GOVERNMENT SERVICE INSURANCE SYSTEM

STATEMENTS OF FINANCIAL POSITION

December 31, 2022 and 2021
(In Philippine Peso)

2021 January 1, 2021

Note 2022
(As restated) (As restated)
ASSETS
Current assets
Cash and cash equivalents 5 34,801,560,256 37,927,787,110 25,929,779,511
Investments 6 286,694,049,001 332,810,579,107 251,435,767,343
Receivables - net 7 161,381,692,694 169,445,363,280 153,381,365,805
Inventories 8 7,184,622 4,301,827 2,912,480
Other current assets 12 123,849,741 306,755,930 213,588,515
483,008,336,314 540,494,787,254 430,963,413,654
Non-current assets
Investments 6 591,511,616,788 515,523,355,415 562,915,544,416
Receivables - net 7 243,476,599,053 279,110,654,195 286,783,081,511
Investment property 9 193,335,512,243 172,896,082,922 130,319,891,243
Property and equipment - net 10 26,952,359,806 26,427,361,593 18,702,263,211
Intangible assets - net 11 162,444,316 197,103,306 165,461,992
Other non-current assets - net 12 1,599,826,298 1,879,499,866 1,571,088,282
1,057,038,358,504 996,034,057,297 1,000,457,330,655

TOTAL ASSETS 1,540,046,694,818 1,536,528,844,551 1,431,420,744,309

LIABILITIES AND EQUITY

Current liabilities
Financial liabilities 13 14,858,210,898 22,515,267,253 19,153,062,822
Inter-agency payables 14 151,789,300 843,806,485 709,473,338
Deferred credits/Unearned income 16 3,309,202,067 3,218,339,795 3,097,798,717
Provisions 17 1,274,223,090 1,293,919,906 1,153,958,662
Other payables 18 1,834,945,691 3,152,532,844 3,634,752,663
21,428,371,046 31,023,866,283 27,749,046,202
Non-current liabilities
Financial liabilities 13 23,224,986 5,267,231 11,912,289
Trust liabilities 15 1,063,676,712 666,519,229 679,771,175
Provisions 17 8,280,928 9,950,000 9,400,000
Insurance contract liabilities 19 2,074,912,004,619 2,075,361,972,308 2,012,298,494,933
2,076,007,187,245 2,076,043,708,768 2,012,999,578,397

TOTAL LIABILITIES 2,097,435,558,291 2,107,067,575,051 2,040,748,624,599

EQUITY/(DEFICIT)
Revaluation surplus 24,290,811,612 23,785,850,291 15,963,157,491
Deficit 21 (546,068,520,189) (622,058,402,539) (693,546,057,487)
Cumulative changes in fair value
of investments (35,611,154,896) 27,733,821,748 68,255,019,706
TOTAL EQUITY/(DEFICIT) (557,388,863,473) (570,538,730,500) (609,327,880,290)

TOTAL LIABILITIES AND EQUITY 1,540,046,694,818 1,536,528,844,551 1,431,420,744,309

The Notes on pages 10 to 104 form part of these financial statements.

6
GOVERNMENT SERVICE INSURANCE SYSTEM
STATEMENTS OF COMPREHENSIVE INCOME
For the Years Ended December 31, 2022 and 2021
(In Philippine Peso)

2021
Note 2022
(As restated)

INCOME
Service and business income 22 242,114,689,283 234,252,605,996
Assistance and subsidy 23 678,483,377 6,045,821
Gains 24 34,867,421,677 91,807,619,599
Other non-operating income 25 5,452,971,268 3,878,708,734
283,113,565,605 329,944,980,150

EXPENSES
Personnel services 26 5,771,993,627 5,743,110,938
Maintenance and other operating expenses 27 161,268,619,537 152,373,992,680
Financial expenses 28 113,700,100 92,651,419
Non-cash expenses 29 40,179,542,598 42,349,043,275
207,333,855,862 200,558,798,312

PROFIT 75,779,709,743 129,386,181,838

Financial assistance/subsidy/contributions 30 (239,795,082) (107,650,422)
NET INCOME FROM OPERATIONS 75,539,914,661 129,278,531,416
Changes in insurance contract liabilities 31 449,967,689 (63,063,477,375)
NET INCOME 75,989,882,350 66,215,054,041
OTHER COMPREHENSIVE INCOME/(LOSS) 32
Items that will not be reclassified subsequently to profit or loss
Revaluation surplus 504,961,321 7,822,692,800
Unrealized gain/(loss) on investments in equity instruments
measured at FVOCI 4,224,113,331 (3,315,718,634)
Items that will be reclassified subsequently to profit or loss
Unrealized gain/(loss) on investments in debt instruments
measured at FVOCI (67,569,089,975) (37,205,479,324)
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) (62,840,015,323) (32,698,505,158)
COMPREHENSIVE INCOME 13,149,867,027 33,516,548,883

The Notes on pages 10 to 104 form part of these financial statements.

7
GOVERNMENT SERVICE INSURANCE SYSTEM
STATEMENTS OF CHANGES IN EQUITY
For the Years Ended December 31, 2022 and 2021
(In Philippine Peso)

Cumulative
Cumulative
changes in the
Revaluation Deficit changes in fair
remeasurement of Total
surplus (Note 21) value of
insurance contract
investments
liabilities

BALANCE AT JANUARY 1, 2022 23,785,850,291 (622,058,402,539) 0 27,733,821,748 (570,538,730,500)

CHANGES lN EQUITY FOR 2022
Add/(Deduct):
Comprehensive income/(loss) for the year 504,961,321 75,989,882,350 (63,344,976,644) 13,149,867,027
BALANCE AT DECEMBER 31, 2022 24,290,811,612 (546,068,520,189) 0 (35,611,154,896) (557,388,863,473)

BALANCE AT JANUARY 1, 2021 15,963,157,491 (691,217,257,300) 10,004,523,308 68,255,019,706 (596,994,556,795)

ADJUSTMENTS:
Add/(Deduct):
Other adjustments (2,328,800,187) (10,004,523,308) (12,333,323,495)
RESTATED BALANCE AT JANUARY 1, 2021 15,963,157,491 (693,546,057,487) 0 68,255,019,706 (609,327,880,290)
CHANGES IN EQUITY FOR 2021
Add/(Deduct):
Comprehensive income/(loss) for the year 7,822,692,800 66,215,054,041 0 (40,521,197,958) 33,516,548,883
Fair value gain(loss) on disposal of equity
securities at FVOCI reclassified to
Retained earnings 5,272,600,907 0 5,272,600,907
RESTATED BALANCE AT DECEMBER 31, 2021 23,785,850,291 (622,058,402,539) 0 27,733,821,748 (570,538,730,500)

The Notes on pages 10 to 104 form part of these financial statements.

8
GOVERNMENT SERVICE INSURANCE SYSTEM
STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2022 and 2021
(In Philippine Peso)

Note 2022 2021

CASH FLOWS FROM OPERATING ACTIVITIES

Cash inflows
Collection of revenue 166,707,998,810 156,474,364,112
Collection of receivables 972,508,135 1,409,554,692
Trust receipts 23,911,773 10,658,865
Receipt of inter-agency fund transfers 1,741,905,183 1,116,914,322
Other receipts 11,611,358 123,332,205
Total cash inflows 169,457,935,259 159,134,824,196
Cash outflows
Payment of accounts payable 163,508,949,238 149,046,160,381
Payment of expenses 4,071,866,476 3,945,531,663
Remittance of personnel benefit contributions and mandatory
deductions 4,497,800,435 3,807,746,555
Purchase of inventories 94,008,419 120,464,506
Grant of financial assistance/subsidy/contribution 123,325,481 151,630,101
Other disbursements 1,105,561,277 722,973,780
Total cash outflows 173,401,511,326 157,794,506,986

Net cash provided by/(used in) operating activities (3,943,576,067) 1,340,317,210

CASH FLOWS FROM INVESTING ACTIVITIES

Cash inflows
Collection of long-term loans 259,034,527,092 144,009,994,798
Proceeds from matured investments/redemption of long-term
investments/return on investments 138,898,847,261 129,503,520,257
Receipt of interests earned 73,651,868,832 69,621,573,044
Proceeds from sale of investments 33,319,530,370 36,950,786,520
Receipt of cash dividends 6,995,560,758 5,225,881,541
Proceeds from sale/disposal of investment property 164,723,105 42,656,081
Total cash inflows 512,065,057,418 385,354,412,241
Cash outflows
Purchase/acquisition of investments 295,960,609,703 224,176,737,229
Grant of loans 216,745,067,796 151,349,579,716
Purchase/construction of property, and equipment and systems
sofware 367,218,477 499,612,528
Total cash outflows 513,072,895,976 376,025,929,473
Net cash provided by/(used in) investing activities (1,007,838,558) 9,328,482,768

CASH FLOW FROM FINANCING ACTIVITIES

Cash Outflows
Payment of long-term liabilities 34,169,951 49,314,024
Payment of interest on loans and other financial charges 4,434,757 3,125,101
Total cash outflows 38,604,708 52,439,125
Net cash used in financing activities (38,604,708) (52,439,125)

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (4,990,019,333) 10,616,360,853

Effects of exchange rate changes on cash and cash equivalents 1,863,792,479 1,381,646,746
The Notes on pages 10 to 104 form part of these financial statements. 37,927,787,110 25,929,779,511
CASH AND CASH EQUIVALENTS AT END OF YEAR 5 34,801,560,256 37,927,787,110

The Notes on pages 10 to 104 form part of these financial statements.