Commission on Audit

Notes to the Consolidated Financial Statements

For the year ended December 31, 2017

1. General Information/Agency Profile

The Consolidated Financial Statements of the Commission on Audit were authorized

for issue on February 14, 2018 as shown in the Statement of Management
Responsibility for Financial Statements signed by the Director of the Accounting
Office, Planning, Financial and Management Sector (PFMS) and the Assistant
Commissioner, PFMS.

The Commission on Audit is the Philippines’ Supreme Audit Institution (SAI).

Audit service started in the Philippine Government as early as in 1593, during the
Spanish regime. It was formally established by the Americans on May 8, 1898.
Since then, it had undergone several jurisdictional and organizational reforms under
the Philippine Constitutions of 1935, 1973 and 1987.

Section 2, Article IX-D of the 1987 Philippine Constitution vests COA with the
powers, authorities and duties which are further defined and enumerated in
Presidential Decree No. 1445, otherwise known as the Government Auditing Code of
the Philippines.

The appropriation of the Commission for its annual operating requirements is funded
by the General Appropriations Act (GAA), and utilization of the funds is in
accordance with the GAA, budget circulars and other pertinent laws, rules and
regulations.

The 1987 Constitution grants fiscal autonomy to the COA. Section 5, Article IX-A,
Common Provisions states: “The Commission shall enjoy fiscal autonomy. Their
approved annual appropriations shall be automatically and regularly released.”
COA is a member of the Constitutional Fiscal Autonomy Group (CFAG). It is
envisioned in the Constitution that fiscal autonomy guarantees each member of the
CFAG the full management and control of its financial affairs as well as flexibility to
allocate, administer and utilize its resources with the wisdom and dispatch that its
official needs require.

COA is a collegial body whose powers, duties and functions are exercised by the
Commission Proper (CP) composed of a Chairman and two Commissioners. The
Chairman is the Presiding Officer of the CP and the Chief Executive Officer of COA.

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The entire scope of the Commission’s functions encompasses the audit and settlement
of funds and properties of all accountable officers; the examination and inspection of
the books of accounts, records, and relevant documents; the examination of accounts
and settlement of all debts and claims due or owing to the government; the audit of
procedures, systems and controls; the promulgation of accounting and auditing rules
and regulations; the maintenance of the general accounts of the government and the
preservation and safekeeping of transaction vouchers relative to government
endeavours.

The jurisdiction of the Commission extends to all branches of government, its

subdivisions, agencies or instrumentalities, including government-owned and/or
controlled corporations (GOCCs) with original charters, constitutional bodies,
commissions and offices that have been granted fiscal autonomy under the
Constitution, autonomous state colleges and universities, other GOCCs and their
subsidiaries, local government units (LGUs) and such other non-governmental
entities receiving subsidy or equity from the government.

The Commission revised its Vision and Mission Statements through COA Resolution
No. 2016-011 on June 28, 2016. The revised Vision and Mission Statements not only
highlighted COA’s mandate as an independent institution guarding public resources
but also as an enabling partner of government in the delivery of public service. COA
also acknowledged its partnership with various stakeholders with the end goal to
benefit the Filipino people.

The COA’s current Strategic Plan covering 2016 to 2022 is its strategic direction in
the next seven years as embodied in the 2016-2022 COA Strategic Plan formally
adopted through COA Resolution No. 2016-015 dated September 26, 2016. The
Commission, under Chairperson Michael G. Aguinaldo, focused on the six strategic
goals: Create Positive Impact, Empower and Enable Agencies; Improve Delivery and
of High Quality, Fair and Timely Audits; Increase Stakeholder Ownership and
Understanding; Strengthen Capacity and Capability; and Enhance Support
Infrastructure.

On December 21, 2017, The Commission adopted the International Organization of

Supreme Audit Institutions (INTOSAI) Supreme Audit Institution Performance
Measurement Framework (SAI PMF) to measure the performance of the Commission
on Audit.

COA Central Office (CO) is located in Commonwealth Avenue, Quezon City. The
Commission Proper is the policy making body supported by its Public Sector
Accounting Standards Board, Public Sector Auditing Standards Board, Commission
Secretariat and Assistant Commissioners Group. The Commission has audit and
support to audit sectors as well as sixteen (16) Regional Offices (ROs) as of
December 31, 2017.

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

The accompanying consolidated 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.

The Central Office financial statements were consolidated with the Regional Offices
financial statements.

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).

3.2 Financial instruments

a. Financial assets

Initial recognition and measurement

Financial assets within the scope of PPSAS 29 Financial Instruments:

Recognition and Measurement are classified as financial assets at fair
value through surplus or deficit and receivables. The Commission on
Audit determines the classification of its financial assets at initial
recognition.

The Commission’s financial assets include cash and other receivables.

b. Financial liabilities

Initial recognition and measurement

Financial liabilities within the scope of PPSAS 29 are classified as

financial liabilities at fair value through surplus or deficit. The
Commission determines the classification of its financial liabilities at
initial recognition.

The Commission’s financial liabilities include accounts payables and due

to officers and employees.

3.3 Cash and cash equivalents

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 Cash and cash equivalents comprise cash on hand and cash in bank. For the
purpose of the consolidated statement of cash flows, cash and cash equivalents
consist of cash and short-term deposits as defined above.

3.4 Inventories

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

inventory was received through non-exchange transactions (for no cost or for
a nominal cost), the cost of the inventory is its fair value at the date of
acquisition.

Inventories are valued using the moving-average method. Receipts of

delivered inventories are recorded based on the Inspection and Acceptance
Report while issuances are recognized based on the Report of Supplies and
Materials Issued. Supplies and materials purchased for inventory purpose are
recorded using the Perpetual Inventory Method except those supplies and
materials purchased out of Petty Cash Fund for immediate use or on
emergency cases which are charged directly to appropriate expense account.

The Commission’s inventories include assets:

 In the form of materials or supplies to be consumed in the production process;
 In the form of materials or supplies to be consumed or distributed in the
rendering of services;
 Held for sale or distribution in the ordinary course of operations; or
 In the process of production for sale or distribution.

3.5 Semi-Expendable Property

Tangible items below the threshold of P15,000.00 are accounted as Semi-

Expendable Property. The tangible items were recognized as expense upon
issuance to the end users.

3.6 Property, Plant and Equipment

3.6.1 Recognition

An item is recognized as property, plant, and equipment (PPE) if it meets the

characteristics and recognition criteria as a PPE under PPSAS 26.

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 purpose; and
• are expected to be used during more than one reporting period.

An item of PPE is recognized as an asset if:

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 • it is probable that future economic benefits or service potential associate
with the item will flow to the entity; and
• the cost or fair value of the item can be measured reliably.

3.6.2 Measurement at Recognition

An item recognized as PPE is measured at cost. 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; and
• expenditure that is directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the
manner intended by management.

3.6.3 Measurement after Recognition

After recognition, all property, plant and equipment are stated at cost less
accumulated depreciation and impairment losses.

3.6.4 Depreciation

The straight line method of computing the depreciation of an asset is adopted.

Depreciation of an asset begins when it is available for use such as it is in the
location and condition necessary for it to be capable of operation in the
manner intended by the Commission.

The Schedule on the Estimated Useful Life of PPE by classification

prescribed by COA is used. The Commission uses a residual value equivalent
to at least five percent (5%) of the cost of the PPE.

3.6.5 Derecognition

Fully-depreciated but still serviceable PPE and those serviceable but partially
damaged remained in the PPE and provided with impairment. Expenditures
incurred after the PPE have been put into operation, such as repairs and
maintenance, are normally charged to operations.

3.7 Payables

Payables are recognized and recorded in the books only upon acceptance of
the goods/inventories/other assets and rendition of services.

3.8 Intangible Assets

Recognition and Measurement

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 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.

3.9 Revenue from Exchange Transactions

Measurement of Revenue
Revenue was measured at the fair value of the consideration received or
receivable.

Rendering of Services

The Commission on Audit recognizes revenue from rendering of audit

services, adjudication of cases/appeals, training/development of personnel and
rental of facilities.

3.10 Budget Information

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

government website. A separate Statement of Comparison of Budget and
Actual Amounts (SCBAA) was prepared. since the Budget and the
consolidated 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. Explanatory comments are
provided in the notes to the annual financial statements.

4. Changes in Accounting Policies

The Commission on Audit adopted PPSAS which replaced the existing standard. The
Philippine Government Chart of Accounts prescribed under COA Circular No. 2004-
008 dated September 20, 2004, as amended, was converted to the Revised Chart of
Accounts as required in paragraph 2.0 of COA Circular No. 2013-002 dated January
30, 2013. The Unified Accounts Code Structure (UACS), a government-wide coding
framework, was adopted to provide a harmonized budgetary and accounting code
classification that will facilitate the efficient and accurate financial reporting and
actual revenue collections and expenditures compared with programmed revenues
and expenditures, in compliance with Joint Circular No. 2013-1 dated August 6, 2013
of the Commission on Audit, Department of Budget and Management and
Department of Finance. Moreover, the Government Accounting Manual for Use of
all National Government Agencies prescribed under COA Circular 2015-007 dated
October 22, 2015 is now on its 2nd year of implementation.

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5. Prior Period Adjustment

Fundamental adjustments affecting nominal accounts in prior years were effected

using the Accumulated Surplus/Deficit account. The Statement of Financial
Performance for CY 2016 was restated to this effect. Adjustments affecting current
year’s operations are charged to the current year’s accounts.

6. Cash and Cash Equivalents

PARTICULARS 2017 2016 (Restated)

Cash - Collecting Officers 381,969.48 170,618.49
Petty Cash 350,062.33 270,982.22
Cash in Bank - Local Currency, Current Account 1,094,916,995.65 1,110,127,861.25
Cash in Bank - Foreign Currency, Savings Account 99,304,627.49 96,689,571.47
Cash - Treasury/Agency Deposit, Trust 547,794.42 547,794.42
TOTAL 1,195,501,449.37 1,207,806,827.85

6.1 Cash – Collecting Officers represent collections of filing and legal research
fees made on the last working day of December 2017 which was deposited in
January 2018.

6.2 Petty Cash includes balance of petty cash funds for MOOE as at year-end
which was replenished in January 2018.

6.3 Cash in Bank – Local Currency, Current Account The Commission

maintain bank accounts per fund category defined under COA, DBM and
DOF Joint Circular No. 2013-1 dated August 6, 2013 which consists of the
following:

Includes balance of cash transferred to ATM Payroll

Account in CO and fund transfers to ROs to cover
Regular Agency
352,896,157.98 payment of construction/ renovation of buildings of
Fund
COA ROs, construction of Provincial Satellite Audit
Office Projects and MOOE.
Internally Includes audit fees from special audit undertaken and
Generated 572,247,089.66 other receipts collected in CO and audit fees from
Income Fund Water Districts in ROs.
Business Type Includes training/seminar fees and receipts from
79,272,262.31
Income Fund dormitory operations in CO and ROs.
Includes filing and legal research fees and other trust
Trust Fund 90,501,485.70 receipts such as honoraria, sale of bid documents and
performance bond in CO and ROs.

6.4 Cash in Bank – Foreign Currency, Savings Account includes funds

transferred from/remitted by international organizations like United Nations
and Association of Supreme Audit Institutions (ASOSAI) and refund of travel
allowances of COA officials in participating to conferences/trainings

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 conducted by Supreme Audit Institutions, international organizations and
audit of Foreign-based Government Agencies (FBGAs).
6.5 Cash – Treasury/Agency Deposit, Trust pertains to deposit of the refund of
cash advance for Kreditansalt Fur Wiederaufbau – Guidelines on the Audit of
Foreign-Assisted Projects (KfW-GAFAP) with the Authorized Government
Depository Bank on December 29, 2015 in the COA CO.

7. Receivables

7.1 Inter-Agency Receivables

Amount
PARTICULARS
2017 2016 (Restated)
Due from Government-Owned and/or Controlled
80,585,468.27 71,837,439.36
Corporations (GOCCs)
Due from National Government Agencies
2,669,580.38 10,342,272.30
(NGAs)
Due from Local Government Units (LGUs) 439,253.20 128,632.20
TOTAL 83,694,301.85 82,308,343.86

7.1.1 Due from GOCCs pertains to audit, seminar and other fees to be collected
from Water Districts and other GOCCs billed by the COA CO and ROs
amounting to P15,642.51 and P80,569,825.76, respectively. The restated
amount for CY 2016 was increased by P6.85 million representing collections
from cost of audit services rendered in 2016.

7.1.2 Due from NGAs includes advance payments made to the Procurement
Service (PS) of the Department of Budget and Management (DBM) for
supplies/ materials amounting to P2,667,580.38 and to the National Printing
Office for publication orders amounting to P2,000.00. The restated amount for
CY 2016 was increased by P70,266.69 coming from the Regional Offices.

7.1.3 Due from LGUs pertains to seminar and other fees to be collected from
LGUs by the COA ROs amounting to P439,253.20. The amount comprises of
seminar fees on Barangay Financial Management conducted by Regions 8, 9
and 11 which are expected for collection in the 2nd quarter of CY 2018.

7.2 Other Receivables

Amount
PARTICULARS
2017 2016 (Restated)
Due from Officers and Employees 4,389,327.88 3,206,296.25
Receivables - Disallowances/Charges 400,682.81 441,789.21
Due from Non-Government Organizations/People's
Organizations
43,690.00 43,690.00
Other Receivables 2,723,906,159.50 1,685,984,649.81

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 TOTAL 2,728,739,860.19 1,689,676,425.27

7.2.1 Due from Officers and Employees pertains to COA bills for overpayment of
salaries personnel benefits, statutory contributions and under deduction of tax
of active and inactive employees in the COA CO and ROs amounting to
P2,826,487.92 and P1,562,839.96, respectively. Some of these balances were
continuously deducted from the salaries of active employees. The restated
amount for CY 2016 has a net increase of P919.35 of which there is an
increase of P2,720.00 for CO and a decrease by P1,800.65 for ROs.

7.2.2 Receivables – Disallowances/Charges pertains to the audit disallowances/

charges which are final and executory.

7.2.3 Due from Non-Government Organizations/People's Organizations

pertains to the receivable from the Association of Local Government
Accountants in Negros Occidental (ALGANO) representing the cost of 257
sets of Barangay Training Manual paid at P170/set by COA RO No. VI.

7.2.4 Other Receivables include receivables from officials and employees who are
already separated from the service due to resignation, retirement, absence
without leave and dropped from the roll, canteen concessionaires, and other
entities/agencies/debtors; and savings in allotment and cash allocation
authorized and transferred to CFAG Fund in the exercise of the Commission’s
fiscal autonomy. Demand letters were sent to enforce collection of
overpayments of salaries and allowances. The restated amount for CY 2016
was increased by P26.95 million which comprises of, among others, P16.96
million unused seminar fees transferred to IGI CO by the Regional Office and
the P6.80 million other service income/cost of audit services of prior year
collected in 2016.

8. Inventories

Balance as of Increase/ Decrease/ Balance as of

PARTICULARS Purchases Issuances
1/1/2017 12/31/2017
Office Supplies Inventory 17,151,260.89 35,626,446.47 33,896,326.53 18,881,380.83
Non-Accountable Forms Inventory 1,336.04 – – 1,336.04
Medical, Dental and Laboratory Supplies
3,500.00 2,291,181.53 2,270,801.28 23,880.25
Inventory
Construction Materials Inventory 253,454.71 202,780.60 90,898.91 365,336.40
Other Supplies and Materials Inventory 330,676.50 1,509,927.33 1,521,404.53 319,199.30
Semi-Expendable Machinery 1,389,266.14 10,801,552.10 9,695,749.22 2,495,069.02
Semi-Expendable Furniture, Fixtures and
4,010,361.04 10,227,626.33 6,465,550.78 7,772,436.59
Books
TOTAL 23,139,855.32 60,659,514.36 53,940,731.25 29,858,638.43

Inventory items below the capitalization threshold of P15,000.00 were reclassified

from PPE account to Semi-expendable Property account in accordance with COA

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 Circular 2015-007. The restated amount for CY 2016 decreased by P1.35 million
which was mainly from the decrease in Office Supplies Inventory amounting to P1.25
million.
9. Investments

Other Investments balance of P1,798,120.00 represents the ten percent preferred

shares with MERALCO stocks which was required in the application for electric
service connection.

10. Property, Plant and Equipment

Carrying Amount
Increase / Decrease / Impairment Carrying Amount
PPE As of 1/1/2017 Depreciation
Acquisitions Disposals Loss As of 12/31/2017
(as restated)
Land 45,472,279.23 1,125,011.43 4,351,339.37 – – 42,245,951.29
Land Improvements 17,404,310.32 10,943,124.91 270,135.13 2,544,423.75 – 25,532,876.35
Buildings and Other
869,620,777.92 356,106,116.03 14,613,035.56 54,016,889.98 – 1,157,096,968.41
Structures
Machinery and
242,702,945.24 128,442,195.05 33,867,107.05 66,286,385.73 465,975.21 270,525,672.30
Equipment
Transportation
65,220,809.33 11,865,335.09 7,479,863.96 13,056,251.50 – 56,550,028.96
Equipment
Furniture, Fixtures
9,514,874.02 6,782,707.22 2,616,376.08 1,560,056.38 – 12,121,148.78
and Books
Construction in
321,360,144.98 202,587,188.45 194,792,369.12 – – 329,154,964.31
Progress
Heritage Assets 2,613,259.00 – – – – 2,613,259.00
Other PPE 493,748.29 97,023.25 127,195.44 75,937.30 – 387,638.80
TOTAL 1,574,403,148.33 717,948,701.43 258,117,421.71 137,539,944.64 465,975.21 1,896,228,508.20

Gross Cost Accumulated Carrying Amount

PPE Acc. Impairment Loss
As of 12/31/2017 Depreciation As of 12/31/2017

Land 42,245,951.29 – – 42,245,951.29

Land Improvements 69,487,982.85 43,955,106.50 – 25,532,876.35
Buildings and Other
1,793,828,466.92 629,336,868.22 7,394,630.29 1,157,096,968.41
Structures
Machinery and Equipment 776,791,991.00 504,571,227.62 1,695,091.08 270,525,672.30
Transportation Equipment 184,115,618.30 127,565,589.34 – 56,550,028.96
Furniture, Fixtures and –
26,577,655.42 14,456,506.64 12,121,148.78
Books
Construction in Progress 329,154,964.31 – – 329,154,964.31
Heritage Assets 2,613,259.00 – – 2,613,259.00
Other PPE 1,046,638.20 658,999.40 – 387,638.80
TOTAL 3,225,862,527.29 1,320,544,297.720 9,089,721.37 1,896,228,508.20

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10.1. Land account amounting to P42,245,951.29 pertains to parcels of land titled
in the name of COA CAR and ROs No. I, II, VI, VII, VIII, IX, X, XI, XII and
XIII. The net increase was due to the acquisition of new lot in COA Region
VIII and donation to the National Museum of the lot and building of the old
COA Regional Office VI amounting to P1,125,011.43 and P4,351,339.37,
respectively. The parcel of land allocated to and occupied by the COA CO
along Commonwealth Avenue in Quezon City has not been recorded in the
books as the Certificate of Title has not been transferred to COA. The 10-
hectare lot is part of the vast land reserved for the National Government
Center Site per Proclamation No. 1826 dated March 5, 1979. There is a
pending petition numbered LRC Case No. Q20521 for the Judicial
Reconstitution of the Original and Duplicate Owner’s copies of Transfer
Certificate of Title over lot 41-C-3-A, PSD 300209 (RS-000-001200) wherein
the lot of COA is an integral part. Said petition was filed at the Regional Trial
Court, National Capital Region on September 30, 2005 by the National
Government Center Administration Committee, represented by Hon. Lucile P.
Ortile in her capacity as Secretary General of the Housing and Urban
Development Coordinating Council (HUDCC). The Office of the Solicitor
General (OSG) is handling the petition and is representing COA.

10.2 Buildings and Other Structures include office buildings, provincial satellite
audit offices (PSAO), hostels, dormitories, motor pool, covered
courts/gymnasiums, shaded garage and like structures of COA nationwide
with a total carrying value of P1,157.10 million. At present COA Region IV-B
has no building hence, it shares office with COA Region IV-A on the office
building located at the COA CO Compound. The administrative seat of COA
Negros Island Region (NIR) is at the PSAO building in Bacolod City.

10.3 Construction in Progress pertains to the construction/renovation of COA

Buildings in the Central Office and PSAOs and other structures implemented
by the Regional Offices amounting P16.24 million and P312.92 million,
respectively.

10.4 Heritage Assets - Works of Arts and Archaeological Specimens consists of

artworks in the form of paintings and carvings held by the Commission for
cultural and historical significance.

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11. Intangible Assets

2017
PARTICULARS
Computer Software Total
Carrying Amount, January 1, 2017 123,326,034.09 123,326,034.09
Additions-Purchased/Acquired thru exchange or
5,997,224.87 5,997,224.87
non-exchange transaction
Carrying Amount, December 31, 2017 (As per
129,323,258.96 129,323,258.96
Statement of Financial Position)

Gross Cost (Balance per Statement of Financial

129,323,258.96 129,323,258.96
Position)
Less: Accumulated Amortization (including
– –
accumulated impairment loss)
Carrying Amount, December 31, 2017 (As per
129,323,258.96 129,323,258.96
Statement of Financial Position)

Intangible Assets with a balance of P129.32 million pertains to Computer Software

Account which includes the cost of installation and configuration of the COA Legal
Information Archive (LIA) and Website in the amount of P4.00 million and various
computer software and licenses in the amount of P125.32 million.

12. Other Assets

2017 2016 (Restated)

PARTICULARS
Current Non-Current Current Non-Current
Advances to Contractors 11,529,183.88 – 22,484,183.15 –
Advances to Officers and
5,710,390.39 – 7,233,536.68 –
Employees
Prepaid Insurance 5,421,224.82 – 3,560,975.37 –
Advances for Payroll 554,079.95 – 388,845.14 –
Other Prepayments 538,655.31 – 58,825.38 –
Advances to Special
239,887.17 – 2,629,599.75 –
Disbursing Officer
Other Deposits 30,000.00 – 30,000.00 –
Guaranty Deposits – 4,623,183.49 – 3,857,960.04
Other Assets – 231,730,410.60 – 249,236,114.03
TOTAL 24,023,421.52 236,353,594.09 36,385,965.47 253,094,074.07

12.1 Advances to Contractors pertain to the 15 percent mobilization fee for the
construction of PSAOs and other structures. The restated amount for CY 2016
was decreased by P204,430.69 from the restatement made by Regional
Offices.

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12.2 Advances to Officers and Employees pertains to unliquidated cash advances
of various officials and personnel for international conferences/meeting and
audit of Foreign-Based Government Agencies (FBGAs), local travel and other
expenses. The restated amount for CY 2016 was decreased by P7.09 million
due to liquidations made by Officers and Employees of CO and ROs by P6.00
million and P1.09 million, respectively.

12.3 Prepaid Insurance pertains to the unapplied portion of insurance of

buildings, motor vehicles and other properties with the Government Service
Insurance System (GSIS).

12.4 Advances for Payroll includes advances for payment of services, overtime
and other services of job order personnel for the month of December 2017.
The restated amount was increased by P204,953.76 made by the respective
COA Regional Offices for services rendered by Job Order personnel.

12.5 Other Prepayments pertains to unexpired portion on the renewal of

subscription for the compilation of Laws and Jurisprudence for the Libraries
at the COA CO and unexpired portion of subscriptions to internet, fidelity
bond premiums and various journals, magazines and other library materials
which are not yet due or served at the ROs.

12.6 Advances to Special Disbursing Officer pertains to unliquidated advances

granted to accountable officers for conferences/trainings, extraordinary and
miscellaneous expenses and other expenses for special purpose/time-bound
undertakings. The restated amount has a net increase of P244,590.00, of
which, CO was decreased by P601,200.00 representing liquidations made by
SDOs while increased in the ROs by P845,790.00.
12.7 Guaranty Deposits consists of deposits for the services of the following:
Central Office:
Manila Electric Railroad and Light Company (MERALCO) 2,083,810.00
University Vicars Service Center 190,000.00
Philippine Postal Corp. 100,500.00
Maynilad Water Services, Inc. 33,625.60
New York Telephone Co. 6,825.00
Manila Water and Sewerage System (MWSS) 6,000.00
Philippine Long Distance Telephone Company (PLDT) 5,200.00
Others 8,450.00
SubTotal 2,434,410.60

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 Regional Offices:
Maynilad Water Services, Inc. (Region IV-A) 9,000.00
Albay Power and Energy Corporation (Region V) 79,131.48
Albay Electric Cooperative (Region V) 127,573.67
Visayan Electric Company (Region VII) 698,162.86
Bohol Light Co. Inc. (Region VII) 72,962.46
(Region IX) 68,845.00
Iligan Light and Power, Inc. (RO X) 108,206.95
Davao Light and Power Co., Inc. (RO XI) 378,039.32
Davao del Norte Electric Cooperative, Inc. (RO XI) 646,851.15
SubTotal 2,188,772.89
Total 4,623,183.49
12.8 Other Assets includes PPE that became unserviceable, damaged and obsolete
and awaiting disposal. The restated amount was decreased by P101,261.36
made at the Regional Offices.

13. Financial Liabilities

Amount
PARTICULARS
2017 2016 (Restated)
Accounts Payable 51,097,503.80 60,916,604.54
Due to Officers and Employees 19,465,490.29 65,112,309.67
TOTAL 70,562,994.09 126,028,914.21

13.1 Accounts Payable includes accrued claims of various creditors for the
purchase of supplies and materials and unreleased checks as of December 31,
2017. The unreleased checks for which a Journal Entry Voucher was drawn to
restore the cash equivalent and to recognize appropriate payable/liability
account, pursuant to Government Accountancy Sector Circular Letter No.
2002-001 dated December 16, 2002, shall be reversed in the ensuing year. The
restated amount was increased by P17.38 million which was attributed to the
late or delayed submission of claims for CY 2016 MOOE – (e.g. Training
expenses, fuel and oil expenses, electricity bills, telephone expenses,
professional services, rent/lease expenses, subscriptions and other
maintenance and operating expenses) of the Central Office and Regional
Offices by P16.12 million and P1.26 million, respectively.

23
 13.2 Due to Officers and Employees includes accrued salaries and other
personnel services, overpayment of bills, excess refund of cash advance,
unreimbursed traveling and training expenses, excess withholding taxes in
prior years, cancellation of stale checks for replenishment and unreleased
checks as at year-end. The restated amount was increased by P47.26 million
which was attributed to the late or delayed submission of claims for CY 2016
salaries, other compensation, personnel benefits, travelling expenses and
reimbursable representation and transportation expenses at the Central Office
and Regional offices by P46.18 million and P1.08 million, respectively.

14. Inter-Agency Payables

Amount
PARTICULARS
2017 2016 (Restated)
Due to BIR 104,886,613.55 68,072,225.93
Due to NGAs 2,656,175.63 2,548,248.56
Due to GSIS 2,123,692.88 4,019,717.95
Due to PhilHealth 122,714.43 192,426.47
Due to GOCCs 89,036.59 133,996.71
Due to Pag-IBIG 58,107.12 144,134.93
Due to LGUs 743.24 1,256.39
TOTAL 109,937,083.44 75,112,006.94

14.1 Due to BIR balance was remitted in January 2018. The Commission
withholds and remits applicable taxes imposed under the National Internal
Revenue Code and submits the quarterly lists of government
purchases/contracts for services for tax purposes in compliance with
Memorandum Order No. 219 issued by the President of the Philippines. The
amount restated was decreased by P235,902.64 made by Regional Offices.

14.2 Due to NGAs includes amounts transferred from the Department of Budget
and Management (DBM) for the enhancement of eNGAS and eBudget System
to adopt to the UACS for NGAs and conduct of seminar on Philippine
Government Internal Audit Manual (PGIAM) amounting to P1.92 million,
collected legal research fees due to University of the Philippines (UP) in
accordance to RA3870 amounting to P491,013.19, and unreleased checks as
of December 31, 2017.
14.3 Due to GSIS, Pag-IBIG and PhilHealth are mandatory contributions and
other deductions from employees’ salaries for the month of December 2017.
These were remitted to the concerned agencies in January 2018. The restated
balance was increased by P1.22 million for GSIS, P45,625.00 for Philhealth
and P15,100.00 for Pag-IBIG which was attributed to the late submission of
claims at the Central Office.

24
 14.4 Due to GOCCs includes amounts of rentals for the use of facilities of
GOCCS. The restated amount was increased by P120,000 for the training
rooms as venue of three classes for PPSAS and RCAs conducted for auditors
and employees of Government Corporations.

15. Trust Liabilities

Amount
PARTICULARS
2017 2016 (Restated)
Trust Liabilities 56,696,445.86 50,695,638.68
Guaranty / Security Deposits Payable 28,988,047.97 23,811,177.45
TOTAL 85,684,493.83 74,506,816.13

15.1 Trust Liabilities includes, among others, proceeds from sale of bid
documents to contractors for the construction of PSAOs. The restated amount
for CY 2016 was increased by P19,925.37 made by Regional Offices.

15.2 Guaranty/Security Deposits Payable pertains to the performance/security

bond paid by bidders to participate in the biddings conducted for the
procurement of various goods and services and for the construction/renovation
of buildings. Significant increase in this account includes retention money
withheld from payments of progress billings of contractors for ongoing
projects in the COA ROs. The restated amount for CY 2016 was decreased by
P490,737.72 in the Regional Offices.

16. Other Payables

Other Payables include amounts withheld/deducted from the salaries of COA

officials and employees for the month of December 2017 with a balance of P250.39
million which was remitted in January 2018 to the COA Multipurpose Cooperative,
COA Retirees and Employees Multi-Purpose Cooperative, Savings and Loans
Association of Government Auditors, Inc., and other financial institutions servicing
COA employees, as payment of loans and contributions. The restated amount for CY
2016 was increased by P4.27 million, of which P1.33 million was from Central Office
and P2.94 million from Regional offices which was attributable to the late submission
of DVs for prior year claims.

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17. Service and Business Income

PARTICULARS 2017 2016 (Restated)

Service Income:
Legal Fees 10,126,924.46 11,021,942.47
Other Service Income 432,237,560.67 838,340,770.28
Sub-Total 442,364,485.13 849,362,712.75
Business Income:
Seminar/Training Fees 55,937,125.65 98,781,475.03
Rent/Lease Income 3,931,491.46 5,055,816.24
Income from Hostels/Dormitories and Other Like Facilities 16,609,894.34 16,149,647.60
Income from Printing and Publications 2,065,507.00 3,190,102.00
Interest Income 1,294,545.45 1,828,710.34
Other Business Income 144,504.70 144,492.20
Sub-Total 79,983,068.60 125,150,243.41
TOTAL 522,347,553.73 974,512,956.16

17.1 Legal Fees pertain to filing fees collected during the year pursuant to COA
Resolution No. 2013-016 dated August 23, 2013. The restated amount was
decreased by P1,623.38 in the Central Office.

17.2 Other Service Income includes audit fees from other NGAs, Water Districts,
GOCCs, and some international organizations such as AusAID and UNDP.
The restated amount was increased by P11.80 million which was attributed to
the collection of costs of special audits rendered in 2016 to government
agencies and subsidiaries. The significant decrease in the account for the year
ended December 31, 2017 is mainly due to the decrease in the collection of
service income amounting to P792.46 million from 64 GOCCs in 2016 to
P385.18 million from 42 GOCCs in 2017 due to financial difficulties of other
GOCCs.

17.3 Seminar/Training Fees are fees received for the conduct of seminars/
trainings/workshops. The restated amount for CY 2016 has a net increase of
P14.97 million due to the transfer to COA CO Internally Generated Income
Fund of the unutilized training fees from Business Type Income Fund of COA
CO & ROs amounting to P17.58 million and reduction of P2.61 million by the
ROs. The decrease of P42.84 million was shared by CO and ROs with P17.91
million and P24.93 million, respectively due to scheduled trainings on
ARDIS, PPSAS and eNGAS and for agency personnel in the 3 rd and 4th
quarters.

17.4 Rent/Lease Income consists of rental income from office building, canteen
and other facilities. The restated amount was increased by P985,502.61 caused
by the collection of rental fees from SET, HRET, LBP, PNB, PPC and
concessioners at the Central Office canteen.

26
 17.5 Income from Hostels/Dormitories and Other Like Facilities consists of
fees charged for the use of dormitory facilities in CO and ROs at the rates of
P200.00 to P500.00 per day for COAns and P700.00 to P900.00 per day for
non-COAns. The restated amount for CY 2016 was increased by P22,800.00
in Regional Offices.

17.6 Income from Printing and Publications are income from the sale of
manuals on Philippine Public Sector Accounting Standards (PPSAS), Property
and Supply Management System (PSMS), Revised Chart of Accounts (RCA),
Government Accounting Manual (GAM) and other manuals/handbooks. The
restated amount for CY 2016 was decreased by P175,593.00.

17.7 Interest Income refers to the interest earned (net of withholding tax) on
maintained bank accounts. The restated amount for CY 2016 was increased by
P261,648.81.

17.8 Other Business Income pertains to the medical, dental and laboratory fees.

18. Share, Grants and Donations

PARTICULARS 2017 2016

Income from Grants and Donations in Cash – 34,900.00
Income from Grants and Donations in Kind 13,209,410.46 9,154,865.40
TOTAL 13,209,410.46 9,189,765.40

Income from Grants and Donations in Kind consists of several IT and office
equipment and furniture and fixtures amounting to P9.25 million donated by the
United States Agency for International Development to COA Regional Office VIII,
P3.77 million from the Provincial LGU for the rehabilitation of COA building to be
used for storage area of COA Region VI and a vehicle with a carrying value of
P184,810.43 donated by the Provincial Government of South Cotabato to COA
Regional Office XII.

19. Personnel Services

Personnel Services consisting of salaries, allowances and other benefits constitutes

91.58 percent of the total expenses.

19.1 Salaries and Wages

PARTICULARS 2017 2016 (Restated)

Salaries and Wages 4,446,763,081.77 4,021,980,646.77
TOTAL 4,446,763,081.77 4,021,980,646.77

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 Salaries and Wages include basic salaries based on the Salary
Standardization Law 4, 3rd Tranche in the total amount of P4,446.76 million
with an increase of P424.78 million from the restated amount of P4,021.98
million for CY 2016.
The restated amount of salaries for CY 2016 was increased by P11.58 million
caused by the submission of DV claims in CY 2017 and charged against the
current year’s NCA.

19.2 Other Compensations

PARTICULARS 2017 2016 (Restated)
Year End Bonus 734,343,594.50 665,150,638.35
Personnel Economic Relief Allowance (PERA) 209,011,675.24 206,008,336.48
Representation Allowance (RA) 129,847,012.50 130,407,193.75
Transportation Allowance (TA) 107,673,317.05 111,613,243.75
Cash Gift 43,213,750.00 43,292,250.00
Overtime and Night Pay 7,079,390.13 7,195,046.26
Honoraria 5,752,751.08 6,252,143.64
Hazard Pay 1,110,149.27 1,061,562.94
Subsistence Allowance 171,100.00 186,050.00
Laundry Allowance 28,500.00 30,150.00
Clothing/Uniform Allowance – 42,925,000.00
Other Bonuses and Allowances 178,673,269.00 120,917,346.00
TOTAL 1,416,904,508.77 1,335,038,961.17

The restated amount of Other Compensations for CY 2016 was increased by

P9.54 million caused by the submission of DV claims in CY 2017 and
charged against the current year’s NCA.

19.3 Personnel Benefit Contributions

PARTICULARS 2017 2016 (Restated)
Retirement and Life Insurance Premiums 532,274,553.75 459,583,739.26
PhilHealth Contributions 34,571,300.00 27,684,937.50
Pag-IBIG Contributions 10,503,400.00 9,608,162.50
Employees Compensation Insurance Premiums 10,444,511.38 9,652,770.62
TOTAL 587,793,765.13 506,529,609.88

The restated amount of Personnel Benefit Contributions for CY 2016 was

increased by P1.28 million attributed to the submission of DV claims in CY
2017 and charged against the current year’s NCA.

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 19.4 Other Personnel Benefits

PARTICULARS 2017 2016 (Restated)

Terminal Leave Benefits 292,761,550.06 252,995,554.34
Pension Benefits 30,409,582.00 25,016,918.00
Retirement Gratuity – 5,986,101.74
Other Personnel Benefits 971,580,084.50 1,436,225,961.05
TOTAL 1,294,751,216.56 1,720,224,535.13

Other Personnel Benefits include, among others, reimbursement of medical

and hospitalization expenses under Section 699 of the Revised Administrative
Code and monetization of leave credits. The restated amount for CY 2016
was increased by P10.55 million caused by the submission and payment of
DVs in CY 2017 for prior year claims.

19.5 Employee Future Benefits

The Commission and its employees contribute to the GSIS in accordance with
Republic Act No. 8291, otherwise known as “The Government Service
Insurance System Act of 1997”. The GSIS administers the plan, including
payment of pension benefits to employees to whom the act applies. Under
Section 5 of said RA, it shall be mandatory and compulsory for all employers
to include the payment of contributions in their annual appropriations.

The GSIS Benefit Plan is a defined contribution plan which includes

Separation Benefits, Retirement Benefits, Permanent Disability Benefits,
Temporary Disability Benefits, Survivorship Benefits, Funeral Benefits and
Life Insurance Benefits. The contribution to the defined contribution plan
amounted to P532.27 million. The restated amount for CY 2016 was increased
by P1.17 million which was attributed to the submission of DVs for prior year
claims and paid out of 2017 NCAs.

20. Maintenance and Other Operating Expenses

20.1 Traveling Expenses

PARTICULARS 2017 2016 (Restated)

Traveling Expenses – Local 88,638,264.45 76,018,362.25
Traveling Expenses - Foreign 61,402,627.20 51,122,844.83
TOTAL 150,040,891.65 127,141,207.08

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 Traveling Expenses – Local include expenses incurred for financial and
other types of audit, meeting and conferences, fact finding and investigation,
inspection and technical operation and other expenses. The restated amount
for CY 2016 was increased by P3.93 million, of which P3.39 in CO and P0.54
for ROs attributed to the liquidation of prior year cash advances of Officers
and Employees and the late submission of DVs for prior year claims of
reimbursable Transportation Expenses of Audit Team Leaders paid out of
2017 NCAs.

Traveling Expenses – Foreign include expenses incurred for the audit of

Foreign-Based Government Agencies (FBGAs) and for other international
engagements. The restated amount for CY 2016 was increased by P10.56
million which was attributed to the liquidation of prior year cash advances for
foreign travel and the reimbursements of Representation Allowance of the
audit teams.

20.2 Training and Scholarship Expenses

PARTICULARS 2017 2016 (Restated)

Training Expenses 53,060,691.63 79,102,864.55
TOTAL 53,060,691.63 79,102,864.55

Training Expenses include expenses incurred in attending conventions,

seminars and team building activities such as seminar/registration fees,
honoraria, meals and snacks, supplies/materials, and other expenses in the
amount of P53.06 million which decreased by P26.04 million from the P79.10
million in 2016 due to change in accounting treatment of travelling expenses
of COA participants to conferences/ seminars/conventions. The restated
amount for CY 2016 was increased by P2.67 million due to the late
submission of claims for meals and snacks served during seminars conducted
by PIDS and the honoraria of resource persons and facilitators.

20.3 Supplies and Materials Expenses

PARTICULARS 2017 2016 (Restated)

Office Supplies Expenses 33,896,326.53 36,849,979.10
Semi-Expendable Machinery and Equipment
9,695,749.22 7,666,919.72
Expenses
Fuel, Oil and Lubricants Expenses 7,778,179.65 7,199,247.54
Semi-Expendable Furniture, Fixture and Books
6,465,550.78 6,013,768.31
Expense
Medical, Dental and Laboratory Supplies
2,270,698.28 1,538,437.50
Expenses
Accountable Forms Expenses 17,625.00 39,990.00
Drugs and Medicines Expenses 103.00 10,018.75
Other Supplies and Materials Expenses 7,672,223.51 7,379,347.06

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 PARTICULARS 2017 2016 (Restated)
TOTAL 67,796,455.97 66,697,707.98

Supplies and Materials Expenses include expenses on commonly used

supplies, IT supplies, electrical, janitorial, spare parts and fuels for motor
vehicles and semi-expendable PPE items below the threshold of P15,000.00.
It also includes medicines issued to patients and reagents for laboratory tests.
The restated amounts for CY 2016 has an aggregate increase of P1.87 million
due to adjustments of prior year inventories and the payment of fuel
consumptions for the last two months of CY 2016.

20.4 Utility Expenses

PARTICULARS 2017 2016 (Restated)

Electricity Expenses 61,119,080.00 63,394,699.97
Water Expenses 7,690,494.42 7,435,629.85
TOTAL 68,809,574.42 70,830,329.82

Utility Expenses include expenses for water supplied by Maynilad and

electricity supplied by Meralco. The restated amounts for CY 2016 has an
aggregate increase of P2.62 million due to payment of electric consumptions
for Nov. 25 – Dec. 24, 2016 was made in January 2017.

20.5 Communication Expenses

PARTICULARS 2017 2016 (Restated)

Telephone Expenses 38,736,141.70 43,278,691.34
Postage and Courier Services 4,205,231.49 3,840,739.72
Internet Subscription Expenses 3,961,374.12 3,487,173.46
Cable, Satellite, Telegraph and Radio Expenses 117,526.35 133,093.64
TOTAL 47,020,273.66 50,739,698.16

Communication Expenses include current and toll charges paid to PLDT and
cellcard allowances of COA Officials and Employees with SG 26 and
designated OIC SAs/RSAs/Service Chiefs, Audit Team Leaders and Audit
Team Members. The restated amounts for CY 2016 has an aggregate increase
of P4.19 million, of which P3.67 million was for CO and P0.52 million for
ROs due to the late submission of DVs/GPs for prior year claims which were
paid from NCAs of 2017, and liquidation of cash advances for the purpose
granted in December 2016. Payment of PLDT bills for November and
December 2016 were also made in January 2017.

20.6 Confidential, Intelligence and Extraordinary Expenses

PARTICULARS 2017 2016 (Restated)

Confidential Expenses 11,250,000.00 14,250,000.00

31
 Extraordinary and Miscellaneous Expenses 9,062,200.00 9,137,598.78
TOTAL 20,312,200.00 23,387,598.78

Confidential, Intelligence and Extraordinary Expenses include allowances

of the Chairperson down to OIC Directors IV as provided in the GAA. The
restated amounts for CY 2016 has an aggregate increase of P4.98 million due
to liquidation in January 2017 of the cash advance granted for the purpose in
December 2016.

20.7 Professional Services

PARTICULARS 2017 2016 (Restated)

Consultancy Services 1,992,175.84 2,348,541.61
Legal Services 3,000.00 8,000.00
Other Professional Services 1,230,413.36 1,690,417.13
TOTAL 3,225,589.20 4,046,958.74

Professional Services include expenses for the six consultants, one

pathologist, architect, electrician and one fitness/aerobics instructor. The
restated amounts for CY 2016 has an aggregate increase of P758,500.00 due
to the payment in January 2017 of the claims of seven (7)
consultants/professionals.

20.8 General Services

PARTICULARS 2017 2016 (Restated)

Security Services 49,030,973.61 41,568,537.18
Janitorial Services 8,374,645.37 8,022,362.13
Other General Services 30,929,092.70 26,166,169.62
TOTAL 88,334,711.68 75,757,068.93

General Services include expenses paid for the services of janitors, security
guards and Job Order personnel; among others – IT programmers, drivers,
carpenters, gardeners, dormitory attendants and utility workers. The restated
amounts for CY 2016 has an aggregate increase of P3.62 million because the
claims for November and December 2016 were received and paid in January
2017 by the Central Office.

32
20.9 Repairs and Maintenance

PARTICULARS 2017 2016 (Restated)

Repairs and Maintenance - Buildings and Other
28,331,614.96 28,240,272.44
Structures
Repairs and Maintenance - Transportation
5,058,554.12 4,251,653.20
Equipment
Repairs and Maintenance - Machinery and
2,120,864.04 3,867,075.88
Equipment
Repairs and Maintenance - Land Improvements 773,008.18 886,713.85
Repairs and Maintenance - Furniture and Fixtures 304,483.18 421,259.08
Repairs and Maintenance - Semi-Expendable
9,200.00 9,200.00
Machinery and Equipment
Repairs and Maintenance - Semi-Expendable
2,000.00 80,691.57
Furniture, Fixtures and Books
Repairs and Maintenance - Other Property, Plant
– 45,880.00
and Equipment
TOTAL 36,599,724.48 37,802,746.02

Repairs and Maintenance include expenses in maintaining or improving the

usability and durability of COA properties. This year’s expenses were the
reconfiguration of COA Offices, Electrical rewiring and replacement of
fluorescent to LED Tube lights, the rehabilitation and improvement of the old
dormitory building and Dormitory 1 - Tahanan sa COA in the Central Office
and repairs/rehabilitations/ renovations of COA Regional Offices among
others. It also includes expenses for the maintenance of motor vehicles in their
running condition and repairs of air condition units in the Central Office,
Regional Offices and Provincial Satellite Auditors Offices.

The restated amounts for CY 2016 has an aggregate increase of P1.95 million
due to delayed submission of liquidation reports on cash advances for the
repairs of Land Improvements, Buildings and Other Structures, and
Machinery and Equipment amounting to P0.33 million, P1.35 million, and
P0.27 million, respectively.

20.10 Taxes, Insurance Premiums and Other Fees

PARTICULARS 2017 2016 (Restated)
Insurance Expenses 7,448,597.93 6,224,104.75
Fidelity Bond Premiums 827,259.20 932,790.45
Taxes, Duties and Licenses 712,656.47 543,244.50
TOTAL 8,988,513.60 7,700,139.70

Taxes, Insurance Premiums and Other Fees include expenses for annual
registration and inspection fees for motor vehicles, annual membership fee

33
 with IFAC, insurance premiums of bonded COA Officials and Employees and
insurance premiums for COA properties against fire/loss/calamities.

20.11 Other Maintenance and Operating Expenses

PARTICULARS 2017 2016 (Restated)
Representation Expenses 33,360,471.41 31,744,636.19
Rent/Lease Expenses 3,387,951.23 2,764,992.71
Subscription Expenses 1,487,038.86 1,855,715.41
Advertising Expenses 620,816.80 1,332,799.20
Printing and Publication Expenses 551,854.70 440,085.00
Membership Dues and Contributions to
208,000.00 339,510.00
Organizations
Transportation and Delivery Expenses 10,120.00 56,329.45
Other Maintenance and Operating Expenses 50,016,468.46 29,221,083.43
TOTAL 89,642,721.46 67,755,151.39

Other Maintenance and Operating Expenses include costs of reproduction

of manuals/handbooks, cost of publication to newspapers of COA Resolutions
and Circulars, claims for representation expense of Audit Team Leaders
amounting to P150 per day, meals and snacks during meetings, newspapers
subscription, NVision software licenses, network licenses of various bulletins
for LSS Library, monthly payments for the Solar PV System and payments for
photocopy services. The restated amount for CY 2016 was increased by P4.14
million attributed to the liquidation of prior year cash advances of Officers
and Employees and payments for prior year claims on reimbursable
Representation Expenses of Audit Team Leaders in CY 2017.

The account Other Maintenance and Operating Expenses includes

expenses for Inter-Regional and National sports competitions, cultural
activities and food subsidy during COA Anniversary and Christmas
celebrations, expenses for Gender and Development program of the
Commission, transportation and meal allowances of deputized/detailed
security personnel and others.

21. Financial Expenses

PARTICULARS 2017 2016 (Restated)
Bank Charges 23,381.00 13,123.47
Other Financial Charges – 100.00
TOTAL 23,381.00 13,223.47

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22. Non-Cash Expenses

22.1 Depreciation
PARTICULARS 2017 2016 (Restated)
Depreciation - Machinery and Equipment 69,531,367.34 60,920,500.59
Depreciation - Buildings and Other Structures 52,587,652.42 38,605,265.96
Depreciation - Transportation Equipment 11,301,105.62 11,151,530.80
Depreciation - Land Improvements 2,296,018.73 1,893,641.83
Depreciation - Furniture, Fixtures and Books 1,747,863.23 2,738,043.67
Depreciation - Other Property, Plant and
75,937.30 54,041.65
Equipment
TOTAL 137,539,944.64 115,363,024.50

22.2 Impairment Loss

PARTICULARS 2017 2016 (Restated)

Impairment Loss – Property, Plant and Equipment 465,975.21 9,142,799.33
TOTAL 465,975.21 9,142,799.33

Impairment Loss for Property, Plant and Equipment was recognized in

the amount of P465,975.21 for Other PPEs of COA Region I in CY 2017 and
P9.14 million in CY 2016 due to the damages of COA buildings in
Tuguegarao City caused by the super typhoon Lawin in October 2016.

23. Net Financial Assistance / Subsidy

PARTICULARS 2017 2016 (Restated)

Subsidy from National Government 10,988,220,976.83 9,600,135,632.31
TOTAL 10,988,220,976.83 9,600,135,632.31

The Commission receives fund primarily from the National Government through the
Notice of Cash Allocations (NCAs) issued by the Department of Budget and
Management (DBM) pursuant to R.A. No. 10924 or the 2017 General
Appropriations Act (GAA).

24. Non-Operating Income

PARTICULARS 2017 2016 (Restated)

Miscellaneous Income 5,458,446.82 10,098,302.56
Proceeds from Insurance/Indemnities 252,671.92 8,348,921.48

35
 TOTAL 5,711,118.74 18,447,224.04

24.1 Miscellaneous Income includes receipts of COA bills, refund of

overpayments and other receipts.
24.2 Proceeds from Insurance/Indemnities pertains to check received from GSIS
in the amount of P252,671.92 as proceeds from insurance claims on damaged
buildings in COA RO No. VIII.

25. Non-Operating Gain

PARTICULARS 2017 2016 (Restated)

Gain on Foreign Exchange (FOREX) 3,185,098.19 6,087,689.84
Other Gains – 250,121.80
TOTAL 3,185,098.19 6,337,811.64

Gain on FOREX represents gains on the valuation of dollar deposits based on

Central Bank’s exchange rate at the end of each month.

26. Non-Operating Losses

Loss on FOREX represents losses on the valuation of dollar deposits based on

Central Bank’s exchange rate at the end of each month amounting to P2.98 million
and P2.81 million for CY 2017 and CY 2016, respectively.

27. Accumulated Surplus/(Deficit)

27.1 Adjustment of net revenue recognized directly in net asset/equity pertains

to the constructive receipt of audit fees deposited directly to the National
Treasury which were closed to Accumulated Surplus/(Deficit) at year-end.

27.2 Others includes adjustments on the disposal of unserviceable PPE,

adjustments in dropping of PPE from the books, adjustments for the utilization
of PSAO projects and other capital outlay sourced from multi-year projects,
and transfer of training fund balance from ROs to CO.

36