FINANCIAL ANALYSIS WITH KEY OBSERVATIONS

A. Total Current Operating Income

Particulars Budget/Target (Php) Actual (Php) Variance (Php) Variance (%) Ratio Analysis Discussions Trend Analysis
Local Sources
a. Tax Revenue
Real Property Tax The collection of real Real property tax
Collection Ratio = property tax is collection has been
(Actual Real significantly lower than consistently below
Property Tax / the budgeted amount, budget, suggesting
Real Property Tax 301,517,366.37 187,193,404.58 114,323,961.79 37.96% Budget Real indicating potential ongoing challenges in
Property Tax) * issues with this area.
100 assessment,
collection, or
compliance.
Tax on Business While tax on business Tax on business
Collection Ratio = collection ratio is collection has shown
(Actual Tax on relatively lower, it's slight improvement
Business / Budget closer to the budget over time but still falls
Tax on Business 32,805,000.00 28,393,321.16 4,411,678.84 13.45% Tax on Business) * compared to real short of the budgeted
100 property tax, amount.
suggesting better
performance in this
area.
Other Taxes Other taxes collection Other taxes collection
Collection Ratio = is slightly below the has remained
(Actual Other target, but the variance relatively stable, with
Other Taxes 19,575,000.00 18,089,817.33 1,485,182.67 7.59% Taxes / Budget is relatively small minor fluctuations
Other Taxes) * 100 compared to other around the budgeted
revenue sources in the amount.
tax category.
b. Non-Tax Revenue
Service Income Service income shows Service income has
Ratio = (Actual a significant shortfall, been consistently
Service/User
Service Income / indicating potential below budget,
Charges (Service 480,384,000.00 252,575,650.54 227,808,349.46 47.56%
Budget Service issues with service suggesting a need for
Income)
Income) * 100 delivery or pricing strategic interventions
strategies.

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 to improve revenue
generation.
Other General Other general income Other general income
Income Ratio = is substantially lower has experienced
(Actual Other than budgeted, significant
Other Receipts
General Income / suggesting a need for fluctuations, but the
(Other General 22,800,000.00 2,486,469.00 20,313,531.00 89.18%
Budget Other a review of income overall trend indicates
Income)
General Income) * sources and revenue underperformance
100 diversification compared to the
strategies. budget.
External Sources
National Tax The national tax National tax allotment
Allotment Ratio = allotment is has consistently fallen
(Actual National significantly lower than short of the budgeted
National Tax Tax Allotment / budgeted, which may amount, indicating a
5,289,327,438.00 2,634,268,744.44 2,655,058,693.56 50.16%
Allotment Budget National be due to national trend of
Tax Allotment) * economic factors or underperformance in
100 changes in allocation this area.
formulas.
Other Shares The negative variance Other shares from
Ratio = (Actual in other shares from national tax collections
Other Shares / national tax collections have shown significant
Other Shares from Budget Other indicates an volatility, with a
National Tax 18,000,000.00 232,775,721.71 -214,775,721.71 -1193.20% Shares) * 100 overperformance notable deviation from
Collections compared to the the budget in the
budget, potentially due current period.
to unexpected
windfalls or grants.
The total operating Total current operating
income is significantly income has
lower than budgeted, consistently fallen
Total Current primarily driven by short of the budgeted
6,177,242,804.37 3,383,474,258.02 2,793,768,546.35 45.54%
Operating Income shortfalls in local amount, indicating
sources, especially in ongoing challenges in
service income and revenue generation.
other general income.

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B. Current Operating Expenditures
Particulars Budget/Target (Php) Actual (Php) Variance (Php) Variance (%) Ratio Analysis Discussions Trend Analysis
General Public Services The actual expenditure on The trend analysis shows a
Expenditure Ratio = general public services is consistent pattern of
(Actual General Public significantly lower than the underspending over the
Services / Budget budgeted amount, indicating period, highlighting the need
General Public substantial underspending in for closer scrutiny and
General Public
2,445,356,273.64 828,817,065.67 -1,616,539,207.97 -66.09% Services) * 100 this area. This large negative proactive management of
Services
variance suggests potential expenditures in this category.
inefficiencies or budgetary
adjustments that need to be
addressed to ensure proper
allocation of resources.
Education and Expenditure on education, Expenditure on education,
Manpower Development culture, and sports, including culture, and sports, including
Education Culture Expenditure Ratio = manpower development, is manpower development, has
and Sports/ (Actual Education and significantly lower than consistently fallen short of the
125,628,000.00 50,594,257.40 -75,033,742.60 -59.85%
Manpower Manpower Development budgeted. This may impact budgeted amount, indicating
Development / Budget Education and educational and developmental potential challenges in funding
Manpower programs in the province. these areas.
Development) * 100
Health, Nutrition & Expenditure on health, nutrition, Expenditure on health,
Population Control and population control is nutrition, and population
Expenditure Ratio = significantly lower than control has consistently fallen
Health, Nutrition & (Actual Health, Nutrition budgeted, indicating potential short of the budgeted amount,
1,577,897,809.05 501,790,048.56 -1,076,107,760.49 -68.23%
Population Control & Population Control / challenges in delivering indicating ongoing challenges
Budget Health, Nutrition healthcare services and in funding healthcare and
& Population Control) * population control programs. population control initiatives.
100
Labor and
- - - -
Employment
Housing and
Community - - - -
Development
Social Services and Expenditure on social services Expenditure on social services
Welfare Expenditure and welfare is significantly lower and welfare has consistently
Social Services and Ratio = (Actual Social than budgeted, indicating fallen short of the budgeted
277,633,429.80 88,294,435.09 -189,338,994.71 -68.20%
Social Welfare Services and Welfare / potential gaps in social welfare amount, indicating potential
Budget Social Services programs and support services. challenges in funding social
and Welfare) * 100

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 welfare programs and support
services.
Economic Services Expenditure on economic Expenditure on economic
Expenditure Ratio = services is significantly lower services has consistently
(Actual Economic than budgeted, indicating fallen short of the budgeted
Services / Budget potential challenges in amount, indicating potential
Economic Services 834,750,515.25 243,008,168.82 -591,742,346.43 -70.88%
Economic Services) * promoting economic challenges in funding
100 development and supporting economic development
economic activities. initiatives and supporting
economic activities.
Debt Service Expenditure on debt service is Expenditure on debt service
Expenditure Ratio = significantly lower than has consistently fallen short of
Debt Service (FE)
(Actual Debt Service / budgeted, indicating potential the budgeted amount,
(Interest Expense & 110,959,712.76 22,027,219.16 -88,932,493.60 -80.22%
Budget Debt Service) * savings or restructuring in debt indicating potential savings or
Other Charges)
100 obligations. restructuring in debt
obligations.
Total operating expenditures are Total operating expenditures
significantly lower than have consistently fallen short
TOTAL CURRENT
budgeted, indicating potential of the budgeted amount,
OPERATING 5,372,225,740.50 1,734,531,194.70 -3,637,694,545.80 -67.70%
underspending across various indicating potential challenges
EXPENDITURES
sectors. in funding various sectors and
services.

C. Under/Overspending/Expenditure Analysis (Budget vs Actual)

Fund Budget Appropriation (PHP) Actual Expenditure (PHP) Variance (PHP) Status
All Fund Sources 6,215,843,691.72 3,383,474,258.02 2,832,369,433.70 Underspending
a. Discussions:
✓ The actual expenditure of 3,383,474,258.02 PHP falls significantly short of the budget appropriation of 6,215,843,691.72 PHP,
resulting in a substantial underspending of 2,832,369,433.70 PHP. This substantial variance indicates that a significant portion of the
allocated budget remains unutilized.
b. Possible Reasons for Overspending or Underspending:
✓ Delayed Project Implementation: Projects or initiatives planned for the period may have experienced delays in implementation,
resulting in lower-than-expected expenditures. Delays could be due to bureaucratic processes, administrative hurdles, or unforeseen
logistical challenges.
✓ Budgetary Constraints: Departments or agencies may have faced budgetary constraints or limitations that hindered their ability to fully
utilize allocated funds. This could include restrictions on spending, budget cuts, or reallocation of funds to higher priority areas.

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 ✓ Efficiency Gains: Improved efficiency and cost-saving measures within government operations may have led to lower-than-expected
expenditures. Departments may have found ways to streamline processes, negotiate better deals with suppliers, or optimize resource
utilization, resulting in savings.
✓ Incomplete Planning: Inadequate planning or inaccurate budget estimates at the outset may have led to an overestimation of funding
requirements. This could result from insufficient data, flawed assumptions, or changing circumstances that were not adequately
accounted for during budget preparation.
✓ Unforeseen Circumstances: External factors such as economic downturns, natural disasters, or public health emergencies may have
disrupted planned activities, leading to reduced spending. Government agencies may have had to divert resources to address urgent
needs arising from these unforeseen events, affecting planned expenditures.

D. Under/Overspending/Expenditure Analysis (Total Available for Current Operating Expenditures vs Actual)

Total Available for Current
Fund Actual Expenditure (PHP) Variance (PHP) Status
Operating Expenditures (PHP)
General Fund 3,257,027,254.22 1,548,522,838.45 1,708,504,415.77 Underspending
Special Education Fund 109,749,912.79 50,594,257.40 59,155,655.39 Underspending
Trust Fund 16,457,365.34 135,414,098.85 -118,956,733.51 Overspending
Trust Liability 239,725.67 0 239,725.67 Underspending
a. Discussions:
✓ The total actual expenditure is significantly lower than the total available budget for current operating expenditures.
✓ Underspending is observed across the General Fund, SEF, and Trust Liability, indicating that allocated funds were not fully utilized
for various reasons such as delays, efficiency, or lower-than-expected costs.
✓ However, there is overspending in the Trust Fund, suggesting that expenses exceeded the allocated budget, possibly due to
unforeseen expenses or mismanagement.
b. Possible Reasons for Overspending or Underspending:
✓ General Fund: Delays in project implementation or procurement processes; Efficiency in resource utilization leading to lower-than-
expected expenses; and, Budget allocation may have been higher than necessary.
✓ Special Education Fund (SEF): Limited projects or initiatives requiring SEF allocation; Delayed implementation of education-related
programs; and, Lower-than-expected costs for educational projects.
✓ Trust Fund: Unforeseen expenses or emergencies requiring Trust Fund allocation; Higher costs for projects or services funded by the
Trust Fund; and, Mismanagement of funds leading to overspending.
✓ Trust Liability: No recorded expenses against the Trust Liability; and, Funds earmarked for specific purposes but not utilized during
the period.

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E. Other Accounts Analysis (Targets vs Actual)
a. Total Non-Income Receipts: The actual non-income receipts were significantly higher than the target, with a positive variance of 624,921,434.27
pesos. This indicates better-than-expected performance in generating revenue from sources such as loans and other borrowings.
b. Total Amount Available for Capital Expenditures: Considering the non-income receipts and supplemental budget, the total revenue available for
capital expenditures exceeded the target by 308,223,134.27 pesos. This suggests strong financial inflows during the period.
c. Total Non-Operating Expenditures: Actual non-operating expenditures fell short of the target by 185,431,550.47 pesos. This indicates lower-
than-expected spending on items such as capital investments, debt service, and other non-operating expenses. Possible reasons for this
variance could include delays in project implementation, lower-than-anticipated debt service obligations, or reduced expenditure on other non-
operating items.
d. Net Inc(Dec)crease in Funds: The net increase/(decrease) in funds presents a notable contrast between the target and actual figures. While the
target anticipated a decrease in funds by 379,263,399.06 pesos, the actual outcome revealed a positive net increase of 918,996,397.78 pesos,
marking a significant positive variance of 1,298,259,796.84 pesos. Despite the favorable outcome, it's crucial to address potential concerns,
including slower-than-anticipated project implementation or delays in capital expenditure utilization. These setbacks may have contributed to
funds remaining unspent or underutilized, highlighting the importance of identifying and addressing factors hindering optimal resource allocation
and investment.

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F. Simple Analysis (Simplified for Clarity)
Fund Sources
Particulars Target Total
GF SEF TF TL
Total Current
Operating 6,177,242,804.37 3,257,027,254.22 109,749,912.79 16,457,365.34 239,725.67 3,383,474,258.02
Income 1

Total Current
Operating 5,372,225,740.50 1,548,522,838.45 50,594,257.40 135,414,098.85 - 1,734,531,194.70
Expenditures
Net Operating
Income (Loss)
843,617,951.22 1,708,504,415.77 59,155,655.39 -118,956,733.51 239,725.67 1,648,943,063.32
from Current
Operations
Based on the data provided, it's evident that the available balances are suitable for various operational purposes, such as funding capital
outlays and servicing loans. However, it's essential to note that the analysis excludes non-income receipts.

Fund Sources
Particulars Target Total
GF SEF TF TL
Net Operating
Income (Loss)
843,617,951.22 1,708,504,415.77 59,155,655.39 -118,956,733.51 239,725.67 1,648,943,063.32
from Current
Operations
Total Non-Income
- 624,921,434.27 - - - 624,921,434.27
Receipts
Total Amount
Available for
316,698,300.00 624,921,434.27 - - - 624,921,434.27
Capital
Expenditures

1
Total cash available for current expenditures. For simplicity, the supplemental budget in the target section is excluded.

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Total Non-
Operating 1,540,299,650.28 1,347,224,649.44 1,500,000.00 6,143,450.37 - 1,354,868,099.81
Expenditures
Net Increase
(Decrease) in -379,263,399.06 986,201,200.60 57,655,655.39 -125,100,183.88 239,725.67 918,996,397.78
Funds
After incorporating non-income receipts and non-operating expenditures, including capital outlays, it appears that there are still substantial
amounts available for allocation. This suggests that there may be opportunities for further investment in various areas or for addressing other
financial obligations.

Fund Sources
Particulars Target Total
GF SEF TF TL
Net Increase
(Decrease) in -379,263,399.06 986,201,200.60 57,655,655.39 -125,100,183.88 239,725.67 918,996,397.78
Funds
Cash Balance,
3,664,859,208.89 3,194,792,193.18 268,671,609.57 201,395,406.04 239,725.67 3,665,098,934.46
Beginning
Payment to Prior
Year/s Accounts 370,172,938.05 370,072,938.05 - - 239,725.67 370,312,663.72
Payable
Continuing
2,060,320,597.72 202,976,780.58 24,744,431.16 - - 227,721,211.74
Appropriations
Advance Payment
- 15,126.10 21608.73 - - 36734.83
of RPT
Cash Balance,
End (Still 835,068,735.36 3,607,958,801.25 301,604,442.53 76,295,222.16 - 3,985,858,465.94
Available)
Based on the provided information, a significant amount of cash remains available for allocation or utilization. This surplus suggests that there
may be room for additional spending or investment in various areas, depending on the organization's financial objectives and priorities.

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