Republic of the Philippines

ISABELA CITY WATER DISTRICT

C.P. Garcia Street Isabela City, Basilan Province

NOTES TO FINANCIAL STATEMENTS

1. The District’s Background

The Isabela City Water District (ISAWAD) was created by virtue of Resolution No. 1109
of the Sangguniang Bayan of the Municipality of Isabela, Province of Basilan on June 4,
1987. Upon the filing of the said Resolution with the Secretary of the Local Water Utilities
Administration (LWUA) pursuant to Section 7 of Presidential Decree (PD) No. 198,
ISAWAD was deemed duly formed and existing on July 5, 1987.

It started its operation as a quasi-public corporation performing public service pursuant to

the provisions of PD 198 and the Conditional Certificate of Conformance No. 330 issued
by the LWUA on February 10, 1988. In a Supreme Court decision promulgated on
September 13, 1991, and obtained finality on March 12, 1992, local water districts were
declared government-owned and controlled corporations, thus, covered by Civil Service
Commission (CSC) and the Commission on Audit (COA) rules and regulations.

In compliance with the guidelines as provided for in the Department of Budget and
Management (DBM) approved Revised Local Water District Manual on Categorization,
Re-categorization, and Other Related Matters under DBM Circular Letter No. 2011-10
dated November 18, 2011, the ISAWAD was classified as Category C effective March
2012 per Certificate of Category issued by the LWUA on April 2, 2012.

2. Summary of Significant Accounting Policies

Statement of Compliance

The ISAWAD complies with the rules and regulations promulgated by the COA. The
District adopts the updated Revised Chart of Accounts (RCA) for Government
Corporations (GC) per COA Circular No. 2020-002 dated January 28, 2020. For its
implementation, COA Circular No. 2021-005 dated July 22, 2021, was issued to provide
the guidelines, procedures, and specific accounting policies on the conversion from the
RCA for GCs under COA Circular No. 2015-010 dated December 01, 2015, as amended
by COA Circular No. 2016-006 dated December 29, 2016, to the updated RCA for GCs
(2019) for adoption by all GCs consisting of Government-owned and Controlled
Corporation, Government Financial Institutions, Government Instrumentalities with
Corporate Powers/Government Corporate Entities, and their Subsidiaries, and Water
Districts. The rationale for the adoption of this Chart of Accounts is mainly to align the
entities’ reportorial requirements with those of COA and other oversight bodies including
compliance with the standards issued by the international accounting standard-setting
bodies. Further, Section 1.6 of COA Circular 2020-002 states that there is a need to
update the existing RCA for GCs prescribed to cover additional and modified
descriptions of accounts brought about by the implementation of COA Circular 2016-006
and COA Resolution No. 2017-006.

Basis of Measurement

The financial statements have been prepared on a historical cost basis. They are
presented in Philippine Peso which is the District’s functional and presentation currency.

9
The principal accounting policies adopted in the preparation of these financial statements
are set out as follows:

a. Cash

Cash is carried in the Statement of Financial Position at face amount and includes Cash-
on-Hand (COH) and Cash-in-Bank (CIB).

b. Accounts Receivable (A/R)

Receivables are initially measured at fair value and are subsequently presented at
undiscounted amounts. At the end of each reporting period, the carrying amounts of
trade and other receivables are reviewed to determine whether there is any objective
evidence that the amounts are not recoverable.

c. Provision for Doubtful Accounts

Allowance for impairment of accounts receivable was provided based on the policy
approved per Board Resolution No. 086, s. 2020.

d. Inventories

Inventories are valued using the Moving Average Method. Various items classified as
inventories are booked under specific inventories held for consumption accounts upon
purchase and subsequently classified as an expense or capitalized to the appropriate
Property, Plant, and Equipment account upon issuance or use.

e. Property, Plant and Equipment (PPE)

PPE is carried at cost less accumulated depreciation except for Land which is stated at
cost. Settlement or resolution for land titles and reconciliation of accounting records
against results of actual physical inventory of PPE are being undertaken by the
management.

f. Depreciation

Provision for Depreciation on PPE is computed using the straight-line method based on
their estimated useful life. The District provides for a 10% residual value for its PPE.

g. Revenue and Expense Recognition

Revenue is recognized when it is probable that the economic benefits will flow to the
District and the revenue can be measured reliably.

Expenses are recognized upon utilization of the assets or services or at the date they
are incurred.

h. Government Grants

The figures reflected in the financial statements are expressed in Philippine Peso which
is the District’s functional and presentation currency. All amounts have been rounded off
to the nearest peso.

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3. Cash and Cash Equivalents

The COH is collections on the last working day of the year and deposited on the first
working day of the following year.

CIB accounts are reconciled against bank balances as of December 31, 2023, except for
the unmoving balance of the previous operations fund account with the Philippine
National Bank (PNB) - Basilan Branch being the amount retained in the records following
the transfer of the actual deposit from the said account to another bank account as
authorized per Board Resolution No. 080 dated October 8, 2008 to separate the variance
noted from the book balance and bank balance as of December 31, 2007as cited in COA
Audit Observation Memorandum No. CIB 2007-06. The reserve funds are maintained in
accordance with the requirement of the loans entered with the LWUA as stipulated in the
loan contracts while the leave credits fund is intended to fund a portion of the liability of
the District for the payment of terminal leave benefits of its personnel.

Cash Equivalents is the recorded balance for the said account forwarded from 1999 but
there were no actual records available to validate the balance recorded in the books.

The District’s Cash and Cash Equivalents accounts consist of the following:

Particulars 2023 2022

COH
COH (Collection) P 665,260 P 536,278
Petty Cash Fund - -
Total Cash on Hand P 665,260 P 536,278

CIB
PNB Acct # 608-515872-2 P 198,114 P 198,114
Landbank of the
Philippines (LBP) – Acct # 1222-1072-09 2,216,338 4,569,090
Current Account (CA)
LBP – EPCS Acct # 1221-0995-80 9,573,750 5,622,298
Development Bank of
Acct # 0-00203-905-0 44,242,637 35,451,165
the Philippines (DBP)
LBP –Reserve Fund Acct # 1221-0821-05 12,991,141 11,915,320
LBP –Leave Credits Acct # 1222-1106-25 8,292,508 7,789,287
DBP –E-Gov Acct# 00-5-12490-901 16 8
Total Cash in Bank P 77,514,504 P 65,545,282

Cash Equivalents
Special Deposits Acct#608-516260-6 26,673 26,673
Total Cash Equivalents P 26,673 P 26,673

Total P 78,206,437 P 66,108,233

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4. Investments

This balance is a forwarded balance since the year 2000 and recorded in books as a
temporary investment but its existence cannot be validated due to unavailable records.

5. Receivables, Net

This account consists of Accounts Receivable (A/R) from Customers, Inter-Agency

Receivables, and Other Receivables with balances as follows:

2023 2022
Accounts Receivable – Customers P 7,986,086 P 7,381,670
Inter-Agency Receivables 15,857 4,947
Other Receivables 1,298,028 962,354
Total P 9,299,971 P 8,348,971

The A/R – Customer account mainly consists of billed water consumption and
environmental/ septage fees due for collection from concessionaires. The breakdown of
the A/R consists of the following:

2023 2022
A/R Customers – Water Sales P 7,006,725 P 7,277,631
A/R Customers – Environmental Septage Fee 1,214,494 481,049
A/R –Unidentified Deposits - (125,708)
Allowance for Impairment-A/R (235,133) (251,302)
Total A/R - Customers P 7,986,086 P 7,381,670

The portion of the A/R Customers – Water Sales in the amount of PhP5,409.11
represents advance payment on water bills by various concessionaires who are yet to be
identified and for reconciliation of the overpayments made to their respective accounts.

The Inter-Agency Receivables include Dues from Other Government Corporations

particularly the Lamitan City Water District for borrowed materials which were not yet
replaced or paid to date.

The Other Receivables are other dues for collection other than those in the ordinary
course of business by the District as presented in the table below:

2023 2022
Other Receivables
Receivables-Disallowances/Charges - -
Due from Officers and Employees P 0.04 P -
Advances to Special Disbursing Officer - -
Others:
Sale of Materials 770,912 742,285
Due from Suppliers - 82,113
Unsubstantiated/Unliquidated Cash Advances 563,867 147,693
Unpaid Rental Fee/Uncollected Employees
- 10,445
Phil Health Contribution
Allowance for Impairment –Other Receivables (36,751) (20,182)
Total P 1,298,028 P 962,354

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The receivables on the Sale of Materials are due from concessionaires and other entities
or individuals who purchased materials from the District.

The Due from Officers and Employees consists of the amounts due for collection from
concerned personnel as a result of understated deductions for GSIS personal share
contributions and loan amortizations as well as overstated payroll.

The Unsubstantiated/Unliquidated Cash Advances consist of

undocumented/unsubstantiated advances in the amount of P142,781.86 as forwarded
balance from 1999, unliquidated/unreconciled cash advances amounting to P4,362.27
from 2003, and the unmoving balance forwarded since 2002 in the amount of
P416,722.80 previously recorded under the Other Assets all of which without available
documents to support the reconciliation and recording in the appropriate accounts.

6. Inventories

This account consists of items maintained in stocks for use in the day-to-day office use,
for sale to concessionaires to ensure standard and quality materials to be used in the
installation and maintenance of service connections, and materials for use in the
construction, maintenance, and repair activities of the District.

The breakdowns of the inventory accounts are as follows:

Expensed
Reversal
Inventory Balance Additions / during the Write Balance Dec
or Write
Account Jan 1, 2023 Acquisitions Year except Down 31, 2023
Down
Write-Down
Office
Supplies P120,483 P434,625 P351,510 - - P203,598
Inventory
Accountable
Forms, Plates,
191,718 136,442 151,054 - - 177,106
and Stickers
Inventory
Chemical and
Filtering
805,704 3,555,069 2,652,280 - 1,708,493
Supplies
Inventory
Construction
Materials 309,021 121,780 311,121 - - 119,680
Inventory
Other
Supplies and
6,048,476 7,613,316 7,128,653 - - 6,533,139
Materials
Inventory
Semi-
Expendable –
Other - 294,165 83,000 - - 211,165
Machinery &
Equipment
Total P7,475,402 P12,155,397 P10,677,618 - - P8,953,181

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7. Prepayments

This account consists of Prepaid Insurance and Other Prepayments with balances as
follows:

2023 2022
Prepaid Insurance P 233,616 P 221,283
Other Prepayments 800,000 800,000
Total P 1,033,616 P 1,021,283

Prepaid Insurance – This represents the unexpired portion of the prepaid insurance paid
within the year.

Other Prepayments – This represents the one-time compensation paid to the Basilan
Electric Cooperative (BASELCO) per Board of Directors Resolution No. 70, s. 2022 as a
fee for the grant of usufructuary rights over the BASELCO Dam for use by the water
district for a period of fifty years from the start of its actual operation.

8. Other Assets, Current

Guaranty Deposits – This represents warranty bonds paid to the City Government of
Isabela for the grant of a permit to the District to cut portions of city roads in order to
undertake repair and maintenance of pipelines which are refundable upon
restoration/reconstruction of the affected roads and application/approval of release of
bonds.

9. Property, Plant & Equipment, Net

The breakdown of the PPE account is as follows:

Balance, Additions / Balance,

PPE Account
Jan 1, 2023 Deductions Dec 31, 2023
Land P 5,273,243 P - P 5,273,243
Other Land Improvements 5,006,433 721,021 5,727,454
Sewerage Systems 15,898,073 - 15,898,073
Plant (Utility Plant in Service) 110,579,645 22,032,656 132,612,301
Buildings and Other Structures 18,797,528 9,048,706 27,846,234
Water Plant, Structure &
12,013,209 (8,665,119) 3,348,090
Improvements
Office Equipment and Other
16,119,346 (3,224,820) 12,894,526
Equipment
Transportation Equipment 13,525,759 483,000 14,008,759
Furniture, Fixtures and Books - - -
Technical and Scientific
1,719,650 - 1,719,650
Equipment
Communication Equipment - - -
Construction & Heavy
1,287,871 53,083 1,340,954
Equipment
Information and
Communication Technology 384,800 - 384,800
(ICT)

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 Balance, Additions / Balance,
PPE Account
Jan 1, 2023 Deductions Dec 31, 2023
Military, Police & Security
54,113 540,640 594,753
Equipment
Disaster Response & Rescue
- - -
Equipment
Work/Zoo Animals 43,500 - 43,500
Other Property, Plant and
- 4,422,555 4,422,555
Equipment
Construction-in-Progress (CIP) 23,650,507 (11,885,213) 11,765,294
Sub-Total P 224,353,677 P 13,526,509 P 237,880,186
Accumulated Depreciation (99,589,584) (12,326,190) (111,915,774)
PPE, Net P 124,764,093 P 1,200,319 P 125,964,412

The estimated useful life of the assets being used is as follows:

Other Land Improvements 10 to 30 years

Sewerage Systems 10 to 30 years
Plant –UPIS 5 to 30 years
Buildings and Other Structures 5 to 30 years
Water Plant, Structure & Improvements 5 to 30 years
Office Equipment and Other Equipment 5 to 10 years
Technical & Scientific Equipment 10 years
Communication Equipment 10 years
Construction and Heavy Equipment 10 years
Disaster Response and Rescue Equipment 10 years
Military, Police & Security Equipment 7 years
Transportation Equipment 7 years
ICT Equipment 5 years
Furniture, Fixtures, and Books 5 years

Of the total amount recorded under the Land account, the amount P4,824,811.00
comprises thirteen parcels of land which registration with the Land Registration Authority
remained under the name of the original landowners and is still pending completion of
the requirements and other legal proceedings needed to process the transfer of the title
in the name of the District.

The CIP account consists of ongoing projects as listed below with corresponding
expenses as of December 31, 2023:

Construction in Progress CIP Balance Balance

Additions /
–Infrastructure Assets Account January 1, December 31,
Deductions
(Project Title) Number 2023 2023
Replacement of
Approximately 150m – 1-06-98-
200mm Cast Iron Pipe with 020F 2,184,354 (2,184,354)
200mm PVC Pipe at (243-06-15)
Aguada Barangay
Extension of Approximately
1,380 l.m. 2ӯ HDPE pipe 1-06-98- 89,028
556,778 -
SDR 9 Lateral Line at Purok 020Q-18 (645,806)
1 at Begang Barangay
Replacement of 2,850 l.m.
1-06-98-
Distribution Pipeline from 1,724,290 268,126 1,992,417
020E-20
Lanote to Busay Junction

15
 Construction in Progress CIP Balance Balance
Additions /
–Infrastructure Assets Account January 1, December 31,
Deductions
(Project Title) Number 2023 2023
Relocation/Replacement of
Approximately700 lm
1-06-98- 616,927
Distribution Pipelines 1,746,906 -
020J-20 (2,363,833)
Traversing Through Private
Lots at Menzi Barangay
Upper Lanote Drilling 1-06-98-
1,588,012 - 1,588,012
Exploration 020L-20
Upgrading/Replacement of
approx..500 l.m. Dilapidated
1-06-98-
2”O GI Pipe with 4”O uPVC 974,437 (974,437) -
020B-21
Pipe at Barangay San
Rafael
Replacement/Extension of
1-06-98-
approx..750 l.m. 2”O PE 453,961 (453,961) -
020F-21
Tubing at Sto. Nino,Busay
Installation of 75mm and
1-06-98- 87,479
50mm Air Release 509,831 -
020H-21 (597,310)
Assemblies
Installation and
Replacement of Pressure 1-06-98-
404,591 (404,591) -
Reducing Valve (PRV) at 020I-21
Baluno and Panunsulan
Relocation of Approx 300
l.m. 2ӯ HDPE Pipeline due 1-06-98-
155,610 (155,610) -
to Road Widening at 020A-22
Binuangan
Installation of
Approximately 360 l.m. 1-06-98- 300
348,029 -
uPVC Pipe Lateral Line at 020B-22 (348,330)
Sunrise
Replacement of Existing 1
1-06-98- 18,674
¼”Ø Tapping point to 3”Ø at 67,730 -
020C-22 (86,404)
Baluno
1-06-98- 214,381
Maligue Pipeline 65,646 -
020D-22 (280,028)
Installation of
Approximately 150 l.m. 1 1-06-98- 14,257
71,536 -
¼Ø HDPE Pipe SDR 11 at 020E-22 (85,793)
Purok 3, Menzi Barangay
Relocation of approx.
120ln.m. 2ӯ HDPE, SDR 9 1-06-98-
68,293 (68,293) -
at Purok 9, Begang 020F-22
Barangay
Replacement of 150 l.m.
2ӯ Dilapidated GI Pipeline
1-06-98- 13,369
with 2” dia. UPVC Pipeline 156,357 -
020G-22 (169,726)
at Purok Narra, San Rafael
Barangay
Pipeline Encasement,
1-06-98- 768,924
Riprap Project and Blow-off 767,364 -
020H-22 (1,536,288)
Installation at Kapatagan
Well Airlifting at Malamawi 1-06-98-
414,318 (414,318) -
Island 020I-22
Installation of New Fire
1-06-98- 602
Hydrants at Baluno and 525,516 -
020J-22 (526,118)
Panunsulan and

16
 Construction in Progress CIP Balance Balance
Additions /
–Infrastructure Assets Account January 1, December 31,
Deductions
(Project Title) Number 2023 2023
Replacement of Defective
Fire Hydrants at Seaside,
Sta. Cruz and Aguada
Installation of 6ӯ
Dilapidated Line from New
Reservoir and Relocation of 1-06-98-
1,020 (1,020) -
Existing 4ӯPipeline at 020K-22
Salunoy Water Treatment
Facility in Cabunbata
Replacement of Approx.
220 ln.m. 2ӯ and 150
ln.m., 1 1/4 Ø Dilapidated 1-06-98- 199,112
- -
HDPE Pipeline SDR 11 with 020L-22 (199,112)
2ӯ HDPE Pipelines SDR 9
at Guadalupe, Begang
Replacement of 120 l.m.
2ӯ Dilapidated 1-1/4ӯ
1-06-98-
HDPE Pipe SDR 11 with 87,826 (87,826) -
020M-22
2ӯ HDPE Pipe SDR 9 at
Sittio Latuan, Baluno
Relocation/Replacement of
200 l.m. UPVC Pipeline 1-06-98- 71,035
62,628 -
Passing through Private 020N-22 (133,663)
Lots at Purok 2, Tabiawan
Extension and
Interconnection of Approx
240 ln.m. 2ӯ uPVC Lateral 1-06-98- 215,562
- -
Pipeline at Purok 2, 020A-23 (215,562)
Binuangan, Isabela City,
Basilan
Installation of Approx. 612
ln.m. 3ӯ uPVC Pipe 1-06-98-
- 788,380 788,380
Lateral Line at Tabuk and 020B-23
San Rafael
Upgrade of Dilapidated
tapping points from ½”Ø to 1-06-98- 58,424
- -
1 ¼”Ø at Suppress Drive, 020C-23 (58,424)
Menzi, Isabela City
Expansion of Approx. 1,050
ln.m. 2ӯ HDPE Lateral
1-06-98- 532,235
Pipeline at Hdj. Salam - -
020D-23 (532,235)
Village, Sumagdang,
Isabela City
Pipeline Extension with
Approx. 620 ln.m. 2ӯ
1-06-98- 465,661
HDPE Tubing SDR 9 near - 426,854
020E-23 (38,806)
NHA Menzi, Brgy. Menzi
Isabela City, Basilan
Extension of Approx. 100
ln.m. Lateral Line 1 ¼”Ø
1-06-98-
HDPE SDR 9 from Purok 2 - 163,885 163,885
020G-23
to 4, Legaspi, Isabela City
Proper
Extension of Approx. 200
ln.m. 2ӯ HDPE lateral 1-06-98-
- 220,773 220,773
SDR 9 at Purok 7, La 020H-23
Piedad Barangay

17
 Construction in Progress CIP Balance Balance
Additions /
–Infrastructure Assets Account January 1, December 31,
Deductions
(Project Title) Number 2023 2023
Installation of Three (3)
units Fure Hydrants at
1-06-98- 318,964
Sunset, Tabuk Brgy, - -
020I-23 (318,964)
Tabiawan Brgy. and
Sumagdang Barangay
Extension of Approx. 420
ln.m. 2ӯ HDPE Pipe at
1-06-98-
Purok Gumamela (Bypass - 297,514 297,514
020J-23
Road) Sumagdang
Barangay
Construction of Level I
Water System at 1-06-98-
- 64,879 64,879
Lampinigan Brgy, Isabela 020K-23
City, Basilan
1-06-98-
Construction of Balanban
030B 18,096 - 18,096
Comfort Room
(101-19-06)
Pipeline Protection 1-06-98-
Rehabilitation at Kapatagan 030E 442,817 (442,817) -
Grande (101-26-13)
ISAWAD Building Extension 1-06-98- 43,197
9,145,471 -
Construction 030A-19 (9,188,669)
ISAWAD Annex Buildings 1-06-98-
97,549 (97,549) -
Furniture Fabrication 030E-21
Handwash Station at 1-06-98-
3,243 (3,243) -
Lanote Elementary School 030G-21
Construction of 550 cu.m.
Reservoir at Salunoy Water 1-06-98-
33,300 (33,300) -
Treatment Facility in 030A-22
Cabunbata
Rehabilitation of the Fence
of the Perimeters of the 1-06-98- 24,836
434,497 -
Salunoy Water Treatment 030B-22 (459,333)
Facility Area at Cabunbata
Repair of Guard House and
Construction of Reception
1-06-98-
area and Pathway at 172,850 (172,850) -
030C-22
Salunoy Water Treatment
Facility Area in Cabunbata
Extension of Generator 1-06-98-
54,033 (54,033) -
House at C.P. Garcia 030D-22
Proposed Balanban
1-06-98- 60,271
Filtration Tank Roof 119,819 -
030E-22 (180,089)
Installation
Proposed Menzi Filtration 1-06-98- 61,325
121,783 -
Tank Roof Installation 030F-22 (183,108)
Fabrication of One (1) unit
Portable Hand Wash facility 1-06-98-
1,992 (1,992) -
for Kumalarang National 030G-22
High School
Construction of One (1) unit
Concrete Hand Wash 1-06-98- 960
67,244 -
Station at Calvario Peak 030H-22 (68,204)
National High School
Salunoy Ground Reservoir 1-06-98-
2,780 (2,780) -
Rehabilitation at Cabunbata 030I-22

18
 Construction in Progress CIP Balance Balance
Additions /
–Infrastructure Assets Account January 1, December 31,
Deductions
(Project Title) Number 2023 2023
Barangay
Proposed Upper Lanote
2LPS Discharge Deep Well
1-06-98- 1,899,924
Pumping Station - 1,879,609
030J-22 (20,315)
Construction at Barangay
Lanote
Construction of New 420
cu.m. Salunoy Concrete
Reservoir at Salunoy Water 1-06-98-
- 4,149,369 4,149,369
Treatment Facility, 030A-23
Cabunbata Brgy. Isabela
City, Basilan
Fire Alarm System for 1-06-98-
- 156,828 156,828
ISAWAD Buildings 030C-23
Rehabilitation of ISAWAD
Main Building Fence at CP 1-06-98-
18,678 18,678
Garcia St., Sta. Cruz 030D-23
Barangay
Total P23,650,507 P (11,885,213) P 11,765,294

10. Biological Assets

This consists of the costs of the rubber trees planted in the farm lots of the water district
being operated in order to generate additional revenues for use in operations.

11. Intangible Assets

This account consists of the following:

2023 2022
Computer Software P 438,706 P 438,706
Accumulated Amortization –Computer Software (394,835) (394,835)
Development-in-Progress 780,000
Total P 823,871 P 43,871

The Development-in-Progress account consists of the costs of the contract for the
development of the new billing and collection software which is still ongoing.

12. Financial Liabilities– Current

This account consists of the following:

2023 2022
Accounts Payable P 1,477,133 P 1,346,677
Notes Payable –Current - 249,012
Loans Payable Domestic – Current 2,102,767 1,939,158
Total P 3,579,900 P 3,534,847

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Accounts Payable consists of expenses/obligations not paid during the year. Loans
Payable Domestic represents the current portion of loans payable to LWUA.

13. Inter-Agency Payable

This account consists of the following:

Particulars 2023 2022

Due to Bureau of Internal Revenue (BIR) P 626,737 P 148,839
Due to Pag-IBIG 147,123 119,377
Due to PhilHealth 38,348 -
Due to Government Service Insurance System
(GSIS) 726,389 625,598
Due to NGAs 105,301 -
Due to SSS 93,800 -
Due to Others 103,138 24,711
Income Tax Payable - 425,029
Total P 1,840,836 P 1,343,554

The Due to BIR includes withholding tax on income and value-added tax due for goods
and services paid for December which remittance is due the following month and the
franchise tax due for payment to the BIR for the last quarter of the year.

The Due to Pag-IBIG and GSIS consists of government and personal contributions as
well as loan amortizations of regular and casual personnel for December while the
personal contributions to the iPro-Fund for the same period are recorded under the Due
to Others, all of which are due for remittance the following month.

The Due to Phil Health and Due to SSS are personal contributions of Contract of Service
workers for the months of November and December which are due for remittance the
following month. The amounts due were deducted from the premiums paid to them as
provided for their service contracts with the District.

The Due to NGAs is the amount accrued for the cost of auditing services for the year
2023 estimated based on the average of the auditing services paid for the years from
2021-2022.

14. Other Payables

The Other Payables amounting to P132,915 consists of the following:

Particulars Amount
Unpaid wages for the Contract of Service, Job Order and Project-
P 77,790
Based Workers for December 28 to 31, 2023
Unclaimed amount due for the Performance Based Incentive for
2022 and the per Diem of Director Diana Jean E. Puno for 55,125
September to October 2023
TOTAL P 132,915

20
The Due to Officers and Employees Account, amounting to P10,471, consists of the
following:

Particulars Amount
Reimbursement of travel expense for the months of November and
P 6,300
December to Darvin McClintock and Joven Circulado
Freight and handling of various items for the year-end raffle bonanza
2,336
by DarvinMcClintock
Refund of unremitted and overpaid GSIS Loan Amortization to
1,495
Hernando Luceñada, Santiago Palacay, and Allan Alani
Unreconciled/unidentified excess liquidations on cash advances
340
which are yet to be reconciled for payment to concerned personnel
TOTAL P 10,471

The Undistributed Collections amounting to P129,366 are payments for water bills that
were directly deposited to the District’s bank account but the District cannot identify to
which concessionaire account the amount is to be credited as of the reporting date since
no information was provided by the client-payor/depositor.

15. Financial Liabilities - Non Current

This account consists of the following:

2023 2022
Notes Payable –Non-Current P - P -
Loans Payable Domestic – Non-Current 7,055,735 9,286,719
Total P 7,055,735 P 9,286,719

The District has no long-term payables to other entities apart from the long-term loans
with LWUA consisting of the following:

Interest Amortization Date

Loan Account No. Period Granted Balance
(%)
4-2265A (KFW) 8.2 240 months January 2005 P 5,857,935
4-2265B (KFW) 8.2 240 months January 2005 949,087
9-0091 (NLIF) 0 360 months June 2010 2,351,480
Total LWUA Loan P 9,158,502
Less: Reclassified as Loans Payable - Domestic (Current) 2,102,767
Balance P 7,055,735

The scheduled maturity of the District’s long-term loan with LWUA including the Non-
LWUA Initiated Fund (NLIF) is as follows:

LWUA Loan Account No.

Year NLIF 4-2265A (KFW) 4-2265B Totals
2023 P 134,000 P 1,404,000 P 232,000 P 1,770,000
2024 134,000 1,414,000 254,000 1,802,000
2025 and onwards 2,486,000 7,616,000 1,210,000 11,312,000
Totals P 2,754,000 P 10,434,000 P 1,696,000 P 14,884,000

21
Under the Financial Assistance Contracts and Project Agreements signed by the District
with LWUA, the above loans are secured by a mortgage of the District’s properties.

To ensure repayment of its obligation, the Financial Assistance Contract also stipulates
that the District shall maintain the following reserves: Debt Service Reserve, Operation
and Maintenance Reserve, and Capital Reserve by allocating not less than 10% of its
yearly gross revenues for these reserves. Of the amount so allocated, 40% shall accrue
to the Debt Service Reserve, 40% to the Operation and Maintenance Reserve, and the
balance to the Capital Reserve.

At year end, the District transfers part of its due loan amortization to the Current Portion
equivalent to the following year’s loans payable to LWUA.

16. Trust Liabilities

Particulars 2023 2022

Guaranty/Security Deposits Payable P 477,392 P -
Customers’ Deposit Payable 2,775 -
Total P 480,167 P -

Guaranty Deposits Payable consists of the following:

Suppliers Purchase Order No. Amount

02-22-013 P 65,800
Fil-Power Group and Marketing
05-23-001 74,580
Corporation
08-23-021 77,300
Water Industries Network Corporation 04-22-001 106,979
KGD Builders, Inc. 06-21-004 30,405
03-23-003 6,987
Chem Flow Innovative Solutions, Inc.
03-23-003 6,987
Philippine Duplicators, Inc. 07-23-002 389
AGE Solar Construction & General 08-23-014 4,615
Merchandise 08-23-011 4,640
08-23-013 20,710
Pacific Data Resources (Asia), Inc. 06-23-012 78,000
TOTAL P 477,392

The amount due on Customers’ Deposit Payable is the cost of meter rental paid for the
installation of a bulk connection which will be refunded to the concessionaire upon
disconnection.

17. Provisions

Provisions for Leave Benefits Payable account is divided into current and non-current
with the year-end balance as follows:

Particulars 2023 2022

Leave Benefits Payable – Current P 2,384,963 P 2,773,101
Leave Benefits Payable –Non-Current 7,052,671 6,010,988

22
Leave Benefits Payable –Current

Leave Benefits Payable-Current account is a portion of the provision for leave benefits
payable account which is allocated equivalent to the monetary value of the ten (10) days
leave credits as part of the employee’s privilege to monetize the said portion of their
leave credits as well as the allocation of the terminal leave benefits to employees
scheduled for retirement within the succeeding year.

Leave Benefits Payable –Non-Current

Provisions for Leave Benefits Payable represents the monetary value of the total
accumulated leave credits earned from employment date to present which form part of
the employee’s terminal pay upon separation from employment. At year end, a portion of
the provision is debited to Leave Benefits Payable – Current for purposes of
monetization and scheduled retirement.

18. Other Deferred Credits

The Other Deferred Credits account is composed of previous years’ liability accounts
with unsubstantiated abnormal balances that could not be verified due to the non-
availability of records, hence, it was previously recommended that the District reclassify
the balance to this account pending its resolution.

19. Government Equity

This account consists of the following:

Particulars 2023 2022

Government Capital P 22,494,941 P 22,494,941
Contributed Capital 15,786,539 14,992,245
Total P 38,281,480 P 37,487,187

The Government Equity or Capital Contributions are grants availed by the District from
LWUA, National Anti-Poverty Commission in 2007, and NLIF in 2009 and 2010.

The Contributed Capital refers to materials contributed by the concessionaires for the
installation of service connections and cash donations for the construction of Balanban
Campsite Cottages and Kiosks as well as other donated properties over the years.

The increase in the Contributed Capital for the year consists of the recording of the pre-
filter screen donated by the City Government of Isabela, various stocks donated by
IEMPC, and stocks donated by the Bureau of Fire Protection for the installation of fire
hydrants.

20. Retained Earnings

The movement of this account is as follows:

2023 2022
Beginning Balance P 147,908,138 P 133,118,623

23
Add (Deduct): Prior Period Adjustments 1,158,091 1,661,888
Total 149,066,229 134,780,511
Add: Net Income (Loss) during the year 14,317,870 13,127,627
Ending Balance P 163,384,098 P 147,908,138

21. Service and Business Income

This account consists of the following:

Particulars 2023 2022

Waterworks System Fees P 75,530,409 P 72,388,866
Other Waterworks System Fees 4,722,749 3,881,177
Interest Income 46,491 32,043
Fines and Penalties –Business Income 2,916,765 2,779,275
Other Business Income 2,803,984 2,526,775
Rent/Lease Income 230,325 269,400
Gain on Sale of PPE - -
Other Service Income 199,477 251,942
Total P 86,450,200 P 82,129,478

22. Other Non-Operating Income

This account consists of other miscellaneous income:

Miscellaneous Income 2023 2022

Miscellaneous Income P 312,459 P 112,668
Total P 312,459 P 112,668

Miscellaneous Income of the District includes the collections from liquidated damages
due to delays in delivery of procured materials, fines collected for illegal connections,
penalties for non-wearing of prescribed uniforms, compensations paid for damages to
the pipelines, collections from photocopying, and other gains.

23. Personnel Services

This account consists of the following:

2023 2022
Salaries and Wages – Regular P 18,246,586 P 16,285,948
Salaries and Wages – Casual 2,710,819 2,508,064
Personnel Economic Relief Allowance 2,088,000 1,984,636
Representation Allowance 225,779 240,430
Transportation Allowance 323,738 314,130
Clothing and Uniform Allowance 522,000 498,000
Cash Gift 430,000 415,000

24
 2023 2022
Mid-Year Bonus 1,806,053 1,673,797
Year-End Bonus 1,807,985 1,697,734
Other Bonuses & Allowance 2,170,000 2,435,000
Directors & Committee Members’ Fees 647,449 483,290
Overtime and Night Pay 260,915 371,414
Retirement and Life Insurance Premiums 2,632,902 2,263,526
HDMF Contributions 104,300 98,000
PHIC Contributions 430,635 376,678
Employees Compensation Insurance Premiums 104,400 98,200
Terminal Leave Benefits 1,803,811 1,068,320
Total P 36,315,372 P 32,812,167

24. Maintenance and Other Operating Expenses (MOOE)

This account consists of the following:

2023 2022
Traveling Expense – Local P 315,369 P 255,508
Training Expenses 37,529 107,470
Office Supplies Expense 375,961 369,890
Accountable Forms Expenses 160,642 141,610
Fuel, Oil and Lubricant Expenses 1,018,509 1,603,624
Chemicals and Filtering Supplies Expenses 2,781,552 3,602,368
Electricity Expenses 448,097 368,378
Water Expenses 39,176 34,216
Postage and Courier Services 31,873 38,199
Telephone Expenses 105,965 173,672
Internet Subscription Expenses 3,400 3,298
Research, Exploration & Development Expenses 46,939 20,000
Awards and Rewards Expenses 222,000 163,000
Labor& Wages 1,456,244 1,943,436
Extraordinary and Miscellaneous Expenses 59,132 26,511
Legal Services 120,000 120,000
Auditing Services 105,302 58,443
Income Tax Expense - 1,644,441
Security Services 568,276 547,224
Taxes, Duties & Licenses 1,934,794 149,361
Insurance Expenses 586,216 591,266
Advertising, Promotional and Marketing
Expenses 389,719 577,945
Janitorial Services 18,191 142,775
Representation Expenses 11,439 47,461
Fidelity Bond Premiums 37,579 34,751
Transportation and Delivery Expenses 194,198 179,315
Membership Dues & Contributions to 36,234 33,961

25
Organization
Donations 4,642 64,732
Major Events and Convention Expenses 53,592 -
Other General Services 6,456,408 4,811,713
Other Maintenance and Operating Expenses 240,340 1,336,155
Other Supplies & Materials Expenses 339,420 173,800
Semi-Expendable Machinery & Equipment
Expense 321,663 333,795
Semi-Expendable Furniture & Fixture Expense 10,710 22,668
Agricultural Produce Expenses 700 2,972
Repair and Maintenance Expenses 4,035,103 3,755,991
Total MOOE P 22,566,914 P 23,479,949

25. Financial Expenses

This account pertains to the interest paid on LWUA loans for the year as follows:

2023 2022
Interest Expenses P 644,210 P 806,669

26. Non-Cash Expenses

This breakdown of the depreciation expenses on PPE is as follows:

2023 2022
Depreciation – Land Improvements P 386,965 P 371,517
Depreciation – Infrastructure Assets 8,863,979 6,525,408
Depreciation – Buildings & Other Structures 1,063,680 1,105,070
Depreciation – Machinery and Equipment 1,098,681 1,382,475
Depreciation – Land Transportation Equipment 1,090,855 1,231,804
Depreciation – Furniture and Fixture - -
Depreciation – Other PPE 391,947 1,330,683
Amortization – Intangible Assets - 26,412
Impairment Loss – Loans and Receivables - 2,579
Impairment Loss – Other Receivables 14,344 10,795
Other losses 28,992
Total Depreciation P 12,910,451 P 12,015,735

27. Other Losses

The Other Losses amounting to P7,842.25 consist of the discounted water meter sold to
concessionaires to replace the broken meter and the disposal of printer ink.

26
28. Prior Year’s Adjustments

Date Particulars Amount

General Journal (GJ) - overstated water expense for
Jan-23 P 446
December 2022
GJ - To set up receivables of funds released to the Illegal
Tappers Terminators Club (ITTC) from the 25% penalty 106,907
charges on water pilferage from 2003 to 2011.
Feb 23 GJ - To record adjustment of loan payments due to
erroneous recording of principal loan payment as interest
expense resulting to Loans Payable and Interest Expense 11,693
were overstated by P11,693.00 per COA
Recommendation of AOM No. 2023-13 (2022).
GJ - to record the necessary entries to reclassify various
PPE accounts, derecognize capitalized maintenance
works, and adjust un-reconciled accumulated 1,096,232
Feb 23 depreciation using the corrected and recomputed PPE
Lapsing
GJ - to record understatement in Allowance for
Impairment-other receivables for the year 2022, (2,225)
recommended per COA AOM No. 2023-20 (2022)
GJ -to recognize various materials returned to stocks for
Mar 23 65,891
the month of March 2023
GJ -To record completed CIP project and the related
(5,781)
accumulated deprecation
CRR - refund excess DTE and refund boat ticket 2,990
GJ - to correct erroneous posting of CIP account per
Apr 23 January 2021 CR recap, where only 855 was posted to 400
CIP and 400 was expensed
GJ - To correct erroneous entry made per DV# 02-23-25
dated Feb. 13, 2023 where the purchase of hand shovel (67,244)
was posted to the wrong CIP account
GJ - to close completed project to retained earnings (8,735)
GJ - To correct the understated charging made to CIP
May 23 building extension per DV# 03-19-38 dated march 12, 42,183
2019
GJ -to correct erroneous entry made per OR# 2435227
where the payment of Dep-Ed for the multi- purpose hall
(150)
rental last November 2022 was recognized as income for
2023
GJ -to adjust the erroneous recording of depreciation
expense and accumulated depreciation for land
improvements and other structures for the month of (383,861)
January 2023 and February 2023 adjustments for
accumulated depreciation accounts
GJ -To correct erroneous charging made per SRS (281)
GJ - To record completed Building Extension project as
(91,817)
PPE
GJ -To record the project for the relocation of approx
120lm 2O HDPE pipe SDR 9 at Purok 9 Begang Brgy as (5,122)
PPE and the related accumulated depreciation
GJ -To record the project (distribution line-riverside Brgy
(1,097,638)
to Purok 1 Aguada Brgy) and the related accumulated

27
Date Particulars Amount
depreciation
GJ -To correct erroneous entries made per SRS 529
GJ -to adjust the un-reconciled negative balance of due
from officers and employees previously transferred to due
Jun 23 5,346
to officers and employees from prior years grant and
liquidation of cash advance
GJ -to recognize various materials returned to stocks,
donated by BFP and delivered by suppliers for the month 6,932
June 2023
GJ -To correct the erroneous entries made per SRS 137,686
GJ - to reverse the erroneous de-recognition of partially
condemned and demolished PPE that are yet to be
Jul 23 1,141,375
authorized/ approved by COA per JV# 2023-02-38 dated
February 28, 2023
GJ -To record completed projects as PPE and the related
(16,346)
Accumulated Depreciation
GJ -to recognize various materials returned to stocks and
30,953
delivered by suppliers for the month of July 2023
GJ - to record excess payment of salary of the GM from
January to December 2007 and 13th month pay for 2007
177,190
as receivable per COA Decision No. 2023-208 dated
June 8, 2023
Aug 23
GJ - to correct the charging made to the wrong CIP
account due to the erroneous summary of
(2,591)
accomplishment and activity works October 8-14, 2022
per JV# 2022-10-08 dated 10/31/22.
GJ - to record completed projects and the related
(425,200)
accumulated depreciation
GJ - to record erroneous entry made to expense acct per
12,592
Sep 23 SRS
GJ - to record completed projects for the month of
September 2023 and the related accumulated (12,111)
depreciation
GJ - to recognize various materials returned to stocks
Nov 23 and delivered by suppliers for the month of November 3,188
2023
GJ - To adjust the identified materials and expenses
(donations) used for construction, previously recognized
(5,541)
to Other Assets, to their appropriate accounts per COA
AOM no. 2023-22(2022)
GJ - To correct the erroneous cost per unit charged for
(647)
SRS
Dec 23 GJ - To recognize various materials returned to stocks
638,910
and delivered by suppliers for the month of December
GJ - To adjust the allowance for impairment of accounts
receivables and other receivables account as per the
16,169
computed required allowances (aging method) for the
year 2023
GJ - To reverse entry the erroneous de-recognition made
for 50 VA transformer per JV# 2023-02-38 dated 8,090
February 28, 2023

28
 Date Particulars Amount
GJ - To correct the erroneous entry made per DV# 08-23-
34 dtd August 17, 2023 where Audit Services for 2022 (222,321)
was expensed for 2023.
TOTAL P 1,158,091

29. Reconciliation of Net Cash Flows from Operating Activities to Surplus

(Deficit)

Particulars 2023 2022

Net Income for the Year P 14,317,870 P 13,127,627
Non Cash Adjustments to Net Income
Depreciation 12,896,107 11,973,369
Increase in Impairment Losses 14,343 13,374
Gain on Sale of PPE - -
Working Capital Adjustments:
Assets
(Increase)/ Decrease in Receivables (971,836) (181,967)
(Increase)/ Decrease in Inventory, net of
(1,477,779) 1,612,658
reclassification from CIP
Refund of Cash Advances 107,327 110,240
(Increase)/ Decrease in Prepaid
(12,333) (42,553)
Insurance
(Increase)/ Decrease in Guaranty
66,545 -
Deposits
Liabilities
(Decrease)/ Increase in Accounts
130,456 (494,615)
Payables
(Decrease)/ Increase in Other Payable 267,075 (186,288)
(Decrease)/ Increase in Inter-agency
497,282 74,441
Payable
(Decrease)/ Increase in Current
(388,138) -
Provisions
Adjustments to reconcile net income to net
cash from operating activities:
Payment of Interest Expense classified
644,210 806,669
as Financing activities
(Decrease)/ Increase in Leave Benefits
1,803,811 1,068,320
Payable
Deferred Service Concession Revenue 47,359 -
Non-cash expenses, other losses, and
126,005 -
returned inventories
Inter-Agency Dues 1,840,836 1,343,554
Payable Expenses 836,153 -
Payment of Terminal Leave Benefits 1,150,266 649,941
Guaranty Security Deposits Payable 477,392 -
Net Cash Flow from Operating Activities P 32,372,951 P 29,874,770

29
 30. Status of Pending Cases as of December 31, 2023

Civil Service Commission

Reference No. and Parties Remarks
D-16-02 for Gross Discourtesy

Civil Service Commission and Aleli C. Almodovar

PENDING FINAL
RESOLUTION
vs.
RESPONDENT REYES
Juanita M. Reyes
FILED AN APPEAL ON
FEBRUARY 8, 2018
Issue:
Whether or not Respondent’s actions constitute grave
discourtesy

Department of Public Works and Highways

Reference No. and Parties Remarks
NBCDO Case No. 44-26-05-2016

ISABELA CITY WATER DISTRICT

PENDING RESOLUTION
vs.
REPLY TO COMMENT
ON APPEAL FILED ON
OFFICE OF THE CITY ENGINEER OF ISABELA CITY
OCTOBER 21, 2016
Issue:
- Suspension of Building Permit No. 160301003

National Water Resources Board

Reference No. and Parties Remarks
NWRB Case No. 2018-2488

UNITED WORKERS AGRARIAN REFORM

BENEFICIARIES MULTI-PURPOSE COOPERATIVE, PENDING RESOLUTION
Applicant
OPPOSITION TO THE
vs. MOTION FOR
RECONSIDERATION
ISABELA CITY WATER DISTRICT, Oppositor FILED BY UWARBMPC
ON THE DISMISSAL OF
Issue: THE CASE
- Opposition to the application of UWARBMPC for
Certificate of Public Convenience to Operate and
Maintain a Waterworks System

Commission on Audit
Reference No. and Parties Remarks
ND 2007-001 (2006) and ND 2007-02
PENDING RESOLUTION
COMMISSION ON AUDIT
OF APPEAL FILED AT
COA RO - IX
vs.

30
 Reference No. and Parties Remarks
ALELI C. ALMODOVAR, ISABELA CITY WATER
DISTRICT

Issue:
- Payment salary of GM from January – December 2006
is not in accordance with SSL
- Payment of RATA of GM in excess of the authorized
rates
COA Decision No. 2015-130 dated April 6, 2015 / COA
RO IX Decision No. 2011-15 dated July 5, 2011

COMMISSION ON AUDIT
PENDING RESOLUTION
vs.
OF MOTION FOR
ALELI C. ALMODOVAR, ISABELA CITY WATER RECONSIDERATION
DISTRICT FILED AT COA PROPER
Issue:
- ND 2008-001 (2007) dated September 5, 2008 –
Payment of salary of GM from January – December
2007 is not in accordance with SSL

31. List of Land Acquired Pending Transfer of Registration

Year Area and
Status of Registration/Documentation
Acquired Location
133sq.m. Contract to Sell of a Portion of Land covered by TCT
No. T-5632 in the name of Alejandro Peñaflor with
2003
Sunrise Leonora M. Penaflor as Attorney-in-Fact representing
Barangay the heirs of Alejandro Peñaflor
200 sq.m. Deed of Sale of a Portion of Land under TCT No. T-
2007 Sunrise 1293 /CLOA No. 00199783 in the name of Celina L.
Barangay Abilla
Deed of Sale of a Portion of Land under TCT No. T-
200 sq.m. 1289 /CLOA No. 00199779 in the name of Gloria L.
Lazaro
2007
Sunrise
Barangay BIR Certificate Authorizing Registration under eCAR
No. 2023-094-008812-M valid until August 2028
Extra Judicial Settlement of Estate of Carlos C. Yu with
Simultaneous Sale of Land under OCT No. P-2976 in
8,953 sq.m. the name of Jaime P. Acuña with Deed of Absolute
2009 Sale to Carlos C. Yu
Lanote Barangay
BIR Certificate Authorizing Registration under
CAR2009 00270212 dated May 9, 2012 for Updating
Extra Judicial Settlement of Estate of Basilisa Jayson
with Simultaneous Sale of Land under OCT No. P-
9,444 sq.m. 3068 in the name of BasilisaHaison
2009
Lanote Barangay BIR Certificate Authorizing Registration under
CAR2008 00025731 dated September 14, 2010for re-
validation

31
 Year Area and
Status of Registration/Documentation
Acquired Location
Extra Judicial Settlement of Estate of Carlos C. Yu with
Simultaneous Sale of Land under TCT No. T-5205 in
17,257sq.m. the name of Carlos C. Yu and EvangelinaQuicho
2009
Lanote Barangay BIR Certificate Authorizing Registration under
CAR2008 00025724 dated September 7, 2010 for re-
validation
Deed of Sale of a Portion of Land under TCT No. T-
12747 in the name of Felicisimo T. Pioquinto Jr.
80sq.m.
2009
BIR Certificate Authorizing Registration under CAR No.
Lanote Barangay
2008 00025720 dated September 6, 2010 for re-
validation
Deed of Sale of a Portion of Land under TCT No. T-
100sq.m. 16255 in the name of Feliciano T. Pioquinto
2010
Panunsulan BIR Certificate Authorizing Registration under CAR No.
Barangay 2008 00025719 dated September 6, 2010 for re-
validation
Deed of Sale of a Portion of Land under TCT No. T-
1,782 sq.m. 17169 in the name of Norjana Hamja Hadjatul
2013
Kapatagan BIR Certificate Authorizing Registration under CAR No.
Diutay Barangay 2016-094-000157-Mdated October 10, 2016 for re-
validation
Deed of Sale of a Portion of Land under TCT No. T-
1113 /
244sq.m. CLOA No. 00204515 in the name of Maria Rosario
Enriquez
2016
Panunsulan
Barangay BIR Certificate Authorizing Registration under CAR No.
2017-094-000278-M dated January 24, 2017 for re-
validation
Deed of Sale of a Portion of Land under TCT No. T-
1116 /
76sq.m. CLOA No. 00204518 in the name of Maria Belmaver R.
Enriquez
2016
Panunsulan
Barangay BIR Certificate Authorizing Registration under CAR No.
2017-094-000279-M dated January 24, 2017for re-
validation
Deed of Sale of a Portion of Land under TCT No. T-
1114 /CLOA No. 00204516 in the name of Apolonio R.
603sq.m.
Enriquez
2016
Panunsulan
BIR Certificate Authorizing Registration under CAR No.
Barangay
2017-094-000280-M dated January 24, 2017 for re-
validation
40,178sq.m.
Deed of Absolute Sale - Undivided Share of Daniel O.
2021 Wee under TCT No. T-909 in the name of Wee Yek
Tabiawan
Siu and Kuaya O. Wee
Barangay

32
32. Required Disclosure on Taxes, Duties and Licenses Paid and Accrued

In compliance with the requirements set forth by Revenue Regulation No. 15-2010
hereunder are the information on taxes, duties, and license fees paid or accrued during
the taxable year.

The amount of withholding taxes paid and accrued for the year amounted to:
i. Taxes on compensation and benefits P 759,236
ii. Creditable withholding taxes 1,233,296
iii. Final withholding taxes -
Other Taxes and Licenses:
i. Local
a. Real Estate Taxes 56,611
ii. National
a. Franchise Tax P 1,728,106

33