Republic of The Philippines City Government of Tacloban Tacloban City

Republic of the Philippines
City Government of Tacloban

Tacloban City
Notes to Consolidated Financial Statements

(All amounts in Philippine Peso unless otherwise stated)
(With Comparative Figures for CY 2018)
Note 1 – Profile
Tacloban City is the first Highly Urbanized City (HUC) in Eastern Visayas by virtue of
Presidential Proclamation No. 1637 signed by President Gloria Macapagal-Arroyo on
October 4, 2008, which was consequently ratified by the City’s constituents on December
18 of the same year. Prior to its new status, Tacloban was a component City of the Province
of Leyte since 1952 by virtue of Republic Act No. 760. Tacloban City has one hundred
thirty-eight (138) barangays, of which one hundred twenty-four (124) are within the city
proper, while fourteen (14) are rural barangays.
Tacloban City is the regional center of Eastern Visayas, being the main gateway to Luzon,
Mindanao and other regions in the Visayas. The City is located three hundred sixty (360)
miles (580 km) southeast of Manila. Tacloban is the most populated city in Eastern Visayas
with a total of 239,938 households according to the Philippine Statistics Authority (PSA)
census of population conducted in 2014. Tacloban was briefly the capital of the Philippines
from October 20, 1944 to February 27, 1945, during the presidency of Sergio Osmeña, Sr.,
until the final liberation of the Philippines from the Japanese occupation during the World
War II.
On November 8, 2013, one of the strongest typhoons in history with international code
name Haiyan and locally named as Yolanda, struck Eastern Visayas. Tacloban City was one
that sustained the most damage to properties and loss of lives. Its economy suffered a lot,
down to ground zero. However, within the past four (4) years after the devastation, the city
has recovered its niche in the regional economy, standing to its vision of “A Globally
competitive, resilient, green city propelled by God-loving, gender-responsive leaders and
empowered citizenry”.
In an extensive survey conducted by the National Competitive Council of the Philippines in

CY 2017, Tacloban City ranks number one (1) as the most improved Highly Urbanized City
in the Philippines. Rankings of cities are based on sum of their scores in four (4) pillars;
Economic dynamisms, Government efficiency, Infrastructure, and Resiliency.
Likewise, the City Government of Tacloban in CY 2017 was among the three (3) cities in
Eastern Visayas that was awarded the Seal of Good Local Governance (SGLG) by the
Department of Interior and Local Government (DILG).
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The City Mayor’s Twelve-Point Agenda for Tacloban City under her term were as follows:
1. Poverty Alleviation – Wholistic and responsive programs for combating poverty.

2. Health and Nutrition – Better medical services through the Tacloban City Hospital and
other public health facilities. Free medical checkups, neo-natal delivery, and emergency
surgical procedures. Establishment of Health Centers in more barangays. Promotion of
better nutrition for children and mothers.
3. Housing – Completion of permanent shelters for our Internally Displaced Persons, with
running water, electricity and other basic utilities, and with easy access to the City
Government’s social services.
4. Livelihood and Employment Promotion – Expansion and intensification of the
vocational courses under the C.L.E.P. Program, and link the graduates to employment
opportunities. Promotion of sustainable livelihood in the City.
5. Education – Continued support to primary and secondary education. Programs for out-
of-school youth. More scholarship grants to deserving tertiary-level students.
6. Youth – Programs and activities to foster a local youth culture that is well-informed and
proactive in advocacies related to drug abuse, reproductive health, teenage pregnancy,
and other issues relevant to young people. Promotion of sports, arts, and culture among
the youth.
7. Tourism and Business-Friendly Tacloban City – Improved investment incentives and
promotion to ensure a business climate conducive to investors. A streamlined, user-
friendly, online business permits and licensing system. Promotion of Tacloban tourism
by marketing Tacloban as a city of progress and resilience
8. Infrastructure – Building back better after Super Typhoon Haiyan. Disaster resilient
and climate change adaptive infrastructure projects.
9. Disaster Preparedness – Having survived Typhoon Haiyan’s storm surge along with
her whole family, disaster preparedness and awareness is one of my top priorities.
Intensive disaster preparedness programs, information campaigns, and drills in
barangays and schools will be aggressively conducted.
10. Peace and Order – Top priority for a secured and progressive city.
11. Clean and Green Program – Enhancement of the “Limpyo Tacloban, Siyudad
Mahusay” project by promoting community participation and encouraging proper waste
segregation and disposal. Promotion of vegetable gardening in every household to
promote food security.
12. Organizational Restructuring and streaming of operations of the Tacloban City
Government.
Note 2 – The financial statements of the City Government of Tacloban have been prepared in
accordance with and comply with the Philippine Public Sector Accounting Standards
(PPSAS). The consolidated financial statements are presented in pesos, which is the
functional and reporting currency of the LGU. The accounting policies have been applied
starting the year 2015.
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Note 3 – Summary of Significant Accounting Policies
3.1 Basis of accounting
The consolidated financial statements are prepared on an accrual basis in accordance

with the Philippine Public-Sector Accounting Standards (PPSAS).
3.2 Consolidation
Fund Composition
The three (3) funds maintained by the City Government of Tacloban are as follows:
a. General Fund (GF) – fund that every local government unit shall maintain which
shall be used to account such monies and resources as may be received by and
disbursed from the local treasury. The General Fund shall consist of monies and
resources of the local government which are available for the payment of
expenditures, obligations or purposes not specifically declared by law as accruing
and chargeable to, or payable from, any other fund. Local government units shall
maintain special accounts in the general fund for the following:
 Public utilities and other economic enterprises;

 Loans, interests, bond issues, and other contributions for specific
purposes;
 Development projects funded from the share of the local government
unit concerned in the internal revenue allotment and such other
special accounts which may be created by law or ordinance.
(Sec. 308 & 313 of The Local Government code of 1991 (RA 7160))
b. Special Education Fund (SEF) – consists of the respective shares of provinces,
cities, municipalities, and barangays in the proceeds of the additional tax on real
property. The proceeds from the additional one percent (1%) tax on real property
accruing to the Special Education Fund shall be automatically released to the local
school boards, provided, however, that the proceeds shall be allocated for the
operation and maintenance of public schools, construction and repair of school
buildings, facilities and equipment, educational research, purchase of books and
periodicals, sports development as determined and approved by the Local School
Board. (Sec. 272 & 309A The Local Government code of 1991 (RA 7160)
c. Trust Fund (TF) – consists of private and public monies which have officially
come into the possession of the local government or of a local government official
as trustee, agent, or administrator, or which have been received as guaranty for the
fulfillment of some obligation. A Trust Fund shall only be used for the specific
purpose for which it was created or for which it came into the possession of the
local government unit. (Sec. 309B of The Local Government code of 1991 (RA
7160))
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The controlled entities (funds) are all those over which the controlling entity has the
power to govern the financial and operating policies. Inter-group transaction, balances
and unrealized gains and losses on transactions between entities and funds, if any are
eliminated in full. The LGU maintains special accounts for income under the
General Fund for the following economic enterprises it operates:
 Operation of Markets
 Operation of Convention Centers
 Operation of Fish Port
 Operation of Slaughterhouse
 Operation of Bus Terminal and Shopping Complex
3.3 Revenue recognition
Revenue from non-exchange transactions
Taxes, fees and fines
The LGU recognizes revenues from taxes and fines when the event occurs and the asset
recognition criteria are met. To the extent that there is a related condition attached that
would give rise to a liability to repay the amount, liability is recognized instead of
revenue. Other non-exchange revenues are recognized when it is improbable that the
future economic benefit or service potential associated with the asset will flow to the
entity and the fair value of the asset can be measured reliably.
Transfers from other government entities
Revenues from non-exchange transactions with other government entities are measured
at fair value and recognized on obtaining control of the asset (cash, goods, services and
property) if the transfer is free from conditions and it is probable that the economic
benefits or service potential related to the asset will flow to the LGU and can be
measured reliably.
Revenue from exchange transactions
Rendering of services
In cases when the LGU recognizes revenue from rendering of services by reference to
the stage of completion when the outcome of the transaction can be estimated reliably.
The stage of completion is measured by reference to labor hours incurred to date as a
percentage of total estimated labor hours.
Where the contract outcome cannot be measured reliably, revenue is recognized only to
the extent that the expenses incurred.
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Sale of goods
Revenue from the sale of goods, if any, is recognized when the significant risks and
rewards of ownership have been transferred to the buyer, usually on delivery of the
goods and when the amount of revenue can be measured reliably and it is probable that
the economic benefits or service potential associated with the transaction will flow to
the LGU.
3.4 Investment Property
Investment properties are measured initially at cost, including transaction costs. The
carrying amount includes the replacement cost of components of an existing investment
property at the time that cost is incurred if the recognition criteria are met and excludes
the day-to-day maintenance of an investment property.
Investment property acquired through a non-exchange transaction is measured at its fair

value at the date of acquisition. Subsequent to initial recognition, investment properties
are measured using the cost model and are depreciated over a 30-year period.
Investment properties are derecognized either when they have been disposed of or when
the investment property is permanently withdrawn from use and no future economic
benefit or service potential is expected from its disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is recognized in the surplus or
deficit in the period of derecognition. Transfers are made to or from investment property
only when there is a change in use.
3.5 Property, Plant and Equipment
All property, plant and equipment are stated at cost less accumulated depreciation. Cost
includes expenditure that is directly attributable to the acquisition of the items. When
significant parts of the property, plant and equipment are required to be replaced at
intervals, the LGU recognizes such parts as individual assets with specific useful lives
and depreciates them accordingly. Likewise, when a major inspection is performed, 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 in surplus or deficit as incurred. Where an asset is acquired in a non-
exchange transaction for nil or nominal consideration, the asset is initially measured at
its fair value.
Depreciation on assets is charged on a straight-line basis over the useful life of the asset.
The estimated residual value has been (10%) percent of cost during the prior years,
however the LGU, effective CY 2015 has reduced the same to five (5%) of cost or
appraised values in compliance to PPSAS.
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Depreciation is charged at rates calculated to allocate cost or valuation of the asset less
any estimated residual value over its remaining useful life per COA Circular No. 2004-
003 dated October 4, 2004 as follows:
Estimated
Property, Plant and Equipment Useful Life
(in years)
 Land Improvements
 Land Improvements 10
 Runways/taxiways 20
 Railways 40
 Electrification, Power and Energy
Structures 10
 Buildings – those that are predominantly

 Wood 10
 Mixed 20
 Concrete 30
 Leasehold Improvements (Note 1)

 Land 10
 Building
♦ Wood 10
♦ Mixture 20
♦ Concrete 30
 Office, Equipment, Furniture and Fixtures

 Office Equipment 5
 Furniture and Fixtures 10
 IT Equipment – Hardware 5
 Library Books 5
 Machineries and Equipment

 Machineries 10
 Agricultural, Fishery and Forestry 10
 Airport Equipment 10
 Communication Equipment 10
 Construction and Heavy Equipment 10
 Firefighting Equipment and 7
Accessories
 Hospital Equipment 10
 Medical, Dental and Laboratory 10
Equipment
 Military and Police Equipment 10
 Sports Equipment
 Technical and Scientific Equipment 10
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 Other Machineries and Equipment 10
 Transportation Equipment
 Motor Vehicles 7
 Trains 10
 Aircraft and Aircraft Ground 10
Equipment
 Watercrafts 10
 Other Transportation Equipment 10
 Other Property, Plant and Equipment 5
As of December 31, 2018, the LGU has no leased assets. Leased assets, if any, may
consist of vehicles and machinery. The assets’ residual values and useful lives are
reviewed, and adjusted prospectively, if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount, or
recoverable service amount, if the asset’s carrying amount is greater than its estimated
recoverable amount or recoverable service amount. The LGU derecognizes items of
property, plant and equipment and/or any significant part of an asset upon disposal or
when no future economic benefits or service potential is expected from its continuing
use. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in
the surplus or deficit when the asset is derecognized.
Public Infrastructures were not previously recognized in the books. The LGU availed of
the 5-year transitional provision for the recognition of the Public Infrastructure. For the
first year of implementation of the PPSAS, the LGU will not recognize the Public
Infrastructure in the books of accounts.
3.6 Impairment of non-financial assets
Impairment of cash-generating assets
At each reporting date, the LGU assesses whether there is an indication that an asset
may be impaired. If any indication exists, or when annual impairment testing for an
asset is required, the LGU estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cash generating unit’s fair value less
costs to sell and its value in use and is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other
assets or groups of assets.
Where the carrying amount of an asset or the cash-generating unit (CGU) exceeds it
recoverable amount, the asset is considered impaired and is written down to its
recoverable amount. In assessing value in use, the estimated future cash flows are
discounted to their present value using a discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In
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determining fair value less costs to sell, recent market transactions are taken into
account, if available. If no such transactions can be identified, an appropriate valuation
model is used.
Impairment losses of continuing operations, including impairment on inventories, are

recognized in the statement of financial performance in those expense categories
consistent with the nature of the impaired asset.
For assets, an assessment is made at each reporting date as to whether there is any
indication that previously recognized impairment losses may no longer exist or may
have decreased. If such indication exists, the LGU estimates the asset’s or cash-
generating unit’s recoverable amount. A previously recognized impairment loss is
reversed only if there has been a change in the assumptions used to determine the asset’s
recoverable amount since the last impairment loss was recognized. The reversal is
limited so that the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognized for the asset in prior years. Such
reversal is recognized in surplus or deficit.
Impairment of non-cash generating assets
The LGU assesses at each reporting date whether there is an indication that a non-cash
generating asset may be impaired. If any indication exists, or when annual impairment
testing for an asset is required, the LGU estimates the asset’s recoverable service
amount. An asset’s recoverable service amount is the higher of the non-cash generating
asset’s fair value less costs to sell and its value in use.
Where the carrying amount of an asset exceeds its recoverable service amount, the asset
is considered impaired and is written down to its recoverable service amount.
In assessing value in use, the LGU has adopted the depreciation replacement cost
approach. Under this approach, the present value of the remaining service potential of an
asset is determined as the depreciated replacement cost of the asset. The depreciated
replacement cost is measured as the reproduction or replacement cost of the asset,
whichever is lower, less accumulated depreciation calculated on the basis of such cost,
to reflect the already consumed or expired service potential of the asset. In determining
fair value less costs to sell, the price of the assets in a binding agreement in an arm’s
length transaction, adjusted for incremental costs that would be directly attributed to the
disposal of the asset is used. If there is no binding agreement, but the asset is traded on
an active market, fair value less cost to sell is the asset’s market price less cost to
disposal. If there is no binding sale agreement or active market for an asset, the LGU
determines fair value less cost to sell based on the best available information.
For each asset, an assessment is made at each reporting date as to whether there is any
indication that previously recognized impairment losses may no longer exist or may
have decreased. If such indication exists, the Group estimates the asset’s recoverable
service amount. A previously recognized impairment loss is reversed only if there has
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been a change in the assumptions used to determine the asset’s recoverable service
amount since the last impairment loss was recognized. The reversal is limited so that the
carrying amount of the asset does not exceed its recoverable service amount, nor exceed
the carrying amount that would have been determined, net of depreciation, had no
impairment loss been recognized for the asset in prior years. Such reversal is recognized
in surplus or deficit.
Impairment losses were not previously recognized in the books as well in its first year of
implementation of the PPSAS, however this will be recognized in the succeeding years.
3.7 Financial instruments
As of December 31, 2018, LGU does not hold any financial instrument.
Initial recognition and measurement
Financial assets area classified as financial assets at fair value through surplus or
deficits, loans and receivables, held-to-maturity investments or available-for-sale
financial assets, as appropriate. The LGU determines the classification of its financial
assets at initial recognition.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way trades) are
recognized on the trade date, i.e., the date that the LGU commits to purchase or sell the
asset.
The LGU’s financial assets include: cash and short-term deposits; trade and other
receivables; loans and other receivables.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification.
Financial assets at fair value through surplus or deficit
Financial assets at fair value through surplus or deficit include financial assets held for
trading and financial assets designated upon initial recognition at fair value through
surplus and deficit. Financial assets are classified as held for trading if they are
acquired for the purpose of selling or repurchasing in the near term. Financial assets at
fair value through surplus or deficit are carried in the Statement of Financial Position at
fair value with changes in fair value recognized in surplus or deficit.
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
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method, less impairment. Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are integral part of the
effective interest rate. Losses arising from impairment are recognized in the surplus or
deficit.
Held-to-maturity
Non-derivative financial assets with fixed or determinable payments and fixed

maturities, if any, are classified as held to maturity when the LGU has the positive
intention and ability to hold it to maturity. After initial measurement, held-to-maturity
investments are 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 integral part of the effective interest
rate. The losses arising from impairment are recognized in surplus or deficit.
Derecognition
The LGU derecognizes a financial asset or, where applicable, a part of a financial asset
or part of a group of similar financial assets when:
a) The rights to receive cash flows from the asset have expired or is waived;
b) The LGU has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material
delay to a third party; and either: (a) the LGU has transferred substantially all
the risks and rewards of the asset; or (b) the LGU has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.
Impairment of financial assets
The LGU assesses at each reporting date whether there is objective evidence that a
financial asset or a group of financial assets is impaired. A financial asset or a group of
financial assets is deemed to be impaired of, there is objective evidence of impairment
as a result of one or more events that has occurred after the initial recognition of the
asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future
cash flows of the financial asset or the group of financial assets that be reliably
estimated. Evidence of impairment may include the following indicators:
a) The debtors or a group of debtors are experiencing significant financial

difficulty;
b) Default or delinquency in interest or principal payments;
c) The probability that debtors will enter bankruptcy or the financial

reorganization; and
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d) Observable data indicates a measurable decrease in estimated future cash flows
(e.g. changes in arrears or economic condition that correlate with defaults)
Financial assets carried at amortized cost
For financial assets carried at amortized cost, the LGU first assesses whether objective
evidence of impairment exists individually for financial assets that are individually
significant, or collectively for financial assets that are not individually significant. If
the LGU determines that no objective evidence of impairment exists for an individually
assessed financial assets with similar credit risk characteristics and collectively
assesses them for impairment. Assets that are individually assessed for impairment and
for which an impairment loss is, or continues to be, recognized are not included in a
collective assessment of impairment.
If there is objective evidence that an impairment loss has been incurred the amount of
the loss is measured as the difference between the assets carrying amount and the
present value of the estimated future cash flows (excluding future expected credit
losses that have not yet been incurred). The present value of the estimated future cash
flows is discounted at the financial asset’s original effective interest rate. If a loan has a
variable interest rate, the discount rate for measuring any impairment loss is the current
effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account
and the amount of the loss is recognized in surplus or deficit. If, in a subsequent year,
the amount of the estimated impairment loss increases or decreases because an event
occurring after the impairment was recognized, the previously recognized impairment
loss is increased or reduced by adjusting the allowance account. If a future write-off is
later recovered, the recovery is credited to finance costs in a surplus or deficit.
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 LGU
determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings.
The LGU Group’s financial liabilities include trade and other payables, bank
overdrafts, loans and borrowings.
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Subsequent measurement
The measurement of financial liabilities depends on their classification.
Financial liabilities at fair value through surplus or deficit
Financial liabilities at fair value through surplus or deficit include financial liabilities
held for trading and financial liabilities designated upon initial recognition as at fair
value through surplus or deficit.
Loans and borrowings
After initial recognition, interest bearing loans and borrowings are subsequently
measured at amortized cost using the effective interest method. Gains and losses are
recognized in surplus or deficit when the liabilities are derecognized as well as through
effective interest method amortization process.
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.
Derecognition
A financial liability is derecognized when the obligation under the liability is

discharged, cancelled or expired. When an existing financial liability is replaced by
another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated
as a derecognition of the original liability and the recognition of a new liability.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the
consolidated Statement of Financial Position if, there is a currently enforceable legal
right to offset the recognized amounts and there is an intention to settle on a net basis,
or to realize the assets and settle the liabilities simultaneously.
Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each
reporting date is determined by reference to quoted market prices or dealer price
quotations (bid price for long positions and ask price for short positions), without any
deduction for transaction costs.
3.8 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and cash in bank, deposits on call
and highly liquid investments with an original maturity of three months or less, which
are readily convertible to known amounts of cash and are subject to insignificant risk of
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changes in value. For the purpose of the consolidated statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits as defined above, net of
outstanding bank overdrafts.
3.9 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.
Cost incurred in bringing each product to its present location and condition is
accounted for, as follows:
a) Raw materials: purchase cost using the weighted average cost method;
b) Finished goods and work in progress: cost of direct materials and labor and a
proportion of manufacturing overheads based on the normal operating capacity,
but excluding borrowing costs.
After initial recognition, inventory is measured at the lower of cost and net realizable
value. However, to the extent that a class of inventory is distributed or deployed at no
charge or for a nominal charge, that class of inventory is measured at the lower of cost
and current replacement cost.
Net realizable value is the estimated selling price in the ordinary course of operations,
less the estimated costs of completion and the estimated costs necessary to make the
sale, exchange, or distribution. Inventories are recognized as an expense when
deployed for utilization or consumption in the ordinary course of operations of the
LGU.
3.1 Provisions
Provisions are recognized when the LGU has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits or service potential will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Where the LGU expects some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is recognized as a separate asset only
when the reimbursement is virtually certain.
The expense relating to any provision is presented in the Statement of Financial

Performance net of any reimbursement.
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Rehabilitation liability
Rehabilitation costs are provided at the present value of expected costs to settle the
obligation using estimated cash flows and are recognized as part of the cost of that
particular asset. The cash flows are discounted at a current rate that reflects the risks
specific to the rehabilitation liability. The unwinding of the discount is expensed as
incurred and recognized in the Statement of Financial Performance as a finance cost.
The estimated future costs of decommissioning are reviewed annually and adjusted as
appropriate. Changes in the estimated future costs or in the discount rate applied are
added to or deducted from the cost of the asset.
Contingent liabilities
The LGU does not recognize a contingent liability, but discloses details of any
contingencies in the Notes to the Financial Statements, unless the possibility of an
outflow of resources embodying economic benefits or service potential is remote.
Contingent assets
The Group does not recognize a contingent asset, but discloses details of a possible
asset whose existence is contingent on the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the LGU in the Notes to
the Financial Statements. Contingent assets are assessed continually to ensure that
developments are appropriately reflected in the financial statements. If it has become
virtually certain that an inflow of economic benefits or service potential will arise and
the asset’s value can be measured reliably, the asset and the related revenue are
recognized in the financial statements of the period in which the change occurs.
3.11 Nature and purpose of reserves
The LGU as of December 31, 2018, has not created reserves in terms of any specific
requirements.
Changes in accounting policies and estimates
The LGU recognizes the effect of changes in accounting policy retrospectively. The
effects of changes in accounting policy are applied prospectively if retrospective
application is impractical.
The LGU recognizes the effect of changes in accounting estimates prospectively by

including in surplus or deficit.
3.12 Foreign currency transactions
Transactions in foreign currencies if any are initially accounted for at the ruling rate of
exchange on the date of the transaction. Trade creditors or debtors denominated in
foreign currency are reported at the Statement of Financial Position reporting date by
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applying the exchange rate on that date. Exchange differences arising from the
settlement of creditors, or from the reporting of creditors at rates different from those at
which they were initially recorded during the period, are recognized as income or
expenses in the period in which they arise.
3.13 Borrowing costs
Borrowing costs are capitalized against qualifying assets as part of property, plant and
equipment. Such borrowing costs are capitalized over the period during which the asset
is being acquired or constructed and borrowing have been incurred. Capitalization
ceases when construction of the asset is complete. Further, borrowing costs are charged
to the Statement of Financial Performance.
3.14 Related parties
The LGU regards a related party as a person or an entity with the ability to exert
control individually or jointly, or to exercise significant influence over the LGU, or
vice versa. Members of key management are regarded as related parties and comprise
the Governor, Mayors, Vice-Governors and Vice Mayors, Sanggunian Members,
Committee Officials and Members, Accountants, Treasurers, Budget Officers, General
Services and all Chiefs of Departments/Divisions.
3.15 Service concession arrangements
The LGU analyses all aspects of service concession arrangements that it enters into in
determining the appropriate accounting treatment and disclosure requirements. In
particular, where a private party contributes an asset to the arrangement, the LGU
recognizes that asset when, and only when, it controls or regulates the services the
operator must provide together with the asset, to whom it must provide them, and at
what price. In the case of assets other than ‘whole-of-life’ assets, it controls, through
ownership, beneficial entitlement or otherwise – any significant residual interest in the
asset at the end of the arrangement. Any assets so recognized are measured at their fair
value. To the extent that an asset has been recognized, the LGU also recognizes a
corresponding liability, adjusted by a cash consideration paid or received.
3.16 Budget information
The annual budget is prepared on the modified cash basis, that is, all planned costs and
income are presented in a single statement to determine the needs of the LGU. As a
result of the adoption of the Modified cash basis for budgeting purposes, there are
basis, timing or entity differences that would require reconciliation between the actual
comparable amounts and the amounts presented as a separate additional financial
statement in the Statement of Comparison of Budget and Actual amounts. Explanatory
comments are provided in the Notes to the Annual Financial Statements; firs, the
reasons for overall growth or decline in the budget are stated, followed by details of
overspending or under spending on line items.
18
3.17 Significant judgments and sources of estimation uncertainty
Judgments
In the process of applying the LGU’s accounting policies, management has made
judgments, which have the most significant effect on the amounts recognized in the
consolidated financial statements.
Operating lease commitments – LGU as lessor
As of December 31, 2017, the LGU has not entered into property leases of its
properties. In the future, if any, it will be determined, based on an evaluation of the
terms and conditions of the arrangements, (such as the lease term not constituting a
substantial portion of the economic life of the commercial property) that it retains all
the significant risks and rewards of ownership of the properties and accounts for the
contracts as operating leases.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The LGU based its assumptions and estimates on parameters
available when the consolidated financial statements were prepared. However, existing
circumstances and assumptions about future developments may change due to market
changes or circumstances arising beyond control of the LGU. Such changes are
reflected in the assumptions when they occur.
Useful lives and residual lives
The useful lives and residual values of assets are assessed using the following
indicators to inform potential future use and value from disposal:
a) The condition of the asset based on the assessment of experts employed by the
LGU;
b) The nature of the asset, its susceptibility and adaptability to changes in

technology and processes:
c) The nature of the processes in which the asset is deployed; and

d) Changes in the market in relation to the asset
Impairment of non-financial assets – cash generating assets
The recoverable amounts of cash-generating units and individual assets have to be

determined based on the higher of value-in-use calculations and fair values less costs to
19
sell. These calculations require the use of estimates and assumptions. It is reasonably
possible that the assumptions may change, which may then impact management’s
estimations and require a material adjustment to the carrying value of tangible assets.
The LGU reviews and test the carrying value of assets when events or changes in
circumstances suggest that the carrying amount may not be recoverable. Cash-
generating assets are grouped at the lowest level for which identifiable cash flows are
largely independent of cash flows of other assets and liabilities. If there are indications
that impairment may have occurred, estimates of expected future cash flows are
prepared for each group of assets. Expected future cash flows used to determine the
value in use of tangible assets are inherently uncertain and could materially change
over time.
Impairment of non-financial assets – non-cash generating assets
The LGU reviews and test the carrying value of non-cash generating assets when
events or changes in circumstances suggest that there may be a reduction in the future
service potential that can reasonably be expected to be derived from the asset. Where
indicators of possible impairment are present, the LGU undertakes impairment tests,
which require the determination of the fair value of the asset and its recoverable service
amount. The estimation of these inputs into the calculation relies on the use estimates
and assumptions may have an impact on the reported carrying amount of related asset.
Any subsequent changes to the factors supporting these estimates and assumptions may
have an impact on the reported carrying amount of the related asset.
Fair value estimation – financial instruments
Where the fair value of financial assets and financial liabilities recorded in the
Statement of Financial Position cannot be derived from active markets, their fair value
is determined using valuation techniques including the discounted cash flow model.
The inputs to these models are taken from observable markets where possible, but
where this is not feasible, judgment is required in establishing fair values. Judgment
includes the consideration of inputs such as liquidity risk, credit risk, and volatility.
Changes in assumptions about these factors could affect the reported fair value of
financial instruments.
Provisions
Provisions were raised and management determined an estimate based on the

information available. Provisions are measured at the management’s best estimate of
the expenditure required to settle the obligation at the reporting date, and are
discounted to present value where the effect is material.
20
Held-to-maturity investments and receivables
The LGU assesses its loans and receivables (including trade receivables) and its held-
to-maturity investments at the end of each reporting period. In determining whether an
impairment loss should be recorded in surplus or deficit, the LGU evaluates the
indicators present in the market to determine if those indicators are indicative of
impairment in its loans and receivables or held-to-maturity investments.
Where specific impairments have not been identified the impairment for trade
receivables, held-to-maturity investments and loans and receivables is calculated on a
portfolio basis, based on historical loss ratios, adjusted for national and industry-
specific economic conditions and other indicators present at the reporting date that
correlate with defaults on the portfolio. These annual loss ratios are applied to loan
balances in the portfolio and scaled to the estimated loss emergence period.
3.18 Financial Statements
As at 31 December 2018, the LGU has not held any financial instruments.
Statement of Financial Position
Note 4 - Cash and Cash Equivalents
Ac c o u n t
Ac c o u n t T i t l e C o de 2018 2017
Cash on Hand
Cash Local Treasury 1-01-01-010 P 4,313,014.50 P 2,279,295.75
Petty Cash Fund 1-01-01-020 71,483.78 38,092.88
Cash in Bank - Local Currency
Cash in Bank - Local Currency , 1-01-02-010 284,668,947.65 185,667,222.75
Current Account
Cash in Bank -Local Currency, 1-02-01-010 26,000,000.00 43,000,000.00
Time Deposits
To t a l P 315,053,445.93 P 230,984,611.38
Special
Ac c o u n t General Education Trust
Ac c o u n t T i t l e C o de 2018 Fund Fund Fund
Cash on Hand
Cash Local Treasury 1-01-01-010 P 4,633,562.59 P 4,313,014.50 P 124,627.05 P 195,921.04
Petty Cash Fund 1-01-01-020 76,483.78 71,483.78 5,000.00
Cash in Bank - Local Currency
Cash in Bank - Local Currency , 1-01-02-010 400,563,627.50 284,668,947.65 1,676,340.65 114,218,339.20
Current Account
Cash in Bank - Local Currency , 1-01-02-020 47,332.73 47,332.73
Savings Account
Gr a n d To t a l P 405,321,006.60 P 289,053,445.93 P 1,800,967.70 P 114,466,592.97
21
All funds have separate current accounts where its disbursements are charged. In addition, each
fund maintains time deposit accounts (high yielding savings accounts) with a term of 30 days,
automatically renewable thereafter, and can be pre-terminated as is deemed necessary.
Cash Local Treasury balance of ₱ 4,633,562.59 consists of ₱ 4,313,014.50, ₱124,627.05 and ₱

195,921.04 from General, Special Education and Trust Fund, respectively. It represents cash in the
custody of the collecting and liquidating officers as of December 31, 2018 pending deposits.
Petty Cash balance of ₱76,483.78 consists ₱71,483.78 and ₱5,000.00 from General Fund and
Trust Fund, respectively. It comprises cash advances granted to regular or special disbursing
officers of the different departments of the City for payment of petty or miscellaneous authorized
expenditures which cannot be conveniently paid by check.
Cash in Bank – Local Currency, Savings Account of ₱ 47,332.73 is dormant record of savings
account with the Land Bank of the Philippines. Per confirmation with bank, the account does not
exist. Book verification could not be performed due to absence of any transaction record. Request
for authority to write-off this account is in process.
Cash in Bank - Local Currency, Current Account is the year-end balances of current accounts
deposited with various authorized government depository banks as follows:
22
N a me o f De po s i t o r y Ba n k Ac c o u n t N o . 2018 2017
LandBank of the Philippines
Land Bank of the Phil - Current Account 0182-4034-07 ₱ 29,625,061.54 ₱ 29,186,266.26
Land Bank of the Phil - Neda KR2 Project 0182-1107-52 43,199.03 43,199.03
Land Bank of the Phil - Economic Enterprises 0182-1113-68 12,210,229.15 3,576,836.02
Land Bank of the Phil - CLGU-Tac DA-PRDP 0182-1193-77 10,000.00 10,000.00
Land Bank of the Phil - DAPRDP for Loan Proceeds0182-1193-69 10,000.00 10,000.00
Land Bank of the Phil - DAPRDP-GOP Counterpart0182-1193-85 10,000.00 328,272.00
Land Bank of the Phil - SEF 0182-1057-59 1,676,340.65 3,314,080.24
Land Bank of the Phil - Trust 0182-1057-40 6,599,896.37 6,525,872.19
Land Bank of the Phil - DOH 0182-1116-60 519,693.32 2,210,891.63
Land Bank of the Phil - RAYDILG 0182-1128-44 14,182,093.60 25,155,380.59
Land Bank of the Phil - UNICEF 0182-1129-33 456,060.06 456,060.06
Land Bank of the Phil - ESA 0182-1147-74 1,133,086.56 1,132,167.97
Land Bank of the Phil - DA-BUB 0182-1184-78 3,996,466.95 11,865,608.76
Land Bank of the Phil -TCH Trust-Philhealth 0182-1192-10
Auto Credit 23,992,290.36 4,237,990.00
Land Bank of the Phil - RAPID 0182-1192-61 143,185.88 83,044.14
Land Bank of the Phil -TCH Trust-Philhealth 0182-1196-87 -
Auto Credit PF 7,398,369.78
Land Bank of the Phil - CHO Philhealth Auto 0182-1196-95 -
Credit PF 3,680,760.00
Land Bank of the Phil - CHO Philhealth Auto 0182-1197-09 -
Credit Reimbursement 8,356,790.00
Philippine Postal Savings Bank -
Phil. Postal Savings Bank - Current Account 009-002083-021/0231 14,283,629.13 30,033,689.78
Phil. Postal Savings Bank - F4 Fund 009-002083-271 1,184,457.59 985,585.28
Phil. Postal Savings Bank - Coop Fund 009-002083-233 790,660.65 789,556.00
Phil. Postal Savings Bank - EWP 0009-002083-235 821,034.32 1,131,647.43
Phil. Postal Savings Bank - Citywide Devt Fund 0009-004730-271 16,548.94 16,548.94
Phil. Postal Savings Bank - Calamity Fund 0009-004394-271 55,493,054.64 15,952,293.12
Phil. Postal Savings Bank -Trust 009-002083-022 33,746,167.51 30,356,951.71
Phil. Postal Savings Bank - GTZ-ENRO 009-003276-231 299,589.80 299,171.24
Phil. Postal Savings Bank -GTZ 009-0035570-271 486,591.19 485,911.37
Phil. Postal Savings Bank - GTZ-CLUP 009-003506-271 82,653.58 82,538.11
Phil. Postal Savings Bank - TCH 009-002083-232 6,390,649.67 23,933,784.73
Phil. Postal Savings Bank - PCF Trust 0009-004378-231 315,162.74 314,722.42
Philippine Veterans Bank -
Philippine Veterans Bank - IRA 02501-001023-2 12,987.13 12,987.13
Philippine Veterans Bank - EWP 02501-000030-6 41,421.61 41,421.61
Phil. Veterans Bank-PRA-One Reselient Team 0025-011180-002
2,438,831.83 2,478,000.00
Development Bank of the Philippines -
Development Bank of the Philippines - Salary 775-0173-380-30 38,261,364.53 34,795,622.04
Development Bank of the Philippines - Current 775-0173-380-31 23,463.45 23,463.45
Development Bank of the Philippines- Loan 775-017338-032 108,216,962.66 68,801,834.66
Development Bank of the Philippines- EDF 775-017338-032 23,614,873.28
Development Bank of the Philippines 1,042.89
T O TAL ₱ 400,563,627.50 ₱ 298,672,440.80
Cash in Bank - Local Currency, Current Account consists of ₱ 284,668,947.65, ₱1,676,340.65,

and ₱ 114,218,339.20 from General, Special Education, and Trust Fund, respectively.
Breakdown of which is as follows:
23
Special
N a me o f D e po s i t o r y Ba n k Ac c o u n t N o . General Fund Education Fund Trust Fund
LandBank of the Philippines
Land Bank of the Phil - Current Account 0182-4034-07 ₱ 29,625,061.54 ₱ ₱
Land Bank of the Phil - Neda KR2 Project 0182-1107-52 43,199.03
Land Bank of the Phil - Economic Enterprises 0182-1113-68 12,210,229.15
Land Bank of the Phil - CLGU-Tac DA-PRDP 0182-1193-77 10,000.00
Land Bank of the Phil - DA PRDP for Loan Proceeds
0182-1193-69 10,000.00
Land Bank of the Phil - DA PRDP-GOP Counterpart
0182-1193-85 10,000.00
Land Bank of the Phil - SEF 0182-1057-59 1,676,340.65
Land Bank of the Phil - Trust 0182-1057-40 6,599,896.37
Land Bank of the Phil - DOH 0182-1116-60 519,693.32
Land Bank of the Phil - RAYDILG 0182-1128-44 14,182,093.60
Land Bank of the Phil - UNICEF 0182-1129-33 456,060.06
Land Bank of the Phil - ESA 0182-1147-74 1,133,086.56
Land Bank of the Phil - DA-BUB 0182-1184-78 3,996,466.95
Auto Credit 23,992,290.36
Land Bank of the Phil - RAPID 0182-1192-61 143,185.88
Auto Credit PF 7,398,369.78
Land Bank of the Phil - CHO Philhealth Auto 0182-1196-95
Credit PF 3,680,760.00
Land Bank of the Phil - CHO Philhealth Auto 0182-1197-09
Credit Reimbursement 8,356,790.00
Philippine Postal Savings Bank
Phil. Postal Savings Bank - Current Account 009-002083-021/0231 14,283,629.13
Phil. Postal Savings Bank - F4 Fund 009-002083-271 1,184,457.59
Phil. Postal Savings Bank - Coop Fund 009-002083-233 790,660.65
Phil. Postal Savings Bank - EWP 0009-002083-235 821,034.32
Phil. Postal Savings Bank - Citywide Devt Fund 0009-004730-271 16,548.94
Phil. Postal Savings Bank - Calamity Fund 0009-004394-271 55,493,054.64
Phil. Postal Savings Bank -Trust 009-002083-022 33,746,167.51
Phil. Postal Savings Bank - GTZ-ENRO 009-003276-231 299,589.80
Phil. Postal Savings Bank -GTZ 009-0035570-271 486,591.19
Phil. Postal Savings Bank - GTZ-CLUP 009-003506-271 82,653.58
Phil. Postal Savings Bank - TCH 009-002083-232 6,390,649.67
Phil. Postal Savings Bank - PCF Trust 0009-004378-231 315,162.74
Philippine Veterans Bank
Philippine Veterans Bank - IRA 02501-001023-2 12,987.13
Philippine Veterans Bank - EWP 02501-000030-6 41,421.61
Phil. Veterans Bank-PRA-One Reselient Team 0025-011180-002 2,438,831.83
Development Bank of the Philippines
Development Bank of the Philippines - Salary 775-0173-380-30 38,261,364.53
Development Bank of the Philippines - Current 775-0173-380-31 23,463.45
Development Bank of the Philippines- Loan 775-017338-032 108,216,962.66
Development Bank of the Philippines- EDF 775-017338-032 23,614,873.28
TO TAL ₱ 284,668,947.65 ₱ 1,676,340.65 ₱ 114,218,339.20
24
Note 5 – Investments
Cash in Bank, Local Currency -Time Deposits account consists of the following accounts:
N a me o f D e po s i t o r y B a n k Ac c o u n t No . 2018 2017
La n d Ba n k o f t h e P h i l i p p i n e s
Land Bank of the Phil - LCTD 0181-3724-86 P 10,000,000.00 P
Land Bank of the Phil - LCTD 0181-3683-65 - 7,000,000.00
Land Bank of the Phil - LCTD 0181-3676-87 5,000,000.00 5,000,000.00
Land Bank of the Phil - LCTD 0181-3683-73 - 5,000,000.00
Land Bank of the Philippines 0181-3704-24 - 10,000,000.00
Land Bank of the Philippines 0181-3682-25 -
Land Bank of the Philippines 0181-3683-57 10,000,000.00 10,000,000.00
Land Bank of the Phil - LCTD 0181-3704-24
Land Bank of the Phil - LCTD 0181-371-056
Phil. Postal Savings Bank 0009-004761-141 - 10,000,000.00
Phil. Postal Savings Bank 0009-002083-175 1,000,000.00 1,000,000.00
Phil. Postal Savings Bank 0009-003667-143 7,000,000.00
Phil. Postal Savings Bank 0009-002083-182 900,000.00 900,000.00
Phil. Postal Savings Bank 0009-004052-141 -
Development Bank of the Philippines 0775-830024-608 10,000,000.00
Development Bank of the Philippines 0775-017338-160 10,000,000.00 10,000,000.00
Development Bank of the Philippines
T O T AL P 138,800,000.00 P 163,800,000.00
25
S pecial
General Education Trust
N ame of D e pos i tory Bank Accou n t N o . 2018 Fund Fund Fund
Land Bank of t he P hilip p ine
Land Bank of the Phil - LCTD 0181-3724-86 P 10,000,000.00 P 10,000,000.00 P P
Land Bank of the Phil - LCTD 0181-3683-65 - -
Land Bank of the Phil - LCTD 0181-3683-73 - -
Land Bank of the Philippines 0181-3704-24 - -
Land Bank of the Philippines 0181-3682-25 -
Phil. Postal Savings Bank 0009-004761-141 - -
Phil. Postal Savings Bank 0009-002083-182 900,000.00 900,000.00
Development Bank of the 0775-830024-608 10,000,000.00 10,000,000.00
Philippines
T O T AL P 138,800,000.00 P 26,000,000.00 P 8,000,000.00 P 104,800,000.00
Cash in Bank, Local Currency -Time Deposits account consists of ₱ 26,000,000.00,

₱8,000,000.00, and ₱ 104,800,000.00 from General, Special Education, and Trust Fund,
respectively. All of the said accounts are not restricted and available for current operations as the
need arises.
Note 6 – Receivables
Ac c o u n t
Re c e I v a b l e Ac c o u n t s
Accounts Receivable 1-03-01-010 P 190,501.13 P 37,527.54
Real Property TaxReceivable 1-03-01-020 142,029,168.75 12,382,402.04
Loans Receivable - Others 1-03-01-990 41,761,873.08 39,215,496.75
Due fromLocal Government Units 1-03-03-030 796,400.00 -
Due fromOther Funds 1-03-04-010 15,502,646.78 18,136,523.94
Ad v a n c e s
Advances for OperatingExpenses 1-03-05-010 100,000.00 -
Advances for Payroll 1-03-05-020 1,519,148.00 1,047,256.19
Advances to Special DisbursingOfficer 1-03-05-030 1,191,794.11 139,400.00
Advances to Officers and Employees 1-03-05-040 31,775.00 55,817.93
26
O t h e r Re c e I v a b l e s
Receivables - Disallowances/Charges 1-03-06-010 47,891,204.64 10,776,213.81
Due fromOfficers and Employees 1-03-06-020 1,397,689.81 2,248,945.75
Due fromNon-Government Organization 1-03-06-030 4,422,541.01
Allowance for Impairment - Due from 1-03-06-021 (698,871.64) (698,871.64)
Officers and Employees
Other Receivables 1-03-06-990 8,761,623.52 572,756.39
To t a l P 264,897,494.19 P 83,913,468.70
Special
Re c e i v a b l e Ac c o u n t s
Accounts Receivable 1-03-01-010 P 190,547.95 P 190,501.13 P 46.82 P
Real Property TaxReceivable 1-03-01-020 142,029,168.75 142,029,168.75
Special Education TaxReceivable 1-03-01-030 124,003,931.90 124,003,931.90
Loans Receivable - Others 1-03-01-990 41,761,873.08 41,761,873.08
Due fromNational Government Agencies 1-03-03-010 222,472.81 - 200,000.00 22,472.81
Due fromLocal Government Units 1-03-03-030 796,400.00 796,400.00
Due fromOther Funds 1-03-04-010 22,599,849.66 15,502,646.78 91,695.03 7,005,507.85
Ad v a n c e s
Advances for OperatingExpenses 1-03-05-010 100,000.00 100,000.00 - -
Advances for Payroll 1-03-05-020 1,772,329.50 1,519,148.00 162,538.65 90,642.85
Advances to Special DisbursingOfficer 1-03-05-030 2,297,631.88 1,191,794.11 844,987.77 260,850.00
Advances to Officers and Employees 1-03-05-040 114,072.59 31,775.00 82,297.59
Ot h e r R e c e I v a b l e s
Receivables - Disallowances/Charges 1-03-06-010 48,080,515.46 47,891,204.64 131,621.42 57,689.40
Due fromOfficers and Employees 1-03-06-020 1,434,051.47 1,397,689.81 19,179.76 17,181.90
Due fromNon-Government Organization 1-03-06-030 4,422,541.01 4,422,541.01
Allowance for Impairment - Due from 1-03-06-021 (698,871.64) (698,871.64)
Officers and Employees
Other Receivables 1-03-06-990 9,761,754.85 8,761,623.52 1,000,001.53 129.80
To t a l P 398,888,269.27 P 264,897,494.19 P 126,536,300.47 P 7,454,474.61
Accounts Receivable of ₱ 190,547.95 comprises overpayment for the rendering of services of

certain contractors for CY 2016. The said amount has yet to be collected as of December 31, 2018.
RPT/SET Receivables are the uncollected balances of RPT and Special Education Tax
Receivables as of December 31, 2018.
Loans Receivable in the General Fund is the aggregate balance of loans granted to employees of
the City through Employees Welfare Program (EWP). The account includes Special Employment
Assistance Program (SEAP), a non-interest bearing loans granted to indigent constituents of
Tacloban City to start a small business that is coordinated by the City Social Welfare &
Development. This likewise includes other livelihood loan assistance granted to various
cooperatives and groups of small vendors/entrepreneurs, to wit:
27
GOVERNMENT PROGRAMS 2018 2017
GENERAL FUND
Employees Welfare Program ₱ 30,308,181.44 ₱ 27,705,463.54
Employees Welfare Program Interest 631,250.48 631,250.48
Tacloban Underwriter Multi-Purpose Coop 74,383.01 74,383.01
Leyte Colleges Multi-Purpose Coop 56,424.00 56,424.00
Tacloban Heritage Credit Coop 59,583.07 59,583.07
F4 Fund 614,562.27 670,903.84
Eastern Visayas Bi-Products 7,491.43 7,491.43
Best Friends Multi-Purpose Coop 172,500.00 172,500.00
Eastern Visayas Credit Coop 3,833.29 3,833.29
GATE MPC 375.00 375.00
Generics Medical MPC 12,400.03 12,400.03
Traffic Enforcers Consumers Coop 12,500.00 12,500.00
Special Employment Assistance Program (SEAP) 9,589,139.06 9,589,139.06
TAPDICO 99,250.00 99,250.00
B22 Batang Samar Leyte Bagong Buhay 120,000.00 120,000.00
TOTAL ₱ 41,761,873.08 ₱ 39,215,496.75
Advances for Payroll comprises of cash advances granted to duly designated regular or special
disbursing officers during the year for payment of salaries and wages. Said balances are
returned/settled on the first month of the following year.
Advances to Officers and Employees represents unliquidated prepayments for travels and cash
advances for special and time-bounded activities drawn by officials and employees of the City.
Due from Officers & Employees includes unsettled under-remittances of Collecting Officers that
are not yet settled as of the end of the year.
Due from Other Funds consists of inter-fund receivables brought about by inadvertent errors in
recordings made in the issuance of Official Receipts during collections, issuance of checks during
disbursements and fund charging. This likewise partly represents reciprocal account of the Due to
Other Fund account.
Receivable-Disallowance/Charges represent various transactions from prior year’s that have been
disallowed in post-audit in the total amount of P 47,891,204.64. This includes various audit
disallowances with aggregate amount P 11,299,349.00 representing Notices of Disallowance
issued prior to the effectivity of the Revised Rules on the Settlement of Accounts, but are deemed
disallowance which shall continue to be enforced in accordance with these Rules as provided
under Section 28 hereof. The amount likewise includes audit disallowance issued in CY 2017 to
Yakal Construction Company and other persons liable for a single transaction amounting to P36,
087,706.93 in payment for mobilization of a drainage project. Said audit disallowance is under
appeal with the COA Regional Office No. VIII, Candahug, Palo, Leyte.
Other Receivables in the General Fund includes the amount of P8, 186,162.51 which were
recorded in CY 2018 representing accounts due from various contractors for overpayments for
28
infrastructure projects contracted and paid to them. This were due to erroneous computations of
Overhead in Program of Works and detailed estimates that resulted in a higher than the allowable
cost estimates based on Department of Public Works & Highways (DPWH) Department Order
(DO) No. 197 dated October 7, 2016. Collections of overpayments from the responsible
contractors are ongoing.
Note 7 – Inventories
Ac c ount
Ac c ount Ti t l e Code 2018 2017
In ve n t or y
Office Supplies Inventory 1-04-04-010 P 1,610,373.69 P 3,413,669.79
Accountable Forms, Plates and Stickers Inventory
1-04-04-020 277,675.80 277,675.80
Medical, Dental and Laboratory Supplies Inventory
1-04-04-070 89,900.00 89,900.00
Construction Materials Inventory 1-04-04-130 59,500.00 59,500.00
Other Supplies and Materials Inventory 1-04-04-990 15,498.97 1,061,727.59
- -
Tot al P 2,052,948.46 P 4,902,473.18
Special
Ac c oun t General Education Trust
Ac c oun t Ti t l e Code 2018 Fund Fund Fund
Inve nt or y
Office Supplies Inventory 1-04-04-010 P 1,610,373.69 P 1,610,373.69 P - P -
Accountable Forms, Plates and Stickers Inventory
1-04-04-020 277,675.80 277,675.80 - -
Medical, Dental and Laboratory Supplies Inventory
1-04-04-070 89,900.00 89,900.00 - -
Construction Materials Inventory 1-04-04-130 59,500.00 59,500.00 - -
Other Supplies and Materials Inventory 1-04-04-990 15,498.97 15,498.97 - -
Tot al P 2,052,948.46 P 2,052,948.46 - -
Office Supplies Inventory and Other Supplies Inventory represents stocks on hand at the City
General Services Department.
Accountable Forms, Plates and Stickers Inventory represents the value of various accountable
forms available in the City Treasurer’s Office. No inventory items were pledge as security for
debts during the current or prior financial year.
29
Note 8 – Prepayments
Ac c o u n t
Prepayments
Advances to Contractors 1-05-01-010 P 94,795,322.27 81,532,930.54
Prepaid Registration 1-05-01-030 144,396.88 102,602.05
Prepaid Insurance 1-05-01-050 1,568,696.77 1,663,830.40
To t a l P 96,508,415.92 83,299,362.99
Ac c o u n t General Special Education Trust

Prepayments
Advances to Contractors 1-05-01-010 P 98,894,300.24 P 94,795,322.27 P P 4,098,977.97
Prepaid Registration 1-05-01-030 144,396.88 144,396.88
Prepaid Insurance 1-05-01-050 1,568,696.77 1,568,696.77
To t a l P 100,607,393.89 P 96,508,415.92 P - P 4,098,977.97
Prepaid Insurance and Other Payments represents the unexpired portion of insurances
for various assets of the City such as vehicles, buildings, and other properties as of the end of the
year.
Advances to Contractors amounting to 98,894,300.24 is the balance of unrecouped 15% advance

payment granted to various contractors for the mobilization of awarded infrastructure projects by
the City Government.
Note 9 – Other Current Assets
Ac c ou n t
Ac c oun t Ti t l e Code 2018 2017
Guaranty Deposits 1-02-05-020 P 447,126.30 P 447,126.30
To t al P 447,126.30 P 447,126.30
Ac c ount General Special Education Trust

Ac c ount Ti t l e Code 2018 Fund Fund Fund
Guaranty Deposits 1-02-05-020 P 447,126.30 P 447,126.30 P - P -
Tot al P 447,126.30 P 447,126.30 P - P -
30
Note 10 – Non-Current Receivables
Ac c ou n t Ti t l e 2018 2017
Receivable Accounts
Real Property TaxReceivable P 142,029,168.75 P 85,465,828.56
Special Education TaxReceivable 124,003,931.90 45,106,157.29
Tot al P 266,033,100.65 P 130,571,985.85
General Special Education Trust

Ac c ount Ti t l e 2018 Fund Fund Fund
Receivable Accounts
Real Property TaxReceivable P 142,029,168.75 P 142,029,168.75 P P
Special Education TaxReceivable 124,003,931.90 124,003,931.90
Tot al P 266,033,100.65 P 142,029,168.75 P 124,003,931.90 P -
Note 11 – Investment Property
Ac c ou nt
Ac c ou nt Ti t l e Co de 2018 2017
Investment Property
Investment Property, Land 1-06-01-010 P 11,450,286.70 P 11,450,286.70
Investment Property, Buildings 1-06-01-020 285,955,498.24 277,350,562.85
LES SA
: CCUMULATED DEPRECIATION
Accumulated Depreciation - 1-06-01-021 (95,432,530.06) (84,273,151.21)
Investment Property, Buildings
Tot a l P 201,973,254.88 P 373,074,000.76
Special
Ac c ou nt General Education Trust
Ac c ou nt Ti t l e Code 2018 Fund Fund Fund
Investment Property
Investment Property, Land 1-06-01-010 P 11,450,286.70 P 11,450,286.70 P P
Investment Property, Buildings 1-06-01-020 285,955,498.24 285,955,498.24
LES S :ACCUMULATED DEP RECIATION
Accumulated Depreciation - 1-06-01-021 (95,432,530.06) (95,432,530.06)
Investment Property, Buildings
Tot al P 201,973,254.88 P 201,973,254.88 -- --
31
Composition of Investment Property as of December 31, 2018
Total Land Building

Bus Terminal-Land 11,450,287.00 11,450,287.00
Market Building 107,937,478.33 107,937,478.33
Slaughterhouse 6,237,258.00 6,237,258.00
Bus Terminal &Shopping Center 50,894,690.00 50,894,690.00
Tacloban Convention Center 120,886,071.97 120,886,071.97
Total Cost 297,405,785.30 11,450,287.00 285,955,498.30
Disposals -
Depreciation (95,432,530.06) (95,432,530.06)
Ending Balance 201,973,255.24 11,450,287.00 190,522,968.24
Investment properties are composed of structures and facilities of economic enterprises. Bus
Terminal and Shopping Complex were made available for operations in CY 2007, and on October
12, 2015, portion of the properties with acquisition cost of P247,885,656, and with estimated
book value of P 183,295,989 were sold through public auction to Robinsons Land Corporation for
P 316,800,000.
Note 12 – Property, Plant and Equipment
Property, Plant and Equipment account balances of P 2,702,688,457.74, P65,776,990.06, and P

28,282,873.08 under General, Special Education, and Trust Fund, respectively. These had been
composed of the following:
32
Ac c ou n t
Ac c o u n t Ti t l e Code 2018 2017
LANDANDLANDIMPROVEMENTS
Land 1-07-01-010 P 114,108,823.19 P 111,733,599.90
Other Land Improvements 1-07-02-990 361,932,296.82 275,598,627.04
INFRASTRUCTUREASSETS
Road Networks 1-07-03-010 136,160,040.42 95,511,797.85
Flood Control Systems 1-07-03-020 25,020,687.45 55,704,830.78
Sewer System 1-07-03-030 552,249.83
Water Supply Systems 1-07-03-040 5,160,245.31 4,746,026.03
Power Supply Systems 1-07-03-050 13,141,571.26 3,770,636.26
Parks, Plazas and Monuments 1-07-03-090 13,687,023.04 13,016,854.58
Other Infrastructure Assets 1-07-03-990 218,083,361.21 196,861,287.14
BUILDINGS
Buildings 1-07-04-010 383,941,946.10 305,818,528.94
School Buildings 1-07-04-020 912,493.04 912,493.04
Hospitals and Health Centers 1-07-04-030 24,557,154.31 24,179,974.31
Markets 1-07-04-040 148,892,992.23 148,892,992.23
Other Structures 1-07-04-990 129,899,494.96 126,856,839.40
MACHINERY, EQUIPMENT, FURNITURE&FIXTURES
Machinery 1-07-05-010 5,696,817.50 3,866,272.50
Office Equipment 1-07-05-020 24,819,479.44 21,600,200.44
Information and Communication Technology 1-07-05-030 59,278,159.72 51,481,211.72
Equipment
Agricultural and Forestry Equipment 1-07-05-040 10,632,000.00 10,632,000.00
Communication Equipment 1-07-05-070 12,096,606.60 10,127,441.60
Construction and Heavy Equipment 1-07-05-080 61,832,686.58 59,832,686.58
Disaster Response and Rescue Equipment 1-07-05-090 10,485,310.00 9,128,453.00
Military, Police and Security Equipment 1-07-05-100 2,120,431.84 99,433.84
Medical Equipment 1-07-05-110 22,884,414.83 15,961,517.66
Technical and Scientific Equipment 1-07-05-140 24,402,222.75 23,693,222.75
Other Machinery and Equipment 1-07-05-990 44,285,140.32 42,173,335.32
Motor Vehicles 1-07-06-010 180,435,419.29 172,142,076.29
Watercrafts 1-07-06-040 2,206,077.15 2,206,077.15
Furniture and Fixtures 1-07-07-010 25,941,861.97 19,238,287.97
Books 1-07-07-020 3,140,351.00 3,140,351.00
CONSTRUCTIONINPROGRESS
Construction in Progress - Land Improvements 1-07-10-010 8,482,363.90 79,117,215.03
Construction in Progress - Infrastructure 1-07-10-020 417,081,320.31 246,869,982.92

Assets
Construction in Progress - Buildings and Other 1-07-10-030 38,214,498.79 97,593,758.76
Structures
OTHERPROPERTY, PLANT, ANDEQUIPMENT
Other Property, Plant and Equipment 1-07-99-990 131,628,511.48 123,375,400.48
TOTAL P ROP ERTY, P LANT AND EQUIP MENT P 2,661,714,052.64 P 2,355,883,412.51
33
LESS : A CCUMULA T ED DEP RECI ATI O
N
Accumulated Depreciation - Other Land 1-07-02-991 77,877,954.29 58,195,670.90
Improvements
Accumulated Depreciation - Road Networks 1-07-03-011 6,903,951.75 3,782,630.64
Accumulated Depreciation - Flood Control 1-07-03-021 2,863,642.30 966,039.81
Systems
Accumulated Depreciation - Water Supply 1-07-03-041 984,222.29 7,243.02
Systems
Accumulated Depreciation - Power Supply 1-07-03-051 1,816,688.84 936,861.51
Systems
Accumulated Depreciation - Parks, Plazas and M1
onum
-07-0ents
3-091 1,321,433.79 894,860.48
Accumulated Depreciation - Other 1-07-03-991 15,960,986.91 9,622,458.05
Infrastructure Assets
Accumulated Depreciation - Buildings 1-07-04-011 66,690,179.48 55,417,087.46
Accumulated Depreciation - School Buildings 1-07-04-021 367,219.89 331,653.63
Accumulated Depreciation - Hospitals and Health
1-0
C7
enters
-04-031 3,090,323.07 2,072,066.52
Accumulated Depreciation - Markets 1-07-04-041 25,611,724.62 20,479,026.30
Accumulated Depreciation - Other Structures 1-07-04-991 32,517,657.94 28,200,598.84
Accumulated Depreciation - Machinery 1-07-05-011 1,780,532.53 940,296.29
Accumulated Depreciation - Office Equipment 1-07-05-021 12,884,417.78 8,823,098.06
Accumulated Depreciation - Information and 1-07-05-031 32,205,996.14 24,958,977.11

Communication Technology Equipment
Accumulated Depreciation - Agricultural and 1-07-05-041 1,634,277.08 624,237.08
Forestry Equipment
Accumulated Depreciation - Communication 1-07-05-071 4,276,303.08 3,017,295.53
Equipment
Accumulated Depreciation - Construction and 1-07-05-081 26,851,806.06 21,300,832.66
Heavy Equipment
Accumulated Depreciation - Disaster 1-07-05-091 1,860,450.33 624,048.16
Response and Rescue Equipment
Accumulated Depreciation - Military, Police 1-07-05-101 148,705.41 33,150.87
and Security Equipment
Accumulated Depreciation - Medical 1-07-05-111 7,137,041.80 5,268,380.16
Equipment
Accumulated Depreciation - Technical and 1-07-05-141 13,970,922.52 9,768,310.07
Scientific Equipment
Accumulated Depreciation - Other Machinery 1-07-05-991 16,157,816.04 11,329,283.82
and Equipment
Accumulated Depreciation - Motor Vehicles 1-07-06-011 104,472,747.44 89,155,606.93
Accumulated Depreciation - Watercrafts 1-07-06-041 983,502.18 682,629.84
Accumulated Depreciation - Furniture and 1-07-07-011 10,226,802.05 8,481,825.98
Fixtures
Accumulated Depreciation - Books 1-07-07-021 2,952,347.20 2,355,680.51
Accumulated Depreciation - Other Property, 1-07-99-991 67,420,134.27 49,388,908.48
Plant and Equipment
TOTAL N E T BOOK VALUE P 2,120,744,265.56 P 1,938,224,653.80
34
Special
Ac c o unt General Education Trust
LANDANDLANDIMPROVEMENTS
Land 1-07-01-010 P 116,358,698.60 P 114,108,823.19 P 2,249,875.41 P
Other Land Improvements 1-07-02-990 364,961,095.38 361,932,296.82 3,028,798.56
INFRASTRUCTUREASSETS
Road Networks 1-07-03-010 136,160,040.42 136,160,040.42
Flood Control Systems 1-07-03-020 25,020,687.45 25,020,687.45
Sewer System 1-07-03-030 552,249.83 552,249.83
Water Supply Systems 1-07-03-040 5,160,245.31 5,160,245.31
Power Supply Systems 1-07-03-050 13,141,571.26 13,141,571.26
Parks, Plazas and Monuments 1-07-03-090 13,687,023.04 13,687,023.04
Other Infrastructure Assets 1-07-03-990 223,914,369.08 218,083,361.21 5,831,007.87
BUILDINGS -
Buildings 1-07-04-010 383,941,946.10 383,941,946.10
School Buildings 1-07-04-020 20,559,070.23 912,493.04 19,646,577.19
Hospitals and Health Centers 1-07-04-030 24,557,154.31 24,557,154.31
Markets 1-07-04-040 148,892,992.23 148,892,992.23
Other Structures 1-07-04-990 130,580,177.28 129,899,494.96 680,682.32
MACHINERY, EQUIPMENT, FURNITURE&FIXTURES
Machinery 1-07-05-010 5,701,512.50 5,696,817.50 4,695.00
Office Equipment 1-07-05-020 26,054,648.03 24,819,479.44 1,235,168.59
Information and Communication 1-07-05-030 67,894,654.62 59,278,159.72 8,616,494.90
Technology Equipment
Agricultural and Forestry Equipment 1-07-05-040 10,632,000.00 10,632,000.00
Communication Equipment 1-07-05-070 12,096,606.60 12,096,606.60
Construction and Heavy Equipment 1-07-05-080 61,832,686.58 61,832,686.58
Disaster Response and Rescue Equipment 1-07-05-090 10,485,310.00 10,485,310.00
Military, Police and Security Equipment 1-07-05-100 2,120,431.84 2,120,431.84
35
Medical Equipment 1-07-05-110 22,978,434.83 22,884,414.83 94,020.00
Technical and Scientific Equipment 1-07-05-140 24,608,701.75 24,402,222.75 206,479.00
Other Machinery and Equipment 1-07-05-990 44,285,140.32 44,285,140.32
Motor Vehicles 1-07-06-010 181,241,919.29 180,435,419.29 806,500.00
Watercrafts 1-07-06-040 2,206,077.15 2,206,077.15
Furniture and Fixtures 1-07-07-010 33,428,276.07 25,941,861.97 7,486,414.10
Books 1-07-07-020 12,389,201.26 3,140,351.00 9,248,850.26
CONSTRUCTIONINPROGRESS
Construction in Progress - Investment 1-06-01-030 6,200,000.00 6,200,000.00
Property, Buildings
Construction in Progress - Land 1-07-10-010 16,164,721.24 8,482,363.90 7,682,357.34
Improvements
Construction in Progress - Infrastructure 1-07-10-020 427,279,518.79 417,081,320.31 820,968.99 9,377,229.49
Assets
Construction in Progress - Buildings and 1-07-10-030 44,279,641.70 38,214,498.79 1,041,856.66 5,023,286.25
Other Structures
OTHERPROPERTY, PLANT, ANDEQUIPMENT
Other Property, Plant and Equipment 1-07-99-990 136,407,112.69 131,628,511.48 4,778,601.21
TOTAL P ROP ERTY, P LANT AND EQUIP MENTP 2,755,773,915.78 P 2,661,714,052.64 P 65,776,990.06 P 28,282,873.08
LES S :ACCUMULATED DEPRECIATI ON
Accumulated Depreciation - Other Land 1-07-02-991 79,348,692.97 77,877,954.29 1,470,738.68
Improvements
Accumulated Depreciation - Road 1-07-03-011 6,903,951.75 6,903,951.75
Accumulated Depreciation - Flood Control 1-07-03-021 2,863,642.30 2,863,642.30
Systems
Accumulated Depreciation - Water Supply 1-07-03-041 984,222.29 984,222.29
Systems
Accumulated Depreciation - Power Supply 1-07-03-051 1,816,688.84 1,816,688.84
Systems
Accumulated Depreciation - Parks, Plazas and
1-07
M-03
onum
-091
ents 1,321,433.79 1,321,433.79
Infrastructure Assets
Accumulated Depreciation - Buildings 1-07-04-011 66,690,179.48 66,690,179.48
Accumulated Depreciation - School 1-07-04-021 7,461,908.82 367,219.89 7,094,688.93
Accumulated Depreciation - Hospitals and H1-07
ealth
-04C
-0
enters
31 3,090,323.07 3,090,323.07
Accumulated Depreciation - Markets 1-07-04-041 25,611,724.62 25,611,724.62
Accumulated Depreciation - Other 1-07-04-991 33,151,649.48 32,517,657.94 633,991.54
Accumulated Depreciation - Machinery 1-07-05-011 1,780,532.53 1,780,532.53
Accumulated Depreciation - Office 1-07-05-021 13,372,813.00 12,884,417.78 488,395.22
Equipment
Accumulated Depreciation - Information 1-07-05-031 38,152,440.90 32,205,996.14 5,946,444.76
and Communication Technology
Accumulated Depreciation - Agricultural 1-07-05-041 1,634,277.08 1,634,277.08
and Forestry Equipment
Accumulated Depreciation - 1-07-05-071 4,276,303.08 4,276,303.08
Communication Equipment
Accumulated Depreciation - Construction 1-07-05-081 26,851,806.06 26,851,806.06
and Heavy Equipment
Accumulated Depreciation - Disaster 1-07-05-091 1,860,450.33 1,860,450.33
Response and Rescue Equipment
Accumulated Depreciation - Military, 1-07-05-101 148,705.41 148,705.41
Police and Security Equipment
Accumulated Depreciation - Medical 1-07-05-111 7,325,352.66 7,137,041.80 188,310.86
Equipment
Accumulated Depreciation - Technical 1-07-05-141 13,970,922.52 13,970,922.52
and Scientific Equipment
Machinery and Equipment
Accumulated Depreciation - Motor 1-07-06-011 105,250,443.88 104,472,747.44 777,696.44
Accumulated Depreciation - Watercrafts 1-07-06-041 983,502.18 983,502.18
Accumulated Depreciation - Furniture and 1-07-07-011 12,591,912.38 10,226,802.05 2,365,110.33
Fixtures
Accumulated Depreciation - Books 1-07-07-021 5,878,494.39 2,952,347.20 2,926,147.19
Accumulated Depreciation - Other 1-07-99-991 68,279,273.49 67,420,134.27 859,139.22
Property, Plant and Equipment
TOTAL N E T B OOK VALUE P 2,192,053,465.53 P 2,120,744,265.56 43,026,326.89 28,282,873.08
12-1 The LGU measured the residual value of all items of property, plant and equipment, but does
not expect a residual value of these assets, because these will be utilized for their entire economic
lives and do not have a significant scrap value. During the current financial year, the LGU reviews
the estimated useful lives and residual values of property, plant and equipment, where appropriate.
36
12-2 Various Property, Plant & Equipment items costing P 146,593,670.02 that were lost and/or
totally destroyed due to the devastation of super typhoon Yolanda on November 8, 2013 were
written off from the books in CY 2016, with supporting records for “write-off”, except
corresponding complete requests for relief of accountabilities filed by respective accountable
officers. Said requests are in process and pending submission as soon as completed to the City
Accountant’s Office by the City General Services Office as of report date.
Note 13 – Current Liabilities
Ac c o u n t
Pa y a bl e Ac c o u n t s
Accounts Payable 2-01-01-010 P 253,395,204.14 P 132,628,912.56
Due to Officers and Employees 2-01-01-020 2,250,574.83 2,016,689.03
Loans Payable - Domestic 2-01-02-040 506,568,558.23 264,863,399.04
Inter-Agency Payables
Due to BIR 2-02-01-010 7,000,706.57 1,626,515.31
Due to GSIS 2-02-01-020 6,081,276.75 6,359,107.68
Due to Pag-IBIG 2-02-01-030 601,654.55 6,039.48
Due to PhilHealth 2-02-01-040 698,780.96 711,662.60
Due to NGAs 2-02-01-050 7,270,597.82 7,814,499.99
Due to GOCCs 2-02-01-060 1,860,532.70 2,262,809.84
Due to LGUs 2-02-01-070 16,275,951.96 13,986,146.20
Intra-Agency Payables -
Due to Other Funds 2-03-01-010 7,097,202.88 33,397,485.78
Due to Special Accounts 2-03-01-020 - -
DeferredCredits/UnearnedIncome
Deferred Real Property Tax 2-05-01-010 142,024,401.51 97,851,361.08
Deferred Special Education Tax 2-05-01-020 - -
Trust Liabilities
Trust Liabilities 2-04-01-010 34,009,718.86 -
Bail Bonds Payable 2-04-01-030 77,450.00 77,450.00
Guaranty/Security Deposits Payable 2-04-01-040 24,220,017.21 20,766,924.49
Other Liability Accounts
Other Payables 2-99-99-990 6,179,846.07 4,706,938.46
T o t a l Pa y a bl e s P 1,015,612,475.04 P 589,075,941.54
37
Special
Ac c o u n t Ti t l e C o de 2018 Fund Fund Fund
Pa y a bl e Ac c o u n t s
Accounts Payable 2-01-01-010 P 260,913,076.54 P 253,395,204.14 P 6,088,719.05 P 1,429,153.35
Due to Officers and Employees 2-01-01-020 2,362,646.20 2,250,574.83 50,196.93 61,874.44
Loans Payable - Domestic 2-01-02-040 506,568,558.23 506,568,558.23
Inter-Agency Payables
Due to BIR 2-02-01-010 8,075,689.10 7,000,706.57 4,315.03 1,070,667.50
Due to GSIS 2-02-01-020 6,081,276.75 6,081,276.75
Due to Pag-IBIG 2-02-01-030 687,254.55 601,654.55 44,000.00 41,600.00
Due to PhilHealth 2-02-01-040 702,780.96 698,780.96 4,000.00
Due to NGAs 2-02-01-050 121,583,044.46 7,270,597.82 114,312,446.64
Due to GOCCs 2-02-01-060 2,379,243.13 1,860,532.70 53,184.00 465,526.43
Due to LGUs 2-02-01-070 46,606,896.22 16,275,951.96 30,330,944.26
Intra-Agency Payables
Due to Other Funds 2-03-01-010 22,604,218.26 7,097,202.88 1,306,619.23 14,200,396.15
Due to Special Accounts 2-03-01-020 - -
DeferredCredits/UnearnedIncome
Deferred Real Property Tax 2-05-01-010 142,024,401.51 142,024,401.51
Deferred Special Education Tax 2-05-01-020 124,003,931.90 - 124,003,931.90
Trust Liabilities
Trust Liabilities 2-04-01-010 85,152,417.27 34,009,718.86 51,142,698.41
Trust Liabilities - Disaster Risk 2-04-01-020 39,148,776.59 39,148,776.59
Reduction and Management Fund
Bail Bonds Payable 2-04-01-030 77,450.00 77,450.00 -
Guaranty/Security Deposits Payable 2-04-01-040 29,881,204.56 24,220,017.21 5,661,187.35
Other Liability Accounts
Other Payables 2-99-99-990 7,541,953.84 6,179,846.07 128,460.26 1,233,647.51
T o t a l P a y a bl e s P 1,406,394,820.07 P 1,015,612,475.04 P 131,679,426.40 P 259,102,918.63
Accounts Payable includes obligations incurred by various Departments of the City Government’s
disbursement vouchers of which were received and processed by the Accounting Department as of
the end of the year, but payment of which will be made in the succeeding year.
Due to BIR, GSIS, PAG-IBIG and PHILHEALTH consists of withholding taxes, insurance
premiums, loan repayments, etc., deducted from the salaries and wages of employees which are to
be remitted in the succeeding month,
Due to NGAs consists of funds that were entrusted to the City for the implementation of specific
infrastructure projects and other funds that are required to be remitted to the Bureau of National
Treasury and other national agencies.
Due to GOCCs include payments on loan granted to employees of the City Government and
teachers of the Department of Education, Tacloban City Division by the different banks in the City
of Tacloban.
Due to LGUs are various collections with various purposes entrusted to the City Government.
Due to Other Funds include accumulated Employees Welfare Program (EWP) members’ monthly
dues/contributions and interest income under the General Fund, accumulated interest fund
liabilities brought about by errors in the issuance of Official Receipts during collections, issuance
of checks during disbursements, and fund charging.
38
Deferred Credits represents the reciprocal account of Real Property Tax/SET Receivables.
Other Payables include retention money deducted from claims of contractors as provided under
RA 9184 and other pertinent laws, rules and regulations.
Note 14 – Non-Current Liabilities
Ac c ount
Ac c o unt Ti t l e Code 2018 2017
Deferred Credits/Unearned Income
Deferred Real Property Tax 2-05-01-010 P 142,024,401.51 P 85,465,828.56
Deferred Special Education Tax 2-05-01-020 124,003,931.90 45,106,157.29
Tot al P 266,028,333.41 P 130,571,985.85
Ac c ou nt General Special Education Trust

Deferred Credits/Unearned Income

Deferred Real Property Tax 2-05-01-010 P 142,024,401.51 P 142,024,401.51 P - P -
Deferred Special Education Tax 2-05-01-020 124,003,931.90 - 124,003,931.90 -
Tot al P 266,028,333.41 P 142,024,401.51 124,003,931.90 -
Note 14-1 Two (2) tranches of term loans for the City’s various development projects were
approved and ratified by the Sanggunian Panglungsod which were eventually approved by Land
Bank of the Philippines in the amount of P 391,000,000 on February 18, 2016, and on August 22,
2017 at the Development Bank of the Philippines in the amount of P230,000,000.00. Releases,
however, are based on accomplishment and billings by the contractor per project.
Amortization of principal will commence effective after a given amortization grace period from
two (2) to three (3) years from initial drawdown per each project. Details of such loans are as
follows:
Amount of loan releases as of December 31, 2018
Bank Amount of Loan Releases Unreleased

2017 2018 Balance
Land Bank of the Philippines 391,000,000.00 155,433,406.34 105,130,709.27 89,805,891.69
Development Bankof the Philippines 230,000,000.00 68,800,000.00 136,574,449.92 24,625,550.08
Total 621,000,000.00 224,233,406.34 241,705,159.19 155,061,434.47
39
Creditor Bank/Purpose of Loan LoanAmount Date Approved Terms
Land Bankof the Philippines
Construction of Slaughterhouse 113,000,000.00 2/18/2016 4.5%per annumpayable in 15years
Construction of Drainage System 192,000,000.00 2/18/2016 inclusive of 2.75years grace period
Development of Sanitary Landfill 86,000,000.00 2/18/2016 fromdate of initial drawdown
Development Bankof the Phil.

Construction of Drainage System 230,000,000.00 8/9/2017 4.45%per annumpayable in 15years
inclusive of 3years grace period from
date of initial frawdown
TOTAL 621,000,000.00
Note 15 – Government Equity
Ac c o u n t T i t l e 2018 2017
Government Equity, beginning P 2,042,689,281.71 P 1,867,600,420.43
Prior Period Adjustment (78,600,108.30) (60,075,005.56)
Restated Balance 1,964,089,173.41 1,807,525,414.87
Add (Deduct) Changes in Net Assets/Equity duringthe year 30,555,460.24 113,464,473.66

Adjustment of Net Revenue Recognized in Net
Assets/Equity
Surplus (Deficit) For The Period 42,223,688.53 121,699,393.18
Government Equity, End P 2,036,868,322.18 P 2,042,689,281.71
Special
Ac c o u n t Ti t l e 2018 Fund Fund Fund
Government Equity, beginning P 2,089,666,807.97 P 2,042,689,281.71 P 46,977,526.26 P -
Prior Period Adjustment (78,007,454.40) (78,600,108.30) 592,653.90 -
Restated Balance 2,011,659,353.57 1,964,089,173.41 47,570,180.16 -
Add (Deduct) Changes in Net Assets/Equity duringthe year 30,555,460.24 30,555,460.24 -
Adjustment of Net Revenue Recognized in Net
Surplus (Deficit) For The Period 42,337,677.03 42,223,688.53 113,988.50 -
Government Equity, End P 2,084,552,490.84 P 2,036,868,322.18 P 47,684,168.66 P -
40
Statement of Financial Performance
Note 16 – Tax Revenue
Ac c o u n t
Professional Tax 4-01-01-020 P 458,854.59 P 450,100.00
Community Tax 4-01-01-050 7,476,861.24 9,702,338.37
Real Property Tax- Basic 4-01-02-040 48,255,169.28 45,687,261.35
Discount on Real Property Tax- Basic 4-01-02-041 (7,592,574.10) (6,853,918.14)
Real Property Transfer Tax 4-01-02-080 4,218,045.22 4,347,286.50
Business Tax 4-01-03-030 175,436,668.33 151,814,426.46
Taxon Sand, Gravel and Other Quarry Products 4-01-03-040 - -
Taxon Delivery Trucks and Vans 4-01-03-050 2,969,417.00 3,422,720.00
Amusement Tax 4-01-03-060 6,709,857.78 10,028,194.38
Franchise Tax 4-01-03-070 1,404,894.89 1,336,922.34
Printingand Publication Tax 4-01-03-080 - 21,791.42
TaxRevenue - Fines and Penalties - Taxes on 4-01-05-010 960,459.20 265,217.18
Individual and Corporation
TaxRevenue - Fines and Penalties - Property Taxes 4-01-05-020 3,722,152.82 4,233,401.09
To t a l P 254,580,917.89 P 235,096,958.37
Special Trust
Ac c o u n t General Education
Professional Tax 4-01-01-020 P 458,854.59 P 458,854.59 P - P -
Community Tax 4-01-01-050 7,476,861.24 7,476,861.24 - -
Real Property Tax- Basic 4-01-02-040 48,255,169.28 48,255,169.28 - -
Discount on Real Property Tax- Basic 4-01-02-041 (7,592,574.10) (7,592,574.10) - -
Special Education Tax 4-01-02-050 41,960,806.02 - 41,960,806.02 -
Discount on Special Education Tax 4-01-02-051 (6,734,450.11) - (6,734,450.11) -
Real Property Transfer Tax 4-01-02-080 4,218,045.22 4,218,045.22 - -
Business Tax 4-01-03-030 175,436,668.33 175,436,668.33 - -
Taxon Sand, Gravel and Other Quarry Products 4-01-03-040 - - - -
Taxon Delivery Trucks and Vans 4-01-03-050 2,969,417.00 2,969,417.00 - -
Amusement Tax 4-01-03-060 6,709,857.78 6,709,857.78 - -
Franchise Tax 4-01-03-070 1,404,894.89 1,404,894.89 - -
Printingand Publication Tax 4-01-03-080 - - - -
TaxRevenue - Fines and Penalties - Taxes on 4-01-05-010 960,459.20 960,459.20 - -
TaxRevenue - Fines and Penalties - Property Taxes 4-01-05-020 6,122,548.78 3,722,152.82 2,400,395.96 -
TaxRevenue - Fines and Penalties - Other Taxes 4-01-05-040 10,561,111.64 10,561,111.64 - -
Total Tax Revenue P 292,207,669.76 P 254,580,917.89 P 37,626,751.87 P -
Note 17 – Share from Internal Revenue Allotment (IRA)

Ac c o u n t
Share fromInternal Revenue Allotment (IRA) 4-01-06-010 P 720,511,838.00 P 671,263,619.00
41
Ac c o un t General Special Trust
Share fromInternal Revenue Collections (IRA) 4-01-06-010 P 720,511,838.00 P 720,511,838.00 P - P -

Tot al P 720,511,838.00 P 720,511,838.00 - -
Note 18 – Permits and Licenses, Service and Business Income

Ac c o u n t
Ac c o u n t Ti t l e C o de 2018 2017
Service Income
Permit Fees 4-02-01-010 P 42,468,267.50 P 47,333,783.59
Registration Fees 4-02-01-020 7,544,250.36 4,260,658.00
Registration Plates, Tags and Stickers Fees 4-02-01-030 2,461,455.00 608,977.80
Clearance and Certification Fees 4-02-01-040 6,743,790.98 6,300,487.58
Supervision and Regulation Enforcement Fees 4-02-01-070 4,130,745.00 2,336,590.00
Inspection Fees 4-02-01-100 8,969,710.67 8,007,052.61
Verification and Authentication Fees 4-02-01-110 304,890.00 236,385.00
ProcessingFees 4-02-01-130 315,502.07 269,695.00
Occupation Fees 4-02-01-140 1,292,366.25 20,280.00
Fishery Rental Fees 4-02-01-150 16,528.89 6,610.00
Fees for Sealing and Licensingof Weights 4-02-01-160 - 92,696.25
and Measures
Other Service Income 4-02-01-990 223,960.00 200.00
To t a l S e r vI c e I n c o me P 74,471,466.72 P 69,473,415.83
Ac c o u n t
Business Income
Rent Income 4-02-02-050 P 2,099,968.73 P 660,500.00
Transportation SystemFees 4-02-02-070 28,331,786.02 25,018,148.13
Seaport SystemFees 4-02-02-110 533,626.04 1,001,962.56
ParkingFees 4-02-02-120 1,250.00 1,200.00
Receipt fromMarket Operations 4-02-02-140 21,841,291.73 13,263,183.45
Receipt fromSlaughterhouse Operation 4-02-02-150 2,426,184.00 3,003,987.07
Sales Revenue 4-02-02-180 181,294.29
Garbage Fees 4-02-02-190 19,897,563.50 18,820,908.52
Hospital Fees 4-02-02-200 3,789,625.71 2,671,399.99
Share in the Profit of Joint Venture- Fish Port
Operation 4-02-02-260 848,150.63
T o t a l B u s i n e s s I n c o me P 79,950,740.65 P 64,441,289.72
T o t a l S e r vi c e a n d Bu s i n e s s I n c o me P 154,422,207.37 P 133,914,705.55
18-1 Total business income for CY 2018 includes revenues for operating units considered as
economic enterprises. Separate subsidiary ledgers for income and expenses of these enterprises
were maintained effective. As of report date, the Tacloban City Hospital operations has not yet
been included as an economic enterprise as the Economic Enterprise Committee resolved that this
establishment is not yet intended for making profits, but in the delivery of health services for the
public.
42
Total revenues derived from the operations of economic enterprises were as follows:
Operations of Market 21,841,291.73

Operation of Slaughterhouse 2,426,184.00
Operation of Bus Terminal 28,331,786.02
Fish Port Operation 1,381,776.67
Operation of Convention Centers 1,865,193.73
TOTAL 55,846,232.15
Separate financial statements as of December 31, 2018 for each economic enterprise had been
prepared to measure results of operations and financial condition.
18-2 On May 15, 2012, the amount of Thirty-Three Million Six Hundred Thousand Pesos (P
33,600,000.00) was received from HEVA Management & Development Corporation (GAISANO)
representing advance rental for ten (10) years or P288,000.00 per month effective June 1, 2012 up
to May 31, 2022. This has been recorded as outright income from Market Operation during the
year it was collected. This is in consonance with modified accrual basis of accounting applied by
the LGU before the implementation of PPSAS which is to recognize revenues at the point of
collection and the expenses at the point of incurrence. Proceeds from Gaisano rental has been
classified as income under Operation of Markets.
Note 19- Other Income
Ac c o u n t
Other Income
Interest Income 4-02-02-220 P 2,529,737.72 P 1,286,682.65
Share fromPCA 4-04-01-030 16,260.00 -
Other Gains 4-05-01-990 24,605.71 90,540.00
Miscellaneous Income 4-06-01-010 33,703,898.52 12,746,670.03
To t a l O t h e r I n c o me P 36,274,501.95 P 14,123,892.68
Special
Ac c ount General Education Trust
Other Income -
Interest Income 4-02-02-220 P 2,536,529.15 P 2,529,737.72 P 6,791.43 P -
Share fromPCA 4-04-01-030 16,260.00 16,260.00 - -
Other Gains 4-05-01-990 24,605.71 24,605.71 - -
Miscellaneous Income 4-06-01-010 33,703,898.52 33,703,898.52 - -
Subsidy fromGeneral Fund Proper/Other Special Accounts
4-03-01-050 - - - -
Grants and Donations in Cash 4-04-02-010 - - - -
Tot al P 36,281,293.38 P 36,274,501.95 P 6,791.43 P -
43
Note 20 – Personnel Services
PERSONNELSERVICES
Salaries and Wages - Regular 5-01-01-010 P 196,090,587.74 P 184,813,049.50
Salaries and Wages - Casual/Contractual 5-01-01-020 38,383,513.64 35,379,448.44
OTHERCOMPENSATION -
Personal Economic Relief Allowance (PERA) 5-01-02-010 23,346,473.22 23,260,541.76
Representation Allowance (RA) 5-01-02-020 4,889,454.55 4,762,500.00
Transportation Allowance (TA) 5-01-02-030 4,943,184.92 4,677,500.00
Clothing/UniformAllowance 5-01-02-040 5,815,000.00 5,120,000.00
Subsistence Allowance 5-01-02-050 2,237,085.96 2,627,755.65
Laundry Allowance 5-01-02-060 72,876.28 160,302.34
Quarters Allowance 5-01-02-070 - -
Productivity Incentive Allowance 5-01-02-080 - 4,667,500.00
Honoraria 5-01-02-100 26,000.00 6,000.00
Hazard Pay 5-01-02-110 3,184,231.44 3,080,139.34
Longevity Pay 5-01-02-120 555,000.00 780,000.00
Overtime and Night Pay 5-01-02-130 2,718,296.32 3,155,917.26
Year End Bonus 5-01-02-140 38,910,862.85 36,272,758.00
Cash Gift 5-01-02-150 4,832,500.00 4,858,500.00
Other Bonuses and Allowances 5-01-02-990 96,000.00 102,000.00
PERSONNELBENEFIT CONTRIBUTION -
Retirement and Life Insurance Premiums 5-01-03-010 28,287,304.27 26,021,064.44
Pag-IBIG Contributions 5-01-03-020 1,382,386.83 1,182,632.40
PhilHealth Contributions 5-01-03-030 2,706,659.64 2,204,257.50
Employees Compensation Insurance Premiums 5-01-03-040 1,170,581.15 1,154,651.77
OTHERPERSONNELBENEFIT -
Terminal Leave Benefits 5-01-04-030 7,626,438.69 6,269,305.78
Other Personnel Benefits 5-01-04-990 28,542,854.84 22,765,663.25
T o t a l P e r s o n n e l S e r vI c e s P 395,817,292.34 P 373,321,487.43
44
Special
PERSONNELSERVICES
Salaries and Wages - Regular 5-01-01-010 P 196,090,587.74 P 196,090,587.74 P - P -
Salaries and Wages - Casual/Contractual 5-01-01-020 39,144,976.44 38,383,513.64 761,462.80 -
OTHERCOMPENSATION -
Personal Economic Relief Allowance (PERA) 5-01-02-010 23,346,473.22 23,346,473.22 - -
Representation Allowance (RA) 5-01-02-020 4,889,454.55 4,889,454.55 - -
Transportation Allowance (TA) 5-01-02-030 4,943,184.92 4,943,184.92 - -
Clothing/UniformAllowance 5-01-02-040 5,815,000.00 5,815,000.00 - -
Subsistence Allowance 5-01-02-050 2,237,085.96 2,237,085.96 - -
Laundry Allowance 5-01-02-060 72,876.28 72,876.28 - -
Quarters Allowance 5-01-02-070 - - - -
Productivity Incentive Allowance 5-01-02-080 - - - -
Honoraria 5-01-02-100 26,000.00 26,000.00 - -
Hazard Pay 5-01-02-110 3,184,231.44 3,184,231.44 - -
Longevity Pay 5-01-02-120 555,000.00 555,000.00 - -
Overtime and Night Pay 5-01-02-130 2,718,296.32 2,718,296.32 - -
Year End Bonus 5-01-02-140 38,910,862.85 38,910,862.85 - -
Cash Gift 5-01-02-150 4,832,500.00 4,832,500.00 - -
Other Bonuses and Allowances 5-01-02-990 96,000.00 96,000.00 - -
PERSONNELBENEFITCONTRIBUTION -
Retirement and Life Insurance Premiums 5-01-03-010 28,287,304.27 28,287,304.27 - -
Pag-IBIG Contributions 5-01-03-020 1,382,386.83 1,382,386.83 - -
PhilHealth Contributions 5-01-03-030 2,706,659.64 2,706,659.64 - -
Employees Compensation Insurance Premiums5-01-03-040 1,170,581.15 1,170,581.15 - -
OTHERPERSONNELBENEFIT -
Terminal Leave Benefits 5-01-04-030 7,626,438.69 7,626,438.69 - -
Other Personnel Benefits 5-01-04-990 28,542,854.84 28,542,854.84 - -
To t a l Pe r s o n n e l S e r vI c e s P 396,578,755.14 P 395,817,292.34 P 761,462.80 P -
45
Note 21 – Maintenance and Other Operating Services
Consultancy Services 5-02-11-030 - -

Awards/ Rewards Expenses 5-02-06-010 328,620.00 -
Other Professional Services 5-02-11-990 19,311,529.85 16,544,285.46
Environment/Sanitary Services 5-02-12-010 67,432,682.51 45,582,277.57
Other General Services 5-02-12-990 - 27,744.40
Repairs and Maintenance - Infrastructure Assets 5-02-13-030 10,770,607.80 5,433,608.39
Repairs and Maintenance - Buildings and Other Structures
5-02-13-040 1,073,299.33 787,279.78
Repairs and Maintenance - Machinery and Equipment 5-02-13-050 240,691.77 320,466.22
Repairs and Maintenance - Transportation Equipment 5-02-13-060 3,381,115.41 2,536,094.75
Repairs and Maintenance - Furniture and Fixtures 5-02-13-070 236,000.00 37,980.00
Repairs and Maintenance - Other Property, Plant and5-02-13-990
Equipment 515,890.32 190,843.19
Subsidy to NGAs 5-02-14-020 18,536,989.69 52,264,810.51
Subsidies - Others 5-02-14-990 24,074,959.97 20,810,387.78
Taxes, Duties and Licenses 5-02-16-010 376,070.59 241,546.13
Fidelity Bond Premiums 5-02-16-020 411,386.25 905,525.50
Insurance Expenses 5-02-16-030 4,507,552.74 9,814,417.32
AdvertisingExpenses 5-02-99-010 2,057,689.32 346,380.00
Printingand Publication Expenses 5-02-99-020 - 234,456.00
Representation Expenses 5-02-99-030 5,842,910.00 3,616,891.00
Rent Expenses 5-02-99-050 122,400.00 163,200.00
Membership Dues and Contributions to Organization5-02-99-060 200,000.00
Subscription Expenses 5-02-99-070 107,946.00 229,320.00
Donations 5-02-99-080 1,722,150.00 4,596,433.24
Other Maintenance and OperatingExpenses 5-02-99-990 280,846,185.88 243,787,281.12
Total Maintenance andOther Operating Expenses P 575,818,867.67 P 504,747,992.88
`
46
Special
MAINTENANCEANDOTHEROPERATINGSERVICES
TravelingExpenses - Local 5-02-01-010 P 6,526,075.75 P 6,156,668.02 369,407.73 -
TravelingExpenses - Foreign 5-02-01-020 - - - -
TrainingExpenses 5-02-02-010 4,517,485.73 3,727,045.73 790,440.00 -
Office Supplies Expenses 5-02-03-010 13,705,255.17 13,433,925.17 271,330.00 -
Accountable Forms Expenses 5-02-03-020 2,549,250.00 2,549,250.00 - -
Non-Accountable Forms Expenses 5-02-03-030 8,000.00 8,000.00 - -
Animal/Zoological Supplies Expenses 5-02-03-040 40,740.00 40,740.00 - -
Food Supplies Expenses 5-02-03-050 1,655,471.41 1,655,471.41 - -
Drugs and Medicines Expenses 5-02-03-070 5,743,788.76 5,743,788.76 - -
Medical, Dental and Laboratory Supplies Expenses 5-02-03-080 12,219,123.60 12,219,123.60 - -
Fuel, Oil and Lubricants Expenses 5-02-03-090 33,891,822.16 33,891,822.16 - -
Agricultural and Marine Supplies Expenses 5-02-03-100 - - - -
Military, Police and Traffic Supplies Expenses 5-02-03-120 26,820.00 26,820.00
Other Supplies and Materials Expenses 5-02-03-990 9,323,548.67 9,323,548.67 - -
Water Expenses 5-02-04-010 3,087,274.50 3,080,061.05 7,213.45 -
Electricity Expenses 5-02-04-020 34,872,724.92 34,748,018.86 124,706.06 -
Postage and Courier Services 5-02-05-010 40,000.00 40,000.00 - -
Telephone Expenses 5-02-05-020 2,193,848.17 1,761,848.17 432,000.00 -
Internet Subscription Expenses 5-02-05-030 1,310,558.64 1,310,558.64 - -
Cable, Satellite, Telegraph and Radio Expenses 5-02-05-040 5,500.00 5,500.00 - -
Awards/ Rewards Expenses 5-02-06-010 328,620.00 328,620.00
Confidential Expenses 5-02-10-010 4,000,000.00 4,000,000.00 - -
Other Professional Services 5-02-11-990 19,311,529.85 19,311,529.85 - -
Environment/Sanitary Services 5-02-12-010 67,432,682.51 67,432,682.51 - -
Other General Services 5-02-12-990 - - - -
Repairs and Maintenance - Infrastructure Assets 5-02-13-030 10,770,607.80 10,770,607.80 - -
Repairs and Maintenance - Buildings and Other Structures
5-02-13-040 1,073,299.33 1,073,299.33 - -
Repairs and Maintenance - Machinery and Equipment5-02-13-050 240,691.77 240,691.77 - -
Repairs and Maintenance - Transportation Equipment5-02-13-060 3,381,115.41 3,381,115.41 - -
Repairs and Maintenance - Furniture and Fixtures 5-02-13-070 236,000.00 236,000.00 - -
Repairs and Maintenance - Other Property, Plant and5-02-13-990
Equipment 515,890.32 515,890.32 - -
Subsidy to NGAs 5-02-14-020 33,206,278.78 18,536,989.69 14,669,289.09 -
Subsidies - Others 5-02-14-990 24,074,959.97 24,074,959.97 - -
Taxes, Duties and Licenses 5-02-16-010 376,070.59 376,070.59 - -
Fidelity Bond Premiums 5-02-16-020 411,386.25 411,386.25 - -
Insurance Expenses 5-02-16-030 4,529,102.74 4,507,552.74 21,550.00 -
AdvertisingExpenses 5-02-99-010 2,057,689.32 2,057,689.32 - -
Printingand Publication Expenses 5-02-99-020 - - - -
Representation Expenses 5-02-99-030 5,842,910.00 5,842,910.00 - -
Rent Expenses 5-02-99-050 122,400.00 122,400.00 - -
Membership Dues and Contribution to Organization5-02-99-060 200,000.00 200,000.00
Subscription Expenses 5-02-99-070 107,946.00 107,946.00 - -
Donations 5-02-99-080 2,122,150.00 1,722,150.00 400,000.00 -
Other Maintenance and OperatingExpenses 5-02-99-990 299,815,169.05 280,846,185.88 18,968,983.17 -
Total Maintenance andOther Operating Expenses P 611,873,787.17 P 575,818,867.67 P 36,054,919.50 P -
`
47
Ac c o u n t
Ac c o u n t T i t l e C o de 2018
OTHERMAINTENANCEAND OTHEROPERATINGSERVICES
Other Maintenance and OperatingExpenses 5-02-99-990 P 23,741,805.43
Records Management Program 5-02-99-990-01 15,814,025.37
Anti-DrugAbuise Program 5-02-99-990-02 5,613,758.19
Barangay Outreach Program 5-02-99-990-03 23,765,858.76
Beautification &Cleanliness Program 5-02-99-990-04 3,593,631.73
Cooperatives Development &Promotion 5-02-99-990-08 497,277.08
Community Extension bayanihan Rep 5-02-99-990-09 602,232.98
Accounting/BookkeepingServices 5-02-99-990-10 527,817.01
Computer Hardware Maintenance services 5-02-99-990-11 1,182,993.10
Limpyo Merkado ProgramComputer 5-02-99-990-12 2,426,155.91
Youth for Human &Ecological Security 5-02-99-990-13 258,000.00
Tacloban CityVolunteer Service Program 5-02-99-990-16 2,114,468.42
Civil Registration 5-02-99-990-17 933,642.26
Human Resource Development Program 5-02-99-990-18 1,404,049.55
Inmates Welfare &Development Program 5-02-99-990-19 829,736.01
CBMSProject 5-02-99-990-20 79,800.00
Public Employment Servces Program 5-02-99-990-21 11,314,313.31
Databank Project 5-02-99-990-22 131,497.30
CDC Program 5-02-99-990-23 240,000.00
Health Program 5-02-99-990-24 11,295,921.11
Local Health Board 5-02-99-990-27 10,950.00
Maintenance of 67 Day Care Centers 5-02-99-990-28 6,177,309.43
Maintenance of Day Center for Senior Citizen 5-02-99-990-29 9,120.00
Electrification Program 5-02-99-990-30 29,379,627.13
Livestock Production Program 5-02-99-990-31 18,000.00
Public Information Diddemination Program 5-02-99-990-32 9,570,465.74
Public Order &Safety Management Program 5-02-99-990-33 3,914,959.99
Relocation of Squatters 5-02-99-990-34 54,000.00
Revenue Enhancement &Mobilization Program 5-02-99-990-35 2,132,639.10
RPT Project 5-02-99-990-36 615,373.57
RPT Administration 5-02-99-990-37 351,962.24
Socio-Cultural 5-02-99-990-38 9,965,285.50
48
Special Programfor Employment of Student 5-02-99-990-39 1,027,931.99
Sports Development Program 5-02-99-990-40 4,365,574.60
Summer Work Apprecation Program 5-02-99-990-41 1,186,317.01
TourismDevelopment &Promotion 5-02-99-990-42 20,098,926.74
Capability BuildingActivities (Trainingof Brg 5-02-99-990-43 1,272,098.50
Security and Janitorial Services 5-02-99-990-45 11,080,980.22
BAR-FLAG Fund 5-02-99-990-46 47,880.00
Nutrition/FeedingProgram 5-02-99-990-47 788,119.68
Update CDP, Clup Project 5-02-99-990-48 672,387.16
Spatial DATA BASE gathering&GeocodingProgram 5-02-99-990-49 196,228.42
Maintenance of 12 Brgy. Health Centers 5-02-99-990-50 162,500.00
Legislative Service & Research Program 5-02-99-990-51 4,438,319.24
Biowaste Composting&Management Program 5-02-99-990-52 351,586.50
Gender and Development Program 5-02-99-990-53 3,167,328.36
Trade Investments &Promotions Program 5-02-99-990-55 213,719.00
Public Education Enhancement Program 5-02-99-990-56 341,383.20
Mariculture Development Program 5-02-99-990-57 1,454,249.12
Burial assistance 5-02-99-990-58 362,402.37
Disabled Persons Welfare Program 5-02-99-990-59 1,231,207.30
Emergency Assistance 5-02-99-990-60 1,165,821.76
Child and Youth Welfare Program 5-02-99-990-61 843,376.31
Assistance in Crisis Situation 5-02-99-990-62 2,373,368.55
Family &Community Welfare Program 5-02-99-990-63 1,002,071.43
Maintenance of Juvenile Offenders 5-02-99-990-64 42,675.00
Maintenance of Day Center for Street &W 5-02-99-990-65 68,828.99
Maintenance of Mentally Ill Persons 5-02-99-990-66 206,195.00
Maintenance of Children in Conflict with Law 5-02-99-990-67 1,434,380.00
Senior Citizens Welfare Program 5-02-99-990-68 1,315,330.45
Womens Welfare ProgramCommunity Based 5-02-99-990-69 496,530.55
Women Welfare ProgramCenter based 5-02-99-990-70 1,369,785.58
Resettlement &HousingWelfare Program 5-02-99-990-71 46,907.00
Maintenance of ICT TrainingCenters 5-02-99-990-72 63,360.00
Agro-Aqua Fishery Program 5-02-99-990-73 459,986.75
Solid Waste Management Program 5-02-99-990-75 2,062,634.00
Social Development Center for children 5-02-99-990-76 2,438,242.23
Leyte LandingAnniversary 5-02-99-990-77 508,989.00
Limpyo Tacloban 5-02-99-990-78 6,669,782.81
Traffic Management Program 5-02-99-990-79 10,430,259.80
Support Service Program 5-02-99-990-80 672,001.52
Veterinary, Health and Animal Control Service 5-02-99-990-81 274,468.15
Slaughterhouse Services 5-02-99-990-82 1,697,134.88
BACSecretariat Services 5-02-99-990-83 144,050.61
5%Calamity Fund 5-02-99-990-84 21,664,182.88
Self Employment Assistance Program 5-02-99-990-87 134,014.96
Financial Assistance elementary &Secondary Scho 5-02-99-990-88 264,886.12
Capability Buildingof different Offices 5-02-99-990-89 1,971,105.92
T o t a l O t h e r Ma i n t e n a n c e a n d O pe r a t i n g Ex pe n s e s P 280,846,185.88
49
Note 22 – Non-Cash Expenses
Ac c o u n t
Depreciation
Investment Property
Depreciation - Investment Property 5-05-01-010 P 11,159,378.85 P 10,834,686.88
LandImprovements
Depreciation - Land Improvements 5-05-01-020 19,682,283.39 13,281,251.40
Depreciation - Infrastructure Assets 5-05-01-030 10,296,711.20 4,755,913.47
Buildings
Depreciation - Buildings and Other Structures 5-05-01-040 25,120,793.42 34,720,731.19
Equipment
Depreciation - Machinery and Equipment 5-05-01-050 36,132,301.23 31,201,202.34
Depreciation - Transportation Equipment 5-05-01-060 11,706,070.58 11,118,386.16
Furniture andFixtures
Depreciation - Furniture, Fixtures and Books 5-05-01-070 2,341,642.76 2,687,863.53
Other Property, Plant andEquipment
Depreciation - Other Property, Plant and 5-05-01-990 18,031,225.79 18,929,163.92
Equipment
Impairment Loss
Impairment Loss - Other Receivables 5-05-03-060 - -
Loss of Assets 5-05-04-090 - -
T o t a l N o n - C a s h Ex pe n s e s P 134,470,407.22 P 127,529,198.89
Special
Depreciation
Investment Property
Depreciation - Investment Property 5-05-01-010 P 11,159,378.85 P 11,159,378.85 P - P -
LandImprovements
Depreciation - Land Improvements 5-05-01-020 19,682,283.39 19,682,283.39 - -
Depreciation - Infrastructure Assets 5-05-01-030 10,296,711.20 10,296,711.20 - -
Buildings
Depreciation - Buildings and Other Structures 5-05-01-040 25,635,855.42 25,120,793.42 515,062.00 -
Equipment
Depreciation - Machinery and Equipment 5-05-01-050 36,132,301.23 36,132,301.23 - -
Depreciation - Transportation Equipment 5-05-01-060 11,706,070.58 11,706,070.58 - -
Furniture andFixtures
Depreciation - Furniture, Fixtures and Books 5-05-01-070 2,341,642.76 2,341,642.76 - -
Other Property, Plant andEquipment

Depreciation - Other Property, Plant and 5-05-01-990 18,219,336.29 18,031,225.79 188,110.50 -
Equipment
Impairment Loss
Impairment Loss - Other Receivables 5-05-03-060 - - - -
Loss of Assets 5-05-04-090 - -
-
To t a l N o n - C a s h Ex pe n s e s P 135,173,579.72 P 134,470,407.22 P 703,172.50 P -
50
Note 23 – Financial Expenses
Ac c o u n t
Financial Expenses
Interest Expenses 5-03-01-020 P 15,385,250.58 P 5,522,341.48
Bank Charges 5-03-01-040 2,073,958.87 853,881.00
T o t a l Fi n a n c i a l Ex pe n s e s P 17,459,209.45 P 6,376,222.48
Ac c o u n t Special
Ac c o u n t Ti t l e Co de 2018 Fund Fund Fund
Financial Expenses
Interest Expenses 5-03-01-020 P 15,385,250.58 P 15,385,250.58 P - P -
Bank Charges 5-03-01-040 2,073,958.87 2,073,958.87 - -
T o t a l Fi n a n c i a l Ex pe n s e s P 17,459,209.45 P 17,459,209.45 - -
Statement of Cash Flows
Note 25 – Cash Inflows from Operating Activities

Pa r t i c u l a r s 2018 2017
Cash Inflows fromOperatingActivities
Collection fromTaxpayers P 250,010,502.79 P 227,076,561.89
Share fromInternal Revenue Collections 720,511,838.00 671,263,619.00
Share fromPCA 16,260.00
Receipts fromSale of Goods or Services 156,726,100.87 134,111,427.92
Interest Income 249,059.72 1,825,290.52
Miscellaneous Income 20,005,980.85 7,954,315.97
Other Receipts 34,241,272.78 43,768,345.11
T o t a l Cash Inflows fromOperating Activities P 1,181,761,015.01 P 1,085,999,560.41
Special Education
General Trust
Pa r t i c u l a r s 2018 Fund Fund Fund
Cash Inflows fromOperatingActivities
Collection fromTaxpayers P 287,637,254.66 P 250,010,502.79 P 37,626,751.87 P
Share fromInternal Revenue Collections 720,511,838.00 720,511,838.00
Share fromPCA 16,260.00 16,260.00
Receipts fromSale of Goods or Services 156,726,100.87 156,726,100.87
Interest Income 255,851.15 249,059.72 6,791.43
Miscellaneous Income 20,005,980.85 20005980.85
Other Receipts 247,478,146.07 34,241,272.78 16,562,313.05 196,674,560.24
To t a l Cash Inflows fromOperating Activities P 1,432,631,431.60 P 1,181,761,015.01 P 54,195,856.35 P 196,674,560.24
51
Note 26 – Cash Outflows from Operating Activities
Pa r t i c u l a r s 2018 2017
Cash Outflows fromOperatingActivities
To Suppliers/Creditors P 260,323,215.27 P 219,530,500.34
To Employees 247,783,260.97 256,654,115.11
Interest Expenses 15,382,851.58 735,586.95
Other Expenses/Disbursements 488,311,641.33 421,305,526.65
T o t a l Cash Outflows fromOperating Activities P 1,011,800,969.15 P 898,225,729.05
Special
Cash Outflows fromOperatingActivities
To Suppliers/Creditors P 313,257,639.26 P 260,323,215.27 P 835,249.51 P 52,099,174.48
To Employees 248,544,723.77 247,783,260.97 761,462.80
Interest Expenses 15,382,851.58 15,382,851.58
Other Expenses/Disbursements 653,096,490.79 488,311,641.33 58,932,448.27 105,852,401.19
To t a l Cash Outflows fromOperating ActivitiesP 1,230,281,705.40 P 1,011,800,969.15 P 60,529,160.58 P 157,951,575.67
Note 27 – Cash Inflows from Investing Activities
Pa r t i c u l a r s 2018 2017
Cash Inflows fromInvestingActivities
FromCollection of Principal on Loans to Other Entities P - P 7,309,086.45
T o t a l Cash Inflows fromInvesting Activities P - P 7,309,086.45
Special
Cash Inflows fromInvestingActivities
FromCollection of Principal on Loans to OtherPEntities P P - P -
T o t a l Cash Inflows fromInvesting Activities P - P - -
Note 28 – Cash Outflows from Investing Activities
Pa r t i c u l a r s 2018 2017
Cash Outflows fromInvestingActivities
To Purchase Property, Plant and Equipment P 327,586,370.50 P 300,728,163.93
To Grant/Make Loans to Other Entities
T o t a l Cash Outflows fromInvesting Activities P 327,586,370.50 P 300,728,163.93
52
Special
Cash Outflows fromInvestingActivities
To Purchase Property, Plant and Equipment P 366,166,669.88 P 327,586,370.50 P 4,212,101.01 P 34,368,198.37
To Grant/Make Loans to Other Entities
To t a l Cash Outflows fromInvesting Activities P 366,166,669.88 P 327,586,370.50 P 4,212,101.01 P 34,368,198.37
Note 29 - Cash Inflows from Financing Activities
Pa r t i c u l a r s 2018 2017
Cash Inflows fromFinancingActivities
FromIssuance of Debt Securities
FromAcquisition of Loan
Interest Income
Proceeds fromLoans P 241,705,159.19 P 224,166,595.34
T o t a l Cash Inflows fromFinancing Activities P 241,705,159.19 P 224,166,595.34
Special
Cash Inflows fromFinancingActivities
FromIssuance of Debt Securities P P P - P -
FromAcquisition of Loan - -
Interest Income - -
Proceeds fromLoans 241,705,159.19 241,705,159.19 - -
To t a l Cash Inflows fromFinancing Activities P 241,705,159.19 P 241,705,159.19 P - P -
Note 30 – Cash Outflows from Financing Activities
Pa r t i c u l a r s 2018 2017
Cash Outflows fromFinancingActivities
Payment of Bank charges P - P
Payment of Interest expense -
T o t a l Cash Outflows fromFinancing Activities P 0 P -
Special
Cash Outflows fromFinancingActivities
Payment of Bank charges P - P - - -
Payment of Interest expense - - - -
T o t a l Cash Outflows fromFinancing ActivitiesP - P - - -

- -
53
Note 31- Reconciliation of Net Cash Flows from Operating Activities to Surplus/(Deficit) are
as follows:
Particulars 2019 2018

Surplus/Deficit 42,300,304.03 36,027,862.43
Non-CashTransactions:
Depreciation-Investment Property 11,159,378.85 11,159,378.85
Depreciation-Land Improvements 19,682,283.39 19,682,283.39
Depreciation-Infrastructure Assets 10,296,711.20 10,296,711.20
Depreciation-Buildings and Other Structures 25,635,855.42 25,635,855.42
Depreciation-Machineryand Equipment 36,132,301.23 36,132,301.23
Depreciation-Furniture,Fixtures and Books 2,341,642.76 2,341,642.76
Depreciation-Other Property,Plant and Equipment 18,219,336.29 18,219,336.29
Depreciation-TransportationEquipment 11,706,070.58 11,706,070.58
Loss onAsset
(Increase) Decrease in Investments 25,000,000.00
(Increase) Decrease in Receivables (209,872,577.61) (134,609,419.86)
(Increase) Decrease in Inventories 2,849,524.72 2,849,524.72
(Increase) Decrease in Prepayments (18,971,243.28) (13,970,241.60)
(Decrease) Increase in Accounts Payable 114,920,113.59 141,680,941.16
(Decrease) Increase in Deffered Real PT 105,376,240.27
(Decrease) Increase in Other Payables 1,559,827.61
(Decrease) Increase in Inter AgencyPayables 4,640,010.80
(Decrease) Increase in Intra AgencyPayables (626,053.65)
(Decrease) Increase in Real PropertyRev -
Net CashfromOperating Activities 202,349,726.20 167,152,246.57
Statement of Comparison of Budget and Actual Amounts
Note 32 –Deficiency in collections as against targets for Tax Revenue-Property & Tax Revenue –
Goods & Services in the total amount of One Hundred Twenty Four Million Two Hundred Ninety
Three Thousand Eighty two pesos & 11/100 ( 124,293,082.11) were due to the following factors:
(1) It was found out by the City Treasurers Office that the Summary of Real Property Assessment
of Tacloban City is bloated due to: double entry resulting from the migration of data from the old
system to the new PATAS System, likewise road lots, easement, parks and play grounds, open
spaces including the properties of the Republic of the Philippines that still appears to be taxable;
and the assessments of properties under court litigations, and under the CARP project which are
likewise included in the estimated collectibles. Updating and reconciliation by the City Assessor’s
Office is still ongoing as of report date.
(2) The payment of real property taxes which was mandatory in the previous years was not
anymore required in the CY 2018 renewal business permit renewal.
54
(3) The City could no longer collect the hospital fees and charges due from patients because these
were already covered under the Department of Health Medical Assistance Program (DOH-MAP),
further in the conduct of tax mapping, it was discovered that some sari- sari store owners did not
apply for business permit thinking that barangay clearance suffice the legality of their business
operation in the barangay.
In the early part of CY 2019 however, series of orientation were made to Barangay Officials
reiterating them to refrain from collecting whatever taxes, fees and charges not within the bounds
of their taxing powers as provided for in the Local Government Code.
Note 33 - The difference between the final and actual amount of total Non-tax Revenue in the
amount of One Hundred Twelve Million Seven Hundred Ten Thousand One Hundred Two Pesos
& 71/100 (P112,710,102.71 were the unrealized revenue due to the following:
1. Failure to use the preceding year’s total gross revenue of business establishments as basis
for declarations of gross sales/receipts. The Bureau of Local Government Finance’s
(BLGF) has issued Memorandum Circular No. 01-001-2017, with prohibition found in
“item B-4’ of the same, which states: ‘The automatic application of additional 10%-15%
increase in the previous year’s gross receipts as basis for local business taxes… shall not
be practiced. These business establishments however were tagged for examination of
books of accounts to capture their actual revenues in prior year, however were not fully
covered due to lack of personnel, this resulted in the lowering of CY 2018 collections; and
2. It was observed further by the City Internal Audit Services (IAS) that, due to Circular
Letter No. CL 2017-079 of BLGF amending guidelines governing the imposition of local
business taxes, which includes service charges for financial institutions, were no longer
taxable, and this likewise resulted in collection deficiencies in CY 2018.
55
Note 34 - Reconciliation between actual amounts on a comparable basis as presented and in the
Statement of Financial Performance for the year ended December 31, 2018.
Personal Financial Capital
Particulars Income MOOE
Services Expenses Outlay
ComparisonStatement of Budget and Actual 1,165,789,465 395,817,292 579,882,560 17,459,209 172,630,403
EntityDifferences
Basis of Differences
Income not considered budgetaryitems
Non-Cashincome - - - - -
GainonSale of Assets - - - - -
Receipts not considered as income
Sale of Capital Assets - - - - -
Borrowings - - - - -
Non-cashexpenses:
Depreciation - - 134,470,407 - -
Amortization-Intangible Assets - - - - -
Impairment Loss - - - - -
Losses - - - - -
Debt Service(LoanAmortization,
Refirement of Debt Instruments) - - - -
Interest Expenses capitalized - - - -
Capital Expenditures - - - - (172,630,403)
TimingDifferences:
Prepayments of prior year charged to
current operation 1,766,432
Prepayments charged to current
appropriations - - (1,713,094) - -
Unconsumed Inventories charged to
current appropriations - - (4,902,473) - -
Consumed Inventories and deferred
charges charged to prior appropriations - - 2,052,948 - -
Amount for reconciliation - 2,796,186
Per Statement of Financial Performance 1,165,789,465 395,817,292 714,352,967 17,459,209 -
56
Note 35 – The LDRRMF as of December 31, 2018 represents the amount set aside by the LGU to
support its disaster risk reduction management activities pursuant to R.A. No. 10121 otherwise
known as the “Philippine Disaster Risk Reduction and Management Act of 2010.” The amount
available and utilized during the year totaled P117,410,296.85 and P 34,280,265.86 respectively,
broken down as follows:
Available Utilized Balance
Current Year Appropriation:
Quick Response Fund (QRF) 20,224,721.34 20,224,721.34
MitigationFund (MF)
MOOE 25,191,016.46 18,207,488.66 6,983,527.80
Capital Outlay 22,000,000.00 6,982,660.00 15,017,340.00
Total MF 47,191,016.46 25,190,148.66 22,000,867.80
Total 67,415,737.80 25,190,148.66 42,225,589.14
ContinuingAppropriation:
CY2017 4,819,127.46 3,963,462.20 855,665.26
Special Trust Fund:
CY2014 - - -
CY2015 2,426,381.56 2,426,381.56
CY2016 19,751,834.51 2,700,273.44 17,051,561.07
CY2017 21,997,215.52 21,997,215.52
FATyphoonUrduja 1,000,000.00 1,000,000.00
Total 45,175,431.59 5,126,655.00 40,048,776.59
Total 117,410,296.85 34,280,265.86 83,130,030.99
Note 35-1 Year-end balance of current appropriation’s unutilized Quick Response Fund and Mitigation
fund as of December 31, 2018 with aggregate amount of P 27,208,249.14, were transferred to an
exclusive account under Trust Fund the following year. This is in compliance with Section 6.1.1 of
COA Circular 2012-002 dated September 12, 2012.
57

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Republic of the Philippines

City Government of Tacloban

Notes to Consolidated Financial Statements

In an extensive survey conducted by the National Competitive Council of the Philippines in

1. Poverty Alleviation – Wholistic and responsive programs for combating poverty.

3.1 Basis of accounting

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

 Public utilities and other economic enterprises;

3.3 Revenue recognition

Revenue from non-exchange transactions

Taxes, fees and fines

Transfers from other government entities

Revenue from exchange transactions

3.4 Investment Property

Investment property acquired through a non-exchange transaction is measured at its fair

3.5 Property, Plant and Equipment

 Buildings – those that are predominantly

 Leasehold Improvements (Note 1)

 Office, Equipment, Furniture and Fixtures

 Machineries and Equipment

 Other Property, Plant and Equipment 5

3.6 Impairment of non-financial assets

Impairment of cash-generating assets

Impairment losses of continuing operations, including impairment on inventories, are

Impairment of non-cash generating assets

3.7 Financial instruments

Initial recognition and measurement

The subsequent measurement of financial assets depends on their classification.

Financial assets at fair value through surplus or deficit

Loans and receivables

Non-derivative financial assets with fixed or determinable payments and fixed

Impairment of financial assets

a) The debtors or a group of debtors are experiencing significant financial

b) Default or delinquency in interest or principal payments;

c) The probability that debtors will enter bankruptcy or the financial

Financial assets carried at amortized cost

Initial recognition and measurement

The measurement of financial liabilities depends on their classification.

Financial liabilities at fair value through surplus or deficit

Loans and borrowings

Amortized cost is calculated by taking into account any discount or premium on

A financial liability is derecognized when the obligation under the liability is

Offsetting of financial instruments

Fair value of financial instruments

3.8 Cash and cash equivalents

The expense relating to any provision is presented in the Statement of Financial

3.11 Nature and purpose of reserves

Changes in accounting policies and estimates

The LGU recognizes the effect of changes in accounting estimates prospectively by

3.12 Foreign currency transactions

3.13 Borrowing costs

3.14 Related parties

3.15 Service concession arrangements

3.16 Budget information

Operating lease commitments – LGU as lessor

Estimates and assumptions

Useful lives and residual lives

b) The nature of the asset, its susceptibility and adaptability to changes in

c) The nature of the processes in which the asset is deployed; and

Impairment of non-financial assets – cash generating assets

The recoverable amounts of cash-generating units and individual assets have to be

Impairment of non-financial assets – non-cash generating assets

Fair value estimation – financial instruments