2009 Annual Financial Report of Local Governments - Volume ...Region IV 10 14 202 5,454 Region V 6 7...

2009

ANNUAL FINANCIAL REPORT

LOCAL GOVERNMENTS

COMMISSION ON AUDIT

Introduction 11.1 LGU's General Profile 31.2 LGU's Strategic Directions 41.3 Highlights of Financial Operations

1.3.1 Financial Condition 71.3.2 Results of Operations 121.3.3 Statement of Cash Flows 17

2. Financial Statements2.1 Significant Accounting Policies 252.2 Comparative Condensed Balance Sheet 272.3 Comparative Condensed Statement of

Income and Expenses 302.4 Statement of Cash Flows 33

3. Detailed Financial Statements3.1 Balance Sheet

3.1.1 Comparative Detailed Balance Sheet 393.1.2 Detailed Balance Sheet by Unit 433.1.3 Detailed Balance Sheet by Fund 47

3.2 Statement of Income and Expenses3.2.1 Comparative Detailed Statement of

Income and Expenses 513.2.2 Detailed Statement of Income and

Expenses by Unit 573.2.3 Detailed Statement of Income and

Expenses by Fund 63

4. Financial Profile of Municipalities 69

5. Common Audit Findings and Recommendations5.1 20% Development Fund 1055.2 Credit Financing 1065.3 Operation of Economic Enterprise 108

6. Summary of Annual Audit Reports by Provinceand City 111

7. Summary of Audit Opinions by Municipality 351

TABLE OF CONTENTS

Particulars

INTRODUCTION

INTRODUCTION

The Philippine Constitution of 1987 provides under Article IX-D that the COA shall (1) prepare the Annual Financial Report to be submitted to the President of the Philippines and the Congress on or before September 30 of each year; (2) recommend measures to improve the economy, efficiency and effectiveness of the operations of the Local Government Units (LGUs); and (3) promulgate accounting rules and regulations.

These mandates require that the Annual Financial Report (AFR) on the fiscal performance of the LGUs include the results of the examination and audit of their accounts and financial operations; and the measures to improve the economical, efficient management and use of the LGUs resources, enhance the generation of income and delivery of services to their constituents, strengthen the custody and safeguarding of the funds and properties and ensure compliance with laws, rules and regulations. In addition, financial controls through promulgation of accounting rules are prescribed by COA as a measure to assure that the LGUs achieve its goals.

The considerable amount of financial resources managed by the local governments and the responsibility attached to it to have effective financial management systems and delivery of public service under an ethical local bureaucracy have brought about certain policy and regulatory changes during the year under review. The re-computation of IRA shares of LGUs and the re-institution of the Accountant’s Advice are two of the enhancements to local government financial management introduced in 2009. The Circular on the reinstitution of the Accountant’s Advice for barangay disbursements was issued to ensure that the fundamental principles in fiscal administration are complied with by the barangays particularly the complete documentation of claims against government funds.

The management by the local governments of their scarce fiscal resources is

an integral part of fiscal discipline and accountability. How the local governments manage both their revenues and expenditures always impact on services delivered to the constituents, the degree of their compliance with laws, rules and regulations and eventually the resulting financial reports and statements. These responsibilities are particularly laid out in Title V- Local Fiscal Administration of the Local Government Code of 1991.

The Annual Financial Report of the Local Governments for 2009 reflects the results of fiscal operations and condition of the LGUs for the year including comparative analyses of revenues generated and expenditures incurred as well as the movements of the LGUs’ Assets, Liabilities and Equity.

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THE LOCAL GOVERNMENT PROFILE

Local Government Categories

The local government units consist of Provinces, Cities, Municipalities and

Barangays geographically distributed among the 16 regions including the Autonomous Region of Muslim Mindanao and the Cordillera Administrative Region. Article X of the 1987 Constitution of the Republic of the Philippines confers "local autonomy" to the local government within defined powers and with the president exercising "general supervision." Each LGU is headed by an elected local chief executive (LCE) and governed by an elected legislative body (Sanggunian). The Local Government level is comprised of 80 provinces, 121 cities; 1, 509 municipalities; and 41,813 barangays and the regional distribution of these are as follows:

Region No. Of Provinces

No. of Cities

No. Of Municipalities

No. Of Barangays

NCR 0 16 1 1,693CAR 6 1 76 1,161Region I 4 8 117 3,276Region II 5 3 90 2,311Region III 7 13 117 3,021Region IV 10 14 202 5,454Region V 6 7 107 3,428Region VI 6 16 117 4,199Region VII 4 12 120 3,010Region VIII 6 4 139 4,378Region IX 3 4 67 1,904Region X 5 8 85 1,976Region XI 4 5 44 1,192Region XII 4 5 45 1,200Region XIII 5 3 70 1,298ARMM 5 2 112 2,312TOTAL 80 121 1509 41,813

All local governments, except for barangays, undergo classification every after

four years based on incomes generated and size of population. The LGUs are classified from 1st to 6th class. The classification matrix of LGUs is presented below*:

Local Government Subdivision

1st class

2nd class

3rd class

4th class

5th class

6th class

Provinces

44

16

12

4

3

-

Cities

46

15

29

27

1

-

Municipalities

338

180

256

357

240

16

*BLGF/LTOD Report September 02, 2010 BLGF Note: There no available data for 2 Provinces, 2 Cities and 122 Municipalities

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Strategic Directions

The powers and functions of LGUs are contained in the Local Government Code of 1991 (RA 7160). The de-concentration of national government responsibilities to local government units, as enumerated in RA 7160 particularly involved the authority to exercise corporate powers where the LGUs are bestowed with power to use a corporate seal, enter into contracts and exercise other powers subject to limitations of RA 7160. Further, the LGUs are granted with the power to:

1. Approve ordinances and pass resolutions for the efficient and effective local government administration;

2. Generate and optimize the use of resources and revenues; 3. Grant franchises, approve and issue licenses and permits; levy taxes, fees

and charges to promote the general welfare of the constituents; 4. Approve ordinances that will ensure the efficient and effective delivery of

basic services.

Local governments exercise their functions for the efficient delivery of basic services, economic development, management of environment and poverty alleviation. These core objectives of local governance provide as the main focus of local government officials in meeting the expectations of the constituents, managing internal and external factors affecting the LGUs’ plans and programs, efficient implementation of these programs and projects and the optimum management of financial resources. Although the local autonomy and decentralization’s success hinges mainly on the attainment of fiscal federalism, its overall functions of delivering efficient basic service, economic and social development, environment management and poverty alleviation are considered equally important by the LGUs. Meeting the expectations of its constituents and stakeholders also hold importance to the setting of medium and short-term strategies, plans and targets of each of these LGUs. The LGUs prepare financial plans, local budgets and local development plans, all of which are governed by Section 305 –Title V of the of Local Government Code. The same provision requires that fiscal responsibility shall be “shared by all those exercising authority over the financial affairs, transactions, and operations of the local government units”. Fund Sources and Application Fund Sources Local governments receive Internal Revenue Allotments from the national government representing 40% of the total internal revenue collections based on the third preceding year. The amount is allotted to local governments as follows: Provinces (23%), Cities (23%), Municipalities (34) and Barangays (20%).

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Another fund source is the share of the local governments from national wealth exploration and in earnings of government agencies or government-owned or controlled corporation engaged in the utilization and development of national wealth.

Local governments also raise their own revenues in the form of real property taxes and business taxes. They are also allowed by law to obtain loans, credits and other forms of indebtedness and issue bonds, debentures, securities, collateral notes and other obligations to finance self-liquidating, income-producing development and livelihood projects. The table below summarizes the Internal Revenue Allotments for the LGUs for 2009 per region and other funds allocated to local governments by the national government:

INTERNAL REVENUE ALLOTMENTS PROVINCES, CITIES, MUNICIPALITIES AND BARANGAYS

CY 2009 (Source: Department of Budget and Management)

Region Provinces Cities Municipalities Barangays Total NCR 197,715,458* 12,467,966,565 65,951,755 4,408,075,168 17,139,708,946CAR 2,508,007,080 578,488,668 3,339,429,928 1,067,628,912 7,493,554,588Region I 3,306,156,877 2,056,016,459 5,363,681,150 3,078,775,189 13,804,629,675Region II 3,504,889,536 1,366,468,100 5,391,767,889 2,127,706,860 12,390,832.385Region III 6,150,896,908 4,583,682,756 8,437,613,309 4,567,728,795 23,739,921,768Region IV 9,688,819,055 5,914,879,010 14,311,485,489 7,213,343,155 37,128,526,709Region V 4,063,561,361 2,080,333,916 5,980,327,763 3,354,042,159 15,478,265,199Region VI 4,603,745,625 5,909,695,748 6,139,792,074 4,190,178,068 20,843,411,515Region VII 3,597,594,380 4,811,053,775 5,610,184,152 3,516,266,798 17,535,099,105Region VIII 3,717,930,321 2,207,146,483 5,877,730,017 3,460,032,870 15,262,839,691Region IX 3,856,563,089 2,846,233,712 5,727,341,913 2,919,573,907 15,349,712,621Region X 3,075,341,480 3,947,343,293 4,211,260,892 2,241,125,896 13,475,071,561Region XI 2,678,036,985 3,949,157,235 3,405,023,563 1,841,151,670 11,873,369,453Region XII 5,196,701,077 2,480,485,803 7,951,309,029 3,344,625,704 18,973,121,613Region XIII 2,707,399,206 1,778,960,091 3,642,204,449 1,372,238,425 9,500,802,171Total 58,853,358,438 56,977,911,614 85,455,103,372 48,702,493,576 249,988,867,000*IRA for Metropolitan Manila Authority

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The graph below shows the regional distribution of the IRA for 2009:

100,000,000,000 90,000,000,000

80,000,000,000

70,000,000,000

60,000,000,000

50,000,000,000

40,000,000,000

30,000,000,000

20,000,000,000

10,000,000,000

Cities Provinces Municipalities Barangays For 2009, the LGUs have a combined total operating income of P243.034 billion mainly composed of Local Taxes in the amount of P58.736 billion and the General Income Accounts totalling P184.298 billion. The LGUs also received subsidies from other government agencies and posted incomes from Extraordinary Items, the details of which are contained in the Financial Highlights portion of this Report.

Fund Application The expenditures of local governments are classified into Personal Services,

Maintenance and Other Operating Expenditures and Capital Outlay. The National Government does not control how the local governments’ budgets are expended except in ensuring that:

a) These do not exceed the expected revenues including the IRA and those

other funds appropriated for the year; b) All statutory obligations, debts and loans with sovereign guarantee are in

their budgets; c) That the expenditures do not exceed the 45-55 percent personal services

limitations. The consolidated operating expenditures of the local governments for CY

2009 amounted to P180.996 billion and the Financial Expenses is recorded at P4.108 billion. These information are further detailed in the Financial Highlights Section of this Report and its Annexes.

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578.683

175.829

402.854Assets

L iabilities and DeferredC reditsE quity

FINANCIAL OPERATIONS HIGHLIGHTS

A. FINANCIAL CONDITION

The Local Governments, excluding barangays, posted a consolidated total of

P578.683 billion assets, P175.829 billion total Liabilities and Deferred Credits and P402.854 billion total Equities for CY 2009. The totals of the accounts reflected increases for Assets of P70.139 billion (13.95%), P36.040 billion for Liabilities and Deferred Credits (25.84%) and P34.720 billion for Equity (9.55%). The overall comparative balance sheet account captions for 2009 and 2008 are presented in Figure 1.0.

Figure 1.0 Comparative Account Balances (in billions of pesos)

Figure 2.0 Balance Sheet Account Composition and Proportion

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156.86

120.41

273.43259.54

148.39127.27

0

50

100

150

200

250

300

P rovinces C ities Municipalities

2009

2008

The year-on-year increases/decreases for the accounts per type of LGU are shown below (in billions):

Account

Local Government Units Provinces Cities Municipalities

2009 2008 +/- 2009 2008 +/- 2009 2008 +/- Total Assets

156.86

120.41

36.45

273.43

259.54

13.89

148.39

127.27

21.12

Total Liabilities and Deferred Credits

39.57

28.02

11.55

86.23

71.67

14.56

49.98

39.80

10.18

Total Equity

117.29

92.39

24.90

187.20

187.87

(.67)

98.41

87.47

10.94

As shown in the above table, the Provinces registered the sharpest increase in assets followed by the Municipalities. The trend is also true to Liabilities and Deferred Credits and the Equity Accounts. The comparative balances of the accounts per type of LGU showing their increases/decreases are shown in the following graphs:

Assets Figure 3 – Comparative Asset Account Balances (in billions)

The increase in the asset accounts of the LGUs is mainly attributable to

general increases in the Cash Account which amounted to P20.12 billion;

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Receivables, P11.66 billion from last year’s balance of P51.264 billion, P38.137 billion up from last year’s amount of P347.21 billion

The total combined assets for CY 2009 amounting to P578.683 billion is made up of Cash, P110.789 billion; Receivables P62.923; Inventories, P10.300 billion; Prepayment and Other Current assets, P2.88 billion; Investments, P1.945 billion; Property, Plant and Equipment, P385.351 billion and Other Assets, P4.490 billion. The table below represents the share of each account in the total asset:

Figure 4.0 Asset Accounts Proportion

Liabilities and Deferred Credits

The consolidated Liabilities and Deferred Credits Accounts has increase

during the year mainly due to increases in the following: Current Liabilities – by P15.74 billion; Long Term Liabilities – P10.78 billion and Deferred Credits – by P9.187 billion. Figure 5 shows the comparative balances of the Liabilities and Deferred Credits Accounts.

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Figure 5.0 – Comparative Accounts Balances of Liabilities and Deferred Credits

For Liabilities and Deferred Credits Account, the LGUs recorded an increase

of P35.71 billion or equivalent to roughly 26% from last year’s balance. This account is mainly made up of the following (in billions):

Current Liabilities P78.537 Long Term Liabilities 57.560 Deferred Credits 39.732

The proportion of each of the above accounts to total consolidated Liabilities

and Deferred Credits Account is shown in Figure 6.0. Figure 6.0 – Liabilities and Deferred Credits Composition

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Government Equity

The Equity Account for the year 2009 has increased by P35.12 billion from last year’s balance. The total amount of the account is registered at P402.854 billion and is broken down into: Beginning Balance – P357.891, Additions to Beginning Balance – P10.276 billion, Current Operations – P56.172, Prior Years’ Adjustments – (P3.344) and Transfers to Registry – (18.090). The comparative amounts for the account are shown in Figure 7.0.

Figure 7.0 – Comparative Account Balances (in billions)

The Government Equity Account composition is present in Figure 8.0. Figure 8.0 – Equity Account Composition (in billions)

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B. RESULTS OF OPERATION

The Local Government Units have recorded a total of P56.172 billion net

income during the year up by P9.073 billion from CY 2008. The total Operating Income for 2009 has reached P277.262 billion while Total Operating Expenses is recorded at P203.203 billion. The results of operations of local governments for the year are presented, per LGU classification, below (in billions):

Particulars Total Provinces Cities MunicipalitiesRevenue Tax Revenue Local Taxes 60.179 6.338 43.118 10.722General Income Internal Revenue

Allotment 185.670 59.187 50.718 75.765

Permits and Licenses 4.062 .092 2.555 1.415 Service Income 5.089 1.143 2.567 1.379Business income 11.211 2.695 4.925 3.592Other Income 11.050 2.892 4.213 3.944Total Operating Income

277.263 72.348 108.097 96.818

Expenses Personal Services (98.357) (24.181) (33.967) (40.209) Maintenance & Other

Operating Expenses (104.846) (24.162)

(44.424) (36.259) Financial Expenses (4.646) (1.153) (2.280) (1.213)Subsidies, Donations and

Extraordinary Items 7.405 2.556

3.550 1.299Subsidies to National

Government Agencies (22.002) (9.833)

(7.284) (4.885)Extraordinary Items 1.354 (.012) 1.365 ,003Net Income 56.172 15.563 25.054 15.555

A snapshot of the LGUs results of operations is presented in Figure 9.0.

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18 5 . 4 9 3

6 0 . 1 5 6

3 1 . 3 9 3

In t e rn a l Re v e n u e A ll o tm e n t

Lo ca l Ta x es

O t h e rs

Figure 9.0 – Results of Operations-per LGU classification (in billions)

Revenues and General Income

The total Consolidated Revenues and General Income Accounts posted during the year by the LGUs summed up to P277.262 billion which is P34.23 billion higher than that of the previous year. During the year, the Revenue and General Income account is mostly made up of Internal Revenue Allotment and Local Taxes. The composition of the Revenues and General Income accounts is shown in Figure 10.

Figure 10 – Revenues and General Income Account composition

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The year-on-year comparative operating income levels of the LGUs are depicted in Figure 11.0.

Figure 11.0 – Comparative Operating Income 2008-2009 (in billions)

Expenditures The LGUs’ total operating expenditures for the year is recorded at P203.203 billion. The Cities had the largest share in it amounting to P78.391 billion followed closely by the Municipalities which is pegged at P76.468 billion and the Provinces with recorded amount of P48.343 billion. The total operating expenditures is mostly made up of Maintenance and Other Operating Expenses (P104.245 billion) and Personal Services (P98.357 billion). The non-cash expenditures under the Maintenance and Other Operating Expenses in the form Depreciation Expenses amount to P10.224 billion The composition of the CY 2009 expenditures is shown in Figure 12.0.

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Figure 12.0 – CY 2009 Operating Expenditure Composition (in billions)

The Personal Services expense category is made up of several expenditure objects. These are Salaries and Wages, Other Compensation, Personnel Benefits Contribution, and Other Personnel Benefits. The amounts of these Objects of Expenditure that are recorded in 2009 are shown in Figure 13.0. Figure 13.0 – Consolidated Personal Services Expenditures (in billions)

For the Maintenance and Other Operating Expenses (MOOE), the total amount recorded in 2009 is P203.047 billion which registered an increase of

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approximately P22 billion from 2008. The consolidated MOOE for the year is composed of the following:

Travelling Expenses P 3.647 Training and Scholarship Expenses 2.220 Supplies and Materials 22.017 Utility Expenses 7.640 Communication Expenses 1.290 Representation Expenses 1.199 Professional Services 12.437 Repairs and Maintenance 14.274 Confidential, Intelligence, Extraordinary and Miscellaneous Expenses 3.302 Taxes and Premiums & Other Fees 1.027 Depreciation 10.224 Reforestation Projects .036 Membership Dues and Contributions to Organizations

.185

Awards and Indemnities Expenses .082 Advertising Expenses .437 Printing and Binding Expenses .244 Rent .526 Transportation and Delivery .101 Subscription Fees .052 Survey Expenses .075 Rewards and Other Claims .041 Other MOOE 23.820

During CY 2009, the LGUs also recorded Financial Expenses amounting to P4.642 billion and Donations and Subsidies to National Government Agencies, GOCCs, NGOs/Pos and to other funds totalling P21.972 billion.

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C. CASH FLOWS At the end of 2009, the LGUs recorded a total consolidated Cash Balance of P110.789 billion. This amount is made up of Net Cash Inflows (P18.908 billion) and Cash Balance-Beginning (P91.880 billion). The Net Cash Inflows during the year is attributed to Cash Flows from Operating Activities – P60.526 billion, from Investing Activities – (P45.426 billion), and from Financing Activities – P3.808 billion). The comparative Cash Inflows and Outflows for Calendar Years 2008-2009 is shown in Figure 14: Figure 14: Comparative Cash Inflows/Outflows CYs 2008-2009 (in billions)

Particulars 2009 2008 Inc/Dec Cash Inflows Operating Activities 347.392 297.420 49.972 Investing Activities 1.845 6.946 (5.101) Financing Activities 14.971 9.904 5.067Total 364.208 314.270 49.938Cash Outflows Operating Activities 286.866 248.191 38.675 Investing Activities 47.271 40.704 6.567 Financing Activities 11.163 8.116 3.047Total 345.300 297.011 48.289Cash Used/Provided Operating Activities 60.526 49.228 11.297 Investing Activities (45.426) (33.758) (11.67) Financing Activities 3.808 1.788 2.02Total 18.908 17.258 1.650

Cash Flows from Operating Activities The total Cash Inflows for Operating Activities in 2009 is registered at P347.392 billion while Total Cash Outflows amounted to P286.866 billion with Net Inflows of P60.526 billion. Cash Inflows under this activity mainly come from Internal Revenue Allotments, Tax Collections, Other Receipts and Receipts from sale of goods and services. Figure 15 shows the composition of total cash inflows from Operating activities:

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Figure 15: Composition of Cash Inflows from Operating Activities (in

Billions)

Cash Outflows under this activity pertain to payments to Suppliers/Creditors, Employees, Interest Expense and Other disbursements. Figure 16 shows the proportion of these outflows to the total amount. Figure 16: Proportion of Individual Outflows to Total Outflows (in billions)

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Cash Flows from Investing Activities During the year, the LGUs used their cash to procure P45.745 billion worth of Property, Plant and Equipment and Public Infrastructure while P1.370 billion worth of cash proceeds come from the Sale of Property, Plant and Equipment. Other transactions that belong to this activity are the granting of loans to other entities, Purchase/Sale of Debt Securities of Other Entities and collection of Principal on Loans to Other Entities. It is worth noting that under the Investing Activity, the LGUs actually posted a Net Cash Outflow of P45.426 billion. Figure 17 presents the proportion of Cash Inflows to Cash Outflows in this Activity. Figure 17: Cash Inflow/Outflow Proportion (in billions)

Cash Flows from Financing Activities Under the activity, the LGUs recorded a consolidated Cash Inflows of P14.971 billion and Cash Outflows of P11.163 billion with total Net Inflows of P3.808 billion. The Cash Inflows from this activity is mostly attributed to Loans Acquisition which amounted to P14.362 billion and majority of Cash Outflows belong to Payment of Loan Amortization (P10.793 billion). The proportion of cash flows for Issuance/Retirement of Debt Securities and Acquisition/Repayment of Loans is shown in Figure 18.

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Figure 18: Proportion of Debt Securities and Loans Cash Flows

The Provinces, Cities and Municipalities all contributed significantly to the total amounts of Cash Inflows and Outflows recorded during the year. The figures below show the amounts of Cash Inflows/Outflows per type of activity of the LGUs.

Figure 19: Cash Inflows per LGU Classification (in billions)

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Figure 20: Cash Outflows per LGU Classification (in billions)

Figure 21: Total Cash Inflows/Outflows per LGU Classification (in billions)

FINANCIAL STATEMENTS

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SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Consolidation

The consolidated financial statements were prepared based on the audited financial statements of 1,490 LGUs, composed of 80 provinces, 118 cities and 1,292 municipalities.

The financial statements included the three funds maintained by LGUs;

namely: General Fund, Special Education Fund and Trust Fund.

2. Summary of Significant Accounting Policies

a. Classification of Accounts

Accounts were classified in accordance with the NGAS Chart of Accounts prescribed under COA Circular No. 2003-001 dated June 17, 2003.

b. Inventory Valuation

The perpetual inventory system is used in the accounting for inventories.

The cost of ending inventory of supplies and materials and other inventory items are computed using the moving average method.

c. Property, Plant and Equipment

Property, Plant and Equipment (PPE) are recorded at historical cost.

Properties of the government for general public use are accounted for as Public Infrastructures and Reforestation Projects. These are transferred to the Registry of Public Infrastructures and Reforestation Projects, respectively upon completion. However, completed projects funded out of loan are retained in the books of accounts until the loan is fully paid.

d. Depreciation of PPE

Depreciation is computed using the straight-line method. A residual

value of ten percent of the cost is deducted before dividing the difference by the estimated useful life of the PPE. Computation of depreciation starts on the following month after purchase/completion of the PPE.

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e. Payable Accounts

Liabilities are recognized at the time goods and services are accepted or rendered and supplier/creditor bills received.

f. Income

Income from the Share from Internal Revenue Allotment is accounted for

using the accrual method of accounting. Real Property Taxes are accounted for under the modified accrual basis and all other income recognized under the cash basis of accounting.

g. Expenses

Expenses are recorded under the accrual basis of accounting.

h. Correction of Fundamental Errors

Fundamental errors of prior years are corrected using the Prior Years’ Adjustment account. Errors affecting current year’s operations are adjusted to the appropriate account.

i. Foreign Currencies

Transactions in foreign currencies are recorded in Philippine Peso based on

the BSP exchange rate at the date of transaction. Depository accounts maintained in foreign currency are recorded at the BSP exchange rate at the date of the financial statement.

ASSETSCURRENT ASSETS

Cash 110,789,040 19.15 90,673,962 17.85 Receivables 62,923,125 10.87 51,264,196 10.09 Inventories 10,300,490 1.78 7,986,947 1.57 Prepayments 2,481,394 0.43 2,353,648 0.46 Other Current Assets 402,868 0.07 573,961 0.11

Total Current Assets 186,896,917 32.30 152,852,713 30.10

INVESTMENTSInvestments in Securities 1,864,572 0.32 3,483,365 0.69 Sinking Fund 80,954 0.01 530,271 0.10

Total Investments 1,945,526 0.34 4,013,636 0.79

PROPERTY, PLANT AND EQUIPMENT Land and Land Improvements 91,753,851 15.86 80,050,290 15.76 Buildings 147,573,836 25.50 131,180,513 25.83 Leasehold Improvements 16,728 0.00 19,172 0.00 Office Equipment, Furniture and Fixtures 22,364,322 3.86 21,331,487 4.20 Machineries and Equipment 32,933,252 5.69 28,301,029 5.57 Transportation Equipment 14,506,889 2.51 13,171,966 2.59 Other Property, Plant and Equipment 5,884,845 1.02 5,341,039 1.05 Public Infrastructures 11,324,266 1.96 12,309,850 2.42 Reforestation Projects 252,320 0.04 172,952 0.03 Construction in Progress 58,740,877 10.15 55,335,094 10.90

Total Property, Plant and Equipment 385,351,186 66.59 347,213,394 68.37

OTHER ASSETS 4,489,866 0.78 3,776,470 0.74 TOTAL ASSETS 578,683,495 100.00 507,856,212 100.00

LIABILITIES AND EQUITYCURRENT LIABILITIES

Payable Accounts 29,321,086 5.07 21,411,113 4.22 Inter-Agency Payables 31,346,616 5.42 26,185,916 5.16 Intra-Agency Payables 8,090,390 1.40 6,579,334 1.30 Other Liability Accounts 9,779,080 1.69 8,617,445 1.70

Total Current Liabilities 78,537,171 13.57 62,793,808 12.36

LONG-TERM LIABILITIESMortgate/Bonds/Loans Payable 57,559,683 9.95 46,778,943 9.21

TOTAL LIABILITIES 136,096,854 23.52 109,572,751 21.58

DEFERRED CREDITS 39,732,346 6.87 30,545,632 6.01

EQUITY 402,854,295 69.62 367,737,829 72.41 TOTAL LIABILITIES AND EQUITY 578,683,495 100.00 507,856,212 100.00

Local Governments of the Republic of the PhilippinesComparative Condensed Balance Sheet

December 31, 2009(in thousand pesos)

Particulars 2009 2008

Amount Percentage Distribution Amount Percentage Distribution

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Cash 110,789,040 31,468,887 48,470,546 30,849,607 Receivables 62,923,125 9,801,359 30,826,851 22,294,915 Inventories 10,300,490 3,631,973 5,889,473 779,044 Prepayments 2,481,394 685,401 1,287,322 508,670 Other Current Assets 402,868 36,786 305,274 60,809

Total Current Assets 186,896,917 45,624,407 86,779,466 54,493,045

INVESTMENTSInvestments in Securities 1,864,572 1,053,471 711,466 99,635 Sinking Fund 80,954 13,598 56,000 11,356

Total Investments 1,945,526 1,067,069 767,466 110,991

PROPERTY, PLANT AND EQUIPMENT Land and Land Improvements 91,753,851 34,161,512 43,344,994 14,247,345 Buildings 147,573,836 31,357,554 80,037,501 36,178,782 Leasehold Improvements 16,728 968 5,946 9,814 Office Equipment, Furniture and Fixtures 22,364,322 4,385,247 11,354,628 6,624,447 Machineries and Equipment 32,933,252 11,717,380 11,943,511 9,272,362 Transportation Equipment 14,506,889 4,192,993 5,983,970 4,329,926 Other Property, Plant and Equipment 5,884,845 1,518,283 2,644,324 1,722,238 Public Infrastructures 11,324,266 2,607,877 4,150,912 4,565,477 Reforestation Projects 252,320 2,703 5,619 243,998 Construction in Progress 58,740,877 18,820,428 24,476,490 15,443,959

Total Property, Plant and Equipment 385,351,186 108,764,945 183,947,895 92,638,346

OTHER ASSETS 4,489,866 1,406,903 1,933,355 1,149,608 TOTAL ASSETS 578,683,495 156,863,324 273,428,182 148,391,990


Payable Accounts 29,321,086 7,485,055 17,243,285 4,592,746 Inter-Agency Payables 31,346,616 11,125,009 8,881,229 11,340,378 Intra-Agency Payables 8,090,390 2,428,015 3,151,391 2,510,984 Other Liability Accounts 9,779,080 2,968,188 4,252,461 2,558,431

Total Current Liabilities 78,537,171 24,006,267 33,528,365 21,002,539

LONG-TERM LIABILITIESMortgate/Bonds/Loans Payable 57,559,683 14,342,735 28,130,665 15,086,284

TOTAL LIABILITIES 136,096,854 38,349,002 61,659,030 36,088,823

DEFERRED CREDITS 39,732,346 1,269,801 24,566,151 13,896,394

EQUITY 402,854,295 117,244,521 187,203,001 98,406,773 TOTAL LIABILITIES AND EQUITY 578,683,495 156,863,324 273,428,182 148,391,990

MunicipalitiesParticulars Total Provinces Cities

Local Government of the Republic of the PhilippinesCondensed Balance Sheet, By Unit


28


Cash 110,789,040 85,680,220 9,273,562 15,835,258 Receivables 62,923,125 43,540,724 16,127,619 3,254,782 Inventories 10,300,490 7,262,959 2,722,484 315,047 Prepayments 2,481,394 1,975,186 196,456 309,752 Other Current Assets 402,868 384,309 14,779 3,780

Total Current Assets 186,896,917 138,843,398 28,334,900 19,718,619

INVESTMENTSInvestments in Securities 1,864,572 1,774,909 24,691 64,971 Sinking Fund 80,954 80,954 - -

Total Investments 1,945,526 1,855,863 24,691 64,971

PROPERTY, PLANT AND EQUIPMENT Land and Land Improvements 91,753,851 87,354,909 1,985,475 2,413,467 Buildings 147,573,836 114,683,497 29,164,157 3,726,182 Leasehold Improvements 16,728 14,336 284 2,107 Office Equipment, Furniture and Fixtures 22,364,322 17,394,459 4,549,540 420,322 Machineries and Equipment 32,933,252 31,245,985 1,146,305 540,963 Transportation Equipment 14,506,889 14,113,882 193,609 199,398 Other Property, Plant and Equipment 5,884,845 4,711,474 990,121 183,250 Public Infrastructures 11,324,266 9,499,082 42,054 1,783,131 Reforestation Projects 252,320 223,006 5 29,309 Construction in Progress 58,740,877 47,446,672 2,849,214 8,444,991

Total Property, Plant and Equipment 385,351,186 326,687,302 40,920,764 17,743,120

OTHER ASSETS 4,489,866 4,147,270 241,575 101,021 TOTAL ASSETS 578,683,495 471,533,834 69,521,931 37,627,731


Payable Accounts 29,321,086 26,738,112 2,310,077 272,897 Inter-Agency Payables 31,346,616 12,938,866 845,266 17,562,483 Intra-Agency Payables 8,090,390 4,410,449 608,725 3,071,215 Other Liability Accounts 9,779,080 5,136,334 184,056 4,458,689

Total Current Liabilities 78,537,171 49,223,762 3,948,123 25,365,285

LONG-TERM LIABILITIESMortgate/Bonds/Loans Payable 57,559,683 54,945,442 1,618,587 995,654

TOTAL LIABILITIES 136,096,854 104,169,204 5,566,710 26,360,939

DEFERRED CREDITS 39,732,346 24,241,274 15,282,672 208,400

EQUITY 402,854,295 343,123,356 48,672,548 11,058,391 TOTAL LIABILITIES AND EQUITY 578,683,495 471,533,834 69,521,931 37,627,731

Trust FundParticulars Total General FundSpecial

Education Fund

Local Governments of the Republic of the PhilippineCondensed Balance Sheet, By Fund


29

Percent

TAX REVENUELocal Taxes 60,178,930 58,736,396 1,442,534 2.46

GENERAL INCOME ACCOUNTS 217,083,655 184,298,228 32,785,427 17.79Internal Revenue Allotment 185,670,057 154,302,440 31,367,617 20.33Permits and Licenses 4,062,393 3,846,080 216,313 5.62Service Income 5,089,830 4,596,479 493,351 10.73Business Income 11,211,416 9,461,854 1,749,562 18.49Other Income 11,049,958 12,091,374 (1,041,416) (8.61)

TOTAL OPERATING INCOME 277,262,585 243,034,625 34,227,961 14.08EXPENSES

PERSONAL SERVICES 98,357,314 89,119,674 9,237,640 10.37MAINTENANCE AND OTHER OPERATING EXPENSES 104,845,751 91,877,166 12,968,584 14.12

TOTAL OPERATING EXPENSES 203,203,064 180,996,840 22,206,224 12.27INCOME FROM OPERATIONS 74,059,521 62,037,785 12,021,736 19.38

FINANCIAL EXPENSES 4,645,778 4,108,699 537,079 13.07Income before Subsidies, Donations and Extraordinary Items 69,413,743 57,929,085 11,484,657 19.83Add: Subsidy from Other National Government Agencies 707,980 499,796 208,183 41.65

Subsidy from Other LGUs 1,936,655 1,566,050 370,605 23.66Subsidy from Other Funds 4,760,521 4,050,078 710,443 17.54Total 7,405,157 6,115,925 1,289,232 21.08

Less: Subsidy to National Government Agencies 1,252,013 1,499,475 (247,463) (16.50)Subsidy to Local Government Units 5,209,161 3,901,529 1,307,633 33.52Subsidy to Gov't Owned and Controlled Corporations 233,543 235,056 (1,514) (0.64)Subsidy to NGOs/Pos 478,924 251,527 227,397 90.41Subsidy to Other Funds 5,302,895 4,908,712 394,182 8.03Donations 9,525,081 6,680,911 2,844,170 42.57Total 22,001,617 17,477,211 4,524,405 25.89

Income before Extraordinary Items 54,817,283 46,567,798 8,249,484 17.71 Add (Less) Extraordinary Items: 1,354,603 511,150 843,453 165.01

Gain/Loss on foreign Exchange 150 2,579 (2,429) (94.18)Gain/Loss on Sale of Disposed Assets 1,353,913 558,152 795,761 142.57Gain/Loss on Sale of Securities 539 (49,582) 50,121 (101.09)

NET INCOME 56,171,885 47,078,948 9,092,937 19.31

Local Governments of the Republic of the PhilippinesComparative Condensed Statement of Income and Expenses

For the Year Ended December 31, 2009(in thousand pesos)

Increase ( Decrease)

PARTICULARSAmount

2009 2008 Increase ( Decrease)

30

TAX REVENUELocal Taxes 60,178,930 6,338,354 43,118,427 10,722,150

GENERAL INCOME ACCOUNTS 217,083,655 66,009,322 64,978,289 86,096,044 Internal Revenue Allotment 185,670,057 59,186,810 50,717,805 75,765,442 Permits and Licenses 4,062,393 92,243 2,555,107 1,415,044 Service Income 5,089,830 1,143,255 2,567,041 1,379,534 Business Income 11,211,416 2,694,846 4,924,939 3,591,631 Other Income 11,049,958 2,892,168 4,213,398 3,944,392

TOTAL OPERATING INCOME 277,262,585 72,347,676 108,096,716 96,818,194 EXPENSES

PERSONAL SERVICES 98,357,314 24,181,194 33,967,009 40,209,111 MAINTENANCE AND OTHER OPERATING EXPENSES 104,845,751 24,162,215 44,424,159 36,259,376

TOTAL OPERATING EXPENSES 203,203,064 48,343,409 78,391,168 76,468,487 INCOME FROM OPERATIONS 74,059,521 24,004,267 29,705,547 20,349,707

FINANCIAL EXPENSES 4,645,778 1,152,851 2,280,123 1,212,804 Income before Subsidies, Donations and Extraordinary Items 69,413,743 22,851,416 27,425,424 19,136,902 Add: Subsidy from Other National Government Agencies 707,980 121,616 25,329 561,035

Subsidy from Other LGUs 1,936,655 328,219 1,495,251 113,185 Subsidy from Other Funds 4,760,521 2,106,607 2,029,003 624,911 Total 7,405,157 2,556,442 3,549,583 1,299,131

Less: Subsidy to National Government Agencies 1,252,013 188,209 925,923 137,881 Subsidy to Local Government Units 5,209,161 2,422,619 1,980,155 806,388 Subsidy to Gov't Owned and Controlled Corporations 233,543 53,705 140,339 39,498 Subsidy to NGOs/Pos 478,924 127,487 245,287 106,150 Subsidy to Other Funds 5,302,895 2,585,839 1,619,645 1,097,411 Donations 9,525,081 4,455,072 2,372,781 2,697,229 Total 22,001,617 9,832,930 7,284,130 4,884,557

Income before Extraordinary Items 54,817,283 15,574,928 23,690,878 15,551,476 Add (Less) Extraordinary Items: 1,354,603 (12,221) 1,363,528 3,295

Gain/Loss on foreign Exchange 150 10 (544) 684 Gain/Loss on Sale of Disposed Assets 1,353,913 (12,224) 1,363,986 2,152 Gain/Loss on Sale of Securities 539 (7) 87 460

NET INCOME 56,171,885 15,562,707 25,054,406 15,554,772

MunicipalitiesPARTICULARS Total Provinces Cities

Local Governments of the Republic of the PhilippinesCondensed Statement of Income and Expenses, By Unit

For the Year Ended December 31, 2009(in thousand pesos)

31

TAX REVENUELocal Taxes 60,178,930 45,452,928 14,726,003

GENERAL INCOME ACCOUNTS 217,083,655 216,963,508 120,147 Internal Revenue Allotment 185,670,057 185,670,057 - Permits and Licenses 4,062,393 4,062,393 - Service Income 5,089,830 5,089,830 - Business Income 11,211,416 11,211,416 - Other Income 11,049,958 10,929,811 120,147

TOTAL OPERATING INCOME 277,262,585 262,416,435 14,846,150 EXPENSES

PERSONAL SERVICES 98,357,314 94,955,175 3,402,139 MAINTENANCE AND OTHER OPERATING EXPENSES 104,845,751 98,363,174 6,482,577

TOTAL OPERATING EXPENSES 203,203,064 193,318,349 9,884,716 INCOME FROM OPERATIONS 74,059,521 69,098,087 4,961,434

FINANCIAL EXPENSES 4,645,778 4,547,472 98,307 Income before Subsidies, Donations and Extraordinary Items 69,413,743 64,550,615 4,863,127 Add: Subsidy from Other National Government Agencies 707,980 707,811 169

Subsidy from Other LGUs 1,936,655 1,933,694 2,962 Subsidy from Other Funds 4,760,521 4,657,653 102,869 Total 7,405,157 7,299,157 106,000

Less: Subsidy to National Government Agencies 1,252,013 1,183,921 68,092 Subsidy to Local Government Units 5,209,161 5,126,301 82,860 Subsidy to Gov't Owned and Controlled Corporations 233,543 228,825 4,718 Subsidy to NGOs/Pos 478,924 475,578 3,346 Subsidy to Other Funds 5,302,895 5,284,623 18,272 Donations 9,525,081 9,275,328 249,753 Total 22,001,617 21,574,576 427,041

Income before Extraordinary Items 54,817,283 50,275,196 4,542,086 Add (Less) Extraordinary Items: 1,354,603 1,354,831 (228)

Gain/Loss on foreign Exchange 150 145 5 Gain/Loss on Sale of Disposed Assets 1,353,913 1,354,127 (214) Gain/Loss on Sale of Securities 539 558 (19)

NET INCOME 56,171,885 51,630,027 4,541,858

Particulars Total General Fund Special Education Fund

Local Governments of the Republic of the PhilippinesCondensed Statement of Income and Expenses, By Fund

For the year ended December 31, 2009(in thousand pesos)

32

Percent

Cash Flows From Operating ActivitiesCash Inflows

Share from Internal Revenue Allotment 183,180,824 151,974,607 31,206,217 20.53 Collection from Taxpayers 72,496,577 70,453,526 2,043,051 2.90 Receipts from sale of goods and services 12,670,368 9,231,060 3,439,308 37.26 Interest Income 1,909,451 1,605,395 304,056 18.94 Dividend Income 301,041 680,273 (379,232) (55.75) Other Receipts 76,833,540 63,475,164 13,358,376 21.05 Total Cash Inflows 347,391,801 297,420,025 49,971,775 16.80

Cash OutflowsPayments to -

Suppliers/Creditors 110,035,856 96,392,686 13,643,170 14.15 Employees 95,068,712 85,360,649 9,708,063 11.37

Interest Expenses 3,988,502 3,311,292 677,210 20.45 Other Disbursements 77,772,454 63,126,593 14,645,862 23.20 Total Cash Outflows 286,865,525 248,191,220 38,674,305 15.58

Cash Provided by (Used In) Operating Activities 60,526,276 49,228,805 11,297,470 22.95 Cash Flows From Investing Activities

Cash InflowsSale of Property, Plant and Equipment 1,369,727 561,675 808,052 143.86 Sale of Debt Securities of Other Entities 75,802 5,879,621 (5,803,819) (98.71) Collection of Principal on Loans to Other Entities 399,697 504,989 (105,293) (20.85) Total Cash Inflows 1,845,225 6,946,285 (5,101,060) (73.44)

Cash Outflows

45,744,958 36,253,769 9,491,189 26.18 Purchase of Debt Securities of Other Entities 806,445 3,866,451 (3,060,005) (79.14) Grant/Loans to Other Entities 720,023 584,451 135,572 23.20 Total Cash Outflows 47,271,426 40,704,670 6,566,756 16.13

Cash Provided by (Used In) Investing Activities (45,426,201) (33,758,385) (11,667,816) 34.56 Cash Flows From Financing Activities:

Cash InflowsIssuance of Debt Securities 609,618 326,760 282,858 86.56 Acquisition of Loan 14,361,574 9,577,957 4,783,616 49.94 Total Cash Inflows 14,971,192 9,904,717 5,066,475 51.15

Cash OutflowsRetirement/Redemption of Debt Securities 369,593 248,736 120,856 48.59 Payment of Loan Amortization 10,793,307 7,867,883 2,925,424 37.18 Total Cash Outflows 11,162,900 8,116,619 3,046,281 37.53

Cash Provided by (Used In) Financing Activities 3,808,292 1,788,098 2,020,194 112.98 Net Cash Provided By (Used In) 18,908,366 17,258,518 1,649,849 9.56 Cash at the Beginning of the Period 91,880,674 73,415,444 18,465,230 25.15 Cash at the End of the Period 110,789,040 90,673,962 20,115,079 22.18

Local Governments of the Republic of the PhilippinesComparative Statement of Cash Flows


Purchase of Property, Plant and Equipment and Public Infrastructures

Increase ( Decrease)

PARTICULARSAmount

2009 2008 Increase ( Decrease)

33


Share from Internal Revenue Allotment 183,180,824 59,822,016 48,401,679 74,957,129 Collection from Taxpayers 72,496,577 6,724,804 48,827,204 16,944,570 Receipts from sale of goods and services 12,670,368 2,698,684 6,806,449 3,165,234 Interest Income 1,909,451 577,793 1,056,416 275,242 Dividend Income 301,041 212,637 37,680 50,724 Other Receipts 76,833,540 27,196,459 25,764,859 23,872,223 Total Cash Inflows 347,391,801 97,232,393 130,894,286 119,265,121


Suppliers/Creditors 110,035,856 29,225,433 40,545,014 40,265,410 Employees 95,068,712 23,165,973 33,268,066 38,634,673

Interest Expenses 3,988,502 927,996 1,988,269 1,072,237 Other Disbursements 77,772,454 27,722,155 29,312,109 20,738,190 Total Cash Outflows 286,865,525 81,041,557 105,113,457 100,710,511

Cash Provided by (Used In) 60,526,276 16,190,836 25,780,830 18,554,610 Cash Flows From Investing Activities

Cash InflowsSale of Property, Plant and Equipment 1,369,727 209,548 1,066,590 93,589 Sale of Debt Securities of Other Entities 75,802 0 49,995 25,806 Collection of Principal on Loans to Other Entities 399,697 92,116 55,832 251,749 Total Cash Inflows 1,845,225 301,663 1,172,417 371,145

Cash Outflows

45,744,958 10,147,949 21,099,100 14,497,910 Purchase of Debt Securities of Other Entities 806,445 88,390 593,830 124,225 Grant/Loans to Other Entities 720,023 323,242 123,555 273,226 Total Cash Outflows 47,271,426 10,559,580 21,816,485 14,895,362

Cash Provided by (Used In) (45,426,201) (10,257,917) (20,644,068) (14,524,217) Cash Flows From Financing Activities:

Cash InflowsIssuance of Debt Securities 609,618 - 523,994 85,624 Acquisition of Loan 14,361,574 3,527,369 7,323,567 3,510,638 Total Cash Inflows 14,971,192 3,527,369 7,847,560 3,596,262

Cash OutflowsRetirement/Redemption of Debt Securities 369,593 51,067 240,495 78,030 Payment of Loan Amortization 10,793,307 2,382,051 5,710,206 2,701,050 Total Cash Outflows 11,162,900 2,433,119 5,950,702 2,779,080

Cash Provided by (Used In) 3,808,292 1,094,251 1,896,859 817,182 Net Cash Provided By (Used In) 18,908,366 7,027,170 7,033,621 4,847,576 Cash at the Beginning of the Period 91,880,674 24,441,717 41,436,925 26,002,031 Cash at the End of the Period 110,789,040 31,468,887 48,470,546 30,849,607

Local Governments of the Republic of the PhilippinesStatement of Cash Flows, By Unit


Municipalities


Particulars Total Provinces Cities

34


Share from Internal Revenue Allotment 183,180,824 182,476,814 669,314 34,695 Collection from Taxpayers 72,496,577 56,573,427 14,701,806 1,221,344 Receipts from sale of goods and services 12,670,368 12,199,502 27,704 443,162 Interest Income 1,909,451 1,607,756 77,055 224,640 Dividend Income 301,041 247,258 7,541 46,242 Other Receipts 76,833,540 48,718,187 4,081,867 24,033,487 Total Cash Inflows 347,391,801 301,822,944 19,565,287 26,003,570


Suppliers/Creditors 110,035,856 93,138,470 7,089,774 9,807,612 Employees 95,068,712 90,369,513 3,658,204 1,040,995

Interest Expenses 3,988,502 3,838,386 113,051 37,065 Other Disbursements 77,772,454 64,340,637 3,612,385 9,819,433 Total Cash Outflows 286,865,525 251,687,007 14,473,414 20,705,105

Cash Provided by (Used In) 60,526,276 50,135,937 5,091,873 5,298,466 Cash Flows From Investing Activities

Cash InflowsSale of Property, Plant and Equipment 1,369,727 1,076,764 101 292,862 Sale of Debt Securities of Other Entities 75,802 73,757 0 2,045 Collection of Principal on Loans to Other Entities 399,697 269,583 630 129,484 Total Cash Inflows 1,845,225 1,420,104 731 424,391

Cash Outflows

45,744,958 38,025,664 4,280,321 3,438,973 Purchase of Debt Securities of Other Entities 806,445 742,968 10,275 53,203 Grant/Loans to Other Entities 720,023 645,671 8,174 66,178 Total Cash Outflows 47,271,426 39,414,303 4,298,769 3,558,354

Cash Provided by (Used In) (45,426,201) (37,994,199) (4,298,038) (3,133,963) Cash Flows From Financing Activities:

Cash InflowsIssuance of Debt Securities 609,618 590,594 3,180 15,845 Acquisition of Loan 14,361,574 12,785,061 972,853 603,660 Total Cash Inflows 14,971,192 13,375,655 976,033 619,504

Cash OutflowsRetirement/Redemption of Debt Securities 369,593 340,415 14,500 14,677 Payment of Loan Amortization 10,793,307 10,396,895 143,847 252,566 Total Cash Outflows 11,162,900 10,737,310 158,347 267,243

Cash Provided by (Used In) 3,808,292 2,638,345 817,686 352,261 Net Cash Provided By (Used In) 18,908,366 14,780,082 1,611,521 2,516,763 Cash at the Beginning of the Period 91,880,674 70,900,138 7,662,041 13,318,494 Cash at the End of the Period 110,789,040 85,680,220 9,273,562 15,835,258

Local Governments of the Republic of the PhilippinesStatement of Cash Flows, By Fund


Trust Fund


Particulars Total General Fund Special

Education Fund

35

DETAILED FINANCIAL STATEMENTS

ASSETSCurrent Assets

CashCash on Hand 4,523,208 0.78 4,215,032 0.83

Cash in Vault 2,397,028 0.41 2,141,332 0.42Cash-Disbursing Officers 1,317,458 0.23 1,257,974 0.25Petty Cash Fund 97,552 0.02 99,025 0.02Payroll Fund 711,169 0.12 716,702 0.14

Cash in Banks-Local Currency 105,546,979 18.24 86,361,169 17.01Cash in Bank -Local Currency, Current Account 57,711,031 9.97 43,002,304 8.47Cash in Bank -Local Currency, Savings Account 11,128,310 1.92 8,837,203 1.74Cash in Bank -Local Currency, Time Deposits 36,707,638 6.34 34,521,662 6.80

Cash in Banks- Foreign Currency 718,853 0.12 97,760 0.02Cash in Bank - Foreign Currency, Current Account 28,054 0.00 7,155 0.00Cash in Bank - Foreign Currency, Savings Account 6,169 0.00 3,691 0.00Cash in Bank -Foreign Currency, Time Deposits 684,630 0.12 86,915 0.02

Total Cash 110,789,040 19.15 90,673,962 17.85Receivables -

Receivable Accounts 42,060,689 7.27 32,484,301 6.40Accounts Receivable 2,545,054 0.44 1,825,250 0.36Notes Receivable 207,537 0.04 77,693 0.02Due from Officers and Employees 2,239,692 0.39 2,140,672 0.42Loans Receivable-GOCCs 764,519 0.13 406,397 0.08Loans Receivable-LGUs 397,141 0.07 188,597 0.04Loans Receivable-Others 2,467,916 0.43 1,931,637 0.38Real Property Tax Receivable 18,731,764 3.24 16,041,132 3.16Special Education Tax Receivable 14,285,205 2.47 9,449,281 1.86Interests Receivable 421,861 0.07 423,643 0.08

Inter-agency Receivables 5,114,665 0.88 5,261,890 1.04Due from NGAs 1,383,729 0.24 1,848,908 0.36Due from GOCCs 379,388 0.07 570,810 0.11Due from LGUs 2,576,860 0.45 2,100,406 0.41Due from NGOs/POs 774,688 0.13 741,766 0.15

Intra-agency Receivables 7,548,489 1.30 5,940,848 1.17Due from Other Funds 7,548,489 1.30 5,940,848 1.17

Other Receivables 8,199,282 1.42 7,577,156 1.49Receivables - Disallowances/Charges 1,555,221 0.27 1,803,443 0.36Advances to Officers and Employees 3,267,657 0.56 2,910,472 0.57Other Receivables 3,376,405 0.58 2,863,240 0.56

Total Receivables 62,923,125 10.87 51,264,196 10.09Inventories -

Materials 124,279 0.02 93,663 0.02Raw Materials Inventory 13,641 0.00 11,502 0.00Work-in Process Inventory 1,213 0.00 1,834 0.00Finished Goods Inventory 1,459 0.00 904 0.00Merchandise Inventory 107,966 0.02 79,424 0.02

Supplies 9,996,455 1.73 7,730,614 1.52Office Supplies Inventory 1,183,301 0.20 1,053,554 0.21Accountable Forms Inventory 293,387 0.05 263,400 0.05Animal/Zoological Supplies Inventory 73,095 0.01 51,464 0.01Food Supplies Inventory 104,928 0.02 65,667 0.01Drugs and Medicine Inventory 1,187,648 0.21 875,061 0.17Medical, Dental and Laboratory Supplies Inventory 1,518,974 0.26 1,089,120 0.21Gasoline, Oil and Lubricants Inventory 729,115 0.13 623,375 0.12Agricultural Supplies Inventory 260,351 0.04 213,833 0.04Textbooks and Instructional Materials Inventory 1,318,782 0.23 686,217 0.14Military and Police Supplies Inventory 4,986 0.00 6,681 0.00Other Supplies Inventory 2,257,172 0.39 1,752,355 0.35Confiscated/Abandoned/Seized Goods Inventory 1,416 0.00 515 0.00

(in thousand pesos)

Local Governments of the Republic of the PhilippinesComparative Detailed Balance Sheet

December 31, 2009

Particulars 2008

Amount Percentage Distribution

2009


39

(in thousand pesos)


December 31, 2009

Particulars 2008


2009

Amount Percentage Distribution Spare Parts Inventory 230,724 0.04 201,688 0.04Construction Materials Inventory 832,576 0.14 847,684 0.17

Agricultural, Fishery and Forestry Products 179,756 0.03 162,669 0.03Livestock Inventory 137,613 0.02 130,079 0.03Crops and Fruits Inventory 16,697 0.00 8,038 0.00Other Agricultural, Fishery and Forestry Products Inventory 25,447 0.00 24,552 0.00

Total Inventories 10,300,490 1.78 7,986,947 1.57Prepayments

Prepaid Rent 3,416 0.00 2,638 0.00Prepaid Insurance 126,414 0.02 120,642 0.02Prepaid Interest 21,985 0.00 29,592 0.01Deposit on Letters of Credit 307,619 0.05 621,253 0.12Advances to Contractors 1,426,067 0.25 1,045,546 0.21Deferred Charges 433,379 0.07 345,437 0.07Other Prepaid Expenses 162,513 0.03 188,538 0.04

Total Prepayments 2,481,394 0.43 2,353,648 0.46Other Current Assets

Guaranty Deposits 125,265 0.02 240,817 0.05Other Current Assets 277,603 0.05 333,144 0.07

Total Other Current Assets 402,868 0.07 573,961 0.11Total Current Assets 186,896,917 32.30 152,852,713 30.10

InvestmentsInvestment in Securities 1,864,572 0.32 3,483,365 0.69

Investments in Treasury Bills 620,075 0.11 942,800 0.19Investments in Stocks 400,314 0.07 851,720 0.17Investments in Bonds 40,634 0.01 837,184 0.16Other Investments and Marketable Securities 803,550 0.14 851,662 0.17

Sinking Fund 80,954 0.01 530,271 0.10Sinking Fund 80,954 0.01 530,271 0.10

Total Investments 1,945,526 0.34 4,013,636 0.79Property, Plant and Equipment

Land and Land ImprovementsLand 66,177,862 11.44 56,661,677 11.16Land Improvements 23,025,096 3.98 21,288,412 4.19Electrification, Power and Energy Structures 2,550,893 0.44 2,100,201 0.41

Total Land Improvements 91,753,851 15.86 80,050,290 15.76Buildings

Office Buildings 53,586,060 9.26 49,809,082 9.81School Buildings 38,932,821 6.73 37,037,901 7.29Hospitals and Health Centers 10,411,362 1.80 8,467,141 1.67Markets and Slaughterhouses 18,479,769 3.19 14,822,651 2.92Other Structures 26,163,825 4.52 21,043,738 4.14

Total Buildings 147,573,836 25.50 131,180,513 25.83Leasehold Improvements

Leasehold Improvements, Land 10,903 0.00 11,193 0.00Leasehold Improvements, Buildings 4,631 0.00 5,034 0.00Other Leasehold Improvements 1,193 0.00 2,945 0.00

Total Leasehold Improvements 16,728 0.00 19,172 0.00Office Equipment, Furniture and Fixtures

Office Equipment 6,727,971 1.16 6,640,420 1.31Furniture and Fixtures 7,114,224 1.23 6,572,456 1.29IT Equipment and Software 7,269,691 1.26 6,765,493 1.33Library Books 1,252,435 0.22 1,353,118 0.27

Total Office Equipment, Furniture and Fixtures 22,364,322 3.86 21,331,487 4.20

40

(in thousand pesos)


December 31, 2009

Particulars 2008


2009

Amount Percentage Distribution Machineries and Equipment

Machineries 1,058,674 0.18 1,076,974 0.21Agricultural, Fishery and Forestry Equipment 921,947 0.16 835,497 0.16Communication Equipment 2,557,957 0.44 1,919,137 0.38Construction and Heavy Equipment 15,485,508 2.68 13,314,334 2.62Firefighting Equipment and Accessories 766,563 0.13 619,662 0.12Hospital Equipment 3,098,660 0.54 2,949,659 0.58Medical, Dental and Laboratory Equipment 1,894,849 0.33 1,471,075 0.29Military and Police Equipment 347,136 0.06 307,588 0.06Sports Equipment 160,160 0.03 151,721 0.03Technical and Scientific Equipment 1,628,112 0.28 1,276,079 0.25Other Machineries and Equipment 5,013,686 0.87 4,379,304 0.86

Total Machineries and Equipment 32,933,252 5.69 28,301,029 5.57Transportation Equipment

Motor Vehicles 13,396,136 2.31 12,207,002 2.40Watercrafts 831,095 0.14 723,910 0.14Other Transportation Equipment 279,658 0.05 241,055 0.05

Total Transportation Equipment 14,506,889 2.51 13,171,966 2.59Other Property, Plant and Equipment

Other Property, Plant and Equipment 5,884,845 1.02 5,341,039 1.05Total Other Property, Plant and Equipment 5,884,845 1.02 5,341,039 1.05

Public InfrastructureRoads, Highways and Bridges 5,592,962 0.97 6,867,684 1.35Plazas, Parks and Monuments 318,495 0.06 298,787 0.06Ports, Lighthouses and Harbors 146,376 0.03 251,421 0.05Artesian, Wells, Reservoirs, Pumping Stations and Conduits 1,976,300 0.34 1,849,184 0.36Irrigation, Canals and Laterals 586,698 0.10 499,824 0.10Flood Controls 113,089 0.02 212,361 0.04Waterways, Aqueducts, Seawalls, River Walls and Others 815,263 0.14 579,944 0.11Other Public Infrastructures 1,775,083 0.31 1,750,644 0.34

Total Public Infrastructures 11,324,266 1.96 12,309,850 2.42REFORESTATION PROJECTS

Reforestation - Upland 226,032 0.04 156,489 0.03Reforestation - Marshland/Swampland 26,289 0.00 16,464 0.00Total Reforestation Projects 252,320 0.04 172,952 0.03

Construction in ProgressConstruction in Progress - Agency Assets 26,617,164 4.60 27,753,332 5.46Public Infrastructures / Reforestation Projects 32,123,712 5.55 27,581,762 5.43

Construction in Progress -Roads, Highways and Bridges 17,414,625 3.01 15,071,533 2.97Construction in Progress -Plazas, Parks 840,005 0.15 640,678 0.13Construction in Progress -Ports, Lighthouses 698,027 0.12 592,919 0.12Construction in Progress -Artesian, Wells, Reservoirs, Pumping Stations and Conduits 2,191,403 0.38 1,609,041 0.32Construction in Progress - Irrigation, Canals 2,246,496 0.39 1,854,707 0.37Construction in Progress - Flood Controls 556,154 0.10 376,282 0.07Construction in Progress - Waterways, Aqueducts, Seawalls River Walls and Others 1,004,482 0.17 776,729 0.15Construction in Progress - Other Public Infrastructures 7,005,181 1.21 6,290,973 1.24Construction in Progress - Reforestation - Upland 111,416 0.02 225,115 0.04Construction in Progress - Reforestation - Marshland/ Swampland 55,924 0.01 143,787 0.03

Total Construction in Progress 58,740,877 10.15 55,335,094 10.90Total Property, Plant and Equipment 385,351,186 66.59 347,213,394 68.37

41

(in thousand pesos)


December 31, 2009

Particulars 2008


2009

Amount Percentage Distribution Other Assets

Work/Other Animals 264,875 0.05 234,619 0.05Breeding Stocks 237,432 0.04 227,185 0.04Arts, Archeological Speciment and Other Exhibits 85,058 0.01 21,008 0.00Items in Transit 1,005,370 0.17 971,446 0.19Other Assets 2,897,131 0.50 2,322,213 0.46Total Other Assets 4,489,866 0.78 3,776,470 0.74

TOTAL ASSET 578,683,495 100.00 507,856,212 100.00

LIABILITIESCurrent Liabilities

Payable Accounts 29,321,086 5.07 21,411,113 4.22Accounts Payable 27,132,881 4.69 19,509,738 3.84Notes Payable 64,340 0.01 95,797 0.02Due to Officers and Employees 1,982,040 0.34 1,672,999 0.33Interest Payable 141,825 0.02 132,579 0.03

Inter-Agency Payables 31,346,616 5.42 26,185,916 5.16Due to BIR 2,714,534 0.47 2,801,198 0.55Due to GSIS 1,759,515 0.30 1,866,603 0.37Due to PAG-IBIG 256,382 0.04 232,499 0.05Due to PHILHEALTH 267,072 0.05 264,675 0.05Due to Other NGAs 17,427,581 3.01 13,144,727 2.59Due to Other GOCCs 946,987 0.16 708,216 0.14Due to LGUs 7,974,545 1.38 7,167,999 1.41

Intra-Agency Payables 8,090,390 1.40 6,579,334 1.30Due to Other Funds 8,090,390 1.40 6,579,334 1.30

Other Liability Accounts 9,779,080 1.69 8,617,445 1.70Guaranty Deposits Payable 1,400,599 0.24 1,148,558 0.23Performance/Bidders/Bail Bonds Payable 908,749 0.16 638,616 0.13Tax Refunds Payable 159,940 0.03 124,749 0.02Other Payables 7,309,792 1.26 6,705,522 1.32

Total Current Liabilities 78,537,171 13.57 62,793,808 12.36Long Term Liabilities

Mortgate/Bonds/Loans PayableMortgage Payable 948,693 0.16 708,285 0.14Bonds Payable - Domestic 3,708,510 0.64 3,340,290 0.66Loans Payable - Domestic 47,851,845 8.27 36,845,418 7.26Loans Payable - Foreign 3,912,527 0.68 4,379,266 0.86Other Long-Term Liabilities 1,138,108 0.20 1,505,684 0.30

Total Long-Term Liabilities 57,559,683 9.95 46,778,943 9.21TOTAL LIABILITIES 136,096,854 23.52 109,572,751 21.58

DEFERRED CREDITSDeferred Real Property Tax Income 20,804,771 3.60 16,019,408 3.15Deferred Special Education Tax Income 12,506,018 2.16 9,749,492 1.92Other Deferred Credits 6,421,556 1.11 4,776,732 0.94TOTAL DEFERRED CREDITS 39,732,346 6.87 30,545,632 6.01

EQUITYGovernment Equity - Beg. 357,841,229 61.84 Additions/(Deductions) to Beg. Bal. 10,275,926 1.78 Adjusted Beg. Bal. 368,117,155 63.61 Add: Retained Operating Surplus: - - Current Operations 56,171,885 9.71 Prior Year's Adjustments (3,344,411) (0.58)

Less: Transfer to Registry - - Public Infrastructures 17,824,856 3.08 Reforestation Projects 265,479 0.05

Government Equity 402,854,295 69.62 367,737,829 72.41 TOTAL LIABILITIES AND EQUITY 578,683,495 100.00 507,856,212 100.00

42

ASSETSCurrent Assets

CashCash on Hand 4,523,208 672,940 2,321,529 1,528,739

Cash in Vault 2,397,028 237,849 1,128,548 1,030,631 Cash-Disbursing Officers 1,317,458 295,874 707,530 314,055 Petty Cash Fund 97,552 25,587 21,286 50,680 Payroll Fund 711,169 113,631 464,165 133,373

Cash in Banks-Local Currency 105,546,979 30,332,388 46,047,321 29,167,270 Cash in Bank -Local Currency, Current Account 57,711,031 14,636,710 19,817,687 23,256,633 Cash in Bank -Local Currency, Savings Account 11,128,310 2,936,484 6,937,617 1,254,209 Cash in Bank -Local Currency, Time Deposits 36,707,638 12,759,194 19,292,017 4,656,428

Cash in Banks- Foreign Currency 718,853 463,559 101,696 153,598 Cash in Bank - Foreign Currency, Current Account 28,054 32 1,307 26,715 Cash in Bank - Foreign Currency, Savings Account 6,169 1,200 341 4,628 Cash in Bank -Foreign Currency, Time Deposits 684,630 462,327 100,047 122,255

Total Cash 110,789,040 31,468,887 48,470,546 30,849,607 Receivables

Receivable Accounts 42,060,689 2,191,002 23,561,651 16,308,036 Accounts Receivable 2,545,054 436,791 1,665,228 443,035 Notes Receivable 207,537 41,306 157,289 8,943 Due from Officers and Employees 2,239,692 295,729 544,048 1,399,915 Loans Receivable-GOCCs 764,519 268,449 67,380 428,690 Loans Receivable-LGUs 397,141 143,049 124,954 129,138 Loans Receivable-Others 2,467,916 908,451 533,049 1,026,416 Real Property Tax Receivable 18,731,764 46,203 11,460,437 7,225,124 Special Education Tax Receivable 14,285,205 45,353 8,608,725 5,631,127 Interests Receivable 421,861 5,673 400,540 15,648

Inter-agency Receivables 5,114,665 2,878,829 1,321,052 914,784 Due from NGAs 1,383,729 558,938 503,091 321,700 Due from GOCCs 379,388 222,655 60,609 96,124 Due from LGUs 2,576,860 1,713,896 518,052 344,911 Due from NGOs/POs 774,688 383,340 239,299 152,050

Intra-agency Receivables 7,548,489 2,073,579 3,132,919 2,341,992 Due from Other Funds 7,548,489 2,073,579 3,132,919 2,341,992

Other Receivables 8,199,282 2,657,949 2,811,230 2,730,104 Receivables - Disallowances/Charges 1,555,221 144,613 848,950 561,657 Advances to Officers and Employees 3,267,657 1,052,274 940,083 1,275,300 Other Receivables 3,376,405 1,461,062 1,022,196 893,146

Total Receivables 62,923,125 9,801,359 30,826,851 22,294,915 Inventories

Materials 124,279 71,846 38,461 13,972 Raw Materials Inventory 13,641 6,069 3,481 4,091 Work-in Process Inventory 1,213 218 - 995 Finished Goods Inventory 1,459 523 - 936 Merchandise Inventory 107,966 65,035 34,980 7,951

Supplies 9,996,455 3,486,084 5,821,021 689,350 Office Supplies Inventory 1,183,301 281,699 780,585 121,016 Accountable Forms Inventory 293,387 115,237 124,083 54,067 Animal/Zoological Supplies Inventory 73,095 48,198 19,670 5,228 Food Supplies Inventory 104,928 58,007 29,649 17,272 Drugs and Medicine Inventory 1,187,648 531,838 558,307 97,503 Medical, Dental and Laboratory Supplies Inventory 1,518,974 521,215 931,886 65,873 Gasoline, Oil and Lubricants Inventory 729,115 322,126 371,247 35,742 Agricultural Supplies Inventory 260,351 172,734 45,465 42,153 Textbooks and Instructional Materials Inventory 1,318,782 456,731 805,572 56,479 Military and Police Supplies Inventory 4,986 936 2,354 1,696 Other Supplies Inventory 2,257,172 550,061 1,590,992 116,119 Confiscated/Abandoned/Seized Goods Inventory 1,416 - 488 928

Particulars

Local Governments of the Republic of the PhilippinesDetailed Balance Sheet, By Unit


Total Provinces Cities Municipalities

43

Particulars

Local Governments of the Republic of the PhilippinesDetailed Balance Sheet, By Unit


Total Provinces Cities Municipalities

Spare Parts Inventory 230,724 70,115 143,751 16,858 Construction Materials Inventory 832,576 357,187 416,973 58,416

Agricultural, Fishery and Forestry Products 179,756 74,043 29,992 75,722 Livestock Inventory 137,613 49,713 25,033 62,867 Crops and Fruits Inventory 16,697 8,373 1,752 6,572 Other Agricultural, Fishery and Forestry Products Inventory 25,447 15,958 3,207 6,282

Total Inventories 10,300,490 3,631,973 5,889,473 779,044 Prepayments

Prepaid Rent 3,416 1,383 1,180 853 Prepaid Insurance 126,414 37,672 64,394 24,348 Prepaid Interest 21,985 91 21,389 505 Deposit on Letters of Credit 307,619 50,944 192,551 64,125 Advances to Contractors 1,426,067 487,748 612,864 325,454 Deferred Charges 433,379 84,002 289,373 60,004 Other Prepaid Expenses 162,513 23,561 105,571 33,381

Total Prepayments 2,481,394 685,401 1,287,322 508,670 Other Current Assets

Guaranty Deposits 125,265 11,517 85,344 28,404 Other Current Assets 277,603 25,269 219,929 32,405

Total Other Current Assets 402,868 36,786 305,274 60,809 Total Current Assets 186,896,917 45,624,407 86,779,466 54,493,045

InvestmentsInvestment in Securities 1,864,572 1,053,471 711,466 99,635

Investments in Treasury Bills 620,075 116,527 502,998 549 Investments in Stocks 400,314 342,605 42,393 15,316 Investments in Bonds 40,634 39,281 1,041 312 Other Investments and Marketable Securities 803,550 555,058 165,034 83,458

Sinking Fund 80,954 13,598 56,000 11,356 Sinking Fund 80,954 13,598 56,000 11,356

Total Investments 1,945,526 1,067,069 767,466 110,991 Property,

2009 Annual Financial Report of Local Governments - Volume ...Region IV 10 14 202 5,454 Region V 6 7...

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