Department of Tourism

Notes to Financial Statements

For the year ended December 31, 2016

1. General Information/Agency Profile

1.1. The financial statements of the Department of Tourism (DOT) were authorized for
issue on April 11, 2017 as shown in the Statement of Management Responsibility
for Financial Statements signed by Wanda Corazon Tulfo-Teo, the Head of the
Agency.

1.2. DOT was created by virtue of Presidential Decree (PD) No. 189 dated May 11,
1973, primarily as policy, planning, programming, coordinating and administrative
entity of the Executive Branch of the government in the development of the tourism
industry, both domestic and international.

1.3. Pursuant to Executive Order (EO) No. 120 dated January 30, 1987, the Department
was reorganized with the mandate to encourage, promote and develop tourism as a
major socio-economic activity to generate foreign currency and employment,
spread the benefits of tourism to a wider segment of the population with the support
and cooperation of both the private and public sectors, and assure the safe,
convenient, enjoyable stay and travel of both foreign and local tourists in the
country.

With the passage and approval of Republic Act (RA) No. 9593, otherwise known as
the “Tourism Act of 2009”, on May 12, 2009, DOT shall be the primary planning,
programming, implementing and regulatory government agency in the development
and promotion of the tourism industry, both domestic and international, in
coordination with attached agencies and other government instrumentalities. It
shall instill in the Filipino the industry’s fundamental importance in the generation
of employment, investment and foreign exchange.

By virtue of Letter of Instruction (LOI) No. 745, the Philippine Commission on the
Promotion and Development of Sports Scuba Diving was created on September 29,
1978 to promote and develop Sports Scuba Diving in the country. The Commission
is headed by the Minister of Tourism as Chairman with one member each from the
Ministries of National Defense and Natural Resources, and five members from the
diving communities and industries.

The Philippine Commission on Sports Scuba Diving (PCSSD) was attached to the
DOT and placed under the supervision of the Secretary, who shall be the ex-officio
Chairperson of its Board of Trustees, pursuant to Section 31 of RA No. 9593, It is
tasked to undertake measures to provide the standard basic dive rules to all levels or
kinds of divers, regulate scuba sports and technical diving in the country and ensure
the safety of the sport through the formulation of policies in coordination with the
Office of Tourism Standards and Regulations, and the regulation of the accredited
scuba sports and technical diving establishment.

9
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

1.4. The agency’s registered office is located in 351 Senator Gil Puyat Street, Bel Air,
Makati City.

1.5. Sources of Funds

1.5.1 General Fund

The General Fund includes the agency’s program for current operating
expenditures (PS and MOOE), Financial Expenses, Machinery and
Equipment Outlay as well as locally-funded projects for Economic and
Tourism Development and Branding Campaign Program.

1.5.2 Trust Liability Account Fund (TLAF)

Under Section 3 of EO No. 46 dated September 4, 1996, all net profits from
the merchandising operations conducted by the Duty Free Philippines
Corporation (DFPC) shall accrue to the DOT, which shall allocate the same
in accordance with existing policies and regulations.

In its Resolution dated June 14, 1990, the Permanent Committee approved
the request of the DOT to establish a trust liability account for all net profits
of the DFPI, subject to the following terms and conditions:

a. The trust liability account shall be established in an authorized

government depository bank;

b. Withdrawals and expenditures of funds from the trust account shall be

subject to the usual accounting and auditing rules and regulations; and

c. The DOT shall allocate and disburse funds from the trust account solely
for purposes intended to enhance the tourism development programs and
projects in the country.

To ensure efficient fund utilization and the effective implementation of

tourism development projects/programs funded through the TLA Fund, the
DFPC net profits accruing to DOT shall be made available in accordance
with the following priorities stated in the DOT Office Circular No. 98-05
dated June 16, 1998, providing the Revised Guidelines in the Availment of
Financial Assistance for Tourism Development Projects/Programs Funded
through DOT TLAF:

A. First Priority

A.1 All national flagship projects and manpower enhancement/

development programs of DOT and its attached agencies.

10
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

A.2 Critical projects of DOT and its attached agencies identified in any
of the following: (a) Tourism Master Plan/Medium Term
Philippine Development Plan; (b) Regional Development Plan;
(c) Project locations within the top 25 destinations; (d) Special
promotions projects of domestic and foreign offices; (e)
Presidential edicts/directives and laws promulgated by Congress
mandating such utilization; (f) Laws enacted by Congress such as
those prescribing the development of specific area for tourism
purposes; (g) International commitment projects; (h) National
promotional projects; (i) Productions of promotional materials; and
(j) Projects within the social reform agenda.

B. Second Priority – Tourism-related projects and activities geared at

promoting domestic tourism and development of various tourism
assets/resources in a particular region/province, as well as projects
identified by other government and non-government agencies,
institutions and peoples organizations which are envisioned to
enhance the development of the tourism industry in the country on
any of the following criteria: (a) social impact; (b) capability to
provide source of livelihood to the community; (c) self-
sustainability; (d) historical and cultural significance; (e)
ecological and environment consideration; and (f) consistency with
DOT tourism development programs and policies.

C. Third Priority – Other projects requested identified to be with

tourism implication.

Section 93 of RA 9593 provides the automatic remittance to the Office of

the Secretary (OSEC) of a minimum of fifty percent of the DFPC’s annual
net profit to fund tourism programs and projects, out of which, seventy
percent shall be given to the Tourism Promotions Board (TPB).

1.5.3 Maestranza Curtain Wall Reconstruction Project (Fund 171)

The Almacenes section of the Intramuros walls on the riverside area was
built in the late 17th century. This was later demolished in 1904 when the
walls facing the Pasig River were removed to be converted into wharves for
commercial shipping. After World War II, informal settlers began moving in
the area and eventually settled there. It was only in 2005 that the Maestranza
Compound was cleared. The Intramuros Administration is mandated to
restore the walls and fortifications of Intramuros including the
reconstruction of the Maestranza Wall as part of the Philippine
government’s program to protect our cultural heritage.

11
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

The project is divided into two (2) phases namely: the Archaeological
Excavation Works (Phase I), which shall be undertaken by the National
Museum and the Reconstruction Works (Phase II) shall be strictly
supervised by the Intramuros Administration based on the approved archival
plans.

The former Secretary of the DOT, Richard J. Gordon initiated the request
for funding from the Government of Japan in 2003. The fund was approved
for financing under the Non-Project Grant Assistance (NPGA) of Japan
Counter value fund.

Upon request of the Undersecretary Roberto B. Tan of the Department of

Finance (DOF) in its letter to the Treasurer of the Philippines dated
February 27, 2006, Notice of Fund Availability in the amount of
P250,519,988.00 was issued by the Bureau of Treasury on March 16, 2006.
Such amount was credited to Income from Grants and Donations (171) of
the DOT (B1488).

1.5.4 Tourism Development Fund (Special Account in the General Fund -

Fund 151)

The DOT Tourism Development Fund was created by virtue of Republic

Act No. 9593 otherwise known as Tourism Act of 2009, which specifically
provides under Chapter II, Section 16 that “In line with the objective of
ensuring a sustainable funding mechanism for the implementation of
tourism policies, plans, programs, projects and activities, the Office of
Tourism Resource Generation shall be tasked with the collection of
necessary fees and charges which shall be used by the Department in the
promotion and marketing efforts of the TPB and the development of
infrastructure facilities, utilities and services of the TIEZA. The proceeds of
such collection shall accrue directly and automatically to the Department.

Pursuant to Section 16 of the Tourism Act of 2009 and Chapter II Section

26 of the Implementing Rules and Guidelines, the Department established a
special account in the General Fund called as “Tourism Development Fund”
with Department of Budget and Management (DBM) approval on 03 May
2011 duly signed by Undersecretary Mario L. Relampagos indicating that
Fund Code 151 shall be used to record the fees and charges that maybe
imposed by the Department in pursuant of the mandate, including fees
currently collected from accreditation and conduct of training for the
tourism industry and also, the said fund code shall be used in recording the
expenditures that shall be charged against collections in accordance with RA
9593.

12
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

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

The financial statements have been prepared in accordance with and in compliance with the
Philippine Public Sector Accounting Standards (PPSAS) issued by the Commission on
Audit per COA Resolution No. 2014-003 dated January 24, 2014.

The financial statements have been prepared on the basis of historical cost, unless stated
otherwise. The Statement of Cash Flows is prepared using the direct method.

3. Summary of Significant Accounting Policies

3.1 Basis of Accounting

The financial statements are prepared on accrual basis in accordance with Philippine
Public Sector Accounting Standards (PPSAS).

3.2 Financial Instruments

a. Financial Assets

Initial recognition and measurement

The agency’s financial assets include: cash, short-term deposits, trade and other
receivables.

Subsequent measurement

The subsequent measurement of financial assets depends on their classification.

Derecognition

DOT derecognizes a financial asset or, where applicable, a part of a financial

asset or part of a DOT of similar financial assets when:

 The rights to receive cash flows from the asset have expired or waived;

 DOT has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material
delay to a third party; and either: (a) DOT has transferred substantially all the
risk and rewards of the asset; or (b) DOT has neither transferred nor retained
substantially all the risk and rewards of the asset, but has transferred control
of the asset.

13
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Impairment of financial assets

DOT assesses at each reporting date whether there is objective evidence that a
financial asset or a group of financial assets is impaired. A financial asset or a
group of financial assets is deemed to be impaired if, and only if, there is
objective evidence of impairment as a result of one or more events that has
occurred after the initial recognition of the asset (an incurred ‘loss event’) and that
loss event has an impact on the estimated future cash flows of the financial asset
or the group of financial assets that can be reliably estimated. Evidence of
impairment may include the following indicators.

 The debtors or a group of debtors are experiencing significant financial

difficulty
 Default or delinquency in interest and principal payments
 The probability that the debtors will enter bankruptcy or other financial
reorganization
 Observable data indicates a measurable decrease in estimated future cash
flows (e.g. changes in arrears or economic conditions that correlate with
defaults).

Financial assets carried at amortized cost

For financial assets carried at amortized cost, DOT first assesses whether
objective evidence of impairment exists individually for financial assets that are
individually significant. If DOT determines that no objective evidence of
impairment exists for an individually assessed financial asset, whether significant
or not it includes the asset in a group of financial assets with similar credit risk
characteristics and collectively assesses them for impairment. Assets that are
individually assessed for impairment and for which an impairment loss is, or
continues to be, recognized are not included in a collective assessment of
impairment.

If there is objective evidence that an impairment loss has been incurred, the
amount of the loss is measured at the difference between the assets carrying
amount and present value of estimated future cash flows (excluding future
expected credit losses that have not been yet incurred). The present value of the
estimated future cash flows is discounted at the financial asset’s original effective
interest rate.

The carrying amount of the asset is reduced through the use of an allowance
account and the amount of the loss recognized in surplus or deficit. Loans
together with the associated allowance are written off when there is no realistic
prospect of future recovery and all collateral has been realized or transferred to
DOT. If, in a subsequent year, the amount of the estimated impairment loss
increases or decreases because of an event occurring after the impairment was

14
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

recognized, the previously recognized impairment loss is increased or reduced by

adjusting the allowance account. If a future write-off is later recovered, the
recovery is credited to finance costs in surplus of deficit.

b. Financial liabilities

Initial recognition and measurement

The Department’s financial liabilities include trade and other payables.

Subsequent measurement

The measurement of financial liabilities depends on their classification.

Accounts payable is non-derivative financial liabilities with fixed payments not

quoted on an active market that are payable in cash. Accounts payables, due to
their short-term nature, are valued at nominal value, which is the equivalent of
amortized cost.

Derecognition

A financial liability is derecognized when the obligation under the liability is

discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender
on substantially different terms, or the terms of existing liability are substantially
modified, such an exchange or modification is treated as derecognition of the
original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognized in surplus or deficit.

3.3 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash at bank, which are
readily convertible to known amounts of cash and are subject to insignificant risk of
changes in value.

3.4 Inventories

Inventory is measured at cost upon initial recognition. To the extent that inventory
was received through non-exchange transactions (for no cost or for a nominal cost),
the cost of the inventory is its fair value at the date of acquisition.

Costs incurred in bringing each product to its present location and conditions are
accounted for, as follows:

15
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

 Materials: purchase cost using the weighted average cost method.

After initial recognition, inventory is measured at the lower of cost and net
realizable value. However, to the extent that a class of inventory is distributed or
deployed at no charge or for a nominal charge, that class of inventory is measured
at the lower of cost and current replacement cost.

Net realizable value is the estimated selling price in the ordinary course of
operations, less the estimated costs of completion and the estimated costs necessary
to make the sale, exchange or distribution.

Inventories are recognized as an expense when deployed for utilization or

consumption in the ordinary course of operations of DOT.

3.5 Property, Plant and Equipment

Recognition

An item is recognized as property, plant and equipment (PPE) if it meets the

characteristics and recognition criteria as PPE.

The characteristics of PPE are as follows:

 tangible items
 are held for used or for administrative purposes: and
 are expected to be used during more than one reporting period.

An item of PPE is recognized as an asset if:

 It is probable that future economic benefits or service potential associated with

the item will flow to the entity;
 The cost or fair value of the item can be measured reliably;
 Beneficial ownership and control clearly rest with the government;
 The asset is used to achieve government objectives; and
 It meets the capitalization threshold of P15,000.00.

Items with individual values below the threshold but which work together in the
form of a group of network asset whose total value exceeds the threshold shall be
recognized as part of the primary PPE. (Example: computer network, PABX
system). Expenditures incurred on purchasing, developing, and operating hardware,
like web servers, staging servers, production servers and internet connections of a
website is accounted for as PPE if the total value of the primary asset
(communication networks) and these item is within the threshold of P15,000.00 and
above.

16
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

The threshold is applied on an individual asset or per item basis. Each item within
the bulk acquisition with aggregate or total value of PPE, such as library books,
computer, peripherals and small item of equipment will need to meet the
capitalization threshold to be recognized as PPE.

Measurement at Recognition

An item recognized property, plant and equipment are measured at cost.

A PPE acquired through non-exchange transaction is measured at its fair value as at

the date of acquisition.

The cost of the PPE is the cash price equivalent or, for PPE acquired through non-
exchange transaction its cost is its fair value as at recognition date.

Cost includes the following:

 Its purchase price, including import duties and non-refundable purchase taxes,
after deducting trade discounts and rebates; and
 Expenditure is directly attributable to the acquisition of the items.

Measurement after recognition

After recognition, all PPEs are stated at cost less accumulated depreciation.

When significant parts of PPE are required to be replaced at intervals, DOT

recognizes such parts as individual assets with specific useful lives and depreciates
them accordingly. Likewise, when a major repair/replacement is done, its cost is
recognized in the carrying amount of the PPE as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognized as
expense in surplus or deficit as incurred.

All other repair and maintenance costs are recognized as expense in surplus or
deficit as incurred.

Depreciation

Each part of an item of PPE with a cost that is significant in relation to the total cost
of the item is depreciated separately.

The depreciation charge for each period is recognized as expense unless it is

included in the cost of another asset.

17
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Initial Recognition of Depreciation

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

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

For simplicity and to avoid proportionate computation, the depreciation is for one
month if the PPE is available for use on or before the 15th of the month. However, if
the PPE is available for use after the 15th of the month, depreciation is for the
succeeding month.

Depreciation Method

The straight line method of depreciation shall be adopted unless another method is
more appropriate for agency operation.

Estimated Useful Life

DOT uses the Schedule on the Estimated Useful Life of PPE by classification
prepared by Commission on Audit. The agency uses a residual value equivalent to
at least five percent (5%) of the cost of the PPE.

Derecognition

DOT derecognizes items of PPE and/or any significant part of an asset upon
disposal or when no future economic benefits or service potential is expected from
its continuing use. Any gain or loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds and the carrying amount of the
asset) is included in the surplus or deficit when the asset is derecognized.

3.6 Liabilities

Payable accounts are recognized and recorded in the books of accounts only upon
acceptance of the goods/inventory/other assets and rendition of services in the
agency.

3.7 Changes in Accounting Policies and Estimates

DOT recognizes the effect of changes in accounting policy retrospectively. The

effects of changes in accounting policy are applied prospectively if retrospective
application is impractical.

The Department recognizes the effects of changes in accounting estimates

prospectively by including in surplus or deficit.

18
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

It corrects material prior period errors retrospectively in the first set of financial
statements authorized for issue after their discovery by:

 Re-starting the comparative amount for prior period(s) presented in which the
error occurred; or
 If the error occurred before the earliest prior period presented, restarting the
opening balances of assets, liabilities and net assets/equity for the earliest prior
period presented.

3.8 Foreign Currency Transaction

Transactions in foreign currencies were initially recognized by applying the spot

exchange rate between the function currency and the foreign currency at the
transaction.

At each reporting dates:

 Foreign currency monetary items were translated using the closing rate;

 Nonmonetary items that were measured in terms of historical cost in a foreign

currency were translated using the exchange rate at the date of the transaction;
and

 Nonmonetary items that were measured at fair value in a foreign currency were
translated using the exchange rates at the date when the fair value was
determined.

Exchange differences arising (a) on the settlement of monetary items, or (b) on

translating monetary items at rates different from those at which they were
translated on initial recognition during the period or in previous financial
statements, were recognized in surplus or deficit in the period in which they arise,
except as those arising on a monetary item that forms part of a reporting entity’s net
investment in a foreign operation.

3.9 Budgeting Information

The annual budget is prepared on a cash basis and is published in the government
website.

As a result of the adoption of the cash basis for budgeting purposes, a separate
Statement of Comparison of Budget and Actual Amounts (SCBAA) is presented
showing the basis, timing or entity differences. Explanatory comments are provided
in the notes to the annual financial statements; first, the reasons for the overall
growth or decline in the budget are started, followed by details of overspending or
under spending on line items.

19
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

The annual budget figures included in the financial statements are for the
controlling entity DOT.

3.10 Related Parties

DOT regards a related party as a person or an entity with the ability to exert control
individually or jointly, or to exercise significant influence over the DOT, or vice
versa.

Members of the Key Management and regarded as related parties and comprise the
members of the Planning and Management Committee of the Department of
Tourism such as: Secretary of DOT and Chairman of Planning and Management
Committee of the DOT.

3.11 Employee Benefits

The employees of DOT are member of the Government Service Insurance System
(GSIS), which provide life and retirement insurance coverage.

The Department recognizes the undiscounted amount of short term employees

benefits, like salaries, wages, bonuses, allowances, etc., as expense unless
capitalized and as a liability after deducting the amount paid.

It recognizes expenses for accumulating compensated absences when this are paid
(Commuted or paid as terminal leave benefits). Unused entitlements that have
accumulated at the reporting date are not recognized as expense. Non-accumulating
absences, like special leave privileges are not recognized.

3.12 Measurement of Uncertainty

The preparation of financial statements in conformity with PPSAS requires

management to make estimates and assumption that affects assets and liabilities,
and disclosure of contingent assets and liabilities, at the date of the financial
statements and the reported amounts of the revenues and expenses during the
period. Items requiring the use of significant estimates include the useful life of
capital assets and estimated employee benefits. Items requiring the use of
significant estimates include the useful life of capital assets and estimated employee
benefits.

Estimates are based on the best information available at the time of preparation of
the financial statements and are reviewed annually to reflect the new information as
it become available. Measurement uncertainty exists in these financial statements.
Actual results could differ from these estimates.

20
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

4. Changes in Accounting Policies

Accounts were converted to conform to the UACS pursuant to COA-DBM-DOF Joint

Circular No. 2013-1 dated August 6, 2013. This accounting change had no significant
impact on DOT’s financial statements. The amount of P590,478.11 pertaining to DOT-
Region II’s Property, Plant and Equipment items reclassified as Semi-Expendables.

5. Prior Period Adjustments

Fundamental errors of prior years are corrected through Accumulated Surplus/(Deficit)

account. Errors/adjustments affecting current year's operations are charged to the
appropriate current year's accounts.

DOT has determined the following prior period adjustments and its corresponding financial
effects:

Effect on Accumulated Effect on

Surplus Cumulative
Office/ Amount FS Line Item
Region (in Php) CY PY CY Affected
OSEC (981,048,471.16) Decrease Increase Decrease Expenses/Assets
NCR 235,720.74 Increase Decrease Increase Expenses/Assets
CAR (9,319,592.25) Decrease Increase Decrease Expenses/Assets
I (989,949.90) Decrease Increase Decrease Expenses/Assets
II (2,832,480.71) Decrease Increase Decrease Expenses/Assets
III (994,020.51) Decrease Increase Decrease No Separate Note
IV-A (19,604,739.97) Decrease Increase Decrease Expenses/Assets
IV-B (558,339.88) Decrease Increase Decrease Expenses/Assets
V (9,495,518.79) Decrease Increase Decrease Expenses/Assets
VI (1,361,106.61) Decrease Increase Decrease Expenses/Assets
VII (24,689,435.97) Decrease Increase Decrease Expenses/Assets
VIII (6,236,147.01) Decrease Increase Decrease Expenses/Assets
IX (2,376,188.59) Decrease Increase Decrease Expenses/Assets
X 22,691.55 Increase Decrease Increase Expenses/Assets
XI 4,627,974.43 Increase Decrease Increase Expenses/Assets
XII (11,755,097.78) Decrease Increase Decrease Expenses/Assets
XIII (10,000,549.29) Decrease Increase Decrease Expenses/Assets
Total (1,076,375,251.70)

Effect on
Effect on Cumulati
Nature of Office/ Amount Accumulated Surplus ve FS Line Item
Changes Region (in Php) CY PY CY Affected
1) Refund/Liquidation of Prior Year's
a. Cash Advances
OSEC (8,862,606.43) Decrease Increase Decrease Expenses/Assets
NCR (5,740.00) Decrease Increase Decrease Expenses/Assets
CAR (1,009,965.11) Decrease Increase Decrease Expenses/Assets
I (132,529.87) Decrease Increase Decrease Expenses/Assets
II (104,800.00) Decrease Increase Decrease Expenses/Assets
VIII 398,807.00 Increase Decrease Increase Expenses/Assets
XI (143,579.49) Decrease Increase Decrease Expenses/Assets

21
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Effect on
Effect on Cumulati
Nature of Office/ Amount Accumulated Surplus ve FS Line Item
Changes Region (in Php) CY PY CY Affected
XIII (726,756.06)
Decrease Increase Decrease Expenses/Assets
Sub-total (10,587,169.96)
b. Liquidation of Fund Transfer to PTOs and ROS
OSEC (211,532,047.88) Decrease Increase Decrease Expenses/Assets
NCR (103,776.07) Decrease Increase Decrease Expenses/Assets
V 273,626.54 Increase Decrease Increase Expenses/Assets
XII (6,330,248.61) Decrease Increase Decrease Expenses/Assets
Sub-total (217,692,446.02)
c. Liquidation of Fund Transfer to NGAs, LGUs, NGOs/POs and GOCCs
OSEC (615,494,077.46) Decrease Increase Decrease Expenses/Assets
CAR (4,384,072.16) Decrease Increase Decrease Expenses/Assets
I (10,424.93) Decrease Increase Decrease Expenses/Assets
IV-A (14,765,998.82) Decrease Increase Decrease Expenses/Assets
IV-B (66,735.00) Decrease Increase Decrease Expenses/Assets
V (6,436,468.77) Decrease Increase Decrease Expenses/Assets
VI (2,509,000.00) Decrease Increase Decrease Expenses/Assets
VII (24,444,171.99) Decrease Increase Decrease Expenses/Assets
VIII 4,630,859.47 Increase Decrease Increase Expenses/Assets
XI (987,684.65) Decrease Increase Decrease Expenses/Assets
XIII (9,243,124.76) Decrease Increase Decrease Expenses/Assets
Sub-total (673,710,899.07)
2) Reclassification of Accounts/Adjustment/Correction of Accounts
OSEC (145,159,739.39) Decrease Increase Decrease Expenses/Assets
NCR 345,236.81 Increase Decrease Increase Expenses/Assets
CAR (3,925,554.98) Decrease Increase Decrease Expenses/Assets
I (846,995.10) Decrease Increase Decrease Expenses/Assets
II (2,727,680.71) Decrease Increase Decrease Expenses/Assets
III (994,020.51) Decrease Increase Decrease No Separate Note
IV-A (4,838,741.15) Decrease Increase Decrease Expenses/Assets
IV-B (491,604.88) Decrease Increase Decrease Expenses/Assets
V (3,332,676.56) Decrease Increase Decrease Expenses/Assets
VI 1,147,893.39 Increase Decrease Increase Expenses/Assets
VII (245,263.98) Decrease Increase Decrease Expenses/Assets
VIII (11,265,813.48) Decrease Increase Decrease Expenses/Assets
IX (2,376,188.59) Decrease Increase Decrease Expenses/Assets
X 22,691.55 Increase Decrease Increase Expenses/Assets
XI 5,759,238.57 Increase Decrease Increase Expenses/Assets
XII (5,424,849.17) Decrease Increase Decrease Expenses/Assets
XIII (30,668.47) Decrease Increase Decrease Expenses/Assets
Sub-total (174,384,736.65)
Grand Total (1,076,375,251.70)

The prior period adjustment amounting to P1,076,375,251.70 credit balances will increase
the opening balance of accumulated surplus in the current year.

6. Cash and Cash Equivalents

2016 2015
Accounts (in Php)
Cash on Hand 483,974.79 698,992.81
Cash-Collecting Officers 18,258.99 53,840.37

22
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

2016 2015
Accounts (in Php)
Petty Cash Fund 465,715.80 645,152.44
Cash in Bank – Local Currency 928,729,909.53 832,936,128.29
Cash in Bank, Local Currency -Current Account 928,719,909.53 832,916,128.29
Cash in Bank, Local Currency -Savings Account 10,000.00 20,000.00
Cash in Bank – Foreign Currency - 178,245,611.38
Cash in Bank, Foreign Currency-Current Account - 102,045,950.45
Cash in Bank, Foreign Currency-Savings Account - 76,199,660.93
Treasury/Agency Cash Accounts 142,509,917.42 415,726,052.81
Cash - Treasury/Agency Deposit, Special Account 41,137,452.18 29,648,168.74
Cash - Treasury/Agency Deposit, Trust Account 101,372,465.24 -
Cash Modified Disbursing System - Regular - 386,077,883.94
Cash Modified Disbursing System - Special Account - 0.13
Total Cash and Cash Equivalents 1,071,723,801.74 1,427,606,785.29

6.1 Cash-Collecting Officers

Amount
Office/Region Remarks
(in Php)
OSEC 17,944.99 - Undeposited collections of the TIEZA Collecting
Officer for the Philippine Commission on Sports
Scuba Diving (PCSSD) amounting to P17,900.00.

- Undeposited collections for October 2016, Regular

Trust of Justine Claire Rico, DOT Cashier amounting
to P44.99 which was remitted on February 2017.
II 81.00 Refund of cash advance remitted early 2017.
IV-A 233.00 Refund of cash advance remitted early 2017.
Total 18,258.99

6.2 Petty Cash Fund

Amount
Office/Region (in Php)
OSEC 322,775.74
III 10,000.00
IV-B 10,089.50
VI 20,000.00
VII 15,000.00
IX 20,000.00
XI 699.00
XIII 10,000.00
TLA 57,151.56
Total 465,715.80

6.2.1 The Petty Cash Fund account balance of P465,715.80 of OSEC, Regions
III, IV-B, VI, VII, IX, XI and XIII represents the cash advances granted to
accountable officers to defray the miscellaneous and incidental expenses
needed in their respective offices and regions.

23
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

6.3 Cash in Bank – Local Currency, Current Account

Amount
Office/Region (in Php)
OSEC 536,875,478.40
NCR 115,699.77
CAR 18,238.00
II 54,944.98
III 13,574.50
IV-A 1,461,264.74
V 2,483,692.65
VI 2,970,036.73
VII 832,997.06
VIII 348,428.36
IX 183,823.70
XI 1,344,787.33
XII 277,221.85
XIII 1,014,290.00
TLA 380,725,431.46
Total 928,719,909.53

6.3.1. DOT-OSEC Cash in Bank Local Currency, Current Account

amounting to P536,875,478.40 consists of the following funds:

6.3.1.1 Regular Trust in the amount of P230,085,932.27 represents

the balance of funds received from other government and non-
government agencies for the implementation of ASEAN
Summit 2017 and various joint tourism related projects which
is covered by Memorandum of Agreement(MOA) specifying
the particular expenses to be paid out of the funds under the
General Fund. It also includes payment for performance
security, bid documents and receipted terminal leave to cover
disallowances of USEC Palabyab and Jazmin.

6.3.1.2 Payroll fund account in the amount of P3,035,724.21

represents salaries of DOT officials and employees, Job Order
and overtime payment as of December 31, 2016.

6.3.1.3. Forex Accommodation Account in the amount of

P303,394,872.59 represents balance of the forex account
maintained with LBP-Buendia to cover for foreign remittances
to PTOs and foreign creditors. This includes funds for transfer
to the overseas offices for operational needs and special
projects.

6.3.1.4 Philippine Commission on Sports Scuba Diving (PCSSD)

fund in the amount of P358,949.33 represents balance of all

24
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

income collections from the accreditation/license fees of

various dive establishments, dive instructors, master fees,
chamber treatment fees from divers accident patients for the
use recompression chamber and transfer of funds from Other
NGAs for various project and operational expenses.

6.3.2 The amount of P11,118,999.67 represents the balance of the account Cash
in Bank – Local Currency, Current Account of the 13 Regional Offices
consists mainly of the balances of financial assistance/various fund
transfers from OSEC and other partner agencies for implementation of
tourism projects in the respective regions.

6.3.3 The amount of P380,725,431.46 represents the balance of the account

maintained at Development Bank of the Philippines Cash in Bank –
Local Currency, Current Account of TLA.

6.4 Cash in Bank – Local Currency, Savings Account

6.4.1 The balance of P10,000.00 refers to the accounts of Region IV-A.

6.5 Cash-Treasury/Agency Deposit

Funding Source Amount

Account Title (in Php)
Special Account Fund 151 (TDF) 41,137,452.18
Trust Account Regular Fund 101,372,465.24
Total 142,509,917.42

6.5.1 The balance of Fund 151 Cash-Treasury/Agency Deposit Special

Account amounting to P41,137,452.18 represents the Tourism
Development Fund consisting of deposited collections from tourist-
oriented establishments such as accreditation, sticker, ID, codes,
training/seminar fees and participation fees from various travel expo.

6.5.2 The balance of Regular Fund Cash-Treasury/Agency Deposit Trust

Account amounting to P101,372,465.24 represents savings from the
operations and income generated from the commercial activities and other
donations or grants from other sources at the Expo.

7. Receivables

2016 2015
Accounts (in Php)
Accounts Receivable 660,945.62 886,169.54
Inter-Agency Receivables 616,846,563.20 1,208,326,828.58
Intra-Agency Receivables 13,551,221.04 11,740,023.14
Other Receivables 12,564,339.53 30,227,122.32
Total Receivables 643,623,069.39 1,251,180,143.58

25
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

7.1 Accounts Receivable

2016 2015
Office/Region (in Php)
OSEC 660,503.68 885,727.60
IX 441.94 441.94
Total 660,945.62 886,169.54

7.1.1 The Accounts Receivable for OSEC represents:

Amount
Nature of Receivable (in Php)
Overpayment to Automatic Center re: purchase of 1 unit Sony IC
recorder with built in memory per Check No. 774446 dated March 17,
2015. 728.75
Overpayment to Direction Travel & Tours in connection with the visit
of the DOT-PAL Beijing Tour Operators Familiarization Trip last
October 23, 2009. 514.50
DSA overpayment made to Asec. Rolando Canizal in his travel to
India on April 12-14, 2013. 360.00
Expo Shanghai receivable represents overpayment made to SI
Technologies, SM Prime Holdings for payment of printing and
installation of new graphic design, unused PAL tickets of media and
refund of DSA due from Edward King of PAGCOR. 46,298.86
Receivable of World Expo Aichi from LATIK Restaurant c/o Glenda
Barreto, President/CEO. A statement of account has already been sent
by the Chief Accountant on December 02, 2011, requesting payment
payable to the DOT. 612,961.57
Total 660,863.68

7.1.2 The Accounts Receivable amounting to P441.94 of Region IX represents

collectibles from suppliers due to overpayment arising from incorrect
computation of withholding taxes.

7.1.3 Aging/Analysis of Accounts Receivables

Not Past Due

past <30 30-60
Total due days days >60 days
Office/
Region (in Php)

OSEC 660,863.68 - - - 660,863.68

IX 441.94 - - - 441.94
Total 661,305.62 - - - 661,305.62

7.2 Inter-Agency Receivables

2016 2015
Accounts (in Php)
Due from National Government Agencies 152,620,574.04 773,673,046.66
Due from Government-Owned or Controlled Corporations 106,146,559.03 143,562,416.01
Due from Local Government Units 358,079,430.13 291,091,365.91
Total, Inter-Agency Receivables 616,846,563.20 1,208,326,828.58

26
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

7.2.1 Due from National Government Agencies

Office/ 2016 2015

Region (in Php)
OSEC 145,646,909.81 766,510,661.64
NCR 92,094.64 275,995.05
I 3,344,786.25 3,344,786.25
IV-B 387.02 104,174.90
V 3,517,763.61 3,418,796.11
VIII 18,632.71 18,632.71
Total 152,620,574.04 773,673,046.66

7.2.2 Due from Government-Owned or Controlled Corporations

Office/ 2016 2015

Region (in Php)
OSEC 106,130,319.60 143,516,176.58
I - 30,000.00
V 16,239.43 16,239.43
Total 106,146,559.03 143,562,416.01

7.2.3 Due from Local Government Units

Office/ 2016 2015

Region (in Php)
OSEC 55,994.48 1,152,854.37
NCR 500,000.00 500,100.00
CAR 5,536,752.11 3,854,953.77
I 41,805,392.39 37,265,817.32
II 16,486,447.84 18,702,113.55
III 27,591,760.00 14,546,500.00
IV-A 17,631,102.81 15,243,000.00
IV-B 15,213,358.94 8,096,648.03
V 45,863,221.35 33,640,546.62
VI 34,332,697.50 28,396,947.50
VII 46,020,685.13 44,419,494.46
VIII 50,499,663.97 37,340,523.44
IX 3,825,310.00 5,781,853.75
XI 2,715,333.74 2,377,372.17
XII 7,174,470.72 17,402,422.50
XIII 42,827,239.15 22,370,218.43
Total 358,079,430.13 291,091,365.91

7.3 Intra-Agency Receivables

2016 2015
Accounts
(in Php)
Due from Regional Offices 13,551,221.04 11,652,723.14
Due from Operating Units - 87,300.00
Total 13,551,221.04 11,740,023.14

27
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

7.3.1 Due from Regional Offices

2016 2015
Office
(in Php)
OSEC 13,551,221.04 11,652,723.14

The balance of P13,551,221.04 of account Due from Regional Offices

pertains to the fund transfers made to DOT Regional Offices during the year
for the conduct and implementation of various projects and the prior years
unliquidated balances.

Due from Regional Offices Due to Central Office Difference

Office/ Region
(in Php)
I 3,467,532.58 3,467,532.58 -
II 500,000.00 500,000.00 -
VIII 100,000.00 100,000.00 -
IX 421,660.46 421,660.46 -
XI 4,062,028.00 4,062,028.00 -
XIII 5,000,000.00 5,000,000.00 -
Total 13,551,221.04 13,551,221.04 -

7.4 Other Receivables

2016 2015
Accounts (in Php)
Receivables - Disallowances/Charges 5,941,139.80 5,468,060.49
Due from Officers and Employees 226,725.36 177,751.19
Due from Non-Government Organizations/People's Organizations 5,327,874.29 23,703,252.71
Other Receivables 1,068,600.08 878,057.93
Total 12,564,339.53 30,227,122.32

7.4.1 Receivables – Disallowances/Charges

2016 2015
Office/ Region (in Php)
OSEC 636,762.17 130,909.14
NCR 4,303,094.46 4,303,094.46
CAR - 800,000.00
I 114,612.94 147,106.19
VIII - 15,000.00
IX 23,680.00 23,680.00
XI 19,872.70 48,270.70
Trust Fund 843,117.53 -
Total 5,941,139.80 5,468,060.49

7.4.1.1 OSEC – The balance of Disallowance/Charges account of

P636,762.17 pertains to COA disallowances. There is an
overstatement in the amount of P237,688.92 due to the double
recording of the Notice/s of Finality of USEC Ma. Theresa I.
Martinez, hence the actual balance should be P399,073.25 as
follows:

28
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Officers and Employees Amount (in Php)

Rica Bueno 67,636.50
Oscar Palabyab 15,818.99
Eduardo Jarque 14,070.51
Alberto Lim 48,108.33
Edificia Gaerlan 15,750.00
Theresa I Martinez 237,688.92
Correct Amount 399,073.25
For Adjustment 237,688.92
Total 636,762.17

7.4.1.2 NCR - The P4,303,094.46 consists of the disallowances from the

following:

Particular Amount (in Php)

World Scout Parliamentary Union-
Former Congressman Dante Liban 4,231,433.99
Meynardo Carreon 43,088.46
Jennifer Padilla 28,572.01
Total 4,303,094.46

7.4.1.3 Region I - The disallowances/charges represent collectibles from

officers and employees due to disallowed payment amounting to
P114,612.94.

7.4.1.4 Region IX - The disallowances/charges of P23,680.00 represent

the balance of disallowed payments.

7.4.1.5 Region XI - The disallowances/charges of P19,872.70 represent

the disallowed payments of the following TIEZA (PTA) personnel:

Amount (in
Name Php)
Rey Dela Rosa 2,047.70
Ernesto Malay 10,741.00
Manuel Loste 7,084.00
Total 19,872.70

7.4.1.6 Trust Fund – The disallowances/charges of P843,117.53 represent

the disallowed payments of the following personnel:

Name Amount
Eduardo Jarque 26,930.40
Carmen Durano 713,332.00
Lydia/Karen Rodriguez 102,855.13
Total 843,117.53

29
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

7.4.2 Due from Officers and Employees

2016 2015
Office/ Region (in Php)
OSEC 225,223.92 22,012.65
CAR 100.00 115,390.00
II 142.01 -
IV-B 516.30 -
IX 743.13 40,348.54
Total 226,725.36 177,751.19

7.4.2.1 OSEC - The balance of Due from Officers and Employees of

P225,223.92 pertains to receivable of the following active and
resigned/retired employee/s:

Officer/Employee Amount(in Php)

Rolando Canizal 360.00
Roderick Gonzales 360.00
John Rosario 224,503.92
Total 225,223.92

7.4.2.2 CAR - The balance of Due from Officers and Employees of

P100.00 refers to the remaining equivalent amount of disallowed
cellular phones procured in previous year for the one employee and
was collected in January 2017.

7.4.2.3 Region II – The balance of Due from Officers and Employees of

P142.01.

7.4.2.4 Region IV-B - Due from Officers and Employees amounting to

P516.30 represents the differential amount on the new loans
payable due of Ms. Elizabeth R. Andal from Land Bank of the
Phils. for the months November and December 2016.

7.4.2.5 Region IX – The balance of Due from Officers and Employees of

P743.13.

7.4.3 Due from Non-Government Organizations/People’s Organizations

(NGOs/POs)

2016 2015
Office/ Region
(in Php)
OSEC 1,793,305.63 19,923,264.05
CAR 25,000.00 75.00
I 30,000.00 -
V 58,800.00 28,800.00
VI 1,372,500.00 1,502,500.00
VIII 598,870.00 598,870.00
IX 615,000.00 615,000.00
XI 784,398.66 784,398.66

30
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

2016 2015
Office/ Region
(in Php)
XIII 50,000.00 250,500.00
Total 5,327,874.29 23,703,407.71

7.4.3.1 OSEC - Due from NGOs/POs under Trust Funds represents

financial assistance granted in support of the joint conduct and
implementation of various tourism related projects. Details are as
follows:

NGOs/POs Amount (in Php)

Society for the Conservation of the Historical Organs in the
Philippines, Inc. 293,305.63
National Historical Commission of the Philippines 1,500,000.00
Total 1,793,305.63

7.4.3.2 CAR - Due from NGOs/POs account in the amount of P25,000.00

refers to the unliquidated balance of the financial assistance given
to Indigenous Peoples Education for Arts Culture and
Empowerment Inc. in support to the Gong Festival 2016.

7.4.3.3 Region I – Due from NGOs/POs in the amount of P30,000.00

pertains to fund transfer to the Hundred Islands Eco-Tourism
Association in Alaminos, Pangasinan for the Camp Site
Development in Sison, Pangasinan.

7.4.3.4 Region V - Due from NGOs/POS in the amount of P58,800.00

pertains to the unliquidated balance of fund transferred as of
December 31, 2016.

7.4.3.5 Region VI - Due from NGOs/POs in the amount of P1,372,500.00

are those financial assistance/sponsorship in various tourism
activities/ festivals for liquidation. Details as follows:

Particulars Amount (in Php)

Pinta Flores Foundation, Inc. 100,000.00
Hugyaw Silay, Inc. 50,000.00
Iloilo Paraw Regatta Foundation 300,000.00
LMP - Antique Chapter 50,000.00
Philippine Red Cross - Boracay Chapter 60,000.00
ATONO 25,000.00
Binirayan Foundation, Inc. 50,000.00
Sigmahonon Foundation for Culture and Arts, Inc. 50,000.00
Kalibo Ati-Atihan Tourism Council 100,000.00
Iloilo Dinagyang Foundation, Inc. 200,000.00
Iloilo Tourism Officer Association, Inc. 50,000.00
Salngan Livelihood Multi-purpose Cooperative 37,500.00
Association of Tourism Officers of the Philippines 300,000.00
Total 1,372,500.00

31
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

7.4.3.6 Region VIII - Due from NGOs/POS in the amount of P598,870.00

pertains to the unliquidated balance of fund transferred as of
December 31, 2016.

7.4.3.7 Region IX - Due from NGOs/POs in the amount of P615,000.00

represents the unliquidated balance of funds transfers for tourism
related activities to NGOs/POs in CY 2007 and 2008 liquidations of
which were not yet received as of December 2016.

7.4.3.8 Region XI - Due from NGOs/POs in the amount of P784,398.66

represents fund transfers to the following agencies for the
implementation of various tourism related activities/projects.

Particular Amount (in Php)

Davao del Norte Provincial Tourism Council 80,000.00
Davao Region Tourism Council 98,398.66
Davao Tourism Association 500,000.00
Duaw Davao Festivals 100,000.00
Diocese of Mati 6,000.00
Total 784,398.66

7.4.3.9 Regions XIII - Due from NGOs/POs in the amount of P50,000.00

represent unliquidated balance of funds transferred as financial
assistance for the celebration of Ligasan Festival in Magallanes
Agusan del Sur.

7.4.4 Other Receivables

Office/ 2016 2015

Region (in Php)
OSEC 425,137.50 425,137.50
NCR 6.00 -
CAR 3,600.00 13,870.22
I 187,576.28 187,366.55
III 113,271.94 113,271.94
V 5,206.78 5,206.78
VI 265,000.00 65,000.00
X - 68,204.94
XI 68,801.58 -
Total 1,068,600.08 878,057.93

7.4.4.1 OSEC - The balance of account Other Receivables in the

amount of P425,137.50 represents the receivable due from
Karangahan Dance Company re: World Expo 2005 Aichi project.
A demand letter was already sent to the company.

7.4.4.2 NCR – Other Receivables of P6.00 pertains to the amount due to

a DOT-NCR employee because of the over-remittance/payment

32
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

made on her housing loan to the National Home Mortgage

Finance Corporation in December 2016.

7.4.4.3 CAR - Other Receivables of P3,600.00 pertains to unused

registration fee to GACPA National Convention.

7.4.4.4 Region I - Other Receivables of P187,576.28 represents

receivables from officers and employees due to lost IT Equipment
and receivables from creditors due to overpayments.

7.4.4.5 Region III - Other Receivables of P113,271.94 comprise the

undocumented receivables of the agency which were carried in
the books of accounts since CY 2000. At present, the Accounting
Office is exerting all possible means to locate the documents
necessary to establish the condition or status of this account.

7.4.4.6 Region V - Other Receivables of P5,206.78 comprise of

overpayments to suppliers, subject for set off or refund.

7.4.4.7 Region VI - Other Receivables consists of financial

assistance/sponsorship on various tourism activities/festivals for
liquidation. Details are as follows:

Beneficiaries Amount
Manuel F Onato Memorial NHS 50,000.00
Masboi Sail Boat Service Coop 15,000.00
Gabriel J. Cordova 150,000.00
Jay Roxanne V. Divinagracia 50,000.00
Total 265,000.00

7.4.4.8 Region XI – Other Receivables of P68,801.58 represents

unliquidated travel allowance of JOs and regional director from
other regions.

8. Inventories

Inventories carried at
OSEC Trust Fund Regional the lower of cost and
Particulars Offices net realizable value
(in Php)
Carrying Amount,
January 1, 2016 3,180,311.83 155,820.00 20,661,286.42 23,997,418.25
Additions/Acquisitions during the year 10,612,944.77 - 20,189,704.27 30,802,649.04
Expensed during the year except write-
down (11,403,465.32) - (23,475,699.04) (34,879,164.36)
Adjustments during the year 158,602.50 - (1,191,941.05) (1,033,338.55)
Reversal of write-down during the year - - - -
Carrying Amount,
December 31, 2016 2,548,393.78 155,820.00 16,183,350.60 18,887,564.38

33
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

8.1 Inventories for Regional Offices

Carrying Additions/Acq Expensed Adjustments Carrying

Amount, uisitions during the year during the year Amount,
January 1, during the except write- December 31,
Offices/ 2016 year down 2016
Region (in Php)
NCR 792,617.63 1,208,760.05 (1,524,082.33) - 477,295.35
CAR 598,305.12 1,407,810.92 (1,700,666.93) - 305,449.11
I 1,242,576.64 1,219,059.73 (2,242,757.42) - 218,878.95
II 1,351,162.30 1,557,519.06 (1,628,041.49) - 1,280,639.87
III 3,567,073.64 1,177,448.92 (1,141,461.52) - 3,603,061.04
IV-A 89,745.70 1,968,364.33 (2,058,110.03) - -
IV-B 222,615.64 1,185,671.25 (1,215,228.99) - 193,057.90
V 4,471,457.14 1,479,136.90 (166,213.56) - 5,784,380.48
VI 320,484.51 3,051,922.65 (2,840,232.94) - 532,174.22
VII 2,344,142.50 741,526.23 (1,016,457.53) (1,067,188.50) 1,002,022.70
VIII 1,827,911.11 985,339.55 (1,207,780.20) - 1,605,470.46
IX 367,760.88 651,300.59 (1,067,765.32) - (48,703.85)
X 110,886.47 952,249.16 (866,503.58) - 196,632.05
XI 835,411.80 148,493.67 (301,209.18) (124,752.55) 557,943.74
XII 8,080.00 1,212,934.63 (1,207,674.63) - 13,340.00
XIII 2,511,055.34 1,242,166.63 (3,291,513.39) - 461,708.58
Total 20,661,286.42 20,189,704.27 (23,475,699.04) (1,191,941.05) 16,183,350.60

8.1.1 Inventories as of December 31, 2016 refer to the total cost of office supplies on stock
like bond paper, toner, computer ink, envelopes, electrical and Other Supplies and
Materials Inventory represents promotional materials/giveaways like bag, coffee
table, flash drive, luggage tag etc., for distribution in local and foreign tourism
events and activities

9. Property, Plant and Equipment

9.1 The total value of PPE net of accumulated depreciation as at December 31, 2016 is
detailed below:

Acquisition Cost Accumulated Depreciation Carrying Amount

Accounts
(in Php)
Land 52,114,930.00 - 52,114,930.00
Land 52,114,930.00 - 52,114,930.00
Infrastructure Assets 17,370,304.40 - 17,370,304.40
Parks, Plazas and
Monuments 17,147,508.40 - 17,147,508.40
Other Infrastructure
Assets 222,796.00 - 222,796.00
Buildings and Other
Structures 30,107,018.82 (10,324,183.72) 19,782,835.10
Buildings 20,163,756.22 (10,306,244.92) 9,857,511.30
Other Structures 9,943,262.60 (17,938.80) 9,925,323.80
Machinery and
Equipment 99,074,650.13 (68,406,393.12) 30,668,257.01
Machinery 839,029.00 (79,475.25) 759,553.75
Office Equipment 27,144,838.93 (20,873,663.21) 6,271,175.72

34
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Acquisition Cost Accumulated Depreciation Carrying Amount

Accounts
(in Php)
Information and
Communication
Technology
Equipment 63,761,221.19 (42,306,895.04) 21,454,326.15
Communication
Equipment 3,674,057.68 (2,041,899.09) 1,632,158.59
Medical Equipment 24,650.00 (22,185.00) 2,465.00
Sports Equipment 14,716.50 (13,244.90) 1,471.60
Other Machinery and
Equipment 3,616,136.83 (3,069,030.63) 547,106.20
Transportation
Equipment 53,072,492.48 (45,826,082.40) 7,246,410.08
Motor Vehicles 53,072,492.48 (45,826,082.40) 7,246,410.08
Furniture, Fixtures and
Books 88,741,480.75 (26,862,203.43) 61,879,277.32
Furniture and Fixtures 88,504,143.65 (26,700,201.66) 61,803,941.99
Books 237,337.10 (162,001.77) 75,335.33
Lease Assets
Improvements 6,825,306.05 (6,142,775.46) 682,530.59
Lease Assets
Improvements -
Building 6,825,306.05 (6,142,775.46) 682,530.59
Construction in
Progress 155,391,277.66 - 155,391,277.66
Construction in
Progress –
Infrastructure Assets 155,391,277.66 - 153,391,277.66
Other Property, Plant
and Equipment 14,288,171.09 (11,270,915.73) 3,017,255.36
Other Property, Plant
and Equipment 14,288,171.09 (11,270,915.73) 3,017,255.36
Total 516,985,631.38 (168,832,553.86) 348,153,077.52

9.1.1 The movements in PPE during the year are as follows:

Carrying Carrying
Gross Cost
Depreciation Amount Amount
Carrying Additions/ (Asset Account
Disposals/ (As per December 31, Less: December 31,
Property, Amount Acquisitions Balance per
Total Transfers/ Statements of 2016 (As per Accumulated 2016 (As pr
Plant and January 1, /Adjustment Statement of
Adjustments Financial Statement of Depreciation Statement of
Equipment 2016 s Financial
Performance) Financial Financial
Position)
Position) Position

(in Php)
Land 52,114,930.00 - 52,114,930.00 - - 52,114,930.00 52,114,930.00 - 52,114,930.00

Buildings 10,462,426.19 - 10,462,426.19 8,969.40 (613,884.29) 9,857,511.30 20,163,756.22 (10,306,244.92) 9,857,511.30

Other
Structures 9,934,293.20 - 9,934,293.20 (8,969.40) - 9,925,323.80 9,943,262.60 (17,938.80) 9,925,323.80
Leased Asset
Improvement 1,194,428.55 - 1,194,428.55 - (511,897.96) 682,530.59 6,825,306.05 (6,142,775.46) 682,530.59
Furniture and
Fixture and
Books 69,753,782.89 40,204.29 69,793,987.18 18,878.10 (7,933,587.96) 61,879,277.32 88,741,480.75 (26,862,203.43) 61,879,277.32
Machinery and
Equipment 34,147,364.46 2,338,521.51 36,485,885.97 2,972,842.18 (8,790,471.14) 30,668,257.01 99,074,650.13 (68,406,393.12) 30,668,257.01
Transportation
Equipment 9,697,393.32 16,000.00 9,713,393.32 587,675.94 (3,054,659.18) 7,246,410.08 53,072,492.48 (45,826,082.40) 7,246,410.08
Other
Property, Plant
and Equipment 4,483,796.77 - 4,483,796.77 78,446.97 (1,544,988.38) 3,017,255.36 14,288,171.09 (11,270,915.73) 3,017,255.36

35
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Carrying Carrying
Gross Cost
Depreciation Amount Amount
Carrying Additions/ (Asset Account
Property, Disposals/ (As per December 31, Less: December 31,
Amount Acquisitions Balance per
Plant and Total Transfers/ Statements of 2016 (As per Accumulated 2016 (As pr
January 1, /Adjustment Statement of
Equipment Adjustments Financial Statement of Depreciation Statement of
2016 s Financial
Performance) Financial Financial
Position)
Position) Position
Parks, Plaza
and
Monuments 17,147,508.40 - 17,147,508.40 - - 17,147,508.40 17,147,508.40 - 17,147,508.40
Other Public
Infrastructure
Assets 222,796.00 - 222,796.00 - - 222,796.00 222,796.00 - 222,796.00
Construction
in Progress -
Infrastructure
Assets 155,695,597.91 - 155,695,597.91 (304,320.25) - 155,391,277.66 155,391,277.66 - 155,391,277.66

Total 364,854,317.69 2,394,725.80 367,249,043.49 3,353,522.94 (22,449,488.91) 348,153,077.52 516,985,631.38 (168,832,553.86) 348,153,077.52

9.2.2 The Land is donated by Megaworld Corporation under Transfer Certificate of Title No.
095-2014003271 dated November 14, 2014 with the encumbrances that the said Property
shall be used the sole purpose of the construction and development of the Iloilo
Convention Center. The donation shall remain effective so long as the property is used
exclusively as the site of the Iloilo Convention Center, which shall be utilized for the
purpose of holding large-scale events, international fairs and conventions, congresses,
expositions and the like. The property is subject to the declaration of covenants and
restrictions and any amendment thereto as may be adopted by Megaworld Corporation
for the Iloilo Business Park and the Deed of donation dated November 13, 2012 executed
by Megaworld Corporation in favor of the Department of Tourism.

9.2.3 The details of carrying amount as of December 31, 2016 are as follows:

Construction Leased Assets

Parks, Plaza Other
in Progress – Buildings Improvements, Other
Office/ Land & Infrastructure
Infrastructure Building Structures
Region Monuments Assets
assets
(in Php)
OSEC 52,113,000.00 - 147,228,777.66 - - - 9,878,432.60
I - 17,147,508.40 - 222,796.00 - - -
II 1,930.00 - 8,162,500.00 - - - 46,891.20
IV-A - - - - - 682,530.59 -
V - - - - 3,531,994.26 - -
VI - - - - 2,637,568.26 - -
VIII - - - - 3,687,948.78 - -
Total 52,114,930.00 17,147,508.40 155,391,277.66 222,796.00 9,857,511.30 682,530.59 9,925,323.80

Other
Office ICT Communicati Medical Sports Machinery
Office/ Machinery
Equipment Equipment on Equipment Equipment Equipment and
Region
Equipment
(in Php)
OSEC - 3,170,470.34 16,427,886.33 1,153,905.86 2,465.00 - 264,321.17
NCR - 302,688.44 652,590.38 411,281.77 - - -
CAR - 53,066.07 78,243.79 850.00 - - -

36
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Other
Office ICT Communicati Medical Sports Machinery
Office/ Machinery
Equipment Equipment on Equipment Equipment Equipment and
Region
Equipment
(in Php)
I - 528,284.10 914,278.18 (51,309.77) - - -
II 759,553.75 587,732.24 328,227.83 7,080.00 - - -
III - 311,810.79 21.80 1,602.10 - - -
IV-A - 157,216.47 236,081.44 74,974.73 - - -
IV-B - 4,779.40 137,590.09 1,002.40 - - -
V - 32,124.44 35,324.77 - - - 8,473.39
VI - 32,193.99 137,615.20 - - 1,471.60 21,411.64
VII - 246,937.19 241,832.08 - - - -
VIII - 254,833.60 949,423.28 3,383.00 - - -
IX - 199,493.34 182,653.50 10,650.00 - - 252,900.00
X - 123,301.67 267,399.91 12,990.00 - - -
XI - 117,005.92 134,413.02 - - - -
XII - 96,866.81 290,406.97 - - - -
XIII - 52,370.91 440,337.58 5,748.50 - - -
Total 759,553.75 6,271,175.72 21,454,326.15 1,632,158.59 2,465.00 1,471.60 547,106.20

Transportation Furniture & Fixtures and

Other PPE
Office/ Region Equipment Books
(in Php)
OSEC 1,886,837.28 58,148,755.66 1,719,246.86
NCR 135,844.05 272,733.23 4,156.37
CAR 89,767.26 95,599.95 8,750.00
I 484,816.35 354,594.96 13,310.50
II 159,820.97 162,643.59 -
III 349,149.22 2,439.75 101,588.85
IV-A 336,653.18 1,116,153.05 45,043.92
IV-B - 12,061.75 -
V 38,991.01 319,523.78 2,719.00
VI 924,960.00 71,028.00 8,520.00
VII 160,917.36 109,607.86 -
VIII 78,610.00 613,425.78 514,672.00
IX 624,946.49 140,909.42 12,111.41
X 456,729.30 146,223.51 75,677.77
XI 581,257.61 22,172.38 511,458.68
XII 845,460.00 291,404.65 -
XIII 91,650.00 - -
Total 7,246,410.08 61,879,277.32 3,017,255.36

10. Other Assets

10.1 Other Current Assets

Amount
Accounts
(in Php)
Advances 275,237,063.87
Prepayments 4,390,599.21
Deposits 21,867,059.72
Total 301,494,722.80

37
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

10.1.1 Advances amounting to P275,237,063.87 represent the following accounts:

a. Advances for Operating Expenses of P256,047,470.17 represents the

bank balance of 13 Philippine Tourism offices as follows:

i. Regular Fund

(In US$)
Office PS MOE/SP (In Php)
1 London 19,924.86 807,384.80 41,115,724.68
2 Frankfurt 39,714.90 1,221,828.30 62,687,827.06
3 Shanghai - 230,513.25 11,461,118.70
4 Beijing 16,852.75 300,495.77 15,763,249.26
5 Taiwan - 225,873.34 11,230,422.46
6 Los Angeles - 171,452.64 8,524,625.26
7 San Francisco 54,284.72 232,248.79 14,177,946.73
8 New York 22,065.25 382,681.88 20,103,969.96
9 Sydney 25,878.89 341,160.21 18,225,660.15
10 Tokyo 47,217.56 276,914.96 16,072,948.09
11 Korea - 398,109.43 19,794,000.84
12 Osaka - 315,923.85 15,707,733.82
13 India - 124.55 6,192.63
Total 225,938.93 4,904,711.77 254,871,419.64

ii. Trust Fund

Amount Amount
Name of SDO Post (In US$) (In Php)
Rosario Afuang London 17,632.35 876,680.45
Venus Tan London 4,529.17 225,190.33
Philip Zorgini New York 589.43 29,306.46
Lorelei Cruz Osaka 902.52 44,873.29
Total 23,653.47 1,176,050.53

b. Advances for Payroll of P1,344.63 pertains to unliquidated cash

advance of employees of DOT-Region V.

c. Advances to Special Disbursing Officer of P14,642,480.53 pertains to

the unliquidated cash advance for special purpose/time bound
undertakings of the following office/s:

Office/ Region Amount (in Php)

OSEC 8,017,741.22
I 4,664,660.23
IX 75,458.75
XIII 1,084,620.33
Trust Fund 800,000.00
Total 14,642,480.53

38
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

d. Advances to Officers and Employees of P4,545,768.54 pertains to the

unliquidated cash advances granted to Officers and Employees for
foreign and local travel of the following office/s:

Office/ Region Amount (in Php)

OSEC 4,197,666.80
CAR 63,750.00
I 59,740.10
IV-A 69,400.00
V 4,250.00
VIII 26,410.00
IX 124,551.64
Total 4,545,768.54

10.1.2 Prepayments amounting to P4,390,599.21 represents the following

accounts:

a. Advances to Contractors in the amount of P2,865,576.82 pertain to the

payments made by various contractors. Details are as follows:

Payee Particulars Amount (in PhP)

Upgrade transformer in
Meralco DOT Manila and Makati 2,531,602.70
Leasehold improvement
Villaram Builders – DOT Makati Office (0.01)
U-Bix Corporation Data warehousing 333,974.13
Total 2,865,576.82

b. Prepaid Rent, Insurance and Other Prepayments

Prepaid Other
Office/ Prepaid Rent Total
Insurance Prepayments
Region
(in Php)
NCR - 634.55 36,770.00 37,404.55
CAR 93.37 6,819.68 2,860.00 9,773.05
II - 1,802.46 12,984.00 14,786.46
IV-A 1,201,230.08 - 30,000.00 1,231,230.08
V - - 21,402.95 21,402.95
VI 167,900.00 17,986.31 - 185,886.31
VII - 24,538.99 - 24,538.99
Total 1,369,223.45 51,781.99 104,016.95 1,525,022.39

10.1.3 Guaranty Deposit

Office/ Region Amount (in Php)

OSEC 21,681,472.50
NCR 20,000.00
IV-B 20,000.00
XI 145,587.22
Total 21,867,059.72

39
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

10.2 Other Non-Current Assets

Office/ Region Amount (in Php)

NCR 115,361.67
IV-A 13,546.09
IV-B 45,494.04
V 205,825.99
VI 101,351.54
VII 237,584.32
VIII 120,669.81
XII 135,832.44
Total 975,665.90

11. Financial Liabilities

2016 2015
Accounts (in Php)
Accounts Payable 63,308,127.77 511,151,951.76
Due to Officers and Employees 1,127,700.47 20,338,966.19
Total 64,435,828.24 531,490,917.95

11.1 Accounts Payable

2016 2015
Office/
Current Non-Current Current Non-Current
Region
(in Php)
OSEC 27,506,651.73 - 477,990,975.05 -
NCR 1,803,448.41 - 1,043,763.27 -
CAR 35,500.00 - 1,046,138.07 -
I 4,259,971.06 - 615,273.63 -
II 34,250.00 - 563,786.68 -
III 2,135,314.47 - 3,269,111.75 -
IV-A 149,828.10 - 3,229,546.88 -
IV-B 631,198.60 - 1,342,717.62 -
V 900.00 - 900.00 -
VI 36,211.14 - - -
VII 548,671.48 - 1,610,864.33 -
VIII 23,509,660.72 - 15,183,306.96 -
IX 991,135.96 - 1,769,720.49 -
X - - 247,287.94 -
XI 1,424,611.26 - 1,838,764.06 -
XII 10,758.86 - 1,304,256.12 -
XIII 230,015.98 - 95,538.91 -
Total 63,308,127.77 - 511,151,951.76 -

11.1.1 The Accounts Payable account balance of P63,308,127.77 consist of

P386,434.23 unreleased checks and P62,921,693.54 due and demandable
obligations as of December 31, 2016.

40
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

11.2 Due to Officers and Employees

2016 2015
Office/
Current Non-Current Current Non-Current
Region
(in Php)
OSEC 759,402.63 - 20,197,887.64 -
CAR 1,238.00 - - -
II 6,195.96 - 2,326.38 -
IV-B 162,060.73 - 33,300.00 -
V 14,717.42 - 3,350.50 -
VII 8,821.43 - - -
IX 42,233.53 - 47,435.49 -
XI 128,432.27 - 50,067.68 -
XIII 4,598.50 - 4,598.50 -
Total 1,127,700.47 - 20,338,966.19 -

11.2.1 Due to Officers and Employees balance of P1,127,700.47 are as follows:

(a) OSEC pertains to the unpaid salaries and allowances of officers and
employees and Job Orders; and

(b) Regional Offices balances amounting to P368,297.84 pertain to

unpaid salaries of Officers and Employees.

12. Inter-Agency Payables

2016 2015
Accounts
(in Php)
Due to BIR 5,256,763.87 6,024,866.78
Due to GSIS 240,615.17 362,318.28
Due to Pag-IBIG 114,780.72 87,799.05
Due to PhilHealth 52,099.49 38,167.86
Due to NGAs 6,768,392.76 4,548,862.46
Due to GOCCs 6,103,122.42 1,605,639.38
Due to LGUs 1,478,285.72 1,973,262.00
Total Inter-Agency
Payables 20,014,060.15 14,460,915.81

11.3 Due to BIR

2016 2015
Office/ Region (in Php)
OSEC 2,545,444.22 3,805,274.46
NCR 351,220.97 515,354.10
CAR 233,494.01 226,167.96
II 175,140.77 1,100.66
III 290,788.75 141,994.27
IV-A 301,295.61 162,209.23
IV-B 260,680.15 156,720.36
V 235,791.99 293,563.33
VI - 7,352.40
VII - 15,248.78
VIII 242,335.35 144,507.08

41
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

2016 2015
Office/ Region (in Php)
IX 98,299.18 98,941.88
XI 240,074.66 185,513.40
XII 181,701.51 203,338.21
XIII 100,496.70 67,580.66
Total 5,256,763.87 6,024,866.78

11.3.1 The Due to BIR represents the unremitted taxes withheld by DOT from its
officials and employees and from contractors as at December 31, 2016. The
balance includes withholding taxes from the unreleased checks as at year
end. The same were remitted in 2017 upon release of the checks.

11.4 Due to GSIS/Pag-IBIG/PhilHealth

11.4.1 Due to GSIS

2016 2015
Office/ Region
(in Php)
OSEC 47,824.71 60,218.30
NCR 10,569.78 11,537.59
III 44,580.44 -
IV-A - 1,518.61
IV-B 13,399.53 -
V 7,619.57 82,477.22
VIII 97,337.14 90,553.53
IX 8,538.18 15,594.05
XI 10,745.82 6,663.24
XII - 267.84
XIII - 93,487.90
Total 240,615.17 362,318.28

11.4.2 Due to Pag-IBIG

2016 2015
Office/ Region
(in Php)
OSEC 14,420.19 21,071.11
NCR 800.00 900.00
II - 500.00
III 12,156.78 7,648.24
IV-A 18,517.39 22,965.80
IV-B 15,678.43 5,755.36
V 18,131.94 18,271.04
VIII 17,492.25 -
IX 13,883.74 10,487.50
XI 200.00 200.00
XIII 3,500.00 -
Total 114,780.72 87,799.05

11.4.3 Due to PhilHealth

2016 2015
Office/ Region (in Php)
OSEC 17,550.06 23,112.15

42
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Office/ Region 2016 2015

NCR 5,966.81 6,054.31
III 4,032.78 4,020.28
IV-A 825.00 -
IV-B 8,825.00 900.00
V 693.92 693.92
VIII 6,337.50 -
IX 6,549.70 3,649.70
XI (262.50) (262.50)
XIII 1,581.22 -
Total 52,099.49 38,167.86

11.4.4 The Due to GSIS, Pag-IBIG and PhilHealth refer to the unremitted
employees and employer’s share contributions and other deductions from
the employees due for remittance in CY 2017.

12.3 Due to NGAs

2016 2015
Office/ Region
(in Php)
NCR 4,162.27 4,162.27
III - 122,040.19
V 6,094,820.49 3,753,250.00
XI 669,410.00 669,410.00
Total 6,768,392.76 4,548,862.46

12.3.1 Regions V - Due to NGAs represent fund transfer from other national
government agencies. Details are as follows:

Name of Year of
NGA Transfer Particulars Amount
TIEZA 2014 UNWTO Convention 2014 200,000.00
TPB 2014 UNWTO Convention 2014 773,550.00
TPB 2014 Philippine Travel Mart 2014 200,000.00
TPB 2014 Production of Promo Collaterals 500,000.00
TPB 2014 PHITEX 2014 50,000.00
TPB 2014 Regional Launching of Visit Philippines 2015 350,000.00
TPB 2015 UNWTO Lunch Hosting 280,000.00
TPB 2015 Travel Tour Expo 2015 200,000.00
TPB 2015 Philippine Travel Mart 2015 99,900.00
TPB 2015 Travel Sale Expo 2015 99,900.00
TPB 2015 PATA Conference 2015 999,900.00
TIEZA 2016 Repair of DOT V Bldg 998,170.49
TPB 2016 Travel Tour Expo (TTE) 2016 99,900.00
TPB 2016 Winter Escapade 2016 399,900.00
TPB 2016 World Street Food Congress and Jamboree 2016 149,900.00
TPB 2016 Tourism Destination Branding and Digital 693,700.00
Marketing Seminar Workshop Dec 14-16, 2016
Total 6,094,820.49

12.3.2 Regions XI - Due to NGAs represent fund transfer from other national
government agencies. Details are as follows:

43
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Particulars Amount
Philippine Travel Mart – Cebu 19,410.00
DOT Region X 250,000.00
CAAP for Air Access 250,000.00
DOTC for Air Access 150,000.00
Total 669,410.00

12.4 Due to GOCCs

2016 2015
Office/ Region
(in Php)
OSEC 4,804,072.04 -
NCR 947.38 947.38
CAR - 41,931.91
I 200,000.00 200,000.00
IV-A 449,748.50 -
V 6,759.04 6,759.04
VII 284,425.58 1,142,100.51
VIII 350,460.50 213,900.54
IX 6,709.38 -
Total 6,103,122.42 1,605,639.38

12.4.1 OSEC refer to the Duty Free Philippines over remittance of net income
for CY 2010-2014.

12.4.2 NCR – Due to NGAs and GOCCs were dormant accounts for seven
years and the details and validity of the balance could not be
established in the absence of records and documents.

12.4.3 Region I refers to the amount received from the Philippine Tourism
Authority (PTA), Manila in CY 2003. This was issued as cash advance to
former Regional Director Ernesto B. Malay Jr., and said amount is not yet
liquidated.

12.4.4 Regions V refer to fund transfers from other GOCCs.

12.4.5 Regions VII refer to fund transfers from Tourism Promotions Board as a
financial assistance to the region for the One Visayas project.

12.4.6 Regions VIII represents TPB financial assistance for the year 2015 &
PCSO financial assistance for the 2005 & 2006 Best of the Region.

12.5 Due to LGUs

2016 2015
Office/ Region (in Php)
III 375.00 375.00
V 1,295,074.00 1,245,074.00
VI 268.25 268.25
VIII 52,568.47 72,544.75

44
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

2016 2015
Office/ Region (in Php)
XII - 525,000.00
XIII 130,000.00 130,000.00
Total 1,478,285.72 1,973,262.00

12.5.1 Region V refer to the following balances:

Year
Name of LGUs Transfer Particulars Amount
Provincial Government of Albay 2013 Albay-Masbate-Sorsogon 870,000.00
(ALMASOR) Project
Provincial Tourism Office 2013 Balance of Training Registration 74.00
(PTOCAO) Fees
Provincial Government of 2014 Albay-Masbate-Sorsogon 175,000.00
Masbate (ALMASOR) Project
Provincial Government of Albay-Masbate-Sorsogon
Sorsogon 2014 (ALMASOR) Project 150,000.00
City Government of Legazpi
2015 Pastores 2015 3rd Prize 50,000.00
City Government of Legazpi
2016 Pastores 2016 3rd Prize 50,000.00
Total 1,295,074.00

12.5.2 Region VIII represents financial assistance received from the different
LGUs of Easter Visayas for the 2010 Travel Fairs in Cebu and Manila &
2012 Tour Guiding Seminar Registration Fees.

12.5.3 Regions III, VI and XIII refers to fund transfer from different LGUs.

13. Intra-Agency Payables

2016 2015
Accounts
(in Php)
Due to Central Office 13,551,221.04 6,701,567.58
Due to Operating Units 979,000.00 799,500.00
Total 14,530,221.04 7,501,067.58

13.1 Due to Central Office

2016 2015
Office/ Region
(in Php)
I 3,467,532.58 3,467,532.58
II 500,000.00 -
VI - 273,626.54
VIII 100,000.00 619,220.00
IX 421,660.46 879,160.46
XI 4,062,028.00 1,062,028.00
XIII 5,000,000.00 400,000.00
Total 13,551,221.04 6,701,567.58

13.2 The Due from Operating Units amounting to P979,000.00 refers to the balance of
DOT-Region XIII.

45
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

14. Trust Liabilities

2016 2015
Accounts
(in Php)
Trust Liabilities 3,671,028.27 1,524,566.30
Bail Bonds Payable 19,000.00 2,000.00
Guaranty/Security Deposits
Payable 3,728,796.04 3,058,823.10
Total 7,418,824.31 4,585,389.40

14.1 Trust Liabilities

2016 2015
Office/ Region (in Php)
II 300,474.70 100,685.70
VI 3,370,553.57 1,423,880.60
Total 3,671,028.27 1,524,566.30

14.1.1 Regions II and VI represent balances of funds received from other agencies.

14.2 Bail Bonds Payable

2016 2015
Office/ Region (in Php)
CAR 19,000.00 2,000.00
Total 19,000.00 2,000.00

14.2.1 The balance of the account totalling P19,000.00 of CAR represents the
performance bonds posted by various contractors and suppliers to guarantee
their performance or to cover any indemnities that would arise in case of
default in their contracts, if any. After the termination of their contracts, the
amount will be refunded to the contractors upon request.

14.3 Guaranty/Security Deposits Payable

2016 2015
Office/ Region
(in Php)
OSEC 3,656,296.24 2,943,388.48
V 61,099.80 96,434.62
VIII 11,400.00 19,000.00
Total 3,728,796.04 3,058,823.10

14.3.1 The balance amounting to P3,728,796.04 of OSEC, Regions V and VIII

represents collections for issuance of bid documents to various contractors
and suppliers. The said collections are utilized to fund the honoraria of the
bidding committee members.

46
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

15. Other Payables

2016 2015
Office/ Region Current Non-Current Current Non-Current
(in Php)
OSEC 236,743,285.66 - 138,166,629.37 -
NCR 59,862.56 - 59,979.14 -
II 3.00 - 5,487.72 -
IV-A 916.22 - 803.46 -
IV-B 14,710.05 - 3,051.63 -
VI 101,974.93 - 101,974.93 -
VIII 6,000.00 - 67,766.84 -
XI 1,750,823.22 - 10,792,765.21 -
XII 277,221.85 - 68,555.71 -
Total 238,954,797.49 - 149,267,014.01 -

15.1 The DOT has payables to agencies not classified as financial liabilities pertaining to
fund transfer in connection with the implementation of joint tourism related projects
funded by agencies like UNDP, DILG, NZAID, TIEZA, TPB and Office of the
President. It also includes payables due to Globe Telecommunications for personal
calls and share-a-load paid by DOT employees and officials; salary deductions from
officials and employees for DOTEA union dues; National Home Mortgage
Corporation for housing loan; receipted terminal leave and participation fees. Fund
171 Other Payables represent retention fee to R. U. Aquino amounting to
P3,669,290.85.

16. Revenue

2016 2015
Accounts
(in Php)
Registration Plates, Tags &
Stickers Fees - 40,000.00
Processing Fees - 3,700.00
Other Services Income 9,163,500.00 4,049,424.76
Seminar/Training Fees 761,518.50 153,000.00
Dividend Income 954.22 68,358.88
Interest Income 894,545.71 271,911.69
Other Business Income 3,608,780.90 2,110,322.99
Shares from Earnings of GOCCs 170,791,176.38 -
Total 185,220,475.71 6,696,718.32

16.1 Other Service Income

Other Services Income Total

Office/ Region (in Php)
OSEC 9,163,500.00 9,163,500.00
Total 9,163,500.00 9,163,500.00

47
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

16.2 Business Income

Seminar/
Dividend Interest Other Business
Office/ Training Total
Income Income Income
Region Fees
(in Php)
OSEC 193,800.00 954.22 892,442.27 3,608,780.90 4,695,977.39
V 567,718.50 - 2,103.44 - 569,821.94
Total 761,518.50 954.22 894,545.71 3,608,780.90 5,265,799.33

16.3 Shares from Earnings of GOCCs

Office 2016 2015

OSEC 170,791,176.38 -
Total 170,791,176.38 -

17. Personnel Services

17.1 Salaries and Wages

2016 2015
Office/ Region
(in Php)
OSEC 108,976,409.37 93,205,360.22
NCR 8,197,224.68 7,647,964.05
CAR 4,292,282.13 3,548,608.27
I 5,422,730.00 4,952,362.87
II 3,628,273.55 2,515,129.95
III 4,966,939.84 4,103,944.97
IV-A 4,856,845.05 4,492,261.09
IV-B 3,926,318.40 3,316,108.80
V 3,556,017.54 3,080,895.66
VI 4,429,501.72 3,592,166.13
VII 5,093,374.46 4,504,781.81
VIII 3,729,134.68 3,384,874.03
IX 3,901,856.50 3,479,606.18
X 3,269,061.01 3,104,249.07
XI 3,487,453.09 3,404,988.31
XII 3,720,990.16 3,294,851.00
XIII 2,096,676.68 2,685,399.45
Total 177,551,088.86 154,313,551.86

17.2 Other Compensatio

17.1.1 Personnel Economic Relief Allowance (PERA)

2016 2015
Office/ Region
(in Php)
OSEC 5,913,770.52 6,140,217.09
NCR 621,090.90 678,818.18
CAR 264,000.00 262,000.00
I 336,000.00 350,947.37
II 288,000.00 264,000.00
III 309,000.00 299,000.00

48
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

2016 2015
Office/ Region
(in Php)
IV-A 314,173.68 317,870.97
IV-B 239,419.35 212,461.30
V 240,000.00 230,000.00
VI 264,000.00 234,454.55
VII 295,948.61 303,363.63
VIII 240,000.00 240,000.00
IX 262,000.00 252,090.90
X 166,000.00 181,375.00
XI 170,000.00 201,000.00
XII 216,000.00 208,000.00
XIII 134,523.81 183,621.21
Total 10,273,926.87 10,559,220.20

17.1.2 Representation Allowance

Office/ 2016 2015

Region (in Php)
OSEC 2,956,125.00 3,052,250.00
NCR 120,000.00 35,000.00
CAR 108,000.00 89,525.07
I 168,000.00 168,000.00
II 108,000.00 100,976.93
III 168,000.00 140,500.00
IV-A 168,000.00 168,000.00
IV-B 105,750.00 108,000.00
V 108,000.00 108,000.00
VI 108,000.00 108,000.00
VII 212,470.00 166,750.00
VIII 108,000.00 108,000.00
IX 119,242.50 108,000.00
X 107,129.05 108,000.00
XI 159,750.00 168,000.00
XII 108,000.00 108,000.00
XIII 103,500.00 108,000.00
Total 5,035,966.55 4,953,002.00

17.1.3 Transportation Allowance

Office/ 2016 2015

Region (in Php)
OSEC 1,779,125.00 1,811,000.00
NCR 65,750.00 -
CAR - 1,715.00
I 51,944.01 42,744.25
II 15,545.43 -
III 60,000.00 32,500.00
IV-A 60,000.00 60,000.00
IV-B 9,000.00 9,000.00
VI 101,968.00 102,654.00
VII 79,750.00 58,750.00
VIII - 9,000.00
IX - 27,000.00
X 8,129.05 -

49
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Office/ 2016 2015

Region (in Php)
XI 53,272.73 53,056.05
XII 108,000.00 108,000.00
XIII 45,000.00 81,000.00
Total 2,437,484.22 2,396,419.30

17.1.4 Clothing/Uniform Allowance

Office/ 2016 2015

Region (in Php)
OSEC 1,674,268.10 1,885,775.34
NCR 179,000.00 257,500.00
CAR 55,000.00 50,000.00
I 70,000.00 75,000.00
II 60,000.00 55,000.00
III 84,500.00 78,000.00
IV-A 86,000.00 91,000.00
IV-B 50,000.00 40,000.00
V 50,000.00 45,000.00
VI 71,500.00 58,500.00
VII 55,000.00 70,000.00
VIII 50,000.00 50,000.00
IX 55,000.00 55,000.00
X 35,000.00 40,000.00
XI 35,000.00 40,000.00
XII 45,000.00 40,000.00
XIII 30,000.00 40,000.00
Total 2,685,268.10 2,970,775.34

17.1.5 Laundry Allowance

2016 2015
Office
(in Php)
OSEC 1,619,198.11 1,441,399.92
Total 1,619,198.11 1,441,399.92

17.1.6 Quarters Allowance

2016 2015
Office
(in Php)
OSEC 22,745,473.02 23,011,558.52
Total 22,745,473.02 23,011,558.52

17.1.7 Productivity Incentive Allowance

Office/ 2016 2015

Region (in Php)
OSEC 10,891,970.81 598,622.00
NCR - 46,500.00
CAR - 24,000.00
I - 30,000.00
II - 24,000.00
III - 24,000.00

50
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Office/ 2016 2015

Region (in Php)
IV-A 69,000.00 393,297.00
V 20,000.00 18,000.00
VI - 18,000.00
VII - 26,000.00
VIII 20,000.00 20,000.00
IX - 294,351.00
X 35,000.00 16,000.00
XI - 14,000.00
XII - 18,000.00
XIII 25,000.00 16,000.00
Total 11,060,970.81 1,580,770.00

17.1.8 Overseas Allowance

2016 2015
Office (in Php)
OSEC 35,001,513.85 55,103,788.35
Total 35,001,513.85 55,103,788.35

17.1.9 Honoraria

2016 2015
Office (in Php)
OSEC - 109,000.00
Total - 109,000.00

17.1.10 Longevity Pay

Office/ 2016 2015

Region (in Php)
OSEC 200,000.00 -
VIII 5,000.00 15,000.00
XI 15,000.00 -
Total 220,000.00 15,000.00

17.1.11 Overtime and Night Pay

Office/ 2016 2015

Region (in Php)
OSEC 2,682,456.69 155,902.05
NCR 31,218.73 -
IV-A - 8,550.59
Total 2,713,675.42 164,452.64

17.1.12 Year-End Bonus

Office/ 2016 2015

Region (in Php)
OSEC 18,360,870.30 7,845,334.60
NCR 1,448,305.00 607,068.00
CAR 721,604.00 294,104.50

51
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Office/ 2016 2015

Region (in Php)
I 910,480.00 413,790.00
II 602,201.00 209,594.16
III 796,522.00 342,197.00
IV-A 831,850.50 377,877.50
IV-B 326,541.00 268,614.50
V 589,922.00 268,456.00
VI 368,793.00 299,433.50
VII 831,986.00 379,839.50
VIII 620,704.00 280,412.00
IX 664,563.00 289,790.00
X 508,616.00 235,845.00
XI 581,398.00 277,176.00
XII 619,301.00 264,264.00
XIII 406,692.20 219,602.00
Total 29,190,349.00 12,873,398.26

17.1.13 Cash Gift

Office/ 2016 2015

Region (in Php)
OSEC 1,477,375.00 1,496,857.34
NCR 129,000.00 129,000.00
CAR 55,000.00 52,500.00
I 70,000.00 72,500.00
II 60,000.00 55,000.00
III 130,000.00 62,500.00
IV-A 65,000.00 67,500.00
IV-B 50,250.00 42,500.00
V 50,000.00 47,500.00
VI 55,000.00 49,500.00
VII 65,000.00 65,000.00
VIII 50,000.00 50,000.00
IX 55,000.00 53,000.00
X 35,000.00 37,500.00
XI 35,000.00 41,000.00
XII 45,000.00 42,000.00
XIII 29,000.00 42,500.00
Total 2,455,625.00 2,406,357.34

17.1.14 Other Bonuses and Allowances

Office/ 2016 2015

Region (in Php)
OSEC 13,542,746.00 17,620,514.00
NCR 1,111,000.00 1,706,034.00
CAR 330,000.00 789,145.00
I 643,794.05 1,131,174.00
II 365,000.00 673,676.00
III 330,000.00 819,822.00
IV-A - 281,000.00
IV-B 377,579.00 623,790.00
V 280,000.00 705,956.00
VI 330,000.00 738,212.00
VII - 260,000.00

52
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Office/ 2016 2015

Region (in Php)
VIII - 661,912.00
IX 355,000.00 485,000.00
X 200,000.00 385,500.00
XI 185,000.00 655,986.00
XII 270,000.00 679,571.00
XIII 145,000.00 590,450.00
Total 18,465,119.05 28,807,742.00

17.2 Personnel Benefits Contribution

17.2.1 Retirement and Life Insurance Premiums

Office/ 2016 2015

Region (in Php)
OSEC 13,048,600.99 11,258,117.75
NCR 988,704.54 917,316.87
CAR 515,000.94 419,491.13
I 650,727.60 592,359.66
II 426,507.35 277,532.41
III 631,694.47 491,913.81
IV-A 569,364.65 538,478.02
IV-B 471,689.69 398,864.36
V 458,445.24 339,702.88
VI 531,450.92 431,026.33
VII 610,772.04 541,162.21
VIII 409,765.08 441,063.57
IX 475,453.35 411,017.69
X 346,236.48 344,875.92
XI 411,080.04 397,970.40
XII 446,518.82 395,382.12
XIII 244,964.40 321,528.74
Total 21,236,976.60 18,517,803.87

17.2.1.1 The DOT and its employees contribute to the GSIS in

accordance with the Commonwealth Act No. 186. The GSIS
administers plans, including payments of pension benefits to
employees to whom the act applies.

17.2.2 Pag-IBIG Contributions

Office/ 2016 2015

Region (in Php)
OSEC 343,000.00 325,500.00
NCR 31,200.00 34,200.00
CAR 13,200.00 13,000.00
I 16,800.00 17,500.00
II 14,400.00 13,200.00
III 18,709.19 17,211.99
IV-A 16,075.00 16,000.00
IV-B 12,000.00 10,712.50
V 12,003.20 11,600.00
VI 13,200.00 11,700.00

53
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Office/ 2016 2015

Region (in Php)
VII 14,900.00 15,200.00
VIII 11,000.00 13,000.00
IX 13,100.00 12,600.00
X 8,300.00 9,100.00
XI 8,500.00 9,800.00
XII 10,800.00 10,400.00
XIII 6,800.00 9,300.00
Total 563,987.39 550,024.49

17.2.3 PhilHealth Contributions

Office/ 2016 2015

Region (in Php)
OSEC 1,075,911.00 984,875.00
NCR 95,262.00 91,787.50
CAR 44,050.00 39,600.00
I 60,888.75 52,787.50
II 36,750.00 30,450.00
III 48,775.00 43,731.25
IV-A 46,775.00 45,987.50
IV-B 40,050.00 35,012.50
V 34,887.50 31,650.00
VI 45,437.50 38,225.00
VII 49,612.50 46,825.00
VIII 31,900.00 37,700.00
IX 36,712.50 36,075.00
X 25,962.50 29,462.50
XI 31,037.50 33,675.00
XII 36,837.50 34,450.00
XIII 14,600.00 16,462.50
Total 1,755,449.25 1,628,756.25

17.2.4 Employees Compensation Insurance Premiums

Office/ 2016 2015

Region (in Php)
OSEC 467,700.00 364,390.55
NCR 31,100.00 34,200.00
CAR 13,200.00 12,800.00
I 16,792.98 17,457.88
II 14,355.96 37,150.91
III 17,402.33 14,989.17
IV-A 15,739.47 15,957.88
IV-B 12,000.00 10,800.00
V 12,995.55 10,561.39
VI 13,200.00 11,742.16
VII 15,000.00 15,469.10
VIII 11,000.00 12,000.00
IX 14,028.18 12,323.80
X 8,300.00 9,100.00
XI 8,500.00 9,600.00
XII 10,800.00 10,400.00
XIII 6,789.18 9,235.08
Total 688,903.65 608,177.92

54
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

17.3 Other Personnel Benefits

17.3.1 Terminal Leave Benefits

Office/ 2016 2015

Region (in Php)
OSEC 15,810,452.95 3,436,638.54
CAR - 524,514.21
II - 451,121.00
IV-A - 126,383.00
VII 73,483.00 -
X - 815,998.00
XI 344,266.00 -
XII - 95,200.87
Total 16,228,201.95 5,449,855.62

17.3.2 Other Personnel Benefits

Office/ 2016 2015
Region (in Php)
OSEC 2,748,312.85 6,663,271.90
NCR 87,130.30 115,474.91
CAR - 10,000.00
I 10,000.00 15,000.00
II - 97,206.35
III 5,000.00 1,115,259.53
IV-A 366,720.39 350,000.00
IV-B 275,000.00 18,000.00
V - 10,000.00
VI 372,772.00 5,000.00
VII 380,000.00 701,190.00
VIII 300,000.00 28,924.02
IX - 30,785.62
X 6,710.40 268,686.00
XI 113,244.25 5,000.00
XII 10,758.86 45,616.84
XIII - 10,000.00
Total 4,675,649.05 9,489,415.17

18. Maintenance and Other Operating Expenses

18.1 Travelling Expenses

Travel Expenses – Local Travel Expenses - Foreign
Office/
2016 2015 2016 2015
Region
(in Php)
OSEC 6,460,153.80 6,145,603.47 92,131,523.20 85,706,392.64
NCR 101,049.16 106,978.50 567,399.47 445,484.54
CAR 852,029.58 686,272.01 846,483.91 -
I 611,907.20 1,453,783.45 591,525.36 477,580.95
II 1,750,989.28 1,063,684.13 72,876.58 -
III 1,213,884.12 1,371,262.44 28,270.50 -
IV-A 2,562,119.75 2,635,265.72 417,817.36 204,658.63
IV-B 1,884,968.54 1,843,709.08 659,511.51 296,737.94
V 991,970.30 1,037,331.10 - 180,414.16

55
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016
VI 1,745,200.39 1,741,374.53 955,966.55 761,603.63
VII 1,515,465.61 1,987,574.38 342,937.45 370,733.21
VIII 1,035,390.00 1,561,608.35 245,592.90 283,060.59
IX 1,051,757.89 1,230,647.37 184,173.97 225,081.38
X 2,154,430.00 2,187,407.48 - 418,859.97
XI 1,361,622.77 1,024,376.95 483,837.45 560,088.77
XII 1,634,192.57 2,045,849.45 403,525.82 177,578.01
XIII 847,365.29 1,210,180.94 - -
Total 27,774,496.25 29,332,909.35 97,931,442.03 90,108,274.42

18.2 Training Expenses

2016 2015
Office/ Region
(in Php)
OSEC 13,536,381.28 10,047,969.49
NCR 1,538,072.95 1,113,853.67
CAR 3,109,304.35 1,890,041.26
I 1,322,832.32 1,270,008.25
II 1,859,632.46 1,275,253.79
III 2,926,959.96 2,064,611.37
IV-A 2,386,721.46 2,188,979.59
IV-B 1,712,067.69 753,694.25
V 566,278.00 24,500.00
VI 2,003,750.42 1,850,626.09
VII 4,843,881.78 4,820,697.61
VIII 516,472.30 74,843.00
IX 1,252,754.32 1,109,610.08
X 1,077,872.66 1,579,542.88
XI 2,848,878.44 1,680,551.79
XII 1,047,938.60 687,464.27
XIII 592,797.56 408,494.50
Total 43,142,596.55 32,840,741.89

18.3 Supplies and Materials Expenses

Office Supplies Expense Accountable Form Expenses Drugs and Medicines
Office/
2016 2015 2016 2015 2016 2015
Region
(in Php)
OSEC 2,638,460.38 4,870,844.49 4,300.00 - 153,578.18 208,208.72
NCR 478,216.52 365,735.07 246,798.90 - - -
CAR 838,958.00 736,753.87 1,200.00 4,234.89 - -
I 846,785.22 869,829.44 - - - -
II 477,891.11 696,780.87 - - 7,930.00 -
III 404,843.31 257,679.55 - - - -
IV-A 742,010.19 331,718.68 - - - -
IV-B 369,429.20 478,116.69 3,400.00 - - -
V 103,881.19 5,477.25 - - - -
VI 293,580.10 459,485.90 1,560.00 2,919.75 - -
VII 726,583.78 724,296.39 - - 589.50 -
VIII 540,777.05 381,330.82 - - - -
IX 322,455.66 309,724.16 - - - -
X 866,503.58 627,445.20 - - - -
XI 267,209.18 240,370.61 3,000.00 7,160.00 - -
XII 608,697.69 409,539.80 - - - -
XIII 891,095.04 93,697.95 6,620.10 307.49 - -
Total 11,417,377.20 11,858,826.74 266,879.00 14,622.13 162,097.68 208,208.72

56
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

18.4 Other Supplies

Textbooks and
Fuel, Oils & Lubricants Instructional Materials Other Supplies & Materials
Expenses Expenses Expenses
Office/ 2016 2015 2016 2015 2016 2015
Region (in Php)
OSEC 1,374,140.32 2,588,259.86 27,636.00 56,265.00 24,798,663.70 15,977,292.07
NCR 76,949.36 77,898.50 - - 1,744,554.53 2,094,502.23
CAR 127,618.44 109,147.82 - - 860,508.93 444,747.35
I 325,500.31 430,681.04 - - 1,395,972.20 922,255.90
II 236,841.49 174,600.81 - - 1,142,220.38 798,022.15
III 232,770.70 448,807.83 - - 736,618.21 764,606.06
IV-A 142,771.38 409,443.48 - - 1,316,099.84 1,480,979.49
IV-B 37,539.48 63,605.40 - 4,279.75 842,399.79 811,677.75
V 156,608.79 148,216.01 - - 62,332.37 130,257.27
VI 88,986.38 130,532.18 - - 2,545,092.84 2,120,353.58
VII 235,345.16 366,241.87 - - 289,284.25 344,980.50
VIII 148,140.81 347,198.20 - - 667,003.15 695,082.80
IX 65,484.94 107,497.75 - - 745,309.66 505,495.93
X 233,192.54 226,238.40 - - - -
XI 188,149.66 197,158.38 - - 31,000.00 62,494.00
XII 200,467.05 362,052.05 - - 598,976.94 1,436,103.58
XIII 131,460.91 85,427.60 - - 2,393,798.25 718,538.65
Total 4,001,967.72 6,273,007.18 27,636.00 60,544.75 40,169,835.04 29,307,389.31

18.5 Utility Expenses

Water Expenses Electricity Expenses
Office/
2016 2015 2016 2015
Region
(in Php)
OSEC 821,278.47 1,661,962.77 10,060,795.54 10,449,854.60
NCR - - 27,940.51 24,706.38
CAR 44,978.95 34,632.05 104,075.70 132,002.20
I 8,666.00 6,100.00 477,109.39 435,546.33
II 11,938.95 16,318.42 402,744.77 435,171.59
III 13,509.10 19,900.60 111,633.75 145,385.06
IV-A 32,228.70 26,668.64 497,294.17 625,559.64
V 28,939.97 29,263.42 286,592.97 264,048.83
VI 37,920.81 36,045.27 567,765.50 535,694.70
VII 17,721.55 33,040.33 431,738.94 396,730.85
VIII 26,859.28 15,457.76 237,863.36 68,312.38
IX 23,266.34 17,831.14 132,351.01 114,749.56
X 16,273.14 30,819.97 282,094.45 277,353.99
XI 18,290.88 17,051.74 281,290.43 294,661.13
XII 15,674.27 7,180.79 221,155.39 134,471.65
XIII 14,496.80 9,106.01 147,619.35 157,486.02
Total 1,132,043.21 1,961,378.91 14,270,065.23 14,491,734.91

18.6 Communications Expenses

Postage & Courier Telephone Expenses Internet Subscription Cable, Satellite,
Expenses Expenses Telegraph and Radio
Office/
Expenses
Regions
2016 2015 2016 2015 2016 2015 2016 2015
(in Php)
OSEC 3,607,271.57 5,764,136.59 8,186,994.93 10,703,890.28 732,803.63 5,492,237.76 207,295.13 198,484.25

57
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016
Postage & Courier Telephone Expenses Internet Subscription Cable, Satellite,
Office/
Expenses Expenses Telegraph and Radio
Regions
Expenses
NCR 7,138.00 - 384,133.45 301,051.50 - 365.40 - -
CAR 10,566.28 8,412.00 340,914.02 398,101.36 111,306.76 115,280.98 5,720.00 8,576.68
I 88,322.26 74,090.00 351,129.49 422,287.21 176,901.03 97,032.25 - -
II 8,920.00 12,831.00 161,747.41 141,381.14 97,224.12 85,750.00 - 100.00
III - 2,443.66 158,369.80 199,781.15 13,430.66 25,203.63 - -
IV-A 7,550.40 4,925.00 408,157.31 638,541.41 76,953.09 326,609.01 - 27,000.00
IV-B 35,244.06 36,493.76 362,985.66 352,519.30 209.00 101.00 - -
V 66,741.82 87,780.40 126,696.59 135,961.14 32,270.00 67,190.89 - -
VI 57,508.20 54,236.01 245,042.60 339,669.78 47,026.93 29,091.42 8,760.00 9,490.00
VII 50,572.51 33,324.14 576,925.43 484,639.53 173,333.35 156,448.96 - -
VIII 12,785.00 24,990.00 175,918.55 172,207.16 - 13,403.85 - -
IX 120,660.00 94,739.53 110,260.96 108,164.18 8,593.25 26,304.42 8,410.00 9,732.59
X 63,460.00 45,938.84 259,097.07 296,358.69 103,288.85 71,181.71 9,000.02 9,580.66
XI 97,898.28 210,504.57 218,085.87 278,512.65 38,959.25 48,588.03 - -
XII 86,850.00 3,200.00 315,067.34 261,882.40 12,009.48 11,034.82 - -
XIII 93,038.00 138,192.50 113,763.24 150,872.29 77,085.00 53,760.00 540.00 3,170.41
Total 4,414,526.38 6,596,238.00 12,495,289.72 15,385,821.17 1,701,394.4 6,619,584.13 239,725.15 266,134.59

18.7 Awards/Rewards, Prizes Expense

Awards/Rewards Expense Prizes
Office/
2016 2015 2016 2015
Region
(in Php)
OSEC - 16,500.00 - 88,300.00
Total - 16,500.00 - 88,300.00

18.8 Extraordinary & Miscellaneous Expenses

Extraordinary & Miscellaneous Expenses

Office/
Region 2016 2015
(in Php)
OSEC 3,306,940.21 2,862,470.43
NCR 117,600.00 71,642.91
CAR 109,141.51 95,098.30
I 142,545.79 212,544.36
II 103,990.11 116,960.20
III 96,000.00 96,000.00
IV-A 69,010.00 60,000.00
IV-B 118,000.00 112,265.99
V 108,000.00 108,000.00
VI 118,000.00 118,000.00
VII 118,000.00 118,000.00
VIII 86,439.31 76,474.23
IX 103,687.50 121,798.54
X 139,430.86 143,674.35
XI 117,600.00 118,000.00
XII 136,945.70 164,551.70
XIII 111,239.43 117,600.00
Total 5,102,570.42 4,713,081.01

58
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

18.9 Professional Services

Office/ Legal Expenses Auditing Expenses Consultancy Expenses Other Professional Expenses
Regions 2016 2015 2016 2015 2016 2015 2016 2015
(in Php)
OSEC 167,626.12 62,348.83 159,699.34 723,952.90 1,209,014.47 106,088,939.47 165,813,640.06 220,362,518.07
NCR - - 14,443.14 - - - 7,330,464.80 6,439,294.59
CAR - - 4,110.00 52,408.60 - 160,000.00 2,598,469.54 2,477,078.58
I 7,200.00 9,400.00 70,462.37 77,735.39 - - 2,206,792.92 2,485,296.57
II 4,000.00 20,725.00 - - - - 642,691.93 882,213.50
III - 35,330.00 - - - - 1,500,838.81 919,545.21
IV-A 6,800.00 12,250.00 17,869.00 - 255,000.00 75,000.00 1,134,043.77 785,071.12
IV-B - 3,900.00 - - - - 1,740,602.50 993,279.33
V - - - - - - 3,555,340.59 3,333,691.35
VI - - - - - - 3,985,431.20 4,158,899.81
VII 16,200.00 8,400.00 746.00 - - - 3,617,127.56 3,345,158.19
VIII - 5,384.11 - - - - 2,582,827.03 2,306,028.05
IX 1,700.00 2,300.00 - 11,747.00 - - 1,229,454.59 1,313,458.08
X - - - - - - - -
XI 30,400.00 28,500.00 - - - - 1,830,281.00 1,495,288.48
XII - - - - - - 1,639,355.06 1,578,375.92
XIII 2,900.00 1,400.00 - 4,551.28 - - 1,111,651.66 790,985.92
Total 236,826.12 189,937.94 267,329.85 870,395.17 1,464,014.47 106,323,939.47 202,519,013.02 253,666,182.77

18.10 General Services

Janitorial Services Security Services Other General Services
Office/
2016 2015 2016 2015 2016 2015
Region
(in Php)
OSEC 6,673,188.89 5,454,964.06 7,823,778.19 7,566,644.15 210.00 52,976.02
NCR - - - - 46,954.00 39,326.00
CAR 122,506.24 148,234.35 483,916.71 483,289.30 - -
I - - - - 1,531.00 136,176.00
II - - 391,435.00 283,200.00 800.00 52,542.68
III - - 127,921.88 512,000.44 - -
IV-A 132,407.65 123,315.10 762,173.64 817,536.87 - -
V - - 461,157.36 323,247.24 - -
VI - - 443,520.00 497,616.00 - -
VII 124,368.68 122,202.45 172,051.76 167,291.53 12,183.70 -
VIII 111,305.63 114,342.15 641,586.34 506,795.10 - -
IX - - 332,971.50 461,330.11 27,210.00 5,691.42
X 122,243.00 42,417.00 399,168.00 399,168.00 1,403,493.22 1,527,633.07
XI - - - - 1,187,349.45 1,256,594.84
XII 126,572.36 79,129.34 156,890.82 108,449.25 117,275.00 -
XIII - - 115,837.00 139,004.40 500.00 26,100.00
Total 7,412,592.45 6,084,604.45 12,312,408.20 12,265,572.39 2,797,506.37 3,097,040.03

18.11 Repairs and Maintenance

Repairs and Maintenance - Repairs and Maintenance - Repairs and Maintenance -
Office/ Building and Other Structures Machinery and Equipment Transportation Equipment
Region 2016 2015 2016 2015 2016 2015
(in Php)
OSEC 102,122.70 2,883,676.02 1,072,162.67 4,922,662.41 1,264,774.67 1,468,706.87
NCR - - 10,000.00 - 82,153.55 36,235.70
CAR 4,188.25 - 4,045.00 34,705.00 47,549.99 79,728.83
I - - 25,200.00 66,530.37 220,557.11 270,012.05
II 46,725.00 - 23,438.00 - 74,850.00 178,113.14

59
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Repairs and Maintenance - Repairs and Maintenance - Repairs and Maintenance -

Office/ Building and Other Structures Machinery and Equipment Transportation Equipment
Region 2016 2015 2016 2015 2016 2015
(in Php)
III - - 81,421.38 42,285.00 140,320.00 157,577.67
IV-A 4,909.40 16,000.00 64,228.00 10,136.00 121,575.07 351,702.81
IV-B - - - - 187,950.32 80,464.50
V 18,965.25 245,555.11 62,920.00 69,673.00 41,935.29 72,379.26
VI - 66,020.00 28,935.27 149,241.18 130,582.37 84,957.12
VII - - 92,859.00 65,204.35 207,991.98 434,931.60
VIII 2,662.00 - 33,224.00 - 110,955.00 555,257.96
IX - - 13,860.00 8,323.00 25,819.92 12,604.68
X - - 13,652.00 17,060.00 178,398.81 112,603.25
XI - - 8,645.00 18,270.00 238,386.69 207,169.97
XII - - 23,252.55 30,520.00 170,881.60 253,899.36
XIII 111,741.40 - 1,350.00 61,822.00 248,290.35 271,172.20
Total 291,314.00 3,211,251.13 1,559,192.87 5,496,432.31 3,492,972.72 4,627,516.97

Repairs and Maintenance - Repairs and Maintenance - Repairs and Maintenance - Other
Office/ Furniture & Fixtures Leased Assets PPE
Region 2016 2015 2016 2015 2016 2015
(in Php)
OSEC 11,695.25 23,119.38 - - 42,239.82 375,484.59
II - 20,317.00 - - - -
IV-A 25,217.50 18,999.75 - - - -
VI 95,740.02 15,150.00 8,996.00 8,926.70 - -
VII 38,569.75 15,815.00 - - - -
VIII 108,195.00 - - - - 19,300.00
IX - 37,111.00 - 20,000.00 - -
X 23,600.00 780.00 - - - -
XIII - 5,000.00 - - - -
Total 303,017.52 136,292.13 8,996.00 28,926.70 42,239.82 394,784.59

18.12 Taxes, Insurance and Licenses

Taxes, Duties and Licenses Fidelity Bond Premiums Insurance Expenses
Office/
2016 2015 2016 2015 2016 2015
Region
(in Php)
OSEC 814,655.62 602,342.44 1,190,025.29 554,196.36 1,113,116.56 841,307.09
NCR 4,919.06 6,918.12 26,625.00 20,250.00 10,650.70 14,822.90
CAR 2,629.06 2,979.06 32,625.00 21,750.00 10,957.94 22,750.51
I 2,229.06 - 22,521.00 17,702.25 11,617.43 22,811.83
II 2,229.06 - 25,968.00 - 3,604.91 5,762.68
III 2,629.06 11,794.67 18,000.00 33,000.00 17,432.47 11,986.54
IV-A - 7,153.12 97,500.00 97,500.00 22,298.22 8,052.58
IV-B 6,079.53 11,964.55 60,000.00 50,250.00 - 3,157.95
V 2,269.06 - 6,750.00 6,750.00 136,821.91 15,709.26
VI 5,378.62 6,448.12 11,726.25 8,913.75 46,787.23 55,656.26
VII - - 14,625.00 22,000.00 14,482.06 16,804.45
VIII 5,074.09 6,738.12 41,039.25 44,039.25 7,701.11 8,637.09
IX 3,630.62 5,815.62 32,773.03 28,348.50 6,881.04 7,740.94
X - - 18,057.70 16,500.00 - 18,057.70
XI - - 20,587.50 22,125.00 17,663.22 20,390.74
XII 2,429.06 11,854.34 8,550.00 8,550.00 13,975.48 5,253.94
XIII 100.00 3,469.06 7,642.50 6,583.50 8,259.19 6,633.27
Total 854,251.90 677,477.22 1,635,015.52 958,458.61 1,442,249.47 1,085,535.73

60
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

18.13 Other Maintenance and Operating Expenses

Advertising Expenses Printing and Publication Expenses

Office/ Region 2016 2015 2016 2015
(in Php)
OSEC 206,995,216.92 191,646,352.27 4,785,775.09 14,251,671.44
NCR 1,465.00 666,750.00 - 31,250.00
CAR 389,872.12 242,267.00 313,060.00 320,800.00
I 615,647.78 525,892.90 14,446.71 47,995.79
II 487,294.20 605,489.45 - 89,700.00
III 3,150,286.27 3,758,108.85 502,267.01 1,493,397.58
IV-A 2,457,119.10 1,349,092.82 62,000.00 -
IV-B 46,200.00 771,726.50 169,207.80 35,050.00
V 310,358.80 400,935.81 15,044.70 41,692.44
VI 3,011,970.84 2,046,293.06 686,980.40 337,169.00
VII 3,807,944.21 4,951,680.07 548,851.32 561,310.69
VIII 69,440.00 85,880.00 321,002.30 365,887.71
IX 433,793.00 233,961.25 94,056.00 277,665.54
X 388,407.00 257,675.60 36,000.00 -
XI 899,569.20 1,357,396.51 67,661.12 352,399.50
XII 488,038.40 90,720.00 - -
XIII 916,485.21 471,238.48 151,484.00 49,072.67
Total 224,469,108.05 209,461,460.57 7,767,836.45 18,255,062.36

Transportation and Delivery

Representation Expenses Rent/Lease Expenses
Office/ Expenses
Region 2016 2015 2016 2015 2016 2015
(in Php)
OSEC 44,087,560.47 65,293,799.91 2,083,286.36 3,001,869.91 129,501,797.41 122,687,213.87
NCR 909,235.20 1,411,985.52 - - 431,200.00 431,366.70
CAR 2,805,841.70 1,306,583.61 - - 1,854,665.83 2,052,040.00
I 4,326,643.20 4,212,347.24 - - 3,545,416.38 3,770,757.36
II 1,343,097.87 1,075,363.64 - - 688,244.00 566,304.00
III 462,330.89 924,561.07 - - 1,718,465.36 574,473.00
IV-A 2,651,405.38 2,309,508.76 - 710.00 2,356,823.14 2,617,327.27
IV-B 3,981,201.62 3,264,452.19 - - 1,794,737.10 854,399.50
V 2,960,869.90 4,093,188.85 59,796.92 68,645.95 913,179.60 1,257,931.85
VI 2,793,115.46 5,074,023.54 83,623.32 47,060.66 1,456,415.15 1,536,680.35
VII 4,191,221.22 2,231,664.77 194,264.31 107,135.43 3,155,165.34 2,460,060.26
VIII 3,644,583.07 3,079,240.29 96,104.25 159,932.95 1,535,800.00 1,485,700.00
IX 2,049,965.94 1,219,850.17 30,281.66 40,471.25 1,601,183.36 1,563,106.39
X 1,337,500.86 1,369,639.42 - - 1,283,031.36 1,315,283.23
XI 5,443,101.43 2,374,625.20 - 9,802.00 2,407,400.42 2,142,747.83
XII 2,765,131.28 1,843,370.57 196,289.77 157,540.08 1,624,187.88 1,449,899.35
XIII 3,155,338.92 919,838.77 10,576.00 33,671.67 966,151.16 748,449.00
Total 88,908,144.41 102,004,043.52 2,754,222.59 3,626,839.90 156,833,863.49 147,513,739.96

Membership Dues and

Contributions to Subscription Expenses Donations Other MOOE
Office/
Organization
Region
2016 2015 2016 2015 2016 2015 2016 2015
(in Php)
OSEC 3,635,190.11 3,345,431.44 592,805.34 467,537.52 49,439.25 1,367,963.31 168,436.60 191,637.12
NCR - - - - 130,665.55 131,809.76 - -
CAR - 700.00 42,405.00 41,411.00 - - 18,600.00 -
I - - - - 6,000.00 - - -
II 68,500.00 16,500.00 29,860.00 60,300.00 - - - -

61
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

Membership Dues and

Contributions to Subscription Expenses Donations Other MOOE
Office/
Organization
Region
2016 2015 2016 2015 2016 2015 2016 2015
(in Php)
III - - 52,905.00 - 1,079,000.00 575,311.00 - -
IV-A - - 9,258.00 9,158.00 5,000.00 5,600.00 - -
IV-B - - - - - 184,500.00 48,873.14 -
V 1,000.00 - 11,484.00 11,308.00 2,500.00 15,400.00 - -
VI - - 31,758.00 30,520.00 1,272,434.28 1,172,479.00 146,360.73 9,264.80
VII - - 14,700.00 12,208.00 1,495,000.00 1,015,000.00 - -
VIII 2,750.00 - - - - - - -
IX - 17,080.00 13,920.00 - 3,500.00 - 50.00 -
X 5,000.00 7,000.00 17,724.00 41,344.00 - - - -
XI - - 14,884.00 19,630.00 - - - -
XII - - - 39,572.00 - - - -
XIII 10,000.00 10,000.00 12,131.00 9,076.00 - 3,000.00 - -
Total 3,722,440.11 3,396,711.44 843,834.34 742,064.52 4,043,539.08 4,471,063.07 382,320.47 200,901.92

19. Financial Expenses

Bank Charges Other Financial Charges

Office/
2016 2015 2016 2015
Region
(in Php)
OSEC 1,907,220.13 2,172,273.84 23,760.00 340,846.66
CAR 1,792.25 200.00 100.00
I 240.00 - - -
IV-A 1,153.01 1,250.00 - -
IX - 1,300.00 - -
XII - 1,550.00 - -
Total 1,910,405.39 2,176,573.84 23,860.00 340,846.66

20. Non-Cash Expenses

Depreciation
Office/ Region 2016 2015
(in Php)
OSEC 14,536,860.34 14,478,586.62
NCR 512,329.02 498,588.95
CAR 410,299.70 458,253.92
I 611,559.58 684,643.82
II 513,535.13 459,109.34
III 1,667,301.03 843,348.68
IV-A 1,158,746.55 2,052,003.10
IV-B 37,124.26 84,815.98
V 607,509.48 607,509.48
VI 567,346.61 258,337.01
VII 91,939.61 162,578.78
VIII 346,584.00 346,584.00
IX 344,972.34 285,411.50
X 347,667.40 370,934.11
XI 282,478.36 398,604.90
XII 330,590.00 390,778.49
XIII 82,645.52 7,184.37
Total 22,449,488.93 22,387,273.05

62
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

21. Net Financial Assistance/Subsidy

OSEC Regional Offices Total

Particulars (in Php)
NCA Received from DBM 3,097,331,541.00 566,190,581.00 3,663,522,122.00
NTA Received from Regional
Office - 3,000,000.00 3,000,000.00
Tax Remittance advice (TRA)
issued to BIR 46,320,689.50 22,114,280.77 68,434,970.27
Total 3,143,652,230.50 591,304,861.77 3,734,957,092.27

Less: Refund of Cash Advances 4,416,867.03 837,215.13 5,254,082.16

Other Receipts & Adjustments - 189,128.61 189,128.61
NTA to Central Office/ Regional
Offices 3,000,000.00 3,000,000.00
Lapsed NCA/NTA 1,389,546,848.56 124,973,094.10 1,514,519,942.66
Subsidy from National
Government 1,749,688,514.91 462,305,423.93 2,211,993,938.84
Subsidy from Central Office - 58,209,022.83 58,209,022.83
Less: Lapsed NCA – Subsidy
from Central Office - 2,657,099.82 2,657,099.82
Returned NTA – Subsidy from
Central Office - 200,000.00 200,000.00
Total Financial Assistance
from NGAs/LGUs/GOCCs 1,749,688,514.91 517,657,346.94 2,267,345,861.85

Less: Financial Assistance/Subsidy to NGAs, LGUs, GOCCs, NGOs/Pos

OSEC Regional Total
Particulars Offices
(in Php)
Financial Assistance to NGAs 95,000.00 5,000.00 100,000.00
Financial Assistance to LGUs - 3,864,400.02 3,864,400.02
Budgetary Support to GOCCs 294,238,414.38 - 294,238,414.38
Financial Assistance to
NGOs/Pos 1,801,694.37 323,401.00 2,125,095.37
Subsidy to Regional Offices 57,759,022.83 - 57,759,022.83
Subsidies – Others - 39,922,938.49 39,922,938.49
Total Financial Assistance to
NGAs/LGUs/GOCCs 353,894,131.58 44,115,739.51 398,009,871.09
Net Financial Assistance/
Subsidy 1,395,794,383.33 473,541,607.43 1,869,335,990.76

21.1 The difference in Lapsed NCA per Cash Flow Statement and Schedule in the Notes to
Financial Statement represents the unrecorded 4th Quarter 2015 lapse NCA of DOT-
Regions IV-A and III.

22. Gain

Account 2016 2015

(in Php)
Gain on Foreign Exchange 11,606,188.87 -
Other Gains 699.70 -
,Miscellaneous Income 85.17 -
Total 11,606,973.74 -

63
 Department of Tourism
Notes to Financial Statements
For the year ended December 31, 2016

23. Losses
Account 2016 2015
(in Php)
Loss on Foreign Exchange 7,683.10 91,400.47
Loss on Sale of Assets - 121,042.79
Total 7,683.10 212,443.26

24. Key Management Personnel Compensation

Particulars OSEC Regional Offices Total

(in Php)
Salaries and Wages 8,346,758.79 14,884,439.55 23,231,198.34
Other Compensation 3,371,908.93 4,270,028.08 7,641,937.01
Personnel Benefit Contributions 909,470.02 2,004,286.19 2,913,756.21
Other Personnel Benefits 2,543,799.40 240,888.56 2,784,687.96
Total 15,171,937.14 21,399,642.38 36,571,579.52

24.3. Key Management Personnel

The Key Management Personnel of the DOT are the Head of the DOT, the
members of the governing body, and the members of the senior management group.
The governing body consists of members appointed by President Benigno C.
Aquino III (January-June 2016) and President Rodrigo R. Duterte (July-December
2016). The senior management group consists of the DOT Secretary,
Undersecretaries, Assistant Secretaries and Regional Directors.

The Secretary of Tourism who has supervision over DOT-TLA, PCSSD and
Regional Offices is not remunerated by Agency.

25. Allotment, Obligations and Balances

25.1 Allotments received during the year including those carried forward to CY 2015
totalled P3,199,383,044.05 with obligations incurred of P2,868,631,249.83.

25.2 The table on the below shows the breakdown of allotments, obligations and
balances as at December 31, 2016.
Allotment (in Php) Unexpended Balance (in Php)
Category Obligations
Extended Current Total Total Reverted Extended
PS - 383,627,650.00 383,627,650.00 380,010,359.83 3,617,290.17 3,617,290.17 -
MOOE 164,604,170.14 2,645,283,000.00 2,809,887,170.14 2,485,067,658.31 324,819,511.83 47,225,461.78 277,594,050.05
FE 16,223.91 1,522,000.00 1,538,223.91 1,501,383.69 36,840.22 14,738.91 22,101.31
CO 180,000.00 4,150,000.00 4,330,000.00 2,051,848.00 2,278,152.00 33,952.00 2,244,200.00
Total 164,800,394.05 3,034,582,650.00 3,199,383,044.05 2,868,631,249.83 330,751,794.22 50,891,442.86 279,860,351.36

25.3. The total obligations of P2,868,631,249.83 consist of P1,956,488,543.56 paid

during the year, P27,093,805.71 Accounts Payable, and P885,048,900.56 valid
commitments.

64