OFFICE OF THE VICE PRESIDENT

NOTES TO FINANCIAL STATEMENTS

For the year ended December 31, 2020

1. General Information/Agency Profile

The financial statements of Office of the Vice President (OVP) were authorized for
issue on May 6, 2021 as shown in the Statement of Management’s Responsibility for
Financial Statements signed by Assistant Secretary Atty. Sofia C. Yanto-Abad, the
Assistant Chief of Staff.

OVP is a national government agency established under Section 3 of Article VII of the
1987 Constitution of the Republic of the Philippines and later reorganized on July 24,
1987 under Executive Order (EO) No. 240. As the second highest office in the land
committed to the service of the nation, OVP performs executive, ceremonial, and
advocacy functions, collaborating with stakeholder and organization in both public and
private sectors, to develop and promote programs that uplift the lives of the Filipino
people.

The Agency’s main office is located at No. 100, 11th St., Barangay Mariana, New
Manila, Quezon City. The extension office is located at 7th Floor Ben-Lor Building,
1184 A Quezon Avenue, Quezon City.

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

The financial statements have been prepared in accordance with and comply with the
International Public Sector Accounting Standards (IPSASs) issued by the Commission
on Audit per COA Resolution No. 2020-001 dated January 9, 2020 and the
Government Accounting Manual (GAM) for National Government Agencies (NGAs).

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 an accrual basis in accordance with

IPSASs. All expenses are recognized in the accounting records when incurred
and reported in the financial statements in the period to which they relate.
Income, if there’s any, is on accrual basis except for transactions where accrual
basis is impractical, or some other methods are required by law.

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3.2 Adjustments, Restatement and Correction of Errors

Adjustments for changes in accounting policies and restatements to correct

errors in prior years are made retrospectively to the extent practicable using the
Accumulated Surplus/(Deficit) account. The effects of changes in accounting
estimates and correction of errors affecting the current year’s operation are
reflected using current year’s account.

3.3 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash in bank.

3.4 Inventories

Inventories are initially recognized at cost and subsequently measured using

Weighted Average Method. They are accounted for under the Perpetual
Inventory System. 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.

Inventories are recognized as an expense when issued for utilization or

consumption in the ordinary course of operations of OVP.

3.5 Property, Plant and Equipment

An item recognized as Property, Plant and Equipment (PPE) is measured at cost.

The cost of an item of PPE shall be recognized as asset if:

a. It is probable that the future economic benefits or service potential

associated with the item will flow to the entity;
b. The cost or fair value of the item can be measured reliably;
c. Beneficial ownership and control clearly rest with the government;
d. The asset is used to achieve government objectives; and
e. It meets the capitalization threshold of ₱15,000.00

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

the date of acquisition.

OVP adopts the straight-line method of depreciation using the Schedule of

Estimated Useful Life of PPE prescribed by COA and applying a residual value
equivalent to at least five percent of the cost of PPE.

Depreciation begins when PPE is available for use such as when it is in the
location and condition necessary for it to be capable of operating as intended. It
is computed for one month if PPE is available for use on or before the 15th of the

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 month. However, if PPE is available for use after the 15th of the month,
depreciation starts in the succeeding month. The depreciation charge for each
period is recognized as expense.

OVP derecognizes items of PPE and/or any significant part of an asset upon
disposal. 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 Changes in accounting policies and estimates

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

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

OVP recognizes the effects of changes in accounting estimates prospectively by

including in surplus or deficit.

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

 Restating the comparative amounts for prior period presented in which

the error occurred; or
 If the error occurred before the earliest prior period presented, restating
the opening balances of assets, liabilities and net assets/equity for the
earliest prior period presented.

3.7 Revenue from non-exchange transactions

Following the COA Circular No. 2020-009 dated April 21, 2020 on Temporary
relaxation in the application of certain provisions of COA Circular No. 2014-002
dated April 15, 2014 and COA Memorandum No. 2014-009 dated August 28,
2014 in areas subject to quarantine during the period of the State of Calamity
declared under Proclamation No. 929, dated March 16, 2020, the costing and
recording of donations will be done after the quarantine and only the remaining
balances will be costed and recorded in the books. To ensure that the donations
received during the quarantine are properly accounted for, a Summary/List of
Donations Received, Distributed and Balances supported by acknowledgment
receipts, proof of receipt by and distribution to the beneficiaries, and inventory
of remaining undistributed items, were submitted to the Office of the Civil
Defense and COA.

3.8 Budget Information

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

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 A separate Statement of Comparison of Budget and Actual Amounts (SCBAA)
is prepared since the budget and the financial statements are not prepared on
comparable basis. The SCBAA is presented showing the original and final
budget and the actual amounts on comparable basis to the budget. Explanatory
comments are provided in the notes to the annual financial statements.

3.9 Employee benefits

The employees of OVP are members of the Government Service Insurance

System (GSIS), which provides life and retirement insurance coverage.

OVP recognizes the undiscounted amount of short term employee benefits, like
salaries, wages, bonuses, allowance, etc., as expense unless capitalized, and as
liability after deducting the amount paid.

OVP recognizes expenses for accumulating compensated absences when these

were paid (commuted or paid as terminal leave benefits). Unused entitlements
that has accumulated at the reporting date were not recognized as expense. Non-
accumulating compensated absences, like special leave privileges, were not
recognized.

3.10 Measurement uncertainty

The preparation of financial statements in conformity with IPSASs require

management to make estimates and assumptions that affect the reporting
amounts of 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, estimated employee benefits,
rates for amortization and impairment of assets.

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

3.11 Events after the Reporting Date

There are no material non-adjusting events and transactions after the reporting
date that would influence the opinion and decision of users taken based on the
financial statements.

3.12 Related Party Transactions

OVP is an independent agency of the Republic of the Philippines.

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 Key Management Personnel

The key management personnel of OVP are the Vice President, Chief of Staff,
Assistant Chief of Staff, and the Directors for Administrative and Financial
Services Office and Technical Services Office which was renamed into Strategy
and Management Office per Notice of Organization, Staffing and Compensation
Action No. 2020-02-027.

Key Management Personnel Remuneration

The aggregate remuneration of the key management personnel determined on a

full-time equivalent basis follows:

Aggregate Amounts (₱)

Particulars Vice Chief of Assistant
Director Total
President Staff Chief of Staff
No. of
1 1 1 2 5
Personnel
Salaries and
3,762,768.00 2,179,248.00 1,928,544.00 3,389,650.00 11,260,210.00
Wages
Other
844,135.05 805,740.05 601,424.00 1,142,954.80 3,394,253.90
Compensation
Total 4,606,903.05 2,984,988.05 2,529,968.00 4,532,604.80 14,654,463.90

Supporting Information to the Statement of Financial Position

4. Cash and Cash Equivalents

Amount (₱)
Accounts 2019
2020
(As Restated)
Petty Cash 554,867.86 259,575.42
Cash in Bank-Local Currency, Savings
55,333.62 76,359.85
Account
Cash-Treasury/Agency Deposit, Trust 489,077.00 601,539.12
Total 1,099,278.48 937,474.39

5. Receivables

Amount (₱)
Accounts 2019
2020
(As Restated)
Inter-Agency Receivables 117,687,841.88 113,717,587.83
Due from National Government 103,472,050.56 101,648,117.29

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 Amount (₱)
Accounts 2019
2020
(As Restated)
Agencies (5.2)
Due from Government-Owned or
13,390,791.32 11,244,470.54
Controlled Corporations (5.3)
Due from Local Government Units (5.4) 825,000.00 825,000.00
Other Receivables 6,123,617.78 6,287,991.90
Receivables-Disallowances/Charges (5.5) 5,698,388.40 5,698,388.40
Due from Officers and Employees (5.6) 23,593.60 182,827.33
Other Receivables (5.7) 401,635.78 406,776.17
Total 123,811,459.66 120,005,579.73

5.1 Aging/Analysis of Receivables

As at December 31, 2020

Past due
Accounts Not past due Less than Total
Over 1 year
365 days
Due from National Government
96,188,567.26 - 7,283,483.30 103,472,050.56
Agencies
Due from Government-Owned or
13,390,791.32 - - 13,390,791.32
Controlled Corporations
Due from Local Government Units 825,000.00 - - 825,000.00
Receivable-Disallowances/
- - 5,698,388.40 5,698,388.40
Charges
Due from Officers and Employees - 9,467.15 14,126.45 23,593.60
Other Receivables - 40,054.11 361,581.67 401,635.78
Total 110,404,358.58 49,521.26 13,357,579.82 123,811,459.66

As at December 31, 2019 (As Restated)

Past due
Accounts Not past due Less than Total
Over 1 year
365 days
Due from National Government
94,364,633.99 - 7,283,483.30 101,648,117.29
Agencies
Due from Government-Owned or
11,244,470.54 - - 11,244,470.54
Controlled Corporations
Due from Local Government Units 825,000.00 - - 825,000.00
Receivable-Disallowances/
- - 5,698,388.40 5,698,388.40
Charges
Due from Officers and Employees - 182,827.33 - 182,827.33
Other Receivables - - 406,776.17 406,776.17
Total 106,434,104.53 182,827.33 13,388,647.87 120,005,579.73

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 5.2 Due from National Government Agencies of ₱103,472,050.56 in CY 2020, and
₱101,648,117.29 in CY 2019, as restated, consist of the following:

Amount (₱)
Agency Nature 2019
2020
(As Restated)
Balance of fund transfer for the
Commission on
educational program to various
Higher Education 7,258,900.00 7,258,900.00
State Universities and
(CHED)
Colleges.
Various Hospitals Fund transfer for the
under the Department implementation of OVP’s 92,007,701.07 90,275,994.54
of Health (DOH) Medical Assistance Program.
Procurement Service Purchase of common use office
Department of Budget supplies.
435,473.49 113,222.75
and Management (PS-
DBM)
Deposit under Government
PS-DBM 3,720,476.00 4,000,000.00
Fare Agreement (GFA).
Overpayment through Tax
Bureau of Internal
Remittance Advice (TRA) due 49,500.00 -
Revenue (BIR)
to amended remittance
Total 103,472,050.56 101,648,117.29

The balance of fund transferred to CHED pertains to the Priority Development

Assistance Fund (PDAF) of the former Vice President Jejomar C. Binay in CY
2012.

The balance of fund transfers to various hospitals under the DOH for the
implementation of OVP’s Medical Assistance Program totaling ₱92,007,701.07
in CY 2020 is comprised of the following:

Unliquidated
Agency
Amount (₱)
San Lazaro Hospital 24,583.30
National Children's Hospital 7,282,223.61
Schistosomiasis Control and Research Hospital 2,454,772.50
Bicol Medical Center 0.33
Western Visayas Sanitarium 1,538,319.00
Philippine General Hospital 16,307,512.25
Philippine Children's Medical Center 6,579,264.64
Dr. Jose N. Rodriguez Memorial Hospital 3,646,576.45
Amai Pakpak Medical Center 2,722,788.08
Corazon Locsin Montelibano Memorial Regional Hospital 8,032,348.89

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 Unliquidated
Agency
Amount (₱)
Batangas Medical Center 11,838,169.70
Talavera General Hospital 3,000,000.00
Talisay District Hospital 3,442,708.37
Saint Anthony Mother and Child Hospital 4,000,000.00
Governor Celestino Gallares Memorial Hospital 4,000,000.00
Don Emilio Del Valle Memorial Hospital 3,207,704.70
Jose R. Reyes Memorial Medical Center 8,000,000.00
Eastern Visayas Regional Medical Center 5,930,729.25
Total 92,007,701.07

The unliquidated amount of fund transfer to San Lazaro Hospital pertains to the
medical assistance granted in CY 2012 which is still subject for reconciliation.

5.3 Due from Government-Owned or Controlled Corporations of ₱13,390,791.32 in

CY 2020, and ₱11,244,470.54 in CY 2019, as restated, consist of the following:

Amount (₱)
Agency Nature 2019
2020
(As Restated)
National Kidney Fund transfer for the
and Transplant implementation of OVP’s Medical - 3,408,331.51
Institute Assistance Program.
Fund transfer for the
Philippine Heart implementation of OVP’s Medical 1,595,048.67 7,773,832.08
Center Assistance Program.
Fund transfer for the
implementation of OVP’s Medical
Lung Center of Assistance Program. CY 2019
10,483,242.65 62,306.95
the Philippines balance was fully liquidated in
CY 2020. Additional fund transfer
was made in CY 2020.
National Food Supply of rice for the disaster
1,312,500.00 -
Authority relief operations of OVP.
Total 13,390,791.32 11,244,470.54

5.4 Due from Local Government Units of ₱825,000.00 pertains to the conditional
donation of motor vehicle to the City of Naga for use in the implementation of
the Angat Buhay program of OVP.

5.5 Receivables-Disallowances/Charges of ₱5,698,388.40 consists of the following:

Particulars Amount (₱)

Issued suspensions that matured into disallowances of the 5,422,230.85

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 Particulars Amount (₱)
defunct Office of the Prime Minister (OPM) which was
already requested for write-off but denied per COA Decision
No. 2011-100 dated December 13, 2011.
Issued disallowances suspensions to officers and employees
under the administration of the late Vice President Salvador
H. Laurel where all accountable officers were already 276,157.55
separated from service and could not be located in the last
recorded address in the Office.
Total 5,698,388.40

5.6 Due from Officers and Employees of ₱23,593.60 in CY 2020, and ₱182,827.33
in CY 2019, as restated, pertains to personal call charges incurred by officers
and employees, and overpayment of salaries due to incurred leave without pay.

5.7 Other Receivables of ₱401,635.78 in CY 2020 and ₱406,776.17 in CY 2019, as

restated, consists of the following:

Amount (₱)
Particulars 2019
2020
(As Restated)
Unliquidated advances granted to officers
under the administration of the late Vice 150,622.73 150,622.73
President Salvador Laurel.
Terminal leave benefits of OPM
136,825.74 136,825.74
employees deposited with BTr.
Unliquidated advances issued by the
59,314.48 59,314.48
defunct OPM to its employees.
Other receivable from various creditors 54,872.83 60,013.22
Total 401,635.78 406,776.17

6. Inventories

Amount (₱)
Accounts 2019
2020
(As Restated)
Inventory Held for Distribution 810,000.00 278,309.00
Welfare Goods for Distribution - 278,309.00
Medical, Dental and Laboratory Supplies for
810,000.00 -
Distribution
Inventory Held for Consumption 2,815,429.15 2,375,305.01
Office Supplies Inventory 2,598,316.97 2,375,305.01
Other Supplies and Materials Inventory 217,112.18 -
Total 3,625,429.15 2,653,614.01

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 6.1 Welfare Goods for Distribution in CY 2019 pertains to the Laminated Tarpaulins
as relief assistance to various Barangay in Davao Del Sur.

6.2 Medical, Dental and Laboratory Supplies for Distribution in CY 2020 pertains
to locally produced personal protective equipment for distribution to COVID-19
frontliners.

6.3 Office Supplies Inventory of ₱2,598,316.97 and ₱2,375,305.01 represents the

common use items purchased that are still in inventory as of December 31, 2020
and December 31, 2019, respectively.

6.4 Other Supplies and Materials Inventory of ₱217,112.18 in CY 2020 includes

face masks and other supplies for consumption.

7. Other Current Assets

Amount (₱)
Accounts 2019
2020
(As Restated)
Advances 157,433.25 604,445.48
Advances to Special Disbursing Officer 12,004.03 392,266.90
Advances to Officers and Employees 145,429.22 212,178.58
Prepayments
Prepaid Insurance 260,845.83 341,251.59
Total 418,279.08 945,697.07

7.1 Advances to Special Disbursing Officer of ₱12,004.03 and ₱392,266.90

represents the unliquidated advances for special purpose for CYs 2020 and 2019,
respectively.

7.2 Advances to Officers and Employees of ₱145,429.22 and ₱212,178.58 pertains to

the unliquidated cash advances for travel for CYs 2020 and 2019, respectively.

7.3 Prepaid Insurance of ₱260,845.83 in CY 2020 pertains to the unexpired portion

of insurance premiums of the following:

Prepaid Insurance Amount (₱)

Motor Vehicles 26,337.58
Fidelity Bond 234,508.25
Total 260,845.83

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 8. Property, Plant and Equipment

Other
Machinery Furniture,
Transportation Property,
Particulars and Fixtures Total (₱)
Equipment Plant and
Equipment and Books
Equipment
Carrying Amount,
11,276,027.98 22,466,715.91 2,346,182.68 2,291,396.74 38,380,323.31
January 1, 2019
Prior Year Errors/
101,063.17 - - - 101,063.17
Adjustments
Carrying Amount,
January 1, 2020 11,377,091.15 22,466,715.91 2,346,182.68 2,291,396.74 38,481,386.48
(As Restated)
Additions/
5,474,551.00 9,792,200.00 199,681.60 461,992.00 15,928,424.60
Acquisitions
Total 16,851,642.15 32,258,915.91 2,545,864.28 2,753,388.74 54,409,811.08
Depreciation (3,137,357.06) (2,786,946.34) (271,230.90) (577,408.36) (6,772,942.66)
Disposals/
(140,615.85) - - 140,615.85 -
Adjustments
Carrying Amount,
13,573,669.24 29,471,969.57 2,274,633.38 2,316,596.23 47,636,868.42
December 31, 2020

Gross Cost 26,634,353.26 45,151,071.00 4,241,093.60 4,505,604.32 80,532,122.18

Less : Accumulated
13,060,684.02 15,679,101.43 1,966,460.22 2,189,008.09 32,895,253.76
Depreciation
Carrying Amount,
13,573,669.24 29,471,969.57 2,274,633.38 2,316,596.23 47,636,868.42
December 31, 2020

8.1 The additions/acquisitions in PPE of ₱15,928,424.60 for CY 2020 pertains to the

following:

Account Particulars Amount (₱)

ICT Equipment Purchase of 57 units laptop, server, access control 5,336,515.00
system, identification card printer, network storage,
laptop and accessories for graphic design and gigabit
switch
Communication Purchase of handheld radios 72,480.00
Equipment
Other Equipment Purchase of digital video recorder and accessories 65,556.00
Motor Vehicles Purchase of Two (2) units of Toyota Hi-Ace 9,792,200.00
Commuter and six (6) units of Toyota Innova
Furniture and Purchase of OVP seal, counter shields and 199,681.60
Fixtures workstations
Other PPE Purchase of LCD projector, projector screen, touring 461,992.00
case and ballistic briefcase, cabinets and markers
Total 15,928,424.60

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9. Intangible Assets

Intangible Asset amounting to ₱2,054,473.12 pertains to the ₱1,504,748.12 Computer

Software for the purchase of server license and the Development in Progress-
Computer Software of ₱549,725.00 for the procurement of Enterprise Resource
Planning Software still under the development stage. No Accumulated Amortization
was recognized on the Computer Software account since it is a perpetual license with
indefinite useful life.

10. Other Non-Current Assets

Amount (₱)
Accounts 2019
2020
(As Restated)
Prepaid Rent 3,500,876.84 3,220,892.58
Guaranty Deposits 261,796.80 261,796.80
Other Assets 601,277.49 601,277.49
Total 4,363,951.13 4,083,966.87

10.1 Prepaid Rent in CY 2020 of ₱3,500,876.84 consists of ₱2,570,471.84 deposit

made to Ben-Lor Trading and Publishing Corporation for the lease of office
space in the 7th floor of Ben-Lor Building, the Extension Office and the
₱930,405.00 deposit to the Quezon City Government for the lease of Quezon
City Reception House (QCRH) that serves as the OVP main office.

10.2 Guaranty Deposits refers to the guarantee bill deposit paid to Manila Electric
Company for the electric consumption of the Coconut Palace when it was leased
for the office of the former Vice President. The amount was already applied for
refund.

10.3 Other Assets of ₱601,277.49 represents the reclassified PPE of ₱5,821,476.51

with an accumulated depreciation of ₱5,220,199.02 as of December 31, 2008.
These were assets of the defunct OPM transferred to OVP and those which were
gutted by the fire on February 22, 2001 at the Philippine International
Convention Center (PICC) when the OVP was still housed at the said building.
Said amount was requested for write-off with the COA Central Office.

11. Financial Liabilities

Amount (₱)
Particulars 2019
2020
(As Restated)
Accounts Payable 41,351,579.47 15,103,701.85

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 Amount (₱)
Particulars 2019
2020
(As Restated)
Due to Officers and Employees 5,328,774.11 2,920,313.44
Total 46,680,353.58 18,024,015.29

11.1 Accounts Payable pertains to year-end liabilities to suppliers including various

assistance granted under the Medical Assistance Program which were processed
but not paid as of year-end.

11.2 Due to Officers and Employees pertains to unpaid obligations to officers and
employees

12. Inter-Agency Payables

Amount (₱)
Particulars 2019
2020
(As Restated)
Due to BIR 292,455.80 1,896.99
Due to GSIS 91,937.51 164,501.08
Due to Pag-IBIG 179,170.65 9,582.00
Due to PhilHealth 138,357.10 23,611.11
Total 701,921.06 199,591.18

Inter-Agency Payables represents deductions made from the salary of OVP employees
which were remitted the following month of the succeeding year.

13. Trust Liabilities

Amount (₱)
Particulars
2020 2019
Trust Liabilities 236,000.00 236,000.00
Guaranty/Security Deposits Payable 253,077.00 365,539.12
Total 489,077.00 601,539.12

13.1 Trust Liabilities represent the fees for bid documents collected from
participating suppliers/bidders to cover honoraria of the Bids and Awards
Committee (BAC) members and the Technical Working Group (TWG).

13.2 Guaranty/Security Deposits Payable pertains to the performance security bonds

posted by various suppliers.

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14. Other Payables

Amount (₱)
Particulars
2020 2019
Motor Vehicles received under conditional
14,752,000.00 14,752,000.00
donation
LBP loan amortizations and Fees deducted
7,853.24 52,147.65
from OVP employees to be remitted
Total 14,759,853.24 14,804,147.65

Supporting Information to the Statement of Financial Performance

15. Personnel Services

Amount (₱)
Accounts 2018
2019
(As Restated)
Salaries and Wages 88,311,634.11 75,625,005.76
Salaries and Wages-Regular (15.1) 80,481,707.07 68,829,852.33
Salaries and Wages-Casual/Contractual 7,829,927.04 6,795,153.43
Other Compensation 37,472,847.68 28,381,694.39
Personal Economic Relief Allowance
3,285,349.07 2,827,363.63
(PERA)
Representation Allowance (RA) 1,163,250.00 1,193,250.00
Transportation Allowance (TA) 1,138,500.00 972,750.00
Clothing/Uniform Allowance 702,000.00 672,000.00
Hazard Pay (15.2) 1,141,500.00 -
Overtime and Night Pay 738,338.35 521,715.86
Year End Bonus 7,283,063.30 5,825,374.90
Cash Gift 762,500.00 593,000.00
Other Bonuses and Allowances (15.3) 21,258,346.96 15,776,240.00
Personnel Benefit Contributions 3,443,427.20 9,221,063.05
Retirement and Life Insurance
2,096,000.00 8,305,349.84
Premiums (15.4)
Pag-IBIG Contributions 163,900.00 140,200.00
PhilHealth Contributions 1,016,527.20 634,013.21
Employees Compensation Insurance
167,000.00 141,500.00
Premiums
Other Personnel Benefits 2,318,394.72 1,699,496.29
Terminal Leave Benefits - 730,103.73
Other Personnel Benefits (15.5) 2,318,394.72 969,392.56
Total 131,546,303.71 114,927,259.49

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 15.1 The increase of Salaries and Wages-Regular was due to the 1st tranche
implementation of RA No. 11466 or the Salary Standardization Law of 2019,
promotion of personnel, and filling-up of new personnel to the vacant positions.

15.2 Hazard Pay of ₱1,141,500.00 in CY 2020 represents the payment to regular

employees who physically reported for work during the period of
implementation of an Enhanced Community Quarantine relative to COVID-19
pandemic as per Administrative Order No. 26 dated March 23, 2020 and Budget
Circular No. 2020-1 dated March 24, 2020.

15.3 Other Bonuses and Allowances of ₱21,258,346.96 in CY 2020 represents the

Performance-Based Bonus for CY 2018 and 2016, Mid-Year Bonus,
Productivity Enhancement Incentive, Collective Negotiation Agreement
Incentive, Service Recognition Incentive and the Special Duty Allowance of the
Vice President’s Security Group granted under the FY 2020 GAA (RA No.
11465).

15.4 The decrease in the Retirement and Life Insurance Premiums (RLIP) was due to
the effectivity of DBM Circular Letter No. 2020-06 dated March 30, 2020
wherein starting April 2020 the DBM directly remits to the GSIS the RLIP
contribution.

15.5 Other Personnel Benefits pertains to step increments, and monetized leave
credits to qualified employees.

16. Maintenance and Other Operating Expenses

Amount (₱)
Account 2019
2020
(As Restated)
Traveling Expenses 10,138,023.41 24,676,730.94
Traveling Expenses-Local (16.1) 9,936,539.07 23,786,090.84
Traveling Expenses-Foreign 201,484.34 890,640.10
Training and Scholarship Expenses
Training Expenses 1,469,385.68 3,761,215.43
Supplies and Materials Expenses 40,658,595.13 21,527,143.94
Office Supplies Expenses 2,306,830.19 2,928,388.38
Welfare Goods Expenses (16.2) 25,284,063.97 11,176,825.03
Fuel, Oil and Lubricants Expenses 3,013,243.71 2,884,370.94
Semi-Expendable Machinery and
20,377.00 323,021.20
Equipment Expenses
Semi-Expendable Furniture, Fixtures and
128,503.60 286,341.00
Books Expenses
Other Supplies and Materials
9,905,576.66 3,928,197.39
Expenses (16.3)

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 Amount (₱)
Account 2019
2020
(As Restated)
Utility Expenses 4,720,212.00 5,911,662.12
Water Expenses 993,471.12 1,316,718.71
Electricity Expenses 3,726,740.88 4,594,943.41
Communication Expenses 5,112,306.98 4,040,160.31
Postage and Courier Services 237,038.00 72,095.20
Telephone Expenses 3,491,846.00 2,677,426.80
Internet Subscription Expenses 1,335,065.00 1,278,666.22
Cable, Satellite, Telegraph and Radio
48,357.98 11,972.09
Expenses
Confidential, Intelligence and Extraordinary Expenses
Extraordinary and Miscellaneous
483,600.00 547,200.00
Expenses
Professional Services 39,844,396.07 37,942,598.09
Auditing Services 70,777.74 119,005.47
Consultancy Services 17,838,315.00 15,868,744.09
Other Professional Services 21,935,303.33 21,954,848.53
General Services 9,662,687.25 6,476,719.95
Janitorial Service 4,578,153.22 4,421,985.16
Security Services (16.4) 2,918,179.12 -
Other General Services 2,166,354.91 2,054,734.79
Repairs and Maintenance 2,064,642.22 2,684,465.42
Repairs and Maintenance-Machinery and
477,615.65 674,698.80
Equipment
Repairs and Maintenance-Transportation
1,546,189.07 1,624,892.02
Equipment
Repairs and Maintenance-Furniture and
- 95,500.00
Fixtures
Repairs and Maintenance-Leased Assets 40,837.50 289,374.60
Assistance/Subsidy 332,463,932.80 237,329,240.66
Assistance to Other National
500,000.00 -
Government Agencies (16.5)
Assistance to Local Government Units
23,285,250.00 91,114,758.64
(16.6)
Assistance to Non-Government
Organizations/Civil Society 7,410,959.00 -
Organizations (16.7)
Subsidies-Others (16.8) 301,267,723.80 146,214,482.02
Taxes, Insurance Premiums and Other
597,900.92 444,417.31
Fees
Taxes, Duties and Licenses 114,724.21 34,436.30
Fidelity Bond Premiums 263,631.38 146,797.49
Insurance Expenses 219,545.33 263,183.52

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 Amount (₱)
Account 2019
2020
(As Restated)
Other Maintenance and Operating
114,161,744.00 47,024,490.66
Expenses
Representation Expenses (16.9) 23,422,686.23 30,168,229.15
Rent/Lease Expenses (16.10) 19,257,222.97 14,062,593.49
Subscription Expenses 3,470,135.95 2,793,668.02
Donations (16.11) 68,011,698.85 -
Total 561,377,426.46 392,366,044.83

16.1 Travelling Expenses-Local of ₱9,936,539.07 covers transportation and other

travel expenses of personnel for the official engagements of the Vice President,
implementation of the Angat Buhay program, conduct of disaster relief
operations, delivery of Personal Protective Equipment and care packages to
various provinces as part of the COVID-19 response operations of the OVP. The
significant decrease was brought about by the limited engagement due to the
pandemic.

16.2 Welfare Goods Expenses of ₱25,284,063.97 in CY 2020 consists of rice, canned

goods, and other relief items distributed to areas affected by the COVID-19
pandemic and various calamities. The ₱11,176,825.03 restated balance in CY
2019 consists of rice, and other relief items distributed to calamity-stricken
areas.

16.3 Other Supplies and Materials Expenses of ₱9,905,576.66 in CY 2020 pertains to

various supplies and materials purchased and distributed in relation to the
implementation of Angat Buhay Program, Istorya ng Pag-asa, Community
Learning Hub, and other non-common use items such as face masks, face shields
and various supplies used for the COVID-19 response operations of the OVP.

16.4 Security Services of ₱2,918,179.12 in CY 2020 covers the outsourced services of

security officers for the OVP Main and Extension Office.

16.5 Assistance to Other National Government Agencies represents the assistance

granted to Department of Education (DEPED) Region V for the capacity
building of teachers and home learning facilitators on Modular Distance
Learning (MDL).

16.6 Assistance to Local Government Units pertains to assistance granted by OVP to

various Local Government Units (LGUs) under Locally Funded Projects (LFPs).

16.7 Assistance to Non-Government Organizations/Civil Society Organizations

represents the livelihood assistance granted to various accredited Civil Society
Organizations (CSOs) partner-beneficiary of OVP.

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 16.8 Subsidies-Others represents the medical and burial assistance, and assistance
given to disaster affected persons and households.

16.9 Representation Expenses covers expenditures for the representation expenses of

the VP including regular and special meetings for multi-sectoral and youth
consultation, Angat Buhay and Metro Laylayan consultation meetings and
trainings, and meal expenses of the Vice Presidential Security Personnel
including local security augmentation during travel of the Vice President in the
provincial areas prior to pandemic. It also includes meals of skeleton staff,
volunteers and dorm personnel related to the COVID-19 response operations of
the OVP.

16.10 Rent/Lease Expenses represents payment of lease of office spaces at QCRH and
Ben-Lor Building. The significant increase in CY 2020 is due to the lease of
dormitories in Cebu City for frontliners responding to COVID-19 pandemic.

16.11 Donations in CY 2020 pertains to the diagnostic kits and personal protective
equipment donated to various hospitals, institutions and testing centers certified
by DOH as part of the COVID-19 response operations of the OVP.

17. Non-Cash Expenses

Amount (₱)
Accounts 2019
2020
(As Restated)
Depreciation 6,772,942.66 5,214,225.44
Depreciation-Machinery and Equipment 3,137,357.06 2,495,005.49
Depreciation-Transportation Equipment 2,786,946.34 2,202,955.63
Depreciation-Furniture, Fixtures and Books 271,230.90 110,554.79
Depreciation-Other Property, Plant and
577,408.36 405,709.53
Equipment
Impairment Loss
Impairment Loss-Property, Plant and
- 7,210.01
Equipment (17.1)
Total 6,772,942.66 5,221,435.45

17.1 Impairment Loss-Property, Plant and Equipment of ₱7,210.01 in CY 2019

pertains to losses incurred due to upgrading of major desktop computer parts and
derecognition of old parts in the books.

18. Net Financial Assistance/Subsidy

The account pertains to the Subsidy from National Government, details shown in the
next page:

27
 Amount (₱)
Particulars 2019
2020
(As Restated)
Notice of Cash Allocation (NCA) 688,481,600.00 688,946,586.00
Tax Remittance Advice (TRA) 25,485,007.56 20,761,425.08
Total 713,966,607.56 709,708,011.08
Reversion of NCA for Cancelled
555,832.28 124,000.00
Checks/ADA
Reversion of Unused NCA 26,870,355.58 79,001,656.06
Subsidy from NG 686,540,419.70 630,582,355.02

19. Gains

Miscellaneous Income of ₱40,246.86 in CY 2020 represents the ₱40,154.01 liquidated

damages collected on the late delivery of goods purchased and the ₱92.85 bank interest
income from payroll in the Landbank net of taxes and charges.

Supporting Information to the Statement of Changes in Net Assets/Equity

20. Prior Year Errors/Adjustments

The prior year errors/adjustments resulted in the net decrease in the Accumulated
Surplus/(Deficit) of ₱21,957,543.06, as follows:

Amount (₱)
Description 2019
2020
(As Restated)
Liquidation of Transferred Fund to DPWH - (1,630,009.66)
Liquidation of Transferred Fund to Various
(20,970,482.75) -
Hospitals
Liquidation of Transferred Fund to
(174,690.00) (1,355,211.11)
University of the Philippines Visayas
Liquidation of Transferred Fund to NKTI - (708,579.38)
Payment of Prior Year’s obligations not
(1,131,214.12) (3,000.01)
charged to Accounts Payable
Liquidation of Prior Year’s Cash Advances (57,375.00) -
Refund of unused financial assistance to
43,476.36 39,195.53
LGUs (LFPs)
Contractor’s share of electric consumption - 47,610.84
Adjustment of the Prior Year’s LFP - (44,664,978.64)
Cancelled Checks/ADA issued in CY 2019 (124,000.00) -
Adjustment of Personal Charges on (880.53) -

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 Amount (₱)
Description 2019
2020
(As Restated)
Telephone Expenses of CY 2019
Adjustment of Accumulated Depreciation
of Other Equipment due to the 101,063.17 -
adjustment of the Estimated Useful Life
Recognition of Bank Interest Income on the
156.15 -
Savings Account deposit to LBP
Refund of Mid-Year Bonus paid to
13,729.00 -
suspended employee
Adjustment of the impairment loss for past
- 353,973.19
due receivables
Adjustment on the purchase of medicines
- 205,953.50
taken up as expense
Adjustment of depreciation expenses of
- (332,660.28)
various PPE items
Adjustment on recording of GSIS payments - (6.00)
Adjustment on recording of Philhealth
- 1,000.77
payments
Adjustment to Office Supplies Expense - -
Adjustment of advance rental and security
- (1,128,101.20)
deposit to PNB
Adjustment of Accumulated Depreciation
of various vehicles acquired through - 2,413,361.95
conditional donation
Refund of unused flight booking payments
- 83,246.70
from PAL
Cancellation/Adjustment of Accounts
342,150.82 620,642.21
Payable/Due to Officers and Employees
Adjustment of CY 2019 set up to Due to
523.84 -
GSIS
Refund of overpayment of salaries - 9,742.61
Refund of RATA - 9,000.00
Refund of prior year’s personal call charges - 4,673.66
Refund of medical assistance - 33,652.00
Reversion of Deposit under Trust account
for the collection of Bid Documents Fee - (90,540.00)
as of December 31, 2015
Total (21,957,543.06) (46,091,033.32)

The total prior year errors/adjustments of (₱21,957,543.06) is distributed to income

statement adjustment of (₱22,332,348.87), and errors from year 2018 and earlier of
₱374,805.81.

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21. Surplus/(Deficit) for the Period

Due to prior period income statement adjustment amounting to ₱22,332,348.87

discovered in CY 2020, the previously recorded ₱140,463,726.66 Surplus for CY 2019
was restated as ₱118,131,377.79.

22. Adjustment of Net Revenue Recognized Directly in Net Assets/Equity

The Adjustment of Net Revenue Recognized Directly in Net Assets/Equity amounts to

₱1,488,633.00 in CY 2020 and ₱1,971,109.29 in CY 2019. This refers to the Cash-
Treasury/Agency Deposit, Regular, which are collections remitted to BTr.

Supporting Information to the Statement of Cash Flows

23. Receipt of NCA

Amount (₱)
Particulars
2020 2019
NCA-Regular Fund 688,481,600.00 688,946,586.00
NCA-Trust Receipts 112,463.00 269,007.00
Total 688,594,063.00 689,215,593.00

24. Collection of Receivables

The collection of receivables of ₱195,978.21 and ₱18,711.28 in CYs 2020 and 2019,
respectively, pertains to collections from various employees for personal phone
charges and other receivables. The CY 2020 collections also includes the liquidated
damages deducted from payments to suppliers deposited to BTr.

25. Trust Receipts

The collection of Trust Receipts of ₱391,264.50 in CY 2019 represents the Bid

Documents Fee collected from participating suppliers/bidders and the Performance
Bonds posted by various suppliers.

26. Other Receipts

Amount (₱)
Particulars
2020 2019
Refund of Cash Advances 1,139,789.53 1,657,309.83
Refund of Guaranty Deposits 4,619.20 19,890.71

30
 Amount (₱)
Particulars
2020 2019
Refund of Unused Petty Cash Fund 836.42 250.00
Refund of Overpayment of Personnel
19,382.50 1,913.59
Services
Refund of Overpayment of Maintenance
9,101.81 205,086.96
and Other Operating Expenses
Other Miscellaneous Receipt 118,925.33 68,103.07
Total 1,292,654.79 1,952,554.16

27. Adjustments

Adjustments of ₱725,854.78 and ₱2,733,614.24 pertain to the restoration of cash for

cancelled/stale checks/ADA in CYs 2020 and 2019, respectively. The CY 2019
balance was restated from its previous amount of ₱2,609,614.24 to reflect the
adjustment of prior year’s cancelled payments adjusted in the current year amounting
to ₱124,000.00.

28. Remittance to National Treasury

Remittance to National Treasury of ₱1,488,633.00 and ₱1,971,109.29 in CYs 2020

and 2019, respectively, refers to the deposit of collections to BTr.

29. Payment of Expenses

Payment of Expenses of ₱291,919,113.93 in CY 2020 refers to the payment of

Personnel Services of ₱101,558,850.09, Maintenance and Other Operating Expenses
of ₱170,451,745.12, and ₱19,908,518.72 expenses incurred in prior years.

30. Purchase of Inventories

Purchase of Inventories of ₱8,843,049.78 and ₱5,195,566.73 in CYs 2020 and 2019,

respectively, pertains to the purchase of inventories for distribution and inventories
held for consumption.

31. Grant of Cash Advances

Grant of Cash Advances of ₱9,755,206.52 and ₱17,780,138.68 in CYs 2020 and 2019,
respectively, refers to the advances for special purpose/time-bound undertakings and
advances for travel.

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32. Prepayments

Prepayments of ₱967,836.28 and ₱779,908.48 in CYs 2020 and 2019, respectively,

represents the advance rental and security deposit for the lease of office space, prepaid
insurance of motor vehicles and other PPE, and fidelity bond of accountable officers.

33. Remittance of Personnel Benefit Contributions and Mandatory Deductions

Remittance of Personnel Benefit Contributions and Mandatory Deductions of

₱14,975,402.91 and ₱10,297,074.28 in CYs 2020 and 2019, respectively, pertains to
the remittances to GSIS/Pag-IBIG/PhilHealth and remittance of other payables.

34. Grant of Financial Assistance/Subsidy

Grant of Financial Assistance/Subsidy of ₱106,717,737.48 and ₱105,957,745.63 in

CYs 2020 and 2019, respectively, refers to the payment of assistance granted for
medical (except medical assistance granted through service delivery network in
government hospitals with transferred funds), burial, livelihood subsidy, financial
assistance to disaster affected persons and households, financial assistance granted to
other government agencies, and various LGUs under the LFPs.

35. Release of Inter-Agency Fund Transfers

Release of Inter-Agency fund transfers of ₱212,271,336.04 in CY 2020 pertains to the

following:

Agency Purpose Amount (₱)

PS-DBM Advance payment for the office supplies 322,250.74
Fund Fund transfer to various hospital for the
Transfer to implementation of OVP’s Medical Assistance 186,949,085.30
NGAs Program
Fund transfer to GOCC hospitals for the
Fund
implementation of OVP’s Medical Assistance
Transfer to 25,441,250.00
Program, and to NFA for the supply of rice for
GOCCs
the relief operations of OVP
Total 212,712,586.04

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36. Other Disbursements

Other Disbursements of ₱175,959.62 in CY 2020 and ₱269,005.48 in CY 2019

pertains to the payment of honoraria of Bids and Awards Committee and Technical
Working Group and the refund of guaranty/security deposits of suppliers.

37. Purchase/Construction of PPE

Purchase/Construction of PPE consists of the following:

Amount (₱)
Particulars
2020 2019
Purchase of Machinery and Equipment 5,234,115.19 2,705,573.70
Purchase of Furniture and Fixtures 95,911.07 163,987.68
Purchase of Transportation Equipment 9,267,617.85 2,733,664.28
Purchase of Other PPE 439,558.97 910,644.12
Total 15,037,203.08 6,513,869.78

The Cash outflow for the purchase/construction of PPE amounting to ₱15,037,203.08

in CY 2020 pertains to the cost of purchases/construction of PPE after deducting the
applicable withholding taxes.

38. Purchase of Intangible Assets

Purchase of Intangible Assets of ₱515,367.19 in CY 2020 pertains to the payment of

Enterprise Resource Planning Software.

Supporting Information to the Statement of Comparison of Budget and Actual

Amounts

39. Payments

The change from the original budget of ₱708,019,000.00 to final of ₱639,472,834.00 is

the net effect of the increase in PS and the decrease in MOOE and CO allotments. The
increase in PS allotment was due to the release of the PBB for FY 2016 and 2018,
additional allotments to cover the salary adjustments and personnel benefits due to the
effectivity of 1st tranche of RA No. 11466 or the Salary Standardization Law of 2019,
filling up of approved plantilla positions and to cover other bonuses and allowances
and leave monetization of qualified OVP employees.

The decrease in MOOE and CO allotments was due to the discontinued releases
pursuant to National Budget Circular No. 580, the Adoption of Economy Measures in
the Government due to the Emergency Health Situation.

33