COA AAR 2022 - PCGG - Notes To Financial Statement

PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT
Notes to Financial Statements

For the Year Ended December 31, 2022
1. GENERAL INFORMATION/AGENCY PROFILE
The financial statements (FS) of the Presidential Commission on Good Government

(PCGG), herein referred to as the Commission, were authorized for issue on February
14, 2023 as shown in the Statement of Management Responsibility for Financial
Statements signed by Chairperson John A. Agbayani.
1.1 The Commission was created by Executive Order (EO) No. 1 issued on February
28, 1986, by Her Excellency, President Corazon C. Aquino.
Its role as a catalyst to enhance the recovery of ill-gotten wealth was strengthened
further by the issuance of EO No. 2 on March 12, 1986, EO No. 13 on April 23,
1986 and EO No. 14 on May 7, 1986.
1.2 The Commission was established to assist the President as regards to the
following matters:
a. The recovery of ill-gotten wealth accumulated during the Marcos regime.

For this purpose, “ill-gotten wealth” is defined as an asset, property,
business enterprise or material possession amassed by former President
Ferdinand E. Marcos, his immediate family, relatives and close associates,
whether located in the Philippines or abroad, directly or through nominees
or dummies, by taking undue advantage of their public office and/or using
their powers, authority, influence, connection or relationship;
b. The investigation of such cases of graft and corruption as the President may
assign to the Commission from time to time; and
c. The adoption of safeguards to ensure that the above practices shall not be
repeated in any manner under the new government, and the institution of
adequate measures to prevent the occurrence of corruption.
1.3 The Commission maintains four separate books of account for the following
funds:
a. Fund 101 which comprises the appropriation by the National Government

(NG) for its general administration and support services.
b. Fund 151 which comprises the appropriation for administration of assets as

provided under its Special Provision No. 1 in the General Appropriations
Act (GAA).
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c. Fund 158 which comprises monies it recovered from the sale of ill-gotten
wealth and its remittances to the Bureau of the Treasury (BTr) intended for
the use of the Comprehensive Agrarian Reform Program (CARP).
d. Fund 184 comprises collections and disbursements/disposition of funds

pertaining to the sequestered assets of the “Marcos Cronies” which shall be
kept in its custody pending the resolution of appropriate court
proceedings/cases in the Philippines.
2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION OF

FINANCIAL STATEMENTS
The FS have been prepared in accordance with the International Public Sector
Accounting Standards (IPSAS) pursuant to Commission on Audit (COA) Resolution
No. 2020-001 dated January 9, 2020.
The FS have been prepared on the basis of historical cost, unless stated otherwise. The
Statement of Cash Flow (SCF) is prepared using the direct method.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Basis of accounting
The FS are prepared on an accrual basis in accordance with the IPSAS.
3.2 Financial instruments
a. Financial Assets (FAs)
Initial recognition and measurement
FAs within the scope of IPSAS 29 - Financial Instruments: Recognition

and Measurement are classified as FAs at fair value through surplus or
deficit, held-to-maturity investments, loans and receivables or available-
for-sale FAs, as appropriate. The Commission determines the classification
of its FAs at initial recognition.
Purchases or sales of FAs 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 Commission
commits to purchase or sell the asset.
The Commission’s FAs include cash and trade and other receivables.
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Subsequent measurement
The subsequent measurement of FAs depends on their classification.
Derecognition
The Commission derecognizes a FA or, where applicable, a part of a FA or

part of similar FAs when:
 The rights to receive cash flows from the asset have expired or is
waived; and/or
 It 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) it has transferred
substantially all the risks and rewards of the asset; or (b) it has neither
transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.
Impairment of FAs
The Commission assesses at each reporting date whether there is objective

evidence that a FA or a group of FAs is impaired. A FA or a group of FAs
is deemed to be impaired if, and only if, 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 FA or the group of
FAs that can be reliably estimated.
b. Financial Liabilities (FLs)
Initial recognition and measurement
FLs within the scope of IPSAS 29 are classified as FLs at fair value through
surplus or deficit or loans and borrowings, as appropriate. The group
determines the classification of its FLs at initial recognition.
All FLs are recognized initially at fair value and, in the case of loans and
borrowings, plus directly attributable transaction costs.
The Commission’s FLs includes trade and other payables.
Subsequent measurement
The measurement of FLs depends on their classification.
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Derecognition
A FL is derecognized when the obligation under the liability is discharged

or cancelled or expired.
When an existing FL 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,
and the difference in the respective carrying amounts is recognized in
surplus or deficit.
3.3 Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand (COH) and cash in bank
(CIB), 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 changes in value. For the purpose of the
consolidated statement of cash flows, cash and cash equivalents consists of
cash and short-term deposits as defined above, net of outstanding bank
overdrafts.
3.4 Receivables
Receivables are initially measured at fair value. Subsequently, they are

measured at amortized cost which is the initial recognition minus principal
repayments, minus any reduction for impairment or uncollectibility.
Impairment loss is recognized in surplus or deficit.
3.5 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.
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.
Inventories are recognized as an expense when deployed for utilization or

consumption in the ordinary course of operations of the Commission.
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3.6 Property, Plant and Equipment (PPE)
Recognition
An item is recognized as PPE if it meets the characteristics and recognition

criteria as 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
 are expected to be used during more than one reporting period.
An item of PPE is recognized as an asset if:
 It is probable that future economic benefits or service potential

associated with the item will flow to the entity; and
 The cost or fair value of the item can be measured reliably.
Measurement at Recognition
An item recognized as PPE is measured at cost.
A PPE acquired through non-exchange transaction is measured at its fair

value as at the date of acquisition.
The cost of the PPE is the cash price equivalent or, for PPE acquired
through non-exchange transaction its cost is its fair value as at recognition
date.
Cost includes the following:
 its purchase price, including import duties and non-refundable purchase

taxes, after 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.
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Measurement After Recognition
After recognition, all PPE are stated at cost less accumulated depreciation and
impairment losses.
When significant parts of PPE are required to be replaced at intervals, the

Commission recognizes such parts as individual assets with specific useful
lives and depreciates it accordingly. Likewise, when a major repair/
replacement is done, its cost is recognized at a carrying amount of the PPE as
a replacement if the recognition criteria are satisfied. All other repairs and
maintenance costs are recognized as expense in surplus or deficit as incurred.
Depreciation
Each part of an item of PPE with a cost that is significant in relation to the total
cost of the item is depreciated separately.
The depreciation charge for each period is recognized as expense unless it is

included in the cost of another asset.
Initial Recognition of Depreciation
Depreciation of an asset begins when it is available for use such as when it is

in the location and condition necessary for it to be capable of operating in the
manner intended by management.
For simplicity and to avoid proportionate computation, the depreciation is for

one month if the PPE is available for use on or before the 15th of the month.
However, if the PPE is available for use after the 15th of the month,
depreciation is for the succeeding month.
Depreciation Method
The straight-line method of depreciation shall be adopted unless another

method is more appropriate for the agency operation.
Estimated Useful Life
The Commission uses the Schedule on the Estimated Useful Life of PPE by
classification prepared by COA.
The Commission uses a residual value equivalent to at least five percent of the
cost of the PPE.
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Impairment
An asset’s carrying amount is written down to its recoverable amount, or

recoverable service amount, if the asset’s carrying amount is greater than its
estimated recoverable service amount.
Derecognition
The Commission derecognizes items of PPE 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.
3.7 Intangible Assets
Recognition and Measurement
Intangible assets are recognized when the items are identifiable non-monetary
assets without physical substance; it is probable that the expected future
economic benefits or service potential that are attributable to the assets will
flow to the entity; and the cost or fair value of the assets can be measured
reliably.
Intangible assets acquired separately are initially recognized at cost.
If payment for an intangible asset is deferred beyond normal credit terms, its
cost is the cash price equivalent. The difference between this amount and the
total payments is recognized as interest expense over the period of credit unless
it is capitalized in accordance with the capitalization treatment permitted in
IPSAS 5, Borrowing Costs.
Subsequent Expenditure on an Acquired In-process Research and

Development Project
Subsequent expenditure on an in-process research or development project

acquired separately and recognized as an intangible asset is:
 Recognized as an expense when incurred if it is research expenditure;

 Recognized as an expense when incurred if it is development expenditure
that does not satisfy the criteria for recognition as an intangible asset; and
 Added to the carrying amount of the acquired in-process research or
development project if it is development expenditure that satisfies the
recognition criteria for intangible assets.
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Intangible Assets Acquired through Non-Exchange Transactions (NET)
The cost of intangible assets acquired in a NET is their fair value at the date
these were acquired.
Internally Generated Intangible Assets
Internally generated intangible assets, excluding capitalized development

costs, are not capitalized and expenditure is reflected in surplus or deficit in the
period in which the expenditure is incurred.
Recognition of an Expense
Expenditure on an intangible item shall be recognized as an expense when it is

incurred unless it forms part of the cost of an intangible asset that meets the
recognition criteria of an intangible asset.
Subsequent Measurement
The useful life of the intangible assets is assessed as either finite or indefinite.
Intangible assets with a finite life are amortized over its useful life.
The straight-line method is adopted in the amortization of the expected pattern

of consumption of the expected future economic benefits or service potential.
An intangible asset with indefinite useful life shall not be amortized. Intangible
assets with indefinite useful lives or an intangible asset not yet available for use
are assessed for impairment whenever there is an indication that the asset may
be impaired.
The amortization period and the amortization method, for an intangible asset
with a finite useful life, are reviewed at the end of each reporting period.
Changes in the expected useful life or the expected pattern of consumption of
future economic benefits embodied in the asset are considered to modify the
amortization period or method, as appropriate, and are treated as changes in
accounting estimates. The amortization expense on an intangible asset with a
finite life is recognized in surplus or deficit as the expense category that is
consistent with the nature of the intangible asset.
Gains or losses arising from derecognition of an intangible asset are measured

as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the surplus or deficit when the asset is
derecognized.
Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and accumulated impairment losses.
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Amortization of the asset begins when development is complete and the asset
is available for use.
It is amortized over the period of expected future benefit.
During the period of development, the asset is tested for impairment annually
with any impairment losses recognized immediately in surplus or deficit.
3.8 Changes in Accounting Policies and Estimates
The Commission recognizes the effects of changes in accounting policy

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

including in surplus or deficit.
The 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.
3.9 Foreign Currency Transactions
Transactions in foreign currencies are initially recognized by applying the spot

exchange rate between the functional currency and the foreign currency of the
transaction.
At each reporting date:
 Foreign currency monetary items are translated using the closing rate;
 Nonmonetary items that are measured in terms of historical cost in a foreign
currency shall be translated using the exchange rate at the date of the
transaction; and
 Nonmonetary items that are measured at fair value in a foreign currency
shall be translated using the exchange rates at the date when the fair value
was determined.
Exchange differences arising (a) on the settlement of monetary items, or (b) on

translating monetary items at rates different from those at which they were
translated on initial recognition during the period or in previous FS, are
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recognized in surplus or deficit in the period in which they arise, except as those
arising on a monetary item that forms part of a reporting entity’s net investment
in a foreign operation.
3.10 Revenue from Exchange Transactions
Measurement of Revenue
Revenue shall be measured at the fair value of the consideration received or

receivable.
Sale of Goods
Revenue from sale of goods 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 Commission.
Interest income
Interest income is accrued using the effective yield method. The effective yield
discounts estimated future cash receipts through the expected life of the FA to
that asset’s net carrying amount. The method applies this yield to the principal
outstanding to determine interest income each period.
3.11 Budget information
The annual budget is prepared on a cash basis and is published in the

government website.
As a result of the adoption of the cash basis for budgeting purposes, a separate
Statement of Comparison of Budget and Actual Amounts (SCBAA) was
presented showing the basis, timing or entity differences. Explanatory
comments are provided in the notes to the annual FS: first, the reasons for
overall growth or decline in the budget are stated, followed by details of
overspending or underspending on line items.
3.12 Related Parties
The Commission 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
it, or vice versa.
Members of key management were regarded as related parties such as: the
Acting Chairperson, Commissioners, and Directors.
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3.13 Employee Benefits
The employees of the Commission are members of the Government Service

Insurance System (GSIS), which provides life and retirement insurance
coverage.
It recognizes the undiscounted amount of short-term employee benefits, like

salaries, wages, bonuses, allowance, etc., as expense unless capitalized, and as
a liability after deducting the amount paid.
It recognizes expenses for accumulating compensated absences when these are

paid (commuted or paid as terminal leave benefits). Unused entitlements that
have accumulated at the reporting date are not recognized as expense. Non-
accumulating compensated absences, like special leave privileges, are not
recognized.
3.14 Measurement Uncertainty
The preparation of FS in conformity with IPSAS, requires management to

make estimates and assumptions that affect the reporting amounts of assets and
liabilities, and disclosure of contingent assets and liabilities, at the date of the
FS and the reported amounts of the revenues and expenses during the period.
Items requiring the use of significant estimates include the useful life of capital
assets, estimated employee benefits, rates for amortization, impairment of
assets, liability for contaminated sites, etc.
Estimates are based on the best information available at the time of preparation
of the FS and are reviewed annually to reflect new information as it becomes
available. Measurement uncertainty exists in these FS. Actual results could
differ from these estimates.
4. CHANGES IN ACCOUNTING POLICIES
In March 2014, the Commission adopted IPSAS Nos. 1 to 24, which replaced the
existing standard. The new standard includes requirements for recognition,
measurement, presentation and disclosure of accounts and is effective for years
beginning January 1, 2014. This accounting change had no significant impact on its
consolidated FS.
In CY 2022, the Commission availed the one-time cleansing of PPE account balances
pursuant to COA Circular No. 2020-006 dated January 31, 2020. On May 31, 2022, the
COA also issued guidelines, per COA Circular No. 2022-004, relative to the increase in
the capitalization threshold from ₱15,000.00 to ₱50,000.00, which has an impact on the
one-time cleansing of PPE activity conducted.
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5. PRIOR PERIOD ADJUSTMENTS
The Commission has determined that prior years’ errors were committed as a result of
a change in accounting policy, an oversight of computation, together with various
unrecorded income and expenses due to unavailability of information at that time the FS
were authorized for issue. Details are as follows:
 Restatement of the Opening Balance of the Accumulated Surplus
Various errors in recording of transactions for CY 2021 and below were determined
during the year. As a result, the balance of the Accumulated Surplus as of January 1,
2022 is restated as follows:
Balance, January 1, 2022 ₱15,785,187,127.89

Unrecorded adjustments, transfer,
23,085,596.85
issuance and reclassification of assets
Unrecorded adjustments of liabilities (175,737.15)
Net adjustment in Equity 22,909,859.70
Restated Balance, January 1, 2022 ₱15,808,096,987.59
 Restatement of the 2021 Balances of Assets and Liabilities
(in Philippine Peso)

Account Effects of Errors 2021 Restated
2021 Balance Remarks
(Over)/Under Balance
Petty Cash ₱58,991.68 ₱0.93 ₱58,992.61
Due from National
1,257,950,600.68 (182,951.86) 1,257,767,648.82
Government Agencies
Other Receivables 4,751,099.04 41,476,697.94 46,227,796.98
Office Equipment 2,318,285.04 (1,928,395.04) 389,890.00
Accumulated
Depreciation - Office (1,949,798.55) 1,714,979.65 (234,818.90)
Equipment
ICT Equipment 7,426,345.30 (6,815,362.30) 610,983.00 Unrecorded
Accumulated adjustments,
(4,340,098.66) 4,213,402.77 (126,695.89)
Depreciation - ICT transfer,
Communication issuance and
178,333.04 (178,333.04) -
Equipment reclassification
Accum. Depn. - of assets
Communication (157,253.20) 157,253.20 -
Equipment
Motor Vehicles 14,777,826.71 981,775.45 15,759,602.16
Accum. Depn. - Motor
(13,360,533.59) (932,686.68) (14,293,220.27)
Vehicles
Furniture and Fixtures 157,776.50 (157,776.50) -
Accumulated
Depreciation – (126,934.10) 126,934.10 -
Furniture & Fixtures
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Books 137,101.46 (137,101.46) -
Accumulated
(130,246.40) 130,246.40 -
Depreciation - Books
Other Property, Plant
140,225.00 (140,225.00) -
and Equipment
Accumulated
Depreciation - Other (120,935.00) 120,935.00 -
PPE
Abandoned/Surrendered
15,468,715,029.76 (15,355,054.00) 15,453,359,975.76
Property/Assets
Sub-total - Adjustments in Assets 23,085,596.85
Unrecorded
Accounts Payable 10,498,025.55 (78,095.61) 10,419,929.94 adjustments and
reclassification
Due to BIR 1,335,985.39 253,832.76 1,589,818.15 of liabilities
Sub-total - Adjustments in Liabilities 175,737.15
Net Effect on the Restated amounts to the
₱22,909,859.70
Assets and Liabilities
 Restatement of the 2021 Balances of Revenue and Expenses
Balance, January 1, 2022 ₱288,452,802.36

Unrecorded and/or misclassified revenue 490,487,901.55
Unrecorded and/or misclassified expenses (2,827,167.30)
Restated Balance, January 1, 2022 ₱776,113,536.61

Interest Income ₱290,269,723.27 (₱490,487,901.55) ₱780,757,624.82
Travelling Expenses - Local 520,932.36 (402.42) 520,529.94
Semi-Expendable Machinery
635,712.33 2,896,078.38 3,531,790.71
and Equipment Expenses
Semi-Expendable Furniture and
43,550.25 37,697.46 81,247.71
Fixtures Expenses Unrecorded
Legal Services 22,523,370.97 (197,272.57) 22,326,098.40 and/or
misclassified
Rent Expenses 623,904.19 59,488.84 683,393.03 expenses
Depreciation - Machinery and
721,387.16 76,678.88 798,066.04
Equipment
Depreciation - Transportation
271,360.68 (49,088.77) 222,271.91
Equipment
Depreciation - Other Property,
3,135.00 3,987.50 7,122.50
Plant and Equipment
Total Adjustment in Surplus (₱487,660,734.25)
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6. CASH AND CASH EQUIVALENTS
Particulars 2022 2021 (as restated)

Cash - Collecting Officers ₱11,079.32 -
Petty Cash 108,718.13 ₱83,752.67
Cash in Bank - Local Currency, Savings
Account 9,195,503.08 6,253,401.36
Cash in Bank - Local Currency, Current
Account 803,174.77 7,983,830.95
Cash in Bank - Foreign Currency, Savings
44,688,949.19 55,358,267.17
Account
Treasury/Agency Cash Accounts 2,653,055,191.88 1,801,272,254.58
Total Cash and Cash Equivalents ₱2,707,862,616.37 ₱1,870,951,506.73
6.1 The Cash in Bank – Local Currency, Current Account (CIB-LCCA) consists of a
Special Account maintained for Bids and Awards Committee (BAC) transactions
with existing balance for BAC purposes. On April 6, 2022, a check amounting to
₱7,600,000.00 was issued to refund the bidder for the BBC Naga property.
Performance bonds by various suppliers amounting to ₱472,599.04 were also
deposited in this account.
6.2 The Cash in Bank – Local Currency, Savings Account (CIB-LCSA) consists of
savings account maintained for collections and operations of six condominium units
at Galeria De Magallanes (GDM), a sequestered property, amounting to
₱1,863,550.64 and Sto. Niño Shrine and Heritage Museum and People’s Center
Library in Tacloban City amounting to ₱7,331,952.44.
6.3 The Cash in Bank – Foreign Currency, Savings Account (CIB-FCSA) has a balance
amounting to $796,310.57 as of May 31, 2022 or ₱44,688,949.19 ($1=₱56.12), if
converted to Philippine Peso based on BSP rate as of December 29, 2022. Various
withdrawals and additions from prior years were taken up in books amounting to
₱13,756,614.06.
6.4 The Treasury/Agency Deposit - Cash Accounts consist of the following:
Particulars 2022 2021 (as restated)

Cash Treasury/Agency Deposit - Trust ₱2,653,055,191.88 ₱1,801,272,254.58
Total Treasury/Agency Deposit -
₱2,653,055,191.88 ₱1,801,272,254.58
Cash Accounts
6.5 The Cash Treasury/Agency Deposit – Regular Account and Special Account under
Fund 101 and Fund 151 represent deposits to the BTr of collections coming from
refund of excess payments of maintenance and other operating expenses (MOOE)
sourced from the Special Provision per GAA and from proceeds on the disposal of
unserviceable properties. These accounts are closed to the Accumulated
Surplus/(Deficit) account at the end of the year.
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6.6 The Cash Treasury/Agency Deposit – Trust Account represents deposits with the BTr
under Trust Fund for the period 1986 to 2022 amounting to ₱2,653,055,191.88. Of
this amount, ₱123,854,530.90 pertains to proceeds from sale of Wack-Wack
Property and interest income from 2014 to present, temporarily deposited as trust
fund, awaiting for the resolution of some legal issues before it can be remitted to the
BTr CARP Fund. On November 28, 2018, the Supreme Court in G. R. No. 235270,
resolved to deny the Motion for Reconsideration of the Resolution dated April 2,
2018 which denied the Petition to Review on Certiorari assailing the Decision and
Resolution dated February 13, 2017 and October 10, 2017, respectively, of the Court
of Appeal in CA-GR CV No. 105231. The DDBS Unlimited Advertising, Inc., the
buyer, is still processing the transfer of property to fully execute the Court’s decision,
afterwards, the amount in the trust fund will be remitted to the BTr CARP Fund.
Proceeds from the sale of surrendered properties, remittances from Mid-Pasig Land
Development Corporation (MPLDC) out of its income, other income from
surrendered assets, proceeds from CARP coverage of the IRC landholdings,
dividend from San Miguel Corporation, among others are also remitted to this
account.
7. RECEIVABLES
Particulars 2022 2021 (As restated)

Inter-Agency Receivables ₱1,340,382,538.97 ₱1,259,567,648.82
Other Receivables 50,092,397.33 51,704,268.02
Total Receivables ₱1,390,474,936.30 ₱1,311,271,916.84
7.1 Inter-Agency Receivables
2022 2021 (Restated)

Particulars
Current Non-Current Total Current Non-Current Total
Due from
₱455,188.00 ₱1,338,127,350.97 ₱1,338,582,538.97 ₱131,738.24 ₱1,257,635,910.58 ₱1,257,767,648.82
NGAs
Due from
1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00
LGUs
Total ₱455,188.00 ₱1,339,927,350.97 ₱1,340,382,538.97 ₱131,738.24 ₱1,259,435,910.58 ₱1,259,567,648.82
a. The Due from NGAs is composed of: (a) fund balance with DBM-PS for
procurement of supplies, plane tickets for local travel and ICT requirements; and
(b) cash dividends for sequestered shares placed in custodia legis by the
Sandiganbayan and LBP – Intramuros Branch. Details are as follows:
Particulars Amount
DBM-PS
Supplies and plane tickets ₱455,188.00
Sandiganbayan
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Particulars Amount
Sandiganbayan PCGG Oceanic Wireless Network 31,725,979.09
Inc. (OWNI)
Sandiganbayan PCGG Eastern 844,149,406.44
Telecommunications Phils. Inc. (ETPI)
Kalawakan Resort Acct# 1691-1325-75 1,479,137.83
Civil Case #009 (1691-1687-40 COA Branch) 129,463,950.92
LBP-Intramuros
Manila International Port Terminal Inc. (MIPTI) 20,358,321.94
Total Due from NGAs ₱1,338,582,538.97
b. The Due from LGUs account in the amount of ₱1,800,000.00 consists of the
amount withdrawn from the Commission’s escrow account under the name of
PCGG-ITF-RP/Paoay Sports Complex and was transferred to the Clerk of Court,
Fiduciary Fund of Municipal Trial Court, Paoay-Curimao, Ilocos Norte in
August 2010.
7.2 Other Receivables
The account consists of the following:

Operating Lease Receivables ₱2,507,624.20 ₱2,527,624.20
Receivables – Disallowances/Charges 2,948,846.84 2,948,846.84
Other Receivables 44,635,926.29 46,227,796.98
Total Other Receivables ₱50,092,397.33 ₱51,704,268.02
a. The Operating Lease Receivables amounting to ₱2,507,624.20 consists of

receivables under Fund 184 from tenants in Tacloban City for the months of
March and April 2020 and in GDM for the period October 1, 2019 to February
28, 2021. A total of ₱20,000.00 was collected during CY 2022.
b. The Receivables – Disallowances/Charges amounting to ₱2,948,846.84

represents receivables resulting from audit disallowances which have become
final and executory.
c. The Other Receivables consists of ₱4,748,535.03 pertaining to unliquidated cash

advances (CAs) from officers and employees who are no longer connected with
the Commission and are already dormant. Requests for write-off amounting to
₱2,312.96 and ₱149,996.07 were filed in December 2022 before the resident
COA Audit Team Leader and Supervising Auditor. Subsequently, in January
26
and February 2023, the Commission received the rulings granting the said
requests, hence, a journal entry will be taken up in the books.
The account also includes, under Fund 158, per Commission Resolution No.
2022-003-003 dated January 27, 2022, an amount of ₱39,887,391.26 pertaining
to receivable from Landbank of the Philippines (LBP) UP Los Baños as proceeds
from the Comprehensive Agrarian Reform Program (CARP) coverage
compensation of the IRC landholdings in Laguna and Cavite. Proceeds from
LBP Tacloban City for IRC landholdings in Biliran, Leyte were already
collected and remitted to treasury amounting to ₱1,589,306.68 in November
2022.
Ageing of the Other Receivables account is as follows:
Less than One More than 10 More than 20 More than 30

Name Total
Year years years years
1. Ascalon, Luis ₱282,600.00 ₱ 169,373.63 ₱ 451,973.63
2. Boiser, Alfredo ₱2,312.96 2,312.96
3. Chavez, Francisco 118,540.07 31,426.00 149,966.07
4. Daguna, D. 126,209.06 126,209.06
5. Dela Cruz, Romeo 74,132.00 74,132.00
6. Galang, Mario 113,383.20 113,383.20
7. Parlade, Cesar 177,993.35 117,671.46 295,664.81
8. Pedrosa, Alberto
301,326.16 301,326.16
(London)
9. PNB - New York 139,593.07 139,593.07
10. PNB - San
Francisco (Ted 523,020.48 523,020.48
Laguatan)
11. PNB - Wells Fargo
488,525.56 488,525.56
SF (Ted Laguatan)
12. Sabio, Camilo L. 2,082,428.03 2,082,428.03
13. IRC Landholdings-
₱19,291,437.31
Cavite
13. IRC Landholdings-
20,595,953.95
Laguna
Total ₱39,887,391.26 ₱2,084,740.99 ₱705,342.48 ₱1,958,451.56 ₱44,635,926.29
8. INVENTORIES
Semi-
Other Supplies Semi-
Office Supplies Expendable
Particulars and Materials Expendable ICT
Inventory Office
Inventory Equipment
Equipment
Carrying Amount
(CA) as restated, Jan. ₱570,553.35 ₱14,826.07 - -
1, 2022
Additions/ Purchases
2,876,022.12 708,808.54 ₱741,204.80 ₱1,207,611.80
during the period
Consumed during the
(2,524,676.86) (718,477.22) (741,204.80) (1,204,819.40)
period
CA, Dec. 31, 2022 ₱921,898.61 ₱5,157.39 ₱0.00 ₱2,792.40
27
Semi- Semi-
Semi-
Expendable Expendable
Expendable
Particulars Communication Other Total
Furniture and
Equipment Machinery and
Fixtures
Equipment
Carrying Amount
(CA) as restated, Jan. - - - ₱585,379.42
1, 2022
Additions/ Purchases
₱49,000.00 ₱14,282.80 ₱108,390.97 5,705,321.03
during the period
Consumed during the
(49,000.00) (14,282.80) (108,390.97) (5,360,852.05)
period
CA, Dec. 31, 2022 ₱0.00 ₱0.00 ₱0.00 ₱929,848.40
The difference between the total amount of consumption of ₱5,360,852.05 and the total
Supplies and Materials Expenses of ₱8,609,741.22 as reflected in the Statement of
Financial Performance was due to the direct recording of Fuel, Oil and Lubricants
amounting to ₱2,299,275.99 and Office Supplies and Other Supplies and Materials
account amounting to ₱949,613.18 as outright expense upon payment.
9. PROPERTY, PLANT AND EQUIPMENT
Machinery and
Particulars Motor Vehicles Total
Equipment
CA, January 1, 2022 (As restated) ₱639,358.21 ₱1,466,381.89 ₱2,105,740.10
Additions/ Acquisitions 321,495.00 4,416,600.00 4,738,095.00
Total 960,853.21 5,882,981.89 6,843,835.10
Adjustments (124,395.00) (137,633.21) (262,028.21)
Depreciation (As per SFPe) (266,045.28) (405,941.83) (671,987.11)
CA, December 31, 2022 (As per
570,412.93 5,339,406.85 5,909,819.78
SFPo)
Gross Cost (Asset Account Balance
1,012,468.00 17,423,537.98 18,436,005.98
per SFPo)
Less: Acc. Dep. (442,055.07) (12,084,131.13) (12,526,186.20)
CA, December 31, 2022 (As per
₱570,412.93 ₱5,339,406.85 ₱5,909,819.78
SFPo)
9.1 In 2022, a committee was created in collaboration with the Accounting Division and
Administrative Services Division to implement COA Circular No. 2020-006
“Guidelines and Procedures in the conduct of physical count of Property, Plant and
Equipment (PPE), recognition of PPE items found at station, and disposition for non-
existing/missing PPE items, for the One-Time Cleansing of PPE Account Balances
of Government Agencies.” The committee was able to complete the One-Time
Cleansing activity as of December 31, 2022.
9.2 The PPE accounts booked up under Fund 158 include Land, Land Improvements and
Buildings located at EDSA, Mandaluyong which are being used by the Commission
28
9.3 in its operation. In 2021, the said PPEs in Fund 158 amounting to ₱144,299,000.00
were transferred to Abandoned/Surrendered Property Assets as they were part of the
recovered properties from Marcos ill-gotten wealth. In 2022, the said property was
disposed thru public bidding and the proceeds amounting to ₱800,000,000.00 was
remitted to BTr- Trust account under Fund 184.
10. INTANGIBLE ASSETS
2021
2022
Particulars (As restated)
Computer Software
CA, January 1, 2022 ₱308,567.20 ₱292,257.39
Additions: Purchased/Acquired 709,776.03 184,880.56
Total 1,018,343.23 477,137.95
Adjustments - -
Less: Amortization recognized (As per SFPe) (191,844.57) (168,570.75)
CA, December 31, 2022 (As per SFPo) 826,498.66 308,567.20
Gross Cost (Balance per SFPo) 1,854,077.57 1,144,301.54
Less: Acc. Amort. (including acc. impairment
(1,027,578.91) 835,734.34
loss)
CA, December 31 (As per SFPo) ₱826,498.66 ₱308,567.20
11. OTHER ASSETS
Current and Non-Current Other Assets

Current Assets
Advances ₱7,021.00 ₱101,450.63
Advances to Special Disbursing
7,021.00 101,450.63
Officer
Prepayments 741,571.99 140,810.43
Prepaid Insurance 652,464.34 33,243.50
Other Prepayments 89,107.65 107,566.93
Total Current Assets 748,592.99 242,261.06
Non-Current Assets
Deposits 2,332,984.70 2,182,984.70
Guaranty Deposit 2,332,984.70 2,182,984.70
Other Assets 15,283,980,013.52 15,765,461,248.43
Confiscated Property/Assets 340,228,086.38 340,228,086.38
Abandoned/Surrendered
15,336,497,275.76 15,453,359,975.76
Property/Assets
29
Less: Acc. Impairment Losses –
Abandoned/Surrendered (392,745,348.62) (28,126,813.71)
Property/Assets
Total Non-Current Assets 15,286,312,998.22 15,767,644,233.13
Total Other Assets ₱15,287,061,591.21 ₱15,767,886,494.19
11.1 The Confiscated Property/Assets account under Fund 158 comprises the
following:
a.) The Hawaii Jewelry Collection was seized by the United States (US)
Customs Service and turned over to the Philippine Government (PG) through
the US Hawaii District Court ruling on December 18, 1992, that the Republic
of the Philippines is entitled to the possession and control of the said
collection. The Sandiganbayan Manila First Division, in its Resolution dated
October 25, 1996, mentioned that this jewelry was ceded by Imelda R.
Marcos to the Republic in exchange for the withdrawal of specific lawsuits
against her.
The recorded cost of the items amounting to ₱137,500,701.81 was based on

the appraisal made in 1991 which was eventually adjusted in 2005 to reflect
increase in appraisal.
The latest appraisal of said collections amounts to ₱892,509,675.64, which

is ₱755,008,973.83 or 549 percent above the recorded amount, as computed
below:
BSP Low High Average

*No. of Exchange
Report $ $ $ ₱
Appraiser Tagged Rate on
Date
Items Report
IN THOUSAND
Date
15 Dec
Christie’s 406 ₱47.305 10,922 18,664 14,793 699,822
2015
13 Jan
Sotheby’s 376 ₱47.325 17,240 28,621 22,930 1,085,197
2016
Total: 1,785,019
Average: 892,510
b.) The Malacañang Jewelry Collection was seized from Malacañang after
February 25, 1986 and was transferred to Central Bank on March 1, 1986.
The ownership of this collection was awarded to the PG by virtue of a
Resolution dated January 18, 2017 of the Supreme Court Manila First
Division.
The amount recorded in the books totaling ₱202,446,251.98 was based on

the average of the appraised values of two appraisers namely Christie,
Manson & Woods Ltd. on December 15, 2015 and Sotheby’s on January 13,
30
2016. For those not included in the appraisal in 2015 and 2016, the values
used were based on their values when the assets were received in 1986.
The results of appraisals in 2015 and 2016 were as follows:
BSP Low High Average

*No. of Exchange $ $ $ ₱
Report
Appraiser Tagged Rate on
Date
Items Report IN THOUSAND
Date
Christie’s 15-Dec-15 215 ₱47.31 4,651 8,981 6,816 322,432
Sotheby’s 13-Jan-16 199 ₱47.33 1,380 2,097 1,739 82,277
Total: 404,709
Average: 202,354
*refers to serial numbers assigned by Christie and Sotheby’s as a counter to original item
number assigned by the Philippines. It may refer to one lone item, a pair or a set, a group of
similar items or a group of assorted items.
c.) Various firearms were confiscated amounting to ₱281,132.59 recorded on

December 31, 2021 based on the available appraised values when the assets
were recorded.
11.2 Abandoned/Surrendered Property/Assets are properties on which ownership has

finally been decided in favor of the government. The account is maintained under
Fund 158.
 Abandoned/Surrendered Property/Assets were previously booked up as PPE

under Fund 158. These are assets and properties voluntarily surrendered,
assigned, or ceded, or waived to the Commission as ill-gotten wealth, or
through settlement or after judicial determination. Included herein are real
properties surrendered to the government thru the Commission by J.Y.
Campos, Roberto S. Benedicto (IBC and BBC), Antonio Martel/Simplicio
Palanca and Alejo Ganut, Jr. and Jolly Bugarin.
 In 2021, the properties located at No. 82 EDSA, Mandaluyong City recorded

in Fund 158 under the PPE accounts as Land, Land Improvements and
Buildings were reclassified to Abandoned/Surrendered Property Assets.
The said properties were appraised in January 2022, with the following
results:
Appraised Value - 2022

No. Particulars
Asian Appraisal Cal-fil
1. Land ₱836,940,000.00 ₱721,500,000.00
2. Buildings 18,977,000.00
-
3. Other Land Improvements 1,073,000.00
31
Appraised Value - 2022
No. Particulars
Asian Appraisal Cal-fil
Total Market Value ₱ 856,990,000.00 ₱ 721,500,000.00
The property was disposed through public bidding in May 2022.
 Seventy-two (72) pieces of IRC artworks with a fair market value of

₱28,392,500.00 were recognized in the books as per Commission Resolution
No. 2022-047-047 dated September 29, 2022.
 The Banahaw Broadcasting Corporation (BBC) Land, Buildings, Office

Equipment and Furniture and Fixtures amounting to ₱16,231,600.00 located
in Iligan City, Lanao Del Norte were dropped from the books as per National
Labor Relations Commission’s (NLRC) Deputy Sheriff’s Certificate of Deed
of Final Conveyance dated August 5, 2014.
 In the absence of acquisition cost and date, Abandoned/Surrendered Property

Assets under Fund 158 are carried at values based on the initial appraisal as
recommended by the COA. The Asset Management Department contracted
various appraisal companies to conduct valuation of these properties. Below
are the results of the said assessment:
Property
2022 Market Appraiser’s
Description/
Value 2021 Appraised Value
Location
Calfil Toppers
1 BBC Naga ₱60,710,000.00 ₱60,710,000.00 ₱53,568,000.00
Brixton Ville,
2 3,699,999.98 3,696,000.00 3,840,000.00
Caloocan
Calapan, Oriental
3 1,170,000.00 1,050,000.00 810,000.00
Mindoro
Francisco,
4 Evergree, 13,076,000.00 13,076,000.00 13,543,000.00
Tagaytay City
Puerto Galera,
5 6,700,000.00 5,400,000.00 6,700,000.00
Oriental Mindoro
Gen. Mariano
6 291,949,999.80 241,542,000.00 194,575,500.00
Alvarez, Cavite
BREDCO,
7 569,850,000.00 378,380,000.00 270,790,400.00
Bacolod City
2019 Appraised Value
Intech Property
Asian Appraisal
Appraisal
Mid-Pasig
(Payanig)
1 41,600,000,000.00
(Ortigas
Property) (Lot 1)
Mid-Pasig
2 6,471,660,000.00 3,011,811,000.00
(Payanig)
32
Property
2022 Market Appraiser’s
Description/
Value 2021 Appraised Value
Location
(Ortigas
Property) (Lot 2)
 In 2021, the properties of IBC 13 – Broadcast City (except for Office

Equipment by DYRG-AM-Kalibo pending confirmation of IBC-13) recorded
under the PCGG books, were written-off by virtue of a Memorandum of
Agreement dated February 16, 2021 among PCGG, Intercontinental
Broadcasting Corporation (IBC-13) and Presidential Communications
Operations Office.
In 2022, the inadvertently excluded property was dropped off from the books
amounting to ₱956,200.00, as per receipt of approval letter from Office of the
Press Secretary dated September 21, 2022.
 The Abandoned/Surrendered Property/Assets account also includes land

owned by PIEDRAS which originally has a total area of 1,635,263 square
meters covered by six titles. The PCGG is in possession of the five titles
with land areas totaling 356,005 square meters. From these five titles, 113,870
square meters under TCT No. T-81835 was placed under CARP coverage
which was already dropped from the PCGG books of accounts. The PCGG
has no copy in possession for the remaining 1,279,258 square meters under
TCT No. T-163207. PIEDRAS has recommended the filing of a petition in
court for the reconstitution/replacement of the lost title but this cannot be
acted upon since the property has also been placed under CARP coverage.
There is a pending Motion for Reconsideration filed by PIEDRAS in April
2019 with the Department of Agrarian Reform (DAR) for exemption of said
land from CARP.
 In December 2019, the shares of stocks booked under the account Investment
in Stocks were reclassified to Abandoned/Surrendered Property/Assets. As of
December 31, 2022, the book value is ₱542,306,940.85, net of impairment
loss.
 To correct the double booking of accounts, the Commission issued a

Resolution No. 2018-005-005 expressly recognizing PCGG's equity in IRC,
MPLDC and PIC. Thus, by virtue of the Resolution, derecognition of the
abandoned/surrendered properties in PCGG books will be implemented
subject to the outcome of the on-going reconciliation of records among
Accounting Division, Surrendered Assets Group, and IRC Group of
Corporations. The PCGG will issue an IRR/ Policy on the implementation for
proper recording of these assets.
33
12. FINANCIAL LIABILITIES
Payables

Accounts Payable ₱3,548,992.46 ₱10,419,929.94
The Accounts Payable includes payables to external creditors for goods purchased and
services rendered for CYs 2022 and 2021. The aging of this account is as follows:
Particulars Amount
Less than 1 year ₱3,548,992.46
Over 1 year -
Total ₱3,548,992.46
13. INTER-AGENCY PAYABLES

Due to BIR ₱1,534,487.44 ₱1,589,818.15
Due to GSIS 138,082.03 151,260.18
Due to Pag-IBIG 15,034.56 20,339.21
Due to PhilHealth 140,682.52 106,431.01
Total Inter-Agency Payables ₱1,828,286.55 ₱1,867,848.55
The above balances include amounts from prior years’ transactions that need to be
verified and adjusted.
14. TRUST LIABILITIES

Guaranty/Security Deposits Payable ₱472,599.04 ₱267,620.79
Of the ₱472,599.04, the amount of ₱134,220.79 was deposited to BTr while the
remaining ₱338,378.25 was deposited to a special account maintained with the LBP
for BAC purposes.
15. OTHER PAYABLES

Other Payables ₱4,051,346,627.74 ₱3,132,457,217.61
34
Other Payables are broken down as follows:
Particulars Fund 101 Fund 151 Fund 184 Total

PCGG Multi-
Purpose Coop. ₱160,566.51 ₱28,790.00 ₱189,356.51
(MPC)
PCGG
Employees (15,125.00) (1,050.00) (16,175.00)
Association
Bids and Awards
Committee 487,640.00 487,640.00
(BAC)
Disallowances
549,923.82 375,621.48 925,545.30
(still pending)
PCGG Provident
20,000.00 20,000.00
Fund
Tax Refund set
103,385.54 103,385.54
up
Various inactive
27,081.73 45,844.02 72,925.75
accounts
Escrow Accounts:
Galeria de
Magallanes
₱14,400,393.20 14,400,393.20
(GDM) Account
in LBP - LC, SA
Tacloban Region
8 Account in 7,143,553.05 7,143,553.05
LBP - LC, SA
Philippine
44,688,949.19 44,688,949.19
National Bank
Bureau of the
1,861,138,603.85 1,861,138,603.85
Treasury
PCGG MIPTI in
20,358,321.94 20,358,321.94
LBP Intramuros
Sandiganbayan
PCGG OWNI in
31,725,979.09 31,725,979.09
LBP COA
Branch
Sandiganbayan
PCGG ETPI in
844,149,406.44 844,149,406.44
LBP COA
Branch
Kalawakan
Resort in LBP 1,479,137.83 1,479,137.83
COA Branch
CC#009 in LBP
440,414,505.67 440,414,505.67
COA Branch
Fiduciary Fund
1,800,000.00 1,800,000.00
of Municipal
35
Particulars Fund 101 Fund 151 Fund 184 Total
Circuit Trial
Court Paoay-
Currimao
Meter Deposits in
21,230.00 21,230.00
GDM
Due from Other
(19,345,437.30) (19,345,437.30)
Funds
Due to Other
801,589,306.68 801,589,306.68
Funds
Total ₱1,333,472.60 ₱449,205.50 ₱4,049,563,949.64 ₱4,051,346,627.74
Disallowances include amounts deducted from retired or resigned employees for the
disallowances issued by COA but still pending on appeal and deductions from Special
Legal Counsels for delayed submission of inputs.
Escrow Accounts totaling ₱4,049,563,949.64 are moneys deposited in various

government agencies such as BTr, Sandiganbayan and LBP in trust for PCGG and being
maintained in Fund 184 representing collections from sequestered assets, pending
litigation for the rightful ownership. It also includes the ₱123,854,530.90 proceeds from
the sale of Wack Wack Property awaiting resolution of some legal issues.
The Due from Other Funds amounting to ₱19,345,437.30 pertains to SMC dividend that
was inadvertently deposited under Fund 101 Cash Treasury, Regular account. A
correction request was filed in November 2022 before the BTr awaiting reply. The Due
to Other Funds amounting to ₱801,589,306.68 are proceeds related to
Abandoned/Surrendered properties booked under Fund 158, which are temporarily
remitted to Fund 184 BTr account.
16. SERVICE AND BUSINESS INCOME

Interest Income ₱1,194,175,644.16 ₱780,757,624.82
Total Business Income ₱1,194,175,644.16 ₱780,757,624.82
16.1 Business Income pertains to income from surrendered and other properties
already owned by the Republic awaiting privatization and disposal.
The total income receipts amounting to ₱1,194,175,644.16 and ₱780,757,624.82

for CYs 2021 and 2020, respectively, are interest income from Coco Levies
pursuant to RA No. 11524 dated February 26, 2021, that was recorded in Cash
Treasury account and subsequently closed to Accumulated Surplus/(Deficit)
account at the end of the year under Fund 158.
36
17. PERSONNEL SERVICES

Salaries and Wages ₱76,724,471.98 ₱73,919,060.84
Other Compensation 28,457,754.43 29,323,779.31
Personnel Benefit Contributions 10,296,783.92 9,840,719.43
Other Personnel Benefits 5,619,801.68 4,782,398.91
Total Personnel Services ₱121,098,812.01 ₱117,865,958.49
17.1 Salaries and Wages
The increase in salaries and wages was due to Salary Standardization Law V
(SSLV), step increments, transfer or promotion of personnel.
17.2 Other Compensation
2021
Particulars 2022
(As restated)
Personnel Economic Relief Allowance ₱3,398,622.14 ₱3,759,809.51
Representation Allowance 1,717,750.00 1,714,500.00
Transportation Allowance 1,146,000.00 1,202,250.00
Clothing Allowance 864,000.00 774,000.00
Honoraria 340,000.00 200,000.00
Hazard Pay - 938,500.00
Overtime and Night Pay 507,051.49 425,198.15
Year-End Bonus 6,399,640.80 6,280,465.65
Cash Gift 708,000.00 708,441.00
Mid-Year Bonus 6,390,190.00 5,975,251.00
Other Bonuses and Allowances 6,986,500.00 7,345,364.00
Total Other Compensation ₱28,457,754.43 ₱29,323,779.31
The Other Bonuses and Allowances in the amount of ₱7,345,364.00 is composed

of the following:
2021
Particulars 2022
(As Restated)
CY 2018 Performance Based Bonus
₱2,864.00
(PBB)
PCGG Anniversary Bonus 1,875,000.00
Collective Negotiation Agreement
₱3,475,000.00 3,350,000.00
(CNA)
Productivity Enhancement Incentive
699,500.00 707,500.00
(PEI)
Service Recognition Incentive (SRI) 2,812,000.00 1,410,000.00
Total Other Bonuses and Allowances ₱6,986,500.00 ₱7,345,364.00
37
On December 16, 2022, the Office of the President issued Administrative Order
No. 1 which authorizes the grant of SRI at a uniform rate not exceeding
₱20,000.00 for each qualified government employee. The DBM also issued
Budget Circular No. 2022-4 dated December 20, 2022, for the guidelines of the
said grant.
17.3 Employees Future Benefits
The PCGG and its employees contributed to the GSIS in accordance with RA No.
8291. GSIS administers the plan, including payment of pension benefits to
employees to whom the act applies.
17.4 Personnel Benefit Contributions
2021
Particulars 2022
(As restated)
Retirement and Life Insurance Premiums
₱8,672,891.82 ₱8,545,179.28
(RLIP)
PAG-IBIG Contributions 143,357.95 168,703.63
PhilHealth Contributions 1,312,734.15 960,117.17
Employees Compensation Insurance
167,800.00 166,719.35
Premiums
Total Personnel Benefit Contributions ₱10,296,783.92 ₱9,840,719.43
The increase in the Philhealth contributions was due to the issuance of Philhealth
Circular No. 2022- 0010 wherein from three percent premium rate, it increased
to four percent.
17.5 Other Personnel Benefits
2021
Particulars 2022
(As restated)
Terminal Leave Benefits ₱2,513,817.83 ₱3,900,677.05
Other Personnel Benefits 3,105,983.85 881,721.86
Total Other Personnel Benefits ₱5,619,801.68 ₱4,782,398.91
The increase in Other Personnel Benefits was due to monetization of accumulated

sick and vacation leaves and 10 days leave credits totalling ₱3,065,983.85.
18. MAINTENANCE AND OTHER OPERATING EXPENSES
2021
Particulars 2022
(As restated)
Traveling Expenses ₱2,202,702.28 ₱520,529.94
38
2021
Particulars 2022
(As restated)
Training and Scholarship Expenses 2,640,179.78 477,660.99
Supplies and Materials Expenses 8,609,741.22 8,329,004.43
Utility Expenses 4,591,558.73 3,406,594.22
Communication Expenses 1,870,524.68 1,765,223.48
Confidential, Intelligence and Extraordinary
2,061,925.98 1,556,444.35
Expenses
Professional Services 20,508,776.43 35,059,585.26
General Services 9,266,703.54 8,391,198.65
Repairs and Maintenance 1,448,807.90 1,648,801.32
Taxes, Insurance Premiums and Other Fees 1,226,546.69 1,045,527.70
Other Maintenance and Operating Expenses 3,700,089.17 7,860,242.17
Total Maintenance and Other Operating
₱58,127,556.40 ₱70,060,812.51
Expenses
18.1 Traveling Expenses
Traveling expenses amounting to ₱1,968,818.26 and ₱233,884.02 pertains to

local travel and foreign travel, respectively. The increase in travel was due to
resumption of mission orders outside Metro Manila that were restricted or limited
in the last two years due to pandemic.
18.2 Training and Scholarship Expenses
Aside from off-site and in house trainings/seminars attended by employees, team

building and operational planning activities were charged to Training Expense
account.
18.3 Supplies and Materials Expenses

Office Supplies Expenses ₱2,661,188.90 ₱2,578,157.85
Fuel, Oil and Lubricants Expenses 2,299,275.99 1,345,242.08
Semi-Expendable Machinery and
2,008,757.00 3,531,790.71
Equipment Expenses
Semi-Expendable Furniture and
108,390.97 81,247.71
Fixtures Expenses
Other Supplies and Materials
1,532,128.36 792,566.08
Expenses
Total Supplies and Materials
₱8,609,741.22 ₱8,329,004.43
Expenses
39
In 2022, the operation was back to normal which required some functions using
transportation, thereby increasing consumption of fuel. The price of fuel also
attributed to the increase.
The increase in Other Supplies and Materials Expenses was attributed to supplies
needed for various Commission activities conducted.
18.4 Utility Expenses

Water Expenses ₱435,325.65 ₱375,210.37
Electricity Expenses 4,156,233.08 3,031,383.85
Total Utility Expenses ₱4,591,558.73 ₱3,406,594.22
18.5 Communication Expenses

Postage and Deliveries ₱44,832.77 ₱23,458.26
Telephone Expenses 1,531,395.21 1,454,366.67
Internet Subscription Expenses 263,646.92 257,336.05
Cable, Satellite, Telegraph and
30,649.78 30,062.50
Radio Expenses
Total Communication Expenses ₱1,870,524.68 ₱1,765,223.48
18.6 Confidential, Intelligence and Extraordinary Expenses

Extraordinary and Miscellaneous
₱2,061,925.98 ₱1,556,444.35
Expenses
18.7 Professional Services

Legal Services ₱6,324,641.10 ₱22,326,098.40
Consultancy Services 1,752,727.27 3,179,954.55
Other Professional Services 12,431,408.06 9,553,532.31
Total Professional Services ₱20,508,776.43 ₱35,059,585.26
The significant increase in Other Professional Services pertains to payment for

appraisal services for various paintings and other artworks located in Manila and
Tacloban City.
40
18.8 General Services

Janitorial services ₱4,185,419.20 ₱4,165,323.81
Security services 5,081,284.34 4,225,874.84
Total General Services ₱9,266,703.54 ₱8,391,198.65
18.9 Repairs and Maintenance

Repairs and Maintenance -
₱615,802.07 ₱381,986.25
Buildings and Other Structures
46,009.75 40,532.45
Machinery and Equipment
784,526.08 1,189,392.63
Transportation Equipment
2,470.00 36889.99
Furniture and Fixtures
Total Repairs and Maintenance
₱1,448,807.90 ₱1,648,801.32
Expenses
18.10 Taxes, Insurance Premiums and Other Fees

Taxes, Duties and Licenses ₱575,710.71 ₱521,626.82
Fidelity Bond Premiums 276,747.12 299,261.10
Insurance Expenses 374,088.86 224,639.78
Total Taxes, Insurance
₱1,226,546.69 ₱1,045,527.70
Premiums and Other Fees
In 2022 and 2021, the PCGG paid Real Property Taxes for Piedras Petroleum
Company, Inc., a surrendered company, sourced from Fund 151 amounting to
₱488,053.51 and ₱478,077.12, respectively.
18.11 Other Maintenance and Operating Expenses

Advertising Expenses ₱150,111.36 -
Printing and Publication Expenses - ₱151,468.80
Representation Expenses 2,192,427.33 1,009,240.67
Transportation and Delivery 161,260.00 129,360.00
Expenses
Rent/Lease Expenses 492,955.84 683,393.03
Subscription Expenses 155,217.39 149,995.78
Other MOE 548,117.25 5,736,783.89
41
Total Other MOE ₱3,700,089.17 ₱7,860,242.17
In 2021, the Other MOE account includes an amount of ₱5,612,000.00 that

pertains to redemption cost for the two condominium units in Europa
Condominium and Villas in Baguio City subject of Foreclosure Case Nos. 20-
887-S and 20-886-S.
19. NON-CASH EXPENSES

Depreciation ₱671,987.11 ₱1,501,298.18
Amortization 191,844.57 168,570.75
Impairment Loss 364,618,534.91 3,070,013.20
Loss on Sale of Property, Plant and
1,395.00 -
Equipment
Total Non-Cash Expenses ₱365,483,761.59 ₱4,739,882.13
The Impairment Loss pertains to adjustment in the value of shares of stocks which was
booked in Fund 158 under the account Abandoned/ Surrendered Property/Assets
amounting to ₱364,618,534.91 and ₱2,880,682.86 in 2022 and 2021, respectively.
The decrease in the depreciation was due to the capitalization threshold wherein items
below ₱50,000.00 were reclassified to semi-expendable category.
20. NON-OPERATING INCOME
2021 (As
Particulars 2022
restated)
Income from Grants and Donations in
₱450,000.00 -
Kind
Sale of
Garnished/Confiscated/Abandoned/Seized 655,701,000.00 -
Goods and Properties
Sale of Unserviceable Properties 83,888.00 ₱392,555.00
Gains on Sale of PPE 190,366.79 -
Miscellaneous Income 510.01 -
Total Non-Operating Income ₱ 656,425,764.80 ₱392,555.00
The Commission conducted disposal of various unserviceable properties including three

unserviceable motor vehicles through public bidding.
Income from Grants and Donations in Kind account pertains to three motor vehicles
donated from the Office of the President.
42
21. NET FINANCIAL ASSISTANCE/SUBSIDY

Total Notice of Cash Allocation (NCA)
₱183,807,303.00 ₱189,872,237.00
Received
Tax Remittance Advice (TRA) 12,873,941.17 11,583,583.26
Total 196,681,244.17 201,455,820.26
Reversal of Unutilized NCA (1,226,970.78) (13,825,810.34)
Total Subsidy from National
₱195,454,273.39 ₱187,630,009.92
Government Agency
The Subsidy from National Government account includes NCA, lapsed NCA and the
constructive receipt of NCA for TRA under Funds 101 and 151.
22. RECONCILIATION OF NET CASH FLOWS FROM OPERATING

ACTIVITIES TO SURPLUS/(DEFICIT)

Surplus/Deficit for the year ₱1,501,345,552.35 ₱776,113,536.61
Non-cash Movements
Depreciation 671,987.11 1,501,298.18
Amortization 191,844.57 168,570.75
Increase in Impairment Losses 364,618,534.91 3,070,013.20
Increase in Payables 912,239,219.61 28,127,034.77
Loss on Sale of Property, Plant and
1,395.00 -
Equipment
Other Non-operating Income 655,975,764.80 392,555.00
Other Transactions (2,620,934,288.31) (803,556,839.62)
Net Cash Flows from Operating
₱814,110,010.04 ₱5,816,168.89
Activities
23. STATEMENT OF CHANGES IN NET ASSETS/EQUITY
Prior Period Adjustments/Unrecorded Income/Expenses

Fund 101 (₱3,484,287.19) -
Fund 151 272,502.95 -
Fund 158 26,121,643.94 -
Net Adjustments (Increase) ₱22,909,859.70 -
43
Changes in Net Assets/Equity are as follows:
Adjustment of Net
Total Recognized
Revenue Recognized 2022
Revenue and Expense
Directly in Net Surplus/(Deficit)
for the Period
Assets/Equity
Fund 101 (₱2,399,971.01) ₱5,110,435.85 ₱ 2,710,464.84
Fund 151 (2,863,978.73) 10,995,872.82 8,131,894.09
Fund 158 (1,968,309,785.27) 1,485,239,243.68 (483,070,541.59)
Total (₱1,973,573,735.01) ₱1,501,345,552.35 (₱472,228,182.66)
The Adjustment of Net Revenue Recognized Directly in Net Assets/Equity net balance
of (₱1,973,573,735.01) consists of the adjustments made in closing the Cash
Treasury/Agency Deposit and Cash MDS accounts, and elimination entries of Intra-
Agency Receivables and Intra-Agency Payables accounts during the preparation of
Consolidated FS. In the case of Fund 184, intra-fund accounts were directly adjusted
under Other Payables account.
Particulars Fund 101 Fund 151 Fund 158 Fund 184

Due from Other Funds ₱258,489.73 ₱801,589,306.68 ₱19,345,437.30
Due to Other Funds (₱19,603,927.03) (801,589,306.68)
Adjusted Directly in Net
Assets/Equity /Other (₱19,603,927.03) ₱258,489.73 ₱801,589,306.68 (₱782,243,869.38)
Payables
24. RELATED PARTY TRANSACTIONS
24.1 Key Management Personnel
The key management personnel of the Commission is composed of the

Chairperson and two Commissioners who supervise and manage the overall
operation and administration of the Commission, together with four Directors,
under the following departments:
1. Finance and Administration Group

2. Asset Management Group
-Surrendered Assets Group
-Sequestered Assets Group
3. Research and Development Group
24.2 Key Management Compensation
The aggregate compensation received by the Commission’s top three positions

(Chairman, Commissioners and Directors) receiving remuneration is as follows:
44
Aggregate
Particulars
Remuneration
Salaries and Wages ₱14,159,628.00
Other Compensation 4,156,188.00
Personnel Benefit Contributions/Others 1,455,635.04
Total Personnel Benefits ₱19,771,451.04
45

COA AAR 2022 - PCGG - Notes To Financial Statement

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COA AAR 2022 - PCGG - Notes To Financial Statement

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PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT

Notes to Financial Statements

1. GENERAL INFORMATION/AGENCY PROFILE

The financial statements (FS) of the Presidential Commission on Good Government

a. The recovery of ill-gotten wealth accumulated during the Marcos regime.

a. Fund 101 which comprises the appropriation by the National Government

b. Fund 151 which comprises the appropriation for administration of assets as

d. Fund 184 comprises collections and disbursements/disposition of funds

2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION OF

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 Basis of accounting

The FS are prepared on an accrual basis in accordance with the IPSAS.

3.2 Financial instruments

a. Financial Assets (FAs)

Initial recognition and measurement

FAs within the scope of IPSAS 29 - Financial Instruments: Recognition

The subsequent measurement of FAs depends on their classification.

The Commission derecognizes a FA or, where applicable, a part of a FA or

The Commission assesses at each reporting date whether there is objective

b. Financial Liabilities (FLs)

Initial recognition and measurement

The Commission’s FLs includes trade and other payables.

The measurement of FLs depends on their classification.

A FL is derecognized when the obligation under the liability is discharged

When an existing FL is replaced by another from the same lender on

3.3 Cash and Cash Equivalents

Receivables are initially measured at fair value. Subsequently, they are

Inventory is measured at cost upon initial recognition. To the extent that

Inventories are recognized as an expense when deployed for utilization or

An item is recognized as PPE if it meets the characteristics and recognition

The characteristics of PPE are as follows:

An item of PPE is recognized as an asset if:

 It is probable that future economic benefits or service potential

An item recognized as PPE is measured at cost.

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

Cost includes the following:

 its purchase price, including import duties and non-refundable purchase

When significant parts of PPE are required to be replaced at intervals, the

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

Initial Recognition of Depreciation

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

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

The straight-line method of depreciation shall be adopted unless another

Estimated Useful Life

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

The Commission derecognizes items of PPE and/or any significant part of an

3.7 Intangible Assets

Recognition and Measurement

Intangible assets acquired separately are initially recognized at cost.

Subsequent Expenditure on an Acquired In-process Research and

Subsequent expenditure on an in-process research or development project

 Recognized as an expense when incurred if it is research expenditure;

Internally Generated Intangible Assets

Internally generated intangible assets, excluding capitalized development

Expenditure on an intangible item shall be recognized as an expense when it is

The straight-line method is adopted in the amortization of the expected pattern

Gains or losses arising from derecognition of an intangible asset are measured

It is amortized over the period of expected future benefit.

3.8 Changes in Accounting Policies and Estimates

The Commission recognizes the effects of changes in accounting policy

It recognizes the effects of changes in accounting estimates prospectively by

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

3.9 Foreign Currency Transactions