ALDERSGATE COLLEGE, INC.

Solano, Nueva Vizcaya

School of Business, Management and Accountancy
RAMIRO, LORREN GRAZE I.
BSA-3A (NEW)
Accounting for Government and Non-profit
March 12, 2021

I. FINANCIAL STATEMENTS
COMMISSION ON HIGHER EDUCATION
STATEMENT OF FINANCIAL POSITION
ALL FUNDS
As of December 31, 2020

Note 2020 2019

ASSETS

Current Assets
Cash and Cash Equivalent 7 8,921,353,159.75 7,312,724,787.71
Receivables 8 8,590,937,999.08 6,924,116,794.08
Inventories 9 8,111,129.12 6,929,218.97
Investments 10 363,933,931.17 361,407,180.94
Other Assets 11 22,217,930.10 53,802,999.45
Total Current Assets 17,906,554,149.22 14,658,980,981.15

Non-Current Assets
Property, Plant and Equipment 12 588,079,096.34 553,557,069.68
Total Non-Current Assets 588,079,096.34 553,557,069.68

TOTAL ASSETS 18,494,633,245.56 15,212,538,050.83

LIABILITIES AND NET ASSETS/EQUITY

LIABILITIES
Current Liabilities
Financial Liabilities
Payables 13 1,346,224,247.85 529,121,510.68
Inter-Agency Payables 14 2,975,108,154.87 3,300,327,358.13
Intra-Agency Payables 15 24,081,770.22 2,412,636.12
Other Payables 16 107,963,054.94 139,974,896.72
Total Current Liabilities 4,453,377,227.88 3,971,836,401.65

Non-Current Liabilites
Deferred Credits/Unearned Income 17 24,739,254.76 25,148,718.37
Total Non-Current Liabilities 24,739,254.76 25,148,718.37
TOTAL LIABILITIES 4,478,116,482.64 3,996,985,120.02

NET ASSETS/EQUITY
Equity 14,016,516,762.92 11,215,552,930.81
Accumulated Surplus/(Deficit) 14,016,516,762.92 11,215,552,930.81
TOTAL LIABILITIES AND NET 18,494,633,245.56 15,212,538,050.83
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ALDERSGATE COLLEGE, INC.
Solano, Nueva Vizcaya
School of Business, Management and Accountancy
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 ALDERSGATE COLLEGE, INC.
Solano, Nueva Vizcaya
School of Business, Management and Accountancy

COMMISSION ON HIGHER EDUCATION

STATEMENT OF FINANCIAL PERFORMANCE
ALL FUNDS
For the Year Ended December 31, 2020

Note 2020 2019

Revenue

Service and Business Income 18 53,333,134.70 326,292.19

Shares, Grants and Donations 19 2,246,460,100.00 2,141,588,272.74
Gains 24 49,264,861.13 22,321,825.18
Total Revenue 2,349,058,095.83 2,164,236,390.11

Less: Current Operating Expenses

Personnel Services 20 308,062,014.21 287,117,541.92

Maintenance and Other Operating Expenses 21 3,215,469,528.19 2,344,865,364.34
Financial Expenses - -
Non-Cash Expenses 22 23,438,908.03 18,362,396.13
Total Current Operating Expenses 3,546,970,450.43 2,650,345,302.39

Surplus (Deficit) from Current Operations (1,197,912,354.60) (486,108,912.28)

Net Financial Assistance/Subsidy 23 5,608,205,574.65 3,526,819,198.48

Less: Losses - -

Surplus (Deficit) for the period 4,410,293,220.05 3,040,710,286.20

 ALDERSGATE COLLEGE, INC.
Solano, Nueva Vizcaya
School of Business, Management and Accountancy

COMMISSION ON HIGHER EDUCATION

STATEMENT OF CASH FLOWS
ALL FUNDS
For the Year Ended December 31, 2020

Note 2020 2019

Cash Flows from Operating Activites
Cash Inflows
Receipt of Notice of Cash Allocation (NCA) 23 10,225,381,654.15 12,059,039,368.57
Collection of Income/Revenues 2,345,126,102.79 6,786,308,113.29
Collection of Receivables 13,880,334.65 7,780,832.85
Receipt of Inter-Agency Fund Transfers 198,838,056.99 84,924,638.43
Receipt of Intra-Agency Fund Transfers 3,737,681.87 3,133,976.26
Trust Receipts 1,062,889.44 398,200.00
Other Receipts 2,050,877.20 621,287.21
Adjustments 28 960,815,505.58 363,652,576.31
Total Cash Inflows 13,750,893,102.67 19,305,858,992.92

Cash Outflows
Remittance to National Treasury 23 105,086,869.52 265,943,179.62
Payment of Expenses 3,846,046,398.98 2,306,256,283.21
Payment of Inventories 4,929,249.37 6,843,102.06
Grant of Cash Advances 11,245,553.73 -
Payment of Accounts Payables 578,656,617.09 169,344,974.53
Remittance of Personnel Benefit Contributions and
Mandatory Deductions 33,246,788.06 17,825,923.96
Release of Inter-Agency Fund Transfers 2,698,848,346.30 1,262,929,067.67
Release of Intra-Agency Fund Transfers 3,197,034,434.40 3,679,716,512.59
Reversal of Unutilized NCA 23 1,392,929,126.81 4,575,502,906.69
Other Disbursements 24,530,336.60 2,389,811.37
Adjustments 28 203,225,358.40 119,309,040.15
Total Cash Outflows 12,095,779,079.26 12,406,060,801.85
Net Cash Provided by (Used in) Operating Activities 1,655,114,023.41 6,899,798,191.07
Cash Flows from Investing Activities
Cash Outflows
Purchase/Construction of Property, Plant and 46,485,651.37 32,481,145.36
Equipment
Total Cash Outflows 46,485,651.37 32,481,145.36

Net Cash Provided by (Used in) Investing Activities (46,485,651.37) (32,481,145.36)

Increase (Decrease) in Cash and Cash Equivalents 1,608,628,372.04 6,867,317,045.71

Cash and Cash Equivalents, January 1, 2015 7,312,724,787.71 445,407,742.00

Cash and Cash Equivalents, December 31, 2015 8,921,353,159.75 7,312,724,787.71

 ALDERSGATE COLLEGE, INC.
Solano, Nueva Vizcaya
School of Business, Management and Accountancy

COMMISSION ON HIGHER EDUCATION

STATEMENT OF CHANGES IN NET ASSETS/EQUITY
ALL FUNDS
As of December 31, 2020

Note 2020 2019

Balance at January 1 11,215,552,930.81 8,174,842,644.61

Prior Period Adjustments 26 (1,549,197,763.50) -
Restated Balance 9,666,355,167.31 8,174,842,644.61

Changes in Net Assets/Equity for the Calendar Year

Adjustment of net revenue recognized directly in
Net Assets/Equity 27 (60,131,624.44) -
Surplus/(Deficit) for the Period 4,410,293,220.05 3,040,710,286.20
Total recognized revenue and expense for the
period 4,350,161,595.61 3,040,710,286.20

Balance at December 31 14,016,516,762.92 11,215,552,930.81

 ALDERSGATE COLLEGE, INC.
Solano, Nueva Vizcaya
School of Business, Management and
Accountancy

COMMISSION ON HIGHER EDUCATION

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL
AMOUNT ALL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2020

Budgeted Amount Actual Amounts on Difference Final

Particulars
Original Final Comparable Basis Budget and Actual

RECEIPTS
Services and Business Income 14,002,554.16 16,641,454.16 65,669,874.69 (49,028,420.53)
Gains -
Other Non-Operating Income 1,229,600.00 1,229,600.00 932,570.41 297,029.59
Other Non-Operating Receipts -
Total Receipts 15,232,154.16 17,871,054.16 66,602,445.10 (48,731,390.94)

PAYMENTS
Personnel Services 264,445,743.00 315,392,570.00 303,963,823.02 11,428,746.98
Maintenance and Other
Operating Expenses 2,135,286,000.00 5,477,681,850.78 2,538,898,975.96 2,938,782,874.82
Capital Outlay - 518,032,655.62 246,823,613.64 271,209,041.98
Financial Expenses -
Other Disbursements -
Total Payments 2,399,731,743.00 6,311,107,076.40 3,089,686,412.62 3,221,420,663.78

NET RECEIPTS/PAYMENTS (2,384,499,588.84) (6,293,236,022.24) (3,023,083,967.52)

(3,270,152,054.72)
 ALDERSGATE COLLEGE, INC.
Solano, Nueva Vizcaya
School of Business, Management and
Accountancy

II. NARRATIVE OBSERVATION

The Commission on Higher Education (CHED) was created on May 18, 1994 through the
passage of Republic Act (RA) No. 7722, the Higher Education Act of 1994. CHED is attached to
the Office of the President for administrative purposes. It covers both public and private higher
educational institutions as well as their degree granting programs in all post-secondary
educational institutions. Pursuant to RA No. 7722, it is mandated to undertake the following
tasks: 1) promote quality education; 2) broaden access to higher education; 3) protect academic
freedom for continuing intellectual growth; and 4) ensure advancement of learning and research.

For FY 2020, CHED had a budget of P40. 78 billion, which is 22.22% lower than its
current budget of P52.44 billion, as provided in the General Appropriations Act (GAA) for
Fiscal Year (FY) 2020 or the RA No. 11465.

Based on CHED’s Statement of Financial Position, total assets significantly increased in

2020, compared to 2019. During the year 2020, Cash and Cash equivalents yielded to an increase
by more than a billion, hence; represented 48.24% of 2020’s total assets. Receivables as well
skyrocketed to 8,590,937,999 compared to last year’s 6.9 billion which could be deduced that a
huge amount of inter-agency, intra-agency and loans receivables were pending for collection.
Meanwhile, inventories also showed an increase which could be a result of piled-up textbooks,
instructional materials, construction materials and office materials not yet delivered to whatever
purpose they deemed to serve. Might-as-well, an increase in investments was observed due to the
continuing implementation of the Commission’s Study Now, Pay Later scheme while; Other
Assets was the only account which showed a decreasing figure due to the prepayments’ decrease
as well, while consumed. Non-current assets, specifically, PPE increased big-time too since
additional machineries and equipment for further operations had been acquired.

On another note, CHED’s total liabilities also increased by 482 million or 12 percent.
Total liabilities was composed of: 4,453,377,227.88 Current Liabilities, 24% of Total Assets,
and 24,739,254.76 Non-current Liabilities, 0.13% of Total Assets. Such figures were due to
significant increase on inter-agency and intra-agency’s payables; primarily, unpaid scholarship
grants, amount due to officers and employees, unclaimed checks in the Regional Offices, etc.
Thus, accumulated surplus pulled up with a figure of 14 billion, totaling to 18,494,633,245.56
total liabilities and net equity, balanced with 18,494,633,245.56 Total Assets.

For FY 2020, total revenues of CHED amounted to 2.35 billion, posting an increment of
8.55 percent from FY 2019 of 2.16 billion. Total current operating expenses amounting to 3.55
 ALDERSGATE COLLEGE, INC.
Solano, Nueva Vizcaya
School of Business, Management and
Accountancy
billion increased by 33.81 percent compared to previous year’s 2.65 billion; resulting in a deficit
from current operations of 1.198 billion. A net surplus of 4.410 billion was realized after adding
the positive Net Financial Assistance/Subsidy of 5.608 billion. This surplus is higher by 1.369
billion or 45 percent more than the FY 2019 balance of 3.040 billion.

On the other hand, net cash provided by operating activities and net cash used in
financing activities in FY 2020 amounted to 1.655 billion and 46.486 million, respectively;
resulting in a net increase in cash and cash equivalents of 1.609 billion. After adding the
beginning balance of 7.313 billion, the cash and cash equivalents of CHED at the end of the FY
2020 amounted to 8.921 billion.

Moreover, the restated positive balance of the net assets/equity on January 1, 2020
amounted to 11.216 billion. After adding the surplus for the period of 4.410 billion and
deducting the adjustment of net revenue recognized directly in net assets/equity of 60.132
million and prior period adjustments of 1.549 billion, the net assets/equity as of December 31,
2020 resulted in a positive balance of 14.017 billion.

For FY 2020, the final budgeted receipts of 17.871 million increased by 2.639 million
compared to the original budgeted receipts of 15.232 million. In the same way, actual receipts of
66.602 million were higher by 48.731 million than the final budgeted receipts.

The final budgeted payments of 6.311 billion increased by 3.911 billion from the original
budgeted payments of 2.400 billion. Actual payments of 3.090 billion were significantly lower
by 3.221 billion.