Republic of the Philippines Repartment of information and Communications Technolapy NATIONAL TELECOMMUNICATIONS COMMISSIOI REGIONAL OFF! Vill ‘Army Road, 6500 Tacloban City 10. (053) 3258019 eM STATEMENT OF MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL STATEMENTS The management of National Telecommunications Commission Region VIII is responsible for all information and representations contained in the accompanying Statement of Financial Position as at December 31, 2019 and the related Statement of Financial Performance, Statement of Cash Flows, Statement of Comparison of Budget and Actual Amounts, Statement of Changes in Net Assets/Equity and the Notes to Financial Statements for the year then ended. The financial statements have been prepared in conformity with the Philippine Public Sector Accounting Standards and generally accepted state accounting principles, and reflect amounts that are based on the best estimates and informed judgment of management with an appropriate consideration to materiality In this regard, management maintains a system of accounting and reporting which provides for the necessary internal controls to ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition and liabilities are recognized. Z MARR RE meaneo, CPA ENGR. SAMUEL A. YOUNG, CESO V Chi live Officer Regional Director Date Signed: January 29, 2020 Date Signed: January 29, 2020NATIONAL TELECOMMUNICATIONS COMMISSION REGION Vili ‘STATEMENT OF FINANCIAL POSITION GENERAL FUND AS OF DECEMBER 31, 2019 31-Dec 31-Dec Note 2019 2018 ASSETS (As Restated) Current Assets Cash and Cash Equivalents 33,4 150,035.12 143,671.12 Inventories 34,5 719,595.40 787,338.18 Other Current Assets 74 63,818.74 64,883.18, Total Current Assets 933,449.26 995,892.46 Non-Current Assets Property, Plant and Equipment 35,6 12,651,480.92 760,697.56 Total Non-Current Assets 12,651 480.92 Total Assets 13,584,930.18 10,756,590.04 LIABILITIES Current Liabilities Financial Liabilities 8 29.99 257,447.85 Inter-Agency Payables 9 142,245.15 96,631.74 Other Payables 10,20 8,280.00 4,740.00 Total Current Liabilities 358,789.59 Total Liabilities 358,789.59 Total Assets less Total 10,397,800.45 NET ASSETS/EQUITY Accumulated Surplus/(Deficit) 6 Total Net Assets/Equity 40,397,800.45, 10,387, 800.45 This statement should be read in conjunction with the accompanying notes.NATIONAL TELECOMMUNICATIONS COMMISSION REGION Vi DETAILED STATEMENT OF FINANCIAL POSITION GENERAL FUND AS OF DECEMBER 31, 2019, ASSETS. Current Assets Ccash and Cash Equivalents (cash on Hand Cash-Collecting Officers TreasuryiAgency Cash Accounts (Cash-TreasuryiAgency Deposit, Trust Inventories Inventory Held for Consumetion (fflce Supplies Inventory ‘Accountable Forms, Plates and Stekers inventory us, Oi and Lubricants inventory (ther Supplies and Mates inventory Semi-Expendable Machinery and Eauipment ‘Semi-Expandable Information & Communications Technology Equipment Semi-Expendable Office Equipment SemiExpendadle Other Machinery and Equipment ‘Semi-xpendable Furiture, Fitures and Books ‘Sem:-Expendable Furniture and Futures ‘other Current Assets Prepayments Prepaid Insurance “Total Current Assets Non-Current Aseote Property, Plant and Equipment Builings and Other Structures Buiaings ‘Accumulated Deprecoton.Suaings Net Vale Machinery and Equipment Ofce Equipment ‘Accumulated Depreciaton-Offce Equipment Net Vale Information and Communication Technology Equipment ‘Accumulated Deprecaton-Intormaton and Communcation Technology Equipment Net Value 31Dee 150,035.12 s1.97400 Th07A 00 139,991.22 138,981.12 719,595.40, 672:306.40 348,080.83, 195,526.79 7,680.20 121,107.30 46,700.00 300.00 +1.400.00 30,500.00, 30,500.00, 63,518.74 3.91874 6381674 ae 12,651,480.02 4,108,175.78 7,781,556 49 (91509, 300.77 5,496,0510 5281.00 351,380.17) 325,090.09, ‘316,508.88 (662,346.48) 255 165.56 31000 2018 suse7s2 4710.00 4710.00 139,991.12 138,901.12 787:338.18 602 368.08 '376,095 50 174,482 73, 2,560.18 198320.77 1927020, 72,79820, 6,480.00, 75,580.00, 75,690.00 9,760,607 55, 4,337,508 34, 7,781 556 48 3,443,058 15) 4,397,596 94 3,473,629 62 '475.291.00 107,934 57) 357,356.45 747.989 84 (499,288.58) areNATIONAL TELECOMMUNICATIONS COMMISSION REGION Vill DETAILED STATEMENT OF FINANCIAL POSITION GENERAL FUND AS OF DECEMBER 31, 2019 3tDee 31-Dee 2019 pry (As Restated) ‘communication Equipment 5.928,500.00 2.828,500.00 ‘Accumulated Depreciation. Communcation Equipment (472 102-42) 997,512.50) Net value 7,856,297 58 2,720,887 50 ‘Other Machinery and Equipment 150,180.33 159 150 53, Accumulated Depreciaisn-Other Mechinery and Equcment 95,573.00) Net Valve Transportation Equipment 2,930,301.27 Motor Vehicles 3 755,989.00 72,455,030 00 ‘Accumulated Depraciation-Motor Vehicles 816,637 73) 542,156 85) Net Valve 2.939,30127, 7.913.782.15 Furnture, Fiures ang Books 25,004.77 29,887.25 Furniture and Foaures| 78,636.00 78,635.00, ‘Accumulated Osprecetion-Furnture and Fixtures 53,700.23) (49.047 75 et Value 20,587 25, Tota! Non-Curtent Assets 9,760,607.55 TOTAL ASSETS 13,584,930.18 10,756,500.04 ABILITIES: Lsbitties Current Liabilities Financial Liabilities 299 257.447 85 Peyables 2899 257 447 85) ‘accounts Payeble - 321563 ue to Officers and Employees 2099 254290.22 Inter-Agency Payables sa2248.415, 96,631.74 Due to BIR 742,205 15 551.74 Other Payables 3,220.00 (Otner Payabies 8 280.00 4770.00 Total Current Liabilities 150,555.14 350,700.50 Total Liabilities 150,555.14, 350,700.59 Total Assets loss Total Liab 43,434,375.04 Net AssotstEquity Equity ‘Government Equity 13.434375.04 40,207,20045, ‘Accumulated SurplusiDefict) 13,434,375 04 10,387, 800.45 Total Net Assets/Equity 13,434:375.06 40,387,200.45NATIONAL TELECOMMUNICATIONS COMMISSION REGION Vill ‘STATEMENT OF FINANCIAL PERFORMANCE GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2019 Revenue Service and Business Income Total Revenue Less: Current Operating Expenses Personnel Services Maintenance and Other Operating Expenses Non-Cash Expenses Total Current Operating Expenses Surplus/(Deficit) from Current Operations Net Financial Assistance/Subsidy Surplus/(Deficit) for the period Note 14,172, 184 12 13 614 15 31-Dec 2019 65,993,742.71 55.993,742.74 12,979,377.26 3,611,027.57 877,736.64 17,488,141.47 48,525,601.24 20,501,922.06 .$9,027,523.30 31-Dec 2018 (As Restated) 51,150,854.60 51,150,854.60 11,974,339.14 3,046,983,12 707,337.67 4 93 35,422,194.67 16,648,825.52 -52,071,020.19 This statement should be read in conjunction with the accompanying notes.NATIONAL TELECOMMUNICATIONS COMMISSION REGION Vil DETAILED STATEMENT OF FINANCIAL PERFORMANCE GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2018 31-Dec 31-Dec 2019 2018 (As Restated) Revenue ‘Service and Business Income Service income Permit Fees 1.018.762.00 920,603.00, Registration Fees 358,400.00, 120:560.00 Clearance and Certfcation Fees 20.00 4,085.00 Ucensing Fees 7.123,31867 5,862,888.40 ‘Supervision and Regulation Enforcement Fees 848.238.69, ‘Spectrum Usage Fees 51.674,042.40 —-38,531,598.90 Inspection Fees 4610.180.00 4.172,420.00 Processing Fees 521,346.00 421,580.00 Fines and Penaiies-Servce Income 616,858.64 521,138.11 Other Service Income 73,718.00 147,732.50 Total Service Income 993,742.71 __61,180,856.60 Total Revenue 86995,74271 __51,180.854.60 ‘Less: Current Operating Expenses, Personnel Services Salaries and Wages Solaris and Wages-Regular 3,415,976.84 7,890,086.10 Total Salaries and Wages 2.415.976.84 7,890,088.10 Other Compensation Personal Economie Relief Allowance (PERA) 479,383.64 480,000.00 Representation Allowance (RA) 222,000.00 222,000.00 “Transportation Allowance (TA) 222,000.00, 222,000.00, Clothing Unitorm Allowance 120,000.00, 120,000.00 Year End Bonus 4,402,974.00 11278,597.00 cash Gin 100,000.00 100,000.00 (Other Bonuses end Allowances 675,000.00 {510,000.00 Total Other Compensation 3,221,897 64 3,033,597.00 Personnel Benefit Contributions Retirement and Life Insurance Premiums 1,008,996.56 921,998.52 PagIBIG Contrbutions 24,000.00 24,000.00 PhiHleath Contributions 83,568.22 80.5618.60 Employees Compensation Insurance Premiums 24,000.00. 24,100.82 ‘otal Personnel Benefit Contributions 7161,562.78 71050,656.04 ‘Other Personnel Benefits Other Personnel Benefits 200,000.00 ‘otal Other Personnel Benefits 200,000.00, = Total Personnel Services 429793726 __11874,339.14NATIONAL TELECOMMUNICATIONS COMMISSION REGION Vil DETAILED STATEMENT OF FINANCIAL PERFORMANCE GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2019 31-Dee Maintenance and Other Operating Expenses ‘Traveling Expenses. ‘Traveling Expenses-Local 03,998.45 Total Traveling Expenses 803,998.45 Training and Scholarship Expenses Training Expenses 319,073.72 ‘Total Training and Scholarship Expenses 319,073.72 ‘Supplies and Materials Expenses Office Supplies Expenses 125,903.83, ‘Accountable Forme Expenses 138,801.19, Fuel, Ol and Lubricants Expenses 8787215 (Other Supplies and Materials Expenses 99,777.13 ‘Semi-Expendable Machinery and Equipment Expenses 187,897.50 ‘Semi-Expendable-Furiture, Fature and Books. 129,228.00 Total Supplies and Materials Expenses 736,480.60 Unity Expenses. Water Expenses 14,856.25 Electity Expenses 213,086.70 Total Utility Expenses 227,751.96 Communication Expenses Postage end Courier Services 2381820, Telephone Expenses 24,925.98 Intemet Subecrinson Expenses: 15,576.13 Total Communication Expenses 184,190.31 Confidential, Intelligence and Extraordinary Expenses Extraordinary and Miscelaneous Expenses 93,600.00 Total Confidential, intelligence and Extraordinary Expenses $3,500.00 Professional Services (ther Professional Services 30,000.00 Total Professional Services 30,000.00 General Services Janitorial Services 3,800.00 Security Services 512,535.12 Total General Services 516,335.12, Repairs and Maintenance Repairs and Maintenance-Builings and Other Structures 294,222.10 Repairs and Maintenance-Machinery and Equipment 9142051 Repairs and Maintenance-Transportation Equipment 90.493.57 Repairs and Maintenance-Furnture and Fotures 450.00 Total Repairs and Maintenance 476,586.18 31-Dee 018 560,388.55, 569,388.55, 225,040.68, 225,040.68, 130,404.00 122,176.58 92,723.08 197,158.33 741858.00 435.255.00, 682,574.98 9.835.869 218,756.97 228,590.85 19.482.36 9153881 71,146.50 182,167.67 98,000.00 38,000.00 200.00 200-00 5,800.00 475,023.60 480,823.60, 273,248.85 32.575.28 19,895.43NATIONAL TELECOMMUNICATIONS COMMISSION REGION Vil DETAILED STATEMENT OF FINANCIAL PERFORMANCE GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2019 ‘Taxes, Insurance Premiums and Other Fees. “Taxes, Duties and Licenses Fideity Sond Premiums Insurance Expenses Total Taxes, Insurance Premiums and Other Fees Other Maintenance and Operating Expenses Printing and Publication Expenses Representation Expences RentlLease Expenses Subscripfon Expenses Other General Services: (Other Naintenance and Operating Expenses Total Other Maintenance and Other Operating Expenses: Total Maintenance and Other Operating Expenses Non-Cash Expenses Depreciation Depreciation-Buildngs and Other Structures Depreciaion-Machinery and Equipment epreciaton- Transportation Equipment Depreciation-Furnture, Fixtures and Books Total Depreciation Impairment Loss. Impairment Loss-Property, Plant and Equipment Total Impairment Loss. Total Non-Cash Expenses Current Operating Expenses Surplus (Deficit) from Current Operations. Financial Assistance/Subsidy from NGAs, LGUs, GOCCs: ‘Subsidy For National Government Subsidy trom Central Office ‘otal Financial Assistance/Subsidy trom NGAs, LGUs, GOCCs Net Financial AssistancelSubsidy ‘Surplus (Deficit) forthe period 31-Dee 2019 436082 53,280.00 110,468.13 168,078.75 3122749 11,200.00 4175.00 2,490.00, 5,900.00, 54,992.49 3,611,027.57 149,422.56, 450,080.72 274,480.88 375248 7,738.64 arr 17,468,14147 48,525,601.24 20,347,476.81 154,445.25, '20,501,922.08 20,501,922.06 69,027,625.30 31-Dee 2018 As Restated) 73186 50,250.00 92,312.03 743,893.59, 3,000.00 eaeti.ei 12,000.00 4275.00 12,896.50 00,782.94 3,046,983.12 149,422.56 310,288.89, 23331420, 6,602.52 699,628.17, 7.70950 7,708.50, 707.337 67 15,728.589.93, 35,422,184.67 16,501,957.23, 148,868.29, 16,648 825.52 16,548,825.52 52,074,020.19,NATIONAL TELECOMMUNICATIONS COMMISSION REGION Vill STATEMENT OF CHANGES IN NET ASSETS/EQUITY GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2019 Accumulated Surplus/ (Deficit) 31-Dec 31-Dec Note 2019 2018 (As Restated) Balance at January 4 as previously reported 10,400,753.21 9,483,578.04 Addi(Deduct): Corretion of prior period errors 16 (2,952.76) oI Other agjustments —— = Restated balance 10,397,800.45 Addi(Deduct): Changes in Net Assets/Equity for the Calendar Year Surplus/(Deficit) for the period 69,027,523.30 52.071,020.19. Adjustment of net revenue recognized directly in net assets/equity * 16 (65,990,948.71) —_(51,156,797.78) Balance at December 31 13,434,375.04_ __10,387,800.45 “t= Net revenue depesited wih the National Tressuy (revenue including const vcve recep of income by Foreign Based Agencies and income remited by agencies thru TRA) This statement shouid be read in conjunction with the accompanying notes.NATIONAL TELECOMMUNICATIONS COMMISSION REGION Vil STATEMENT OF CASH FLOWS GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2019 31-Dec 31-Dec Note 2019 2018 (As Restated) Cash Flows From Operating Activities Cash Inflows Receipt of Notice of Cash Allocation 174 20,656,000.00 _16,266,000.00 Collection of income/Revenues 172 65,993,74271 _51,150,854.60 Other Receipts 173 293,100.00 271,953.18 Total Cash Inflows 36,942,842.71_ _ 67,688,807.78 Cash Outflows Remittance to National Treasury 174 65,990,948.71 _51,186,797.78 Payment of Expenses 175 10,284,718.94 9,428,484.15, Purchase of Inventories 176 410,248.77 402,499.24 Grant of Cash Advances 77 627,848.40 299,366.50 Prepayments 178 180,703.69 189,768.43, Payment of Accounts Payable 257,447.85 Remittance of Personnel Benefit Contributions and Mandatory Deductions 179 3,082,350.34 -3,563,522.22 Other Disbursements 17.10 289,530.00 333,273.20 Reversal of Unutiized NCA 1714 1,496,050.01 738,370.51 Total Cash Outflows 83,269,843.71_ _ 66,082,082.03 Net Cash Provided by (Used in) Operating Activities 17.13 3,572,999.00_ __1,608,725.75 Cash Flows from Investing Activities Cash Outflows Purchase/Construction of Property, Plant and Equipment 17.12 566,635.00 __1,873,988.95 Total Cash Outflows 586,635,00_ __1,675,988,95 Nt Cash Provided by (Used in) Investing Activities. (3,586,635.00) _(1,673,988.95) Increase (Decrease) in Cash and Cash Equivalents 6,364.00 (67,263.20) Cash and Cash Equivalents, January 4 sage7i42 __ 210,934.32 ‘Cash and Cash Equivalents, December 31 150,035.12 143,671.12 This statemen’ should be read in conjunction with the accompanying Nowe.NATIONAL TELECOMMUNICATIONS COMMISSION ‘STATEMENT OF CASH FLOWS. GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2019 (ash Flows From Operating Activities cath inflows Receipt f Notice of Cash Allocation Reoept of Notice of Cash Allocation Collation of Incoma/Revenues Collection of service and business income otner Recaints ‘Other misesianeous recelpts Total Cash inlows Cash Outfiows Remittance te National Treasury Payment of Expenses Payment of personnel services Payment of maintenance ang other operating expenses Purchase of Inventories Purchase of inventory held for consumption Purchase of semi-expendables Geant of Cash Asvances ‘Advances to officers and employees Prepeyments Prepaid Registration Prepaid insurance ‘other Prepayments Payments of Accounts Payable Payment to External Creditors Payment of Due to Officers and Employees Remittance of Personnel Benefit Contributions and Mandatory Deductions Remitance to SIS Remittance to HOMF emitance to Philestih Remittance of other payables (STEMPCI-Coep) (ther Disbursements Other eibursements Reversal of Unutiized NCA Total Cash Outtows Not Cash Provided by (Used in) Operating Activities cash Flows from Investing Activities Cosh Outfows PurchaselConstructon of Property, Plant and Equipment Purchase of machinery and equipment Purchase of transportation equipment Total Cash Outflows Net Cash Provided By (Used In Investing Activities Increase (Decrese) in Cash and Cash Equivalents ‘cash and Cash Equivalents, January 1 Cath and Cash Equivalents, December 31 10 31-Dee 31-Dee 2019 2018 20,856,000.00_ 16,286,000 00 70,656,000.00 —16,286,000.00 95,909,74271__51,150,05460 eS O03. T2TI —B1.160.85460 289,100.00 271,953.18 7283, 100:00 271 955-18 ear LTT 65,000.048.71 —§1,156,707.78 sozea7igee _9,420,484.15 Biases 745207079 210537310 1, 975.81402 410.245 77 402.490 24 "183,396 40 21 367 69 22847 37 198,191 55 627,248.40, 200,266 50, 527848 40 225,365 50 490,703.69 150,760.43 54,100.00, “4400.00, 109,403.69, 11472843 7,200.00 3,940.00 257.447 05 P 327563 254.202.22 395235034 _3,59,50222, ‘Bota7ar Ta 2.862.148 60, 541,394.80, 465,901.01 167.1235.98, 158,687.65 100,071 82 86,784.76 280,520.00 32327320 "268,530.00 398,27520 +,496,050.01 738,370 54 e9,300,043.71 __66,082,002.03, 3.572,990.00 _1,606,725.75. 3.566.635.00 __1,673,988.06 2306.277 85 —1673,988 95 41230387 18. : —__3888.835.00__1.673,068.95 6,366.00 (6726320) sag71.12 210,094.32 150,035.12, asg7112NATIONAL TELECOMMUNICATIONS COMMISSION STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNT GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2019 Budgeted Amounts Actual Amounts | Difference Final Particulars onComparable | Budget and Basis ‘Actual Original Final Notes RECEIPTS Services and Business Income 14, 18.1 31,687,172.76 31,687,172.76 65,993,742.71 _(34,306,569.95) Total Receipts 31,687,172.76 __31,687,172.76 ___65,993,742.71 __ (34,306,569.96) PAYMENTS, Personnel Services 182 42,114,000.00 13,000,000.00 —12,979,347.27 20,862.73 Maintenance and Otner Operating Expenses 182 3,883,000.00 _3,383,000.00 3,265,095.14 117,904.86 Capital Outiay 18.2 3,800,000.00 _3,800,000.00 3,798,720.00 4,280.00 Maintenance and Other Operating Expenses-Continuing 99,856.00 99,866.00 99,627.01 228.99 Remittance to Bureau of Treasury 174 5 : 65,990,948.71 _(65,990,948.71) Total Payments 19,896,856.00 __20,282,856.00 __86,133,738.13 __(65,850,882.13) NET RECEIPTS/PAYMENTS 11,790,316.76 __11,404,346.76 _(20,139,995.42) __31,544,312.18 This statement should be read in conjunction with the accompanying notes.National Telecommunications Commission Regional Office No. VIIL NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 1, General Information/Agency Profile The financial statements of National Telecommunications Commission Region VIII (“Agency”) were authorized for issue on January 29, 2020 as shown in the Statement of Management Responsibility for Financial Statements signed by Engr. Samuel A. Young, CESO V and Maria Luz A. Campo, CPA, Head of the Agency and Chief Administrative Officer, respectively The National Telecommunications Commission (NTC) was created by virtue of E.0. No. 546 dated July 23, 1979, This order integrated the Board of Communications and Telecommunications Control Bureau into a single entity for the purpose of effective and unified control and supervision of communications facilities and services. It is headed by a Commissioner and assisted by two Deputy Commissioners. Pursuant to E.O. No. 125 as amended by E.O. No. 125-A dated April 13, 1987, the NTC was attached to the Department of Transportation and Communications (DOTC.) ‘The Commission was transferred to the supervision of the Commission on Information and ‘Communications Technology (CICT) by virtue of E.O. No. 269 series of 2004, under the supervision of the Office of the President. A series of Executive Orders were issued transferring NTC to the DOTC, then back to CICT, until it was brought back under the supervision of the Office of the President. Last May 23, 2016, Republic Act No. 10844, otherwise known as the “Department of Information and Communications Technology Act of 2015, was signed into law. In accordance to the law, the NTC shall be an attached agency to the Department of Information and Communications Technology and shall continue to operate and function in accordance with its charters, laws or orders. With the passage of RA 7925 in 1995, otherwise known as the Public Telecommunications Policy Act of the Philippines, the Commission was tasked with the growth and development of telecommunications services, in line with the declaration of national policy on telecommunications under Section 4. ‘The NTC Regional Office VIII is under the direct supervision and control of the Commission It is responsible for the enforcement and implementation of telecommunications laws and other pertinent rules, decrees, letters of instructions and the rules and regulations promulgated, as well as policies and guidelines set by the Commission, governing the installation and operation of all telecommunications services ot stations, facilities, including radio systems and television broadcasting systems within the regional area. The Regional Office is headed by its Regional Director, Engr. Samuel A. Young, CESO V. As of December 31, 2019, he supervises nineteen (19) active personnel with the assistance of Engr, Wilfredo C. Zabala and Ms. Maria Luz A. Campo, CPA, head of operations and chief administrative officer, respectively. The Regional Office is located at Army Road, ‘Tacloban City. One Field Office is located at Maasin City, Southern Leyte. 2, Statement of Compliance and Basis of Preparation of Financial Statements ‘The financial statements have been prepared in accordance with and comply with the Philippine Public Sector Accounting Standards (PPSAS) issued by the Commission on Audit per COA Resolution No. 2014-003 dated January 24, 2014. 12National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 The financial statements have been prepared on the basis of historical cost, unless stated otherwise. The functional and reporting currency of the Agency is Philippine Pesos. The Statement of Cash Flows is prepared using the direct method. 3. Summary of Significant Accounting Policies 3.1 Basis of Accounting ‘The financial statements are prepared on an accrual basis in accordance with the Philippine Public Sector Accounting Standards (PPSAS). Under this method, all expenses are recognized when incurred and reported in the financial statements of the period to which they relate. Income is on cash basis where income is recognized and reported upon receipt of cash. 3.2 Adjustments, Restatements and Correction of Fundamental Errors Adjustments for changes in accounting policies and restatements to correct fundamental errors in prior years (PY) are made retrospectively to the extent practicable using the Accumulated Surplus/(Deficit) account. The effects of changes in accounting estimates and correction of errors affecting the current year’s operations are reflected using the current year’s accounts, 3.3 Cash and cash equivalents Cash and cash equivalents comprise cash on hand and trust receipts from insurance proceeds deposited to National Treasury. ‘The Petty Cash Fund is maintained under the Imprest System and all replenishments are directly charged to the expense account. 3.4 Inventories Inventory is measured at cost upon initial recognition. ‘The Agency uses the Weighted Average Method to assign cost of the inventories. Inventories are recognized as an expense when deployed for utilization or consumption in the ordinary course of operations of the Agency 3.5 Property, Plant and Equipment Recognition An item is recognized as property, plant, and equipment (PPE) if it meets the characteristics and recognition criteria as a PPE. The characteristics of PPE are as follows: * tangible items; © are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and 13National Telecommunications Commission Regional Office No. VIII \OTES TO FINANCIAL STATEMENTS, For the Year Ended December 31, 2019 ‘© ate expected to be used during more than one reporting period An item of PPE is recognized as an asset if ‘+ Its probable that future economic benefits or service potential associated with the item will flow to the entity; and ‘© The cost o fair value of the item can be measured reliably Measurement at Recognition An item recognized as property, plant, and equipment is measured at cost. Cost includes the following: © Its purchase price, including import duties and non-refundable purchase taxes, afier deducting trade discounts and rebates; © expenditure that is directly attributable to the acquisition of the items; and + initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired, or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. Measurement After Recognition After recognition, all property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. All other repair and maintenance costs are recognized as expense in surplus or deficit as incurred. Depreciation The Agency adopts the straight line method of depreciation using the Schedule of Estimated Useful Life of PPE prescribed by COA. Depreciation begins when it is available for use such as when it is in the location and condition necessary for it to be capable of operating as intended, It is computed for one month if the PPE is available for use on or before the 15th of the month. However if the PPE is available for use after the 15th of the month, depreciation starts in the succeeding month, The depreciation charge for each period is recognized as expense. 3.6 Changes in Accounting Policies and Estimates The Agency recognizes the effects of changes in accounting policy retrospectively. The effects of changes in accounting policy were applied prospectively if retrospective application is impractical 14National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 ‘The Agency recognizes the effects of changes in accounting estimates prospectively by including in surplus or deficit. ‘The Agency corrects material prior period errors retrospectively in the first set of financial statements authorized for issue after their discovery by: © Restating the comparative amounts for prior period(s) presented in which the error occurred; or ‘© If the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and net assets/equity for the earliest prior period presented 3.7 Budget Information ‘The annual budget is prepared on a cash basis and is published in the government website. A separate Statement of Comparison of Budget and Actual Amounts (SCBAA) was prepared since the budget and the financial statements were not prepared on comparable basis. The SCBAA was presented showing the original and final budget and the actual amounts on comparable basis to the budget 3.8 Events after the Reporting Date ‘There are no material non-adjusting events and transactions after the reporting date that would influence the opinion and decision of users taken on the basis of financial statements 3.9 Related Parties ‘The Agency 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 Ageney, or vice versa Members of key management were regarded as related parties and comprise the members of the Planning and Management Committee of the Agency such as: Regional Director of the Agency. 4, Cash and Cash Equivalents [ Accounts 2019 I 2018 Cash on Hand _ F 11,074.00 |B 4710.00 ‘Cash Treasury/ Agency Deposit Trust | 138,961.12 138,961.12 ‘Total Cash and Cash Equivalents P 150,035.12 P 143,671.12 | ‘The balance of Cash- Treasury/Agency Deposit Trust pertains to unutilized portion of trust receipts from insurance proceeds for damaged properties during the onslaught Super Typhoon Yolanda last November 8, 2013. Cash on hand pertains to unremitted collection of income and documentary stamp tax amounting to P2,794.00 and P8,280.00, respectively (See Notes 11, 18.1 and 20). 15National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 5 Inventories { Accounts L 2019 2018 | Office Supplies Inventory ~ Canying Amount, Beginning Balance Pp 376,996.30 | P 355,697.76 | Aaditions/ Acquisitions during the year 88,185.16 136,602.32, ___Expensed during the year except write-down (117,100.63) | (115,303.78) ‘Carrying Amount, Ending Balance z 348,080.83 | 6,996.30 | | Accountable Forms, Plates and Stickers Inventory [Carrying Amount, Beginning Balance Le 174,482.73 | 148,991.02 | Additions/Acquisitions during the year | 156,845.25 |” Expensed during the year exept write-down (135,801.19) (122,176.58) [Carrying Amount, Ending Balance | B 195,526.79 | 174482.73 Fuel, Oil and Lubricants Inventory |__ Carrying Amount, Beginning Balance i 2,560.18 |B 4,728.64 |__ Additions/ Acquisitions during the year 91,303.48 | 90,004.62, Expensed during the year except write-down | (86,183.27) | (2,173.08) |" Carrying Amount, Ending Balance P 7,680.39 | 2 2,560.18 [Other Supplies and Materials Inventory | T [7 Canying Amount, Beginning Balance PB 138,329.77 |B 164,397.21 [7 "‘Additions/Acquisitions during the year 13,440.00 | |” Expensed during the year except write-down (30,662.38) | (26,067.44) (> Carrying Amount, Ending Balance iG 121,107.39 |B 138,329.77 | [Semi-Expendable Information & T Communications Technology Equipment [ Canying Amount, Beginning Balance P 12,799.20 = | Additions/Acquisitions during the year 23,678.00 26,794.20 [7 Expensed during the year except write-down _| (81,177.20) (013,995.00) (Carrying Amount, Ending Balance e 5,300.00 |B 12,799.20 Semi-Expendable Office Equipment [” Canying Amount, Beginning Balance ie -[F El [__ Additions/Acquisitions during the year 112,996.80 50,939.00 | |__Expensed during the year except write-down (101,596.80) __60,939.00) | (7 Carrying Amount, Ending Balance Pe 11,400.00 | P Ell 16National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 ‘Semi-Expendable Other Machinery and T Equipment | 2019 2018 | [Carrying Amount, Beginning Balance ir 6,480.00 | ss | Additions/Acquisitions during the year i 11,493.50 13,104.00 Expensed during the year except write-down | __(17,973.50) | (6,624.00) [7 Carrying Amount, Ending Balance ie : 80.00 ‘Semi-Expendable Furniture, Fixtures and T pBooksEaae — [ Canying Amount, Beginning Balance Pp 75,690.00 |P___103,500.00 | TAdditions/Acquisitions during the year 84,039.00 107,445.00 Expensed during the year except write-down (129,229.00) (135,255.00) Carrying Amount, Ending Balance 75,690.00 The balances of inventories below were severely damaged by Super Typhoon Yolanda last November 8, 2013 Office Supplies Inventory 171,022.36 Accountable Forms Inventory 25,690.84 Other Supplies Inventory 46,129.95 Request and requirements for relief from accountability from these properties were already submitted to Commission on Audit per Memorandum 92-751 dated February 24, 1992. 6. Property, Plant and Equipment | : ' Furniture, | Buildings and | Machinery and | Transportation | | e ‘xtureand | TOTAL | Other Structures Equipment Equipment 2019 | ae Books Carrying Amount, | ] Beginning Balance |P__4.337,598.34 | P 3.479.679.82 | P 1,913,782.15 | P_29,687.25 | P_9,760,697.56 | Adgitions/ Acquisitions = | 2,468,520.00 | 1,300,000.00 = | 3,768,520.00 Total 337,598.34 | §,945,149.82 | _3.213,782.15 | 29,687.28 | 13,529,217.56 Depreciation (149,422.56) | (450,080.72) | (274,480.88) | _(3,752.48) |__ (877,736.64) Carrying Amount, December 31, 2019 | (As per Statement | of Financial Position) B__4gn.17578 | p 5.498.060.10 | p2,939,30127 | p_25.934.77 | P12,651.480.02National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMED For the Year Ended December 31, 2019 | ] ] ‘on | Furniture, | | | Buiingsand Oder | Machineryand | Transportation | Fumiture | Sinctures | Equi Equipment | 2018 (As Restated) | Eeaeer quipment Books _| Carrying Amount, 1 | | i Beginning Balance | P__4487,020.90 | P.2,028.885.16 | P 2,147,096.35 | P_36.280.77 | P.8,699,292.18 | Additions/Acquisitions | =| __1, 768,743.05 : =| 1, 768.743.05 | | Totat 4.487,020,.90 | 3.797.628.21 | 2,147,09635, 36,289.77 | 10.868,035.23 | | Derecognized - (7,709.50) - - (7,709.50) | Depreciation (149,422.56) | (310,288.89) | @35,31420) | __ (6,602.52) | (699,628.17), Carying Amount, | December 31, 2018 | | | sper Statement of Financial Position) | P_4,337,598:34 | p_3.479.629.82 | p_1,913,782.15 | p_29,68725 | P.9,760,697.56 | During the reporting period, the Agency acquired three (3) units of mobile phones and Multiband Network Scanning Receiver and Post Processing Tools amounting to 268,520.00 and 22,400,000.00, respectively. One unit of motor vehicle was also acquired during the year which amounted to P1,300,000.00. Pursuant to Volume I of Government Accounting Manual, tangible items below the capitalization of 15,000.00 shall be accounted as semi-expendable property. An extemal hard drive with a cost of 3,100.00 was erroneously recorded as PPE last 2018, The Agency reclassified the item to semi- expendable with a net carrying amount of P2,952.76, causing a restatement of PY Accumulated Surplus/(Deficit) (See Note 16). 7. Other Assets 7.1 Current Other Assets This account consists of unexpired portion of prepaid comprehensive insurance for Property Plant ‘and Equipment amounting to P63,818.74. 8. Financial Liabilities 8.1 Due to Officers and Employees ‘The amount refers to underpayment of salaries of one of the employees of the Ageney for the month of December 2019. 9. Inter-Agency Payables The Agency has unremitted Tax Remittance Advice (TRA) amounting to P 142,245.15 at the end of the reporting period. This amount consists of taxes withheld fiom salaries and wages and maintenance and other operating expenses incurred during the last month of the reporting year. The said amount will be remitted at the beginning of the ensuing year. 10, Other Payables The account refers to unremitted documentary stamp tax at the end of the reporting year. The same will be remitted immediately the following year (See Note 20), 18National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 11. Service and Business Income _ Particulars __| 2019 2018 ] Income ____ | P_ 65,993,742.71 |B __51,150,854.60 | | 1,015,762,00 | 920,603.00 | ‘Registration Fees — 358,400.00 20,560.00 Clearance and Certification Fees | 120,00 4,085.00 | [Licensing Fees | 7,123315,67 3,562,898.40 | [Supervision and Regulation Enforcement Fees =| 848,238.69 [Spectrum Usage Fees - '51,674,042.40 | __38,531,598.90 [Inspection Fees 4,610,180.00 4,172,420.00 [Processing Fees 521,346.00 421,580.00 [Fines and Penalties-Service Income 616,858.64 521,138.11 | Other Service Income 73,718.00 147,732.50 | Total Service Income P_65,993,742.71 [PB _ 51,150,854.60 Total collections remitted to National Treasury as of end of the reporting period amounted to P65,990,948,71, thus an unremitted of 2,794.00 (See Notes 17.2 and 17.4) 12, Personnel Services 12.1 Salaries and Wages [eases Particulars 2019 2018 Salaries and Wages-Regular PB 8,415.976.84 |B 7,890,086.10 ‘Total Salaries and Wages [P8,415,976.84 |B 7,890,086.10 Pursuant to National Budget Circular No. 575 dated March 25, 2019, the Agency implemented ‘the fourth tranche of modified salary schedule effective January 1, 2019. This caused a significant increase in salaries and wages. 12.2 Other Compensation Particulars 2019 [3018 Personal Economic Relief Allowance (PERA) | _ 479,863.64| P_ 480,000.00, Representation Allowance (RA) 222,000.00 | __ 227,000.00 | [Transportation Allowance (TA) | 222,000.00 | 222,000.00 [Clothing/Uniform Allowance | 120,000.00 | 120,000.00 ‘Year End Bonus 1,402,974.00 | 1,279,597.00 Cash Gift : 100,000.00 100,000.00 ‘Other Bonuses and Allowances 675,000.00 | 610,000.00 Total Other Compensation P_3,221,837.64 | 2 3,033,597.00 12.3 Personnel Benefit Contributions Particulars 2019 2018 ] Retirement and Life Insurance Premiums — P_ 1,009,994.56 |B 921.936.52 | PhifFiealth Contributions $3,568.22 80,618.60 | [Employees Compensation Insurance Premiums 24,000.00 24,100.92 | | Pag-IBIG Contributions 24,000.00 24,000.00 | ‘Total Personnel Benefit Contributions P_1,141,562.78 | P 1,050,656.04 19National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 12.4 Other Personnel Benefit Particulars 2019 2018 Other Personnel Benefits P_ 200,000.00 P - | Total Personnel Benefit Contributions | # 200,000.00 [2 200,000.00 | Administrative Order (AO) No, 19 dated December 2, 2019 authorizes the grant of a one- time Service Recognition Incentive (SRI) for FY2019 to each government employee an amount not exceeding 10,000.00. Pursuant to Budget Circular No. 2019-6 dated December 9, 2019, the Agency granted a total ‘of P200,000.00 for twenty (20) employees. 13, Maintenance and Other Operating Expenses ‘The Agency erroneously recorded as PPE a semi expendable item last 2018, This error affected the 2018 total Maintenance and Other Operating Expenses (See Note 16). 13.1 Traveling Expenses i Particulars a 2019 I 2018 [Traveling Expenses-Local 7 P_ 803,998.45 | P 369,388.56 Total Traveling Expenses P 803,998.45 | P 569,388.56 Executive Order No. 77 dated March 15, 2019 prescribes the new rules, regulations and rates of expenses and allowance for official travels of government personnel. The increase of travel rates is the primary cause of the increase in traveling expenses. 13.2 Training and Scholarship Expenses | Particulars 2019] —«2018 [_ Training Expenses | P_ 319,073.72 PB 225,040.68 Total Training and Scholarship Expenses |p 319,073.72 | P_225,040.68 13.3 Supplies and Materials Expenses 2018 I Particulars 2019 (As Restated) Office Supplies Expenses P 125,903.63 |P 130,404.00 [Accountable Forms Expenses 135,801.19 | 122,176.38 | Fuel, Oil and Lubricants Expenses 87,872.15 92,723.08 | Other Supplies and Materials Expenses | 99,777.13 137,158.33 | | Semi-Expendable Machinery and Equipment | |_ Expenses 157,897.50 74,658.00 Semi-Expendable-Furniture, Fixture and Books | 129,229.00 135,255.00 | Total Supplies and Materials Expenses P___736,480.60 | P 692,374.99 | Semi-Expendable Machinery and Equipment Expenses for PY2018 was restated from 71,558.00 to P74,658.00. The difference of P3,100.00 pertains to the cost of semi- expendable item purchased last 2018 which was erroneously recorded as PPE (See Note 16), 20National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 13.4 Utility Expenses [ Particulars L 2019 2018 ] Water Expenses P 14,656.25/ PB _ 9,835.89 Electricity Expenses [213,095.70 218,754.97 | ‘Total Utility Expenses 13.5 Communication Expenses [P227,751.95 [PB 228,590.86 Particulars 2019 2018 | [Postage and Courier Services P 23,618.20 P 19,482.36 | Telephone Expenses [34,935.98 | 91,538.81 Internet Subscription Expenses | "75.576.13 71,146.50 ‘Total Communication Expenses P 18413031 | P 182,167.67 13.6 Confidential, Intelligence and Extraordinary Expenses Particulars Extraordinary and Miscellaneous Expenses Total Confidential, Intelligence and Extraoi Expenses 13.7 Professional Services 2019 [2018 P_93,600.00 | 2 98,000.00 LB 93,600.00 | P_ 98,000.00 | Particulars 2019 2018 Other Professional Services P 30,000.00 / 2 200.00 | ‘Total Professional Services P 30,000.00 [PR __ 200.00 13.8 General Services [ Particulars 2019 [2018 Janitorial Services P 3,800.00 F 5,800.00 Security Services 312,535.12 | 475,023.60 Total Professional Services [B 516,335.12 | P 480,823.60 13.9 Repairs and Maintenance Particulars 2019 2018 — Repairs and Maintenance-Buildings and Other Structures _| Repairs and Maintenance-Machinery and Equipment Repairs and Maintenance-Transportation Equipment 294,222.10 | 273,249.55 91,420.51, 32,575.28 90,493.57 | _ 19,895.43 Repairs and Maintenance-Furniture and Fixtures — Total Repairs and Maintenance Expenses 450,00 | | P 476,586.18 | 325,720.26 13.10 Taxes, Insurance Premiums and Other Fees Particulars 2019 2018 | (Taxes, Duties and Licenses RP 4360.62 P_731.56 |_ Fidelity Bond Premiums 53,250.00 50,250.00 Insurance Expenses = 110,468.13 | 92,912.03 Total Taxes, Insurance Premiums and Other Fees | P__ 168,078.75 |P_143,893.59 | 21National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 13.11 Other Maintenance and Operating Expenses Particulars 2019 2018 Printing and Publication Expenses 2 =| 3,000.00 [Representation Expenses [31,227.49 68,611.41 Rent/Lease Expenses [11,200.00 12,000.00 [Subscription Expenses — [4175.00 4,275.00 | ‘Other General Services [2,490.00 12,896.50 | ‘Other Maintenance and Operating Expenses 5,900.00 =| ‘Total Other Maintenance and Operating Expenses | P 54,992.49 | ® 100,782.91 14, Non-Cash Expenses 14.1 Depreciation | 2018 (As Particulars 2019 __|_Restated) | Depreciation-Buildings and Other Structures [P 149,422.56 | P 149,422.56 Depreciation-Machinery and Equipment 450,080.72 | 310,288.89 | [ Depreciation-Transportation Equipment 274,480.88 | 233,314.20 | | Depreciation-Furniture, Fixtures and Books 3,752.48 6,602.52 | ‘Total Depreciation [2 877,736.64 | P 699,628.17 ‘The Agency restated the amount of Depreciation Expense-Machinery and Equipment for PY2018 by B147.24. This pertains to depreciation expense erroneously charged against a semi expendable items costing P 3,100.00 (See Note 16). 15. Net Financi Assistance/Subsidy Financial Assistance/Subsidy from NGAs, LGUs, GOCCs — 2019 2018 ] Subsidy from National Government PR 20,347,476.81 | P 16,501,957.23 |__ Subsidy from Central Office 154,445.25, 146,868.29 | Total Financial Assistance/Subsidy from NGAs, LGUs, GOCCs P ___20,501,922.06 | P 16,648,825.52 | Subsidy from National Government consists of receipt of Notice of Cash Allocation (NCA) amounting to 220,656,000.00, reversal of unused NCA, P1,496,050,01 and remittance of taxes withheld B1, 187,526.82, Subsidy from Central Office pertains of Accountable Forms received during the year. 16. Supporting Information to the Statement of Net Assets/Equity Last 2018, the Agency erroneously recorded a semi-expendable item with a cost and carrying amount of P3,100,00 and 22,952.76, respectively. The financial statements of 2018 have been restated to correct this error as follows: (‘Effect on 2018 Financial Pos ‘Decrease in PPE Net Book Value Decrease in Accumulated Surplus/Deficit_| B 2,952.76 2National Telecommunications Commission Regional Office No. VIE NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 Effect on 2018 Financial Performance ‘Amount Increase in Current Operating Expenses 2,952.76 | Decrease in Surplus 2,952.76 | Effect on 2018 Cash Flow ‘Amount ‘Remarks Decrease Net Cash Provided by Operating | ‘Amount reflected in cash_| Activities RB 2,933.93 _| flow is net of tax Decrease Net Cash Used in Investing | (3,100.00 less TRA of j Activities PR 2,952.76 | P166,07) | Direct Adjustments to Net Assets/Equity The direct adjustment to Net Assets/Equity amounting to P65,990,948.71 pertains to the closing of the account Cash ~ Treasury/Agency Deposit, Regular to the Accumulated Surplus/(Deficit) account. 17, Supporting Information to the Statement of Cash Flows 17.1 Receipt of Notice of Cash Allocation NCA No. Date Amount (P) “0170772019 PB _4,319,000.00_ 0410572019 4,303,000.00_ (05/10/2019 175,000.00 0672172019 11,859,000,00 P20,656,000.00 17.2 Collection of Income/Revenues Particulars L 2019 I 2018 ] Service Income P_ 65,993,742.71 |B _51,150,854.60 | Permit Fees - 1,015,762.00 920,603.00 | Registration Fees 358,400.00 20,560.00 | ‘Clearance and C - 120.00 4,085.00 | | “Ticensing Fees ae 7,123,315.67 5,562,898.40 [Supervision and Regulation Enforcement Fees | zl 848,238.69 Spectrum Usage Fees | "51,674,082.40 38,531,598.90 Inspection Fees 4,610,180.00 4.172,420,00 | Processing Fees | 521,346.00 421,580.00 [Fines and Penalties-Service Income | — 616,858.64 521,138.11 Other Service Income ~_73,718.00 147,732.50 (Total Service Income P _65,993,742.71 | P51,150,854.60 | 17.3 Other Receipts Particulars I 2019 I 2018 ] | Collection of documentary stamp tax P__ 293,100.00 PB 266,010.00 Refunds of cash advances | = 5,943.18 | ‘Total Remittance to National Treasury P 293,100.00 | 271,953.18 23National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 17.4 Remittance to National Treasury _ Particulars [2019 T 2018 ] Collection of income/Revenues BP 65,990,948.71_P _51,150,854,60_ Refunds of cash advances a 3,943.18 | [Total Remittance to National Treasury =| P__(65,990,948.71 |B 51,156,797.78 | 17.5 Payment of Expenses Particulars 2019 2018 (As Restated) | Payment of personnel services | 8,179,345.84 |P7,452,670.13 | Payment of maintenance and other operating | | expenses 2,105,373.10 1,975.814.02, (Total Payment of Expenses : P_ 10,284,718.94 [PR 9,428,484.15 See Note 16. 17.6 Purchase of Inventories [ Particulars T 2019 T 2018 | Purchase of inventory held for consumption P 183,398.40 PB 214,367.69 Purchase of semi-expendables 226,847.37 188,131.55 Total Payment of Expenses IE 410,245.77 | P 402,499.24 | 17.7 Grant of Cash Advances Majority of this amount pertains to cash advances to officers and employees for official travels. Cash advance for FY2019 and PY2018 amounted to P627,848.40 and 299,366.50, respectively 17.8 Prepayments [ Particulars 2019 2018 ] | Prepaid Registration [e 64,100.00 |B 44,600.00 | [Prepaid Insurance 109,403.69 111,228.43 | [Other Prepayments 7,200.00 | 3,940.00 Total Prepayments [P180,703.69 [159,768.43 | 17.9 Remittance of Personnel Benefit Contributions and Mandatory Deductions Particulars — 2019 [2018 Remittance to GSIS P3,014,747.74 | P_2,852,148.80 Remittance to HDMF 541,394.80 465,901.01, (Remittance to PhilHealth 167,135.98 158,687.65 | | Remittance of other payables (STEMPCI-Coop) 109,071.82 86,784.76 | Total Remittance of Personnel Benefit | Contributions and Mandatory Deductions P__ 3,832,350.34 |B __3,563,522.22National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 17.10 Other Disbursements [ Particulars 2019 2018 ] [Remittance of documentary stamp tax [PR 289,530.00 | P 261,300.00 Remittance of TRA from trust receipts = 71,973.20 | ‘Total Other Disbursements P 289,530.00 | P __ 333,273.20) 17.11 Reversal of Unutilized NCA This refers to reversal of lapsed NCA amounting to P1,496,050.01 and 2738,370.51 in FY2019 and PY2018, respectively. 17.12 Purchase/Construction of Property, Plant and Equipment Particulars, 2019 2018 (As Restated) Purchase of communications equipment from | | general fund - |B 2,271,428.57 | P__1,619.339.28 Purchase of office equipment _ I =| __ 17,789.07 Purchase of Other Machinery and Equipment =| 36,860.60 | Purchase of transportation equipment from trust | receipts 1,230357.15 : Purchase of information and communication ] technolo; 64,849.28 3 (Total Payments for Purchase of PPE [P3,566,635.00 [P_1,673,988.95 See Note 16. 17.13 Reconci ion of Net Cash Flows from Operating Activities to Surplus/(Deficit) | 2018 ] Particulars | 2019 __|_(AsRestated) _| ‘Surplus/Deficit for the year |B 69,027,523.30 |B _52,071,020.19 | ‘Add/ (less) : Non-cash movements { Depreciation (877,736.64 699,628.17 Impairment Loss - = 7,709.50 Utilized Accountable Forms 133,401.19 122,068.58 | Software Licenses Received from Central Office | -| =| ‘Subsidy from Central Office (154,445.25) | _ (146,868.29) I Remittance to National Treasury [(65,990,948.71) | (51,156,797.78) (Increase)/Decrease Inventory : 88,786.84 14,776.16 | 1 (Increase)/Decrease in Other Current Assets 1,064.44 | (18,316.40) | | inerease/(Dectease) in Payable 208,234.45) 108,259.72 [Taxes withheld for purchase of PPE (201,885.00) | (94,754.10) | ‘Net Cash Flows from Operating Activities P_ 3,572,999.00 | _ 1,606,725.75 | See Note 16.National Telecommunications Commission Regional Office No. VIE NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 18. Supporting Information to the Statement of Comparison of Budget and Actual Amounts 18.1 Revenue/Income The revenue target amounting to P33,271,533.00 was on cash basis and consistent with the amounts in the Budget of Expenditures and Sources of Financing submitted to the DBM Actual collections of the Agency for FY2019 and PY2018 amounted to 265,993,742.71 and P51, 150,854.60, respectively (See Note 11). Total collections remitted to National Treasury as of end of the reporting period amounted to 265,990,948.71, thus an unremitted of P2,794.00, (See Note 4 and 16), 18.2 Payments ‘The total appropriation in the amount of P19,797,000.00 was prepared on cash basis and published as part of the 2019 General Appropriations Act. The final appropriations for FY 2019 amounting to P20,282,856.00 includes 299,856,00 as continuing appropriations. Actual disbursements for current year budget amounted to P12,979,347.27 for PS, P3,364,722.15 for MOOE and P3,798,720.00 for CO. The total actual disbursements of #20, 142,789.42 did not exceed the total final budget of P20,282,856.00. ‘The movement in budget was due to the reallocations/special/additional releases as detailed in Annex A. 19, Key Management Personnel ‘The Regional Director, who is appointed by the President, is the only key management personnel of the Agency. 19.1 Key Management Personnel Compensation ‘The aggregate remunerations of the Regional Director determined on a fulltime equivalent basis are: | Aggregate | L Particulars Remuneration | [Salaries and Wages 2 1,444,044.00 [Other Compensation 527,674.00 Personnel Benefit Contributions 181,222.78 __ Total iP 2,152,940.78 During the reporting period, the Regional Director received a total of P93,600.00 and 20,400.00 for Extraordinary and Miscellaneous Expenses and Mobile Allowance, respectively. 19.2 Remuneration and Compensation Provided to Close Family Members of Key Management Personnel During the reporting period, no remuneration or other benefits were provided by the agency to close family members of key management personnel, 26National Telecommunications Commission Regional Office No. VIII 20. NOTES TO FINANCIAL STATEMENTS For the Year Ended December 31, 2019 Documentary Stamps Collected and Remitted to the Bureau of Internal Revenue Pursuant to Section 61 of RA 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN), documentary stamp tax in the total of P293,100.00 were collected from the issuance of licenses, permits and certifications by the Agency during the reporting period. A total of P289,530.00 were remitted to the account of Bureau of Internal Revenue through the Land Bank of the Philippines. The amount of remittance includes an unremitted collection from prior year in the amount of P4,710.00. Hence, there is an unremitted of P8,280,00 at the close of FY2019, 27National Telecommunications Commission Regional Office No. VIII NOTES TO FINANCIAL STATEMENTS, For the Year Ended December 31, 2019 Annex A ABM/SARO/Sub- Dateof ABM | Fund Source ARO No. i _SARO/Sub-ARO_| _Reg/SPFiete. | _—PS__ Authorized FETED Appropriation March 26,2019 | 11700 Automatic Authorized SEE Appropriation March 26,2019 | ___|__1,007,000.00 . SARO—BMB-E-19- 0023399 | ;ARO—BMB-E-19- 0026796 FY2019 GAA RA 11260/Special December 6,2019_| Budget NGA (500,000.00) FY2019 GAA RA 11260 December 19, 2019 Regular Agency Fund (Sub- November 29, 2019 | ‘otal Allotments | 28 | Total Allotments 18,790,000.00