2006
Annual Financial Report
Government-Owned and/or
Controlled Corporations
Volume II-A
TABLE OF CONTENTS
Page
I INTRODUCTION
1
II FINANCIAL STATEMENTS
Condensed Balance Sheet
Condensed Statement of Income and Expenses
Consolidated Statement of Changes in Equity
Condensed Statement of Cash Flows
III NOTES TO FINANCIAL STATEMENTS
3
4
5
7
8
IV FINANCIAL HIGHLIGHTS AND ANALYSES
V
Executive Summary
14
Balance Sheet
Assets
Liabilities
Deferred Credits
Equity
16
31
36
36
Statement of Income and Expenses
Income
Subsidy Income
Expenses
Share of the National Government on the Income of GOCCs
42
46
47
53
Statement of Cash Flows
Operating Activities
Investing Activities
Financing Activities
55
56
57
ACRONYMS
60
Introduction
INTRODUCTION
The Commission on Audit (COA) is the Philippines' Supreme State Audit Institution,
responsible for auditing all government agencies. In addition, the COA prepares an Annual Financial
Report (AFR) for Government-Owned and/or Controlled Corporations (GOCCs) and submits the same
to the President and the Congress of the Philippines in compliance to Section 4, Article IX-D of the
Philippine Constitution.
The AFR shows the financial position, results of operations, sources and applications of cash
and the changes in the equity of government corporations as of December 31, 2006. To enhance the
information value, the financial statements included in this AFR are accompanied by explanatory notes
supported by tabular presentations and textual analyses for asset, liability, equity, income and expense
accounts.
The AFR intends to serve as a potent tool for corporate planning, budgeting and policy
formulation and as a medium to enlighten the general public on how GOCCs manage their finances and
operations.
This is the second year that the AFR is prepared based on the prescribed Chart of Accounts
under the New Government Accounting System (NGAS). The NGAS Chart of Accounts aims to: (a)
ensure uniformity in the use of accounts for similar transactions, (b) facilitate consolidation of accounts
and monitoring of GOCCs’ financial transactions, and (c) ensure efficient implementation by
concerned GOCCs of the computerized NGAS, otherwise known as the e-NGAS.
To provide timely and accurate financial reports and other related information useful to
government executives, managers and administrators for control and decision making purposes, to
enhance uniformity in the application of government accounting rules and to facilitate the consolidation
of financial reports, the COA developed the e-NGAS software for use of all government agencies
including government corporations.
During the year, the following government corporations successfully installed the e-NGAS:
•
•
•
•
•
•
Silang Water District
Metropolitan Waterworks and Sewerage System
Metro Lipa Water District
National Dairy Authority
Philippine Fisheries Development Authority
Philippine Institute for Development Studies
This brings to eleven the total number of GOCCs implementing the eNGAS since it was introduced to
GOCCs in 2005.
While NGAS was implemented in all GOCCs effective January 1, 2005, except Government
Financial Institutions, GSIS and SSS, some corporations were not able to convert their accounts during
the year while others used accounts not included in the prescribed NGAS Chart of Accounts, resulting
to different treatment and presentation in the consolidated financial statements.
The financial information presented in this report were generated from the Balance Sheet,
Statement of Income and Expenses, Statement of Cash Flows and Statement of Changes in Equity
submitted by 408 or 67.88 percent of 601GOCCs including water districts to the Government
Accountancy and Financial Management Information System (GAFMIS) Sector, thru the Corporate
Government Sector (CGS), COA as of July 24, 2007. Of the 408, 90 were audited and 318 were not.
A significant feature of this year’s AFR is the inclusion of Water Districts. As of date, there
are 455 active Water Districts nationwide. Out of the total, 274 or 60.22 percent submitted their
financial statements/reports. These were incorporated in the AFR by consolidating the individual
1
financial statements by province and by region as shown in Volume II – B2. The consolidated
Financial Statements of 274 Water Districts are presented under Public Utilities Cluster shown in
Volume II – B1.
COA Accounting Circular Letter No. 2007-003 dated January 19, 2007, requires GOCCs and
their subsidiaries to submit in printed and digital copies year-end financial statements and other
reports/schedules for inclusion in the AFR for fiscal year 2006 and onwards on or before February 14
of each year. The PNOC-Energy Development Corporation, Ilagan Water District and Jaro Water
District were not able to provide COA-GAFMIS their Statement of Income and Expenses while those
that did submit Balance Sheet were Santiago City Water District, Catbalogan Water District, Ipil-Titay
Water District and Libmanan Water District. The GOCCs which failed to submit any of the required
financial statements are the following:
•
•
•
•
•
•
•
•
•
•
•
•
•
AFP Retirement and Separation Benefit System
Resources and Investments Corporate Home, Inc
Matrix Realty Development Corporation
RSBS Enterprises, Inc
RSBS Land, Inc
Southern Utility Management and Services, Inc
Light Rail Transit Authority
Philippine National Railways
First Centennial Clark Corporation
Philippine Mining Development Corporation
Philippine Forest Corporation
RPN 9
181 Water Districts ( Details shown in Schedule 6, Volume II-B)
This AFR consists of two volumes, namely:
Volume II-A
– Condensed Financial Statements of GOCCs, Notes to Financial
Statements, Financial Highlights and Analyses of the Financial Statements
Volume II-B1
– Consolidated Detailed Financial Statements by Cluster/GOCCs and
Schedules of Financial Statements
Volume II-B2
– Consolidated Detailed Financial Statements by Water Districts, by
Region/Province
It is expected that the publication of this Annual Financial Report of Government-Owned
and/or Controlled Corporations will promote transparency, good governance and benefit not only the
implementers of government projects, but also the end-users as this report will be published in the
COA Website www.coa.gov.ph for the information of all concerned and the general public.
2
FINANCIAL
STATEMENTS
Republic of the Philippines
Government Owned and/or Controlled Corporations
Condensed Balance Sheet
December 31, 2006
Amount (in thousand pesos)
Particulars
Percent
2006
2005
Increase/
(Decrease)
2,764,381,714.35
555,989,146.00
772,577,037.49
567,904,315.24
701,077,400.30
79,450,960.84
34,965,403.29
52,417,451.19
2,186,312,425.38
504,022,119.00
597,493,938.11
247,992,374.98
656,597,470.80
85,059,763.05
43,819,205.18
51,327,554.27
578,069,288.97
51,967,027.00
175,083,099.38
319,911,940.26
44,479,929.50
(5,608,802.21)
(8,853,801.89)
1,089,896.92
Long - Term Receivables - net
483,516,766.28
466,493,187.69
17,023,578.59
3.65
Investments - net
544,920,516.32
628,874,351.41
(83,953,835.09)
(13.35)
1,225,722,307.48
806,092,895.33
124,262,444.13
1,116,913.23
20,286,403.91
30,791,907.61
6,924,983.91
830,298,580.04
(668,775,596.20)
74,723,775.53
1,214,271,713.80
793,774,980.42
123,815,319.97
834,101.29
19,393,200.88
26,267,917.85
5,513,019.63
789,035,829.36
(610,263,293.61)
65,900,638.02
11,450,593.68
12,317,914.91
447,124.16
282,811.94
893,203.03
4,523,989.76
1,411,964.28
41,262,750.68
(58,512,302.59)
8,823,137.52
0.94
1.55
0.36
33.91
4.61
17.22
25.61
5.23
9.59
13.39
ASSETS
Current Assets
International Reserves (Note 2)
Cash (Note 3)
Short Term Investments
Receivables - net (Note 1e and 4)
Inventories - net (Note 1f)
Prepayments and Deferred Charges
Other Current Assets
Property Plant and Equipment - net (1d)
Land and Land Improvements (Note 5)
Buildings
Leasehold Improvements
Office Equipment, Furniture and Fixtures
Machineries and Equipment
Transportation Equipment
Other Property, Plant and Equipment (Note 6)
Accumulated Depreciation
Construction in Progress
26.44
10.31
29.30
129.00
6.77
(6.59)
(20.21)
2.12
7,534,245.86
5,964,628.43
1,569,617.43
26.32
248,433,266.25
216,395,299.36
32,037,966.89
14.81
5,274,508,816.54
4,718,311,606.08
556,197,210.46
11.79
LIABILITIES AND EQUITY
Current Liabilities
Deposit Liabilities
Currency in Circulation
Payable Accounts (Note 8)
1,740,599,703.24
859,334,097.25
384,491,616.00
496,773,989.99
1,434,523,493.74
611,833,442.35
336,557,506.00
486,132,545.39
306,076,209.50
247,500,654.90
47,934,110.00
10,641,444.60
21.34
40.45
14.24
2.19
Long - Term Liabilities
Notes Payable
Bonds Payable
Loans Payable
Other Long - Term Liabilities
2,213,919,920.98
10,088,005.40
303,496,952.63
1,282,655,491.84
617,679,471.11
2,188,101,382.53
83,505.40
268,797,127.23
1,249,767,961.18
669,452,788.72
25,818,538.45
1.18
10,004,500.00 11,980.66
34,699,825.40
12.91
32,887,530.66
2.63
(51,773,317.61)
(7.73)
TOTAL LIABILITIES
3,954,519,624.22
3,622,624,876.26
331,894,747.96
56,559,000.51
60,513,944.66
1,263,430,191.81
1,035,172,785.16
228,257,406.66
22.05
5,274,508,816.54
4,718,311,606.08
556,197,210.46
11.79
Intangible Assets
Other Assets (Note 7)
TOTAL ASSETS
Deferred Credits
EQUITY
TOTAL LIABILITIES AND EQUITY
Difference between totals and sum of components is due to rounding off.
3
(3,954,944.15)
9.16
(6.54)
Republic of the Philippines
Government Owned and/or Controlled Corporations
Condensed Statement of Income and Expenses
Year Ended December 31, 2006
Amount (in thousand pesos)
ACCOUNT TITLE
Percent
2006
2005
Increase/
(Decrease)
718,733,824.24
680,146,457.76
38,587,366.48
5.67
726,318.44
21,089,960.22
537,287,473.52
58,481,684.87
101,148,387.19
575,758.22
13,883,887.10
503,976,967.58
52,670,395.95
109,039,448.91
150,560.22
7,206,073.12
33,310,505.94
5,811,288.92
(7,891,061.72)
26.15
51.90
6.61
11.03
(7.24)
Less: Share of National Government (Note 10)
Income after Share of National Government
12,599,776.72
706,134,047.52
12,530,636.14
667,615,821.62
69,140.58
38,518,225.90
0.55
5.77
EXPENSES (Note 1.d)
546,733,681.48
517,651,725.48
29,081,956.00
5.62
51,300,583.74
435,230,879.64
60,202,218.09
48,177,891.01
407,833,515.97
61,640,318.50
3,122,692.73
27,397,363.68
(1,438,100.41)
6.48
6.72
(2.33)
Net Income(Loss) Before Subsidy
Add: Subsidy from Other National Government Agency (Note 11)
Subsidy from GOCCs
Subsidy from Subsidiaries/Affiliates
159,400,366.04
13,350,350.38
135,498.43
31,105.34
149,964,096.14
17,827,500.60
104,205.98
5,758.56
9,436,269.90
(4,477,150.22)
31,292.45
25,346.77
6.29
(25.11)
30.03
440.16
Net Income(Loss) Before Tax
Less:Provision for (Benefit from) Income Tax
Final and Creditable Withholding Tax
172,917,320.19
4,321,002.08
21,277.48
167,901,561.28
2,283,570.22
24,923.66
5,015,758.90
2,037,431.86
(3,646.18)
2.99
89.22
(14.63)
NET INCOME(LOSS) AFTER TAX
168,575,040.62
165,593,067.40
2,981,973.22
1.80
INCOME (Note 1.d)
Permits and Licenses
Service Income
Business Income
Other Income
Gain/Premiums
Personal Services
Maintenance and Other Operating Expenses
Financial Expenses
Difference between totals and sum of components is due to rounding off.
4
Republic of the Philippines
Government Owned and/or Controlled Corporations
Consolidated Statement of Changes in Equity
Year Ended December 31, 2006
(in thousand pesos)
TOTAL
Particulars
2006
2005
Government Equity
Balance at beginning of the year
Reclassification of Capital Accounts
Additions/Deductions
Balance at end of the year
192,406,936.85
13,912,529.67
206,319,466.52
166,230,416.76
13,328,963.07
10,500,478.28
190,059,858.11
Capital Stock
Balance at beginning of the year
Deposit for Future Subcriptions
Additions/Deductions
Balance at end of the year
224,526,857.58
5,002,545.03
229,705,867.40
222,583,195.91
1,191,457.33
(2,324,206.40)
221,450,446.84
Subscribed Capital Stock
Balance at beginning of the year
Additions/Deductions
Balance at end of the year
6,583,158.12
(69,587.72)
6,513,570.41
6,529,564.19
(52,671.79)
6,476,892.41
Donated Capital
Balance at beginning of the year
Additions/Deductions
Balance at end of the year
13,013,353.22
3,977.67
13,017,330.89
12,765,435.10
192,766.71
12,958,201.81
Paid-in Capital in Excess of Par Value
Balance at beginning of the year
Additions/Deductions
Balance at end of the year
3,803,809.75
6,272,912.65
10,076,722.40
3,651,120.44
604.12
3,651,724.56
Appraisal Capital
Balance at beginning of the year
Additions/Deductions
Balance at end of the year
279,904,808.37
(7,005,833.29)
272,898,975.07
Other Equity Instruments
Balance at beginning of the year
Additions/Deductions
Balance at end of the year
6,373,900.00
6,373,900.00
Treasury Stock
Balance at beginning of the year
Additions/Deductions
Balance at end of the year
(16,066.72)
(16,066.72)
Restricted Capital
Balance at beginning of the year
Additions/Deductions
Balance at end of the year
Retained Earnings
Balance at beginning of the year
Transfers to (from) Reserve
Prior Years’ Adjustments
Changes during the year
Net Income/Loss for the year
Net Subsidy from NG
Remittance of Income to NGAs
Reclassification of Capital and Liability Accounts
Distribution of Income
Others
5
217,671,271.98
63,658,409.24
281,329,681.22
-
(15,889.42)
(15,889.42)
806,933,879.08
53,547,427.95
860,481,307.03
747,341,982.87
59,695,898.03
807,037,880.90
(494,389,097.29)
(44,514,556.68)
247,736.42
5,537,381.21
174,338,401.99
(689,141.03)
(3,954.25)
(503,750.74)
(579,424,436.66)
(65,559,653.42)
(22,866,369.57)
682,851.42
166,386,424.39
(920,408.75)
5,730,794.97
(7,256.71)
(358,689.45)
Republic of the Philippines
Government Owned and/or Controlled Corporations
Consolidated Statement of Changes in Equity
Year Ended December 31, 2006
(in thousand pesos)
TOTAL
Particulars
2006
Sinking Fund
Dividends
Net Unrealized Gain/Loss in the Value of Investments
Balance at end of the year
Total Equity
(857,050.84)
(26,173,963.69)
45,067,113.71
(341,940,881.19)
1,263,430,191.81
Difference between totals and sum of componenents is due to rounding off.
6
2005
(857,084.11)
(12,203,889.93)
21,621,706.56
(487,776,011.26)
1,035,172,785.16
Republic of the Philippines
Government Owned and/or Controlled Corporations
Condensed Statement of Cash Flows
Year Ended December 31, 2006
(in thousand pesos)
Amount (in thousand pesos)
Particulars
2006
2005
Increase/
(Decrease)
Percent
Cash Flows From Operating Activities
Cash Inflows
738,306,781.16
831,580,677.39
(93,273,896.23)
(11.22)
Cash Outflows
577,063,149.02
655,009,812.86
(77,946,663.84)
(11.90)
161,243,632.14
176,570,864.54
(15,327,232.40)
(8.68)
Cash Provided by (Used in) Operating Activities
Cash Flows From Investing Activities
Cash Inflows
519,550,164.73
506,533,067.34
13,017,097.39
2.57
Cash Outflows
405,729,668.20
486,703,732.57
(80,974,064.37)
(16.64)
113,820,496.53
19,829,334.78
93,991,161.76
474.00
Cash Provided by (Used in) Investing Activities
Cash Flows From Financing Activities
Cash Inflows
364,458,320.20
292,878,352.09
71,579,968.11
24.44
Cash Outflows
418,005,590.42
384,153,892.41
33,851,698.00
8.81
(53,547,270.22)
(91,275,540.32)
37,728,270.10
(41.33)
(25,098,140.89)
(45,730,602.30)
20,632,461.41
(45.12)
196,418,717.57
59,394,056.69
137,024,660.88
230.70
637,184,789.00
576,167,496.90
61,017,292.10
10.59
833,603,506.57
635,561,553.59
198,041,952.98
31.16
Cash Provided by (Used in) Financing Activities
Effects of Exchange Rate Changes on Cash
and Cash Equivalents
Total Cash provided by Operating, Investing and
Financing Activities
Add:Cash and Cash Equivalents, Beginning
as restated
Cash and Cash Equivalents, Ending December 31, 2006
Difference between totals and sum of components is due to rounding off.
7
Notes to
Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.
Summary of Significant Accounting Policies
a.
Basis for Consolidation
The Consolidated Financial Statements reflect the aggregate account balances based on
inancial statements submitted within the cut-off date by 408 GOCCs, including Water Districts
(WDs), thru the Corporate Government Sector of the Commission on Audit as shown below:
Cluster
I
II
III
IV
V
VI
Total
Financial A
Financial B
Public Utilities
Industrial and Area Development and
Regulatory
Agricultural, Trading and Promotional
Social, Cultural and Scientific
Total
a Includes 455 WDs
b Includes 274 WDs
14
38
472
Received
Unsubmitted
14
32
b
289
6
c
183
31
28
18
30
26
17
1
2
1
601
408
193
a
c Includes 181 WDs
The financial data consolidated in this report includes 91 audited and 317 unaudited financial
statements of GOCCs. Of the unaudited financial statements, 273 were from Water Districts.
List of GOCCs with audited and unaudited financial statements is presented in Schedule 6 of
Volume II-B1.
The GOCCs with unsubmitted financial statements and reports are:
• Armed Forces of the Philippines’ Retirement and Separation Benefits
System
• Matrix Realty Development Corporation
• RSBS Land, Inc.
• RSBS Enterprises, Inc.
• Resources and Investment Corporate House, Inc.
• Southern Utility Management and Services, Inc.
• Philippine National Railways
• Light Rail Transit Authority
• First Centennial Clark Corporation
• Philippine Mining Development Corporation
• Philippine Forest Corporation
• RPN 9
• Water Districts (by Region):
CAR Reg. I Reg. II Reg. III -
1
16
11
21
Reg. IV
Reg. V
Reg. VI
Reg.VII
- 53
- 16
- 12
- 4
Reg.VIII
Reg. IX
Reg. XI
Reg .XII
-
6
3
7
8
Reg. XIII - 19
ARMM - 4
b. Adoption of the New Government Accounting System Chart of Accounts
The GOCCs have adopted the New Government Accounting System (NGAS) Chart
of Accounts effective January 2005 pursuant to COA Circular No. 2004-002 dated April 29, 2004.
However, there are still some GOCCs which have not yet fully converted the balances of their
accounts as of December 31, 2006 due to lack of appropriate accounts. For the purpose of
consolidation, these accounts were converted to the nearest appropriate NGAS accounts.
8
Accounts of GOCCs exempted from NGAS such as GSIS, SSS and other GFIs were also
converted to the nearest appropriate NGAS accounts; however, in the absence of appropriate
accounts, the GFIs’ existing accounts were used.
c.
Cash Advances
In compliance with COA Circular No. 2006-001 dated November 9, 2006, balances of the
accounts for cash advances were analyzed and those determined as advances for transactions
specified in the said circular were reclassified as follows:
•
•
Cash advances granted for salaries and wages of officers and employees and other
personnel benefits were reclassified from Cash –Disbursing Officers to Payroll
Fund account.
Cash advances granted for travel and other special time-bound undertaking were
reclassified from Cash-Disbursing Officers or Due from Officers and Employees to
Advances to Officers and Employees account.
d. Basis of Accounting for Income and Expenses
Most GOCCs used the accrual method in accounting for income and expenses. Under this
method, all expenses shall be recognized when incurred and reported in the financial statements in
the period to which they relate. Some corporations applied the cash basis for income such as:
installment sale of condominium units, housing units and lots, interests on accounts in default or
past due accounts, demurrage revenues, and guarantee and commitments fees.
On contract jobs of NIA Consult, Inc., the income and expenses are recognized using the
percentage of completion method. Under this method, the amount of revenue is related to the
percentage of total project work performed during the period.
e.
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts was provided based on the age of the accounts, collection
experience, history of accounts or identified doubtful accounts of corporations, the rates of which
were approved by their respective Board of Directors
f.
Inventories
Inventories were valued at cost which is determined using the first-in first-out (FIFO),
specific identification, moving average or historical cost methods.
The PRA and NHA recorded construction and completed projects for sale and for transfer at
cost. Expenditures incurred for further development are added as part of the cost. Reclaimed
lands of PRA are recorded at appraised value, while acquired assets of NHA are valued at the total
amount due at a given period plus all incidental expenses, such as legal fees and foreclosure
expenses.
g.
Property, Plant and Equipment (PPE) and Depreciation
Property, plant and equipment are carried at cost less accumulated depreciation and any
impairment in value. Cost includes expenditures that are directly attributable to the acquisition of
the items.
Depreciation was
computed based on the estimated lives and salvage value of PPE
provided in COA Circular Nos. 2003-007 and 2004-005 dated December 11, 2003 and August 9,
2004, respectively and COA Circular Letter No. 2004-003 dated October 4, 2004. However, in
view of the nature of a corporation’s business and the specialized equipment used, estimated useful
lives other than those prescribed in the COA Circulars were adopted for certain assets.
For newly acquired PPE, computation of depreciation starts on the following month after
the purchase/completion, regardless of the date of purchase/completion within the month pursuant
to COA Circular No 2003-007.
9
Minor repairs and maintenance pertaining to the properties are normally charged to expense
in the period these are incurred. Major repairs and betterments are capitalized as additional cost of
the PPE and depreciated over the remaining estimated useful life of the asset.
The PPE of some corporations (PPA, MRHI, FTI, MWSS) were carried in the books at
appraised value except for additions during the year which were recorded at cost. Depreciation of
appraised PPE is computed on restated amount using the straight line method.
.
The useful lives and depreciation method are reviewed periodically to ensure that the period
and methods of depreciation are consistent with the expected pattern of economic benefits from
items of property, plant and equipment.
Property under construction was stated at cost and depreciation was taken-up when the
relevant assets were completed and put into operational use.
Leasehold improvements were amortized over the estimated useful life of the improvements
or the term of the related lease, whichever was shorter.
The PNOC-EC’s SC 38 project-related wells, platform and other related facilities include
acquisition costs and capitalized exploration and development costs. Depreciation, depletion and
amortization of which, are computed using the unit-of-production method based on the approved
estimated reserves.
h. Foreign Currency Conversion
Transactions in foreign currency were converted to Philippine Peso using exchange rates as of
the value/settlement date of the transaction. For reporting purposes, foreign currency-denominated
accounts (monetary assets and liabilities) were converted into Philippine Peso using the closing
exchange rate per BSP at reporting date. Gain or Loss arising from foreign exchange was included
in the computation of the annual profits and losses.
i.
Financial Statements Presentation
Accounts in the Balance Sheet and related financial statements for CY 2005 are restated for
comparative presentation with those accounts in CY 2006. However, for corporations without the
restated figure, the bases are the balances of the financial statements as reported in the 2005
Annual Financial Report.
2.
International Reserves
This account which is maintained by the BSP pursuant to Section 65 of Republic Act No. 7653,
pertains to the available-for-sale financial assets which are in foreign currency, including gold with
foreign financial institution and in the BSP vault.
3.
Cash
This account includes the following:
Amount
2006
2005
63,957,705,473.26
52,098,896,197.05
708,619,332,020.33
545,395,041,913.86
Accounts
Cash on Hand
Cash in Bank – Local/Foreign Currency
Total
772,577,037,493.59
597,493,938,110.91
Cash on Hand consists of collections made by Collecting Officers, amount of cash advances
granted to Disbursing Officers for payment of salaries, Payroll Fund and Petty Cash Fund maintained
by GOCCs.
Cash in Bank – Local/Foreign Currency represents deposits in BSP and authorized government
depository banks for current and savings accounts including placements in time deposits.
10
For purposes of reporting cash flows, the cash and cash equivalents of P833,603,506,570.34 as
reflected in the Statement of Cash Flows consist of the following accounts in the Balance Sheet:
Accounts
Cash on Hand
Cash in Bank – Local/Foreign Currency
Short-Term Investments (cash equivalents)
Due from NGAs
Total per Balance Sheet
Total per Statement of Cash Flows
Difference
Amount
63,957,705,473.26
708,619,332,020.33
61,805,097,871.97
157,802,301.00
834,539,937,666.56
833,603,506,570.34
936,431,096.22
The group of Short-Term Investments accounts as of December 31, 2006 amounted to
such as marketable
P567,904,315,238.85, of which P61,805,097,871.90 are cash equivalents
securities, treasury bills and other highly liquid short-term investments that are readily convertible to
cash when the need arises. The amount of P157,802,301.00 pertains to cash deposited by NPC to the
BTr. The discrepancy of P936,431,096.22 is due to the unsubmitted cash flow statements of 23
corporations of which 12 were from WDs and 4 unsubmitted
Balance Sheet, also of WDs. The
details of cash and cash equivalents is presented in Table IV-50 of the Statement of Cash Flows
analysis.
4.
Due from NGOs and POs
Included among Receivables are Due from NGOs/POs amounting to P212,707,894.93 as of
December 31, 2006. This account includes funds that were entrusted by GOCCs to NGOs/POs to
implement various programs and projects as follows:
GOCC
KKK-PCA
NGO/PO
Samahan ng mga Magsasaka sa Kapatagan at
Kabundukan
Society’s Multi-purpose Foundation, Inc.
Greenmakers Development Foundation, Inc
One Accord Christian Community Endeavor
for Salvation and Success through Poverty
Alleviation, Inc.
SBMA
PITAHC
NHA
Subicwater
Suppliers
SBDMC
SBWater Regulatory Board
UP-Manila Foundation, Inc.
Palawan Electric Cooperative, Inc.
Sulu Electric Cooperative, Inc.
Central Pangasinan Electric Cooperative, Inc.
PCA
PEACE Foundation
Biotech Coalition of the Philippines
SRA
Ormoc-Kananga Mill Districts
Bais-Ursumco MDDC
Iloilo MDDC
Lingap ni Banzai sa Mamamayan Foundation
PTA
Total
5.
Amount
172,500,000.00
22,500,000.00
63,750,000.00
11,250,000.00
75,000,000.00
23, 470,229.50
22,888,514.00
556.043.31
20,000.00
5,672.19
8,358,905.60
4,088,097.36
2,295,634.16
813,789.52
978,673.68
3,638,574.00
600,000.00
3,038,573.60
552,463.00
102,463.00
150,000.00
300,000.00
99,625.47
212,707,894.93
Land and Land Improvements
This group of accounts includes the original cost of expressways maintained in the books of
PNCC and PNCC Skyway turned over by the government to said corporations, reimbursable through
11
the payment of annual concession fee throughout the life of the franchise of 30 years starting 1979.
The PNCC was granted the franchise to construct, maintain and operate toll facilities in the North and
South Luzon Tollways. The cost of the franchise is amortized for 20 years; depreciation on
expressways and facilities is provided on a straight line method over the estimated useful lives of the
assets or 30 years lease period whichever is shorter.
As of December 31, 2006, expressways had a net balance of P3,015,429,167.00. The cost of
expressways including the appraisal increase, facilities and improvements totaled P8,410,138,531.00,
and with accumulated depreciation of P5,394,709,364.00.
6.
Other Property, Plant and Equipment
Included in this group are properties used by Water Districts (WDs) in its normal utility
operations classified under the Utility Plant in Service account. This account account consists of
Wells, Pumping Equipment, Power Production Equipment, Water Treatment Equipment, Transmission
and Distribution Mains, Meters, Hydrants, Collecting and Impounding Reservoir, Structure and
Improvement, Tools, Shops and Garage Equipment. In the absence of appropriate accounts, these
were converted/classified to Other Property, Plant and Equipment (OPPE).
For calendar year 2006, the total amount of OPPE amounted to P830,298,580,042.67, of which
P13,772,042,235.84 pertains to WDs. Among the provinces, WDs from Misamis Oriental recorded
the biggest amount of P1,275,105,813.23; followed by Bulacan and Davao del Sur in the amount of
P1,242,112,370.28 and P1,124,494,455.93, respectively.
7.
Other Assets
Included among the Other Assets group are acquired/foreclosed assets amounting to
P59,616,400,258.61 as of December 31, 2006.
These are real and other properties acquired in settlement of loans through foreclosure or dacion
in payment booked initially at the carrying amount of the loan (i.e., outstanding loan balance less
allowance for credit losses) plus booked accrued interest less allowance for credit losses, plus
transaction costs incurred upon acquisition (such as non-refundable capital gains tax and documentary
stamp tax paid in connection with the foreclosure/purchase of the acquired real estate property).
Maintenance and other carrying costs subsequent to the foreclosure or acquisition of such property are
taken up as expenses. Realized gain on sale thereof is credited to income.
8.
Due to National Treasury
This account amounting to P26,804,855,562.93 as of December 31, 2006, consists primarily of
advances made by the BTr for the foreign creditors of GOCCs and guarantee fee charged by the
Bureau to compensate for the risk of servicing the obligations of the corporations. The GOCCs with
significant amount of payables to the National Treasury were as follows:
GOCC
Amount
12,565,987,753.00
5,519,619,944.00
1,984,692,907.00
1,527,086,024.03
1,260,029,209.00
991,205,652.00
842,986,604.00
642,842,228.77
432,514,830.96
NEA
PRA
NFA
PTrA
BCDA
MWSS
PAGCOR
NHMFC
PFDA
The PTrA’s outstanding balance of P1,527,086,024.03 represents the unremitted amount to the
National Government (NG) pertaining to Authority’s Main Office collection equivalent to 27 percent
of travel tax and Duty Free Philippines’ 1.5 percent of net sales amounting to P137,081,654.00 and
P1,390,004,370.00, respectively. This remittance is in accordance with Presidential Decree Nos. 1183,
1447, 189, 564 and 1867 and Section 4 of Execuitve Order No. 140 dated November 30, 1993.
Likewise, PAGCOR’s balance of P842,986,604.00 consists of unremitted government share.
12
BCDA’s Due to the BTr amounting to P1,260,029,209.00 pertains to the 72.5 percent share of
beneficiaries on the sale of Camp Bago Bantay, portions of Villamor Air Base and Fort Bonifacio, and
disposition of Heritage Park Certificates.
9.
Dividend
In compliance with RA 7656 (Dividend Law) approved in 1994, GOCCs are required to remit
half of the income earned in each year to the NG. For CY 2006, the GOCCs paid a total dividend
amounting to P13,744,698,388.54, of which, P12,677,427,343.54 was remitted or paid to the NG thru
the BTr and the balance were paid to other GOCCs, NGAs, and stockholders. The corporations with
the biggest remittance of dividend to the BTr were:
BSP – P3,603,712,000.00; NPC –
DBP – P2,296,013,000.00;
PPA – P1,638,401,166.00; and
LBP –
P2,600,000,000.00;
P1,150,000,000.00.
The PNOC with cash dividend amounting to P353,703,806.00, also paid an amount of
P4,568,017,027.00 as share of NG in the proceeds of PNOC – EDC’s Initial Public Offering.
10. Share of the National Government on the Income of GOCCs
This account pertains to the share of the National Government on the income of the following
corporations:
Particulars
Amount
623,257,000.00
11,976,519,718.00
12,599,776,718.00
MIAA
PAGCOR
Total
The MIAA and PAGCOR are required by law to remit to the National Government its share on
their income pursuant to EO No. 298 dated July 26, 1987 and PD No. 1869 dated July 11, 1983,
respectively. The share of the National Government is 20 percent on MIAA’s operating income based
on actual cash collection excluding income from utilities and terminal fee collections and 50 percent
on PAGCOR’s gross income after franchise tax amounting to P9,719,074,063.00. Also included in
this account are the contributions of PAGCOR to the following:
Particulars
President’s Social Fund.
Philippine Sports Commission’s 5 percent share
Host Cities’ share
Early Childhood Care and Development Fund
Gasoline Station Training and Loan Fund
Barangay Micro Business Enterprises
Board of Claims’ 1 percent share
National Endowment Fund for Children’s Television
Mandated Contribution to the National Government – Others
Total
Amount
1,027,283,302.00
485,953,703.00
466,120,000.00
124,960,195.00
63,500,000.00
42500,000.00
16,240,539.00
9,000,000.00
21,887,916.00
2,257,445,655.00
11. Subsidy Received from Other National Government Agencies
This component of income pertains to funds released by the National Government to finance the
operations, programs and projects, including tax subsidy for custom duties of GOCCs amounting to
P13,347,850,383.68. The NFA is the biggest recipient of subsidy amounting to P4,811,011,245.00,
of which
P3,911,011,245.00 is for tax subsidy and P900,000,000.00 for food security and
stabilization programs, followed by the NHA which received P2,333,000,000.00 to finance various
resettlement projects. Other GOCCs which received significant amount of subsidy are NEA –
P1,585,259,756.00; PPC – P1,333,795,883.00; and NHMFC – P1,000,000,000.00.
13
FINANCIAL HIGHLIGHTS
AND ANALYSES
EXECUTIVE SUMMARY
1.0 FINANCIAL CONDITION
1.1 Assets – P5,274.51 billion
Consolidated total assets of Government Owned and/or Controlled Corporations
(GOCCs) as of December 31, 2006 stood at P5,274.51 billion which is higher by P556.20
billion or 11.79 percent compared to previous year’s P4,718.31 billion. More than half of the
aggregate assets pertains to Current Assets of P2,764.38 billion, representing 52.41 percent.
The remaining 47.59 percent is composed of Property, Plant and Equipment – P1,225.72
billion or 23.24 percent, Long-Term Investments – P544.92 billion or 10.33 percent, LongTerm Receivables – P483.52 billion or 9.17 percent, Other Assets – P248.43 billion or 4.71
percent and Intangible Assets – P7.53 billion or 0.14 percent.
1.2 Liabilities –P3,954.52 billion
Total liabilities went up to P3,954.52 billion, higher by P331.89 billion or 9.16 percent
than last year’s amount of P3,622.62 billion. The liabilities consist of Long-Term
Liabilities of P2,213.92 billion or 55.98 percent and Current Liabilities of P1,740.60 billion
or 44.02 percent.
1.3 Deferred Credits –P56.56 billion
Deferred Credits totaled P56.56 billion registering a decrease of P3.95 billion or 6.54
percent compared to P60.51 billion in 2005. These consist primarily of Other Deferred Credits
aggregating P56.24 billion or 99.43 percent. The remaining balance of P0.32 billion or 0.57
percent pertains to Deferred Tax Liability.
1.4 Equity – P1,263.43 billion
Net Worth of GOCCs as of December 31, 2006 amounted to P1,263.43 billion, an
increase of P228.26 billion or 22.05 percent compared to P1,035.17 billion in 2005. The
Equity consists of Restricted Capital – P860.48 billion which is 68.11 percent of the total,
Appraisal Capital – P272.90 billion or 21.60 percent, Capital Stock – P229.71 billion or 18.18
percent, Government Equity – P206.32 billion or 16.33 percent, Donated Capital – P13.02
billion or 1.03 percent, Paid-in-Capital in Excess of Par Value – P10.08 billion or 0.80
percent, Subscribed Capital Stock, net of Subscription Receivables – P6.51 billion or 0.52
percent, Other Equity Instruments – P6.37 billion or 0.50 percent, Deficit – P341.94 billion
and Reacquired Stocks of P0.02 billion.
2.0 RESULTS OF OPERATIONS
2.1 Income and Receipts – P718.73 billion
The overall operations of GOCCs generated net income of P168.58 billion in 2006, an
increase of P2.98 billion or 1.80 percent from P165.59 billion in 2005. Gross Income of
P718.73 billion showed an increment of P38.59 billion or 5.67 percent. Business income
continued to be a major source of income accounting for P537.29 billion and contributing
74.76 percent to the total. The balance comprises of Gain/Premiums account – P101.15
billion or 14.07 percent, Other Income – P58.48 billion or 8.14 percent, Service Income –
P21.09 billion or 2.93 percent and Permits and Licenses – P0.73 billion or 0.10 percent.
The gross income of GOCCs was reduced by P12.60 billion due to remittance to the
National Government of a portion of their gross earnings pursuant to Republic Act No. 7656.
PAGCOR and MIAA shared P11.98 billion and P0.62 billion, respectively.
14
During the year, subsidies received by GOCCs decreased to P13.52 billion compared to
last year’s P17.94 billion, consisting of Subsidies from the National Government – P13.35
billion, and GOCCs – P0.17 billion. The corporations which received substantial amount of
subsidies from the National Government were: NFA – P4.81 billion, NHA – P2.52 billion,
NEA – P1.59 billion, PPC – P1.33 billion and NHMFC – P1 billion.
2.2 Expenses and Provisions for Income Taxes – P551.05 billion
Operating expenses in 2006 amounted to P546.73 billion, an increase of P29.08 billion
or 5.62 percent from P517.65 billion in 2005. The expenses consist of Personal Services (PS)
– P51.30 billion or 9.38 percent, Maintenance and Other Operating Expenses (MOOE) –
P435.23 billion or 79.61 percent and Financial Expenses (FE) – P60.20 billion or 11.01
percent. The biggest component of PS was Salaries and Wages – P27.08 billion or 52.78
percent while under MOOE, the amount of P151.70 billion or 34.85 percent was for account
Other Maintenance and Operating Expenses. It is followed by Members’ Benefits of P99.90
billion or 22.95 percent and Cost of Goods Sold of P45.04 billion or 10.35 percent. Among
the Financial Expenses, Interest Expenses and Bank Charges got the biggest share at P55.78
billion and P2.23 billion, respectively.
Provision for income tax increased by P2.04 billion or 89.22 percent, from P2.28 billion
in 2005 to P4.32 billion in 2006.
3.0 CASH FLOWS
Consolidated cash inflows from Operating, Investing and Financing Activities in 2006 totaled
P1,622.32 billion while total cash outflows amounted to P1,400.80 billion resulting to increase
in cash and cash equivalents of P221.52 billion during the year. The net effect of exchange rate
changes amounted to negative P25.10 billion.
Net cash provided by Operations in 2006 accounted for 72.79 percent of the consolidated cash
flows.
3.1 Cash Inflows - P1,622.32 billion
Total cash inflows from Operating, Investing and Financing Activities in 2006 amounted
to P1,622.32 billion, a decrease of P8.68 billion or 0.53 percent compared to P1,630.99
billion in 2005. Cash inflows from Operating Activities accounted for 45.51 percent of the
consolidated cash inflows while Investing and Financing Activities contributed 32.02 percent
and 22.47 percent, respectively.
3.2 Cash Outflows – P1,400.80 billion
Cash outflows in 2006 totaled P1,400.80 billion, a decrease of P125.07 billion or 8.20
percent compared to P1,525.87 billion of the previous year. The biggest share of P577.06
billion or 41.20 percent came from the Operating Activities, followed by Financing Activities
– P418.01 billion or 29.84 percent and Investing Activities – P405.73 or 28.96 percent.
3.3 Cash and Cash Equivalents, end of year
The 2006 Cash and Cash Equivalents increased by P198.04 billion to P833.60 billion
reflecting cash used for Financing Activities partially funded from net cash provided by Operating
and Investing Activities. Principal source of consolidated cash and cash equivalents in the fiscal
year 2006 was net cash flows from operations amounting to P161.24 billion.
15
BALANCE SHEET
As of December 31, 2006, the Consolidated Balance Sheet of GOCCs showed total assets of
P5,274.51 billion, total liabilities of P3,954.52 billion, total deferred credits of P56.56 billion and total
equity of P1,263.43 billion. Assets, liabilities and equity registered growth of P556.20 or 11.79 percent,
P331.89 or 9.16 percent and P228.26 or 22.05 percent, respectively, while deferred credits posted a
decrease of P3.95 billion or 6.54 percent.
Chart IV-1 Comparative Components of Consolidated Balance Sheet
For Fiscal Year 2006
(in billion pesos)
4 , 718 .3 1
6,000
5,000
3 ,6 2 2 .6 2
4,000
5,2 74 .51
3,000
1, 0 3 5. 17
6 0 .51
3 ,9 54 . 52
2,000
56 .56
1,000
1, 2 6 3 . 4 3
0
Assets
Liabilities
Defered
Credits
Equity
2006
2005
Chart IV-1 shows the comparative components of the Consolidated Balance Sheet for fiscal years
2006 and 2005.
1.0 ASSETS – P5,274.51 billion
Total Assets amounted to P P5,274.51 billion, higher by P556.20 billion or 11.79 percent than
2005 level.
Table IV-1 Comparative Major Components of Assets
(in million pesos)
Increase(Decrease)
Particular
2006
2005
Current Assets
Property Plant and Equipment (net)
Long-Term Investments (net)
2,764,381.71
1,225,722.31
544,920.52
483,516.77
248,433.27
7,534.25
2,186,312.43
1,214,271.71
628,874.35
466,493.19
216,395.30
5,964.63
578,069.29
11,450.59
(83,953.84)
17,023.58
32,037.97
1,569.62
26.44
0.94
(13.35)
3.65
14.81
26.32
5,274,508.82
4,718,311.61
556,197.21
11.79
Amount
Long-Term Receivables (net)
Other Assets
Intangible Assets
Total
Percent
Difference between totals and sum of components is due to rounding off.
Table IV-1 shows the comparative major components of assets. The largest component is
Current Assets amounting to P2,764.38 billion or 52.41 percent of the total assets. Next with the
biggest balance is Property, Plant and Equipment (net) in the amount of P1,225.72 billion or 23.24
percent, followed by Long-Term Investments (net) of P544.92 billion or 10.33 percent and Long-Term
16
Receivables (net) of P483.52 billion or 9.17 percent. Other Assets of P248.43 billion and Intangible
Assets of P7.53 billion accounted for 4.71 percent and 0.14 percent respectively.
Table IV-2 GOCCs with Big Amount of Assets
(in million pesos)
Increase(Decrease)
2006
2005
Amount
Percent
GOCC
BSP
NPC
GSIS SIF
LBP
DBP
SSS
HDMF
PNOC
PDIC
BCDA
1,571,362.97
1,117,552.07
375,820.03
365,372.56
235,308.34
228,444.46
191,548.60
139,599.69
137,887.50
84,125.79
1,292,767.44
1,078,746.56
332,607.60
324,126.04
212,952.92
199,713.23
178,332.50
138,281.20
126,437.57
79,061.71
278,595.53
38,805.50
43,212.42
41,246.53
22,355.41
28,731.22
13,216.11
1,318.49
11,449.93
5,064.08
21.55
3.60
12.99
12.73
10.50
14.39
7.41
0.95
9.06
6.41
Table IV-2 shows that BSP is the GOCC with the biggest assets amounting to P1,571.36 billion
or 29.79 percent, followed by NPC – P1,117.55 billion or 21.19 percent, GSIS SIF – P375.82 billion or
7.13 percent, LBP – P365.37 billion or 6.93 percent, DBP - P235.31 billion or 4.46 percent, SSS –
P228.44 billion or 4.33 percent, HDMF – P191.55 billion or 3.63 percent, PNOC – P139.60 billion or
2.65 percent, PDIC – P137.89 billion or 2.61 percent and BCDA – P84.13 billion or 1.59 percent.
1.1 Current Assets – P2,764.38 billion
Current Assets reached P2,764.38 billion exhibiting an increase of P578.07 billion or 26.44
percent compared to last year’s P2,186.31 billion. The increment is attributed primarily to the
combined growth of P483.13 billion in Short–Term Investments – P319.91 billion and Cash in
Bank of P163.22 billion. This was however partly offset by the combined decrease of P14.46
billion in Prepayments and Deferred Charges – P8.85 billion and Inventories – P5.61 billion.
Table IV-3 Comparative Composition of Current Assets
(in million pesos)
Particular
2006
2005
Increase(Decrease)
Amount
Cash in Bank
Receivables (net)
Short – Term Investments
International Reserves
Inventories (net)
Cash on Hand
Other Current Assets
Prepayments and Deferred Charges
Total
Percent
708,619.33
701,077.40
567,904.32
555,989.15
79,450.96
63,957.71
52,417.45
34,965.40
545,395.04
656,597.47
247,992.37
504,022.12
85,059.76
52,098.90
51,327.55
43,819.21
163,224.29
44,479.93
319,911.94
51,967.03
(5,608.80)
11,858.81
1,089.90
(8,853.80)
29.93
6.77
129.00
10.31
(6.59)
22.76
2.12
(20.21)
2,764,381.71
2,186,312.43
578,069.29
26.44
Difference between totals and sum of components is due to rounding off.
.
Table IV-3 presents the comparative composition of Current Assets. In 2006, total current
assets compared to total current liabilities show a ratio of 1.59 : 1, which means that GOCCs taken
as a whole is relatively liquid as every P1.0 current liability can be covered by P1.59 current
assets.
17
1.1.1 International Reserves – P555.99 billion
International Reserves amounting to P555.99 billion or 20.11 percent of the total
Current Assets as reported by BSP grew by P51.97 billion or 10.31 percent. These pertain
to the available-for-sale financial assets in foreign currency, including gold with foreign
financial institutions and in the BSP vault which are maintained by BSP pursuant to Section
65 of Republic Act No. 7653. The financial assets include investments securities in
treasury strips pertaining to the 1992 RP Financing Plan reclassified from “FX Receivable”
upon release by the Treasurer of the Philippines which amounted to P3.45 billion (market
value) as of December 31, 2006.
Table IV-4 Details of International Reserves
(in million pesos)
Increase(Decrease)
Particulars
2006
2005
Amount
Percent
411,733.04 367,738.68
43,994.36
11.96
Investment Securities
Securities Available for Sale
Marketable Securities
21,862.63 189,522.84 (167,660.21)
(88.46)
Other Investments
Gold
In Bullion Vault
389,870.41
144,256.11
44,023.32
178,215.85
136,283.44
43,722.45
With Foreign Financial Institutions
100,232.79
92,560.99
Total
555,989.15 504,022.12
Difference between totals and sum of components is due to rounding off.
211,654.56
7,972.67
300.87
118.76
5.85
0.69
7,671.80
51,967.03
8.29
10.31
Details of international reserves are shown in Table IV-4.
1.1.2 Cash on Hand – P63.96 billion
Cash on Hand of P63.96 billion was higher by P11.86 billion or 22.76 percent
compared to last year’s level of P52.10 billion. The increase was brought about by the net
effect of the combined growth of P12.74 billion in Other Cash Accounts, Cash in Vault,
Cash – Collecting Officers; Payroll Fund and Petty Cash Fund and aggregate decrease of
P0.88 billion in Cash on Hand and Cash – Disbursing Officers. Among the GOCCs, DBP
reported a significant increase in Other Cash Accounts amounting to P18.25 billion which
consist of cash and other cash items, due from other banks, interbank losses receivables and
securities purchased under agreement to resell.
Other Cash Accounts – P53.85 billion accounted for 84.19 percent of the total while
Cash in Vault – P7.55 billion shared 11.80 percent. The balance of P2.56 billion or 4.01
percent is composed of Cash – Collecting Officers – P1.56 billion, Cash-Disbursing
Officers – P0.74 billion, Cash on Hand – P0.18 billion, Payroll Fund – P0.07 billion and
Petty Cash Fund – P0.02 billion.
Table IV-5 Comparative Composition of Cash on Hand
(in million pesos)
Increase(Decrease)
Particulars
2006
2005
Amount
Percent
Other Cash Accounts
53,848.30
49,165.34
4,682.96
9.52
Cash in Vault
7,546.60
18.20
7,528.39 41,354.92
Cash - Collecting Officers
1,555.61
1,098.61
457.00
41.60
Cash - Disbursing Officers
740.84
956.43
(215.59)
(22.54)
Cash on Hand
175.37
842.30
(666.92)
(79.18)
Payroll Fund
70.62
1.38
69.24
4,999.31
20.36
16.63
Petty Cash Fund
3.73
22.44
Total
63,957.70
52,098.90
11,858.81
22.76
18
Table IV-5 presents the comparative composition of Cash on Hand.
Table IV-6 Other GOCCs with Substantial Cash on Hand Balance
(in million pesos)
GOCC
2006
Increase(Decrease)
2005
Amount
PAGCOR
PHIC
NDC
BSP
SSS
OWWA
NHA
PNCC
490.87
419.59
386.18
373.78
279.99
266.92
245.05
231.40
497.52
381.33
415.69
310.75
28.67
86.03
616.87
62.38
(6.65)
38.27
(29.51)
63.03
251.32
180.89
(371.81)
169.02
Percent
(1.34)
10.04
(7.10)
20.28
876.55
210.25
(60.27)
270.96
Of the total Cash on Hand of P63.96 billion, DBP reported the 80.14 percent or
P51.26 billion, while LBP accounted for P8.31 billion or 12.99 percent. Other GOCCs with
substantial Cash on Hand balance are shown in Table IV-6. These are PAGCOR – P490.87
million or 0.77 percent, PHIC – P419.59 million or 0.66 percent, NDC – P386.18 million or
0.60 percent, BSP – P373.78 million or 0.58 percent, SSS – P279.99 million or 0.44
percent, OWWA – P266.92 million or 0.42 percent, NHA – P245.05 million or 0.38 percent
and PNCC – P231.40 million or 0.36 percent. The remaining amount of P1.70 billion or
2.65 percent is shared by 94 GOCCs.
1.1.3 Cash in Bank – P708.62 billion
One fourth of the aggregate Current Assets consists of the Cash in Bank amounting
to P708.62 billion, posting an increase of P163.22 billion or 29.93 percent from the 2005
level of P545.40 billion.
Table IV-7 Comparative Composition of Cash in Bank
(in million pesos)
Particulars
2006
2005
Increase(Decrease)
Amount
Cash in Bank - Foreign Currency,
Current Account
Cash - Bangko Sentral ng PilipinasLocal Currency
Cash in Bank - Foreign Currency,
Savings Account
Cash in Bank - Local Currency,
Time Deposits
Cash in Bank - Local Currency,
Savings Account
19
Percent
355,937.72
227,896.26
128,041.46
56.18
252,250.77
256,867.27
(4,616.50)
(1.80)
26,200.52
743.25
25,457.27
3,425.14
22,648.94
12,044.01
10,604.93
88.05
19,775.84
16,850.45
2,925.40
17.36
(Table IV-7, Continued)
Cash in Bank - Local Currency,
Current Account
Cash in Bank – Foreign Currency,
Time Deposits
Other Cash in Bank
Cash-Bangko Sentral ng PilipinasForeign Currency
Total
19,325.71
16,357.22
2,968.48
18.15
8,768.68
5,595.21
3,173.47
56.72
3,657.62
8,980.28
(5,322.66)
(59.27)
53.52
61.10
(7.58)
(12.40)
708,619.33
545,395.04
163,224.29
29.93
Difference between totals and sum of components is due to rounding off.
Table IV-7 shows the comparative composition of Cash in Bank account.
Table IV-8 GOCCs with the Biggest Cash in Bank
(in million pesos)
Increase(Decrease)
GOCCs
2006
2005
Amount
Percent
BSP
558,850.35 466,665.60
92,184.75
19.75
LBP
40,336.18
14,368.35
25,967.83
180.73
GSIS Social Insurance Fund
30,046.69
5,310.76
24,735.93
465.77
PSALM
11,845.66
6,785.36
5,060.30
74.58
DBP
8,659.39
3,266.70
5,392.68
165.08
PHIC
8,124.73
4,206.11
3,918.62
93.16
HDMF
7,262.53
5,956.02
1,306.50
21.94
SSS
5,571.29
6,441.70
(870.41)
(13.51)
MWSS
3,476.51
4,124.96
(648.45)
(15.72)
NPC
2,846.79
2,197.32
649.47
29.56
Table IV-8 shows the ten GOCCs with the biggest balance of cash in bank
aggregating to P677.02 billion or 95.54 percent. The remaining P31.60 billion or 4.46
percent is shared by 109 GOCCs.
BSP’s cash in bank consists of cash deposits with foreign banks and international
monetary fund special drawing rights, while LBP’s cash in bank includes receivables from
BSP and accounts on global basis with 23 foreign depository banks totaling 39 accounts in
2006. Deposits with foreign banks as of December 31, 2006 include special deposit
account with Citibank-New York amounting to $1.032 million which is restricted for
disbursements on special lending projects.
GSIS SIF cash in bank includes special savings deposits and time deposits
amounting to P28.3 billion in 2006 while PSALM’s includes cash in bank, short-term
placements and restricted cash which pertains to proceeds from the sale of NPC’s six
hydroelectric plants and lease rental. DBP’s cash in bank includes cash due from BSP.
20
1.1.4 Short-Term Investments – P567.90 billion
Short-Term Investments reached P567.90 billion or 20.54 percent of the total Current
Assets that went up by 129 percent or P319.91 billion from 2005 level of P247.99 billion.
Table IV-9 Comparative Composition of Short-Term Investments
(in million pesos)
Increase(Decrease)
Particular
2005
2005
Amount
Percent
Investments
in
Treasury
242,853.09
53,563.35
189,289.74
353.39
Bills/Notes
Other Short Term Investments
158,763.78
53,291.16
105,472.62
197.92
Marketable Securities
Investments
in
Treasury
Bonds
Investments in Stocks
86,605.23
67,550.89
19,054.34
28.21
67,894.54
64,645.37
3,249.16
5.03
11,787.67
8,941.59
2,846.08
31.83
567,904.32
247,992.37
319,911.94
129.00
Total
Difference between totals and sum of components is due to rounding off.
Table IV-9 shows the comparative composition of Short-Term Investments. The
enormous increase in this account was mainly due to additional investments in treasury
bills/notes and Other Short-Term Investments amounting to P189.29 billion and P105.47
billion, respectively.
This component of the Current Assets consists of Investments in Treasury
Bills/Notes – P242.85 billion or 42.76 percent, Other Short-Term Investments – P158.76
billion or 27.96 percent, Marketable Securities – P86.61 billion or 15.25 percent,
Investments in Treasury Bonds – P67.89 billion or 11.96 percent and Investments in Stocks
– P11.79 billion or 2.08 percent.
Almost 40 percent of the aggregate short-term investments or P221.91 billion was
reported by the BSP, higher by P147.73 billion or 199.16 percent than 2005 level of P74.18
billion. This consists of marketable securities and investments in treasury bills/notes and
bonds. LBP’s include government securities acquired under repurchase agreement and
reverse repurchase agreement, government and private securities and investment in nonmarketable securities.
Other corporations which reported
substantial short-term investments are
shown in Table IV-10. The remaining
P16.65 billion or 2.93 percent is shared by
41 GOCCs.
Short-term investments of GSIS SIF
is composed of held-for-trading foreign
currency-denominated Republic of the
Philippines (ROP) notes, bonds and bills,
held-for-trading stocks and loans to local
government units; PHIC’s
represents
treasury bills and bonds; and NPC’s
consists of short-term placements with the
DBP, LBP and PNB which are intended for
general funding requirements of NPC’s
operations.
21
Table IV-10 Other GOCCs with Substantial
Short-Term Investments
(in million pesos)
Percent
GOCCs
Amount
Distribution
LBP
116,725.60
20.55
GSIS SIF
76,492.46
13.47
PHIC
31,809.93
5.60
NPC
30,447.19
5.36
PNOC
19,967.82
3.52
SSS
16,201.23
2.85
HDMF
13,975.21
2.46
GSIS AF
13,609.09
2.40
GSIS FB
10,120.00
1.78
1.1.5 Receivables (net) – P701.08 billion
Outstanding receivables of the GOCCs as of yearend totaled P751.62 billion with
Allowance for Doubtful Accounts of P50.54 billion. Receivables (net) of P701.08 billion
or 25.36 percent is the second highest component of the current assets.
Table IV-11 Comparative Composition of Receivables (net)
(in million pesos)
Increase(Decrease)
Particular
2006
2005
Amount
Percent
Loans Receivable - Others
244,354.49
250,112.73
(5,758.24)
(2.30)
Accounts Receivable
226,378.92
203,167.82
23,211.10
11.42
Other Receivables
72,294.28
74,281.97
(1,987.69)
(2.68)
Loans Receivable - GOCCs
45,718.27
46,611.26
(892.99)
(1.92)
Due from GOCCs
34,102.10
21,307.85
12,794.25
60.04
Interests Receivable
33,423.54
29,637.66
3,785.88
12.77
Notes Receivable
20,202.72
1,938.16
18,264.57
942.37
Due from National Treasury
19,503.79
22,664.00
(3,160.21)
(13.94)
Due from NGAs
17,815.52
6,899.52
10,915.99
158.21
Due from Subsidiaries/Affiliates
14,314.60
20,533.08
(6,218.48)
(30.29)
Mortgage Receivable
13,653.83
14,520.94
(867.12)
(5.97)
Premium Receivable
7,206.36
13,113.25
(5,906.89)
(45.05)
Due from Officers and Employees
1,901.20
1,934.58
(33.37)
(1.72)
Receivables - Disallowances/Charges
631.36
578.08
53.28
9.22
Due from LGUs
340.36
270.55
69.81
25.80
Due from Central Office/Home Office
319.06
1.19
317.86 26,625.62
Lease Receivable
264.55
222.79
41.77
18.75
Due from Operating Units
213.14
285.22
(72.08)
(25.27)
Due from NGOs/POs
212.71
216.48
(3.77)
(1.74)
Dividend Receivable
53.54
55.69
(2.15)
(3.86)
Advances to Officers and Employees
39.60
8.77
30.83
351.71
Due from Other Funds
36.95
9.66
27.29
282.52
Loans Receivable - LGUs
17.59
15.51
2.08
13.39
Rent Receivables
3.51
1.72
1.79
104.30
Insurance Claims Receivable
2.17
2.17
0.00
Due from Regional Offices/Staff
1,325.83
Bureaus/Branch Offices
(1,384.53)
(2,710.36)
(204.43)
Outstanding Receivables
751,619.62
709,714.31
41,905.31
5.90
Allowance for Doubtful Accounts
2,574.62
(50,542.22)
(53,116.84)
(4.85)
Receivables (net)
701,077.40
656,597.47
44,479.93
6.77
Difference between totals and sum of components is due to rounding off.
Receivables (net) increased by P44.48 billion or 6.77 percent compared to 2005
figures as shown in Table IV-11. Of the total Receivable accounts, the highest amount at
P244.35 billion or 34.85 percent was in the form of Loan Receivable – Others of which
92.51 percent was recorded by LBP – P131.83 billion and DBP – P94.23 billion.
22
The bulk of the total Receivables (net) amounting to P151.09 billion or 21.55 percent
pertains to NPC consisting mainly of receivables from power customers while LBP’s total
receivables (net) of P144.12 billion or 20.56 percent consist of various loans such as
agrarian reform and other agricultural credit loans, development incentive loans,
microfinance loans and other loans. LBP’s receivables also include bills purchased,
customers liability on bills/drafts under letters of credit and/or trust receipts and for
acceptances outstanding, credit card receivables, sales contract receivables, due from
Agrarian Reform Fund (ARF), unquoted debt securities, lease contract receivables and
others. Unquoted debt securities pertains to government and private securities amounting
to P0.55 billion and P1.93 billion, respectively, as of December 31, 2006.
Third with the highest Receivable (net) balance is DBP with P133.43 billion or 19.03
percent which represents interbank accounts receivables, loans receivables, loans and
discounts underwritten, unquoted debt securities purchased, unquoted debt securities
classified as loan, bill purchased and interest receivables. Accounts receivables include
accounts receivable from NG foreign exchange differential.
Receivable Accounts of HDMF of P43.49 billion or 6.20 percent represent
receivables from employers, borrowers, collecting agents, officers and employees and other
government agencies, current portion of Loan/Mortgage Contracts Receivables and Interest
Receivables. The BSP’s receivables of P38.64 billion or 5.51 percent consist of due from
foreign and local banks/branches, foreign exchange receivables, accounts and notes
receivables, due from officers and employees and interest receivables.
1.1.6 Inventories (net) – P79.45 billion
Inventory level as of yearend amounted to P79.45 billion net of Allowance for
Obsolescence of P0.75 billion, lower by P5.61 billion or 6.59 percent from 2005 yearend
balance.
Table IV-12 Comparative Composition of Inventories
(In million pesos)
Increase(Decrease)
Particular
2006
2005
Amount
Percent
Merchandise Inventory
19,253.48
18,681.04
572.44
3.06
Finished Goods Inventory
16,825.48
20,736.23
(3,910.75)
(18.86)
Other Supplies Inventory
9,968.61
9,013.88
954.73
10.59
Raw Materials Inventory
8,626.32
11,430.59
(2,804.26)
(24.53)
Office Supplies Inventory
8,376.67
8,672.58
(295.91)
(3.41)
Other Inventories
5,579.25
4,609.71
969.54
21.03
Gasoline, Oil and Lubricants
3,390.45
2,786.06
604.39
21.69
Inventory
Work-In-Process Inventory
3,310.67
5,471.98
(2,161.31)
(39.50)
Construction Materials Inventory
1,633.02
983.44
649.58
66.05
Accountable Forms Inventory
818.28
804.50
13.78
1.71
Items for Sale
784.52
891.03
(106.51)
(11.95)
Land and Other Property Held for
761.87
761.57
0.30
0.04
Sale
Spare Parts Inventory
249.26
180.11
69.15
38.39
Drugs and Medicines Inventory
216.49
182.40
34.09
18.69
Medical, Dental and Laboratory
213.00
207.23
5.77
2.78
Supplies Inventory
Agricultural Supplies Inventory
111.87
65.07
46.80
71.93
Confiscated/Abandoned/Seized
Goods Inventory
26.26
6.33
19.92
314.53
23
(Table IV-12, Continued)
Crops and Fruits Inventory
Food Supplies Inventory
Textbooks and Instructional
Materials Inventory
Other Agricultural, Fishery and
Forestry Products Inventory
Livestock Inventory
Military and Police Supplies
Inventory
Animal/Zoological Supplies
Inventory
Gross Inventories
Allowance for Obsolescence
Inventories (net)
24.84
13.85
52.57
17.55
(27.74)
(3.70)
(52.76)
(21.08)
12.08
11.34
0.74
6.55
0.69
0.29
12.98
0.69
(12.68)
0.00
(97.73)
0.08
0.16
(0.08)
(47.18)
80,197.34
1.74
85,580.09
(1.74)
(5,382.75)
(100.00)
(6.29)
(746.38)
(520.33)
(226.05)
43.44
79,450.96
85,059.76
(5,608.80)
(6.59)
Difference between totals and sum of components is due to rounding off.
Table IV-12 shows the comparative components of Inventories. The decrease in
Inventory Account is mainly due to reduction in the value of PRA’s reclaimed lands,
particularly in Central Business Park IA by P3.91 billion and decrease in BSP’s gold for
refining, Security Printing Complex inventories, work–in–process and other supplies
inventories by P5.95 billion.
Gross Inventories totaled to P80.20 billion, bulk of which represents Merchandise
Inventory amounting to P19.25 billion or 24.01 percent and Finished Goods of P16.83
billion or 20.98 percent. Other components of Inventories are as follows: Other Supplies
Inventory – P9.97 billion or 12.43 percent, Raw Materials Inventory – P8.63 billion or
10.76 percent, Office Supplies Inventory – P8.38 billion or 10.45 percent, Other Inventories
– P5.58 billion or 6.96 percent; Gasoline, Oil and Lubricants – P3.39 billion or 4.23
percent, Work-in-Process – P3.31 billion or 4.13 percent and other inventory accounts of
P4.87 billion or 6.07 percent.
Among the GOCCs, NPC recorded the highest inventory balance with P20.20 billion
or 25.42 percent pertaining to office supplies, gasoline, oil and lubricants and other
supplies, followed by PRA and BSP with balances of P16.78 billion or 21.11 percent and
P14.57 billion or 18.33 percent, respectively. PRA’s inventory pertains to reclaimed lands,
while those of BSP are composed mostly of gold for sale and refining. NFA and NHA
ranked fourth and fifth among the GOCCs with the biggest inventory balance. NFA’s
inventory of P10.56 billion or 13.29 percent consists mainly of palay and rice inventory,
while NHA’s inventory of P10.36 billion or 13.04 percent pertains to developed lands and
housing units intended for sale and still under construction.
1.1.7 Prepayments and Deferred Charges – P34.97 billion
Prepayments amounting to P34.97 billion registered a huge slump of P8.85 billion or
20.21 percent. The reduction was mainly due to difference in LBP’s recorded deferred
charges in 2005 which included revaluation of foreign borrowings from multilateral
agencies amounting to P8.53 billion. In 2006, the difference of Group’s revalued
borrowings and accrued interest therein from multilateral agencies and its historical cost
amounting to P6.09 billion was reclassified and booked as Accounts Receivable. As per
signed Memorandum of Agreement with the DOF, said amount shall be shouldered by the
National Government.
24
Bulk of this account came from Advances to Contractors of P10.03 billion or 28.68
percent, Deferred Charges – P9.74 billion or 27.85, Deferred Tax Assets – P9.42 billion or
26.95 percent and Other Prepaid Expenses – P5.32 billion or 15.21 percent. The balance of
P0.46 billion or 1.32 percent consists of Prepaid Rent, Insurance, Interest and Deposit on
Letters of Credit.
Table IV-13 Comparative Composition of Prepayments and Deferred Charges
(in million pesos)
Particulars
2006
2005
10,027.12
9,736.96
9,423.24
5,317.80
337.15
119.43
3.33
0.32
9,344.43
18,678.57
9,917.40
5,537.20
227.98
105.81
6.57
1.25
Increase(Decrease)
Amount
Advances to Contractors
Deferred Charges
Deferred Tax Assets
Other Prepaid Expenses
Prepaid Rent
Prepaid Insurance
Deposit on Letters of Credit
Prepaid Interest
Deferred Exploration and
Development Cost
Total
Percent
682.69
(8,941.61)
(494.16)
(219.40)
109.17
13.63
(3.24)
(0.92)
7.31
(47.87)
(4.98)
(3.96)
47.89
12.88
(49.35)
(74.27)
0.05
____-___
0.05
__-__ _
34,965.40
43,819.21
(8,853.80)
(20.21)
Difference between totals and sum of components is due to rounding off.
Presented in Table IV-13 are the components of Prepayments and Deferred Charges.
The LBP reported the biggest component of this account group with P9.28 billion or 26.54
percent in deferred charges, deferred tax assets and other prepaid expenses. Other GOCCs
with big balance of the account as of yearend are NLRC – P6.93 billion or 19.83 percent,
BSP – P6.14 billion or 17.56 percent, PNOC – P4.43 billion or 12.67 percent, NPC – P2.29
billion or 6.56 percent, PPA – P0.91 billion or 2.59 percent, MIAA – P0.71 billion or 2.02
percent, SBMA – P0.66 billion or 1.88 percent, DBP – P0.58 billion or 1.66 percent and
MWSS – P0.37 billion or 1.05 percent. The remaining P2.67 billion or 7.65 percent is
shared by 81 GOCCs.
Prepayments of NLRC pertain mainly to the 5 percent down payment (net of
recoupment) amounting to P1.15 billion and 25 percent advance payment (net of
recoupment) amounting to P5.79 billion made to China National Machinery and Equipment
Corporation (CNMEG) as provided under the Supply Contract Agreement between
Northrail and CNMEG. The 5 percent down payment and 25 percent advance payment
rates are the standard requirements under the Procurement Law, which the contracting
parties have agreed to follow.
Prepaid accounts of BSP include deferred charges, deferred tax assets and
miscellaneous assets while those of NPC’s pertains to prepaid insurance, advances to
contractors and other prepaid expenses.
PNOC’s prepaid expenses consist of deposits, prepaid income tax which pertains to
the Company’s 10 percent share on the tax component of the unearned revenue on
undelivered gas of the “take or pay” deficiency per Gas Sales and Purchase Agreement
(GSPA) with customers of the Service Contract (SC) 38 Malampaya Project. Other prepaid
expenses comprise of the excess cash call payments to Shell Philippines Exploration (SC 38
Malampaya Project’s Operator) for the Company’s share in the exploration, development
and operational expenditures; remaining vat input, and prepaid portion of the Agency Fee
on the US$175 million 5-year syndicated loan with Citibank for the period January 1 – July
31, 2007.
25
1.1.8 Other Current Assets – P52.42 billion
Other Current Assets of P52.42 billion posted an increase of P1.09 billion or 2.12
percent from restated 2005 balance of P51.33 billion. Of the amount, P51.19 billion or
97.66 percent pertains to Other Current Assets and P1.23 billion consists of Guaranty
Deposits. BSP has the highest Other Current Assets balance amounting to P33.80 billion or
64.47 percent. Other GOCCs included in the top ten with the biggest balance are: HGC –
P7.00 billion or 13.35 percent, SHFC – P6.16 billion or 11.76 percent, CB-BOL – P3.28
billion or 6.25 percent, NPC – P864.33 million or 1.65 percent, NFA – P359.33 million or
0.69 percent, MIAA – P347.67 million or 0.66 percent, SSS – P121.27 million or 0.23
percent, LWUA – P115.53 million or 0.22 percent and NHA – P79.50 million or 0.15
percent. The remaining P294.57 million or 0.56 percent belong to 65 GOCCs.
The nature of Other Current Assets of GOCCs with huge balance as of yearend are
as follows: BSP – receivables from items under litigation, initial fund of P500 billion set
up in calendar year 2006 for the BSP insurance scheme, accumulated earning for the year
and input tax; HGC – current portion of Sinking Fund; SHFC – balances of Community
Mortgage Program (CMP) related general ledger accounts transferred from NHMFC to
SHFC pertaining to projects taken-out from 1994 to September 30, 2005 including the
Abot-Kaya Pabahay Fund (AKBF) which are administered by the SHFC by virtue of
Executive Order No. 272 and total payments made to contractor. Moreover, CB-BOL
reported profits realized and losses sustained by the Central Bank from the revaluation of its
assets and liabilities in foreign currencies as a result of changes in parities/exchange rates of
foreign currencies to the Peso, and those arising from any other transactions of the Bank in
gold or foreign exchange; and NPC’s Other Current Assets of guaranty deposits.
1.2 Long-Term Receivables (net) – P483.52 billion
Total long-term receivables reached P487.18 billion gross of Allowance for Doubtful
Accounts of P3.66 billion. The net amount of P483.52 billion comprises 9.17 percent of the total
assets.
Compared to last year’s P466.49 billion, the current year’s level increased by P17.02 billion
or 3.65 percent. The growth was primarily due to the combined increases exhibited in six
components totaling P24.19 billion but it was reduced by the decline of P7.17 billion in Accounts
Receivable.
Table IV-14 Comparative Composition of Long-Term Receivables (net)
(in million pesos)
Particular
2006
2005
Increase (Decrease)
Amount
Percent
Loans Receivable
Other Receivables
Installment Sales Receivable
Accounts Receivable
Lease Receivable
Receivables - Items for
Litigation
Allowance for Doubtful
Accounts - Long Term
395,841.93
32,760.05
32,674.28
23,591.31
2,189.63
385,975.79
27,713.69
25,146.83
30,757.72
1,837.27
9,866.14
5,046.36
7,527.44
(7,166.40)
352.35
2.56
18.21
29.93
(23.30)
19.18
122.17
96.73
25.44
26.30
(3,662.60)
(5,034.84)
1,372.24
(27.25)
Long Term Receivables (net)
483,516.77
466,493.19
17,023.58
3.65
Difference between totals and sum of components is due to rounding off.
26
Table IV-14 shows the increase and decrease of the composition of long-term receivables
(net). Of the total long-term receivable accounts, BSP reported almost one-fourth of the aggregate
P483.52 billion or P117.57 billion. Other GOCCs with substantial amount of long-term
receivables are GSIS SIF – P108.57 billion or 22.46 percent, HDMF – P76.16 billion or 15.75
percent, SSS – P65.42 billion or 13.53 percent, PDIC – P51.60 billion or 10.67 percent, NHMFC –
P25.64 billion or 5.30 percent, LWUA – P14.28 billion or 2.95 percent, NHA – P6.63 billion or
1.37 percent, PRA – P5.70 billion or 1.18 percent and IGLF – P3.28 billion or 0.68 percent. The
remaining P8.68 billion or 1.79 percent pertains to 17 GOCCs.
BSP’s long-term receivables account consists of foreign and local currency loans and
advances. Local currency loans and advances include PDIC loans and advances which were relent to banks requiring financial assistance, National Government loans originally granted to the
DBP and the PNB, non-interest bearing subscription loans and advances for the payment of
increase in quota contribution of the Republic of the Philippines (RP) in the International
Monetary Fund (IMF) under the 11th General Review of Quotas and emergency loans in the form
of financial assistance, secured by assets, extended to banks and non-bank financial
intermediaries.
Details of long-term receivables of top four GOCCs with big balance of this account as of
yearend are as follows:
GSIS SIF – enhanced salary loans, policy loans, real estate loans, government loans,
summer one month, private loans and other loans granted to its members.
HDMF – loans granted under various programs, mortgage contract receivable particularly
those for PAG-IBIG members that are backed-up by real estate mortgages under various home
lending programs of the Fund, and sales contract receivables with two categories. Category I
consists of high yielding receivables purchased from various developers aimed to provide them
with a liquidity mechanism through the Fund’s purchase of their receivables with recourse basis,
substitution, buy-back features and a cash flow guarantee that ensures full remittance of the
monthly interest and principal. Category II consists of receivables from borrowers under a home
lending system using the Contract to Sell (CTS) as a primary debt instrument.
SSS – receivables from members, NHMFC, HDMF, housing loans, commercial and
industrial loans, program and other government agencies.
PDIC – loans, receivables from closed banks, net of allowance for probable losses, interest
receivables from held to maturity investments and financial assistance and all other receivables
including assessment deficiencies of member banks and those subsequently closed.
1.3 Long-Term Investments (net) – P544.92 billion
Long-term investments (net) valued at P544.92 billion net of Allowance for Decline in
Value of Investments of P2.90 billion represent 10.33 percent of the total assets. Compared to
2005 level, a decrease of P83.95 billion or 13.35 percent is noted.
Table IV-15 Comparative Composition of Long-Term Investments (net)
(in million pesos)
Increase(Decrease)
Particular
2006
2005
Amount
Percent
Other Long Term Investments
209,551.18
233,950.83
(24,399.66)
(10.43)
Investments in Bonds
175,284.08
225,779.17
(50,495.09)
(22.36)
Investment Property
46,760.60
55,759.41
(8,998.81)
(16.14)
Investments in Joint
43,911.09
44,041.85
(130.75)
(0.30)
Ventures/Subsidiaries/Operating Units
Investments in Stocks
39,422.50
38,431.74
990.77
2.58
Sinking Fund
19,939.97
14,535.61
5,404.36
37.18
27
(Table IV-15, Continued)
Investments in Treasury Bills/Notes
Interest Bearing Loans/Advances
Investments in Subsidiaries and
Affiliates
Premium Reserve Fund
Investments
Total
11,144.14
1,801.17
15,043.41
2,603.48
(3,899.27)
(802.31)
(25.92)
(30.82)
2.08
0.12
(2,896.42)
544,920.52
2.08
0.16
(1,273.39)
628,874.35
(0.05)
(1,623.02)
(83,953.84)
0.00
(29.04)
127.46
(13.35)
Difference between totals and sum of components is due to rounding off.
Table IV-15 shows the details of long-term investments (net). The decrease in the recorded
long-term investments of the following GOCCs was mainly due to the decline in the balance of
this asset component as of yearend: GSIS SIF – P50.91 billion, LBP – P21.91 billion, DBP –
P12.09 billion, PHIC – P10.56 billion, GSIS AF – P5.83 billion, HDMF – P4.89 billion, PSALM
– P4.44 billion and PNOC – P1.99 billion.
SSS topped the list of GOCCs with the biggest long-term investments amounting to
P123.60 billion or 22.68 percent, followed by GSIS SIF of P97.94 billion or 17.97 percent, PDIC
– P71.50 billion or 13.12 percent, DBP – P34.21 billion or 6.28 percent, BCDA – P27.28 billion
or 5.01 percent, HDMF – P26.50 billion or 4.86 percent, PNOC – P24.08 billion or 4.42 percent,
LBP – P23.65 billion or 4.34 percent, PHIC – P22.75 billion or 4.18 percent and NHMFC –
P13.81 billion or 2.53 percent. The remaining P79.61 billion or 14.61 percent was reported by 71
GOCCs.
Long-term investments of SSS and GSIS SIF of P123.60 billion and P97.94 billion,
respectively, constitute investments in bonds and property investments, loan financing and
investments in marketable securities and financial instruments. Loans include real estate loans and
non-traded stocks in various companies.
PDIC’s balance as of yearend includes special savings and time deposits; investments in
treasury bills, notes, bonds and sinking fund; and BSP managed funds for the payment of PDIC
loans and investment property.
DBP’s include government treasury notes, bills, Land Bank bonds, IRA Monetization
Program bonds, investments in subsidiaries, joint ventures and associates, investment in Heritage
Park; financial assets available for sale which include government and private debt and equity
securities including accrued interest receivable; and government and private financial assets held
to maturity.
PNOC’s long-term investments consist of investment in subsidiary/associates, treasury
bonds, stocks, debt securities, investment in NRMDC, payment in condominium project and other
investments.
1.4 Property, Plant and Equipment (net) – P1,225.72 billion
Twenty three percent or P1,225.72 billion of the total assets consists of Property, Plant and
Equipment, net of Accumulated Depreciation of P668.78 billion, posting an increment of P11.45
billion or 0.94 percent from 2005 level.
28
Table IV-16 shows the top ten GOCCs with big
amounts of PPE. NPC accounted for 65.90 percent of
the overall PPE while PPA and PNOC shared 6.05
percent and 4.79 percent, respectively.
Among the components, Other Property, Plant
and Equipment shared the biggest amount of P830.30
billion or 43.83 percent of the total PPE, followed by
Land and Land Improvements of P806.09 billion or
42.55 percent, Buildings – P124.26 billion or 6.56
percent, Construction in Progress of P74.72 billion or
3.94 percent and the 3.12 percent is comprised of
Machineries and Equipment – P30.79 billion, Office
Equipment, Furniture and Fixtures – P20.29 billion,
Transportation Equipment – P6.92 billion and Leasehold
Improvements – P1.12 billion.
Table IV-16 GOCCs with Big
Amounts
of Property, Plant and Equipment
(in million pesos)
GOCCs
Amount
NPC
807,807.33
PPA
74,157.14
PNOC
58,761.34
BCDA
49,484.96
MWSS
47,722.78
NIA
28,311.06
SBMA
25,411.34
LBP
20,071.64
MIAA
16,968.40
WATER DISTRICTS
15,124.28
Land and Land Improvements include runways/taxiways; electrification, power and energy
structures; roads, highways and bridges; artesian wells, reservoirs, pumping stations and conduits;
reforestation-upland and other public infrastructures that are being utilized by GOCCs to generate
income.
Construction in Progress of P74.72 billion, net of
Allowance for Valuation of P0.03 billion posted an increase
of P8.82 billion or 13.39 percent. The increase was mainly
due to the additional construction in progress recorded by
BCDA and MIAA in 2006 amounting to P4.69 billion and
P3.27 billion, respectively and inclusion in 2006 AFR of
Water Districts’ financial statements with account
Of the gross
Construction in Progress of P4.03 billion.
construction in progress, P74.58 billion or 99.76 percent
pertains to Agency Assets, 0.11 percent or P0.08 billion for
Roads, Highways and Bridges, 0.09 percent or P0.07 billion
pertains to Other Public Infrastructures and the remaining
0.04 percent or P0.03 billion for Reforestation - Upland –
P0.02 billion and Parks, Plazas and Monuments – P0.01
billion.
Table IV-17 GOCCs with Big
Amounts
of Construction in Progress
(in million pesos)
GOCCs
Amount
NPC
22,997.78
BCDA
10,484.46
NIA
9,501.90
PPA
7,909.23
MWSS
6,103.28
WATER DISTRICTS
4,030.20
SBMA
3,647.69
PNOC
3,479.84
MIAA
3,378.26
BSP
1,005.27
Table IV-17 shows the top ten GOCCs with big balance of Construction in Progress. The
NPC recorded the substantial amount in PPE which include electric plants, construction work in
progress, electric plant under capital lease and non-utility property. Electric plant under capital
lease represents the total computed capacity fees of Build Operate and Transfer (BOT) Plants for
the duration of the cooperation period.
1.5 Intangible Assets – P7.53 billion
Of the total assets of GOCCs, Intangible Assets accounted for a mere 0.14 percent or P7.53
billion. Compared to 2005, it increased by P1.57 billion or 26.32 percent which was mainly due to
the PNOC’s additional development and drilling costs in the geothermal projects mostly in
Northern Negros, Malitbog and Upper Mahiao in Leyte and Cabalian, Southern Leyte amounting
to P0.79 billion and NLRC’s additional project development costs which include capitalized
financing charges; costs of clearing and site preparatory works, rolling stock, squatter relocation,
consultancy fees and other project development costs that totaled P0.86 billion and pre-operating
expenses of P14.98 million. Its components are Organizational Costs – P0.13 billion or 1.77
29
percent, Development Cost – P6.92 billion or 91.83 percent and Other Intangible Assets – P0.48
billion or 6.40 percent.
Among the GOCCs with substantial balance of Intangible Assets are: PNOC – P5.52
billion or 73.33 percent, NLRC – P1.51 billion or 20.05 percent, LBP – P0.29 billion or 3.91
percent, DBP – P0.11 billion or 1.48 percent and SSS – P0.07 billion or 0.94 percent.
1.6 Other Assets – P248.43 billion
Other Assets amounting to P248.43 billion constitute 4.71 percent of the total assets of
GOCCs.
Table IV-18 Comparative Composition of Other Assets
(in million pesos)
Particulars
2006
2005
Increase(Decrease)
Amount
Other Assets
Acquired Assets
Other Non-Current Assets
Garnished/Foreclosed Assets
Non-Current Assets Held for
Sale
Restricted Fund/Assets
Assets Held in Trust
Arts, Archeological Specimen
and Other Exhibits
Breeding Stocks
Items in Transit
Work/Other Animals
Total
Percent
139,189.26
37,287.91
28,866.90
22,328.49
123,609.97
36,140.85
21,702.43
21,381.15
15,579.29
1,147.06
7,164.47
947.34
12.60
3.17
33.01
4.43
11,947.20
5,847.82
2,650.15
777.68
9,842.37
2,676.80
11,169.52
(3,994.55)
(26.65)
1,436.26
(40.59)
(1.00)
150.99
82.27
75.91
6.36
149.50
81.28
25.27
8.00
1.49
0.99
50.64
(1.65)
1.00
1.22
200.40
(20.58)
248,433.27
216,395.30
32,037.97
14.81
Difference between totals and sum of components is due to rounding off.
As shown in Table IV-18, among the components of this group, Other Assets and Acquired
Assets registered the highest balance with P139.19 billion and P37.29 billion, respectively. Other
Assets grew by P15.58 billion or 12.60 percent, mainly due to NPC’s higher restricted cash and
other assets that amounted to P15.81 billion. Another contributory factor was the increase in the
GSIS SIF’s non-current assets held for sale – P5.12 billion, contribution/premiums receivable –
P3.35 billion and recorded notes receivable in 2006 of P6.53 billion. SSS’ increase in interest
receivable, advances for fire/MRI/Foreclosure proceedings net of accumulated impairment loss
and non-current assets held for sale aggregating to P6.09 billion also contributed to the increase in
Other Assets.
30
The top ten GOCCs with the highest value of
Other Assets aggregated to P227.05 billion or 91.39
percent as of yearend are presented in Table IV-19.
The remaining P21.38 billion is shared by 81
GOCCs.
Table IV-19 GOCCs with Huge Amount
of Other Assets
(in million pesos)
GOCCs
Amount
NPC
101,882.28
GSIS SIF
30,964.34
HGC
23,345.01
HDMF
22,434.76
BSP
14,128.86
PDIC
11,793.97
SSS
9,865.98
PNOC
4,724.12
PSALM
4,120.59
DBP
3,794.17
The NPC has the biggest amount of Other
Assets of P101.88 billion or 41.01 percent higher by
P15.81 billion or 18.37 percent from 2005 level.
GSIS-SIF ranked second with P30.96 billion or
12.46 percent, higher by P12.24 billion or 65.40
percent from P18.72 billion in 2005.
2.0 LIABILITIES – P3,954.52 billion
This group of accounts consists of current liabilities – P 1,740.60 billion or 44.02 percent and
long-term liabilities – P2,213.92 billion or 55.98 percent.
Table IV-20 GOCCs with Highest Amount of Liabilities
(in million pesos)
GOCCs
BSP
NPC
CB-BOL
LBP
DBP
PDIC
NFA
PNOC
PSALM
NHMFC
Amount
1,304,600.65
1,056,550.92
416,126.22
323,009.41
202,970.21
88,458.15
70,638.81
68,728.72
60,652.47
47,762.16
GOCCs
HGC
MWSS
HDMF
NEA
NIA
GSIS-FB
LWUA
QUEDANCOR
BCDA
WATER DISTRICTS
Amount
26,610.07
24,416.39
22,970.06
18,857.99
14,977.26
12,362.48
12,335.90
12,196.98
10,709.82
10,433.90
The GOCCs which recorded the highest amount of liabilities are shown in Table IV-20. BSP has
the biggest liabilities amounting to P1,304.60 billion consisting of foreign and local currency financial
liabilities of P146.50 billion and P758.59 billion, respectively, currency in circulation of P384.49
billion and other liabilities of P15.02 billion. Liabilities of NPC include accounts payable and accrued
expenses and other current liabilities of P159.80 billion, foreign loans and other long-term liabilities of
P360.65 billion and lease obligation for build-operate-transfer of P536.11 billion. CB-BOL’s
liabilities of P416.13 billion consist mainly of Due to National Government (NG) of P408.46 billion
consisting of payment by NG of CB-BOL liabilities amounting to P244.71 billion, retained deposit of
the Treasurer of the Philippines (TOP) of P137.01 billion, NG advances on Brady Bond Exchange of
P26.48 billion and accrued interest on TOP’s fixed term deposit of P0.25 billion. Compared with the
restated figures as of December 31, 2005, there was a net increase of P331.89 billion or 9.16 percent in
Total Liabilities.
Chart IV-2 Comparative Liabilities
by Major Components
(in billion pesos)
5 ,0 0 0 .0 0
3,954.52
3,622.62
4 ,0 0 0 .0 0
2,213.92
3 ,0 0 0 .0 0
2,188.10
1,740.60
1,434.52
2 ,0 0 0 .0 0
1,0 0 0 .0 0
0 .0 0
T o tal
C urre nt
2006
Lo ng T e rm
2005
31
Comparative details of total liabilities for fiscal years 2006 and 2005 by major components are
shown in Chart No. IV-2.
2.1 Current Liabilities - P1,740.60 billion
The major components of current liabilities include Deposit Liabilities – P859.33
billion or 49.37 percent, Payables Accounts – P496.77 billion or 28.54 percent and Currency
in Circulation – P384.49 billion or 22.09 percent.
2.1.1 Deposit Liabilities – P859.33 billion
Deposit Liabilities of P859.33 billion accounted for 49.37 percent of the total
current liabilities. This account pertains to deposits made by bank depositors with the
five government banks namely: BSP – P516.61 billion, LBP – P267.55 billion, DBP –
P71.09 billion, PPSB – P3.45 billion and AIIB – P0.63 billion. Compared to 2005
restated amount of P611.83 billion, the account registered an increase of P247.50
billion.
BSP Deposit Liabilities include short-term foreign currency deposits of P41.30
billion, short-term and long-term government deposits of P79.18 billion, demand
deposits of banks/non-banks with quasi-banking licenses of P341.06 billion and
deposits of International Monetary Fund and other financial institutions amounting to
P55.07 billion.
2.1.2
Payables – P496.77 billion
This group of accounts represents 28.54 percent of the total current liabilities.
As of December 31, 2006, Payable accounts reached P496.77 billion, higher by
P10.64 billion or 2.19 percent than last year’s amount of P486.13 billion.
Table IV-21 Comparative Components of Payables
(in million pesos)
Particulars
2006
2005
Other Payables
124,282.12
181,793.59
Accounts Payable
112,594.92
81,545.23
Notes Payable
47,900.83
30,712.48
Loans Payable-Foreign
35,619.20
42,867.66
Loans Payable-Domestic
31,245.88
18,661.68
Due to National Treasury
26,804.86
26,423.09
Interest Payable
23,149.43
19,231.81
Due to Other GOCCs
17,079.99
10,827.14
Due to Other NGAs
14,603.29
14,360.78
Due to BIR
10,165.11
5,429.89
Guaranty Deposits Payable
9,946.70
9,091.47
Bonds Payable
8,961.74
1,200.00
Accrued Expenses Payable
7,385.11
7,555.88
Due to Officers and Employees
7,055.49
5,020.99
Due to Subsidiaries/Affiliates
5,714.05
10,056.29
Dividend Payable
4,639.19
4,376.58
Claims and Benefits Payable
3,423.72
6,037.67
BOT Obligations
2,766.40
5,058.28
Due to Other Funds
2,357.96
3,127.24
Others Accounts
1,077.98
2,754.91
Total
496,773.99
486,132.55
Difference between totals and sum of components is due to rounding off.
Increase(Decrease)
Amount
Percent
(57,511.37) (31.64)
31,049.70
38.08
17,188.35
55.97
(7,248.46) (16.91)
12,584.20
29.36
381.77
1.44
3,917.62
20.37
6,252.86
57.75
242.51
1.69
4,735.23
87.21
855.23
9.41
7,761.74
646.81
(170.76)
(2.26)
2,034.51
40.52
(4,342.24) (43.18)
262.61
6.00
(2,613.95) (43.18)
(2,291.88) (45.31)
(769.27) (24.60)
(1,676.93
(60.87)
10,641.44
2.19
Comparative components of Payables are shown in Table IV-21.
32
Other Payables account has the biggest balance at P124.28 billion for 2006,
constituting 7.13 percent of aggregate payables. NPC reported P55.80 billion or 44.90
percent of the total Other Payables. Other GOCCs with substantial amount are the
following: BSP – P19.36 billion, HGC – P13.65 billion, DBP – P7.25 billion, LBP –
P7.02 billion.
Accounts Payable of P112.59 billion comprises 22.67 percent of the aggregate
current liabilities.
Table IV-22 GOCCs with Huge Accounts Payable
(in million pesos)
Percent
GOCCs
Amount
Distribution
NPC
63.212.25
56.29
PSALM
13,445.93
11.97
HDMF
4,231.20
3.77
PHIC
4,118.93
3.67
PNOC
3,807.52
3.39
PPC
2,440.14
2.17
PTA
1,945.48
1.73
QUEDANCOR
1,695.86
1.51
SSS
1,490.00
1.33
LBP
1,457.83
1.30
NFA
1,445.13
1.29
GSIS-FB
1,333.37
1.19
NDC
1,280.83
1.14
PPA
1,086.93
0.97
PAGCOR
1,007.01
0.90
Sub-total
103,998.39
92.62
Other GOCCs (133)
8,289.58
7.38
Total
112,287.97
100.00
Difference between totals and sum of components is
due to rounding off.
Table IV-22 shows the GOCCs with substantial balance of Accounts Payable,
accounting for 92.62 percent and the remaining 7.38 percent is shared by 133 other
corporations. Notes Payable pertains to NFA’s temporary availments of credit lines
from different banks amounting to P47.90 billion to finance its procurement activities.
DBP’s current portion of Loans Payable – Foreign represents borrowings from
foreign financial institutions of P28.02 billion in 2006.
The top four corporations which constitute 89.01 percent of the total Loans
Payable – Domestic are GSIS-FB – P10.99 billion, DBP – P8.86 billion, PNCC –
P5.89 billion and PCFC – P2.03 billion.
Details of Loans Payable-Foreign and Domestic are shown in Schedules 1 and 2
of Volume II-B.
2.1.3 Currency in Circulation – P 384.49 billion
This account consists of notes and coins in different denominations issued by
BSP amounting to P371.81 billion and P12.68 billion, respectively.
33
BSP recorded an increase of P47.90 billion or 14.20 percent compared to
P336.56 billion in 2005.
Table IV-23 Comparative Currency in Circulation
Quantity
Amount (in million pesos)
Denomination
2006
2005
2006
Notes
100,000
2,000
1,000
500
200
100
50
20
10
5
118
14,030
132,367,131
337,072,806
33,728,702
395,450,117
307,818,730
413,072,478
76,518,316
30,988,918
118
9,964
110,734,593
296,212,179
19,744,360
373,158,111
263,320,427
538,123,864
81,992,779
31,306,345
254,835,520
1,059,768,067
3,324,900,825
4,392,521,069
1,799,055,484
1,182,170,789
13,154,712
2,859,897
194,290,797
1,011,398,412
3,143,795,626
3,897,513,626
1,691,889,330
1,109,115,270
12,029,642
2,793,092
Coins
10 peso
5 peso
1 peso
25 cent
10 cent
5 cent
1 cent
Commemorative Coins
Total
371,806.66
11.80
28.06
132,367.13
168,536.40
6,745.74
39,545.01
15,390.94
8,261.45
765.18
154.95
12,684.96
2,548.36
5,298.84
3,324.90
1,098.13
179.91
59.11
.13
175.58
384,491.62
2005
325,042.05
11.80
19.93
110,734.59
148,106.09
3,948.87
37,315.81
13,166.02
10,762.48
819.93
156.53
11,515.45
1,942.91
5,056.99
3,143.80
974.38
169.19
55.46
.12
172.62
336,557.51
Difference between totals and sum of components is due to rounding off.
Details of comparative Currency in Circulation are shown in Table IV-23.
2.1 Long-Term Liabilities – P2,213.92 billion
To sustain operations and meet the demand for additional production of goods and
services for the general public, GOCCs secured loans from foreign and domestic creditors. As
of December 31, 2006, total long-term liabilities of P2,213.92 billion is higher by P25.82 billion
from P2,188.10 billion in 2005.
Chart No. IV-3 Comparative Long-Term Liabilities by Major Accounts
(in billion pesos)
CY 2006
CY 2005
11.66,
0.53%
641.23,
28.96%
359.04,
16.22%
282.38,
12.75%
616.11 ,
27.83%
119.84,
5.41%
183.65,
8.30%
Loans Payable-Domestic
Other Long-Term Payable
Loans and Advances Payable
Loans Payable-Foreign
1.6 4 ,
0 .0 7 %
6 8 3 .6 4 ,
3 1.2 4 %
4 4 1.2 1,
2 0 .16 %
6 6 7 .9 0 ,
3 0 .5 2 %
10 8 .4 5 ,
16 0 .3 54, .9 6 %
12 4 .9 2 ,
7 .3 3 %
5 .7 1%
Bonds Payable-Foreign
Bonds Payable-Domestic
Various Payable Accounts
34
The comparative figures of six major accounts under long-term liabilities which represent
99 percent of the total long-term liabilities in two consecutive years 2005 and 2006 are presented
in Chart No. IV-3. It shows that out of the total long-term liabilities, Loans Payable-Domestic
shared 28.96 percent or P641.23 billion in 2006. Four GOCCs belonging to banking and
financing sector with the biggest outstanding loan balances are the following: CB-BOL –
P408.46 billion, PDIC – P81.99 billion, BSP – P51.69 billion, NHMFC – P43.36 billion. Details
of Loans Payable Domestic are shown in Schedule 2 of Volume II-B.
Other Long-Term Payables recorded by NPC amounting to P572.04 billion for 2006
correspond to 90.94 percent of the total amount. Other GOCCs with large amount of Other
Long-Term Payables include PNOC – P16.49 billion, PSALM – P9.95 billion, BSP – P8.60
billion and PDIC – P5.36 billion.
Loans and Advances Payable of BSP amounting to P280.45 billion in 2006 pertain to
government securities purchased under agreement to re-sell. The remaining amount was shared
by GOCCs under public utilities and industrial sectors.
GOCCs
NPC
Table IV-24 Corporations with Substantial Amount of Foreign Loans
(in million pesos)
Amount
Nature/Purpose
127,871.99 Used to finance projects on electric power production from various
sources such as hydro-electric, nuclear, geothermal field development
PNOC
32,526.34
Financed exploration, discovery and development of all forms of energy
resources including geothermal services, heat and power
LBP
31,272.58
MWSS
18,061.26
LWUA
9,689.19
Bills payable to multilateral and bilateral funding agencies such as
World Bank, ADB, Japan Bank for International Cooperation and
Kreditanstalt for Wiederaufbau
Financed water supply rehabilitation, Pasig River environmental
management, water districts development projects and water supply
improvement projects
Loans received, through subsidiary loan agreement with the National
Government, from foreign creditors mainly to finance on a long term
basis, the development of various water systems in different cities,
municipalities and rural areas in the country
Table IV-24 shows that GOCCs under financial and public utilities clusters obtained
loans from foreign financial institutions to finance development projects.
Another source of long-term liabilities is the flotation of bonds. Total Bonds PayableForeign increased by 14.53 percent from P160.35 billion in 2005 to P183.65 billion in 2006. The
GOCCs with substantial balance of this account are NPC – P158.23 billion or 86.16 percent and
PSALM – P25.42 billion or 13.84 percent of the aggregate long term liabilities.
Total Bonds Payable-Domestic of P119.84 billion in 2006 registered a net increment of
10.51 percent or P11.40 billion as shown in Table IV-25.
Table IV-25 Comparative Amount of Bonds Payable - Domestic
(in million pesos)
Amount
Increase(Decrease)
GOCCs
2006
2005
Amount
Percent
BSP
39,400.49
46,019.12
(6,618.63)
(14.38)
NPC
38,613.00
28,613.00
10,000.00
34.95
NFA
16,500.00
16,500.00
HGC
11,631.52
3,648.90
7,982.62
218.77
HDMF
7,000.00
9,000.00
(2,000.00)
(22.22)
35
(Table IV-25, Continued)
NDC
4,000.00
PSC
2,638.51
PTA
46.27
PNOC
5.81
Total
119,835.60
2,000.00
2,638.51
26.62
6.28
108,452.42
2,000.00
19.65
(0.48)
11,383.17
100.00
73.81
(7.58)
10.50
Difference between totals and sum of components is due to rounding off.
Outstanding Bonds Payable – Domestic of BSP which dropped to P39.40 billion
constitutes 32.88 percent of the total P119.84 billion. Table IV-25 shows thecomparative
amount of Bonds Payable-Domestic of GOCCs.
3.0 DEFERRED CREDITS - P56.56 billion
Deferred Credits of P56.56 billion consisting of Other Deferred Credits – P56.24 billion or
99.44 percent, and Deferred Tax Liability – P319.55 million or 0.56 percent exhibited 6.54 percent or
P3.95 billion growth from the previous year.
The top ten GOCCs with huge amount of Deferred
Credits are presented in Table IV-26. HDMF accounted for
21.93 percent or P12.41 billion of the total Deferred Credits.
It consists of unearned interest on multi-purpose loans that
are amortized monthly over the term of the loan, capitalized
interest and penalties on restructured loans, capitalized
origination fees on loans processed prior to issuance of
Circular 187, and collections for restructured accounts
undergoing foreclosure proceedings pending the expiration
of one year seasoning period.
NIA’s accumulated collection of advances for
irrigation fees and unearned income on installment sales,
equipment rentals and Communal Irrigation System
amortization reached P11.52 billion.
Table IV-26 GOCCs with Biggest
Deferred Credits
(in million pesos)
GOCC
Amount
HDMF
12,406.14
NIA
11,522.36
PNOC
6,326.82
NPC
5,353.42
BCDA
3,628.18
LBP
3,418.61
NHA
2,380.16
MWSS
2,343.43
DBP
1,747.44
SBMA
1,379.49
Other GOCCs with substantial balance and nature of the account are as follows:
PNOC – deferred interest income, price adjustment on the sale of 40 percent share of
Petron to Saudi Aramco, principal and interest payment on long-term loans, accumulated
amount out of the estimated P1.10 billion Company share in the future abandonment costs of
SC 38 Malampaya Project, reserve for development cost, interest on delayed payments,
unearned income from lease of property, locator deposits and other related fees, unrealized
gross profit on installment sales, deferred output value added tax, reservation fees, deferred
interests, deferred income on disposed properties and other deferred credits.
NPC – net advances of the Bureau of the Treasury to NPC for the debt servicing of
foreign loans and various payments to Independent Power Producers.
BCDA –
liability.
deferred income from leased properties, tax subsidy and deferred tax
4.0 EQUITY – P1,263.43 billion
The consolidated equity reported by all GOCCs as of yearend amounted to P1,263.43 billion,
higher by P228.26 billion or 22.05 percent than last year’s P1,035.17 billion. It is composed of
Government Equity – P206.32 billion, Capital Stock – P229.71 billion, Paid in Capital in Excess of Par
36
Value – P10.08 billion, Subscribed Capital Stock – P6.51 billion, Restricted Capital – P860.48 billion,
Appraisal Capital – P272.90 billion, Donated Capital – P13.02 billion, Treasury Stock – (P16.07
million), Other Equity Instruments – P6.37 billion and Retained Earnings/(Deficit) – (P341.94) billion.
Chart IV-4 Components of Equity
(in billion pesos)
1000
8 6 0 .4 8
800
600
600
400
8 0 7. 0 4
1000
800
2 72 . 9 0
2 2 9 . 71
2 0 6 .3 2
2 8 1. 3 3
2 2 1. 4 5
400
200
Government Equity13 . 0 2 10 . 0 8 6 . 51 6 . 3 7
Capital Stock
( 0 .0 2 )
Paid in Capital in Excess of
Par Value
Subscribed Capital Stock ( 3 4 1. 9 4 )
Restricted Capital
200
0
0
-200
-200
-400
-400
-600
19 0 .0 6
12 .9 6 3 . 6 6
6 .4 8
Appraisal Capital
( 0 .0 2 )
Donated Capital
Treasury Stock
( 4 8 7.78 )
Retained Earnings
Other Equity Instruments
2005
2006
Government Equity
Capital Stock
Paid in Capital in Excess of Par Value
Subscribed Capital Stock
Restricted Capital
Appraisal Capital
Donated Capital
Treasury Stock
Retained Earnings
Other Equity Instruments
Chart IV - 4 shows the components of GOCCs’ Equity.
4.1 Government Equity – P206.32 billion
Government Equity pertains to cumulative equity contributions of the National Government
to non-stock GOCCs and to their accumulated earnings, among others. At yearend, Government
Equity amounted to P206.32 billion, up by 8.56 percent or P16.26 billion from last year’s restated
amount of P190.06 billion. The GOCCs that contributed to the increase are the HDMF for the
P13.60 billion collections of members’ contributions, OWWA for the P1.15 income collections
and Water Districts for the P2.59 billion which were included for the first time in the AFR.
Negative adjustments in the beginning balances of PPC, NTA, CCP and NIA slightly reduced the
reported increase.
Table IV – 27 GOCCs with Substantial Amount of Government Equity
(in million pesos)
GOCCs
Amount
Nature
HDMF
138,589.50 Members’ contributions and accrued dividends
NIA
13,327.33
Capital expenditures out of funds directly released to NIA from 1983
– 1989 and out funds released thru the DA and DPWH from 1990 to
1996
BSP
10,000.00
Capital fully paid for by the Government of the Republic of the
Philippines upon effectivity of R.A. No. 7653 in 1993
OWWA
9,761.00
Accumulated net income
MIAA
7,472.00
Capital assets transferred by ATO and DOTC, P605 million
unremitted share of the National Government on the income of MIAA
from 1983 – 1986 converted to NG equity in accordance with
Executive Order No. 298 and P280.06 million grants and donations
from various sources.
NEA
5,148.02
Equity contribution of the National Government and P176.79 million
donations from various government agencies in support of the rural
electrification project
NFA
3,890.59
Equity contribution of the National Government
PPC
3,165.79
Equity contribution of the National Government
37
(Table IV-27, Continued)
PDIC
3,000.00
WATER DISTRICTS
HSDC
NPC
2,591.83
1,970.12
1,883.06
CCP
1,536.66
PRRI
1,000.71
Total capital provided by the National Government in accordance with
R.A. No. 3591
Equity contribution of the Local Government Units
Equity contribution of the National Government
Contra account for disallowances in audit, claims
for unrelieved losses of NPC properties and established inventory
shortages of Property Custodians
Vast parcels of reclaimed land where CCP Complex is situated,
initial capitalization of the Center, donated properties,
construction cost of Folk Arts Theater including furniture and
equipment
Capital and equity contribution of the National Government
and capital assets
Table IV-27 shows the GOCCs with substantial amount of Government Equity at
yearend. Apart from equity contributions of the NG to non-stock corporations, Government
Equity of GOCCs also includes capital assets either transferred from other government agencies
pursuant to certain executive issuances or purchased out of funds released through certain
departments of the NG.
4.2 Paid-in Capital – P239.77 billion
At yearend, the consolidated Paid-in Capital of GOCCs, net of Treasury Stocks, totaled
P246.28 billion. It is composed of Capital Stock – P229.71 billion, Paid-in Capital in Excess of
Par Value – P10.08 billion less Treasury Stock of P16.07 million. Compared to last year’s
P225.08 billion, this year’s Paid-in Capital is higher by P14.69 billion or 6.53 percent. Of the total
increase, P11.28 billion or 76.63 percent pertains to the P5 billion increase in the capital stock of
PNOC-EDC and to the net additional Paid-in Capital of P6.28 billion it realized from the sale of 3
billion shares of stocks with P1.00 par value per share sold at P3.20 per share.
Other GOCCs that reported substantial
increase in Paid-in Capital representing stock
dividends issued and additional subscriptions of
capital stocks are HGC – P3.30 billion and LBP –
P0.50 billion.
Table IV-28 shows the GOCCs with Huge
amount of Paid-in Capital. Except for BCDA,
PNOC-EDC, LBP, HGC and PPA, Paid-in Capital
account balances of as of December 31, 2005 of
nine listed GOCCs remained the same at yearend.
4.3 Appraisal Capital – P272.90 billion
Table IV -28 GOCCs with Huge Amount of
Paid-in Capital
(in million pesos)
GOCCs
Amount
BCDA
66,965.92
PNOC-EDC
29,507.40
NPC
27,048.87
SBMA
19,942.81
LBP
12,072.10
HGC
10,000.00
NDC
8,971.95
MWSS
6,095.49
NIA
5,559.19
TIDCORP
4,391.90
PPA
4,308.51
CPA
4,159.93
NHMFC
3,370.51
PRA
3,248.28
Appraisal Capital represents increases in the
value of assets due to appraisal or revaluation.
IAS No.16 allows as an alternative treatment, the
carrying of PPE at revalued amount. As provided,
revaluation should be made with sufficient regularity such that the carrying amount does not differ
materially from that which would be determined using fair value at the balance sheet date.
At yearend, consolidated Appraisal Capital of GOCCs amounted to P272.90 billion, lower
by P8.43 billion or 3 percent than last year’s restated figure of P281.33 billion. The PRA and NPC
reported substantial reductions of P3.89 billion and P3.08 billion, respectively.
38
The decrease in PRA’s Appraisal Capital was due to the reduction in the assigned value of
its share in various reclamation projects which it entered with private parties without cost. On the
other hand, adjustments to correct overstatement of transmission assets revalued in prior years
reduced NPC’s Appraisal Capital account balance in 2006 by P3.08 billion.
Other GOCCs which reported significant reductions in this account are PCSO – P0.88
billion, SBMA – P0.34 billion and GSIS SIF – P0.19 billion.
4.4 Donated Capital – P13.02 billion
Donated Capital represents the accumulated balance of grants and donations in cash and in
kind received by GOCCs from various foreign and domestic sources. The aggregate Donated
Capital of GOCCs of P13.02 billion posted an increment over last year’s restated balance of
P12.96 billion.
Table IV-29 shows the GOCCs with
substantial amount of Donated Capital.
Donated Capital of NPC pertains to grants
received from foreign governments and
lending institutions which were used to
finance the implementation of various
projects. Donated Capital of LCP represents
the cost of 12 hectares lot donated by NHA
LWUA’s Donated Capital represents the cost
of completed water supply projects funded by
grants from NG. Waterworks Facilities
turned over
by private subdivisions
and grants from JICA for the rehabilitation
of Balara Water Treatment Plant composed
of Donated Capital of MWSS.
Table IV-29 GOCCs with Substantial Amount of
Donated Capital
(in million pesos)
GOCC
Amount
NPC
4,022.00
LCP
2,895.05
LWUA
2,647.35
MWSS
1,046.97
PPA
586.64
QUEDANCOR
480.29
PHC
272.99
OSHC
248.92
BFI
205.92
NKTI
114.35
NDC
112.74
4.5 Other Equity Instruments – P6.37 billion
Other Equity Instruments valued at P6.37 billion consist of Hybrid Tier 1 (HT1) Capital
Securities issued by the DBP with the approval of the BSP. The basic features of the HT1 Capital
Securities are as follows:
•
•
•
•
Interest at 8.375 percent per annum payable semi-annually
Interest payable on March 15 and September 15 of each year commencing on
March 15, 2007
Redemption at the option of the Parent Company
Rights and claims of the holders subordinated to the claims of senior creditors
At yearend, Other Equity Instruments showed a balance of P6.37 billion, the aggregate
amount of HT1 Capital Securities sold by DBP from September to December 2006.
4.6 Restricted Capital – P860.48 billion
The consolidated Restricted Capital reported by GOCCs reached P860.48 billion, higher by
P53.44 billion or 6.62 percent than last year’s P807.04 billion.
GOCC
GSIS- SIF
Table IV-30 GOCCs with Substantial Increase in Restricted Capital
(in million pesos)
Amount
Nature
38,376.34
Current year revenue appropriated for the actual reserve requirement for
various Funds such as Social Insurance, Optional Insurance, Employee
Compensation Insurance, Pre-Need Insurance, General Insurance and
Property Replacement
39
(Table IV-30, Continued)
BSP
5,019.23
SSS
6,051.13
PDIC
DBP
PAGCOR
2,200.15
611.15
577.00
LBP
CDC
CITEM
411.60
160.00
154.22
Additional set up of reserve for price fluctuation of gold holdings and
gold insurance fund of P11.22 billion reduced by the partial closing of
P6.82 billion reserve for contingencies pertaining to BSP advances to the
NG for IMF quota increase in 1992 which the NG settled in 2006
Current year revenue set up as additional reserve for social insurance and
property valuation
Additional reserve for estimated insurance losses
Additional reserve for losses and contingencies
Current year appropriation for acquisition of Slot Machines Demo Units
and for other capital expenditure
Additional reserve for contingencies and prior period adjustment
Appropriation for capital expenditure and loan amortization
Roll over of interests on Building Fund
Table IV- 30 shows the GOCCs with substantial increases in Restricted Capital. All of the
above GOCCs had the increase in the Restricted Capital taken from their respective current year
revenues and income.
4.7 Retained Earnings (Deficit) – (P341.94) billion
At yearend, GOCCs had a Net Deficit of P341.94 billion representing the difference
between the total Retained Earnings of P290.03 billion reported by 64 GOCCs and 273 Water
Districts and the total Deficits of P631.97 billion reported by 69 GOCCs. The Deficit is lower by
P145.84 billion than last year’s P487.78 billion due to higher net income realized by various
GOCCs during the year and the inclusion of Water Districts in the AFR. The latter reported an
overall retained earnings of P0.83 billion.
Table IV-31 shows the GOCCs which
reported substantial increases in Retained
Earnings. SSS had the highest increase of
P22.66 billion which pertains to the fair value
gains from its available-for-sale financial
assets. BSP followed with P13.60 billion
consisting of current year’s income – P3.78
billion, marked to market of government
securities – P6.49 billion and closure of
reserve for contingencies – P6.82 billion less
dividends for the year – P3.60 billion. The
increase in Retained Earning of the above
listed GOCCs resulted from their substantial
net income for the period ended December
31, 2006 and adjustments of prior year’s
income and expenses.
40
Table IV-31 GOCCs with Substantial Increase in
Retained Earnings
(in million pesos)
GOCC
Amount
SSS
22,657.47
BSP
13,603.24
LBP
10,312.70
PNOC
9,576.89
PHIC
9,175.15
GSIS – SIF
8,612.92
MWSS
2,372.27
HDMF
1,677.51
GSIS – MFI
1,596.71
PPA
1,401.25
GSIS – AF
1,273.60
BCDA
1,236.25
PAGCOR
1,091.87
NHA
1,031.85
Table IV-32 shows the GOCCs with
substantial amount of Deficits as of
December 31, 2006.
The CB – BOL continued to incur
deficits which at yearend amounted to
P411.89 billion, of which P15.91 billion
pertains to current year net loss from
operations. Deficit of CB-BOL for 2006 was
primarily due to loss on foreign exchange
fluctuation of P14.47 billion and interest
expense on foreign borrowing of P1.44
billion. Other corporations that reported
additional deficits during the year are NFA –
P10.89 billion, PNCC – P1.09 billion, HGC –
P0.77 billion, NABCOR – P0.36 billion and
PPC – P0.17 billion.
Table IV 32 GOCCs with Substantial Deficits
(in million pesos)
GOCCs
Amount
CB-BOL
411,895.10
NPC
118,020.24
NFA
46,585.43
PNCC
14,731.85
NDC
7,125.14
NHMFC
6,658.23
NEA
5,297.89
TIDCORP
3,098.61
SBMA
2,365.51
GSIS FAMILY BANK
1,877.94
NABCOR
1,667.33
HGC
1,657.48
HSDC
1,171.68
PPC
1,012.02
At P118.02 billion, the NPC’s deficit is lower by P80.13 billion or 40.44 percent than its
last year’s level of P198.15 billion. The substantial decrease pertains to its net income of P90
billion less correction of prior year’s error of P7.26 billion and cash dividends of P2.60 billion.
Other GOCCs which reported reductions in their deficit balances are NHMF – P1.45 billion,
SBMA – P0.59 billion, NEA – P0.33 billion and NDC – P0.33 billion.
41
STATEMENT OF INCOME AND EXPENSES
The GOCCs registered a total income of P718.73 billion, posting an increase of P38.59 billion or 5.67
percent from P680.15 billion in 2005. The rise in this year’s income was reflected in Business Income, Service
Income and Other Income which grew by P33.31 billion, P7.21 billion and P5.81 billion, respectively. This was,
however, brought down by a decrease in Gains/Premiums of P7.89 billion.
The aggregate income consists of Business Income – P537.29 billion, Gains/Premiums – P101.15 billion,
Other Income – P58.48 billion, Service Income – P21.09 billion and Permits and Licenses – P0.73 billion.
The NG share from the gross income of PAGCOR – P11.98 billion and MIAA – P0.62 billion or P12.60
billion rose insignificantly from P12.53 billion in 2005.
Total expenses of P546.73 billion increased by P29.08 billion or 5.62 percent, from P517.65 billion in
2005 resulting from increases in Maintenance and Other Operating Expenses and Personal Services of P27.40
billion and P3.12 billion, respectively. This was however partly reduced by a decline in Financial Expenses of
P1.44 billion.
Net Income after Tax rose to P168.58 billion or an increase of P2.98 billion or 1.80 percent, from
P165.59 billion in 2005.
Chart IV-5 Components of Statement of Income and Expenses
(in billion pesos)
800
718.73
680.15
706.13
667.62
700
600
(546.73)
(517.65)
500
400
300
100
165.59
168.58
200
(12.60)
(12.53)
13.52
17.94
0
2006
INCOME
Share of NG
2005
Incom e after Share of NG
EXPENSES
SUBSIDIES
NET INCOME
Chart IV-5 shows the combined results of operation of GOCCs for fiscal years 2006 and 2005.
1.0 Income - P718.73 billion
The largest source of the Corporate Government Sector’s income in 2006 was Business Income,
accounting for almost three fourths or P537.29 billion. The second largest was Gains/Premiums at P101.15
billion or 14.07 percent while Other Income and Service Income contributed P58.48 billion and P21.09
billion, respectively.
42
Chart IV-6 Major Sources of Income
(in billion pesos)
600
Business Incom e
537.29
503.98
Gains/Prem ium s
500
Other Incom e
400
Service Incom e
300
200
100
Perm its and
Licenses
109.04
101.15
58.48
21.09
52.67
0.73
13.88
0.58
0
2006
2005
Chart IV-6 shows the comparative major sources of income earned.
1.1 Business Income – P537.29 billion
Business Income amounted to P537.29 billion, 6.61 percent or P33.31 billion higher in 2005. Major
components of this group of income are as follows: Sales Revenue – P209.23 billion or 38.94 percent,
Other Business Income - P185.02 billion or 34.44 percent, Members’ Contribution – P91.14 billion or
16.96 percent, Insurance Premiums - P29.39 billion or 5.47 percent and Income from Waterworks
Systems – P11.10 billion or 2.07 percent.
Table IV-34 Comparative Components of Business Income
(in million pesos)
Increase(Decrease)
Particulars
2006
2005
Amount
Percent
Sales Revenue
Other Business Income
Members Contribution
Insurance Premiums
Income from Waterworks Systems
Rent Income
Hospital Fees
Landing and Parking Fees
Income from Joint Ventures
Fines and Penalties - Business Income
Income from Canteen/Restaurants
Operations
Income from Markets
Income from Dormitory/Guest
Houses/Cottages Operations
Income from Communication Facilities
Printing and Publication Income
TOTAL
209,234.06
185,017.75
91,136.78
29,388.98
11,097.27
5,601.48
3,274.63
1,415.17
673.51
328.88
204,391.85
171,311.42
89,765.42
24,805.98
3,173.02
5,512.01
2,848.92
1,457.86
525.76
115.94
51.88
41.13
43.62
22.83
1.95
1.17
537,287.47
21.96
1.56
1.66
503,976.97
4,842.21
13,706.33
1,371.36
4,583.01
7,924.25
89.47
425.72
(42.69)
147.76
212.94
8.26
41.13
0.87
0.39
(0.49)
33,310.51
2.37
8.00
1.53
18.48
249.74
1.62
14.94
(2.93)
28.10
183.66
18.93
3.98
25.01
(29.52)
6.61
Difference between totals and sum of components is due to rounding off.
Tables IV-34 and IV-35 show the comparative components of Business Income and top earners for
the year, respectively. The overall increase of P33.31 billion resulted from higher Business Income in
almost all components. The inclusion of Water Districts’ Business Income of P 8.21 billion contributed
43
to said increment.
Table IV-35 Top Business
Income Earners for the Year
As in the previous year, NPC continued to account the
biggest share of the Business Income at P175.13 billion
largely from Sales Revenue of P175.12 billion. NPC’s
sales revenue grew by P9.67 billion from P165.44 billion
in 2005. This should have been higher if not for the three
super typhoons – Milenyo, Senyang and Reming – which
hit the country in 2006, impeding more sales due to
toppled towers and power transmission lines.
The SSS which ranked second, earned business
income from Members’ Contributions
and
Other
Business Income amounting to P52.54 billion and P12.11
billion, respectively. Other Business Income of the SSS
consists of income from loans and receivable – P4.23
billion, financial assets held to maturity – P3.85 billion,
available for sale financial assets – P1.72 billion, current
investments – P1.3 billion and others – P1.01 billion.
Amount
(in million pesos)
GOCC
NPC
SSS
GSIS - SIF
BSP
NFA
PHIC
PAGCOR
LBP
DBP
PDIC
HDMF
175,128.41
64,651.50
54,355.28
52,410.34
52,410.34
22,598.60
22,491.31
20,940.83
14,633.64
12,772.58
12,223.45
The Social Insurance Fund (SIF) administered by the GSIS generated business income from
Members’ Contributions and Other Business Income totaling P54.36 billion. Other Business Income
includes interests on loans granted to members – P15.28 billion and interest on premium arrearages –
P0.48 billion.
The BSP ranked fourth with Other Business Income of P52.41 billion in 2006 which increased by
P9.45 billion over P 42.96 billion in 2005.
Income from Waterworks System more than tripled with P11.10 billion or an increase of P7.92
billion from P3.17 billion in 2005 due to the inclusion of 272 Water Districts’ income this year which
was not incorporated in the previous year’s report because of low submission rate. For fiscal year 2006,
Water Districts generated P7.80 billion of income under this category.
1.2 Gains/Premiums – P101.15 billion
Gains/Premiums reached P101.15 billion, showing a decline of P7.89 billion or 7.24 percent,
based on P109.04 billion in 2005. Gain on Foreign Exchange accounted for three fourths or P75.43
billion while Gain on Sale of Securities/Investments totaled P12.38 billion.
Table IV-36 Major Components of Gains/Premiums
(in million pesos)
Increase(Decrease)
Particulars
2006
2005
Amount
Percent
Gain/Loss on Foreign Exchange
75,434.43 102,126.85 (26,692.42)
(26.14)
Gain/Loss on Sale of
Securities/Investments
12,375.15
4,379.78
7,995.37
182.55
7,002.99
480.89
6,522.11
1,356.26
Gain/Loss on Sale of Disposed Assets
Unrealized Gain (Loss)
Gain/Loss on Revaluation
Realized Gain (Loss)
Total
5,782.83
806.42
427.66
1,169.59
125.32
75.91
101,148.39 109,039.45
4,976.40
(741.93)
49.41
(7,891.06)
Difference between totals and sum of components is due to rounding off.
Table IV-36 summarizes the major components of Gains/Premiums account.
44
617.10
(63.44)
65.09
(7.24)
Of the total Gain/Loss on Foreign Exchange, the NPC generated P68.74 billion or 91.13 percent
resulting from the appreciation of peso upon revaluation of outstanding loans used for operating plants
and working capital loans.
Majority of Gain/Loss on Sale of Securities/Investments or 90.14 percent was reported by the
following: PNOC with P6.14 billion, GSIS-SIF – P3.15 billion and DBP – P1.87 billion. PNOC realized
gain when its investments in PNOC-EDC (three billion shares of stock with par value of P1) were
included in the six billion shares sold to the public at P3.20 per share. The gain of P6.14 billion was net
of cost and other selling expenses.
Substantial amount of Gain/Loss on Sale of Disposed Assets or P6.37 billion was reported by
NPC brought about by the gain on sale of Pantabangan HEPP.
Unrealized gain of P4.83 billion reported by the GSIS-SIF was the difference between the cost
and the fair value of the stock investments held for trading initially recorded at cost and revalued at fair
value at balance sheet date.
1.3 Other Income – P58.48 billion
Other Income consists mainly of Interest Income, Miscellaneous Income, Dividend Income and
Insurance Income. Interest Income accounted for P30.54 billion and Miscellaneous Income with P22.48
billion while Dividend Income and Insurance Income contributed P3.58 billion and P1.28 billion,
respectively.
Table IV-37 GOCCs with Substantial Amount of Other Income
(in million pesos)
GOCC
Amount
GOCC
Amount
GSIS-SIF
14,906.89
OWWA
2,062.61
NPC
6,669.58
LBP
1,818.96
PHIC
5,624.30
LWUA
1,773.83
HDMF
4,450.62
NHMFC
1,558.92
BSP
3,381.50
GSIS - AF
1,356.76
PNOC
2,977.01
DBP
1,225.28
PAGCOR
2,908.19
NFA
1,131.53
The GOCCs that reported substantial amount of Other Income are shown in Table IV-37.
Of the total Other Income, P14.91 billion earned by the GSIS-SIF was composed of Interest
Income – P10.43 billion, Miscellaneous Income – P3.91 billion and Dividend Income – P0.56 billion.
Interest Income was generated mainly from investments on ROP notes, bonds and bills amounting to
P10.36 billion.
1.4 Service Income – P21.09 billion
Service Income rose to P21.09 billion, up by P7.21 billion or 51.90 percent from the previous
year’s P13.88 billion.
Service Income consists principally of earnings from Other Service Income of P16.33 billion,
Toll and Terminal Fees – P3.79 billion and Processing Fees – P0.73 billion. Other Service Income went
up by P5.95 billion or 57.40 percent in 2006 compared to last year’s P10.37 billion. On the other hand,
Toll and Terminal Fees increased slightly by P0.59 billion.
Of the total Other Service Income, P12.03 billion or 73.68 percent was generated by the
following: PEZA with P6.36 billion, PPC – P3.50 billion, QUEDANCOR – P1.11 billion and NIA –
P1.06 billion. The remaining 26.32 percent was shared by various GOCCs with less than P1 billion each.
45
The income of MIAA from Toll and Terminal Fees amounted to P1.97 billion representing
52.13 percent of the total, up by P0.51 billion or 34.92 percent.
1.5 Permits and Licenses – P726.32 million
Permits and Licenses issued by GOCCs went up by P150.56 million or 26.15 percent from last
year’s amount of P575.76 million.
Table IV-38 Composition of Permits and Licenses
(in million pesos)
Particulars
Permit Fees
Other Permits and Licenses
Registration Fees
Franchising and Licensing Fees
Fishery Rental Fees
Fines and Penalties – Permits and
Licenses
Total
2006
288.55
186.56
105.75
97.36
36.04
12.06
2005
213.86
186.28
97.57
28.58
37.49
11.97
Increase(Decrease)
Amount
Percent
74.69
34.92
0.28
0.15
8.17
8.38
68.78
240.62
(1.45)
(3.87)
0.09
0.78
726.32
575.76
150.56
26.15
Difference between totals and sum of components is due to rounding off.
Composition of Permits and Licenses is shown in Table IV-38.
Of the total Permits and Licenses, the PCA recorded the highest earnings from this type of
income amounting to P157.03 million followed by SRA with P122.14 million, NFA – P98.29 million,
LLDA – P81.16 million, CEZA – P79.04 million and PEZA – P76.63 million.
2.0 Subsidy Income – P13. 52 billion
Some GOCCs received subsidy from the NG, other GOCCs and subsidiaries/affiliates to sustain their
operations and/or finance the implementation of programs and projects pertaining to food security and
stabilization, housing, electrification, transportation, etc.
GOCC
NFA
Table IV-39 GOCCs that Received Substantial Amount
of Subsidy from the NG
(in million pesos)
Amount
Purpose
3,911.01
Tax subsidy for customs duties
900.00
PPC
4,811.01
1,523.00
500.00
500.00
2,523.00
549.00
500.00
500.00
36.26
1,585.26
1,333.80
NHMFC
1,000.00
NHA
NEA
Food security and stabilization programs
Total
Various resettlement projects
Northrail/Southrail Linkage Project
Northrail Resettlement Project
Total
Calamity Grant for release to electric cooperatives
Conversion of interest on NG advances
Regular subsidy
Priority development program
Total
Tax subsidy to cover payment of Value Added Tax on domestic
postal services for the years 1999 to 2005
Implementation of the Community Mortgage Program
46
Table IV-39 shows GOCCs that received substantial amount of subsidy. For complete list of GOCCs that
received subsidy from NG, refer to Schedule 3, Volume II-B.
3.0
Expenses – P546.73 billion
Chart IV-7 Expenses by Class
(in million pesos)
The aggregate expenses reported
by government corporations reached
P546.73 billion, up by P29.08 billion
or 5.62 percent from last year’s
P517.65 billion. This year’s expenses
are for Personal Services – P51.30
billion or 9.38 percent, Maintenance
and Other Operating Expenses –
P435.23 billion or 79.61 percent and
Financial Expenses –
P60.20
billion or 11.01 percent. Chart IV-7
presents expenses by class.
435.23
51.30
60.20
PS
MOOE
FE
3.1 Personal Services – P51.30 billion
Personal Services (PS) for the year aggregated to P51.30 billion, exhibiting an increase of
P3.12 billion or 6.48 percent than last year’s P48.18 billion. Among the components, the biggest
outlay was for Salaries and Wages – P27.08 billion or 52.78 percent of the total; followed by Other
Compensation – P11.36 billion or 22.15 percent, Other Personnel Benefits – P9.31 billion or 18.14
percent and Personnel Benefits Contribution – P3.55 billion or 6.93 percent.
Table IV-39 Top Ten GOCCs With Huge
Expenses for Personal Services
(in million pesos)
Increase (Decrease)
Rank
GOCC
2006
2005
Amount
Percent
1
PAGCOR
5,556.92
5,224.53
332.39
6.36
2
BSP
5,310.79
6,151.21
(840.42)
(13.66)
3
LBP
5,186.82
5,144.23
42.59
0.83
4
SSS
4,152.77
3,964.58
188.19
4.75
5
GSIS-SIF
3,639.57
3,388.23
251.35
7.42
6
NPC
3,486.27
3,613.85
(127.58)
(3.53)
7
DBP
2,977.26
3,000.07
(22.80)
(0.76)
8
PPC
2,553.07
2,547.59
5.47
0.21
9
WDs
2,514.63
-
-
10
HDMF
1,474.75
257.31
21.14
1,217.44
Table IV-39 shows the top ten GOCCs that incurred huge expenses for Personal Services
aggregating to P36.85 billion which is equivalent to 71.84 percent of the total. The remaining
P14.45 billion or 28.16 percent was shared by the remaining GOCCs. Except for the ranking, the
same corporations are on the top ten in this category last year. BSP’s PS dropped by 13.66 percent
brought about by the decrease of 211 personnel this year, from 5,047 to 4,836.
47
3.2 Maintenance and Other Operating Expenses – P435.23 billion
The total Maintenance and Other Operating Expenses (MOOE) for the year went up to
P435.23 billion, higher by P27.40 billion or 6.72 percent than last year’s P407.83 billion. Other
Maintenance and Operating Expenses was the highest among the components with P151.70 billion.
Table IV-40 Maintenance and Other Operating Expenses
by Group of Expenses
Amount (in million pesos)
Increase
Account
2006
2005
(Decrease)
Other Maintenance and Operating Expenses
Member's Benefits
Cost of Goods Sold
Interest Expenses
Depreciation
Bad Debts
Taxes, Insurance Premiums and Other Fees
Utility Expenses
Interest on Conventional Deposits
Confidential, Intelligence, Extraordinary and
Miscellaneous Expenses
Professional Services
Supplies and Materials Expenses
Rent Expenses
Repairs and Maintenance
Subsidies and Donations
Claims and Losses Paid
Advertising Expenses
Transportation and Delivery Expenses
Amortization Expenses
Traveling Expenses
Rewards and Other Claims
Communication Expenses
Training and Scholarship Expenses
Depletion
Representation Expenses
Foreclosure and Litigation Expenses
Printing and Binding Expenses
Storage Expenses
Insurance Benefits
Discounts
Membership Dues and Contributions to
Organizations
Subscription Expenses
Survey Expenses
Awards and Indemnities
Sales Discounts
Sales Returns and Allowances
Total
48
151,696.05
99,896.62
45,038.85
31,302.52
28,671.90
11,675.33
9,994.86
9,651.57
8,837.48
149,650.04
94,891.60
48,164.60
22,045.02
25,268.55
10,543.31
9,371.67
7,737.33
7,878.36
2,046.01
5,005.02
(3,125.75)
9,257.50
3,403.36
1,132.03
623.20
1,914.23
959.12
7,089.92
5,903.67
4,532.92
4,014.52
3,331.77
2,424.57
2,098.25
1,267.26
1,261.69
1,125.27
1,097.05
1,021.44
993.02
441.60
437.29
348.57
316.16
315.52
189.39
90.39
88.71
7,021.13
4,664.81
3,403.25
3,976.36
2,036.02
1,263.20
1,988.55
1,068.33
1,374.24
810.36
894.98
1,021.48
922.36
349.11
125.60
258.75
448.51
256.97
141.90
76.86
128.08
68.79
1,238.87
1,129.67
38.16
1,295.75
1,161.37
109.70
198.93
(112.55)
314.91
202.07
(0.04)
70.66
92.50
311.68
89.82
(132.35)
58.55
47.49
13.53
(39.37)
36.47
16.47
9.05
8.61
6.11
0.01
435,230.88
24.58
19.33
2.45
5.84
0.00
0.00
407,833.52
11.89
(2.85)
6.59
2.77
6.11
0.01
27,397.37
The major expense accounts under MOOE are shown in Table IV-40.
3.2.1 Other Maintenance and Operating Expenses - P151.70 billion
At P151.70 billion, Other Maintenance and Operating Expenses was 34.85 percent of the
total MOOE. This account includes expenses which are not classified in specific accounts such
as cost for printing and minting of peso bills and coins, losses on investments and on foreign
exchange, provision for impairment of investments, impairment losses on loans and advances,
equity share in net loss of subsidiary and others.
Table IV-41 Top Ten GOCCs with Significant Amount of
Other Maintenance and Operating Expenses
(in million pesos)
Increase/ (Decrease)
GOCC
2006
2005
Amount
Percent
NPC
117,229.86
120,878.24
(3,648.39)
(3.02)
CB-BOL
14,474.73
3,365.80
11,108.93
330.05
BSP
2,706.43
3,715.15
(1,008.73)
(27.15)
DBP
2,703.32
2,566.89
136.43
5.32
GSIS-SIF
2,626.65
671.88
1,954.76
290.94
GSIS-AF
2,298.37
1,972.02
326.36
16.55
PAGCOR
1,946.88
1,384.86
562.02
40.58
PNCC
1,345.69
2,433.72
(1,088.03)
(44.71)
HDMF
1,161.83
958.20
203.63
21.25
SSS
353.65
266.18
87.48
32.86
Table IV-41 shows the top ten GOCCs with significant Other MOOE. Topping the list of
GOCCs which incurred huge Other MOOE are NPC – P117.23 billion or 77.28 percent, which
includes expenses for decommissioned plants, CB-BOL – P14.47 billion or 9.54 percent, for
losses on foreign exchange fluctuations, BSP - P2.71 billion for currency and gold operation
expenses and currency printing and minting costs, DBP – P2.70 billion for management and
other operating expenses, GSIS-SIF – P2.63 billion for losses on foreign exchange, GSIS-AF –
P2.30 billion for losses on foreign exchange and on investments and for payment to GSIS-SIF
for administration and marketing commissions, PAGCOR – P1.95 billion, PNCC – P1.34
billion, HDMF – P1.16 billion for expenses directly attributable to its lending operations and
SSS – P0.35 billion. The combined total for these GOCCs is P146.85 billion constituting 97.14
percent of the total Other Maintenance and Operating Expenses.
3.2.2 Members’ Benefits – P99.90 billion
The second highest MOOE incurred by GOCCs are for Members’ Benefits which
reached P99.90 billion or 22.95 percent of MOOE. This expense item pertains to social security
benefits which include retirement, disability, maternity, sickness, other medical benefits, and
death and funeral grants.
SSS reported the biggest amount with P52.12 billion or 52.18 percent of the total,
registering an increase of P5.85 billion or 12.65 percent over last year’s P46.27 billion. GSISSIF followed with P30.57 billion or 30.60 percent, recording a decrease of P0.54 billion or 1.72
percent from last year’s P31.11 billion. PHIC reported P17.20 billion or 17.22 percent, also
showing a decrease of P0.31 billion or 1.77 percent compared to P17.51 billion of the previous
year.
3.2.3
Cost of Goods Sold – P45.04 billion
Cost of Goods Sold at P45.04 billion account for 10.35 percent of the total MOOE,
showing a decline of P3.11 billion or 6.46 percent.
49
Table IV-42 GOCCs that Incurred Significant Amount of
Cost of Goods Sold
(in million pesos)
Increase (Decrease)
GOCC
2006
2005
Amount
Percent
NFA
36,239.54
39,607.55
(3,368.01)
(8.50)
PTA
6,686.49
6,469.11
217.38
3.36
PNOC
1,489.84
1,625.38
(135.54)
(8.34)
PITC
253.73
200.67
53.06
26..44
FSC
181.56
99.46
82.10
82.55
NFC
87.17
78.92
8.25
10.46
PNCC-TCPC
44.30
31.45
12.85
40.85
PITC-PHARMA
21.18
21.18
PITAHC
12.72
13.14
(0.42)
(3.17)
ZNAC
11.32
22.29
(10.97
(49.22)
The GOCCs listed in Table IV-42 incurred significant amounts for this group of account
which aggregated to P45.03 billion or 99.98 percent of the total Cost of Goods Sold. NFA
topped the list with P36.24 billion or 80.46 percent of the total P45.04 billion, particularly for
the purchase of local and imported grains, sugar and other non-grains commodities. PTA
ranked second with P6.69 billion or 14.85 percent, for operating and managing ten entities and
fourteen field offices consisting of duty free shops, hotels, restaurants, golf courses and other
tourist facilities. PNOC with P1.49 billion or 3.31 percent spent for power generation.
3.2.4 Interest Expense – P31.30 billion
Interest Expense classified as MOOE pertains to payments of interests by government
banks related to their regular function as banking institutions, while those associated with
borrowings are classified as Financial Expenses in accordance with the NGAS Chart of
Accounts. Government banks, GSIS and SSS are exempted from the use of such Chart of
Accounts pursuant to COA Circular No. 2004-002 dated April 29, 2004.
For fiscal year 2006 GOCCs’ Interest Expense totaled P31.30 billion or 7.19 percent of
the aggregate MOOE. This was incurred by BSP alone as part of its mandated function
concerning money, banking and credit and the responsibility of exercising supervision over
banking institutions. Interest expense was incurred for foreign and local currency financial
liabilities which include deposits of government, banks and other financial institutions, on short
term deposits, for the allocation of IMF special drawing rights and for securities sold under
agreements to repurchase.
3.2.5 Depreciation – P28.67 billion
Depreciation for fiscal year 2006 amounted to P28.67 billion constituting 6.59 percent of
the total MOOE. This year’s level was higher by P3.40 billion or 13.47 percent compared to
last year’s P25.27 billion. Among the GOCCs that recorded substantial depreciation expenses
for the year, almost 60 percent or P16.95 billion was reported by NPC. Substantial amount was
also recorded by the following: HDMF – P1.91 billion, MWSS – P1.62 billion, LBP – P1.49
billion and MIAA – P0.92 billion.
50
3.2.6 Bad Debts Expenses – P11.68 billion
Bad Debts Expenses recorded by GOCCs during the year amounted to P11.68 billion.
There was an increase of P1.13 billion or 10.74 percent compared to last year’s P10.54 billion.
Of this amount, P11.20 billion or 95.93 percent was reported by the GOCCs shown in Table IV43.
GOCC
PDIC
NPC
GSIS-AF
TLRC
QUEDANCOR
NIA
LWUA
NDC
PPA
PCIC
Table IV-43 GOCCs that Recorded Significant
Amount of Bad Debts Expenses
(in million pesos)
Increase (Decrease)
2006
2005
Amount
Percent
9,520.82
8,795.93
724.89
8.24
799.85
702.53
97.33
13.85
175.04
100.91
74.14
73.47
150.48
144.15
6.32
4.39
119.99
70.08
49.91
71.21
108.69
9.35
99.34
1062.29
105.61
115.73
(10.12)
(8.74)
94.72
94.72
73.94
14.62
59.32
405.71
51.02
22.92
28.10
122.62
PDIC continued to be the number one GOCC with the biggest Bad Debts Expenses due
to the provision of insurance and financial assistance losses. NPC’s Bad Debts Expense which
increased by 13.85 percent are specifically identified uncollectible accounts for the year.
3.2.7 Taxes, Insurance Premiums and Other Fees – P9.99 billion
Expenses for Taxes, Insurance Premiums and Other Fees reached P9.99 billion, an
increase of P0.62 billion or 6.65 percent over last year’s P9.37 billion. This expense item is
2.30 percent of the total MOOE and ranked seventh among the highest expense this fiscal year.
GSIS-AF incurred the highest expense for this category at P2.91 billion or 29.10 percent,
mostly for insurance expenses. LBP came second with P1.52 billion or 15.24 percent incurred
for percentage and income taxes and documentary stamp taxes. Income taxes include the
corporate income tax and final withholding tax on gross interest income from government
securities, deposits and other deposit substitutes.
The other GOCCs which incurred substantial amounts of taxes, insurance and other fees
are: BSP – P1.25 billion or 12.49 percent, NPC – P1.12 billion or 11.23 percent and PAGCOR
– P1.03 billion or 10.27 percent.
3.2.8 Interest on Conventional Deposits – P8.84 billion
Expenses for interest on conventional deposits
billion or 12.17 percent compared to last year’s P7.88 billion.
increased
by
P0.96
Interest on Conventional Deposits was incurred by the three government banks
associated with their banking operations. LBP incurred the biggest amount with P6.54 billion
or 73.93 percent of the total, while DBP incurred P2.28 billion accounting for 25.84 percent
and AIIBP’s was P0.02 billion or 0.23 percent
51
3.2.9
Utility Expenses – P9.65 billion
Utility Expenses increased this fiscal year by P1.91 billion or 24.74 percent from last
year’s P7.74 billion
PEZA incurred P5.62 billion or 58.22 percent of the total utility expenses, for its
operations and managing four public economic zones, special economic zones and four
PEZA-Customs Documentation Units.
The other GOCCs with substantial utility expenses with the corresponding percentages
to the total are the following: WDs – P0.93 billion or 9.67 percent, PAGCOR – P0.44 billion
or 4.51 percent, MIAA – P0.39 billion or 4.03 percent, BSP – P0.21 billion or 2.22 percent,
SSS – P0.15 billion or 1.51 percent, PTA – P0.14 billion or 1.47 percent, PPA and GSIS-SIF,
each with – P0.14 billion or 1.44 percent and PFDA with P0.10 billion or 1.03 percent.. Total
utility expenses of these agencies including PEZA amounted to P8.26 billion or 85.54 percent.
The remaining 14.46 percent was reported by the remaining GOCCs.
3.2.10 Confidential, Intelligence, Extraordinary and Miscellaneous Expenses – P7.09 billion
This group of expenses registered an increase of P0.07 billion or 0.98 percent from
The components are as follows:
P7.02 billion last year to P7.09 billion this year.
Miscellaneous Expenses – P6.63 billion or 93.46 percent, Extraordinary Expenses – P0.42
billion or 5.96 percent, Confidential Expenses – P0.04 billion or 0.56 percent and a negligible
amount of P1.6 million as Intelligence Expenses representing 0.02 percent
GOCCs
LBP
NPC
MIAA
PAGCOR
HDMF
PCSO
PPA
BSP
WDs
GSIS-SIF
Table IV-44 GOCCs with Significant Confidential,
Intelligence, Extraordinary and Miscellaneous Expenses
(in million pesos)
Increase (Decrease)
2006
2005
Amount
Percent
4,153.38
3,459.94
693.44
20.04
896.75
291.05
605.70
208.11
351.34
782.58
(431.24)
(55.10)
322.73
297.78
24.95
8.38
281.71
232.26
49.44
21.29
215.31
86.85
128.45
147.90
198.46
138.93
59.54
42.85
171.59
898.43
(726.84)
(80.90)
100.28
100.28
91.53
52.86
38.66
73.14
As shown in Table IV-44, LBP reported P4.15 billion or 58.58 percent of the total P7.09
billion. NPC followed with P0.90 billion posting a huge increase of P0.61 billion or 208.11
percent. This consists mainly of expenses for their decommissioned plants. The BSP reported a
substantial decrease in the amount of P0.73 billion or 80.90 percent, from P0.90 billion in the
previous year, which were incurred as other foreign currency expenses.
3.3
Financial Expenses – P60.20 billion
A big portion of the financial expenses was for Interests on Borrowings comprising P55.78
billion or 92.66 percent. The components include: Bank Charges – P2.23 billion or 3.71 percent,
Other Financial Charges – P1.97 billion or 3.27 percent and Documentary Stamps Expense – P0.21
billion or 0.35 percent, the remaining 0.01 percent pertains to Commitment Fees and Debt Service
Subsidy to GOCCs with a combined amount of P4.32 million.
52
GOCC
NPC
BSP
DBP
NFA
PDIC
HDMF
LBP
CB-BOL
HGC
WDs
Table IV-45 Top Ten GOCCs that Incurred
Significant Financial Expenses
(in million pesos)
Increase (Decrease)
2006
2005
Amount
Percent
22,576.53
22,340.87
235.66
1.05
9,551.72
12,415.06
(2,863.35)
(23.06)
5,896.88
5,734.78
162.10
2.83
4,688.81
3,779.52
909.29
24.06
2,710.79
2,912.79
(202.00)
(6.93)
1,796.69
1,946.89
(150.20)
(7.72)
1,337.08
1,310.93
26.16
2.00
1,444.14
2,409.29
(965.15)
(40.06)
939.61
863.78
75.82
8.78
838.61
838.61
-
The top ten GOCCs with substantial financial expenses are shown in Table IV-45. The total of
the ten GOCCs listed above is P51.78 billion representing 86.01 percent of the total financial expenses.
NPC’s expense of P22.58 billion is equivalent to 37.50 percent of the total.
4.0
Share of the National Government on the Income of GOCCs - P12.60 billion
For fiscal year 2006, the share of the National Government on the income of GOCCs amounted to
P12.60 billion showing a very minimal growth of P0.07 billion over last year’s P12.53 billion. This was
contributed by PAGCOR – P11.98 billion and MIAA – P0.62 billion. PAGCOR’s remittance to the NG is
consonant with the provision of Presidential Decree No. 1869 dated July 11, 1983 which requires the
corporation to remit 50 percent of its aggregate earnings; while MIAA is required to remit 20 percent of its
operating income based on actual cash collection net of income from utilities and terminal collections,
pursuant to Section 3 of Executive Order No. 298 dated July 26, 1987.
53
STATEMENT OF CASH FLOWS
The Consolidated Statement of Cash Flows of GOCCs was prepared using the Direct Method
approach. It provides information on the cash receipts and payments made on their Operating, Investing
and Financing activities during the year.
Total cash inflows for the year totaled P1,622.32 billion, P8.68 billion lesser than last year’s
P1,630.99 billion, broken down as follows: Operating – P738.31 billion or 45.51 percent, Investing –
P519.55 billion or 32.02 percent, and Financing – P364.46 billion or 22.47 percent. On the other hand, total
cash outflows reached P1,400.80 billion, composed of Operating – P577.06 billion, Investing – P405.73
billion and Financing – P418.01 billion. Compared to previous year’s P1,525.87 billion, a decrease of
P125.07 billion or 8.20 percent was registered.
Table IV-46 Summary of Statement of Cash Flows of the GOCCs
(in million pesos)
Increase (Decrease)
Particulars
2006
2005
Amount
Percent
(0.53)
Cash Inflows
(8,676.83)
1,622,315.27 1,630,992.10
(11.22)
738,306.78
831,580.68
(93,273.90)
Operating
2.57
519,550.16
506,533.07
13,017.10
Investing
24.44
364,458.32
292,878.35
71,579.97
Financing
(8.20)
Less: Cash Outflows
1,400,798.41 1,525,867.44 (125,069.03)
577,063.15
655,009.81
(77,946.66)
(11.90)
Operating
405,729.67
486,703.73
(80,974.06)
(16.64)
Investing
418,005.59
384,153.89
33,851.70
8.81
Financing
110.72
Net Cash Provided by (Used In)
221,516.86
105,124.66
116,392.20
176,570.86
161,243.63
(15,327.23)
(8.68)
Operating
19,829.33
113,820.50
93,991.16
474.00
Investing
(91,275.54)
(53,547.27)
37,728.27
(41.33)
Financing
Effects of Exchange Rate Changes
(45,730.60)
(25,098.14)
20,632.46
(45.12)
On Cash and Cash Equivalents
Add: Cash and Cash Equivalents,
576,167.50
637,184.79
61,017.29
10.59
Beginning of Year
Cash and Cash Equivalents,
31.16
End of Year
833,603.51
635,561.55
198,041.95
Difference between totals and sum of components is due to rounding off.
Table IV-46 summarizes the Statement of Cash Flows of GOCCs.
For fiscal year under review, the Consolidated Statement of Cash Flows showed P221.52 billion net
cash provided by the three activities, higher by P116.39 billion than in 2005.
Chart IV-8 Net Cash Provided by Operating, Investing and
Financing Activities
(in billion pesos)
200.00
150.00
100.00
176.57
161.24
113.82
50.00
19.83
0.00
(53.55)
-50.00
(91.27)
-100.00
2006
2005
Investing
Operating
54
Financing
Chart IV-8 shows the comparative consolidated net cash provided by Operating, Investing and
Financing Activities of GOCCs.
Operating Activities provided net cash of P161.24 billion, 8.68 percent lesser than last year’s
P176.57 billion. On the other hand, net cash provided by Investing Activities increased by P93.99 billion
or 474 percent which is mainly due to net increase in local currency liabilities of BSP.
1.0 Cash Flows from Operating Activities
Total cash inflows from Operating Activities registered P93.27 billion reduction as compared to
last year’s P831.58 billion. Total cash outflows also went down by P77.95 billion, from P655.01
billion in 2005 to P577.06 billion.
1.1 Cash Inflows – P 738.31 billion
Cash inflows from Operating Activities were derived mostly from collections of operating
and other income, receivables, proceeds of loans, refunds of deposits and entrusted funds.
Table IV-47 Top Ten GOCCs with Substantial Cash Inflows
Under Operating Activities
(in million pesos)
Percentage
GOCC
Amount
Distribution
NPC
186,567.90
25.27
GSIS-SIF
70,295.83
9.52
SSS
64,989.23
8.80
LBP
59,678.60
8.08
BSP
56,072.06
7.59
DBP
52,967.60
7.17
PNOC
34,233.04
4.64
NFA
28,642.89
3.88
PAGCOR
25,405.47
3.44
PHIC
22,592.97
3.06
Table IV-47 shows the top GOCCs with substantial Cash Inflows under Operating
Activities.
NPC contributed the biggest inflows of P186.57 billion representing collections of income
from power consumers – P184.18 billion, interest and dividend received – P1.15 billion and
collections from receivables – P1.16 billion and refund of deposits – P0.08 billion.
GSIS-SIF, SSS and PHIC accounted for P70.30 billion, P64.99 billion and P22.59 billion,
respectively, which were derived from collections of members’ insurance premiums and/or
contributions. LBP’s and DBP’s major sources of inflows were deposits from clients and interest
income from loans granted to various borrowers.
1.2 Cash Outflows –
P577.06 billion
Cash outflows from Operating Activities include, among others, cash payments of
operating expenses, general and administrative expenses, increase in financial assets or securities
held for trading and payments to members and beneficiaries of insurance/hospitalization claims.
The total outflows registered an amount of P577.06 billion or 41.20 percent of the total cash
outflows for the year.
55
Table IV-48 Top Ten GOCCs with Huge Cash Outflows
under Operating Activities
(in million pesos)
Percentage
GOCC
Amount
Distribution
NPC
110,186.95
19.09
SSS
57,826.02
10.02
LBP
47,718.79
8.27
BSP
44,713.50
7.75
DBP
41,400.83
7.17
NFA
41,273.35
7.15
GSIS-SIF
40,011.40
6.93
PAGCOR
23,674.01
4.10
PNOC
20,474.88
3.55
PHIC
17,482.08
3.03
The top 10 corporations with huge cash outflows under Operating Activities are shown in
Table IV-48.
The NPC, ranked as number one, reported a significant cash outflows amounting to
P110.19 billion for operating expenses and cost of purchased power while SSS, GSIS-SIF and
PHIC registered a combined amount of P115.32 billion for payment of insurance and
hospitalization claims and benefits of members and beneficiaries. LBP, BSP and DBP reported a
total of P133.83 billion which was used for investments in financial assets and payment of
interests.
2.0 Cash Flows from Investing Activities
During the year, the reported cash inflows from Investing Activities amounted to P519.55
billion, recording an increase of P13.02 billion or 2.57 percent compared to previous year while the
total cash outflows reached P405.73 billion, 16.64 percent lesser from last year’s figure of P486.70
billion. These resulted to net cash used in these activities of P113.82 billion registering a significant
increment of P93.99 billion.
2.1 Cash Inflows - P519.55 billion
Cash inflows from Investing Activities were sourced from proceeds from sale of
securities, maturing investments in financial securities and other transactions which affect
investments in non-current assets. Cash inflows from these activities reached P519.55 billion or
32.03 percent of the total inflows.
Table IV-49 Top GOCCs with Substantial Cash Inflows
(in million pesos)
GOCC
Amount
171,969.76
110,838.95
104,634.67
38,283.32
23,860.28
17,816.05
15,995.58
11,120.39
BSP
GSIS-SIF
HDMF
PDIC
LBP
GSIS - AF
PHIC
PNOC
56
Percentage
Distribution
33.10
21.33
20.14
7.37
4.59
3.43
3.08
2.14
Table IV-49 shows the top GOCCs with substantial cash inflows under Investing
Activities.
Out of the total cash inflows, BSP recorded 33.10 percent or P171.97 billion, derived
mainly from the collection of the required reserves from banks and non-banks with quasi-banking
functions – P105.86 billion, sale of marketable securities – P40.73 billion, short-term deposits –
P21.48 billion and sale of other foreign currency assets – P3.89 billion.
GSIS-SIF reported P110.84 billion inflows pertaining mostly to receipt on loan
repayments – P39.46 billion and proceeds from sale/redemption/maturity of investments – P71.35
billion.
HDMF’s inflows of P104.63 billion represents receipt on loan repayments – P40.69
billion and proceeds from investment maturities – P63.94 billion while PDIC’s P38.28 billion was
the proceeds from matured investments. LBP’s inflows of P23.86 billion came from proceeds
from matured investments – P21.76 billion, disposal of property and equipment and investment
property – P1.15 billion and cash dividends received and gain from investment securities – P0.95
billion. The sources of inflows of GSIS-AF totaling P17.82 billion were proceeds from
sale/redemption/maturity of investments – P16.91 billion and receipt on policy loan repayments –
P0.91 billion. PHIC received P16.00 billion from matured bonds and interest on investments..
2.2 Cash Outflows - P405.73 billion
Cash outflows from Investing Activities registered a decrease of P80.97 billion or 16.64
percent, from P486.70 billion in 2005 to P405.73 billion. The biggest component of cash outflow
from these activities were acquisition/purchase of investments – P260.10 billion or 64.26 percent
of the total and release of loans and advances – P87.82 billion or 21.65 percent. As to
corporations, the top five corporations with substantial outflows were the following: GSIS-SIF –
P116.93 billion, HDMF – P98.84 billion, PDIC – P49.38 billion, GSIS AF – P22.80 billion and
BSP – P21.77 billion.
3.0 Cash Flows from Financing Activities
For fiscal year 2006, Financing Activities accounted for total cash inflows of P364.46 billion
and outflows of P418.01 billion resulting to net cash balance of negative P53.55 billion.
The PDIC registered the biggest positive net cash of P14.64 billion having inflows of P16.15
billion from proceeds of borrowings and assessment collection and outflows of P1.51 billion for
payments of loans and dividend to BSP and NG, respectively.
3.1 Cash Inflows - P364.46 billion
Cash Inflows from Financing Activities reached P364.46 billion sourced from the issuance of
circulating currency, proceeds from borrowings, issuance of stocks and flotation of bonds.
Table IV-50 GOCCs with Huge Cash Inflows
(in million pesos)
Percentage
GOCC
Amount
Distribution
BSP
213,333.71
58.53
NPC
35,729.06
9.80
NFA
17,246.74
4.73
PDIC
16,150.74
4.43
LBP
16,030.52
4.40
HDMF
13,745.29
3.77
PNOC
13,288.88
3.65
57
Table IV-50 shows the GOCCs with huge Cash Inflows under Financing Activities.
BSP topped the list of GOCCs with significant inflows of P213.33 billion or 58.53 percent
of the total which came from the issuance of circulating currency – P206.51 billion and recoveries
from prior period expenses/items written-off – P6.82 billion. Following in the second slot is the
NPC with P35.73 billion or 9.80 percent of which P34.91 billion was proceeds from bond
floatation. NFA’s collections of P17.25 billion were proceeds from borrowings while LBP’s
P16.03 billion were receipts from other charges to capital P8.68 billion and unsecured
subordinated debt – P7.35 billion.
3.2 Cash Outflows – P418.01 billion
Cash outflows of P418.01 billion consist mainly of withdrawal of circulating currency –
P158.58 billion, payment of loans and bonds payable – P146.30 billion, payment of interest,
commitment fees and other financial charges – P20.72 billion and payments of dividends to NG P12.77 billion. BSP registered the biggest financing outflow of P258.31 billion or 61.80 percent
for withdrawal of circulating currency and payment for loans and bonds payable. Other GOCCs
with substantial outflows are as follows: NPC – P92.36 billion, PNOC – P19.80 billion, HGC –
P8.96 billion, HDMF – P8.03 billion, LBP – P5.24 billion and NFA – P4.45 billion.
4.0 Effects of Foreign Exchange Rate Fluctuations – ( P25.10 billion)
The Effects of Foreign Exchange Rate fluctuations on cash balances are included in the cash flows
of GOCCs with foreign currency transactions amounting to a negative balance of P25.10 billion. The
BSP contributed 96.97 percent or negative P24.34 billion.
5.0 Reconciliation of Cash and Cash Equivalents
For fiscal year 2006, the Consolidated Statement of Cash Flows showed total cash and cash
equivalents of P833.60 billion while the Balance Sheet reflected P834.54 billion registering a
difference of P0.94 billion
Table IV-51 Reconciliation of Cash and Cash Equivalents
(in million pesos)
Particulars
Amount
Per Consolidated Balance Sheet
Cash
772,577.04
Cash Equivalents
Investment in Treasury Bills
14,613.44
Other Short-Term Investments
15,333.02
Other Investments
30,447.19
Marketable Securities
1,328.87
Due from NGAs
157.80
Investment in Securities
82.58
61,962.90
Total
834,539.94
Per Consolidated Statement of Cash
Flows
833,603.51
Difference
936.43
Table IV-51 shows the Reconciliation of Cash and Cash Equivalents between the
Consolidated Balance Sheet and the Consolidated Statement of Cash Flows.
The difference of P0.94 billion was due to the non submission of the Statement of Cash
Flows of some GOCCs.
58
Table IV- 52 GOCCs Which Did Not Submit
Statement of Cash Flows
(in million pesos)
Cash Balance
GOCC
Per Balance Sheet
MGC
393.36
PNCC
231.40
GSIS-FB
59.86
FCIE
8.51
PCEC
0.82
NSLC
0.16
NTFC
0.15
NSC
0.12
TABASCO
0.12
LISI
0.09
NPCTI
0.04
Water Districts (12 without Statement
Flow and 4 without Balance Sheet)
241.80
Total
936.43
Difference between totals and sum of components is due to rounding off.
Table IV-52 shows the list of GOCCs which did not submit Statement of Cash Flows.
59
List of Acronyms
LIST OF ACRONYMS
Government-Owned and/or Controlled Corporations
Al-Amanah Islamic Investment Bank of the Philippines
Alabang-Sto. Tomas Development, Inc.
AFP Retirement and Separation Benefits System
Bangko Sentral ng Pilipinas
Bases Conversion Development Authority
Bataan Technology Park, Incorporated
Batangas Land Company, Incorporated
BCDA Management and Holdings, Incorporated
Bukidnon Forests, Incorporated
Cagayan Economic Zone Authority
Central Bank - Board of Liquidators
Cebu Port Authority
Center for International Trade Expositions and Missions
Clark Development Corporation
Cottage Industry Technology Center
Cultural Center of the Philippines
DBP Data Center, Incorporated
DBP Management Corporation
Development Academy of the Philippines
Development Bank of the Philippines
Employees' Compensation Commission
First Cavite Industrial Estate, Incorporated
First Centennial Clark Corporation
Food Terminal, Incorporated
Freeport Service Corporation
Garments and Textile Export Board
Government Service Insurance System
GSIS Administered Fund
GSIS Family Bank
GSIS Mutual Fund, Incorporated
GSIS Social Insurance Fund
GY Real Estate, Incorporated
Home Development Mutual Fund
Home Guaranty Corporation
Human Settlements Development Corporation
Industrial Guarantee and Loan Fund
John Hay Management Corporation
Kamayan Realty Corporation
KKK-PCA (Livelihood Corporation)
Laguna Lake Development Authority
Land Bank Countryside Development Foundation, Incorporated
Land Bank of the Philippines
Land Bank Realty Development Corporation
LBP Insurance Brokerage, Incorporated
LBP Leasing Corporation
Light Rail Transit Authority
Local Water Utilities Administration
Lung Center of the Philippines
Luzon Integrated Services, Incorporated
Mactan-Cebu International Airport Authority
60
Acronym
AAIIBP
ASTDI
AFP-RSBS
BSP
BCDA
BTPI
BLCI
BCDAMHI
BFI
CEZA
CB-BOL
CPA
CITEM
CDC
CITC
CCP
DDCI
DBP-MC
DAP
DBP
ECC
FCIEI
FCCC
FTI
FSC
GTEB
GSIS
GSIS-AF
GSIS-FB
GSIS-MFI
GSIS-SIF
GYREI
HDMF
HGC
HSDC
IGLF
JHMC
KRC
KKK-PCA
LLDA
LBCDFI
LBP
LBRDC
LIBI
LBPLC
LRTA
LWUA
LCP
LINSI
MCIAA
LIST OF ACRONYMS
Government-Owned and/or Controlled Corporations
Manila Gas Corporation
Manila International Airport Authority
Marawi Resort Hotel, Incorporated
Masaganang Sakahan, Incorporated
Matrix Realty Development Corporation
Meat Packing Corporation of the Philippines
Metropolitan Waterworks and Sewerage System
National Agri-Business Corporation
National Dairy Authority
National Development Company
NDC Public Infrastructure Corporation
NDC Maritime Equity Corporation
National Electrification Administration
National Food Authority
National Home Mortgage Finance Corporation
National Housing Authority
National Irrigation Administration
National Kidney and Transplant Institute
National Power Corporation
National Precision Cutting Tools, Incorporated
National Slipways Corporation
National Stevedoring and Lighterage Corporation
National Tobacco Administration
National Trucking and Forwarding Corporation
Natural Resources Development Corporation
Nayong Pilipino Foundation, Incorporated
NIA Consult, Incorporated
North Luzon Railways Corporation
Northern Foods Corporation
Occupational Safety and Health Center
Overseas Workers Welfare Administration
Partido Development Administration
PEA Tollway Corporation
People's Credit and Finance Corporation
People's Television Network, Incorporated
Philippine Aerospace Development Corporation
Philippine Agricultural Development and Commercial Corporation
Philippine Amusement and Gaming Corporation
Philippine Centennial Expo '98 Corporation
Philippine Center for Economic Development
Philippine Charity Sweepstakes Office
Philippine Children's Medical Center
Philippine Coconut Authority
Philippine Commission on the Promotion and Development of Sports Scuba Diving
Philippine Convention and Visitors Corporation
Philippine Crop Insurance Corporation
Philippine Deposit Insurance Corporation
Philippine Economic Zone Authority
Philippine Fisheries Development Authority
Philippine Forest Corporation
Philippine Genetics, Incorporated
61
Acronym
MGC
MIAA
MRHI
MSI
MRDC
MPCP
MWSS
NABCOR
NDA
NDC
NDC-PIC
NDC-MEC
NEA
NFA
NHMFC
NHA
NIA
NKTI
NPC
NPCTI
NSC
NSLC
NTA
NTFC
NRDC
NPFI
NIACon
NLRC
NFC
OSHC
OWWA
PDA
PEATC
PCFC
PTNI
PADC
PADCC
PAGCOR
PCEC
PCED
PCSO
PCMC
PCA
PCPDSSD
PCVC
PCIC
PDIC
PEZA
PFDA
PFC
PGI
LIST OF ACRONYMS
Government-Owned and/or Controlled Corporations
Philippine Health Insurance Corporation
Philippine Heart Center
Philippine Institute for Development Studies
Philippine Institute of Traditional and Alternative Health Care
Philippine International Trading Corporation
PITC-Pharma, Incorporated
Philippine Mining Development Corporation (formerly NRMDC)
Philippine National Oil Company
PNOC Coal Corporation
PNOC Development and Management Corporation
PNOC Energy Development Corporation
PNOC Exploration Corporation
PNOC Malampaya Production Corporation
PNOC Petrochecmical Development Corporation
PNOC Shipping and Transport Corporation
Philippine National Construction Corporation
PNCC Skyway Corporation
PNCC Traffic Control Products Corporation
Philippine National Railways
Philippine Ports Authority
Philippine Postal Corporation
Philippine Postal Savings Bank
Philippine Reclamation Authority (formerly PEA)
Philippine Retirement Authority
Philippine Rice Research Institute
Philippine Sugar Corporation
Philippine Tourism Authority
PHIVIDEC Industrial Authority
Social Housing Finance Corporation
Pinagkaisa Realty Corporation
Poro Point Management Corporation
Power Sector Assets and Liabilities Management Corporation
Quedan and Rural Credit Guarantee Corporation
Resources and Investments Corporate House, Incorporated
Retirement and Separation Benefits System Enterprise, Incorporated
Retirement and Separation Benefits System Land, Incorporated
RPN - 9
Small Business Guarantee and Finance Corporation
Social Security System
Southern Utility Management and Services, Incorporated
Subic Bay Metropolitan Authority
Sugar Regulatory Administration
Tacoma Bay Shipping Company, Incorporated
Technology and Livelihood Resource Center
Trade and Investment Development Corporation of the Philippines
Water District
Zamboanga City Special Economic Zone Authority
ZNAC Rubber Estate Corporation
62
Acronym
PHIC
PHC
PIDS
PITAHC
PITC
PPI
PMDC
PNOC
PNOC-CC
PNOC-DMC
PNOC-EDC
PNOC-EC
PNOC-MPC
PNOC-PDC
PNOC-STC
PNCC
PNCC-SC
PNCC-TCPC
PNR
PPA
PPC
PPSB
PRA
PRA
PRRI
PHILSUCOR
PTA
PIA
SHFC
PRC
PPMC
PSALM Corp
QUEDANCOR
RICHI
RSBSEI
RSBSLI
RPN - 9
SBGFC
SSS
SUMSI
SBMA
SRA
TBSCI
TLRC
TIDCORP
WD
ZCSEZA
ZREC
COMMISSION ON AUDIT
KEY OFFICIALS
and
GOVERNMENT ACCOUNTANCY
and FINANCIAL MANAGEMENT
INFORMATION SYSTEM
(GAFMIS) SECTOR
OFFICIALS and STAFF
* As of submission date
COMMISSION ON AUDIT
KEY OFFICIALS
COMMISSION PROPER
GUILLERMO N. CARAGUE
Chairman
JUANITO G. ESPINO, JR.
Commissioner
REYNALDO A. VILLAR
Commissioner
Assistant Commissioners
LOURDES M. CASTILLO
GLORIA S. CORNEJO
ARCADIO B. CUENCO, JR.
LOURDES B. DIMAPILIS
EMMA M. ESPINA
JAIME P. NARANJO
CARMELA S. PEREZ, DBA
ROGELIO V. URBANOZO
ELIZABETH S. ZOSA
KEY OFFICIALS
CORPORATE GOVERNMENT SECTOR
JAIME P. NARANJO
Assistant Commissioner
RODULFO J. ARIESGA
Director IV
Cluster I – Financial A
JOSE R. ROCHA, Jr.
Director IV
Cluster II – Financial B
ROLAND A. REY
Director IV
Cluster III – Public Utilities
MA. CRISTINA D. DIMAGIBA
Director IV
Cluster IV – Industrial and Area
Development and Regulatory
TITO S. NABUA
Director IV
Cluster V – Agricultural, Trading
and Promotional
ROSEMARIE L. LERIO
Director IV
Cluster VI – Social, Cultural and
Scientific
KEY OFFICIALS
CORPORATE GOVERNMENT SECTOR
ANGELINA B. VILLANUEVA
Director III
Cluster I – Financial A
TERESITA B. MENDOZA
Director III
Cluster II – Financial B
LITA E. DIEZ
Director III
Cluster III – Public Utilities
AIDA MARIA A. TALAVERA
Director III
Cluster V – Agricultural, Trading and
Promotional
DIVINIA M. ALAGON
Director III
Cluster VI – Social, Cultural and Scientific
GOVERNMENT ACCOUNTANCY and FINANCIAL
MANAGEMENT INFORMATION SYSTEM SECTOR
OFFICE OF THE ASSISTANT COMMISSIONER
CARMELA S. PEREZ, DBA
Assistant Commissioner
Elizabeth D. Ducay
Lolita N. Silva
- State Auditor I
- Utility Worker II
GOVERNMENT ACCOUNTANCY
OFFICE OF THE DIRECTOR
MARIETTA M. LORENZO
Director IV
CECILIA B. CAMON
Director III
Lualhati F. Azuero
Dinah B. Pagao
Teresita P. Reyes
Editha C. Ramirez
Maria C. Lainez
Rufa L. Gunabe
Roberto L. Palita, Jr.
Salvador Dayna, Sr.
CORPORATE I
Estela C. dela Paz - State Auditor V
Salome L. Llaguno - State Auditor IV
Susana M. de Guzman - State Auditor II
Angelita C. Lomentigar - State Auditor II
Joven L. Recto - State Auditing Examiner I
NATIONAL I
Corazon A. Saldivar - State Auditor V
Fidela S. Gonzaga - State Auditor IV
Agustina Q. Baseo - State Auditor IV
Amelia F. Guevarra - State Auditor III
Ma. Lourdes D. Marayan - State Auditor II
Zenaida P. Balmes - State Auditor II
Hazel M. Sarmiento - State Auditor I
- State Auditor IV
- Admin. Off. III
- State Auditor I
- Secretary II
- Process Server
- Process Server
- Messenger
- Chauffer I
CORPORATE II
Juanita B. Abe - State Auditor V
Thelma F. Panganiban - State Auditor IV
Annabella P. Gabiran - State Auditor III
Aurea J. Elmido - State Auditor II
Guillermo S. Malabanan - State Auditor II
NATIONAL II
Emelita V. Cayetano - State Auditor IV
(Officer-in-Charge)
Marilyn C. Bibat - State Auditor IV
Rosa Maria V. Santiago - State Auditor III
Mercedes D. Empleo - State Auditor II
Josefino O. Lainez - State Auditor II
Ma. Belen L. Estuaria - State Auditor II
Cristina C. Gungon - State Auditor I
LOCAL I
Elena B. Monteza - State Auditor V
Esperanza V. Oreas - State Auditor IV
Lydia L. Asiado - State Auditor III
Imelda G. Celso - State Auditor III
Elmer M. Grande - State Auditor III
Lorelei L. Datu - State Auditor II
Aida A. Donasco - State Auditor II
LOCAL II
Editha M. Ramirez - State Auditor V
Anicia H. Guillermo - State Auditor IV
Susan C. Vega - State Auditor II
Avelina G. Marquez - State Auditor II
Maribel G. Cablayan - State Auditor I
Narcisa S. dela Rosa - State Auditor I
ACCOUNTING RESEARCH
Annabelle A. Puserio - State Auditor IV
(Officer-in-Charge)
Rudy M. Villareña - State Auditor IV
Carmen Z. Zafe - State Auditor IV
Romeo C. Cruz - State Auditor IV
Ma. Francisca C. Medialdea - State Auditor II
Jorgen Z. Fulleros - State Auditor II
Ma. Corazon D. Eguia - State Auditor I
Mary Beverly C. Flores - Clerk III
FINANCIAL MANAGEMENT INFORMATION SYSTEM
ROSICAR E. ESCOBER
Director IV
MARLON R. MARQUINA
Director III
Marlon M. Lim
Lolita D. Layugan
Vilma M. Sarino
Dionelita R. E. Cabeltis
Rodrigo L. Aro
Ma. Fe B. Lim
Cherry M. Doromal
Ohnie Ezra E. Palencia
- Executive Assistant IV
- State Auditor III
- State Auditor III
- Executive Assistant III
- Information Tech Off I
- Computer Programmer III
- Private Secretary II
- Private Secretary II
REGIONAL GOVERNMENT ACCOUNTANCY and FMIS *
*All Acting Heads
Ma. Leonora G. Dacumos
Carmencita D. Tong-Mallillin
Hector L Cortes
Rowena C. Pedroche
Carlos R. Garcia
Alexander R. Adoremos
Rey P. Cababasay
Victoria C. Quejada
Anna Marie J. Bag-ao
Armi T.C. Kiap
Luzminda N. Canios
Fides Edeliza M. Doles
Reynaldo T. Agan
Matthew Rey M. Magno
Navel U. Rangiris
- SA II, Region I
- SA V, Region II
- SA IV, CAR
- SA IV, Region III
- SA II, Region IV
- SA IV, Region V
- AO V, Region VI
- SA V, Region VII
- ITS IV, Region VIII
- SA III, Region IX
- RA, Region X
- SA III, Region XI
- Chief TAS, Region XII
- SA III, Region XIII
- SA II, ARMM