09-DFA2022 Part1-Notes To FS

DEPARTMENT OF FOREIGN AFFAIRS
NOTES TO THE FINANCIAL STATEMENTS

For the year ended December 31, 2022
1. General Information/Agency Profile

The consolidated Financial Statements of the Department of Foreign Affairs (DFA)
were authorized for issue on February 7, 2023 as shown in the Statement of
Management Responsibility for Financial Statements signed by Hon. Sulpicio M.
Confiado, Assistant Secretary, OFMS.
The DFA was formally created in June 1898 with the birth of the first Philippine
Republic. In June 1952, under RA No. 708 otherwise known as the Magna Carta of
the Foreign Service, the DFA was established as an independent agency from the
direct supervision and control of the Americans. This was later revised by RA No.
7157 on September 19, 1991, known as the “Philippine Foreign Service Act of 1991.”
The Department’s registered office address and principal place of operations is
located at 2330 Roxas Boulevard, Pasay City, Philippines.
RA No. 7157 mandates the DFA to implement the three pillars of the Philippine
Foreign Policy, as follows:
● Preservation and enhancement of national security

● Promotion and attainment of economic security
● Protection of the rights and promotion of the welfare and interest of
Filipinos overseas.
The DFA operates in Metro Manila (Home Office, Aseana and its 6 Satellite Offices),
37 Consular Offices, 63 Embassies, 27 Consulates, 4 Missions and 156 Honorary
Consulates in selected places where there is no Embassy or Consulate.
2. Statement of Compliance and Basis of Preparation of Financial Statements

The CY 2021 Consolidated Financial Statements of DFA have been prepared in
accordance with and comply with the International Public Sector Accounting
Standards (IPSAS) issued by the Commission on Audit per COA Resolution No.
2020-01 dated January 09, 2020.
For the year ended December 31, 2022, the following reports were unaccounted from
Foreign Service Posts (FSPs) due to late submission:
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2.1 Report of Collections and Report of Disbursements
Unaccounted Period Foreign Service Posts

May to December 2022 Wellington PE
July to December 2022 Stockholm PE
August to December 2022 Oslo PE, Rabat PE, Tokyo PE,
Vancouver PCG, and Washington DC PE
September to December 2022 Abuja PE, Barcelona PCG, Budapest PE,
and Los Angeles PCG
October to December 2022 Beirut PE, Brasilia PE, Muscat PE, New
Delhi PE, and Tripoli PE
November to December 2022 Athens PE, Beijing PE, and Tehran PE
December 2022 Amman PE and Islamabad PE
2.2 Report of Disbursements
Unaccounted Period Foreign Service Posts

July to December 2022 Calgary PCG
July 2022 Washington DC PE
3. Summary of Significant Accounting Policies and Other Information
3.1 Basis of Accounting
The financial statements are prepared on accrual basis in accordance with the
IPSAS.
3.2 Consolidation
Consolidated funds
The financial statements reflect the assets, liabilities, revenues, and expenses of
the reporting entity under the regular agency fund, passport revolving fund and
trust fund.
Regular Agency Fund (RAF)
Pursuant to RA No. 11639, otherwise known as the General Appropriations Act

of FY 2022, DFA Regular Agency Fund is authorized by legislation for
Personnel Services (PS), Maintenance and Other Operating Expenses (MOOE),
Financial Expenses (FinEx) and Capital Outlays (CO), for the implementation
of the DFA’s programs, projects and activities.
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Passport Revolving Fund
The DFA Passport Revolving Fund (PRF) was created pursuant to Section 86 of
RA No. 7157, known as the Foreign Service Act of 1991.
Under Section 17 of RA No. 8239, also known as the Philippine Passport Act of
1996, the Department may charge a service fee of not more than Two Hundred
Fifty Pesos (₱250.00) for passport application in consideration of special
circumstances, waiver or issuance of passport beyond regular office hours. This
fee is also known as “expedite fee”. The service fees received shall constitute
the PRF which will be used to improve the passport and consular services, and
other services of the DFA, except for travel and transportation expenses.
Collections accruing to the PRF are deposited in a separate account with an

Authorized Government Depository Bank (AGDB). Any unexpended balance
at the end of the year is retained for use in the succeeding year.
Trust Fund
a. Fees and other collections of Bids and Awards Committee
The DFA Bids and Awards Committee (BAC) was created pursuant to
Section 11 of RA No. 9184, otherwise known as Government Procurement
Reform Act. Pursuant to paragraph 6.2 of DBM Budget Circular No.
20014-5A dated October 07, 2005, the proceeds from the sale of bid
documents, fees from contractor/supplier registry, fees charged for copies of
minutes of opening of bids, BAC resolutions and other BAC documents,
protest fees, liquidated damages and proceeds from the forfeitures of
bid/performance securities shall be kept in trust account.
b. End of Service/Death Benefits of Overseas Filipino Workers (OFWs)
One of the mandates of the Office of the Undersecretary for Migrant

Workers Affairs (OUMWA) is to assist the OFWs and their beneficiaries in
facilitating the receipt of the Death Benefits or End of Service Benefits from
their employers. These benefits are either received by the
OFWs/beneficiaries directly from the employers or may be received through
Posts. Where the benefits are received through Posts, the concerned FSPs
shall remit the amount through bank transfer from the account of the
Embassy or Consulate to the OUMWA account maintained at PNB Manila.
Upon receipt of the advice from PNB of the remittances, OUMWA notifies
the OFW/beneficiaries of the receipt of benefits and directs them to prepare
the requirements needed for its release. The release of benefits is being
approved by OUMWA and payment is either made through bank transfer to
the account of the OFW/beneficiaries or through Manager’s Check payable
to the OFW/beneficiaries.
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c. Other Trust Receipts
This includes transfer of funds to cover Donations and Financial Assistance

to various beneficiaries for the fulfilment of a particular obligation.
3.3 Receipts and Income
The receipts of Notice of Cash Allocation (NCA) are recorded in the Regular
Agency Books and recognized as revenues from subsidies received from the
National Government.
3.4 Cash and Cash Equivalents
Cash and Cash Equivalents comprise cash on hand and cash in bank, savings
and current accounts, which are maintained for depository purposes.
Petty Cash Fund (PCF) is maintained by duly designated Petty Cash Fund
Custodians to pay petty or miscellaneous expenses which cannot be paid
conveniently by checks or LDDAP-ADA. The PCF shall be closed only upon
termination, separation, retirement or dismissal of the Petty Cash Fund
Custodian (PCFC), who in turn shall refund any balance to close his/her cash
accountability.
3.5 Inventories
Inventory is measured at cost upon initial recognition. To the extent that the
inventory was received through non-exchange transactions (for no cost or for a
nominal cost), the cost is its fair value at the date of acquisition. Inventories are
recognized as an expense when deployed for utilization or consumption in the
ordinary course of operations of the DFA.
3.6 Semi-Expendable Property
Tangible items below the capitalization threshold of ₱50,000.00 are accounted

as semi-expendable property. The following accounting policies apply:
● semi-expendable property which were recognized as PPE are

reclassified to the affected accounts;
● these tangible items shall be recognized as expenses upon issuance to the

end-user.
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3.7 Property, Plant and Equipment
Recognition
An item is recognized as Property, Plant and Equipment (PPE), if it meets the

characteristics and recognition criteria as a PPE.
Measurement at Recognition
An item recognized as PPE is measured at cost, which 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.
When an asset is acquired in a non-exchange transaction for nil or nominal

consideration, the asset is initially measured at its fair value and depreciated
accordingly.
Measurement after Recognition
After recognition, all PPE are stated at cost less accumulated depreciation and
impairment losses. 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 expense in surplus or deficit as incurred.
Depreciation
Each part of an item of PPE with a cost that is significant in relation to the total
cost of the item is depreciated separately. The depreciation charge for each
period is recognized as expense unless it is included in the cost of another asset.
Initial Recognition of Depreciation
Depreciation of an asset begins when it is available for use such as when it is in

the location and condition necessary for it to be capable of operating in the
manner intended by management.
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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

more appropriate for agency operation.
Estimated Useful Life
For depreciation purposes, the Department uses the NGAS and GAM range as
reference for the estimated useful life of its depreciable properties, the basis of
which is its previous experience on similar assets. It also uses a residual value
equivalent to at least five percent (5%) of the PPE cost.
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 amount.
Derecognition
The DFA derecognizes items of PPE and/or any significant part of an asset upon
disposal or when no future economic benefits or service potential is expected
from its continued use. Any gain or loss arising from derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) in included in the surplus or deficit when the asset is
derecognized.
3.8 Intangible Assets
Recognition and Measurement
Intangible assets are recognized when the items are identifiable non-monetary
assets without physical substance; it is probable that the expected future
economic benefits or service potential that are attributable to the assets will flow
to the entity; and the cost or fair value of the assets can be measured reliably.
Intangible assets acquired separately are initially recognized at cost.
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Recognition of an Expense
Expenditures on an intangible item are recognized as an expense when it is

incurred unless it forms part of the cost of an intangible asset that meets the
recognition criteria of an intangible asset.
Subsequent Measurement
The useful life of the intangible assets is assessed as either finite or indefinite.
Intangible assets with a finite life is amortized over its useful life. The straight
line method is adopted in the amortization of the expected pattern of
consumption of the expected future economic benefits or service potential. An
intangible asset with indefinite useful life is not amortized. The Department
amortizes its Intangible Assets over five (5) years.
3.9 Provisions
Contingent Liabilities
The DFA does not recognize any contingent liability, but discloses details of
contingencies in the notes to the financial statements, unless the possibility of an
outflow of resources embodying economic benefits or service potential is
remote.
Contingent Assets
The DFA does not recognize a contingent asset, but discloses details of a
possible asset whose existence is contingent on the occurrence or non-
occurrence of one or more uncertain future events not wholly within the control
of the department in the notes to the financial statements.
3.10 Changes in Accounting Policies and Estimates
The DFA recognizes the effects of changes in accounting policy retrospectively.

The effects of changes in accounting policy are applied prospectively if
retrospective application is impractical.
The DFA recognizes the effects of changes in accounting estimates

prospectively by including in surplus or deficit.
The DFA corrects material prior period errors retrospectively 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
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● if the error occurred before the earliest prior period presented, restating the
opening balances of assets, liabilities and net assets/equity for the earliest
prior period presented.
3.11 Foreign Currency Transactions
Transactions in foreign currencies are recorded in Philippine Pesos. The peso

equivalent of US dollar is based on the parity rate issued by the DFA for a given
quarter based on the Bangko Sentral ng Pilipinas (BSP)’s average rate of
exchange for the three months preceding the given quarter, while the US dollar
equivalent of other foreign currencies are converted based on the prescribed
local bank rate of exchange at the time of the transaction/s.
Exchange rates differences arising from the settlement of obligations or from

converting/recording monetary items at rates different from those at which they
were initially converted/recorded, are recognized as income or expenses
(gain/loss on Forex) in the period in which they arise.
3.12 Transfers from other Government Entities
Revenues from non-exchange transactions with other government entities are

measured at fair value and recognized upon obtaining control of the asset if the
transfer is free from conditions, if the economic benefits or service potential
related to the asset will flow to the DFA and if such benefits can be measured
reliably.
3.13 Revenue, Receipts and Collections
Measurement of Revenue
Revenue is measured at the fair value of the consideration received or

receivable.
Rendering of Services
The DFA recognizes revenue from rendering consular services and from other
charges.
1. Home Office and Consular Offices
All collections accruing to the General Fund are remitted to the Bureau of
Treasury and collections accruing to the PRF are remitted to the official
depository bank of PRF.
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2. Foreign Service Posts
All collections are recorded as income of the General Fund and are
deposited in authorized depository banks abroad and remain in the custody
of Posts as the source of cash for their working funds subject to the ceiling
as provided in their Allotments. Collections are reported to the Bureau of
Treasury and accounted as constructive remittance of income to BTR. The
collections retained abroad by FSPs are recognized as automatic utilization
thereof, subject to the Special Provisions provided in the GAA.
3. Honorary Consulates
A maximum of 50 percent of the income collected is automatically retained

by them for their administrative expenses. The remaining 50 percent of
their collections are remitted to the supervising FSP and recorded as income
of the General Fund.
3.14 Budget Information
The annual budget is prepared on a cash basis and is published in the DBM
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
comparable basis. The SCBAA was presented showing the original and final
budget and the actual amounts on comparable basis to the budget. The actual
amounts presented in the SCBAA are based on the Financial Accountability
Reports as of December 31, 2022, attached as Annex A.
Balances under not yet Due and Demandable
Due to different compliance deadlines of COA in closing of the Book of

Accounts and DBM in closing the Book of Obligations, there was no
opportunity to reverse unutilized obligations. These balances resulted from
existing or ongoing projects and cover commitments/obligations due to a
contractor or external creditor.
Disbursement Utilization
Disbursements of the Department are recorded in the e-NGAS ideally within the
same month of transaction. However, transactions from Satellite Offices,
Regional Consular Offices and Foreign Service Posts are recorded at a later date
awaiting receipt of the physical reports and supporting documents transmitted
through diplomatic pouch and official couriers.
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3.15 Related Party Transactions
The DFA has no related party transactions or any ability to exercise significant
influence over any entity.
Key Management Personnel
The key management personnel of the Department as of May 8, 2023, are as

follows:
Position/
Name of Personnel Office
Designation
1 Enrique A. Manalo Office of the Secretary Secretary
2 Antonio A. Morales Office of the Undersecretary Undersecretary
for Administration
3 Carlos D. Sorreta Office of the Undersecretary Acting
for Multilateral Affairs and Undersecretary
International Economic
Relations
4 Eduardo Jose A. De Office of the Undersecretary Acting
Vega for Migrant Workers Affairs Undersecretary
5 Ma. Theresa P. Lazaro Office of the Undersecretary Undersecretary
for Bilateral Relations and
ASEAN Affairs
6 Jesus S. Domingo Office of the Undersecretary Acting
for Civilian Security and Undersecretary
Consular Affairs
3.16 Employee Benefits
The DFA employees are members of the Government Service Insurance System
(GSIS), which provides life and retirement insurance coverage.
The DFA recognizes the undiscounted amount of short-term employee benefits

like salaries, wages, bonuses and allowances as expense, and as a liability after
deducting the amount paid.
The DFA also recognizes expenses for accumulating compensated absences

when these are paid (commuted or paid as terminal leave benefits). Unused
entitlements that have accumulated at the reporting date are not recognized as
expense. Non-accumulating compensated absences, like special leave
privileges, are not recognized.
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4. Changes in Accounting Policy
For CY 2022, DFA adopted the implementation of Section 23 of the General

Provisions of RA No. 11639 also known as the General Appropriations Act for FY
2022 relative to the increase in the PPE capitalization threshold from ₱15,000.00 to
₱50,000.00. The new accounting policy was promulgated through COA Circular No.
2022-004 dated May 31, 2022. The change in accounting policy has been applied
retrospectively. The cumulative effect is summarized on the next page:
Effect on Property, Plant and Equipment Amount (₱)

Decrease in Property, Plant and Equipment (255,482,225.91)
Decrease in Accumulated Depreciation 138,863,353.15
Decrease in Carrying Amount (116,618,872.76)
Effect on Net Assets/Equity Amount (₱)

Increase in Semi-Expendable Expenses (216,255,082.92)
Decrease in Depreciation Expenses 127,825,332.21
Decrease in Net Assets/Equity (88,429,750.71)
Effect on Surplus/Deficit Amount (₱)

Increase in Semi-Expendable Expenses (39,227,142.99)
Decrease in Depreciation Expenses 11,038,020.94
Decrease in Surplus/Deficit (28,189,122.05)
5. Prior Period Errors
The CY 2021 prior period errors had been decreased to ₱3,437,785,832.89 due to
correction of errors and recognition of unrecorded prior years’ income and expenses.
Detailed as follows:
Particulars Amount (₱)

Reversion of unutilized NCAs transferred to COs (17,018,047.53)
Erroneous entries in recording trust fund (227,208.91)
Cancellation of checks issued in prior years (1,017,008.70)
Unrecorded grant of cash advance and liquidation 201,011.01
Issuance of Billings 4,368,491.21
Liquidation of fund transferred to other agencies (2,535,047.00)
Overstatement in Tokyo PE's Land (25,778,632,911.23)
Unrecorded PPE acquisition, depreciation, disposal and
correction of entries (1,659,641.81)
Correction of entries in Accounts Payable 941,183.29
Unrecorded income, gains and subsidies 100,264,111.19
Unrecorded expenses, losses and subsidies-others (386,903,433.67)
Reclassification from Others to prior period errors (8,445.26)
Total Decrease in CY 2021 Prior Period Errors (26,082,226,947.41)
Add: Reported CY 2021 Prior Period Errors 29,520,012,780.30
Restated CY 2021 Prior Period Errors 3,437,785,832.89
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Supporting Information to the Statement of Financial Position
6. Cash and Cash Equivalents
Cash and Cash Equivalents consist of the following:
2021
2022
Accounts As Restated
Amount (₱)
Cash on Hand 21,809,752.72 409,363,637.79
Cash in Bank - Local Currency 1,035,155,142.76 638,035,476.88
Cash in Bank - Foreign Currency 11,148,089,656.34 8,957,909,996.58
Cash - Treasury/Agency Deposit, Trust 2,307,900.55 1,427,900.55
Total Cash and Cash Equivalents 12,207,362,452.37 10,006,737,011.80
6.1 Cash on Hand consists of the following:
2021
2022
Amount (₱)
Cash - Collecting Officer 20,264,253.72 407,810,100.35
Petty Cash Fund 1,545,499.00 1,553,537.44
Total 21,809,752.72 409,363,637.79
● The balance of Cash – Collecting Officers amounting to ₱20,264,253.72

were undeposited collections as at year-end and was due for deposit on the
first banking day of the ensuing year.
● The Petty Cash balance amounting to ₱1,545,499.00 were cash advances for
petty expenses which were still outstanding as at year-end.
6.2 Cash in Bank-Local Currency consists of the following:
2021
2022
Amount (₱)
Cash in Bank-Local Currency,
Current Account 973,506,016.03 576,390,780.60
Cash in Bank-Local Currency,
Savings Account 61,649,126.73 61,644,696.28
Total 1,035,155,142.76 638,035,476.88
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● Cash in Bank-Local Currency, Current Account refers to the cash in bank
maintained by the HO, PRF and RCOs to cover their operational
requirements and prior years’ balances retained as working funds. The
decrease of ₱120,263,414.85 in the CY 2021 balance resulted from the
restatement due to unrecorded payment of various expenses.
● The Cash in Bank – Local Currency, Savings Account is maintained by

the Passport Revolving Fund. The decrease of ₱4,531.35 in the CY 2021
balance resulted from the restatement due to unrecorded remittance of
interest income.
6.3 Cash in Bank-Foreign Currency consists of the following:
2021
2022
Amount (₱)
Cash in Bank-Foreign Currency,
Current Account 10,809,541,363.42 8,595,453,523.83
Cash in Bank-Foreign Currency,
Savings Account 338,548,292.92 362,456,472.75
Total 11,148,089,656.34 8,957,909,996.58
● Cash in Bank-Foreign Currency, Current Accounts are the cash in bank

retained at the FSPs as their working funds. This account includes the
balances of the International Commitment Fund (ICF) and other funds,
including trust receipts and prior years’ balances. The decrease of
₱849,864,198.64 in the CY 2021 balance resulted from the restatement was
due to unrecorded payment of various expenses at FSPs.
● The Cash in Bank-Foreign Currency, Savings Accounts are foreign

currency deposits maintained by the FSPs. The decrease of ₱11,289,971.10
in the CY 2021 balance resulted from the restatement was due to unrecorded
payment of various expenses at FSPs.
6.4 Cash Treasury/Agency Deposit, Trust represents trust receipts/collections

remitted to the Bureau of Treasury. The decrease of ₱1,408,985.01 in the CY
2021 balance resulted from the restatement was due to the adjustment on
unutilized fund transfers for the 2021 and 2019 International Humanitarian Law
celebration, and 2017 ASEAN Meeting.
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7. Receivables
Receivables account consists of the following:
2021
2022
Amount (₱)
Inter-Agency Receivables 739,242,529.69 786,389,224.74
Intra-Agency Receivables 1,075,815,121.28 1,307,773,549.51
Due from Other Receivables 134,313,284.52 168,088,745.62
Total Receivables 1,949,370,935.49 2,262,251,519.87
7.1 Inter-Agency Receivables
2021
2022
Amount (₱)
Due from National Government
Agencies (NGAs) 556,555,143.79 603,703,794.30
Due from Government-Owned
and/or Controlled Operations
(GOCCs) 182,578,697.15 182,576,741.69
Due from Local Government
Units (LGUs) 108,688.75 108,688.75
Total 739,242,529.69 786,389,224.74
● The Due from NGAs account represents receivables from NGAs such as
DOLE, DTI, COMELEC, DOF, DPWH and other government agencies.
Included in the amount are the payment of the FSPs for their shares in rental,
electricity, courier, telephone and fax charges and other authorized
disbursements paid by the FSPs. The decrease of ₱197,608,127.57 in the CY
2021 resulted from the restatement was due to the unrecorded adjustment of
unutilized balance from Procurement Service.
● The Due from GOCCs account pertains to bills of the DFA against GOCCs,
such as BSP, LBP, DBP, OWWA, GSIS, HDMF and SSS, for share in
expenses like rental of office space, utilities, telephone, telefax and courier
charges paid in advance by the FSPs.
● The Due from LGUs account pertains to the amount of advances for
purchase of goods/services as authorized by law, fund transfers to the LGUs
for implementation of projects, share from LGUs income and other
receivables.
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7.2 Intra-Agency Receivables
2021
2022
Amount (₱)
Due from Regional Offices 299,028,660.80 299,028,660.80
Due from Operating Units 765,175,580.01 987,386,739.60
Due from Other Funds 11,610,880.47 21,358,149.11
Total 1,075,815,121.28 1,307,773,549.51
● The Due from Regional Offices account represents the transfer to Regional
Consular Office (RCO). It also includes the reclassification of prior years’
transfers and/or receipts of funds between FSPs which require further
analysis and adjustments to the correct accounts.
● The Due from Operating Units account pertains to transfers of funds and/or
receipt of funds between the Home Office and the FSPs and DFA COs. The
decrease of ₱97,150.32 in the CY 2021 balance resulted from the restatement
due to unrecorded intra-agency fund transfers.
● The Due from Other Funds account represents receivables between the
Regular Agency Fund and the Passport Revolving Fund. The increase of
₱10,072,247.21 in the CY 2021 balance resulted from the restatement due to
the unrecorded set-up of receivables from Regular Agency Fund.
7.3 Other Receivables
2021
2022
Amount (₱)
Receivables - Disallowances/
Charges 36,145,768.75 36,272,779.55
Due from Officers & Employees 80,915,265.76 86,971,150.53
Other Receivables 17,252,250.01 44,844,815.54
Total 134,313,284.52 168,088,745.62
The aging of Other Receivables as of December 31, 2022 are as follows:
Not yet Past Due (₱)

Accounts Total (₱)
Due (₱) ≤30 days 31-60 days >60 days
Receivables -
Disallowances/
Charges 36,145,768.75 - - - 36,145,768.75
Due from Officers
& Employees 80,915,265.76 2,295.78 1,094,136.12 243,745.54 79,575,088.32
Other Receivables 17,252,250.01 - - - 17,252,250.01
Total 134,313,284.52 2,295.78 1,094,136.12 243,745.54 132,973,107.08
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● The account Receivables–Disallowances/Charges represents the
disallowances/charges due from personnel and entities which have become
final and executory.
● The account Due from Officers and Employees are claims from the DFA’s
officers and employees for overpayments, cash shortages, personal expenses,
loss of assets, and other bills issued by DFA. The decrease of ₱925,399.74 in
the CY 2021 balance resulted from the restatement due to the unrecorded
collection of receivables from officers and employees.
● The Other Receivables account represents the claims which cannot be

classified to a specific receivable account. The significant decrease in the
account was resulted from the collection from the payment for the cost of e-
passport issued to Manila Economic and Cultural Office (MECO) by the
Office of Consular Affairs (OCA) for the period January to December 2020.
In addition, the increase of ₱6,060,831.49 in the CY 2021 balance resulted
from the restatement due to unrecorded other receivables.
8. Inventories
2021
2022
Particulars As Restated
Amount (₱)
Inventory Held for Consumption
Carrying Amount, January 1 380,080,225.21 397,068,001.72
Additions/Acquisitions during the year 3,521,713,920.03 2,165,404,214.19
Expensed during the year except
write-down (3,437,630,683.49) (2,181,169,679.69)
Adjustment - (1,222,311.01)
Carrying Amount, December 31 464,163,461.75 380,080,225.21
8.1 Inventory Held for Consumption
2021
2022
Amount (₱)
Office Supplies Inventory 58,419,532.26 58,113,618.85
Accountable Forms, Plates and
Stickers Inventory 341,069,153.35 301,204,066.82
Non-Accountable Forms Inventory 9,073,506.89 9,073,506.89
Medical, Dental and Laboratory
Supplies Inventory 13,039.64 13,039.64
Other Supplies and Materials
Inventory 55,588,229.61 11,675,993.01
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2021
2022
Amount (₱)
Total Inventory Held for
Consumption 464,163,461.75 380,080,225.21
● The Office Supplies and the Medical, Dental and Laboratory Supplies
Inventory represent the value of unutilized supplies in inventory/stock. The
CY 2021 Office Supplies account was decreased by ₱948,883.52 due to
unrecorded issuance of office supplies.
8.2 Accountable Forms Inventory account balance consists of:
2021
2022
Amount (₱)
Authentication Certificate 6,638,010.00 6,638,010.00
Apostille Certificate 22,656,465.11 51,820,065.82
FA Forms (OR) 5,728,521.22 6,694,634.18
Blank Passports 174,289,540.82 174,289,540.82
Postage Stamps 182,819.00 182,819.00
Visa Stickers 131,573,797.20 61,578,997.00
Total 341,069,153.35 301,204,066.82
● The decrease of ₱74,133,201.09 in the CY 2021 balance resulted from the

restatement due to the unrecorded issuances of accountable forms.
8.3 Non-Accountable Forms Inventory account balance consists of:
2022 2021
Particulars
Amount (₱)
Inventory Sticker-GF No. 71(A) 157,500.00 157,500.00
Apostille Application Form 2,309,250.00 2,309,250.00
Authentication Application Form 796,980.00 796,980.00
Authentication Slip 879,555.00 879,555.00
Note Verbale 1,391,661.89 1,391,661.89
Passport Application Form 3,538,560.00 3,538,560.00
Total 9,073,506.89 9,073,506.89
8.4 The Other Supplies and Materials Inventory represents purchased/acquired

supplies and materials other than office supplies and accountable forms still in
inventory/stock. The decrease of ₱804,925.28 in the CY 2021 balance resulted
from the restatement due to the unrecorded issuances.
29
9. Semi-Expendable Properties
Semi-Expendable Properties consists of the following:
2021
2022
Amount (₱)
Semi-Expendable Office Equipment 4,129,815.57 2,260,730.90
Semi-Expendable Information and
Communications Technology
Equipment 4,505,525.33 1,480,939.33
Semi-Expendable Communications
Equipment 751,721.85 336,489.65
Semi-Expendable Other Machinery and
Equipment 762,133.70 352,499.37
Semi-Expendable Furniture and Fixtures 7,567,242.92 2,713,843.05
Semi-Expendable Books 55,461.14 38,730.14
Total Semi-Expendable Properties 17,771,900.51 7,183,232.44
● The decrease of ₱17,340,948.37 in the CY 2021 balance resulted from the

restatement due to the unrecorded issuances.
10. Property, Plant and Equipment
Details of the Property, Plant and Equipment and its movements as of December 31, 2022
are as follows:
Land & Land Buildings & Machinery & Transportation Furnitures, Leased Assets & Heritage Assets Construction in
Particulars Total
Improvements Other Structures Equipment Equipment Fixtures & Books Improvements & Other PPE Progress (CIP)
Carrying Amount,
Jan. 1, 2022 33,776,638,880.57 3,407,182,659.58 433,153,849.28 201,831,339.48 79,943,149.76 900,052,682.31 6,780,085.41 2,568,688,226.39 41,374,270,872.78
Prior Year
Adjustments (25,778,632,911.23) 972,987,813.52 94,329,700.43 17,449,581.35 84,919,843.30 - (118,750.00) (759,415,121.19) (25,368,479,843.82)
Change in
Accounting Policy - - (68,136,396.58) - (48,461,885.46) - (20,590.72) - (116,618,872.76)
Carrying Amount,
Jan. 1, 2022
(As Restated) 7,998,005,969.34 4,380,170,473.10 459,347,153.13 219,280,920.83 116,401,107.60 900,052,682.31 6,640,744.69 1,809,273,105.20 15,889,172,156.20
Additions/
Acquisitions 3,461,803.43 219,887,083.98 53,097,089.07 55,830,122.37 20,261,975.38 141,144,709.00 - 682,193,352.19 1,175,876,135.42
Disposal - - (339,872.26) (750,768.24) (56,252.29) - - - (1,146,892.79)
Depreciation - (195,399,660.43) (64,616,316.54) (39,891,520.55) (16,049,508.57) (13,392,905.26) (68,054.76) - (329,417,966.11)
Adjustments - (0.01) (562,515.72) - (3,711,755.82) - - (287,199,724.29) (291,473,995.84)
Impairment Loss - - (150,126.80) - (53,435.17) - - - (203,561.97)
Carrying Amount,
Dec. 31, 2022 8,001,467,772.77 4,404,657,896.64 446,775,410.88 234,468,754.41 116,792,131.13 1,027,804,486.05 6,572,689.93 2,204,266,733.10 16,442,805,874.91
Gross Cost 8,001,467,772.77 6,785,482,971.34 1,306,981,665.76 673,483,800.52 271,614,482.73 1,159,167,137.72 11,036,760.77 2,204,266,733.10 20,413,501,324.71
Less: Accumulated
Depreciation - 2,380,825,074.70 860,206,254.88 439,015,046.11 154,822,351.60 131,362,651.67 4,464,070.84 - 3,970,695,449.80
Carrying Amount,
Dec. 31, 2022 8,001,467,772.77 4,404,657,896.64 446,775,410.88 234,468,754.41 116,792,131.13 1,027,804,486.05 6,572,689.93 2,204,266,733.10 16,442,805,874.91
30
10.1 Land and Other Land Improvements consists of the following:
2021
2022
Amount (₱)
Land 7,996,472,720.70 7,996,472,720.70
Other Land Improvements 4,995,052.07 1,533,248.64
Total 8,001,467,772.77 7,998,005,969.34
● The decrease of ₱25,778,632,911.23 in the CY 2021 Land balance resulted

from the restatement due to the erroneous foreign exchange translation of the
value of parcels of land in Tokyo, Japan.
● The additions to Other Land Improvements account amounting to

₱3,461,803.43 was a completed project from the Construction in Progress
(CIP)–Land Improvements account, pertaining to the Landscaping of the
Embassy Chancery Garden of The Hague PE that was completed on
December 30, 2022.
10.2 Buildings and Other Structures consists of the following:
2021
2022
Amount (₱)
Buildings 4,227,016,666.02 4,075,866,899.79
Other Structures 177,641,230.62 304,303,573.31
Total 4,404,657,896.64 4,380,170,473.10
● The additions to Buildings and Other structures accounts amounting to

₱219,887,083.98 refers to construction projects that were completed in CY
2022. Detailed as follows:
FSPs Completed Projects Amount (₱)

Agana PCG Major renovation of the Official Residence
of the Consular General of the Philippines 10,925,569.98
Berne PE Major renovation of three (3) kitchens at the
Ground Floor, 1st Floor, and 2nd Floor of
the Official Chancery; Renovation of two
(2) kitchen located at the 3rd floor of the
Embassy 4,170,121.15
Canberra PE Construction of Pedestrian Entrance and
Walkway with Security Features at the
Embassy 5,912,790.82
Hague PE Major renovation in the Embassy Chancery 192,710,675.84
Jakarta PM Reinstallation of the new water machine
and water pump at the Chancery 1,181,032.94
Kuala Lumpur PE Construction of consular holding are at 656,127.82
31
FSPs Completed Projects Amount (₱)
Embassy No. 1, Chankat Kia Peng, Kuala
Lumpur
Phnom Penh PE Major renovation in the Embassy Chancery 1,537,088.00
New York PM Conversion of the 2nd room toilet into small
laundry room of the Official Residence 1,929,235.00
Sydney PCG Replacement of defective swing gate at the
Philippine House (Official Residence);
Repair and replacement of damaged
downspout pipes and wall skirting/lining
achitaves of the covered Barbeque and Patio 864,442.43
Total 219,887,083.98
10.3 Machinery and Equipment consists of the following:
2021
2022
Amount (₱)
Office Equipment 121,791,038.02 128,908,410.46
ICT Equipment 255,902,825.79 271,943,415.36
Communication Equipment 58,789,026.96 47,206,669.90
Disaster Response and Rescue
Equipment 409,429.16 433,131.96
Medical Equipment 11,557.38 11,557.38
Technical and Scientific Equipment 15,962.64 15,962.64
Other Equipment 9,855,570.93 10,828,005.43
Total 446,775,410.88 459,347,153.13
● Details on the additions/acquisitions during CY 2022 are as follows:
Accounts Acquisitions Amount (₱)

Office Equipment Safe, cash registers, air-conditioners,
refrigerator/freezer, shredders, queuing
system, electronic board, air purifiers, and
other office equipment. 3,987,013.77
ICT Equipment Laptops, desktop computers, printers,
scanners, tablets, and other ICT equipment. 34,616,743.83
Communication CCTV/Security system, cameras, satellite
Equipment phones, lights and sound system, intercom
system, projector, alarm system, display
channel and other communication
equipment. 14,017,237.84
Other Equipment Lawn Moyer and Clothes Dryer 476,093.63
Total 53,097,089.07
● The increase of ₱26,193,303.85 in the CY 2021 Machinery and Equipment

balance resulted from the restatement due to unrecorded purchases, net of the
change in accounting policy amounting to ₱68,136,396.58.
32
10.4 Transportation Equipment
2021
2022
Account As Restated
Amount (₱)
Motor Vehicles 234,468,754.41 219,280,920.83
FSPs Acquisitions Amount (₱)

Beirut PE E-200 Sedan, Mercedes Benz 2,873,937.00
Chicago PCG 2023 Hybrid Toyota Sienna XLE 2,915,971.66
Chongqing PCG E 300L Mercedes Benz 3,838,553.69
Dili PE 4x4 Diesel 3.0 Automatic Toyota Fortuner 3,003,638.40
Geneva WTO PM BMW X5 xDrive40i, Metallic Black 4,099,237.95
Honolulu PCG 2022 Subaru (SUV-4WD) 260HP 2,635,590.86
Islamabad PE 2022 Automatic Hyundai Staria 2,134,238.91
Madrid PE Mercedes Benz, Class V 220d Avantgarde 3,622,789.74
Manado PCG 2022 Toyota Hi-ace 2.8 M/T 2,123,251.76
Manama PE Black Toyota Highlander HEV 2,495,881.82
Nagoya PCG Metallic Black E450 Mercedes Benz 3,768,145.91
Moscow PE Phytonic Blue Metallic BMW 4,397,975.95
Nairobi PE Toyota Land Cruiser Prado 2.8L 3,754,811.20
Osaka PCG 2021 BMW 530e M Sport edition 2,559,758.53
Singapore PE Volkswagen Sharan 2.0 TSI 1,984,766.78
Prague PE 2022 Mercedes Benz MB E300 Sedan 2,942,127.06
Toronto PCG 2022 Mercedes Benz E450 4Matic Sedan 3,674,791.40
Tel Aviv PE 2022 Chevrolet Traverse High Country 3,004,653.75
Total 55,830,122.37
● The increase of ₱17,449,581.35 in the CY 2021 Transportation Equipment

balance was resulted from the restatement due to unrecorded purchases.
10.5 Furniture, Fixtures and Books consists of the following:
2021
2022
Amount (₱)
Furniture and Fixtures 116,524,671.93 116,133,648.40
Books 267,459.20 267,459.20
Total 116,792,131.13 116,401,107.60
33
Home Office/
Acquisitions Amount (₱)
FSPs
Abu Dhabi PE Reception Desk including Drawer 66,075.62
Amman PE Conference table and Sofa Set 346,224.24
Ankara PE Conference table with Energy Data Transfer
Box 112,133.22
Baghdad PE Dining table set with Dining Chairs 268,464.00
Berne PE Showcase Board (Public Announcement
Board) 113,632.16
Brunei PE Roof Eaves and Sliding Partition in the
Multipurpose Hall/Consular Annex 651,400.56
Chongqing PCG Dr. Jose P. Rizal Half Bust 250,000.00
Dhaka PE Set office tables, revolving chairs, set
conference table and chairs, set coffee table
with chairs, set sofa with table, set glass
display cabinet, executive chair, filing
cabinet 1,259,112.94
Hongkong PCG Chimney Wood Whilpool 33,878.78
Hanoi PE Incense wood table, Oak TV Stand, 15
working desks 1,519,966.14
Home Office 100 sets Coat of Arms to Embassies,
Consulates and Missions 8,500,000.00
Houston PCG 2 Coat of Arms, made of solid brass with
wording (Consulate General of the
Philippines) 208,000.00
Kuwait PE 3 fireproof safe; 4 automatic paper
shredders; 2 Refrigerator; 1 front load
washing machine; 2 free standing
dishwashers 1,357,145.75
Manama PE 2 Conference/Meeting Table with Chairs 58,676.06
Nagoya PCG Storage Cabinet Note System Board; and 2
Air Purifier with Humidifier and
Dehumidifier 679,088.70
New York PCG Sofa-Weather Grey - Blend Down Cushion;
1 Area Rug-Ganges River; 2 Area Rug-
Farahan Saraouk; 1 Area Rug-Persian
Bakhtiari; and Curtains and Draperies 3,058,463.85
Oslo PE 1 kitchen table and 8 pieces of chairs 98,733.41
Prague PE Reception table; center table for sofa; 10
office desks; sofa set; 18 office chairs; 10
Executive Chair; 5 Bookshelf; 9 Cabinet
Storage 1,242,540.11
Rabat PE Embassy Outdoor Seal (Coat of Arms) 32,792.50
Sydney PCG Guardall Fire Proof/Resistant Filing
Cabinet 88,940.37
Vientiane PE Sofa set, Gray 218,169.94
Xiamen PCG Executive table, set 98,537.03
Total 20,261,975.38
34
● The increase of ₱36,457,957.84 in the CY 2021 Furniture, Fixtures and
Books balance resulted from the restatement due to unrecorded purchases,
net of the change in accounting policy amounting to ₱48,461,885.46.
10.6 Leased Assets and Improvements consists of the following:
2021
2022
Amount (₱)
Leased Assets, Land 653,228,338.52 597,482,898.75
Leased Assets, Buildings and
Other Structures 307,482,712.59 227,242,534.22
Other Leased Assets 2,029,904.62 2,029,904.62
Leased Assets Improvements,
Land 26,510.00 26,510.00
Leased Asset Improvements,
Buildings and Other Structures 64,521,667.92 72,633,606.72
Other Leased Assets
Improvements 515,352.40 637,228.00
Total 1,027,804,486.05 900,052,682.31
Accounts Additions Amount (₱)

Leased Assets, Lease payments for DFA-OCA Land at
Land ASEANA Business Park for CY 2022 55,745,439.77
Leased Assets, Lease payments for DFA-OCA Building at
Buildings and ASEANA Business Park for CY 2022
Other amounting to ₱22,769,264.13 and cost of
Structures replacement of air conditioning system at
DFS-OCA ASEANA building amounting to
₱62,630,005.10 completed in December
2022. 85,399,269.23
Total 141,144,709.00
10.7 Heritage Assets and Other PPE consists of the following:
2021
2022
Amount (₱)
Works of Arts and Archeological
Specimens 360,961.52 360,961.52
Other PPE 6,211,728.41 6,279,783.17
Total 6,572,689.93 6,640,744.69
35
● The decrease of ₱139,340.72 in the CY 2021 Other PPE balance was resulted
from the restatement due to unrecorded adjustments and the change in
accounting policy amounting to ₱20,590.72.
10.8 Construction in Progress (CIP) consists of the following:
2021
2022
Amount (₱)
CIP - Land Improvements - 2,211,159.95
CIP - Buildings and Other
Structures 2,173,175,518.75 1,802,788,613.25
CIP - Leased Assets 31,091,214.35 4,273,332.00
Total 2,204,266,733.10 1,809,273,105.20
● Details of the additions during CY 2022 are as follows:
Home Office/
Additions Amount (₱)
FSPs
Brasilia PE Progress billings for the roof replacement of
the official residence 12,037,921.16
Home Office Progress billings for the Replacement of
DFA-OCA ASEANA Building Escalators
and Elevators 31,907,545.60
Progress billing for the DFA Main Building
Waterproofing and Plumbing works 733,008.38
Progress Billing for the rehabilitation of
DFA Main building air-conditioning system 6,431,278.10
Progress billing for the Rehabilitation and
Retrofitting of DFA Auditorium 6,514,013.05
Progress billings for the Replacement of air
conditioning system at DFA-OCA
ASEANA building 62,630,005.10
Progress billing for the Rehabilitation of
DFA-OCA ASEANA building fire and
alarm system 608,112.75
Nairobi PE Progress billing for the renovation of
Chancery 4,474,607.70
New York PM Progress billing for the supply, delivery and
installation of Bird Deterrent for the Façade
of the official residence of the permanent
representative of the RP to the UN 1,671,550.00
Paris PE Progress billing for the Waterproofing of
Embassy terrace 960,974.78
Progress billing for the Waterproofing of
the flooring of the porch in the posterior
area of the Chancery 543,551.36
Phnom Penh PE Progress billing for the renovation works at 1,537,088.00
36
Home Office/
Additions Amount (₱)
FSPs
the Chancery
Port Moresby PE Progress billing for the design and
construction of brick-wall perimeter fence 10,245,351.89
Seoul PE Purchase of new elevator unit 1,555,115.50
Progress billing for the Renovation of
Consular Section 10,943,405.37
Progress billing for the Delivery and
Installation of electric type sliding gate 839,257.59
Singapore PE Progress billings for the Chancery
Redevelopment / Construction project 442,933,410.08
The Hague PE Progress billings for the Embassy Chancery
renovation works 72,154,013.53
Landscaping of the Embassy Chancery
Garden 5,192,705.15
Tokyo PE Progress billing for the replacement of wall
paper, repainting of walls and ceilings and
replacement and installation of LED lights
at the Embassy 8,280,437.10
Total 682,193,352.19
● The decrease of ₱759,415,121.19 in the CY 2021 CIP balance was resulted

from the restatement due to the reclassification of completed projects.
11. Intangible Assets
2022 2021
Particulars
Amount (₱)
Carrying Amount, January 1 25,520,076.30 37,869,508.32
Additions/Acquisitions 1,716,874.75 829,259.85
Amortization (9,820,502.14) (13,178,691.87)
Gross Cost 98,802,535.15 97,085,660.40
Accumulated Amortization (81,386,086.24) (71,565,584.10)
● The ending balance of Intangible Assets amounting to ₱17,416,448.91 refers to

various Computer Software applications/licenses such as Enterprise Content
Management System (ECMS), Human Resource Information System, Enterprise
Resource Planning System (ERPS), Next Generation Intrusion Prevention System
(NGPIS) Server Security, Adobe Acrobat Professional License and other
Microsoft office software applications/licenses.
37
12. Other Assets
2021
2022
Amount (₱)
Advances 286,567,549.36 114,265,231.78
Prepayments 524,921,119.13 386,565,711.90
Deposits 338,350,307.80 325,010,438.96
Other Assets 8,039,129.66 8,039,129.66
Total Other Assets 1,157,878,105.95 833,880,512.30
12.1 The Advances consists of the following:
2021
2022
Amount (₱)
Advances for Operating Expenses 182,596,964.37 59,417,244.96
Advances to Special Disbursing
15,367,114.73 9,154,593.17
Officer
Advances to Officers and
88,603,470.26 45,693,393.65
Employees
Total Advances 286,567,549.36 114,265,231.78
● The significant increase in the Advances for Operating Expenses was

primarily due to the cash advances for the working fund of Beirut PE with a
balance at year-end amounting to ₱49,718,251.53, advances for operating
expenses of Damascus PE with a net increase at year-end amounting to
₱4,258,358.14, adjustments for the unrecorded cash advances with an
aggregate amount of ₱16,906,787.15. Moreover, the decrease of
₱44,725,887.16 in CY 2021 balance resulted from the restatement due to the
unrecorded liquidation of various cash advances.
● The decrease of ₱18,942,147.83 in the CY 2021 balance of Advances to

Special Disbursing Officers resulted from the restatement due to the
unrecorded liquidation of various cash advances.
● The decrease of ₱47,449,759.84 in CY 2021 balance of Advances to Officers

and Employees resulted from the restatement due to the unrecorded
liquidation of various cash advances.
12.2 The Prepayments includes the following:
2021
2022
Amount (₱)
Advances to Contractors 97,922,397.79 17,446,895.70
38
2021
2022
Amount (₱)
Prepaid Rent 393,751,859.23 359,687,825.21
Prepaid Insurance 5,018,214.37 4,466,936.70
Other Prepayments 28,228,647.74 4,964,054.29
Total Prepayments 524,921,119.13 386,565,711.90
● The significant increase in the Advances to Contractors was primarily due to

the advances made in October 2022 for the redevelopment/construction of
the Chancery at Singapore PE amounting to ₱78,164,719.42. In addition, the
decrease in the CY 2021 balance of ₱53,820,779.28 resulted from the
restatement due to the unrecorded liquidation of various cash advances.
● The significant increase in the Other Prepayments was due to the advance
payments made in CY 2022 for the: 1) Sedan car for official use of the
Ambassador of Tokyo PE amounting to ₱7,321,527.52; 2) Toyota Hi-ace
Van Wagon GL for official use of Tokyo PE amounting to ₱1,582,655.69;
and 3) Land and Buildings for the official residence of Assistant Secretary of
DFA Mindanao amounting to ₱1,785,000.00 and ₱12,201,000.00,
respectively.
● The decrease of ₱1,509,564.04 in the CY 2021 balance of Prepaid Rent

resulted from the restatement due to the unrecorded expired portion of the
prepayments.
● The decrease of ₱180,916.17 in the CY 2021 balance of Prepaid Insurance

resulted from the restatement due to the unrecorded fidelity bond/renewal of
insurance premiums.
12.3 The Deposits consists of the following:
2021
2022
Amount (₱)
Guaranty Deposits 301,364,516.60 300,287,242.73
Other Deposits 36,985,791.20 24,723,196.23
Total Deposits 338,350,307.80 325,010,438.96
● The decrease of ₱5,931,082.29 in the CY 2021 Guaranty Deposits balance

resulted from the restatement due to the erroneous recording of the account.
● The significant increase in the Other Deposits was due to the purchase of
Toyota Pro Ace Verso in December 2022, and the decrease of ₱9,725,616.31
in the CY 2021 balance resulted from the restatement due to the erroneous
recording of the account.
39
12.4 Other Assets
2021
2022
Account As Restated
Amount (₱)
Other Assets 8,039,129.66 8,039,129.66
● The decrease of ₱1,957,224.46 in the CY 2021 Other Assets balance resulted

from the restatement due to the unrecorded adjustment of the account.
13. Financial Liabilities
13.1 Current Payables
2021
2022
Amount (₱)
Accounts Payable 1,144,690,620.31 1,420,884,616.95
Due to Officers and Employees 320,528,724.87 395,181,805.56
Total Current Payables 1,465,219,345.18 1,816,066,422.51
● Accounts Payable account pertains to obligations/indebtedness to

contractors/ suppliers arising from the purchase of goods and/or use of
services in connection with the DFA’s operation. The CY 2021 balance was
increased by ₱764,878,210.58 due to unrecorded set-up of payables on
progress billings of ongoing projects.
● Due to Officers and Employees account includes trust deposits withheld

from the terminal leave benefits of employees, unpaid benefits, refund of
deductions in excess of what is required, and other obligations due to the
officers and employees of the DFA. The increase of ₱130,443,554.89 in the
CY 2021 balance resulted from the restatement due to unrecorded
transactions of the account.
13.2 Non-Current Payables
● The Loans Payable – Foreign account balance of ₱96,057,203.92 represents

Foreign Currency Deposit Unit (FCDU) loans granted by the Philippine
National Bank, London.
40
14. Inter-Agency Payables
The details of the Inter-Agency Payables are as follows:
2021
2022
Amount (₱)
Due to BIR 83,863,806.12 79,002,301.79
Due to GSIS 20,204,512.73 25,993,708.69
Due to Pag-IBIG 1,415,186.25 1,396,284.52
Due to PhilHealth 2,912,488.97 2,784,720.86
Due to NGAs 98,281,680.36 47,148,018.91
Due to GOCCs 2,740,247,037.85 2,740,247,037.85
Total Inter-Agency Payables 2,946,924,712.28 2,896,572,072.62
● The DFA created a team to reconcile the Inter-Agency Payables pertaining to

prior years’ outstanding balances.
● The increase of ₱3,204.83 CY 2021 Due to BIR balance resulted from the
restatement due to the unrecorded transactions of the account.
● The increase of ₱1,017,008.70 in the CY 2021 Due to GSIS balance resulted from
the restatement due to the unrecorded transactions of the account.
● The significant increase in the Due to NGAs account was due to the receipt of
funds from COMELEC and Overseas Workers Welfare Administration,
amounting to ₱15,157,398.00, and the decrease of ₱1,186,207.17 in the CY 2021
balance resulted from the restatement due to unrecorded adjustment of the
account.
15. Intra-Agency Payables
The details of the Intra-Agency Payables are as follows:
2021
2022
Amount (₱)
Due to Central Office 5,250,570.29 5,250,570.29
Due to Regional Offices 40,348.03 40,348.03
Due to Operating Units 231,019,099.07 194,801,614.74
Due to Other Funds 656,119.50 656,119.50
Total Intra-Agency Payables 236,966,136.89 200,748,652.56
● The Due to Central Office account pertain to prior year’s payable to the Passport
Revolving Fund.
41
● The Due to Regional Offices account represents prior year’s disbursements
advanced by the DFA COs which are chargeable to the Home Office Funds.
● The Due to Operating Units account pertains to transfers of funds and/or receipt
of funds between the Home Office and the FSPs and DFA COs.
● The Due to Other Funds account represents receivables between the Regular
Agency Fund and the Passport Revolving Fund. The decrease of ₱261,634.41 in
the account resulted from the restatement due to unrecorded adjustment of the
account in CY 2021.
16. Trust Liabilities
The details of Trust Liabilities are as follows:
2021
2022
Amount (₱)
Trust Liabilities 287,052,171.25 320,446,811.94
Guaranty/Security Deposits Payable 4,686,503.11 4,686,503.11
Total 291,738,674.36 325,133,315.05
● The Trust Liabilities account pertain to End-of-Service Benefits held in trust by

the Department payable to OFWs or their beneficiaries as well as collections
made by the Bids and Awards Committee. The decrease of ₱99,820,797.06 in the
CY 2021 balance resulted from the restatement due to unrecorded payments of
End of Service Benefits.
● The Guaranty/Security Deposits Payable account pertains to refundable bid and

performance securities payable to contractors.
17. Deferred Credits / Unearned Revenue
2021
2022
Account As Restated
Amount (₱)
Other Deferred Credits 98,250.00 98,250.00
● The Other Deferred Credits account balance pertain to prior year beginning
balances under Passport Revolving Fund.
● The decrease of ₱13,793.18 in the CY 2021 Other Unearned Revenue balance

resulted from the restatement due to the unrecorded adjustments of the account.
42
18. Other Payables
● Other Payables account balance of ₱680,312,753.77 includes deductions from the

salaries and allowances of DFA Personnel other than the mandatory deductions
which are subject for remittance like DFA Provident Fund Contribution and
Loans, One Appeal Plan, DFA Multi-Purpose Cooperative Inc. (DFAMCI) loans
payment, financial support and others. Moreover, the increase of ₱8,918,300.32 in
the CY 2021 balance resulted from the restatement due to unrecorded transactions
of the account.
Supporting Information to the Statement of Financial Performance
19. Service and Business Income
2021
2022
Amount (₱)
Service Income
Verification and Authentication Fees 158,127,843.17 145,762,055.86
Passport and Visa Fees 5,859,521,081.98 4,624,302,286.41
Other Service Income 1,372,529,877.47 875,357,714.70
Sub-total 7,390,178,802.62 5,645,422,056.97
Business Income
Examination Fees 323,064.77 422,435.66
Interest Income 5,521,348.94 4,899,225.40
Sub-total 5,844,413.71 5,321,661.06
Total Service and Business
Income 7,396,023,216.33 5,650,743,718.03
● The increase of ₱18,411,363.91 in the CY 2021 Service and Business Income

balance resulted from the restatement due to the unrecorded collections of
income, net of unrecorded adjustment of interest income amounting to
₱186,528.74.
20. Other Non-Operating Income
● Miscellaneous Income in the amount of ₱82,017,276.40 pertains to collections

received for the share in Maintenance and Other Operating Expenses of attached
agencies abroad, MOOE share of DFAMPCI in various COs and other
miscellaneous income. Moreover, the increase of ₱25,939,082.52 in the CY 2021
balance resulted from the restatement due to the unrecorded rental share of other
agencies and VAT refund from various FSPs.
43
21. Personnel Services
21.1 Salaries and Wages
2021
2022
Amount (₱)
Salaries and Wages-Regular 1,841,525,076.98 1,664,511,177.90
Salaries and Wages-
Casual/Contractual 566,033,044.24 718,088,786.13
Total Salaries and Wages 2,407,558,121.22 2,382,599,964.03
● The decrease of ₱68,854,483.75 in the CY 2021 Salaries and Wages balance

resulted from the restatement due to the unrecorded transactions of the
accounts.
21.2 Other Compensation
2021
2022
Amount (₱)
Personal Economic Relief
Allowance (PERA) 42,751,891.09 46,158,477.37
Representation Allowance (RA) 13,192,433.30 12,477,558.07
Transportation Allowance (TA) 9,336,432.19 8,717,829.66
Clothing/Uniform Allowance 10,380,474.34 10,695,148.31
Subsistence Allowance 23,200.00 17,650.00
Laundry Allowance 3,286.32 2,406.75
Productivity Incentive Allowance - 2,500.00
Overseas Allowance 5,273,284,988.92 4,925,380,353.77
Hazard Pay 639,553.39 10,648,348.66
Overtime and Night Pay 29,059,902.16 3,461,829.07
Year End Bonus 160,360,121.03 159,626,734.45
Cash Gift 15,926,500.00 16,373,750.00
Mid-Year Bonus 161,400,093.10 160,492,316.73
Other Bonuses and Allowances 99,637,858.92 122,425,168.75
Total Other Compensation 5,815,996,734.76 5,476,480,071.59
● The significant decrease in the Hazard Pay was due to the lesser incurrence
in CY 2022 of additional hazard pay benefit for services rendered by
employees during ECQ and MECQ COVID-19 restriction status which was
greatly implemented during CY 2021.
● The significant increase in the Overtime and Night Pay was due to the
increased number of overtime hours rendered by DFA regular, casual and
contractual employees during CY 2022.
44
● The increase of ₱607,587,823.10 in the CY 2021 Other Compensation
balance resulted from the unrecorded transactions of the accounts, net of
unrecorded adjustments amounting to ₱122,237.94.
21.3 Personnel Benefits Contributions
2022 2021
Particulars
Amount (₱)
Retirement and Life Insurance
Premiums 235,801,397.91 218,949,222.85
Pag-IBIG Contributions 3,789,200.00 3,948,200.00
PhilHealth Contributions 30,396,522.94 20,355,292.63
Employees Compensation Insurance
Premiums 3,928,600.00 4,058,500.00
Total Benefits Contributions 273,915,720.85 247,311,215.48
● The increase in the PhilHealth Contributions was due to the increase in the
premium contribution in CY 2022 in compliance with the Universal Health
Care Act.
21.4 Other Personnel Benefits
2021
2022
Amount (₱)
Terminal Leave Benefits 232,702,006.22 328,080,556.51
Other Personnel Benefits 221,896,313.92 208,059,636.36
Total Other Personnel Benefits 454,598,320.14 536,140,192.87
● The increase of ₱74,782,620.01 in the CY 2021 Terminal Leave Benefits

balance resulted from the restatement due to the unrecorded transactions of
the account, while the CY 2021 Other Personal Benefits balance was
decreased by ₱27,444.30 due to unrecorded adjustments.
22. Maintenance and Other Operating Expenses
22.1 Traveling Expenses
2021
2022
Amount (₱)
Traveling Expenses-Local 2,544,410.46 1,278,882.27
Traveling Expenses-Foreign 593,832,578.79 474,247,090.15
Total Traveling Expenses 596,376,989.25 475,525,972.42
45
● The increase in the Traveling Expenses was due to the increased travel
activities of DFA officials and employees following the declaration of a
lenient COVID-19 restriction.
● Moreover, the increase of ₱91,553,103.62 in the CY 2021 Traveling

Expenses balance resulted from the restatement due to the unrecorded
transactions of the accounts.
22.2 Training and Scholarship Expenses
2021
2022
Amount (₱)
Training Expenses 67,148,675.26 51,627,747.32
Scholarship Grants/Expenses 28,190,361.31 8,160,685.38
Total 95,339,036.57 59,788,432.70
● The increase in the Training and Scholarship Expenses was due to additional
support for the Philippine Studies Program to various universities such as the
La Trobe University (Melbourne PCG), University of Hawai'i Foundation
(Honolulu PCG), University of Namur (Brussels PE), University of Michigan
(Chicago PCG), Thammasat University (Bangkok PE) and Busan University
of Foreign Studies (Seoul PE); and grant for Masters of Laws and Masters in
Business Administration for officials and employees.
● Moreover, the increase of ₱18,239,784.24 in the CY 2021 Training and

Scholarship Expenses resulted from the restatement due to the unrecorded
transactions of the accounts.
22.3 Supplies and Materials Expenses
2021
2022
Amount (₱)
Office Supplies Expenses 56,269,046.28 54,894,978.79
Accountable Forms Expenses 3,331,040,019.47 2,080,886,980.52
Drugs and Medicines Expenses 236,364.27 16,505,649.00
Medical, Dental and Laboratory
Supplies Expenses - 17,789.54
Fuel, Oil and Lubricants Expenses 33,493,617.16 23,100,970.74
Textbooks and Instructional
Materials Expenses 37,893.44 310,589.64
Semi-Expendable Machinery and
Equipment Expenses 26,420,101.42 36,036,589.97
Semi-Expendable Furniture, 16,458,093.51 35,077,841.05
46
2021
2022
Amount (₱)
Fixtures and Books Expenses
Other Supplies and Materials
Expenses 50,321,617.74 45,387,720.38
Total 3,514,276,753.29 2,292,219,109.63
● The significant increase in the Accountable Forms Expenses was due to the
increased passport applications/renewals, as a result of the decline in travel
restrictions abroad due to COVID-19 pandemic.
● The significant decrease in the Drugs and Medicines Expenses was due to the
decreased purchases of COVID-19 related expenses, as a result of the
improved COVID-19 conditions in CY 2022.
● The increase in the Fuel, Oil and Lubricants Expenses was primarily
attributed to the increased travel activities of DFA officials and employees
following the declaration of lenient COVID-19 restrictions throughout the
country.
● The increase of ₱361,565,582.68 in the CY 2021 Supplies and Materials

Expenses balance resulted from the restatement due to the unrecorded
transactions of the account.
22.4 Utility Expenses
2021
2022
Amount (₱)
Water Expenses 22,647,797.19 21,803,370.05
Electricity Expenses 113,651,525.55 97,757,258.97
Gas/Heating Expenses 8,251,503.81 6,220,524.57
Total Utility Expenses 144,550,826.55 125,781,153.59
● The increase of ₱20,404,821.51 in the CY 2021 Utility Expenses balance

account.
22.5 Communication Expenses
2021
2022
Amount (₱)
Postage and Courier Services 84,406,542.50 97,679,922.27
Telephone Expenses 42,369,194.35 44,794,737.29
47
2021
2022
Amount (₱)
Internet Subscriptions Expenses 49,475,689.65 37,393,599.20
Cable, Satellite, Telegraph and
Radio Expenses 6,682,038.57 5,844,920.66
Total 182,933,465.07 185,713,179.42
● The increase of ₱21,172,837.30 in the CY 2021 Communication Expenses

the account.
22.6 Confidential, Intelligence and Extraordinary Expenses
2021
2022
Amount (₱)
Confidential Expenses 10,000,000.00 50,029,725.83
Extraordinary and Miscellaneous
Expenses 5,989,100.00 6,106,370.00
Total 15,989,100.00 56,136,095.83
● The increase of ₱18,367,725.83 in the CY 2021 Confidential and

Extraordinary Expenses balance resulted from the restatement due to
unrecorded disbursements of the account.
22.7 Professional Services
2021
2022
Amount (₱)
Legal Services 179,891,329.68 149,731,163.99
Auditing Services 424,764.10 414,817.99
Consultancy Services 8,046,521.13 9,540,596.27
Other Professional Services 200,108,400.92 183,132,195.40
Total Professional Services 388,471,015.83 342,818,773.65
● The increase of ₱125,243,925.49 in the CY 2021 Professional Services

balance resulted from the restatement due to the unrecorded
payments/transactions of the accounts.
48
22.8 General Services
2021
2022
Amount (₱)
Environment/Sanitary Services 6,898,995.01 8,758,605.07
Janitorial Services 96,870,436.57 102,386,663.42
Security Services 226,230,882.03 210,074,433.58
Other General Services 60,399,564.87 60,263,964.26
Total General Services 390,399,878.48 381,483,666.33
● The increase of ₱43,640,330.82 in the CY 2021 General Services balance

accounts.
22.9 Repairs and Maintenance
2021
2022
Amount (₱)
Repairs and Maintenance- Buildings
and Other Structures 61,458,411.46 122,922,907.84
Repairs and Maintenance-
Machinery and Equipment 3,313,786.92 8,654,576.35
Repairs and Maintenance-
Transportation Equipment 23,138,652.42 19,547,731.04
Repairs and Maintenance-Furniture
and Fixtures 129,613.38 340,688.98
Repairs and Maintenance-Leased
Assets 569,600.00 -
Repairs and Maintenance- Semi-
Expendable Machinery and
Equipment 224,565.68 243,921.55
Repairs and Maintenance- Semi-
Expendable Furniture, Fixtures
and Books 44,217.60 -
Total Repairs & Maintenance 88,878,847.46 151,709,825.76
● DFA had reduced repairs and maintenance expenses in CY 2022 for various
PPE. Likewise, the increase of ₱66,059,609.77 in CY 2021 balance resulted
from the restatement due to unrecorded transactions of the accounts, net of
unrecorded adjustments amounting to ₱18,426.55.
49
22.10 Taxes, Insurance Premiums and Other Fees
2021
2022
Amount (₱)
Taxes, Duties and Licenses 10,844,199.64 12,582,961.77
Fidelity Bond Premiums 4,335,740.06 3,192,019.46
Insurance Expenses 38,516,729.68 37,872,248.42
Total 53,696,669.38 53,647,229.65
● The increase of ₱6,471,196.04 in the CY 2021 Taxes and Insurance Expenses

the accounts.
22.11 Other MOOE
2021
2022
Amount (₱)
Advertising Expenses 609,858.67 564,350.24
Printing and Publication Expenses 4,438,140.18 4,863,554.17
Representation Expenses 248,225,019.94 201,790,728.93
Transportation and Delivery
Expenses 1,004,694.41 1,156,870.23
Rent/Lease Expenses 729,051,735.58 741,480,829.43
Membership Dues and
Contributions to Organizations 2,080,787,419.35 2,207,296,266.88
Subscription Expenses 14,995,067.99 49,217,840.39
Donations 16,927,146.48 58,746,971.08
Other Maintenance and Operating
Expenses 1,481,321.63 5,341,245.94
Total Other MOOE 3,097,520,404.23 3,270,458,657.29
● The significant decrease in the Subscription Expenses was due to the reduced
subscriptions in CY 2022 for various ICT software licenses which are availed
in CY 2021.
● The significant decrease in the Donations was due to the reduced grant of
financial assistance/donations in CY 2022 as compared to CY 2021 in which
an amount of ₱48,280,000.00 was incurred for donation to the World Health
Organization (WHO) for COVAX facility.
● Moreover, the increase of ₱143,139,660.83 in the CY 2021 Other MOOE

the accounts.
50
23. Financial Expenses
2021
2022
Amount (₱)
Other Financial Charges 45,785,135.42 35,334,482.58
● The increase in the Other Financial Charges was due to the remittance of
remaining funds of COMELEC to their LBP account, various payment of bank
charges for the transfer of funds to cover replenishment of working funds, and
increase of ₱1,540,189.85 in CY 2021 balance as a result of the restatement due
to unrecorded adjustment of the account.
24. Non-Cash Expenses
24.1 Depreciation
2021
2022
Amount (₱)
Depreciation-Buildings and Other
Structures 195,399,660.43 191,647,350.64
Depreciation-Machinery and
Equipment 64,616,316.54 57,206,353.03
Depreciation-Transportation
Equipment 39,891,520.55 35,407,633.69
Depreciation-Furniture, Fixtures and
Books 16,049,508.57 12,243,895.26
Depreciation-Leased Assets 5,159,090.86 4,509,834.71
Depreciation-Leased Assets
Improvements 8,233,814.40 8,233,814.40
Depreciation-Other PPE 68,054.76 14,938.03
Total Depreciation 329,417,966.11 309,263,819.76
● The increase in the Depreciation-Buildings and Other Structures was due to

the reclassified completed CIP projects to Buildings and Other Structures
account in CY 2022.
● The increase of ₱5,677,623.46 in CY 2021 balance resulted from the

restatement due to unrecorded adjustment of depreciation, net of the change
in accounting policy amounting to ₱11,038,020.94.
51
24.2 Amortization
2022 2021
Particulars
Amount (₱)
Amortization – Intangible Assets 9,820,502.14 13,178,691.87
● The decrease in the amount was attributed from the decrease in the balance of
computer software subject for amortization.
24.3 Impairment Loss
2021
2022
Amount (₱)
Impairment Loss – PPE 203,561.97 1,137,932.51
● The increase of ₱1,068,386.11 in CY 2021 balance resulted from the

restatement due to unrecorded impairment losses.
25. Net Financial Assistance/Subsidy
2021
2022
Amount (₱)
Subsidy from National Government 20,393,725,474.79 17,600,080,637.90
Less: Financial Assistance/Subsidy to
NGAs, LGUs, GOCCs, NGOs/ POs 618,206,135.87 870,551,436.10
Net Financial Assistance/Subsidy 19,775,519,338.92 16,729,529,201.80
● The increase of ₱1,014,786,331.34 in the CY 2021 Subsidy from National

Government balance resulted from the restatement due to the unrecorded
adjustment of the account, while the increase of ₱248,082,501.07 in the CY 2021
Financial Assistance balance resulted from the restatement due to the unrecorded
transactions of the subsidies-others account.
26. Non-Operating Income, Gain or Losses
26.1 Non-Operating Income/Gain
2021
2022
Amount (₱)
Gain on Foreign Exchange
(FOREX) 1,297,619,708.00 952,369,825.08
52
2021
2022
Amount (₱)
Gain on Sale of PPE 752,566.53 10,620,628.11
Other Gains 116,539.66 5,668.24
Total Non-Operating Income 1,298,488,814.19 962,996,121.43
● The significant increase in the Gain on FOREX was due to the adjustments
on foreign exchange rate for taking up the balance of local currency and US
dollar working fund.
● The significant decrease in the Gain on Sale of PPE account was due to the
reduced disposal of PPE in CY 2022.
● The significant increase in the Other Gains account was due to the increase in
proceeds from trade-in in exchange for the purchase of a new official vehicle
and collection of other income for CY 2022.
● The increase of ₱413,999,671.42 in the CY 2021 Non-Operating Income

balance resulted from the restatement due to the unrecorded gains on FOREX
and sale of PPE.
26.2 Non-Operating Losses
2021
2022
Amount (₱)
Loss on Foreign Exchange
608,063,384.45 309,441,661.52
(FOREX)
Loss on Sale of PPE 150,672.45 141,589.47
Loss on Sale of Assets - 57,540.49
Total Non-Operating Losses 608,214,056.90 309,640,791.48
● The significant increase in the Loss on FOREX was due to the adjustments
on foreign exchange rate for taking up the balance of local currency and US
dollar working fund.
● There was no recorded Loss on Sale of Assets in CY 2022 since all proceeds
from the sale of assets were in excess of the assessed value.
● The increase of ₱13,631,378.36 in the CY 2021 Non-Operating Income

balance resulted from the restatement due to the unrecorded losses on
FOREX and sale of PPE.
53
Supporting Information to the Statement of Cash Flows
27. Cash Inflows from Operating Activities
27.1 Receipt of Notice of Cash Allocation
2021
2022
Amount (₱)
Receipt of Regular NCA 18,586,547,136.00 15,680,822,109.00
Constructive Receipt of NCA for TRA 573,822,013.42 432,514,913.07
Total Receipt of NCA 19,160,369,149.42 16,113,337,022.07
27.2 Collection of Income/Revenues
2021
2022
Amount (₱)
Collection of Business Income 323,064.77 411,451.96
Collection of Non-Operating
Income 64,656,094.38 30,418,979.80
Collection of Other Income 8,289.00 -
Collection of Prior Year’s Income - 28,684,601.67
Collection of Service Income 7,435,518,137.12 5,736,036,466.83
Collection of Share of MOOE of
Attached Government Agencies 28,803,531.26 26,159,282.96
Receipt of cash for the account of
PRF, Provident Fund and other
Related Funds 186,929,732.24 79,454,728.04
Total Collection of Income 7,716,238,848.77 5,901,165,511.26
27.3 Receipt of Assistance and Subsidy from Other NGAs, LGUs and GOCCs
2021
2022
Amount (₱)
Receipt of Funds for Specific
Purpose 1,135,811,104.36 111,208,390.67
27.4 Collection of Receivables
2022 2021
Particulars
Amount (₱)
Collection of Receivables 7,215,675.19 4,892,559.22
Collection of Other Receivables 28,294,496.11 24,998,735.41
Collection from Audit 89,191.52 89,392.99
54
2022 2021
Particulars
Amount (₱)
Disallowances
Refund of Cash Shortages 17,740.66 10,436.06
Total Collection of Receivables 35,617,103.48 29,991,123.68
27.5 Receipt of Inter-Agency Fund Transfers
2022 2021
Particulars
Amount (₱)
Refund of Inter-Agency Receivables 3,359,026.49 10,628,043.74
Collection from Inter-Agency
Receivables 6,935,245.89 8,010,901.87
Total 10,294,272.38 18,638,945.61
27.6 Receipt of Intra-Agency Fund Transfers
2022 2021
Particulars
Amount (₱)
Receipt of Intra-Agency Fund Transfer 13,805,542,395.14 12,818,263,306.57
Receipt of Funds for Other Intra-
Agency Transactions - 14,878,076.15
Total 13,805,542,395.14 12,833,141,382.72
27.7 Trust Receipts
2022 2021
Particulars
Amount (₱)
Receipt of Guaranty/Customer's
Deposits/Bail Bonds 9,621,650.32 15,208,857.78
27.8 Other Receipts
2021
2022
Amount (₱)
Constructive remittance of income
and receipt of Cash
Disbursement Ceiling 3,134,260,253.30 3,581,110,423.11
Collection of Overpayment of
Personal Services Deducted –
Unbilled 1,059,822.94 171,956.92
Expenses – Unbilled 9,434,178.50 16,870,522.26
Collection of Overpayment of - 4,269,602.26
55
2021
2022
Amount (₱)
Expenses for Prior Years –
Unbilled
MOOE – Billed 2,265,054.27 1,832,726.55
Deposit of Refund of Excess Cash
Advances for ATN - 27,953.91
Other Deposit and Overdeposit by
Accountable Officers 1,007.89 14,454.00
Refund of excess Cash Advance 23,506,438.99 14,882,313.11
Receipt of End-of-Service Benefits
(ESB) from Foreign Service
Posts (FSPs) 249,859,709.37 381,752,106.46
Interest Income of PRF and other
related accounts for remittance
to the Bureau of Treasury 386,200.32 422,471.80
Total Other Receipts 3,420,772,665.58 4,001,354,530.38
27.9 Adjustments
2022 2021
Particulars
Amount (₱)
Billing for unpaid bills - (590,799.15)
Cancellation of Checks issued
during the year 29,066,440.57 9,284,674.12
Cancellation of Lost/Stale checks
issued in prior years 5,626,918.19 713,617.57
Closing of the Petty Cash Fund due
to the Retirement/Transfer of the
Petty Cash Custodian (675,447.14) (146,270.93)
Liquidation of Cash Advances by
the Disbursing Officer (18,459,278.64) 553,422.89
Total Adjustments 15,558,632.98 9,814,644.50
28. Cash Outflows from Operating Activities
28.1 Remittance to National Treasury
2021
2022
Amount (₱)
Deposit of Undeposited Service 151,050.00 173,575.91
56
2021
2022
Amount (₱)
Income Collection of Prior Years
Deposits of Collection from Service,
Business, and Other Income to
the Bureau of the Treasury (BTr) 117,869.20 41,150.52
Total Remittance 268,919.20 214,726.43
28.2 Payment of Expenses
2021
2022
Amount (₱)
Payment of Allowances, Bonus and
Other Compensation/Benefits 6,536,504,440.27 6,275,994,229.47
Payment of Salaries and Wages thru
Bank 1,247,715,830.68 1,254,548,927.21
Payment / Reimbursement of Traveling
Expenses 549,332,152.17 418,323,010.68
Payment for Communication Expenses 167,208,455.17 158,491,101.25
Payment for Other Maintenance and
Other Operating Expenses 3,009,084,889.86 3,092,831,669.22
Payment for Professional and General
Services 695,195,503.01 618,175,770.12
Payment for Repairs and Maintenance –
Buildings and Other Structures 50,647,216.73 77,485,870.57
Payment for Repairs and Maintenance –
Machineries and Equipment 2,732,295.51 7,551,969.29
Payment for Repairs and Maintenance
of Furniture and Fixtures 173,027.41 496,179.09
Payment for Repairs and Maintenance
of Transportation Equipment 22,020,733.71 18,301,856.59
Payment for Training and Scholarship
Expenses 81,908,178.21 50,065,347.01
Payment for Utility Expenses 129,222,558.11 111,402,776.23
Payment of Taxes, Insurance Premiums
and Other fees 38,757,655.06 45,383,988.50
Payment/Reimbursement for
Miscellaneous, Extraordinary/
Confidential Expenses 4,404,400.00 3,647,370.00
Replenishment of Expenses from Petty
Cash Fund 4,422,877.28 5,342,957.45
Payment of financial expenses 45,664,735.56 36,839,165.03
Total Payment of Expenses 12,584,994,948.74 12,174,882,187.71
57
28.3 Purchase of Inventories
2021
2022
Amount (₱)
Purchase of inventory held for
consumption 3,010,779,101.98 2,018,823,872.12
Payment for the procurement made
to Procurement Service, APO
Production Unit, Bangko Sentral
ng Pilipinas and other
government agencies 9,547,185.28 3,396,445.04
Purchase of Semi-expendable
Expenses 37,933,090.32 19,233,114.63
Total Purchase of Inventories 3,058,259,377.58 2,041,453,431.79
28.4 Grant of Cash Advances
2022 2021
Particulars
Amount (₱)
Advances for operating expenses 21,782,374.46 284,198,869.10
Advances to SDO 561,233.62 88,036,014.96
Advances to officers and employees 291,250,059.61 68,673,536.37
Grant of Cash Advance for travel 1,336,092.26 177,815.84
Grant of Cash to Petty Cash Fund
Custodian - (53,772.32)
Total Grant of Cash Advances 314,929,759.95 441,032,463.95
28.5 Prepayments
2022 2021
Particulars
Amount (₱)
Prepaid Insurance 3,280,019.15 3,482,303.66
Prepaid Rent 40,709,556.57 44,733,681.31
Other Prepayments 25,113,211.29 175,848.69
Advances to Contractors 104,415,601.91 46,777,646.62
Total Prepayments 173,518,388.92 95,169,480.28
28.6 Payment of Deposits
2022 2021
Particulars
Amount (₱)
Guaranty Deposit 10,986,604.78 11,415,700.25
Other Deposit 8,012,644.67 -
58
2022 2021
Particulars
Amount (₱)
Total Payment of Deposits 18,999,249.45 11,415,700.25
28.7 Payment of Accounts Payable
2021
2022
Amount (₱)
Payment for payables 1,348,488,228.89 1,228,974,448.88
Payment of accounts payable - 4,540.50
Total Payment of Payables 1,348,488,228.89 1,228,978,989.38
28.8 Remittance of Personnel Benefit Contributions and Mandatory

Deductions
2022 2021
Particulars
Amount (₱)
Remittance of taxes withheld not
covered by TRA 446,196.39 384,666.90
Remittance of Taxes thru Tax
Remittance Advice (TRA) 327,950,395.29 277,084,338.60
Remittance to GSIS/Pag-
IBIG/PhilHealth 595,804,996.06 541,431,552.22
Remittance of other payables 112,767,974.69 97,950,769.95
Total Remittance 1,036,969,562.43 916,851,327.67
28.9 Grant of Financial Assistance/Subsidy
2021
2022
Amount (₱)
Grant of Financial Assistance/
Subsidies and Donations 568,604,535.40 883,730,666.55
28.10 Release of Inter-Agency Fund Transfers (IAFT)
2021
2022
Amount (₱)
Release of funds to NGAs, GOCCs,
LGUs for the implementation of
projects 580,000.00 1,000,000.00
Payment for Inter-Agency Payable 355,828,917.02 178,066,363.92
Total Release of IAFTs 356,408,917.02 179,066,363.92
59
28.11 Release of Intra-Agency Fund Transfer
2021
2022
Amount (₱)
Payment for Intra-Agency Payable 14,319,181,584.35 12,720,184,024.70
28.12 Other Disbursements
2021
2022
Amount (₱)
Deposit of Collection from Service,
Business, and Other Income to
AGDB of FSPs and PRF - 78,918.41
Deposit of Collections for the account
of PRF, Provident Fund, OP and
other Related Funds 28,024,450.00 6,133,242.60
Deposit of Collection for the account of
the Office of the President 29,558,800.00 14,403,700.00
Payment for Inter-Agency Transactions 1,566,766.05 7,692,138.16
Payment for Trust and Other Liabilities 97,734,513.24 57,398,258.96
Refund of Over deduction from
Employees/Supplier 929,355.14 10,232,919.37
Remittance of Taxes thru TRA 245,880,967.44 155,415,710.44
Remittance of Taxes Withheld from
Suppliers, Contractors and Other
Creditors 1,655,864.02 2,935,007.25
Replacement of Stale/Cancelled Check 2,035,233.23 362,226.65
Refund of Guaranty/Security Deposit - 19,740.78
Release of End-of-Service Benefits to
authorized beneficiaries 295,800,201.81 529,959,249.01
Total Other Disbursements 703,186,150.93 784,631,111.63
28.13 Reversal of Unutilized NCA
2022 2021
Particulars
Amount (₱)
Unutilized NCA - Prior Years 22,283,860.79 9,909,364.73
Unutilized NCA - Current Year 2,053,819,891.37 2,081,297,735.94
Total Reversal of Unutilized NCA 2,076,103,752.16 2,091,207,100.67
60
28.14 Adjustments
2021
2022
Amount (₱)
Adjustment for cash accounts 39,151,020.00 28,673,707.91
Adjustment for overrecording of
collections 39,150.00 -
Adjustment due to dishonored checks 7,000.00 -
Adjustment for underrecoding of
expenses 0.14 561.88
Adjustment on foreign exchange rate (1,062,834,546.19) (88,162,921.34)
Closing of Cash - Tax Remittance
Advice and Cash - Constructive Income
Remittance Accounts with Debit
Balance 3,134,260,253.30 3,581,125,287.14
Closing of Cash Tax Remittance
Advice and Constructive Income
Remittance Accounts 3,716,473,398.77 1,892,785,177.41
Issuance of Bills for the overpayment of
maintenance and other operating
expenses and capital outlay. 90.00 -
Reclassification of Subsidiary Ledger
Accounts 218,866,451.50 184,009,481.26
Other Adjustments 29,862.76 5,940.54
Total Adjustments 6,045,992,680.28 5,598,437,234.80
29. Cash Inflows from Investing Activities
2022 2021
Particulars
Amount (₱)
Proceeds from Sale/Disposal of PPE 1,481,737.15 1,055,892.14
30. Cash Outflows from Investing Activities
2022 2021
Particulars
Amount (₱)
Purchase of Buildings 12,621,058.74 82,852.48
Purchase of Office Equipment 8,503,167.51 8,995,837.27
Purchase of ICT Equipment 45,286,873.82 45,335,585.15
Purchase of Communication Equipment 21,463,427.71 6,616,885.70
Purchase of Motor Vehicles 61,998,462.01 30,426,186.36
Purchase of Furniture, Fixtures & Books 51,678,135.35 17,563,880.57
Purchase of other Machinery & Equipment 1,486,902.99 888,074.66
Purchase of Other PPE - 650,819.32
61
2022 2021
Particulars
Amount (₱)
Payment for Leased Assets-Land 28,899,358.92 -
Payment for Leased Assets-Buildings and
11,519,374.24 -
Other Structures
Payment for Accounts Payable for
143,451,833.22 66,682,613.21
progress/final billing of contractor
Payment for first/final progress billing of
117,867,469.20 8,842,095.33
Contractor
Payment of Accounts Payable for PPE - 517,675.10
Total Purchase/Construction of PPE 504,776,063.71 186,602,505.15
Supporting Information to the Statement of Changes in Net Assets/Equity
31. Adjustment of Net Revenue recognized directly in Net Assets/Equity
The amount of ₱6,850,733,652.07 consists of the balances of the Department’s

collections remitted to the Bureau of Treasury amounting to ₱3,716,473,398.77, and
the constructive remittance of income and receipt of Cash Disbursement Ceiling of
the FSPs amounting to ₱3,134,260,253.30.
Supporting Information to the Statement of Comparison of Budget and Actual

Amount
32. Statement of Comparison of Budget and Actual Amount (SCBAA)
Amounts reported in the SCBAA were based on the Statement of Appropriation,

Allotments, Obligations, Disbursements and Balances (FAR No. 1) and Quarterly
Report of Revenues and Other Receipts (FAR No. 5) as of December 31, 2022,
attached as Annex A and B, respectively. Summarized below:
Actual Amounts on Difference

Budgeted Amounts (Final Budget and
Comparable Basis Actual Amount)
Particulars
Original Final
Amount (₱)
Receipts 5,701,304,000.00 5,701,304,000.00 7,105,249,842.00 (1,403,945,842.00)
Payments 21,761,154,000.00 27,744,249,258.22 17,065,474,580.47 10,678,774,677.75
Net Receipts/
Payments (16,059,850,000.00) (22,042,945,258.22) (9,960,224,738.47) (12,082,720,519.75)
62
● Details between the final and budget payments are classified as follows:
Unpaid Obligations
Unreleased Unobligated Total
Due & Not Yet Due &
Particulars Appropriations Allotments
Demandable Demandable
Amount (₱)
Personnel Services 81,387,649.00 104,880,656.24 682,401,413.67 - 868,669,718.91
MOOE 3,142,332,294.00 1,924,726,879.34 3,305,380,377.84 - 8,372,439,551.18
Financial Expenses 954,000.00 1,371,964.99 6,409,562.75 - 8,735,527.74
Capital Outlay 47,638,000.00 356,785,484.04 1,024,506,395.88 - 1,428,929,879.92
Total 3,272,311,943.00 2,387,764,984.61 5,018,697,750.14 - 10,678,774,677.75
63

09-DFA2022 Part1-Notes To FS

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09-DFA2022 Part1-Notes To FS

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DEPARTMENT OF FOREIGN AFFAIRS

NOTES TO THE FINANCIAL STATEMENTS

1. General Information/Agency Profile

● Preservation and enhancement of national security

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

Unaccounted Period Foreign Service Posts

2.2 Report of Disbursements

Unaccounted Period Foreign Service Posts

3. Summary of Significant Accounting Policies and Other Information

3.1 Basis of Accounting

Regular Agency Fund (RAF)

Pursuant to RA No. 11639, otherwise known as the General Appropriations Act

Collections accruing to the PRF are deposited in a separate account with an

a. Fees and other collections of Bids and Awards Committee

b. End of Service/Death Benefits of Overseas Filipino Workers (OFWs)

One of the mandates of the Office of the Undersecretary for Migrant

This includes transfer of funds to cover Donations and Financial Assistance

3.3 Receipts and Income

3.4 Cash and Cash Equivalents

3.6 Semi-Expendable Property

Tangible items below the capitalization threshold of ₱50,000.00 are accounted

● semi-expendable property which were recognized as PPE are

● these tangible items shall be recognized as expenses upon issuance to the

An item is recognized as Property, Plant and Equipment (PPE), if it meets the

An item recognized as PPE is measured at cost, which includes the following:

● its purchase price, including import duties and non-refundable purchase

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

When an asset is acquired in a non-exchange transaction for nil or nominal

Measurement after Recognition

Initial Recognition of Depreciation

Depreciation of an asset begins when it is available for use such as when it is in

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

Estimated Useful Life

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

3.8 Intangible Assets

Recognition and Measurement

Expenditures on an intangible item are recognized as an expense when it is

3.10 Changes in Accounting Policies and Estimates

The DFA recognizes the effects of changes in accounting policy retrospectively.

The DFA recognizes the effects of changes in accounting estimates

● restating the comparative amounts for prior period(s) presented in which

3.11 Foreign Currency Transactions

Transactions in foreign currencies are recorded in Philippine Pesos. The peso

Exchange rates differences arising from the settlement of obligations or from

3.12 Transfers from other Government Entities

Revenues from non-exchange transactions with other government entities are

3.13 Revenue, Receipts and Collections

Revenue is measured at the fair value of the consideration received or

1. Home Office and Consular Offices

A maximum of 50 percent of the income collected is automatically retained

3.14 Budget Information

A separate Statement of Comparison of Budget and Actual Amounts (SCBAA)

Balances under not yet Due and Demandable

Due to different compliance deadlines of COA in closing of the Book of

Key Management Personnel

The key management personnel of the Department as of May 8, 2023, are as

3.16 Employee Benefits

The DFA recognizes the undiscounted amount of short-term employee benefits

The DFA also recognizes expenses for accumulating compensated absences

For CY 2022, DFA adopted the implementation of Section 23 of the General

Effect on Property, Plant and Equipment Amount (₱)

Effect on Net Assets/Equity Amount (₱)

Effect on Surplus/Deficit Amount (₱)