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2009 Annual Audit Report

2009 Annual Audit Report

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Republic of the Philippines

COMMISSION ON AUDIT Commonwealth Avenue, Quezon City, Philippines


The Board of Directors Light Rail Transit Authority Pasay City We have audited the accompanying financial statements of the Light Rail Transit Authority, which comprise the balance sheet as at December 31, 2009, and the statements of income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the Philippines, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making these risks assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

LIGHT RAIL TRANSIT AUTHORITY BALANCE SHEET December 31, 2009 (With comparative figures as of December 31, 2008) (In Philippine Peso) Notes ASSETS Non-Current Assets Property and equipment Investments Other assets Total non-current assets Current Assets Cash and cash equivalents Receivables Inventories Prepayments Total current assets TOTAL ASSETS 2009 2008

5 6 7

47,944,271,060 216,501 3,100,048,734 51,044,536,295 783,040,401 347,106,009 1,122,415,124 1,909,980 2,254,471,514 53,299,007,809

48,051,752,508 216,501 366,539,967 48,418,508,976 1,239,123,903 482,118,676 948,551,865 88,048,719 2,757,843,163 51,176,352,139

8 9 10

LIABILITIES, NET OF CAPITAL DEFICIENCY Non-Current Liabilities Loans and advances Current Liabilities Payables Current portion of loans and advances Accrued interest payable Miscellaneous liabilities and deferred credits Total current liabilities TOTAL LIABILITIES CAPITAL DEFICIENCY




12 11 13 14

828,373,397 1,470,137,156 162,288,342 2,576,258,917 5,037,057,812 64,422,247,849 (11,123,240,040)

1,039,855,316 846,364,015 255,708,399 512,243,833 2,654,171,563 60,827,364,755 (9,651,012,616)




See accompanying Notes to Financial Statements.

LIGHT RAIL TRANSIT AUTHORITY STATEMENT OF INCOME For the year ended December 31, 2009 (With comparative figures for the year ended December 31, 2008) (In Philippine Peso) Notes RAIL REVENUE OPERATING EXPENSES Materials Overhead Power Maintenance of LRT System Personal services Maintenance and other operating expenses Depreciation Bad debts OPERATING LOSS OTHER INCOME ( EXPENSES) Foreign exchange gain(loss) Interest/bank charges Subsidy from the National Government Rental income Interest income Gain on disposal of assets Miscellaneous NET LOSS BEFORE TAX Income tax expense NET LOSS 21 22 15 2009 2,940,779,754 241,238,808 305,779,189 403,651,396 612,512,668 432,375,535 329,313,316 1,078,831,076 271,656 3,403,973,644 (463,193,890) 1,002,978,808 (1,758,240,404) 223,777,798 60,109,642 32,283,396 2,111,460 5,910,092 (431,069,208) (894,263,098) (894,263,098) ' 2008 2,769,801,140 205,730,679 298,228,213 488,814,042 351,636,177 391,613,582 346,647,981 1,332,029,244 13,023,111 3,427,723,029 (657,921,889) (10,257,526,980) (1,621,043,844) 559,910,693 55,638,550 30,246,665 8,393,084 (11,224,381,832) (11,882,303,721) (11,882,303,721)

19 20

See accompanying Notes to Financial Statements.

LIGHT RAIL TRANSIT AUTHORITY STATEMENT OF CHANGES IN EQUITY For the year ended December 31.985.616 3. beginning Prior .616 9 (154.985.139.227 adjustments Net loss Balance.431.824 2.263.878.040) (3.545.824 2.810.545.368 35.824 2. beginning Additions (deductions) Balance.beginning Settlement of disallowance Balance.940) (11. end DONATED SURPLUS Balance.545.431.878.882.368 35.045.098) (17.118.721) (15.135) 23.240.707.092 177.707. end CONTINGENT CAPITAL Balance. end APPRAISAL CAPITAL Balance.368 16 (15.881. beginning Adjustment to retained earnings Balance.651) (9. 2009 (With comparative figures for the year ended December 31.368 35.431.824 177. end CAPITAL DEFICIENCY 2009 2008 17 2.616) See accompanying Notes to Financial Statements. 2008) (In Philippine Peso) Notes PAID UP CAPITAL Balance.616 3.227 5 3. . end DEFICIT Balance.820) 23.878.651) (577.191) (894.890 (11.878.985.303.985.045. beginning Additions (deductions) Balance.

806 9.342.580.246) (1.598.214) 258.000.792 1.033.320 Rail revenue collections Subsidy from the National Government for the Line 1 North Extension Project Government subsidy for payment of right-of-way Rent received Interest received Cash receipts from non-rail revenue and from employees Miscellaneous income Cash advance for change fund Cash paid for collateral.933.559.239.442) (452.131.000.Principal Payment of BTR advances-Principal Payment of LBP/BTR .725.068) (3.528.647) (69.933.383) (202.550.780) (616.418 3.239.771.063.230) (4.389) 534.401 (52.806.050.289.678.762) 146.735) 169.903 See accompanying Notes to Financial Statements.050 (197.461) (37.473.255.229.588.234.502) 1.123.634.894.Interest Net cash provided by (used in) financing activities NET INCREASE IN CASH & CASH EQUIVALENTS CASH & CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH & CASH EQUIVALENTS AT THE END OF THE YEAR (125.524.921. PAIF.092.927) (1.000) ( (524.800.254.802 60.434) (63.818.799.846) (1.650) (9.153) (1.612.000 66.160.481.590.815 2.824.586.539.123.728.241.543. 2008) (In Philippine Peso) 2009 CASH FLOWS FROM OPERATING ACTIVITIES 2008 2.000) (71.769.521.383.325.971 1.943) (1.590) (1.803 112.443.LIGHT RAIL TRANSIT AUTHORITY STATEMENT OF CASH FLOWS For the year ended December 31.150.736.903 783.586.979.754 48.719) 1.710. .083.202 ( (131.940.447) Proceeds of long-term borrowings Payment of LBP loan .204 5.844) (95.637.177 (456.511) (268.584.040 Investments in : LRT 1 Capacity Expansion Project Cavite Extension Project Computerization Project Modernization/Rehabilitation Project ISO Project Purchase of : Various spare parts Machinery & equipment Tools and equipment Additions to / renovations of buildings and structures Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES (498.500 200.040.817 700.165) (67.371) (443.111 1.483.758) (386.798) (352.934) (5.915.119) (24.853.665 519.936) (636.927. Cavite Extension Cash paid to suppliers and employees Cash paid for maintenance contract Cash paid for salaries & wages Cash paid for taxes Transfer of funds from (to) Line 2 Purchase of office supplies Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES 2.670) (86.206) 1.798 27. 2009 (With comparative figures for the year ended December 31.295) (1.372.827.251) (72.000 (2.

Pasay City.01 million by 1. operate. CORPORATE INFORMATION The Light Rail Transit Authority (LRTA) was created on July 12. Despite the influx of riders over the past 10 years. 7 . 2. On the other hand. appointed by the President of the Philippines. Its powers and functions are vested and exercised by the Board of Directors composed of nine (9) members.8 million passengers in 1994. The Authority was given the presidential mandate to primarily construct. It registered an all time high ridership.86 million due to the postponement of classes caused by the outbreak of A(H1N1) and cancellation of classes because of typhoons Ondoy and Pepeng. maintain and/or lease the light rail transit system in the Philippines. Its principal office is located at the LRTA Compound. It is headed by an Administrator. load factor is maintained at comfortable levels for both lines. Aurora Boulevard (formerly Tramo). In a span of 10 years. 1982 and July 7. chaired by the Secretary of the Department of Transportation and Communication (DOTC). respectively.65 %. beating its old record of 145. 603. the Line 1 System (Baclaran – Monumento Route) attained 149. LRTA is a government-owned and controlled corporation (GOCC) with an authorized capital stock of P3 billion. which is 6% higher than last year’s 58. 1980 under Executive Order (EO) No.44 million ridership surpassing its target of 147. LRTA did not increase its fare but maintained the current fare rate at a minimum of P12 to a maximum of P15 per passenger. 1987.LIGHT RAIL TRANSIT AUTHORITY NOTES TO FINANCIAL STATEMENTS (In Philippine Peso) 1. 830 and EO No. assisted by a Deputy Administrator and four (4) Department Managers. ridership in Line 1 grew by almost 47 million or by 6%. as amended by EO No. 210 dated September 22. However. STATUS OF OPERATIONS Railway Operations During the year. seven (7) ex-officio members and one (1) representative from the private sector. Metro Manila.59 million. it fell short of target of 62.09 million. Even at the height of the economic crisis. ridership for Line 2 System (SantolanPasig-Recto Route) posted 62.

LRT Line 1 North Extension Project (Closing the Loop).Recto Route). which involves the extension of the existing LRT Line 1 southward by 11. which involves the construction of additional four (4) stations from Baclaran Stations to Terminal 3 of the Ninoy Aquino International Airport (NAIA) with a total of 6. • • • • 3. eastern extension of LRT Line 2. elevated line from Monumento Station of Line 1 to EDSA North Avenue Station. which involves the construction of 5. posted an increase of 8% as compared with the previous year.7 kms. The Authority operates LRT Line 1 (Baclaran-Monumento Route) and LRT Line 2 (Santolan. Manila Line 1 Airport Extension. These are presented in Philippines pesos and all values are rounded to the nearest peso. as follows: • LRT Line 1 Capacity Expansion Project (Phase 2) Package. and so with non-rail revenue which. Pasig. which involves the acquisition and installation of air-conditioned trains and upgrading of equipment. stretch.71 kms. except that these exclude depreciation expenses on assets pertaining to that portion of Lines 1 and 2 which were funded out of the subsidies received by LRTA from 8 .22 kms. which involves the construction of 4 kms. LRT Line 1 South Extension Project or the Cavite Extension Project. BASIS OF FINANCIAL STATEMENTS PREPARATION The financial statements were prepared in conformity with accounting principles generally accepted in the Philippines. The Authority’s Statements of Income for CY 2009 and 2008 reflect the results of operation of both Lines 1 and 2. likewise. Railway Projects Various projects are continuously being carried out as part of LRTA’s commitment to intensify its efforts as the lead agency in the Rail Transport Sector.Rail revenue has been steadily increasing at an average of 12% yearly. LRT Line 2 East Extension Project.

except those pertaining to Line 1 Operations which are stated at appraised value. Property and Equipment Property and equipment. Cost also includes capitalized borrowing costs such as interest charges and other costs incurred in connection with the borrowing of funds. These assets are not included in LRTA’s financial statements. are normally charged to operations in the period the costs are incurred. as well as exchange differences arising from foreign currency borrowings used to finance these assets. Land and land improvements are measured at cost. under the Modified Disbursement Scheme (Note 18). Instead. such as repairs and maintenance. except for land and land improvements. taxes and fees related to projects are recognized as revenues. Subsequent expenditures after the asset has been put into operation. by reference to the principal amount outstanding and at the interest rate applicable. Interest income on special and time deposits is accrued on a time proportion basis.the National Government. In situations where it can be clearly demonstrated that the expenditures have resulted in an increase in future economic benefits expected to be obtained from the use of the asset beyond its originally assessed standard of performance. Income/Expense Recognition The accrual basis of accounting is applied in the determination of income and expenses. released thru the DOTC. 9 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these financial statements. Direct cash subsidies received from the National Government to support LRTA projects and direct tax subsidies granted on import duties. these are recorded in separate sets of books of accounts and consolidated in the financial statements of the DOTC. The initial cost of property and equipment consists of its purchase price and any costs directly attributable in bringing the asset to its working condition and location for its intended use. the expenditures are capitalized as additional costs of the assets. are stated at cost less accumulated depreciation. 4.

Equipment and Tools Line 2 Operations Civil Works Viaduct / Station Trackworks Depot Equipment Fare Collection Power Supply / Catenary Signalling Telecommunications Workshop Equipment Rolling Stocks (plus spares) Estimated No. Fixtures. When assets are sold or retired.Major spare parts and stand by equipment intended for projects or those that can be used only in connection with an item of property and equipment are accounted for as property and equipment. internal technical evaluation and experience with similar assets and issuances or policies on the matter by the Commission on Audit. their costs and accumulated depreciation are eliminated from the accounts and any gain or loss resulting from their disposal is included in the Statement of Income of such period. In addition. 10 . of Years to Depreciate 50 50 50 50 25 20 15 15 5 to 15 50 50 50 5 30 10 5 5 30 The useful lives of the property and equipment are based on the period over which the assets are expected to be available for use. Depreciation is computed on a straight-line basis over the following estimated useful lives of the assets: Major Asset Category Line 1 Operations Building and Structures Civil & Architectural Stations & Depots Depot Equipment Electromechanical Equipment Trackwork Catenary Rolling Stock Signalling Traction Power Telecommunications Furniture. the estimation of the useful lives of these assets is based on collective assessment of industry practice. The estimated useful lives of these properties are reviewed periodically and are updated if expectations differ from previous estimates.

construction or production of a qualifying asset. Depreciation is taken up when the relevant assets are completed and put into operational use and/or after the projects have been reclassified to their appropriate asset accounts. Allowance for doubtful accounts is established at a certain percentage of the receivables taking into consideration the age of the receivables. The Authority considers all highly liquid instruments that are readily convertible to known amounts of cash with original maturities of three months or less from the date of acquisition as cash equivalents. net of allowance for doubtful accounts. Borrowing Costs Borrowing costs are generally expensed as incurred. This includes cost of construction. Excluded from this account are the indirect cash subsidies received for LRT Projects which are shown under Other Assets account. Transactions in foreign currencies are initially recorded in the functional currency at the rate of exchange ruling at the date of the transaction. Cash and Cash Equivalents Cash includes cash on hand and in banks. plant and equipment and other direct costs. except for foreign exchange differences that qualify as capitalizable borrowing costs during construction period. All differences are taken to the statement of income. Borrowing costs include interest charges.Construction-in-Progress Construction-in-progress is stated at cost. Capitalization of borrowing costs commences when the activities necessary to prepare the asset for its intended use are in progress and expenditures and borrowing costs are being incurred. Receivables Receivables are stated at face value. as shown on the next page. Foreign Currency Translation The functional and presentation currency is the Philippine peso. These costs are capitalized until the assets are ready for their intended use. 11 . Borrowing costs are capitalized if they are directly attributable to the acquisition. guarantee fees and other costs incurred in connection with the borrowing of funds used to finance the projects. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange at the balance sheet date.

The cost of inventories acquired through Letters of Credit comprises its invoice cost. These estimates and assumptions are based on Management’s evaluation of relevant facts and circumstances as of the date of the financial statements. write-off experience and specific identification of the account. Actual results may differ from these estimates. Fixtures. Inventories Inventories are stated at cost determined using the moving-average method. bank charges. Equipment. Books& Tools Land and Land Improvements Buildings and Structures Construction in Progress In Transit Total 12 . import duties. estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Spare parts and servicing equipment are usually carried as inventory and recognized in the Statement of Income as consumed. Use of Estimates The preparation of financial statements requires Management to make judgments. freight charges. taxes and other fees. brokerage fees. These are classified as regular inventory stock items shown under the Inventories account. 5. PROPERTY AND EQUIPMENT The roll-forward analysis of this account is as follows: Electromechanical and Transportation Equipment (Trains) Furniture.Number of Years Over 1 year to 2 years Over 2 years to 3 years Over 3 years to 4 years Over 4 years to 5 years Over 5 years to 7 years Over7 years to 8 years Over 8 years to 9 years Over 10 years Percent 10 15 20 25 50 75 90 100 The percentages are based on a collective assessment of historical collection.

052.967.270.574.COST January 1.546 Total property and equipment 9.564 3.094. 2009 Carrying Amount December 31.376 354.625.521. 2008 Carrying Amount December 31.034.590 48.558) 10.143 (51.055 11.787.107.497 Electromechanical and Transportation Equipment (Trains) 22.293 1.944.462.351.499.213 24. 2008 Buildings and Structures Construction in Progress In Transit Total 3.172 15. The difference of P3.059.162.925 3.949 5.590 1.300 91. Books& Tools 15.625.076 35.363 13.552.652.675 6.503.090 1.162.752.733.011. as follows: Property and equipment Land and land improvements Railways Trains Electrification.174.066 32.918.402 between the original cost of P132.450 1.607 8.324 340.361 3.057 1.585 9.321.256.049.536.536.814.760.822 62.497.926 59.967.290.050 29.493.510.433 29.585) - 59.678.100.752.088.108. Equipment.118.651 5.392.587.557.777.597) 6.884 - 11. 2009 Provision Adjustments December 31.378.351.555.462.884.737 1.510. are stated at appraised value based on the Appraisal Report dated June 14.186 1.041 5. 2009 ACCUMULATED DEPRECIATION January 1.310 3.139.324.271.094.626 780.308 1.098 - 1.177 9. 2009 3. 2008 ACCUMULATED DEPRECIATION January 1.006.279 699.917.421.041 (13.394.451 4.009 29.585 (10.266 1.851.831.647.505. Fixtures.052.675.133 358.507.536.081.015.510.425. 465.047.634 12.113 13 .229.752.078.105 3.059.940.119.101 55.111.931.401.727.678.267 3.186 5. 1997 prepared by Asian Appraisal Company Inc.536.102.896 4.603 172.062 15.849.354 995.447.736.000 was credited to Appraisal Capital.796 6.139.548 Furniture.692.590. Property and equipment acquired thru indirect subsidies released thru the DOTC are not included in the above amounts.277.186 3.186 3. 2009 Additions December 31.508 3.565.808.517 1.167.098 1.432.740 7.358 199.573.180.901.844 122.585 48.574.120.652.518 4. power and energy structures Office building Machinery and equipment Construction in progress Line 1 North Extension Project Line 1 Capacity Expansion Project Line 2 System Project 2.023.626 21.111.354 7.754 3.912.318.536.119. 2008 Provision December 31.576.654 8.686.332.300 47.467.474.300 91.945 8.543.915.361 120.729.565.120.598 and the appraised value of P3.173.186 Land and Land Improvements pertaining to Line 1 Operations.857.822 951.761. with an aggregate acquisition cost of P132.574.921.120. 2008 Additions/Reclassifications December 31.012.337 213.917.847.438 14.378.281.625.787.120.677.807.272 8.509.203.733 6.063.652.262 60.360 3.444 14.051.796.884 10.615.598.944.120.909.299 21.363 10.101 4.422.728.462.005.684..577.950 672.603 4.505.733.060 Land and Land Improvements COST January 1.401.781 14.237 262.980.555.598.107.

152 51.500 216.501 The ownership of MTOI was transferred to the LRTA on June 30. aggregating P3.721.500.A substantial portion of the acquisition cost of Land used for Line 2 operations.032. (MTOI) Less: Allowance for Impairment Philippine Long Distance Telephone Company 2009 14.704.386. A notice of dissolution was filed by LRTA with the Securities and Exchange Commission (SEC) on March 12. 2000. with significant movements in property valuation.501 2008 14.607 687.783 51.000) 1 216.318 89.001 (14. The fair market value of all landholdings owned by LRTA.500. PPE – In Process includes costs of various LRT projects which shall be classified to the appropriate accounts upon final completion and acceptance of the projects.509.500. 6.949 89.149.341.500.255 2008 112.000) 1 216.940.255 Line 1 North Extension Project Fund (Note 14) Line 1 South Extension Project Fund Guaranty Deposits Collateral for LRTA Cases Passenger Accident Insurance Fund (PAIF) 14 . shall be adjusted based on the appraisal to be conducted by an independent appraiser. is not yet recorded in the LRTA books as the funds used to acquire them came from the subsidy released directly to DOTC (see Note 18).333. INVESTMENTS This account consists of investments in: Metro Transit Organization Inc. LRTA then assumed its operations and maintenance until MTOI had ceased operations on October 1. 2007.231.622 84.057. 7. OTHER ASSETS This account consists of the following: 2009 2.341. which is still pending to date. 1989 due to a wild strike which resulted in the paralyzation of the operations of the LRT Line 1 System.574.537 92.500 216.001 (14.

15 .458 478.586 596.048.775 281.110.234 3.430 1.703 274.681.846 3.652.790.989 366.575.401 2008 13. Collateral for LRTA Cases includes collateral put up as appeal bonds on various pending labor cases filed by former employees of MTOI as discussed in Note 24.444.485. CASH AND CASH EQUIVALENTS This account consists of the following: 2009 Cash on Hand Collecting Officers Disbursing Officers Cash in Bank Local Currency Foreign Currency Time Deposits – Foreign Currency Cash Equivalents Time Deposits-Local Currency 17.100.605.137.123.569.967 Line 1 North Extension and South Extension Project Funds represent the balances of the subsidies received from the National Government intended for the projects. 8. Guaranty Deposits include guarantee deposit for the Principal Collateralized Interest Reduction Bond (PCIRB) plus other charges in the amount of P63.Miscellaneous Assets 29.368 3.744 3.637 22.903 Cash on Hand -Collecting Officers consists of undeposited year-end collections from December 29 to 17.775 603.723.902.240 783.379 3. These are deposited under a separate account and interest accruing therefrom are accounted as LRTA’s income.734 29.245. while Passenger Accident Insurance Fund represents cash set up to cover future expenses of passengers in case of accident.239. Time Deposits – Local Currency are recorded at buying price. Cash in Bank-Local Currency includes savings and current accounts maintained by LRT Lines 1 and 2 Operations and the Project Management Office – Line 2 intended for operational requirements.066 5.539.874. Other transactions pertaining to these funds are not included in LRTA’s financial statements but instead are consolidated in DOTC’s financial statements (see Notes 3 and 18).887 618.837 3.212 as required in the bond conversion scheme of the Lloyds Loans (see Note 11) which was converted into bonds.

10.809.304 38.676 Due from Operating Units represents fund transfers and advances to the Line 1 South Extension and Capacity Expansion (CAPEX) Phase II Projects. BIR-Input Tax covers input taxes recognized by LRTA on local purchase of goods and services which are deductible from its output taxes on income from rental or lease of property.124 2008 802.902 366.368 627.033.106.500 627.537.074 (19.894.932 2. 16 .269.9.387 948.003 113.315 4. RECEIVABLES This account consists of the following: 2009 Due from Operating Units Line 1 South Extension Line 1 CAPEX Phase II BIR-Input Tax Disallowances Due from MTOI Due from Other Government Agencies Miscellaneous Receivables Allowance for Doubtful Accounts 174.418.729 35.302 501.415.042 81.816.525. Disallowances consists of disallowances booked up as contingent asset under the Old Government Chart of Accounts with a corresponding credit to Contingent Capital.960 6.431.625 112.777 142.118.738.871.638 (19.220 2.428.122.551.367 697.349 2.065) 347.564.865 Spare Parts Inventory consists of regular inventory stock items intended for the repair and maintenance of rolling stocks and other supplies and materials for use in the operations of the LRT system.431. brokerage fees.458.925. Miscellaneous Receivables substantially consists of amounts due from advertising and space rental and interest receivable.857.416 35. which are based on landed cost (invoice cost plus bank negotiation charges.304 36.331.089. INVENTORIES This account consists of the following: Spare Parts Inventory Inventories In Transit Office Supplies Other Supplies Inventory 2009 1. while Due from MTOI are advances to cover expenses in its dissolution which is still pending with the Securities and Exchange Commission.009 2008 311.962) 482.363.352 959. Inventories In Transit pertains to inventories acquired by the Authority through Letters of Credit.

These are temporarily lodged to this account pending receipt but will be subsequently reclassified to the proper inventory account when the inventory items have been fully delivered and valued.859.000 US$ 15.567.431.997 373.052. Stations and Terminals and all other structures needed for the Light Rail System.000 18.277 242.418 253.381.610.430 59.190. National Government – Bond Conversion.000 4.freight charges.800. the construction of the LRT Depot.192 Bureau of the Treasury (BTR) Advances.040.000 17 .014 60.026.364.697.141.610 172.559 128. 11.300 44.518 562. taxes and fees and other bank charges). (JBIC)/OECF Belgian State Loan .770.000 ) (328.400 500.859 14.000.557.DOF (BC Rehabilitation I) . This pertains to advances by the BTR for the amortization of principal and interest on foreign loans incurred for LRT Line I which could not be financed by corporate funds.222. LOANS AND ADVANCES Substantially.193.240 1.777 43.394.452.323.015) 40.000.881. Significant sources are foreign loans requiring repayment in currencies other than the Philippine peso.958.972. This pertains to the debt buy-back of restructured Lloyds Loan in 1992 which was converted into bonds.385.966. all projects of the Authority are funded through loan financing.207 (846. as well as other related projects.908.877.037 2008 12. primarily in US dollars. the Automated Fare Collection System Project (AFCS).748 41.168. The proceeds of the loans were utilized principally for the acquisition of Light Rail Vehicles.708 595.337. import duties.Foreign 17.363 584. as follows: Principal Collateralized Interest Reduction Bond (PCIRB) New Money Bond Conversion Total US$ 11.742 201.064.193 (1.621. Details are as follows: 2009 Domestic Loans BTR Advances National Government-Bond Conversion Land Bank of the Philippines (LBP) STCF Loan Converted into Treasury Bonds Foreign Loans Japan Bank for International Coop.855.156) 59.977.800.528.939 511.040.141.000 18.327.125.824 355.898 161.464.173.DOF (BC Rehabilitation II) Fortis Bank (Modernization) Natexis Banque (Credit Nationale) Total Public Debt – Loans & Advances Current Portion – Domestic .

with an initial amount of P10 Million.000. utilized for the Metro Manila Line 1 Capacity Expansion Project. 1996 with a principal amount not exceeding Y 24. plus 2% DOF relending rate. Land Bank of the Philippines (LBP).000. 2000.262. including LRT Line 1 Capacity Expansion and LRT 2 construction.000.795. Relative thereto. These bonds carry a low fixed rate of interest.000. It carries an interest rate of three percent (3%) per annum on the outstanding amount. the LBP shall service the daily collection of revenues and shall be directly deposited to LRTA account with LBP.3% for consulting services (Principal II) and 2. a Subsidiary Loan Agreement was signed on October 31. Phase I with a principal amount not exceeding Yen 9.000.575. plus 1. Interest rate shall be paid at the rate of 3% per annum. is maintained in a separate account funded by at least 10% of total daily revenues which is shown under Cash in Bank – Local Currency account. shall be utilized to pay the principal at maturity date. The proceeds of the guarantee deposit.000. The increase in the LBP loan was due to additional loan made during the year. Repayment started in December 2004 in the amount of Y 227. including six (6) years grace period. On April 7. 2000.000. LRTA entered into Loan Agreement (PH-P137) with the JBIC (formerly OECF) in an amount not exceeding Y 1. The Philippine Government entered into another Loan Agreement (PH-P148) with JBIC on December 20.481. plus 1 % National Government service fee.712.7% for non – consulting services (Principal I). to cover operational expenses not covered by corporate funds.212 as guarantee deposit as required in the bond conversion scheme (Note 7). 18 . LRTA paid P 63. It carries an interest rate of 2.259. A sinking fund. another Loan Agreement (PH-P211) was entered into by the Philippine Government with the JBIC for the LRT Line 1 Capacity Expansion Project (Phase II) with a principal amount not exceeding Y 22. 1993. JBIC Loan Agreement ( PH – P 167) intended for the LRT Line 2 Project was entered into on March 26. This is a P1 Billion Omnibus Credit Line Facility (OCL) granted in 2006 from the previous P 500 Million LC/TR line in 2005. at a London Interbank Offered Rate (LIBOR) of interest plus 13/16 of one percent (1%). 1994.9% relending rate. Japan Bank for International Cooperation (JBIC). Under this Loan. including interest and other earnings. Interest of this loan shall be paid semi-annually.301 and every year thereafter.Under the PCIRB. earmarked for Engineering Services for Metro Manila LRT Network Expansion Project. The New Money Bonds have a term of seventeen (17) years. On December 16.

French Protocol.000. 1996. It carries the same interest rate as PH – P 167 plus 1 % relending rate. repayable in nineteen (19) annual installments starting December 31.021 Million and a French Treasury Loan of FF 96. LRTA has put up an equivalent amount as counterpart with a maturity of 30 years. The first loan (Rehabilitation Project Phase I) is interest free. is repayable within nineteen (19) years in thirty-eight (38) equal and successive half yearly installments and bears interest at the rate of one point five percent (1. Another Subsidiary Loan Agreement was entered to finance the rehabilitation of rolling stocks (LRT Line 1) on February 10. Department of Finance (Belgian State Loan – Rehabilitation).834 Million intended to finance the purchase of French goods and services relating to the Automated Fare Collection System Project. for a treasury loan of a maximum amount of FF 33.000 . 1997. maturing in thirty (30) years with a grace period of (10) years up to year 2013. The second loan (Rehabilitation of Rolling Stocks) is also non-interest bearing. 19 . amounting to BFR 131. 1995. LRTA entered into a contract with Natexis Banque (formerly Credit Nationale) on August 30.000.344.5%) per annum. computed on the disbursed and not yet repaid amount. The proceeds were utilized for the Rehabilitation of LRT Line 1. by virtue of which the French Government has provided credit facilities to the Philippines amounting to FF 162. Relative to these mixed credits.018 Million. 1997 with a principal amount not exceeding Y 26. The Government of the French Republic and the Government of the Republic of the Philippines signed a Financial Protocol on December 18. Each of the loan. 2006.000. The loan is divided in successive portions. Belgian State Loan. which has duration of twenty-five (25) years. This represents the peso equivalent of the foreign loans granted by the Government of Belgium.670.051 Million including a French Treasury grant of FF 2. each of which corresponds to the drawings made by the Credit Nationale during a calendar quarter.JBIC Loan Agreement ( PH – P 171) earmarked for Line 2 Project was entered into on October 14. A Subsidiary Loan Agreement was entered into with DOF in October 1992 for a Belgian State Loan amounting to BFR 150.

836.411 321. PHILHEALTH.857 496.867 162. Quezon City. Pag – IBIG and other National Government Agencies 13.12.697. MISCELLANEOUS LIABILITIES AND DEFERRED CREDITS This account consists of the following: Due to Line 1 North Extension Project (Note 7) Due to Other Funds 20 2009 2.227 1.316 Due to LGUs represents unpaid real property taxes on various real estate properties owned by LRTA located in Manila. LRTA has withheld payment of the said real property taxes since LRTA is similar to MIAA in terms of nature.081 14.333 1.) exempting MIAA from payment of real estate taxes on airport lands and buildings.399 14.855.238.792 53.592.526. in view of the decision of the Supreme Court in GR No.039.799 1.893 828.373. ACCRUED INTEREST PAYABLE This represents interest due on various loans. manner and purpose of creation.149.538 2.857 1.855. while Due to PNB refers to accrued interest due to the Philippine National Bank on account of Swiss Transfer Credit Facility (STCF) loan in 1992.877 9.597 15. However.930.436 14.082.256. Caloocan and Pasay.216.863. PAYABLES This account includes: Due to Local Government Units (LGUs) Accounts Payable – Trade Due to BIR Due to Officers and Employees Due to PNB Miscellaneous 2009 676. et.633 2008 112.877 2.606 363.589 1.417 255.947.032.362.397 2008 676. 155650 (MIAA vs. Court of Appeals.802 3.631. Miscellaneous Payables consist of mandatory contributions to GSIS.274.069.729.708.411 110. as follows: 2009 JBIC STCF 12% Peso Denominated T-Bonds Belgian State Loan ( Modernization Project) French Protocol Bond Conversion 154.947.007.007 .342 2008 200.863.238. ECC. Due to BIR represents output tax.622 346.216.934 15. al.

311 (19.799 5.833 Due to Other Funds substantially pertains to the amount due to Line 2 Operations of P265.701) (553.843 placed as short-term investment in Land Bank’s High Yield Savings Account shown under cash and cash equivalents (see Note 8).754 2.532.229 19.093.962.377. RAIL REVENUE This account represents: Sales Sales Discount Sales Refund 2009 2008 (584.778.248 8.647.940.339.651.298.080 (6.811) - .243.180 186.140 Sales Discount represents Senior Citizens’ discounts while Sales Refund covers refunds on account of train delays or interruptions in revenue services and traffic breakdown. 15.113 512.884. Guaranty Deposits Payable represents the mandatory guarantee deposits on loans obtained from foreign creditor banks and retention fee for the construction of Line 1 Capacity Expansion Project.337) (37.862 203.670.214.859.838.258.090 108.634) (4.951.769.407 218.527) 21 Reversal of Accruals Direct Operating Cost .306) 2.564.044 3.862 218. 16.034 2.010 2.582 2.779.879.801.027 3.453) (2.560 3.917 36.763. PRIOR-PERIOD ADJUSTMENTS Adjustments in prior year’s income and expenses are summarized below: 2009 45.339) 2.565) (1.624 (817.375) (5.576.491. Phase II.607 4.Guaranty Deposits Payable Deferred Credits Bidders Bonds Other Depository Liabilities 51.Overhead Direct Operating Cost-Power Interest Income Repairs and Maintenance MOOE Rental/ Advertising Income Interest Expense – Loans and Advances Depreciation Expense BTR Adjustment 2008 1.266.087.

616) (83. taxes and fees of P 86.139.890 Reversal of Accruals substantially pertains to the reversal of the accrued interest expenses on STCF loan.921 2.546.Personnel Services Office Supplies Direct Operating Cost .Loans and Advances represents unrecorded interest/adjustments on interest expense per reconciliation with the Bureau of the Treasury records.Materials Rail Revenue DOC. As of December 31. total subsidy received under Fund 101 amounted to P4.424.669. 17.191) 1. Adjustment in Depreciation Expense represents unrecorded depreciation.700 and tax subsidy on import duties. SUBSIDIES UNDER MODIFIED DISBURSEMENT SCHEME (MDS) Separate sets of books of accounts under the Modified Disbursement Scheme (MDS) are maintained for indirect subsidies received by LRTA from the National Government.647.861) (577. released thru the Department of Transportation and Communications (DOTC).873. The transactions pertaining to the utilization of these indirect subsidies are not included in LRTA’s books of accounts since the subsidies are built-in in the DOTC budget.839.925.459. balances under Fund 101 and Fund 102 books are as follows: 22 . PAID-UP CAPITAL This pertains to the National Government’s paid up subscription in LRTA per EOs 603 and 830 which includes advances of P894. There is a proposed bill increasing the capitalization of LRTA from P3 billion to P300 billion.Maintenance of LRT System Miscellaneous Income (195. consisting of cash subsidy of P 4.242 10.810.681. During the year. The transactions are instead consolidated in the financial statements of DOTC.034. while adjustment on Interest Expense. 2009. 18. pursuant to the Special Provision under the General Appropriations Act.610 41.953 23. All releases to LRTA in the current as well as prior years pertaining to projects included in the DOTC budget will be equitized upon the passage of a law increasing the capitalization of LRTA.520 2.548.173.000 converted into equity.

880.918.973 23 .411.159.252 3.2009 ASSETS Non-Current Assets Property and equipment Land and land improvements Railways Trains Electrification.044.544.113 91.795.376 354.797.270.638.010 691.199 908.787.330.324 340.789 430.279 699.809 EQUITY AND LIABILITIES EQUITY LIABILITIES Accounts payable Guaranty deposits payable Due to BIR Due to National Government Agency Other payables TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES 707.669 952.761.686.315.023.625.209.952 12.912.300 3.378 5.177 240.340.153.724 13.237 262.809 12.100 2.851.509.950 672.451 4.133 358.055.064.338.492 382.706.108.797.536 677.313.503.071.088.760.156 7.329 299.944 8.518 4.289 2.358 199.267 3.256. power and energy structures Office building Machinery and equipment Construction in progress Line 1 North Extension Project Line 1 Capacity Expansion Project Line 2 System Project Total property and equipment Investments Other assets Total non-current assets Current Assets Cash & cash equivalents Receivables Due from National Government Due from LRTA Advances to contractors 260.073.786.057 1.281.866.675 6.546 9.836 8.168 1.980.948 13.381 38.300 91.946.469.888.103.223.213 24.538 1.543.622.162.564 354.025.251.392.668 995.754 2008 3.459.243.571.421.201 7.411.493.526.149 2.566 1.901.255.313.865 9.394.834.808.447.775.866.097.499.199 15.487 9.857.289 2.625.574.799 Total current assets TOTAL ASSETS 707.124 274.

494.494 31.272.316 2008 84. PERSONAL SERVICES This consists of the following: Salaries and Wages Additional Compensation Social Security Insurance Premiums Overtime & Night Pay Cash Gift & Year End Bonus Other Personnel Benefits Allowances Honoraria Terminal Pay Longevity Pay Provident Fund 2009 261.937.618.017.264 28.535 2008 236.984.613.375.353 181.502.496 2.022 1.975.482.788 3.726 154.244.355 5.358.114.477 10.045 97.448 30.650 2.19.981 Other Maintenance and Operating Expenses include additional personnel benefits such as employee medical assistance and CNA allowance which were charged to MOOE per 2009 Corporate Operating Budget approved by the Department of Budget and Management.482.444 336.645 71.472. Duties & Fees Professional Services Other Maintenance & Operating Expenses Fidelity Bond & Insurance Premiums Repair & Maintenance Supplies & Materials Training & Seminar Commitment Fees & Other Charges Communication Services Auditing Expenses Representation Expenses Extraordinary Expenses Travel Expenses Advertising Expenses Subscription Expenses Transportation & Delivery Expenses Miscellaneous Expenses 80.277.592.666 33.917.819.543.741 5.959 13.000 1.313.171 34.753 25.026 18.201.506 54.994.816.700.180.432.000 1.943.044.932.024 67.337 36.420.502 11.645.278.643 354.033.464 6.642.505.825 2.157.561 82.372 193.158 391.863 197.721 4.658 4.662.647.523 3.286 2.059 24.002.825 102.459.822 169.513 329.592 346.238 8.580.461 20.912 1.582 20.307.560 28.269.278 95.000 432.143 5.154 16.061 30.569 627. MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE) This account consists of the following: 2009 Taxes.975.737 2. 24 .100 3.

22.002. CONTRACTED SERVICES The Authority hired the services of contractual employees to augment existing permanent personnel for its railway operations.356 to a US dollar as compared to P 47. 24. 25 . The Authority recognized the propriety of PNCC’s claim but has withheld payment due to the audit disallowance of P30.485 on December 31.526. FOREIGN EXCHANGE GAIN (LOSS) The foreign exchange gain of P 1.808 in 2009 was attributed to the strengthening of the peso at year – end at P 46. OTHER MATTERS The Authority is currently involved in various legal proceedings. taxes and fees related to projects. On the other hand.980 in 2008 was due to the weakening of the peso against the US dollar currency.4B contract for LRTA Line 1 Project in 1980. 23.1 Recovery arbitration instituted by the Philippine National Construction Corporation (PNCC).978. this excludes indirect cash subsidy and tax subsidy released thru the DOTC. Below are the possible contingent claims: 24. SUBSIDY FROM THE NATIONAL GOVERNMENT This account represents cash subsidy received from the National Government and tax subsidy granted on import duties. no provision for any liability has been set up to cover these contingencies. Management and its legal counsel believe that the outcome of these claims and lawsuits would not have a material effect on the current year’s financial statements.034 M representing unpaid balance out of the P1. 2008. PNCC has an outstanding claim from LRTA amounting to P13. However.257. However. The estimates of the probable costs for the resolution of these claims have been made in consultation with the counsel handling the defense on these matters and based on an analysis of potential results. recorded under the MDS (see Note 18).6M representing overpriced cost of the project.21. foreign exchange loss of P 10.

2000. Several cases were filed by former employees of MTOI as a result of their termination from service asking for payment of backwages. (MTOI) to manage. While the NLRC is the arbiter of disputes between the management and workers in private firms. Malou B.47 Compromise discussions underway. Liscano. P 5. P 3. The Appellate Court ruled that labor matters involving Government-Owned and Contolled Corporations (GOCCs) are governed by Civil Service rules and not the Labor Code. 01101871 26 . operate and maintain the LRT Line 1 on June 30.3 Line 2 Expropriation Cases Case Title Status Appraisal Report already submitted by the Board to the court. Branch 71 Pasig SCA No. Finance Manager recommending that the said balance be released. it does not have jurisdiction over LRTA.00 Inter – Office Memo dated January 8. On July 25. 24. benefits. the rank and file employees of MTOI.2 Labor cases The LRTA entered into a management contract with Metro Transit Organization.205. 2010 for Ms.Farming Incorporated RTC Manila Branch 26 SCA No. which ordered LRTA to pay P229 million in backwages and separation pay. 03-108638 Bangko Filipino & Bangko Central ng Pilipinas RTC Branch 42 Mla SCA No. 2008.D.348.847. the Court of Appeals ruled that the National Labor Relations Commission (NLRC) does not have jurisdiction over the cases filed by 211 workers dismissed in 2000. Ayala Life Assurance Incorporated RTC. 2009 ordering the LRTA to release the balance of the just compensation of P6.021.Said disallowance was affirmed with finality by COA in its Decision No. Nomination of Board of commisioners. separation pay.60 LRTA received an order dated November 27. who were allowed to continue their employment with LRTA. Inc. 1989. etc.397. 24. In a recent decision. exemplary damages. went on wild strike causing the paralyzation of the operation of the entire LRT Line 1 System.845.2326 A. 2008-037 dated April 18. a GOCC.

SCA No.869.800 Sps. RTC Br 34 Manila SCA No. 00-99205 Cruzvale.00 24. Corpus RTC Br. P 35.000. P6. Inc. (excess) P 5.056. Respondents are willing to accept LRTA’s original offer at zonal valuation. 08-0252 Br.079.00 Pending in court. P 42. 28 Manila SCA No.131.00 For final payment.Guidote Mercantile Corporation RTC Branch 52. 26 Mla.4 Line 1 South Expropriation Proceedings Case Title Status Case subject of compromise agreement.936. Et Al. P 17. 00-2205 Spouses Juan Carlos Ireneo T. 101.00 Commissioner’s Report submitted to court for resolution. RTC Br.585. Inc. 000. Et. 00-9906 Judge Romulo Lopez Hector Corpuz/Ricardo Bolipata and Elenita M. 01101326 Heirs of Carmen Corpus Villanueva.65 For payment of the affected property. SCA No. Danilo and Corazon Ragasa SCA No. Quezon City. 101. Quezon City.000. Q -0042387 Approved Compromise Agreement between LRTA and Cruzvale. SCA No. Q -0042387 Golden Mile Realty Devt. With deposit in LBP in the amount of P 7. Qimson. Al. one of the owners of the subject property expressing her willingness to amicably settle the case.60 Spouses Florentio S.621.000.13 Appraisal Report already submitted by the Board of Commissioners. 274. SCA No. 00-99204 Pending in court.772. P 2. 33 Manila SCA No. Inc. 01-102216 Centillion Holdings.326.446. P 65. 2010 was received by LRTA from Elenita Corpus Bolipata. RTC Br.513.536. Beltran RTC Br.00 A letter dated January 29. P 1. RTC Br. Beltran and Leticia Y. Parañaque City 27 .265. Manila SCA No. Corp.

Antonio Bernabe Jr. 2008-06 Br.540. 2010 for the hearing on the issuance of writ of possession. The case is set on January 25. SCA No. Petition for the Certiorari was filed on September 18. 2010. Las Piñas City Complaint amended to implead additional respondents and to correct the final area sought to be expropriated.196. 08-0251 Br. With deposit in LBP in the amount of P 4. No deposit to date. 08-0265 Br.Sps. 28 . Corp. Case previously dismissed for failure of LRTA to place the LBP account in the name of the respondents. Parañaque City Case subject of compromise agreement. 2009. 257. 08-0287 Br. Las Piñas City Oppen SCA No. 198. Jose Castillo SCA No.200 on November 5. Theresa Leynes and MAsaito Development Corp. 2010.400 on November 5. Alex and Ma. Parañaque City Case subject of compromise agreement. 2010. 2008. Sarao Motors Inc. 09-0016 RTC. 2008. Sps. 08-0013 Br. Las Piñas City On February 25. Parañaque City The case was reinstated after having been dismissed. SCA Case No.195. 198. To file Motion for Issuance of Writ of Possession. 08-0266 Br. 201. Br. Round Peak Realty Devt. LRTA received a Court Order setting the Commissioner’s hearing on April 20. Respondents are willing to accept LRTA’s original offer at zonal valuation. BSC No. Maria Lozada SCA No.196. 08-0011 Br. Parañaque City Set for hearing on March 18. 257. For finalization of compromise agreement. SCA No. Parañaque City Sps. Godofredo and Estrellita Lorenzo SCA No. Respondents are willing to accept LRTA’s original offer at zonal valuation. With deposit in LBP in the amount of P 761.

195. Eleuteria Bernardo CV-08-0434 Br. 08-0435 Br. Corazon Rodriguez. The case is set for pre. Las Piñas City The case has just been recently revived after having been suspended to consider a possible realignment of the project.257. LRTA submitted a Motion for Leave to File Attached Amended Complaint in this case to reflect the correct zonal valuation of the property. 198. 08-0282 Br. Parañaque City LRTA filed an Omnibus Motion in this case praying that the defendant be declared in default and that an order of expropriation and writ of possession be issued.257. Garcia Rodriguez SCA No. specifically the pertinent Tax Declaration.Gatchalian Realty.000. SCA No. 2010.257. 08-0271 Br.541. as the subject property is not covered by any TCT. 08-0272 Br. Parañaque City The case is set for hearing on February 1. 08-0012 Br. 2010. Faustino Bernardo CV No.195. specifically the pertinent Tax Declaration. However. the Court is requiring LRTA to present the relevant documents. In an Order dated August 10. 2008. 2010.100 on November 12. However. 2009.trial on February 3. SCA No. Araceli Rodriguez and Adelfa Properties Inc. as the subject property is not covered by any TCT. the Court’s sheriff was already ordered to place the plaintiff in possession of the property. pegged at P 1. 2009. In an Order dated August 10. Parañaque City 29 . the Court’s sheriff was already ordered to place the plaintiff in possession of the property. With deposit in LBP in the amount of P 343. Parañaque City Motion to Amend the Complaint was filed because it appears from the Sheriff’s Return that Faustino Bernardo died 2 years ago prior to the filing of complaint. Heirs of Eugenio Espiritu SCA No. Parañaque City For filing of appropriate pleading after determining the heirs of the defendant who died recently per Process Server’s Return. The Line 1 South Extension office was advised to make a deposit with the Land Bank in this case based on the correct zonal valuation of the property. The case is set for hearing on February 1. the Court is requiring LRTA to present the relevant documents. Inc.

Las Piñas City Hearing set on January 25. Alvario Asuncion. 89. 255.455. The defendant has already filed an answer in this case which the LRTA received on September 18. LRTA already deposited the amount of P 2. 2009. Bacoor. RTC. Hearing set on January 25. 201. The corresponding Land Bank deposit has already been made and LRTA will file the appropriate motion for issuance of Writ of Possession immediately upon receipt of a copy of a certificate evidencing the said deposit. O8-0023 Br. 2009. 89. 08-0031 Br. Pablo de Guia.Adelfa Properties Inc. Ongoing hearing by the Board. Cavite Hearing set on January 25.Br. Jr. 255. Al.Br.092 at LBP. LRTA received a Court Order granting defendants additional time of 15 days to file comment. Las Piñas City On February 25. BCV – 2009-130 RTC. and Rosario De Leon SCA 08-0330 Br. 2010 for the issuance of writ of possession. With a writ of possession. Et Al.Br. Board of Commissioner’s already constituted. the Administrator of the defendant estate communicated his desire to enter into a voluntary sale based on a zonal value of the property alleged in the complaint. Estate of Marcela Cuenca RTC. Bacoor. LRTA Legal Department has already prepared a draft Deed of Sale for consideration and approval of the parties. Parañaque City Isthmus Realty Corp. Las Piñas City Heirs of Bonifacio Aguilar Et. Bacoor. Summons already published as required by the court. 2010 for the issuance of writ of possession. 08-00029 Br. 198.Br. Emiliano Villanueva SCA No. Cavite After the filing of the complaint in this case. 2010. Las Piñas City Estate of Pura Cuenca RTC. Cavite As of December 16. SCA No. Summons served to defendants. 2010. Carmen Miranda and heirs of Catalina Aguilar SCA No. The case is set for hearing on March 18. 2010. 89.258. 30 .

LRTA will be solidarily liable to pay the same amount. LRTA received a Notice of Decision. v. v. only MTOI was held liable to pay the amount of P933. 2009. dated October 24. modifying and deleting the award of P20. 046311-05 (1st Division) C. 2009. SP No. respectively. 043276-05 (2nd Division) Tatad. 2004. MTOI/LRTA NLRC CA No.16 On December 15. MTOI/LRTA NLRC CA No. G. LRTA received a Notice of Pre-Execution Conference. 047438-06 (1st Division) Mendoza. 109224 MTOI/LRTA 31 .10. et al. MTOI/LRTA NLRC CA No. LRTA filed a Memorandum with the Court of Appeals.The defendants already filed an answer and Supplemental Answer in this case.359 MTOI filed an Answer to Complainant’s Memorandum of Appeal Mariano. 036285-03 (3rd Division) On January 4. However. 2004.00 as additional financial assistance embodied in a Decision dated November 11. MTOI/LRTA NLRC CA No.A. 29.082.5 Cases pending before the NLRC Case Title Status Gomez. NLRC CA No. Per Decision dated Dec. P3. 2005. On September 16. P1. if NLRC will reverse and set aside the said decision. Romulo v.406. Leopoldo v.428. which the LRTA received on September 22. v. Mendoza. LRTA shall file the appropriate motion for issuance of a writ of possession immediately upon receipt of a copy of the certificate evidencing the said deposit. The corresponding Land Bank deposit is still being processed.829. 2009 and October 7.000. 043141-05 (1st Division On November 7. 2009.R. 24.. 2005. 2009 LRTA filed its comment and /or opposition to Complainant’s Motion for Issuance of Writ of Execution / Garnishment.

00-07-08367. MTOI / LRTA NLRC CA No. MTOI / LRTA NLRC CA No. 00-07-08857-031 On September 2009. v. 2009 Resolution holding LRTA and MTOI to be jointly and severally liable to pay Banta’s separation pay of P386. LRTA received a Notice of Death with Motion for Substitution.6 Cases pending before the Regional Arbitration Branch Case Title Status Cabezas. Mandatory conciliation conference stage. MTOI/LRTA (1) Submission of responsive pleadings. 042792-05 (First Division) Resolution pending on the Motion for Reconsideration of NLRC’s July 22. LRTA received MTOI’s Motion for Reconsideration on the NLRC Decision dated October 2009.04 Perez.20 On August 28. 32 .672. LRTA received a Notice of Decision dated November 18. v. v. Et. 047617-06 (1st Division) On March 4. et al. 2009. MTOI / LRTA NLRC Case No. LRTA received a Notice of Decision. 36285-03 (3rd Division) Villaviray (1) v. 2009. v. MTOI/LRTA NLRC CA No. P 259. 2009. 00-08-09245-04 Manahan (1) v. 2009 denying MTOI’s Motion for Reconsideration for lack of merit. MTOI/LRTA (1) NLRC NCR Case No.672. 24.71 Orlenda v.45 On December 4.160. Al. On December 3. LRTA received a Notice of Decision of NLRC dated July 31.De Leon.450. v. 2006. 047242-06 (2nd Division) Abulencia. (23) v. MTO/LRTA NLRC NCR Case No. LRTA received a Motion for Issuance of Alias Writ of Execution. 2009.20 Banta (1) v. 2009 denying MTOI’s Motion for Reconsideration. MTO/LRTA NLRC NCR Case No.42 De Asis . P 489. On August 28. 2009. MTOI/LRTA (13) NLRC NCR Case No. 00-12-13561-04 Cuevas. P 17. MTOI/LRTA NLRC CA No. LRTA received an Entry of Judgement.870. 00-07-08819-03 On October 10.976. P 489.

93092 Ocampo v.373.P. SP No. LRTA received a Resolution Denying the Motion for Reconsideration filed by private respondent. 2006. SP No. Ordoñez. S. al. SP No.NLRC NCR Case No. Labor Arbiter Espiritu and Crisostomo (1) CA-G.252. No.R.LRTA CA-G. SP No. Datuin (2) CA-G. 2009. 2009. LRTA received a Notice of Resolution dated July 28. P131. 00-08-09838-04 LRTA received a Notice of Decision dated April 30. 99735 Complainants filed a Motion for Reconsideration with the Court of Appeals but was denied on May 6. MTOI/LRTA (1) NLRC NCR Case No.187.. Tolentino (2) CA-G. 104893 33 .R. SP No.874. P516. 24. et.00 Filed a Petition for Certiorari with Urgent Motion for the Issuance of a TRO and/ or Writ of Preliminary Injunctions on February 20.R.00 LRTA v. P117. 2009.00 Pending Resolution of LRTA’s Petition for Certiorari to annul the NLRC’s decision ordering LRTA/MTOI to pay complainant’s separation or retirement pay.R. 2009. (24) MTOI/LRTA CA – GR SP No. 97345 (7th Division) LRTA v.304. Alabarca (1) CA-G.R. 106372 LRTA vs. P 876. 2009.00 LRTA v. P1. The Third Division of the NLRC. 104182 On December 11.7 Cases Pending the Court of Appeals Case Title Status On March 12.R. Robles (1) CA G. LRTA received a Notice of Resolution dated March 5. v. P 414. v. 00-07-08298-04 Gonzales.00 On August 7. 2009.69 On December 9. 2008. NLRC. 97965 (9th Division) LRTA v.250.267. 2009 dismissing the appeal of LRTA for non-perfection thereof. 2008. LRTA filed a Memorandum with the Court of Appeals in compliance with its Resolution dated November 19.

G. 95578 24. LRTA Civil Case No. 188047 (1st Division) Malunes. P 10. Pasig 34 . LRTA CA. Megatraf v.228. Norma Lim v. LRTA received a Resolution dated October 6.24 On January 29. 2009.P. (10) SC GR No. No. MTOI/LRTA (24) CA-G. No.R.G. 92213 (7th Division) Status On November 11. SP No.9 Civil Cases Case Title Status On November 11.R. 2010. Ramos (2) CA-GR SP No. al.137. 111669 LRTA v.250 LRTA v. SP No.LRTA v..15 Pending resolution of Petition for Review of CA’s decision and Resolution on February 20. P 1. S. Froncoset on February 12.471. 2009. 2010. 104893 On December 4. 2009. Fatima J. v. 2010 LRTA received a Resolution granting its Motion for Second Extension of 30 days within which to file its comment.691. Memorandum.016. 2009. v. P20. et. 2009 and May 22. P2.P.484. et.000 2009. Pili. LRTA received a Notice of Re – Raffle of the case before Hon. MTOI/LRTA CA G. LRTA filed a 24.et al.184. P229. LRTA received a Motion for Postponement from Megatraf for the continuation of hearing on the presentation of plaintiff’s evidence.8 Cases pending before the Supreme Court Case Title Hugo. al.. 71029 RTC Br. S. 2009.R. 2009.059. 106357 On April 21. 155. al. et. Alvarez. LRTA received a Notice of Resolution dated December 2.R.96 On February 26. (36) CA.

CA – GR SP No. LRTA filed a Notice of Appeal with this Court on the Decision rendered by the latter. 32. V. Pasig City 35 .Brigida Diaz v. Inc.154. 32. Stronghold Insurance Co. Aurora Salvaña CA CR No. Civil Case No. 2010. Borreta as presiding judge. 0099204 RTC Br. Inc. SCA No. Hector Corpuz. Co – defendant Phoenix is still in the process of presenting its witness. 2009. Manila LRTA v. RTC Br. Hon. LRTA received a demand letter from the Court to strictly comply with the Arbitration Award dated December 20. Pasig City. Manila LRTA v. 2009. 87-41731 RTC Br. (MPAS) Trackworks vs. LRTA LRC Case No. Inc. 06-0108-CFM RTC Br. Trackworks. On November 11. 118. 51. Pasay City On June 5. continuation of hearing on March 25. On October 21. al. Evidence on Pre-trial stage. et al. 2010. 2008 approving the Compromise Agreement of herein parties. Pending MOA between parties. 96263 Court of Appeals. LRTA Civil Case No. 119 Transnational Construction Corporation v. 2006. LRTA received an Entry of Judgment on a Decision rendered by the ourt on November 24. Centillion Holdings. Manila LRTA v. 2009. Manila LRTA v. 154. And Trackworks Civil Case No. 70673 RTC Br. Abraham B. Presentation of Rebuttal November 5. 104225 Court of Appeals. ZURC Dev’t Corp. LRTA Civil Case No. Civil Case No. 04-0011-CPM RTC Br. Pending resolution of the Opposition by LRTA against the Complaint – in – Intervention filed with the Media Planners and Advertising Solutions. 26. Joymart Consolidated Corp v. CA dismissed the Petition of LRTA where it subsequently filed a Motion for Reconsideration.. Manila LRTA v. LRTA received an entry of Judgement on a Decision dismissing the petition. 2009. 00-99083 RTC Br. LRTA et. 05-0233-CFM RTC Br. Manila On February 6.

2010.25. AUTHORIZATION FOR ISSUE The financial statements as at December 31. 2009 were approved and authorized for issuance by the Board of Directors on June 18. 36 .

25 billion.300 91.99 billion. liability. these are accounted for in separate sets of books of accounts under the Modified Disbursement Scheme (MDS) and the resulting asset.857.918.023.901. released thru the Department of Transportation and Communications (DOTC).281.686. LRTA received indirect subsidies from the National Government.950 3.25 billion. liability and equity account balances resulting from transactions accounted for in the MDS books for Fund 101 (locally-funded projects) and Fund 102 (foreign-assisted projects) amounted to P13. Transactions that are accounted for under the Modified Disbursement Scheme. All releases to LRTA in the current as well as prior years pertaining to projects included in the DOTC budget will be equitized upon the passage of a law increasing the capitalization of LRTA from P3 B to P300 B. power and energy structures Office building Machinery and equipment 3.675 6.057 1. P.133 358. Instead.108.493. are not recognized in LRTA’s books resulting in the understatement of total assets by P13.912.088. and P12.754 Construction in progress Line 1 North Extension Project Line 1 Capacity Expansion Project Line 2 System Project 2. To support its projects.213 24. while transactions relating to the utilization of these subsidies are not.279 699.980. respectively.509.625. are recognized in LRTA’s books of accounts. total asset. pertaining to the utilization of indirect subsidies received by LRTA from the National Government.761. as follows: 2009 ASSETS Non-Current Assets Property and equipment Land and land improvements Trains Electrification.503.256.237 262.851. total liabilities by P.177 240.26 billion.113 2008 37 .267 91. and equity account balances of these transactions are consolidated in the financial statements of DOTC.574.358 199.99 billion and total equity by P12.543.324 340.392.376 354.421. including the interest earned on the placements.26 billion. As of December 31.518 4. 2009. Transactions relating to the receipt and temporary placements of the indirect subsidies. which is now pending with the Committee on Government Enterprises and Privatization of the House of the Representatives.808.COMMENTS AND RECOMMENDATIONS 1.

536 677. transactions relating to the utilization of the indirect subsidies.313.313.706.381 38.946.948 13.289 2.3.487 15.795.090.044.411.492 382. are not accounted for in LRTA’s books of accounts and not consolidated/reflected in LRTA’s financial statements.201 7.880.544.168 1.025.669 952.866.411.097.315.064.809 EQUITY AND LIABILITIES EQUITY LIABILITIES Accounts payable Guaranty deposits payable Due to BIR Due to National Government Agency Other payables TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES 707.622.668 995.159.475 7.952 12.944 12.153.787.199 908.888.834. The revenues derived from and the maintenance and operating expenses incurred in operating these assets are accounted for and reflected in LRTA’s financial statements (except for depreciation on the depreciable assets which is not being recognized.797.786. hence. This gives rise to a situation where revenue and operating expenses relative to the 38 .338.447.973 As earlier mentioned.252 672.57 billion which are being used in LRT Line 2 operations (as compared against land and land improvements of P.289 2.760.799 Total current assets TOTAL ASSETS 707.775.571.209.340.255.866.124 274.223.724 13.566 1. not matched against revenues). with their resulting account balances.797.010 691.499.251.270.564 354.329 299.162.546 Total property and equipment Investments Other assets Total non-current assets Current Assets Cash & cash equivalents Receivables Due from National Government Due from LRTA Advances to contractors 260.538 1. Among those not consolidated are land and land improvements of P3.251.394.789 430.330.451 4.378 5.459.638.100 2.865 9.68 billion being used in LRT Line 1 and Line 2 operations.836 8.156 1.103.526.300 3.149 9.35 billion reported in LRTA’s books) and depreciable assets of P2.

do not reflect the total cost of the projects. Since the project costs that are accounted for in the MDS books are not consolidated with the project costs accounted for in LRTA’s books. directly or indirectly. thus. Although the capacity of an entity to control benefits is usually the results of legal rights.24 billion representing progress billings on Line 1 North Extension Project and Line 1 Capacity Expansion Project. to the flow of cash and cash equivalents to the entity” (Section 53). That being so.b 1. 1. with a corresponding credit to thje account Deposits for Future Subscriptions. for example. for example receivables and property are associated with legal rights.c “The future economic benefit embodied in an asset is the potential to contribute. transactions pertaining to the utilization of the subsidies should. This is to ensure that LRTA’s financial statements present a complete picture of the Authority’s financial position and results of 39 . likewise.26 billion pertaining to the same projects are reflected in LRTA’s financial statements. The Framework for the Preparation and Presentation of Financial Statements has these to say about assets: 1. therefore. since ultimately the amount of subsidies will be equitized upon the enactment of a law increasing the capitalization of LRTA.assets maintained in the MDS books are reported in LRTA’s financial statements but the assets themselves are not. without prejudice to maintaining other sets of books for purposes of the DOTC. be accounted for in LRTA corporate books.a “ An asset is a resource controlled by the entity as a result of past events and from which future economic benefit are expected to flow to the entity” (Section 49 “ In assessing whether an item meets the definition of an asset xxx. 1. including the right of ownership. attention needs to be given to its underlying substance and economic reality and not merely its legal form” (Section 51). accordingly. property held on a lease is an asset if the entity controls the benefits which are expected to flow from the property. Based on the above.d “ Many assets. while project costs of P13. are capitalizable costs of P3. the right of ownership is not essential. Not reflected. an item may nonetheless satisfy the definition of an asset even when there is no legal control” ( Section 57). instead of a liability. we believe that it is proper for LRTA to recognize the indirect subsidies it received as its assets. LRTA’s financial statements. In determining the existence of an asset.

liabilities and equity as reported in LRTA’s financial statements are understated by P13. there is no sufficient regularity of revaluation in regard to said properties.operations. 16. Under Philippine Accounting Standards (PAS) No. 16.547. the last appraisal was in 1997. of which P 132. considering that estimates do not undermine the reliability of the financial statements.598 pertains to Line 1 Operations and P 389. management opted to adopt the appraised value of Line 1 properties of P 3. If there are no appraisals made by independent appraisers.25 billion. Revaluation model adopted was not applied to the entire class or group of items under Land and Land Improvements account contrary to PAS No. Its appraisal then was not kept up to date. in 1997. Revaluations should also be made with sufficient regularity. Management stated that they cannot recognize these transactions in LRTA’s books of accounts without the approval of the DOTC since these subsidies are built-in in the DOTC budget and the accounts are included in its consolidated financial statements.615. estimates of the fair value using the income or depreciated replacement cost approach can be done internally. As it is. Inc. If simultaneous revaluation of the entire class of assets is not possible. plant and equipment (PPE). It is also noted that revaluation was not applied to Line 2 properties which are still carried at cost as raised in previous years audit reports. total assets.99 billion and P12. As noted.167. The items within a class of PPE should also be revalued simultaneously in order to avoid selective revaluation of assets and the reporting of amounts in the financial statements which are a mixture of costs and values as at different dates. hence. assets may be measured in terms of fair value or historical costs. respectively.26 billion. a class of assets may be revalued on a rolling basis provided revaluation of the entire class of assets is completed within a short period of time and provided the revaluations are kept up to date. P.515. In 2005. Land and Land Improvements totaling P 522.000 based on the appraisal done by Asian Appraisal Company. 40 .967. before considering adjustments for depreciation and for reciprocal entries between LRTA’s books and the MDS books.523 was initially carried at cost in the consolidated reports of LRTA.925 to Line 2 Operations. 2. Paragraphs 29 to 31 thereof provide that an entity shall choose either the cost model or the revaluation model as its accounting policy and shall apply that policy to an entire class of property.

250. the costs of the damaged parts/trainsets are not separately identifiable since these were part of the lump sum costs of PMO accounts that were transferred to Line 2 Operations.7 and MC1 and MC2 TMS Master Unit and ACU Signalization Corrector of the CAU System of Trainset No. Consequently. Repair and restoration cost of P30. the Authority may use the repair and restoration cost mentioned above as the cost of the damaged parts/trainsets. the Authority has capitalized the repair and restoration cost of MC1 of damaged Trainset No. if any. 3.25 million was capitalized and recognized in the carrying amount of an item under Transportation Equipment (Trains) account but the carrying amount of the said item was not first derecognized as required also by PAS No.16. Management has agreed to set the bidding for the appraisal of Line 2 properties to comply with PAS No. Depreciation shall then be computed based on the carrying value of the asset only after considering the following entries: Accumulated Depreciation xx Loss from Disposal of Equipment xx Transportation Equipment (Trains) xx To derecognize carrying value of damaged parts/trainsets (assuming there was loss). Said cost was capitalized based on the policy being adopted. Plant and Equipment (PPE) subsequent to initial recognition. If it is not practicable for the entity to determine the carrying amount of the replaced part. 41 . the carrying amount of the subject item was not derecognized as required under PAS No. which is in line with the recognition principle in Philippine Accounting Standard (PAS) No. in regard to costs incurred on an item of Property.16. and the carrying amount of the item. 16. which requires the entity to “derecognize first the carrying amount of the replaced part.We reiterate our recommendation as embodied in the prior years’ Annual Audit Reports for management to comply with the requirements of PAS 16. it may use the cost of the replacement/restoration as an indication of what the cost of the replaced part was at the time it was acquired or constructed.6 in the amount of P30. gain or loss arising from the derecognition shall be determined as the difference between the net disposal proceeds. 16. regardless of whether or not such part is depreciated separately. However.000. As embodied in prior year’s Annual Audit Report. In such case.” Based on inquiry.

732.000.139. under the Japan International Cooperation Agency (JICA) funded LRT Line 1 Capacity Expansion Project. 4.732.Transportation Equipment (Trains) Cash in Bank xx xx To capitalize cost of repair and restoration. any 42 . Under the same BIR Revenue Memorandum Circular. The claim of Marubeni is in relation to the 8. We reiterate our recommendation in last year’s audit report for management to comply with PAS No. and that the ruling does not in anyway preclude LRTA from paying direct to MARUBENI refund of taxes based on contractual provisions. It is reiterated that. Records showed that LRTA’s previous request for refund with the BIR. Phase ll (PH – P 211) and LRT Line 2 Metro Manila Strategic Mass Rail Transit Development Project (PH – P 185). L1-502-09-08-042. It stressed though that issues arising from contractual provision (provisions in the Exchange Notes/ Loan Agreements relating to reimbursement or assumption of liability) are not within the purview of the tax law.591) are no longer claimable. however. if it is not practicable to determine the carrying value of the replaced part. through the issuance of Tax Credit Certificate in favor of Marubeni. Additional depreciation was.456 to Marubeni Corporation (Marubeni) per JEV No. Management stated that there was no entry for the derecognition due to the impracticability of determining the carrying amount of the replaced parts. The BIR earlier ruled that invoice billings of Japanese contractors with the executing government agencies are exempt from taxes under BIR Revenue Memorandum Circular No. LRTA refunded a total amount of P 33.5 % creditable Value Added Tax (VAT) and the 2% expanded withholding tax withheld by LRTA from its payments to Marubeni from 2002 to 2006.73 M related to projects initially funded from subsidy released thru the DOTC was not appropriately disclosed. without first derecognizing the carrying value of the replaced/damaged parts. In 2009.456 out of total of P 45. 42 – 99. did not prosper since most of the claims (or P 33. but within the realm of the law on obligations and contracts. management may used the cost of the repair/restoration as its cost at the time it was acquired. 16.250. covering taxes previously remitted to the Bureau of Internal Revenue (BIR). Refund of taxes amounting to P 33. computed based on the total amount of P30.

Considering that the above projects are funded from subsidy released thru the DOTC and transactions relating therefrom are consolidated in the books of DOTC.431.1. that the settlement of disallowances and charges is made within the prescribed period and the requirements of transactions suspended in audit are complied with. Details are as follows: 1986 to 2002 NDs 2006 and 2008 NDs P 35. 2009. was only applied for by Marubeni with the BIR in May 2007 or about six years from the dates the projects started. among others.request for refund for excess tax payment should be filed within the two – year prescriptive period or within two years after the payment of the tax or penalty.621. 2009.1 of the Rules and Regulations on Settlement of Accounts.047 remain unsettled as of December 31. has released to LRTA the amount to cover reimbursement of the tax claims per SARO No. provides that the head of the agency. 09-04070 and NCA No. both dated June 10. 5. 2009-006 dated September 15.679 P 38. 2009-006.368 3. dated September 15. We recommend the compliance with the above. the Department of Budget and Management. Although during the year there were no disallowances made. 2009. Section 7. So BIR suggested that Marubeni’s recourse is to seek reimbursement of the claims that have already prescribed directly from LRTA. NCA-BMB-D-09-0009444. To settle this longstanding tax reimbursement issue and bring about greater economic cooperation between the two countries. The official request for refund. through the initiative of the Department of Finance Undersecretary. Disallowances amounting to P38. it was observed that prior years’ disallowances totalling P38. it is recommended that the transaction and/or the relevant information should be appropriately disclosed in the notes to financial statements as additional information. who is primarily responsible for all government funds and property pertaining to his agency.621. 2009 contrary to the above provision. shall ensure. These are 43 .047 Notice of Disallowance (NDs) issued in 1986 – 2002 cover disallowances which have become final and executory due to the lapse of time. however.189.62 M remain unsettled as of yearend contrary to the Rules and Regulations on Settlement of Accounts (RRSA) set forth under COA Circular No. per COA Circular No.

etc. P2. To set-up a Women’s Desk in designated station/s to give assistance to women passengers.000 P100.000. To provide opportunity for women and solo parent employees of LRTA venue for work and life balance.000 Integration of GAD issues in the security measures of the LRTA To increase the number of female security personnel posted at revenue lines. The LRTA Gender and Development Plan aims to make the operations of the LRTA gender-responsive. P1. 6.recognized in the books as contingent asset with a corresponding credit to contingent capital.000 Training/s on Gender Equality and Women Empowerment To make LRTA – Officers and Employees more gender sensitive to assist them in the performance of their duties more effectively.000 Wellness Program for Women employees and Solo Parents P200. P800. P1. P100.000 44 . the following were the proposed programs: PROGRAM/PROJECT/ACTIVITY TARGETS BUDGET Organization-focused Identification /Inventory of women Employees and Solo Parents in the agency To determine the actual number of beneficiaries and identify the appropriate project to conduct/create and implement. To give LRTA employees especially women and solo parent employees opportunity to learn new skills. needs and opportunities available for both men and women. For CY 2009. Strict compliance with the rules and regulations on settlement of accounts is enjoined.000. for them to use to earn extra income. The 2009 Annual GAD Plans and Programs were not fully implemented as proposed since LRTA’s actions were limited to the programs/projects approved by higher authorities.000 Livelihood Trainings for Women and Single Parents in the LRTA.000.000 Client-focused Design/Plans preparation and conceptualization Announcement of gender-related reminders inside the trains and stations To integrate gender-responsive designs in the trains and future lines To implement the “standardized announcement” inside the trains and stations of LRT from time to time. crafts. It spells out the issues and concerns on gender and establishes approaches that consider gender roles.

It is recommended that LRTA set a more realistic GAD plans/programs viz-a-viz the targeted accomplishments in order to achieve its goals and objectives.2009 P28. 2009 P4.250 Conducted by Fuller Life. 2009 P4. PROGRAM/PROJECT/ACTIVITY TARGET PARTICIPANTS Women and employees LRTA solo of COST REMARKS Conduct of Lecture/Workshop on Livelihood Program and Personality Development Training for Women and Solo Parent Employees of LRTA on March 11-12.120 Conducted by Mary Kay Philippines Conduct of Personality Development and Image Enhancement Training on November 17. the proposed programs/projects were not fully implemented since only the conduct of seminars was approved by the National Commission on the Role of Filipino Women (NCRFW) and DOTC-GAD FP TWG. however.2009 Conduct of Workshop on Antitrafficking in Persons on June 20. Shown below are the highlights of the Focal Point’s accomplishments during the year. but management’s actions are limited to programs/projects approved by higher authorities. of which LRTA is a member.In 2009. Management has agreed with the recommendation. 45 .600 Conducted by Women and Children Protection Center Conduct of Personality Development Seminar on August 11.000 Conducted by the Pitch and Red Consulting Women and Parent employees LRTA Women and Solo Parent employees of LRTA Women and Solo Parent employees of LRTA Solo of P54. Much could be done for the empowerment of women and addressing gender issues.

98 M have long been outstanding. Accuracy and reliability of the accounts were affected due to the presence of abnormal balances in payable accounts aggregating P 14. FINDING RECOMMENDATION STATUS Repair and restoration cost of P Derecognition of the asset’s carrying Not implemented. Provide adequate allowance on Implemented inactive accounts to reduce the carrying amount of the receivables to its realizable values. the account by P 15. 30. ranging from 6 to 22 years. two (2) were partially implemented and three (3) were not implemented. is inadequate.25 M was capitalized and amount is recommended in accordance wit recognized in the carrying with PAS 16.debt analysis of the accounts is Partially recommended to determine the implemented cause/s of the abnormal balances in order to draw the necessary adjustment in the books. An in. not applied to the entire class or PAS 16. The audit recommendation on Land and Land Improvements is reiterated in this year’s audit report.STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT RECOMMENDATIONS Of the nine (9) audit recommendations. four (4) were fully implemented. 46 .66 M.62 M as at year end. Plant and Equipment account by the same amount. group of items under Land and Land Improvements account contrary to PAS 16. the account is Implemented Revaluation model adopted was We recommended compliance with Not implemented. amount of Transportation Equipment – Trains but its carrying amount was not first derecognized pursuant to PAS 16. of which P 19.91 M and understated the Property. Allowance for doubtful accounts of P7. Inappropriate charge to Adjustment of Spareparts Inventory overstated recommended.89 M set on total inactive accounts of P33.

47 . implemented as proposed since LRTA’s actions were limited to the approved programs/projects by higher authorities. The 2008 Annual Gender and A more realistic GAD plans/programs Partially Development (GAD) Plans and is recommended in order to meet implemented Programs were not fully targets as planned. The amount of P 11. but for the purpose of financial statement presentation. Property. financial statements are not in conformity with PAS 20 and PAS 16. Not implemented.89 M due to error in recording adjustment. It has no effect on Net Income and Retained Earnings for CY 2008. the account is Implemented Although expenses encompasses both expenses and losses. this should be presented separately based on the Framework for Financial Statements Preparation and Presentation.46 M resulting in the decrease in Deferred Tax Liability due to fully reversed taxable temporary difference was erroneously credited to Gain on Foreign Exchange. Plant and Equipment Adjustment of and Spareparts Inventory were recommended. both misstated by P 63. Error is a financial statement presentation error only.Recognition and presentation of Compliance with the Standards is Implemented government subsidy in the recommended.

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