POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Notes to Financial Statements

For the year ended December 31, 2017

1. General Information/Agency Profile

The financial statements of the Polytechnic University of the Philippines (PUP) were
authorized for issue on February 12, 2018 as shown in the Statement of
Management’s Responsibility for Financial Statements signed by the Director of
Accounting Department and the Vice-President for Finance.

The PUP is a government educational institution governed by Republic Act (RA)

No. 8292 known as the Higher Education Modernization Act of 1997 and its
Implementing Rules and Regulations contained in the Commission on Higher
Education (CHED) Memorandum Circular No. 4, series of 1997. The PUP is one of
the country’s highly competent educational institutions. The PUP Community is
composed of the Board of Regents (BOR), University Officials, Administrative and
Academic Personnel, Students, various Organizations, and the Alumni.

Governance of the PUP is vested upon the BOR, which exercises policy-making
functions to carry out the mission and programs of the University by virtue of RA
No. 8292 granted by the CHED. It is administered by an appointed President and is
assisted by an Executive Vice-President and six Vice-Presidents; one each for
Academic Affairs, Student Affairs and Services, Administration, Research,
Extension, Planning and Development, Finance, and Branches and Campuses.

The institution started as the Manila Business School, founded in October 1904 as
part of the city school system under the superintendence of C.A. O’Reilley, which
responds to the demand for training personnel for government service and felt need
to provide skills essential for private employment. In 1908, it was renamed as
Philippine School of Commerce (PSC) and merged with the Philippine Normal
School in 1933 to 1946. By virtue of RA No. 778, the PSC was again changed to
Philippine College of Commerce (PCC) in 1952. Subsequently, the PCC was
converted into a chartered state university, now known as the Polytechnic University
of the Philippines by virtue of Presidential Decree (PD) No. 1341 issued by the
President of the Philippines on April 1, 1978.

The PUP is a public, non-sectarian, non-profit institution of higher learning primarily

tasked with harnessing the tremendous human resources potential of the nation by
improving the physical, intellectual, and material well-being of the individual
through higher occupational, technical and professional instruction and training in
applied arts and sciences related to the fields of commerce, business administration,
and technology.

10
It promotes applied research, advanced studies, and progressive leadership in the
stated fields. It also offers ladder-type higher vocational education, distance learning
(Open University System), technical and professional programs in the area of
business and distributive arts, education and the social sciences related to the field of
commerce, business administration, and other areas. Furthermore, it takes steps to
enrich the academic program in other fields of study and adopts a polytechnic
program of education designed to provide an individual with employable skills and
managerial knowledge in order to make them creative, productive, and self-reliant.

The PUP operates year-round with two semesters and a summer. Summer sessions
depends on the course curriculum that the college/s of a campus implement/s. The
University employs 2,708 full-time and part-time faculty members with a few of the
full-time faculty holding administrative positions. There are also 788 regular and
casual administrative employees who provide support services to the University
population.

The University’s programs and projects comprise of: (1) General administration and
support services; and (2) Support to operations, which includes auxiliary services;
and Operations, includes higher education services, advanced extension services,
research services, and extension services.

The faculty spends two-thirds of their time in teaching and one-third in research and
extension activities. During the years under review, the PUP received and allotted
government and private funding to research.

With more than twenty campuses serving more than 70,000 students, the PUP is
considered the largest university in the Philippines in terms of student population.
The main campus is named after a national hero, Apolinario Mabini, and is located in
Sta. Mesa, Manila – in the middle of a busy metropolitan. Despite of this,
environment within its perimeter is a conducive place for students to learn.

Majority of the students belong to the economically challenged level of society. It is

the University’s commitment to give qualified and talented students the access to
quality and responsive education to aid them in the achievement of their dreams and
improvement of their lives.

Scholars of the Nation (Iskolar ng Bayan), that is what the students are called
because the Philippine Government and other non-government institutions subsidize
their tuition and other fees.

The PUP takes pride in its capability to accommodate the students need for having
more than 20 campuses to cater a wide range of courses, from bachelors to doctorate
degrees as well as technology. There are also available flexible or distance learning
system of education that brings the resources and programs of PUP not only to full-
time students but also to part-time and adult-learners. The University also pioneered
the ladderized system and the accreditation and equivalency system through the

11
 Expanded Tertiary Education Equivalency and Accreditation Program and the Non-
traditional System Program; maintains an average size of 45-50 students per class;
and provides a long list of extension services for the community and the country.

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

The financial statements have been prepared in accordance and compliance with the
Philippine Public Sector Accounting Standards (PPSASs) issued by the Commission
on Audit per COA Resolution No. 2014-003 dated January 24, 2014.

The financial statements have been prepared on the basis of historical cost, unless
otherwise stated. The Statement of Cash Flows is prepared using the direct method.

Included in the financial statements are transactions of all PUP Campuses. The
University, however, adopts the Centralized Accounting System whereby only one
complete set of books is kept and maintained by the Accounting Department in the
Main Campus at Sta. Mesa, Manila.

3. Summary of Significant Accounting Policies

3.1 Basis of Accounting

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

the PPSASs.

3.2 Financial Instruments

a. Financial Assets
Initial Recognition and Measurement

Financial assets within the scope of PPSAS 29 Financial Instruments:

Recognition and Measurement are classified as financial assets at fair value
through surplus or deficit, loans and receivables, held-to-maturity investments
or available-for-sale financial assets, as appropriate. The PUP determines the
classification of its financial assets at initial recognition.

The PUP’s financial assets includes: cash and short-term deposits; trade and
other receivables; and loans and other receivables.

Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or

determinable payments that are not quoted in an active market. After initial
measurement, such financial assets are subsequently measured at amortized
cost using the effective interest method, less impairment. Amortized cost is
calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the effective interest rate. Losses
arising from impairment are recognized in the surplus or deficit.

12
 Financial Assets Carried at Amortized Cost

The carrying amount of the asset is reduced through the use of an allowance
account and the amount of the loss is recognized in surplus or deficit.

b. Financial Liabilities

Initial Recognition and Measurement

Financial liabilities within the scope of IPSAS 29 are classified as financial

liabilities at fair value through surplus or deficit or loans and borrowings, as
appropriate. The PUP determines the classification of its financial liabilities
at initial recognition.

3.3 Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and cash in bank.

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

Subsequently, inventories shall be measured at lower of cost and net realizable

value.

Inventories are recognized as an expense when deployed for utilization or

consumption in the ordinary course of operations of the PUP.

3.5 Property, Plant, and Equipment

Recognition

An item is recognized as Property, Plant, and Equipment (PPE) if it meets the

characteristics and recognition criteria as a PPE.

The characteristics of PPE are as follows:

 tangible items;
 held for use in the production or supply of goods or services, for rental to
others, or for administrative purposes; and
 expected to be used during more than one reporting period.

An item of PPE is recognized as an asset if:

 it is probable that future economic benefits or service potential associated

with the item will flow to the entity; and
 The cost or fair value of the item can be measured reliably.

13
Measurement at Recognition

An item recognized as PPE is measured at cost.

A PPE acquired through non-exchange transaction is measured at its fair value

as at the date of acquisition.

The cost of the PPE is the cash price equivalent or, for PPE acquired through
non-exchange transaction, its cost is its fair value as at recognition date.

Cost includes purchase price, any cost directly attributable to the dismantling
and removing the item and restoring the site on which it is located.

Measurement after Recognition

After recognition, all PPE are stated at cost less accumulated depreciation and
impairment losses.

When significant parts of PPE are required to be replaced at intervals, the PUP
recognizes such parts as individual assets with specific useful lives and
depreciates them accordingly. Likewise, when a major repair/replacement is
done, its cost is recognized in the carrying amount of the plant and equipment as
a replacement if the recognition criteria are satisfied. All other repair and
maintenance costs are recognized as expense in surplus or deficit as incurred.

Depreciation

Each part of an item of PPE with a cost that is significant in relation to the total
cost of the item is depreciated separately.

The depreciation charge for each period is recognized as expense unless it is

included in the cost of another asset.

Initial Recognition of Depreciation

Depreciation of an asset begins when it is available for use such as when it is in

the location and condition necessary for it to be capable of operating in the
manner intended by management.

For simplicity and to avoid proportionate computation, the depreciation is for

one month if the PPE is available for use on or before the 15th of the month.
However, if the PPE is available for use after the 15th of the month, depreciation
is for the succeeding month.

Depreciation Method

The straight line method of depreciation shall be adopted unless another method
is more appropriate for agency operation.

14
 Estimated Useful Life

The PUP uses the Schedule on the Estimated Useful Life of PPE by
classification prepared by COA.

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

Impairment

An asset’s carrying amount is written down to its recoverable amount, or

recoverable service amount, if the asset’s carrying amount is greater than its
estimated recoverable service amount.

3.6 Intangible Assets

Recognition and Measurement

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

3.7 Changes in Accounting Policies and Estimates

The PUP recognizes the effects of changes in accounting policy retrospectively.
The effects of changes in accounting policy are applied prospectively if
retrospective application is impractical.

It recognizes the effects of changes in accounting estimates prospectively by

including in surplus or deficit.

The PUP corrects material prior period errors retrospectively in the first set of
financial statements authorized for issue after their discovery by:

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

the error occurred; or
 If the error occurred before the earliest prior period presented, restating the
opening balances of assets, liabilities and net assets/equity for the earliest
prior period presented.

3.8 Revenue from Non-Exchange Transactions

Recognition Revenue from Non Exchange Transactions

Revenue is recognized when there is an inflow of resources from a non-

exchange transaction recognized as an asset except to the extent that a liability is
also recognized in respect of the same inflow.

15
 Measurement of Revenue from Non Exchange Transactions

Revenue from non-exchange transactions is measured at the amount of the

increase in the net assets recognized by the entity, unless a corresponding
liability is recognized.

Gifts and Donations

The PUP recognizes assets and revenue from gifts and donations when it is
probable that the future economic benefits or service potential will flow to the
entity and the fair value of the assets can be measured reliably.

Goods in-kind are recognized as assets when the goods are received, or there is a
binding arrangement to receive the goods. If goods in-kind are received without
conditions attached, revenue is recognized immediately. If conditions are
attached, a liability is recognized, which is reduced and revenue recognized as
the conditions are satisfied.

On initial recognition, gifts and donations including goods in-kind are measured
at their fair value as at the date of acquisition, which were ascertained by
reference to an active market, or by appraisal. An appraisal of the value of an
asset is normally undertaken by a member of the valuation profession who holds
a recognized and relevant professional qualification. For many assets, the fair
value is ascertained by reference to quoted prices in an active and liquid market.

3.9 Revenue from Exchange Transactions

Measurement of Revenue

Revenue shall be measured at the fair value of the consideration received or

receivable.

Rental Income

Rental income arising from operating leases on investment properties is

accounted for on a straight-line basis over the lease terms and included in
revenue.

3.10 Budget Information

The annual budget is prepared on a cash basis and is published in the
government website.

A separate Statement of Comparison of Budget and Actual Amounts (SCBAA)

was prepared since the budget and the financial statements were not prepared
on comparable basis. The SCBAA was presented showing the original and
final budget and the actual amounts on comparable basis to the budget.

16
 The annual budget figures included in the financial statements are for PUP.
These budget figures are those approved by the governing body both at the
beginning and during the year following a period of consultation with the
public.

The funds included in the SCBAA pertain to Government Appropriations Act

(GAA) funds only since the PUP has no collection withheld due to the Bureau
of the Treasury.

Reconciliation between the actual amounts on a comparable basis as presented

in the SCBAA and the actual amounts in the Statement of Cash Flows for the
year ended December 31, 2017 is presented below. The financial statements
and budget documents are prepared for the same period. There is an entity
difference: the budget is prepared based on the GAA, and the financial
statements consolidate all funds of the agency. There is also a basis difference:
the budget is prepared on a cash basis and the financial statements on accrual
basis.

Particulars Operating Investing Total

Actual Amounts on
Comparable Basis as
(1,241,073,429.34) - (1,241,073,429.34)
Presented in the Budget
and Actual Amounts
Basis Difference 1,723,461,833.50 (11,284,022.40) 1,712,177,811.10
Entity Difference (452,871,806.58) 5,642,011.20 (447,229,795.38)
Actual Amounts in the
29,516,597.58 (5,642,011.20) 23,874,586.38
Statement of Cash Flows

3.11 Employee Benefits

The employees of PUP are members of the Government Service Insurance

System (GSIS) which provides life and retirement insurance coverage.

The PUP recognizes expenses for accumulating compensated absences when

these are paid (commuted or paid as terminal leave benefits). Unused
entitlements that have accumulated at the reporting date are not recognized as
expense. Non-accumulating compensated absences, like special leave
privileges, are not recognized.

4. Changes in Accounting Policies

The PUP adopted the Revised Chart of Accounts for National Government Agencies
to conform with the PPSASs pursuant to COA Circular No. 2014-003 dated
April 15, 2014 re: Conversion from the Philippine Government Chart of Accounts
under the New Government Accounting System per COA Circular No. 2004-008
dated September 20, 2014 as amended, to the Revised Chart of Accounts for
National Government Agencies. This accounting change had no significant impact
on the University’s financial statements.

17
5. Prior Period Adjustments
The PUP has determined that transactions such as stale/cancelled checks and
liquidation of cash advances of previous years were taken up during the year.

As a result, these adjustments of prior year’s amounting to ₱22,415,109.48 increased

the current operating surplus and with an incremented cumulative effect of the same
amount on the net assets of the University for the current year.

6. Cash and Cash Equivalents

This consists of the following accounts:

Account Title 2017 2016

Cash on Hand 1,535,215.09 1,173,134.18
Cash in Bank – Local Currency 549,194,123.40 492,091,475.18
Cash in Bank – Foreign Currency 779,081.86 8,487,313.38
Total Cash and Cash Equivalents 551,508,420.35 501,751,922.74

6.1. Cash on Hand

Account Title 2017 2016

Cash-Collecting Officers 597,715.09 616,434.35
Petty Cash 937,500.00 556,699.83
Total 1,535,215.09 1,173,134.18

Cash-Collecting Officers account represents unremitted collections by the duly

designated Collecting Officers to be deposited to the Land Bank of the
Philippines the following month.

The Petty Cash account represents cash granted to regular disbursing officers for
payment of petty or miscellaneous authorized expenditures which cannot be
conveniently paid by check.

6.2. Cash in Bank – Local Currency

Account Title 2017 2016
Cash in Bank – Local Currency , Current Account 512,837,808.28 491,091,475.18
Cash in Bank – Local Currency , Savings Account 36,356,315.12 1,000,000.00
Total 549,194,123.40 492,091,475.18

Cash in Bank - Local Currency, Current Account consists of collections from

tuition, other fees and income of the University.

Included in Cash in Bank-Local Currency, Savings Account are deposits that are
intended for specific purpose and inclusive of earned interest as of December 31,
2017.

18
 6.3. Cash in Bank – Foreign Currency

Account Title 2017 2016

Cash in Bank – Foreign Currency , Savings Account 779,081.86 8,487,313.38
Total 779,081.86 8,487,313.38

Cash in Bank – Foreign Currency, Savings Account represents collections from

foreign students/stakeholders as well as from deposits made by overseas
students/stakeholders of the University.

7. Receivable

This consists of the following accounts:

Account Title 2017 2016

Loans and Receivables 11,721,967.76 10,195,231.89
Inter-Agency Receivables 9,514,082.55 7,777,921.19
Other Receivables 1,427,478.11 1,348,419.17
Total 22,663,528.42 19,321,572.25

7.1 Loans and Receivables

Account Title 2017 2016

Accounts Receivable 18,114,275.00 16,583,539.13
Allowance for Impairments - Accounts (9,050,607.24) (9,050,607.24)
Receivable
Net Value - Accounts Receivable 9,063,667.76 7,532,931.89
Loans Receivable – Others Receivables 2,658,300.00 2,662,300.00
Total 11,721,967.76 10,195,231.89

Accounts Receivable account represents collectibles for the payment of space

rental/lease, electricity and water from concessionaires and for tuition fees and
other school fees from students.

Loans Receivable-Others account represents outstanding balance of loans

granted to students out of funds provided by the CHED thru its Student
Financial Aid Program (STUFAP).

7.2 Inter-Agency Receivables

Account Title 2017 2016

Due from National Government Agencies 9,514,082.55 7,777,921.19
Total 9,514,082.55 7,777,921.19

19
 Due from National Government Agencies account represents advance payments
made to the DBM-Procurement Service for the purchase of commonly used
office supplies and undelivered supplies/materials as of year-end.

7.3 Other Receivables

Account Title 2017 2016

Receivables - Disallowances/Charges 1,160,571.69 928,746.27
Other Receivables 266,906.42 419,672.90
Total 1,427,478.11 1,348,419.17

Receivable-Disallowances/Charges account represents transactions disallowed

by the COA Resident Auditor due to lack of legal basis/supporting documents as
well as suspensions which matured into disallowances.

Other Receivables account includes past due and other receivables.

7.4 Aging/Analysis of Receivables as at December 31, 2017

Aging Schedule
Account Title Total Current Year Prior Year
Below 30 91-365 Over 1 Over 3 years
days days year
Accounts Receivable 18,114,275.0 1,440,434.66 1,154,772.52 1,171,565.74 14,347,502.08
Loans Receivable - 0
2,658,300.00 - 2,658,300.00 - -
Others
Receivable –Dis- 1,160,571.69 - 1,160,571.69 - -
allowances/ Charges
Other Receivables 266,906.42 97,494.03 169,412.39 - -
Total 22,200,053.1 1,537,928.69 5,143,056.60 1,171,565.7 14,347,502.08
1 4
8. Inventories
This consists of the following accounts:

Account Title 2017 2016

Inventory Held for Consumption
Office Supplies Inventory 10,967,701.03 10,643,468.03
Accountable Forms Inventory 74,820.00 1,120.00
Drugs and Medicines Inventory - 200,869.80
Medical, Dental and Laboratory Supplies Inventory 236,979.40 -
Textbooks & Instructional Materials Inventory 28,517,913.14 16,345,467.05
Construction Materials Inventory 641,374.65 641,374.65
Chemical and Filtering Supplies Inventory 34,992.00 -
Other Supplies Inventory 16,058,380.78 7,816,928.90
Merchandise Inventory 4,258,396.53 104,021.00
Total Amount, December 31 60,790,557.53 35,753,249.43

20
 8.1 Reconciliation of Inventories
Inventories carried at the lower of cost and the net realizable value
Accountable Medical, Chemical
Drugs and
Accounts Office Supplies Forms, Plates Dental & and Filtering
Medicines
Inventory & Stickers Laboratory Supplies
Inventory
Inventory Supplies Inventory
Inventory
Inventory Held for Consumption
Carrying Amount,
16,167,974.09 22,120.00 200,869.80 108,280.00 -
January 1, 2017
Additions/Acquisition
7,011,154.33 227,700.00 - 257,989.40 112,368.00
during the year
Expensed during the
(12,211,427.39) (175,000.00) (200,869.80) (129,290.00) (77,376.00)
year except write down
Carrying Amount,
10,967,701.03 74,820.00 - 236,979.40 34,992.00
December 31, 2017

(Continued)
Inventories carried at the lower of cost and the net realizable value
Textbooks & Construction Other Supplies
Instructional Merchandise
Materials & Materials Total
Accounts Materials Inventory
Inventory Inventory
Inventory
Inventory Held for Consumption
Carrying Amount, 16,345,467.0
641,374.65 7,816,928.90 104,021.00 41,407,035.49
January 1, 2017 5
Additions/Acquisition 12,233,246.0
- 24,427,811.28 7,384,607.28 51,654,876.38
during the year 9
Expensed during the year (60,800.00) - (16,186,359.40) (3,230,231.75) (32,271,354.34)
except write-down
Carrying Amount,
28,517,913.14 641,374.65 16,058,380.78 4,258,396.53 60,790,557.53
December 31, 2017

9. Other Current Assets

This consists of the following accounts:

Account Title 2017 2016

Advances
Advances to Special Disbursing Officer 2,053,871.62 1,800,289.73
Advances to Officers and Employees 907,162.77 92,665.28
Prepayment
Advances to Contractors 14,766,916.48 6,637,409.26
Deposits
Guaranty Deposits 1,517,026.40 1,512,026.40
Total 19,244,977.27 10,042,390.67

Advances to Special Disbursing Officers consists of cash advances granted to

disbursing officers for payment of special or time bound undertaking which
remained outstanding as of year-end.

21
 Advances to Officers and Employees represents cash advances granted to officers
and employees for payment of expenses for official local and foreign travel purposes
and implementation on University project which remained unliquidated as of year-
end.

Advances to Contractors represent payments made to various contractors pertaining

to infrastructure project undertaken by the University for CY 2017.

Guaranty Deposits represent advances made to guarantee compliance such as utility

bills and venue rental deposits.

10. Property, Plant, and Equipment

This consists of the following accounts:

Buildings and
Land Infrastructu Machinery and
Land Other
Improvements re Assets Equipment
Structures
Carrying Amount,
9,837,770.65 27,496,749.09 7,096,156.50 1,156,541,774.13 118,464,334.80
January 1, 2017
Additions/Acquisitions - - - 2,041,192.73 12,373,631.00
Adjustment - - - 75,000.00 556,248.00
Total 9,837,770.65 27,496,749.09 7,096,156.50 1,158,657,966.86 131,394,213.80
Less: Disposals/
- (2,733,462.72) - (52,413,551.48) (12,748,363.06)
Depreciation
Carrying Amount,
9,837,770.65 24,763,286.37 7,096,156.50 1,106,244,415.38 118,645,850.74
December 31, 2017
Gross Cost 9,837,770.65 81,168,590.04 7,298,899.95 1,682,346,418.34 332,106,693.04
Less: Accumulated
- (56,405,303.67) (202,743.45) (576,102,002.96) (213,460,842.30)
Depreciation
Carrying Amount,
9,837,770.65 24,763,286.37 7,096,156.50 1,106,244,415.38 118,645,850.74
December 31, 2017

(Continued)

Transportation Furniture, Construction in

Fixture & Other PPE TOTAL
Equipment Progress
Books
Carrying Amount,
3,838,917.78 59,430,315.60 88,691,402.22 29,112,357.13 1,500,509,777.90
January 1, 2017
Additions/Acquisitions - 524,500.00 15,954,067.94 - 30,893,391.67
Adjustment - - (14,218,250.35) (13,587,002.35)
Total 59,954,815.60 90,427,219.81 29,112,357.13 1,517,816,167.22
Less: 3,838,917.78
(796,962.80) (717,028.65) - (22,742.44) (69,432,111.15)
Disposals/Depreciation
Carrying Amount,
3,041,954.98 59,237,786.95 90,427,219.81 29,089,614.69 1,448,384,056.07
December 31, 2017
Gross Cost 14,030,779.95 99,662,830.47 90,427,219.81 29,980,281.57 2,346,859,483.82
Less: Accumulated
(10,988,824.97) (40,425,043.52) - (890,666.88) (898,475,427.75)
Depreciation
Carrying Amount,
3,041,954.98 59,237,786.95 90,427,219.81 29,089,614.69 1,448,384,056.07
December 31, 2017

22
 The PUP has eight parcels of land acquired through donation and being used in the
operations located on Main, Campuses and Branches remained not recognized in the
agency books.

Location Land Area

1 PUP Main Campus, Sta. Mesa ,Manila 113,883 sq. m
2 PUP Commonwealth Campus, Commonwealth, Quezon City 1,087.30 sq. m
3 PUP Taguig Campus, Taguig City 82,158 sq. m
4 PUP Maragondon Campus, Maragondon, Cavite 13,298 sq. m
5 PUP Sto. Tomas Campus, Sto. Tomas, Batangas 2.430 hectares
6 PUP Mulanay Campus, Mulanay, Quezon 30,000 sq. m
7 PUP Bansud Campus, Bansud ,Oriental Mindoro 50,000 sq. m
8 PUP NDC Campus, Sta. Mesa, Manila 103,000 sq. m

11. Intangible Asset

This consists of the following account:

Account Title 2017 2016

Computer Software 495,000.00 495,000.00
Accumulated Amortization (488,404.14) (206,005.26)
Total 6,595.86 288,994.74

Intangible asset consists of computer software purchased for the software licenses on
November 16, 2014.

12. Financial Liabilities

This consists of the following accounts:

Account Title 2017 2016

Current Non-Current Current Non-Current
Accounts Payable 105,537,252.20 - 126,008,940.27 -
Due to Officers & 5,989,779.50 - 12,006,310.08 -
Employees
Loans Payable - 19,535,359.44 415,126,388.10 19,535,359.44 415,126,388.10
Domestic
Total 131,062,391.14 415,126,388.10 157,550,609.79 415,126,388.10

Accounts Payable represents the balance of unpaid obligations to employees and

creditors for CY 2017. Obligated amounts were projects not yet implemented and/or
goods not yet delivered which were included in the List of Not Yet Due and
Demandable Payables amounting ₱179,124,197.60.

23
 Due to Officers and Employees account represents the recognition of liability of the
agency to its employees at the time services were rendered.

Loans Payable – Domestic account pertains to the University’s loan of

₱575,785,170.70 from the Government Service Insurance System (GSIS) for the
purchase of the Condotel-Hostel located at Aciete St., Sta. Mesa, Manila payable in
30 years with a monthly installment of ₱1,199,796.10 for the first 24 months and
₱1,627,946.62 for the remaining 336 months. Payment of the loan started on March
31, 2008 with total amortization payment of ₱141,123,423.18 as of November 2015.
On November 2015, a Notice of Suspension was received that cause a temporary
suspension of monthly amortization until the amended contract was agreed upon
between the PUP and GSIS.

13. Inter-Agency Payables

This consists of the following accounts:

Account Title 2017 2016

Due to BIR 23,846,583.56 30,871,249.88
Due to GSIS 1,647,467.84 1,162,487.39
Due to Pag-IBIG 1,451,223.61 1,831,043.40
Due to PhilHealth 174,092.05 813,271.14
Due to NGAs 29,529,589.03 27,058,369.88
Due to GOCCs 1,291,000.00 5,834,442.71
Due to LGUs 28,699,423.10 37,962,331.49
Total 86,639,379.19 105,533,195.89

Due to BIR represents taxes withheld from the salaries, bonuses and allowances of
officials and employees and taxes withheld from various suppliers of goods and
services. In conformity with the RCA, the “Tax Refunds Payable” balance is also
added to this account.

Due to GSIS represents mandatory contributions deducted from the salaries of

officials and employees and government share for the month of December 2017
which are due for remittance in January 2018.

Due to PAG-IBIG represents mandatory contributions deducted from the salaries of

officials and employees and government share for the month of December 2017
which are due for remittance in January 2018.

Due to PhilHealth represents mandatory contributions deducted from the salaries of

officials and employees and government share for the month of December 2017
which are due for remittance in January 2018.

24
 Due to NGAs consists of funds received from other government agencies such as
Commission on Higher Education (CHED), Department of Science and Technology
(DOST), National Commission for Culture and the Arts (NCCA), Movie and
Television Review and Classification Board (MTRCB) and Department of Education
(DepEd) to implement research programs and project.

Due to GOCCs consists of fund received from Philippine International Training

Corporation – Contact Center ng Bayan (PITC-CCB) and Philippine Charity
Sweepstakes Office (PCSO) intended for the implementation of Contact Center ng
Bayan and educational assistance.

Due to LGUs represents funds received from different municipalities intended for the
operational requirements of the locally funded university campuses.

14. Other Payables

This account consists of:

Account Title 2017 2016

Other Payables 69,437,954.10 87,907,305.05
Total 69,437,954.10 87,907,305.05

Other Payables represents funds from various scholarships granted by private

individuals and institutions for the deserving University students.

15. Trust Liabilities

This consists of the following accounts:

Account Title 2017 2016

Guaranty/Security Deposits Payable 4,625,394.46 6,091,796.39
Trust Liabilities 592,383.01 637,132.26
Customers Deposit Payable 2,575,260.33 2,106,366.73
Total 7,793,037.80 8,835,295.38

Guaranty/Security Deposits Payable represents amount collected from contractor as

guarantee for any damage or destruction of the works, and is subject to refund after
the lapse of the warranty period.

Trust Liabilities pertains to the amount collected from contractors/bidders to

guarantee the faithful performance of the winning bidder of its obligations under the
contract in accordance with the bidding documents, and is refundable to the
contractor/bidder upon final acceptance of the end user.

Customer’s Deposit Payable represents advances made by concessionaires and

tenants of Hasmin Hostel.

25
16. Service and Business Income

This consists of the following:

Account Title 2017 2016

Service Income
Clearance and Certification Fees 10,612,717.30 10,507,439.00
Fines and Penalties - Service Income 319,469.98 10,507,439.00
2,726,992.85
Other Service Income 196,135,526.21 143,392,798.74
Total 207,067,713.49 156,627,230.59
Business Income
Tuition Fees 131,572,984.00 187,281,332.06
Other School Fees 36,819,971.41 31,532,936.10
Examination Fees 1,523,329.28 31,532,936.10
2,068,976.00
Seminar/Training Fees 4,097,382.48 -
Rent/Lease Income 22,609,351.89 18,870,710.90
Communication Network Fees - 18,870,710.90
6,005.00
Income from Hostels/Dormitories and 3,670,339.53 2,760,731.83
Other Like Facilities
Interest Income - Other Income 3,230.58 26,390.06
Fines & Penalties - Business Income 358,383.71 62,608.98
Other Business Income 35,766,056.46 19,585,756.90
Total 236,421,029.34 262,195,447.83
Total Service and Business Income 443,488,742.83 418,822,678.42

17. Personnel Services

17.1 Salaries and Wages

Particulars 2017 2016

Salaries and Wages - Regular 367,521,730.43 350,979,388.80
Salaries and Wages - Casual/Contractual 68,807,862.58 61,603,784.63
Total Salaries and Wages 436,329,593.01 412,583,173.43

17.2 Other Compensation

Particulars 2017 2016

Honoraria 247,853,459.12 254,350,644.19
Overtime and Night Pay 179,991,050.97 170,644,892.85
Year End Bonus 124,841,041.80 110,764,311.93
Personal Economic Relief Allowance (PERA) 36,616,612.44 37,558,769.81
Other Bonuses and Allowances 25,420,291.16 28,239,630.49
Cash Gift 10,107,083.43 8,479,094.68
Clothing/Uniform Allowance 7,025,000.00 7,130,000.00

26
 Particulars 2017 2016
Representation Allowance (RA) 1,014,000.00 902,000.00
Transportation Allowance (TA) 882,000.00 770,000.00
Subsistence Allowance 604,227.27 633,500.00
Laundry Allowance 82,005.83 86,375.00
Longevity Pay 397.35 -
Total Other Compensation 634,437,169.37 619,559,218.95

17.3 Employees Future Benefits

The PUP and its employees contribute to the GSIS in accordance with the
Commonwealth Act No. 186 as amended. The GSIS administers the plan,
including payment of pension benefits to employees to whom the act applies.

Moreover, the PUP and its employees also contribute to PAG-IBIG in

accordance with the Republic Act No. 9679 or Home Development Mutual
Fund Law of 2009.

Also, they contribute to PhilHealth in accordance with the National Health

Insurance Act of 2013 which features a variety of comprehensive health care
services from basic primary care to catastrophic packages to provide members
and their families with the information they need on benefits and benefits
availment. It includes eligibility requirements, coverage, and general guidelines
for specific diseases and selections criteria among others.

17.4 Personnel Benefit Contributions

Particulars 2017 2016

Retirement and Life Insurance Premiums 66,276,870.71 60,875,184.95
PhilHealth Contributions 5,129,836.42 3,301,582.20
Employees Compensation Insurance Premiums 1,754,982.79 1,746,785.08
PAG-IBIG Contributions 1,886,254.32 1,598,415.72
Total Personnel Benefit Contributions 75,047,944.24 67,521,967.95

17.5 Other Personnel Benefits

Particulars 2017 2016

Other Personnel Benefits 165,600,180.02 116,915,784.63
Terminal Leave Benefits 18,312,050.68 19,183,750.27
Retirement Gratuity - 1,977,634.61
Lump-sum for Step Increment-Meritorious 1,780,418.05 1,006,109.75
Performance
Lump-sum for Step Increment-Length of 1,083,492.25 960,686.73
Service
Other Lump-sum Benefits 204,350.52 -
Total Other Personnel Benefits 186,980,491.52 140,043,965.99

27
18. Maintenance and Operating Expenses

18.1. Traveling Expenses

Particulars 2017 2016

Traveling Expenses - Local 6,140,052.45 5,382,737.02
Traveling Expenses - Foreign 2,556,832.31 1,711,699.25
Total Traveling Expenses 8,696,884.76 7,094,436.27

18.2. Training and Scholarship Expenses

Particulars 2017 2016

Training Expenses 9,562,105.74 7,784,578.49
Scholarship Grants/Expenses 48,983,900.00 20,964,255.40
Total Training and Scholarship Expenses 58,546,005.74 28,748,833.89

18.3. Supplies and Materials Expenses

Particulars 2017 2016

Office Supplies Expenses 12,211,427.39 18,527,300.53
Accountable Forms Expenses 175,000.00 734,000.00
Drugs and Medicines Expenses 200,869.80 -
Medical, Dental and Laboratory Supplies 129,290.00 1,438,920.78
Expenses
Fuel, Oil and Lubricants Expenses 871,601.45 743,603.95
Textbooks and Instructional Materials Expenses 60,800.00 352,615.70
Chemical and Filtering Supplies Expenses 77,376.00 -
Semi-Expendable Machinery & Equipment
Expense
Office Equipment 2,203,858.00 207,161.70
Information and Communication 91,133.00 -
Technology Equipment
Communication Equipment - 143,200.00
Technical and Scientific Equipment 91,809.00 323,000.00
Other Machinery and Equipment 1,143,570.00 39,174.00
Furniture & Fixture - 1,195,900.00
Other Supplies and Materials Expenses 16,186,359.40 20,661,681.56
Total Supplies and Materials Expenses 33,443,094.04 44,366,558.22

18.4. Utility Expenses

Particulars 2017 2016

Water Expenses 42,906,062.03 47,098,591.83
Electricity Expenses 47,686,431.45 45,699,930.97
Total Utility Expenses 90,592,493.48 92,798,522.80

28
18.5. Communication Expenses

Particulars 2017 2016

Postage and Courier Services 56,027.00 24,979.00
Telephone Expenses – Mobile 950,835.39 908,167.11
Telephone Expenses – Landline 2,183,635.71 2,143,471.04
Internet Subscription Expenses 3,333,749.62 3,597,001.24
Cable, Satellite, Telegraph and Radio Expenses 7,660.00 7,680.00
Total Communication Expenses 6,531,907.72 6,681,298.39

18.6. Awards/Rewards and Prizes

Particulars 2017 2016

Awards/Rewards Expenses 105,000.00 57,000.00
Prizes 168,500.00 382,336.60
Total Awards/Rewards and Prizes 273,500.00 439,336.60

18.7. Confidential, Intelligence and Extraordinary Expenses

Particulars 2017 2016

Extraordinary and Miscellaneous Expenses 361,284.42 539,104.41
Total Confidential, Intelligence and 361,284.42 539,104.41
Extraordinary Expenses

18.8. Professional Services

Particulars 2017 2016

Legal Services 828,000.00 350,300.00
Auditing Services 12,338.69 55,700.61
Consultancy Services 1,013,500.00 795,000.00
Total Professional Services 1,853,838.69 1,201,000.61

18.9. General Services

Particulars 2017 2016

Janitorial Services 32,378,539.54 30,486,767.19
Security Services 24,950,462.43 24,948,757.71
Other General Services 4,164,685.37 3,740,385.53
Total Professional Services 61,493,687.34 59,175,910.43

29
18.10. Repairs and Maintenance
Particulars 2017 2016
Repairs and Maintenance - Buildings & Other 21,239,788.21 8,922,972.48
Structures
Repairs and Maintenance - Machinery & 285,427.00 1,125,326.00
Equipment
Repairs and Maintenance - Office Equipment 396,023.84 379,114.16
Repairs and Maintenance - ICT Equipment - 45,981.00
Repairs and Maintenance - Transportation 298,951.89 324,172.14
Equipment
Repairs and Maintenance - Furniture and Fixtures 229,400.00 495,700.00
Repairs and Maintenance - Other Property, Plant 227,040.00 309,600.00
& Equipment
Total Repairs and Maintenance Expenses 22,676,630.94 11,602,865.78

18.11. Taxes, Insurance Premiums and Other Fees

Particulars 2017 2016
Taxes, Duties and Licenses 160,213.44 327,345.00
Fidelity Bond Premiums 257,175.00 290,865.00
Insurance Expenses 6,003,029.48 5,461,500.99
Total Taxes, Insurance Premiums and 6,420,417.92 6,079,710.99
Other Fees

18.12. Labor and Wages

Particulars 2017 2016
Labor and Wages 3,277,665.00 3,165,579.50
Total Labor and Wages 3,277,665.00 3,165,579.50

18.13. Other Maintenance and Operating Expenses

Particulars 2017 2016
Advertising Expenses 67,040.00 216,384.00
Printing and Publication Expenses 3,860,734.15 2,780,541.56
Representation Expenses 6,012,000.00 5,951,000.00
Transportation and Delivery Expenses 2,450.00 88,859.00
Rent/Lease Expenses 3,303,926.36 4,151,597.48
Membership Dues and Contributions to Organizations 2,824,003.45 1,298,749.57
Subscription Expenses 499,833.00 1,012,959.42
Other Maintenance and Operating Expenses 6,984,496.57 6,226,674.59
Total Other Maintenance and Operating Expenses 23,554,483.53 21,726,765.62

30
19. Direct Costs
Account Title 2017 2016
Cost of Sales 3,230,231.75 8,131,939.33

Cost of Sales represents merchandise inventory used by the PUP canteen for CY
2017.

20. Non-Cash Expenses

20.1. Depreciation
Particulars 2017 2016
Depreciation - Land Improvements 2,733,462.72 2,968,146.69
Depreciation - Buildings and Other Structures 52,413,551.48 52,413,551.48
Depreciation - Machinery and Equipment 12,748,363.06 13,306,302.84
Depreciation - Transportation Equipment 796,962.80 796,962.80
Depreciation - Furniture, Fixtures and Books 717,028.65 1,277,203.98
Depreciation - Other Property, Plant and Equipment 22,742.44 32,557.02
Total Depreciation 69,432,111.15 70,794,724.81

20.2. Amortization
Particulars 2017 2016
Amortization – Intangible Assets 282,398.88 99,083.88

20.3. Impairment Loss

Particulars 2017 2016
Impairment Loss - Loans and Receivables - 786,070.57

21. Net Financial Assistance/Subsidy

Subsidy from National Government consists of NCA received from the Department
of Budget and Management for the payment of expenses for the University’s
operational requirements and liabilities and Tax Remittance Advice issued to the
Bureau of Internal Revenue, net of cash refund and reversal of unutilized NCA to the
National Treasury.

Breakdown is as follows:

Financial Assistance/Subsidy from NGAs, LGUs, GOCCs

Particulars 2017 2016
Total NCA Received 1,330,946,817.68 1,153,963,627.74
Tax Remittance Advice (TRA) 162,502,584.80 128,060,182.70
Total NCA 1,493,449,402.48 1,282,023,810.44
Less: Reversion of Unused NCA 145,518,756.75 93,927,277.80
Return of Cash Advance & Salaries 167,642.01 271,779.69
Subsidy from National Government, net 1,347,763,003.72 1,187,824,752.95

31
22. Non-Operating Income/Gain
This consists of the following:

22.1. Grants and Donations

Account Title 2017 2016

Income from Grants and Donations in Cash 653,620.38 -
Total Income from Grants and Donations in Cash 653,620.38 -

22.2. Gains

Account Title 2017 2016

Gain on Foreign Exchange 148,358.49
Other Gains 8,816,870.25 381,834.91
6,262,642.11
Total Non-Operating Income/Gain 8,965,228.74 6,644,477.02

Other Gains represents miscellaneous income such as administrative fees from

students, job posting from private companies, sales of waste materials and
unserviceable properties.

23. Reconciliation of Net Cash Flows from Operating Activities to Surplus/(Deficit)

Particulars 2017 2016

Surplus/Deficit for the year 77,408,762.17 10,151,839.97
Revenue and expense items adjusted directly through accumulated surplus:
Remittances to Bureau of the Treasury 144,417.33 1,964,793.49
Various Staled Checks that resulted to the - 4,289,298.61
understatement of income
Payment of refund of memorabilia per BOR
resolution covering SY 2008 to 2011 and other 38,780,720.71 10,989,589.31
adjustment to accumulated surplus
Payment for the repairs of Building charged as - 8,922,972.48
expenses
Accounts payable that are considered assets - (55,934,414.78)
Adjusted Surplus/Deficit for the year 116,333,900.21 (19,615,920.92)
Non-cash movements
Depreciation 69,432,111.15 70,794,724.81
Impairment Losses - 786,070.57
Amortization 282,398.88 99,083.88
Gains on Foreign Exchange (148,358.49) (381,834.91)
Other Gains (8,816,870.25) (6,262,642.11)
Increase/Decrease of Current Asset/Liability accounts
Increase/Decrease in Loans and Receivables (1,526,735.87) 393,219.31
Increase/Decrease in Inter-Agency Receivables (1,736,161.36) (1,092,069.74)
Increase/Decrease in Other Receivables (79,058.94) (192,993.94)

32
 Particulars 2017 2016
Increase/Decrease in Inventory held for Sale (4,154,375.53) 258,416.94
Increase/Decrease in Inventory held for (20,882,932.57) 7,145,630.61
Consumption
Increase/Decrease in Advances (1,068,079.38) 514,052.84
Increase/Decrease in Prepayments (8,129,507.22) (6,637,409.26)
Increase/Decrease in Deposits (5,000.00) -
Increase/Decrease in Payables (26,488,218.65) 23,634,779.48
Increase/Decrease in Inter-Agency Payables (18,893,816.70) 23,041,354.50
Increase/Decrease in Other Payables (18,469,350.95) 8,525,314.42
Net Cash Flows from Operating Activities 75,649,944.33 101,009,776.48

24. Changes in Net Assets/Equity

Particulars 2017 2016

Balance at January 1 1,292,715,113.52 1,298,983,678.70
Prior Period Adjustments - 30,720.00
Surplus / (Deficit) for the period 77,408,762.17 10,151,839.97
Adjustment of net revenue recognized directly 22,415,109.48 (16,451,125.15)
in net assets/equity
Balance, December 31 1,392,538,985.17 1,292,715,113.52

24.1. Prior Period Adjustments

Particulars Amount
a. To recognize unrecorded the issuance of supplies to end users
(129,280.00)
on years 2010 and 2012
b. To recognize Notice of Disallowance # 2014-001-164 dated
April 24, 2014 representing payments of Anniversary Bonus 160,000.00
for the members of the PUP Board of Regents for 2012-2013
Total 30,720.00

a. The issuance of supplies to end users on years 2010 and 2012 of

₱129,280.00 is not yet recorded in 2016 financial statements. The financial
statements of 2016 have been restated to correct this error. The effect of the
restatement on those financial statements is summarized below. There is no
effect in 2016 and 2017 Statement of Financial Performance

Effect on 2016 Statement of Financial Position

Particulars Amount
Decrease in Current Assets 129,280.00
Decrease in Net Assets 129,280.00

33
 b. Notice of Disallowance # 2014-001-164 dated April 24, 2014 representing
payments of Anniversary Bonus for the members of the PUP Board of
Regents for 2012-2013 was not yet recognized in 2016 financial statements.
The financial statements of 2016 have been restated to correct this error.
The effect of the restatement on those financial statements is summarized
below. There is no effect in 2016 and 2017 Statement of Financial
Performance.

Effect on 2016 Statement of Financial Position

Particulars Amount
Increase in Current Assets 160,000.00
Increase in Net Assets 160,000.00

24.2. Adjustments in Surplus/(Deficit) for 2016

Particulars Amount
a. To recognized accrual of salaries for CY 2016 (11,596,566.85)
b. To recognized accrual of salaries for CY 2016 (139,644.95)
c. To correct entry made under check # 393049 dated
November 24, 2016 & check # 404762 dated December 1, (28,000.00)
2016; Scholarship Grant Expense
d. To correct JEV No. 2016-12-0261 p.3; Tuition Fees and
11,142.90
Interest Income
e. To recognize on-line collection of PUPSIS & PUPCET for
229,114.00
SY 2015-2016 for the months Aug to Dec 2016
f. To recognize income of university canteen for various
578,976.00
catering service for year 2016
g. To recognize correction of erroneous posting in the General
(2,762,253.03)
Ledger for the month of December 2016
Total (13,707,231.93)

a. Accrual of Salaries and Wages - Regular of ₱11,736,211.80, Due to BIR of

₱2,920,062.36, Other Payables of ₱352,000.00 and Due to Officers and
Employees of ₱8,324,504.49 respectively were inadvertently omitted from
financial statements of 2016. The financial statements of 2016 have been
restated to correct this error. The effect of the restatement on those financial
statements is summarized below. There is no effect in 2017 Statement of
Financial Performance.

Effect on 2016 Statement of Financial Performance

Particulars Amount
Increase in Operating Expense 11,596,566.85
Decrease in Net Income 11,596,566.85

34
 Effect on 2016 Statement of Financial Position

Particulars Amount
Increase in Current Liabilities 11,596,566.85
Decrease in Net Assets 11,596,566.85

b. Accrual of Salaries and Wages – Regular of ₱139,644.95, Due to BIR of

₱39,660.39, Due to GSIS of ₱1,448.46, Due to Officers and Employees of
₱176,661.11 and reduction of Accounts Payable of ₱78,125.01 was not
recorded in 2016 financial statements. The financial statements of 2016
have been restated to correct this error. The effect of the restatement on
those financial statements is summarized below. There is no effect in 2017
Statement of Financial Performance.

Effect on 2016 Statement of Financial Performance

Particulars Amount
Increase in Operating Expense 139,644.95
Decrease in Net Income 139,644.95

Effect on 2016 Statement of Financial Position

Particulars Amount
Increase in Current Liabilities 139,644.95
Decrease in Net Assets 139,644.95

c. Scholarship Grants/Expenses of ₱28,000.00 was inadvertently omitted from

financial statements of 2016. The financial statements of 2016 have been
restated to correct this error. The effect of the restatement on those financial
statements is summarized below. There is no effect in 2017 Statement of
Financial Performance.

Effect on 2016 Statement of Financial Performance

Particulars Amount
Increase in Operating Expense 28,000.00
Decrease in Net Income 28,000.00

Effect on 2016 Statement of Financial Position

Particulars Amount
Decrease in Current Assets 28,000.00
Decrease in Net Assets 28,000.00

35
d. Tuition Fees and Interest Income of ₱9,375.00 and ₱1,767.90 respectively
was earned during 2016 but not yet recorded in financial statements. The
financial statements of 2016 have been restated to correct this error. The
effect of the restatement on those financial statements is summarized below.
There is no effect in 2017 Statement of Financial Performance.

Effect on 2016 Statement of Financial Performance

Particulars Amount
Increase in Operating Income 11,142.90
Increase in Net Income 11,142.90

Effect on 2016 Statement of Financial Position

Particulars Amount
Increase in Current Assets 11,142.90
Increase in Net Assets 11,142.90

e. Tuition Fees and Other Service Income of ₱3,713.00 and ₱225,401.00

respectively was earned in 2016 but not yet recorded in financial statements.
The financial statements of 2016 have been restated to correct this error.
The effect of the restatement on those financial statements is summarized
below. There is no effect in 2017 Statement of Financial Performance.

Effect on 2016 Statement of Financial Performance

Particulars Amount
Increase in Operating Income 229,114.00
Increase in Net Income 229,114.00

Effect on 2016 Statement of Financial Position

Particulars Amount
Increase in Current Assets 229,114.00
Increase in Net Assets 229,114.00

f. Other Business Income of ₱578,976.00 was earned during 2016 but not yet
recorded in financial statements. The financial statements of 2016 have been
restated to correct this error. The effect of the restatement on those financial
statements is summarized below. There is no effect in 2017 Statement of
Financial Performance.

Effect on 2016 Statement of Financial Performance

Particulars Amount
Increase in Operating Income 578,976.00
Increase in Net Income 578,976.00

36
 Effect on 2016 Statement of Financial Position

Particulars Amount
Increase in Current Assets 578,976.00
Increase in Net Assets 578,976.00

g. Issuance of office supplies to end user was erroneously recorded in 2016 as

delivery from supplier amounted to ₱2,762,253.03. The financial statements
of 2016 have been restated to correct this error. The effect of the restatement
on those financial statements is summarized below. There is no effect in
2017 Statement of Financial Performance

Effect on 2016 Statement of Financial Performance

Particulars Amount
Increase in Operating Expense 2,762,253.03
Decrease in Net Income 2,762,253.03

Effect on 2016 Statement of Financial Position

Particulars Amount
Decrease in Current Assets 2,762,253.03
Decrease in Net Assets 2,762,253.03

25. University Officials and Members of BOR

25.1. Members of the Board of Regents (BOR)

The BOR is the governing body of the University, composed of the

Commissioner from CHED as Chairman, the President of the University as
Vice Chairman, and members which includes Chairman of Commission on
Education, Arts and Culture of the Senate or his duly authorized representative,
Chairperson of House Committee on Higher and Technical Education from the
House of Representatives or his duly authorized representative, Director
General of the National Economic Development Authority (NEDA) or his duly
authorized representative, the Secretary of the Department of Science and
Technology (DOST) or his duly authorized representative, the President of the
Alumni Association of the University, two prominent citizens representing the
private sector, President of PUP Federated Faculty Association and President
of Student Council of PUP.

37
 25.2. Compensation of University Officials and Members of the BOR

The aggregate remuneration of PUP officials and members of the governing

body is as follows:

Particulars Aggregate
Basic Salaries Remuneratio
14,846,970.36
Allowances and Other Benefits excluding Discretionary Allowance n
13,038,954.75
Discretionary Allowance 457,006.87
Total 28,342,931.98

The Chairman and members of the BOR who have supervision over the PUP is
not remunerated by latter except for the PUP President and PUP Faculty
Representative. The members of the BOR serve without compensation other
than actual and necessary expenses incurred either in the attendance to the
meetings of the BOR or on other official business related to his position as
regent as authorized by the Board.

26. Status of Fund

26.1. Breakdown of Allotments, Obligations & Balances

Description Allotment Obligations Unobligated Balance

Received Incurred of Allotment
Current Year
Personal Services 1,123,701,416.00 1,077,901,285.70 45,800,130.30
MOOE 233,587,791.00 163,172,143.64 70,415,647.36
Capital Outlay 82,410,000.00 - 82,410,000.00
Total 1,439,699,207.00 1,241,073,429.34 198,625,777.66

26.2. Breakdown of Notice of Cash Allocation

LBP NCAs Obligations Unexpended Reversion to

Account Received Liquidated Balance National
No. Treasury
90001-1 1,311,009,680.68 1,169,701,138.50 141,308,542.18 141,308,542.18
90009-6 19,937,137.00 15,726,922.43 4,210,214.57 4,210,214.57
Total 1,330,946,817.68 1,185,428,060.93 145,518,756.75 145,518,756.75

38