LAKE DEVELOPMENT AUTHORITY STATEMENTS OF FINANCIAL POSITION December 31, 2016 and 2015 (In Philippine Peso)

Note 2016 2015

ASSETS Current Assets Cash and cash equivalents 3 457,613,299 298,851,766 Receivables-net 4 24,693,979 68,496,849 Supplies inventory 5 1,798,153 2,347,478 Prepayments 6 707,457 87,904 Other current assets 7 1,084,144 1,969,310 Total current assets 485,897,032 371,753,307

Non-Current Assets Investments 8 0 20,704,673 Property, plant and equipment-net 9 307,765,680 322,156,731 Other assets 10 33,000,310 29,152,188 Total non-current assets 340,765,990 372,013,592

TOTAL ASSETS 826,663,022 743,766,899

LIABILITIES AND EQUITY Current Liabilities Payables 11 103,581,960 59,134,795 Inter-agency payables 12 35,744,253 29,191,756 Other liability accounts 13 42,025,995 38,145,324 Total current liabilities 181,352,208 126,471,875

Non-Current Liabilities Long-term liabilities 14 586,780 336,780 Deferred credits 15 30,977,682 70,075,807 Total non-current liabilities 31,564,462 70,412,587

Total Liabilities 212,916,670 196,884,462 Equity 22 613,746,352 546,882,437

TOTAL LIABILITIES AND EQUITY 826,663,022 743,766,899

See accompanying Notes to Financial Statements.

4 LAGUNA LAKE DEVELOPMENT AUTHORITY STATEMENTS OF PROFIT OR LOSS For the Years Ended December 31, 2016 and 2015 (In Philippine Peso)

Note 2016 2015

OPERATING INCOME Permits and licenses 16 135,597,743 113,069,070 Service income 17 134,834,959 83,121,800 Business income 18 28,018,628 19,729,081 Other income 19 4,396,603 4,115,157 Total operating income 302,847,933 220,035,108

OPERATING EXPENSES Personnel services 20 104,314,296 92,690,247 Maintenance and other operating expenses 21 76,534,405 68,943,659 Financial expenses 27,370 19,179 Total operating expenses 180,876,071 161,653,085

INCOME FROM OPERATIONS 121,971,862 58,382,023 LOSS ON DISPOSAL OF PROPERTY 4,069,559 13,175,383 NET PROFIT BEFORE INCOME TAX 117,902,303 45,206,640 INCOME TAX EXPENSE 34,229,704 11,588,769

NET PROFIT 83,672,599 33,617,871

See accompanying Notes to Financial Statements.

5 LAGUNA LAKE DEVELOPMENT AUTHORITY STATEMENTS OF CHANGES IN EQUITY For the Years Ended December 31, 2016 and 2015 (In Philippine Peso)

Paid-up Capital (Note 22) Ordinary Preferred Retained Shares Shares Earnings Total

Balances, January 1, 2015 299,234,701 73,006,870 159,286,527 531,528,098

Changes in Equity in 2015 Receipt of subscriptions receivable 339,780 11,145 0 350,925 Net profit for the year 0 0 33,617,871 33,617,871 Dividends 0 0 (18,614,457) (18,614,457) Balances, December 31, 2015 299,574,481 73,018,015 174,289,941 546,882,437

Changes in Equity in 2016 Net profit for the year 0 0 83,672,599 83,672,599 Dividends 0 0 (16,808,684) (16,808,684)

Balances, December 31, 2016 299,574,481 73,018,015 241,153,856 613,746,352

See accompanying Notes to Financial Statements.

6 LAGUNA LAKE DEVELOPMENT AUTHORITY STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2016 and 2015 (In Philippine Peso)

Note 2016 2015)

CASH FLOWS FROM OPERATING ACTIVITIES Collection of income 331,107,702 205,654,808 Collection of receivables/refund of disallowances 5,523,257 18,636,711 Receipt (refund) of tender of deposits, performance/bidders bond, net 224,406 211,526 Payment of operating expenses (103,590,399) (94,074,052) Remittances to GSIS, Pag-IBIG, BIR, etc. (55,726,079) (62,568,761) Remittances to LGUs of fishpen fee share (20,016,241) (22,017,855) Payment of payables (5,250,241) (17,116,645) Return of unutilized balance of DAP to the National Government 0 (3,600,994) Net cash provided by operating activities 152,272,405 25,124,738

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds of investment from HYSA 23,808,923 (20,306,176) Refund of Meralco Guaranty Bond 376,447 0 Proceeds from sale of unserviceable properties 35,000 506,000 Payment to contractors (7,923,562) (26,418,952) Capital expenditures (1,666,101) 0 Net cash provided by (used in) investing activities 14,630,707 (46,219,128)

CASH FLOWS FROM FINANCING ACTIVITIES Payment of dividends (8,141,579) (23,108,865) Net cash used in financing activities (8,141,579) (23,108,865)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 158,761,533 (44,203,255) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 298,851,766 343,055,021

CASH AND CASH EQUIVALENTS AT END OF THE YEAR 3 457,613,299 298,851,766

See accompanying Notes to Financial Statements.

7 LAGUNA LAKE DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS

1. CORPORATE INFORMATION

The Laguna Lake Development Authority (LLDA) was organized in 1966 by virtue of Republic Act No. 4850, as amended by Presidential Decree No. 813 issued in 1975 and Executive Order (EO) No. 927 issued in 1983. It was created as a quasi-government agency with powers and functions of a corporation.

LLDA’s mandate is to promote and accelerate the development and balanced growth of the Laguna Lake Area within the context of the national and regional plans and create policies for social and economic development, and to carry out the development of the Laguna Lake Region with due regard and adequate provisions for environmental management and control, preservation of the quality of human life and ecological systems, and the prevention of undue ecological disturbances, deterioration and pollution.

In 1993, the administrative supervision over LLDA was transferred from the Office of the President to the Department of Environment and Natural Resources (DENR) through EO 149.

The Rationalization Plan of LLDA pursuant to EO 366 dated October 4, 2004 and its Implementing Rules and Regulations dated May 11, 2005 and Memorandum Circular No. 190 has been approved per authority from the Department of Budget and Management dated June 21, 2010.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Income and Expense Recognition

Income is recognized on accrual basis except for income arising from assessments for fishpen/fishcage fees from fishpen owners/occupants which is deferred until collected, as the aquaculture industry is a high-risk venture.

Expenses are recognized on accrual basis, except for property/vehicles insurance, fees and registration which are recognized upon payment.

Receivables

Receivables are valued at their face amounts. Allowance for doubtful accounts on receivables from fishpen owners/occupants was set up in 2006 and was subsequently increased this 2016 to reflect the amount of receivables estimated to be uncollectible.

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Supplies Inventory

Cost of issued items and ending balances of supplies and materials are computed using the moving average method.

Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows:

Estimated Useful Life

(in years) Land Improvements 10 Building and Structures 30 Leasehold Improvements 30 Furniture and Other Equipment 10 IT Equipment and Software 5 Motor Vehicles 7

3. CASH AND CASH EQUIVALENTS

This account consists of the following: 2016 2015 Cash in Bank Local Currency-Savings 367,602,880 243,295,143 Local Currency-Checking 89,417,168 53,001,747 Cash with Collecting Officers 264,388 2,404,451 Cash with Disbursing Officers 229,554 81,634 Petty Cash Fund 99,309 68,791 457,613,299 298,851,766

Cash in Bank Local Currency-Savings pertains to High Yield Savings Accounts (HYSA) with interest rates ranging from 1.200 to 1.500 per cent and with maturities of 80 to 181 days from purchase. These deposits do not have any restrictions and any withdrawal prior to maturity date will only cause the reversion of the account to a normal savings account.

Cash with Collecting Officers pertains to collections on hand for the day which will be deposited immediately on the next banking day.

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The overall increase in Cash and Cash Equivalents was brought about by the increase in collections and as well as the proceeds from the maturity on LLDA’s investment in treasury bills which matured last January 2016 and was subsequently deposited in a HYSA.

4. RECEIVABLES

This account consists of the following: 2016) 2015) Accounts Receivable-Fishpen Owners/Occupants 80,663,805) 83,980,539) Allowance for Doubtful Accounts (64,967,987) (24,967,987) 15,695,818) 59,012,552)

Loans Receivable Provinces of Rizal and Laguna 631,054) 0) Others 12,901,313) 13,101,313) Allowance for Doubtful Accounts (12,164,418) (12,101,313) 1,367,949) 1,000,000)

Other Receivables 560,578) 562,577) Allowance for Doubtful Accounts (362,768) (362,768) 197,810) 199,809) ) Receivables-Disallowances/Charges 6,527,019) 7,416,015) Interest Receivable 498,617) 463,737) Due from Officers and Employees 406,766) 404,736) 7,432,402) 8,284,488) 24,693,979) 68,496,849)

Accounts Receivable-Fishpen Owners/Occupants includes accumulated assessments for fishpen/fishcage fees and lake water use regulatory fees including surcharges. An allowance for doubtful accounts of P64,967,987 was provided on receivables deemed to be uncollectible. The increase in the allowance was charged against the Other Deferred Credits account, the account used in the setup of the receivables. Income is recognized only upon collection (Note 15). The income recognized is net of the shares of the Laguna de Bay Lakeshore Local Government Units.

Loans Receivable-Provinces of Rizal and Laguna represents the LLDA counterpart funds to the Joint Livelihood Development Project with the Provinces of Rizal and Laguna in the amount of P381,054 and P250,000, respectively, and are subject to

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annual interest of five per cent under Memoranda of Agreement both dated September 29, 1988. An allowance for doubtful accounts was provided for this account in the amount of P63,105. The fund was initially recorded as an investment but was reclassified to this account in 2016.

Loans Receivable-Others pertains largely to the loans in the amount of P12,101,313 granted to the Kapitbahayan Project in 1985 under the Laguna de Bay Fishpen Development Project (LBFDP), a foreign-assisted project. In accordance with the loan agreements, the loans were for fishcage projects. The fishcage projects were subsequently abandoned after having been destroyed by a fortuitous event. Allowance for doubtful accounts was provided for the whole amount.

The account also includes financial assistance granted to Concerned Employees of Laguna Lake Development Authority (CELLDA) Multi-purpose Cooperative as non- interest bearing loan of P1,000,000 authorized under Board Resolution No. 345, Series of 2007 and Corporate Operating Budget of CY 2009. The loan is to be recouped for 10 years beginning December 2015 as per Memorandum of Agreement. First payment in the amount of P200,000 was made on February 23, 2016.

Receivables-Disallowances/Charges includes claims from employees for disallowed payments as indicated in the Notices of Disallowance/Certificate of Settlement and Balances. Disallowances in the total amount of P4,430,248, with COA-CAO II Decision No. 2012-129 dated August 2012, are already being settled thru salary deduction starting February 2015 and ending January 2019, or over a period of five years. While, disallowances in the amount of P3,603,818, with COA Decision No. 2015-144 dated April 16, 2015 and Notice of Finality of Decision dated April 29, 2016, are as well, already being settled thru salary deduction beginning July of 2016. Demand letters will be sent to resigned/retired employees.

Due from Officers and Employees consists of receivables from employees/outsiders from sale of fishpen goods/harvest during the 1980s business operations and claims from accountable officers for cash shortages and from resigned/transferred officers and employees.

5. SUPPLIES INVENTORY

This account consists of the following: 2016 2015 Laboratory Supplies Inventory 1,452,913 1,549,583 Office & Other Supplies 345,240 797,895 1,798,153 2,347,478

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6. PREPAYMENTS

This account consists of the following:

2016 2015 Prepaid Insurance 552,607 87,904 Other Prepaid Expense 154,850 0 707,457 87,904

Prepaid Insurance pertains to the unexpired portion of the payment made to the Government Service Insurance System for the insurance premium that is valid from January to December of the following year.

Other Prepaid Expense refers to the unexpired portion of payment made for website hosting services that is valid from October 17, 2016 to October 16, 2017.

7. OTHER CURRENT ASSETS

This account consists of the following:

2016 2015 Guaranty Deposits 1,006,316 1,891,482 Other Current Assets 77,828 77,828 1,084,144 1,969,310

Guaranty Deposits consists mainly of refundable deposits made to various companies for the supply of gas and oil, communication and electrical equipment and other similar deposits.

Other Current Assets consists of the deposit on returnable containers of P27,828 and the non-interest bearing loan of P50,000. The loan refers to the investment fund shared by LLDA jointly with the Province of Laguna and the Municipality of Paete to the First Paete Multi-Purpose Cooperative, Inc. (FPMPCI) supposed to be with payback period of three (3) years without interest and collateral pursuant to Board Resolution No. 13, dated November 18, 1993. However, a collection case against the above-named cooperative has been filed on July 8, 1998 docketed as Civil Case No. 290 before the Municipal Circuit Trial Court of Paete, Laguna. Status of the case was “archived”.

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8. INVESTMENTS

This account consists of the following: 2016 2015 Financial Investments 0 20,073,619 Other Investments 0 631,054 0 20,704,673

Financial Investments pertains to investment in treasury bills with the Land Bank of the with an annual interest rate of 2.0500 per cent which matured last January 2016 and was subsequently deposited in a High Yield Savings Account.

Other Investments refers to LLDA counterpart funds to the Joint Livelihood Development Project with the Provinces of Rizal and Laguna in the amounts of P381,054 and P250,000, respectively. The accounts were reclassified to Loans Receivable in 2016.

9. PROPERTY, PLANT AND EQUIPMENT

This account consists of the following:

(Amount stated in thousand pesos)

Furniture & Building & Land & Land Motor Vehicles Other Total Structures Improvement Equipment

At December 31, 2015

Cost 308,995 35,856 97,534 5,391 447,776

Accumulated Depreciation (14,952) (33,368) (76,380) (919) (125,619) Net Book Value 294,043 2,488 21,154 4,472 322,157

Year Ended December 31, 2016

Opening Net Book Value 294,043 2,488 21,154 4,472 322,157

Additions 0 0 3,050 0 3,050

Derecognition of disposed PPE:

Cost 0 (1,025) (7,756) 0 (8,781) Accumulated Depreciation 0 922 3,790 0 4,712

Depreciation (9,250) (2,165) (1,850) (107) (13,372) Closing Net Book Value 284,793 220 18,388 4,365 307,766

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Furniture & Building & Land & Land Motor Vehicles Other Total Structures Improvement Equipment At December 31 2016

Cost 308,995 34,831 92,828 5,391 442,045 Accumulated Depreciation (24,202) (34,611) (74,440) (1,026) (134,279) Net Book Value 284,793 220 18,388 4,365 307,766

Land consists of four parcels of land located in Calauan, Laguna with a total area of 32.7842 hectares. The account does not include the following LLDA properties:

a. One parcel of land with an area of 319,057 sq.m. located in Halang, Lumban turned over after the expiration of lease contract with the National Power Corporation from year 2000 to 2004. This property is a shoreland of Laguna de Bay.

b. Two parcels of land with an area of 35,815 sq.m. and 42,210 sq.m., respectively, turned over after the expiration of lease contract with Rizal Cement Company Inc. from years 2001 to 2007. These properties were acquired by virtue of the Decision of the Court of Appeals in the case of Macario de Leon rendered in Land Registration Commission (LRC) Case No. N-9187 dated February 22, 1989. It was ruled that lots 4 and 5 form part of the Laguna de Bay.

c. Lot allocated for LLDA under Proclamation No. 725 located along East Avenue, (more or less 3,021 sq.m.) as institutionally arranged by virtue of Memorandum of Agreement between and among the DENR-NCR and LLDA signed on September 28, 2009 by the parties and approved by the DENR Secretary.

10. OTHER ASSETS

This amount represents the Project Development Fund that was created under EO 927 dated December 16, 1983. Funding is sourced from the five per cent share from fishpen fees administered directly by LLDA in the absence of a Council.

11. PAYABLES

This account consists of the following: 2016 2015 Accounts Payable 94,590,245 58,616,304 Dividends Payable National Government 8,141,579 0 Minority Stockholders 850,136 518,491 103,581,960 59,134,795

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Dividends Payable-National Government refers to the unremitted share on dividends due to the National Government for the net income of LLDA in CY 2015. The check dated December 6, 2016 representing the 50 per cent balance remitted to the Bureau of the Treasury was returned by the bank due to typographical error on the check amount.

12. INTER-AGENCY PAYABLES

This account consists of the following: 2016 2015 Due to LGUs 27,697,747 20,308,533 Due to DENR 5,320,543 5,320,543 Due to BIR 1,246,526 2,171,408 Due to GSIS 954,528 895,083 Due to Other NGAs 367,700 367,700 Due to PhilHealth 79,565 80,965 Due to Pag-IBIG 77,644 47,524 35,744,253 29,191,756

Due to Local Government Units (LGUs) pertains to the 35 per cent share of the Laguna de Bay Lakeshore LGUs on LLDA fishpen/fishcage collections pursuant to Section 3 of EO 927 and 50 per cent share of the Seven Crater Lakes of San Pablo City pursuant to LLDA Board Resolution No. 70, Series of 1998.

Due to DENR pertains to the share of DENR in the collection of Air Pollution Clearances and Permits from stationary sources within the Laguna de Bay region pursuant to the Philippine Clean Air Act of 2000 and application fees for Environmental Compliance Certificate/Certificate of Non-Coverage (ECC/CNC) pursuant to DENR Administrative Order No. 2004-61 in 2004.

Due to BIR, GSIS, PhilHealth and Pag-IBIG accounts pertain to the statutory amounts withheld by LLDA as withholding agent and/or in trust for the account of national government agencies, local government units, government-owned and/or controlled corporations and other agencies.

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13. OTHER LIABILITY ACCOUNTS

This account consists of the following: 2016 2015 Project Development Fund (Note 10) 33,000,310 29,152,188 DENR-Operational Plan for Bay Coastal Strategy 8,116,060 8,243,860 Performance/Bidders/Bonds Payable 516,273 291,867 CELLDA Multi-purpose Cooperative 217,829 236,094 Inc.-Trash Trap Project 18,009 147,185 CELLDA Contribution 90,326 25,211 Landbank Livelihood Loan 21,604 14,208 Quedancor 5,422 5,422 Others 40,162 29,289 42,025,995 38,145,324

DENR-Operational Plan for Manila Bay Coastal Strategy (OPMBCS) pertains to funds transferred to LLDA, as trust receipts subject to liquidation, for the development of a DELFT3D software Manila Bay Hydrodynamics and Water Quality Model in line with the implementation of DENR-OPMBCS. The OPMBCS is a set of plans and programs with estimated budgets and timeframe aimed to protect the waters in Manila Bay and its tributaries (Pasig River and Laguna Lake) and to ensure that they are safe from various uses.

Tanduay Distillers Inc.-Trash Trap Project pertains to the balance of the funds received by LLDA from Tanduay Distillers, Inc in CY 2015. This is in connection with the Memorandum of Agreement wherein LLDA, the City Government of , the Local Government Unit of Barangay III and Tanduay Distillers, Inc. shall implement the installation of trash trap in Cabuyao river to improve, not only the river aesthetic condition, but also to contribute to the improvement and management of the water quality in the waterways. LLDA shall refund any unutilized fund to Tanduay Distillers Inc. after the implementation of the project is completed. As of December 2016, the project was completed, however, final inspection and acceptance was done in February 2017.

Landbank Livelihood Loan pertains to payments by LLDA employees of their Landbank Taytay Livelihood Loan for remittance to LBP-Taytay Branch.

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14. LONG-TERM LIABILITIES

This account consists of the following:

2016 2015 ERDB-DENR Research and Investigation of Janitor Fish 270,780 270,780 Ernel Barrios-Technical Consultant, Laguna Lake Primary Productivity 66,000 66,000 City of Cabuyao, Laguna-Trash Trap Project 100,000 0 Barangay Tunasan, City of Muntinlupa 150,000 0 586,780 336,780

City of Cabuyao, Laguna-Trash Trap Project refers to the commitment/share of LLDA as stipulated in the Memorandum of Agreement signed by LLDA, the City Government of Cabuyao, Laguna, the Local Government Unit of Barangay III and Tanduay Distillers, Inc. to implement the installation of trash trap in Cabuyao river to improve, not only the river aesthetic condition, but also to contribute to the improvement and management of the water quality in the waterways. The project was completed in December 2016 with balances due to the contractor.

Barangay Tunasan, City of Muntinlupa pertains to the obligation committed by LLDA as stipulated in the Memorandum of Agreement between LLDA, the City Government of Muntinlupa, the Local Government Unit of Barangay Tunasan and the Muntinlupa River Rehabilitation and Protection Council (MRRPC) to implement river protection interventions, particularly the installation of trash traps in Tunasan River. The project will be carried over in 2017.

15. DEFERRED CREDITS

This account consists of the following: 2016 2015 Fishpen/Fishcage Fees 22,406,821 59,320,361 Contingent Surplus 8,519,655 7,572,156 MWCI and MWSI 0 3,150,000 Miscellaneous Overpayments 51,206 33,290 30,977,682 70,075,807

Deferred Credits-Fishpen/Fishcage Fees is a contra account of Accounts Receivable- Fishpen Owners and Occupants which was set up starting CY 2007. Upon collection of the receivables, this account is closed and income is recognized. The decrease is due to

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the recognition of Allowance for Doubtful Accounts on receivables deemed uncollectible which were recognized in the books through this account. (Notes 2 and 4).

The deferred credits referring to Manila Water Company, Inc. (MWCI) and Maynilad Water Services, Inc. (MWSI) pertains to advance payment for water abstractions from Laguna de Bay by MWCI and MWSI. The account was closed upon completion of service last July 2016.

16. PERMITS AND LICENSES

This account consists of income from the following:

2016 2015) Permit Fees 75,217,291 62,741,738 Fishery Rental Fee 46,236,831 34,748,053 Fines and Penalties - Permits and Licenses 12,715,189 13,569,122 Other Permits and Licenses 1,426,432 2,010,157 135,597,743 113,069,070

17. SERVICE INCOME

This account consists of income from the following:

2016 2015 Fines and Penalties-Service Income 74,813,829 33,085,829 Clearance and Certification Fee 40,302,302 24,633,548 Seminar Fee 15,952,351 12,606,578 Processing Fee 1,301,557 10,363,380 Other Service Income 2,464,920 2,432,465 134,834,959 83,121,800

Fines and Penalties - Service Income pertains substantially to collection of Daily Penalties (P10,000 for every day of violation) imposed on commercial/industrial establishments and agro-based industries with resolved water pollution cases and issued with the corresponding resolution to pay.

Clearance and Certification Fee consists of collections from the issuance of LLDA Clearance, Certificate and Authentication, Result of Laboratory Analysis (ROLA) and accreditation of Pollution Control Officers.

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18. BUSINESS INCOME

This account consists of the following:

2016 2015 Rent Income 1,546,654 1,569,067 Sales Revenue 4,800 4,000 Fines and Penalties 0 115,046 Other Business Income 26,467,174 18,040,968 28,018,628 19,729,081

Other Business Income pertains substantially to income realized from the water abstractions from Laguna de Bay by MWCI and MWSI.

19. OTHER INCOME

This account consists of the following:

2016 2015) Interest Income 3,770,218 3,206,313 Dividend Income 1,890 0 Miscellaneous Income 624,495 908,844 4,396,603 4,115,157

Interest Income pertains to interest earned from High Yield Savings Account, treasury bills and bank deposits.

Dividend Income pertains to dividend earned from Meralco for guaranty deposits.

20. PERSONNEL SERVICES

This account consists of the following:

2016 2015) Salaries and Wages 58,404,680 53,627,937 Other Compensation 33,751,670 27,824,440 Personnel Benefits Contribution 8,255,951 7,518,762 Other Personnel Benefits 3,901,995 3,719,108 104,314,296 92,690,247

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21. MAINTENANCE AND OTHER OPERATING EXPENSES

This account consists of the following:

2016 2015) Professional Services 21,877,475 19,768,203 Depreciation 13,371,978 13,930,837 Supplies and Materials 11,398,640 9,064,063 Training and Scholarship 8,526,891 6,755,574 Utility 3,246,823 2,482,501 Repairs and Maintenance 2,270,880 2,243,035 Representation 1,536,711 504,700 Communication 1,426,211 1,187,298 Taxes, Insurance Premiums and Other Fees 1,015,377 1,303,688 Traveling Expenses 631,652 511,780 Rent 605,989 624,554 Extraordinary and Miscellaneous 211,000 184,127 Advertising 197,825 128,944 Printing and Binding 179,630 383,753 Subscription 85,577 102,348 Membership Contribution 80,000 80,000 Bad Debts Expense 63,105 0 Rewards and Other Claims 0 32,084 Subsidies and Donations 0 5,000 Other Maintenance and Other Operating Expenses 9,808,641 9,651,170 76,534,405 68,943,659

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22. PAID-UP CAPITAL

The Authority’s capital stocks are as follows:

2016 2015 Ordinary Shares, P100 par Authorized – 4,900,000 shares Issued and Fully Paid – 93,169 shares 9,316,900 9,316,900 Subscribed – 2,995,678 shares (Subscriptions Receivable amounting to P9,310,219 in 2016 and 2015) 290,251,565 290,257,581 299,574,481 299,574,481

Preference Shares, P100 par Authorized – 2,100,000 shares Issued and Fully Paid – 6,393 shares 639,300 639,300 Subscribed – 776,178 shares (Subscriptions Receivable amounting to P5,239,085 in 2016 and 2015) 72,384,731 72,378,715 73,018,015 73,018,015 Total Paid-up Capital 372,592,496 372,592,496

Out of the LLDA’s total paid-up capital of P372,592,496 as of December 31, 2016, the amount of P358,552,881 (96.23 per cent) pertains to the account of the National Government (NG), while the remaining capital (3.77 per cent) refers to the shares of Philippine National Construction Corporation (PNCC) and various LGUs and private shareholders as follows: Ordinary Preference

National Government 285,820,500 72,732,381 358,552,881 PNCC 112,280 84,420 196,700 Various LGUs 13,315,684 0 13,315,684 Various private shareholders 326,017 201,214 527,231 299,574,481 73,018,015 372,592,496

23. CONTINGENT ASSETS

The Authority, as mandated by RA 4850, shall have the sole and exclusive jurisdiction over water pollution control and aquaculture cases, shoreland matters within the territorial jurisdiction of the Laguna de Bay Region, including the imposition of penalties, administrative fines and other sanctions, except as otherwise provided by special laws.

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Regular elevation of certain cases in court and other concerned government agencies is being done by the Authority for the filing of appropriate civil action or for resolution by the government agencies in cases where establishments refuse or fail to pay adjudged fines and penalties.

Since the ultimate outcome of the cases cannot presently be determined and not wholly within the control of the Authority, claims for asset that may result have not been recognized in the financial statements.

The list of LLDA cases with the LLDA Legal and Adjudication Division as of December 31, 2016 and 2015 are as follows:

As of December 31, 2016 As of December 31, 2015 No. of No. of Cases Amount Cases Amount Under appeal 11 10,554,000 11 10,554,000 Dismissed cases 1169 53,296,720 672 18,355,449 Pending cases 4,094 90,388,489 3,557 102,909,760 Total 5,274 154,239,209 4,240 131,819,209

Pending cases are those that are already docketed with the Authority’s Public Hearing Committee, a committee under the Legal and Adjudication Division of LLDA whose main function is to exercise the Authority’s quasi-judicial powers. The respondents in these cases are those establishments within the territorial jurisdiction of LLDA which have violated the rules and regulations issued by the Authority such as but not limited to water pollution cases and operating without an LLDA clearance or license. This also includes cases with resolutions to pay but most are with motions for reconsideration and appeals for reduction of payment, hence, subject for further evaluation.

24. SUPPLEMENTARY INFORMATION REQUIRED UNDER BIR REVENUE REGULATIONS 15-2010

In compliance with the requirements set forth under BIR Revenue Regulations 15-2010, hereunder are the information on taxes and license fees paid during the year:

1) Income Tax Income Tax for CY 2016 amounted to P34,229,704 based on the Net Profit before Income Tax of P117,901,755.

2) Withholding Taxes a) Tax on compensation 9,023,793 b) Creditable withholding tax 1,132,838

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c) Final withholding tax 1,650,982

3) Schedule of Other Taxes a) Local  Community Tax Certificate (CTC) 10,500  Real Property Tax 67,310 b) National  BIR Annual Registration 500

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