2002 Annual Financial Report of Government-Owned and/or ... · GLORIA MACAPAGAL – ARROYO ... JOSE...

2002

Annual Financial Report

Government-Owned and/or Controlled Corporations

Volume II-A

REPUBLIC OF THE PHILIPPINES COMMISSION ON AUDIT Commonwealth Avenue, Quezon City Philippines

September 26, 2003 Her Excellency GLORIA MACAPAGAL – ARROYO President of the Republic of the Philippines Malacañang, Manila Dear Madame President: I have the honor to submit, pursuant to Section 4, Article IX-D of the Constitution of the Philippines, the 2002 ANNUAL FINANCIAL REPORT (Volume II) showing among others, the financial condition of the GOVERNMENT OWNED and/or CONTROLLED CORPORATIONS as of December 31, 2002 and the results of operations for the year ended.

Very truly yours,

GUILLERMO N. CARAGUE


September 26, 2003 The Honorable FRANKLIN M. DRILON President, Philippine Senate GSIS Complex, Pasay City Dear Mr. Senate President: I have the honor to submit, pursuant to Section 4, Article IX-D of the Constitution of the Philippines, the 2002 ANNUAL FINANCIAL REPORT (Volume II) showing among others, the financial condition of the GOVERNMENT OWNED and/or CONTROLLED CORPORATIONS as of December 31, 2002 and the results of operations for the year ended.

Very truly yours,



September 26, 2003 The Honorable JOSE C. DE VENECIA, JR. Speaker, House of Representatives National Government Center Quezon City Dear Mr. Speaker: I have the honor to submit, pursuant to Section 4, Article IX-D of the Constitution of the Philippines, the 2002 ANNUAL FINANCIAL REPORT (Volume II) showing among others, the financial condition of the GOVERNMENT OWNED and/or CONTROLLED CORPORATIONS as of December 31, 2002 and the results of operations for the year ended.

Very truly yours,


Annual Financial Report

2002

Government-Owned and/or Controlled Corporations

TABLE OF CONTENTS

page

I INTRODUCTION 1

II FINANCIAL STATEMENTS Balance Sheet 2 Statement of Income and Expenses 3 Statement of Cash Flows 4 Notes to Financial Statements 8

III FINANCIAL HIGHLIGHTS 15

IV FINANCIAL CONDITION 1.0 Assets 18 2.0 Liabilities 26 3.0 Owners’ Equity 32

V RESULTS OF OPERATIONS 1.0 Income 34 2.0 Expenses 36 3.0 Net Income (Loss) 40

VI SECTORAL ANALYSIS 1.0 Financial Sector 43 2.0 Infrastructure and Public Utilities Sector 50 3.0 Industrial and Area Development Sector 55 4.0 Agricultural, Trading and Promotional Sector 69 5.0 Educational, Social, Cultural, Scientific, Civic and Research Sector 73

VII SCHEDULES 1 Condensed Balance Sheet by Sector 82 2 Condensed Statement of Income and Expenses by Sector 84 3 Breakdown of Income by Sector 85 4 Breakdown of Expense by Sector 86 5 List of Audited Government Corporations which Received Subsidies from

the National Government

88

VIII LIST OF ACRONYMS 89

IX TABLES AND CHARTS Tables 1 Cash Flows of the Government-Owned and/or Controlled Corporations 17 2 Cash and Cash Equivalents by Sector 19 3 Receivables by Sector 20 4 Inventories by Sector 20 5 Miscellaneous Assets and Deferred Charges By Sector 22

TABLE OF CONTENTS

page 6 Contingent Assets by Sector 23 7 Investments by Sector 24 8 Fixed Assets by Sector 24 9 Long-Term Liabilities by Sector 28 10 Top Ten GOCCs with Outstanding Loans Payable-Foreign 30 11 Top Ten GOCCs with Outstanding Loans Payable-Domestic 31 12 Details of Owners’ Equity by Sector 32 13 Top Ten Corporations that Received Subsidy from NG 41 14 Total Assets, Liabilities, Deferred Credits and Owners’ Equity-Financial Sector 44 15 Total Income, Expenses, Net Income (Loss), by Corporation-Financial Sector 47 16 Total Assets, Liabilities, Deferred Credits and Owners’ Equity-Infrastructure and

Public Utilities

50 17 Total Income, Expenses, Net Income (Loss), by Corporation-Infrastructure and

Public Utilities Sector

52 18 Total Assets, Liabilities, Deferred Credits and Owners’ Equity-Industrial and Area

Development Sector

55 19 Total Income, Expenses, Net Income (Loss), by Corporation- Industrial and Area

Development Sector

64 20 Total Assets, Liabilities, Deferred Credits and Owners’ Equity-Agricultural,

Trading and Promotional

69 22 Total Assets, Liabilities, Deferred Credits and Owners’ Equity-Educational,

Social, Cultural, Scientific, Civic and Research Sector

73 23 Total Income, Expenses, Net Income (Loss), by Corporation-Educational,

Social, Cultural, Scientific, Civic and Research Sector

79 Charts 1 Assets, Liabilities and Owners’ Equity 15 2 Income and Subsidies, Expenses and Provision for Withholding Taxes and

Net Income

16 3 Assets by Major Category 18 4 Liabilities by Major Category 26 5 Total Income and Expenses 34 6 Total PS and MOOE by Sector 36 7 Total Assets, Liabilities, Deferred Credits and Owners’ Equity-

Infrastructure and Public Utilities

51 8 Total Income by Major Category- Infrastructure and Public Utilities 53

INTRODUCTION

The Commission on Audit (COA) by virtue of its mandate under Section 4, Article IX-D of the Philippine Constitution prepares the Annual Financial Report (AFR) of the Government-Owned and/or Controlled Corporations (GOCCs). This AFR consists of the Consolidated Balance Sheet, Statement of Income and Expenses and Statement of Cash Flows of the GOCCs. The Consolidated Balance Sheet contains the balances of assets, liabilities and equity of the GOCCs as of December 31, 2002. The Statement of Income and Expenses shows the total income generated from operations and other sources, including the subsidy from the National Government and the total expenses incurred during the year. On the other hand, the Consolidated Statement of Cash Flows presents the total cash inflows and outflows from operating, investing and financing activities for Fiscal Year 2002.

Generally, the GOCCs adopt commercial accounting procedures; however, there are 15 corporations that adopt the old government accounting system, two follow the New Government Accounting System and 15 adopt the Standard Government Chart of Accounts but follow the commercial accounting procedures. This resulted to the non-uniformity in the treatment of accounts and presentation in the financial statements.

The data contained in this report were based from the audited financial statements of

114 GOCCs submitted to the Commission on Audit, thru the Corporate Government Audit Sector (CGAS). This represents 87% of the total 131 GOCCs being audited by the CGAS.

This Annual Financial Report (AFR) is composed of two volumes with the following

contents: Volume II-A – Condensed Financial Statements of the GOCCs, Financial

Highlights, Textual Analysis of the Financial Statements. Volume II-B – Detailed Consolidated Financial Statements, By Sector;

Financial Statements By Sub-Sector, By Corporation; Summary of Discretionary, Representation, Extraordinary, Promotional, Confidential and Consultancy Expenses; and Status of GOCCs in 2002.

1

FINANCIAL STATEMENTS

Republic of the Philippines Government - Owned and/or Controlled Corporations

Condensed Balance Sheet As of December 31, 2002

(in thousand pesos) Percentage

ASSETS DistributionCurrent Assets International Reserves (Note 2) 1,051,576,324.0 23.3 Cash and Cash Equivalents 59,014,486.7 1.3 Short – Term Investments (Note 3) 43,667,686.8 1.0 Receivables (net) (Note 4) 267,631,885.1 5.9 Inventories (Note 5) 34,420,580.2 0.8 Other Current Assets 5,315,498.8 0.1 Total Current Assets 1,461,626,461.6 32.4 Other Assets Miscellaneous Assets and Deferred Charges 311,497,877.2 6.9 Other Assets (Note 6) 761,413,188.6 16.9 Total Other Assets 1,072,911,065.9 23.8 Contingent Assets Contingent Assets 6,580,466.7 0.1 Investments and Fixed Assets Investments (Note 7) 1,300,248,071.8 28.8 Fixed Assets (net) 666,730,426.9 14.8 Total Investments and Fixed Assets 1,966,978,498.7 43.6

TOTAL ASSETS 4,508,096,492.8 100.0

LIABILITIES AND OWNERS' EQUITY

LIABILITIES Current Liabilities Payables (Note 8) 245,962,831.5 5.5 Trust Liabilities 17,655,236.1 0.4 Depository Liabilities (Note 9) 555,643,380.4 12.3 Other Current Liabilities 289,471,012.2 6.4 Total Current Liabilities 1,108,732,460.2 24.6 Other Liabilities Other Liabilities 174,053,587.8 3.9 Contingent Liabilities Miscellaneous 541,328.6 0.0 Long - Term Liabilities (Note 10) 2,061,141,704.8 45.7 TOTAL LIABILITIES 3,344,469,081.5 74.2 Deferred Credits 56,141,075.4 1.2 OWNERS' EQUITY Capital Paid-in Capital (Note 11) 341,230,420.1 7.6

Retained Earnings (Deficit) (34,329,809.5) (0.8)

Restricted Capital 557,791,830.1 12.4 Total Capital 864,692,440.6 19.2 Surplus Donated Surplus 18,746,308.1 0.4 Invested Surplus 20,712,691.7 0.5 Appraisal Surplus 196,590,963.5 4.4 Contingent Surplus 6,743,932.0 0.1 Total Surplus 242,793,895.3 5.4 TOTAL OWNERS' EQUITY 1,107,486,336.0 24.6

TOTAL LIABILITIES AND OWNERS' EQUITY 4,508,096,492.8 100.0 2

Republic of the Philippines Government - Owned and/or Controlled Corporations

Condensed Statement of Income and Expenses For the Year Ended December 31, 2002

(in thousand pesos) Income Operating and Service Income (Note 12) 365,058,370.8 Non - Operating Income (Note 13) 70,268,173.8 435,326,544.5 Less: Share of the National Government(Note 14) 9,319,688.2 Income After Share of the National Government 426,006,856.3 Expenses Personal Services 34,268,665.4 Maintenance and Other Operating Expenses 389,501,870.8 Capital Outlays 662,250.0 424,432,786.1 Net Income 1,574,070.2 Add: Subsidy from - National Government (Note 15) 6,671,425.2 Local Government Units 148,023.8 Government-Owned and/or Controlled Corporations 249,864.2 National Government Agency 5,122.3 7,074,435.4 Net Income Before Income Tax 8,648,505.6 Less: Provision for Income Tax 1,975,596.0 Final and Creditable Withholding Tax 67,209.8 2,042,805.7 NET INCOME AFTER INCOME TAX 6,605,699.8 Difference between totals and sum of components is due to rounding off

3

Republic of the Philippines Government-Owned and/or Controlled Corporations

Statement of Cash Flows - Indirect Method For Fiscal Year Ended December 31, 2002

(in thousand pesos)

Cash Flows from Operating Activities:

Net Income/(Loss) 2,962,631.2 Increase in Deposits Held for Regulatory or Monetary Control Purposes (211,573.9) Increase in Short-Term Funds (678,740.7) Equity in Earning of Subsidiaries 1,128,584.9 Increase in Cash Advance (136,226.8) Gain on Foreign Exchange (387,083.5) Loss on Foreign Exchange 11,505,876.6 Gain on Sale of Marketable Securities (727,939.9) Gain on Sale of Acquired Assets (17,786.0) Loss on Acquired Assets 17,171.6 Gain on Investments (19.5) Loss on Investments 247,285.1 Loss on Sale of Investments 96,579.9 Loss on Fixed Assets 4.9 Gain on Sale of Fixed Assets (165,988.1) Loss on Sale of Fixed Assets 1,557.6 Increase in Marketable Securities (114,288.0) Increase in Accounts Receivable (7,337,367.1) Increase in Loans Receivable, Current (41,187.1) Decrease in Interest Receivable 94,840.0 Increase in Receivables - National Government Agencies (1,305.6) Decrease in Receivables – GOCCs 66,332.7 Decrease in Advances to Officers and Employees 249.1 Increase in Receivables - Trade/Business (18,200,773.8) Increase in Rent Receivable (251.7) Increase in Notes Receivable (39,140.7) Increase in Installment Receivables (332,935.9) Decrease in Insurance Premium Receivable 1,177,986.1 Increase in Miscellaneous Receivables (1,631,730.2) Bad Debts 510,606.4 Obsolence 105.7 Depreciation/Depletion 21,505,132.4 Amortization 40,171,564.5 Losses and Discounts 5,933,506.4 Increase in Supplies and Materials (530,897.0) Increase in Other Current Assets (4,315,392.0) Increase in Prepayments (141,406.1) Decrease in Deposits on Letters of Credit 675.4 Increase in Organizational Costs (21,908.9) Increase in Guaranty Deposits (142,012.4) Increase in Miscellaneous Other Assets and Deferred Charges (5,315,170.2) Increase in Other Assets (7,739,567.0) Increase in Contingent Assets (246,468.7) Increase in Acquired Assets (48,422.2) Increase in Investments (6,705,937.0) Decrease in Land and Land Improvements 6,719.6

4

Increase in Building and Structure

(271,248.9)

Decrease in Furniture, Fixtures, Equipment and Books 1,870.5 Decrease in Completed Development for Sale 167,200.0 Decrease in Construction in Progress 49,611.1 Decrease in Fixed Assets 1,206,049.3 Increase in Payables-GOCCs 337,699.1 Increase in Accounts Payable 15,648,471.6 Increase in Interest Payable (2,988,416.9) Increase in Insurance Premium Payable 13.6 Increase in Due to Officers and Employees 38,242.4 Decrease in Due to Affiliated Companies (39,324.6) Decrease in Bonds Payable (39,252.4) Increase in Notes Payable 17,000.0 Decrease in Loans Payable (508,354.2) Decrease in Contracts Payable (2,000.3) Decrease in Dividends Payable (291.7) Increase in Treasurer's/Manager's Check Payables 841.2 Increase in Payables-Trade/Business 47,354.2 Increase in Accrued Expenses Payable 15,786.4 Decrease in Income Tax Payables (1,776,625.9) Decrease in Withholding Tax Payables (91,265.6) Increase in Taxes and Licenses Payables 88,019.7 Increase in Miscellaneous Payables 274,948.0 Increase in Performance/Bidders/Bail Bonds Payable 81.2 Increase in Contingent Liabilities 21,500.0 Increase in Trust Liabilities 4,177,496.3 Increase in Depository Liabilities 5,059,442.2 Decrease in Other Current Liabilities (1,316,032.0) Increase in Undistributed Collections 53,124.7 Increase in Miscellaneous Deferred Credits 3,374,938.2 Increase in Other Liabilities 8,266,272.9 Decrease in Long-Term Liabilities (3,600.0) Prior Years' Adjustments (3,207,480.8) Increase in Appraisal Surplus 520,147.6 Increase in Donated Surplus 2,879,713.9 Increase in Contingent Surplus 23,310.3 Increase in Residual Equity/Other Reserves 7,583,962.7

Net Cash Provided by/(Used in) Operating Activities 70,084,446.4

Cash Flows From Investing Activities:

Sale of Marketable Securities 14,814,554.4 Sale of Investments 2,682.7 Sale of Property Plant and Equipment 301,186.2 Sale of Other Assets 1,016.5 Sale of Acquired Assets 19,791.9 Purchase of Property, Plant and Equipment (10,460,070.7) Cash in Escrow 98,314.4 Proceeds from Issuance of Capital Stock 2,267.3 Payment for Capital Stock Redeemed (53,135.3) Capital Expenditures (28,633,385.5) Increase in Subsidy Payments (1,987.6) Proceeds from Pre-Terminated Time Deposits 231.0

5

Proceeds from Matured Treasury Bills

59,760.0

Decrease in Temporary Decline in Market Value of Non-Current Equity Securities 126,122.7 Gain on Foreign Exchange 14,656.9 Miscellaneous Income 470.4 Interest Income 170,707.4 Increase in Marketable Securities (920,582.9) Receivables – GOCCs (71,258.6) Receivables from Employees (1,192.0) Increase in Investments (187,136,206.2) Increase in Prepayments (737.6) Decrease in Miscellaneous Investments 937.5 Decrease in Loans Receivable 67,826,542.4 Increase in Receivables - Items in Litigation (1,742,609.6) Decrease in Miscellaneous Assets and Deferred Assets 823,157.8 Increase in Contingent Assets (21,022.0) Increase in Acquired Assets (596,447.4) Increase in Buildings and Structures (2,657.0) Decrease in Furniture, Fixtures, Equipment and Books 62,648.5 Increase in Other Fixed Assets (1,878,057.4) Decrease in Other Assets 27,447.4 Increase in Construction in Progress (1,077.3) Increase in Payables – GOCCs 19,895.9 Decrease in Withholding Tax Payable (33,380.0) Decrease in Loans Payable (250,197.8) Increase in Other Liabilities 197.2 Increase in Paid-In Capital 16,520.5 Decrease in Donated Surplus (17,336.5) Increase in Invested Surplus 186,262.0 Increase in Appraisal Surplus 11,896.1 Decrease in Contingent Surplus (901.7)

Net Cash Provided by/(Used in) Investing Activities (147,234,976.3)

Cash Flows from Financing Activities:

Proceeds from Bank Loan 10,657,307.4 Proceeds from NDC "AA" Bonds 2,000,000.0 Advances from Parent Corporation 8,656.9 Purchase of Equipment (134.8) Issuance of Common Stock 44,519.6 Increase in Capital Funds 79,995.3 Payment of Capacity Fees (32,640,877.2) Interest Earned on Investments 9,763.1 Interest Paid (124,217.6) Increase in Members' Contributions 8,036,189.2 Gain on Foreign Exchange (536.9) Subsidy from National Government 828,777.5 Equity from National Government 190,000.0 Equity from BCDA 18,288.6 Decrease in Accounts Receivables 22,140.7 Increase in Receivables from Employees (391.0) Decrease in Prepayments 751,176.2 Decrease in Long-Term Receivables 82,611,933.6 Increase in Miscellaneous Assets and Deferred Charges (9,575,962.6)

6

Decrease in Loans and Advances Payable, NGAs

(1,077,156.9)

Increase in Miscellaneous Receivables (346,679.4) Increase in Advances to Affiliated Companies (6,856.9) Decrease in Dividends Payable (4,503,290.8) Decrease in Deferred Credits to Income 37,929.3 Increase in Accounts Payable 8,086,684.0 Decrease in Due to Officers and Employees (26,124.6) Increase in Insurance Premiums Payable 280,586.6 Decrease in Dividends Payable (652,307.9) Increase in Performance/Bidders/Bail Bonds Payable 1,352.0 Increase in Trust Liabilities 21,811.0 Decrease in Depository Liabilities 10,694,069.9 Decrease in Miscellaneous Liabilities and Deferred Credits (26.6) Increase in Other Liabilities 14,192.8 Increase in Contingent Liabilities 14,016.8 Decrease in Loans Payable (25,323,888.6) Decrease in Notes Payable (11,896,701.8) Increase in Long-Term Liabilities 35,867,526.8 Decrease in Bond Sinking Fund 29,178.9 Increase in Donated Surplus 171,948.6 Increase in Appraisal Surplus 2,634,931.5 Increase in Residual Equity/Other Reserves (1,748.4) Net Cash Provided by/(Used in) Financing Activities 76,936,074.5 Increase in Cash and Cash Equivalents (214,455.4) Add: Cash and Cash Equivalents - January 1 100,602,925.4 Cash and Cash Equivalents - December 31 100,388,470.0

7

NOTES TO FINANCIAL STATEMENTS

Note 1 Accounting Policies Basis for Consolidation

The consolidated financial statements reflect the aggregate account balances based on 114 financial statements submitted within the cut-off date as shown below:

Sector Total No. No. Submitted

1. Financial 24 20 2. Infrastructure and Public Utilities 22 19 3. Industrial and Area Development 37 33 4. Agricultural, Trading and Promotional 29 24 5. Educational, Social, Cultural, Scientific,

Civic and Research

19

18Total 131 114

Note 2 International Reserves

This account consists of international reserves of P1,051.6 billion as reported by the BSP and CB-BOL. It includes profits realized and losses sustained from the revaluation of assets and liabilities in gold or foreign currencies as a result of changes in gold value of the peso, or of changes in parities/exchange rates of foreign currencies to peso. The following constitutes the international reserves:

Amount a. BSP

Gold in Bullion Vault P 9,474,383,000 Gold with Foreign Financial Institutions 152,196,610,000 International Monetary Fund (IMF) Special Drawing Rights

544,029,000

Deposits with Foreign Banks Demand 18,783,118,000 Time 149,136,336,000 Investments 520,279,546,000 Foreign Currency Notes 167,659,000 Accrued Interest Receivables __4,753,928,000Total P 855,335,609,000

b. CB-BOL Revaluation 196,240,715,000

Total International Reserves P1,051,576,324,000

8

Note 3 Short-Term Investments

The bulk of the amount totaling P35,231,438,745 as reported under the Financial Sector represents Marketable Securities of P726,296,390 and Other Short-Term Investments of P34,505,142,355.

Note 4 Receivables

This account includes the amount of P6,365,069,483 pertaining to Bases Conversion Development Authority (BCDA) for the following receivable accounts:

a. Receivable from Metro Pacific Corporation (MPC) pertaining to 22.2

percent share of BCDA from the collections received by MPC from the previously sold BCDA/MPC units.

b. Dividends Receivable representing the property dividends declared by the

Fort Bonifacio Development Corporation (FBDC) to BCDA involving the 150,696 sq.m. at a cost of P7,659.19/sq.m. and the BCDA share in the FBDC Compound Sales amounting to P270 million.

c. Receivable from Camp John Hay Development Corporation representing the

unpaid lease rental from Fiscal Years1998 to 2002. d. Receivable-Others account is composed mainly of accrual of lease rental

from MIAA amounting to P96,066 million for the 63.5 hectare in Villamor Airbase being developed as the site of Ninoy Aquino International Airport Terminal III project; receivable of P8.8 million from Bonifacio Estates Services Corporation representing fees and bonds collected for and in behalf of BCDA and receivable from DPWH for the widening of North Luzon Expressway Project.

For the NPC, receivables of P51,635,479,280 consist of :

a. Account and Other Receivables (net) – P5,694,139,290

These are non-current receivables, including the P1.7 billion Royalty Fees paid to PNOC-EDC for the unutilized geothermal energy from July 1996 to December 1998 and the P3.1 billion receivables from MWSS for the utilization of Angat Dam.

b. Power Customers Receivable (net) – P37,596,463,688

c. Other Receivables (net) – P8,344,876,302

9

Note 5 Inventories

Of the total Supplies and Materials amounting to P11,701.2 million, the

amount of P10,668,947,660 was accounted under NPC, categorized into fuel (and its related products) and non-fuel category. Inventory of fuel consists of fuel oil, diesel, coal and thermal chemical stocks used by the NPC plants for power generation. The non-fuel category, on the other hand, represents the materials, spare parts, supplies and equipment received by NPC which are used in its operation or transferred to private contractors as stipulated in the contracts.

Note 6 Other Assets

The amount of P527,036,017,844 accounted under NPC includes the cost of projects under construction, the total computed capacity fees of BOT projects for the duration of the period, funds intended for purposes other than current operations and advance payments made to PNOC-EDC for the cost of contracted energy for Leyte A and B.

Stored fuel in the amount of P10,006,168,202 is the difference between

the actual gas lifted and that of the contracted fuel with Shell Phil. Exploration for the Ilijan Natural Gas Power Plant.

The Advances to San Roque Multi-purpose project of P21,227,023,825

pertains to the construction of non-power components such as watershed management, water quality, flood control and irrigation project.

The amount also includes the non-utility property with appraised value of

P5,548,055,894. Note 7 Investments

This account consists of investments in/advances to subsidiaries/officials in the form of stocks.

a. BCDA P25,950,870,108 At Equity 22,470,796,904 FBDC 18,714,171,878 CDC 1,932,332,288 CIAC 1,421,692,738 BCDA Mgt. Holdings 280,000,000 JHPPDC 120,000,000 Bonifacio Estates Services Corporation 2,600,000

At Cost 427,000,300 Philippine Centennial Expo 98 Corporation 100,000,000 Bataan Technology Park, Inc. 100,000,000 North Luzon Railways Corporation 100,000,000

10

Bonifacio Water Corporation 64,500,300 Bonifacio Communications Corporation 27,500,000 Poro Point Management Corporation 20,000,000 Poro Point Industrial Corporation 15,000,000

Equity in Net Earnings, balance at year-end 1,196,433,065 Advances for Future Subscription of Shares of Stock 1,856,639,839 b. PNOC-EC

P13,380,395,297

Represents investments in joint ventures in various oil and gas projects in partnership with other oil companies including all costs incurred on exploration and development of such projects amounting to P763,017,628.

c. GSIS P181,457,044,943

Loans 93,485,933,253 Salary 56,110,394,624 Policy 11,456,657,002 Government Loans 8,065,162,248 Deeds of Conditional Sale 7,830,887,575 Real Estate Loan 4,248,545,056 Emergency 1,948,342,352 Other Loans 3,825,944,396 Investments 87,971,111,690

Stocks-Traded and Non-Traded (net) 28,883,619,833 Bonds (net) 37,912,176,145 Short-Term Investments 13,615,500,014 Other Investments 7,559,815,698 d. BSP P266,413,526,000

Government Securities 167,323,676,000 T-Bonds 64,683,222,000 T- Notes 3,569,444,000 T-Bills 99,071,010,000

Loans and Advances (net) 99,089,850,000 Foreign Currency Loans and Advances 4,452,872,000 Local Currency Loans and Advances 94,636,978,000 e. SSS P138,984,897,212

Stocks 19,391,761,627 Other Investments 119,593,135,585 Equity Securities 19,024,726,744 Loans (net) 78,099,113,971 Notes and Bonds (net) 15,693,319,115

Real Estate Properties

11

6,775,975,755

Note 8 Payables

a. The bulk of NPC’s payables of P111,993,048,726 consist of the following:

Current Portion of Foreign Loans and Other Long-term Debts P 19,665,965,434

Current Portion of Lease and Obligations 35,249,501,901 Accounts Payable and Accrued Expenses 49,507,658,865 Interest Payable 7,539,706,688 Dividends Payable _____30,215,838 Total P111,993,048,726

b. NFA payables of P28,463,287,000 are as follows:

Vouchers Payable P1,405,724,000 Trade/Business 10,927,403,000 Notes, Acceptances/Sight LCs 15,017,252,000 Miscellaneous 1,112,908,000 Total P28,463,287,000

Note 9 Depository Liabilities

It consists of the National Government’s short-term deposits and long-term deposits. Long-term deposits include the P50 billion created with the issuance of the 25–year Treasury Bond on December 20, 1993 by the National Government under Monetary Board (MB) Resolution No. 560 dated December 15, 1993. Pursuant to said Resolution, this long-term deposits shall earn the same interest rate as Treasury Bonds. The bulk of this account was reported by the following GOCCs :

a. BSP P339,106,107,000

a. Government Deposits 116,784,494,000b. Reserve Deposits of banks/non-banks

performing quasi-banking functions 98,137,792,000

c. IMF Currency Holdings 124,183,821,000

b. LBP P179,450,601,000

Domestic Deposit Liabilities 157,212,083,000Foreign Deposit Liabilities 22,238,518,000

The amount includes high cost deposits of P49,400,000,000 and 109,226 dormant deposit accounts amounting to P451,380,000

12

Note 10 Long-Term Liabilities

The Bonds Payable of Power Sector Assets and Liabilities Management

(PSALM) Corporation amounting to P27,342,900,000 refers to two trances of Japanese Yen denominated bond issued by the corporation on December 10, 2002, jointly generated by the Republic of the Philippines and by the Asian Development Bank.

For BSP, Bonds Payable account of P96,069,832,000 consists of bonds

issued with maturity dates from year 2003 to 2097.

Note 11 Paid-in Capital

Included in this account is the P3 billion Permanent Deposit Insurance Fund under PDIC representing the total capital provided by the National Government in pursuant to R.A. 3591, as amended.

Note 12 Operating and Service Income

This account pertains to the following:

Government Business Operations P134,908,308,973 Insurance/Fidelity Bond Premiums 88,658,843,114 Interest 73,625,373,445 Government Services 27,472,395,921 Trading/Production 18,583,043,130 Miscellaneous 9,363,201,560 Gain on Foreign Exchange 8,932,037,000 Rents 3,514,145,304 Commission 1,022,324

Total P365,058,370,771 The Gain on Foreign Exchange which was reported by the Banking

Sub-sector, was net of loss on fluctuations in foreign exchange rates of BSP.

Note 13 Non-Operating Income

This account consists of the following:

Income from Public Enterprises/Investments P47,559,567,511 Miscellaneous Income 22,142,648,467 Fines and Penalties on Non-Tax Revenue 454,413,881 Capital Revenue 110,976,640 Grants and Aids 567,277 Total P70,268,173,776

13

Note 14 Share of the National Government

This account with a total of P9.3 billion represents the share of the National Government from the earnings of the PAGCOR and MIAA amounting to P8,575,861,241 and P743,827,000, respectively.

Note 15 Subsidy from National Government

The National Government contributed P6,671,425,146 to the operations

of 34 GOCCs to implement some national priority programs and projects, such as food security and price stabilization; mass transportation projects and rehabilitation/improvement/development of railways; rural electrification and rehabilitation of transmission lines; construction of low housing projects; and assistance to indigent hospital patients.

14

FINANCIAL HIGHLIGHTS

III FINANCIAL HIGHLIGHTS

1.0 FINANCIAL CONDITION

1.1 Assets – P4,508.1 billion

Total assets of GOCCs as of year-end reached P4,508.1 billion consisting of

Current Assets – P1,461.6 billion or 32.4 percent, Other Assets – P1,072.9 billion or 23.8 percent, Contingent Assets – P6.6 billion or 0.1 percent and Investments and Fixed Assets – P1,967 billion or 43.6 percent.

Among the total Current Assets, the largest component is International Reserves

of P1,051.6 billion or 71.9 percent as reported by the Bangko Sentral ng Pilipinas (BSP) – P855.3 billion and CB-BOL – P196.2 billion. It is followed by Receivables of P267.6 billion or 18.3 percent.

1.2 Liabilities – P3,400.6 billion

4,508.10

3,400.61

1,107.49

-500.00

1,000.001,500.002,000.002,500.003,000.003,500.004,000.004,500.005,000.00

Assets Liabilities Owners'Equity

Chart 1. Assets, Liabilities and Equity Fiscal Year 2002 (in million pesos)

4,508.10

3,400.61

1,107.49

-500.00

1,000.001,500.002,000.002,500.003,000.003,500.004,000.004,500.005,000.00

Assets Liabilities Owners'Equity

Liabilities amounted to P3,400.6 billion, including Deferred Credits of P56.1 billion. It consists of Current Liabilities – P1,108.7 billion or 32.6 percent, Other Liabilities– P174.1 billion or 5.1 percent, Contingent Liabilities – P0.5 billion and Long-Term Liabilities – P2,061.1 billion or 60.6 percent.

Of the total Long-Term

Liabilities, Loans Payable – Foreign of P773.1 billion constituted 37.5 percent. 1.3 Owners’ Equity – P1,107.5 billion

This consists of two components, namely: the Capital Account and Surplus

Account. Capital Account includes Paid in Capital – P341.2 billion, Retained Earnings (Deficit) – (P34.3 billion) and Restricted Capital – P557.8 billion. Surplus Account consists of Donated Surplus – P18.7 billion, Invested Surplus – P20.7 billion, Appraisal Surplus – P196.6 billion and Contingent Surplus – P6.7 billion.

By Sector,the total Owners’Equity is broken down as follows: Financial

(including BSP and CB-BOL) – P747.8 billion, Infrastructure and Public Utilities– P218.6 billion, Industrial and Area Development – P113 billion, Agricultural, Trading

15

and Promotional – P6.4 billion and Educational, Social, Cultural, Scientific, Civic and Research – P21.7 billion.

435,779 49%

442,401 50%

6,622 1%

Income and SubsidiesExpenses, Share of NG and Provision for Income TaxNet Income after Income Taxes

Chart 2. Income and Subsidies, Expenses and Provision for Withholding Taxes and Net

Income Fiscal Year 2002 (in million pesos)

435,779 49%

442,401 50%

6,622 1%

Income and SubsidiesExpenses, Share of NG and Provision fo r Income TaxNet Income after Income Taxes

2.0 Results of Operations

For the year ended December 31, 2002, GOCCs net income from operations amounted to P10.9 billion. This amount is the resulting effect of the income earned and losses incurred from operations. The requirements of law that had to be complied with like remittance to the National Government of the share on income and provision for income tax also contributed to the reduction of income by some GOCCs. This resulted to a net income of P6.6 billion.

Subsidy received from the

National Government reached P6.7 billion while the other sources, particularly from LGUs and other GOCCs contributed P148 million and P249.9 million, respectively. The amount was used to finance the operations of 34 GOCCs which also implemented the programs and projects of the government. On the other hand, provision for income tax reached P2 billion during the year.

Total income of P435.3 billion

generated by GOCCs consists of Operating Income of P365.1 billion and Non-Operating Income amounting to P70.2 billion.

At the close of the year, aggregate expenses reached P424.4 billion consisting of

Personal Services – P34.3 billion, Maintenance and Other Operating Expenses – P389.5 billion and Capital Outlays – P662.2 million.

3.0 Cash Flows Analysis

The Statement of Cash Flows of the GOCCs summarizes all the cash activities of public

corporations for Fiscal Year 2002. This includes the operating, investing and financing activities of GOCCs. It provides information on the cash receipts and cash payments made during the year. Out of the 105 consolidated Statements of Cash Flows, 18 GOCCs used the direct method while the rest used the indirect method in presenting the statement. Table 1 shows the summary of cash flows of the GOCCs for Fiscal Year 2002.

16

Table 1 – Cash Flows of the Government-Owned and/or Controlled Corporations

Fiscal Year 2002 (in million pesos)

Net Cash Provided by/(Used in):

Sector

Total Operating Activities

Investing Activities

Financing Activities

Financial (2,258.2) 49,987.1 (83,209.2) 30,963.9 Infrastructures and Public Utilities 3,597.1 18,280.4 (49,529.0) 34,846.4 Industrial and Area Development (2,134.7) (263.8) (7,784.9) 5,913.9 Agricultural, Trading and Promotional (124.2) (1,960.4) (738.1) 2,574.3 Educational, Social, Scientific, Cultural, Civic and Research

704.9

4,041.1

(5,973.7)

2,637.5 Total (214.5) 70,084.6 (147,235.0) 76,936.1 Difference between totals and the sum of components is due to rounding off.

Using the indirect method approach where accrual basis of determining the net income or loss for the period is converted to cash basis, the net provided by Operating, Investing and Financing Activities for Fiscal Year 2002 amounted to P0.2 billion. Cash provided by Operating and Financing Activities amounted to P70.1 billion and P76.9 billion, respectively, while cash used in Investing Activities amounted to P147.2 billion.

The cash inflows came primarily from the principal revenue producing activities of the GOCCs and it reached P70.1 billion for the year. The highest net cash provided by Operating Activities was reported by the Financial Sector with P50 billion or 71.3 percent of the total.

On the other hand, the cash used primarily for the acquisition of long-term assets and

other investments amounted to P147.2 billion for the year. The Financial Sector used cash amounting to P83.2 billion, the Infrastructures and Public Utilities Sector – P49.5 billion, the Industrial, and Area Development Sector – P7.8 billion, the Educational, Social, Scientific, Cultural, Civic and Research Sector – P6 billion and the Agricultural, Trading, and Promotional Sector reported the least amount of P0.7 billion.

For Fiscal Year 2002, the cash flows derived from the equity capital and borrowings of

the enterprise totaled P 76.9 billion. Among the sectors, the Infrastructures and Public Utilities Sector topped the list with P34.8 billion, followed by the Financial Sector – P31 billion, Industrial and Area Development Sector – P5.9 billion, and Agricultural, Trading and Promotional and Educational, Social, Scientific, Cultural, Civic and Research Sectors with P2.6 billion each. The balance of Cash and Cash Equivalents at the end did not reconcile with the Cash and Cash Equivalents in the Balance Sheet. The difference of P41 billion was due to the following:

17

Amount (in million pesos)

1. Cash and Cash Equivalents of 18 GOCCs that presented (8,343.3) Their cash Flows in Direct Method 2. Accounts classified in the Balance Sheet as: a. Marketable Securities 24,569.7 b. Due from Local Banks 1.5 c. Due from BSP 16,354.9 d. Due from Other Banks 3,628.7 e. Interbank Loan Receivable 4,395.1 f. Due from PHC Couriers 255.4 g. Petty Cash Fund 0.8 h. Revolving Fund 1.0 i. Foreign Currency Notes and Coins on Hand 606.5 3. Cash and Cash Equivalents of GOCCs that did not submit Statement of Cash Flows (26.4) 4. Statement of Cash Flows includes Cash on hand only (66.4) 5. Statement of Cash Flows includes Cash on Hand and in Bank only (3.4) TOTAL 41,374.0

Difference between totals and sum of components is due to rounding off.

FINANCIAL CONDITION

FINANCIAL CONDITION

2.0

1.51.1

0.0

0.5

1.0

1.5

2.0

Invest ment sand F ixedA ssest s

C urrentA sset s

Ot her A sset s

Chart 3. Assets by Major Category Government Owned or Controlled Corporations

As of December 31, 2002 (in trillion pesos)

1.0 ASSETS – P4,508.1 billion

Total assets of 114 audited GOCCs reached P4.51 trillion at the end of the year. Investments and Fixed Assets of P2 trillion represent 43.6 percent of the total. The balance of P2.5 trillion was shared by Current Assets and Other Assets with P1.5 trillion and P1.1 trillion, respectively, as shown in Chart 3.

• CURRENT ASSETS – P1,461.6 billion

International Reserves – P1,051.6 billion

This consists of gold holdings and assets in foreign currencies of BSP – P855.3 billion and Central Bank-Board of Liquidators (CB-BOL) – P196.2 billion. Under Section 65 of Republic Act No. 7653, the New Central Bank Act, the BSP shall maintain international reserves adequate to meet any foreseeable net demands for foreign currencies. These assets are mostly denominated in US dollars and these are in the form of documents and instruments customarily employed for the international transfer of funds, demand and time deposits in central banks, treasuries and commercial banks abroad, foreign government securities, and foreign notes and coins.

Cash and Cash Equivalents – P59 billion

Cash and other cash items, consist of cash on hand, cash in bank, cash in the hands of collecting officers, disbursing officers and cash equivalents which are unrestricted in use for current operations. These also include investments in time deposits and treasury bills with maturity of three months or less.

Cash on hand and in bank amounting to P8.6 billion and

P37.4 billion, respectively, accounted for 14.6 percent and 63.4 percent, respectively, of the aggregate P59 billion. Cash Equivalent of P11.8 billion consists of marketable securities with short maturities. Other cash accounts include, cash in the hands of Collecting Officers – P419.1 million, Disbursing Officers – P518.9 million, Other Agencies – P243 million and Inter-agency Transferred Funds – P132 million. Table 2 shows the details of cash and cash equivalent by sector.

18

Table 2.. Cash and Cash Equivalents by Sector Fiscal Year 2002 (in million pesos)

Particulars

Total

Financial

Infrastructure and

Public Utilities

Industrial and Area

Development

Agricultural, Trading and Promotional

Educational,

Social, Cultural, Scientific, Civic and Research

Total 59,014.5 27,759.2 15,234.1 4,534.3 5,861.2 5,625.8

On Hand 8,611.3 8,438.6 160.8 1.1 5.8 5.1 In Bank 37,357.3 18,818.6 9,235.9 2,126.2 3,321.6 3,855.1 In Treasury 60.9 1.2 59.8 Treasury/Agency

Account-Current Deposits (85.1)

(85.1)

Collecting Officers 419.1 232.0 (33.6) 70.1 46.2 104.4 Disbursing Officers 518.9 14.3 130.1 40.4 94.1 239.9 Other Agencies\ 243.0 0.1 63.1 179.8 Inter-Agency

Transferred Funds 132.0 4.2 0.2 112.9 14.7

Corporate Depository Account 0.4 0.4

Bonds 0.2 0.2 0.0 Cash Equivalents 11,756.5 255.6 5,820.6 2,236.0 2,217.4 1,226.9 Difference between totals and sum of components is due to rounding off

Short – Term Investments – P 43.7 billion

This represents temporary investment of funds available for current operations of the GOCCs and are intended to meet working capital requirements. It includes investment in bonds, placement in treasury bills, treasury notes, short-term investments and fixed term deposits with government banks. The Financial Sector reported the biggest investments amounting to P35.2 billion or 80.5 percent.

Receivables – P267.6 billion

The account is net of allowance for doubtful accounts estimated at

P15.7 billion at year-end. Miscellaneous receivables of P107.6 billion constitute 40.2 percent of the total. The composition of receivable account is shown in Table 3 on next page.

The BSP under the Financial Sector accounted the biggest receivables

which are due from Foreign Banks, Local Banks, National Government and its officers and employees for an aggregate of P34.6 billion.

19

Table 3. Receivables by Sector Fiscal Year 2002 (in million pesos)

Particulars Total Financial Infrastructure

and Public Utilities

Industrial and Area

Development


Educational, Social, Cultural, Scientific, Civic and Research

Total 267,631.9 165,944.0 74,696.1 6,583.6 ,256.8 2,151.4 Accounts Receivable 81,289.1 35,377.8 44,956.7 77.0 2.0 355.6 Loans Receivable 27,588.9 21,655.1 2,200.7 3,521.1 212.0 Interest Receivable 13,947.5 12,774.8 555.7 73.1 14.5 329.3 Receivable-NGA 1,710.4 1,171.6 367.7 60.0 6.5 44.6 Receivable-LGU 72.5 6.9 44.2 4.7 0.5 16.2 Receivable-GOCCs 25,137.0 16,925.8 2,091.8 ,971.0 654.6 493.9 Advances to Officers/ Employees 128.7 3.6 47.3 8.6 3.5 45.7 Trade Business 18,457.0 301.5 10,551.6 4,782.5 ,381.3 440.1 Notes Receivable 4,311.2 4,133.7 5.5 5.2 89.1 77.8 Installment Receivable 3,086.8 79.1 2,761.3 235.2 11.3 Miscellaneous 107,633.6 78,808.6 19,704.6 6,922.1 1,743.2 455.1

Allowance for Doubtful Accounts (15,730.7) (5,294.5) (8,590.9) (1,055.7) (470.8) (318.8) Difference between totals and sum of components is due to rounding off

Inventories – P34.4 billion

The amount of P34.4 billion is net of allowance for obsolescence of P252

million. Inventories of supplies and materials amounting to P11.7 billion is the biggest component, P11 billion belongs to GOCCs under the Infrastructure Sector. Inventories – Items for Sale of P19.1 billion is also another source, with the amount of P13.7 billion reported by NFA. PEA also reported P4.3 billion worth of items for sale consisting of reclaimed lands at the Central Business Park 1 – Island A, representing PEA’s share in its joint venture agreement with Shoemart, Inc. and Seaside Channel reclamation. Inventories in transit, totaling P1.2 billion pertain to LRTA and NEA, consisting of electrical equipment and materials. Other items of inventories are shown in Table 4 below.

Table 4. Inventories by Sector


Particulars

Total

Financial

Infrastructure

And Public Utilities

Industrial and Area

Development


Educational, Social, Cultural,

Scientific, Civic and Research

Total 34,420.6 24.4 13,713.1 5,790.6 14,387.8 504.7 Supplies and Materials 11,701.2 14.4 10,970.0 337.0 226.6 153.3 Work in Process 763.8 10.1 509.5 244.1 0.1 Finished Products 37.8 10.6 21.5 5.7 Items for Sale 19,131.5 429.0 4,913.1 13,778.1 11.3 In Transit 1,191.8 1,067.7 21.0 76.1 27.0 Semi-Expendable Supplies,

Containers and Properties

428.1

102.6

20.3

18.0

287.1

20

Particulars

Total

Financial

Infrastructure

And Public Utilities

Industrial and Area

Development


Educational

Social, Cultural, Scientific,

Civic and ResearchSupplies and Materials

Charged to Appropriation

174.4

148.0

26.4

Gasoline, Oil and Lubricants 14.2 14.2 Supplies and Materials

Acquired Free of Charge

5.21

4.08

1.1 Miscellaneous 1,158.71 10.0 1,009.0 6.5 130.3 3.0 Allowance for

Obsolescence

(252.0)

(41.5)

(28.6)

(170.7)

(11.1) Raw Materials 5.1 0 .9 3.8 0.5 Unused Construction

Materials Charged to Capital Outlay

0.4

0.4

Animals, Poultry and Farm Products

2.6

2.6

Goods/Merchandise Confiscated

28.6

28.6

Semi-Expendable Information Technology - Supplies, Software, Accessories, Peripherals and Property

Livestock and Crops

0.5

28.8

0.2

28.8

0.3

Difference between totals and sum of components is due to rounding off

Other Current Assets – P5.3 billion

Out of this amount, the Industrial and Area Development Sector reported

P3.1 billion or 58.5 percent of the total, the bulk of which was shared by the Industrial Sub sector of P1.8 billion and Energy Sub-sector – P1 billion.

• Other Assets – P1,072.9 billion

The account consists of Miscellaneous Assets and Deferred Charges of P311.5

billion and Other Assets of P761.4 billion.

Miscellaneous Assets and Deferred Charges – P311.5 billion

The Infrastructure and Public Utilities Sector, which accounted for

P303.4 billion, representing 97.4 percent of this asset account. The NPC reported P289 billion consisting of the following transactions: deferred foreign exchange differential – P271.7 billion, other deferred debits – P10.7 billion, deferred taxes and duties – P3.4 billion, preliminary surveys and investigation – P1.4 billion, deferred financial assistance – P823.9 million, discount on NPC bonds payable – P582 million, deferred repairs and maintenance – P105.9 million and other accounts – P219.6 million. The deferred foreign exchange differential mainly includes the restatement of the outstanding balances of foreign currency denominated loans and lease obligations on Build–Operate-Transfer plants. The bulk of other deferred debits include expenses set up for the SPEED benefits of NPC employees for Fiscal Years 2000 and 2001.

Included under the Miscellaneous and Deferred Credits are Guaranty

Deposits of P6 billion reported mostly by Power Sector Assets and Liabilities 21

Corporation under the Infrastructure and Public Utilities Sector. Of this amount, P5.8 billion is the guaranty fee deposited to NG for the issuance of bonds.

The composition of the Miscellaneous Assets and Deferred Charges are

as follows:

Table 5. Miscellaneous Assets and Deferred Charges by Sector Fiscal Year 2002

(in million pesos)

Particulars Total FinancialInfrastructure

& Public Utilities

Industrial and Area

Development

Agricultural, Trading &

Promotional

Educational, Social,

Cultural, Scientific, Civic and Research\

Total 311,497.9 4,102.9 303,356.9 1,791.9 1,399.3 846.8 Prepayments 2,282.7 5.7 2,085.7 5.8 127.9 57.6 Organization

Costs 1,901.2 428.2 1,347.5 116.7 8.8

Guaranty Deposit

6,266.7 77.7 6,036.4 21.8 117.3 13.4

Marginal Deposit 49.3 35.5 4.4 9.5 Deposit on

Containers 9.1 7.6 0.1 1.4 0.1

Miscellaneous 300,984.3 3,589.4 293,843.1 1,643.1 1,143.0 765.7 Stocks and

Securities of Service Enterprises

4.5 1.9 1.1 0.9 0.6


Other Assets – P761.4 billion

The biggest component of this account came from the Infrastructure

and Public Utilities Sector of P534.7 billion. The bulk of assets is owned by NPC amounting to P527 billion consisting of the following: construction work in progress – materials and supplies - P1.2 billion, electric plant under capital lease (net of accumulated depreciation) - P454.7 billion, non-utility property (net of accumulated depreciation) P5.6 billion, restricted cash - P28.3 billion, advances to San Roque Non Power Component - P21.2 billion, stored fuel, Ilijan – P10 billion, stored energy of Leyte A and B – P5.8 billion, investment in maintenance engineering center – P209.9 million and stock for disposal - P55.7 million.

Under the Banking Sub-sector of the Financial Sector, the CB-BOL

reported an asset of P157.3 billion representing monetary adjustment account, exchange stabilization adjustment account and revaluation of international reserves which were treated as asset account in its books.

• Contingent Assets – P6.6 billion

The account consists mainly of Contingent Assets – Miscellaneous of P2.7

billion, Claims for Unrelieved Losses of Current Assets – P3 billion, Claims for Disallowed Payments – P776.1 million and Court Exhibits - P86.4 million. The bulk

22

of the Contingent Asset – Miscellaneous was recorded under the following GOCCs: NPC – P1.9 billion, QUEDANCOR – P382.1 million and KKK Processing Authority Center – P192.9 million. This asset account consists of claims from accountable officers for unaccounted withdrawals from the savings account, claims against defaulting borrowers on account of guarantees paid to the lending banks and other disallowances resulting from COA post-audit. The breakdown of the Contingent Assets account is shown in Table 6 below:

Table 6. Contingent Assets by Sector


Particulars

Total

Financial

Infrastructure


Industrial and Area

Development


Educational,

Social, Cultural, Scientific,

Civic and ResearchTotal 6,580.5 79.7 2,317.7 147.8 3,937.4 97.9 Claims for Unrelieved

Losses of Current Assets

2,972.0

22.4

2,949.4

0.2

Claims for Unrelieved Losses of Fixed Assets

5.9

3.0

2.9

Court Exhibits

86.4

85.5 0.9

Claims from Accountable Officers for Cash Shortages

32.6

0.1

13.6

2.4

16.3

0.2

Claims for Disallowed Payments

776..1

76.8

198.6

29. 8

376.7

94.1

Claims for Dishonored Checks

Miscellaneous

22.9 2,684.5

2.77

18.8 1,975.7

115.7

0.8 590.4

3.4


• Investments and Fixed Assets – P 1,967 billion

Investments – P1,300.3 billion

Investments represent 28.8 percent of the total assets. Other

Interest-Bearing Loans of P595.4 billion or 45.8 percent of the total investments is the bulk of this account, reported mostly by the Financial Sector, namely: Banking – P294 billion, Financing- P102.5 billion and Insurance – P173.3 billion. The Infrastructure Sector has P25.1 billion in this account while Agricultural Sector has – P655.6 million.

Investments on Stocks and Bonds amounting to P343.1 billion and

Miscellaneous Investments of P370.6 billion also contributed to the huge balance of this account. Table 7 shows the detailed listing of investment accounts.

23

Table 7. Investments by Sector Fiscal Year 2002

(in million pesos)

Particulars

Total

Financial

Infrastructure


Industrial and Area

Development



Total

1,300,248.1

1,173,150.8

59,667.7

64,028.3

1,444.0

1,957.3

Interest Bearing Loans to LGUs

57. 8

57.8

Interest Bearing Loans to GOCCs

21.9

0.3

9.9

11.7

Other Interest Bearing Loans

595,398.7

569,697.2

25,045.8

655.6

Allowance for Doubtful Accounts

( 27,879.0)

(26,874.3)

(489.0)

( 8.9)

(219.8)

(287.1)

Stocks and Bonds 343,074.5 287,372.9 22,738.4 31,847.5 787.7 328.0 Miscellaneous 370,600.6 326,885.8 12,314.4 29,220.0 264.0 1,916.4 Subrogated Claims Receivable

7,353.6

7,353.6

Non-Interest Bearing Loans to GOCCs

84.7

7.0

77.7

Livestock and Crops 2.7 2.7 Non-Interest Bearing Loans to LGUs

0.7

0.7

Investment in Public Enterprises

8,625.2

8,625.2

Allowance for Decline in value of Investment

Receivables-Items in Litigation

(5,808.6)

8,715.5

8,715.5

(5,673.0

(135.6)


Fixed Assets – P985.5 billion

Total Fixed Assets reported by GOCCs reached P985.5 billion. At the end of the year, deduction from fixed assets was estimated at P318.7 billion, leaving a balance of P666.7 billion. The composition of this account is shown in Table 8 by account and by sector.

Table 8. Fixed Assets by Sector


Particulars

Total

Financial

Infrastructure and

Public Utilities

Industrial and Area

Development


Educational, SocialCultural, ScientificCivic and Research

Total 985,460.0 90,572.9 771,224.3 87,994.2 17,567.2 18,101.4 Acquired Assets 48,519.9 48,108.1 197.5 0.1 146.0 68.2

Land, Bldgs. and Structures

13,484.5 13,266.2

150.1 68.1

Furniture and Equipment

0.4

0.4

Others 36,338.9 36,141.1 197.5 0.1 0.0 0.1 Land & Land

Improvements 283,699.5 9,259.2 182,145.0 71,051.4 9,364.9 11,879.0 Building &

Structures 536,468.9 16,196.9 499,776.9 12,861.5 4,132.3 3,501.3 Furniture, Fixtures,

Equipment and Work Animals 54,602.6 16,655.3 28,310.9 3,486.5 3,497.6 2,652.3

24

Particulars

Total

Financial

Infrastructure and

Public Utilities

Industrial and Area

Development


Educational, Social Cultural, ScientificCivic and Research

Leasehold Improvements

200.1

200.1

Other Fixed Assets 6,350.1 153.4 5,175.1 594.6 426.5 0.6

Construction in Progress

55,618.9

55,618.9

Allowance for Probable Loss (1,303.8)

(1,299.3)

(4.5)

Accumulated Depreciation (318,729.6) (13,446.9) (291,135.1) (8,357.2) (3,773.3) (2,017.2)

Net Fixed Assets 666,730.4 77,126.0 480,089.3 79,637.1 13,794.0 16,084.2


• Acquired Assets – P48.5 billion

Acquired assets of P48.5 billion represent 4.9 percent of the total Fixed Assets of P985.5 billion. This is reported mainly by the Financial Sector that accounted P48.1 billion of the total shared by its Sub sectors as follows: Banking – P30 billion, Financing- P3.3 billion and Insurance – P14.6 billion. Among the GOCCs which reported the bulk of acquired assets, Land Bank of the Philippines recorded a total of P138 billion.

• Land and Land Improvements – P283.7 billion

At P283.7 billion, Land and Land Improvements constitute 28.8 percent

of the total Fixed Assets. Among the sectors, Infrastructure and Public Utilities Sector recorded the biggest amount of P182.2 billion, the bulk of which is accounted in the following sub sectors, namely: Energy – P7.3 billion, Transport – P92.7 billion and Water – P82 billion. The other sectors also reported huge amounts of these assets, such as: Industrial and Area Development Sector - P71 billion; Educational, Social, Cultural, Scientific, Civic and Research Sector – P11.9 billion; Financial Sector – P9.3 billion; and Agricultural, Trading and Promotional Sector – P9.4 billion.

• Buildings and Structures – P536.5 billion

The biggest component of the Fixed Assets account is Building and

Structures amounting to P536.5 billion or 54.4 percent of the total Fixed Assets. Of this amount, P499.8 billion or 93.2 percent was reported by the Infrastructure and Public Utilities Sector. The Energy Sub-sector comprising the biggest amount of P462.6 billion, followed by Transport – P31.6 billion, Water – P5 billion. Financing – P349.9 million, Housing – P139.3 million and Communication – P166.7 million.

Under the Energy Sub-sector, NPC owns the bulk of this asset totaling to

P462.6 billion.

25

• Furniture, Fixtures, Equipment, Work Animals and Books Outlay -P54.6 billion

Equipment and other capital assets needed for the delivery of services by GOCCs reached P54.6 billion, the bulk of which with a combined total of P45 billion is reported by the Infrastructure and Public Utilities and Financial Sectors. Under the Infrastructure and Public Utilities Sector, the Transport Sub-sector comprised the biggest amount of P24.8 billion, reported mainly in the books of PNR, LRTA and MIAA.

• Other Fixed Asset – P6.4 billion

The amount is reported mainly by NLRC - P1.4 billion and PPA – P3.4 billion, both under the Infrastructure and Public Utilities Sector. It includes, among others, land held for donation, squatter relocation costs and project development costs, such as, consultancy fees and engineering services.

Accumulated Depreciation – P318.7 billion

Deductions from the Fixed Assets of P318.7 billion was reported

under the following sectors: Infrastructure and Public Utilities – P291.1 billion; Financial – P13.4 billion; Industrial and Area Development – P8.4 billion; Agricultural, Trading and Promotional – P3.8 billion and Educational, Social, Cultural, Scientific, Civic and Research – P2 billion.

Construction In Progress – P55.6 billion

At year end, the total unfinished capitalized assets being

constructed by GOCCs amounted to P55.6 billion, which are reported mostly by GOCCs under the Infrastructure and Public Utilities Sector namely, NPC - P36.3 billion, MWSS - P19 billion and PNR – P379.6 million.

2.0 LIABILITIES – P3,400.6 billion

0.5

230.2

1108.72061.1

Current Liabilities Other LiabilitiesContingent Long-Term

Pof

1,1Liab

PCont

541Termbillio

and repre32.6of th

Chart 4. Liabilities by Major Category As of December 31, 2002

(in billion pesos)

Current Liabilities – P

The account consists Current Liabilities – 08.7 billion, Other

Pilities – 230.2 billion, ingent Liabilities – .3 million and Long- Liabilities – P2,061.1 n.

Long-term Liabilities Current Liabilities

sent 60.6 percent and percent, respectively, e Total Liabilities.

26

Current Liabilities More than half of this account is Depository Liabilities amounting to

P555.6 billion. The other components are as follows: Other Current Liabilities – P289.5 billion, Payables – P246 billion and Trust Liabilities – P17.7 billion.

Payables – P246 billion

Eight payable accounts compose the bulk of Payables totaling

P229.3 billion. These are: Accounts Payable – P79.4 billion, Loans Payable – P35.7 billion, Lease Payable – P35.3 billion, Notes and Acceptances Payable – P20.7 billion, Interests Payable – P19.5 billion, Trade/Business – P12.8 billion, NGAs – P12.6 billion and Miscellaneous Payables – P13.5 billion.

Trust Liabilities – P17.7 billion

The amount entrusted to GOCCs by NGAs, LGUs, other GOCCs

and private entities at year-end reached P17.7 billion. The biggest amount of P2.6 billion was accounted by NHA representing the amounts withheld from contractors, employees for and in behalf of BIR and GSIS and funds entrusted by beneficiaries for mortgage take-out accounts. The NHMFC also reported an amount of P2.1 billion pertaining to the amount released by the NG for mortgage support and development financing pursuant to Republic Act No. 6846, as amended, creating the ABOT-KAYA PABAHAY FUND.

Depository Liabilities – P555.6 billion

The BSP recorded the amount of P339.1 billion or 61 percent of

the total Depository Liabilities. It includes among others, the NG regular demand deposits and long term deposits created pursuant to Monetary Board Resolution No. 560 dated December 15, 1993 and MOA between BSP and the DOF dated December 14, 1993.

Other government depository banks under the Financial Sector,

namely: LBP and DBP also reported the amount of P179.5 billion and P34.2 billion, respectively. The details of the depository liability of LBP are: Foreign – P157.2 billion and Domestic – P22.2 billion.

Other Current Liabilities – P289.5 billion

Other Current Liabilities of P289.5 billion was reported mainly

by the BSP. The biggest portion pertains to currency in circulation of

27

P271.7 billion and the allocation of IMF special drawing rights amounting to P4.5 million.

Other Liabilities – P174.1 billion

The Financial Sector got the biggest amount of P152.8 billion with

P138.6 billion for BSP while LBP and DBP reflected the amounts of P6.1 billion and P3.3 billion, respectively. For the BSP, the amount covers securities sold with agreements to repurchase, liability for letters of credit, taxes payable, share in the annual revaluation of the IMFs local currency deposit account and the periodic evaluation of gold holdings.

Contingent Liabilities – P541.33 million

Of the total amount, P484.4 million was reported by Infrastructure and Public Utilities Sector shared by Transport Sub-sector – P284.2 million and Water Sub-sector – P200.2 million. The liabilities pertain to claims under litigation awaiting decision of court authorities which was set up for probable loss and cost of damages such as realty taxes due from 1996 to 2002. The payment for such liabilities was held in abeyance pending resolution of the case which was filed by PPA with the Supreme Court.

Long – Term Liabilities – P2,061.1 billion

At year end, Long – Term Liabilities has a balance of P2.1 trillion,

composed of accounts listed in Table 9 as shown below:

Table 9. Long-Term Liabilities by Sector Fiscal Year 2002

(in million pesos)

Particulars

Total

Financial

Infrastructure And Public

Utilities

Industrial and Area

Development


Educational, Social

Cultural, Scientific, Civic and Research

Total 2,061,141.7 935,859.5 1,087,087.1 28,899.3 8,104.5 1,191.4 Loans and Advances

Payable, NGAs

350,382.6

339,425.5 6,360.1 1,663.8 2,933.2

Loans and Advances Payable, LGUs

22.5

22.5

Loans and Advances Payable, GOCCs

114,812.58

113,338.70

30.43

1,323.69

71.70

48.04

Loans Payable, Foreign

773,078.3

364,712.6

392,292.5 13,229.7 1,706.3 1,137.2

Loans Payable, Domestic

61,462.1

59,417.4 1,413.7 631.0

Contracts Payable 46.3 34.3 3.6 8.4 Bonds Payable 48,399.0 109,340.4 28,145.6 8,244.7 2,668.3 Miscellaneous 612,938.35 9,008.12 600,837.49 2,992.71 93.94 6.07


28

Loans and Advances Payable – P465.2 billion

This account consists of Loans and Advances Payable of the following sectors of government: NGAs – P350.4 billion, GOCCs – P114.8 billion and LGUs – P22 million.

The Banking Sub-sector got the biggest amount of P339.2 billion

as payable to NGAs reported mainly by CB-BOL composed of the following:

Amount (in billion pesos) Payment by NG of CB-BOL’s Liabilities – 178.86 Retained deposits of the Treasurer of the Philippines (TOP) – 137.01 Advanced payment by NG on Brady Bond Exchange with New Global Bonds Issued by ROP – 23.12 Accrued interest on TOP’s Fixed-Term deposits – 0.25 Total 339.24

The Retained Deposits of the TOP pertains to unwithdrawn

deposits with CB-BOL including revaluation adjustment on Foreign Currency Deposit.

Loans and Advances Payable of P144.8 billion due to GOCCs

was recorded mostly by the following GOCCs under the Financing Sector: DBP – P3 billion, HDMF – P15.6 billion, NHMFC – P37.3 billion, GSIS – P1.5 billion and PDIC – P56 billion.

For HDMF, the amount of P15.6 billion represents the credit

facilities made by SSS and DBP to augment internally generated funds and to replenish internal funds that were disbursed for the UHLP as a result of the bail out of NHMFC from its funding backlog in Fiscal Year 1996. The NHMFC, on the other hand, recorded payable to HDMF of P4.44 billion, GSIS – P5.8 billion and SSS – P27.1 billion.

The biggest amount of payable to GOCCs amounting to P56

billion as reported by PDIC pertains to outstanding totals to BSP for the purpose of financial assistance to various private banks such as PNB, Banco de Oro, United Overseas Bank, Orient Bank/Allied Bank, Keppel Monte Bank, Bank of Commerce, Comsavings Bank and Planter’s Development Bank.

The amount of P1.5 billion reported by the GSIS includes the

loan granted by the PDIC to finance the required capital infusion of the

29

GSIS on the rehabilitation plan of Comsavings Bank (now GSIS Family Bank).

Loans and Advances Payable to LGUs of P22.5 million

represents the 25 percent share of the City Government of Baguio from collected lease rentals of Camp John Hay that remained unremitted at year-end.

Loans Payable – P834.5 billion

At P834.5 billion, Loans Payable is 40.4 percent of the total

Long-Term Liabilities. It consists of Foreign - P773.1 billion and Domestic Loans - P61.4 billion.

Loans Payable – Foreign is reported by five sectors as follows:

Infrastructure and Public Utilities – P392.3 billion; Financial – P364.7 billion; Industrial and Area Development – P13.2 billion; Agricultural, Trading and Promotional – P1.7 billion and Educational, Social, Cultural, Scientific, Civic and Research – P1.1 billion.

Shown in Table 10 are the top 10 GOCCs with outstanding

balance of Loans Payable – Foreign as of December 31, 2002.

Table 10. Top 10 GOCCs with Outstanding Loans Payable - Foreign Fiscal Year 2002 (in million pesos)

Particulars

Amount

Sector/Sub-sector

1. National Power Corporation 327,755.2 Infrastructure & Public Utilities - Energy

2. Bangko Sentral ng Pilipinas 195,229.7 Financial – Banking 3. Development Bank of the Philippines 72,470. 9 Financial – Banking 4. Central Bank – Board of Liquidators 67,096.3 Financial – Banking 5. Land Bank of the Philippines 27,719.0 Financial – Banking 6. Light Rail Transit Authority 21,330.5 Infrastructure & Public Utilities – Transport 7. Metropolitan Waterworks & Sewerage System

15,261.4 Infrastructure & Public Utilities – Water

8. Local Water Utilities Administration 5,979.5 Infrastructure & Public Utilities – Financing

9. Philippine National Railways 5,688.9 Infrastructure & Public Utilities – Transport

10. Philippine Ports Authority 5,712.7 Infrastructure & Public Utilities – Transport

Loans Payable - Domestic of P61.5 billion is recorded in the books of

Infrastructure and Public Utilities Sector – P59.4 billion; Industrial and Area Development Sector – P1.4 billion; and Agricultural, Trading and Promotional Sector – P1.6 billion.

The NPC is the only GOCC under the Infrastructure and Public Utilities

sector which reported the amount of P42.8 billion which is 69.6 percent of the total domestic loan. Table 11 shows the list of the 10 GOCCs with outstanding balances of Loans Payable – Domestic as of year-end.

30

Table 11. Top 10 GOCCs with Outstanding Loans Payable - Domestic


Particulars Amount Sector/Sub-sector 1. National Power Corporation 42,831.3 Infrastructure & Public Utilities

– Energy 2. Light Rail Transit Authority 11,018.6 Infrastructure & Public Utilities

– Transport 3. National Electrification Administration 4,356.6 Infrastructure & Public Utilities

– Financing 4. National Development Company 1,413.7 Industrial & Area Dev’t.

– Industrial 5. Metropolitan Waterworks & Sewerage System

1,036.4 Infrastructure & Public Utilities – Water

6. National Food Authority 424.0 Agricultural, Trading and Promotional – Trading

7. Cebu Ports Authority 112.0 Infrastructure & Public Utilities – Transport

8. KKK-Processing Center Authority 71.7 Agricultural, Trading & Promotional – Financing

9. Local Water Utilities Administration 62.5 Infrastructure & Public Utilities – Financing

10. Northern Foods Corporation 49.9 Agricultural, Trading and Promotional –Manufacturing

Bonds Payable – P148.4 billion

Bonds Payable outstanding as of year end reached P148.4 billion as shown in the four sectors, namely: Financial Sector – P109.3 billion; Infrastructure and Public Utilities Sector – P28.2 billion; Industrial and Area Development Sector – P8.2 billion; and Agricultural, Trading and Promotional Sector – P2.7 billion. The biggest amount of P109.3 billion was recorded by the BSP.

Deferred Credits – P56.1 billion

This group of accounts consist of the contra-accounts of the

Unused Supplies and Materials, Semi-Expendable Supplies and Materials, the bulk of account came from Deferred Credits to Income of P34.4 billion and Miscellaneous account of P21.1 billion.

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3.0 OWNERS’ EQUITY – P1,107.5 billion

At year end, the total Owners’ Equity reached P1,107.5 billion, the composition of which is shown in Table 12.

Table 12. Details of Owners’ Equity by Sector


Particulars Total Financial

Infrastructure and

Public Utilities

Industrial and Area

Development


Educational, Social, Cultural, Scientific, Civic

& Research Total 1,107,486.3 747,768.1 218,599.9 113,024.4 6,418.1 21,675.9 Paid -in Capital 341,230.4 148,751.4 68,514.6 116,193.5 7,342.3 428.6 Donated Surplus 18,746.3 227.6 7,993.1 482.2 4,783.4 5,260.0 Invested Surplus 20,712.7 2.3 19,487.4 26.3 726.1 470.6 Appraisal Surplus 196,591.0 255.8 182,845.7 2,326.4 3,207.1 7,956.1 Contingent Surplus 6,743.9 248.9 2,795.8 39.4 3,562.2 97.6 Retained Earnings (Deficit) (34,329.8) 42,939.9 (63,440.1) (6,045.2) (15,088.4) 7,303.9 Residual/Equity

Reserve 557,791.8 555,342.2 403.3 1.8 1,885.4 159.2 Difference between totals and sum of components is due to rounding off

• Paid-in Capital – P341.2 billion

Paid-in Capital of P341.2 billion represents the subscribed, issued and paid capital stock. The subscribers include the NG, other GOCCs, or members of the particular GOCCs pursuant to existing special laws. The biggest paid-in capital of P145.6 billion was recorded under the Financial Sector. Under this sector, HDMF alone reported P92.1 billion representing member’s equity in the said corporation.

• Donated Surplus – P18.8 billion

Donated Surplus of P18.8 billion consists of grants received from foreign governments and lending institutions which were used to finance implementation of various projects of GOCCs. The Infrastructure and Public Utilities Sector topped the list with P8 billion, followed by Educational, Social, Cultural, Scientific, Civic and Research Sector of P5.3 billion; Agricultural, Trading and Promotional Sector - P4.8 billion; Industrial and Area Development Sector – P482.2 million and Financial Sector – P227.6 million.

• Invested Surplus – P20.7 billion

GOCCs also reported Invested Surplus of P20.7 billion. Of this amount, Infrastructure and Public Utilities Sector shared P19.5 billion or 94.2 percent of the total. This is a contra account of the Fixed Assets.

32

• Appraisal Surplus – P196.6 billion

Appraisal Surplus of P195.1 billion is the excess of sound value over the net book value of the corporation assets. This resulted from the appraisal of fixed assets made by the GOCCs. Among the GOCCs, the NPC reported the biggest amount of P95.8 billion and followed by PPA at P51.8 billion. Appraisal of PPA fixed assets is being conducted every five (5) years as one of the conditions agreed upon with the World Bank.

• Contingent Surplus – P6.7 billion

Contingent Surplus amounting to P6.7 billion is the contra account of Contingent Assets. Of this amount, P1.9 billion was reported under the NPC consisting of disallowances made in post audit, claim for unrelieved losses of properties and claims for all established inventory shortages of accountable officers.

• Retained Earnings (Deficit) – (P34.3 billion)

The deficit of P34.3 billion represents the cumulative balance of net income or loss, dividend distributions, fundamental errors and other capital adjustments. By sector, huge deficit was shown under the Infrastructure and Public Utilities Sector amounting to P34.4 billion, followed by Agricultural, Trading and Promotional Sector of P15.1 billion and Industrial and Area Development Sector of P6.1 billion. The Financial Sector posts a Retained Earnings of P95.2 billion excluding the CB-BOL with deficit of P52.3 billion and Educational, Social, Cultural, Scientific, Civic and Research Sector of P7.3 billion. Among the GOCCs, the NPC posted the biggest deficit of P67.9 billion.

• Restricted Capital – P557.8 billion

Residual/Equity Reserves of P557.8 billion represents the amount earmarked from retained earnings intended for various purposes, such as currency insurance, fidelity insurance, medical benefit, retirement benefit, fluctuations in foreign exchange rates, gold holdings and for contingency. For the GSIS, the amount of P212.9 billion was reserved for the Social Insurance Fund, Optional Insurance Fund and General Insurance Fund.

33

RESULTS OF OPERATIONS

V. RESULTS OF OPERATIONS For Fiscal Year 2002, the total income generated by 114 audited GOCCs reached P435.3 billion while aggregate expenses amounted to P424.4 billion, leaving a balance of P10.9 billion before deducting the Share of the National Government for P9.3 billion which is required by law.

This excess is the resulting effect of the net income of 63 GOCCs and net loss of 50 GOCCs. Schedule 2 shows the Condensed Statement of Income and Expenses by Sector for Fiscal Year ended December 31, 2002.

During the year, a total of

P7.1 billion was received principally the National Government, P6.7 billion to finance the operations of 34 GOCCs. Other GOCCs and LGUs also granted subsidy amounting to P249.9 million and P148 million, respectively. These amounts, including the balance from its operations of P10.9 billion, resulted to a net income before tax of P8.7 billion. However, because of the requirements of law that had to be complied with by some GOCCs, the amount was further reduced to P6.6 billion at the end of the year.

Presidential Decree (PD) No. 1869 dated July 11, 1983 requires the PAGCOR

to share with the NG 50 percent of its gross earnings while Executive Order (EO) No. 298 dated July 26, 1987 requires MIAA to remit to the NG 20 percent of its operating income. During the year, total remittance to NG made by these two GOCCs totaled P9.3 billion.

435.3 424.4

10.9

Income Expense Net Income

Chart 5. Total Income and Expenses As of December 31, 2002

(in billion pesos)

1.1 Income – P435.3 billion

Total income of P435.3 billion generated by GOCCs consists of Operating Income – P365.1 billion and Non-Operating Income – P70.2 billion. By sectoral classification of corporations, Financial Sector reported the highest income with P227.8 billion or 52.3 percent, followed by Infrastructure and Public Utilities – P151.8 billion or 34.9 percent. The last three Sectors realized income as follows: Educational, Social, Cultural, Scientific, Civic and Research – P24.2 billion or 5.5 percent; Agricultural, Trading and Promotional – P21.8 billion or 5 percent, and Industrial and Area Development – P9.8 billion or 2.3 percent as shown in Chart 5.

34

• Operating Income – P365.1 billion

Operating Income of P365.1 billion constitutes 83.9 percent of the total income of P435.3 billion. Among the sources under this category, Income from Government Business Operations of P134.9 billion or 37 percent comprised the bulk of the Operating Income. The NPC registered the biggest income with P116.4 billion, followed by PPA – P5.4 billion, MIAA – P4.9 billion, MWSS – P2.8 billion and LRTA – P1.2 billion.

Income derived from Insurance/Fiduciary Bond Premiums totaling

P88.6 billion or 24.3 percent was reported mainly by financial corporations under the Sub-sectors, Insurance – P88.6 billion and Financing – P55.7 million. Under the Insurance Sub-sector, the following corporations reported substantial income: GSIS – P42.4 billion, SSS – P34.2 billion, PHIC – P11.7 billion, HGC – P151.8 million, and ECC – P70.8 million. Collections of GSIS pertain mostly to premium contributions of members for life and retirement insurance premium and non-life insurance. The income reported by the Financing Sector amounting to P55.7 million belongs to the HDMF.

Interest of P73.6 billion constitutes 20.2 percent of total operating

income which was reported by BSP – P35.9 billion, DBP – P12.2 billion, LBP – P14.5 billion and NHMFC – P1.6 billion. Other GOCCs accounted for P9.4 billion. Such interest income was derived primarily from loans and investments made by these government corporations.

The other income accounts classified under Operating Income totaling

P67.9 billion are as follows: Government Services – P 27.5 billion, Trading /Production – P18.6 billion, Miscellaneous Income P9.4 billion, Rents – P3.5 billion, Gain on Foreign Exchange (FOREX) – P8.9 billion and Commissions – P1 million. The banking sub-sector, including the BSP recognized the gain on FOREX as part of its operating income.

• Non - Operating Income – P70.3 billion

Income from Public Enterprises/Investments – P47.6 billion

The biggest source of Non-Operating Income is Income From Public Enterprises/Investments amounting to P47.6 billion or 67.7 percent. The bulk came from Miscellaneous Income – P25.6 billion mostly from investments made by SSS and GSIS aggregating P12.1 billion and P6.8 billion, respectively, and assessment income collected by PDIC from its member banks totaling P3.7 billion.

Miscellaneous Income - P22.1 billion

Another major source of income under Non-Operating Income

is the Miscellaneous Income amounting to P22.1 billion. This includes

35

service charges, fees, bank commissions and other types of income received by the following GOCCs: NPC – P13.2 billion, BSP – P3.2 billion, LBP – P1.5 billion, GSIS – P1.1 billion, DBP – P964.7 million and NHMFC – P941.8 million.

Other Non - Operating Income – P566 million

Other non-operating income collected during the year includes

Fines and Penalties on Non-Tax Revenue – P454.4 million, Capital Revenue – P111 million and Grants and Aids – P0.6 million.

Chart 6. Total PS and MOOE, By Sector As of December 31, 2002

(in billion pesos)

11.2 8.323.8

182.5

163.7

A gricultural, T rading & P ro mo tio nal

Educat io nal, So cial, C ultural, Scient if ic ,C ivic & R esearch

`1.6

18.46.0

3.6

4.7

F inancial ( inc luding B SP and C B -B OL)

Infrastructure & P ublic Ut ilit ies

Industrial & A rea D evelo pment

Personal Services Maintenance & Other Operating Expenses

1.2 Expenses – P424.4 billion

At the close of the year, aggregate expenses reached P424.4 billion consisting of Personal Services (PS) – P34.3 billion, Maintenance and Other Operating Expenses (MOOE) – P389.5 billion and Capital Outlays – P0.6 billion.

• Personal Services – P34.3 billion

This component of expenses includes salaries, bonuses and incentives, social security premiums and other allowances; and benefits of GOCCs personnel which is eight percent of the aggregate P424.4 billion. The Financial Sector including BSP and CB-BOL spent the biggest amount at P18.4 billion or 53.6 percent. Other Sectors reported the following: Educational, Social, Cultural, Scientific, Civic and Research – P6 billion or 17.5 percent; Infrastructure and Public Utilities – P4.7 billion or 13.7 percent; Agricultural, Trading and Promotional – P3.6 billion or 10.5 percent; and Industrial and Area Development – P1.6 billion or 4.7 percent as shown in the Chart 6.

36

About 42 percent or P14.3 billion was spent for other benefits of

personnel like contributions to the provident and gratuity fund of GOCCs and for other allowances such as dependent allowance, medical, hospitalization, rice/meal subsidy, longevity pay and clothing allowance.

Salaries and Wages amounting to P13.3 billion comprised 38.7 percent

of the total Personal Services.

• Maintenance and Other Operating Expenses – P389.5 billion

By sectoral classification, the Infrastructure and Public Utilities Sector exhibited the biggest MOOE at P182.5 billion or 46.9 percent, followed by the Financial Sector at P114.4 billion or 29.4 percent, and BSP –CB-BOL at P49.20 4 billion or 12.6 percent.

The balance of P43.1 billion or 11.1 percent was shared by the following

Sectors: Agricultural, Trading and Promotional – P23.8 billion or 6.1 percent, Industrial and Area Development – P11.2 billion or 2.9 percent and Educational, Social, Cultural, Scientific, Civic and Research – P8.3 billion or 2.1 percent.

Other Services – P145.3 billion

Expenses of GOCCs not classified under specific accounts were

accounted for as Other Services. This account constitutes the largest at P145.3 billion or 37.3 percent.

The Infrastructure and Public Utilities Sector reported P122.3

billion or 84.2 percent of which P120 billion was for NPC. The amount was spent principally for the following: generation costs – P71.7 billion, amortization of operating fee – P19.8 billion and for transmission and distribution expenses – P2 billion.

The Financial Sector and BSP incurred P13.1 billion where P6.8

billion was spent by the Banking Sub-sector. This amount was used for litigation, acquired asset expenditures and for other expenses by the BSP – P3 billion, LBP – P2.7 billion and DBP – P1.1 billion.

The Industrial and Area Development incurred P5.0 billion while

the Educational, Social, Cultural, Scientific, Civic and Research Sector, and Agricultural, Trading and Promotional Sector shared P4.2 billion and P0.8 billion, respectively. Of the amount, PAGCOR and OWWA shared P3 billion and P0.2 billion, respectively. PAGCOR used the amount specifically for the following: marketing – P1.2 billion; clerical,

37

janitorial and messengerial expenses – P0.2 billion and advertising and public relations – P0.4 billion.

Interests – P76.3 billion

Interest payments for foreign bank loans, deposits, liabilities,

bills payables and other payable s of GOCCs reached P76.3 billion. Of the amount, the BSP accounted for P32.1 billion or 42.1 percent, followed by the Infrastructures and Public Utilities Sector at P21.1 billion or 27.7 percent. The Financial Sector constituted P17.6 billion or 23 percent while the CB-BOL registered P3 billion or 3.9 percent. The balance of P2.5 billion was shared by the other three sectors as follows: Agricultural, Trading and Promotional – P1.5 billion, Industrial and Area Development – P0.9 billion and Educational, Social, Cultural, Scientific, Civic and Research – P39.3 million.

Social Security Benefits, Rewards and Other Claims – P75

billion

This component constitutes 19.3 percent of the aggregate MOOE of P389.4 billion incurred principally by the Financial Sector, particularly the following: SSS – P40.9 billion, GSIS – P25.2 billion, and PHIC – P8.8 billion. The amount was used to pay for the members’ benefits such as retirement, death, disability, maternity, funeral grant, sickness, medical services, and rehabilitation services, among others.

Depreciation – P22.3 billion

For the use of property, plant and equipment of GOCCs, a total

of P22.3 billion was recorded as depreciation charges. The Infrastructures and Public Utilities Sector recorded the substantial amount of P18.4 billion or 82.5 percent, largely for NPC at P14.8 billion for the use of power plants and other utilities.

Trading/Production – P18.8 billion

The GOCCs under the Agricultural, Trading and Promotional

Sector reflected in its books of accounts P18.3 billion for this specific expense. The NFA alone spent P18.3 billion for the cost of procuring cereals and for direct incidental expenses like drying, milling and remilling of cereals. The Infrastructures and Public Utilities Sector reported P0.4 billion.

38

Loss on Foreign Exchange – P14.8 billion

This expense account pertains to losses incurred in converting foreign currencies to Philippine peso brought about by the weakening of the country’s economy. Of the Sectors, the Infrastructures and Public Utilities incurred the largest amount at P9.7 billion, of which P7.2 billion was reported by the Energy Sub-sector. The NPC accounted for P6.7 billion. Under the Financing Sub-sector, NEA and LWUA recorded P680.4 million and P123.1 million, respectively. Other Sectors also reported this type of expense, namely: Industrial and Area Development – P509.1 million; Agricultural, Trading and Promotional – P191.9 million; and Educational, Social, Cultural, Scientific, Civic and Research – P13.7 million. The CB-BOL also incurred this expense at P4.4 billion.

Bad Debts – P9.4 billion

The GOCCs reported a provision for Bad Debts in the amount of

P9.4 billion constituting 2.4 percent of the total MOOE. The Financial Sector, and Infrastructures and Public Utilities Sector accounted for P6 billion and P2.9 billion, respectively. Of the total P9.4 billion, the top three corporations which registered this expense are as follows: LBP – P3.5 billion, DBP- P2.6 billion and NPC – P2.8 billion.

Provision For Insurance Losses – P3.5 billion

This expense account was recorded mainly by the PDIC under

the Insurance Sub-sector to cover the anticipated losses from member banks which were identified to have great probabilities of closure where the insurance payments may exceed the recovery of assets during liquidation.

Taxes, Duties and Fees – P5.4 billion

Taxes, duties and other fees paid by GOCCs reached P5.4

billion. The BSP accounted for P1.7 billion while NPC had P1.4 billion. Other GOCCs which recorded the huge amount of this expense are LBP – P622.1 million and DBP – P534.1 million.

Water, Illumination and Power – P4.9 billion

Of the P4.9 billion expense for Water, Illumination and Power,

P3.1 billion was reported by the Industrial and Area Development Sector. The GOCCs under that Sector that recorded huge amount of this type of expense are PEZA – P2.5 billion, SBMA – P593.6 million,

39

PIA – P3.6 million, BCDA – P6.2 million, NDC – P3.2 million and FSC – P4.3 million.

• Capital Outlays – P 662.2 million

This expenditure item was reported mainly by PAGCOR representing

bingo furniture, fixtures and equipment, casino/office leasehold improvements, transportation equipment, chips and token, buildings and other improvements and other capital expenditures. The amount pertains to current year purchases of fixed assets that were recorded as outright expense.

1.3 Net Income – P6.6 billion

At the close of the year, the GOCCs generated net income of P6.6 billion after income tax. From the base figure of P10.9 billion, the GOCCs had to set aside the Share of the NG of P9.3 billion, resulting to a Net Income of P1.6 billion before Subsidy from government agencies. For Fiscal Year 2002, GOCCs received a total subsidy of P7.1 billion.

• Share of the National Government on the Net Income of GOCCs – P9.3

billion

Pursuant to existing laws, the National Government is authorized to share in the earnings of PAGCOR and MIAA. PD No.1869 dated July 11, 1983 authorizes the National Government to have a 50 percent share in the gross earnings of PAGCOR. During the year, PAGCOR remitted to the National Treasury P8.6 billion. MIAA, on the other hand, contributed P743.8 million representing 20 percent share in the operating income that it has collected in accordance with EO No. 298 dated July 26, 1987.

• Provision for Income Tax – P2.0 billion

The GOCCs are required by the National Internal Revenue Code to

provide a portion of the net income for the year for income taxes. For this Fiscal Year, the amount of P2 billion was deducted from the net income as Provision for Income Tax and Final and Creditable Withholding Tax. Of this amount, P1.2 billion was reported by the Financial Sector.

• Subsidy – P7.1 billion

The GOCCs were also the major implementers of priority programs

and projects of the National Government. To carry out these activities, a total of P6.7 billion was reported by the GOCCs as Subsidy from the National Government.

40

The Infrastructures and Public Utilities Sector got the highest

subsidy at P2.7 billion, followed by Agricultural, Trading and Promotional Sector – P1.9 billion, Educational, Social, Cultural, Scientific, Civic and Research Sector – P1.1 billion, Financial Sector – P844.4 million and Industrial and Area Development Sector – P150.4 million.

Table 13 shows the top 10 GOCCs that received Subsidy from NG:

Table 13. Top Ten Corporations that Received Subsidy from NG Fiscal Year 2002 (in million pesos)

Corporation

Sector Amount Purpose

NFA


902.0

Procurement of rice and basic commodities for distribution to calamity-stricken areas and/or indigent families

LRTA Infrastructures and Public Utilities

830.6 Payment of customs duties and taxes in the importation of various equipment and materials for the implementation of the Metro Manila Strategic Mass Rail Transit Development Line 2 Project

NEA Infrastructures and Public Utilities

786.8 Rural electrification project

NHA Infrastructures and Public Utilities

737.4 Resettlement Program

PHIC

Financial 444.4 Financial assistance to LGUs as NG counterpart for the premium contributions of indigents enrolled in the National Health Insurance Programs

NHMFC Financial 400.0 Community mortgage financing

PRRI Agricultural, Trading and Promotional

333.6 Implementation of the Hybrid Rice Program pursuant to EO No. 76 chargeable against the proceeds of USDA-PL 480 funds

PNR Infrastructures and Public Utilities

316.1 Establishment of a safe, reliable and affordable railway transport service; payment for terminal leave benefits of officers and employees

LCP Educational, Social, Cultural, Scientific, Civic and Research

209.1 General management and supervision; comprehensive research and development; management; trainings and education for the prevention and treatment of lung and allied diseases; rehabilitation of LCP building

PCMC


211.0

General management and supervision; comprehensive research and development; management, trainings and education for the prevention and treatment of lungs and allied diseases

Subsidy from LGUs amounting to P148 million was accounted

under PHIC representing its counterpart financing which is equal to the LGUs subsidy for indigents/constituents.

41

Subsidy from GOCCs of P249.9 million includes the amount

of P55.9 million coming from BCDA which was treated as income by the recipient GOCCs, namely: JHMC – P29.9 million and PPDC – P26 million. OSHC received the amount of P63 million representing the advances made by SSS and GSIS for its operational expenses in accordance with EO No. 307 dated November 4, 1987. PICCI, on the other hand, also received P130.9 million from the BSP.

42

SECTORAL ANALYSIS

FINANCIAL SECTOR

The Financial Sector is composed of 24 government corporations engaged in banking, financing, insurance and other related financing functions as enumerated in Schedule 1. These are grouped into four sub-sectors as follows: Banking, Financing, Insurance and Others. Due to the peculiar operation of the BSP and CB-BOL, the financial data thereon are separately shown. Out of the 24 corporations, as shown below, only 20 are included in this Report since the financial statements of four corporations namely: LBPLC, LIBI, PCFC, and MSI, financial statements have not been received.

Existing No. of Corporations Number Included in this Report Sub-Sector Parent Subsidiary Attached Total Parent Subsidiary Attached Total Banking 5 1 6 5 1 6 Financing 3 3 1 7 3 2 5 Insurance 8 1 9 8 8 Others 1 1 2 1 1

Total 17 6 1 24 17 3 20


As of December 31, 2002, the GOCCs under the Financial Sector reported a cumulative Assets of P2,752.6 billion, while Liabilities and Deferred Credits reached P1,976.7 billion and P28.1 billion, respectively, resulting to Owners’ Equity of P747.8 billion. Presented below is the financial condition of the corporations.

1.1 Assets – P2,752.6 billion

Of the Total Assets of P2,752.6 billion under the Financial Sector, the BSP

topped the list with P1,231.4 billion followed by CB-BOL – P354.6 billion, LBP – P250.8 billion, GSIS – P245.9 billion and SSS P162.6 billion as shown in Table 14.

The bulk of the assets of the BSP and CB-BOL under Current Assets

amounting to P911 billion and P196.3 billion, respectively, pertains to International Reserves which consist of the BSP’s gold holdings and assets in foreign currency share and CB-BOL’s revaluation of international reserves.

43

Assets Liabilities Deferred Credits Owners’ Equity

Table 14. Total Assets, Liabilities, Deferred Credits and Owner’s Equity As of December 31, 2002

(in million pesos)

Sub-Sector Amount

% Distribution

Amount

% Distribution

Amount

% Distribution

Amount

% Distribution

GRAND TOTAL

2,752,582.7

100.0

1,976,696.5

100.0

28,118.2

100.0

747,768.2

100.0

Banking A 1,585,989.8 57.6 1,456,905.5 73.7 ____-___ ________- 129,084.4 17.2 BSP 1,231,429.8 44.7 1,050,075.0 53.1 181,354.9 24.2 CB-BOL 354,560.0 12.9 406,830.5 20.6 (52,270.5) (7.0) Banking A 402,368.3 14.6 357,858.9 18.1 4,272.6 15.2 40,236.8 5.5 LBP 250,807.6 9.1 226,935.5 11.5 3,106.0 11.1 20,766.2 2.8 DBP 148,642.6 5.4 128,383.4 6.5 1,154.2 4.1 19,105.1 2.6 GSIS-FB 2,804.4 0.1 2,163.7 0.1 0.01 640.6 0.1 AIIBP 113.7 376.3 12.4 (275.1) Financing 192,841.0 7.0 76,333.8 3.9 7,659.5 27.2 108,847.6 14.7 GMFI 547.0 11.0 536.0 0.1 HDMF 134,065.8 4.9 23,377.0 1.2 7,659.5 27.2 103,029.2 13.8 IGLF 6,387.7 0.2 2,131.6 0.1 4,256.0 0.6 NHMFC 49,790.8 1.8 50,782.2 2.6 (991.4) (0.1) SBGFC 2,049.7 0.1 32.0 2,017.7 0.3 Insurance 571,152.6 20.8 85,576.6 4.3 16,186.1 57.6 469,389.8 62.6 ECC 131.5 15.8 2.1 113.7 GSIS 245,914.0 8.9 6,490.3 0.3 14,836.1 52.8 224,587.6 30.0 HGC 22,276.6 0.8 16,214.0 0.8 443.8 1.6 5,618.9 0.8 PCIC 1,188.6 404.5 784.1 0.1 PDIC 97,910.9 3.6 60,340.6 3.1 861.6 3.1 36,708.7 4.9 PHIC 39,822.0 1.5 536.3 39,285.7 5.2 SSS 162,606.4 5.9 1,426.1 0.1 4.9 161,175.4 21.5 TIDCORP 1,302.5 0.1 149.0 37.6 0.1 1,115.8 0.1 Others 231.3 ____-___ 21.7 ___-__ _-_____ _-_____ 209.6 _-____ PLRA 231.3 21.7 209.6

On the other hand, most of the assets of other three top corporations

pertain to investments which constitute Other Interest Bearing Loans, Stocks and Bonds and Miscellaneous.

The LBP reported P195.7 billion in Investments, 53.9 percent or P105.4

billion of which pertains to Other Interest Bearing Loans. These include inter-bank loans receivables, agrarian reform loans and other agricultural credit loans, development incentive loans, bills purchased, customer’s liability on bills/drafts under the letters of credits and/or trust receipts, bank’s acceptance outstanding and restructured loans. Thirty one percent or P60.7 billion pertains to Stocks and Bonds.

Likewise, Other Interest Bearing Loans recorded in the books of GSIS

and SSS totaling P93.5 billion and P78.1 billion, respectively, were loans extended to members and non-members of said corporations.

44

1.2 Liabilities – P1,976.7 billion

Total Liabilities of the Sector reached P1,976.7 billion, broken down as follows: Long-Term Liabilities – P935.9 billion or 47.3 percent and Current Liabilities – P888 billion or 44.9 percent.

Of the Current Liabilities, 62.5 percent was Depository Liabilities. The

biggest amount was reported by BSP and LBP at P339.1 billion and P179.4 billion, respectively, consisting of foreign and domestic deposits, including government deposits and deposits of banks and other financial institutions held by BSP. Other Current Liabilities totaled P276.1 billion or 31.5 percent, largely for the account of BSP pertaining to currency in circulation.

Forty percent of outstanding Long-Term Liabilities pertains to Loans

Payable, Foreign at P364.7 billion. The corporations with foreign borrowings are: BSP – P195.2 billion, DBP – P72.5 billion, CB-BOL P67.1 billion, LBP – P27.7 billion, IGLF – P1.5 billion and NHMFC – P0.7 billion.

Loans and Advances Payable, NGAs amounting P339.3 billion or 36.3

percent of Long-Term Liabilities are mainly the liabilities of CB-BOL to the NG and subsequent advances made by NG in servicing its foreign loans. This was partly reduced by remittances of CB-BOL from various collections to NG.

Total Liabilities of other corporations is presented in Table 14.

1.3 Deferred Credits – P28.1 billion

As of December 31, 2002, Deferred Credits totaled P28.1 billion. Among

the corporations, the GSIS reflected the huge balance of P14.8 billion or 52.8 percent followed by HDMF – P7.7 billion or 27.2 percent as shown in Table 14.

Deferred Credits reported by GSIS totaling P13.3 billion or 89.6 percent

represents accrued interest on the Department of Budget and Management (DBM) account for unpaid and/or delayed payment of social insurance premiums. The amount was credited to Deferred Credits to Income and will be recognized in full upon collection. The balance of P0.02 was Undistributed Collections.

For HDMF, the account consists of capitalized: a) interest on Multi-Purpose

Loans being amortized monthly over the term of the loan, b) interest and penalties on restructured loans, and c) Organization Fees on loans processed prior to issuance of Circular 187. Of the Deferred Credits of P7.7 billion, P0.5 billion represents penalties paid by NHMFC for UHLP accounts while waiting approval of proposed restructured loans and P0.5 billion pertains to Undistributed Collections.

45

1.4 Owners’ Equity – P747.8 billion

The Owners’ Equity as of the end of the year reached P747.8 billion. As shown on Table 14, the corporations with the biggest share are GSIS – P224.6 billion and BSP – P181.4 billion, while CB-BOL reported Capital Deficiency of P52.3 billion .

Of the Equity of the GSIS, 94.8 percent or P212.9 billion pertains to

Restricted Capital, particularly reserved fund provided for social insurance; optional insurance; and general insurance.

Likewise, Restricted Capital of BSP constitutes 74.9 percent or P135.9

billion which was intended for currency and fidelity insurance funds; medical and retirement benefits funds; losses due to fluctuation in foreign exchange rates and gold holdings; property insurance; and contingencies.

The CB-BOL with Capital Deficiency of P52.3 billion is under

liquidation and continue to incur Deficit due to accumulated losses.

2.0 RESULTS OF OPERATIONS

For the year ended December 31, 2002, the Financial Sector generated a Total Income of P227.8 billion and Total Expenses of P182.1 billion, thus, realizing a Net Income of P45.7 billion.

However, the Net Income was reduced by P45.6 billion after taking into

consideration items affecting their operations. Table shows the results of operations by corporation and by-sub-sector.


For Fiscal Year 2002, the consolidated income of the Sector totaled

P227.8 billion, composed of Operating and Non-Operating Income of P174.8 billion and P53 billion, respectively.

The biggest components of Operating Income, aggregating P174.6

billion, are as follows: Insurance/Fiduciary Bond Premiums at P88.7 billion, Interests at P70.5 billion, Gain on Foreign Exchange at P8.9 billion, and Miscellaneous at P6.5 billion.

46

GOCCs

Income

Expenses

Net Income

(Loss)

Subsidy

Net Income

(Loss) Before Income Tax

Income

Tax

Net Income

(Loss)

Grand Total 227,803.2 182,066.2 45,737.1 992.3 46,729.5 1,168.4 45,561.1 Banking A 49,060.2 52,430.6 (3,370.4) (3,370.39) 398.70 (3,769.1) BSP 49,053.7 45,050.8 4,002.8 4,002.8 398.7 3,604.1 CB-BOL 6.5 7,379.8 (7,373.2) (7,373.2) 7,373.2) Banking B 32,539.6 29,142.9 3,396.5 3,396.5 (64.8) 3,461.4 LBP 17,871.2 16,384.6 1,486.5 1,486.5 (171.9) 1,658.4 DBP 14,505.1 12,551.1 1,953.9 1,953.9 107.1 1,846.8 GSIS-FB 152.2 151.2 0.9 0.9 0.9 AIIBP 11.0 55.8 (44.8) (44.8) (44.8) Financing 14,115.7 9,953.3 4,162.4 400.0 4,562.4 791.3 3,771.0 GMFI 17.4 77.2 (59.7) (59.7) 2.0

(61.7) HDMF 11,037.7 5,013.8 6,023.9 6,023.9 735.6 5,288.3 IGLF 332.6 77.2 255.4 255.4 53.7 201.6 NHMFC 2576.4 4,687.8 (2,111.4) 400.0 (1,711.4) (1,711.4) SBGFC 151.3 97.2 54.1 54.1 54.1 Insurance 131,977.4 90,491.4 41,486.0 592.3 42,078.3 25.3 42,053.0 ECC 75.5 66.5 8.9 8.9 8.9 GSIS 61,616.5 29364.1 32,252.4 32,252.4 32,252.4 HGC 281.9 478.6 (196.7) (196.7) 11.9 (208.6) PCIC 147.4 164.8 (17.4) (17.4) (17.4) PDIC 8,271.6 4,436.1 3,835.4 3,835.4 3,835.4 PHIC 15,120.0 10001.5 5,118.4 592.3 5,710.8 5,710.8 SSS 46,259.5 45,829.9 429.5 429.5 429.5 TIDCORP 204.8 149.5 55.2 55.2 13.4 41.8 Others 110.1 47.7 62.4 62 17.7 44.7 PLRA 110.1 47.7 62.4 62.4 17.7 44.7 Difference between the totals and sum of components is due to rounding off.

Insurance/Fiduciary Bond Premiums representing 50.7 percent of

Operating Income consist mainly of members contributions reported by GSIS – P42.4 billion, SSS – P34.2 billion and PHIC – P11.7 billion.

Most of the Interests were recorded in the books of BSP – P35.9 billion,

LBP – P14.5 billion and DBP – P12.2 billion. Interests earned by BSP were from foreign and local currency financial assets consisting of securities, time deposits, gold deposits, demand deposits, SDR holdings and loan advances, while LBP and DBP interests earned were from loans, investments and trading account securities, deposits in banks, due from BSP and inter-bank loans.

Realized Gain on Foreign Exchange under the Operating Income was

income from the banking sector namely: BSP – P8.2 billion, DBP – P0.2 billion and LBP P0.5 billion.

Sixty eight percent or P4.4 billion of Miscellaneous Income pertains to

assessment income recorded in the books of PDIC, while P1.8 billion pertains to miscellaneous foreign currency income and fees recorded in the books of BSP.

47

Table 15. Total Income, Expenses and Net Income (Loss) by Corporations , December 31, 2002

(in million pesos)

On the other hand, Non-Operating Income which is 19.6 percent of the

Total Income was composed of Income from Public Enterprises/Investments – P44.7 billion, Miscellaneous Income – P7.8 billion and Fines and Penalties on Non-Tax Revenue – P0.4 billion.

Total Income by corporation is presented in Table15.


Expenses of the Sector totaled P182.1 billion at the end of the year 2002, broken down as follows: Personal Services (PS) – P18.4 billion and Maintenance and Other Operating Expenses (MOOE) – P163.6 billion.

Personal Services includes salaries and wages, including

compensation, allowances, premiums, and other fringe benefits of the corporations’ personnel, representing 10.1 percent of the total expenses. Corporations which spent substantial amount in PS were LBP – P3.8 billion, GSIS – P3.3 billion, BSP P3.2 billion, SSS – P3 billion, and DBP – P2.7 billion

Among the items of MOOE, expenses on Social Security Benefits,

Rewards and Other Claims at P74.9 billion or 45.8 percent, were claims and benefits paid by SSS, GSIS and PHIC to their members. This expense includes retirement gratuity, death/disability/maternity benefits, funeral grant, sickness/medical services, special medical examinations and rehabilitation services.

Of the total Interest of P52.7 billion or 32.2 percent of MOOE, the

BSP incurred the largest amount with P32.1 billion for interest expenses on foreign and local currency financial liabilities consisting of a) Foreign – bonds interest expense, foreign loans payable term loan facility, IMF liabilities, gold/securities backed loans, assumed peso blocked accounts, foreign currency deposits and swap fees, foreign exchange currency swap, and IMF charges on SDR allocation; and b) Local – securities sold under agreements to repurchase, government deposits, legal reserves – banks/NBQBs and Special Deposit Accounts.

Bad Debts/Losses at P6 billion represents almost four percent of the

total expenses, the NHMFC – P4.1 billion, LBP – P3.1 billion, DBP – P2.6 billion, and HDMF – P2 billion.

Corporations which incurred the biggest expenses are SSS at P45.8 billion and BSP at P45.1 billion.

48

2.3 Net Income – P19.9 billion

Matching the Total Income of P227.8 billion with Total Expenses of

P182.1 billion, the operations of the sector resulted to Net Income of P45.7 billion. However, the amount was slightly reduced to P45.6 billion after considering the subsidy and income tax.

Subsidy from NG or from LGUs of P1 billion was received by

corporations at P0.8 billion and P0.2 billion, respectively. The recipients were PHIC – P0.6 billion for Indigent Program and NHMFC – P0.4 billion for Housing Program.

Income Tax of the Sector was reported at P1.2 billion which includes

Provision for Income Tax and Final and Creditable Tax. Total tax was net of Tax Benefits of P0.2 billion reported by LBP.

Taking into account the above items, the Total Net Income at the end

of the year was P45.6 billion. The top three corporations which reported the biggest Net Income are: GSIS – P32.2 billion, PHIC – P5.7 billion and HDMF – P5.3 billion while CB-BOL – P7.4 billion and NHMFC – P1.7 billion suffered losses. Presented in Table 15 are the corporations with corresponding Net Income or Loss.

49

INFRASTRUCTURES AND PUBLIC UTILITIES

The Infrastructure and Public Utilities Sector consists of 16 parent corporations and nine (9) subsidiary corporations. Out of this corporations, nineteen corporations submitted reports for consolidation, three (3) corporations are still not available due to the delayed submission of their financial statements and audit/review is still on-going, two (2) were non-operational and due for dissolution/abolition and one (1) corporation, the Clark Development Corporation was merged to Clark Development Corporation.

Table 16 – Assets, Liabilities, Deferred Credits and Owners’ Equity

As of December 31, 2002 (in million pesos)

Assets Liabilities Deferred Credits Owners’ Equity GOCCs Percentage Percentage Percentage Percentage

Amount Distribution Amount Distribution Amount Distribution Amount Distribution Communication 1,171.8 0.1 337.9 0.0 32.0 0.2 801.8 0.4 PTNI 1,171.8 0.1 337.9 0.0 32.0 0.2 801.8 0.4 Energy 1,181,784.7 79.5 1,117,575.7 89.2 3,760.4 25.3 60,448.6 27.7 PSALM 28,773.0 1.9 27,731.2 2.2 1,426.2 9.6 (384.4) (0.2) NPC 1,153,011.7 77.6 1,089,844.5 87.0 2,334.2 15.7 60,833.1 27.8 Financing 32,530.3 2.2 23,990.8 1.9 110.0 0.7 8.429.5 3.9 LWUA 11,930.0 0.8 6,931.9 0.6 110.0 0.7 4,888.1 2.2 NEA 20,600.3 1.4 17,058.9 1.3 3,541.4 1.6 Housing 18,514.9 1.2 4,384.1 0.0 1,380.1 9.3 12,750.8 5.8 NHA 18,514.9 1.2 4,384.1 0.0 1,380.1 9.3 12,750.8 5.8 Transport 151,272.7 10.2 73,879.3 5.9 137.8 0.9 77,255.7 35.3 CPA 4,826.0 0.3 505.0 0.0 13.1 0.1 4,307.9 2.0 LRTA 26,522.1 1.8 33,399.2 2.7 (6,877.1) (3.1) MCIAA 2,378.2 0.2 218.1 0.0 19.9 0.1 2,140.2 1.0 MIAA 27,933.8 1.9 11,348.9 0.9 99.3 0.7 16,485.6 7.5 NSLC 23.2 0.0 37.7 0.0 (14.6) (0.0) NTFC 13.8 0.0 44.1 0.0 (30.3) (0.0) NLRC 1,515.9 0.1 1,369.7 0.1 146.2 0.1 PADC 212.8 0.0 77.0 0.0 2.1 0.0 133.7 0.1 PNR 11,554.3 0.8 17,417.2 1.4 (5,863.0) (2.7) PPA 75,920.7 5.1 9,378.8 0.7 66,541.8 30.4 PNOCSTC 372.1 0.0 83.6 0.0 3.4 0.0 285.2 0.1 Water 100,833.6 6.8 32,487.1 2.6 9.433.1 63.5 58,913.3 27.0 MWSS 63,133.8 4.2 24,444.7 2.0 754.2 5.1 37,934.9 17.4 NIA 37,699.9 2.5 8,042.4 .6 8,678.9 58.4 20,978.5 9.6 GRAND TOTAL 1,486,108.1 100.0 1,252,654.9 100.0 14,853.4 100.0 218,599.9 100.0 Difference between total and sum of components is due to rounding off..

The corporations under this Sector are categorized into six (6) sub-sectors namely: Communications, Energy, Financing, Housing, Transport and Water. Table 16 shows the Financial Condition of the Infrastructure and Public Utilities Sector as of December 31, 2002.

50


• Assets – P1,486.1 billion

The balance of P304.3 billTransport – P151.3 billion, WaterHousing – P18.5 billion and Comm

• Liabilities – P1,252.7 billion

Total Liabilities amounted

P1,117.6 billion was recorded by tthe Long-term Liabilities accounteP392.3 billion pertains to Loans Pay

• Owners’ Equity – P218.6 billion

At the end of the Fiscal Yeunder the sector amounted to P2highest Net Worth of P 77.3 billion

Among the corporations un

the highest positive Net Worth of with negative P6.9 billion.

51

As of December 31, 2002, the Infrastructures and Public Utilities Sector recorded a Total Assets of P1,486.1 billion, Total Liabilities of P1,267.5 billion and Owners’ Equity of P218.6 billion (Chart 7).

Out of the Total Assets ofP1,486.1 billion under this sector, Energy sub-sector posted the highest total representing 79.5 percent of the total wherein NPC topped the list with P1,153 billion or 77.6 percent.

No

Chart 7. Total Assets, Liabilities, DeferredCredits and Owners’ Equity

As of December 31, 2002 In billion pesos

ion was shared by the following sub-sectors; – P100.8 billion, Financing – P32.5 billion, unication – P1.2 billion

to P1,252.7 billion. wherein 89 percent or he Energy sub sector. Among the components, d for 85.8 percent of P1,087.1 billion wherein able – Foreign.

ar 2002, the total Net Worth of the GOCCs 18.6 billion. Transport sub-sector posted the or 35.3 percent of the total.

der the Transport sub sector, the PPA posted P66.5 million while the LRTA had the lowest

218.6

1,267.51,486.1

AssetsLiabilitiesStockholders' Equity

te: Liabilities includes Deferred Credits

As to its composition, Appraisal Surplus topped the list with 83.7 percent

or P182.8 billion followed by Paid-in Capital – P68.5 billion, Invested Surplus – P 19.5 billion, Donated Surplus – P 8.0 billion, Contingent Surplus – P2.8 billion and Restricted Capital – P 0.4 billion.

The sector showed a total deficit of P63.4 billion wherein the huge amount belongs to Energy Group.

• Deferred Credits – P 14.9 billion

Total Deferred Credits reached to P14.9 billion. Huge chunk of this account pertains to Deferred Credits to Income amounting to P 10.8 billion or 72.5 percent of the total wherein NIA under Water sub-sector contributed the biggest share, amounting P 8.7 billion. This includes income to be realized upon collection of previously billed irrigation fees and unearned income on installment sales, equipment rentals and communal irrigation system amortizations.

2.0 RESULTS OF OPERATIONS

For the year ended December 31, 2002, the Infrastructures and Public Utilities Sector incurred Expenses exceeding the generated Total Income of P151.8 billion by P35.5 billion.

Table 16 – Total Income, Total Expenses and Net Income (Loss) by Corporation

For the Year Ended December 31, 2002 (in million pesos)

GOCCs

Income

Expense

Net Income (Loss) Bef.

Share of NG

Share of

NG

Net Income Bef. Income

Tax

Income

Tax

Net Income (Loss) Bef.

Subsidy

Subsidy from NG & LGUs

Net Income (Loss)

Communication 175.0 222.1 (47.7) (47.1) (47.1) 45.0 (2.1) PTNI 175.0 222.1 (47.1) (47.1) (47.1) 45.0 (2.1) Energy 130,975.6 165,703.4 (34,727.8) (34,727.8) (34,727.8) (34,727.8) PSALM 2.7 995.5 (992.8) (992.8) (992.8) (992.8) NPC 130,975.9 164,708.0 (33,735.0) (33,735.0) (33,735.0) (33,735.0) Financing 1,959.3 3,526.3 (1,566.9) (1,566.9) (1,566.9) 786.8 (780.1) LWUA 1,346.6 1,543.4 (196.8) (196.4) (196.8) (196.4) NEA 612.7 1,982.8 (1,370.1) (1,370.1) (1,370.1) 786.8 (583.3) Housing 734.4 732.8 1.6 1.6 1.6 737.4 739.0 NHA 734.4 732.8 1.6 1.6 1.6 737.4 739.0 Transport 13,439.7 12,624.9 814.8 743.8 71.0 408.6 (337.6) 1,1,46.7 809.1 CPA 393.0 303.4 89.6 89.6 25.0 64.6 64.6 LRTA 1,262.4 3,622.3 (2,360.0) (2,360.0) (2,2360.0) 830.6 (1,529.4) MCIAA 555.3 341.1 214.2 214.2 72.8 141.4 141.4 MIAA 5,325.4 3,393.7 1,931.7 743.8 1,187.9 310.8 877.1 877.1 NSLC 1.2 8.7 (7.6) (7.6) (7.6) (7.6) NTFC 5.2 3.8 1.4 1.4 1.4 1.4 PADC 49.8 53.9 (4.1) (4.1) (4.1) (4.1) PNR 225.3 1,154.3 (929.0) (929.0) (929.0) 316.1 (612.9) PPA 5,362.0 3,488.4 1,873.6 1,873.6 1,873.6 1,873.6 PNOCSTC 260.3 255.4 5.0 5.0 5.0 5.0 Water 4,509.7 4,434.8 74.8 74.9 74.9 15.4 90.3 MWSS 3,065.2 2,479.4 585.9 585.9 585.9 585.9 NIA 1,444.5 1,955.5 (511.0) (511.0) (511.0) 15.4 (495.6)

GRAND TOTAL 151,793.8 187,244.4 (35,450.5) 743.8 (36,194.4) 408.6 (36,602.9) 2,731.3 (33,871.6)


52

During the year, the NG extended assistance in the form of subsidy amounting

to P2.7 billion to six GOCCs belonging to the the sector, and in turn due to requirement of law, the transport sub-sector turned over to the NG the amount of P0.7 billion as its share from the industry’s income. The sector also provided P0.4 million for income taxes. These factors and the loss from operation finally resulted to a net loss of P 33.9 billion for the year.

• Income – P151.8 billion

total Iby NP

compMisceP0.4 b

• Expen

Utilitand M

perce

year, PremPersoBonu

N o n-Operat ing

15.9

Operat ing 135.8

IncomInfrasUtilitibillionIncomNon-ObillionsectorhighesP131 the to

Chart 8 - Total Income by Major Category For the Year Ended December 31, 2002

(in billion pesos)

During the year, earned e of the GOCCs under the tructures and Public es Sector totalled P151.8 , composed of Operating e – P135.8 billion and perating Income – P15.9 . Among the six sub-s, Energy generated the t income amounting to billion or 86.3 percent of tal.

The Operating and Service Income which represented 89.5 percent of the ncome was Government Business Operations with P116.4 billion booked up C.

Non-Operating Income of P15.9 billion or 10.5 percent of the total osed of Income from Public Enterprises/Investments – P1.9 billion, llaneous Income–P13.9 billion, Fines and Penalties on Non-Tax Revenue – illion and Capital Revenue – P41.52 million.

ses – P187.2 billion

During the year, expenses of GOCCs under Infrastructures and Public ies Sector totaled P187.2 billion broken down as follows: P – P4.7 billion

OOE – P182.5 billion.

Topping the list with huge expenses amounting to P164.7 billion or 88 nt of the total was incurred by NPC of the Energy Sub-sector.

Personal Services represents 2.5 percent of the Total Expenses for the consisting of Salaries and Wages, Per Diem Compensation, Social, Security iums, Overtime Pay, Commutable Allowances/Fringe Benefits, Training and nnel Improvements, Consultant’s and Specialist’s Fees, and Allowances and ses and Incentives, Pensions and Other Benefits.

53

Total MOOE for the operating requirements of the corporations reached to

97.5 percent of the total expenses during the year. The expense accounts that showed material amount were: Other Services – P122.3 billion, Interest – P21.1 billion, Depreciation of Fixed Assets -P18.4 billion, loss on Foreign Exchange – P9.7 billion, Bad Debts – P2.9 billion and Other – P8.1 billion.

• Net Loss – P35.5 billion

Operation of the GOCCs under the sector resulted to a Net Loss of P35.5

billion where Expenses of P187.2 billion exceeded Income of P151.8 billion at the end of the year.

Net Loss after adding the share of the NG and Provision for Taxes with

aggregate total of P1.1 billion totalled P36.6 billion. With subsidy received from NG amounting to P2.7 billion the Net Loss was reduced to P33.9 billion as shown in Table 17.

54

INDUSTRIAL AND AREA DEVELOPMENT SECTOR The Industrial and Area Development sector consists of 47 corporations, grouped into four sub-sectors namely: Area, Energy, Real Estate and Industrial. For Fiscal Year 2002, a total of 33 corporations were included in the consolidation of the report for this sector is shown below:

Actual No. of Corporation No. of Corporations Included in this Report Sub-Sector

Parent Subsidiary Total Parent Subsidiary Total Area 4 1 5 4 1 5 Energy 1 9 10 4 4 Real Estate 1 7 8 6 6 Industrial 6 18 24 6 12 18 Total 12 35 47 10 23 33


As of December 31, 2002, the combined Assets of the corporations under this sector totaled P182.6 billion while Liabilities aggregated to P57.2 billion. The Owners’ Equity, considering the negative Retained Earnings of P6 billion, amounted to P113 billion. Details of these accounts by sub-sector and by corporation are shown in Table 18 below:

Table 18. Assets, Liabilities, Deferred Credits and Owners' Equity As of December 31, 2002

(in million pesos)

Assets Liabilities Deferred Credits Owners' Equity Particulars

Amount % Distribution Amount %

Distribution Amount % Distribution Amount %

Distribution

GRAND TOTAL 182,607.5 100.0 57,197.4 100.0 12,392.8 100.0 113,024.4 100.0 Area Development CDC 3,204.8 1.8 588.1 1.0 16.2 0.1 2,600.5 2.3 SPDA 897.4 0.5 36.5 0.1 15.8 0.1 845.2 0.8 HSDC 874.3 0.5 73.1 0.1 801.2 0.7 PDA 609.8 0.3 519.0 0.9 90.8 0.1 LLDA 250.9 0.1 34.0 0.1 216.9 0.2 Sub-total 5,837.2 3.2 1,250.7 2.2 32.0 0.3 4,554.5 4.0 Energy PNOC-EC 15,194.2 8.3 14,276.4 25.0 917.8 0.8 PPDC 3,267.6 1.8 260.9 0.5 4.1 0.0 3,002.6 2.7 MGC 114.0 0.1 33.5 0.1 80.5 0.1 IGSI 20.8 0.0 76.6 0.1 (55.9) (0.1) Sub-total 18,596.5 10.2 14,647.4 25.6 4.1 0.0 3,945.1 3.5

55

Assets Liabilities Deferred Credits Owners' Equity Particulars



Distribution

Real Estate

PEA 26,296.1 14.4 10,891.2 19.0 9,709.8 78.4 5,695.2 5.0

BLCI 40.8 0.0 1.0 - 39.8 0.0 FCIEI 15.8 0.0 6.3 0.0 9.5 0.0 GYREI 9.8 0.0 0.1 - 9.7 0.0 KRC 6.7 - 0.0 - 6.6 0.0 PRC 2.5 - 0.1 - 2.4 - Sub-total 26,371.7 14.4 10,898.8 19.1 9,709.8 78.4 5,763.2 5.1 Industrial BCDA 80,314.1 44.0 5,909.0 10.3 1,148.3 9.3 73,256.7 64.8 SBMA 26,991.2 14.8 5,589.6 9.8 1,230.7 9.9 20,170.9 17.9 NDC 12,560.4 6.9 11,332.6 19.8 1,227.8 1.1 PEZA 5,306.8 2.9 3,584.4 6.3 14.3 0.1 1,708.1 1.5 PIA 2,512.7 1.4 1,961.6 3.4 244.5 2.0 306.7 0.3 FCCC 1,397.5 0.8 1,362.8 2.4 34.7 0.0 CEZA 649.3 0.4 11.9 0.0 637.4 0.6 ZCEZA 551.2 0.3 12.3 0.0 7.0 0.1 538.8 0.5 BTPI 444.6 0.2 344.6 0.6 100.0 0.1 BMHI 382.8 0.2 82.7 0.1 300.1 0.3 JHMC 215.5 0.1 33.1 0.1 182.4 0.2 PDMC 112.3 0.1 5.5 0.0 2.2 0.0 104.6 0.1 PPDC 174.5 0.1 3.7 0.0 170.9 0.2 FSC 84.1 0.1 7.5 0.0 76.6 0.1 DBPDC 52.3 0.0 30.7 0.1 21.6 0.0 DBPMC 27.4 0.0 2.2 - 25.2 0.0 NPCTI 23.0 0.0 125.7 0.2 (102.7) 0.1) NSC 2.5 - 0.7 - 1.9 - Sub-total 131,802.1 72.2 30,400.5 53.2 2,647.0 21.4 98,761.6 87.4 Difference between totals and sum of components is due to rounding off.

1.1 Assets – P182.6 billion

The Industrial Sub-sector being the biggest group under this sector, registered P131.8 billion or 72.2 percent of the total assets. The Real Estate Sub-sector recorded P26.4 billion or 14.4 percent, while the Energy Sub-sector registered a total assets at P18.6 billion or 10.2 percent. The Area Sub-sector owns P5.8 billion or a mere 3.2 percent.

Among the corporations shown in Table 18, the BCDA topped in

terms of assets with P80.3 billion seconded by SBMA holding a value of P27 billion. PEA ranked third with assets worth P26.3 billion followed by PNOC-EC sharing a P15.2 billion worth of assets.

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The total assets of this sector is composed of the following major classification:

Account Classification Amount (in million pesos)

Current Assets P33,133.9 Other Assets 5,660.3 Contingent Assets 147.8 Investments 64,028.3 Fixed Assets – net 79,637.1

Total P182,607.5

• Investments and Fixed Assets – P143.6 billion

Fixed Assets – P79.6 billion

Fixed Assets worth P79.6 billion is net of accumulated depreciation of P8.4 billion. It marked the largest component of the total assets representing a notable 43.6 percent. The bulk of this account amounting to P71.1 billion is related to Land and Land Improvements. The amount of P43.1 billion pertains to the assessed value of properties located at Fort Bonifacio owned by BCDA. SBMA had a total amount of P18.7 billion, PEZA–P3.1, CDC – P2.4 billion and PEA – P1.4 billion.

Investments – P64 billion

Total Investments of this sector valued at P64 billion or 35.1

percent of the total assets. Major components of the Investments account are recorded in the following corporations:

Amount Corporation (in million pesos) Nature Total Detail 1. BCDA 28,242.5 25,950.9 Investments in shares of stocks 2,291.6 Investments in realty which pertains to the lots

purchased from Fort Bonifacio Development Corporation including related taxes and registration fees

2. PNOC-EC 13,380.4 12,617.4 Investments in various oil and gas projects with

other oil companies to reduce the company’s risk exposure and at the same to be able to explore more areas

763.0 Cost of exploration and development to provide

future economic benefit

3. PEA 11,988.2 8,620.0 Investment in Public Enterprise

3,368.2 Other investments

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Amount Corporation (in million pesos) Nature Total Detail 4. PPDC 3.1 1.0 Net of investment with Petro Chemical

Corporation of P246 million reduced to P245 million due to recognition of impairment loss

.3

Net Investment in Petron Corp of P1.46 million reduced by P1.2 million due to the provision of allowance for decline in the value of the investments.

1.8 Other Investments

5. SPDA 638.0 Investments in corporate projects

6. HSDC 418.4 Investments in stocks and bonds

• Current Assets – P33.1 billion

Total Current Assets of P33.1 billion contributed to a negligible 18.1 percent of the total assets. Cash and Cash Equivalents of P4.5 billion, Short-term Investments of P3.1 billion, Receivables – net of P16.6 billion and Inventories of P5.8 billion and Other Current Assets of P3.1 billion constitute the total Current Assets. The top ten corporations with the highest amount of Current Assets are as follows:

Corporation Amount

(in million pesos)

1. PEA 9,601.7 2. BCDA 8,504.5 3. SBMA 5,689.4 4. PPDC 2,021.4 5. PNOC-EC 1,716.0 6. PEZA 1,579.7 7. NDC 1,250.7 8. CDC 597.6 9. BMHI 309.8 10. PIA 306.9

Short-term Investments

Short-term Investments include placements in government

securities and certificates of deposits with government banks and the BTR with original maturities of more than three months but less than one year-term. These are stated at cost.

58

The following corporations ventured in this type of

investment:

Corporation Amount

(in million pesos) 1. PPDC 1,075.4 2. BCDA 911.8 3. NDC 507.7 4. BHMI 178.0 5. CDC 88.0

Receivables – GOCCs – P5.9 billion

Receivables – GOCCs with an amount of P5.9 billion shared

35.8 percent of the total Receivables. The figure of P4.1 billion pertains to advances to Toll Regulatory Board (TRB). These advances were disbursed for the right of way acquisition by TRB for the C-5 Expressway of Manila Cavite Toll Expressway Project (MCTEP) financed from the Foreign Currency Deposit Unit (FCDU) loan obtained by PEA for the TRB. The amount also includes the effects of the changes in foreign exchange rates totaling P919.2 million and P738.1 million as of December 31, 2002 and 2001, respectively.

Receivables – Trade/Business – P4.8 billion

Receivable –Trade/Business of P4.8 billion represents 29

percent of the total Receivables. The major components of this account are as follows:

1. SBMA – P2.6 billion - from its various operations 2. PNOC-EC – P1.2 billion - includes share from one of its

oil and gas projects, and receivables from customers of Energy Supply Base and Coal Projects

3. PPDC – P103.9 million - receivables from locators for administrative dues

Accounts Receivable – Miscellaneous – P6 billion

Accounts Receivable - Miscellaneous with a value of P6

billion is 35.9 percent of the total receivables. BCDA holds a significant P5 billion receivables from various entities pertaining to unpaid lease rentals, shares from sale of condominium units and property dividends, among others. PNOC-EC also shared P113.9 million from rentals and advances from joint venture projects.

59

Inventories – P5.8 billion

The bulk of the inventory consists of Items for Sale of the PEA which represents 84.8 percent or a total of P4.9 billion.

• Other Assets – P5.7 billion

Other Assets registered at P5.7 billion representing a very minimal

pie of only 3.1 percent of the total assets. The greatest portion of this account belong to PEA in the amount of P3.2 billion representing assets entrusted to PEA for DENR, National Statistics Office, Office of the Ombudsman, and various Government Financial Institutions.

1.2 Liabilities – P57.2 billion

As shown in Table 18 on page 55, the Industrial Sub-sector reported

53.1 percent of the total liabilities or P30.4 billion. It is followed by the Real Estate Sub-sector with total liabilities of P10.9 billion or 19.1 percent.

Of the total liabilities, 50.5 percent or P28.9 billion is Long-term

Liabilities, 26.4 percent or P15.1 billion is Other Liabilities and 23.1 percent or P13.2 billion are Current and Contingent Liabilities.

• Long-Term Liabilities – P28.9 billion

This includes Foreign Loans – P13.2 billion, Bonds Payable – P8.2

billion; Loans and Advances to NGAs, LGUs and other GOCCs – P3.0 billion; Domestic Loans – P1.4 billion and Miscellaneous – P3.0 billion.

Among the government corporations under the Industrial and Area

Development Sector which availed of long-term loans are the following:

Corporation Amount

(in million pesos) Nature

Foreign loans: SBMA 4,363.5 Loans from World Bank, Exim Bank and JBIC PEA 3,481.2 Foreign currency depository unit loan to finance

the C5 Link Expressway of Manila Cavite Toll Expressway Project (MCTEP)

NDC

1,687.7 Loan from OECF and Marubeni Corporation for the construction of the Leyte Port Complex

PIA 1,436.6 Loan from JBIC for the implementation of the Mindanao Container Terminal Project

PEZA 1,289.0 Includes outstanding loan from OECF for the development of regular economic zones

Bonds Payable: NDC 7,000.0 Agri-Agra (AA) Bonds used to fund projects

which would increase productivity of the agriculture and agrarian sector

60

Corporation

Amount (in million pesos) Nature

BCDA 1,200.0 BCDA bonds with a term of 5 years and 1 day

issued to partially finance the Subic Clark-Tarlac Expressway, development of Special Economic Zones and other infrastructure projects

Domestic: NDC

- DBP 320.0 For the acquisition of assets of the Lakeview Industrial Corporation

Miscellaneous PNOC-EC 2,992.7 Net entitlements of PNOC-EC of Offshore

Northwest Palawan Project 159.7 Future Abandonment Cost representing 10% share

of the $22.4 million estimated abandonment cost of Malapaya Gas Development Project

• Other Liabilities – P15.1 billion

Other Liabilities of P15.1 billion is 26.4 percent of the total

Liabilities. These are accounted for as obligations of PNOC-EC – P11.5 billion, PPDC – P223.1 million and MGC – P17 million, all of the Energy Sub-sector and PEA – P3.2 billion of the Real Estate Sub-sector.

• Current Liabilities – P13.2 billion

Current Liabilities registered a total of P13.2 billion or 18.9

percent of the aggregate liabilities. It comprises the following: Payables – P8.2 billion, Trust Liabilities – P2 billion, Depository Liabilities – P0.1 billion and Other Current Liabilities – P2.8 billion.

The bulk of Unliquidated Obligations/Accounts Payable belongs to

the following:

Corporation Amount

(in million pesos) Nature of Obligation/Payable

BCDA 1,438.7 Outstanding obligations for undelivered property amounting to P1,074.91 million.

HSDC 61.1 Obligation in connection with Rural Bliss Program, Special Bliss Project and the Shelter/Livelihood Project and Operation

58.5 Unliquidated obligations of defunct agencies pertaining to Rural Bliss Program, Special Bliss Program and Shelter/Livelihood Project and Operation as a result of unsubmitted Report of Disbursements/liquidation reports.

SPDA 27.9 Unliquidated obligations of previous administrator representing checks returned by the LBP due to change in signing authority upon assumption of the new Administrator, which remain unreplaced as of December 31, 2002

61

The main component or 60 percent of the Trust Liabilities amounting to P1.2 billion pertains to lease rentals collected by Camp John Hay Development Company and John Poro Point Development Company for the beneficiaries of the Camp John Hay Lease.

1.3 Deferred Credits – P12.4 billion

Eighty two percent of the total Deferred Credits or P10.2 billion

belongs to the PEA which consists of the following:

Particulars Amount

(in million pesos)

1. Difference between the agreed value of its land share per Joint Venture Agreement and the cost of its investment 3,608.2

2. 1995 approved value of land share for reclamation and development 5,205.1

3. Value of land reclaimed in payment for the upgrading of R-1 Expressway being amortized as income over the 35-year franchise period 135.1

4. Income from lease purchase agreement with Sandigan, BIR and Office of the President 953.3

5. Conditional sale of Canacao Bay Reclamation Project, Condo unit buyers at PEA’s Coastal Plaza Condo Projects and awardees of Pabahay 2000 Housing Program 12.4

6. Share on Seaside Channel Reclamation at net cost 279.6 Total P10,193.7

1.4 Owners’ Equity – P113 billion

Matching total Assets versus total Liabilities including the Retained

Earnings resulted in a positive net worth of P113 billion. The components of the Net Worth or Owners’ Equity are as follows:

Account Amount

(in million pesos)

Paid-In Surplus 116,193.5 Contingent Surplus 2,326.4 Donated Surplus 482.2 Appraisal Surplus 39.4 Invested Surplus 26.3 Restricted Capital 1.8 Retained Earnings (6,045.2)

Total 113,024.39

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Investments of the National Government under this sector are

accounted as Paid-in Capital totaling P116.2 billion. Ninety nine percent or P115.9 billion of the government investment was distributed to the following corporations:

Corporation

Amount (in million pesos)

BCDA 68,542.2 SBMA 19,942.5 NDC 8,972.0 PEA 3,248.3 CDC 2,655.5 PIA 2,512.7 PPDC 2,400.0 PEZA 2,136.0 PNOC-EC 2,023.9 HSDC 1,970.1 FCCC 1,500.0

Total 115,903.2

Donated Surplus aggregated to P482.2 million. Ninety seven percent of the total is distributed as follows:

Corporation Amount (in million

pesos) Nature of Obligation/Payable

PNOC-EC 130.3 Cost of donated gas turbine by the Canadian International Development Agency (CIDA)

PEZA 177.9 Donations from various government agencies and private agencies of P63.9 million and P113.9 million, respectively

NDC 112.7 Value of land donated by American companies upon the termination of the American Parity Agreement

PDA 48.0 Various properties and equipment donated by various national government agencies

BCDA 1.2 ______

Value of properties donated by PCI and Mitsui, Inc. amounting to P1 million and the Urban Bank amounting to P0.2 million

Total P470.1

The Invested Surplus account is reported only in the books of CEZA.

This refers to land, buildings, wharves, bulkheads, roads and causeway totaling P26.3 million.

Appraisal Surplus of P2.3 billion for the entire sector was recorded in

the following corporations, namely: PEA – P1.5 billion, PPDC – P0.8 billion, PEZA – P0.09 billion and SPDA – P4.4 million.

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The total Contingent Surplus totaled P39.4 million. HSDC’s P19.5

million represents possible recovery of disbursed funds found to be irregular including PEZA and LLDA with P7.2 million and P4.9 million, respectively. Disallowances were reported by BCDA – P1 million, CEZA – P3.2 million, PEA – P1.5 million, JHMP – P1.7 million and SPDA – P0.4 million.

The Restricted Capital for the sector amounted to P1.8 million which

belong to LLDA.

2.0 RESULTS OF OPERATION

The overall operation of the Industrial and Area Development Sector produced a gross income of P9.8 billion. For Fiscal Year 2002, expenses of this sector including the provision for income tax of P465.8 million accumulated to P12.7 billion. As a result, a Net Loss Before Subsidy was arrived at P3.4 billion. Details of income and expenses as well as the results of operation by Sub-sector/corporation are reflected in the table below:

Table19. Total Income, Expenses and Net Income (Loss)

December 31, 2002 ( in million pesos )

Sub-sectors/ GOCCs Income Expenses

Net income Before

Subsidy

Subsidy from NG

and GOCCs

Net Income (Loss)

Area CDC 490.3 471.7 18.5 18.5 LLDA 98.0 92.1 6.0 6.0 SPDA 20.4 40.1 (19.7) 15.0 (4.7) PDA 5.8 15.2 (9.5) 5.0 (4.5) HSDC 0.3 0.8 (0.5) (3.0)

Energy PNOC-EC 899.6 2,040.5 (1,270.1) (1,270.1) PPDC 117.1 402.4 (290.9) (290.9) MGC 5.3 11.1 (7.4) (7.4) IGSI 4.5 2.1 (1.7) (1.7)

Real Estate PEA 176.3 149.9 22.4 22.4 BLCI 7.2 7.0 0.2 0.2 FCIEI 1.4 2.5 (1.1) (1.1) KRC 0.7 0.8 (0.1) (0.1) PRC 0.5 0.5 0.0 0.0 GYREI 0.4 0.1 0.2 0.2

Industrial PEZA 4,129.3 3,517.7 415.9 415.9 SBMA 2,167.1 2,032.1 135.0 135.0 NDC 872.5 1,068.3 (300.6) (300.6) FSC 369.3 389.2 22.8 22.8

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Sub-sectors/ GOCCs Income Expenses

Net income Before Subsidy

Subsidy from NG and GOCCs

Net Income (Loss)

BCDA 240.0 1,728.3 ( 1,490.5) (1,490.5) PIA 74.4 72.8 0.8 60.4 61.2 PDMC 39.5 36.3 3.1 3.1 DBPDC 49.6 43.0 4.5 4.5 BMHI 17.7 17.8 (0.2) (0.2) CEZA 7.6 36.1 (28.6) 40.6 11.4 ZCEZA 7.3 42.7 (35.4) 30.0 5.4 FCCC 4.4 435.2 (430.8) (430.8) DBPMC 3.5 0.8 2.2 2.2 JHMP 2.6 41.0 (38.4) 29.9 (8.5) NPCI 0.8 0.0 0.7 0.7 PPDC 0.3 27.4 27.1 26.0 (1.1) NSC 0.1 0.0 0.1 0.1

Grand Total 9,813.4 12,726.3

(3,378.7) 206.4 (3,172.3)


2.1 Income- P9.8 billion

The industrial group generously contributed P8 billion or an amount equal 81.4 percent of the total Income. The remaining 18.6 percent was shared by: the energy group with P0.9 billion, real estate group with P0.2 billion and area group of P0.6 billion.

Among the thirty two corporations, PEZA ranked number one in terms of income generated. It earned a total of P4.1 billion or 42.1 percent of the gross income for the sector. SBMA followed having produced an income of P2.2 billion or significant share of 22.1 percent. PNOC-EC contributed P0.9 billion or a considerable 9.2 percent. NDC was able to give a part of 8.9 percent or an amount figure of P0.9 billion in income and CDC shared P0.5 billion or a minimal 5 percent. In total, the income generated by these five corporations already totaled to 87.3 percent of the gross income for the entire Sector. The bulk of the income which is P9.1 billion or 92.5 percent came from Operating and Service Income while the remaining balance of P0.7 billion or a pie of 7.5 percent was generated and considered Non-Operating Income. Income from Government Services of P3.6 billion, Government Business Operations of P2.1 billion and Rental Income of P2.2 billion totaled 87 percent of the total Operating and Service Income.

65

2.2 Expenses- P12.7 billion

In relation to the income generated, the industrial sub-sector lead the groups in terms of expenses. The group incurred almost 74.6 percent or P9.5 billion of the total expenses for the sector. Although this group generated 81.4 percent of the gross income for the sector, its income is less by P1.5 billion than its expenses. The energy group obligated P2.5 billion in expenses which is also P1.4 billion more than its generated income. The area group expended P0.6 million which is just a bit less than its generated income of P0.6 million. Only the operation of the real estate group resulted to a positive variance since it incurred expenses of only P153.8 million which is P32.6 million less than its generated income. PEZA incurred the biggest expenses among the corporations. Comparing however its expense of P3.5 billion with its generated income is a positive variance of P0.6 billion. PNOC-EC followed PEZA incurring P2.0 billion which when compared to its income is a negative variance of P1.1 billion. Next to PNOC-EC in terms of expenses is SBMA since it incurred a total of P2.0 billion. The operation of this corporation resulted positively since its earned income is more by P135 million. BCDA incurred P1.7 billion in expenses which is much bigger than its income by P1.5 million. Total expenses incurred by these four corporations already make up 73.3 percent of the total expenses of the sector. Expenses were classified into Personal Services (PS) and Maintenance and Other Operating Expenses (MOOE). PS of P1.6 billion represents only 11.8 percent of the total expenses while MOOE totaled to P11.1 billion scoring 84.7 percent.. The bulk of PS is Salaries and Wages serving a total of P1.2 billion or 80 percent of the total PS. FSC paid P305.7 million, SBMA obligated P292.4 million, CDC expended P116 million for Salaries and Wages.

The major components of MOOE are as follows:

in million pesos Other Services 4,971.1 Water, Illumination and Power Services 3,101.5 Depreciation of Fixed Assets 1,022.0 Interests 944.6 Loss on foreign Exchange 509.1

The above components are 94.4 percent of the total expenses for MOOE.

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Other Services totaling P5 billion captured 44.5 percent share of

the total MOOE. PNOC-EC incurred P2 billion and BCDA obligated P1.4 billion. Losses on Investments of P2.3 million by CDC are among the expenses classified under Other Services.

Losses on Sale of Fixed Assets of P3.2 million was disclosed by both the CDC and MGC amounting to P1.5 million and P1.6 million respectively. Water, Illumination and Power Services marks the 2nd biggest expense account under MOOE with P3.1 billion or equivalent to 27.8 percent of the total MOOE. PEZA incurred P2.5 billion or 80 percent of the total amount spent for Water, Illumination and Power Services followed by SBMA which incurred P593.6 million or 19.1 percent. The following corporations also incurred considerable big amounts: BCDA – P6.2 million, FSC – P4.3 million and PIA – P3.6 million. Depreciation of Fixed Assets amounting to P1,022 million took 9.2 percent share of the total MOOE. This account was recognized by the following corporations as follows: SBMA – P428.2 million, FCC – P188.9 million, PEZA – P149.7 million, CDC – P89.1 million, and NDC –P71.2, total of which represent 90.7 percent of the Depreciation of Fixed Assets for the sector. Dividends paid by the Industrial and Area Development Sector accumulated to P494.4 million. PEZA – P293.8 million, PNOC – P167 million, PEA – P29.1 million, LLDA – P3.5 million and PIA – P1 million. This sector paid a total amount of P623.8 million in Taxes and Licenses.

2.3 Net Loss- P3,378.7 million

Except for the Real Estate Sub-sector which declared Net Income Before Subsidy of P21.6 million all the other three sub-sectors suffered a Net Loss Before Subsidy summing–up to P3,400.3 million or a total net loss of P3,378.7 million for the entire sector. As a whole, eighteen corporations declared a Net Loss Before Subsidy totaling P4 billion while fourteen corporations confirmed a net income of P597.6 million.

67

Four corporations received subsidies from the National Government in the total amount of P150.4 million and two corporations received subsidies from another corporations amounting P55.9 million.. Of the fourteen corporations which registered net income, ten set aside provision for income tax and of the eighteen corporations which declared net loss, only eight provided for income tax.

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AGRICULTURAL, TRADING AND PROMOTIONAL SECTOR This Sector is composed of 38 corporations, 17 of which are parent corporations

and 21 subsidiaries. In Fiscal Year 2002, there were 41 corporations composed of 17 parents and 24 subsidiaries, but with the abolition/dissolution of three subsidiaries, namely: NDCPI, HDC and NASUTRA, it was trimmed down to 38. This Sector is further grouped into five sub-sectors according to specific functions, namely: Agricultural, Financing, Manufacturing, Promotional and Trading. The number of existing corporations and those included in this report grouped by sub-sector is shown below:

Existing No. of Corporations No. included in this Report Sub-sector Parent Subsidiary Total Parent Subsidiary Total

Agricultural 1 6 7 1 0 1 Financing 2 1 3 2 1 3 Manufacturing 1 6 7 1 2 3 Promotional 11 6 17 11 5 16 Trading 2 2 4 2 1 3

Total 17 21 38 17 9 26

1.0 FINANCIAL CONDITION For Fiscal Year 2002, Total Assets reported by this sector aggregated

P53.7 billion, Total Liabilities of P46.7 billion, Deferred Credits of P611.5 million and the balance representing Owners’ Equity of P6.4 billion.

Table 20. Total Assets, Liabilities, Deferred Credits and Owners' Equity


Assets Liabilities Deferred Credits Owners' Equity Government Owned and/or

Controlled Corporations



Distribution

GRAND TOTAL 53,713.2 100.0 46,683.6 100.0 611.5 100.0 6,418.1 100.0 Agricultural PRRI 1,193.0 2.2 188.5 0.4 - - 1,004.5 15.7 Sub-total 1,193.0 2.2 188.5 0.4 - - 1,004.5 15.7 Financing KKK-PCA 946.8 1.8 497.2 1.1 2.0 0.3 447.6 7.0 PHILSUCOR 3,575.4 6.7 4,563.8 9.8 - (988.4) (15.4) QUEDANCOR 4,295.9 8.0 3,514.1 7.5 - 781.8 12.2 Sub-total 8,818.1 16.4 8,575.0 18.4 2.0 0.3 241.0 3.8 Manufacturing NFC 149.3 0.3 598.2 1.3 - (448.9) (7.0) MPCP 877.4 1.6 76.9 0.2 - 800.5 12.5 NDA 472.0 0.9 366.5 0.8 39.5 6.5 66.0 1.0 Sub-total 1,498.7 2.8 1,041.5 2.2 39.5 6.5 417.7 6.5 Promotional PTA 6,860.1 12.8 789.4 1.7 - 6,070.7 94.6 PCA 1,958.7 3.6 1,595.0 3.4 10.8 1.8 352.9 5.5

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Assets Liabilities Deferred Credits Owners' Equity Government Owned and/or

Controlled Corporations



Distribution

SRA 1,119.8 2.1 534.4 1.1 - 585.3 9.1 GTEB 1,104.1 2.1 48.0 0.1 74.7 12.2 981.4 15.3 PFDA 735.3 1.4 771.7 1.7 18.3 3.0 (54.6) (0.9) MTA 517.7 1.0 142.2 0.3 1.3 0.2 374.2 5.8 BFO 460.5 0.9 5.3 0.0 - 455.2 7.1 PCEC 421.7 0.8 30.2 0.1 - 391.5 6.1 CITEM 380.4 0.7 71.0 0.2 - 309.4 4.8 NRDC 366.9 0.7 86.7 0.2 42.2 6.9 238.0 3.7 CITC 81.3 0.2 5.2 0.0 - 76.1 1.2 PCVC 76.6 0.1 35.3 0.1 0.4 0.1 40.9 0.6 MRHI 44.4 0.1 8.0 0.0 - 36.4 0.6 PCPDSSD 2.1 0.0 0.1 0.0 - 1.9 0.0

Sub-total 14,129.5 26.3 4,122.6 8.8 147.6 24.1 9,859.3 153.6 Trading NFA 24,136.4 44.9 31,037.4 66.5 422.4 69.1 (7,323.4) (114.1) FTI 3,550.5 6.6 1,616.1 3.5 - 1,934.4 30.1 PITC 387.0 0.7 102.4 0.2 - 284.6 4.4 Sub-total 28,074.0 52.3 32,756.0 70.2 422.4 69.1 (5,104.4) (79.5)


Total Assets as of December 31, 2002 amounted to P53.7 billion, net

of allowance for doubtful accounts, accumulated depreciation, allowance for obsolescence and inventory variance. The Trading Sub-sector posted the highest amount of P28.1 billion or 52 percent, followed by the Promotional Sub-sector – P14.1 billion, the Financing Sub-sector – P8.8 billion, Manufacturing Sub-sector – P1.5 billion, and Agricultural Sub-sector – P1.2 billion. Shown in Table 20 are the Assets, Liabilities, Deferred Credits and Owners’ Equity by sub-sector and by corporation.

Total Assets consist of Current Assets – P28.8 billion or 54 percent,

Investments and Fixed Assets – P15.2 billion or 28 percent and Other Assets – P9.6 billion or 18 percent.

Current Assets, of P28.8 billion is composed mainly of Inventories

amounting to P14.4 billion or 50 percent, the bulk of which pertains to Items for Sale of the NFA under the Trading Sub-sector. Receivable amount came next at P8.2 billion or 29 percent, and Cash accounts of P5.9 billion or 20 percent of the total current assets.

Investments and Fixed Assets registered a total amount of P15.2

billion, 90 percent of which or P13.8 billion are Fixed Assets accounts. The Promotional Sub-sector registered the highest amount of Fixed Assets at P7.4 billion, P5.6 billion of which is owned by the PTA. The Trading Sub-sector has the second highest of fixed assets at P5.1 billion shared by the FTI and NFA for P3 billion and P2.1 billion, respectively; and the balance of P43.7 million is owned by the PITC.

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Total Liabilities was P46.7 billion, the components of which are as

follows: Current Liabilities – P35.3 billion or 76 percent, Long-Term Liabilities P8.1 billion or 17 per cent and Other Liabilities P3.2 billion or 7 percent. The NFA under the Trading Sub-sector has the highest liabilities amounting to P31 billion or 67 percent. PHILSUCOR and QUEDANCOR under the Financing Sector ranked second and third with P4.6 billion and P3.5 billion, respectively. The rest of the corporations under this sector reported total liabilities of P7.6 billion.

The most significant balances in the Current Liabilities accounts are the Notes and Acceptances and Payable – Trade/Business accounts of the NFA, amounting to P15 billion and P10.9 billion, respectively. Unliquidated Obligations/Accounts Payable totaling P1.9 billion accounted for 5 percent of the total Current Liabilities, mostly of NFA under the Trading Sub-sector, while Trust Liabilities of P2.2 billion, the bulk of which pertains to the Promotional Sub-sector amounting to P1 billion.

1.3 Owners’ Equity - P6.4 billion

Owners’ Equity had an aggregate amount of P6.4 billion. Details of

the equity are shown in Table 20. The Retained Earnings with a negative amount of P15.1 billion

resulted from deducting the total deficit incurred by FTI, NFA, BFI, SRA, CITC, NRDC, NTA, NFC and MPCP Corporation with the net income earned by PITC, PCVC, GTEB, CITEM, PFDA, PCA, PTA, QUEDANCOR and PHILSUCOR. The Promotional and Agricultural sub-sectors posted positive Retained Earnings with the amounts of P2.7 billion and P100.5 million, respectively, but were overshadowed by the negative Retained Earnings incurred by the Financing, Trading and Manufacturing sub-sectors which reported deficits of P1.4 billion, P16.2 billion and P660.9 million or a total of P18.2 billion. Of the 24 corporations in this sector, eight registered net operating income and the remaining 16 incurred net losses.

2.0 RESULTS OF OPERATIONS 2.1 Income – P21.8 billion

Total income realized by this sector amounted to P21.8 billion which is 5 percent of the total income earned by the corporate sector. It consists of Operating Income – P21.3 billion and non-operating income – P437.4 million. The NFA under the Trading sub-sector is the highest income earner under this sector with P18.4 billion or 84.4 percent of the total income. Among the other

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sub-sectors, the Promotional is second with a total P2.1 billion contributed mainly by PTA – P793 million, PFDA – P405.3 million, GTEB – P264.1 million, and PCA – P193.3 million.


The aggregate expenses of this sector reached P27.4 billion which is

6.5 percent of the total expenses incurred by the corporate sector. The bulk of the total was increased by NFA under the Trading Sub-sector amounting to P23.4 billion QUEDANCOR of the Financing Sub-sector of P289.3 million, PRRI under Agricultural Sub-sector of P289.7 million.

Under MOOE, the expense account with the highest amount of

P18.2 billion went to Trading/Production Expense of the NFA alone. The next highest expense account is on interests amounting to P1.5 billion, incurred by four sub-sectors, namely: Trading – P1.4, Financing – P123.9 million, Promotional – P13.3 million and Manufacturing – P1.6 million. These interests expense were for bank loans and long-term domestic and foreign loans. Other items of expenses with material amounts were the following; Other Services – P794.3 million, Supplies and Materials – P410.6 million and Rent Expenses – P383.7 million. Valuation for depreciation of Fixed Assets amounted to P684.2 million.

2.3 Net Loss – P3.8 billion

Only the Financing Sub-sector registered a net income before subsidy

from National Government and other NGAs from operations in the amount of P153.5 million. The other four sub-sectors incurred net losses, these are: Trading – P5 billion, Promotional – P454.2 million, Agricultural – P233 million and Manufacturing – P96.5 million.

A total of P1.9 billion was received by this sector as subsidy from the

National Government with the Trading Sub-sector, particularly the NFA getting the biggest share of P902 million. Second highest went to the Promotional Sub-sector with P593.6 million which was shared by eight of its 11 parent corporations; the Agricultural Sub-sector, particularly the PRRI got P333.6 million posting the third highest, and lastly the Manufacturing Sub-sector, its sole parent corporation – the NDA got P58 million.

After considering the subsidies, three of the five sub-sectors reported

net income of P398.7 million while the two sub-sectors had a total net loss of P4.2 billion.

Of the 24 corporations in this sector, eight registered net income while

the remaining 16 corporations incurred net losses.

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EDUCATIONAL, SOCIAL, CULTURAL, SCIENTIFIC, CIVIC

AND RESEARCH SECTOR This Sector is composed of 20 corporations, 17 of which are parent corporations and three are subsidiaries. It is subdivided into six sub-sectors grouped according to their specific functions which are: Educational, Social, Cultural, Scientific, Civic and Research. 1.0 FINANCIAL CONDITION


Total Assets posted by this Sector amounted to P33.1 billion consisting of Current Assets – P12.9 billion or 38.9 percent of the total Miscellaneous Assets and Deferred Charges – P846.8 million or 25.59 percent, Contingent Assets – P97.9 million or 0.3 percent, Other Assets – P1.2 billion or 3.7 percent, Investments – P2 billion or 5.9 percent and Fixed Assets – P16.1 billion or 48.6 percent.

Table 22. Total Assets, Total Liabilities and Owners’ Equity


Assets Liabilities Owners’ Equity

Percentage Percentage Percentage GOCCs Amount Distribution Amount Distribution Amount Distribution

GRAND TOTAL P33,084.80 100.0 P11,408.91 100.0 P21,675.90 100.0

Educational DAP 235.0 0.7 167.2 1.5 67.8 0.3 Social 7586.3 PAGCOR 3749.0 11.3 2911.5 25.5 837.5 3.9 OWWA 3638.3 11.0 119.5 1.1 3518.8 16.2 OSHC 183.7 0.6 7.2 0.1 176.5 0.8 PVAC 10.5 0.0 10.5 0.1 LINSI 4.8 0.0 14.7 0.1 -9.8 -0.1 Cultural 9394.3 NPFI 7646.1 23.1 17.7 0.2 7628.5 35.2 CCP 1517.0 4.6 80.6 0.7 1436.4 6.6 PICCI 231.1 0.7 136.5 1.2 94.6 0.4 Scientific TLRC 3369.9 10.2 1693.7 14.9 1676.2 7.7 Civic 11901.1 PCSO 4838.5 14.6 4987.6 43.7 -149.1 -0.7 LCP 4375.9 13.2 452.2 4.0 3923.8 18.1 NKTI 1204.8 3.6 375.4 3.3 829.4 3.8 PHC 1065.0 3.2 298.3 2.6 766.7 3.5 PCMC 416.9 1.3 111.9 1.0 305.1 1.4 Research PIDS 366.4 1.1 24.2 0.2 342.2 1.6 PITACH 131.8 0.4 10.7 0.1 121.0 0.6 PCED 100.0 0.3 0.1 0.0 99.9 0.5 Difference between totals and sum of components is due to rounding off.

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• Current Assets – P12.9 billion

Among the Current Assets of P12.9 billion, Cash and Cash Equivalents of P5.6 billion or 43.7 percent constituent the bulk. Cash in Bank of P3.9 billion represents the biggest portion of Cash and Cash Equivalents. Of this amount, P1.8 was reported by PCSO, PAGCOR also reported a huge amount of P926.9 million Cash in Bank.

• Cash and Cash Equivalents- P1.2 billion

Cash Equivalents of P1.2 billion was reported mostly by

PAGCOR, sharing an amount of P876.4 million.

• Short-term Investments – P4.3 billion

Current Assets also include Short-Term Investments of P4.3 billion or 33.2 percent of the Total Assets. The amount of P2.1 billion or 49.6 percent was reported by OWWA composed of Treasury Bills – P1.3 billion, Smokey Mountain Project Participating – P640.3 million and Bonds – P213.6 million. PCSO also reported huge amount of P1.1 billion or 26.9 percent of Treasury Bill placement at LBP.

• Receivables – P2.1 billion

Receivables of P2.1 billion represents 16.7 percent of Current

Assets, the biggest component of which is Receivable – GOCCs of P493.9 billion as reported by NPFI – P455.3 million, OWWA – P15 million, PVAC – P6.1 million, LCP – P1.4 million, NKTI – P27 million and PCMC – P2 million. NPFI has a receivable from NAIA of P455.3 million. NKTI, on the other hand, recorded receivables from PHIC, SSS and GSIS of P27 million, while the amount recorded by PVAC is a receivable from PHIVIDEC representing the balance of loan and miscellaneous expenses incurred on securing the Transfer Certificate of Title from the Registry of Deeds on a parcel of land used as collateral.

• Inventories – P504.7 million

Inventories at year-end reached P504.7 million, the biggest portion

of which pertains to Semi-Expendable Supplies, Containers and Property of P287.1 million or 56.9 percent. NKTI and PHC shared P139.6 million and P113.9 million, respectively, composed of various hospital supplies such as medical, dietary, office, surgical, engineering and laboratory supplies, among others.

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• Miscellaneous Assets and Deferred Charges – P846.8 million

Miscellaneous Assets and Deferred Charges totaled P846.8 million or 2.6 percent of the total assets. Of this amount, PCSO reported under Prepayments account the amount of P39.3 million or 62.7 percent of the total. The amount represents prepayment for the collective negotiation agreement, corporate plan benefits, rental expense on building, cash and car promotions, advertisement of MRT ATM tickets and for insurance.

• Contingent Assets – P97.9 million

Contingent Assets of P54.8 million or 0.5 percent of the total

assets resulted mainly from disallowances of P25.2 million as deposited by LCP.

• Investments – P2 billion

Investments of P2 billion corresponds to 5.9 percent of the Total

Assets. The huge amount of P1.6 billion was recorded by TLRC. Other GOCCs that recorded huge amount of investments were PIDS and PCED with P215.1 million and P66.5 million, respectively. These represent investments in Treasury Bills, Stocks and Bonds.

• Fixed Assets – P16.1 billion

Fixed Assets amounting to P16.1 billion or 48.6 percent represents

the biggest component of the Total Assets. The NFI registered the biggest Fixed Assets of P7.1 billion consisting of Land – P7 billion, Buildings and Structures, Other Equipments including museum collections and exhibit materials of P172.6 million.

• Land and Land Improvements – P11.9 billion

This is the bulk of the Fixed Assets for this Sector. NPFI has the

highest asset recorded of P7.6 billion, P7.1 billion or 92.7 percent of which pertain to Land and Land Improvements. LCP also reported P2.9 billion or 24.2 percent of the total Land and Land Improvements.

• Buildings and Structures – P3.5 billion

More than fifty percent of this asset belongs to Civic Sub-sector

amounting to P1.9 billion. The LCP reported the biggest amount at P819 million or 23.4 percent to the total.

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• Furniture, Fixtures, Equipment, Work Animals and Books – P2.7

billion Of the total, P1.9 billion or 72.4 percent was accounted under the

Civic Sub-sector.

• Acquired Assets – P68.2 million

Land, Buildings and Structures amounting to P68.2 million is the biggest component of this asset, P64.63 million of which was reported by PCSO.


Liabilities incurred during the year totaled P11.4 billion consisting of

Current Liabilities – P9.1 billion or 79.1 percent, Long-term Liabilities – P1.2 billion or 10.4 percent and Other Liabilities – P1 billion or 9 percent. It also includes Deferred Credits of P165.2 million or 1.5 percent.

• Current Liabilities – P9.1 billion

Current Liabilities consist of Payables amounting to P4.3 billion,

Trust Liabilities – P4.6 billion, Depository Liabilities – P57.7 million and Other Current Liabilities – P50.8 million.

Among the GOCCs under this sector, PAGCOR reported the

biggest amount of P1.9 billion, P910.6 of which pertain to Payables to NGAs while the amounts of P23.7 million and P16.2 million were payables to LGUs and GOCCs, respectively. Part of the payables of P820 million represents the unremitted share of the government from PAGCOR income for the month of December, 2002.

• Payables- P4.3 billion

The PCSO reported huge amount of payables amounting to P958.5

million consisting of unpaid vouchers for goods purchased and services rendered, claims against the Charity and Prize Funds and Other Payables to various creditors such as Sweepstakes Cooperative Credit Union, PCSO multi-purpose cooperative, Sweepstakes Athletic Club, among others.

• Trust Liabilities – P4.6 billion

The amount constitutes 51.5 percent of the total Current Liabilities.

The biggest amount of P3.8 billion or 86.7 percent was of PCSO, the bulk of which pertains to Charity Fund of P2.1 billion and Prize Fund of P1.4 billion. NKTI trust liabilities of P104.2 million refers to funds received

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from the Department of Health (DOH), PCSO, CDF and other Congressional initiatives to finance the various special projects being managed by the Institute such as Renal Disease Control Program, STOP DEATH, Dialysis Centers and National Voluntary Blood Donation Program. For LCP, the amount of P96.7 million recorded as trust liabilities pertain to DOH fund for the reconstruction of LCP building, Priority Development Assistance Fund, Bidders Bonds, Research, Indigency and Other Revolving Funds and withholding taxes and insurance premiums for remittance to the concerned government agencies.

• Depository Liabilities – P57.7 million

Two GOCCs reported the biggest part of this account, the NFTI of

P25.5 million and PHC of P21.1 million. The account represents supplier/contractors and patients deposits.

• Other Current Liabilities – P50.8 million

As reported by DAP, the amount of P26.8 million under this

account pertains to cost of auditing services, service charges to clients/customers and refundable deposits.

• Long-Term Liabilities – P1.2 billion

More than 95 percent of the amount pertains to Loans Payable –

Foreign of TLRC at P1.1 billion.

• Other Liabilities – P1 billion

Other liabilities of P922.4 million contracted by PAGCOR represents the amount due to various creditors such as the ECCD Fund, Gasoline Station, Training and Loan Fund, National Sports Development Fund, and unredeemed chips, tokens and Chip Checks Payable, among others.

1.3 Owners’ Equity – P21.7 billion

The account consists of Paid-in Capital – P428.6 million or 2 percent, Retained Earnings – P7.3 billion and Restricted Capital of P159.1 million or .7 percent. Surplus Accounts of P13.8 billion or 63.6 percent of the total consist of Donated Surplus –P5.3 billion, Invested Surplus – P470.6 million, Appraisal Surplus – P8 billion and Contingent Surplus – P97.6 million.

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• Paid-in Capital – P428.6 million

TLRC has a huge capitalization of P309.6 million or 72.2 percent

of the total Paid-in Capital. These were the capital contributions from the National Government of P132.4 million and from various GOCCs such as NSDB – P5.5 million, MMC – P5 million, HSC – P4.5 million.

• Retained Earnings – P7.3 billion

This account is the second biggest component of Owners’ Equity.

OWWA reported the bulk of P3.4 billion or 47.3 percent of the total. During the year, the corporation posted a net income of P809.5 million which was credited to the account. PAGCOR’s income of P1.1 billion also contributed to the huge balance of Retained Earnings of P766.1 million at year-end

Of the GOCCs under this sector, the following reported a deficit at

the end of the year: CCP – P27.7 million, OSHC – P75.5 million, LISI – P11.3 million, DAP – P14.2 million and PCSO – P1.3 billion.

• Restricted Capital – P159.2 million

Of this amount, P108.9 million was reserved by NKTI for the

replacement of its Fixed Assets. Other GOCCs like the PCMC made reserve of P0.7 million for the gratuity and terminal leave pay of employees who signified their intention to retire.

• Invested Surplus – P470.6 million

The GOCCs which reported this account are still following the Old Government Accounting System in recording Investments and Fixed Assets. These are LCP, PCSO, PCMC and PHC.

• Donated Surplus- P5.3 billion

This represents the third biggest component of Owners’ Equity

under this Sector. More than 50 percent of this amount was reported by LCP for P2.9 billion. The amount represents the cost of 12-hectare lot donated by NHA recorded by the corporation at its appraised value. CCP on the other hand recorded the amount of P1.5 billion for the vast parcels of reclaimed land where CCP complex is situated, properties donated to the Center such as the Manila Film Center, Buildings and its appurtenances audio film recording system, motor cycles, musical instruments and other equipment. Also included are the construction cost of the Folk Arts Theatre and cost of furniture, fixture and equipment installed therein.

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• Appraisal Surplus – P8 billion

This account is the biggest component of Owners’ Equity. The

amount of P7 billion represents the revaluation increment of Land, Buildings and Structures owned by NPFI.

• Contingent Surplus – P97.6 million

The GOCCs which reported disallowances on various expenses are

as follows: OWWA – P23.9 million, LCP – P25.2 million, NKTI – P13.5 million and PCSO – P14.8 million.

2.0 RESULTS OF OPERATION

The overall operation of this sector generated a gross income of P24.2 billion.

On the other hand, expenses incurred by the corporations totaled P15 billion. Income contribution, and expenses distribution by each corporation are reflected in Table 23 below:

Table 23. Total Income, Expenses, and Net Income (Loss) by Corporation

December 31, 2002 (in million pesos)

Sub-sectors/

GOCCs

Income

Expenses

Net Income Before

Share of NG

Share of

NG

Net Income Before

Income Tax

Income

Tax

Subsidy form NG

and GOCCs

Net

Income (Loss)

Total

24,155.5

14,960.4

9,195.1

8,575.9

602.8

0.1

1,252.3

1,854.7 Educational DAP 173.3 206.6 (33.4) (33.4) 34.3 1.0 Social PAGCOR 19,217.5 9,536.6 9,680.9 8,575.9 1,105.1 1,105.1 OWWA 1,398.7 589.2 809.5 809.5 809.5 OSHC 6.4 59.1 (52.7) (52.7) 63.0 10.3 PVAC 0.2 0.3 (14.0) (0.1) (14.0) LINSI 0.1 0.1 0.1 0.1 0.1 Cultural CCP 86.4 271.0 (184.7) (184.7) 154.6 (30.1) NPFI 39.9 72.9 (33.0) (33.0) 7.5 (25.5) PICCI 3.4 147.4 (127.6) (144.1) 0.1 130.9 (13.2) Scientific TLRC 146.1 326.7 (180.7) (180.7) 10.0 (170.7) Civic PCSO 1,389.1 1,338.9 50.2 50.2 50.2 PHC 871.4 1,088.3 (217.0) (217.0) 164.6 (52.4) NKTI 512.6 630.9 (118.3) (118.3) 180.0 61.7 PCMC 151.1 366.2 (215.1) (215.1) 211.0 (4.1) LCP 106.7 248.5 (141.7) (141.7) 209.1 67.4 Research PIDS 33.7 45.4 (11.7) (11.7) 3.3 PITACH 10.0 42.0 (32.0) (32.0) 15.0 40.0 PCED 9.3 6.8 2.5 2.5 72.0 2.5 Difference between totals and sum of components is due to rounding off.

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Total Income was almost classified under the OSI with an exact figure

of P24 billion or a significant 99.2 percent of the total income. The remaining P0.2 billion was classified as Non-Operating Income.

Among the 15 corporations included in the consolidation of the report

for this sector, the following generated 96.3 percent of the total income: PAGCOR – P19.2 billion, OWWA – P1.4 billion, PCSO – P1.4 billion, PHC – P0.8 billion and NKTI – P0.5 billion.

The main sources of income are classified as Government Services and

Operating and Service Income – Miscellaneous getting share of P21 billion and P2 billion or 87 and 8.3 percent, respectively of the Total Income.

Income from Government Services pertaining to winnings of the

PAGCOR amounting to P17.2 billion is net of franchise tax of P0.9 billion. This captured 71.1 percent of the total income for the Sector.

A total amount of P1 billion referring to collections from fees were

classified by OWWA as income under Government Services. PCSO classified P0.8 billion of its income under Government

Services. The amount pertains to the 15 percent net receipts from the sale of sweepstakes and lotto tickets.

PHC and NKTI earned P0.8 billion with P0.5 billion from hospital

charges. These are net of charity expenses given to qualified and less fortunate patients amounting to P196.2 million and P98.7 million, respectively.

Miscellaneous Operating Income of P2 billion is 8.3 percent of

Operating and Service Income. Of this amount, PAGCOR earned P1.6 billion which includes P.9 billion share from bingo franchises, P295 million income from 9 million demo units, P200.7 million from management fees. OWWA’s income classified under this account is P247.0 million.

2.2 Expenditures – P15 billion

The corporations which incurred the aggregate 87.3 percent

of expenses follows: PAGCOR – P9.5 billion, PCSO – P1.3 billion, PHC – P1.1 billion, OWWA – P0.6 billion and NKTI – P0.6 billion

Expenses categorized under PS amounted to P6 billion while those

under MOOE totaled to P8.3 billion. Expenditures for Capital Outlay was only P0.7 billion.

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PS is mainly composed of Salaries and Wages of P2.3 billion and Other Benefits of P3.3 billion.

Expense accounts under MOOE composing 90.4 percent of the

total expenditures are as follows: Other Services – P4.2 billion, Grants, Subsidies and Contributions – P1.2 billion, Supplies and Materials – P0.9 billion, Water, Illumination and Power – P0.5 billion, Confidential and Intelligence Expense – P0.3 billion, Depreciation – P0.2 billion and Communication Services – P0.2 billion.

Other Services in the books of PAGCOR amounted to P3 billion

includes Marketing Expenses of P1.2 billion. Host Cities’ Income Share of P425.3 million represents monthly assistance to cities/provinces hosting casinos. Expenses for Advertising and Promotions forms part of Other Services with PAGCOR incurring P430.1 million with PCSO spending P309.6 million.

Grants, Subsidies and Contributions of P1.2 billion were wholly

expended by PAGCOR.

2.3 Net Income – P602.7 million

For Fiscal Year 2002, this sector declared a Net Income Before Subsidy of P602.7 million. Five corporations declared a total of P1,937 million net income while, 13 corporations declared an aggregate loss of P1,334.3 million.

The following corporations which declared Net Income Before

Subsidy are as follows: PAGCOR – P1,105.08 million, OWWA – P809.4 million, PCSO – P50.2 million, PCED – P2.4 million and LISI – P0.05 million.

Ten corporations received an aggregate amount of P1,058.1 million as

Subsidy from the National Government. Theses corporations are: PCMC – P211 million, DAP – P34.3 million, TLRC – P10 million, LCP – P209.1 million, NKTI – P180 million and PHC – P164.6 million, PITACH – P15 million, PCED – P72.03 million, CCP – P154.60 and NKTI – P7.5 million. On the other hand, two corporations received P194 million as Subsidies from the GOCCs: OSHC – P63.01 million and PICCI – P130.9 million.

No provisions for income tax were made by the corporations except

for PICCI which provided for income tax of P0.06 million.

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SCHEDULES

Schedule 1

ASSETS

Current Assets 1,461,626.5 32.4 910,977.9 74.0 196,274.5 55.4 173,616.2 14.9 International Reserves 1,051,576.3 855,335.6 196,240.7 0.0 - Cash and Cash Equivalents 59,014.5 7.8 27,751.3 - Short - Term Investments 43,667.7 26.0 35,205.4 - Receivables (net) 267,631.9 55,642.3 110,301.7 - Inventories 34,420.6 24.4 - Other Current Assets 5,315.5 333.3 -

Other Assets 1,072,911.1 23.8 29,349.1 2.4 157,301.3 44.4 34,707.5 3.0 Miscellaneous Assets and Deferred Charges 311,497.9 4,102.9 - Other Assets 761,413.2 29,349.1 157,301.3 30,604.6 -

Contingent Assets 6,580.5 0.1 - - 79.7 0.0 Contingent Assets 6,580.5 79.7 -

Investments and Fixed Assets 1,966,978.5 43.6 291,102.8 23.6 984.2 0.3 958,189.7 82.1 Investments 1,300,248.1 266,413.5 984.1 905,753.1 - Fixed Assets (net) 666,730.4 24,689.3 0.0 52,436.6 -

TOTAL ASSETS 4,508,096.5 100.0 1,231,429.8 100.0 354,560.0 100.0 1,166,593.1 100.0


LIABILITIES

Current Liabilities 1,108,732.5 24.6 620,222.3 50.4 1.0 0.0 267,791.6 23.0 Payables 245,962.8 5,013.7 1.0 45,568.0 - Trust Liabilities 17,655.2 2,856.1 - Depository Liabilities 555,643.4 339,106.1 215,603.1 - Other Current Liabilities 289,471.0 276,102.6 3,764.4 -

Other Liabilities 174,053.6 3.9 138,552.9 11.3 500.6 0.1 13,768.7 1.2

Other Liabilities 174,053.6 138,552.9 500.6 13,768.7 -

Contingent Liabilities 541.3 0.0 - - - - Miscellaneous 541.3 - -

Long - Term Liabilities 2,061,141.7 45.7 291,299.7 23.7 406,329.0 114.6 238,230.8 20.4

TOTAL LIABILITIES 3,344,469.1 74.2 1,050,075.0 85.3 406,830.5 114.7 519,791.1 44.6

Deferred Credits 56,141.1 1.2 28,118.3 2.4

OWNERS' EQUITY

Capital 864,692.4 19.2 181,275.7 14.7 (52,270.5) (14.7) 618,028.3 53.0 Paid-in Capital 341,230.4 10,000.0 - 138,751.4 Retained Earnings (Deficit) (34,329.8) 35,392.9 (52,270.5) 59,817.5 Restricted Capital 557,791.8 135,882.8 - 419,459.4

Surplus 242,793.9 5.4 79.2 - - - 655.4 0.1 Donated Surplus 18,746.3 23.6 - 204.1 Invested Surplus 20,712.7 - 2.3 Appraisal Surplus 196,591.0 55.6 - 200.2 Contingent Surplus 6,743.9 - - 248.9

TOTAL OWNERS' EQUITY 1,107,486.3 5.4 181,354.9 14.7 (52,270.5) (14.7) 618,683.7 53.0

TOTAL LIABILITIES AND OWNERS' EQUITY 4,508,096.5 100.0 1,231,429.8 100.0 354,560.0 100.0 1,166,593.1 100.0

Republic of the PhilippinesGovernment - Owned and/or Controlled Corporations

Particulars

Amount % Distribution

Condensed Balance SheetAs of December 31, 2002

(in million pesos)

TOTAL BSP CB-BOL Financial



Distribution Amount % Distribution

82

ASSETS

Current Assets 105,936.8 7.1 33,133.9 18.1 28,825.1 53.7 12,861.9 38.9 International Reserves - - - - - - - - Cash and Cash Equivalents 15,234.1 - 4,534.3 - 5,861.2 - 5,625.8 - Short - Term Investments 725.8 - 3,147.6 - 288.7 - 4,274.1 - Receivables (net) 74,696.1 - 16,583.6 - 8,256.8 - 2,151.4 - Inventories 13,713.1 - 5,790.6 - 14,387.8 - 504.7 - Other Current Assets 1,567.8 - 3,077.7 - 30.6 - 306.0 -

Other Assets 838,096.5 56.4 5,660.4 3.1 5,712.8 10.6 2,083.4 6.3 Miscellaneous Assets and Deferred Charges 303,356.9 - 1,791.9 - 1,399.3 - 846.8 - Other Assets 534,739.6 - 3,868.5 - 4,313.5 - 1,236.6 -

Contingent Assets 2,317.7 0.2 147.8 0.1 3,937.4 7.3 97.9 0.3 Contingent Assets 2,317.7 - 147.8 - 3,937.4 - 97.9 -

Investments and Fixed Assets 539,757.0 36.3 143,665.3 78.7 15,237.9 28.4 18,041.5 54.5 Investments 59,667.7 - 64,028.3 - 1,444.0 - 1,957.3 - Fixed Assets (net) 480,089.3 - 79,637.0 - 13,793.9 - 16,084.2 -

TOTAL ASSETS 1,486,108.1 100.0 182,607.5 100.0 53,713.2 100.0 33,084.8 100.0


LIABILITIES

Current Liabilities 163,203.4 11.0 13,166.1 7.2 35,319.7 75.7 9,028.4 27.3 Payables 150,951.9 - 8,216.4 - 31,940.5 - 4,271.4 - Trust Liabilities 5,953.8 - 2,035.3 - 2,161.5 - 4,648.6 - Depository Liabilities 584.5 - 126.6 - 165.4 - 57.7 - Other Current Liabilities 5,713.1 - 2,787.9 - 1,052.3 - 50.8 -

Other Liabilities 1,880.0 0.1 15,122.6 8.3 3,204.8 6.9 1,023.9 3.1

Other Liabilities 1,880.0 - 15,122.6 - 3,204.8 - 1,023.9 -

Contingent Liabilities 484.4 0.0 2.4 0.0 54.5 0.1 - - Miscellaneous 484.4 - 2.4 - 54.5 - - -

Long - Term Liabilities 1,087,087.1 73.1 28,899.3 15.8 8,104.5 17.4 1,191.3 3.6

TOTAL LIABILITIES 1,252,654.9 84.3 57,190.4 31.3 46,683.6 100.0 11,243.7 34.0

Deferred Credits 14,853.3 1.0 12,392.8 6.8 611.5 - 165.2 0.5

OWNERS' EQUITY

Capital 5,477.8 0.4 110,150.1 60.3 (5,860.7) (91.3) 7,891.7 23.9 Paid-in Capital 68,514.6 116,193.5 7,342.3 428.6 Retained Earnings (Deficit) (63,440.1) (6,045.2) (15,088.4) 7,303.9 Restricted Capital 403.3 1.8 1,885.4 159.2

Surplus 213,122.1 14.3 2,874.3 1.6 12,278.8 191.3 13,784.2 41.7 Donated Surplus 7,993.1 482.2 4,783.4 5,260.0 Invested Surplus 19,487.4 26.3 726.1 470.6 Appraisal Surplus 182,845.7 2,326.4 3,207.0 7,956.1 Contingent Surplus 2,795.8 39.4 3,562.2 97.6

TOTAL OWNERS' EQUITY 218,599.9 14.7 113,024.4 61.9 6,418.1 100.0 21,675.9 65.5

TOTAL LIABILITIES AND OWNERS' EQUITY 1,486,108.1 100.0 182,607.5 100.0 53,713.2 33,084.8 100.0



Condensed Balance SheetAs of December 31, 2002

(in million pesos)

Infrastructure and Public Utilities

Industrial and Area Development



% Distribution Amount %


Distribution Amount

83

Schedule 2

Infrastructures Industrial and Particulars and Public Area

Utilities Development Income 435,326,544.5 49,053,668.0 6,529.0 178,743,018.0 151,793,796.3 9,813,402.9 21,760,606.3 24,155,524.0 Operating and Service Income 365,058,370.8 45,906,819.0 128,913,185.0 135,846,194.0 9,075,343.1 21,323,186.0 23,993,643.7 Non - Operating Income 70,268,173.8 3,146,849.0 6,529.0 49,829,833.0 15,947,602.3 738,059.8 437,420.3 161,880.4

Less: Share of the National Government 9,319,688.2 - - - 743,827.0 - - 8,575,861.2

Income After Share of the National Government 426,006,856.3 49,053,668.0 6,529.0 178,743,018.0 151,049,969.3 9,813,402.9 21,760,606.3 15,579,662.8

Expenses 424,432,786.1 45,050,834.0 7,379,759.0 129,635,498.3 187,244,329.4 12,726,328.4 27,419,138.5 14,976,898.5 Personal Services 34,268,665.4 3,188,448.0 1,296.0 15,234,457.5 4,720,429.8 1,555,783.1 3,592,318.3 5,975,932.8 Maintenance and Other Operating Expenses 389,501,870.8 41,862,386.0 7,378,463.0 114,401,040.9 182,523,899.6 11,170,545.4 23,826,820.2 8,338,715.7 Capital Outlays 662,250.0 - - - - - - 662,250.0

Net Income 1,574,070.2 4,002,834.0 (7,373,230.0) 49,107,519.7 (36,194,360.1) (2,912,925.5) (5,658,532.2) 602,764.3

Add: Subsidy 7,074,435.4 - - 992,387.5 2,731,349.4 206,378.2 1,892,304.3 1,252,016.0 National Government 6,671,425.1 844,363.7 2,731,349.4 150,436.2 1,887,182.0 1,058,093.9 Local Government Units 148,023.8 148,023.8 Government-Owned and/or Controlled Corporations 249,864.1 55,942.0 193,922.1 National Government Agency 5,122.3 - - - - - 5,122.3 -

Net Income Before Income Tax 8,648,505.6 4,002,834.0 (7,373,230.0) 50,099,907.2 (33,463,010.8) (2,706,547.3) (3,766,227.9) 1,854,780.4

Less: Provision for Taxes 2,042,805.7 398,726.0 - 769,657.5 408,564.6 465,796.1 - 61.6 Provision for Income Tax 1,975,596.0 398,726.0 702,447.7 408,564.6 465,796.1 61.6 Final and Creditable Withholding Tax 67,209.8 - - 67,209.8 - - - -

NET INCOME AFTER INCOME TAX 6,605,699.8 3,604,108.0 (7,373,230.0) 49,330,249.7 (33,871,575.4) (3,172,343.4) (3,766,227.9) 1,854,718.8


84



Grand Total BSP CB-BOL Financial

(in thousand pesos)


Condensed Statement of Income and Expenses By SectorFor the Year Ended December 31, 2002

Total Income 435,326,544.5 49,053,668.0 6,529.0 178,743,018.0 151,793,796.3 9,813,402.9 21,760,606.3 24,155,524.0

Operating Income 365,058,370.8 45,906,819.0 128,913,185.0 135,846,194.0 9,075,343.1 21,323,186.0 23,993,643.7 Operating & Service Income 365,058,370.8 45,906,819.0 128,913,185.0 135,846,194.0 9,075,343.1 21,323,186.0 23,993,643.7 Government Business Operations 134,908,309.0 - - 225,291.2 131,789,856.7 2,078,744.7 700,666.5 113,749.8 Insurance/Fiduciary Bond Premiums 88,658,843.1 - - 88,658,843.1 - - - - Interest 73,625,373.4 35,920,935.0 - 34,554,143.6 2,034,307.2 546,474.6 215,486.0 354,027.0 Government Services 27,472,395.9 - - 11,719.9 1,240,505.0 3,618,109.9 1,624,805.7 20,977,255.5 Trading/Production 18,583,043.1 - - - 205,408.8 70,886.9 18,297,190.4 9,557.0 Miscellaneous 9,363,201.6 1,771,775.0 - 4,744,466.3 145,192.7 566,825.6 157,599.0 1,977,343.0 Gain on Foreign Exchange 8,932,037.0 8,214,109.0 - 717,928.0 - - - - Rents 3,514,145.3 - - - 430,923.6 2,194,301.3 327,209.1 561,711.3 Commissions 1,022.3 - - 793.0 - - 229.4 -

Non-Operating Income 70,268,173.8 3,146,849.0 6,529.0 49,829,833.0 15,947,602.3 738,059.8 437,420.3 161,880.4 Income From Public Enterprises/Investments 47,559,567.5 5,447.0 44,708,926.5 1,970,533.4 453,385.1 281,120.0 140,155.4 Miscellaneous 25,573,795.5 - 5,447.0 24,398,715.3 596,532.7 204,671.2 256,505.8 111,923.4 Interest on Loans 12,716,400.2 - - 11,316,672.7 1,373,921.5 877.4 5,392.3 19,536.3 Interest on Bonds 4,815,258.7 - - 4,814,974.5 - - 284.2 - Interest on Treasury Bills/Notes 1,842,768.2 - - 1,744,216.2 - 71,769.3 18,103.0 8,679.7 Gain on Sale of Acquired Assets/Stock/Bonds 1,469,972.0 - - 1,469,970.4 - - 1.6 - Interest on Receivable Acceptances 921,168.8 - - 914,636.6 - 5,717.0 815.1 - Dividends on Stocks 220,204.1 - - 49,740.8 79.2 170,350.1 17.9 16.1 Miscellaneous Income 22,142,648.5 3,146,849.0 1,082.0 4,668,639.3 13,935,147.5 242,571.3 127,631.1 20,728.2 Miscellaneous 21,739,430.3 3,146,849.0 1,082.0 4,614,504.3 13,790,351.9 113,537.2 59,979.8 13,126.2 Gain on Foreign Exchange 401,192.9 - - 54,135.0 144,790.8 129,034.1 65,674.4 7,558.6 Sale of Waste Materials 2,025.2 - - - 4.9 - 1,976.9 43.5

Fines and Penalties on Non-Tax Revenue 454,413.9 435,104.3 398.1 - 18,503.5 408.0 Miscellaneous Income 451,242.3 - - 431,932.7 398.1 - 18,503.5 408.0 Operating and Service Income 3,171.6 - - 3,171.6 - - - - Income from Public Enterprises/Investments - - - - - - - -

Capital Revenue 110,976.6 17,162.8 41,523.3 42,103.5 10,165.6 21.5 Sale of Assets Gain on Sale of Fixed Assets 90,651.4 - - 1,814.9 37,379.2 42,103.5 9,347.4 6.5 Scrap Fixed Assets 11,633.7 - - 7,474.5 4,144.1 - - 15.0 Gain on Sale of Investments/Stocks 7,873.4 7,873.4 Fixed Assets 818.2 - - - - - 818.2 -

Grants and Aids 567.3 - - - - 567.3 Domestic 567.3 567.3

Republic of the Philippines

Educational, Social, Cultural, Scientific, Civic

(in thousand pesos)

Government-Owned and/or Controlled CorporationsBreakdown of Income, By Sector

Fiscal Year 2002

85

Schedule 3

Particulars Grand Total BSP CB-BOL Financial Infrastructures


Industrial and Area

Development


Schedule 4

Infrastructure Industrial Agricultural Educational, Social,Particulars Total BSP CB-BOL Financial and Public and Area Trading and Cultural, Scientific

Utilities Development Promotional Civic and Research

Grand Total 424,432,786.2 45,050,834.0 7,379,759.0 129,635,498.3 187,244,329.4 12,726,328.4 27,419,138.5 14,976,898.5 Personal Services 34,268,665.4 3,188,448.0 1,296.0 15,234,457.5 4,720,429.8 1,555,783.1 3,592,318.3 5,975,932.8 Other Benefits 14,313,692.7 3,894.0 55.0 10,445,246.3 105,481.6 104,697.7 313,298.2 3,341,019.9 Salaries and Wages 13,260,254.6 1,441,614.0 - 2,692,615.2 3,362,852.5 1,243,913.7 2,226,594.8 2,292,664.4 Bonuses & Incentives 2,411,882.7 712,080.0 - 782,555.4 392,673.8 60,015.4 315,782.3 148,775.9 Social Security Premiums 2,293,431.1 783,512.0 - 785,729.5 353,134.6 58,445.6 245,636.4 66,973.1 Commutable Allowances/Fringe Benefits 1,391,480.9 150,883.0 1,241.0 422,727.0 250,575.5 58,010.7 408,136.3 99,907.5 Overtime Pay 311,643.4 96,465.0 - 39,472.6 67,522.4 13,319.8 71,273.1 23,590.5 Per Diem Compensation 181,229.9 - - 1,184.4 162,093.5 10,886.5 7,065.6 - Pensions 53,680.1 - - 49,206.6 2,852.9 - 1,056.8 563.8 Consultants & Specialist Fees & Allowances 49,393.6 - - 15,720.5 22,705.3 5,157.3 3,372.6 2,437.9 Trainings & Personnel Improvements 1,976.3 - - - 537.7 1,336.4 102.1 -

Maintenance & Other Operating Expenses 389,501,870.8 41,862,386.0 7,378,463.0 114,401,040.9 182,523,899.6 11,170,545.4 23,826,820.2 8,338,715.7 Other Services 145,338,930.3 6,400,620.0 512.0 6,747,967.7 122,267,091.8 4,971,102.0 794,273.1 4,157,363.6 Interests 76,292,315.5 32,124,554.0 2,974,932.0 17,557,917.7 21,105,765.4 944,564.4 1,545,307.4 39,274.6 Social Security Benefits, Rewards & Other Claims 74,993,569.1 - - 74,930,957.0 13,687.1 2,776.1 39,631.1 6,517.8 Depreciation 22,260,133.0 573,909.0 15.0 1,383,310.4 18,368,175.2 1,021,995.2 684,166.9 228,561.3 Trading/Production 18,819,967.8 - - - 442,439.8 - 18,347,288.8 30,239.2 Loss on Foreign Exchange 14,797,402.0 - 4,394,971.0 13,488.7 9,674,293.0 509,092.7 191,864.4 13,692.2 Bad Debts 9,448,003.2 321,485.0 - 6,019,485.2 2,930,295.2 26,384.1 79,453.3 70,900.4 Taxes, Duties and Fees 5,413,260.4 1,709,851.0 1,063.0 1,517,488.6 1,826,355.4 158,041.5 132,869.0 67,591.9 Water, Illumination & Power 4,908,943.4 190,393.0 - 225,851.3 558,053.4 3,101,546.2 325,219.3 507,880.2 Provision for Insurance Losses 3,466,167.0 - - 3,466,167.0 - - - - Grants, Subsidies & Contributions 2,107,172.7 26,269.0 - 1,749.8 676,822.9 1,077.4 163,183.5 1,238,070.0 Depletion 2,090,386.0 - - - 2,090,386.0 - - - Supplies and Materials 1,938,666.1 43,251.0 3.0 204,894.0 229,223.9 162,951.7 410,564.6 887,777.8 Repair & Maintenance of Gov't. Facilities 1,500,054.1 - - 385,583.4 845,082.8 29,165.3 72,950.1 167,272.5 Rents 1,191,493.8 24,577.0 - 430,577.4 223,964.0 87,037.7 383,744.8 41,592.8 Fidelity Bond & Insurance Premium 907,712.9 158,066.0 - 543,130.2 88,869.6 17,958.9 82,543.7 17,144.4 Communication Services 766,454.4 72,368.0 14.0 318,067.0 56,107.8 22,364.7 83,640.7 213,892.1 Extraordinary & Miscellaneous Expenses 748,656.3 4,160.0 - 288,956.0 66,082.5 22,010.6 154,701.3 212,745.8 Amortization - Organization Costs 693,172.2 - - - 680,921.0 12,251.2 - - Travelling 500,268.7 131,639.0 25.0 126,526.6 60,220.7 16,993.5 108,376.1 56,487.8 Auditing Services 332,176.3 29,911.0 242.0 89,576.4 108,500.6 21,711.0 41,110.4 41,124.8 Commitment Fees & Other Charges 129,244.2 - 6,686.0 19,941.9 5,126.9 26.1 97,455.2 8.1 Confidential & Intelligence Expense 287,435.5 - - - 16,000.0 950.0 4,000.0 266,485.5 Training & Seminar Expenses 181,020.3 51,333.0 - 26,911.7 11,005.3 7,088.6 33,583.6 51,098.2

86

Republic of the PhilippinesGovernment-Owned and/or Controlled Corporations

Breakdown of Expenses, By SectorFiscal Year 2002

(in thousand pesos)

Schedule 4

Infrastructure Industrial Agricultural Educational, Social,Particulars Total BSP CB-BOL Financial and Public and Area Trading and Cultural, Scientific

Utilities Development Promotional Civic and Research

Republic of the PhilippinesGovernment-Owned and/or Controlled Corporations

Breakdown of Expenses, By SectorFiscal Year 2002

(in thousand pesos)

Gasoline, Oil & Lubricants 128,503.3 - - 7,082.8 80,297.7 14,110.0 22,529.5 4,483.3 Repair & Maintenance of Gov't. Vehicles 99,025.5 - - 29,783.5 22,872.8 16,526.6 20,481.4 9,361.2 Transportation Services 95,917.6 - - 20,467.6 62,388.5 2,767.6 7,513.8 2,780.2 Loss on Sale of Investments/Stocks/Bonds 44,641.3 - - 44,641.3 - - - - Anti-Insurgency/Contingency/Emergency 18,553.7 - - - 12,527.9 - - 6,025.8 Awards & Indemnities 2,106.8 - - - 1,342.2 52.0 368.2 344.4 Loss on Assets Acquired 517.6 - - 517.6 - - - -

Capital Outlays 662,250.0 662,250.0 Furniture, Fixtures & Equipment 494,761.2 494,761.2 Buildings & Structures Outlay 122,492.6 122,492.6 Other Capital Expenditures 44,996.2 44,996.2

87

Schedule 5

AmountFinancial Sector 844,363.7

National Home Mortgage Finance Corporation 400,000.0 Phil. Health Insurance Corporation 444,363.7

Infrastructure and Public Utilities Sector 2,731,349.4 Light Rail Transit Authority 830,618.7 National Electrification Administration 786,773.0 National Housing Authority 737,431.9 National Irrigation Administration 15,421.7 People's Television Network, Inc. 45,000.0 Philippine National Railways 316,104.1

Industrial and Area Development Sector 150,436.2 Cagayan Economic Zone Authority 40,000.0 Partido Development Administration 5,000.0 PHIVIDEC Industrial Authority 60,436.2 Southern Philippines Development Authority 15,000.0 Zamboanga City Special Economic Zone Authority 30,000.0

Agricultural, Trading and Promotional Sector 1,887,182.0 Center for Int'l. Trade Expositions & Missions 90,000.0 Cottage Industry Technology Center 13,000.0 National Dairy Authority 58,000.0 National Food Authority 902,000.0 National Tobacco Administration 85,786.0 Phil. Convention and Visitors Corporation 72,000.0 Phil. Fisheries Development Authority 31,479.0 Philippine Coconut Authority 231,334.0 Philippine Rice Research Institute 333,583.0 Philippine Tourism Authority 20,000.0 Sugar Regulatory Administration 50,000.0

Educational, Social, Cultural, Scientific, Civic and Research Sector 1,058,093.9

Cultural Center of the Philippines 154,590.6 Development Academy of the Philippines 34,318.0 Lung Center of the Philippines 209,108.6 National Kidney and Transplant Institute 180,000.0 Nayong Pilipino Foundation, Inc. 7,500.0 Philippine Children's Medical Center 211,000.0 Philippine Heart Center for Asia 164,551.8 Philippine Institute for Development Studies 15,000.0 Philippine Institute of Traditional and Alternative Health Care 72,025.0 Technology & Livelihood Research Center 10,000.0 TOTAL 6,671,425.1

Difference between total and sum of components is due to rounding off

Audited Government Corporations in 2002 whichReceived Subsidies from the National Government

(in thousand pesos)

Sub-Sector/Corporation

88

ACRONYMS

Acronym

Financial SectorBanking

Parents:Al-Amanah Islamic Investment Bank of the Philippines AIIBPBangko Sentral ng Pilipinas BSPDevelopment Bank of the Philippines DBPLand bank of the Philippines LBP

Attached AgencyCB-Board of Liquidators CB-BOL

SubsidiariesGSIS Family Bank GSIS-FBPhilippine Postal Savings Bank PPSB

FinancingParents:

Home Development Mutual Fund HDMFNational Home Mortgage Finance Corporation NHMFCSmall Business Guarantee and Finance Corporation SBGFC

Attached AgencyPeople's Credit Finance Corporation PCFC

SubsidiariesGSIS Mutual Fund, Inc. GMFIIndustrial Guarantee Loan Fund IGLFLBP Leasing Corporation LBPLCPhilpost Leasing and Financing Corporation PLFC

InsuranceParents:

Employees' Compensation Commission ECCGovernment Service Insurance System GSISHome Guaranty Corporation HGCPhilippine Crop Insurance Ccorporation PCICPhilippine Deposit Insurance Corporation PDICPhilippine Health Insurance Corporation PHICSocial Security System SSSTrade and Investment Development Corporation TIDCORP

Subsidiary:LBP Insurance Brokerage, Inc. LIBI

OthersParent:

Philippine Leisure and Retirement Authority PLRASubsidiaries

Credit Information Bureau, Inc. CIBIMasaganang Sakahan, Inc. MSI

Infrastructure and Public Utilities SectorEnergy

Parents:National Power Corporation NPCPower Sector Assets and Liabilities Management Corporation PSALM Corp

FinancingParents:

Local Water Utilities Administration LWUANational Electrification Administration NEA

HousingParent:

National Housing Authority NHA

Sector/Sub-sector/GOCCsLIST OF ACRONYMS

89

AcronymSector/Sub-sector/GOCCsLIST OF ACRONYMS

TransportParents:

Cebu Ports Authority CPALight Rail Transit Authority LRTAMactan-Cebu International Airport Authority MCIAAManila International Airport Authority MIAAPhilippine Aerospace Development Corporation PADCPhilippine National Railways PNRPhilippine Ports Authority PPA

SubsidiariesLuzon Stevedoring Corporation LSCMetro Transit Organization, Inc. MTOINational Stevedoring and Lighterage Corporation NSLCNational Trucking and Forwarding Corporation NTFCNorth Luzon Railways, Inc. NLRIPhilippine National Lines PNLPNOC Shipping and Transport Corporation PSTC

WaterParents:

Metropolitan Waterworks and Sewerage System MWSSNational Irrigation Administration NIA

CommunicationParents:

People's Television Network, Inc. PTNIPhilippine Postal Corporation PPC

OthersSubsidiary:

NIA Consult, Inc. NIA-CIIndustrial and Area Development Sector

Area DevelopmentParents:

Human Settlements Development Corporation HSDCLaguna Lake Development Authority LLDAPartido Development Administration PDASouthern Philippines Development Authority SPDA

Subsidiary:Clark Development Corporation CDC

EnergyParent:

Philippine National Oil Company PNOCSubsidiaries

Inter Island Gas Service, Inc. IIGSILiquid Gas Philippines, Inc. LGPIManila Gas Corporation MGCNational Precision Cutting Tools NPCTNational Slipways Corporation NSCPagkakaisa Gas Storage Corporation PAGASCOPNOC Energy Development Corporation PNOC-EDCPNOC Exploration Corporation PNOC-ECPNOC Petrochecmical Development Corporation PPDC

IndustrialParents:

Bases Conversion Development Authority BCDACagayan Economic Zone Authority CEZANational Development Company NDC

90


Philippine Economic Zone Authority PEZAPhilippine Veterans Investment Development Corporation PHIVIDECSubic Bay Metropolitan Authority SBMAZamboanga City Special Economic Zone Authority ZSEZA

SubsidiariesBataan Technology Park BTPBCDA Management Holdings, Inc. BMHIDBP Data Center, Inc. DDCIDBP Management Corporation DMCFiloil Development and Management Corporation FDMCFirst Centennial Clark Corporation FCCCFreeport Service Corporation FSCJohn Hay Management Corporation JHMCNational Alcohol Corporation NACPEA Tollway Corporation PEA-TCPhilippine Import/Export Corporation PIECPHIVIDEC Industrial Authority PIAPoro Point Management Corporation PPMC

Real EstateParent:

Public Estates Authority PEASubsidiaries

Bancom Realty Corporation BRCBatangas Land Compnay, Inc. BLCIFirst Cavite Industrial Estate, Inc. FCIEIGY Real Estate, Inc. GYREIKamayan Realty Corporation KRCLand Bank Realty Development Corporation LBRDCPinagkaisa Realty Corporation PRC

Agricultural, Trading and Promotional SectorAgricultural

Parent:Philippine Rice Research Institute PRRI

SubsidiariesAgro-Livestock Commercial Development Corporation ALCDCInca-Coffee Estate Corporation ICECNational Agri-Business Corporation NABCPhilippine Genetics, Inc. PGIUP-NDC Basilan Plantations, Inc. UNBPIZNAC Rubber Estate Corporation ZREC

FinancingParents:

KKK Processing Center Authority KKK-PCAQuedan and Rural Credit Guarantee Corporation QUEDANCOR

Subsidiary:Philippine Sugar Corporation PHILSUCOR

ManufacturingParents:

Integrated Feed Mills Corporation IFMCNational Dairy Authority NDA

SubsidiariesKaunlaran Food Corporation KFCMeat Packing Corporation of the Philippines MPCPNorthern Foods Corporation NFCPhilippine Fruits and Vegetables Industries, Inc. PFVII

91


San Carlos Fruits Corporation SFCPromotional

Parents:Center for International Trade Expositions and Missions, Inc. CITEMCottage Industry Technology Center CITCGarments and Textiles Export Board GTEBMarawi Resort Hotel, Inc. MRHINational Tobacco Administration NTANatural Resources Development Corporation NRDCPhilippine Coconut Authority PCAPhilippine Convention and Visitors Corporation PCVCPhilippine Fisheries Development Authority PFDAPhilippine Tourism Authority PTASugar Regulatory Administration SRA

SubsidiariesBukidnon Forests, Inc. BFIClub Intramuros Golf Course CIGCCorregidor Foundation, Inc. CFIMacArthur Park Beach Resort MPBRPhilippine Centennial Expo '98 Corporation PCECPhilippine Commission on the Promotion and Development of Sports Scuba Diving PCPSSD

TradingParents:

Food Terminal, Inc. FTINational Food Authority NFAPhilippine International Trading Corporation PITC

Educational, Social, Cultural, Scientific, Civic and Research SectorEducational

Parent:Development Academy of the Philippines DAP

Subsidiary:Philippine Postal Institute Foundation, Inc. PPIFI

SocialParents:

Occupational Safety and Health Center OSHCOverseas Workers Welfare Administration OWWAPhilippine Amusement and Gaming Corporation PAGCORPhilippine Veterans Assistance Commission PVAC

SubsidiariesLand Bank Countryside Development Foundation, Inc. LBCDFILuzon Integrated Services, Inc. LISI

CulturalParents:

Cultural Center of the Philippines CCPNayong Pilipino Foundation, Inc. NPFI

Subsidiary:Philippine International Convention Center, Inc. PICCI

ScientificParent:

Technology and Livelihood Research Center TLRCCivic

Parents:Boy Scouts of the Philippines BSPLung Center of the Philippines LCPNational Kidney and Transplant Institute NKTI

92


Philippine Charity Sweepstakes Office PCSOPhilippine Children's Medical Center PCMCPhilippine Heart Center PHC

ResearchParents:

Philippine Center for Economic Development PCEDPhilippine Institute for Development Studies PIDSPhilippine Institute of Traditional and AlternativeHealth Care PITAHC

93

COMMISSION ON AUDIT

KEY OFFICIALS

and

GOVERNMENT ACCOUNTING and FMIS

OFFICIALS and STAFF

* As of submission date

COMMISSION ON AUDIT KEY OFFICIALS

COMMISSION PROPER

GUILLERMO N. CARAGUE Chairman

RAUL C. FLORES EMMANUEL M. DALMAN Commissioner Commissioner

Assistant Commissioners

ROBERTO B. CATLI

FLERIDA V. CREENCIA

ARCADIO B. CUENCO, JR.

LOURDES B. DIMAPILIS

EMMA M. ESPINA

FRANCISCO B. ESCARDA

SOFRONIO L. FLORES, JR.

RAQUEL R. HABITAN

REYNALDO A. VILLAR

KEY OFFICIALS

CORPORATE GOVERNMENT SECTOR

FRANCISCO B. ESCARDA Assistant Commissioner

TITO S. NABUA RASOL L. MITMUG Director IV Director IV

Cluster I – Financial A Cluster IV – Industrial and Area Development and Regulatory

JUANITO G. ESPINO, JR. CRESENCIO S. SUNICO Director IV Director IV

Cluster II – Financial B Cluster V – Agricultural, Trading and Promotional

JAIME P. NARANJO FE R. MUNOZ Director IV Director IV

Cluster III – Public Utilities Cluster VI- Social, Cultural and Scientific

DIVINIA M. ALAGON MA. CRISTINA D. DIMAGIBA Director III Director III

Cluster I – Financial A Cluster IV – Industrial and Area Development and Regulatory

DELFIN P. AGUILAR RODULFO J. ARIESGA

Director III Director III Cluster II – Financial B Cluster V – Agricultural, Trading and

Promotional

MARIO O. GABRIELES ROLAND A. REY Director III Director III

Cluster III – Public Utilities Cluster VI – Social, Cultural and Scientific

GOVERNMENT ACCOUNTING AND FMIS

LOURDES B. DIMAPILISAssistant Commissioner

CARMELA S. PEREZ, DBADirector IV

MARIETTA M. LORENZODirector III

OFFICE OF THE ASSISTANT COMMISSIONER

Veronica C. Coscos - State Auditor IVLolita N. Silva - Utility Worker II

OFFICE OF THE DIRECTOR

Lualhati F. Azuero - State Auditor IVDinah B. Pagao - Administrative Officer III

Teresita P. Reyes - State Auditor IEditha C. Ramirez - Secretary II

Mary Beverly C. Flores - Clerk IIIMaria C. Lainez - Process ServerRufa L. Gunabe - Process Server

Roberto L. Palita, Jr. - Messenger

NATIONAL I NATIONAL II

EDITHA M. RAMIREZ - State Auditor IV PERLEGIO S. PADERES - State Auditor V(Officer-in-Charge) (Chief of Division)

Fidela S. Gonzaga - State Auditor IV Marilyn C. Bibat - State Auditor IIIAmelia F. Guevarra - State Auditor III Ma. Francisca C. Medialdea - State Auditor II

Susana M. de Guzman - State Auditor II Mercedes D. Empleo - State Auditor IIAurea J. Elmido - State Auditor II Maribel G. Cablayan - State Auditor I

Ma. Lourdes D. Marayan - State Auditor II Joven L. Recto - State AuditingJosefino O. Lainez - State Auditor I Examiner I

Hazel M. Sarmiento - State AuditingExaminer I

LOCAL I LOCAL II

JUANITA B. ABE - State Auditor V CORAZON A. SALDIVAR - State Auditor V(Chief of Division) (Chief of Division)

Agustina Q. Baseo - State Auditor IV Emelita V. Cayetano - State Auditor IVRosa Maria V. Santiago - State Auditor III Esperanza V. Oreas - State Auditor III

Imelda G. Celso - State Auditor II Lorelei L. Datu - State Auditor IIElmer M. Grande - State Auditor II Susan C. Vega - State Auditor II

Ma. Belen L. Estuaria - State Auditor I Aida A. Donasco - State Auditor IIJorgen Z. Fulleros - State Auditor I

Elizabeth D. Ducay - State Auditor I

CORPORATE I CORPORATE II

ESTELA C. DELA PAZ - State Auditor V ELENA B. MONTEZA - State Auditor V(Chief of Division) (Chief of Division)

Thelma F. Panganiban - State Auditor IV Salome L. Llaguno - State Auditor IVFe O. Villanueva - State Auditor III Anicia H. Guillermo - State Auditor IV

Guillermo S. Malabanan - State Auditor II Angelita C. Lomentigar - State Auditor IIAvelina G. Marquez - State Auditor I Zenaida P. Balmes - State Auditor INarcisa S. dela Rosa - State Auditing

Examiner II

ACCOUNTING RESEARCH

CECILIA B. CAMON - State Auditor V(Chief of Division)

Annabelle A. Puserio - State Auditor IVCarmen Z. Zafe - State Auditor IV

Rudy M. Villarena - State Auditor IVLydia L. Asiado - State Auditor IIIRomeo C. Cruz - State Auditor III

Wilhelmina A. Maghari - State Auditor IIIAnnabella P. Gabiran - State Auditor II

Cristina C. Gungon - State Auditor I

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