/available fund of the Prize and Charity

Funds of PCSO totaling P4.33 billion. Prizes of winning tickets not claimed after a period of one

year are forfeited and transferred to the Charity Fund.

Customers’ deposits payable of P1.75 billion pertains to fund transfers received by PITC from

various client agencies such as Philippine Army, Bureau of Jail Management and Penology,

321

Philippine Navy, Armed Forces of the Philippines – GHQ, National Computer Center and National

Economic Development Authority, which were provided for the procurement of various requested

items.




Loans payable 1,137,240 1,137,240

Estimated liability for employees benefits 9,778 8,148

Guarantee deposits payable 378,913 353,276



Due to affiliates 19,106 16,768

Accrued retirement benefits 13,113 17,720

Due to other GOCCs 38 7

Others 11,741,681 10,989,523

Loans and Advances Payable 13,483,415

12,776,318

The Loans Payable account represents the total outstanding principal of the subsidiary loan (SL)

covered by the Relending Agreement (RA) between the Government of the Republic of the

Philippines (GROP) as the lender and the TRC as the borrower. The GROP has sourced the funds

relent to TRC, in the amount of SIX BILLION FIFTEEN MILLION Japanese Yen

(Y6,015,000,000), from the Overseas Economic Cooperation Fund (OECF) through Loan

Agreement (LA) No. PH P-83 dated January 27, 1988. At the time of release, the peso equivalent

of the loan was P1,202.90 million and including management/consultancy fees, the total peso loan

amounted to P1,295.00 million. The RA specified that the SL proceeds were for financing the

implementation of the Export Industry Modernization Project II (EIMP II) and TRC is mandated to

ensure that the OECF loan is fully disbursed within five years after the effectivity of the LA. Under

the past administration, the Center’s request to convert the loan into subsidy was granted by the

Department of Finance in July 2003 but subject to certain conditions, including the transfer of the

fund balance to the Bureau of the Treasury. The transfer of fund requirement was not complied

with because there were still some transactions to be funded at that time; hence the reclassification

of the loan to subsidy was not effected. With the on-going rationalization at/rehabilitation of TRC,

Management is again pursuing the approval by the GROP of the conversion of the loan into

subsidy.

14. OTHER NON-CURRENT LIABILITIES



Deferred tax liability 81,743 80,908

Others 860,438 321,423

Other Non-Current Liabilities 942,181

402,331

The Other Non-Current Liabilities of P860.44 million includes PHIC’s unearned accreditation fees

amounting P520.32 million of medical service providers with validity period of three years.

15. RESERVE FUND

This account includes the P115.08 billion reserve fund of PHIC equal to the limit actuarially

estimated for two years’ projected Program expenditures as provided for under Section 27 of RA

7875, which states that “the Corporation shall set aside a portion of its accumulated revenues not

need to meet the cost of the current year’s expenditures as reserved fund: Provided, That the

322

amount of reserves shall not exceed a ceiling equivalent to the amount actuarially estimated for

two years’ projected Program expenditures xxx.”

16. DONATED CAPITAL

This account includes the appraised value of P2.92 billion of the 12-hectare lot donated to LCP by

the National Housing Authority where the former stands, subject to reappraisal as soon as the

original cost of the same becomes available.

Moreover, this account includes donations to the DAP from the National Government (NG) through

the Office of the President (OP). The said amount is to remain unimpaired and shall be returned to

the contributor/donor in the event of the dissolution of the Academy. Part of the amount, or P10

million, is earmarked for the rehabilitation of DAP facilities for the Graduate School of Public and

Development Management (GSPDM).

17. INCOME AFTER SHARE OF NATIONAL GOVERNMENT


Business income 94,376,813

87,568,287

Service income 2,319,126

2,137,891

Permits and licenses 76,542

26,629

Gain/premiums 64,321

75,110

Other income 9,927,586

9,250,187

Share of National Government (17,324,762) (15,868,308)

Income After Share of National Government 89,439,626 83,189,796

Business income during the year consists mainly of PHIC’s income from members’ contribution

amounting to P33.06 billion and PAGCOR’s income from gaming operations winnings totaling

P27.23 billion. This account also includes sales revenue of DFPC and PCSO amounting to P10.10

billion and P4.76 billion, respectively. The other business income recorded were from hospital fees,

canteens/restaurants/ dormitories/guest houses/cottages/markets/waterworks systems operations,

joint ventures, parking fees, management fees, rent, sales revenue and others.

Service income for the current year pertains mainly to OWWA membership fees of P1.72 billion,

DAP consultancy and research fees of P219.76 million, PRA passport and visa application fees of

P111.11 million, BSP membership fees of P106.59 million, participation fees of exhibitors in

CITEM trade fairs of P27.19 million, etc.

Permits and licenses consist mainly of income earned by PRA which includes identification

card/registration fees earned.

Other income includes OWWA interest income on investments/loans amounting to P905.78 million

which were managed by DBP and LBP placed under Investment Management Agreement (IMA) as

authorized by the Board of Trustees on August 9, 2004. PAGCOR’s revenue from Interest income,

Miscellaneous income and Subsidy to Branch Offices totaling P846.45 million and PCSO Other

income and Share from STL totaling P816.57 million.


This pertains to the following:


Salaries and wages 5,498,306

5,218,936

Other compensation 4,985,131

5,073,497

Personnel benefits contributions 948,443

726,574

Others 4,919,917

4,243,099

Personal Services 16,351,797

15,262,106

323




Members benefits 47,214,706 35,016,334

Cost of good sold 8,367,222 8,211,389

Marketing expenses 3,564,710 2,754,358

Rent expenses 2,968,224 2,564,348

Supplies and materials expenses 2,510,857 2,181,657

Subsidies and donations 2,276,331 1,208,883

Professional services 1,759,814 1,541,578

Depreciation expense 1,671,480 1,580,186

Utility expenses 1,460,957 1,284,910


Quantified free service 791,859 674,130

Advertising expenses 512,378 918,112

Confidential, intelligence, extraordinary and miscellaneous 309,332 327,406

Discounts and allowances 289,720 271,216

Taxes, insurance premiums and other fees 249,254 265,603

Commission expenses 244,171 207,160


Bad debts expense 193,358 122,231


Entertainment expenses 142,864 108,812


Representation expenses 68,383 84,918

Printing and binding expenses 49,206 26,560

Catering services 42,730 32,780

Public Relation expense 34,951 40,671

Losses/loss of assets 32,662 32,276

Storage expenses 32,589 35,080

Transportation and delivery expenses 29,884 21,162

Obsolescense - IT Software 29,113 -

Sales discounts 28,462 23,310

Grants, subsidies and contributions 25,390 18,728

Rewards and other claims 24,870 22,085

Membership dues and contributions to organizations 19,089 17,833

Amortization expense 16,050 13,304

Auditing services 12,749 14,836

Interest expense 11,998 14,074

Foreign exchange risk fee 11,881 13,746

Donations 10,858 13,973

Insurance expense 7,888 12,841

Handling 6,382 5,862

Subscription expenses 6,380 6,303

Board of Director's Allowance 4,829 4,805

Discretionary expenses 5,756 5,001

Claims and losses paid 5,583 4,637

Foreclosure and litigation expenses 3,205 1,208

Sales returns and allowances 1,682 -

Medical benefits 1,593 2,122

Penalty expenses 1,190 -

Research, Explorations and Development Expenses 613 209

Insurance benefits 264 269

Impairment loss 250 23,250

Accommodation/board and lodging 76 14

Survey expenses 73 38

Copier service expenses 27 26

Others 1,166,258 1,091,727

Maintenance and Other Operating Expenses 77,541,501 61,966,736

324

20. FINANCIAL EXPENSES

This pertains to the following:


Interest expenses 209,389 231,216

Bank charges 5,260 5,808


Foreign exchange differential 1,640 1,018

Financial charges 1,233 1,015

Others 135,238 56,417

Financial Expenses 356,776 300,161

21. OTHER EXPENSES

This account includes the following:


Program and Projects 666,161

1,139,822

Others - loss on foreign exchange 91,818

7,700

Loss on sale of fixed assets/sale of investment 4,277

3,753

Other Expenses 762,256 1,151,275

Programs and projects represent expenses incurred by OWWA consisting of insurance claims, skill

and career development, security and protection, economic benefits, integrated support and

services, psychological and social well-being and other programs and special events. The insurance

claims refer to the insurance benefits of active OFW members.

22. CORPORATE INCOME TAX

As provided for under Section 27(c) of Republic Act No. 8424 (The National Internal Revenue

Code of 1997), PAGCOR together with the Government Service Insurance System (GSIS), Social

Security System (SSS), PHIC and the PCSO, was exempted from the payment of corporate income

tax. Subsequently, however, under Republic Act No. 9337 dated July 1, 2005, said provision was

amended by excluding PAGCOR from the GOCCs exempted from corporate income tax payment.

In view of this, PAGCOR filed a Petition for Certiorari and Prohibition with the Supreme Court per

G.R. No. 172087 dated April 17, 2006. The Supreme Court, on March 15, 2011, rendered its

decision that (a) the exclusion of PAGCOR from the enumeration of GOCCs exempted from

corporate income tax is valid and constitutional; while (b) BIR Revenue Regulations No. 16-2005

insofar as it subjects PAGCOR to 10 percent VAT is declared null and void for being contrary to

the National Internal Revenue Code of 1997, as amended by Republic Act No. 9337. On April 6,

2011, PAGCOR filed a Motion for Reconsideration regarding its exclusion from the list of GOCCs

exempted from corporate income tax. In its resolution dated May 31, 2011, the Supreme Court

resolved to deny with finality the said Motion for Partial Reconsideration.

The PAGCOR Board of Directors in its meeting on January 4, 2012 approved the partial settlement

of tax liabilities in the amount of P856.98 million, subject to validation of the ongoing audit

investigation being conducted by BIR.

On February 29, 2012, BIR issued Revenue Memorandum Circular (RMC) No. 8-2012. Said RMC

covers the circularization of the relevant excerpts from the En Banc Supreme Court Decision in the

case of PAGCOR vs. the BIR under G.R. No. 172087 dated March 15, 2011, on excluding

PAGCOR from exemption from corporate income tax and the declaration of nullity of the pertinent

provisions of Revenue Regulations No. 16-2005 relative to the imposition of 10 percent VAT on

PAGCOR; and subsequently, the En Banc Court Resolution dated May 31, 2011 denying with

finality the relevant motions for partial reconsideration thereof.

325

PAGCOR voluntarily remitted to the Bureau of Internal Revenue (BIR) its income tax of P657.18

million for November 1, 2005 to December 31, 2010 and P960.26 million for CY 2011 in

December 2011 and March 2012, respectively.

PAGCOR Remittance of corporate income tax pertaining to CY 2012 amounting to P1.07 billion is

up-to-date in compliance with the NIRC and BIR Revenue Memorandum Circular (RMC) No. 8-

2012 that was issued on February 29, 2012.

23. RESTATEMENT OF ACCOUNTS

Of the 25 Annual Audit Reports (AARs) of the GOCCs included in this report, there were 11 AARs

whose financial statements in 2012 had been restated to reflect the impact of changes in accounting

policies and estimates, and the correction of prior period errors, in accordance with Philippine

Accounting Standard No. 8.

Schedule 1

Acronym Principal Office Address Name of Auditor Position Enabling Law/Creation

1 BSP 181 Natividad Almeda-Lopez

Street, Ermita, 1000 Manila

Eleonor R. Tejada State Auditor III Commonwealth Act No. 111


amended by Presidential

Decree No 460 and Republic

Act No. 7278 dated

March 24, 1992

2 CITEM ITC Complex, Roxas Blvd, cor

Buendia St, Pasay City

Emilia D. Malonzo State Auditor IV EO Nos. 989 and 133 as

amended by EO No. 242,

dated July 24, 1987

3 CITC 20 Russet St, SSS Village,

Marikina City

Yolanda Ulep State Auditor IV RA No. 3470 and EO No.

133 dated February 27, 1987

4 CCP CCP Complex, Roxas Boulevard,

Pasay City

Leticia P. Torres State Auditor IV EO No. 30 year 1966

5 DAP San Miguel Avenue, Pasig City Marissa F. Parinas State Auditor IV PD No. 205 dated June 7,

1973, amended by PD No.

1061 dated December 9, 1976

and EO No. 288 signed on

July 25, 1987

Boy Scouts of the Philippines

Cultural Center of the Philippines

Corporate Government Sector

List of Government Owned and Controlled Corporations

Name of Agency

Cluster 6

Center for International Trade

Expositions and Missions

Cottage Industry Technology

Center

Development Academy of the

Philippines

326

Acronym Principal Office Address Name of Auditor Position Enabling Law/Creation Name of Agency

6 DFPC Fiesta Mall, EHA Building,

Ninoy Aquino Ave, Parañaque

City

Rebecca Ragsag State Auditor IV EO No. 46 dated September

4, 1986; reorganized to DFPC

under Section 89 of RA No.

9593 (Tourism Act of 2009)

dated 11/10/2009, attached to

the Department of Tourism

7 GSP Rm. 212 Dept. of Tourism Bldg.

TM Kalaw St., Ermita, Manila

Eleonor R. Tejada State Auditor III Commonwealth Act No. 111


8 IBC 13 Broadcast City, Capitol Hills,

Diliman, Quezon City

Rosario S. Carpio State Auditor IV SEC Registration No. 4118

dated May 11, 1970. EO No.

11 dated April 8, 1986

created a Board of

Administrators to manage

and operate the business and

affairs of IBC and have the

custody of their funds and

assets subject to the

supervision and control of the

PCGG

9 Lung Center of the Philippines LCP Quezon Avenue, Quezon City Elizabeth M. Savella State Auditor IV PD No. 1823 dated January

16, 1981

10 NKTI East Avenue, Diliman, Quezon

City

Myrna D. Roque State Auditor IV PD No. 1832 dated January

16, 1981

Girl Scouts of the Philippines

National Kidney and Transplant

Institute

Intercontinental Broadcasting

Corporation

Duty Free Philippines

Corporation

327


11 Nayong Pilipino Foundation NPF MIA Road, Pasay City Marilou G. Tuazon State Auditor IV PD 37 dated November 6,

1972

12 OWWA F.B. Harrison cor. 7th Street,

Pasay City

Evelyn M. Martinez State Auditor III LOI No. 537 issued on May

1, 1977

13 PAGCOR PAGCOR Corporate Office,

Hyatt Hotel and Casino Manila,

M.H. del Pilar cor. Pedro Gil

Street, Malate, Manila

Belen B. Ladines State Auditor V PD 1067-A dated January 1,

1977, amended by PD Nos.

1067-B, 1067-C, 1399 and

1632 which were

subsequently consolidated

into one statute, PD 1869

dated July 11, 1983

14 PCED UP - School of Economics,

Diliman Campus, Quezon City

Yolanda Ulep State Auditor IV PD No. 453 dated May 13,

1974

15 PCSO PICC Secretariat Building, CCP

Complex, Pasay City

Cynthia M. Evasco State Auditor V Philippine Legislature Act

No. 4130 on October 30,

1934 and later amended by

RA No. 1169 in 1954 and

Batas Pambansa Blg. 42 on

Sept. 24, 1979

16 Philippine Children's Medical Center PCMC Quezon Avenue, Quezon City Corazon D. Tenorio State Auditor IV PD No. 1631 dated August

10, 1979

17 Philippine Heart Center PHC East Avenue, Diliman, Quezon

City

Ana Maria N. Rivera State Auditor IV PD No. 673 dated March 19,

1975

18 PHIC Ortigas, Pasig City Sylva Z. Isiderio State Auditor V RA 9241 dated February 10,

2004

Overseas Workers Welfare

Administration

Philippine Center for Economic

Development

Philippine Charity Sweepstakes

Office

Philippine Health Insurance

Corporation

Philippine Amusement and

Gaming Corporation

328


19 PIDS NEDA Building, 106 Amorsolo

Street, Legaspi Village, Makati

City

Marissa F. Parinas State Auditor IV PD 1201 dated September

1977

20 PITAHC Yolanda Ulep State Auditor IV RA No. 8423 dated July 29,

1997

21 PITC 5th Flr NDC Bldg, Tordesillas St,


Maribel B. Bayta State Auditor IV PD No. 252 dated July 21,

1973 as amended by PD No.

1071 on January 25, 1977.

Subsidiary:

22 PITC Pharma, Inc. PPI Maribel B. Bayta State Auditor IV SEC Registration No. 99913

dated November 9, 2005

23 PTNI Visayas Avenue, Quezon City Rosario S. Carpio State Auditor IV RA No. 7306 dated March

26, 1992

24 PRA 29th Floor, Citibank Tower, 8741

Paseo de Roxas, Makati City

Rosalie D. Sarmiento State Auditor IV EO No. 1037 dated July 4,

1985

25 TPB (PCVC) 4th Flr, Legaspi Towers , 300

Roxas Blvd, cor Vito Cruz,

Manila

Nenita G. del Rosario State Auditor IV PD No. 867 and PD No.

1448, reorganized to TPB,

attached to the Department of

Tourism for policy and

program coordination under

RA No. 9593 (Tourism Act

of 2009) dated 11/10/2009

26 Technology Resource Center TRC EDSA, Makati City Belinda I. Santiago State Auditor IV PD No. 1097 dated February

23, 1977

Tourism Promotions Board

(formely Philippine Convention

and Visitors Corporation)

Philippine Institute of Traditional

and Alternative Health Care

People's Television Network, Inc.

Philippine Retirement Authority

Philippine Institute for

Development Studies

Philippine International Trading

Corporation

2nd Flr NDC Bldg, 116

Tordesillas St, Salcedo Village,

Makati City

329


27 VFP Arroceros, Manila Pedro P. Pabelonia State Auditor IV RA No. 2640, 1968Veterans Federation of the

Philippines

330

331

Chapter IV

Summary Audit Results

54 In line with Section 43.2 of PD 1445, otherwise known as the Government Auditing

Code of the Philippines, a report of audit for each calendar year shall be submitted by

the head of each auditing unit, through the Commission, to the head or the governing

body of the agency concerned, and copies thereof shall be furnished the government

officials concerned or authorized to receive them.

55 It is the responsibility of the respective management of GOCCs/GFIs to prepare and

present the financial statements in accordance with the adopted applicable financial

reporting framework. They are also responsible for the installation and

implementation of internal controls necessary to ensure that the financial reports are

free from material misstatements.

56 COA’s examination of the financial statements is primarily aimed at expressing an

opinion on these statements based on the results of audit. Collectively, such audits are

in accordance with the requirements of the Philippine Standards on Auditing

applicable to the public sector perspective in addition to the pertinent provisions of

P.D. 1445. These standards mandate that the audit comply with the ethical

requirements, plan and perform the examination to obtain reasonable assurance that

the financial statements are free from material misstatements.

57 The audits conducted involved the adoption of procedures deemed necessary to obtain

audit evidence/s on the authenticity of figures and disclosures in the individual

financial statements of GOCCs/GFIs. Audit procedures selected were primarily based

on the auditor’s assessment of the risks pertaining to the preparation of the financial

statements and were used in determining whether material misstatements have been

committed or not and whether any misstatements committed were due to fraud or

unintentional error. The audits conducted also included the assessment of the

appropriateness of accounting policies used, the reasonableness of management’s

accounting estimates and evaluation of the overall presentation of the financial

statements. If audit evidences obtained are sufficient and appropriate, these will

provide basis for the auditor to render an audit opinion on the financial statements of

the GOCC/GFI as presented in the individual Annual Audit Report (AAR).

58 The audit of the financial statements of GOCCs/GFIs, include the conduct of

compliance or regularity audit to determine that transactions and operations are

carried out and completed in accordance with the applicable laws, rules and

regulations particularly on the prevention of irregular, unnecessary, excessive,

extravagant, or unconscionable expenditures. The audit of the same financial

statements also include value for money audit aimed at ensuring that the operations of

the GOCCs/GFIs in pursuit of its mandate are carried out in an economical,

332

efficient and effective manner. The audits are also aimed at ascertaining value for

money of agency-specific or government-wide or sectoral implementation of

programs and projects.

59 The preparation of an Annual Audit Report pursuant to Section 43 of PD 1445

includes expressing an independent auditor’s opinion on the financial statements and

the disclosure of audit findings/observations with emphasis on recommendations and

remedial measures intended to improve government operations as well as the status of

implementation of prior year’s audit recommendations. These audit findings highlight

the results of the conduct of the financial, value for money, compliance and other

audits and are reported thru the AAR together with the corresponding

recommendations that provide value-added measures expected to enhance financial

reporting, ensure compliance with pertinent government laws/rules/regulations and

enjoin economical, efficient and effective conduct of government operations.

60 The individual AARs of GOCCs/GFIs are published in the COA website at

http://www.coa.gov.ph. These reports present a more detailed information and

discussion on the results of the audit of financial statements, audit

observations/findings and the corresponding recommendations specific to each

auditee, as well as the status of implementation of previous years’ audit

recommendations.

Summary audit opinions

61 An independent auditor’s report/audit opinion is rendered on the individual financial

statements of GOCCs/GFIs which form an integral part of the AAR. Annex 17 shows

the types of audit opinions rendered on the respective financial statements of

GOCCs/GFIs based on the AARs that had been transmitted to management.

62 An unqualified opinion (“U”) is expressed by the auditor when he concludes that the

financial statements are in all material respects, prepared in accordance with the

applicable financial reporting framework.

63 A qualified opinion (“Q”) is expressed when: (a) having obtained sufficient

appropriate audit evidence, the auditor concludes that misstatements, individually or

in the aggregate, are material, but not pervasive, to the financial statements; or (b) he

is unable to obtain sufficient appropriate audit evidence on which to base the audit

opinion, but concludes that the possible effects on the financial statements of

undetected misstatements, if any, could be material but not pervasive.

64 An adverse opinion (“A”) is expressed when, having obtained sufficient appropriate

audit evidence, it is determined that the misstatement/s, individually or in the

aggregate, are both material and pervasive to the financial statements.

333

65 A disclaimer of an opinion (“D”) is expressed when the auditor is unable to obtain

sufficient appropriate audit evidence on which to base the opinion, and consequently

concludes that the possible effects on the financial statements of undetected

misstatements, if any, could be both material and pervasive.

66 During the year, eighty-five (85) unqualified audit opinions, one hundred seventy

(170) qualified audit opinions, fourteen (14) adverse audit opinions and three (3)

disclaimer of opinions were expressed on the financial statements of GOCCs.

67 Shown below in tabular and summarized form are the types of audit opinions,

rendered by Clusters, resulting from the audits conducted on the financial statements

of GOCCs/GFIs.

68 The tabulated regional details of audit opinions issued for the financial reports of

water districts is discussed in Volume II-B of the AFR.

Summary of significant and common audit

observations and corresponding recommendations

69 In line with the provisions of PD 1445, the Annual Audit Reports (AARs), rendered

by COA for each and every GOCC/GFI, discuss in detail the audit

observations/findings, recommendations and other necessary and relevant information

needed for the improvement of government operations. A summary of the more

significant observations unique to each agency and those equally significant but

common among several GOCCs/GFIs were lifted from the numerous AARs already

transmitted to the management of the GOCCs/GFIs and are presented in the following

pages.

Table II – 1

Types of Audit Opinions Rendered

Calendar Year 2012

Cluster Unqualified Qualified Adverse Disclaimer

1 14 6 0 0

2 7 6 0 0

3 8 6 3 0

4 17 18 5 0

5 3 8 3 1

6 11 13 0 1

Water Districts 25 113 3 1

Total 85 170 14 3

334

70 The significant audit observation/s, as discussed in detail in the individual AARS of

the respective GOCC, generally become the basis for the issuance of a qualified or

adverse auditor’s opinion or a disclaimer of an opinion. The brief and concise

summary of selected significant findings and recommendations are hereunder

presented by agency in alphabetical order.

Table II – 2

Summary of Selected Significant Audit Findings and Recommendations

Selected Findings Recommendations Amount (in thousands)

Bangko Sentral ng Pilipinas (BSP)

The use of two different methods in

determining the historical costs of foreign

securities is contrary to the principle of

consistency, thereby overstating the

Trading Gain or Loss – Foreign Securities

account and understating the Revaluation

of International Reserve (RIR) – Price

Fluctuations – Foreign Securities account

by P6.25 billion. Also, the incorrect

computation of RIR – foreign exchange

(FX) rate fluctuations resulted in the

understatement the RIR – FX rate

fluctuations - Foreign Securities by 22.56

billion in CY 2012.

Manually apply the moving average

method consistently while awaiting

the TMS implementation in

accordance with paragraph 39 of

the Framework for Preparation and

Presentation of Financial

Statements; and effect the necessary

adjustments on the affected

accounts to present them fairly in

the financial statements.

22,816,623

The undelivered banknotes for CY 2012

and 2011, resulted in the deficiency of the

contingency reserve and buffer stock for

CY 2012, amounting to P88.00 billion and

P70.74 billion, respectively, thus,

exposing current inventories to immediate

exhaustion and leaving a minimal level

for contingency reserve and buffer stock,

contrary to bank policies.

Observe close coordination and

monitoring of production and

distribution centers to meet

currency requirements; evaluate

effect of delay in the delivery of

ordered banknotes from the

outsource producer and determine

measures to address the issues on

the deficiency of the contingency

reserve and buffer stock; and revisit

the forecast made by the CMSS vis-

à-vis the in-house and outsource

production and deliveries.

158,745,000

335


The validity of the outstanding creditable

withholding taxes (CWTs) under the

Withholding Tax at Source (WTS)

account of the Supervision and

Examination Sector (SES) cannot be

ascertained contrary to Section 5.58.3 of

Revenue Regulation 2-98, which might

result in the overstatement of the account.

Regularly monitor the submission

of the Certificates of Creditable

Withholding Tax at Source (BIR

Form No. 2307) from Banks/

NBQBs as withholding agents of

BSP’s ASF; consider applying for

cash refund or tax credit certificate

as prescribed under Section 204 (c)

and 229 of the National Internal

Revenue Code of 1997 for the

excess and unutilized withholding

taxes; and effect the necessary

adjustments to reflect the valid

amount of WTS account in the

books of SES-BSP as at 31

December 2012 after reconciliation.

212,417

BCDA Management and Holdings, Incorporated (BMHI)

BMHI has not fully enforced its estate

management of the Philippine National

Police/National Police Commission

(NAPOLCOM) housing program.

Expedite the investigation or

evaluation on the legitimacy or

authenticity of occupants of the

housing units. Also review the

outstanding balances of awardees/

beneficiaries; and send

confirmation letters to awardees and

reconcile any differences.

NQ

Bislig Water District (Region XIII)

Due to the antiquated pipelines and

inefficient water meters brought about by

normal wear and tear, the District's non-

revenue water loss exceeded the twenty

percent (20%) acceptable NRW level set

by the LWUA which reduced the

District's revenue by P12.3 million and

affected not only the quantity but also the

quality of water service rendered to its

consumers.

Intensify the conduct of regular

inspection of water pipes and

meters to maintain water pipes and

reduce water loss; formulate a more

comprehensive and long range plan

prioritizing measures that will

increase revenue/s and improve the

quality of service to consumers.

12,300

The use of unnumbered official receipts in

accepting payment of water bills with an

average of 6,000 receipts for collections

amounting to P2.5 million a month could

not be properly monitored and could open

chances for unauthorized use or misuse,

thus, exposing to losses of cash

collections.

Strictly implement the use of pre-

numbered official receipts in

accepting payments of water bills

along side with the computerized

collection and billing system

pursuant to Section 68 of PD 1445

to prevent losses or misuse of

collections/ revenues.

2,500

336


Cantilan Water District (Region XIII)

Various procurement of goods were not

advertised/posted in the PhilGEPS

website nor posted in conspicuous places

to invite bidders contrary to Article V of

the Memorandum of Understanding

between the LWUA and the District and

Sections 8 and 21 of RA 9184.

Strictly observe the Procurement

Law as provided under Section 8

and 21 of RA 9184 which requires

the posting of all procurement of

goods and services continuously in

the PhilGEPS website to promote

transparency and efficiency in the

procurement procedures.

7,845

Center for International Trade Expositions and Missions (CITEM)

The increase in its 2012 Net Income of

P41.76 million from the previous year’s

net loss of P37.60 million was due mainly

from the receipt of national government

subsidy totaling P 179.51 million

compared to the 2011 subsidy of P79.69

million and not as a result of good

management and sales performance since

revenues generated from project trade

fairs decreased by 15 percent.

Adopt a risk assessment and

management process to gauge

performance and level of success of

the projects.

41,759

The 50-year lease contract of the 4.9-

hectare government land between DTI and

PHILEXPORT was disadvantageous to

the government, resulting in: a)

substantial loss of P11,608 million in CY

2012; b) deprived the GOCC of its right

over the 4.9-hectare government property;

and c) incurrence of rental expenses in the

amounts of P 85.94 million from 2008 to

2012.

Pursue the immediate amendment

of the lease contract to protect the

interest of the government and

recover CITEM's rights over the

property; make representation with

DTI, DBM and the Bureau of

Treasury to regain the Center's

rights over the property; seek legal

assistance from the Office of the

Government Corporate Counsel

relative to the non-compliance by

PHILEXPORT on the terms of the

lease.

11,608,000

Civil Aviation Authority of the Philippines (CAAP)

Earned revenue from airline companies

not collected due to failure to issue

assessment and billing statements on time.

Acquire a program or a system to

hasten the assessment and

preparation of billings to airline

companies.

1,450

337


Carcar Water District (Region 7)

The balance of the Land account was not

ascertained due to the following: a) eleven

parcels of land with an approximate area

of 1,239.50 sq.m. were not titled in the

name of CWD, a situation which exposes

the agency to possible adverse claims

from third parties; b) two parcels of

donated land with an approximate area of

83.5 sq.m. were without recorded value

and proper titles; c) the land area of two

parcels of land included in the Deeds of

Donation differed with the Report of the

Physical Count of Utility Plant In Service

(UPIS) as of December 31, 2012; and d)

the physical inventory report carried

information that the land where the office

building is located has an encumbrance.

Closely monitor the titling of the

properties donated and/or

purchased. If needed, require the

Industrial Relations Development

Officer (IRDO) to submit a

quarterly status report on the titling

of CWD acquired lots to enable top

management and the Board to

consider other alternatives that will

fast tract the titling process.

2,748

Development Bank of the Philippines (DBP)

Miscellaneous liability increased by P2.35

billion in 2012 due to the recognition of

the residual gain on the mark-to-market of

foreign exchange risk cover of foreign

borrowings under the Official

Development Assistance (ODA) as

miscellaneous liability instead of profit or

loss, in violation of Philippine Accounting

Standards (PAS) 21and 39, Monetary

Board Resolution No. 1063 and BSP

Circular No. 494, thereby resulting in

overstatement of total liabilities and

understatement of profit or loss as well as

understatement of retained earnings.

Effect the necessary corrections

and/or adjustments in its Financial

Reporting Package to comply with

the applicable PAS as well as BSP

rules and regulations to avoid the

imposition of sanctions by the BSP.

9,331,858

The Hybrid Tier 1 (HT1) securities were

classified as Other Equity Instrument

contrary to PAS 32 and the Revised

Framework, resulting in the overstatement

of capital funds and understatement of

liabilities.

In addition, the related transaction costs

were not amortized contrary to PAS 39

resulting in the understatement of

expenses and retained earnings.

Book the necessary adjusting

entries to recognize the securities as

a financial liability and the related

interest, losses and gains as

expense/income in the profit or loss,

in compliance with the standards

governing the preparation/

presentation of general-purpose

financial statements, and

consequently with PAS 1, 32 and

39.

5,336,500

49,050

338


ODA funds withdrawn from Multi-Lateral

Financial Institutions remained unutilized

as at December 31, 2012, thereby casting

doubt as to whether the intended purposes

for these funds could be achieved.

Intensify promotion and marketing

of ODA borrowings in support of

the government’s millennium

development goals of poverty

alleviation, minimizing infant

mortality, protection of

environment and development of

renewable source of energy;

consider the cancellation of the loan

agreements or pretermination of the

loans with the funders if it would be

more advantageous to the

government.

8,454,274

Sixty nine percent of the P557.50 million

credit facility granted to a paper company

was used to take out a loan account from a

private bank, contrary to DBP’s mandate.

Comply strictly with agency

mandate; refrain from granting

loans to buy out loans from other

banks; foreclose the mortgaged

properties offered as collateral; and

initiate disciplinary measure against

erring officers for any loss the

government may suffer.

385,000

Loan to a vessel company under Logistics

Infrastructure Development Project

(LIDP) was not secured by chattel

mortgage on tangible assets, contrary to

BSP Manual of Regulations for Banks

(BSP MORB) resulting to possible non-

recovery of credit exposure.

Require the vessel company to put

up collaterals/securities to improve

the security position of DBP;

strictly observe and implement the

BSP MORB in the granting of loans

and other credit accommodations;

strictly monitor the implementation

of the loan accommodation; and

hold responsible those officers who

facilitated the approval of the loan.

137,318

Claims of DBP from the National

Government (NG)/Bureau of the Treasury

(BTr) on FXRC pertaining to amortization

payments of ODA borrowings disclosed

an over billing due to the conversion of

the 3rd currency (Euro and Yen) and US$

to Peso, resulting to the overstatement of

income by the same amount.

Effect the necessary corrections

and/or adjustments in its Financial

Reporting Package to comply with

the applicable Philippine

Accounting Standards as well as

BSP rules and regulations to avoid

the imposition of sanctions by the

BSP.

95,877

339


Real Property Taxes (RPT) of acquired

assets were not paid within the prescribed

period, exposing the Bank to risk of

paying penalty charges and thereby

incurring additional expenses.

Pay the real property taxes within

the prescribed period to avoid

penalty charges; avail of the 10 to

20 percent rebate on principal tax

by paying taxes due within the

period mandated by the regulation;

and require the account officer to

render a periodic report on RPT

payments.

690,662

DBP Leasing Corporation (DLC)

DLC’s vessel was dropped from the books

due to its reported loss/damage and no

relief from property accountability was

requested from COA.

Comply with existing regulations

on request for relief from property

accountability; and formulate

internal policies, systems and

procedures in the handling of

losses/damages to protect the

interest of the Corporation and to

establish the liability of accountable

officers.

36,400

DBP Management Corporation (DBPMC)

The investments in equity of 52,850

shares are not supported by stock

certificates, thus the evidence of

ownership over the shares cannot be

established which is not in accordance

with Section 121 of Presidential Decree

No. 1445, Framework for the Preparation

and Presentation of Financial Statements

and National Guidelines on Internal

Control Systems.

Secure copies of the stock

certificates to establish ownership

of the shares of stocks as well as

stock dividends. Likewise, account

for the dividends declared and

issued, if any, for proper

recognition and valuation.

3,501

Employees' Compensation Commission (ECC)

The ECC has insufficient mechanism to

monitor the management and use of the

State Insurance Fund (SIF) under the

custody of the Social Security System and

the Government Service Insurance

System, thereby depriving ECC with

adequate information in making decisions

to perform its mandate as provided for

under Article 177 of PD 626 creating the

ECC and SIF.

Closely monitor the investment of

SIF and require the SSS and GSIS

to regularly submit audited financial

statements of the SIF; define ECC’s

risk appetite as guide in investing in

the SIF; conduct periodic actuarial

study to assess the SIF’s capability;

and formulate policy on the

charging of management fees.

NQ

340


The payment for 30-seconder radio spots

may be dispensed with in favor of other

modes of information dissemination that

will promote beneficiary and stakeholder

awareness at costs more beneficial to the

ECC.

Suspend the radio spots advertising

and consider other alternatives that

will bring the ECC programs

awareness to the intended

stakeholders at lower costs.

1,715

Government Service Insurance System (GSIS)

Condonation of the entire interest of

P14.303 billion on the long overdue

DepEd and other agencies’ Employer’s

Premium Contributions and the grant of

additional five percent discount on total

validated DepEd government share (GS)

obligation estimated at P346.17 million

exceeded the maximum limit of the

condonation rates allowed under Policy

and Procedural Guidelines (PPG) 202-10,

resulting in the foregone income for the

Social Insurance Fund (SIF).

Reconcile the conflicting provisions

of the PPGs with the pertinent

provisions of RA 8291 relative to

the condonation; follow up the

actions agreed on the Memorandum

of Agreement relative to the

collection/remittance of the GS and

Personal Share (PS) premiums;

strictly implement the provisions of

RA 8291 in the

collection/remittance of premiums;

and exercise the powers and

functions of GSIS to implement the

penal provisions of RA 8291.

14,648,786

Long outstanding uncollected/unremitted

Employees’ Premiums of P4.51 billion

and P3.74 billion for the SIF and

Employees' Compensation Insurance Fund

(ECIF), respectively, and GSIS

Employees Accounts Receivable

amounting to P311.71 million, deprived

the System of resources for use to invest

and fund the retirement claims and other

benefits of members continuously not

imposing provisions of RA 8291.

Exercise the powers and functions

as provided under Paragraph c,

Section 5 of RA 8291 and require

the DepEd to remit the PS

Premiums totaling to P4.512

billion; demand for the remittance

of long overdue premium

contributions and in the event of

failure or refusal of the employer to

comply, if necessary take legal

actions to enforce the collection of

premiums and penalties on erring

employers as provided in Section 3,

Rule V of the amended Rules and

Regulations, dated July 21, 1987;

review the policy in handling the

GSIS Employees Accounts

Receivable account as to collection,

monitoring and control procedures;

and hold responsible those officials

who cleared the retired/separated

employees of their accountabilities.

8,568,053

341


Conflict in the provisions of PPG No.

201-09 (GSIS Consolidated Salary Loan

Plus Program) and PPG No. 217-12

(Addendum to PPG No. 201-09) and other

procedures resulted in various deficiencies

which included overcharge capitalized

interest by P859.84 million and excess

interest by P441,122 million, thus,

affecting the benefits/interest of members

contrary to the GSIS objectives of

promoting the welfare of its members.

Revisit/restudy the policies

embodied in the PPG No. 201-09

and its amendments; enhance the

Integrated Loans, Membership,

Acquired Assets and Account

Management System to conform

with the provisions of subject PPG

and the IRR of RA 8291; and

validate outstanding balance of

previous loans before the approval

thereof; refund and/or credit the

amounts that were overcharged to

the members, as well as the

overpayment of loans due to

delayed postings of payments to the

existing loan/s.

1,300,957

The accounts of the Pre-Need Fund such

as the Cash in Bank account,

Contributions and Premiums Receivable

net of credit balances amounting to P266

million and Claims and Losses Payable

amounting to P23.45 million are not

correctly and reliably kept in such detail

necessary to keep up with the standards

and safeguards against inaccurate and

misleading information needed by fiscal

and control agencies of the government.

Moreover, Pre-Need Financial Reserve

requirement is insufficiently covered by a

total of P1.86 billion.

Review all cash transactions and all

affected accounts and establish

correct balances and adjust as

necessary; and verify/validate and

establish the common reasons for

non-collection of Premiums that are

supposed to be automatically

deducted from the salary of the

plan-holder. Reconcile the

accounts and prepare the necessary

adjustments to come up with correct

balances; analyze accounts for

clearing and adjust accordingly;

conduct inventory of all active plan

holders; Claims and Losses Payable

must be set up for each of the

legitimate plan holders; and plan

and target how to fill in the

Financial Reserve needed to equal

the actuarial reserve requirement.

289,368

General insurance policies granted from

2011 and prior years were not lapsed/

cancelled contrary to the provisions of

Section 77 of the Insurance Code of the

Philippines and Section 6.6.3 of the 2009

GSIS Policy Manual. Instead, additional

bad debts amounting to P305.94 million

were set up in 2012 to recognize the loss/

impairment in the account, thus, overstating

Premiums Receivable and Bad Debt

Expense accounts.

Comply strictly with the provisions

of Section 77 of the Insurance Code

of the Philippines and Section 6.6.3

of the 2009 GSIS Policy Manual;

cancel all lapsed accounts and make

the necessary adjusting entries for

premium receivables, revenue from

general insurance premiums and

expense-bad debts.

437,532

342


Government agencies with properties

insured with the GSIS administered

General Insurance Fund were deprived of

their share in the Fund’s disposable

surplus/net earnings of P10.91 billion due

to non-compliance with the provision of

Section 9 of RA 656.

Comply strictly with the provision

of Section 9, RA 656, to declare

and apportion any disposable

surplus that may result from its

operations; and establish guidelines

to fully implement the provisions.

NQ

Out of the 16,351 accounts of the

Investment properties amounting to

P10.84 billion, 12,730 accounts or 77.85

percent were occupied by informal

settlers, attributable to non-

implementation of the provisions of the

Revised Policy Guidelines on Acquisition,

Administration and Disposition of

Acquired Assets, thus opportunity loss on

GSIS properties.

Strictly implement the provisions in

the Revised Policy Guidelines on

the Acquisition, Administration and

Disposition of Acquired Assets and

exhaust all legal measures to

protect, safeguard the interest and

preserve the rights and ownership

of GSIUS over the properties.

8,942,768

The GSIS had incurred a monthly average

of P12.64 million loss on its investment in

the GSIS Family Bank (GFB), which

could have been avoided had the System

used said subsidiary for the system’s

banking operations.

Utilize the services of the GFB in

member related services such as

crediting of dividends, pension,

loan administration, and/or utilize

the Subsidiary for its day-to-day

banking activities; and include in

the plans of the System the long

term strategies to enhance its

investment in the GFB.

12,640

Various lapses in the GSIS computerized

system, as well as conflicting provisions

of the charter/IRR provisions contributed

to the non-attainment of GSIS objective of

prioritizing the welfare of its members,

thus GSIS principle of equity was not

realized, as shown in the 144 sample

retirees who were under paid a total of

P1.33 million in their retirement claims,

and Premium in Arrears amounting to

P4.01 million were deducted from

members matured policies, Cash

Surrender Value (CSV), etc.

Revisit and review conflicting

policies for more effective and

beneficial effect to the GSIS

members; strictly implement the

provisions of the charter

specifically Section 41(w) to

impose discipline for prompt

remittance; vigorously pursue

billing and collection effort to avoid

recurrence of unremitted collection;

and reconcile/resolve the open

items especially those items with

open credits upon processing of

members’ claims for retirement,

life, and other benefits with GSIS in

order to minimize post retirement

adjustments in members’ records.

1,330

343


A total of 215 Real Estate Loan (REL)

accounts which were over six months past

due as at December 31, 2012, were not

foreclosed due to non-implementation of

Item 6.2 of the Revised Policy and

Procedural Guidelines on GSIS Individual

Real Estate Loan Program per Board

Resolution No. 109, dated May 22, 2001,

resulting in opportunity loss to GSIS.

Considering the proper legal bases,

take appropriate actions on subject

accounts which have been in default

for more than six months.

166,143

Of the total outstanding restructured loan

balance of P213.65 million, as at

December 31, 2012, P166.57 million or

77.96 per cent have reverted back to past

due status for four months to over three

years, thereby defeating the purpose of the

restructuring programs.

Revisit the present policy/

guidelines as regards the

restructuring program and consider

foreclosure for recurring default on

payment of restructured loans.

Implement more stringent rules

which must be strictly

implemented.

166,569

Hinatuan Water District (Region XIII)

Cash transactions were made by the

Cashier with the Enterprise Bank, Inc., a

private owned bank maintained by the

district in the locality in violation to

Section 69 (4) of PD 1445 and Section

172 of GAAM, Vol. 1 thus, exposing

funds to the risks of loss, theft and

misappropriation.

The opening of accounts in private

banks violates the provision of

Section 69(4) of PD 1445, maintain

bank accounts with authorized

government depository banks.

4,985

Home Development Mutual Fund (HDMF)

The payment for the Early Retirement

Incentive Plan (ERIP) granted to 20

HDMF officers and employees on top of

the regular benefits under the GSIS

retirement law in CY 2012 constitutes

supplemental retirement that is contrary to

Section 28 (b) of the GSIS Act, as

amended by Republic Act 4968 or the

Teves Retirement Law, rendering the

expenditure illegal, pursuant to COA

Circular Number 2012-003.

Stop immediately the

implementation of the ERIP, as this

is supplementary to the already

existing retirement plan under the

GSIS Act, as amended by the Teves

Retirement Law; demand from the

20 retired employees, refund of the

retirement benefits received from

HDMF, as they have also claimed

retirement benefits from GSIS for

the same number of years; and

demand refund of the ERIP

benefits.

37,636

344


Lapsed loan accounts of 11,885 with

outstanding balance totaling P22.66

million were not deducted from the

members’ Total Accumulated Values

(TAVs) at the NCR and two provincial

Branches contrary to applicable

regulations, resulting in the overstatement

of Accounts Receivable-MPL and

Members Contribution.

Review and enhance the MPL

database that will ensure that

accounts having reached end-of-

term will be deducted from

corresponding TAVs and that will

correct the other deficiencies noted;

and prepare adjusting entries to

correct the Members Contributions

and Loans Receivable – Multi-

Purpose Loan accounts.

22,655

The excess payments of 31,328 loan

accounts in the total amount of P24.46

million were not reclassified to a liability

or members’ contribution accounts at the

three NCR and five provincial Branches

contrary to Paragraph 2 of the

memorandum of the then CEO, dated July

10, 2008, on the treatment of excess

payments, thus, the accounts LR–MPL 2,

Accounts Payable–Borrowers-STL and

Members Contributions were understated.

Verify the correctness and validity

of the negative loan balances prior

to making the necessary

adjustments; and refund excess

payment to members/apply to their

existing loans, if any, or include in

the proceeds of their benefit claims.

24,462

Unclaimed dividend and additional

contributions of 28,012 members at the

eight NCR and Zamboanga Branches and

members with individual Residual Total

Accumulated Value (RTAV) of P200

below totaling P0.13 million at the NCR

Branches were not reclassified to

Accounts Payable - Others Miscellaneous

and Miscellaneous Income-Others,

respectively, contrary to HDMF

Memorandum, dated March 17, 2010, and

Section 1, Rule XI, IRR of RA 9679, thus,

Members’ Contribution account was

overstated and both Accounts Payable-

Others Miscellaneous and Miscellaneous

Income - Others were understated.

Formulate and develop systems and

procedures that would record and

reclassify the unclaimed dividends

and contributions, residual TAV of

less than P200, and TAV

outstanding for more than one year

to ten years; prepare adjusting

entries accordingly; and upon

reclassification to AP-Others,

Miscellaneous Income, and

Retained Earnings, the MC

database must be zeroed out.

28,909

Foreclosed properties or items under

litigation (IUL) covering 54 accounts with

a book value of P37.211 million at the

HDMF – Zamboanga Branch were not yet

consolidated in the name of Home

Development Mutual Fund (HDMF) as at

December 31, 2012, thus, delaying the

recovery of investment.

Require the HDMF – Zamboanga

Branch to prioritize and expedite

the completion of the consolidation

of titles of IUL accounts; and

monitor the expiration of the

redemption period of the foreclosed

properties for immediate

consolidation of its titles in the

name of the HDMF.

37,211

345


Home Guaranty Corporation (HGC)

HGC’s financial profile needs to be

improved to meet its currently maturing

obligations and sustain its capability to

provide guarantee for loans supporting a

viable shelter program, thus, current

liabilities of P16.855 billion exceeded its

current assets of P3.430 billion or a

working capital deficiency of P13.425

billion resulting in its inability to meet

currently maturing obligations to include,

among others the redemption and

settlement of guaranty calls on Zero

Coupon Bonds floated from CY 2002 to

CY 2005; and continuous losses since

year 2002 due mainly to previous defaults

on HGC’s guaranteed mortgages resulted

in accumulated Retained Earnings deficit

of P13.296 billion as at December 31,

2012, further depleting financial resources

that diminished its capability to provide

guarantee for loans supporting a viable

shelter program.

Desist from borrowing as a solution

to liquidity problem of the

Corporation since it entails huge

financial charges contributory to the

accumulation of Retained Earnings

Deficits; negotiate with the

concerned GOCC’s for the

settlement of unpaid guaranty

obligations through payment of

foreclosed assets; strengthen

linkages with the National

Government through the

Department of Finance (DOF) and

Department of Budget and

Management (DBM) for the release

of much needed capital as provided

for in its charter.

13,425,000

Actual remittances by the HGC as at

December 31, 2012 to the Debt

Repayment Fund for the P22 billion Zero

Coupon Bonds floatation is short by P9.05

billion which cast doubt on the agency’s

ability to redeem the P12 billion Bond

flotation.

Give priority to the funding

requirements of the Sinking Fund to

be able to redeem maturing Zero

Coupon Bonds without resorting to

borrowings; intensify disposition of

foreclosed assets; make

representation or strengthen

linkages with Congress, DOF and

the DBM for the release of

additional equity by the National

Government, as provided in its

charter.

9,052,416

Uncollected 10 percent redeemable

portion of the face value of LBP 10-Year

AR Bonds deprives the Corporation of the

opportunity of additional funds by

reinvesting the proceeds of the AR Bond.

Undertake the transfer of the 10-

Year AR Bonds in the name of

HGC in order to collect the 10 per

cent redeemable portion of the AR

Bond for the benefit of the

Corporation.

8,519

346


Investment in stocks in a private entity

runs counter to Section 22 of R.A. 8763,

otherwise known as “The Home Guaranty

Act of 2000”, Section 2 of Administrative

Code No. 173 dated June 18, 1990,

Section 3.3.1 of DBM Circular No. 1-94

issued September 5, 1994, Section 3.1.3

of HUDCC and DBM Circular No. 1-91

dated September 25 and Section 6 of R.A.

6846, the Act creating the Abot-Kaya

Pabahay Fund.

Stop from investing idle funds in

marketable securities in bonds or

whatever nature with private

entities to ensure that government

funds are safely and soundly

managed; and immediately recover

investments in the private entity/s.

13,367

Human Settlements Development Corporation (HSDC)

Of the Investments of P352.99 million,

the amount of P278.01 million could not

be ascertained due to lack of documents to

support the acquisition of the shares of

stock. Also, the amount of P1.33 million

remained in the books despite payments

made by investee-corporations. No

adequate allowance for impairment losses

was provided for investments of P38.49

million with inactive corporations, while

investments in dissolved corporations

amounting to P35.17 million were not

written down.

Require PADCC, NABCOR and

APRACA to issue immediately the

stock certificates or any documents

evidencing investment made by

HSDC; b. Prepare journal entries

closing the Investment account

pertaining to corporations that

returned the investments of HSDC;

c. Provide allowance for

impairment losses on investments in

inactive corporations, to be able to

reflect the net realizable value of

the investments and effect direct

write-down for investments in

dissolved corporations.

314,497

LBP Leasing Corporation (LLC)

Non-compliance with the provisions of

LLC Credit Policy Manual and Lease

Agreement No. 730 by the client resulted

in past due account and possible loss of

leased assets due to double financing.

Adhere strictly to the Corporation’s

Credit Policy Manual particularly

on the standard evaluation

requirements and acceptance

criteria of corporate clients by

analyzing other relevant financial

ratios to prevent LLC from the risk

of non- recovery of loan exposure

from new clients. Determine the

persons liable for the evaluation and

approval of the loan subject of

double financing and if warranted,

hold them liable for the losses of

LLC on account of the double

financing.

29,257

347


Light Rail Transit Authority (LRTA)

Major amendments to the original contract

for the repair and restoration of 32

elevator system awarded through bidding

with original cost of P15.49 million,

which substantially changed the scope of

work were effected without rebidding.

From the original contract of 32 units, it

was reduced to 15 units only where the

latter’s original cost of P6.32 million was

increased to P15.24 million, or by 146%.

Said amendments were not covered with

supplemental contract or addendum to the

original contract. Hence, these

amendments were without any legal basis.

Any payment relative to the subject

contract will be disallowed in post

audit, hence, LRTA Management

should act accordingly to protect

the interest of the government.

15,490

Local Water Utilities Administration (LWUA)

Fund releases to 231 water districts

(WDs) from CYs 2009 to 2011 for water

supply projects initially treated under the

Non-LWUA-Initiated Funds (NLIF) –

President’s Social Fund (PSF) Program on

a 50%-50% loan grant mix were not in

order as the funds were sourced from

corporate funds, with no PSF funds

released to LWUA. The later alleged

Board authorized conversion of said fund

releases into LWUA Internally Cash

Generated (ICG) soft loans recorded as

Receivables from WDs, was likewise

without any valid basis for the amount of

P2.22 billion or 94% of total fund

releases, pertaining to 214 WDs, as there

were no actual board resolutions and loan

agreements evidencing acceptance of the

conversion by the latter, and for the

remaining amount of P140.03 million or

6% released to 17 water districts, the

acceptance was documented only with

board resolutions of the WDs but without

loan agreements between them and

LWUA.

Immediately document the

acceptance by the water districts of

the conversion of NLIF-PSF grants

into LWUA ICG soft loans with

board resolutions of water districts

and corresponding revised loan

agreements for the P2.22 billion

fund releases to 217 water districts,

and revised loan agreement to 17

water districts with fund releases

totaling P140.03 million; and

submit the same for audit.

2,362,000

348


Five Water Supply and Sanitation Projects

(WSSP) with fund releases in CYs 2009

and 2011 to WDs had not been

implemented, in violation of Article III (1)

of the Memorandum of Understanding

(MOU) signed by and between the Water

Districts and LWUA.

Institute legal remedies to recover

the funds released to the WDs that

did not implement the WSSP;

conduct regular inspections or

monitoring program of the Project

to determine the progress of work

of the concerned WD.

38,190

LWUA’s contribution to the Officers and

Employees’ Provident Fund for CY 2012,

representing government share was paid

to the Provident Fund despite the

provisions of Item 5.3.2 of Budget

Circular No. 2003-3 that government

monetary contribution cannot be given

pending issuance of DBM guidelines.

Stop the Administration’s

contribution to the Fund and revert

back to LWUA the shares

contributed for CYs 2010 – 2012.

32,400

Long-term investments were not

recognized at their recoverable amount as

of December 31, 2012 contrary to PAS

No. 36.

Assess for impairment in value of

investments and determine how

much can be recovered from the

investments in Express Savings

Bank, Inc. and LWUA Consult, Inc.

and recognize in the books.

511,660

Some LWUA officials received

Extraordinary and Miscellaneous

Expenses (EME) more than the amount

allowed per General Appropriations Act

for CY 2011 and 2012 and DBM-

approved COB. Moreover, some LWUA

officials whose positions were not among

the authorized officials per GAA for CY

2011 and 2012 received EME.

Require the refund of the excess

EME and ME immediately; secure

from the DBM, list of LWUA

officials of equivalent rank who are

entitled to EME and ME; and

comply with the conditions set forth

in the DBM approved COB.

1,329,717

Manila Gas Corporation (MGC)

Despite the Corporation being non-

operational since 2001, the Corporation

had continuously incurred expenses

resulting into a net loss and net decrease

in cash for CY 2012.

Stop unnecessary expenditures

considering the Corporation is no

longer in operation; limit expenses

to those that will achieve

Company’s missions and thrusts

and the fast tracking of the

dissolution process.

2,132

349


The Corporation has ceased commercial

operations since 2001 or for more than ten

(10) years already. However, MGC had

not yet filed the required documents for

dissolution with the Securities and

Exchange Commission (SEC).

Comply with the SEC requirements

for Dissolution as provided in

Sections 119, 120 and 122 of the

Corporation Code of the

Philippines.

NQ

Metropolitan Waterworks and Sewerage System (MWSS)

MWSS allowed the installation of

Telecom Towers by the Concessionaire of

the East Zone (MWCI) in its properties

located in (a) San Juan - Mandaluyong

Business Area (12 sq.m.), (b) Pasig

Pumping Station area (225 sq.m.), and (c)

Main Warehouse lot in Balara (300

sq.m.), to the GOCC’s detriment, for the

following reasons:

a. the donor of the Land where the

MWCI San Juan-Mandaluyong Business

Area is located may question the

installation of the Telecom Towers in

view of the provision in the land title that

the lot shall be used for waterworks and

sewerage purposes;

b. the Agreement was executed by and

between MWCI and Globe, instead of

between MWSS, being the owner of the

property and Globe; and

c. the agreed rates being collected were

not reasonably determined and authorized

pursuant to Section 6 of Executive Order

No. 301, dated 26 July 1987.

For San Juan - Mandaluyong

Business Area, require the MWCI

to remove the Globe

telecommunications equipment

from the area.

For the other two lots with no donor

limitations, require the MWCI to

terminate the lease agreement with

the Globe Telecom Inc., and offer

the same for lease thru public

bidding.

NQ

MWSS Corporate Office failed to collect

from the MWCI Concessionaire the

accumulated rental arrears arising from

the use by the MWCI as stockyard of the

36,000 sq.m. Not-In-Service (NIS) Land

in the San Juan Reservoir and Aqueduct

Complex since March 2006, with the

latter’s contention that the said land

formed part of the operating assets turned

over to MWCI per Concession

Agreement. However, under Section

A.1.2 of MWSS Board Resolution No.

106-96, NIS Land is to remain with

MWSS to be sold or leased.

Take immediate and appropriate

action to resolve the issue with the

Concessionaire in accordance with

the Concession Agreement.

Require MWCI to pay the rental fee

or MWSS Management should take

legal action to demand and collect

rental fee from MWCI for the use

of the said property.

161,230

350


Loan granted to MWSS – Regulatory

Office Multi-Purpose Cooperative, a

private entity, for land development and

house construction in CY 2005 was not

supported by a contract in violation of

Item 4 of COA Circular No. 97-004.

Moreover, no payment for the loan has

been received from the said Cooperative.

Take initial action to demand for

the return of the P25.00 million

loan; cause the immediate

submission of the contract to

support the grant of the loan.

25,000

National Electrification Administration (NEA)

Recurring cases of unexpended balances

of subsidies to electric cooperatives not

immediately returned or without

immediate submission of requests for

realignment.

Closely monitor the unexpended

subsidy fund balances, and either

demand the immediate return of the

same after the completion of the

project, or require immediate

submission of request for

realignment of the amount for

implementation of approved

electrification-related projects.

NQ

National Home Mortgage Finance Corporation (NHMFC)

Default or missed payments of securitized

BahayBonds series 1 and 2 accounts have

significantly reached 1 to 51 months and 1

to 12 months, respectively, during the

year, resulting in the total under collection

of loan receivables totaling to P569,845

million, equivalent to 34.87 per cent of the

total outstanding diminishing principal of

P1.634 billion (for the 12,225 accounts)

for both series of issuances as at

December 31, 2012.

Demand immediate payment of the

undercollection of loan receivables;

undertake more aggressive

collection strategies for correcting

delinquency shown in the aging

analysis and strictly monitor the

performance of these collections

strategies; enhance monitoring

processes and procedures on

receivables to improve collections

of securitized accounts.

569,845

A total of 725 accounts were not secured

by original copy of owner’s duplicate

copy of TCTs, while erroneous

information on the number of TCTs not in

custody and TCTs temporarily released to

Legal Services and Documentation

‘Division noted in the detailed accounting

of inventory of UHLP accounts, casts

doubt on the accuracy of the inventory

report of TCTs of UHLP as well as other

housing programs/accounts.

Require the custodian to adjust its

records to conform to the correct

number of TCTs in custody; require

the Custodianship Division to

reconcile the results of inventory of

TCTs with the concerned

departments handling the housing

programs to determine the precise

number of loan portfolio and

accuracy of inventory of TCTs;

determine the persons liable for the

accounts without titles and hold

them administratively liable for their failure to perform their function.

NQ

351


National Housing Authority (NHA)

Year-end unreconciled difference on

reciprocal accounts between NHA and

DOTC rendered the balance unreliable.

Create an Interim Task Force/

Committee that will focus on the

reconciliation of the DOTC

accounts receivable and recommend

adjustments to correct the existing

account balance for fair

presentation of the affected

accounts in the financial statements;

coordinate with the DOTC to

enable said agency to settle its

obligations to NHA.

2,002,654

National Power Corporation (NPC)

Retained PSALM and TransCo accounts

set up by NPC for the asset-debt transfer

from NPC and separation of TransCo

books from NPC both in 2008, remained

dormant/ outstanding since CY 2009; and

documents to support the same were not

available for verification, hence, the

validity and accuracy of the accounts’

balances were not ascertained.

Provide timelines for the

completion of the tasks assigned to

the Task Force and closely monitor

progress of the work by requiring

status report from the group.

Adjust Retained PSALM account

equivalent to the cost of the power

plants already sold.

3,402,000

Palacio del Gobernador Condominium Corporation (PDGCC)

Management failed to collect and recover

from its former employee the undeposited

collections of P72,050 and overpayment

of salaries and allowances amounting to

P12,000 despite the demand letter served

on him in CY 2012.

Institute appropriate legal action

against the erring employee who

failed to remit and deposit the rental

collections of P72,050 and to

exhaust all means to collect the

overpayment on his salaries

amounting to P12,000.

84,050

The amount representing 5 percent of the

P56.586 million payments to Power

Distribution Utilities were not withheld,

remitted as required under Revenue

Regulation No. 16-2005 and the Revenue

Memorandum Circular 56-2009 and were

not recognized as payable to the BIR in

the PDGCC books of accounts.

Comply with the RR No. 16-2005

and the RMC 56-2009 by

withholding 5 per cent VAT on its

Meralco payments and remit the

same to the BIR to avoid possible

fines and penalties.

2,839

352


People’s Credit and Finance Corporation (PCFC)

Deferment of deposit of post-dated check

payments for loan amortizations when

due, upon request of a Cooperative Bank

exposed PCFC to the risk of delay or non-

recovery of its investment and might

affect the projected cash flow and

operations.

Secure all Promissory Notes (PNs)

of the sub-borrowers of the

Cooperative Bank and require the

Cooperative Bank to deliver

additional hard collaterals; and

conduct extensive audit/review of

loan portfolio and credit rating of

MFI partners before the approval of

any loan availment as well as

renewal of, or increase in, credit

facilities.

71,314

Philippine Amusement and Gaming Corporation (PAGCOR)

Overpayments to Hotel Enterprises of the

Philippines, Inc. (HEPI) due to erroneous

basis for the computation of its 35 per

cent share in the gaming revenues of the

Midas Casino and that the 35 per cent

share on the payments by GAA II for

space rental were noted.

Fees being paid by GAII for its

Junket and Restricted Gaming

Operations be excluded from the

gross gaming revenues subjected to

the computation of the 35 per cent

share of HEPI, it appearing that

HEPI had no participation in the

marketing and promotion of GAII's

gaming operation; the total

overpayment should be refunded by

HEPI.

22,510

Excess rental deposit with the Provident

International Resources Corporation

(PIRC) was noted in the lease of its

building used as Airport Casino Filipino.

Demand the immediate return of the

excess rental deposit from PIRC so

that they could make use of the said

fund.

28,656

The inability of Metro Asia Poker &

Entertainment Inc. (MAPEI) to comply

with the stipulations in the Permit to

Operate a Poker Club at CF-Hyatt and

absence of contract between PAGCOR

(CF-Hyatt) and MAPEI resulted to loss of

revenue due to the non-conduct of poker

tournament and non-payment of space

rentals and utilities.

Facilitate the preparation and

approval of the contract. In

addition, demand the immediate

payment of P1.2M receivable

representing penalty for the failure

to conduct poker tournament.

NQ

353


Philippine Charity Sweepstakes Office (PCSO)

Conditions to fulfill the commencement of

lotto operation kept on changing with the

amendments to the Equipment Lease

Agreement resulting in the original eight

year-term of lease being extended to more

than 20 years and almost 17 years for two

system providers. No public bidding was

conducted.

Strictly comply with the

requirements of public bidding as

set forth under Revised

Implementing Rules and

Regulations of R.A. 9184,

otherwise known as “Government

Procurement Reform Act;” properly

review and evaluate the terms and

conditions of the agreement to

avoid significant modification

during implementation of the

contract/agreement.

NQ

PCSO paid the Provident Fund/PCSO-

Provident Fund during 2012, P341.57

million or 86.19 per cent of which relates

to the Special Share of PCSO in the

Provident Fund which is not in

accordance with DBM Budget Circular

No. 2008-3. Likewise, the specifications

and details describing the purpose, as well

as the legal authority and/or basis, of said

disbursements were not submitted to

COA.

Strictly comply with the

requirements of DBM Budget

Circular No. 2008-3 particularly the

monetary contributions of the

employer to the Provident Fund;

obtain the evaluation of the DBM

on the financial position of PCSO

before granting any monetary share

to the Provident Fund; comply with

the guidelines set by DBM with

respect to the said contribution;

discontinue the contribution of the

Special Shares to the Provident

Fund until PCSO obtains legal

authority or basis to grant such

contributions.

396,318

Philippine Deposit Insurance Corporation (PDIC)

Impairment loss on the GOCC’s P12

billion investment in a sequestered Bank

since 2009 remained unrecognized

resulting in the understatement of total

expenses and overstatement of net income

by the same amount contrary to PAS 39.

Recognize the impairment loss for

2012 since the objective evidences

stated in PAS 39 exist and are

observable.

5,697,233

Philippine Health Insurance Corporation (PHIC)

The 2012 Retained Earnings was short by

P3.68 billion to meet the reserve fund

requirement of P118.76 billion, contrary

to Section 27 of RA 7875, thus, posing the

risk of inability of the Corporation to meet

its obligations in the future.

Institute austerity measures that will

reduce operating expenses, mitigate

operating losses, increase net income

and resulting Retained Earnings; stop

the granting of various personnel

benefits and allowances without legal

basis.

3,680,000

354


Collections of the advance payment of

premium contributions were recorded as

current year's income resulting in the

understatement of Deferred Credits by

about P105.90 Million and overstatement

of current year's income Premium

Contribution-Individual Paying Member

(IPM) by P87.69 Million and Premium

Contribution-OFW by P18.22 Million.

Said accounting treatment of the advance

payment of premium contributions was

not in conformity with the Philippine

Accounting Standard (PAS) 1 and COA

Circular No. 2001-04 dated October 30,

2001.

Effect the necessary adjustments on

the financial statements to ensure

that the balances of the accounts

notably Other Deferred Credits and

Premium Contributions are fairly

presented; enhance the Over-the-

Counter-Collection-System

(OTCCS) that will automatically

compute or allocate advance

payments accruing to the

appropriate income accounts for

current year, and Other Deferred

Credits account for future period.

105,900

The PhilHealth Case Rates System

allowed the Institutional Health Care

Providers (IHCPs) the reimbursement of

the full amount of case rates regardless of

member-beneficiaries’ actual deductions

from their hospital expenses defeating the

intention of Philhealth Circular No. 11 s:

2011.

Revisit the policy of the New Case

Rates System taking into

consideration the primary objective

of the program, and the system

should pay only the actual hospital

charges, if the case rate amount is

not fully utilized to avoid additional

expenses on the part of the GOCC.

55,126

Improper implementation of the

provisions of Section 79 of the National

Internal Revenue Code (NIRC) on

withholding of taxes resulted in an

overstatement of the expense account.

Stop the practice of charging the

taxes supposed to be withheld from

the employees to the expense

account of PhilHealth, but instead

deduct the same from the benefits

of each employee as these

constitute additional benefits.

38,080

Philhealth failed to exercise its

responsibility to require the LGUs to

submit on time the requirements for

availment of PhilHealth Capitation Fund

(PCF), thereby defeating the purpose of

recognizing and prioritizing the primary

health care needs of the underprivilege

and marginalized members.

Strictly require the LGUs to comply

with all necessary document needed

for immediate processing of their

remaining PCF and also to effect

the implementation of the new

PCB-1 Package to achieve the very

purpose of the program.

203,200

355


Philippine Heart Center (PHC)

Out of the outstanding balance of

Guaranty Deposits Payable-Patients, only

49% pertained to deposits of confined

patients as of December 31, 2012. The

difference corresponded to deposits of

discharged patients which were not

properly applied to Hospital Fees thereby

misstating the account balance by the

amount of unapplied deposits.

Set-up subsidiary ledger per patient

or its equivalent to facilitate

monitoring of patient’s deposits and

conduct regular reconciliation

between the subsidiary and the

general ledgers; evaluate whether

these accounts meet the criteria for

recognizing them as liabilities.

16,870

The Center continued to accommodate the

medical expenses of the patient-

beneficiaries which were charged to the

Priority Development Assistance Fund

(PDAF) although the balance of the fund

had already been exhausted.

Consequently the Center had to pay from

its own fund the said medical expenses.

Strictly comply and implement the

policy on trust funds and send

collection letters to returning

legislators. Consider holding the

PHC officers and employees

accountable/liable for the lapses and

errors committed which caused

pecuniary losses to the Center.

Prepare and submit PDAF

utilization reports regularly to

legislators.

11,000

Philippine International Convention Center, Inc. (PICCI)

The veracity of the recorded income could

not be established in the absence of an

authenticated contract executed by and

between the PICCI and the Department of

Finance (DOF) contrary to the PICCI

Operations Manual and PAS 18, thereby

overstating the income account.

Moreover, the absence of the contract

might jeopardize PICCI’s collection of its

receivable from DOF.

Immediately obtain copy of the

authenticated contract to enforce the

agreed terms and conditions of

payments and to serve as the basis

for recording of the transaction in

the books; effect the necessary

adjustments.

39,038

Philippine National Construction Corporation (PNCC)

Debts to the National Government (NG)

which were not converted to equity were

nevertheless considered as converted and

thus presented as part of equity.

Recognize as liability the

unconverted debts instead of equity.

5,551,727

Interests and penalties of the unconverted

debt to the NG were not recognized in the

books.

Recognize as liability the interests

and penalties of the unconverted

debts to the NG.

48,665,980

356


PNOC Alternative Fuels Corporation (PAFC)

Funds released to Royal Green Energy

Development, Inc. and Petrogreen Oil

Commodity Holdings, for their

partnership with the Company in the

Jatropha project development, remained

outstanding despite the termination of all

Jatropha undertakings in January 2011.

Institute appropriate legal remedies

to enforce PAFC’s right against the

failure of Petrogreen and Royal

Green to submit the documents

required under their respective

MOAs; require the partner-growers

to submit a Fund Utilization Report.

64,500

Philippine National Railways (PNR)

Delivery of “Larch” Wood ties and

acceptance thereof by Management even

if not in accordance with the specification

required and approved by the PNR Board

of Directors, was extremely

disadvantageous to the government and

the general public who are the intended

beneficiaries of the items procured. All

supporting documents relative to the

transaction to wit: board resolution, BAC

resolution, bidding documents, notice of

award, notice to proceed, and contract

agreements specified the procurement of

“Yakal” (hard) wood and not “Larch”

(soft) wood.

Moreover, based on the results of

laboratory test conducted by the Forest

Products Research and Development

Institute of the Department of Science and

Technology, the sample larch wood

tested, ranged from low to moderately low

as to strength classification and related

properties. Wood ties of inferior quality

would have shorter life span; installation

with modification would entail additional

cost on support; and, more importantly

could pose hazard at the railroad tracks

and endanger train commuters’ lives.

The amendments to the contract

agreements through letter of

conformity is null and void, we

issued Notice of Disallowance for

the payments made to the Supplier

of ‘larch’ wood bridge, switch and

joint ties.

Appropriate action, administrative

or criminal, or both, should be

initiated against those who

participated in the transaction.

47,130

357


The Land account carried an appraised

value of P40.05 billion determined by

PNR Management based on BIR zonal

valuation as of December 31, 2012, and

not on fair market value determined by an

independent appraiser or reputable expert,

as required in COA Resolution No. 89-17.

The appraisal which resulted in huge leap

of the book value of Land from P704.01

million, or a gigantic increase of P39.35

billion or by 5,689.60 % was done 31

years after its appraisal in 1981, contrary

to PAS 16 which requires that revaluation

should be made with sufficient regularity

to ensure that the carrying amount does

not differ materially from that which

would be determined using fair value at

the balance sheet date.

Likewise, the appraisal with significant

impact on the financial statements was not

supported with authority from the PNR

Board.

Hire an independent and qualified

appraiser, as required in COA

Resolution No. 89-17 and PAS 16,

to determine the fair market values

of the major class of assets under

Property and Equipment, using the

Masterlist of Real Property

prepared by the Real Estate

Division as a tool/guide in locating

the land owned and utilized in

operations for proper valuation.

40,050,000

Deficiency tax liability was not

recognized in the books, or disclosed in

the Notes to Financial Statements,

contrary to PAS 37. This pertained to real

property taxes assessed by the City of

Manila which were covered with

Memorandum of Agreement to be settled

thru “Dacion en Pago.”

Considering that the issue on the

PNR’s exemption from payment of

real property taxes to the City of

Manila has not been resolved yet,

we recommended that Management

disclose in the Notes to Financial

Statements the real property taxes

initially agreed or settled in the

concept of “Dacion en Pago” in

accordance with the Memorandum

of Agreement dated December 2,

2003, by and between the PNR and

the City of Manila.

218,640

Philippine Ports Authority (PPA)

Of the 52 ports audited from 2009-2012, a

total of 14 and 38 ports remained

underutilized and unutilized, respectively,

since their completion, hence were unable

to generate income enough to defray the

cost of providing facilities and services

and realize reasonable returns on the

assets employed.

Review and re-evaluate the policy

on the development of ports and

port facilities to minimize if not

avoid risks of turning them into idle

or underutilized assets and to

prevent wastage of funds; Prioritize

those projects which are found

viable and more economically

NQ

358


beneficial; request and coordinate

with the concerned LGUs to

prioritize the improvement of

access roads to the completed ports

and the provision of basic utilities.

Philippine Postal Corporation (PPC)

Tax subsidy from the National

Government amounting to P290.57

million was recorded in the books as

Income but the related tax expenses and

tax liabilities were not recognized.

Consequently, the Input VAT of P23.26

million was not closed as at year-end.

Moreover, no accrual of the CY 2011

Minimum Corporate Income Tax (MCIT)

of P8.97 million was set up, thereby

overstating the CY 2012 income by

P313.83 million and Retained Earning-

Beginning by P8.97 million.

Recognize in the books the Output

VAT liability and expense, as well

close the floating Input VAT.

313,830

Cash advances granted to the PPC Cluster

Head Postmasters for the payment of Cash

Conditional Transfer reported an

unliquidated balance of P460.42 million

while the Account Payables, Other-Cash

Conditional Transfer showed a balance of

P178.52 million as of December 31, 2012,

contrary to PhilPost Circular No. 13-02

and COA Circular No. 97-002. From the

available Schedule of payout dates and

corresponding payroll periods, significant

delay in liquidations were noted.

No subsidiary ledgers were maintained for

each Cluster Head Postmaster and Payout

Postmaster who were entrusted with the

distribution of the funds, hence their

individual cash advances, liquidation and

balances could not be determined.

Exert maximum efforts to liquidate

and validate the liquidation of the

CCT cash advances of P460,424

million to the Cluster Head

Postmasters.

Provide guidelines in the recording

of transactions pertaining to CCT,

particularly the receipt and

liquidation by the Cluster Head

Postmaster and the payout

postmasters/team leaders of the

CCT funds.

638,940

359


Philippine Postal Savings Bank, Inc. (PPSBI)

Ninety-eight per cent of the Project

D.R.I.V.E (Dagdag Regular Income Via

Entrepreneurship) Fund released as loans

in 2009 and 2010 were past due as at

December 31, 2012 and of doubtful

collectibility. Several releases of loans

disclosed documentary deficiencies and

lapses in the observance of the provisions

of the Terms of Reference (TOR) and

applicable lending policies of PPSBI.

Exhaust all the necessary means to

collect from the borrowers and to

pursue legal/administrative action,

if warranted, against the erring

officials and employees involved

in the release of the loans in

violation of the applicable PPSBI’s

lending policies and TOR.

237,655

San Francisco Water District (Region XIII)

The District paid contributions to the

District's Provident Fund even without the

required authority from DBM.

Discontinue the payment of the

employer's share for the provident

fund contributions out of the

District's fund unless covered with

approved authority from the DBM

pursuant to the requirement of the

foregoing Budget Circular Letter.

1,038

Social Housing Finance Corporation (SHFC)

A total of 2,453 member-beneficiaries

were granted double or multiple

Community Mortgage Program (CMP)

loans, as at December 31, 2012, due to the

absence of an Inquiry or Screening

Application Program on the eligibility

requirements/qualifications of CMP

member-beneficiaries.

Cause the immediate development

and installation of an Application

Program for the evaluation of CA

member-beneficiaries eligibility

requirements prior to the grant of

CMP loan; impose sanctions on

member-beneficiaries who are

found guilty of violating the rules of

the CA and/or SHFC.

94,413

The general ledger balances of Loan

Installment Receivable and Items in

Litigation accounts differs by P3.715

billion with the member-beneficiaries

subsidiary ledgers aggregate balance, thus

creating doubt on the validity of the

account balances as at year-end.

Expedite the reconciliation of the

general ledger and the member

beneficiaries subsidiary ledgers

balances to ensure the validity of

the account balances and the

reliability of the accounting records

and reports to achieve fair financial

statement presentation.

3,714,827

360


Social Security System (SSS)

Collections totaling to P365.40 million

from OFW members remained unmatched

with direct deposits in Foreign Currency

Denominated bank accounts and lodged in

the OCL-OFW account, thereby

understating the Members’ contribution

account and overstating the loans

receivables account. Of this amount,

P173.19 million or 47.40 per cent are

already over 12 months to more than three

years.

Fast track the contract/agreement

with one bank and three other

collecting agents for the use of

electronic overseas collection

facility; immediately stop direct

deposits scheme by closing those

existing SSS bank accounts, where

these identified remittance centers/

banks tie-ups allegedly made their

direct deposits.

365,400

Surigao Metropolitan Water District (Region XIII)

The District availed Loans from the

LWUA amounting to P 224.816 Million

with a 12.5% interest per annum-fixed,

payable in 25 years which is more costly

compared if loan is availed from an

Authorized Government Depository Bank

(AGDB) within the locality which offers a

6.5%-6.75% interest and payable only in

10 years with a more or less similar

monthly amortization of P2,427,708.04

and P2,566,383.33, respectively.

Review and evaluate the Loan

Agreement with the LWUA and

come up with a Resolution and or

Agreement on the probability for

Loan Refinancing with an

Authorized Government Depository

Bank (AGDB) within the locality

which is more beneficial to the

point of economy, to the District

and the Government as a whole.

2,428

Technology Resource Center (TRC)

TRC failed to remit the loan repayments

contrary to the amortization schedule of

the Relending Agreement it entered with

the Government of the Philippines for the

implementation of the Export Industry

Modernization Program (EIMP) II.

Repay the loan to the BTR

according to the amortization

schedule provided for in the Loan

Agreement.

NQ

Trade Investment Development Corporation of the Philippines (TIDCORP)

Receivables from eight clients’ accounts

amounting to P327.573 million secured

with collaterals were totally written-off,

contrary to the Manual of Regulations for

Non-Bank Financial Institutions,

understating the balances of affected

accounts.

Comply strictly with the Manual of

Regulations for Non-Bank

Financial Institutions and undertake

appropriate action to correct the

balances of receivables from

clients’ accounts.

327,573

361


Management had not taken sufficient

action required under existing agreements

and policies to enforce collection and

recover the receivables from Software

Ventures International Corporation

(SVIC) due to deficiency in collateral

cover, non-foreclosure of shares of stocks

and other assigned receivables, and non-

collection of rentals for SVIC’s

continuous occupancy, after foreclosure of

the condominium units.

Exhaust all means to collect the

receivables from SVIC.

560,635

Sixty-two paintings (62) included in the

inventory of artholdings were not

recorded in the books, contrary to Section

63, Article 3 of PD 1445.

Record in the books of accounts the

62 paintings included in

TIDCORP’s inventory of

artholdings as of May 2012.

2,351

Tourism Infrastructure and Enterprise Zone Authority (TIEZA)

The possibility of recoupment of dormant

Advances to Contractors is very remote

which delayed or stalled the delivery

projects to beneficiaries.

Initiate and pursue legal actions

against contractors who, after

being granted the 15% advance

payment, did not commence work

or abandoned the projects; and

cause their black listing not only in

the list of accredited contractors of

TIEZA but also with the

Department of Public Works and

Highways.

44,231

TIEZA continued to grant sponsorship

fees to several non-government

corporations and associations for activities

which have no significant impact on

tourism.

Stop granting financial assistance

and sponsorship fees particularly to

each activities like golf

tournaments, beauty contests,

festivals, etc. as the grant of the

same do not benefit the general

public. Formulate specific

guidelines/criteria in the grant of

financial assistance and sponsorship

fees within the legal mandate of the

agency, for approval of the Board

of Directors.

NQ

362

71 The following matrix summarizes common audit observations and the corresponding

recommendations that were reported in numerous AARs. The effect of these audit

observations on the fairness of the balances in the financial statements were partly the

bases for the audit opinions rendered.

Common Audit Observations Recommendations GOCCs

affected

Amount (in

thousands)

Cash

Failure/delayed preparation or not

updated Bank Reconciliation

Statements (BRS) contrary to

Section 74 of PD No. 1445

rendered the accuracy of the cash in

bank account doubtful.

Prepare the monthly BRS to ensure

that reconciling items are promptly

identified and immediately

adjusted to keep the balances of

the books and its depository banks

reconciled regularly.

CITEM

HSDC

NRDC

PNR

PPC

PTNI

VFP

Cantilan WD

Madrid WD

606

1,340

19,213

NQ

1,700,000

NQ

NQ

210

357

Collections were not deposited

intact on the next banking day

contrary to Section 134 of GAAM,

Volume I.

Deposit collections intact on the

next banking day or within the

prescribed period.

NRDC

PMDC

Hinatuan WD

San Jose WD

Region 7 WDs

2,990

NQ

72

37

142

Unreconciled discrepancy between

the balances per books and the bank

balances/results of bank

confirmation.

Prepare reconciliation statements

and effect the necessary

adjustments to reflect the correct

balance.

DFPC

LRTA

NHA

PHILSUCOR

PNR

PPC

PTNI

SUMSI

Madrid WD

13,404

150

178,817

137,887

19,100

830,690

12,094

702

32

Failure to prepare and update the

Report of Accountability for

Accountable Forms in violation of

Section 98, GAAM Volume I, thus,

causing delay in the verification and

monitoring of the receipts and

issuances of the agency's

accountable forms by the

Accountable Officer to ascertain

correctness of the balance.

Require the Cashier to regularly

prepare and submit to the

Accountant the Monthly Report of

Accountability for Accountable

Forms so that receipts and

issuances of the accountable forms

be verified and monitored

promptly.

Bacuag WD San Francisco WD

NQ NQ

363


affected

Amount (in

thousands)

Accountable officers are not or

inadequately bonded.

Require all accountable officers to

be bonded pursuant to Section 101

of PD 1445, Treasury Circular No.

02-2009 and Section 7 of COA

Circular No. 97-002.

AFAB

PEZA

SUMSI

Bunawan WD

Madrid WD

San Jose WD

Tandag WD

NQ

NQ

NQ

NQ

NQ

NQ

NQ

Failure to maintain the prescribed

Cashbook in violation of the

provision in Chapter 1, of the

Handbook on Cash Examination

and Section 181 of GAAM Volume

1, thus rendering doubts on the

propriety and correctness of its

collections and deposits, cash

advances and petty cash expenses.

Direct the Accountable Officers

concerned to maintain the

cashbooks for their collections and

disbursements including the petty

cash fund. Collections and

disbursements shall be recorded in

ink at all times to avoid possible

losses of government funds thru

negligence or inaccuracy of

records. Strict adherence to the

rules and regulations herein

stipulated is also recommended.

Lianga WD Surigao Metro WD

NQ NQ

Loans and accounts receivable

Receivables remained dormant for

several years.

Intensify collection efforts and

formulate/devise workable

strategies to address the problem

of collection/reduction of overdue

and delinquent accounts; exert

extra efforts to reconstruct the

records of the dormant accounts to

facilitate collection thereof.

BFI

CCP

FTI

HSDC

LBP

LRTA

NDA

PAGCOR

PDGCC

PFDA

PPA

PPC

PSALM

Bayugan WD

Cantila WD Region 7 WDs

690

78,729

255,112

737,183

50,576

60,950

28,977

458,146

3,318

215,106

114,755

7,380

133,973

2,318

1,984

194

Inadequate provision of valuation

reserves resulting in the

overstatement of the Loans and

Accounts Receivable and

understatement of the Expenses by

the same amount.

Provide allowance for probable

losses for the long outstanding

receivables.

MSI

LBP

910

34,082

364


affected

Amount (in

thousands)

Unreconciled balances between the

general ledger balance and the

subsidiary ledgers.

Exert extra effort to reconcile the

balances reflected in the general

ledgers and its subsidiary ledger to

establish the correct balances of

the receivables account.

NIACI

NHMFC

PDIC

PSALM

PPC

PTNI

SHFC

SSS

TIEZA

Bayugan WD

Madrid WD Region 7 WDs

29,038

393,018

6,312,522 98,559,000

7,900

222,443

3,714,827

2,364,369

NQ

192

221

4,671

Discrepancy in the confirmation of

receivables.

Identify the causes of the

discrepancies noted, settle the

differences, reconcile and effect

the necessary adjustments.

CCP

NDA

PAGCOR

PDGCC

PFDA

PRA

16,535

453,650

1,185

3,318

15,091

1,302,000

Laxity in the credit evaluation/

approval resulting in the doubtful

recovery of past due loans granted

in previous years.

Strictly observe the existing

regulations on credit evaluation/

approval, hold the approving

officials liable to recover the losses

incurred from the non-collection of

receivable.

PPSBI

LBP

284,250

75,057

Past due commercial and salary

loans had tied up the banks’ funds

to slow-moving accounts, thereby

reducing the amount of resources

for lending/relending that could

have generated additional income.

Institute foreclosure proceedings

on mortgaged properties of

commercial loan borrowers with

past due accounts; advise the

Account/Approving Officer to be

more diligent in reviewing/

approving loan applications to

minimize accounts turning past

due; and adopt appropriate

measures immediately to correct

deficiencies noted, otherwise,

consider the loan accounts with

deficiencies due and demandable.

DBP

PPSBI

2,875,525

386,462

365


affected

Amount (in

thousands)

Allowance for Doubtful Accounts

Absence or understatement/

overstatement of allowance for

doubtful accounts.

Formulate accounting policies on

estimating reliably the allowance

for doubtful accounts that would

serve as the basis in measuring the

probability of non-collection of

receivables.

Prepare aging schedules for all

receivable accounts and categorize

properly the accounts to determine

the probability of their collections

and to ascertain if provision of

allowance for doubtful accounts is

warranted.

BSP

CCP

CIAC

GYREI

NFC

NRDC

PCFC

PPA

PPC

PTNI

Bunawan WD


19,107

19,582

15,828

133,164

4,646

27,690

80,819

550

388,660

222,443

3

NQ

5,002

Inventory

Non-reconciliation of the difference

between the physical inventory

report and general ledger balances.

Reconcile the variances between

the balances per books and actual

inventory counts and prepare the

necessary adjustments to ensure

accuracy and correctness of the

year-end balance of the inventory

accounts.

BCDA

NDC

NTA

PAGCOR

PCA

PFDA

SUMSI

Bunawan WD Butuan City WD Prosperidad WD Region 7 WDs

67

20

NQ

4,108

NQ

NQ

152

8 23,296

8

15,753

Failure to submit the Monthly

Report of Supplies and Materials as

basis for the monthly adjustment of

inventories.

Prepare a report on total issuances

and balances on hand of all

inventory accounts. The Summary

of Supplies and Materials Issued

should be reconciled with the

records of the Accounting Office

as a source document to support

the monthly adjustment of the

Inventory accounts.

Buenavista WD

Nasipit WD

1,149

1,530

Advances

Outstanding cash advances at year-

end remained unliquidated or

unsettled, contrary to Section 89 of

PD No. 1445 and COA Circular No.

97-002 dated February 10, 1997.

Strictly comply with the rules and

regulations on cash advances by

requiring the personnel concerned

to settle/liquidate their cash

advances immediately upon

serving the purpose or within the

prescribed period.

APECO

BMHI

CAAP

LWUA

TIEZA

PADC

NIACI

24

NQ

NQ

6,690

42,323

1,954

4,887

366


affected

Amount (in

thousands) PFDA

ZREC

PADCC

HSDC

PDGCC

PTNI

PITC

VFP

BSoP

NRDC

SPDA

SRA

OWWA

PMDC

TRANSCO

Bacuag WD Buenavista WD Del Carmen WD

Lianga WD

Madrid WD

Placer WD

San Jose WD

Region 7 WDs

522

1,137

585

350

84,050

NQ

NQ

29,056

358

10,127

3,447

523

29,056

174

1,212

103

242 56

163

87

358

10

NQ

Advances for projects undertaken

remained unrecovered after the

contracts had been rescinded or

terminated.

Pursue appropriate legal action

against the surety bond posted by

the contractors. Exert all effort to

collect from the contractors with

long overdue advances. Develop a

system of monitoring

rescinded/terminated contracts

with the end view of determining

the existence of unrecovered

advance payments; and determine

the officers and employees who

were negligent in the discharge of

their duties and responsibilities,

particularly the persons

responsible for the loss of the

documents on contractor/s.

LWUA

MCIAA

MIAA

TIEZA Region 7 WDs

48,690

17

15,294

44,231

16,621

Additional cash advances were

granted despite non-liquidation of

previous cash advances.

Strictly adhere to the existing

rules and regulations on the

granting and settlement of cash

advances.

SBMA

TRANSCO

NQ

2,346

367


affected

Amount (in

thousands)

The Agency’s disbursements out of

cash advances for activities or time

bounded undertakings with specific

purpose lacked the basic

documentary requirements as

required in Section 168 (c) of the

Government Accounting and

Auditing Manual (GAAM) Volume

1.

Instruct the employee responsible

in the preparation of the

disbursement voucher covering the

liquidation of the grant of the cash

advance to closely observe the

required supporting documents;

and strictly comply with the

provisions of Section 168 (c) of

the Government Accounting and

Auditing Manual (GAAM).

Buenavista WD

Nasipit WD

77

110

Unliquidated fund transfers

Recorded balances of Due from

national government agencies

(NGAs) and local government units

(LGUs) representing funds

transferred, remained dormant due

to non-submission of liquidation

reports by the concerned

implementing agencies.

Strengthen the monitoring of

unliquidated fund transfers to

LGUs/NGAs through follow-up

letters and demand for their

immediate liquidation.

TIEZA

PFDA

NDA

TPB

PITC

42,323

11,360

193,719

NQ

NQ

Unused trust funds were not

returned to the source agency

contrary to COA Circular No. 94-

013.

Return to the Source Agency any

unused/unexpended balance of the

trust funds upon completion of the

projects. In case Management

intends to utilize the unused

balance of the trust funds for other

related project/s, approval from the

Source Agency must be secured.

CITC

CITEM

NDA

PITC

PHC

NQ

361,970

193,719

26,160

NQ

Construction in Progress

The Construction in Progress has a

balance although there are no

remaining on-going projects or

inclusion of items which could not

be located.

Analyze the account and report on

the particulars of the transactions

as basis for proper accounting

treatment thereof.

LCP

TIEZA

228,216

NQ


Failure to conduct physical

inventory-taking or incomplete

inventory-taking to determine the

correctness of the accounting and

property records against the

physical inventory of properties.

Conduct annual physical

inventory in compliance with

Section 490 of the GAAM

Volume 1 and reconcile

physical inventory results with

records per books of accounts.

APECO

CCP

CITEM

DFPC

HSDC

LCP

MWSS

NFP

NRDC

576

294,680

NQ

2,299

245,776

7,599

8,800,000

NQ

52,595

368


affected

Amount (in

thousands) OSHC

PDGCC

PITAHC

PFDA

PNR

PPC

TRC

VFP

Bislig WD

Bunawan WD

Cantilan WD

Tandag WD Region 7 WDs

75,521

1,243

56,212

325,283 17,110,000

168,620

40,655

NQ

13,450

3,822

6,509

48,977

21,208

Unreconciled discrepancies

between the balances per books and

physical inventory report/property

cards.

Reconcile the discrepancy

between accounting and

property records to ascertain the

existence, valuation and

accuracy of the PPE account

and effect the necessary

adjustments in the books. For

items that were lost, require the

accountable officer to file a

request for relief from property

accountability with the COA;

Ensure prompt completion and

submission of the Report on

Physical Count of PPE

(RPCPPE) by following the

guidelines for inventory-

taking of PPE.

BSP

CITEM

CCP

HDMF

LCP

LRTA

MCIAA

MWSS

NIACI

NHMFC

PAGCOR

PCMC

PEZA

PFDA

PHC

PPA

PRA

PTNI

SRA

SUMSI

TIDCORP Butuan City WD

San Francisco WD Surigao Metro WD

Tagbina WD Region 7 WDs

348,522

2,299

42,090

49,887

72,170 74,990,000

420

8,840,000

4,234

27,430

156,467

644,104

NQ

5,874

142,960 95,569,000

5,972

NQ

13,413

36,205

60,209

1,310,036 3,750

988

12,351

406,452

Failure to maintain/provide

subsidiary ledgers and supporting

schedules for the details of PPE.

Prepare and maintain

subsidiary ledgers which

include complete details of

each transaction and

individual PPE.

PNR

PPC

PRRI Butuan City WD

17,110,000

1,810,000

3,291

13,296

369


affected

Amount (in

thousands)

Failure to prepare and issue

Property Acknowledgment Receipt

(PAR) for PPE issued to officers

and employees/end-users.

Complete the issuance of PARs

for property issued to officers

and employees to establish

proper accountability, otherwise

any property lost not covered

by PAR would be considered as

accountability of the Property

Officer.

PDGCC

NIACI

Nasipit WD Buenavista WD

1,243

NQ

177

NQ

Titles of real properties were not

consolidated in the name of the

agency.

Expedite the

consolidation/titling of acquired

properties with expired

redemption period in the name

of the GOCC to facilitate

prompt disposal of the same.

BCDA

HDMF

LBP

NDA

SPDA

Bislig WD

Hinatuan WD Metro Cebu WD

4,114,515

37,211

150,304

263

3,799

1,838

NQ

NQ

Failure to fully observe the

regulations on the use of

government vehicles as provided

for in Section 361, (e) 1 and (g) of



1, thus the use and fuel

consumption of the vehicle could be

hardly monitored.

Instruct the employee

responsible in the preparation

of the disbursement voucher for

payment of fuel/oil (gasoline)

to include the Monthly Report

of Official Travel and Fuel and

Oil Consumption Report as

additional supporting

documents.

Buenavista WD Nasipit WD

NQ

NQ

Other Assets

Unserviceable property remained

classified under Property, Plant and

Equipment account instead of Other

Assets account contrary to

paragraph 67 of PAS 16 and

Section 143 of NGAS Manual

Volume III.

Reclassify unserviceable property

to Other Assets account in

accordance with Paragraph 67 of

PAS 16 and Section 143 of NGAS

Manual Volume III.

CCP

PDGCC

PFDA

HSDC

NHMFC

PDGCC

PITACH

PMDC

PNR

PPA

SRA

TIEZA Surigao Metro WD

5,833

217

5,553

1,783

17,912

217.335

15,373

3,379

15,970

595,425

14,033

17,239 2,606

370


affected

Amount (in

thousands)

Unserviceable properties remained

undisposed and are still recorded in

the books of accounts of the

agency.

Cause the disposal of the

unserviceable property in

accordance with Sec. 79 of PD

1445.

GSIS

HDMF

NDA

PEZA

PPSBI

SRA

SUMSI Buenavista WD

Nasipit WD Surigao Metro WD

NQ

4,742

3,459

3,200

3,074

14,033

528

83

2,156 348

Acquired assets remained

undisposed for more than five

years in violation of the General

Banking Law of 2000 and other

applicable regulations.

Strictly observe applicable

regulation/s; dispose the acquired

assets immediately; and prepare

the necessary adjustment/s in the

books of accounts.

DBP

HDMF

LBP

TIDCORP

737,965

574,353

2,690,499

30,177

Acquired assets could not be

disposed of because records

thereof were not properly

maintained resulting in possible

destruction and fast deterioration

of the assets and loss of income

opportunity that could have been

derived therefrom.

Comply with applicable

regulations in the administration

of acquired assets; and conduct

appraisal of the property

periodically in accordance with

existing policies.

DBP

LBP

440,870

94,560

Acquired assets were not

appraised at least every other

year and conducted by an

independent appraiser if more

than P5 million each.

Conduct appraisal of the property

periodically to ensure fair

presentation of the account in the

financial statements.

SSS

TIDCORP

127,836

NQ

Acquired/foreclosed assets of the

agency were occupied by

informal settlers/illegal

occupants.

Undertake appropriate actions to

require illegal occupants to vacate

the foreclosed properties and

demand compensation for the use

of these properties; and facilitate

the execution of lease contract

between the agency and the

occupants of the properties as an

alternative for ejectment.

SSS

TIDCORP

2,322

NQ

Liabilities

Unreconciled balances between

the general ledger balance and the

subsidiary ledgers.

Exert extra efforts to reconcile

the balances reflected in the

general and subsidiary ledgers to

establish the correct balances of

the account.

HDMF

NIACI

Tagbina WD

1,416

22,367

10,723

371


affected

Amount (in

thousands)

Accounts payable remained for two

years or more.

Strictly implement the provisions

on the required notices to clients

with unclaimed balances and

closely monitor the account to

institute timely and appropriate

action.

CCP

LBP

LBRDC

LLC

PPA

31,341

37,078

1,978

3,749

28,308

Recording of obligations/payables

without documentation on the

incurrence thereof.

Stop the practice of recording

liabilities without complete

documentation of the incurrence of

obligations. Record obligations

only upon receipt of goods and

service/s procured. Record

disbursements only upon

preparation and approval of the

check covering the obligation to be

settled.

CAAP

PNR

115

114,140

Capital stock

Stock and Transfer Book (STB)

were not updated.

Require the Corporate Secretary to

update the STB in compliance with

existing regulations on the matter.

ZREC

PADCC

NQ

NQ

Failure to issue stock certificates to

stockholders.

Issue the corresponding stock

certificates to the stockholders

corresponding to their fully paid-

up subscriptions.

ZREC

PADCC

7,400

24,999

Dividends

Dividends due to the National

Government remained unremitted

contrary to Section 3 of Republic

Act No. 7656.

Comply with the provision of

Section 3 of R.A. No. 7656 for the

full remittance of dividends to the

National Government.

BCDA

KRC

LWUA

NDC

NDC-PIC

2,167,000

192

1,130,000

2,080,000

NQ

Undistributed/unposted collections/revenues

Undistributed/unposted collections

remained unposted/unallocated

contrary to applicable regulations.

Implement measures to prevent or

correct the causes for the non-

posting of undistributed

collections.

HDMF

NHMFC

SHFC

SSS

82,841

393,018

3,714,827

4,616,172

Expenditures

Payment of bonus, allowances and

benefits to the Board of Directors

and employees without or in

excess of legal basis or proper

authority.

Discontinue the grant of bonus,

allowances and benefits without or

in excess of legal basis or proper

authority. Refund the excess

compensation/allowances received

BCDA

BLCI

CAAP

CIAC

DAP

NQ

16

126

1

23,838

372


affected

Amount (in

thousands) by officers and employees

concerned.

DBP

HDMF

HSDC

LCP

MCIAA

MGC

NDA

NDC

NDC-PIC

OWWA

PHIC

PICCI

PNOC

PNOC-EC

PDMC

PAFC

PCSO

PEZA

PICCI

SUMSI

TIDCORP

TIEZA

VFP Butuan City WD


216,801

37,636

8,713

NQ

14,406

281

7,279

2,299

30

6,747

1,651,084

892

5,504

14,518

622

3,330

54,829

48,500

840

133

NQ

NQ

NQ

28,243

234

186,584

Various expenditure items under

personal services were not approved

for budget allocation by the


Management (DBM) due to

overprovision and/or absence of

approval from the Office of the

President (OP).

Stop the payments of expenditures

in the absence of required approval

from the Office of the President

for the mentioned expenditures in

line with Section 5 of PD No. 1597

and Section 61 of PD 1445, and

submit the proof that these

expenditures were reconsidered by

DBM for budget allocation.

DBP

PEZA Region 7 WDs

179,230

158,129

NQ

Maintenance of Group Health

Insurance Plan (GHIP) with a

private health care insurance entity

did not conform with COA

Resolution No. 2005-001 dated

February 3, 2005.

Stop the payment of health

insurance premiums for employees

in the absence of approval from

the Office of the President.

NEA

PNOC-EC

NQ

NQ

373


affected

Amount (in

thousands)

Hiring of private firm/lawyer

without securing the prior written

conformity and acquiescence of the

Office of the Government

Corporate Counsel (OGCC) and the

written concurrence of the

Commission On Audit (COA) in

violation of COA Circular No. 86-

255.

Submit copies of prior approval for

hiring private lawyers from the

OGCC and written concurrence

from COA.

GSIS

PSTC

4,606

NQ

Erroneous computation of

depreciation.

Comply with the provisions of

COA Circular No. 2004-003 by

deducting the 10 percent residual

value from the acquisition cost

before computing the

depreciation. Effect the

necessary adjusting entries to

reflect the revised book value of

PPE.

PNR

SSS

181,910

9,786

Procurement

Procurement of goods, property,

plant and equipment, consultancy

services, etc. were not made in

accordance with RA 9184 and

Government Procurement Policy

Board Resolution No. 018-2006.

Comply with RA No. 9184 and

Government Procurement Policy

Board Resolution No. 018-2006 in

the procurement of property, plant

and equipment, consultancy

services and other items which are

subject to the aforesaid

government rules and regulations.

AAIIBP

BSP

CIAC

CITEM

DAP

HSDC

MWSS

OSHC

PADCC

PAGCOR

PFDA

PHC

PRA

TIEZA

VFP

Bato WD Butuan City WD

Lianga WD

Nasipit WD

Virac WD

NQ

NQ

NQ

NQ

33,246

1,835

4,190

11,380

151

1,159

NQ

NQ

NQ

NQ

NQ

0.097

4,391

235

NQ

0.619

374


affected

Amount (in

thousands)

Procurement made not with the

Procurement Service of the DBM

contrary to the provisions of RA

No. 9184 and its IRR, as well as

Administrative Order No. 17 dated

July 18, 2011.

Procure the common-use supplies

directly from the Procurement

Service and use the PhilGEPS in

all procurement activities in

compliance with RA 9184 and

Administrative Order No. 17.

LIBI

LCDFI

MSI

OSHC

Nasipit WD

NQ

NQ

NQ

8,890

NQ

Major amendments to the original

contract awarded through bidding

or other modes of procurement

which substantially changed the

scope of work were effected

without rebidding.

Initiate appropriate charges,

criminal or administrative, if

warranted, against officials who

were responsible in the irregular

award and implementation of the

projects.

LRTA

PSTC

15,490

33,684

The members of the Bids and

Awards Committee (BAC) did not

include any representative from the

end-user unit as required in Section

11.2.2 of the Implementing Rules

and Regulations (IRR) of RA 9184.

Instruct the BAC to adhere strictly

to the required composition of the

BAC as provided in Section 11.2.2

of the Implementing Rules and

Regulations (IRR) of Republic Act

9184.

Buenavista WD

Nasipit WD

NQ

NQ

Taxes

Unremitted taxes to the BIR

contrary to BIR rules and

regulations.

Strictly adhere to the applicable

BIR rules and regulations to avoid

payment of interest and penalties.

BFI

NRDC

PDGCC

PMDC

PRA

PRRI

SUMSI

TIEZA


18,966

19,450

2,839

767

NQ

NQ

237

847

33,929

909

Corporate Operating Budget

Management failed to submit its

approved Corporate Operating

Budget (COB) to the DBM contrary

to Corporate Budget Circular No.

20 dated April 27, 2005, EO No.

518 and COA-DBM COA Circular

No. 87-1 dated March 17, 1987.

Prepare and submit COB to the

DBM pursuant to Corporate

Budget Circular No. 20 dated

April 27, 2005, Section 6 of EO

No. 518 and Items 3.1 and 3.2 of

COA-DBM Joint Circular No. 87-

1 dated March 17, 1987.

ZREC

NRDC

OWWA

PADCC

NIACI

NQ

NQ

1,541,000

NQ

NQ

Some allowances and benefits

exceeded the maximum limit set per

DBM-approved COB.

Stop granting allowances and

benefits in excess of the maximum

limit.

DFPC

LWUA

36,265

30,520

375


affected

Amount (in

thousands)

Submission of required documents

Management did not submit to the

Securities and Exchange

Commission copies of the audited

financial statements of PADCC and

its Annual Income Tax Return filed

with the Bureau of Internal

Revenue, contrary to Section 141 of

Batas Pambansa Blg. 68,

(Corporation Code of the

Philippines)

Strictly comply with Section 141

of the Corporation Code of the

Philippines and make

representation with the SEC for

possible condonation of penalties

or reduction in the amount of

penalties to be imposed, for its

failure to file the required reports.

PADCC

NIACI

NQ

NQ

Disallowances, charges, and

suspensions remained outstanding.

Management should undertake

appropriate action to ensure

settlement of the disallowances

and charges which had become

final and executory; and, ensure

compliance with the requirements

for transactions suspended in audit.

LRTA

PNR

35,430

137,200

Disbursements covering payments

for procurement of various supplies

and materials, services, repairs and

similar transactions needed for the

operation of the Agency were

deficient of some documents

required to establish the validity

and correctness of the claim

contrary to Section 168 (c) of the

Government Accounting and


1 and Section 4, Item 6 of PD 1445.

Instruct the employee assigned in

the preparation of the

disbursement vouchers to see to it

that each transaction is fully

supported with the required

documents in compliance to the

provisions of Section 168 (c) of


Auditing Manual (GAAM)

Volume I and Section 4, item 6 of

PD 1445.

Bislig WD Buenavista WD

Bunawan WD

Lianga WD

Nasipit WD Prosperidad WD Surigao Metro WD

26,030

1,638

346

1,016

6,922 NQ NQ

Gender and Development

Management failed to incorporate

Gender and Development (GAD)

concerns in their annual operating

budget or provided inadequate

funds per budget as mandated under

Executive Order No. 273, dated

September 8, 1995 and Joint

Circular No. 2004-1 issued by the


Management (DBM), National

Economic and Development

Authority (NEDA) and the National

Commission on the Role of Filipino

Incorporate and reflect GAD

concerns in agency performance

commitment contracts, annual

budget proposals and work and

financial plans. Formulate a GAD

Plan specifically for women

employees.

BHMI

MSI

DCI

DLC

NFC

BSP

BFI

HDMF

HSDC

LCP

NIACI

NLRC

NPC

NQ

NQ

NQ

NQ

NQ

NQ

NQ

NQ

NQ

NQ

NQ

NQ

714

376


affected

Amount (in

thousands) Women (NCRFW).

OSHC

PADCC

PCED

PSC

PHILSUCOR

PFDA

PPI

PRRI

HDMF

HGC

TPB

Bislig WD Metro Cebu WD Surigao Metro WD

NQ

NQ

NQ

NQ

NQ

NQ

NQ

NQ

NQ

1,345

333

1,790

NQ NQ

Programs, projects and activities

not fully implemented due to low

utilization of budget.

Give more attention to the

implementation of GAD programs,

projects and activities.

NHA

ZCSEZA

2,602

NQ

Questionable going concern

The sustainability of operations of

the agency is no longer assured.

Conduct assessment/study to

determine viability of operations to

prevent further losses to

government.

CITC

PPI

NQ

NQ

Suspensions, Disallowances and Charges

72 In line with COA Circular No. 2009-006, dated September 15, 2009, “Prescribing the

use of the Rules and Regulations on Settlement of Accounts,” the Auditor is tasked to

issue a Notice of Suspension/Notice of Disallowance/Notice of Charge for

differences/balances resulting from the audit of the Accounts.

73 A Notice of Suspension (NS) is issued for transactions of doubtful legality/propriety/

regularity which may result in pecuniary loss to the government, and which will be

disallowed in audit if not satisfactorily explained or validly justified by the parties

concerned.

74 A Notice of Disallowance (ND) is issued for transactions which are irregular/

unnecessary/excessive and extravagant as defined under existing laws/rules/

regulations.

377

75 A Notice of Charge (NC) is issued if: (a) the amount assessed/appraised is less than

what is due the government; (b) the amount billed is less than the amount due the

government; and (c) the amount collected is less than what is due to the government.

The differences/variances noted shall constitute a proper audit charge.

76 For current year 2012, a total of P5,384.66 million, representing transactions of

doubtful legality/propriety/regularity were issued the corresponding NS. A total of

P2,468.79 million or 23.92 percent of the total NS of P10,322.30 million were settled

during the year.

77 NDs were issued for transactions totaling to P9,523.54 million. These represent

various expenditures which were considered irregular/unnecessary/excessive and

extravagant/illegal and/or unconscionable in nature. A total of P258.87 million

representing 1.33 percent of the total NDs of P19,429.64 million were settled.

78 NCs were issued for uncollected/unassessed revenues totaling to P1,882.58 million.

About P0.149 million of the total NCs of P2,016.46 million were recovered.

79 The unsettled balance of NSs, NDs, NCs at year-end are P7,853.51 million,

P19,170.78 million and P2,016.31 million, respectively. Presented in Table II – 3 is

the Statement of Audit Suspensions, Disallowances and Charges as of year-end.

Table II – 3

Status of Issuance and Settlement of Audit Suspensions, Disallowances and Charges

As of December 31,2012

(in thousand pesos)

Cluster Beginning

Balance Issued Settled

Ending

Balance

Suspensions 4,937,636 5,384,663 2,468,787 7,853,512

Disallowances 9,906,098 9,523,543 258,866 19,170,775

Charges 133,872 1,882,583 149 2,016,306

Total 14,977,606 16,790,789 2,727,802 29,040,593

378

Summary of implementation

of prior year’s audit recommendations

80 COA regularly monitors responses of GOCCs/GFIs to the audit recommendations and

suggested measure/s to address the audit observations/findings discussed in prior

years’ AARs. Presented in the following matrix is a summary of the status of

implementation of prior years’ recommendations by 142 GOCCs monitored. Out of

the total 2,932 audit recommendations, 920 or 31.38% were fully implemented; 1,094

or 37.31% were partially implemented and the remaining 918 or 31.31% were not

implemented at all.

81 Details and discussions on the specific measures that had been implemented, partially

implemented and not implemented at all are indicated in the AARs of the respective

agencies. Annex 18 features the specific GOCCs vis-à-vis the number of 2012 audit

recommendations implemented or not implemented as reported in the transmitted

AARs as of September 16, 2013.

Table II – 4

Summary Status of Implementation of Prior Years’ Audit Recommendations

Cluster

No. of

agencies

monitored

No. of

recommend-

dations

Status

Fully

implemented Partial

implementation Not

implemented

1 19 390 164 180 46

2 15 365 125 195 45

3 19 207 88 58 61

4 40 581 199 206 176

5 23 739 193 222 324

6 26 650 151 233 266

Total 142 2,932 920 1,094 918

Annexes

1

- List of government-owned or controlled corporations by Cluster/Region, with their acronyms, and status of audit as of September 16, 2013

2

- Roster of Members of Governing Boards of Government-owned or controlled corporations

3 - List of GOCCs not included in the Report

4 - Summary Functions of GOCCs

5 - Ranking by Total Assets

6 - Ranking by Total Liabilities

7 - Breakdown of Domestic Loans

8 - Breakdown of Foreign Borrowings

9 - Ranking by Total Equity

10 - Ranking by Gross Income

11 - Ranking by Total Expenditures

12

- Summary of Discretionary, Representation, Extraordinary, Promotional, Confidential, and Consultancy Expenses

13 - Annual Growth of Subsidy Income from the National Government

14 - Subsidy Received from Other Government Agencies

15 - Top 20 GOCC Taxpayers

16 - Top 20 GOCCs with Dividend Remittances

17 - Tabulation of Audit Opinions Rendered

18

- Status of Implementation of Prior Years’ Audit Recommendations

Acronym Remarks


Parent

1. Bangko Sentral ng Pilipinas BSP

Subsidiary

2. Philippine International Convention Center, Inc. PICCI

Attached Agencies

3. Central Bank - Board of Liquidators CB-BOL

4. Credit Information Corporation CIC

Parent

5. Development Bank of the Philippines DBP

Subsidiaries

6.Al-Amanah Islamic Investment Bank of the

PhilippinesAAIIBP

7. DBP Data Center, Inc. DCI

8. DBP Leasing Corporation DLC

9. DBP Management Corporation DBPMC

10. Industrial Guarantee and Loan Fund IGLF

With Annual Audit Report issued










GOCCs located in the National Capital Region

Name of GOCC

List of government-owned or controlled corporations

Annex 1

by Cluster/Region, with their acronyms and status of audit

as of September 16, 2013

Status of audit

. Annex 1 Page 1 of 10

Acronym Remarks

Parent

11. Land Bank of the Philippines LBP

Subsidiaries

12.Landbank Countryside Development Foundation,

Inc.LCDFI

13.Land Bank Resources and Development

CorporationLBRDC

14. LBP Insurance Brokerage, Inc LIBI

15. LBP Leasing Corporation LLC

16. Masaganang Sakahan, Inc. MSI

Attached Agencies

17. National Livelihood Development Corporation NLDC

Subsidiary

18. Northern Foods Corporation NFC

19. People's Credit and Finance Corporation PCFC

20. Philippine Deposit Insurance Corporation PDIC

21. Philippine Postal Savings Bank, Inc. PPSBI


Parent

1. AFP Retirement and Separation Benefits System AFPRSBS

Subsidiary

2. Southern Utility Management and Services, Inc. SUMSI

3. Employees' Compensation Commission ECC

Parent

4. Government Service Insurance System GSIS

Subsidiary

5. GSIS Family Bank GFB

Name of GOCC Status of audit



Audit on-going









Annual Audit Report under review






Acronym Remarks

6. Home Development Mutual Fund HDMF

7. Home Guaranty Corporation HGC

Parent

8. National Home Mortgage Finance Corporation NHMFC

Subsidiary

9. Social Housing Finance Corporation SHFC

10. National Housing Authority NHA

11. Occupational Safety and Health Center OSHC

12. Palacio Del Gobernador Condominium Corporation PDGCC

13. Small Business Corporation SBC

14. Social Security System SSS

15. TIDCORP


1. APO Production Unit, Inc. APU

2. Light Rail Transit Authority LRTA

Parent

3. Local Water Utilities Administration LWUA

4. Metropolitan Waterworks and Sewerage System MWSS

Parent

5. National Electrification Administration NEA

6. National Power Corporation NPC

Parent

7. Philippine National Oil Company PNOC

Subsidiaries

8. PNOC Alternative Fuels Corporation PAFC

9. PNOC Development & Management Corporation PDMC





















Trade Investment Development Corporation of the

Philippines


Acronym Remarks

10. PNOC Exploration Corporation PNOC - EC

11. PNOC Malampaya Production Corporation PMPC

12. PNOC Renewables Corporation PRC

13. PNOC Shipping and Transport Corporation PSTC

14. Philippine National Railways PNR

15. Philippine Ports Authority PPA

16. Philippine Postal Corporation PPC

Parent

17. PSALM

Subsidiary

18. National Transmission Corporation NTC


Parent

1. Bases Conversion Development Authority BCDA

Subsidiaries

2. Bataan Technology Park, Inc. BTPI

3. BCDA Management and Holdings, Incorporated BMHI

4. Clark Development Corporation CDC

5. Clark International Airport Corporation CIAC

6. John Hay Management Corporation JHMC

7. North Luzon Railways Corporation NORTHRAIL

8. Philippine Centennial Expo '98 Corporation EXPOCORP Non-operational.

Parent

9. Cagayan Economic Zone Authority CEZA

Subsidiary


















No audit conducted


Power Sector Assets and Liabilities Management

Corporation


Acronym Remarks

10. Northeastern Luzon Pacific Coastal Services, Inc. NLPCSI

11. Civil Aviation Authority of the Philippines CAAP

12. Laguna Lake Development Authority LLDA

13. Manila International Airport Authority MIAA

Parent

14. National Development Company NDC

Subsidiaries

15. Batangas Land Company, Incorporated BLCI

16. Crowntex Realty Corporation Crowntex Non-operational and without

17. First Cavite Industrial Estate, Inc. FCIE

18. First Centennial Clark Corporation FCCC Non-operational.

19. GY Realty Estate, Inc. GYEI

20. Inter-Island Gas Services, Inc. IIGSI

21. Kamayan Realty Corporation KRC

22. Luzon Integrated Services, Inc. LINSI Account balances were already

23. Luzon Stevedoring Corporation LUSTEVECO Account balances were already

24. Manila Gas Corporation MGC

25. National Precision Cutting Tools, Inc. NPCTI Account balances were already

26. National Stevedoring and Lighterage Corporation NSLC Account balances were already

closed to NDC as sole

stockholder and creditor.

27. National Trucking and Forwarding Corporation NTFC Account balances were already

28. NDC Philippine Infrastructure Corporation NPIC

29. Philippine National Lines PNL

30. Pinagkaisa Realty Corporation PRC

31. Tacoma Bay Shipping Corporation TABASCO Account balances were already

32. UP-NDC Basilan Plantations, Inc. UNBPI Non-operational and without

33. Philippine Aerospace Development Corporation PADC

34. Philippine Economic Zone Authority PEZA








No audit conducted


No audit conducted




No longer audited since CY 2011










No audit conducted




Acronym Remarks

Parent

35. Philippine National Construction Corporation PNCC

Subsidiaries

36. Alabang-Sto. Tomas Development, Incorporated ASDI

37. CDCP Farms Corporation CDCP-FC

38.DISC Contractors Builders and General Services,

IncorporatedDISCCBGSI

39. PNCC Skyway Corporation PSC Non-operational. Books of

accounts and all other

documents/ records are not

available since December 31,

2007. No officers and

employees are handling the

accounts of the corporation.

40. Tierra Factors Corporation TFC

41. Traffic Control Products Corporation TCPC

Parent

42. Philippine Reclamation Authority PRA

Subsidiary

43. PEA Tollway Corporation PEATC

Parent

44. TIEZA

Subsidiaries

45. Corrigedor Foundation, Inc. CFI






No audit conducted







Tourism Infrastructure and Enterprise Zone Authority


Acronym Remarks


Parent

1. Human Settlements Development Corporation HSDC

Subsidiaries

2. National Agribusiness Corporation NABCOR

3.Philippine Agricultural Development and

Commercial CorporationPADCC

4. ZNAC Rubber Estate Corporation ZREC

5. National Dairy Authority NDA

Parent

6. National Food Authority NFA

Subsidiary

7. Food Terminal, Inc. FTI

Parent

8. National Irrigation Administration - Corporate Fund NIA - CF

9. National Irrigation Administration - General Fund NIA - GF

10. National Irrigation Administration - Special Fund NIA - SF

Subsidiary

11. NIA Consult, Inc. NIACI

Parent

12. Natural Resources Development Corporation NRDC

Subsidiaries

13. Philippine Forest Corporation PFC

14. Philippine Mining Development Corporation PMDC

15. National Tobacco Administration NTA

16. Philippine Coconut Authority PCA

17. Philippine Crop Insurance Corporation PCIC

18. Philippine Fisheries Development Authority PFDA

Name of GOCC



Status of audit


















Acronym Remarks

19. Quedan and Rural Credit Guarantee Corporation QUEDANCOR

Parent

20. Sugar Regulatory Administration SRA

Subsidiary

21. Philippine Sugar Corporation PHILSUCOR


1. Boy Scout of the Philippines BSoP

2. CITEM

3. Cottage Industry Technology Center CITC

4. Cultural Center of the Philippines CCP

5. Development Academy of the Philippines DAP

6. Duty Free Philippines Corporation DFPC

7. Girl Scout of the Philippines GSPManagement refused to be

audited

8. Intercontinental Broadcasting Corporation IBC

9. Lung Center of the Philippines LCP

10. National Kidney and Transplant Institute NKTI

11. Nayong Pilipino Foundation NPF

12. Overseas Workers Welfare Administration OWWA

13. Philippine Amusement and Gaming Corporation PAGCOR

14. Philippine Center for Economic Development PCED

15. Philippine Children's Medical Center PCMC

16. Philippine Charity Sweepstakes Office PCSO

17. Phlippine Health Insurance Corporation PHIC

18. Philippine Heart Center PHC

19. Philippine Institute for Development Studies PIDS











Not audited













Center for International Trade Expositions and

Missions


Acronym Remarks

20. PITACH

Parent

21. Philippine International Trading Corporation PITC

Subsidiary

22. PITC Pharma, Inc. PPI

23. Philippine Retirement Authority PRA

24. People's Television Network, Inc. PTNI

25. Tourism Promotions Board TPB

26. Technology Resource Center TRC

27. Veterans Federation of the Philippines VFP

AcronymCluster

Assigned in

Consolidation

Status of audit Remarks

Region I

1. Poro Point Management Corporation PPMC 4 With Annual Audit Report issued

Region III

3. APECO 4 With Annual Audit Report issued

4. Authority of the Freeport Area of Bataan AFAB 4 With Annual Audit Report issued

5. Freeport Services Corporation FSC 4 No audit conducted Non-operational since July

6. Philippine Rice Research Institute PRRI 5 With Annual Audit Report issued

7. Subic Bay Metropolitan Authority SBMA 4 With Annual Audit Report issued









Stand-alone GOCCs located in the Regions

Name of GOCC

Aurora Pacific Economic Zone and Freeport

Philippine Institute of Traditional and Alternative

Health Care



AcronymCluster

Assigned in

Consolidation

Status of audit Remarks

Region V

8. Partido Development Administration PDA 4 Annual Audit Report unsubmitted

Region VII

9. Cebu Ports Authority CPA 3 With Annual Audit Report issued Detailed report of financial

10. Mactan-Cebu International Airport Authority MCIAA 4 With Annual Audit Report issued

Region IX

11. Zamboanga City Special Economic Zone Authority ZCSEZA 4 With Annual Audit Report issued

Region X

12. Bukidnon Forest, Incorporated BFI 5 With Annual Audit Report issued

13. PHIVIDEC Industrial Authority PIA 4 With Annual Audit Report issued

Region XI

14. Southern Philippines Development Authority SPDA 4 With Annual Audit Report issued

Autonomous Region in Muslim Mindanao

15. Marawi Resort Hotel, Incorporated MRHI 4 With Annual Audit Report issued

Name of GOCC


Last Name, First Name,

Middle Initial

Aguelo, Crispino T. LBP, MSI 2

Abad, Florencio B. OWWA,TRC, DAP, PCED,

NHMFC, HDMF, LRTA, NPC,

PSALM, NDC 10

Aban, Alma P. SUMSI 1

Abaya, Joseph Emilio A. LRTA, PPA, CAAP (3 mos),

NORTHRAIL, PADC (3 mos),

MIAA (2.5 mos), MCIAA, TPB (4

mos) 8

Abaya, Peter Anthony A. PRA, PEATC 2

Abello, Roberto G. PHILSUCOR 1

Abonal, Ariel F. BLCI (7.7 mos) 1

Abrera, Emily A. CCP 1

Abungan, Anselmo C. PPA 1

Acosta,Nereus Jr. O. LLDA 1

Adalim, Gualterio P. VFP 1

Adobo, Ernesto Jr., D. PPA, BFI 2

Adorable, Vicente H. PRC 1

Adriano, Magleo V. HGC 1

Afable, Silvestre Jr. C. JHMC 1

Agawin, Ophelia P. ZREC (11 months) 1

Agbayani, Jamie Eloise M. JHMC 1

Agbon, Marriz B. PADCC 1

Agoncillo, Felicitas R. DFPC (8 mos.) 1

Aguirre, Pacita Rosalinda Y. PICCI 1

Aguja, Mario J. GSIS,GFB 2

Agustin, Triunfo P. PIA 1

Alamilio, Romeo D. PIA 1

Alava, Gerard Joseph B. GYREI 1

Alba, Cecilia S. NHMFC 1

Alberto, Ma. Paz R. DFPC (3 mos.) 1

Alcala, Angel C. PITAHC 1

Alcala, Proceso J. LBP, HSDC, NABCOR, NDA, NFA,

NIA, NTA, PCA, PFDA, ZREC,

PRRI, QUEDANCOR, SRA, PCIC,

PITC, DAP, NPC 17

Alcantara, Claron R. HSDC 1

Alcasid, Herminio Sr. M. PDMC 1

Annex 2

Roster of Members of Governing Boards

A

Name of Agency(ies) No. Of

Membership(s)

of Government-Owned or Controlled Corporations



Middle Initial


Membership(s)

Alcazaren, Paulo G. NPF 1

Alikpala, Ramon B. MWSS 1

Alimurung, Victor N. PPSBI 1

Alingod, Milton CEZA 1

Almario, Joselito PCFC 1

Almendras, Jose Rene D. PSALM, NDC (10 mos) 2

Alonto, Haron P. LLC 1

Alonzo, Zorayda Amelia BMHI, BCDA, BTPI 3

Alora, Milagros S. APU 1

Alvarez, Tomas C. TCPC, PNCC, DISCCBGSI 3

Amata, Gondelina G. NFC, NLDC 2

Angara, Juan Edgardo M. APECO 1

Angara-Castillo, Bellaflor J. APECO, NLPCSI 2

Angeles, Aurelio C. AFAB 1

Angeles, Mercelina M. PRC (7 mos) 1

Angeles, Raul V. NPC (representative) 1

Añonuevo, Estrella D. OWWA (4 mos.) 1

Anota, Apolonio B. NPF 1

Antimano, Wilfredo A. QUEDANCOR (3 months) 1

Antonino, Eliza Bettina R. SSS 1

Antonino, Luwalhati TIEZA 1

Antonio, Alfredo C. BSP, CB-BOL 2

Antonio, Alvaro T. NLPCSI 1

Antonio, Benjamin III E. SBMA 1

Aquino, Cresencio P. CDC 1

Aquino, Pedro Jr. A. PNOC-EC, PNOC 2

Aquino, Rodolfo Q. CIC 1

Aquino, Thomas G. PNCC, DISCCBGSI 2

Aquino, Vicente S. PICCI 1

Araneta, Agusto Jr. PHILSUCOR 1

Araneta, Valentin A. PDIC 1

Arce, Lilia L. BLCI, FCIE, GYREI, KRC, NPIC,

PRC, MGC, IIGSI, ASDI 9

Arellano, Bernadette E. PITAHC 1

Arellano, Francisco APU 1

Arenas, John J. PNOC, PRC 2

Arenas, Mariao D.J. CIC 1

Arienda, Roger V. LLC 1

Asiaten, Danilo C. BSP 1

Asirit, Josefina Patricia M. NPC (representative), PEZA 2

Atienza, Veredigno P PRA 1

Aureus, Mariano Jr. O. PPSBI 1

Austria, Eden V. NABCOR 1

Avanceña, Nina Quezon CFI 1

Avisado, Wendell E. BSP 1

Ayco, Alexander D. PHIC 1

Ayco, Alexander Gerard A. PEATC 1

Azcueta, Honorio S. AFPRSBS 1



Middle Initial


Membership(s)

B. Brillo L. Reynes SBC 1

Babad, Rolito B. AFPRSBS 1

Bacani, Rolando T. TRANSCO 1

Bacani, Senen C. PRRI 1

Badiola, Beda B. CIAC (6 mos) 1

Bagaporo, Domingo I. HSDC 1

Bagtas, Cedric R. PEZA 1

Balagan, Jose D. CEZA 1

Balais, Victorino F. OWWA 1

Baldonado, Arlene M. MSI 1

Baldoz, Rosalinda D. LBP, NHA, SSS, HDMF, OSHC,

ECC, CAAP, PEZA, OWWA, PHIC

10

Balgomera, Kriden F. LBRDC 1

Balisacan, Arsenio M. TIDCORP, HGC, NPC, LRTA,

PSALM, PPA, PITC (8 mos), DAP,

PCED (8 mos.) , PIDS (7 mos), TRC

11

Ballesteros, Michael Dennis M. AFAB 1

Ballesteros, Teotimo Jr. SRA 1

Banal, Jorge Sr. L. LBRDC 1

Banawis, Stella Z. OSHC, ECC 2

Banayo, Angelito T. NFA, PFDA, QUEDANCOR 3

Banez, Arnulfo D. VFP 1

Baniqued, Honesto F. NABCOR 1

Banzon, Eduardo P. PHIC 1

Barbo, Rebecca A. LWUA 1

Barcenas, Democrito C. PSTC 1

Barias, Geary L. CEZA 1

Barleta, Graciela M. PNOC, PDMC, PSTC 3

Baron, Ricardo S. CDC 1

Barrera, Jesus L. SRA 1

Batiller, Josephine A. BLCI, NPIC 2

Batugal, Ponciano A. PCA (5 months) 1

Baua, Ma. Lourdes T PITC, PPI 2

Baun, Lilia G. DLC, AAIIBP 2

Bautista, Bienvenido S. PPI (2 mos.) 1

Bautista, Cythia Rose B. PIDS 1

Bautista, Ebert T. PDMC 1

Bautista, Emmanuel T. AFPRSBS 1

Bautista, Jose Andres D. NORTHRAIL 1

Bautista, Rolando M. PPI (10 mos.) 1

Bayugo, Gerardo V. PCMC, LCP 2

Belleno, Wenefredo A. PDA 1

Belmonte, Juan Kevin G. DBP, DLC 2

B



Middle Initial


Membership(s)

Beltran, Gil S. CB-BOL, SBC 2

Bengzon, Agustin R. DLC 1

Bengzon, Jose Vicente III C. TFC, TCPC, PNCC, DISCCBGSI,

ASDI, ASDI, TFC 7

Benitez, Bienvenido O. SBMA 1

Benitez, Emerson L. LRTA 1

Benitez, Emmanuel L. GFB 1

Berberabe, Darlene Marie B. HDMF 1

Berdan, Julito F. BSP 1

Bernabe, Jovy C PCIC 1

Bernardo, Romeo L. PIDS 1

Besario, Bernardino F. VFP 1

Biazon, Catherine Mary R. JHMC 1

Billena, Wilfred L. NEA 1

Binay, Jejomar Sr. C. NHA, SHFC, NHMFC, HDMF,

HGC, BSP, TRC 7

Bocanegra, Gracita Gilda V. GFB 1

Bolagao, Buenaventura Jr. C. AFPRSBS 1

Bomasang, Rufino B. PNOC-EC 1

Bondoc, Marissa O. JHMC (2.8 mos) 1

Bondoc, Rommel A. CDC 1

Bonto, Silvestre B. NFA (11 months) 1

Bornas, Allan V. LIBI 1

Borra, Teresita M. PAFC 1

Borromeo, Cecilia C. LLC, LCDFI 2

Braid, Florangel R. CCP 1

Bravo, Ricky C. MSI 1

Briguera, Leo Francisco T. PDA 1

Brillantes, Romulo V. BSP 1

Buenaflor, Edward P. PITC 1

Buenaflor, Isagani G. TPB (6 mos) 1

Buenaventura, Cesar A. MIAA 1

Buenaventura, Gil A. DBP, PADC (3 mos), CITC 3

Buenaventura, Vicente R. PIA 1

Bueno, Edita S. NEA 1

Bugayong, Fidel A. PPSBI 1

Bulatao, Victor Gerardo J. LBP 1

Bunye, Ignacio R. BSP 1

Bustos, Felixberto U. SHFC, NHMFC 2

Cabral, Ma. Catalina E. LRTA ( Alternate member) 1

Cabrera, Hernando T. LRTA 1

Cabreza, Jocelyn DG. LBRDC 1

Cacayan, Phillip L. AFPRSBS 1

Caccam, German DS. LIBI 1

Cacdac, Hans Leo J. OWWA 1

C



Middle Initial


Membership(s)

Caguioa, Alfredo Benjamin S. APU 1

Cailao, Antonio M. PRC, PNOC, PMDC 3

Cajigal, Evelyn R. PRA 1

Calingasan, Alex P. BFI 1

Camara, Martin DG. PITAHC 1

Camara, Philip G. SBMA 1

Caña, Ruby B. PADC (10 mos) 1

Canlas, Dante B. PAFC, PNOC 2

Cantor, Luz M. SHFC 1

Cao, Carlos S. OWWA 1

Caparas, Emmanuel L. MWSS 1

Capco, Rosendo T. TCPC, PNCC 2

Capistrano, Jose PDGCC 1

Capongcol, Mylene C. TRANSCO (alternate, 2 mos) 1

Capulong, Allan Ed L. APU 1

Carag, Antonio C. CEZA 1

Carag, Carlo A. DFPC (8 mos.), PPA (alternate

member) 2

Cariaso, Lilian P. PEATC 1

Carillo, Luis D. QUEDANCOR (3 months) 1

Carpio, Pepito M. BSP 1

Carrion, Christopher L. PMDC 1

Casanova, Arnel Paciano D. BCDA, BMHI, BTPI, CDC, JHMC

5

Casino, Manuel C. BFI 1

Castañeda, Catherine Q. PITAHC 1

Castillo, Edgar R. BLCI 1

Castillo, Florante A. HGC 1

Castillo, Gelia T. PRRI 1

Castro Romeo C. LBRDC 1

Castro, Ronaldo Jaime D. GYREI 1

Casuela, Florido P. LCDFI 1

Casurao, Paolo DG. CCP 1

Catacutan, Reynaldo L. CIAC 1

Catolico, Rosa B. PDA 1

Catura, Severo S. PCMC, LCP, NKTI, PHC 4

Cedo, Jose R. CIC 1

Cenas, Grace J. NDA 1

Cervantes, Ramon K. MSI 1

Chan, John Patrick Y. DFPC (3 mos.) 1

Chavez, Antonio B. PDA 1

Cheng, Patrick CIC 1

Chu, Eduardo M. PFDA (8 months) 1

Chua Chiaco, John Philip S. SBMA 1

Chua, Edgar O. KRC 1

Chua, Jan Co T. PTNI 1

Chua, Ronald T. PCFC 1

Claravall, Dante G. NTA 1



Middle Initial


Membership(s)

Clarete, Ramon L. PCED 1

Clement, Carlos III S. PRC 1

Climaco, Julio Jr. D. LLC 1

Co, Abraham T. CIC 1

Co, Herculado Jr. C. PRRI 1

Collado, Antonio Q. VFP 1

Concepcion, Jose S. PRRI 1

Concina, Audie P. PDA 1

Consunji, Isidro A. TIDCORP 1

Conti, Nicasio A. PPA 1

Convera, Winston C PRRI 1

Corbito, Joel P. PDA 1

Cordial, Constantino Jr. H. PDA 1

Cordis, Pedro A. PDA 1

Corpin, David P. LIBI 1

Corpuz, Ronaldo F. LRTA ( Alternate member) 1

Covera, Dale B. BSP 1

Crenecia, Raoul C. MWSS 1

Cristobal, Adrian Jr. S. NDC, PITC 2

Crobalde, Armando Jr. QUEDANCOR (7 months) 1

Cruz, Chito M. NHA 1

Cruz, Danilo P OWWA 1

Cruz, Gabriel L. PICCI 1

Cruz, Lawrence Ll. SPDA 1

Cruz, Maria Carmina PDMC 1

Cruz, Marlo R. CIC 1

Cruz, Merly M. NFC, PIA 2

Cruz, Soledad Emilia J. LRTA ( Alternate member) 1

Cruz, Tito G. PTNI 1

Cueto, Conrado C. PADC (9 mos) 1

Cuevas, Vicente CEZA 1

Cunanan, Dennis L. TRC 1

Custodio, Darlene Magnolia A. SPDA 1

Custodio, Deogracias G.P. AFAB 1

Dakay, Pericles P. MCIAA 1

Dalmacio, Tibay A. ZREC (11 months) 1

Daof, Saeed A. SPDA 1

Dapat, Sabino R. PAFC 1

Daquioag, Harley Rose A. APECO 1

David, Carlos Primo C. LWUA 1

David, Karina C. GSIS 1

David, Ricardo A. PRA 1

Dayco, Ma. Fe S. PHIC 1

Dayrit, Fabian M. PITAHC 1

De Castro, Ma. Christina C. FCIE 1

D



Middle Initial


Membership(s)

De Dios, JV Emmanuel PRC (7 mos) 1

De Guzman, Del R. BSP 1

De Guzman, Primitivo B. PNR 1

De Hitta, Jose Manuel II P. PDA 1

De Jesus, Miguel C. BSP 1

de la Cruz, Eleanor PIA 1

De la Peña, Fortunato T. PEZA 1

De Leon, Tomas Jr. T. LBP, LBRDC, LIBI 3

De Lima, Leila M. CAAP, MCIAA, PSALM 3

De Lima, Lilia B. PEZA 1

De los Reyes, Virgilio R. DAP 1

De Mesa, Eduard V. BCDA 1

De Mesa, Raul B. HDMF 1

De Ocampo, Emmanuel V. VFP 1

De Quiros, Emilio Jr. S. PHIC, SSS, OSHC, ECC 4

Defensor, Benjamin G. (deceased) APU 1

Del Castillo, Amaro PDA 1

Del Pilar, Rafael E. PNOC-EC 1

Del Rosario, Albert F. CAAP, TPB, OWWA 3

Del Rosario, Francisco Jr. F. PADC (8 mos) 1

Del Rosario, Gerald Sam O. SBMA 1

Del Rosario, Reynante C. GYREI 1

Del Rosario, Roberto N. PFDA 1

Dela Cruz, Lauro Catalino G. PADC, AFPRSBS 2

Dela Cruz, Ma. Josefina M. PPSBI 1

Dela Peña, Fortunato T. NDA 1

Dela Torre, Edicio G. PRRI 1

Deleña, Joey A. PDA 1

Dellosa, Jessie D. AFPRSBS, CFI 2

Delos Reyes, Virgilio R. LBP, QUEDANCOR 2

Demetriou, Solon Jr. O. PDA 1

Desierto, Teresita BCDA, BMHI, BTPI 3

Destura, Pedro D. BSP 1

Deyto, Andre Jude D. PEATC 1

Diaz, Domingo I. LBP, LLC 2

Diaz, Jesus F. PCFC, LIBI 2

Diaz, Nanette C. PDGCC 1

Dimarucot, Amando Jr. C. APU 1

Dimzon, Carmelita S. OWWA 1

Dinglasan, Adolfo Rafael C. SBC 1

Diño, Jose S. NTA 1

Dionio, Genever M. NIACON 1

Dizon, Paterno H. TIDCORP 1

Dodd, Concepcion G. NLDC 1

Domingo, Erdolfo B. NIACON 1



Middle Initial


Membership(s)

Domingo, Gregory L. NHA, HDMF,TIDCORP, NPC,

PSALM, PPA, CEZA, PADC,

PEZA, NDC, NFA, PFDA, PITC,

TPB, CITEM, DFPC (8 mos.), CITC,

PCED, TRC 19

Domingo, Thelma G. PRRI 1

Dorotan, Florencia C. PHIC 1

Dorotan, Ma. Luwalhati C. LRTA ( Alternate member) 1

Drapete, Lorenzo C. NHMFC 1

Dumandan, Gregorio S. NIACON 1

Dumandan, Marcos M. PCA 1

Duque, Francisco III T. HDMF, OSHC, ECC, DAP, PHIC 5

Duque, Matthew S. PRC (5 mos) 1

Duterte, Sara Z. SPDA 1

Dy, Faustino III NLPCSI 1

Dy, Henry C. BSP 1

Edralin, Daniel L. SSS 1

Edralin, Maximo, Jr. J. BSP 1

Ejercito, Gerlie J. LLDA 1

Elum, Francis Raphael C. CDC 1

Elvena, Rogelio A. NTA 1

Encabo, Shella Marie M. NRDC 1

Encarnacion, Winona M. SUMSI 1

Endriga, Baltazar N. CIC 1

Enerio, Domingo Ramon III C. TPB (3 mos.) 1

Enerio, Roberto M. NDA 1

Enriquez, Apollo S. PPA 1

Escaño, Jaime R. CEZA 1

Escarez, Apollo M. PADC 1

Esguerra, Emmanuel F. LRTA ( Alternate member) 1

Espenilla, Nestor Jr. A. QUEDANCOR, PDIC 2

Espiritu, Carolyn E. CCP 1

Esquivel, Gerrado A.I. MWSS 1

Estepa, Carlos Honorio Jr. B. TIEZA 1

Estomo, Alejandro H. AFPRSBS 1

Estregan, Jorge Ejercito LLDA 1

Estrella, Corazon R. PAFC 1

Estrera, Ernest John GYREI 1

Eva, Jose III D. FTI 1

Evangelista, Eliseo I. NORTHRAIL 1

Evangelista, Rafael Jr. G. ZCSEZA 1

Fadriquela, Enrique E. SUMSI 1

E

F



Middle Initial


Membership(s)

Fajardo, Edelwin M. NFC 1

Fajardo, Pacifico M. PRRI 1

Fausto, Danilo V. HGC 1

Favila, Peter B. BSP 1

Feliciano, Manuel M. CDC 1

Fernandez, Francisco L. SHFC, HSDC 2

Fernandez, Jose Ma. J. CIAC 1

Fernandez, Leonora A. DBPMC 1

Fernando, Hermogenes R. MWSS 1

Ferraren, Rodolfo LBRDC 1

Ferrer, Francisco I. PEZA 1

Fetalbo, Rosalio G. DBPMC 1

Fieta, Antonio A. NPC (representative) 1

Flavier, Juan M. PHIC 1

Flores, Peter Paul Andrew BTPI 1

Flores, Rafael T. FTI 1

Fondevilla, Marietta M. DDCI, DLC, AAIIBP 3

Formoso, Lorenzo C. DFPC (3 mos.) 1

Francisco, Guillermo P. AFPRSBS 1

Fueconcillo, Ernesto J. CEZA 1

Fuentebella, Arnulfo P. PDA 1

Fuentebella, Evelyn B. PDA 1

Fuentes, Rene R. FTI (2 months) 1

Gacula, Geoffrey DG NTA 1

Gako, Nemesio T. PHC 1

Galimba, Armando P. NFC, PNOC-EC 2

Galvez, Antonio A. NIACON 1

Gamab, Dennis KRC (3.1 mos) 1

Gancayco, Pablo M. AFAB 1

Garchitorena, Jaime P. CIC 1

Garcia, Edward Leandro Jr. Z. CIC, QUEDANCOR 2

Garcia, Francis S. SBMA 1

Garcia, Gerardo C. PNR 1

Garcia, Gwendolyn F. MCIAA 1

Garcia, Raquel D. PICCI 1

Garcia, Roberto V. SBMA 1

Garin, Oscar G. PCA 1

Garon, Ermie L. OWWA 1

Gascon, Noel Emmanuel C. TCPC, DISCCBGSI 2

Gaspar, Federico C. PMDC 1

Gastardo, Joe Ma. BSP 1

Gatmaitan, Carlos Jose P. PRC 1

Gazmin, Leandro H. FTI 1

Gazmin, Voltaire T. PADC, CFI, TRC 3

Generoso, Edgar V. PCFC 1

G



Middle Initial


Membership(s)

Geotina-Garcia, Ma. Aurora BCDA, BMHI, BTPI 3

Geron, Liduvino S. MSI 1

Goco, Gaudencio Renato T. PRC 1

Golez, Ferdinand S. BCDA, BMHI, BTPI 3

Gomez, Elmar D. BMHI 1

Gomez, Elmar M. BCDA, BTPI 2

Gordon, Anne Marie C. SBMA (11 mos) 1

Gothong, Bob D. PNOC, PSTC 2

Gotis, Manuel NLDC 1

Gozo, Danilo A. GSIS 1

Granada, Dioscoro A. PCIC 1

Guadalquiver, Rogelio M. PSTC 1

Guanso, James Jr. M. JHMC (9 mos) 1

Guevarra, Jesus II S. DBPMC, PADC (8 mos) 2

Guevarra, Simeona S. LBRDC 1

Guingona, Benjamin E. ZCSEZA 1

Guinigundo, Diwa C. NHMFC 1

Gutierrez, Ramon S. CAAP (6 mos), MIAA (5.6 mos) 2

Hadjisalam, Abdul Y. AAIIBP 1

Hamlin, Maria Montserrat I. TPB (6 mos.) 1

Herbosa, Teodoro J. LCP,NKTI, PCMC, PHC 4

Herbosa, Teresita J. CIC 1

Hernandez, Elmer C. TCPC, TFC, PNCC, DISCCBGSI 4

Hernando, Pedro Jr. S. FTI 1

Hidalgo, Felipe A. PPC 1

Hilado, Victoria R. CIC 1

Hipolito, Charissa P. PADC (7.4 mos) 1

Hipolito, Jose V. CEZA 1

Honrado, Jose Angel A. CIAC, MIAA 2

Honrado, Jose Danilo A. CDC 1

Hotchkiss, William III K. CAAP (6 mos), MIAA (7.3 mos),

MCIAA 3

Hufano, Gregorio R. VFP 1

Ibe, Antonieta F. LWUA 1

Ignacio, Demetrio Jr. L. TRANSCO (alternate) 1

Ignalaga, Francisco Jr. T. PNOC-EC 1

Jacinto-Henares, Kim S. PEZA 1

Jacob, Jaime D. LRTA 1

Jamias, Kasigod V. TIDCORP 1

Jarina, Ludovico T. FTI (2 months) 1

H

I

J



Middle Initial


Membership(s)

Jasmin, Ma. Victoria V. MIAA, CIAC (6 mos), MCIAA 3

Javier, Eileen R. PHC 1

Jimenez, Ramon Jr. R. CAAP, CFI, TIEZA, MIAA,

MCIAA, TPB, DFPC, PRA 8

Jimenez, Veronica B. PTNI 1

Joaquin, Francisco Manuel III G. PCSO 1

Jorillo, Margie A. CITEM 1

Joya, Rodante S. MIAA (4 mos), MCIAA 2

Juico, Margarita P. PCSO 1

Kalalo, Gisela BMHI 1

Kalaw, Antonio D. DAP 1

Kanapi, Robert S. KRC 1

Karon, Hadja Bainon G. SPDA 1

Kho, Wilma J. DLC 1

Khonghun, Joseph D. NEA 1

Labajo, Jovito C. SHFC 1

Lacap, Epifanio A. NKTI 1

Lacsamana, Jay B.T. PPSBI 1

Lacson, Daniel Jr. L. GSIS 1

Lacson, Edgardo G. HDMF 1

Ladrido, Milagros C. NPF 1

Lagdameo, Enrique B. BSP 1

Lagua, Benel P. SBC 1

Laguda, Reynaldo D. NDA 1

Laguesma, Bienvenido E. SSS 1

Laogan, Daniel Y. DBP 1

Lapid, Mark T. CFI, TIEZA, TPB 3

Lapus, Jesli A. LCDFI 1

Lapus, Jose C. AFPRSBS, PIA 2

Larrazabal, Potenciano Jr. V. PSTC, PNOC 2

Laya, Jaime C. CCP 1

Lecciones, Julius L. PHC 1

Ledesma, Emmanuel Jr. R. PSALM, TRANSCO 2

Ledesma, Joseph Conrad F. PHILSUCOR 1

Lee, Cezar A. PDA 1

Legarda, Elizabeth L. CIC 1

Leones, Susana E. NLDC 1

Librojo, Vero B. ZREC (11 months) 1

Lim, Alberto A. DBP, DDCI, DLC, MIAA, HSDC 5

Lim, Alfonso V. CEZA 1

Lim, Antero S. PDA 1

Lim, Edgar B. ZCSEZA 1

L

K



Middle Initial


Membership(s)

Lim, Francis DLC 1

Lim, Rogelio Q. MCIAA 1

Lim, Theresa S. PITAHC 1

Lim, Victor Jr. Y. GFB 1

Limcaoco, Melissa B. CIC 1

Limcaoco, Rene K. PNR , LRTA (Alternate member) 2

Lizaso, Arsenio J. CCP 1

Lobregat, Celso L. ZCSEZA 1

Lobrigo, Jose Victor E. NEA 1

Lood, Gisela F. PDGCC 1

Lopez, Francisco Vicente F. PHIC 1

Lopez, Gemiliano Jr. C. PNOC-EC 1

Lopez, Josephine G. KRC, MGC, IIGSI 3

Lopez, Manuel H. LLC 1

Lopez, Orestes F. VFP 1

Lopez, Tomas, Jr. B. HDMF 1

Lopez-Dee, Augusto C. HDMF, HSDC 2

Lorenzana, James G. NORTHRAIL 1

Lorenzo, Cecilio B. DBP, DDCI, PMDC, NRDC 4

Lorenzo, Mario C. PPSBI 1

Lotilla, Jose Perpetou M. PADC (10 mos), MIAA, CIAC,

MCIAA 4

Lozada, David Jr. J. LCP, NKTI, PCMC, PHC 4

Lu, Fernando A. BFI 1

Luciano, Victor Jose I. CIAC 1

Luistro, Armin A. DAP, CITC 2

Lumbera, Rizalina V. PDMC 1

Lustre, Edilberto R. AFPRSBS 1

Lutero, Nicolas B. NDA 1

Mabazza, Rhoel Z. BLCI, FCIE, GYREI, KRC, NPIC,

PRC, MGC, IIGSI 8

Macalino, Daisy M. LIBI 1

Macas, Alberto C. VFP 1

Maglaya, Zenaida C. PPA (alternate member), LLDA,

NDA 3

Magno, Leo Tereso A. PIA 1

Magsajo, Francisco Jr. S. TIDCORP 1

Magsino, Clarito L. DDCI 1

Maldia, Wilfredo C. LCDFI 1

Malicdem, Emmanuel B. LWUA 1

Mallari, Felipe Gerardo CIAC 1

Malonzo, Ibarra A. SSS 1

Malvar, Miguel III C. MGC, IIGSI, ASDI 3

Mamao, Ibrahim A. AAIIBP 1

Mamaril, Vivencio R. PITAHC 1

M



Middle Initial


Membership(s)

Mamba, Mabel V. PCSO 1

Mañalac, Wilhelmina C. CITEM 1

Manalastas, Eugene DG. PAGCOR 1

Manalo, Rogelio W. PDIC 1

Manga, Bienvenido O. CIAC 1

Maniebo, Epifania A. PCIC (2 months) 1

Manto, Melinda Gonzales GFB 1

Manuel, Joycelyn S. PAFC 1

Marayag, Emilio Jr. C. SUMSI, AFPRSBS 2

Mariñas, Felix Jr. J. NRDC, PFC, BFI 3

Martin, Leila C. CITEM 1

Martin, Ma. Regina B. SRA, PHILSUCOR 2

Martinez, Geraldine Marie B. GSIS,GFB 2

Martinez, Glenda G. PRC 1

Marty, Conrado G. AFAB 1

Marzan, Renato O. ZCSEZA (7 mos) 1

Mathay, Roberto K. APECO 1

Matibag, Artemio G. CFI 1

Matugas, Sol F. SPDA 1

Matutina, Carina U. PRC 1

Maynink, James Edward BLCI 1

Medalla, Felipe M. BSP 1

Medina, Manuel C. PRA 1

Mediola, Pedo NTA 1

Mejia, Saturnino H. BLCI, FCIE, GYREI, KRC, NPIC,

PRC, MGC, IIGSI, PMDC 9

Melo, Jose Armando R. CDC 1

Mendoza, Democrito T. VFP 1

Mendoza, Marianita O. SSS 1

Mendoza, Pedrito R. NABCOR (9 months) 1

Mendoza, Rex Ma. AFAB 1

Mendoza, Teodoro C. PRRI (6 months) 1

Mercado, Teresita M. PDGCC 1

Migraso, Julius M. NDA 1

Miguel, Felix Sr. M. VFP 1

Mijares, Nestor IV R. PPA (alternate member) 1

Millares, Jaime L. HDMF 1

Miralles, Dennis R. NRDC 1

Miranda, Nemisio R. BSP 1

Miranda, Ramon P. VFP 1

Momo, Romeo S. PPA (alternate member) 1

Mondragon, Lito L. PMDC 1

Monera, Francis O. MCIAA 1

Monje, Filipina B. LIBI 1

Montejo, Marion G. TRC 1

Montemayor, Raul Q. MSI 1

Montes, Felix Jose S. NFC 1

Montoya, Jaime C. PITAHC 1



Middle Initial


Membership(s)

Muldong, Roberto T. PRA, PEATC 2

Munsayac, Margarita F. TPB (6 mos.) 1

Musngi, Michael Frederick L. PNR 1

Nadal, Virgilio P. PTNI 1

Naguiat, Carmelo T. PAFC 1

Naguiat, Cristino L. PAGCOR 1

Naguit, Rodolfo C. TCPC, TFC, PNCC, DISCCBGSI 4

Naliponguit, Ella Cecilia G. PITAHC 1

Nangel, Antonio S. NIA(11 months), NIACONSULT 2

Nantes, Betty B. PCSO 1

Ng, Melanie C. MCIAA 1

Noblefranca, Robert C. SUMSI 1

Nones, Romeo PADC (3.6 mos) 1

Nuguid, Enriquito M. PAGCOR 1

Nunag, Lucas M. TIEZA 1

Nuñez, Jose Jr. A. DBP, DLC, AAIIBP, NDC, NFA,

PITC 6

Oban, Eduardo S. L. PPA (alternate chairman) 1

Obien, Evelyn Julieta A. PRC 1

Oca, Ramon Allan V. PMDC 1

Ochoa, Paquito Jr. N. PCED, NFA, NHA 3

Olalia, Richard D. CEZA 1

Olayvar, Emerita LBRDC 1

Oliveros, Ma. Ana R. SHFC 1

Ona, Enrique T. OSHC, ECC, PCMC, LCP, DAP,

PITAHC, PHIC, NKTI, PHC 9

Ona, Sofronio Jr. C. BSP 1

Ong, Anastacio H. MSI 1

Oracion, Ceasar G. JHMC 1

Orobia, Eustacio Jr. B. PCFC 1

Ortega, Mary Jane C. NPF 1

Ortiz, Edwin Vincent V. TPB (6 mos.) 1

Oscillada, Roy C. MSI 1

Osias, Helen R. MIAA 1

Otarra, Joel L. PPC 1

Otaza, Vivian D. TIEZA 1

Pacanan, Jaime A. PEZA 1

Pacio, Leandro Jr. T. VFP 1

Pacturan, Jerry R. NDA 1

P

N

O



Middle Initial


Membership(s)

Pacudan, Isaias A. VFP 1

Paderanga, Cayetano Jr. W. PITC (4 mos), DAP, PIDS (5 mos),

NHA,TIDCORP, PSALM, NIA (10

months) 7

Padilla, Armando P. PEATC 1

Padolina, William G. PIDS 1

Padua, Raymundo H. VFP 1

Pagdanganan, Roberto M. BSP 1

Paje, Ramon Jesus P. NPC, TRANSCO, PPA, NDC,

LLDA, NRDC PFDA, PFC, PMDC,

TIEZA, PITC, DAP, TRC 13

Palad, Emerson U. NABCOR (10 months), NTA, ZREC

(11 months) 3

Pama, Alexander P. AFPRSBS 1

Panadero, Austere A. NPC (representative), PEZA,

TIEZA, PHIC 4

Panagsagan, Grace Q. NPF 1

Panaligan, Teodoro V. NDA 1

Pangilinan, Salvador D. BSP 1

Panigbatan, Bendicto P. PEATC 1

Pascual, Alfredo E. PCED 1

Patalinghug, Epictetus E. LRTA 1

Paul, Jeremias Jr. N. PDIC 1

Payumo, Felicito C. BMHI, BTPI, JHMC, BCDA 4

Pedrosa, Carlos A. NFA, PITC 2

Peñaflor, Gerard Anthony GYREI 1

Perez, Agapito M. VFP 1

Petilla, Carlos Jericho L. NDC (2 mos), PNOC, NEA (2 mos),

NPC, PSALM, TRANSCO (2mos)

6

Petilla, Leopoldo E. PNOC-EC 1

Petilla, Remedios L. BSP 1

Pico, Gilda E. LBP, LLC, MSI, NLDC, PCFC,

LBRDC, LCDFI, SBC, NFA, PCIC

10

Piczon, Manuel C. LBRDC 1

Pido, Antonio C. PNCC, DISCCBGSI 2

Pilando, Teofilo Jr. S. LLDA 1

Pilapil, Delfin R. PDA 1

Pillas, Elionor I. LLDA 1

Pineda, Wilfredo S. SBMA 1

Po, Joaquin Ernesto L. PADC 1

Pobre, Cesar P. VFP, PIA 2

Polinga, Carina A. PDA 1

Ponce, Jose Mari B. NLPCSI 1

Ponce-Enrile, Katrina C. CEZA 1

Ponferrada, Rodolfo Ma. A. SHFC 1

Punsalan, Silvestre Manuel Jr. C. LLC 1



Middle Initial


Membership(s)

Punzalan, Elmer G. NKTI 1

Punzalan, Ernesto M. PRA 1

Purisima, Cesar V. BSP, PDIC, LBP, NHA, NHMFC,

HDMF, TIDCORP, HGC, NPC,

PSALM, TRANSCO, LRTA, PPA,

PNR, NDC, PADC, MIAA, CAAP,

MCIAA, NFA, OWWA, DFPC (8

mos), DAP, PCED 24

Quebral, Mark Andrew C. BLCI 1

Quesada, Dr. Ramon M. SBC 1

Quintos, Joaquin IV E. CIC 1

Quirino, Ma. Theresa L. DBPMC 1

Quitoriano, Librado F. PNR 1

Rabuco, Benjamin III F. PRC, GYREI, MGC, IIGSI 4

Racho, Percianita G. VFP 1

Ragrario, Junio M. PNR 1

Ramirez, Mario L. GSIS 1

Ramos, Livia Alicia R. NHMFC 1

Rayos, Nestor Florante DC PADC (9 mos) 1

Rebuelta-Teh, Analiza TRANSCO (alternate), NPC 1

Rebueno, Ma. Lourdes F. BLCI, FCIE, GYREI, NDC, NPIC,

KRC, PRC, MGC, IIGSI, PMDC,

ASDI, PITC, PPI 13

Rebustes, Felixberto I. OWWA 1

Regalado, Andrew O. PHILSUCOR 1

Regondola, Philip Ronald P. BLCI (4.2 mos) 1

Reinoso Jr., Ruben S. PNR 1

Relampagos, Mario L. CB-BOL, NHMFC, NPC, LRTA

(Alternate member), LCP,NKTI,

PCMC, PHC 8

Relleta, William Sr. D. PDA 1

Respicio, Melosino L. VFP 1

Reyes, Edward John T. LLC 1

Reyes, Joven D. SBMA 1

Reyes, Raoul J. AFPRSBS 1

Reyes, Roberto PCFC 1

Reyes, Roman Felipe S. GSIS, TCPC, PNCC 3

Reyes, Romeo D. PPSBI 1

Reyno, Alberto B. DBPMC 1

Rili, Lope Sr. D. VFP 1

Robinson, Airene M. PIA 1

Robles, Dionisio L. PADC (3 mos) 1

R

Q



Middle Initial


Membership(s)

Robles, Reynaldo B. PRA 1

Robredo, Jesse M. CAAP (8 mos) 1

Rocamora, Jose Eliseo M. PCFC 1

Rodas, Marilou F. GYREI 1

Rola, Francisco C. LLC 1

Romulo, Beth Day CFI 1

Rosario, Lorna Grace B. NIACON 1

Roseller, Valera Z. PRA 1

Roxas, Conrado B. MSI 1

Roxas, Manuel II A. NPC, CAAP (9 mos), PADC (8

mos), NRDC, TRC 5

Roxas, Mar MIAA 1

Rubia, Armando P. AFAB 1

Ruga, Jimson H. PCFC 1

Ruiz, Edwin T. LWUA 1

Sabio, Rodolfo C. PSTC 1

Salacup, Salvador S. FTI 1

Salazar, Jesus Enrico Moises B. NORTHRAIL 1

Salazar, Jose Vicente B. MIAA, MCIAA 2

Salazar, Maria Isabelle Climaco ZCSEZA 1

Salazar, Marlou L. AFPRSBS 1

Salcedo, Bituin V. PPSBI 1

Salvador, Serafin U. BCDA 1

Salvatierra, Renato B. PHILSUCOR 1

San Miguel, Francisco T. VFP 1

Sanchez Manuel R. HGC 1

Sanchez, Christine L. PDGCC 1

Sandejas, Francisco S.A. CIC 1

Sandoval, Pablito S. SRA 1

Sangil, Maximo L. BCDA, BMHI, BTPI 3

Santiago, Carmelo L. APECO (10 mos) 1

Santiago, Eliseo B. CDC 1

Santiago, Lourdes Z. PADC (4.5 mos) 1

Santiaguel, Emmanuel M. QUEDANCOR 1

Santos, Augusto B. LLDA (4 mos) 1

Santos, Eduardo C. LWUA 1

Santos, Erwin Krisha N. PFC 1

Santos, Juan Bernal SSS 1

Santos, Rafael Antonio M. PADC (2mos) 1

Sarenas, Andrea Ma. Patricia M. PCFC 1

Sarino, Cesar N. PPSBI, PPC 2

Sarino, Cristina M. PICCI 1

Sarmiento, Jose V. PAGCOR 1

Sarmiento, Andres C. LLC, LCDFI, SBC, FTI 4

Sarmiento, Malcolm Jr. I. APECO 1

S



Middle Initial


Membership(s)

Sarrosa, Joseph Edgar M. PHILSUCOR 1

Sarucam, Rafael G. PCA 1

Sebastian, Reynante B. AFAB 1

Sering, Nicanor L. PSTC 1

Serrano, Segfredo R. PEZA 1

Sesdoyro, Ramon D. SBMA 1

Sevilla, Cesar C. NDA 1

Sevilla, John Phillip P. NPC (representative), TRANSCO

(Alternate) 2

Siapno, Alfonso S.P. SBMA 1

Sibayan, Joselito H. PPSBI 1

Silos, Rene Enrique M. PRA 1

Simeon, Jose R. CIAC (4 mos) 1

Singson, Karen G. PNCC, FTI, NRDC, PMDC 4

Singson, Rogelio L. NHA, LRTA, PPA, TIEZA,

HSDC,NIA (9 months), PFDA, TRC

8

Sison, Luis F. TCPC, TFC, PNCC, DISCCBGSI,

ASDI 5

Sison, Mory Q. PPC 1

Sison, Renato M. NABCOR 1

Soliman, Corazon I. PHIC 1

Soliven, Ma. Luisa R. PRRI 1

Songco, Margarita R. LLDA (8 mos) 1

Soriano, Alfonso C. LBRDC 1

Soriano, Ma. Cecilia G. MWSS 1

Soriano, Rene Y. OWWA 1

Sosa, Norberto J. SBMA 1

Sta. Ana, Geronimo D. SBC 1

Sta. Ana, Jane MN. PHIC 1

Sta. Ana, Jose C. PNOC-EC 1

Sta. Ana, Juan C. PPA 1

Sta. Rita, Ma. Gladys S. PDMC, PNOC, PSTC 3

Suan, Jose J. ZCSEZA 1

Suarez, Alex D. PCIC (2 months) 1

Subido, Benjamin T. FTI 1

Suello, Consuelo M. NFC 1

Suguitan, Rober C. NIACON 1

Sunga, Juliana G. PDGCC 1

Suratos, Armando L. BSP 1

Tabije, Ismael D. NIA (11 months) 1

Tacandong, Protacio T. PDIC 1

Tagalog, Adelaida L. PDGCC 1

Taguines, Mario L. PRC 1

Tamayo, Sancho A. VFP 1

T



Middle Initial


Membership(s)

Tampico, Froilan A. NIA (9 months), NPC 2

Tan, Alonzo L. PFDA 1

Tan, Celia FTI 1

Tan, Maria Edita Z. NHMFC, MIAA, MCIAA 3

Tan, Roberto B. PDGCC, PNR 2

Tanjuatco, Jose S. PAGCOR 1

Tantoco, Zenaida R. CCP 1

Taradji, Ajijul Adam SBC 1

Taruc, Rafael H. PADC (2 mos) 1

Taruc, Romeo LBRDC 1

Tengco, Antonio H. JHMC 1

Tetangco, Amando Jr. M. BSP, PDIC, PICCI, NHMFC,

TIDCORP, NDC, NFA, PRA,

PCED, CITC 10

Teves, Margarito B. LCDFI 1

Tibig, Paulo M. AFAB 1

Timbol, Ma. Aurora F. PPI 1

Tiu, Joan Denise Y. DFPC (3 mos.) 1

Tobias, Darwin A. CEZA 1

Tolentino, Ma. Aleta L. PCSO 1

Tolentino, Conrado K. NORTHRAIL 1

Tolentino, Francis M. TRC 1

Tolentino, Francis N. LRTA, LLDA 2

Tomawis, Yahya Jerry M. SPDA 1

Toreja, Cornelio V. PHILSUCOR 1

Train, Cedric G. BSP 1

Trasmonte, Lourdes M. OSHC 1

Trenas, Francis P. PHILSUCOR 1

Tuazon Ronaldo S. PPC 1

Tubigan, Tito T. APECO 1

Tugade, Arthur P. CDC 1

Tuico, Oliver R. ZREC (11 months) 1

Tumaru, Ismael V. CEZA 1

Tungpalan, Rolando G. NPC (representative), PEZA 2

Tupaz, Niel Sr. D. PNOC-EC 1

Tupaz, Vladimir R. OSHC, ECC 2

Turalba, Cristina V. CCP 1

Ty, Allan CEZA 1

Umali, Alfonso, Jr. V. QUEDANCOR 1

Umali, Allan Q. ZREC (11 months) 1

Umbac, Arturo V. BSP 1

Unson, Miguel III O. MSI 1

Uranza, Luis Ma. G. PNOC-EC 1

Uy, Evelyn T. SPDA 1

U



Middle Initial


Membership(s)

Varela, Jesus B. HDMF 1

Varela, Miguel B. OSHC, ECC 2

Varona, Francisco Victor S. GFB 1

Varona, Ma. Lourdes PPC 1

Velarde, Ruel T. PDA 1

Velasco, Luis Rey I. PRRI 1

Velasco, Yolanda D. LIBI 1

Velez, Patrick M. PADC 1

Vera, Jose Luis L. DBP, AAIIBP 2

Vergara, Robert G. GSIS, OSHC, ECC, PADC 4

Vertido, Damaso C. SHFC 1

Villa, Rene C. LWUA 1

Villafuerte, Reynald R. LIBI 1

Villanueva, David PCIC 1

Villanueva, Francisco L. CDC 1

Villanueva, Joel J. CITC 1

Villar, Susan S. PICCI 1

Villarete, Nigel Paul C. MCIAA 1

Villariba, Cesar C. PCA 1

Villarica, Margarita F. TPB (6 mos) 1

Villarin, Jose Ramon T. MWSS 1

Villaverde, Mario C. NKTI 1

Villo, Ricardo Jr. A. NFC 1

Vinluan, Nora Q. TCPC, PNCC 2

Viray, Roberto F. DLC 1

Visperas, Eduardo C. APU 1

Vistan, Deogracias N. LCDFI 1

Viterbo, Blas James G. DBP 1

Wacnang, Laurence B. JHMC (9 mos) 1

Wilson, Isabel C. CCP 1

Wong, Paz B. PITAHC 1

Yacapin, Mercedes G. CITEM 1

Yam, Anthony Lawrence D. KRC 1

Yambao, Benjamin J. MWSS 1

Yañgot, Leandro Jr. B. JHMC (9 mos) 1

Yap, Antonio S. CCP 1

Yap, Josef T. PIDS 1

Ynares, Casimiro III A. LLDA 1

Yoingco, Manuel T. LWUA 1

Yu, Georgina P. ZCSEZA 1

V

W

Y



Middle Initial


Membership(s)

Yu, Gregorio T. GSIS 1

Yuvallos, Jay Y. TIDCORP 1

Yuvienco, Minerva S. NDA 1

Yuzon, Virgilio A. NDC 1

Zayco, Freddie W. PHILSUCOR 1

Zialciata, Benigno III L. TIDCORP 1

Z


Assigned

Audit

Team

Reason for exclusion

1 APO Production Unit, Inc. ATAP Annual Audit Report under review

2 Cebu Ports Authority ATAP No Detailed FS yet

3 Crowntex Realty Corporation ATAP Non-operational

4 First Centennial Clark Corporation ATAP Non-operational

5 Freeport Services Corporation ATAP Non-operational

6 Girl Scout of the Philippines RA Management refused to be audited

7 Intercontinental Broadcasting

CorporationRA


8Laguna Lake Development Authority

RA Annual Audit Report under review

9 Luzon Integrated Services, Inc. ATAP No longer audited since CY 2011

10 Luzon Stevedoring Corporation ATAP No longer audited since CY 2011

11 National Precision Cutting Tools,

Inc.

ATAP No longer audited since CY 2011

12 National Stevedoring and Lighterage

Corporation


13 National Trucking and Forwarding

Corporation


14 North Luzon Railways Corporation ATAP Annual Audit Report under review

15Partido Development Administration

ATAP Annual Audit Report unsubmitted

16 Philippine Centennial Expo '98

Corporation

ATAP Non-operational

17 PNCC Skyway Corporation ATAP Non-operational

18 Tacoma Bay Shipping Corporation ATAP No longer audited since CY 2011

19 Tierra Factors Corporation ATAP Annual Audit Report under review

20 UP-NDC Basilan Plantations, Inc. ATAP Non-operational

Legend:

RA - with Resident Auditor

ATAP - Audit Team Approach

List of GOCCs not included in the report

Name of Agencies

Annex 3

Page 1 of 1

Page 1 of 7

Annex 4

Summary Functions of GOCCs


This Cluster has audit jurisdiction over GOCCs engaged in banking and credit, and other

related operations. In general, the functions of these GOCCs include the following:

Formulate and implement policies in the areas of money, banking and credit with the

primary objective of maintaining stable prices conducive to balanced and sustainable

economic growth in the Philippines; maintain the country’s international reserves,

perform credit operations, engage in open market operations, exercise supervision over

banking institutions, operate the interbank real-time gross settlement system, act as a

banker of the government, and has the sole power and authority to issue currency;

Print bank notes and produce circulation coins;

Retain and administer, dispose of and liquidate the assets and liabilities of the then Central

Bank of the Philippines not transferred to or assumed by the Bangko Sentral ng Pilipinas;

Receive and consolidate basic credit data, to act as central registry or central repository of

credit information or credit history and financial condition of borrowers;

Management, operation and administration of the PICC for use in the holding of

international conferences, conventions, meetings, seminars and the like, including but not

limited to, special events, professional exhibitions and trade shows, and other special

services as may be required by the users thereof;

Provide banking services principally to cater to the medium and long-term financial needs

of agricultural and industrial enterprises particularly in the countryside with emphasis on

small and medium-scale industries;

Provide financial assistance to participating financial institutions for on-lending to

investment enterprises and also direct to borrowers as may be required by its catalytic role

in the economy;

Promote and accelerate the socio-economic development of the Autonomous Region by

performing banking, financing and investment operations and establish and participate in

agricultural, commercial and industrial ventures based on the Islamic concept of banking;

Develop and implement non-banking systems for private and government entities;

Purchase or dispose of real and personal property of every kind and description, including

shares of stocks, bonds, debentures, notes, evidences of indebtedness, and other securities

or obligations of any corporation or association and manage the general business of any

company;

Engage in the business of leasing in all its aspect, and to arrange or underwrite or

administer leases of all types of real or personal properties and all kinds of equipment,

Annex 4 Page 2 of 7

machines, vehicles, and facilities, especially maritime vessels for the carriage of

passengers, freight, cargo, vehicles, goods and merchandise of every kind and description;

Engage in project based lending programs providing loanable funds to accredited

participating financial institutions (PFI) for re-lending in Philippine Currency to eligible

micro, small and medium investment enterprises (MSMEs) and viable privately- owned

productive enterprise except those engaged in basic agricultural production without post

harvest production activities and at least 60 per cent owned by Filipino;

Engage in the business of banking, financing, leasing, real estate, insurance brokering and

other related services to personal, commercial, corporate and institutional clients;

Assist in countryside development and extend assistance to farmers and fisherfolks,

agrarian Reform beneficiaries (ARBs) Countryside financial Institutions, small and

medium enterprise and Overseas Filipino Workers (OFWs);

Engage in the business of general insurance brokerage management and consultancy;

Engage in the business of buying and selling of foreign currencies; and buying, selling,

importing, exporting and/or dealing in any manner, at wholesale or retail, goods and

merchandise;

Engage in direct lease or financial lease of all kinds of equipment and all types of personal

and real properties;

Engage in the business of financing merchandise particularly but not limited to appliance,

automobile, and truck retail sales, agricultural machinery and equipment and to engage in

the business of commercial, agricultural and industrial financing, factoring and/or leasing;

Extend credit facilities to government and private individuals and corporate entities, and

make loans with or without such security;

Engage in the building, reconstructing, repair, remodeling and renovation, alteration and

improvement of private houses and dwellings, commercial buildings and government

owned and controlled corporations and establishments in support of its role under the

Comprehensive Agrarian Reform Program;

Engage in, operate and carry on, the business of providing and rendering general

manpower services, such as but not limited to management and technical services,

janitorial services, maintenance services, clerical messengerial, security services and other

allied services;

Engage in and carry on the business of purchase, and acquire, operate, maintain, lease,

sell, and dispose of and deal in agricultural equipment and farm machineries and all other

articles pertaining to agriculture;

Make available its farm equipment and machineries to the farmers, owner-cultivators,

agricultural lessees, tillers and/or other beneficiaries of land reform for farm

mechanization and development so as to obtain full utilization of lands and enhancement

of agricultural products;

Engage in the business of purchase and sale, barter and exchange of rice and other cereals,

and other commodities of native production in the Philippines;

Annex 4 Page 3 of 7

Undertake the promotion, generation and development of livelihood and community-based

enterprises primarily in agri-business, including those in the Agrarian Reform

Communities that will cater to the low-income bracket;

Engage in the business of wholesale financing serving the financial needs for the

livelihood and income-generating activities of the Filipino poor primarily those falling

below the poverty level;

Promote and safeguard the interests of the depositing public by way of providing

permanent and continuing insurance coverage on all insured deposits;

Strengthen the mandatory deposit insurance coverage system to generate, preserve,

maintain, faith and confidence in the county’s banking system, and protect it from illegal

schemes and machinations;

Act as receiver/liquidator of closed banks and co-regulator of banks, in which it

collaborates with the BSP in promoting stability in the banking system and the economy as

a whole;

Mobilize savings and promote entrepreneurship to widen economic opportunities and to

provide the Filipino people with a full range of professional banking and financial

resources accessible in all areas of the country, and promote the values of thrift, industry

and prudence especially in the youth; and

Engage to manufacture tomato paste and consequently to process other agri-based

products and aims to produce alternate livelihood to Ilocano farmers.


This Cluster has audit jurisdiction over GOCCs in financing, insurance and other related

functions. In general, the functions of these GOCCs include the following:

Ensure the continuous payment of retirement and separation benefits due to the members

of the Armed Forces of the Philippines;

Provide meaningful and appropriate compensation to workers and their dependents in the

event of work-connected contingencies such as sickness, injury, disability or death;

Provide and administer social security benefits for all employees of the Philippine

government, administer the General Insurance Fund and provide insurance coverage to

assets and properties that have government insurable interests;

Manage, improve, develop, dispose, exchange, lease and hold for investment or otherwise,

the acquired assets of the GSIS which consists of properties of all kinds including

buildings, houses, apartments and other structures;

Engage in the business of banking, financing, real estate, and other related services to

personal, commercial, corporate and institutional clients;

Answer the need for a national savings program and an affordable shelter financing for the

Filipino workers;

Operate a credit guaranty program in support of government’s effort to promote home

ownership; provide risk guarantees and fiscal incentives for housing credits extended by

Annex 4 Page 4 of 7

financing institutions, thereby stimulating the flow of funds from both the government and

private sectors for housing and urban development;

Operate a viable secondary home mortgage market, utilizing long-term funds to purchase

mortgages originated by both public and private institutions that are within government

approved guidelines, and develop a system that will attract private institutional funds into

long-term housing mortgages;

Develop housing projects which provide and maintain adequate housing for the greatest

possible number of people by developing and implementing a comprehensive and

integrated housing and resettlement program;

Undertake continuing studies and researches on occupational safety and health; plan

develop and implement training programs; serve as duly recognized agency for testing and

setting standard and specifications of personal protective equipment and other safety

devices;

Managing and holding titles of condominiums;

Provide the necessary financing for small and medium-scale industries throughout the

country;

Adopt development initiatives for globally competitive small and medium enterprises in

terms of finance, technology, production, management and business linkages;

Undertake social housing programs that will cater to the formal and informal sectors in the

low-income bracket and shall take charge of developing and administering social housing

program schemes;

Establish, develop, promote and perfect a sound and viable tax-exempt social security

system suitable to the needs of the people throughout the Philippines which shall promote

social justice and provide meaningful protection to members and their families against the

hazards of disability, sickness, maternity, old age, death and other contingencies resulting

in loss of income or financial burden;

Operate deep-well water utilities or otherwise, acquire, sell, lease, convey, mortgage or

encumber, and otherwise deal with any property or interest therein, or easement, right or

privilege over or in respect of any property, real or personal and to maintain and manage

the utilities acquired; and

Contribute to the country’s economic development as the Philippine Export-Import Credit

Agency providing guarantees, credits, insurance and technical assistance services;


This Cluster consists of GOCCs engaged in energy and power development and other allied

operations with the following functions:

Set up transmission line grids and construction of associated power generating facilities in

Luzon and Mindanao, and major island grids of the country, including the Visayas;

Develop Nuclear power;

Provide adequate and stable supply of oil;

Annex 4 Page 5 of 7

Explore, develop and utilize indigenous energy sources;

Promote, develop and finance local water utilities and electric cooperatives;

Integrate and coordinate the planning, development, construction and operation of

railroads and light rail transport system in the country;

Operate and maintain waterworks systems to ensure continuous supply and distribution of

portable water;

Develop, operate and maintain sewerage and irrigation systems all over the country;

Facilitate the fast and safe delivery of postal services; and

Integrate and coordinate the planning, development, construction and operation of ports,

airports and other facilities appurtenant thereto.


This Cluster consists of GOCCs in industrial, area development and allied activities that fall

under same the classification, performing the following functions:

Identify and develop sites in the country as prospective industrial areas and equip these

areas with the necessary infrastructures to encourage the inflow of domestic and foreign

investments;

Develop certain areas declared as special economic zones into self-sustaining industrial,

commercial, financial, investment and academe centers to generate employment

opportunities in and around the zones and to attract and promote productive foreign

investments;

Convert into alternative productive uses of the Clark and Subic military reservations and

extensions, raise funds by the sale of portions of Metro Manila military camps, apply said

funds for the development and conversion to productive civilian use of the lands covered

under the 1947 Military Bases Agreement and promote the economic and social

development of Central Luzon in particular and the country in general;

Convert underutilized land into valuable and income-generating real estate properties;

Support and develop tourism as an instrument in accelerating the development of the

country by preserving and projecting the country’s culture, history, tradition and natural

beauty, both internationally and domestically;

Integrate and coordinate the planning, development, construction, and operation of

airports, and other facilities appurtenant thereto and provide safe and efficient air transport

and regulatory services in the Philippines; and

Invest in pioneering and development-oriented projects where private investors are

unwilling or unable to venture into but are necessary for the country’s development.


GOCCs under this Cluster are responsible for the following functions:

Annex 4 Page 6 of 7

Develop, maintain, operate, improve and rehabilitate irrigation systems including

communal and pump irrigation projects. Encourage access of farmers to agricultural

technologies by providing consultancy, management and special services for the

investigation, survey, planning, design, research and construction of irrigation projects;

Promote the integrated growth and development of the grains industry, to provide food

security in the staple cereals in times and places of calamity or emergency, both natural or

man-made and to promote the stabilization of supply and prices of staple cereals both at

the farm-gate and consumer levels;

Maintain a stable supply of staple food and develop the food industry by providing

marketing, infrastructure support systems for the small and medium scale food enterprises;

Institute an orderly system in sugar cane production for the stable, sufficient and balanced

production of sugar for export and local consumption, and strategic reserves;

Promote the development of the fishing industry and improve the efficiency in marketing

and distribution of fish and fishery/aquatic products through the establishment and

operation of fish port complexes throughout the country;

Promote the rapid integrated development and growth of the coconut and other palm oil

industry in all its aspects and to ensure that the coconut farmers become direct participants

in, and beneficiaries of such development and growth;

Provide insurance protection to the country’s agricultural producers, particularly the

subsistence farmers, against losses of their crops and non-crop agricultural assets arising

form natural calamities (such as typhoons, floods, droughts, earthquakes and volcanic

eruptions), plant pest and diseases, and/or perils;

Accelerate the flow of investments and credit resources into the countryside so as to

trigger the vigorous growth and development of rural productivity, employment and

enterprises to generate more livelihood and income opportunities through the various

quedan credit and guarantee programs;

Ensure the accelerated development of the Philippine dairy industry;

Improve the economic and living conditions and raise the quality of life of the tobacco

farmers including those who depend upon the industry for their livelihood. Promote the

balanced and integrated growth and development of the industry and help make agriculture

a solid base for massive industrialization. Administers and regulates the tobacco industry

of the Philippines;

Promote and undertake the development and use of technologies and systems that

complement the utilization of natural resources;

Foster growth and renewal of communities, both urban and rural, in an integrative manner

that promotes optimum land use, adequate shelter, environment protection, utilization of

appropriate technologies and rational inter-dependence among self-reliant communities;

Impart technologies/systems to optimize the utilization of natural resources and

development of the tobacco, coconut and other palm oil, fishery, garments, diving and

tourism industries in the country;

Provide prime location, quality facilities and services for businesses. To be an agro-

industrial-commercial estate of choice within the heart of Metro Manila supported by an

Annex 4 Page 7 of 7

organization that is customer focused and committed to deliver a high standard of service

to its partners;

Undertake the mining and mineral processing operations in the 8,100 hectare Diwalwal

Mineral Reservation Area located in the Municipality of Monkayo, Compostela Valley

Province; and

Engaged in commercial crop production, specifically rubber.


GOCCs under this Cluster are responsible for the following functions:

Development of selective human resource programs, data collection and information

services;

Centralization and integration of the right and authority to operate and conduct games of

chance in corporate entities to be controlled, administered and supervised by the

government;

Construction, establishment and maintenance of national theater and music hall, art gallery

and such other buildings and facilities necessary for the holding of conferences, seminars,

concerts and the likes;

Provision of research, training and health care benefits, medical assistance, services and

charities of national character;

Establishment of micro, small and medium scale enterprises, trade fairs, special exhibits,

trade missions and other promotional activities here and abroad;

Promotion and development of scientific, interdisciplinary and policy-oriented research,

education, training, consultancy and publication in the broad field of economics, public

administration, and political and social sciences;

Operate, maintain and provide various services that aim to increase work opportunities and

improve the productivity of low-income families;

Constitutionally obliged to establish a government organization to protect the welfare of

its OFWs

Maintenance and operation of integrated medical institutions that specialize in the

diagnosis, treatment, care, rehabilitation and/or relief of patients with kidney, lung, cardio-

vascular and children’s diseases;

Engagement in projects and activities that may be profit-oriented, for the purpose of

providing permanent and continuing sources of funds for health programs, medical

assistance, socio-civic and national development efforts; and

Helping the government planners and policy-makers in its planning and policy formulation

activities.

Rank Name of GOCC Amount

(in thousand pesos)

1 Bangko Sentral ng Pilipinas 3,975,927,544

2 Power Sector Assets and Liabilities Management Corp. 997,387,555

3 Government Service Insurance System 727,575,740

4 Land Bank of the Philippines 689,128,695

5 National Transmission Corporation 383,447,407

6 Social Security System 362,805,055

7 Development Bank of the Philippines 361,074,971

8 Home Development Mutual Fund 314,535,891

9 Philippine Deposit Insurance Corporation 167,307,523

10 Bases Conversion and Development Authority 130,473,203

11 Philippine Health Insurance Corporation 126,373,463

12 National Irrigation Administration-General Fund 106,272,116

13 Philippine Ports Authority 104,503,387

14 Light Rail Transit Authority 70,788,389

15 National Irrigation Administration-Corporate Fund 58,901,918

16 National Housing Authority 55,063,981

17 Metropolitan Waterworks and Sewerage System 54,780,189

18 Philippine National Railways 53,102,554

19 Philippine National Oil Company 40,706,739

20 National Power Corporation 39,279,013

Annex 5

CY 2012

Ranking by Total Assets

Page 1 of 1


(in thousand pesos)

1 Bangko Sentral ng Pilipinas 3,911,411,794



4 Central Bank Board of Liquidators 416,565,295



7 National Food Authority 162,793,041




11 National Irrigation Administration-Corporate Fund 45,423,443


13 National Home Mortgage Finance Corporation 37,186,482


15 Home Guaranty Corporation 25,406,166

16 Philippine Amusement and Gaming Corporation 20,033,098


18 Philippine Reclamation Authority 18,733,990

19 National Electrification Administration 18,692,145


Annex 6

Ranking by Total Liabilities

CY 2012

Page 1 of 1

Source

1 Power Sector Assets & Liabilities Management Corp. Bonds: HSBC 6,320,000

Bureau of Treasury 30,000,000

Syndicated Loan: Land Bank of the Philippines 73,875,000

Due to Other Government Agency - NG Relending

Facility 35,000,000

Due to Other Government Agency - QAPA - DOE

Facility 118,382 145,313,382

2 National Food Authority Banco de Oro Unibank, Inc. 28,540,000

Rizal Commercial Banking Corporation 15,000,000

Development Bank of The Philippine 10,000,000

China Banking Corporation 8,200,000


Philippine National Bank 3,000,000

Metropolitan Bank & Trust Company 1,830,000

Mizuho Corporate Bank Ltd. 430,000



Corn Development Fund 16,500

(in thousand pesos)

Annex 7

Name of GOCC Amount

Breakdown of Domestic Loans

December 31, 2012


Source

(in thousand pesos)

Name of GOCC Amount

Development Bank of the Philiipines- Minprocor 91,200

Human Settlement Development Corporation 509,094

Agrarian Credit Line 205

Ministry of Agriculture & Food 120 109,132,119

3 Philippine Deposit Insurance Corporation Bangko Sentral Ng Pilipinas 65,225,883

4 Light Rail Transit Authority Bureau of Treasury Advances 27,187,858

National Government Bond Conversion 454,760

Land Bank of the Philippines 2,029,500 29,672,118

5 National Home Mortgage Finance Corporation SSS Restructed loan 24,579,208

Home Development Mutual Fund 3,703,882

Government Service Insurance System 1,285,400 29,568,490

6 Home Development Mutual Fund Government Service Insurance System 5,000,000

various investors -bonds payable 12,000,000 17,000,000

7 Home Guaranty Corporation Issuance of debenture bonds 600,365

flotation of HGC Zero-Coupon bonds 11,471,312 12,071,677

8 National Irrigation Administration - Corporate Fund Asian Development Bank 2,829,468

International Bank for Rural Development 3,107,554

Overseas Economic Cooperation Fund 266,584

Special Project Implementation Assistance Loan 156,480

National Development Company 4,875,000 11,235,086

9 National Development Company Bondholders 3,500,000



Source

(in thousand pesos)

Name of GOCC Amount

Development Bank of the Philippines 399,244

DOLE Philippines, Inc. 4,052 7,594,372

10 Quedan and Rural Credit Guarantee Corporation Department of Agriculture 2,084,218

Agricultural Credit Policy Council 478,964

Bankers Association of the Philippines 200

Bureau of Customs 1,212

Department of Agrarian Reform 117,083


National Food Authority 34,555

Small Business Guarantee and Finance Corporation 27,100

National Dairy Authority 22,575

UCPB General Insurance 7

Regional Offices 2,848 5,187,516

11 Development Bank of the Philippines Land Bank of the Philippines 11,022

Government Service Insurancy System 1,028

National Economic Development Authority- Industrial

Guarantee and Loan Fund

4,836,023

ACPC, ADCF 4,679 4,852,752

12 Manila International Airport Authority Land Bank of the Philippines 2,319,082

Development Bank of the Philippines 2,319,082 4,638,164

13 Philippine Ports Authority Development Bank of the Philippines 2,000,000

Philippine Veterans Bank 875,000 2,875,000

14 People's Credit and Finance Corporation Land Bank of the Philippines 1,523,631


Source

(in thousand pesos)

Name of GOCC Amount


Agricultural Credit Policy Council 170,000

Small Business Corporation 72,604

Department of Foreign Affairs 5,000 2,580,714

15 Metropolitan Waterworks and Sewerage System Development Bank of the Philippines/Land Bank of the

Philippines

1,687,500

International Bank for Rural Development 59,491

Asian Development Bank 181,945

Special Project Implementation Assistance Loan 340,647

National Housing Authority 98,795 2,368,378

16 LBP Leasing Corporation Land Bank of the Philippines 1,266,885

Bank of the Philippine Islands 300,000 1,566,885

17 National Housing Authority Social Housing Finance Corp 200,000

Home Development Mutual Fund 412,500

Urban III -GOPPortion 240,748

Philippine Veterans Bank 500,000 1,353,248

18 National Electrification Administration OECF 776,792

USAID 74,912 851,704

19 Land Bank of the Philippines Bangko Sentral Ng Pilipinas 104,839

Government Lending Programs 2,382

ADB IFAD (Rural microenterprise Finance Project) 456,118

IFAD 474-PH (Western Mindanao Comm. Initiatives

Project)

107,369


Source

(in thousand pesos)

Name of GOCC Amount

KfW 20565317 (Community Based Forest and

Mangrove Mgt. Project) 100,056 770,764

20 Local Water Utilities Administration Land Bank of the Philippines 58,320

Philippine Veterans Bank 691,280 749,600

21 Government Service Insurance System -Family Bills Payable GSIS 550,725

22 DBP Leasing Corporation Bank of the Philippine Islands 282,786

Banco de Oro 100,000 382,786

23 Northern Foods Corporation Agricultural Credit Policy (ACPC) 78,583

PCIB/MAF 19,888

Human Settlement Development Corporation 53,884

National Livelihood Development Corporation 142,781

National Secretariat 30,000

NFC Employees Dev't Cooperative 930

San Joaquin MPCI 3,981 330,047

24 Clark International Airport Corporation Philippine Veterans Bank 295,342

25 PITC Pharma, Inc. National Development Company 185,000

26 Philippine Postal Corporation Philippine Postal Savings Bank, Inc 184,542

27 Lung Center of the Philippines Land Bank of the Philippines 150,000

28 Subic Bay Metropolitan Authority Land Bank of the Philippines 130,000


Source

(in thousand pesos)

Name of GOCC Amount

29 Philippine Mining Development Corporation National Development Company 50,000


JBMMC Victory Tunnel 55,000 113,333

30 Philippine Heart Center Development Bank of the Philippines 53,545

31 National Dairy Authority Agricultural Credit Policy Council 39,585

32 Natural Resources Development Corporation Philippine National Oil Company - OEC 30,000

33 Bases Conversion and Development Authority Bonifacio Water Corporation 18,446

34 Technology Resource Center NG-OEFC-Japan 1,137

35 Duty Free Philippines Corporation LBP Leasing Corporation 334

Philippine National Bank 588 922

36 Southern Philippines Development Corporation Marawi Resort Hotel, Inc. 500

37 ZNAC Rubber Estate Corporation National Agribusiness Corporation 476

TOTAL 457,074,238


Creditor

1 Power Sector Assets and Liabilities Management

Corp. Bonds: Nomura International 29,559,725

HSBC/Deutsche/Morgan 41,192,000

DBP/MS/UBS 49,430,400

US D 500M Onshore Dollar Bond 20,596,000

Citigroup Financial 20,596,000

Morgan Guaranty Trust-Dragon Bonds 5,744,400

Oversease Private Investment Corp. 5,884,571

Salomon Brother Inc. - Yankee Bonds 6,590,720

Salamon Smith Barney - Yankee Bonds 12,357,600

Bond Premium 12,257

Bond Discount (1,105,066)

Regular Loans: ADB 3,797,370

BFCE/Credit Nationale 76,064

Credit National 449,442

Exim United Loan 3,390,568

Eximbank of Japan 273,665

Eximbank of Korea 181,881

(in thousand pesos)

Name of GOCC Amount

Annex 8

Breakdown of Foreign Borrowings

December 31, 2012


Creditor

(in thousand pesos)

Name of GOCC Amount

IBRD 4,613,873

Instituto De Credito 579,381

International Development Association 117,584

JBIC-EMTDP 1,102,740

JBOC-Leyte-Cebu Int. Uprating 872,049

Kreditanstalt Fur Wiederaufbau 5,415,846

Nordic Development Fund 191,752

Nordic Investment Bank 55,685

OECF 2,566,524

US Agency for International Development-Tiwi 14,891

Other Long-Term Debts: ADB 2,059,600

1992 Bond Conversion 2,800,273 219,417,795

2 Development Bank of the Philippines

KFW (CLSWM, CLSME 1,2 IPCLP,IPCLP2,SHCIP NON-

ODA, CEFP) 4,354,593

ADB (DPUCSP, CBCHP) 1,104,514

ING Bank Singapore 2,709,300

Bank of America Singapore 2,668,250

ANZ Bank Singapore 3,008,011

Standard Chartered Bank New York 410,500

Standard Chartered Bank SG 1,231,492

COBANK Denver 5,502,899

BARCLAYS Bank PLC London 1,385,993

UBS AG London 1,263,871

SUMITOMO Bank HK 1,642,000

Wells Fargo Bank NA Miami 1,486,010

DEUTSCHE Bank AG Singapore 837,420

DEUTSCHE Bank AG London 722,480

DEUSCHE Bank Trust Co NY 1,844,384


Creditor

(in thousand pesos)

Name of GOCC Amount

WB (RIGP, RPP,RPP ADDL FIN, LGU WTR II) 1,402,565

JAPAN (EDP NW, EDP TA, EDP PWRF, LIDP, OECP-

EISCP2, OECP-EISCP3, O ISSEP 2, O ISEP3, O DSMP,

O DSMP II, O EISCP, JEXIM 6 NON-ODA, O AJDF) 60,988,876

BANQUE CANTONALE DE GENEVE 205,250

DNB NOR Bank ASA Norway 82,100

CITIBANK NA Manila 821,000

ING Bank Amsterdam 397,159

MIZUHO Corporate Bank Manila PH 328,400

ABN AMRO Bank SG 410,500

JP MORGAN CHASE Bank Singapore 656,800

EIB,DBPGLOBALNONODA 1,562,045

NORDIC INVT 568,115

NSDR5MM 31,250 97,625,777

3 Light Rail Transit Authority JBIC Loans 32,613,700

Belgian State Loan 897,057 33,510,757

4 Land Bank of the Philippines World Bank/IBRD 9,114,846

Asian Development Bank 956,799

Japan International Cooperation Agency (JICA) 14,449,084

Kreditanstalt Fur Wiederaufbau (KfW) 1,532,107 26,052,836

5

Metropolitan Waterworks and Sewerage System ADB 3,665,670

IBRD 456,220

French Protocol 80,919


Creditor

(in thousand pesos)

Name of GOCC Amount

JBIC Loans 1,647,217

EXIMBANK 4,366,221 10,216,247

6 Subic Bay Metropolitan Authority Japan International Cooperation Agency (JICA) formerly

Overseas Economic Coopration Fund of Japan (OECF)

7,156,624

World Bank 712,859

ICDF 447,421 8,316,904

7 Philippine Ports Authority JBIC Loans 7,859,022

8 Local Water Utilities Administration ADB 1,516,643

JBIC Loans 2,807,308

KFW 768,116

USAID 209,947

IDA 24,097

French Protocol 45,357 5,371,468

9 Manila International Airport Authority Japan International Cooperation Agency (JICA) formerly


4,197,056

Natixis Banque (formerly Credit Nationale) - French Loan55,842 4,252,898

10 PHIVIDEC Industrial Authority Relent Loans 3,571,632

NG Advances on PIA Loans/debt service 652,146

Other Receivables (Interest. FX risk cover fees) 3,544 4,227,322

11 Philippine National Railways JBIC Loans 1,237,568

EDCF/Korea 1,274,235


Creditor

(in thousand pesos)

Name of GOCC Amount

KEXIM-II 477,506

RZB Austria 138,291 3,127,600

12 Small Business Corporation Asian Development Bank 1,062,868

Kfw 638,001

IFAD 571,112 2,271,981

13 National Power Corporation NATIXIS - PRES SPUG 572,462

BNP PARIBAS - PRES SPUG 276,596 849,058

14 National Electrification Administration OECF 776,792

KFW 78,079

USAID 74,912

IBRD (143,098) 786,685

15 Industrial Guarantee Loan Fund Asian Development Bank 479,965

16 Tourism Infrastructure and Enterprise Zone

Authority

Japan Bank for International Cooperation 405,145

17 Authority of the Freeport Area of Bataan Japan International Cooperation Agency (JICA) formerly


374,808

18 National Food Authority 1995 Japanese Rice Loan- Y541.355M 1995 at 2% on the

1st to 10th year and 3% per annum from 11th to 30th year

(with 10 years grace period) annual installments of

Y27,067.737 starting July 31, 2006 to July 2025169,312


Creditor

(in thousand pesos)

Name of GOCC Amount

1996 USPL 480 at 3% per annum for the 1st to 5th year and

4% per annum for the 6th to 20th year (with a 4 year grace

period) annual installments of $312 million) 167,321 336,633

19 National Irrigation Administration-Corporate

Fund Asian Development Bank 139,040

International Bank for Rural Development 83,155

International Fund forAgricultural Development 49,059 271,254

20 Philippine Economic Zone Authority Japan International Cooperation Agency (JICA) formerly

Overseas Economic Coopration Fund of Japan (OECF) 160,657

21 Clark Development Corporation Deutsche Bank 111,457

22 National Housing Authority KFW DBB 4,758

URBAN III 97,243 102,001

23 Bangko Sentral ng Pilipinas Blocked peso deposit (Circular 1139/1202) 30,377

Blocked peso deposit (Circular 1298) 18,569 48,946

24 Philippine Fisheries Development Authority Asian Development Bank 15,040

Overseas Economic Cooperation Fund 15,896

International Bank for Rural Development 16,857 47,793

25 Bases Conversion and Development Authority Japan International Cooperation Agency 26,462

TOTAL 426,251,471



(in thousand pesos)







7 National Irrigation Administration-General Fund 101,302,754





12 Bangko Sentral ng Pilipinas 64,515,750

13 National Housing Authority 43,078,130






19 Manila International Airport Authority 18,828,565

20 Civil Aviation Authority of the Philippines 16,807,169

Annex 9

Ranking by Total Equity

CY 2012

Page 1 of 1


(in thousand pesos)



3 Bangko Sentral Ng Pilipinas 64,829,032


5 Philipppine Amusement and Gaming Corporation 40,913,550





10 Food Terminal, Inc. 24,177,561






16 Duty Free Philippines Corporation 10,160,779


18 PNOC-Exploration Corporation 8,963,359



Annex 10

Ranking by Gross Income

CY 2012

Page 1 of 1


(in thousand pesos)

1 Bangko Sentral Ng Pilipinas 160,164,719








9 Philipppine Amusement and Gaming Corporation 19,414,430




13 Duty Free Philippines Corporation 9,615,645


15 Philippine Economic Zone Authority 6,504,596



18 PNOC-Exploration Corporation 4,708,351


20 National Home Mortgage Finance Corporation 3,814,725

Annex 11

Ranking by Total Expenditures

CY 2012

Page 1 of 1

Name of GOCC DiscretionaryRepresentation/

Entertainment

Extraordinary/C

ontingency/Emer

gency

Promotional/

Advertising

Confidential/

IntelligenceConsultancy Total

Share in

total

expenses

Philippine Aerospace Development Corporation - 89,413 - 190,498 - 270,000 549,911 0.08%

Philippine Amusement and Gaming Corporation - 176,041 - 76,325 254,846 22,088 529,301 0.08%

Bangko Sentral ng Pilipinas - 310,931 3,963 25,526 3,168 26,015 369,603 0.05%

Land Bank of the Phillipines - 172,449 - 101,512 - 54,872 328,833 0.05%

Development Bank of the Philippines - 75,156 - 27,265 - 191,425 293,846 0.04%

Philippine Charity Sweepstakes Office - 516 3,530 276,476 - 7,563 288,084 0.04%

Social Security System 527 79,365 547 89,208 - 11,610 181,257 0.03%

Bases Conversion Development Authority - 4,688 777 121,267 - 12,157 138,889 0.02%

Metropolitan Waterworks and Sewerage System 77 748 1,961 999 - 99,888 103,673 0.02%

Power Sector Assets and Liabilities Management

Corporation- 4,768 3,766 3,317 - 90,987 102,838 0.02%

Philippine Health Insurance Corporation - 20,528 11,969 66,819 - 2,763 102,079 0.02%

Philippine Ports Authority - 14,127 5,999 2,983 2,000 64,323 89,432 0.01%

Duty Free Philippines Corporation - 2,779 4,529 69,355 - 1,473 78,136 0.01%

Home Development Mutual Fund - 16,701 5,392 28,726 - 19,587 70,406 0.01%

Annex 12

Summary of Discretionary, Representation, Extraordinary,

Promotional, Confidential and Consultancy Expenses

(in thousand pesos)

For the year ended December 31, 2012



Entertainment

Extraordinary/C

ontingency/Emer

gency

Promotional/

Advertising

Confidential/


Share in

total

expenses

Development Academy of the Philippines - - 307 1,980 - 66,315 68,602 0.01%

Government Service Insurance System - 5,893 22,424 - - 19,821 48,138 0.01%

NIA Consult, Inc. 6 - - 226 - 44,422 44,654 0.01%

Tourism Infrastructure and Enterprise Zone

Authority- 5,512 225 2,220 - 25,263 33,220 0.00%

Civil Aviation Authority of the Philippines - 7,315 1,226 761 10,000 12,974 32,276 0.00%

Tourism Promotions Board - 1,445 - 28,114 - - 29,559 0.00%

Subic Bay Metropolitan Authority - 5,727 401 6,484 - 15,042 27,654 0.00%

Light Rail Transit Authority - 2,127 218 791 - 24,370 27,506 0.00%

Manila International Airport Authority 14,778 1,861 752 1,312 - 8,541 27,244 0.00%

Local Water Utilities Administration - 22,179 31 959 - 3,731 26,900 0.00%

Center for International Trade Expositions and

Missions7 2,704 15,341 - - 8,803 26,855 0.00%

Philippine Deposit Insurance Corporation - - 4,906 3,972 - 17,569 26,447 0.00%

National Food Authority 2,520 15,522 882 3,861 13 2,132 24,930 0.00%

Philippine National Oil Company - 5,350 9,869 2,033 - 5,229 22,481 0.00%

Overseas Workers Welfare Administration 697 753 3,349 13,965 - 650 19,414 0.00%

Philippine Retirement Authority 62 1,931 - 17,233 - - 19,226 0.00%

Clark Development Corporation - 4,917 - 13,822 - 370 19,109 0.00%

Aurora Pacific Economic Zone Authority - 2,905 362 3,286 - 9,099 15,652 0.00%

Philippine Postal Savings Bank, Inc. - 10,829 - 559 - 4,254 15,642 0.00%

National Home Mortgage Finance Corporation - 3,807 4,792 3,859 - 1,416 13,874 0.00%

Philippine Crop Insurance Corporation - 2,626 2,212 8,798 - - 13,636 0.00%

Home Guaranty Corporation - 3,930 5,526 1,985 - 1,210 12,651 0.00%

Social Housing Finance Corporation 3,050 6,016 - - - 3,541 12,607 0.00%

Clark International Airport Corporation - 1,602 - 8,789 - 983 11,374 0.00%



Entertainment

Extraordinary/C

ontingency/Emer

gency

Promotional/

Advertising

Confidential/


Share in

total

expenses

Philippine Economic Zone Authority - 1,530 - 5,256 - 3,235 10,021 0.00%

PNOC Exploration Corporation - 2,534 - 3,817 - 3,574 9,925 0.00%

Cagayan Economic Zone Authority - 3,100 280 2,156 - 4,276 9,812 0.00%

Philippine Postal Corporation - - 533 2,330 - 6,784 9,647 0.00%

National Housing Authority - 3,995 220 2,439 - 2,826 9,480 0.00%

National Livelihood Development Corporation - 966 459 7,378 - - 8,803 0.00%

National Irrigation Administration-CF - 3,432 948 879 - 3,329 8,588 0.00%

Occupational Safety & Health Center 110 2,635 - 5,661 - 99 8,505 0.00%

GSIS Family Bank - 6,291 - 367 - 1,452 8,110 0.00%

Philippine Reclamation Authority - 6,145 831 900 - - 7,876 0.00%

Trade and Investment Development Corporation

of the Phils.699 2,380 - 3,698 - 494 7,271 0.00%

National Power Corporation - 3 144 3,449 - 3,409 7,005 0.00%

Authority of the Freeport of Bataan - 1,079 492 1,139 - 4,178 6,888 0.00%

Philippine International Convention Center, Inc. - - - 6,799 - - 6,799 0.00%

Philippine National Railways - 2,029 - 315 - 4,381 6,725 0.00%

Technology Resource Center 599 496 756 - 4,717 6,568 0.00%

Credit Information Corporation - 134 122 2,157 - 3,852 6,265 0.00%

Small Business Corporation - - 5,244 - - 977 6,221 0.00%

National Transmission Corporation 352 837 - 689 - 4,279 6,157 0.00%

Boy Scouts of the Philippines - 651 - 193 - 5,086 5,930 0.00%

Philippine Heart Center 4,501 521 - 255 - 220 5,496 0.00%

John Hay Management Corporation - 2,344 - 1,153 - 1,829 5,326 0.00%

National Development Company 310 2,628 - 66 - 2,291 5,295 0.00%

PNOC Development & Management Corporation - 1,249 - - - 3,703 4,952 0.00%

APO Production Unit, Inc. - 294 - 106 - 4,319 4,719 0.00%



Entertainment

Extraordinary/C

ontingency/Emer

gency

Promotional/

Advertising

Confidential/


Share in

total

expenses

Philippine International Trading Corporation - 2,210 22 1,155 - 943 4,330 0.00%

National Tobacco Administration - 2,507 335 312 - 425 3,579 0.00%

PNOC Alternative Fuels Corporation - 1,460 - - - 1,890 3,350 0.00%

Employees Compensation Commission - 498 110 2,715 - - 3,323 0.00%

National Kidney and Transplant Institute - - 153 403 - 2,695 3,251 0.00%

Philippine Coconut Authority - 399 1,634 408 - 625 3,066 0.00%

PHIVIDEC Industrial Corporation - 2,625 - 297 - - 2,922 0.00%

Corregidor Foundation Inc. - - - 2,745 - - 2,745 0.00%

LBP Leasing Corporation - 1,628 - 1,052 - - 2,680 0.00%

Al-Amanah Islamic Investment Bank of the

Philippines- 263 - 243 - 2,000 2,506 0.00%

People's Television Network Incorporated - 562 - 130 - 1,742 2,434 0.00%

Laguna Lake Development Authority 188 2,152 - - - - 2,340 0.00%

Philippine Fisheries Development Authority - 679 748 131 - 650 2,208 0.00%

National Dairy Authority - 767 572 274 572 2,185 0.00%

Lung Center of the Philippines - - 636 49 - 1,496 2,181 0.00%

Nayong Pilipino Foundation - 1,245 - 269 - 610 2,124 0.00%

Philippine National Construction Corporation - 1,428 - 33 - 658 2,119 0.00%

National Electrification Administration 166 541 - 159 - 1,242 2,108 0.00%

Northern Foods Corporation 118 1,140 - 65 - 761 2,084 0.00%

People's Credit and Finance Corporation 330 - - 992 - 685 2,007 0.00%

Philippine Forest Corporation - 81 - 23 - 1,866 1,970 0.00%

Cultural Center of the Philippines - 839 - 390 - 420 1,649 0.00%

AFP Retirement and Separation Benefits System - 267 - 110 - 1,225 1,602 0.00%

Veterans Federation of the Philippines - 1,579 - - - - 1,579 0.00%

Human Settlements Development Corporation - 847 708 - - - 1,555 0.00%



Entertainment

Extraordinary/C

ontingency/Emer

gency

Promotional/

Advertising

Confidential/


Share in

total

expenses

Philippine Institute for Development Studies - 349 108 - - 1,089 1,546 0.00%

Philippine Mining Development Corporation - 257 - 891 - 375 1,523 0.00%

Philippine Sugar Corporation - 567 161 366 - 380 1,474 0.00%

Philippine Institute of Traditional and Alternative

Health Care- 254 71 1,001 - - 1,326 0.00%

Industrial Guarantee Loan Fund 54 559 - 11 - 677 1,301 0.00%

Partido Development Administration - 1,116 103 - - - 1,219 0.00%

Zamboanga City Special Economic Zone

Authority- 477 103 405 - 201 1,186 0.00%

Manila Gas Corporation - 425 - - - 667 1,092 0.00%

Natural Resources Development Corporation - 95 310 16 - 627 1,048 0.00%

Southern Philippines Development Authority - 767 232 18 - - 1,017 0.00%

Traffic Control Products Corporation - 961 - - - - 961 0.00%

PNOC Renewables Corporation - 489 467 - - - 956 0.00%

PITC Pharma, Inc. - 46 - 150 - 669 865 0.00%

Sugar Regulatory Administration - 325 - 45 - 488 858 0.00%

Mactan-Cebu International Airport Authority 361 - 235 204 - - 800 0.00%

Food Terminal, Inc. - - - - 800 - 800 0.00%

LBP Insurance Brokerage, Inc. - 779 - 5 - - 784 0.00%

Southern Utility Management and Services, Inc. - 349 - 397 - - 746 0.00%

Bataan Technology Park, Inc. - 533 - 15 - 167 715 0.00%

Land Bank Resources and Development

Corportion- 600 66 - - - 666 0.00%

DBP Leasing Corporation - 50 - 46 - 569 665 0.00%

Philippine Rice Research Institute - - - 211 - 412 623 0.00%



Entertainment

Extraordinary/C

ontingency/Emer

gency

Promotional/

Advertising

Confidential/


Share in

total

expenses

Masaganang Sakahan Inc. - 454 - 75 - - 529 0.00%

National Agribusiness Corporation - 491 - 28 - - 519 0.00%

DISC Contractors Builders and General Services,

Incorporated- 241 - - - 212 453 0.00%

BCDA Management and Holdings, Incorporated - 82 - - - 360 442 0.00%

Quedan and Rural Credit Guarantee Corporation 122 - 94 160 - 29 405 0.00%

DBP Management Corporation - - - 176 - - 176 0.00%

Philippine Agricultural Development and

Commercial Corporation- 140 16 - - - 156 0.00%

National Irrigation Administration-SF - 153 - - - - 153 0.00%

Philippine Center for Economic Development - 149 - - - - 149 0.00%

Philippine Children's Medical Center - 71 54 - - 124 0.00%

Batangas Land Company, Incorporated - 34 - 78 - - 112 0.00%

Cottage Industry Technology Center - 17 51 - - - 68 0.00%

DBP Data Center, Inc. - 65 - - - - 65 0.00%

National Irrigation Administration-GF - 52 - - - - 52 0.00%

Bukidnon Forests Incorporated - 22 - 7 - - 29 0.00%

ZNAC Rubber Estate Corporation - 27 - - - - 27 0.00%

Kamayan Realty Corporation - 16 - - - - 16 0.00%

Palacio del Gobernador Condominium

Corporation- - - 11 - - 11 0.00%

GY Realty Estate, Inc. - 6 - - - - 6 0.00%

Central Bank - Board of Liquidators - 5 - - - - 5 0.00%

TOTAL 29,634 1,162,606 132,029 1,273,569 271,399 1,246,651 4,115,887 0.61%


2012 2011 Amount Percent

Power Sector Assets and Liabilities Management Corporation 16,545,140 - 16,545,140 0.00%

National Irrigation Administration - General Fund 22,234,471 13,438,302 8,796,169 65.46%

National Food Authority 8,029,829 2,500,000 5,529,829 221.19%

National Electrification Administration 2,568,500 867,830 1,700,670 195.97%

National Irrigation Administration - Corporate Fund 984,362 - 984,362 100.00%

National Transmission Corporation 864,129 - 864,129 0.00%

Philippine Coconut Authority 1,182,757 542,700 640,057 117.94%

Philippine Heart Center 622,919 127,138 495,781 389.96%

Philippine Postal Corporation 600,538 295,868 304,670 102.97%

National Dairy Authority 337,912 116,171 221,741 190.87%

Tourism Promotions Board 250,000 65,000 185,000 284.62%

Lung Center of the Philippines 333,308 157,560 175,748 111.54%

National Tobacco Administration 219,200 77,454 141,746 183.01%

People's Television Network Incorporated 152,835 41,613 111,222 267.28%

National Kidney and Transplant Institute 264,800 162,800 102,000 62.65%

Center for International Trade Expositions and Missions, Inc. 179,510 79,686 99,824 125.27%

Aurora Pacific Economic Zone and Freeport Authority 55,000 - 55,000 0.00%

Social Security System 45,280 - 45,280 0.00%

Amount

Annual Growth of Subsidy Income from the National Government

For the year ended December 31, 2012(in thousand pesos)

Annex 13

Name of AgenciesAnnual Growth


2012 2011 Amount Percent

AmountName of Agencies

Annual Growth

Southern Philippines Development Authority 23,392 - 23,392 0.00%

Natural Resources Development Corporation 16,500 - 16,500 100.00%

Philippine Center for Economic Development 14,500 - 14,500 100.00%

Development Academy of the Philippines 44,968 33,975 10,993 32.36%

Credit Information Corporation 28,410 17,500 10,910 62.34%

Philippine Institute for Development Studies 31,000 23,300 7,700 33.05%

Philippine Institute of Traditional and Alternative Health Care 40,000 37,000 3,000 8.11%

Cottage Industry Technology Center 9,413 8,000 1,413 17.66%

Zamboanga City Special Economic Zone 49,100 49,100 - 0.00%

Cultural Center of the Philippines 201,327 201,625 (298) -0.15%

National Irrigation Administration - Special Fund 234,993 238,775 (3,782) -1.58%

National Housing Authority 5,066,584 5,146,695 (80,111) -1.56%

Philippine Rice Research Institute 340,901 496,004 (155,103) -31.27%

Philippine Children's Medical Center 445,000 601,200 (156,200) -25.98%

Bases Conversion Development Authority 15,287 423,992 (408,705) -96.39%

Philippine National Railways 128,653 779,995 (651,342) -83.51%

Local Water Utilities Administration 338,846 1,040,902 (702,056) -67.45%

National Home Mortgage Finance Corporation 500,000 1,462,140 (962,140) -65.80%

Light Rail Transit Authority - 1,867,512 (1,867,512) -100.00%

National Power Corporation - 9,725,083 (9,725,083) -100.00%

62,999,364 40,624,920 22,374,444


Name of GOCC Amount

(in thousand pesos)

Philippine Health Insurance Corporation 14,274,073

Philippine Deposit Insurance Corporation 3,210,066

Occupational Safety and Health Center 121,607

John Hay Management Corporation 65,184

Corregidor Foundation, Inc. 24,500

Overseas Workers Welfare Administration 23,163

Tourisms Promotions Board 19,200

Clark Development Corporation 15,287

Development Academy of the Philippines 9,300

Philippine Heart Center 9,200

National Kidney and Transplant Institute 39

Annex 14

Subsidy Received from Other Government Agencies


Page 1 of 1

Income Withholding Others Total

1 Bangko Sentral ng Pilipinas 112,577 19,647,217 917,720 20,677,514 2 Food Terminal, Inc. 6,658,902 12,541 42,268 6,713,711 3 Land Bank of the Philippines 1,474,181 1,996,246 3,169,262 6,639,689 4 Philippine Amusement and Gaming Corporation 1,070,117 778,739 3,768,315 5,617,171 5 Philippine Charity Sweepstakes Office - 1,389,416 3,611,926 5,001,342 6 Power Sector Assets and Liabilities Management Corporation - 4,560,002 1 4,560,003 7 PNOC Exploration Corporation 1,343,548 191,313 27,898 1,562,759 8 Philippine Economic Zone Authority 1,121,720 210,783 125,733 1,458,236 9 Development Bank of the Philippines 11,953 764,362 648,942 1,425,257 10 Manila International Airport Authority 738,660 261,750 316,622 1,317,032 11 Philippine Deposit Insurance Corporation 991,853 214,518 1,219 1,207,590 12 Philippine Ports Authority 637,382 454,949 - 1,092,331 13 Philippine Reclamation Authority 461,655 11,395 393,959 867,009 14 Social Security System - 706,944 149,784 856,728 15 Mactan-Cebu International Airport Authority 59,218 44,376 501,702 605,296 16 Government Service Insurance System - 520,479 4,485 524,964 17 Home Development Mutual Fund - 384,405 116,471 500,876

Annex 15

Rank Name of GOCC Taxes

Top GOCC TaxpayersFor the year ended December 31, 2012

(in thousand pesos)

Page 1 of 2 Annex 15 .

Income Withholding Others TotalRank Name of GOCC Taxes

18 National Power Corporation - 361,016 - 361,016 19 Philippine Children's Medical Center 157,007 114,969 - 271,976 20 Philipine Heart Center - 178,955 - 178,955

Page 2 of 2 Annex 15 .


(in thousand pesos)



3 Food Terminal , Inc. 3,717,646



6 Civil Aviation Authority of the Philippines 1,362,980

7 Philippine Amusement and Gaming Corporation 1,000,000

8 PNOC-Exploration Corporation 749,170

9 Philippine Reclamation Authority 700,000

10 Philippine Deposit Insurance Corporation 504,709

11 Philippine Economic Zone Authority 366,129

12 Bases Conversion and Development Authority 180,000

13 Metropolitan Waterworks and Sewerage System 150,000

14 Philippine Retirement Authority 148,136

15 Clark Development Corporation 100,000

16 People's Credit and Finance Corporation 94,982

17 National Livelihood Development Corporation 93,644

18

Trade and Investment Development Corporation of the

Philippines 86,375

19 Mactan-Cebu International Airport Authority 84,371

20 LBP Leasing Corporation 63,607

TOTAL 23,061,802

Annex 16

Top 20 GOCCs with Dividend Remittances


Page 1 of 1

U Q A D


1 Al-Amanah Islamic Investment Bank of the Philippines x

2 Bangko Sentral ng Pilipinas x

3 Central Bank Board of Liquidators x

4 Credit Information Corporation x

5 DBP Data Center, Inc. x

6 DBP Leasing Corporation x

7 DBP Management Corporation x

8 Development Bank of the Philippines x

9 Industrial Guarantee and Loan Fund x

10 Land Bank of the Philippines x

11 Land Bank Resources and Development Corporation x

12 Landbank Countryside Development Foundation, Inc. x

13 LBP Insurance Brokerage, Inc. x

14 LBP Leasing Corporation x

15 Masaganang Sakahan, Inc. x

16 Northern Foods Corporation x

17 People's Credit and Finance Corporation x

18 Philippine Deposit Insurance Corporation x

19 Philippine International Convention Center, Inc. x

20 Philippine Postal Savings Bank, Inc. x


1 Employees' Compensation Commission x

2 Government Service Insurance System x

3 Home Guaranty Corporation x

4 Home Development Mutual Fund x

5 National Home Mortgage Finance Corporation x

6 National Housing Authority x

7 Occupational Safety and Health Center x

8 Palacio Del Gobernador Condominium Corporation x

9 Small Business Corporation x

10 Social Housing Finance Corporation x

11 Social Security System x

12 Southern Utility Management Service, Inc. x

13Trade and Investment Development Corporation of the

Philippines x


1 Light Rail Transit Authority x

2 Local Water Utilities Administration x

Type of Opinion

Tabulation of Audit Opinions Rendered

Annex 17

Name of Agencies


U Q A D

Type of OpinionName of Agencies

3 Metropolitan Waterworks and Sewerage System x

4 National Electrification Administration x

5 National Power Corporation x

6 National Transmission Corporation x

7 Philippine National Oil Company x

8 Philippine National Railways x

9 Philippine Ports Authority x

10 Philippine Postal Corporation x

11 PNOC Alternative Fuels Corporation x

12 PNOC Development & Management Corporation x

13 PNOC Exploration Corporation x

14 PNOC Malampaya Production Corporation x

15 PNOC Renewables Corporation x

16 PNOC Shipping and Transport Corporation x

17 Power Sector Assets and Liabilities Management Corp. x


1 Authority of the Freeport Area of Bataan x

2 Aurora Pacific Economic Zone and Freeport Authority x

3 Bases Conversion and Development Authority x

4 Bataan Technology Park, Inc. x

5 BCDA Management and Holdings, Inc. x

6 Clark Development Corporation x

7 Clark International Airport Corporation x

8 John Hay Management Corporation x

9 Poro Point Management Corporation x

10 Cagayan Economic Zone Authority x

11 Northeastern Luzon Pacific Coastal Service Inc. x

12 Civil Aviation Authority of the Philippines x

13 Mactan-Cebu International Airport Authority x

14 Manila International Airport Authority x

15 Marawi Resort Hotels, Inc. x

16 National Development Company x

17 Batangas Land Company, Inc. x

18 First Cavite Industrial Estate Inc. x

19 GY Real Estate, Inc. x

20 Inter-Island Gas Services, Inc. x

21 Kamayan Realty Corporation x

22 Manila Gas Corporation x

23 NDC-Philippine Infrastructure Corporation x

24 Philippine National Lines x

25 Pinagkaisa Realty Corporation x

26 Philippine Aerospace Development Corporation x

27 Philippine Economic Zone Authority x

28 Philippine National Construction Corporation x

29 Alabang - Sto. Tomas Development, Inc. x

30 CDCP Farms Corporation x

31 DISC Contractors Builders and General Services, Inc. x


U Q A D


32 Traffic Control Products Corporation x

33 Philippine Reclamation Authority x

34 PEA Tollways Corporation x

35 PHIVIDEC Industrial Authority x

36 Southern Philippines Development Corporation x

37 Subic Bay Metropolitan Authority x

38 Tourism Infrastructure and Enterprise Zone Authority x

39 Corregidor Foundation, Inc. x

40 Zamboanga City Special Economic Zone Authority x


1 Food Terminal Incorporated x

2 Human Settlements Development Corporation x

3 National Agribusiness Corporation x

4 National Dairy Authority x

5 National Tobacco Administration x

6 Natural Resources Development Corporation x

7 NIA Consult, Inc. x

8Philippine Agricultural Development and Commercial

Corporation x

9 Philippine Fisheries Development Authority x

10 Philippine Mining Development Corporation x

11 Philippine Sugar Corporation x

12 Sugar Regulatory Administration x

13 ZNAC Rubber Estate Corporation x

14 Philippine Rice Research Institute x

15 Bukidnon Forest, Incorporated x


1 Boy Scouts of the Philippines x

2Center for International Trade Expositions and Missions x

3 Cottage Industry Technology Center x

4 Cultural Center of the Philippines x

5 Development Academy of the Philippines x

6 Duty Free of the Philippines x

7 Lung Center of the Philippines x

8 National Kidney and Transplant Institute x

9 Nayong Pilipino Foundation x

10 Overseas Workers Welfare Administration x

11 Philippine Amusement and Gaming Corporation x

12 Philippine Center for Economic Development x

13 Philippine Charity Sweepstakes Office x

14 Philippine Children's Medical Center x

15 Philippine Heart Center x

16 Philippine Health Insurance Corporation x

17 Philippine Institute for Development Studies x


U Q A D


18Philippine Institute of Traditional and Alternative Health

Care x

19 Philippine International Trading Corporation x

20 PITC Pharma, Inc. x

21 People's Television Network, Inc. x

22 Philippine Retirement Authority x

23Tourism Promotions Board (formely Philippine Convention

and Visitors Corporation) x

24 Technology Resource Center x

25 Veterans Federation of the Philippines x

U - Unqualified

Q - Qualified

A - Adverse

D - Disclaimer

Legend:


Total Number of

Recommendations

Fully

Implemented

Partially

Implemented

Not

Implemented


1 Bangko Sentral ng Pilipinas 57 31 23 3

2 Philippine Postal Savings Bank, Inc. 53 27 23 3

3 Land Bank of the Philippines 53 14 35 4

4 Development Bank of the Philippines 48 15 25 8

5 Al-Amanah Islamic Investment Bank of the Philippines 25 6 16 3

6 Philippine International Convention Center, Inc. 22 11 6 5

7 LBP Leasing Corporation 20 6 13 1

8 Northern Foods Corporation 20 4 8 8

9 Landbank Countryside Development Foundation, Inc. 18 14 2 2

10 Land Bank Resources and Development Corporation 16 8 7 1

11 Masaganang Sakahan, Inc. 15 5 9 1

12 People's Credit and Finance Corporation 11 4 6 1

13 Philippine Deposit Insurance Corporation 9 7 0 2

14 LBP Insurance Brokerage, Inc. 5 0 3 2

15 Central Bank - Board of Liquidators 4 3 1 0

16 Industrial Guarantee and Loan Fund 4 3 1 0

Status of Implementation of Prior Year's Audit Recommendations

December 31, 2012(in thousand pesos)

Annex 18

Name of GOCC


Total Number of

Recommendations

Fully

Implemented

Partially

Implemented

Not

ImplementedName of GOCC

17 DBP Leasing Corporation 4 3 1 0

18 DBP Data Center, Inc. 4 2 0 2

19 DBP Management Corporation 2 1 1 0

390 164 180 46


1 Home Development Mutual Fund 67 57 10 0

2 AFP Retirement and Separation Benefits System 47 5 35 7

3 Social Security System 43 11 24 8

4 National Housing Authority 35 4 24 7

5 Government Service Insurance System 34 6 25 3

6 National Home Mortgage Finance Corporation 24 2 21 1

7 Small Business Corporation 22 7 15 0

8 Home Guaranty Corporation 20 2 18 0

9 Trade and Investment Development Corporation 19 5 7 7

10 Southern Utility Management and Services, Inc. 11 3 5 3

11 Employees' Compensation Commission 11 7 2 2

12 GSIS Family Bank 10 7 2 1

13 Occupational Safety Health Center 8 4 3 1

14 Social Housing Finance Corporation 7 2 2 3

15 Palacio del Gobernador Condominium Corporation 7 3 2 2

Total 365 125 195 45


Total Number of

Recommendations

Fully

Implemented

Partially

Implemented

Not



1 Local Water Utilities Administration 28 20 0 8

2 Metropolitan Waterworks and Sewerage System 24 8 0 16

3 Power Sector Assets and Liabilities Management Corp. 21 14 4 3

4 Philippine Postal Corporation 18 0 0 18

5 National Power Corporation 17 5 11 1

6 National Electrification Administration 15 8 7 0

7 PNOC Alternative Fuels Corporation 14 9 3 2

8 Philippine National Railways 13 2 8 3

9 PNOC Shipping and Transport Corporation 13 3 9 1

10 Philippine Ports Authority 13 4 6 3

11 Light Rail Transit Authority 8 4 2 2

12 PNOC Development & Management Corporation 6 2 2 2

13 PNOC Renewables Corporation 6 4 2 0

14 National Transmission Corporation 6 4 2 0

15 Philippine National Oil Company 3 0 1 2

16 PNOC Exploration Corporation 2 1 1 0

17 PNOC Malampaya Production Corporation 0 0 0 0

Total 207 88 58 61


1 Civil Aviation Authority of the Philippines 177 52 53 72

2 PHIVIDEC Industrial Authority 70 27 25 18

3 Tourism Infrastructure and Enterprise Zone Authority 50 37 13 0


Total Number of

Recommendations

Fully

Implemented

Partially

Implemented

Not


4 Corregidor Foundation, Inc. 28 17 2 9

5 Mactan-Cebu International Airport Authority 26 2 15 9

6 Zamboanga City Special Economic Zone Authority 24 8 13 3

7 Philippine National Construction Corporation 21 7 6 8

8 John Hay Management Corporation 17 3 11 3

9 Philippine Reclamation Authority 17 1 9 7

10 Manila International Airport Authority 12 3 5 4

11 Cagayan Economic Zone Authority 10 3 4 3

12 Southern Philippines Development Corporation 10 5 3 2

13 Subic Bay Metropolitan Authority 10 4 6 0

14 Bases Conversion and Development Authority 9 5 3 1

15 Authority of the Freeport Area of Bataan 8 4 4 0

16 Clark Development Corporation 8 1 4 3

17 Clark International Airport Corporation 7 1 3 3

18 Philippine Aerospace Development Corporation 7 4 2 1

19 Philippine Economic Zone Authority 7 2 5 0

20 Aurora Pacific Economic Zone and Freeport Authority 6 1 1 4

21 National Development Company 6 1 4 1

22 PEA Tollways Corporation 6 2 1 3

23 Bataan Technology Park, Inc. 5 0 2 3

24 BCDA Management and Holdings, Inc. 5 1 2 2

25 Northeastern Luzon Pacific Coastal Service Inc. 5 1 1 3

26 Alabang - Sto. Tomas Development, Inc. 5 2 1 2

27 DISC Contractors Builders and General Services, Inc. 5 2 0 3

28 Traffic Control Products Corporation 4 0 2 2


Total Number of

Recommendations

Fully

Implemented

Partially

Implemented

Not


29 Batangas Land Company, Inc. 3 1 2 0

30 Poro Point Management Corporation 2 0 1 1

31 Marawi Resort Hotels, Inc. 2 1 1 0

32 First Cavite Industrial Estate Inc. 2 0 2 0

33 CDCP Farms Corporation 2 0 0 2

34 GY Real Estate, Inc. 1 0 0 1

35 Inter-Island Gas Services, Inc. 1 0 0 1

36 Manila Gas Corporation 1 0 0 1

37 NDC-Philippine Infrastructure Corporation 1 0 0 1

38 Philippine National Lines 1 1 0 0

39 Kamayan Realty Corporation 0 0 0 0

40 Pinagkaisa Realty Corporation 0 0 0 0

Total 581 199 206 176


1 Quedan and Rural Credit Guarantee Corporation 95 7 42 46

2 ZNAC Rubber Estate Corporation 93 40 1 52

3 National Agribusiness Corporation 82 12 19 51

4 National Food Authority 59 28 24 7

5 National Irrigation Administration -General Fund 58 12 30 16

6 National Tobacco Administration 43 19 10 14

7 National Irrigation Administration -Corporate Fund 42 2 31 9

8 Philippine Agricultural Development and Commercial Corporation 35 12 1 22

9 Philippine Coconut Authority 34 9 14 11


Total Number of

Recommendations

Fully

Implemented

Partially

Implemented

Not


10 Philippine Fisheries Development Authority 33 12 7 14

11 Human Settlements Development Corporation 25 2 2 21

12 NIA Consult, Inc. 22 2 4 16

13 National Irrigation Administration -Special Fund 19 1 4 14

14 National Dairy Authority 17 5 2 10

15 Philippine Mining Development Corporation 16 8 5 3

16 Philippine Forest Corporation 15 7 5 3

17 Philippine Crop Insurance Corporation 12 6 6 0

18 Natural Resources Development Corporation 11 2 2 7

19 Food Terminal, Inc. 9 3 6 0

20 Bukidnon Forest Inc. 7 2 1 4

21 Philippine Rice Research Institute 6 0 5 1

22 Sugar Regulatory Administration 3 1 0 2

23 Philippine Sugar Corporation 3 1 1 1

Total 739 193 222 324


1 Veterans Federation of the Philippines 143 5 11 127

2 Philippine Health Insurance Corporation 125 18 75 32

3 Philippine Charity Sweepstakes Office 77 32 27 18

4 Overseas Workers Welfare Administration 37 16 14 7

5 Philippine Children's Medical Center 34 12 22 0

6 People's Television Network Incorporated 34 4 15 15

7 Center for International Trade Expositions and Missions 28 8 12 8

8 Philippine Retirement Authority 27 5 8 14


Total Number of

Recommendations

Fully

Implemented

Partially

Implemented

Not


9 Philippine Heart Center 25 8 10 7

10 Cultural Center of the Philippines 22 3 6 13

11 Technology Resource Center 18 2 9 7

12 Philippine Amusement and Gaming Corporation 12 8 3 1

13 National Kidney and Transplant Institute 11 8 2 1

14 Nayong Pilipino Foundation 11 6 2 3

15 Development Academy of the Philippines 9 3 4 2

16 Lung Center of the Philippines 9 4 4 1

17 Duty Free Philippines Corporation 7 4 1 2

18 Cottage Industry Technology Center 4 0 3 1

19 PITC Pharma, Inc. 4 0 0 4

20 Philippine Institute for Development Studies 3 1 1 1

21 Philippine International Trading Corporation 3 1 1 1

22 Philippine Institute of Traditional and Alternative Health Care 3 2 0 1

23 Philippine Center for Economic Development 2 1 1 0

24 Tourism Promotions Board 2 0 2 0

25 Boy Scouts of the Philippines 0 0 0 0

26 Girl Scouts of the Philippines 0 0 0 0

Total 650 151 233 266

Grand Total 2,932 920 1,094 918


Documents

2012 Annual Financial Report of Government-owned or ...€¦ · summarized/consolidated to provide readers an overview of the financial position and results of performance of the