Annex 41

Republic of the Philippines

(SK of Barangay, City/Municipality, Province)

Notes to Financial Statements
For the period ended _______________, 20___

Notes to the Financial Statements

1. Accounting Policies:

Basis of preparation

The financial statements of the SK of Barangay ___________________ have been prepared in cash basis
substantially aligned to Cash Basis IPSAS, “Financial Reporting under the Cash Basis of Accounting.”

The accounting policies have been applied consistently throughout the period.

Reporting Agency/Entity

The financial statements are for SK of Barangay _____________________, located in geographical location. It’s
office is located at official address in the barangay.

The financial statements encompass the SK of Barangay _______________________________ as specified in

Republic Act No. 10742, otherwise known as the “Sangguniang Kabataan Reform Act of 2015.” The SK is
composed of a chairperson and seven (7) members were be elected by the KK on ________________.

The SK chairperson with the concurrence of the majority of all the SK members, appointed from among the
members of the KK, the secretary and the treasurer

The principal activity of the SK of Barangay ___________________ is to provide services to its constituents.

The SK of Barangay _________________________ controls its own bank account. The approved budget and
other cash receipts are deposited into its bank accounts.

Payments by other government agencies/entities

The SK of Barangay _______________________________ benefits from payments made by Barangay

__________________________ pertaining to honoraria of the SK Chairperson ________________ amounting to
____________.

Reporting currency

The reporting currency is Philippine peso.

2. Cash

Cash comprises cash on hand and demand deposits and cash equivalents. Demand deposits comprise balances
with banks.

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The approved budgets of the SK of Barangay ________________________________ are deposited in the

(Agency’s/Entity’s bank) ___________________ under Current Account No. ________ and are controlled by
the agency/entity.

Receipts from donations are deposited in SK of Barangay _____________________ bank account.

3. Authorization Date

The financial statements were authorized for issue on __________________. (Note: date the SK Chairperson
signed on the approval portion of the FS)

4. Property and equipment

The SK of Barangay ______________________________ maintains records of the following property and

equipment amounting to _______________as of December 31, _______stated at historical cost:

Account Amount

5. Liabilities

The SK of Barangay _______________________ have outstanding payables amounting to ____________.

Details are as follows:

Creditor Nature Amount Due date

Supplier ABC Goods delivered
Agency X Seminar fees

6. Receipt of Goods and Services (sample narrative only)

During 20__, a severe earthquake occurred in _____ (region) inflicting serious damage to government property
and private property, and significant loss of life. Government agencies and other private institutions donated
goods and equipment to assist in locating and rescuing individuals trapped in the rubble. In addition, specialized
medical teams trained in trauma treatment together with medical equipment, were flown into the ____ (region).
Temporary shelter and food were also supplied.

The value of goods and services received has been estimated at Php_________. The value of the emergency
assistance provided has been determined based on cost estimates provided by these agencies/institutions
involved because local prices for equivalent goods or services were not available.

_________ tons of rice was received as food aid during the year. It has been valued at Php __________ currency
units which represents the wholesale price of similar rice in domestic wholesale markets.

Goods and services received during the year were not recorded in the Statement of Cash Receipts and Payments,
which reflects only cash received (directly or indirectly) or paid by the SK. Goods and services-in-kind were
received as part of the emergency assistance and are reflected in this note.

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