NOTES To FS FUND 101 CY 2023

Annex F
Republic of the Philippines

Department of Environment and Natural Resources
PROVINCIAL ENVIRONMENT AND NATURAL RESOURCES OFFICE
RXI-4, Digos City
Province of Davao del Sur
Financial statements for the year ended December 31, 2023
Notes to Financial Statements IPSAS 1

FUND 101
For the year period December 31, 2023
1. General Information/Agency Profile
The financial statements of PENR Office RXI-4 were authorized for issue on IPSAS
January 20, 2024, as shown in the Statement of Management Responsibility for 1.63(b)
Financial Statements signed by Mr. Alberto N. Bandiola, the PENR Officer of IPSAS 14.26
PENRO Davao Del Sur.
The Department of Environment and Natural Resources existed by virtue of IPSAS 1.150
Executive Order 192 was issued on June 10, 1987, by then-President Corazon IPSAS ,
C. Aquino. It envisioned the Philippines as a country of lush forests, clear
skies and waters, bountiful land; strong and dynamic nation of empowered
people living in dignity, at peace with each other, and in harmony with nature.
The PENR Office RXI-4 is among the 73 provincial offices created to provide
better access to its rural and upland clientele and beneficiaries, along with the
Department’s mission to be the dynamic force to protect, preserve, and
manage the environment in partnership with the people’s initiative towards
sustainable development.
The PENR Office RXI-4 started its operation on September 16, 1988, to attain
the following objectives of the department:
1. To assure the availability and sustainability of the country’s

natural resources through judicious use and systematic
restoration or replacement whenever possible;
2. Increase the productivity of natural resources in order to
meet the demands for forest, mineral, and land resources of a
growing population;
3. Enhance the contribution of natural resources for achieving
national economic and social developments;
4. Promote equitable access to natural resources by different
sectors of the population; and
5. Conserve specific terrestrial and marine areas representative

of the Philippine natural heritage for present and future
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RXI-4, Digos City
generations.
The Agency's registered office is located in Provincial Capitol Compound,

Matti, Digos City, Davao Del Sur.
2. Statement of Compliance and Basis of Preparation of Financial Statements
The financial statements have been prepared in accordance with and comply with the IPSAS 1.129
International Public Sector Accounting Standards (IPSAS) issued by the Commission IPSAS 2
on Audit per COA Resolution No. 2014-003 dated January 24, 2014. IPSAS 6
The financial statements have been prepared on the basis of historical cost unless
stated otherwise. The Statement of Cash Flows is prepared using the direct method.
3. Summary of Significant Accounting Policies
3.1 Basis of Accounting
The financial statements are prepared on an accrual basis in accordance with the IPSAS 1, 6
International Public Sector Accounting Standards (IPSAS).
3.2 Financial instruments
a. Financial assets
Initial recognition and measurement
Financial assets within the scope of IPSAS 29-Financial Instruments: IPSAS 29.10
Recognition and Measurement are classified as financial assets at fair value IPSAS 30.31
through surplus or deficit, held-to-maturity investments, loans and
receivables, or available-for-sale financial assets, as appropriate. The
PENR Office RXI-4 determines the classification of its financial assets at
initial recognition.
Purchases or sales of financial assets that require delivery of assets within a IPSAS 29.40
time frame established by regulation or convention in the marketplace
(regular way trades) are recognized on the trade date, i.e., the date that the
PENR Office RXI-4 commits to purchase or sell the asset.
The PENR Office RXI-4 financial assets include cash and short-term
deposits; trade and other receivables; loans and other receivables; quoted and
unquoted financial instruments; and derivative financial instruments.
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RXI-4, Digos City
Subsequent measurement
The subsequent measurement of financial assets depends on their

classification.
Financial assets at fair value through surplus or deficit

IPSAS 29.10
Financial assets at fair value through surplus or deficit include financial assets IPSAS 29.47
held for trading and financial assets designated upon initial recognition at fair IPSAS
value through surplus and deficit. Financial assets are classified as held for 29.64(a)
trading if they are acquired for the purpose of selling or repurchasing in the
near term.
Derivatives, including separated embedded derivatives are also classified as

held for trading unless they are designated as effective hedging instruments.
Financial assets at fair value through surplus or deficit are carried in the
statement of financial position at fair value with changes in fair value
recognized in surplus or deficit.
Derecognition
The PENR Office RXI-4 derecognizes a financial asset or, where IPSAS 29.19
applicable, a part of a financial asset or part of a [Name of Entity] of similar IPSAS 29.20-
financial assets when: 22
 The rights to receive cash flows from the asset have expired or are
waived
 The PENR Office RXI-4 has transferred its rights to receive cash
flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party, and either: (a)
the PENR Office RXI-4 has transferred substantially all the risks and
rewards of the asset; or (b) the PENR Office RXI-4 has neither
transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.
Impairment of financial assets
The PENR Office RXI-4 assesses at each reporting date whether there is IPSAS 29.67-
objective evidence that a financial asset or a group of financial assets is 68
impaired. A financial asset or a group of financial assets is deemed to be IPSAS
impaired if, and only if, there is objective evidence of impairment as a result 30.AG5(f)
of one or more events that has occurred after the initial recognition of the
asset (an incurred “loss event”) and that loss event has an impact on the
estimated future cash flows of the financial asset or the group of financial
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RXI-4, Digos City
assets that can be reliably estimated.
Evidence of impairment may include the following indicators:
 The debtors or a group of debtors are experiencing significant

financial difficulty
 Default or delinquency in interest or principal payments
 The probability that debtors will enter bankruptcy or other financial

reorganization
 Observable data indicates a measurable decrease in estimated future

cash flows (e.g. changes in arrears or economic conditions that
correlate with defaults)
Financial assets carried at amortized cost
For financial assets carried at amortized cost, the PENR Office RXI-4 first IPSAS
assesses whether objective evidence of impairment exists individually for 29.72-73
financial assets that are individually significant, or collectively for financial
assets that are not individually significant. If the PENR Office RXI-4
determines that no objective evidence of impairment exists for an individually
assessed financial asset, whether significant or not, it includes the asset in a
group of financial assets with similar credit risk characteristics and
collectively assesses them for impairment. Assets that are individually
assessed for impairment and for which an impairment loss is, or continues to
be, recognized are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss has been incurred, the IPSAS
amount of the loss is measured as the difference between the assets carrying 29.AG117
amount and the present value of estimated future cash flows (excluding future IPSAS 30.20
expected credit losses that have not yet been incurred). The present value of IPSAS 29.73
the estimated future cash flows is discounted at the financial asset’s original IPSAS
effective interest rate. If a loan has a variable interest rate, the discount rate 29.AG126
for measuring any impairment loss is the current effective interest rate. IPSAS
30.AG5(d)(i)
The carrying amount of the asset is reduced through the use of an allowance and (ii)
account and the amount of the loss is recognized in surplus or deficit. Loans
together with the associated allowance are written off when there is no
realistic prospect of future recovery and all collateral has been realized or
transferred to the PENR Office RXI-4. If, in a subsequent year, the amount
of the estimated impairment loss increases or decreases because of an event
occurring after the impairment was recognized, the previously recognized
impairment loss is increased or reduced by adjusting the allowance account.
If a future write-off is later recovered, the recovery is credited to finance costs
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RXI-4, Digos City
in surplus or deficit.
b. Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of IPSAS 29 are classified as financial IPSAS 29.10
liabilities at fair value through surplus or deficit or loans and borrowings, as
appropriate. The entity determines the classification of its financial
liabilities at initial recognition.
All financial liabilities are recognized initially at fair value and, in the case of IPSAS 29.45
loans and borrowings, plus directly attributable transaction costs. IPSAS 29.49
The PENR Office RXI-4 financial liabilities include trade and other
payables, bank overdrafts, loans and borrowings, and financial guarantee
contracts.
Subsequent measurement
The measurement of financial liabilities depends on their classification.
Financial liabilities at fair value through surplus or deficit
Financial liabilities at fair value through surplus or deficit include financial IPSAS 29.10
liabilities held for trading and financial liabilities designated upon initial IPSAS
recognition as at fair value through surplus or deficit. 29.49(a)
Financial liabilities are classified as held for trading if they are acquired for
the purpose of selling in the near term.
This category includes derivative financial instruments entered into by the

Group that are not designated as hedging instruments in hedge relationships
as defined by IPSAS 29.
Gains or losses on liabilities held for trading are recognized in surplus or IPSAS
deficit. 29.64(a)
3.3 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and cash at bank, deposits on IPSAS 2.8
call, and highly liquid investments with an original maturity of three months or IPSAS 2.9
less, which are readily convertible to known amounts of cash and are subject to IPSAS 2.56
an insignificant risk of changes in value. For the purpose of the consolidated
statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits as defined above, net of outstanding bank overdrafts.
3.4 Inventories
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RXI-4, Digos City
Inventory is measured at cost upon initial recognition. To the extent that IPSAS 12.15
inventory was received through non-exchange transactions (for no cost or for a IPSAS
nominal cost), the cost of the inventory is its fair value at the date of acquisition. 12.17(a)
Costs incurred in bringing each product to its present location and condition are IPSAS 12.16
accounted for, as follows: IPSAS 12.18
 Raw materials: purchase cost using the weighted average cost method
 Finished goods and work in progress: cost of direct materials and labor and a
proportion of manufacturing overheads based on the normal operating
capacity, but excluding borrowing costs
After initial recognition, inventory is measured at the lower of cost and net
realizable value. However, to the extent that a class of inventory is distributed or
deployed at no charge or for a nominal charge, that class of inventory is
measured at the lower of cost and current replacement cost.
IPSAS 12.35
Net realizable value is the estimated selling price in the ordinary course of IPSAS 12.20
operations, less the estimated costs of completion and the estimated costs IPSAS 12.21
necessary to make the sale, exchange, or distribution.
IPSAS 12.9
Inventories are recognized as an expense when deployed for utilization or
consumption in the ordinary course of operations of the PENR Office RXI-4.
3.5 Property, Plant and Equipment
Recognition
An item is recognized as property, plant, and equipment (PPE) if it meets the IPSAS 17.13
characteristics and recognition criteria as a PPE.
The characteristics of PPE are as follows: IPSAS 17.14
 tangible items;
 are held for use in the production or supply of goods or services, for
rental to others, or for administrative purposes; and
 are expected to be used during more than one reporting period.
An item of PPE is recognized as an asset if:
 It is probable that future economic benefits or service potential

associated with the item will flow to the entity; and
 The cost or fair value of the item can be measured reliably.
Measurement at Recognition
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RXI-4, Digos City
An item recognized as property, plant, and equipment is measured at cost. IPSAS 17.26
A PPE acquired through a non-exchange transaction is measured at its fair value IPSAS 17.27
as of the date of acquisition.
The cost of the PPE is the cash price equivalent or, for PPE acquired through IPSAS 17.37
non-exchange transaction its cost is its fair value as at recognition date.
Cost includes the following: IPSAS 17.30
 Its purchase price, including import duties and non-refundable purchase

taxes, after deducting trade discounts and rebates;
 expenditure that is directly attributable to the acquisition of the items;

and
 initial estimate of the costs of dismantling and removing the item and
restoring the site on which it is located, the obligation for which an entity
incurs either when the item is acquired, or as a consequence of having
used the item during a particular period for purposes other than to
produce inventories during that period.
Measurement After Recognition
After recognition, all property, plant, and equipment are stated at cost less IPSAS 17.43
accumulated depreciation and impairment losses. PAG2 of
IPSAS 17
When significant parts of property, plant, and equipment are required to be IPSAS 17.24
replaced at intervals, the [Name of the entity] recognizes such parts as individual IPSAS 17.25
assets with specific useful lives and depreciates them accordingly. Likewise,
when a major repair/replacement is done, its cost is recognized in the carrying
amount of the plant and equipment as a replacement if the recognition criteria are
satisfied.
All other repair and maintenance costs are recognized as expenses in surplus or IPSAS 17.23
deficit as incurred.
Depreciation
Each part of an item of property, plant, and equipment with a cost that is IPSAS 17.59
significant in relation to the total cost of the item is depreciated separately.
The depreciation charge for each period is recognized as an expense unless it is IPSAS 17.64
included in the cost of another asset.
Initial Recognition of Depreciation
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RXI-4, Digos City
Depreciation of an asset begins when it is available for use such as when it is in PAG3 of
the location and condition necessary for it to be capable of operating in the IPSAS 17
manner intended by management.
For simplicity and to avoid proportionate computation, the depreciation is for

one month if the PPE is available for use on or before the 15th of the month.
However, if the PPE is available for use after the 15th of the month, depreciation
is for the succeeding month.
Depreciation Method
The straight-line method of depreciation is adopted unless another method is PAG4 of

more appropriate for agency operation. IPSAS 17
Estimated Useful Life
The PENR Office RXI-4 uses the Schedule on the Estimated Useful Life of PAG5 of
PPE by classification prepared by COA. IPSAS 17
The PENR Office RXI-4 uses a residual value equivalent to at least five PAG6 of
percent (5%) of the cost of the PPE. IPSAS 17
Impairment
An asset’s carrying amount is written down to its recoverable amount, or

recoverable service amount if the asset’s carrying amount is greater than its
estimated recoverable service amount. The PENR Office RXI-4 has not yet
recognized impairment for CY 2015.
Derecognition
The PENR Office RXI-4 derecognizes items of property, plant and equipment, IPSAS 17.82
and/or any significant part of an asset upon disposal or when no future economic IPSAS 17.83
benefits or service potential is expected from its continuing use. Any gain or loss IPSAS 17.86
arising on the derecognition of the asset (calculated as the difference between the
net disposal proceeds and the carrying amount of the asset) is included in the
surplus or deficit when the asset is derecognized.
3.6 Leases
PENR Office RXI-4 as a lessee
Finance Lease
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RXI-4, Digos City
Finance leases are leases that transfer substantially the entire risks and benefits IPSAS 13.13
incidental to ownership of the leased item to the PENR Office RXI-4.
Assets held under a finance lease are capitalized at the commencement of the IPSAS 13.28
lease at the fair value of the leased property or, if lower, at the present value of
the future minimum lease payments. The [Name of the Entity] also recognizes
the associated lease liability at the inception of the lease. The liability recognized
is measured as the present value of the future minimum lease payments at initial
recognition.
Subsequent to initial recognition, lease payments are apportioned between IPSAS 13.34
finance charges and reduction of the lease liability so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance charges are
recognized as finance costs in surplus or deficit.
An asset held under a finance lease is depreciated over the useful life of the asset. IPSAS 13.36
However, if there is no reasonable certainty that the PENR Office RXI-4. will IPSAS 13.37
obtain ownership of the asset by the end of the lease term, the asset is
depreciated over the shorter of the estimated useful life of the asset and the lease
term.
Operating lease
Operating leases are leases that do not transfer substantially all the risks and IPSAS 13.42
benefits incidental to ownership of the leased item to the PENR Office RXI-4.
Operating lease payments are recognized as an operating expense in surplus or
deficit on a straight-line basis over the lease term.
PENR Office RXI-4 as a lessor
Finance Lease
The PENR Office RXI-4 recognizes lease payments receivable under a IPSAS 13.48
finance lease as assets in the statements of financial position. The assets are
presented as receivable at an amount equal to the net investment in the lease.
The finance revenue are recognized based on a pattern reflecting a constant IPSAS 13.51
periodic rate of return on the net investment in the finance lease.
Operating Lease
Leases in which the PENR Office RXI-4 does not transfer substantially all the IPSAS 13.13
risks and benefits of ownership of an asset are classified as operating leases.
Initial direct costs incurred in negotiating an operating lease are added to the
carrying amount of the leased asset and recognized over the lease term. IPSAS 13.65
Rent received from an operating lease is recognized as income on a straight-line IPSAS 13.63
basis over the lease term. Contingent rents are recognized as revenue in the
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RXI-4, Digos City
period in which they are earned.
The depreciation policies for PPE are applied to similar assets leased by the IPSAS 13.66
entity.
3.7 Changes in accounting policies and estimates
The PENR Office RXI-4 recognizes the effects of changes in accounting IPSAS 3.27
policy retrospectively. The effects of changes in accounting policy were applied IPSAS 3.30
prospectively if retrospective application is impractical.
The PENR Office RXI-4 recognizes the effects of changes in accounting IPSAS 3.41
estimates prospectively by including in surplus or deficit.
The PENR Office RXI-4 correct material prior period errors retrospectively IPSAS 3.47
in the first set of financial statements authorized for issue after their discovery
by:
 Restating the comparative amounts for prior period(s) presented in which

the error occurred; or
 If the error occurred before the earliest prior period presented, restate the
opening balances of assets, liabilities, and net assets/equity for the
earliest prior period presented.
3.8 Revenue from non-exchange transactions
Recognition and Measurement of Assets from Non-Exchange Transactions
An inflow of resources from a non-exchange transaction, other than services in- IPSAS 23.31
kind, that meets the definition of an asset was recognized as an asset if the
following criteria were met:
 It is probable that the future economic benefits or service potential

associated with the asset will flow to the entity; and
 The fair value of the asset can be measured reliably.

IPSAS 23.42
An asset acquired through a non-exchange transaction is initially measured at its
fair value as at the date of acquisition.
Recognition Revenue from Non-Exchange Transactions
An inflow of resources from a non-exchange transaction recognized as an asset IPSAS 23.44

is recognized as revenue, except to the extent that a liability is also recognized
in respect of the same inflow.
As PENR Office RXI-4 satisfies a present obligation recognized as a liability IPSAS 23.45
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RXI-4, Digos City
in respect of an inflow of resources from a non-exchange transaction recognized

as an asset, it reduces the carrying amount of the liability recognized and
recognizes an amount of revenue equal to that reduction.
Measurement of Revenue from Non-Exchange Transactions
Revenue from non-exchange transactions is measured at the amount of the IPSAS 23.48-
increase in net assets recognized by the entity unless a corresponding liability is 49
recognized.
Measurement of Liabilities on Initial Recognition from Non-Exchange

Transactions
IPSAS 23.57
The amount recognized as a liability in a non-exchange transaction is the best
estimate of the amount required to settle the present obligation at the reporting
date.
Transfers from other government entities
Revenues from non-exchange transactions with other government entities and IPSAS 23.42
the related assets were measured at fair value and recognized on obtaining IPSAS 23.44
control of the asset (cash, goods, services, and property) if the transfer is free
from conditions and it is probable that the economic benefits or service potential
related to the asset will flow to the [Name of Entity] and can be measured
reliably.
3.9 Budget information
The annual budget is prepared on a cash basis and is published in the government IPSAS 24
website.
A separate Statement of Comparison of Budget and Actual Amounts (SCBAA)

was prepared since the budget and the financial statements were not prepared on
a comparable basis. The SCBAA was presented showing the original and final
budget and the actual amounts on a comparable basis to the budget. Explanatory
comments are provided in the notes to the annual financial statements.
3.10 Impairment of Non-Financial Assets
Impairment of cash-generating assets
At each reporting date, the PENR Office RXI-4 assesses whether there is an IPSAS 26.22
indication that an asset may be impaired. If any indication exists, or when annual IPSAS 26.13
impairment testing for an asset is required, the PENR Office RXI-4 estimates
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an
asset’s or cash-generating unit’s fair value less costs to sell and its value in use
and is determined for an individual asset unless the asset does not generate cash
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RXI-4, Digos City
inflows that were largely independent of those from other assets or groups of
assets.
Where the carrying amount of an asset or the cash-generating unit (CGU) IPSAS 26.72
exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
In assessing value in use, the estimated future cash flows were discounted to IPSAS 26.43-
their present value using a discount rate that reflects current market assessments 45
of the time value of money and the risks specific to the asset. In determining fair IPSAS 26.68
value less costs to sell, recent market transactions were taken into account, if
available. If no such transactions can be identified, an appropriate valuation
model is used.
For assets, an assessment is made at each reporting date as to whether there is IPSAS 26.99
any indication that previously recognized impairment losses may no longer exist
or may have decreased. If such indication exists, the PENR Office RXI-4
estimates the asset’s or cash-generating unit’s recoverable amount.
IPSAS
A previously recognized impairment loss is reversed only if there has been a 26.103
change in the assumptions used to determine the asset’s recoverable amount
since the last impairment loss was recognized. The reversal is limited so that the
carrying amount of the asset does not exceed its recoverable amount, nor exceed
the carrying amount that would have been determined, net of depreciation, had
no impairment loss been recognized for the asset in prior years. Such reversal is
recognized in surplus or deficit.
Impairment of non-cash-generating assets
The PENR Office RXI-4 assesses at each reporting date whether there is an IPSAS 21.26
indication that a non-cash-generating asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the [Name of
the Entity] estimates the asset’s recoverable service amount. An asset’s IPSAS 26.14
recoverable service amount is the higher of the non-cash generating asset’s fair
value less costs to sell and its value in use.
Where the carrying amount of an asset exceeds its recoverable service amount,
the asset is considered impaired and is written down to its recoverable service
amount. The PENR Office RXI-4 classifies assets as cash-generating assets IPSAS 26.14
when those assets were held with the primary objective of generating a
commercial return. Therefore, non-cash generating assets would be those assets
from which the PENR Office RXI-4 does not intend (as its primary objective)
to realize a
commercial return.
3.11 Employee benefits
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RXI-4, Digos City
The employees of PENR Office RXI-4 are members of the Government

Service Insurance System (GSIS) which provides life and retirement insurance
coverage.
The PENR Office RXI-4 recognizes the undiscounted amount of short-term

employee benefits, like salaries, wages, bonuses, allowance, etc., as an expense
unless capitalized, and as a liability after deducting the amount paid.
The PENR Office RXI-4 recognizes expenses for accumulating compensated

absences when these were paid (commuted or paid as terminal leave benefits).
Unused entitlements that have accumulated at the reporting date were not
recognized as expenses. Non-accumulating compensated absences, like special
leave privileges, were not recognized.
4. Cash and Cash Equivalents
As of Dec. 31, 2023

Accounts
(in thousand pesos)
Cash – Collecting Officer 200.00
Petty Cash -
Cash – Treasury/Agency, Deposit, Trust 3,587,650.00
Total Cash and Cash Equivalents 3,587,850.00
.
 Cash – Treasury/Agency, Deposit, Trust refers to the amount deposited to
the Bureau of Treasury to cover the payment of NGP Retention fees CY
2019 amounting to 2,450,500.00 and CY 2022 amounting to 1,137,150.
 Cash-collecting officer refers to the undeposited collection of CENRO
Davao for December 2023
5. Receivables
5.1 Receivables
2023
Accounts (in thousand pesos)
Current Non-Current Total
Operating Lease Receivable - 47,684,172.59 47,684,172.59
Due from Other Funds - 23,735.71 23,735.71
Receivables - Disallowances/Charges - 1,507,904.20 1,507,904.20
Due from Officers and Employees 3,509.40 158,996.00 162,505.40
Other Receivable 20,634.20 2,961.52 23,595.72
TOTALS 24,143.60 49,377,770.02 49,401,913.62
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 Operating Lease Receivable amounting to 75,064.02 represents receivable

from foreshore tenants; Receivable amounting to 25,906,250.97 represents
receivable from foreshore lease transactions of PENRO Davao del Sur as of
August 31, 2022, under AOM No. 2022-003 dated September 28, 2022, and
the increase of Operating Lease Receivable amounting to 21,702,857.60
represents adjustments made under COA recommendation on AOM 2022-
006
 Disallowances/Charges represent the balance of disallowances of traveling
expenses and refund of CNA for CY 2014 due to PENRO employees.
 Due from Officers and Employees refers to the balance of unsettled CNA,
Hazard Pay of Mr. Ricardo Pastoral who availed the Rationalization plan
amounting to P 11,000; recognition of receivable due to the loss of motor
vehicles of Alberto Alipan and Geoffrey Z. Magday amounting 67,996 and
80,000 respectively, and an obligation of Franklin Del Pilar amounting to
3,509.40 due to overpayment of salaries.
 Due from Other Funds – represents an erroneous transfer of funds by LBP
to the Cash LCCA Account.
 Other Receivables refer to the balance of unsettled CNA Incentive for CY
2014 of Mr. Allan G. Montanez. Mr. Montanez was dismissed from the
government service last March 2016 amounting to 2,961.52 and
overpayment to suppliers which will be settled through their future
transactions.
6. Inventories
2023
Accounts (in thousand pesos)
Semi Expendable - Office Equipment - - -
TOTALS - - -
7. Other Current Assets
2023
Particulars (in thousand pesos)
Advances to Contractors 230,625.05 - 230,625.05
Advances to Disbursing Officers - - -
Advances to Officers and Employees - - -
Prepaid Insurance 236,485.82 - 236,485.82
TOTALS 467,110.87 467,110.87
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 The Advances to Contractors refer to the unrecouped balance of the mobilization

fee amounting to P 66, 525.20 for CY 2021, P 92,100.00 for CY 2022 and
71,999.85 for CY 2023
 Prepaid insurance refers to the premium paid for the insurance of buildings and
motor vehicles for CY 2023
8. Property, Plant and Equipment
The cost of the PPE is the cash price equivalent or, for PPE acquired through non-
exchange transaction its cost is its fair value as at recognition date.
Cost includes the following:
 Its purchase price, including import duties and non-refundable purchase taxes,
after deducting trade discounts and rebates;
 expenditure that is directly attributable to the acquisition of the items; and
 initial estimate of the costs of dismantling and removing the item and restoring the
site on which it is located, the obligation for which an entity incurs either when
the item is acquired, or as a consequence of having used the item during a
particular period for purposes other than to produce inventories during that period.

Other Land Buildings and Other Machinery and Transportation

Land Land Improvement
Improvements Structures Equipment Equipment
Carrying Amount,
150,000.00 149,813,503.21 4,938,930.79 33,521,350.09 4,387,660.35 2,830,343.19
Jan 1, 2023
3,400,880.0
Additions/Adj - 1,782,158.31 2,165,035.27
0
Total 3,550,880.00 149,813,503.21 4,938,930.79 33,521,350.09 6,169,818.66 4,995,378.46
Reclass/Adjustment 0.60 772,423.13
226,49
Depreciation 2,062,100.85 1,328,660.52 673,248.57
9.19
Impairment Loss
Carrying Amount,
3,550,880.00 149,813,502.61 4,712,431.60 31,459,249.24 4,068,735.01 4,322,129.89
Dec 31, 2023
Gross Cost (Asset

Account Balance per 3,550,880.00 149,813,502.61 7,236,500.41 47,285,828.46 11,880,925.15 10,071,195.48
Statement of FP
Less: Acc.
2,524,068.81 15,826,579.22 7,812,190.14 5,749,065.59
Depreciation
Allow. for
Impairment
15
Annex F

RXI-4, Digos City
Carrying Amount,
Dec 31, 2023 (As 3,550,880.00 149,813,502.61 4,712,431.60 31,459,249.24 4,068,735.01 4,322,129.89
per Statement of FP
Furniture, CIP-Building and Other Heritage TOTAL PPE

CIP- Land Imp Other PPE
Fixtures & Books Other Structures Asset (NET VALUE)
Carrying Amount,
333,422.42 423,144,178.20 2,990,712.07 4,779.63 6,787,930.32 628,902,810.27
Jan 1, 2023
5,537,77
Additions/Adj 12,885,843.58
0.00
Total 333,422.42 428,681,948.20 2,990,712.07 4,779.63 6,787,930.32 641,788,653.85
Reclass/ 319,
1,091,719.67
Adjustment 295.94
-
1 483,640
Depreciation 4,775,991.93
,842.58 .22
Impairment Loss -
Carrying Amount,
12,283.90 428,681,948.20 2,990,712.07 4,779.63 6,304,290.10 635,920,942.25
Dec 31, 2023
Gross Cost (Asset

Account Balance
122,839.00 428,681,948.20 2,990,712.07 47,182.36 6,787,930.32 668,469,444.06
per Statement of
FP
Less: Acc.
110,555.10 42,402.73 483,640.22 32,548,501.81
Depreciation
Allow. for
Impairment
Carrying Amount,
Dec 31, 2023 (As
12,283.90 428,681,948.20 2,990,712.07 4,779.63 6,304,290.10 635,920,942.25
per Statement of
FP
8 Intangible Assets
2023
Particulars
Current Non-Current
Computer Software 195,999.00
Total Intangible Assets 195,999.00
9 Other Assets
16
Annex F

RXI-4, Digos City
2023
Particulars
Current Non-Current
Confiscated Property/Assets 1,611,564.48
Other Assets 554,770.36
Total Other Assets 2,166,334.84
 The Other Assets represents the balance of fully depreciated assets amounting to P
554,770.36 and confiscated goods inventory amounting to P 1,611,564.48
10 Financial Liabilities
10.1 Payables
2023 2022
Particulars Non- Non-
Current Current
Current Current
Payables
Accounts Payable 1,234,970.20 - 199,139.05 -
Due to Officers and Employees 3,079,596.62 - 4,550.00 -
Total Payables 4,314,566.82 - 203,689.05 -
 The Accounts Payable represent the Due and demandable obligations of external and
internal creditors amounting to 35,000 for CY 2022 and 1,199,970.20 for CY 2023
 The Due to Officers and Employees represents the Due and demandable obligations of
internal creditors for CY 2023
10.2 Inter-Agency Payables
2023 2022
Current Current
Current Current
Due to BIR 147,872.49 - 639,735.58 -
Due to GSIS 768.93 - 77,120.36 -
Due to Pag-IBIG 4,620.30 - 72,642.87 -
Due to PhilHealth 968.58 - 8,065.74 -
Total Inter-Agency Payables 154,248.30 - 797,564.55 -
 The Due to BIR refers to the unremitted withholding tax for December 2023 that was
remitted on January 5, 2024
 The Due to PhilHealth refers to the unremitted premium contribution of Betty Catam-
isan
17
Annex F

RXI-4, Digos City
 The Due to Pag-ibig refers to the unremitted premium of Betty Catam-isan

 The Due to GSIS refers to the unremitted premium contribution of personnel
10.3 Intra-Agency Payables
2023 2022
Current Current
Current Current
Due to Other Funds 23,735.71 - 23,735.71 -
Total Intra-Agency Payables 23,735.71 - 23,735.71 -
 The Due to Other Funds represents an erroneous transfer of funds by LBP to the Cash
LCCA Account.
10.4 Trust Liabilities
2023 2022
Current Current
Current Current
Guaranty/Security Deposits Payable 24,679,127.73 - 24,294,359.02 -
Total Trust Liabilities 24,679,127.73 - 24,294,359.02 -
 The balance of Guaranty Deposits Payable represents the unreleased retention fees
from prior years amounting to 23,865,317.61 and an increase amounting to 813,810.12
from CY 2023 transactions
10.5 Deferred Credits/Unearned Income
2023 2022
Current Current
Current Current
Other Unearned Income - 19,912,004.02 -
Total Deferred Credits/Unearned
Income 19,912,004.02 - 19,912,004.02 -
 The other unearned income refers to income recognized but not yet delivered in the
foreshore lease transactions of PENRO Davao del Sur as of August 31, 2022, under
AOM No. 2022-003 dated September 28, 2022.
10.6 Other Payables

18
Annex F

RXI-4, Digos City
2023 2022
Current Current
Current Current
Other Payables
Other Payables 134,601.97 - 61,718.97
Total Other Payables 134,601.97 - 61,718.97 -
 The Other payables represent the balance of unremitted contributions in 2023
11. Accumulated Surplus/Deficit
Particulars As of December 31, 2023

Balance on January 01, 2023 610,548,230.34
Prior Period Adjustments -
Other Adjustments -
Restated Balance 610,548,230.34
Adj. of net revenue recognized directly in net assets 170,659,592.32
Surplus for the period 170,364,328.51
Others 32,268,899.51
Total Accumulated Surplus 642,521,866.04
12. Service and Business Income
Particulars 2023 2022

Service Income
Permit Fees 124,330.00 103,660.00
Registration Fees 91,880.00 99,250.00
Clearance and Certification Fees 198,655.00 197,152.00
Inspection Fees 12,200.00 10,400.00
Gains - -
Miscellaneous Income - -
Processing Fees 186,700.00 217,710.00
Other Service Income 26,066.00 43,000.00
Business Income
Rent/Lease Income 169,629,750.10 118,193,103.15
Other Business Income 224,830.40 267,165.00
Total Service and Business Income 170,494,411.50 119,131,440.15
19
Annex F

RXI-4, Digos City
13. Personnel Services
13.1 Salaries and Wages

Salaries and Wages-Regular 47,888,649.57 47,840,758.56
Salaries and Wages-Casual/Contractual - -
Total Salaries and Wages 47,888,649.57 47,840,758.56
13.2 Other Compensation

Personal Economic Relief Allowance (PERA) 3,497,725.55 3,645,632.89
Representation Allowance (RA) 485,000.00 546,250.000
Transportation Allowance (TA) 175,000.00 241,250.00
Clothing/Uniform Allowance 900,000.00 930,000.00
Hazard Pay - -
Productivity Incentive Allowance - -
Longevity Pay 10,000.00 -
Mid Year Bonus 3,873,346.00 3,987,422.00
Year End Bonus 4,827,721.55 3,934,698.00
Cash Gift - 747,250.00
Other Bonuses and Allowances 7,190,528.63 8,404,464.96
Total Other Compensation 20,959,321.73 22,436,967.90
13.3 Personnel Benefit Contributions

Retirement and Life Insurance Premiums 5,763,200.30 5,743,064.07
Pag-ibig Contributions 174,700.00 180,100.00
PhilHealth Contributions 930,384.98 921,157.34
Employees Compensation Insurance Premiums 175,900.00 182,100.00
Total Personnel Benefit Contributions 7,044,185.28 7,026,421.41
13.4 Other Personnel Benefits

Other Personnel Benefits 2,972,151.12 3,119,576.23
- -
Total Traveling Expenses 2,972,151.12 3,119,576.23
20
Annex F

RXI-4, Digos City
14. Maintenance and Other Operating Expenses
14.1 Traveling Expenses

Traveling Expenses-Local 4,689,456.73 4,413,650.05
Traveling Expenses-Foreign - -
Total Traveling Expenses 4,689,456.73 4,413,650.05
14.2 Training and Scholarship Expenses

Training Expenses 4,384,183.00 4,010,548.00
Scholarship Grants/Expenses - -
Total Training and Scholarship Expenses 4,384,183.00 4,010,548.00
14.3 Supplies and Materials Expenses

Office Supplies Expenses 1,185,307,61 281,844.62
Accountable Forms Expenses 1,600.00 50,970.00
Drugs and Medicine Expenses 46,000.00
Fuel, Oil and Lubricants Expenses 2,859,888.64 2,972,605.37
Other Supplies and Materials Expenses 743,984.00 781,660.50
Semi-Expendable Furniture and Fixtures Expenses 95,300.00 171,171.00
Semi-Expendable Machinery and Equipment Expenses 919,827.50 1,737,776.00
Total Supplies and Materials Expenses 5,851,907.75 6,511,327.79
14.4 Utility Expenses

Water Expenses 166,612.43 82,961.00
Electricity Expenses 1,855,157.55 1,874,388,58
Total Utility Expenses 2,021,769.98 1,957,349.58
14.5 Communication Expenses

Postage and Courier Services 32,349.00 6,000.00
Telephone Expenses 110,349.96 124,926.12
Internet Subscription Expenses 573,812.75 612,075.74
Cable, Satellite, Telegraph and Radio Expenses - 500.00
Total Communication Expenses 716,511.71 743,501.86
21
Annex F

RXI-4, Digos City
14.6 Survey, Professional, and Other General Services

Janitorial Services 571,267.50 459,107.03
Other General Services 12,373,683.76 16,932,883.73
Security Services 553,348.56 199,992.00
Survey Expenses 577,500.00 -
Auditing Services 32,784.95 31,073.83
Consulting Services 95,999.80
Other Professional Services 7,711,122.40 4,232,454.38
Total Professional Services 21,915,706.97 21,855,510.97
14.7 Repairs and Maintenance

Repairs and Maintenance-Buildings and Other Structures 924,496.21 1,612,017.68
Repairs and Maintenance-Machinery and Equipment 40,655.00 230,745.00
Repairs and Maintenance-Transportation Equipment 1,003,626.36 1,033,668.94
Repairs and Maintenance-Land Improvements 2,074,720.00 521,900.00
Repairs and Maintenance-Semi-Expendable Machinery 14,850.00 -
Repairs and Maintenance-Furniture and Fixtures - 8,500.00
Repairs and Maintenance-Other Plant and Equipment - -
Total Repairs and Maintenance Expenses 4,058,347.57 3,406,831.62
14.8 Taxes, Insurance Premiums and Other Fees

Taxes, Duties and Licenses 92,451.85
Fidelity Bond Premiums 31,578.75 81,228.75
Insurance Expenses 331,721.77 345,550.07
Total Taxes, Insurance Premiums and Other Fees 363,300.52 519,230.67
14.9 Other Maintenance and Operating Expenses

Advertising Expenses - -
Printing and Publication Expenses 45,498.72 23,800.00
Representation Expenses 574,195.00 413,600.00
Transportation and Delivery Expenses - 8,217.28
Rent/Lease Expenses - -
22
Annex F

RXI-4, Digos City

'Financial Assistance to NGOs/Pos - -
Subscription Expenses - -
Donations - -
Litigation/Acquired Assets Expenses - -
Other Maintenance and Operating Expenses 235,753.12 4,057,757.59
Total Other Maintenance and Operating Expenses 855,446.84 4,503,374.87
15 Non-Cash Expenses
15.1 Depreciation

Depreciation-Investment Property - -
Depreciation-Land Improvements 226,499.19 77,599.86
Depreciation-Infrastructure Assets - -
Depreciation-Buildings and Other Structures 2,062,100.85 940,041.50
Depreciation-Machinery and Equipment 1,328,660.52 2,100,396.13
Depreciation-Transportation Equipment 673,248.57 452,158.44
Depreciation-Furniture, Fixtures and Books 1,842.58 27,966.03
Depreciation- Other Heritage Asset 483,640.22 -
Depreciation-Other Property, Plant and Equipment - -
Total Depreciation 4,775,991.93 3,598,161.96
16 Net Financial Assistance/Subsidy
16.1 Financial Assistance/Subsidy from NGAs, LGUs, GOCCs

Subsidy from National Government 128,841,879.60 161,401,965.95
Subsidy from Central Office - -
Assistance from Local Government Units - -
Assistance from Government-Owned or
Controlled Corporations - -
Total Financial Assistance/Subsidy from
NGAs, LGUs, GOCCs 128,841,879.60 161,401,965.95
16.2 Less: Financial Assistance/Subsidy to NGAs, LGUs, GOCCs, NGOs/POs

Financial Assistance to NGAs - -
Subsidy to NGAs (for BTr only) - -
Financial Assistance to Local Government Units - -
23
Annex F

RXI-4, Digos City

Budgetary Support to GOCCs - -
Financial Assistance to NGOs/POs 508,050.00 -
Subsidies-Others - -
Total Financial Assistance/Subsidy to NGAs,
LGUs, GOCCs 508,050.00 -
Net Financial Assistance/Subsidy 128,333,829.60 161,401,965.95
17. Gains
Other Gains 30,360.00 22,172.50
Total Gains 22,172.50 22,172.50
 Other Gains refers to the other income collected by CENRO Malalag from CY 2023
18. Other Non-Operating Income

Other Miscellaneous Income 2,658.10 87,175.59
Total Other Non-Operating Income 2,658.10 87,175.59
 Other Miscellaneous Income refers to income from penalties collected from suppliers for
CY 2023
NOTE TO USERS:
Although efforts were exerted to provide this basic model, this cannot be expected to address every
type of transaction or disclosure requirement and it is not comprehensive enough in all respects to
meet the needs of every user. Further, this model is not intended to cover all aspects of standards
with regard to disclosures. Applying the IPSASs requires professional judgment.
24

NOTES To FS FUND 101 CY 2023

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Annex F

Republic of the Philippines

Notes to Financial Statements IPSAS 1

1. General Information/Agency Profile

1. To assure the availability and sustainability of the country’s

5. Conserve specific terrestrial and marine areas representative

Republic of the Philippines

The Agency's registered office is located in Provincial Capitol Compound,

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

3. Summary of Significant Accounting Policies

3.1 Basis of Accounting

3.2 Financial instruments

Initial recognition and measurement

Republic of the Philippines

The subsequent measurement of financial assets depends on their

Financial assets at fair value through surplus or deficit

Derivatives, including separated embedded derivatives are also classified as

Impairment of financial assets

Republic of the Philippines

assets that can be reliably estimated.

Evidence of impairment may include the following indicators:

 The debtors or a group of debtors are experiencing significant

 Default or delinquency in interest or principal payments

 The probability that debtors will enter bankruptcy or other financial

 Observable data indicates a measurable decrease in estimated future

Financial assets carried at amortized cost

Republic of the Philippines

Initial recognition and measurement

The measurement of financial liabilities depends on their classification.

Financial liabilities at fair value through surplus or deficit

This category includes derivative financial instruments entered into by the

3.3 Cash and cash equivalents

Republic of the Philippines

3.5 Property, Plant and Equipment

The characteristics of PPE are as follows: IPSAS 17.14

 are expected to be used during more than one reporting period.

An item of PPE is recognized as an asset if:

 It is probable that future economic benefits or service potential

 The cost or fair value of the item can be measured reliably.

Republic of the Philippines

Cost includes the following: IPSAS 17.30

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

 expenditure that is directly attributable to the acquisition of the items;

Measurement After Recognition

Initial Recognition of Depreciation

Republic of the Philippines

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

The straight-line method of depreciation is adopted unless another method is PAG4 of

Estimated Useful Life

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

PENR Office RXI-4 as a lessee

Republic of the Philippines

PENR Office RXI-4 as a lessor

Republic of the Philippines

period in which they are earned.

3.7 Changes in accounting policies and estimates

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

3.8 Revenue from non-exchange transactions

Recognition and Measurement of Assets from Non-Exchange Transactions

 It is probable that the future economic benefits or service potential

 The fair value of the asset can be measured reliably.

Recognition Revenue from Non-Exchange Transactions