1
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
Note 1 – Basis of Reporting

The Financial Statements were prepared in accordance
with the New Government Accounting System (NGAS)and
the Unified Account Code Structure (UACS).
Note 2 – Significant Accounting Policies

Property, Plant and Equipment are carried at cost less
accumulated depreciation.

The Straight Line Method of depreciation is used in
depreciating the Property, Plant and Equipment with
estimated useful lives ranging from five to thirty
years. A residual value computed at ten (10%) percent
of the cost of the asset is set and the depreciation
starts on the month after the date of delivery.

Accounts Payable are recognized and recorded in
the books of accounts only upon delivery of the
goods/inventory/other assets or rendition of services
to the agency.

Accounts were reclassified to conform with the new
Chart of Accounts prescribed under the New Government
Accounting System and Unified Account Code Structure
(UACS).

Fundamental errors and adjustments of prior years are
corrected by using Accumulated Surplus (Deficit)
account.
Errors affecting current year’s operations
are charged to the current year’s accounts.
Note 3 – Cash in Bank-Local Currency, Current Account
(1010202000)

Included in the cash accounts as of June 30, 2014 are
unexpended
but
obligated
Maintenance
and
Other
Operating Expenses (MOOE) and Special/Trust Funds.
Note 4 – Cash-Agency/Agency Deposit, Regular (1010401000)

This account of Zamboanga del Norte NHS consists of
Other Service Income derived from—
1% service fee of PLI’s
Donations/Lodging
Lost Books
Total
P 48,753.31
5,660.00
10,913.65
----------P 65,326.96
2
Note 5 – Advances to Officers and Employees (1990104000)
This account consists of unliquidated cash advances
for travel and download of school MOOE Elementary,
Secondary and Special Projects:
June 30, 2014
Dec. 31, 2013
Advances to Officers and
P 5,438,832.34 P 6,397,642.04
Employees
Less: Allow. Doubtful Accts
Net Amount
P 5,438,832.34 P 6,397,642.04

Note 6 – Property, Plant and Equipment
This account consist of:
Dec. 31, 2013
Land
P 215,271,146.14
Office Buildings
1,289,080.00
School Buildings
235,410,939.57
Other Structures
6,165,687.70
Office Equipment
1,805,750.00
Furniture and Fixtures 10,548,689.33
IT Equip. & Software
11,412,089.12
Machineries
538,000.00
Library Books
1,118,031.00
Agricultural,Fishery &
Forest Equipment
2,620,141.00
Communication Equipment
70,650.00
Sports Equipment
7,088.00
Other Machineries & Equip 599,500.00
Motor Vehicle
705,000.00
Other PPE
173,934.00
Total
487,735,725.86
Less Accumulated Dep’n(88,193,349.00)
Net PPE
399,542,376.86

Dec. 31, 2013
P 215,271,146.14
1,289,080.00
235,410,939.57
6,165,687.70
1,805,750.00
10,548,689.33
11,412,089.12
538,000.00
1,118,031.00
2,620,141.00
70,650.00
7,088.00
599,500.00
705,000.00
173,934.00
487,735,725.86
(88,193,349.00)
399,542,376.86
Property, Plant and Equipment are carried at cost less
accumulated depreciation. Books of accounts were adjusted
in reconciliation with actual physical count conducted.
Regular maintenance, repair and minor replacements are
charged against Maintenance and Other Operating Expenses
(MOOE) as these were incurred.
Note 7 – Subsidy from Other National Government Agencies
(4030102000)

This account consists of funding from Philippine
Gaming and Amusement Corporation(PAGCOR)with balance
of P 612,037.49.
Note 8 – Subsidy from National Government

Pursuant to the Direct Release System which started
last August 25, 2004, Notices of Cash Allocation (NCA)
for
the
calendar
year
2013
amounting
to
P 453,484,515.16 were received from the Department of
Budget and Management (DBM), Regional Office, Zamboanga
City for payment of operating expenses and liabilities.
However, the amount of P 5,553,757.35 was reverted
(lapsing) and the amount of P 55,479.75 was remitted
(refunds)
to
the
National
Treasury
as
of
June 30, 2014.