TABLE OF CONTENTS
TABLE OF CONTENTS
VISION, MISSION COMPLETED PROJECTS 01 CORE VALUES 11 MESSAGE OF THE OPERATIONAL CHAIRMAN OF THE BOARD 03 HIGHLIGHTS MESSAGE OF THE GENERAL MANAGER 14 04 ORGANIZATIONAL 06 YEAR 2016 HIGHLIGHTS 15 STRUCTURE Corporate Social NOTES TO 8 Responsibility Programs 16 FINANCIAL STATEMENTS
ABOUT THE COVER
The cover shows Metropolitan Cebu Water District (MCWD) soaring to new heights as it unveiled this year two major technological advances in water supply management. Highlighting Metro Cebu’s continued boom in tourism and economy, MCWD’s P100-million fully mechanized Septage Treatment Plant (STP) in Barangay San Miguel, Cordova is symbolic of the water district’s commitment to promote environmental protection in its service area. A first in the Visayas, the STP will change lives for the better as septic waste will now be collected and treated properly with by-products of wastewater and biosolids ready for Department’s Engr. Edgar Ortega, Engr. Michael Diola reuse. and Ariston Cabahug—at the helm. In the back cover, The SCADA system, which allows sensors to send the P600-million data from 90% of MCWD’s supply sources to the main Supervisory Control and office, gives real-time information useful for water Data Acquisition system distribution efficiency and improving customer service. is featured with in-house Photo by CRISANTO ETORMA experts—Production
© Page Layout & Design by : CAMPO SANTO DESIGN STUDIO Unit 1, 3rd Floor, Coast Pacific Downtown Center, Sanciangko St., Cebu City, Philippines VISION the workplace and elsewhere. Genuine selflessness will be our prime motive for doing our MCWD envisions itself to be a progressive and economically work. This means that we principally desire to be a valuable service viable utility firm that provides adequate, safe, potable to people, and not to do our work simply because of what we can and affordable water and an effective sewerage system for get in return. Metro Cebu. Avoid all use of influence and connections to get undue favors for oneself or for others, and refuse to influence one another negatively. Let us encourage a lifestyle that is truly respectful of a person’s dignity. MISSION Reject all use of MCWD resources and time for our own personal convenience and financial benefit. We are committed to undertake continuing exploration and development activities, aimed at the preservation Loyalty to our Institution and sustainability of our water resources. We must always adhere to sound practices in preserving our natural Rooted in the intrinsic values of our corporation worthy of our environment. love and pride. Let us align our personal goals with the corporate goals of Our capability to provide proper services must continuously MCWD. It would be a disservice for any employee of MCWD to use improve by designing and managing the growth of undue influence which is in conflict with the corporate goals. infrastructure in an innovative, timely, safe and cost- Deep concern about the image of MCWD must characterize effective manner and conforming to internationally our behavior at all times. We must strive to contribute to the good accepted standards. image of MCWD by doing our work selflessly with competence and integrity. We shall operate and maintain our facilities in an optimal Loyalty to our institution leads us to be mutually supportive manner, making total quality an integral part of our of all employees and departments of MCWD with no exception performance. whatsoever. It is then indispensable to nurture a highly-motivated Professionalism workforce, with a strong spirit of collaboration, deeply committed to professionalism, and firmly focused on Based on a belief that our God-given talents must be made productivity. to grow and be constantly improved so that we may be of better service to people. The workforce shall be upheld and inspired by a competent It is our personal responsibility to build our own competence management team dedicated to the common good of by working hard and demanding a lot from ourselves, seeking to MCWD. upgrade our skills and learn from our mistakes. Let us create and maintain a culture where respect for work standards is paramount and where we help one another in striving All these tasks must be accompanied by sound and prudent for excellence. financial management with overriding goal of providing better services to the people of Metro Cebu. Focus on Performance Linked to our ideal that it is through excellence in our performance that we best serve people. CORE VALUES We must find pride and meaning in our own work, principally because we have worked productively, constantly conscious of the To attain our vision through the fulfillment of our standards we have set for ourselves. mission, we must establish a corporate culture deeply Let us instill a sense of urgency in all that we do. We will fight characterized by our core values. Everything that we do against all forms of procrastination. This will require that we take in the office and in the field on a day-to-day basis must be timely and adequate initiative in all our efforts. imbued by the force of these core values: Conscious of the need for goal setting at all levels of the organization, we need to be forward-looking and review our goals often. Spirit of Service Stability in Unity Anchored in the belief that our major reward in work consists in making people happy because we serve them Founded in the knowledge that our organization will be firm well. and strong, anchored in the spirit of solidarity by which we all Let us be accessible to all our customers and serve strive to contribute to the good of all. them with sincere and honest attention. The strength of an organization is found principally in the Our spirit of service must go beyond responding to united power of people. We will foster an atmosphere of genuine the customers’ complaints by providing them with prompt trust and confidence in one another based on building competence service and accurate information. and instilling integrity within the organization. Open and honest communication shall likewise be encouraged. Moral Integrity A sense of fairness and justice would guide all our actions and thoughts. This requires a firm respect for the rights of everyone Built on the reality that human dignity and happiness without exception. We must avoid all forms for envy and greed. are essentially linked to the practice of moral values in MCWD ANNUAL REPORT 2016 1 MESSAGES Message A MESSAGE I consider this year as a very lucky year for MCWD because we received aid FROM THE “ “from the Japanese Government through CHAIRMAN the Japan International Cooperation Agency (JICA) and also from Vitens OF THE BOARD Evides International (VEI), a corporate social responsibility arm of two big water RENATO E. MERCADO companies in The Netherlands.
” I congratulate each and every employee of the Metropolitan Cebu Water District (MCWD) for a job well done in 2016. I would like also to thank everyone for giving their best and for raising the bar of corporate performance amidst the many challenges that confronted us along the way for the betterment of public service. All of us know that Cebu is a favorite destination of investors as evi- denced by the sprouting of different business establishments almost every- where. While we embrace such economic development, we are very much aware that the demand for more water has also been increasing. Thus, MCWD set its priority on exploring more water sources especially in the south area and, at the same time, it has welcomed bulk water suppliers. In line with meeting targets, the implementation of expansion projects were hastened to catch up with the demand as there are hundreds of water service connection applications received and processed each month. To date, we are serving 50 percent of the residential consumers and 60 percent of the commercial consumers within the service area. MCWD is aiming to increase its demand coverage significantly by 2020. As the year ended, the water dis- trict had a total of 175,000 registered service connections. I consider this year as a very lucky year for MCWD because we re- ceived aid from the Japanese Government through the Japan Internation- al Cooperation Agency (JICA) and also from Vitens Evides International (VEI), a corporate social responsibility arm of two big water companies in The Netherlands. JICA turned over to MCWD some equipment to make the water dis- trict more resilient during disasters. There were mobile siphon tanks (MSTs) and a sand washer worth P33 million. These were used to provide potable water to victims of Typhoon Yolanda in Daanbantayan, Cebu and affected residents of mountain barangays in Cebu City hit by the El Niño phenomenon. Then the Supervisory Control and Data Acquisition (SCADA) equip- ment, worth P679 million that was acquired through a grant, is now op- erational. The SCADA system will greatly help the water district in its water supply management efficiency and at the same time, in lowering its the non-revenue water rate. According to JICA, MCWD is one of the best among the water districts in the Philippines. Thus, we deserved to receive such grant and I am very grateful to JICA for this. On the other hand, VEI, which partnered with MCWD, the Cebu City Government, the Netherlands Red Cross and French non-government or- ganization Eau et Vie, spent some P15.8 million for expansion projects in Barangays Kinasang-an, Basak-San Nicolas and Inayawan in Cebu City for families who cannot afford to pay for an MCWD water connection. As soon as these projects will be completed, thousands of households will benefit from improved access to potable, reliable and affordable water. Another highlight of the year is that MCWD is now compliant with the Clean Water Act of 2004. The Septage Treatment Plant (STP) in San Miguel, Cordova is already operational. MCWD, with its business partner Envirokonsult Services Inc., started the desludging services in the baran- gays of Cordova as the pilot area in August followed by the barangays in Lapu-Lapu City the following months. Lastly, I thank all of our consumers, stakeholders and partners in government for their continued support and for standing with us from the beginning up to this time. With God’s grace, I hope that MCWD will remain strong and will continue to serve the people of Metro Cebu for another forty one years and more. God bless and more power!
MCWD 2 ANNUAL REPORT 2016 MessageMESSAGES A MESSAGE Over the years, MCWD has always been optimistic in FROM THE “setting its targets, but factors, inside and outside MCWD, general manager derailed some developments. Noel R. Dalena
I take pride and pleasure in serving Metropolitan Cebu Water District ” (MCWD) as acting general manager for a couple of years now. It has never been an easy ride. Although there were some worthwhile moments, the challenges, however, affected our performance. It has been rewarding for me that two major projects were in full swing in 2016. First, the Japan Government through the Japan International Cooperation Agency (JICA) turned over in September the P670 million-worth Supervisory Control and Data Acquisition (SCADA) system to MCWD to improve the water district’s water supply management. Second, MCWD’s Septage Management Program (SMP) was also in full opera- tion in August 2016. The program has been implemented in coordination with the Lapu-Lapu City Government and the Municipality of Cordova, Cebu. With the aim of protecting the environment, particularly the water sources, this program involves the desludging of the septic tanks of MCWD-registered customers and even non-MCWD customers to manage the pollution of groundwater sources and water bodies. We have managed to pull off these huge projects because our priority is to deliver our mandate of providing adequate, safe, potable and affordable water to our customers and to the general public as well. However, we also had our share of challenges in the course of our day-to-day operation. Over the years, MCWD has always been optimistic in setting its targets, but factors, inside and outside MCWD, derailed some developments. MCWD’s production was largely affected by the long dry spell caused by the El Niño phenomenon in 2016. MCWD felt the effects of the dry spell when the production of some of the in-house sources fell sharply compared to the produc- tion during normal weather conditions. It was in the second quarter that the production plummeted significantly. The Jaclupan wellfields had its lowest production of the year from April to June by delivering an average of 14,828 cu.m. per day with May having the lowest with only 7,803 cu.m produced per day. In effect of the reduced production in the middle of 2016, consumption of residential and commercial connections also decreased significantly. This affect- ed the water sales for the year which was 164,525 cu.m per day compared with the target of 183,059 cu.m per day. The number of billed service connections reached only a total of 176,772 which is lower than the target of 189,555. Mainline leaks brought forth a high percentage of Non-Water Revenue (NRW) the bulk of which is in the northern Metro Cebu area. In 2016, NRW was 0.47 percent high- er than the target of 22.50 percent. Our goal is to lower the NRW to 15 percent in 2020. Recovery, however, was fast in the second half of the year. MCWD continues to explore additional sources in the south, mainly in Bula- cao, Cebu City, Talisay City and Minglanilla areas. We poured P160 million for expansion projects to boost supply in the north area of Cebu. Some of these projects are grinding slow and are not yet completed on the dates expected because of the limitations in acquiring excavation permits and right-of-way, among other concerns. But it was still a productive year as the water district’s achievements in 2016 showed a better performance vis-à-vis the actual accomplishments in the previous year. I always believe that hard work, dedication and commitment to do the task at hand are the components needed for MCWD to achieve its corporate goals. 2016 was indeed a challenging year for MCWD but it is our courage to con- tinue serving that counts.
MCWD ANNUAL REPORT 2016 3 2016 HIGHLIGHTS
MAR FEB Water supply drops in March due to El Niño phenomenon MCWD celebrates 41 st year MCWD promotes with simple program #ReuseYourJeans for Mandaue holds public hearing on World Water Day septage management ordinance Expansion projects JAN MCWD presents water supply to meet 2020 targets situation in RDC meeting announced Japan turns over P33-M worth mobile Engr. Raul Tabasa, Atty. Jorge Gabriente siphon tanks, sand washer to MCWD are named as acting group heads Atty. Procopio Fernandez joins MCWD presents Septage Man- MCWD’s Board of Directors agement Program to Cordova barangay captains WORLD WATER DAY 2016. MCWD hosts a press conference in time for the WWD celebration on March 22 with representatives from the Department of Agriculture (DA) Ms. Marina Hermoso (2nd from right) and the Philippine BLESSING. Rev. Marcelino Galvan III AWARDEES. Employees who have Atmospheric, Geophysical and blesses the truck-mounted mobile served their milestone years Astronomical Services Administration siphon tank (MST) which the Japan (PAG-ASA) Visayas Chief, Engr. Oscar International Cooperation Agency (JICA) with the water district were given recently turned over to Metropolitan recognition during the anniversary. Tabada (middle). Cebu Water District (MCWD). The event was witnessed by MCWD General Manager Noel Dalena (center), JICA representatives and other MCWD officials. AUG SEP MCWD officials pay courtesy JUL call to new Mandaue City, Liloan mayors MCWD orients Cordova, Lapu- MCWD joins Lapu City residents on Septage MCWD buys 3 new 10-cubic international Management Program meter water trucks workshop on water Over 1,300 Cebu City households governance Desludging services in Cordova, get MCWD access under Lapu-Lapu begin Netherlands grant MCWD receives P679-M Daily production normalizes Supervisory Control and Data due to rains Acquisition system from Japan MCWD supplies water to low- MCWD, Vitens Evides cost housing site in Talisay International launch COURTESY CALL. MCWD officials, projects in Cebu City led by Acting GM Noel Dalena, pose with Liloan newly-elected Mayor DBP grants P6-M loan to MCWD Christina Garcia Frasco and Vice Mayor Vincent Franco Frasco (fourth and fifth from left respectively) during a courtesy visit.
The dewatering machine of the MCWD Septage Treatment Facility in Cordova.
MCWD 4 ANNUAL REPORT 2016 2016 HIGHLIGHTS
APR JUN
MCWD applies for P1-billion MCWD commissions new well in grant for additional 3 septage Cabancalan, Mandaue City treatment plants Consumers in elevated, interior Work on Mandaue-Mactan areas urged to store water amid MAY bridge pipe support starts supply shortage Board of Directors approves MCWD mentors engineers Customer Accounts Policy from Bangladesh MCWD gets ‘good’ rating for Anti-Red CMWD delivers additional 5,000 cubic Tape Act compliance meters per day to meet 29,000 cu. m. per day target
MOA. Cebu Archbishop Jose Palma (left) lead VOICE OF THE YOUTH. the signing of the memorandum of agreement Members of Group 4 present for the planting of 13,500 seedlings under the qualities of a good leader the Tree Growing in partnership with MCWD, MORE WATER. Officials (From left) Mandaue City that the youth should vote for: Archdiocese of Cebu, DENR, CUSW and USJR. Mayor Jonas Cortes, Gabino Abejo Jr. of Abejo a leader must be like water – Together with Palma are Cebu Auxiliary Bishop Waters Corp. (AWC), Casuntingan Barangay fluid, flexible and transparent. Dinners Villarojo, IEC secretary general; Engr. Captain Oscar del Castillo, Tingub Barangay Andres Muego, President of the Cebu Uniting Captain Randy Pareja, MCWD Acting General for Sustainable Water (CUSW) and MCWD Manager Engr. Noel Dalena and Sun Star Cebu’s Acting General Manager Noel Dalena. Elias O. Baquero check the blow off pipe of the MCWD-AWC bulk water supply.
OCT DEC
MCWD holds Septage Management MCWD receives Civil Service Program forum with key accounts Commission award for Human Resource management “Tubig pa More” program NOV launched in Compostela 27 gensets acquired for improved disaster resiliency Talisay, Liloan residents get MCWD consults Jaclupan residents more water on removal of trees from river MCWD implements Customer Accounts Policy Customer Accounts Policy presented to MCWD frontliners
WELCOME MESSAGE. Jaclupan Barangay Captain Joel Orbiso CSC AWARD. Acting GM Noel Dalena (standing) delivers his welcome (center) together with AGM for message during the public hearing Administration Ma. Rowan Teñedo (sixth FORUM. A Key Account representative from right) and HRD personnel proudly asks as to how much is the service on the removal of trees in MCWD’s Jaclupan facility. receive the award from the Civil Service charge for a household in case he will Commission 7 Acting Regional Director avail of the MCWD’s desludging services. Editha D. Luzano (fourth from right) for having passed the assessment and audit on HR management competencies, systems and practices toward HR excellence. (contributed photo)
MCWD ANNUAL REPORT 2016 5 CSR PROGRAMS
MCWD gives free water to Sinulog Free water for Lapu-Lapu Free water for Devotee participants, spectators City fire victims City occupants
SINULOG HEAT. Devotees of the Sto. Niño get free FREE WATER. MCWD provides free water for out- FREE WATER. Lapu-Lapu City fire victims were of-towners in the Devotee City located at the potable water from Metropolitan Cebu Water District given free water for one month by Metropolitan (MCWD) during the Solemn Foot Procession. entrance of the South Road properties for their Cebu Water District. drinking, cooking, washing and bathing.
Free water during Green Thumb Free water for Lahug, Free testing of water in Cebu at Plaza Independencia Cebu City fire victims schools
WATER TEST. Thomas Albertos Alfonso of the FREE WATER. Lahug fire victims enjoy free water MCWD Laboratory takes water sample from a Free drinking water. Green Thumb Coalition for one month from the Metropolitan Cebu Water faucet of the Cebu City Central School drinking encouraged participants to bring their own water District. station as Ms. Lyra Illaga, school principal, containers and avail of MCWD’s free potable drinking looks on. water. MCWD 6 ANNUAL REPORT 2016 CSR PROGRAMS
MCWD gives 13,500 MCWD celebrates Earth 6,000 seedlings released as tree seedlings to church Day with kids for pocket forests planting season starts
TREES FOR THE FUTURE. ABS CBN Reporter Carine TREE GROWING. Cebu Archbishop Jose Palma TEACHING CHILDREN. Lawyer Gloria Estenzo- Asutilla-Lapid explains to her daughter how to plant (left) leads the signing of the memorandum Ramos, an environmentalist, reads the story of a seedling during the TV station’s tree planting of agreement for the planting of 13,500 trees Lilay before the children of MCWD employees in activity in Barangay Pung-ol, Cebu City. in pocket forests in Cebu in order to replace a read a-long activity for the celebration of Earth the felled trees during the construction of Day. the International Eucharistic Congress (IEC) Pavilion. With Palma are Cebu Auxiliary Bishop Dennis Villarojo, secretary general of the IEC; KBP partners with MCWD Engr. Andres Muego, President of the Cebu for Broadcasters’ Halad sa Kapamilya Uniting for Sustainable Water (CUSW) and Month activity Metropolitan Cebu Water District (MCWD) Acting General Manager Noel Dalena.
TV network employees plant seedlings
Free drinking water. MCWD joins Halad sa Kapamilya
VOLUNTEERS. ABS-CBN’s TV Patrol Central Visayas reporters pose for a group picture PARTNERS. Kapisanan ng mga Brodkaster before they proceeded to the plant site. ABS- ng Pilipinas-Cebu Chapter chairman Victor CBN is a regular partner of MCWD in its Maria Toledo smiles as he and MCWD tree-growing program. Community Relations and External Affairs Manager Charmaine Rodriguez-Kara open Broadcastreeing, an annual activity of the KBP nationwide in celebration of Broadcasters’ Month. KBP is a regular partner of MCWD in its tree-growing program. MCWD celebrates Global MCWD, VEI hold handwashing Handwashing Day with school kids
HANDWASHING DAY. MCWD Community Relations and External PROPER HANDWASHING. Patrick Egan, Viten Evides International Affairs (CREAD) Department’s Charmaine R. Kara (center) and Joy project director, and Joy Ventic teach school kids of Inayawan Ventic (2nd from left) teach school kids of Mactan Elementary Elementary School the proper way of washing their hands during School the proper way of washing their hands as part of the water a handwashing activity in the school. district’s celebration of the Global Handwashing Day.
MCWD ANNUAL REPORT 2016 7 PROJECTS MCWD implements P160M projects in 2016 To serve more consumers, the Metropolitan Cebu Water District (MCWD) implement- ed and completed more than P160-million worth of infrastructure projects this year. These projects were situated in the north of the service area or Hydraulic Area 1 (HA1) which includes Compostela, Liloan, Consolacion, Mandaue City, Lapu-Lapu City and Cordova.
A. Expansion /Development Projects
Pipelines expansion under Hydraulic Area 1 Package 2 Consolacion & Liloan, Cebu P31,133M date started: April 14, 2015 date completed: Sept. 21, 2016 Septage Treatment Plant Site Development at MCWD P0.818M property in San Miguel, Cordova date started: May 24, 2016 date completed: Aug. 22, 2016
Pipelines expansion under Hydraulic Area 1 Package 7 in M. Quezon and Babag, Lapu-Lapu City P36.337M date started: Sept. 10, 2015 date completed: Aug. 24, 2016
Construction of Man-1 Pumping Station for the MCWD P5.739M In-House Water Sourcing Program in Sitio Pilit, Brgy. date started: July 6, 2014 Cabancalan, Mandaue City date completed: May 6, 2016
Pipelines expansion for Cabancalan Bulk Water Supply Cabancalan, Mandaue City P16.744M date started: April 28, 2010 date completed: Feb. 29, 2016
Pipelines expansion under Hydraulic Area 1 Package 4 Mandaue City and Lapu-Lapu City P58.173M date started: April 15, 2015 date completed: Feb. 15, 2016
MCWD 8 ANNUAL REPORT 2016 PROJECTS
B. Rehabilitation Projects P5.965M date started: April 1, 2016 Rehabilitation of Pipe Support at Old Mandaue-Mactan Bridge date completed: Aug. 17, 2016
200mm x 454.0 LM Pipelines Rehabilitation Project Pulpogan, Consolacion P4.998M date started: dec 1, 2014 date completed: May 31, 2016 Pipelines Rehabilitation Project Brgy. Pajac, Lapu-Lapu City P6.585M date started: Aug. 12, 2015 date completed: may 11, 2016
C. On-going Projects
1. Proposed pipelines rehabilitation project at P11,408,417.82 Landing, Catarman, Liloan date started: Sept. 30, 2016
2. Proposed pipelines expansion under Vitens Project P4,153,808.57 at Murillo St., Inayawan, Cebu City date started: Aug. 8, 2016
3. Proposed pipelines expansion under Vitens P1,251,493.18 Project at B. Ceniza St., Mandaue City date started: July 13, 2016
4. Proposed pipelines expansion under Vitens P3,124,806.59 Project at Tangke, Talisay City date started: July 13, 2016
5. Proposed pipelines expansion under Vitens P4, 120, 143.80 Project at Villa Pacita, Inayawan, Cebu City date started: July 13, 2016
6. Proposed design and construction of 1,000 cu.m. P16,335,113.08 Modular Water Tank at Oprra, Cebu City date started: June 23, 2016
7. Proposed pipelines expansion under Vitens P7,154,366.59 Project at Jansen, Basak, San Nicolas date started: June 6, 2016
8. Proposed pipelines expansion under Vitens Project P4,090,648.03 at Lower Greyhound, Kinasang-an, Pardo, Cebu City date started: June 1, 2016
9. Proposed pipelines expansion under Salintubig P8,017,150.29 Project at San Miguel, Cordova date started: june 1, 2016
10. Proposed pipelines expansion under HA1 Package P65,115,509.93 8 (corner Poblacion Cordova to corner Basak- date started: march 4, 2016 Marigondon Road, Lapu-Lapu City)
11. Proposed pipelines expansion under P100,237,800.00 Hydraulic Area 1 Package 5 (Brgy. Pajo and date started: Feb. 15, 2016 Pusok, Lapu-Lapu City)
MCWD ANNUAL REPORT 2016 9 OPERATIONAL HIGHLIGHTS
LEGEND
PRODUCTION
WATER SALES
No. of SERVICE OPERATIONAL CONNECTION
NON REVENUE WATER (NRW) HIGHLIGHTS 2016
INDICATORS
2016 ACTUAL 214,095 164,525 176,772 22.97% 2016 TARGET 236,261 183,059 189,555 22.50% VARIANCE -22,166 18,534 -12,783 -0.47% 2015 ACTUAL 212,722 162,627 170,655 23.33% VARIANCE 2015 VS 2016 1,373 1,898 6,117 0.36%
OPERATIONAL HIGHLIGHTS QUARTERLY REPORT 2016
INDICATORS
2016 ACTUAL FIRST QUARTER 213,128 162,025 172,184 23.07% 2015 ACTUAL 219,257 159,976 164,467 26.13% FIRST QUARTER VARIANCE 2016 VS 2015 -6,129 2,049 7,717 3.06%
MCWD 10 ANNUAL REPORT 2016 OPERATIONAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS QUARTERLY REPORT 2016
INDICATORS
2016 ACTUAL SECOND QUARTER 197,863 159,232 173,835 19.91% 2015 ACTUAL 202,395 159,940 166,901 22.26% SECOND QUARTER VARIANCE 2016 VS 2015 -4,532 708 6,934 2.35%
INDICATORS
2016 ACTUAL 221,337 168,644 175,200 22.51% THIRD QUARTER 2015 212,257 164,506 169,145 21.48% ACTUAL THIRD QUARTER VARIANCE 7,865 4,138 6,055 -1.03% 2016 VS 2015
INDICATORS
2016 ACTUAL FOURTH QUARTER 225,080 165,688 176,772 26.05% 2015 ACTUAL 217,008 165,972 170,655 23.36% FOURTH QUARTER
VARIANCE 8,072 -284 6,117 -2.69% 2016 VS 2015
MCWD ANNUAL REPORT 2016 11 ORGANIZATIONL CHART
MCWD 12 ANNUAL REPORT 2016 FINANCIAL STATEMENTS
METROPOLITAN CEBU WATER DISTRICT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
For the Years Ended 2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES Net income before income tax from other income P 261,885,577 P 294,232,656 Adjustments to reconcile net income to cash flows provided by operating activities: Depreciation and Amortization 139,160,157 137,221,384 Provision for Impairment Loss - Loans and Receivables 665,178 2,651,128 Prior year's adjustments (1,831,310) (153,030,030) Provision for retirement 7,985,383 8,457,004 Interest expense 36,384,924 47,388,213 Unrealized foreign exchange (gain) / loss 1,053,019 (379,593) Interest Income (9,759,392) (7,858,338) Operating income before working capital changes 435,543,536 328,682,424 Changes in assets and liabilities ( Increase) decrease in assets: Receivables (19,994,798) (3,116,850) Materials and supplies inventory 16,552,503 (2,537,468) Deferred Tax Asset 61,093 12,477 Other Assets (14,062,718) 4,486,065
Increase (decrease) in liabilities: Financial Liabilities 2,079,266 33,948,537 Inter-Agency Payables 7,894,955 4,671,105 Trust Liabilities 15,418,091 15,829,637 Deferred Credits (1,401,726) 1,497,894 Other Payables 12,798,004 36,109,611 Net Cash Provided by Operating Activities P 454,888,206 P 419,583,432
See Accompanying Notes to Financial Statements.
MCWD ANNUAL REPORT 2016 13 FINANCIAL STATEMENTS
METROPOLITAN CEBU WATER DISTRICT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
For the Years Ended 2016 2015
CASH FLOWS FROM INVESTING ACTIVITIES Property, Plant and Equipment P (438,328,149) P (94,240,228) Investment property Intangible Assets (1,141,488) (3,666,703) Interest received 9,759,392 7,858,338 Net Cash Used in Investing Activities (429,710,245) (90,048,593)
CASH FLOWS FROM FINANCING ACTIVITIES Loans payable (105,110,928) (96,432,371) Operating reserves (16,862,386) (48,072,228) Equity 1,202,573 Interest paid (36,384,924) (47,388,213) Net Cash Used in Financing Activities (157,155,665) (191,892,812) EFFECT OF FOREIGN EXCHANGE CHANGES ON CASH AND CASH EQUIVALENTS (1,053,019) 379,593 NET INCREASE IN CASH AND CASH EQUIVALENTS (133,030,723) 138,021,620 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,129,932,426 991,910,806
CASH AND CASH EQUIVALENTS AT END OF YEAR P 996,901,703 P 1,129,932,426
996,901,703.43 1,129,932,426 0.43 0
See Accompanying Notes to Financial Statements.
MCWD 14 ANNUAL REPORT 2016 FINANCIAL STATEMENTS
METROPOLITAN CEBU WATER DISTRICT METROPOLITAN CEBU WATER DISTRICT STATEMENTSMETROPOLITAN OF COMPREHENSIVE CEBU WATER DISTRICT INCOME STATEMENTS OF CASH FLOWS FOR THESTATEMENTS YEARS ENDED OF COMPREHENSIVE DECEMBER 31, 2016 INCOME AND 2015 FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
2016 2015
Service and Business Income (Notes 3 and 20) 1,701,507,721.76 1,666,438,708.23 For the Years Ended 2016 2015 Shares, Grants and Donations (Notes 3 and 20) 88,200.00 70,800.00
Gains (Notes 3 and 20) 379,592.87 Other Non-Operating Income (Notes 3 and 20) 19,373,369.58 24,912,232.30 Other Non-Operating Income (Notes 3 and 20) 19,373,369.58 24,912,232.30 Gross Income 1,720,969,291.34 1,691,801,333.40 Gross Income 1,720,969,291.34 1,691,801,333.40 CASH FLOWS FROM INVESTING ACTIVITIES Less: Operating Expenses Less: Operating Expenses Property, Plant and Equipment P (438,328,149) P (94,240,228) Personnel Services (Notes 3 and 21) 521,569,443.20 529,902,107.60 Investment property Personnel Services (Notes 3 and 21) 521,569,443.20 529,902,107.60 Maintenance and Other Operating Expenses (Notes 3 and 22) 760,186,261.22 680,405,845.07 Intangible Assets (1,141,488) (3,666,703) Maintenance and Other Operating Expenses (Notes 3 and 22) 760,186,261.22 680,405,845.07 Interest received 9,759,392 7,858,338 Total Operating Expenses 1,281,755,704.42 1,210,307,952.67 Total Operating Expenses 1,281,755,704.42 1,210,307,952.67 Net Cash Used in Investing Activities (429,710,245) (90,048,593) Net Operating Income (Loss) 439,213,586.92 481,493,380.73 Less:Net Operating Other Expenses Income (Loss) 439,213,586.92 481,493,380.73
CASH FLOWS FROM FINANCING ACTIVITIES Less: Financial Other Expenses Expenses (Notes 3 and 23) 36,384,923.87 47,388,213.32
Loans payable (105,110,928) (96,432,371) FinancialNon-Cash Expenses Expenses (Notes(Notes 33 andand 23) 24) 140,943,086.47 36,384,923.87 139,872,511.83 47,388,213.32 Operating reserves (16,862,386) (48,072,228) Net Income 261,885,576.58 294,232,655.58 Equity 1,202,573 Non-Cash Expenses (Notes 3 and 24) 140,943,086.47 139,872,511.83 Interest paid (36,384,924) (47,388,213) Net Income 261,885,576.58 294,232,655.58 0.00 - Net Cash Used in Financing Activities (157,155,665) (191,892,812)
EFFECT OF FOREIGN EXCHANGE CHANGES ON METROPOLITAN CEBU WATER DISTRICT 0.00 - CASH AND CASH EQUIVALENTS (1,053,019) 379,593 STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 and 2014 NET INCREASE IN CASH AND CASH EQUIVALENTS (133,030,723) 138,021,620 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,129,932,426 991,910,806 Revaluation C Retained Co Column1 Total CASH AND CASH EQUIVALENTS AT END OF YEAR P 996,901,703 P 1,129,932,426 Surplus ol Earnings lu m
996,901,703.43 1,129,932,426 Balance at December 31, 2014 183,997,770 1,972,660,609 2,156,658,379 0.43 0 Prior years' adjustments - (153,030,031) (153,030,031) Restated Retained Earnings, December 31, 2015 183,997,770 1,819,630,578 2,003,628,348 See Accompanying Notes to Financial Statements. Net income for the year - 294,232,656 294,232,656
Balance at December 31, 2015 183,997,770 2,113,863,234 2,297,861,004
Equity Additions 1,202,572 1,202,572
Prior years' adjustments - (1,831,310) (1,831,310) Restated Retained Earnings, December 31, 2016 183,997,770 2,113,234,496 2,297,232,266
Net income for the year - 261,885,577 261,885,577
Balance at December 31, 2016 183,997,770 2,375,120,073 2,559,117,843
MCWD ANNUAL REPORT 2016 15 FINANCIAL STATEMENTS
METROPOLITAN CEBU WATER DISTRICT STATEMENTS OF FINANCIAL POSITION
December 31
2016 2015 2014
ASSETS
Current Assets
Cash and Cash Equivalents (Notes 3 and 5) 996,901,703 1,129,932,426 991,910,806
Investments (Note 6) 86,530 86,530 86,530
Receivables (net) (Notes 3 and 7) 307,527,385 288,197,765 287,732,043
Inventories (Notes 3 and 8) 201,816,244 218,368,747 215,831,279
Total Current Assets 1,506,331,862 1,636,585,468 1,495,560,658
Non Current Asset
Investment Property (net)(Notes 3 and 9) 26,623,113 27,815,193 29,007,272
Property, Plant and Equipment (net) (Notes 3 and 10) 1,912,107,935 1,610,557,525 1,651,693,337.501,651,693,338 Intangible Assets (net) (Notes 3 and 11) 35,092,714 35,141,563 32,128,125
Deferred Tax Asset (Note 12) 5,319,373 5,380,466 5,392,944
Other Assets (Note 13) 367,486,645 361,409,310 374,352,379
Total Non Current Assets 2,346,629,779 2,040,304,057 2,092,574,057
Total Assets 3,852,961,641 3,676,889,526 3,588,134,716
LIABILITIES
Financial Liabilities (Notes 3 and 14) 595,979,810 699,011,472 761,495,306
Inter Agency Payables (Notes 3 and 15) 84,626,365 76,731,410 72,060,306
Trust Liabilities (Notes 3 and 16) 241,767,699 226,349,608 210,519,971
Deferred Credits (Note 17) 22,886,031 24,287,756 22,789,863
Other Payables (Notes 3 and 18) 348,583,893 352,648,275 364,610,892
Total Liabilities 1,293,843,798 1,379,028,521 1,431,476,337
EQUITY
Revaluation Surplus (Notes 10) 183,997,770 183,997,770 183,997,770
Retained Earnings 2,375,120,073 2,113,863,234 1,972,660,609
Total Equity 2,559,117,843 2,297,861,004 2,156,658,379
Total Equity and Liabilities 3,852,961,641 3,676,889,526 3,588,134,716
See Accompanying Notes to Financial Statements.
MCWD 16 ANNUAL REPORT 2016 FINANCIAL STATEMENTS METROPOLITAN CEBU WATER DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016
1. GENERAL INFORMATION Initial Recognition In 1910, the Cebu Municipal Council created the Osmeña Waterworks System (OWS), which was the first and only major water source used The Water District recognizes a financial asset or a financial to operate and manage the water facility of the City. However, liability in the statement of financial position when the Water due to the rising water demand of the people in 1970’s, which OWS District becomes a party to the contractual provisions of the failed to address coupled by its recurring financial losses, a transition instrument. management was created. Financial assets and financial liabilities are recognized initially Thus, when Presidential Decree 198 or the Local Water Utilities Act of at cost which is the fair value at inception. Transaction costs, 1973 was created promising loans, trainings and other assistance to if any, are included in the initial measurement of all financial autonomous water districts, the Cebu City Government, under the assets and liabilities, except for financial instruments measured mayorship of Engr. Eulogio Borres, approved Resolution No. 873 on at fair value through profit or loss (FVPL). May 9, 1974 to create Metropolitan Cebu Water District (the “Water District”). In turn, Mayor Borres turned over to MCWD OWS assets and Financial assets and financial liabilities are classified into four facilities that served as its initial capital. It started its full commercial categories: a) financial assets at fair value through profit and loss operations on February 1, 1975. (FVPL), b) Held to Maturity instruments c) Loans and receivables, d) Available for Sale. The classification depends on the purpose In March 1992, the Supreme Court declared all water districts as for which the investments were acquired and whether these Government-Owned and-Controlled Corporations (GOCC). Hence, are quoted in an active market. The Water District determines MCWD stopped operating as a Quasi-Public Corporation. Everything the classification at initial recognition and re-evaluates this that has to be done must conform to Civil Service Commission designation at every reporting date, where appropriate. (CSC), the Department of Budget of Management (DBM), and the Commission on Audit (COA) rules and regulations. Where the transaction price in a non-active market is different from the fair value of other observable current market MCWD continues to be true to its Mission-Vision to protect and sustain transactions in the same instrument or based on a valuation Metro Cebu’s limited water resources, while living out its commitment technique whose variables include only data from observable to provide safe, potable and affordable water to Metro Cebu. Today, market, the Water District recognizes the difference between MCWD provides water to the cities of Cebu, Talisay, Mandaue and the transaction price and fair value (a ‘Day 1’ difference) in Lapu-lapu, and the municipalities of Consolacion, Liloan, Compostela, the profit or loss unless it qualifies for recognition as some other and Cordova. type of asset. In cases where use is made of data which is not observable, the difference between the transaction The District was registered with the Bureau of Internal Revenue on price and model value is only recognized in the profit or loss February 13, 1997 as a GOCC. Its principal office is located at corner when the inputs become observable or when the instrument Lapu-lapu and Magallanes Streets, San Roque, Cebu City. is derecognized. For each transaction, the Water District determines the appropriate method of recognizing the ‘Day 1’ 2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION OF difference amount. FINANCIAL STATEMENTS Financial instruments are offset when there is a legally 2.1 Statement of Compliance enforceable right to offset and intention to settle either on a net basis or to realize the asset and settle the liability simultaneously. The Water District’s financial statements were previously prepared in accordance with the uniform and standard accounting system Categories of Financial Assets and Financial Liabilities prescribed by the Local Water Utilities Administration (LWUA). With the issuance of Commission on Audit (COA) Circular No. 2016-006 dated Financial Assets and Financial Liabilities at FVPL December 29, 2016, which is the implementing guidelines of COA Circular No. 2015-010 dated December 1, 2015, the District’s financial Financial assets and financial liabilities at FVPL include financial statements for the years ended December 31, 2016 and 2015 have assets held for trading and financial assets designated upon been prepared in accordance with the Philippine Financial Reporting initial recognition as FVPL. Standards (PFRS). Financial assets and financial liabilities are classified as held The COA, in their circulars, mandates for the adoption of the Revised for trading if they are acquired for the purpose of selling and Chart of Accounts (RCA) for Government Corporations (GCs), repurchasing in the near term. Derivatives, including separated which include Water Districts. It recognizes the need to revise the embedded derivatives, are also classified as held for trading existing chart of accounts of GCs to provide new accounts for the unless they are designated as effective hedging instruments or adoption of the PPSAS, Philippine Financial Reporting Standards a financial guarantee contract. Gains or losses on investments (PFRS), and Philippine Accounting Standards (PAS), harmonized with held for trading are recognized in the profit or loss. the International Public Sector Accounting Standards (IPSAS) and International Financial Reporting Standards (IFRS) to enhance the When a contract contains one or more embedded derivatives, accountability and transparency of the financial reports, and ensure the entire hybrid contract may be designated as a financial comparability of financial information. asset or financial liabilities at FVPL, except when the embedded derivative does not significantly modify the cash flows or itis The Water District is a first-time adopter of the PFPS in its December 31, 2016 clear that separation of the embedded derivative is prohibited. financial statements. Hence, as first-timer adopter, the presentation and calssification of accounts in the Statements of Comprehensive Income, Financial assets may be designated at initial recognition as Statements of Financial Position, Statements of Changes in Equity, FVPL if the following criteria are met: Statements of Cash Flows and the notes are prepared in accordance • the designation eliminates or significantly reduces the with the rules and regulations of the PFRS for first-timer adopters. inconsistent treatment that would otherwise arise from measuring the assets or recognizing gains or losses on them on 2.2 Basis of Preparation of Financial Statements a different basis; • the assets are part of a group of financial assets which are The Water District’s financial statements have been prepared under managed and their performance evaluated on a fair value historical cost basis, unless stated otherwise, and are presented in basis, in accordance with a documented risk managing Philippine pesos, The Water District’s foreign currency. strategy; and • the financial asset contains an embedded derivative that 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES would need to be separately recorded. 3.1 Basis of Accounting As of December 31, 2016, 2015 & 2014 no financial assets have been classified at PVPL. The Water District’s financial statements are prepared on an accrual basis in accordance with (PFRS). Receivables 3.2 Cash and Cash Equivalents Loans and receivables are non-derivative financial assets with See Accompanying Notes to Financial Statements. fixed or determinable payments that are not quoted in an active market. They arise when the Water District provides money, Cash and cash equivalents comprise cash on hand and cash in goods or services directly to a debtor with no intention of trading bank (local and foreign currency), deposits on call and highly liquid the receivables. Loans and receivables are carried at amortized investments with an original maturity of three months or less, which cost in the Water District’s statement of financial position. are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Amortization is determined using the effective interest rate method. Loans and receivables are included in current For the purpose of the statement of cash flows, cash and cash assets if maturity is within twelve months of the reporting date. equivalents consist of cash and cash equivalents as defined above. Otherwise, these are classified as non-current assets. 3.3 Financial Assets and Financial Liabilities MCWD ANNUAL REPORT 2016 17 FINANCIAL STATEMENTS
Included in this category are the Water District’s accounts respective carrying amounts is recognized in the profit or loss. receivables, due from related parties, and other non-related parties and refundable deposits. Impairment of Financial Assets Held to Maturity (HTM) Investments The Water District assesses at each reporting date whether there is objective evidence that a financial asset maybe impaired. A financial HTM investments are quoted non-derivative financial assets with asset is deemed to be impaired if there is objective evidence of fixed or determinable payments and fixed maturities wherein the impairment as a result of one or more events that has occurred after Water District has the positive intention and ability to hold to maturity. 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 HTM assets are carried at cost or amortized cost in the Water financial asset that can be reliably estimated. Objective evidence District’s statement of financial position. Amortization is determined of impairment my include indications that the borrower or a group by using the effective interest rate method. Assets under this of borrowers is experiencing significant financial difficulty, default or category are classified as current assets if maturity is within twelve delinquency in interest or principal payments, the probability that months of the reporting date and non-current assets if maturity is they will enter bankruptcy or other financial recognition and where more than a year. observable data indicate that there is a measurable decrease in estimated future cash flows, such as changes in arrears or economic Gains and losses are recognized in profit or loss when the HTM condition that correlate with default. investments are derecognized or impaired as well as through the amortization process. Financial Assets at Amortized Cost (Loans and Receivables) As of December 31, 2016, 2015 and 2014, no financial assets have If there is objective evidence that an impairment loss on loans been classified as HTM investments. and receivables carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset’s Available for Sale (AFS) Financial Assets carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) AFS investments are non-derivative financial assets that are either discounted at the financial asset’s original effective interest rate designated as AFS or not classified in any of the other categories. (i.e. the effective interest rate computed at initial recognition). The These are purchased and held indefinitely, and may be sold in carrying amount of the asset shall be reduced either directly or response to liquidity requirements or changes in market conditions. through use of an allowance account. The amount of the loss shall After initial measurement, AFS investments are measured at be recognized in profit or loss. fair value with gains or losses being recognized as a separate component of equity, until the investments are derecognized or The Water District first assesses whether objective evidence of until the investments are determined to be impaired, at which time impairment exists individually for financial assets that are individually the accumulated gains or losses previously reported in equity are significant, and individually or collectively for financial assets that included in profit or loss. AFS are classified as non-current assets are not individually significant. If it is determined that no objective unless there is an intention to dispose such assets within twelve evidence of impairment exists for an individually assessed financial months from the reporting date. asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that group As of December 31, 2016, 2015 & 2014, no financial assets have of financial assets is collectively assessed for impairment. Assets been classified as AFS Financial Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in Financial Liabilities Measured at Amortized Cost a collective assessment of impairment. These are the financial liabilities which are not designated at FVPL. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an Financial liabilities not designated as FVPL are measured at event occurring after the impairment was recognized, the previously amortized cost after initial measurement using the effective recognized impairment loss is reversed. Any subsequent reversal of interest rate method. Amortized cost is calculated by taking into an impairment loss is recognized in profit or loss, to the extent that account any discount or premium on the issue and fees that are the carrying value of the asset does not exceed its amortized cost an integral part of the effective interest rate. The amortization is included in interest expense in the Water District’s statement of at the reversal date. The Water District recognized an Allowance for comprehensive income. Impairment of its Accounts Receivable (A/R) pegged at 3.65% of the total A/R. This was determined as the likely amount that will not Included in this category are the Water District’s accounts payable be collected from delinquent customers. and accrued expenses, due to related parties, long term debt, other payables and guarantee deposits payable to customers. Held to Maturity After initial recognition, interest-bearing loans and borrowings For HTM investments, the Water District assesses individually whether are subsequently measured at amortized cost using the effective there is objective evidence of impairment. If there is objective interest method. evidence that an impairment loss has been incurred, the amount of loss is measured as the difference between the asset’s carrying Gains and losses are recognized in profit or loss when the liabilities value and the present value of estimated future cash flows. The are derecognized as well as through the amortization process. carrying amount is reduced through an allowance account and the amount of loss is charged to provision for impairment and credit Derecognition of Financial Assets and Liabilities losses in the statement of comprehensive income. Interest income continues to be recognized based on the original effective interest Financial Assets rate of the asset. A financial asset (or, where applicable a part of a financial asset or If, in a subsequent year, the amount of the estimated impairment part of a group of similar financial assets) is derecognized where: loss decreases because of an event occurring after the impairment • the rights to receive cash flows from the asset expires; was recognized, any amounts previously charged to provision for • the Water District retains the right to receive cash flows from the asset, impairment and credit losses in profit or loss and the allowance is but has assumed an obligation to pay them in full without material reduced. The HTM investments, and the related allowance account, delay to a third party under a ‘pass-through’ arrangement; or are written off when there is no realistic prospect of future recovery • the Water District has transferred its rights to receive cash flows and the collateral has been realized. from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor Financial Assets Carried at Cost retained substantially all the risks and rewards of the asset, but has transferred control of the asset. If there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried at fair value because Where the Water District has transferred its rights to receive cash its fair value cannot be reliably measured, or on a derivative asset flows from an asset and has neither transferred nor retained that is linked to and must be settled by delivery of such unquoted substantially all the risks and rewards of the asset nor transferred equity instrument has been incurred, the amount of the loss is control of the asset, the asset is recognized to the extent of the measured as the difference between the asset’s carrying amount Water District’s continuing involvement in the asset. Continuing and the present value of estimated future cash flows discounted at involvement that takes the form of a guarantee over the the current market rate of return for a similar financial asset. transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration AFS Financial Asset that the Water District could be required to repay. Financial Liabilities If there is objective evidence that an AFS financial asset is impaired, the Water District removes from equity, the net unrealized loss on AFS financial A financial liability is derecognized when the obligation under the assets and transfers to the statement of comprehensive income, the liability is discharged or cancelled or has expired. difference between the acquisition cost (net of any principal repayment and amortization) and current fair value, less any impairment loss on that Where an existing financial liability is replaced by another from financial asset previously recognized in profit or loss. the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange In the case of equity investments classified as AFS, impairment losses or modification is treated as a derecognition of the original liability are not reversed through profit or loss. Increases in fair value are and the recognition of a new liability, and the difference in the recognized directly in equity.
MCWD 18 ANNUAL REPORT 2016 FINANCIAL STATEMENTS
for rental to others, or for administrative purposes; and In the case of debt instruments, if subsequently the fair value • are expected to be used during more than one reporting period. increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, An item of PPE is recognized as an asset if: the impairment loss is reversed through profit or loss. • it is probable that the future economic benefits or service potential associated with the item will flow to the entity; and Embedded Derivatives • the cost or fair value of the item can be measured reliably.
An embedded derivative is separated from the host financial or Measurement of Recognition non-financial contract and accounted for as a derivative if all of the following conditions are met: An item recognized as PPE is measured at cost. A PPE acquired through non-exchange transaction is measured at its fair value as at • the economic characteristics and risks of the embedded the date of acquisition. derivative are not closely related to the economic characteristics of the host contract; The cost of the PPE is the cash price equivalent at the recognition • a separate instrument with the same terms as the embedded date or, for PPE acquired through non cash-exchange transaction its derivative would meet the definition of a derivative; and cost is its fair value as at recognition date. • the hybrid or combined instrument is not recognized as at FVPL. Cost includes the following: The Water District assesses whether embedded derivatives are • its purchase price, including import duties and non-refundable required to be separated from host contracts when the Water District purchase taxes, after deducting trade discounts and rebates; first becomes party to the contract. Reassessment only occurs • expenditure that is directly attributable to the bringing the asset to if there is a change in the terms of the contract that significantly the location and condition necessary for it to be capable of operating modifies the cash flows that would otherwise be required. in the manner intended by management and; • initial estimate of the costs of dismantling and removing the item Embedded derivatives that are bifurcated from the host contracts and restoring the site on which it is located, the obligation for which are accounted for either as financial assets or financial liabilities at an entity incurs either when the item is acquired, or as a consequence FVPL. Changes in fair values are included in the profit or loss. of having used the item during a particular period for purposes other than to produce inventories during the period. Classification of Financial Instruments between Liability and Equity Measurement after Recognition Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. After recognition, all PPE are stated at cost less accumulated Interest, dividends, gains and losses relating to a financial instrument depreciation and impairment losses. or a component that is a financial liability, are reported as expense or income. Distributions to holders of financial instruments classified When significant parts of PPE are required to be replaced at intervals, as equity are charged directly to equity, net of any related income the Water District recognizes such parts as individual assets with tax benefits. specific useful lives and depreciates them accordingly. Likewise, when a major repair/replacement is done, its cost is recognized in A financial instrument is classified as debt if it provides fora the carrying amount of the plant and equipment as a replacement if contractual obligation to: the recognition criteria are satisfied. All other repair and maintenance • deliver cash or another financial asset to another entity; or costs are recognized as expense in statement of comprehensive • exchange financial assets or financial liabilities with another income as incurred. entity under conditions that are potentially unfavorable to the District; or Depreciation • satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of Depreciation is a method of allocating the cost of a tangible asset over own equity shares. its estimated useful life. Each part of an item of PPE with a cost that is significant in relation to the total cost of the item is depreciated seprately. If the Water District does not have an unconditional right to avoid delivering cash or another financial asset to settle its contractual The depreciation charge for each period is recognized as expense obligation, the obligation meets the definition of a financial liability. unless it is included in the cost of another asset. The components of issued financial instruments that contain both liability Initial Recognition of Depreciation and equity elements are accounted for separately, with the equity component being assigned the residual amount after deducting from Depreciation of an asset begins when it is available for use such as the instrument as a whole the amount separately determined as the when it is in the location and condition necessary for it to be capable fair value of the liability component on the date of issue. of operating in the manner intended by the management. 3.4 Inventories For simplicity and to avoid proportionate computation, the depreciation is for one month if the PPE is available for use on or Inventories are assets that are held for sale in the ordinary course of before the 15th of the month. However, if the PPE is available for use business, in the process of production for such sale or in the form of after the 15th of the month, depreciation is for the succeeding month. materials or supplies to be consumed in the production process or in the rendering of services. Depreciation Method Inventory is measured at cost upon initial recognition. The Water District The straight-line method of depreciation is adopted unless another includes in the cost of inventories all costs of purchase, costs of conversion, method is more appropriate for agency operation. The residual value and other costs incurred in bringing the inventories to their present location of the PPE is deducted in computing for its depreciation. and condition. To the extent that inventory was received through non- exchange transactions (for no cost or for a nominal cost), the cost of the Impairment inventory is its fair value at the date of acquisition. An asset is impaired when its carrying amount exceeds its recoverable Inventories are stated at a weighted average cost method. Under amount. Regular view of the Water District’s PPE shall determine if the weighted average cost formula, the cost of each item is there are items that maybe impaired. determined from the weighted average of the cost of similar items at the beginning of a period and the cost of similar items purchased or Derecognition produced during the period. The Water District derecognizes items of property, plant and equipment Inventories are recognized as an expense when deployed for the and/or any significant part of an asset upon disposal or when no future utilization or consumption in the ordinary course of operations of the economic benefits or service potential is expected from its continuing Water District. use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying 3.5 Prepaid Expenses amount of the asset) is included in the statements of comprehensive income when the asset is derecognized. Prepaid expenses are individually measured at transaction costs and are subsequently amortized as they are used in operations or as they 3.7 Investment Property expire with the passage of time. These typically include prepayments on insurance, subscriptions and other prepaid expenses. Investment property is property (land or a building—or part of a building— or both) held (by the owner or by the lessee under a finance lease) to 3.6 Property, Plant and Equipment earn rentals or for capital appreciation or both, rather than for: use in the production or supply of goods or services or for administrative purposes; Recognition or sale in the ordinary course of business. Investment property is stated at cost less accumulated depreciation and any accumulated impairment An item is recognized as property, plant and equipment (PPE) losses. Depreciation is computed using the straight-line method over its if it meets the characteristics and recognition criteria as PPE, as estimated useful life. follows: • tangible items; 3.8 Intangible Assets • are held for use in the production or supply of goods or services,
MCWD ANNUAL REPORT 2016 19 FINANCIAL STATEMENTS
Recognition and Measurement Interest income is accrued on a timely basis, and dividend income from investment is recognized when the right to receive payment has Intangible assets are recognized when the items are identifiable been established. non-monetary assets without physical substance; it is probable that the expected future economic benefits or service potential that Cost and expenses are recognized when incurred. Accruals are made are attributable to the assets will flow to the entity; and the cost or for expenses when necessary. fair value of the assets can be measured reliably. 3.10 Revenue from Non-Exchange Transactions Intangible assets acquired separately are initially recognized at cost comprising of a) its purchase price including import duties and Recognition and Measurement of Assets from Non-Exchange non-refundable taxes after deducting trade discounts and rebates; Transactions b) any directly cost of preparing the asset for its intended use. An inflow of resources from a non-exchange transaction, other than Subsequent expenditure on an in-process research or services in-kind, that meets the definition of an asset is recognized as an development project acquired separately and recognized as asset if the following criteria are met: an intangible asset is: • it is possible that the future economic benefits or service potential • recognized as an expense when incurred if it is research associated with the asset will flow to the entity; and expenditure; • the fair value of the asset can be measured reliably. • recognized as an expense when incurred if it is development expenditure that does not satisfy the criteria for recognition as an An asset acquired through a non-exchange transaction is initially intangible asset; and measured at its fair value as at the date of acquisition. • added to the carrying amount of the acquired in-process research or development project if it is development expenditure Recognition Revenue from Non-Exchange Transactions that satisfies the recognition criteria for intangible assets. An inflow of resources from a non-exchange transaction recognized as The cost of intangible assets acquired in a non-exchange an asset is recognized as revenue, except to the extent that a liability is transaction is their fair value at the date these were acquired. also recognized in respect of the same inflow. Internally Generated Intangible Assets As satisfies a present obligation recognized as a liability in respect of an inflow of resources from a non-exchange transaction recognized as In the recognition of internally generated intangible assets, the an asset, it reduces the carrying amount of the liability recognized and entity shall classify the generation of an asset into a) research recognize an amount of revenue equal to that reduction. phase and b) development phase. Measurement of Revenue from Non-Exchange Transactions Recognition of an Expense and Cost of the Asset Revenue from non-exchange transactions is measured at the amount of Expenditure on research phase shall be recognized as expenses the increase in net assets recognized by the entity, unless a corresponding when they are incurred. In the development phase, an entity liability is recognized. in some instances identify an intangible asset and demonstrate that the asset will generate probable future economic benefits. Measurement of Liabilities on Initial Recognition from Non-Exchange Cost of an internally generated intangible asset comprises of Transactions all directly attributable costs necessary to create, produce and prepare the asset to be capable of operating in a manner The amount recognized as a liability in a non-exchange transaction is the intended by management. best estimate of the amount required to settle the present obligation at the reporting date. Expenditure on an intangible item shall be recognized as an expense when it is incurred unless it forms part of the cost of an intangible asset 3.11 Other Accounts & Transactions that meets the recognition criteria of an intangible asset. Fees and Fines Not Related to Taxes Subsequent Measurement The district recognizes revenue from fees for other services fines and The useful life of intangible assets is assessed as either finite or penalties, when earned and the asset recognition criteria are met. indefinite. An intangible asset with a finite life is amortized over Deferred income is recognized instead of revenue if there is a related its useful life while the intangible asset with infinite useful life will condition attached that would give rise to a liability to repay the amount. not be amortized. Other non-exchange revenues are recognized when it is probable The straight line method is adopted in the amortization of the that the future economic benefits or service potential associated with expected pattern of consumption of the expected future the asset will flow to the entity and the fair value of the asset canbe economic benefits or service potential. measured reliably. An intangible asset with indefinite useful life or an intangible asset Gifts and Donations not yet available for use is assessed for impairment whenever there is an indication that the asset may be impaired. The Water District recognizes assets and revenue from gifts and donations when it is probable that the future economic benefits or service potential will The amortization period and the amortization method, for an flow to the entity and the fair value of the assets can be measured reliably. intangible asset with a finite useful life, are reviewed at the end of each reporting period. Goods in-kind are recognized as assets when the goods are received, or there is a binding arrangement to receive the goods. If goods in-kind are Changes in the expected useful life or the expected pattern of received without conditions attached, a liability is recognized, which is consumption of future economic benefits embodied in the asset reduced and revenue recognized as the conditions are satisfied. are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting On initial recognition, gifts and donations including goods in-kind are estimates. The amortization expense on an intangible asset with measured at their fair value as at the date of acquisition, which were a finite life is recognized in profit and loss as the expense category that is consistent with the nature of the intangible asset. ascertained by reference to an active market, or by appraisal. An appraisal of the value of an asset is normally undertaken by a member Gains or losses arising from derecognition of an intangible asset of the valuation profession who holds a recognized and relevant are measured as the difference between the net disposal professional qualification. For many assets, the fair value is ascertained proceeds and the carrying amount of the asset and are by reference to quoted prices in an active and liquid market. recognized in the profit and loss when the asset is derecognized. Transfers 3.9 Revenue and Expense Recognition The Water District recognizes an asset in respect of transfers when the Revenue is the gross inflow of economic benefits (cash, transferred resources meet the definition of an asset and satisfy the criteria receivables, other assets) arising from the ordinary operating for recognition as an asset, except those arising from services in-kind. activities of an entity (such as sales of goods, sales of services, interest, royalties, and dividends). Revenue is recognized when Services in-Kind it is probable that the economic benefit associated with the transaction will flow to the Water District and the amount of Services in-kind are not recognized as asset and revenue considering revenue can be measured reliably. the complexity of the determination of and recognition of asset and revenue and the eventual recognition of expenses. The Water District recognizes the revenue when the related water services are rendered to the customers. Water services are Transfers from Other Government Entities billed every month according to the bill cycles of the customers. In 2016, the Water District has started to engage in the clean Revenues from non-exchange transactions with other government up of sludge in septic tanks (septage services) wherein existing entities and the related assets are measured at fair value and customers in Lapu-lapu and Cordova are billed additionally for recognized on obtaining control of the asset (cash, goods, services the engagment of such service based on the cubic meter of and property) if the transfer is free from conditions and it is probable water consumed and in accordance with the approved tariff. that economic benefits or service potential related to the assets will This is recorded as Environment Fee in the books. flow and can be measured reliably. 3.12 Foreign Currency Transactions MCWD 20 ANNUAL REPORT 2016 FINANCIAL STATEMENTS
Transactions in foreign currencies are translated into functional 3.19 Events after Reporting Date currency using exchange rates prevailing at the time of the transactions. Post year-end events that provided additional information about the Water District’s position at reporting date (adjusting events) are reflected Foreign currency gains and losses resulting from the translation in the financial statements. Post year-end events that are not adjusting of foreign denominated monetary items and settlement of events are disclosed in the notes to financial statements, when material. receivables and payables in foreign currencies are recognized in the Statment of Comprehensive Income. 4. Significant Management’s Accounting Judgments and Estimates
3.13 Changes in Accounting Policies and Estimates The preparation of the Water District’s financial statements in conformity with PFRS requires management to make judgments, estimates and The Water District adopted for the year ended December 31, 2016 the assumptions that affect the amounts reported in the Water District’s Revised Chart of Accounts for Government Corporations (GCs), which financial statements and accompanying notes. consist of Government-Owned or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), Government Instrumentalities The estimates and assumptions used in the Water District’s financial with Corporate Powers (GICPs)/ Government Corporate Entities statements are based upon management’s evaluation of relevant (GCEs), and their Subsidiaries , and water districts, as issued by COA as facts and circumstances as of the date of the Water District’s financial per COA Circular 2015-010 dated December 1, 2015. statements.
The Water District recognizes the effects of changes in accounting Actual results could differ from such estimates. Judgments and policy retrospectively. The effects of changes in accounting policy estimates are continually evaluated and are based on historical are applied prospectively if retrospective application is impractical. experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Water District recognizes the effects of changes in accounting estimates prospectively by including in profit and loss. 4.1 Critical Judgments in Applying Accounting Policies
The Water District correct material prior period errors retrospectively In the process of applying the Water District’s accounting policies, in the first set of financial statements authorized for issue after their management has made the following judgments, apart from those discovery by: involving estimation, which have the most significant effect on the • restating the comparative amounts for prior period(s) presented in amounts recognized in the financial statements. which the error occurred; or • if the error occurred before the earliest prior period presented, Operating and Financing Leases restating the opening balances of assets, liabilities and net assets/ equity for the earliest prior period presented. The District has entered into various lease agreement as either a lessor or a lessee. Critical judgment was exercised by management to 3.14 Employee Benefits distinguish each lease agreement as either operating or finance lease by looking at the transfer or retention of significant risk and rewards of The employees of the Water District are members of the Government ownership of the properties covered by the agreements. The Water Service Insurance System (GSIS), which provides life and retirement District as of December 31, 2016, has entered into operating lease insurance coverage. agreements with various parties. The Water District recognizes the undiscounted amount of short term Provisions and Contingencies employee benefits, like salaries, wages, bonuses, allowance, etc., as expense unless capitalized, and as a liability after deducting the Judgment is exercised by management to distinguish between amount paid. provisions and contingencies. The Water District recognizes expenses for accumulating 4.2 Key Sources of Estimation Uncertainty compensated absences when these are paid (commuted or paid as terminal leave benefits). Unused entitlements that have In the application of the Water District’s accounting policies, accumulated at the reporting date are not recognized as expense. management is required to make estimates and assumptions Non-accumulating compensated absences, like special leave about the carrying amounts of assets and liabilities that are not privileges, are not recognized. readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that 3.15 Related Party Transactions are considered to be relevant. Actual results may differ from these estimates. Related party relationships exist when one party has the ability to control, directly or indirectly through one or more intermediaries, or The estimates and underlying assumptions are reviewed on an exercise significant influence over the other party in making financial ongoing basis. Revisions to accounting estimates are recognized in and operating decisions. Such relationships also exist between or the period in which the estimate is revised if the revision affects only among entities which are under common control with the reporting that period or in the period of the revision and future periods if the enterprise, or between or among the reporting enterprise and its key revision affects both current and future periods. management personnel or director. In considering each possible related party relationship, attention is directed to the substance of The following represents a summary of the significant estimates and the relationship, and not merely to the legal form. judgments and related impact and associated risks in the Water District’s financial statements. Transactions with related parties are accounted for based on the nature and substance of the agreement and financial effects are included Allowance for Impairment of Accounts Receivable in the appropriate asset, liability, revenue and expense account. As of December 31, 2016, no related party transaction is recognized in the The Water District assesses whether objective evidence of impairment books. exist for receivables and due from related parties that are individually significant and collectively for receivables that are not individually 3.16 Provisions significant. Allowance for impairment is maintained at a level considered adequate to provide for potentially uncollectible Provisions are recognized when the Water District has a present receivables. obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of economic resources embodying The allowance method has been adopted in the valuation of economic benefits will be required to settle the obligation anda trade receivables. Starting 1986, the allowance for impairment of reliable estimate can be made of the amount of the obligation. The receivables is estimated at 2% of the outstanding receivables at expense relating to any provision is presented in the profit or loss. the end of the year. Prior to 1986, it was estimated at 2% of gross billings for the year. However, with the recommendation from COA 3.17 Contingencies to increase the allowance, the new estimated amount for the year ended December 31, 2016 was increased to 3.65%. Contingent liabilities are not recognized in the financial statements. These are disclosed unless the possibility of an outflow of resources Impairment of Inventory embodying economic benefits is remote. Contingent assets are not recognized in the financial statements but disclosed when an inflow The District recognizes impairment on inventories whenever net of economic benefits is probable. realizable value of inventories become lower than cost due to damage, physical deterioration, obsolescence, changes in price 3.18 Prior Period Adjustments levels or other causes. The Water District has determined the prior period adjustments of Estimated Useful Lives of Property, Plant and Equipment Php1,831,310.13 for calendar year ended December 31, 2016 and none for the calendar year ended December 31, 2015. The District estimates the useful lives of property, plant and equipment based on the LWUA’s Commercial Practices Manual and COA As a result, the prior period adjustments affected the prior year’s guidelines. Depreciation and amortization are calculated on a accumulated surplus/(deficit) and cumulative effect on beginning straight-line basis, and assets are depreciated over the following accumulated surplus/(deficit) for the current year. estimated useful lives: MCWD ANNUAL REPORT 2016 21 Impairment of Inventory
The District recognizes impairment on inventories whenever net realizable value of inventories become lower than cost due to damage, physical deterioration, obsolescence, changes in price levels or other causes.
Estimated Useful Lives of Property, Plant and Equipment
FINANCIAL STATEMENTS The District estimates the useful lives of property, plant and equipment based on the LWUA’s Commercial Practices Manual and COA guidelines. Depreciation and amortization are calculated on a straight-line basis, and assets are depreciated over the following estimated useful lives:
Merchant's Bank - M. Velez Street 1,332,471.71 1,332,471.71 1,332,471.71 UTILITY PLANT IN SERVICE / PROPERTY, PLANT AND EQUIPMENT Years East West Bank - Mandaue City 437,272.29 436,568.42 435,684.13 Collecting & Impounding, Supply Mains, Hydrants and Reservoir Bank of Commerce - Juan Luna Avenue 1,005,999.35 1,005,669.69 50 PENBANKMerchant's - Punta Bank Princesa - M. Velez Street 1,332,471.71169,638.45 1,332,471.719,090,944.10 1,332,471.719,250,754.17 and Tanks East West Bank - Mandaue City 437,272.29 436,568.42 435,684.13 Struct. & Improvement of General Plant and Investment in Cash inBank Bank of -CommerceForeign Currency, - Juan Luna Saving's Avenue Account 1,005,999.35 1,005,669.69 30 LandPENBANK Bank of - Puntathe Philippines Princesa (LBP) - Plaza Dollar Account 8,8169,638.4509,980.98 9,090,944.107,620,792.68 9,250,754.174,250,084.16 Property TotalCash in Bank - Foreign Currency, Saving's Account 253,205,106.12 448,186,751.97 315,569,155.08 Wells and Leak Detection Equipment 25 Land Bank of the Philippines (LBP) - Plaza Dollar Account 8,809,980.98 7,620,792.68 4,250,084.16 Struct. & Improvement of Water Treatment Plant and 20 Total 253,205,106.12 448,186,751.97 315,569,155.08 Transmission and Distribution Mains 5.2 Time Deposits – Local Currency Transmission and Distribution Mains-Appraisal 13 5.2 Time Deposits – Local Currency Power Production and Water Sourcing Equipment, and Office Time deposits are short term investments that are highly liquid, with maturities 10 Furniture and Fixtures of one month to three months and are invested in the Development Bank of the Time deposits are short term investments that are highly liquid, with maturities Transportation Equipment 7 Philippines and in the Land Bank of the Philippines. For the year ended December of one month to three months and are invested in the Development Bank of the Other Equipments 5 31, 2016, the Water District restricted and assigned portion of time deposits for Philippines and in the Land Bank of the Philippines. For the year ended December guarantee deposits amounting to Php208,935,455.80. 31, 2016, the Water District restricted and assigned portion of time deposits for guarantee deposits amounting to Php208,935,455.80. 5. Cash and Cash Equivalents 6. Investments This account consists of the following: 6. Investments This account is composed of the following: Cash and Cash Equivalents 2016 2015 2014 Cash in Bank (Note 5.1) 253,205,106.12 448,186,751.97 315,569,155.08 InvestmentsThis account is composed of the following:2016 2015 2014 Petty Cash 920,000.00 920,000.00 420,000.00 InvestmentsInvestments in Stock - PLDT 201686,530.00 201586,530.00 201486,530.00 Time Deposits - Local Currency (Note Investments in Stock - PLDT 86,530.00 86,530.00 86,530.00 5.2) 739,131,021.40 673,315,699.84 666,375,225.84 7. Receivables Cash on Hand 3,645,575.91 7,509,974.55 9,546,425.21 7. Receivables Total 996,901,703.43 1,129,932,426.36 991,910,806.13 This account consists of the following: This account consists of the following: All collections of the water district are promptly deposited in the depository Receivables 2016 2015 2014 AccountsReceivables Receivables (Note 7.1) 282,981,390.592016 263,315,162.512015 262,341,220.782014 banks. The cash on hand at the end of the year are those collections that remain as Less:Accounts Allowance Receivables for Impairment(Note 7.1)-AR (10,276,295.05)282,981,390.59 263,315,162.51 (7,899,454.88) 262,341,220.78 (5,246,824.42) Less: Suspense Allowance Account for Impairment-AR (10,276,295.05) (1,439,060.38) (7,899,454.88) - (5,246,824.42) - deposit in transit, crediting to the bank accounts at the beginning of the succeeding Interest Suspense Receivable Account (1,439,060.38) 1,666,046.27 1,492,182.81- 1,518,570.30- OtherInterest Receivables Receivable(Note 7.2) 34,595,303.19 1,666,046.27 31,289,874.161,492,182.81 1,518,570.30 29,119,076.31 year. TotalOther Receivables (Note 7.2) 307,527,384.62 34,595,303.19 288,197,764.6031,289,874.16 29,119,076.31287,732,042.97 ` 1 Total 307,527,384.62 288,197,764.60 287,732,042.97 7.1 Accounts Receivables 5.1 Cash in Bank 7.1 Accounts Receivables
This account can be broken down as follows: Breakdown of Cash in Bank is as follows: This account can be broken down as follows:
Cash in Bank 2016 2015 2014 Accounts Receivables 2016 2015 2014 Cash in Bank - Local Currency, Current Account Accounts Receivables 2016 2015 2014 Zone 1 8,898,656.33 9,005,633.52 8,621,824.74 Development Bank of the Philippines (DBP) - D' Family Park 7,456,620.65 4,067,132.36 3,472,156.70 Zone 1 8,898,656.33 9,005,633.52 8,621,824.74 ZoneZone 2 2 9,209,056.33 10,186,326.56 10,186,326.56 9,683,485.87 9,683,485.87 Development Bank of the Philippines (DBP) - Current 92,501,439.08 150,042,386.83 123,888,426.43 For the calendar year-ended December 31, 2016, the balance is as follows: Zone 3 4,023,605.32 3,032,469.83 2,982,811.20 Land Bank of the Philippines (LBP) - Plaza Independencia 89,445,222.25 194,977,996.49 99,348,493.97 ` ` Zone 4 8,277,762.543 9,047,026.25 8,046,351.61 PENBANK - Talisay City Balance on Balance on 1,186,855.65 Zone 5 6,706,673.55 5,952,454.01 5,666,351.13 Decreases Investment Property Dec. 31, Depreciation Dec. 31, Banco De Oro (BDO) - N. Escario Street 3,856,804.63 2,683,961.92 2,962,149.10 Zone 6 5,624,386.60 4,751,252.08 4,529,659.61 (Reclass or 2015 for the year 2016 Banco De Oro (BDO) - Fuente Osmeña Street/Watson's 50,272.25 876,651.15 1,208,962.29 Zone 7 6,596,626.35 5,701,494.12 5,501,449.99 Disposal) Zone 8 5,922,712.69 4,122,501.81 3,976,842.38 Allied Banking Corporation – Consolacion Investment Property- at cost 862,060.87 Zone 9 7,676,721.13 4,514,651.07 4,588,422.58 39,735,989 - - 39,735,989 Banco De Oro (BDO) - Savemore Mactan 1,515,850.14 2,160,941.41 1,373,087.35 Zone 10 6,893,933.29 4,338,431.12 4,888,961.23 Accumulated Depreciation – at cost (11,920,796) (1,192,080) - (13,112,876) Banco De Oro (BDO) - Savemore E-Mall Zone 11 7,492,223.26 7,694,990.60 7,365,206.87 2,711,412.15 2,467,673.31 2,666,683.50 Net Depreciable Investment Property Zone 12 9,762,652.91 5,480,772.02 5,396,092.65 Landbank – BIR 32,176.67 31,999.92 31,823.73 – at cost 27,815,193 (1,192,080) - 26,623,113 Zone 13 15,776,793.76 16,679,205.12 14,345,083.88 Banco De Oro (BDO) - Fuente (Coop - Guadalupe) 940,310.18 975,050.27 1,036,149.40 Zone 14 9,370,850.36 6,320,578.18 5,831,011.29 Philippine Postal Savings Bank 32,019.85 42,854.21 438,669.86 Zone 15 14,107,618.55 17,880,713.93 16,894,238.52 For the calendar year-ended December 31, 2015, the balance is as follows: Banco De Oro (BDO) - SM Branch (White Gold) 1,660,910.02 1,136,928.74 820,239.80 Zone 16 11,926,988.53 14,001,770.58 12,013,468.51 Zone 17 13,980,900.12 20,536,983.59 17,438,588.28 Balance on Decreases Balance on BDO - Mandaue (PPC Consolacion/Liloan) 50,634.34 50,063.66 50,501.16 Zone 18 14,239,189.99 20,145,424.11 16,744,518.65 Investment Property Dec. 31, Depreciation (Reclass or Dec. 31, BDO-Post Off.(Mandaue/Talisay) 290,129.34 471,646.02 534,198.55 Zone 19 25,098,657.23 21,173,972.32 18,868,666.47 2014 for the year Disposal) 2015 BDO-SM Hypermarket (Mandaue) 1,264,189.91 424,325.23 702,280.10 Zone 20 31,137,213.42 34,114,413.75 31,301,838.90 Investment Property- at cost 39,735,989 - - 39,735,989 BDO-SM Consolacion 1,357,183.06 1,381,090.11 1,047,135.35 Zone 21 - Government 2,363,237.13 2,306,175.70 3,593,849.99 Zone 23 - Water Truck 146,565.78 299,565.86 527,394.56 Accumulated Depreciation – at cost (10,728,716) (1,192,080) - (11,920,796) BDO-Global Pinoy (JY Square / E-mall) 54,375.20 50,018.94 296,338.81 AR-MTR Rental 561,623.19 562,735.91 564,975.05 Net Depreciable Investment Property BDO-Mandaue(Savemore Maguikay & Canduman 565,631.40 493,294.63 470,621.76 Materials/Other Charges 2,090,588.80 1,864,087.58 1,881,359.18 – at cost 29,007,273 (1,192,080) - 27,815,193 BDO-Mandaue Branch(Savemore Insular Square) 296,246.75 217,908.40 168,435.96 PCA 13,051,172.67 13,355,707.78 16,603,687.02 BDO-Mandaue Branch (PhilPost-Lapulapu) 579,528.46 282,302.84 324,727.76 PWA 5,689,895.39 3,810,621.39 4,839,673.82 AR-SC Cost 22,855,042.04 (7,200,200.17) 11,617,465.02 DBP - Nilmark Business Center 25,142.16 10. Property, Plant and Equipment Zone 29 (2,940,228.76) (2,679,716.20) (2,563,580.04) DBP - Post Office Cebu City / Man. 84,332.61 93,422.10 25,023.61 Zone 30 7,904,668.20 11,524,832.28 9,029,944.18 DBP - EC Pay 10,561,523.15 9,439,240.61 3,510,270.75 Zone 31 6,865,477.69 14,790,287.81 11,561,577.64 DBP - CIS Bayad Center 1,697,658.38 1,499,141.16 25,023.61 AR - Environmental Fee 1,670,126.20 - - Property, plant and equipment account is composed of the following: Total 282,981,390.59 263,315,162.51 262,341,220.78 ASPAC-Consolacion Branch 746,955.77 1,436,554.56 Property, Plant and Equipment 2016 2015 2014 DBP-MH Lhuillier (Online) 189,518.58 Land (Note 10.1) 346,743,587.21 337,350,337.21 337,503,221.19 Water Plant, Structures and Improvements DBP-MH Lhuillier (Offline) 50,095.07 7.2 Other Receivables 31,623,105.36 30,454,148.06 25,757,152.99 (Note 10.2) BDO Emall (City Mall Conso and N. Bacalso) 148,385.98 Buildings & Other Structures (Note 10.3) 292,707,453.94 288,947,739.79 288,947,739.79 DBP - (Pag-ibig, GSIS, Philhealth) 72.65 Other receivables are broken down as follows: Furniture, Fixtures & Books (Note 10.4) 38,835,966.33 38,103,955.13 36,980,101.77 Plant-Utility Plant in Service (UPIS) (Note 10.5) 2,832,094,808.50 2,782,143,336.26 2,774,112,944.47 Other Receivables 2016 2015 2014 Cash in Bank - Local Currency, Saving's Account Machinery & Equipment (Note 10.6) 567,576,113.40 526,618,432.49 517,222,079.34 Alejandro, Mamerto 10,229.00 10,229.00 10,229.00 Transportation Equipment (Note 10.7) 160,325,161.09 160,325,161.09 160,325,161.09 LBP - One Treasury System 387,451.57 252,797.47 20,268.10 Andrada Construction 78,419.89 78,419.89 78,419.89 Total 4,269,906,195.83 4,163,943,110.03 4,140,848,400.64 Metro Cebu Public Savings Bank (MCPSB) - Talisay City 8,500,863.70 8,497,976.10 Atlanta Vinyl/ Atlanta Industries 12,723.41 12,723.41 12,723.41 Less : Accumulated Depreciation Metro Cebu Public Savings Bank (MCPSB) - Lapulapu City 9,009,670.80 9,006,610.37 Atlas Itochu Corp 22,142.47 22,142.47 22,142.47 Water Plant, Structures and (27,585,042.77) (24,988,661.88) (24,700,156.27) Metro Cebu Public Savings Bank (MCPSB) - Rizal Avenue/CIT 2,009,795.10 2,009,112.40 Carcar Water District 94,791.66 94,791.66 94,791.66 Improvements (Note 10.8) Banco Rural de Isla Cordova (BRIC) - Lapulapu City 143,033.30 240,589.97 124,777.01 CEBECO 10,709.85 10,709.85 10,709.85 Buildings & Other Structures (Note 10.9) (133,286,016.20) (125,322,112.18) (117,468,879.88) East West Bank - Archbishop Reyes Avenue (Banilad) 616,604.37 597,191.73 596,931.01 Central Phils. Association of Water Districts 64,397.43 64,397.43 64,397.43 Furniture, Fixtures & Books (Note 10.10) (34,222,656.62) (33,540,233.45) (32,921,347.72) City Government Appraisal Committee 90,900.00 90,900.00 90,900.00 East West Bank - N. Escario Street 895,523.89 894,082.36 890,760.90 UPIS (Note 10.11) (2,108,550,366.89) (2,008,988,671.90) (1,917,236,207.81) Diaz, Romy 25,230.55 25,230.55 25,230.55 PENBANK - Pajo, Lapulapu City 114,026.96 10,675,151.26 10,640,262.69 Machinery & Equipment (Note 10.12) (437,736,122.20) (416,749,951.35) (395,327,809.69) Geo Transport 80,927.87 80,927.87 80,927.87 Transportation Equipment (Note 10.13) (135,704,798.16) (128,614,863.91) (119,438,386.79) PENBANK - A. S. Fortuna Street, Mandaue City 156,031.26 213,542.70 126,910.15 Goodyear Steel Pipes Corp 15,496.00 15,496.00 15,496.00 Total Accumulated Depreciation (2,877,085,002.84) (2,738,204,494.67) (2,607,092,788.16) Wealth Bank - Carbon Market 20,667,443.66 19,587,653.88 19,585,632.49 Hydro Phil. Asia Inc 75.00 75.00 75.00 Add: Construction in Progress (Note 10.14) Wealth Bank - Mango Avenue/F. Ramos Street 302,729.56 340,191.26 332,417.42 Inter-Agency Committee 30,000.00 30,000.00 30,000.00 Construction in Progress-Infrastructure 485,984,578.94 157,021,704.80 106,019,371.94 Wealth Bank - Mandaue City 255,632.77 250,112.08 263,332.77 Italit Development Corp 162,833.46 162,833.46 162,833.46 Construction in Progress- Building & 33,302,163.14 27,797,205.20 11,918,353.08 East West Bank - Magallanes Street 107,838.99 119,884.33 108,620.38 Kalmar Construction 128,688.56 128,688.56 128,688.56 Other Structures Wealth Bank - Ayala Mall 470,249.75 316,448.32 271,099.77 Loon Water District 15,248.82 15,248.82 15,248.82 Total Construction in Progress 519,286,742.08 184,818,910.00 117,937,725.02 MCWD Employees Union (333.01) (333.01) (333.01) Queen Bank - Cebu City 199,678.09 389,415.88 344,321.43 Total Property Plant and Equipment 1,912,107,935.07 1,610,557,525.36 1,651,693,337.50 ` 4 ` 2 ` 6
MCWD 22 ANNUAL REPORT 2016 FINANCIAL STATEMENTS
Phil. Valve Manufacturing 17,090.16 17,090.16 17,090.16 On March 17, 2006, a contract of loan was entered with DBP to refinance the Siquijor Water District - J. Lango 41,084.08 41,084.08 41,084.08 existing long-term loans with LWUA. Under the terms and conditions of the contract, Tanjay Water District 17,037.88 17,037.88 17,037.88 VT. Lao Construction 10,155.42 10,155.42 10,155.42 this loan shall be secured by a real estate mortgage consisting of land and building. Bureau of Internal Revenue 29,908,289.34 26,902,917.03 24,550,401.48 Documentary stamp tax amounting to P 2,503,849.55 was paid on March 14, 2006. Total Prince Warehouse Club 12,551.89 12,551.89 344,335.49 Bank of Cebu 2,459,100.66 2,459,100.66 2,459,100.66 land area put up as collateral for the loan is 8,453 square meters. JICA 1,105.10 1,105.10 1,105.10 Visayas Association of Water Districts 43,425.00 43,425.00 43,425.00 Ana Construction 792,860.08 792,860.08 792,860.08 On July 5, 1991, some properties were appraised by Asian Appraisal Co. Inc., an Pilipinas Water Resources, Inc - 150,065.90 - independent appraiser. On the said date, the properties were assessed to have a Davao Security and Investigatin Agency, Inc 1,324.30 - - Nakagawa, Lyra 44,438.18 - - sound value of P 694,403,360 which resulted to an appraisal increment of P 575,535,327. GIMP Ventures 149,645.00 - - Priland Development Corporation 10,074.12 - - Abejo Water Corporation 8,094.52 - - The net appraisal increment that resulted from the revaluation in 1991 was WTG Construction and Dev't Corp 4,574.56 - - credited to the account “Revaluation Increment in Property” and is shown under January Builders 15,694.94 - - “Capitalization” in the Balance Sheet. Depreciation is computed based on the BNR Const. and Development Corp 18,112.47 - - ECCON Development Corporation 7,553.07 - - carrying value of the property using the straight-line method over their estimated useful Canen, Jericho C 20,938.32 - - lives. Virlo Construction and Dev't Corp (1,896.69) - - JJ&J Construction Supply 29,381.38 - - Jegma Construction and Development Corp 20,677.85 - - On December 31, 2005 and 2006, accumulated depreciation of revaluation Venray Construction 121,510.60 - - Total 34,595,303.19 31,289,874.16 29,119,076.31 surplus amounting to P 391,537,558 and P 390,457,797, respectively, was closed to retained earnings in accordance to SFAS/IAS No. 16 “Piecemeal Realization of 8. Inventories Revaluation Surplus”. Starting 2007, the new balance of the Revaluation Increment in Property is P183,997,770. This account is composed of the following:
Inventory Held for Consumption 2016 2015 2014 10.1 Land Office Supplies Inventory 7,914,566.39 7,956,371.44 4,283,820.20 Chemical and Filtering Materials 181,757.80 1,095,226.04 2,957,635.67 Other Supplies and Materials Inventory 193,719,919.71 209,317,149.86 208,589,823.41 This can be broken down as follows:
Total 201,816,243.90 218,368,747.34 215,831,279.28 LAND 2016 2015 2014 Land -Turned Over from OWS 14,794,449.69 14,794,449.69 14,794,449.69 Land - Cebu City 65,828,808.38 61,261,958.38 61,264,002.02 9. Investment Property Land - Compostela 692,249.49 692,249.49 692,249.49 Land- Consolacion 405,578.61 405,578.61 405,578.61 Land- Lilo-an 1,399,482.84 1,399,482.84 1,399,482.84 This account is the two-storey building owned by the Water District which was leased Land - Mactan 19,409,990.45 18,821,990.45 18,821,990.45 Land - Mandaue 6,515,915.10 6,515,915.10 6,515,915.10 out to Prince Warehouse Club for a fifteen (15)-year period under an operating lease Land - Talisay 45,872,521.87 44,090,521.87 44,090,521.87 contract. This property is among the collateral securities mortgaged to the Land - Appraisal Increase 172,120,399.35 172,120,399.35 172,120,399.35 Land - Nasipit Talamban 19,704,191.43 17,247,791.43 17,398,631.77 Development Bank of the Philippines (DBP). Total 346,743,587.21 337,350,337.21 337,503,221.19
For the calendar year-ended December 31, 2016, the balance is as follows: 10.2 Water Plant, Structure and Improvements ` 5 ` 7 Balance on Balance on Decreases Investment Property Dec. 31, Depreciation Dec. 31, Breakdown of this account is as follows: (Reclass or 2015 for the year 2016 Disposal) Water Plant, Structure and Improvements 2016 2015 2014 Sources of Supply- Structures & Improvements 13,552,406.32 13,552,406.32 13,552,406.32 Investment Property- at cost 39,735,989 - - 39,735,989 Pumping Plant - Structures and Improvements 11,484,449.85 10,315,492.55 5,618,497.48 Accumulated Depreciation – at cost (11,920,796) (1,192,080) - (13,112,876) Water Treatment - Structures and Improvements 4,788,830.01 4,788,830.01 4,788,830.01 Net Depreciable Investment Property Water Distribution System- Structures and Improvements 1,797,419.18 1,797,419.18 1,797,419.18 – at cost 27,815,193 (1,192,080) - 26,623,113 Total 31,623,105.36 30,454,148.06 25,757,152.99
For the calendar year-ended December 31, 2015, the balance is as follows: 10.3 Buildings and Other Structures Balance on Decreases Balance on Investment Property Dec. 31, Depreciation (Reclass or Dec. 31, 2014 for the year Disposal) 2015 This can be broken down as follows: Investment Property- at cost 39,735,989 - - 39,735,989 Buildings & Other Structures 2016 2015 2014 Accumulated Depreciation – at cost (10,728,716) (1,192,080) - (11,920,796) Buildings 286,808,207.31 283,104,843.16 283,104,843.16 Net Depreciable Investment Property Other Structures 5,899,246.63 5,842,896.63 5,842,896.63 – at cost 29,007,273 (1,192,080) - 27,815,193 Total 292,707,453.94 288,947,739.79 288,947,739.79
10. Property, Plant and Equipment 10.4 Furniture, Fixtures and Books
Property, plant and equipment account is composed of the following: This is composed of the following: Property, Plant and Equipment 2016 2015 2014 Furniture, Fixtures & Books 2016 2015 2014 Land (Note 10.1) 346,743,587.21 337,350,337.21 337,503,221.19 Furniture, Fixtures 38,218,463.70 37,555,231.70 36,431,378.34 Water Plant, Structures and Improvements 31,623,105.36 30,454,148.06 25,757,152.99 Books 617,502.63 548,723.43 548,723.43 (Note 10.2) Total 38,835,966.33 38,103,955.13 36,980,101.77 Buildings & Other Structures (Note 10.3) 292,707,453.94 288,947,739.79 288,947,739.79 Furniture, Fixtures & Books (Note 10.4) 38,835,966.33 38,103,955.13 36,980,101.77 Plant-Utility Plant in Service (UPIS) (Note 10.5) 2,832,094,808.50 2,782,143,336.26 2,774,112,944.47 10.5 Plant-Utility Plant in Service (UPIS) Machinery & Equipment (Note 10.6) 567,576,113.40 526,618,432.49 517,222,079.34 Transportation Equipment (Note 10.7) 160,325,161.09 160,325,161.09 160,325,161.09 Total 4,269,906,195.83 4,163,943,110.03 4,140,848,400.64 Breakdown of this account is as follows: Less : Accumulated Depreciation Plant-Utility Plant in Service (UPIS) 2016 2015 2014 Water Plant, Structures and (27,585,042.77) (24,988,661.88) (24,700,156.27) Collecting and Impounding 188,366,267.30 188,366,267.30 188,366,267.30 Improvements (Note 10.8) Buildings & Other Structures (Note 10.9) (133,286,016.20) (125,322,112.18) (117,468,879.88) Spring and Tunnels 173,889.06 173,889.06 173,889.06 Wells 172,943,763.60 166,896,147.67 166,339,398.71 Furniture, Fixtures & Books (Note 10.10) (34,222,656.62) (33,540,233.45) (32,921,347.72) Supply Mains 83,850,072.67 83,850,072.67 83,850,072.67 UPIS (Note 10.11) (2,108,550,366.89) (2,008,988,671.90) (1,917,236,207.81) Other Pumping Plant 1,240,739.54 1,240,739.54 1,240,739.54 Machinery & Equipment (Note 10.12) (437,736,122.20) (416,749,951.35) (395,327,809.69) Reservoir & Tanks 105,800,535.16 100,317,143.16 99,607,959.33 Transportation Equipment (Note 10.13) (135,704,798.16) (128,614,863.91) (119,438,386.79) Transmission and Distribution Mains 1,980,582,098.62 1,944,895,243.10 1,941,647,140.00 Total Accumulated Depreciation (2,877,085,002.84) (2,738,204,494.67) (2,607,092,788.16) Services 3,081.10 3,081.10 3,081.10 Add: Construction in Progress (Note 10.14) Water Meters 244,909,936.49 242,176,327.70 238,659,971.80 Construction in Progress-Infrastructure 485,984,578.94 157,021,704.80 106,019,371.94 Meter Installation 32,640,233.70 32,640,233.70 32,640,233.70 Construction in Progress- Building & 33,302,163.14 27,797,205.20 11,918,353.08 Hydrants 21,465,093.99 21,465,093.99 21,465,093.99 Other Structures Meter Box 84,570.44 84,570.44 84,570.44 Total Construction in Progress 519,286,742.08 184,818,910.00 117,937,725.02 Other Transmission and Distribution 34,526.83 34,526.83 34,526.83 Total Property Plant and Equipment 1,912,107,935.07 1,610,557,525.36 1,651,693,337.50 Mains Total 2,832,094,808.50 2,782,143,336.26 2,774,112,944.47
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MCWD ANNUAL REPORT 2016 23 FINANCIAL STATEMENTS
10.6 Machinery and Equipment A/D - Laboratory Equipment 19,658,116.97 18,867,247.96 18,093,926.21 A/D - Power Operated Equipment 22,309.00 22,309.00 22,309.00 A/D - Tools, Shop and Garage 75,663,947.00 72,606,314.41 68,906,971.40 Equipment This is composed of the following: A/D - Leak Detection Equipment 1,862,183.76 1,646,402.67 1,203,013.74 Machinery & Equipment 2016 2015 2014 A/D - Water Source Equipments 1,138,843.30 997,815.00 856,785.00 Power Production Equipment 54,128,950.51 54,128,950.51 54,029,062.51 A/D - Communication Equipment 37,995,645.22 37,325,886.74 37,176,386.42 A/D - Information & Communication Pumping Equipment 188,369,547.21 180,101,333.95 176,923,195.95 102,999,594.93 95,959,267.51 88,975,057.55 Water Treatment Equipment 15,528,193.99 12,881,193.99 12,596,253.99 Technology Equipment Store Equipment 2,052.00 2,052.00 2,052.00 Total 437,736,122.20 416,749,951.35 395,327,809.69 Laboratory Equipment 25,701,593.64 25,306,093.64 25,111,044.50 Power Operated Equipment 24,560.00 24,560.00 124,448.00 10.13 Accumulated Depreciation – Transportation Equipment Tools, Shop and Garage Equipment 90,138,121.55 82,523,094.40 81,229,337.39 Leak Detection Equipment 12,599,630.44 12,599,630.44 12,599,630.44 Water Sourcing Equipments 1,567,000.00 1,567,000.00 1,567,000.00 This consists of the following: Communication Equipment 54,659,978.84 38,441,357.84 38,441,357.84 Information & Communication Transportation Equipment 2016 2015 2014 124,856,485.22 119,043,165.72 114,598,696.72 Technology Equipment A/D - Motor Vehicles 135,704,798.16 128,614,863.91 119,438,386.79 Total 567,576,113.40 526,618,432.49 517,222,079.34 Total 135,704,798.16 128,614,863.91 119,438,386.79
10.14 Construction in Progress 10.7 Transportation Equipment This consists of the following:
This account consists of the following: Construction in Progress 2016 2015 2014 Construction in Progress-Infrastructure Transportation Equipment 2016 2015 2014 Mananga Watershed Rehab/Refo. Proj 936,263.40 936,263.40 936,263.40 Motor Vehicles 160,325,161.09 160,325,161.09 160,325,161.09 Mactan Bubble Project(Mactan Exploratory Well Drilling) (1,000.00) 2,636,258.47 2,636,258.47 Total 160,325,161.09 160,325,161.09 160,325,161.09 Strategic Source Project 31,603.21 31,603.21 Landing, Catarman Liloan, Cebu E-696-L3-210307 17,786.81 Prop.Steel Tower-MIS/Tal.Res.Proj. 124,137.22 124,137.22 10.8 Accumulated Depreciation – Water Plant, Structure and Improvements Mactan Air Base LLC-E-691-L3R-080107 18,558.95 18,558.95 18,558.95 Piperack, Talamban 52,900.00 52,900.00 MCWD Water Sourcing Program 17,444,014.24 17,444,014.24 17,444,014.24 Tabok-Tingub Road E-837-L3R-030-310 66,282.46 This is composed of the following: Cabancalan Bulk Water Supp E-814-L3-161209 14,288,279.13 14,288,279.13 14,288,279.13 Water Plant, Structure and Modular Water Tank - BC Homes E-855-CW-300410-B 188,659.03 188,659.03 2016 2015 2014 Improvements Buhisan Geological/Geohazard Assesment 5,483,392.00 5,483,392.00 A/D -Sources of Supply - Structures and Well Drilling-Tigbao,Talamban 523,854.54 523,854.54 13,552,399.32 13,552,399.32 13,552,399.32 Improvements MWSIP Pajac,Bangkal E-869-L3-200810 25,855,274.91 25,855,274.91 25,855,274.91 A/D - Pumping Plant - Structures and Saltwater Intrusion Monitoring Project 2,156,354.64 2,156,354.64 2,156,354.64 7,682,419.00 5,086,038.11 4,931,714.65 Improvements Jaclupan Standby Power Project 311,285.76 311,285.76 311,285.76 A/D - Water Treatment - Structures and Asset Inventory Roadmap Project 16,036,689.37 16,036,689.37 13,594,048.19 4,731,693.19 4,731,693.19 4,731,673.09 Improvements NRW Road Mapper Project 4,605,512.77 5,816,087.27 4,881,580.63 A/D - Water Distribution System - Modena Subdivision E-909-L3-170611 190,959.77 190,959.77 1,618,531.26 1,618,531.26 1,484,369.21 Structures and Improvements Umapad-Opao,Mandaue City E-901-L3-070411 4,001.04 Total 27,585,042.77 24,988,661.88 24,700,156.27 Desilting Program-Jaclupan Facility 839,764.04 839,764.04 839,764.04 Decomm. & Transfer Tapping Alviola E-806-L3D-171109 424,852.90 Decom. & SC Trans. Tapping Plaridel St. (E-820-L3D-050110 64,577.12 Decom. & SC Trans. Tapp. Mabini St.(E-765-L3D-021208) 13,889.92 Dist. Mains- St Anthony's Village Talamban E-915-L3-130611 159.78 Pipeline Encasement - Maghaway River, Talisay City E-833-CW-140210 2,492,796.64 2,492,796.64 2,492,796.64 10.9 Accumulated Depreciation - Buildings and Other Structures Dist.Mains-Brgy. Canduman/Tigbao, Talamban E-936-L3-251071 8,288,102.06 7,766,304.13 7,766,304.13 Dist. Mains-Sitio Malinao, Agus Lapulapu 1,673,241.98 23,766.80 Const.-Concrete Meter Vault at PBN 1,530.00 1,530.00 This consists of the following: ` Dist. Mains-I Tabura St. Pardo, Cebu City E-933-L3R-05101111 439,077.42 ` 9 MWSIP Pack 3 (Mactan Wat Sys Imp Project(E-873-L3-130910(B) 3,746,427.88 3,746,427.88 13,734.23 Buildings & Other Structures 2016 2015 2014 Kot-kot River Exploration 415,135.26 415,135.26 415,135.26 A/D - Buildings 129,637,986.17 121,999,446.40 114,535,707.28 Transfer Tapping at Umapad-Opao, Mandaue (E-994-L3D-101212) 798,658.78 A/D - Other Structures 3,648,030.03 3,322,665.78 2,933,172.60 Construction for Roofing of Laboratory Terrace 6,400.00 Total 133,286,016.20 125,322,112.18 117,468,879.88 Prop. realign. @ F Llamas, Labangon (E-868-l3r-160810) 181,010.32 4,072.25 Expan./Lat. Proj.-Bacayan, Pit-os (E-1019-L3-170613) 22,671,388.64 415,073.43 Dist Mains Campo 2 Brgy. Jaclupan, Talisay(E988-L3-091012) 1,763,887.63 10.10 Accumulated Depreciation - Furniture, Fixtures and Books Exp. Line at Sitio Curva, Liloan (E-990-L3-151012) 788,576.40 682,771.91 Talamban Warehouse Wooden Pallet 141,116.48 141,116.48 88,379.00 Installation of 4 booster pumps in Brgy Apas, Lahug 192.00 192.00 This is composed of the following: Buhisan Alarm System 41,198.65 41,198.65 41,198.65 Rehab Project in San Vicente, Liloan (E-1043-L3R-250913) 7,728.00 376,461.02 Furniture, Fixtures & Books 2016 2015 2014 Rehab Proj.-H. Pepito Consola(E-1008-L3R-060513) 108,369.78 A/D - Furniture & Fixture 33,672,187.81 32,990,896.62 32,372,010.89 DI Rehab in Pulpogan Road, Consolacion (E-996-L3R-090113) 2,334,434.69 A/D - Books 550,468.81 549,336.83 549,336.83 Mutual Homes Subd., Lapu-Lapu(E-954-L3-280212) (21,052.38) 7,856.93 255,907.76 Total 34,222,656.62 33,540,233.45 32,921,347.72 Exp. Project William Lines Subd (E-1073-L3-070414) 28,423.00 411,929.58 Exp. Proj.- HA 1 "Pack. 1 Clust 1, 2 & 3 (E-1095-L3-180714) 49,048,769.01 157,903.28 Di Expansion for Hydraulic Area 1 Package 2: Cluster 4 & 5 28,688,840.82 5,456.00 10.11 Accumulated Depreciation - UPIS HA 1 Pack. 3 Consolacion, Cebu E-1099-L3-210714 33,102,898.39 DI Expan. Proj. for Hydrau. Area 1 Pack. 4 : Clust. 9-11 50,595,367.42 16,579,957.05 This account is broken down as follows: Installation of Baffling Plates in Tisa Filter Plant 547,084.21 538,375.51 DI Rehab in J. Tabura St. Pardo, Cebu City 190,823.69 Realignment of Pipeline in Pitogo Bridge (E-1089L3R-300614) 260,059.56 Plant-Utility Plant in Service (UPIS) 2016 2015 2014 Proj-Sitio Tangkongan, Brgy Sambag 1(E-1012-L3R-290513) 29,875.20 1,158,289.17 A/D - Collecting and Impounding 59,051,577.58 55,284,435.70 51,517,293.82 Water Distrn. Sys.for Reblocking Lorega (E-1091-l3-080714) 523,785.99 503,340.80 249,704.23 A/D - Spring & Tunnels 173,884.06 173,884.06 173,884.06 Pipeline REhab in Sitio Panagdait, Brgy Kasambagan 2,395,032.01 1,446,371.20 A/D - Wells 133,957,784.48 128,047,472.38 122,097,341.32 DI Rehab in Alaska Mambaling, Cebu City (E-927-L3R-140911) 8,050,827.10 A/D - Supply Mains 26,478,548.52 24,801,547.08 23,124,545.64 DI REhab in B. Pajac, LLC (E-951-L3R-010212) 6,585,826.37 A/D - Other Pumping Plant 1,240,737.55 1,240,737.55 1,240,737.55 Extended Stub-out Sitio Pinahagbong Residence, Mandaue 43,152.00 43,152.00 43,152.00 A/D - Reservoir & Tanks 31,418,178.03 29,169,296.40 27,510,483.72 NRW (PRV projects) 2,326,954.62 982,034.44 982,034.44 A/D - Transmission and Distribution 1,580,960,897.19 1,497,407,437.41 1,420,512,819.38 Modular Tank in Oppra (E-1116-CW-190914) 350,788.96 22,535.59 Mains DI Expan. Proj. for Hydrau. Area 1 Pack 7(E-1113-L3-020914) 34,309,983.38 A/D - Services 3,080.10 3,080.10 3,080.10 Decom and Transfer Tapping in Pajac, LLC (E-1090-L3D-040714) 174,071.89 A/D - Water Meters 227,251,556.99 224,930,973.47 223,210,646.59 Trans.Tapp. Pulpogan, Consolacion (E-1092-L3D-090714) 1,160.55 A/D - Meter Installation 29,387,632.53 29,387,632.53 29,387,632.53 Decom & Trans.Tapp.- Magsaysay,Suba, Pasil(E-912-L3D-270611) 12,500.00 A/D - Hydrants 18,507,413.59 18,423,098.95 18,338,666.83 Rehab of Discharged Pipe (Tisa Rapid Filter) 493,663.64 A/D - Meter Box 84,555.44 84,555.44 84,555.44 Extended Stub-out in Sitio Skyview Lahug 113,062.80 113,062.80 113,062.80 A/D - Other Transmission and Exp. HA 1(Pack.9) J. Sitoy, Catarman & MV Patalinghug Ave 43,048,710.52 34,520.83 34,520.83 34,520.83 Distribution Mains DI Expan. Projects for Hydraulic Area 1 (Pack. 11)(E-1114-L3-120914) 5,200,560.44 Total 2,108,550,366.89 2,008,988,671.90 1,917,236,207.81 Rehab of Discharge Pipes of 8 San Vincente, Lilo-an Wells 228,197.71 Temp. Pipe Realignment in Pilipog Bridge (E-1142-L3-050315) 3,403.27 87,628.59 Pipe Realignment in Pilipog (E-1142-L3-050315) 340,300.16 10.12 Accumulated Depreciation – Machinery and Equipment Pusok-Matumbo-Mustang(E-1154-L3-200415) 19,599,178.58 Hydra. Area 1 Pac. 8 Cordo-Basak Marigon(E-1170-L3-290615) 43,927,804.60 Decom & Trans. Tapping in Panagdait, Brgy Kasambagan 430.00 This is composed of the following: Vitens project-Jansen, Basak Sn Nicolas E-1174-L3-230715 3,321,054.88 Vitens proj.-Villa Pacita, Inayawan E-1183-L3-280815 1,424,742.90 Machinery & Equipment 2016 2015 2014 Vitens Proj-Low'r Greyhound, Kinasang-an (E-1176-L3-310715) 1,977,668.42 A/D - Power Production Equipment 39,390,381.32 37,556,749.18 35,498,432.40 Vitens Project, Tangke, Talisay (E-1186-L3-080915) 1,479,709.84 A/D - Pumping Equipment 147,461,369.46 140,630,772.18 133,852,891.11 Vitens Proj.,Ceniza St. Mantuy., Mand.(E-1182-L3-250815) 544,163.40 A/D - Water Treatment Equipment 11,541,680.24 11,135,135.70 10,739,985.86 Vitens Project, Sitio Rotunda, Banilad Cebu City (E-1214-L-3-131115) 273,579.02 A/D - Store Equipment 2,051.00 2,051.00 2,051.00 Rehab of Pipe Support at Old Bridge (E-1232-CW-160316) 5,965,453.64
` 10 ` 12
MCWD 24 ANNUAL REPORT 2016 FINANCIAL STATEMENTS
For the calendar year-ended December 31, 2014, the balance of this account SCADA Project (JICA) 40,920,991.75 Mactan Septage management Service 818,315.86 is as follows: Construction in Progress- Building & Other Structures Decreases Accumulated Carrying Canduman Well Proj. CAN 6 & 7 591,743.11 591,743.11 591,743.11 Computer Software Cost 2014 (Reclass or Amortization Value Well # MC2B 30,000.00 30,000.00 30,000.00 Disposal) Prop. Improvement Well 28 E-779-CW-020609 8,334.00 8,334.00 8,334.00 CisCO Internet Firewall 31,374.78 (28,237.30) - 3,137.48 Computer Printer System 985,625.00 (887,062.50) - 98,562.50 CAM-1 Pumpng Stn. E-731-CW/EMW-270608B 18,000.00 18,000.00 18,000.00 Microsoft Professional OS 26,000.00 (23,400.00) - 2,600.00 Talamban Power Sub-Station 1,882,886.14 1,882,886.14 1,882,886.14 Computerized Accounting and 535,712.33 (482,141.10) - 53,571.23 Jaclupan Storm Drainage Project 9,867.50 9,867.50 9,867.50 Financial System 633,921.12 (570,529.01) - 63,392.11 Well K-22, Talamban 563,767.54 563,767.54 563,767.54 Upgrading of Billing Collection Call Center System Profile 615,800.00 (554,220.00) - 61,580.00 Well 34B Pumping Station E-900-CW\EMW-050411 9,158.00 9,158.00 9,158.00 CMMS Writer Visual Basic 7.0 & 400,000.00 (360,000.00) - 40,000.00 Sta. Cruz, Liloan Pumping Station E-728-L3-020508-B 329,174.94 329,174.94 Microsoft SQL Server Database Licence Software Oracle MAC 10 & 11 Pumping Stations 66,543.91 4,634,530.75 4,893,738.12 (4,404,364.31) - 489,373.81 Phils Corp Exploratory and Well Drilling in Oppra, Lahug. 2,627,702.00 1,069,892.00 Computer Firewall Appliance with 547,680.00 (492,912.00) - 54,768.00 Proposed Standard Guardhouse for MCWD Facilities 220,643.17 220,643.17 220,643.17 HW, Sec and IDS Computer Software, Scan to File 97,000.00 (87,300.00) - 9,700.00 MAN 1 Pumping Station for inhouse Sourcing (E-1014-L3/EMW-050613) 5,494,855.02 4,664,883.12 38,396.65 Computer, Microsoft Operating and 1,324,992.00 (1,152,743.04) (19,874.88) 152,374.08 Proposed 3 Genset Shed @Jaclupan, Talisay City 254,872.13 254,872.13 254,872.13 Productivity Microstation and Bentley Map V8i Pumping Stations for MAC 6, 7, and 8 (Cluster D) (E-957-CW/EMW-060312) 260,163.10 134,033.78 43,714.10 4,240,961.78 (3,224,256.24) (318,072.10) 698,633.44 License Const. of Pumping Station CUB 1(E-1017-L3/EMW-130613) 11,073,198.99 8,430,505.87 142,966.83 Computerization of Meter System and 715,720.00 (579,733.20) (32,207.40) 103,779.40 Prop. Water Truck Shed @ Talamban (E-1013-CW-040613) 454,379.42 454,379.42 454,379.42 Inventory and Warehousing Const. of Pumping Station CAN8 (P-130-L3/emw/250713) 226,509.29 219,633.43 155,627.70 Geographic Positioning System 40,000.00 (13,800.00) (7,200.00) 19,000.00 Computarized Maintenance Prop. Perimeter Fence-MAC 5 (E-1007-CW-300413) 663,355.99 663,355.99 644,390.35 786,240.00 (424,569.60) (70,761.60) 290,908.80 Management System CAN 8 Pumping Station (E-740-L3-210808) 337,155.45 Total 15,874,765.13 (13,285,268.30) (448,115.98) 2,141,380.85 MCWD Facade - Main 1,430,000.00 CAN 8 Pumping Station-Canduman, M.C. 166,652.19 166,652.19 MC 23 Pumping Station-F. Sotto St, C.C. 801,663.28 457,631.97 210,519.61 11.2 Development in Progress G-10 Pumping Station-Guadalupe, C.C. 756,326.95 411,870.64 257,728.23 Rehab of Buhisan Dam Sluice Gate 858,145.09 402,099.30 96,939.00 Tomodachi Pump Station (E-1074-CW/EMW-080414) 1,450,186.02 1,443,310.16 242,145.91 This account is broken down as follows: Proposed MEQC Testing Facility (E-1130-L3-131114) 78,600.00 78,600.00 - Retrofitting of columns in the MCWD Annex Building 11,298.00 8,676.00 Development in Progress 2016 2015 2014 Perimeter Fence of COrdova Septage Treatment Facility 2,343,252.23 1,172,085.99 - CAD-GIS Conversion (62,796.50) 27,104,443.39 24,742,271.13 Rehab of W4.14 Pumphouse and Premises Budget Monitoring and Control System and WQCIS 800,000.00 800,000.00 800,000.00 Road Concreting of Pusok Tower Access Road 2,020,263.18 866,631.20 - Comp.Mgmt.Maintenance System(CMMS) (188,659.03) Rehab & Commissioning of Ayala Reservoir & Booster Station 64,400.07 6,396.55 - Electronic Procurement System 345,850.00 345,850.00 345,850.00 Expansion of Apas Booster Station 146,175.04 - Hydraulic Network Modelling project 3,468,544.60 3,468,544.60 3,468,544.60 Inst. of Concrete Vault & Steel Cover of W 4.7 in Talamban 91,514.02 - Water Quality Control Information System 4,999.00 4,999.00 4,999.00 Prop. Concrete Access Road for MAN 1 305,621.50 - - HRIS- Salary and Benefit Administration Module 343,079.00 343,079.00 343,079.00 Tisa Filter Plant Access Road Concreting 875,456.89 - - HRIS-Training, Compentency Mgt, Medical Services 282,000.00 282,000.00 282,000.00 Road Concreting of Talamban Reservoir Access Road 1,416,162.98 - - Total 5,181,676.10 32,160,256.96 29,986,743.73 Total 519,286,742.08 184,818,910.00 117,937,725.02
11. Intangibles 12. Deferred Tax Asset
This account is composed of the following: This account consists of the following:
Intangible Assets 2016 2015 2014 Creditable Withholding Tax 2016 2015 2014 Computer Software (Note 11.1) 45,488,024.46 17,367,955.13 15,874,765.13 Franchise Tax 2% 3,043,367.61 3,102,235.60 3,097,563.19 Less: Accumulated Amorization - Computer Software (15,576,986.90) (14,386,648.96) (13,733,384.28) Withholding Tax 2% 2,023,358.44 2,062,496.04 2,028,552.13 Accumulated Impairment Losses - Computer System Withholding Tax 5% (Expanded) 251,575.50 215,399.72 266,281.24 Development in Progress (Note 11.2) 5,181,676.10 32,160,256.96 29,986,743.73 Withholding Tax 5% (Final Tax) 1,071.42 334.83 547.33 Total 35,092,713.66 35,141,563.13 32,128,124.58 Total 5,319,372.97 5,380,466.19 5,392,943.89
` 13 11.1 Computer Software ` 15 13. Other Assets
For the calendar year-ended December 31, 2016, the balance of this account is as follows: This is composed of the following:
Accumulated Decreases Other Assets 2016 2015 2014 Amortization Carrying Computer Software Cost Amortization (Reclass or 2016 Value Advances 665,848.80 771,328.44 1,590,942.93 2015 Disposal) CisCO Internet Firewall 31,374.78 (28,237.30) - 3,137.48 Prepayments (Note 13.1) 70,182,506.64 84,661,243.30 33,209,823.32 Computer Printer System 985,625.00 (887,062.50) - 98,562.50 Deposits (Note 13.2) 21,686,402.13 21,427,689.54 20,286,170.84 Microsoft Professional OS 26,000.00 (23,400.00) - 2,600.00 Restricted Fund – (Escrow) 252,350,197.97 223,699,918.90 189,086,862.93 Computerized Accounting and 535,712.33 (482,141.10) - 53,571.23 Financial System Unamortized Portion of Pension Benefits 22,601,689 30,849,130 130,178,579 Upgrading of Billing Collection 633,921.12 (570,529.01) - 63,392.11 Call Center System Profile 615,800.00 (554,220.00) - 61,580.00 Total 367,486,644.50 361,409,309.96 374,352,379.16 CMMS Writer Visual Basic 7.0 & 400,000.00 (360,000.00) - 40,000.00 Microsoft SQL Server Database Licence Software Oracle 4,893,738.12 (4,404,364.31) - 489,373.81 13.1 Prepayments Phils Corp Computer Firewall Appliance with 547,680.00 (492,912.00) - 54,768.00 HW, Sec and IDS Computer Software, Scan to File 97,000.00 (87,300.00) - 9,700.00 This account is broken down as follows: Computer, Microsoft Operating and 1,324,992.00 (1,192,492.80) - 132,499.20 Productivity Microstation and Bentley Map V8i Prepayments 2016 2015 2014 4,240,961.78 (3,860,400.50) - 380,561.28 License Prepayment to Contractors Computerization of Meter System and 715,720.00 (644,148.00) - 71,572.00 Inventory and Warehousing USC Water Resource Center 43,350.00 43,350.00 43,350.00 Geographic Positioning System 40,000.00 (28,200.00) (7,200.00) 4,600.00 Computarized Maintenance Anciano Surveying and Associates 9,600.00 9,600.00 9,600.00 786,240.00 (636,854.40) (70,761.60) 78,624.00 Management System Computer System Bentley Water Phil. Bus. for Social Progress 268,360.00 268,360.00 268,360.00 1,493,190.00 (134,387.10) (268,774.20) 1,090,028.70 Gems/ 2000 pipes Ana Construction 3,381,755.44 3,381,755.44 3,381,755.44 CAD-GIS Map Conversion 28,120,069.33 - (843,602.08) 27,276,467.25 Total 45,488,024.46 (14,386,649.02) (1,190,337.88) 29,911,037.56 Geo-Transport and Construction Incorporated 6,433,088.29 18,318,913.44 3,090,163.91 Felman Builders and Contractors 378,259.49 378,259.49 378,259.49 For the calendar year-ended December 31, 2015, the balance of this account New Culion Builders Company 1,823,791.92 1,823,791.92 5,126,716.27 Houston Hydrotech Products and System Inc. 2,450,266.96 - 73,889.71 is as follows: Dakay Construction 5,159,752.82 5,333,846.70 6,570,818.95 Accumulated Decreases Carrying Computer Software Cost Amortization 2015 (Reclass or Zetta Solutions 28,200.00 28,200.00 28,200.00 Value Disposal) 2014 LGMARATAS Surveying and Engineering Services 16,400.00 16,400.00 16,400.00 CisCO Internet Firewall 31,374.78 (28,237.30) - 3,137.48 Computer Printer System 985,625.00 (887,062.50) - 98,562.50 FE and A Construction Services 228,809.99 - Microsoft Professional OS 26,000.00 (23,400.00) - 2,600.00 JFAP Construction 1,668,597.46 17,560,287.13 - Computerized Accounting and 535,712.33 (482,141.10) - 53,571.23 Financial System PMG Ventures 721,361.19 7,994,716.53 - Upgrading of Billing Collection 633,921.12 (570,529.01) - 63,392.11 Call Center System Profile 615,800.00 (554,220.00) - 61,580.00 AL Gantuangco Construction 602,085.68 1,382,169.75 - CMMS Writer Visual Basic 7.0 & 400,000.00 (360,000.00) - 40,000.00 Microsoft SQL Server Rex E. Morales Contruction 3,179,448.40 1,064,068.25 - Database Licence Software Oracle 4,893,738.12 (4,404,364.31) - 489,373.81 FdrCon Company, Inc 1,017,926.70 2,662,030.03 - Phils Corp Computer Firewall Appliance with 547,680.00 (492,912.00) - 54,768.00 M. E. Sicat Construction 16,723,916.66 - - HW, Sec and IDS Computer Software, Scan to File 97,000.00 (87,300.00) - 9,700.00 DSJP Construction 2,851,689.78 - - Computer, Microsoft Operating and 1,324,992.00 (1,172,617.92) (19,874.88) 132,499.20 Productivity Prepaid Insurance 1,329,786.01 1,213,759.45 1,367,565.59 Microstation and Bentley Map V8i 4,240,961.78 (3,542,328.34) (318,072.10) 380,561.34 Prepaid Rent 407,046.19 44,471.05 156,881.93 License Computerization of Meter System and 715,720.00 (611,940.60) (32,207.40) 71,572.00 Other Prepayments Inventory and Warehousing Geographic Positioning System 40,000.00 (21,000.00) (7,200.00) 11,800.00 Prepaid Taxes, Licenses and Registration 27,584.64 - 76.96 Computarized Maintenance 786,240.00 (495,331.20) (141,523.20) 149,385.60 Management System Prepaid Annual Water Charges - 593,418.30 588,416.98 Computer System Bentley Water 1,493,190.00 (134,387.10) 1,358,802.90 Prepaid CNA Incentive 20,833,132.51 21,585,113.83 10,796,235.92 Gems/ 2000 pipes Total 17,367,955.13 (13,733,384.28) (653,264.68) 2,981,306.17 Prepaid Office Supplies - - 1,217,702.00
` 16 ` 14
MCWD ANNUAL REPORT 2016 25 FINANCIAL STATEMENTS
Due to PhilHealth 335,790.31 325,215.31 348,277.81 Prepaid Subcriptions 755,216.80 733,981.38 98,666.25 Due to LGUs 64,333,582.62 60,703,990.23 56,865,572.64 Prepaid Repairs and Maintenance 74,552.50 - - Value Added Tax Payable 167,122.64 160,186.27 156,831.57 Input Tax (2,662.80) (4,059.38) (3,236.08) Income Tax Payable 3,603,051.00 3,603,051.00 3,603,051.00 Total 70,182,506.64 84,661,243.30 33,209,823.32 Total 84,626,365.23 76,731,410.34 72,060,305.84
13.2 Deposits Due to LGUs comprised of revenue share due to the different Local Government Breakdown of this account is as follows: Units for water extracted from their respective jurisdiction in accordance with the Local Deposits 2016 2015 2014 Government Code. Other Deposits Cash Bond - Talisay City 2,511,722.66 2,511,722.66 2,511,722.66 Cash Bond - Cebu City 644,748.35 644,748.35 644,748.35 16. Trust Liabilities Cash Bond - Mandaue City 1,034,675.66 1,034,675.66 1,034,675.66 Lapulapu City 440,720.00 440,720.00 440,720.00 CEBECO II 4,000.00 4,000.00 4,000.00 Clerk of Court 5,542,277.17 5,542,277.17 5,542,277.17 This account is composed of the following: Cebu Bonded Warehousing Corporation 82,500.00 82,500.00 82,500.00 Trust Liabilities 2016 2015 2014 VECO Guarantee Deposit 344,042.13 344,042.13 344,042.13 PNB Expropriations 311,008.75 311,008.75 311,008.75 Security Deposits Payable FSP Group Incorporated 54,050.00 54,050.00 54,050.00 Bidder's Bond Payable 6,688,510.03 6,191,230.10 4,161,796.20 Islaphone 4,400.00 4,400.00 4,400.00 Customers' Deposit Payable JET Sales 15,100.00 15,100.00 15,100.00 Meter Deposit 22,114,706.97 22,282,546.87 22,539,060.57 Kooler Industries 3,130.00 1,880.00 1,880.00 Customer Deposit - W/S Guarantee Deposit 33,940.00 33,940.00 33,940.00 Mabuhay Vinyl Corporation 464,000.00 464,000.00 464,000.00 MECO 70,329.20 70,329.20 70,329.20 Guarantee Deposit 210,807,077.94 195,843,125.04 181,383,379.12 PLDT 18,141.03 18,141.03 18,141.03 Security Deposit - Prince Warehouse Club 312,500.00 312,500.00 312,500.00 Pryce Gases Incorporated 15,000.00 15,000.00 15,000.00 Advance Payment from Customers 1,810,964.21 1,686,265.85 2,089,294.69 SIG 217,620.47 217,620.47 217,620.47 Total 241,767,699.15 226,349,607.86 210,519,970.58 Superior Gas and Equipment Company 36,000.00 36,000.00 36,000.00 Trellis Properties Corporation 25,200.00 25,200.00 25,200.00 VECO 1,977,784.04 1,889,904.63 2,546,318.07 17. Deferred Credits Web Link Philippines Incorporated 2,530.00 2,530.00 2,530.00 Wentworth Development Corporation 70,560.00 70,560.00 70,560.00 VECO Transformer 4,288,750.02 3,998,523.33 3,102,722.70 SUGECO Cebu Inc 6,000.00 6,000.00 6,000.00 This account is composed of the following: Lapulapu City - Irwin Tagalog Mandaue City - Charmie Angcos 359,506.23 359,506.23 131,630.59 Deferred Credits 2016 2015 2014 Mandaue City - Leslie Babatuan 4,998.00 338,188.28 338,188.28 Consumer Advance Payment 2,379,462.26 2,382,640.95 2,391,339.24 Mandaue City - Enrique Ouano Municipality of Liloan - Romano Gelbolingo Jr 1,875.00 1,875.00 1,875.00 Joanne Legacy Homes, Inc. 117,200.00 117,200.00 117,200.00 Municipality of Cordova - Charmie Angcos 100,000.00 100,000.00 100,000.00 Commonwealth Estate Inc. 58,213.57 58,213.57 58,213.57 Municipality of Cordova-Romano Gelbolingo 21,539.38 21,539.38 21,539.38 NLRC RAB VII - Jasville Dela Peña 540,145.05 540,145.05 540,145.05 Water System Commitment Cost 15,984,454.91 17,438,769.91 15,938,769.91 Municipality of Consolacion - Franz Rey Pepito Installation Cost - Promo 40,006.84 34,238.84 27,646.84 Cash Bond - Cebu City -Allan Ang 250,100.00 250,100.00 Cash Bond - Cebu City - Junard Cesa 496,970.00 268,220.00 241,500.00 R'Mend Property Development Corporation 29,718.30 29,718.30 29,718.30 Cash Bond - Cebu City - Franz Rey Pepito 5,250.00 5,250.00 5,250.00 Cash Bond - Cebu City - Romano Gelbolingo 832,850.00 582,750.00 582,750.00 S. A. Bless Homes 5,562.78 5,562.78 5,562.78 Cash Bond-Cebu City- Belaniso, Philip Ryan 122,054.00 122,054.00 Irvine Construction Corp. 10,000.00 10,000.00 10,000.00 Cash Bond - Talisay City - Charmie Angcos 53,575.50 53,575.50 384,496.35 Cash Bond - Talisay City - Cecilio Roble 384,496.35 384,496.35 90,150.00 Genesis Subdivision/Prohomes Dev't. Inc. 91,138.26 91,138.26 91,138.26 Cash Bond - Lapulapu City - Junard Cesa 33,000.00 33,000.00 33,000.00 LOPZCOM Realty Corporation 21,270.00 21,270.00 21,270.00 Cash Bond - Mandaue City - Enrique Ouano 67,103.23 Cash Bond - Mandaue City - Ryan Belaniso 164,603.14 164,603.14 Sweetland Realty/Mamerta 1 Project 4,468.77 4,468.77 4,468.77 Cash Bond - Municipality of Consolacion - Franz Rey Pepito 330,350.00 330,350.00 Cost Communities, Inc. 23,129.86 23,129.86 23,129.86 Municipality of Cordova- John Neville Macabinta 50,900.00 - - Shelter Concepts, Inc. 10,573.51 10,573.51 10,573.51 Total 21,686,402.13 21,427,689.54 20,286,170.84 Church of Jesus Christ of Latter-Day Saints 10,000.00 10,000.00 10,000.00 Philippine Plumbing Company Inc. 10,000.00 10,000.00 10,000.00 `14. Financial Liabilities 17 ` 19 MLD Dream Builders Inc. 16,385.78 (33,614.22) (33,614.22) Fifth Avenue Property Dev't. Corp. 18,000.00 18,000.00 18,000.00 This account consists of the following: Primary Properties Corp. 10,000.00 10,000.00 10,000.00 Financial Liabilities 2016 2015 2014 Advances from Cebu Holdings, Inc. 2,936,074.34 2,936,074.34 2,936,074.34 Payables MYVAN Properties and Dev't, Inc. 10,000.00 10,000.00 10,000.00 Accounts Payable 69,077,880.97 67,583,434.20 34,535,342.45 Due to Officers and Employees-Disallowances 1,881,884.74 1,264,328.74 105,109.00 Jemmie Homes Subdivision 11,525.60 11,525.60 11,525.60 Loans Payable Villa Alessandra Subdivision 113,154.59 113,154.59 113,154.59 Current Portion of Long-term Debt 111,593,939.59 105,110,927.59 91,901,716.35 Long-term Debt - DBP 412,456,500.48 524,050,440.07 633,692,022.02 Megacrown Realty Development Corp. 975,691.43 975,691.43 975,691.43 Tax Refunds Payable Total 22,886,030.80 24,287,756.49 22,789,862.78 Employees Withholding Tax Refund 969,604.13 1,002,340.95 1,261,116.04 Total 595,979,809.91 699,011,471.55 761,495,305.86 18. Other Payables
The loans with the Local Water Utilities Administration (LWUA) were credit lines that were obtained to finance the various projects of the District. Interest rates from This account is composed of the following: these loans ranged from 10% to 14% per annum and were supposed to be amortized
over a period from 20 to 26 years. Other Payables 2016 2015 2014 Retention Payable (Note 18.1) 24,433,913.29 9,254,746.15 7,847,368.89 Operating Reserves On March 17, 2006, a contract of loan was entered with Development Bank of Other Operating Reserve 3,404,934.86 3,404,934.86 3,404,934.86 the Philippines (DBP) in order to refinance the existing long-term loans from Local Water Reserve for Retirement Benefit 213,322,209.35 230,184,595.53 278,256,824.16 Other Payables (Note 18.2) 107,422,835.24 109,803,998.47 75,101,763.88 Utilities Administration (LWUA). Salient terms and conditions of the contract are the 364,610,891.79 348,583,892.74 352,648,275.01 following: Total
Amount set-up as reserve for retirement benefits is based on the existing MCWD a. Term - 15 years to commence on the month following the release of the loan; Retirement Plan with respect to those who are already entitled thereto. This is intended b. Interest rate - 8.5% per annum computed using the annuity method; for the employees who were hired prior to April 1993. c. Interest differential/savings to be deposited to a Escrow Account; d. Loan to be secured by a real estate mortgage. 18.1 Retention Payable
However, starting April 2015, DBP has lowered the interest rate to 6%. Breakdown of this account is as follows:
Retention Payable 2016 2015 2014 15. Inter-Agency Payables Dakay Construction 3,537,825.42 3,537,825.42 2,713,177.26 International Elevator & Equipment 113,836.80 113,836.80 113,836.80 Kimwa Construction 58,980.51 58,980.51 58,980.51 This account is composed of the following: Ng Khai Dev. Corp. 72.00 151,755.90 169,695.00 N.V. Trinidad Construction 15,179.25 15,179.25 15,179.25 Inter-Agency Payables 2016 2015 2014 Schema Konsult, Inc. 11,619.60 11,619.60 11,619.60 Due to BIR 11,395,165.05 7,108,089.81 5,973,507.29 G.W.Drilling Services 20,700.00 20,700.00 20,700.00 Due to GSIS 4,138,003.14 4,233,194.41 4,375,223.21 Skynet Computer Center 132,967.40 132,967.40 132,967.40 653,650.47 597,683.31 737,842.32 Due to Pag-IBIG AVK Philippines Incorporated - - 45,463.60
` 18 ` 20
MCWD 26 ANNUAL REPORT 2016 FINANCIAL STATEMENTS
Hydro Phil Asia Inc 121,729.36 121,729.36 121,729.36 Accrued Maintenance of General Plant-Admin 21,286.30 43,751.18 84,478.85 FDRCon Company Inc 801,668.71 230,599.91 - Accrued Maintenance of General Plant-Motorpool 47,173.00 41,404.01 1,575,694.96 Felman Builders and Contractors 536,153.69 536,153.69 536,153.69 Accrued Taxes and Licenses 9,196,608.14 9,196,608.14 9,196,608.14 Geo-Transport & Construction, Inc. 9,173,587.42 3,125,394.42 1,378,915.30 Accrued Employees Benefits - GSIS 3,294,269.63 3,294,269.63 3,294,269.63 JJ&J Construction & Gen. Supply 5,937.10 5,937.10 5,937.10 In lieu Share - Mandaue City 367,825.00 367,825.00 367,825.00 Mystic Water Philippines Inc 236,500.00 46,410.00 167,718.00 Various Suppliers (Werr Corp) 14,086.51 14,086.51 14,086.51 DCTech Micro Services, Inc. 223,499.99 105,499.99 105,499.99 Various Association of Water Districts 35,000.00 35,000.00 35,000.00 Moldex Products Inc 91,707.90 91,707.90 351,742.21 Accounts Payable Others - Kyrgyzstan (0.01) (0.01) (0.01) Unifield Enterprises - - 47,500.00 Accounts Payable Others - Atty Dascil 1,000.00 1,000.00 1,000.00 189,000.00 189,000.00 189,000.00 Metro Struct & Indurstr Steelworks Corp Employees Fellowship Funds Payable 119,149.36 119,149.36 119,149.36 - 1,015,752.32 Houston Hydrotech Products and Systems inc. Employees Cooperative Fund Payable 580,475.00 (22,905.00) 687,475.00 - - 103,672.80 Fanm Enterprises Accrued Income 23,520.00 Forms International Ent. Corp - 73,800.00 73,800.00 Total 107,422,835.24 109,803,998.47 75,101,763.88 Infonet Solutions, Inc. - - 165,600.00 Waterkonsult Equipment and Services, Inc. 761,554.66 186,440.90 123,823.90 Zetta Solutions, Inc 28,200.00 28,200.00 28,200.00 19. Contingent Liability Work Essentials Trading 50,980.00 50,980.00 50,980.00 a) MCWD has a present obligation to the Cebu City Government for Real Tesk Trading 1,440.00 1,440.00 1,440.00 Nation Manufacturing and Industrial Products Corp 4,824.00 Property Taxes of real properties situated within the latter’s jurisdiction. These Moph Industrial Sales 62,662.40 58,002.80 93,460.80 Gotesco Marketing Corporation 199,248.30 222,941.50 - properties became the subject of foreclosure proceedings in 2012. The total Integrated Scientific & Indust'l Supply 109,000.00 51,500.00 - delinquency amounted to P 100M as of July 2015. However, questions arose Mabuhay Vinyl Corporation 14,010.00 - - Simplex Industrial Corporation 41,246.00 - - as to the taxability of some properties as they have been declared as Better Component Incorporated 86,143.70 - watersheds and therefore, exempt while others have different other Rex E. Morales Construction 4,391,918.67 - - AL. Gantuangco Construction 520,056.04 - - claimants or owners. Negotiations are on-going as to the settlement of this Big Brother Home Depot, Inc 22,185.90 - - obligation M. E . Sicat Construction, Inc. 1,954,502.23 - - R.O. Tesoro and Sons, Inc. 131,210.00 - - DSJP Construction 874,733.94 - - b) Franchise Tax Liability for the fiscal year 2003 payable to the Bureau of Total 24,433,913.29 9,254,746.15 7,847,368.89 Internal Revenue had a pending resolution with the Court of Tax Appeal
18.2 Other Payables (CTA). MCWD appealed that the interest and surcharges be condoned. However, on April 2014, a decision from the CTA was released and MCWD is Breakdown of this account is as follows: liable for the amount of P 28,645,421.74. Recently, MCWD filed a Motion for
Other Payables 2016 2015 2014 Reconsideration on the decision of CTA and the former is now waiting Accrued Employees Benefits Payable 1,000.26 1,000.26 resolution of this matter. Association of MCWD Managers - 13,100.00 (2,700.00) Cooperative Financing - 2,794.00 2,794.00 Cooperative Lending - Contractual - 655,353.57 72,064.45 Cooperative Lending - Regular - 1,024,906.81 735,782.20 20. Revenue Court Order (36,100.37) 91,476.69 122,373.66 MCWD Canteen Catering Service (8,500.00) 8,500.00 SSS Loans Payable 28,518.16 28,518.16 28,518.16 This account consists of the following: Villa Azul Cooperative Canteen - 512,027.81 406,846.34 INCOME 2016 2015
Donation to Charitable Institution 39,250.00 39,250.00 39,250.00 Service Income Accrued D' Family Park 491,729.08 - 98,502.22 Fines and Penalties - Service Income MCWD Provident Fund 3,343,188.61 3,625,240.34 4,110,164.70 Sewerage/Garbage Fees 7,316,809.28 MCWD Employees Union 937,812.44 1,410,744.44 273,071.45 Business Income MCWD Supervisors Association - 6,070.00 (3,240.00) Rent/Lease Income (Prince Warehouse Club) 4,289,050.72 4,134,521.68 ` 21 NHMFC - 9,794.66 11,193.24 Waterworks Systems Fee Accrued Environmental Fee 3,572,560.00 Metered Sales To General Customers 1,671,946,309.00 1,654,283,828.23 Various MCWD Associations 353,654.64 ` 23 Discount on Waterworks Systems Fee (42,498,917.20) (41,920,683.33) Cooperative Remittances 294,268.33 Senior Citizen Discount (87,090.95) (78,120.80) Accrued Purchased Water 50,460,916.42 60,195,397.94 24,538,552.86 Other Waterworks System Fees 36,723,228.34 28,902,297.94 Accrued Light and Power 18,488,588.40 17,383,118.55 19,398,163.09 Interest Income on Materials 21,082.18 14,589.17 Accued Pumping, Labor and Expenses 79,125.34 70,224.90 378,284.87 Water Levy 856,239.69 930,301.93 Accrued Fuel/Power Purchased for Pumping 472,734.89 1,287,795.61 Fines and Penalties - Business Income 13,181,618.68 12,313,635.68 Accrued Distribution - Labor and Expenses 382,956.43 330,131.11 476,268.95 Accrued Maintenance of Power, Production and Interest Income 9,759,392.02 7,858,337.73 75,085.77 44,125.41 39,360.47 Equipment Grants and Donations Accrued Operation Labor and Expenses 25,742.85 13,084.09 95,606.98 Income from Grants and Donations in Cash 88,200.00 70,800.00 Accrued Maps and Records 184,282.95 136,104.09 81,802.06 Gains Accrued Department Environment Expense 308,521.85 299,676.29 317,535.64 Gain on Foreign Exchange 379,592.87 Accrued Maintenance of Trans. And Distribution Mains 138,022.85 143,592.27 174,399.02 Other Non Operating Income (South) Accrued Maintenance of Trans. And Distribution Mains Income from Non-Utility Operations (Note 20.1) 29,239.52 522,347.19 154,586.76 144,712.00 203,458.96 (North) Misc. Non-Operating Revenue (Note 20.2) 19,344,130.06 24,389,885.11 Accrued Restoration - South 45,067.01 45,013.70 58,013.00 1,720,969,291.34 1,691,801,333.40 Accrued Restoration - North 84,875.28 91,159.36 102,640.94 Accrued Service Connection Cost 166,915.60 106,413.26 91,728.11 Accrued Rehabilitation - South 241,708.43 186,454.64 212,289.04 Accrued Rehabilitation - North 327,644.18 274,200.13 276,105.94 20.1 Income from Non-Utility Operations Accrued Maintenance of Meters 95,355.24 118,780.33 67,207.82 Accrued Construction Department Expense 10,794.82 21,283.79 72,562.57 Accrued Meter Reading Expense 142,798.63 95,516.35 227,687.88 This account consists of the following: Accrued Installation and Disconnection 118,265.48 198,932.58 302,163.52 Accrued Credit and Collection Expenses 10,202.20 Income from Non-Utility Operations 2016 2015 Accrued Treasury Expense 14,102.00 D' Family Park 130,038.88 636,411.57 Accrued Branch Administration 6,985.40 6,108.12 15,716.87 D' Family Park-Agency Fee (100,799.36) (114,164.38) Accrued Marketing Expense 14,677.75 13,081.84 11,542.80 Total 29,239.52 522,247.19 Accrued EDP Expense 58,637.07 53,908.53 68,080.48 Accrued Administation and Gen. Salaries 115,486.18 48,336.47 17,735.61 Accrued Overtime and Holiday Pay 1,484.04 2,749.10 3,350.00 20.2 Misc. Non-Operating Revenue Accrued Employees Pension and Benefits 1,084,765.00 76,000.00 Accrued MCWD Medical Plan 1,000,000.00 1,288,738.58 Accrued Professional Fees 27,000.00 This account consists of the following: Accrued Other Services Employed 10,226,355.30 3,683,516.76 19,263.55 Misc. Non-Operating Revenue 2016 2015 Accrued Travelling Expense 9,840.00 Accrued Security Services - Agency Fee 315,497.91 2,158.08 Bid Documents 1,449,000.00 2,026,530.00 Accrued Office Supplies Expense 930.00 Certification Fees 18,700.00 20,300.59 Accrued Communication Expense 250,000.00 224,482.90 250,666.67 Design Fee 20,000.00 Accrued Training Expense 159,192.55 Meter Test Charges 71,197.11 75,714.00 Accrued ISO Training Expense 7,165.40 5,050.88 120,335.84 Misc. Non-Oper. Revenue-Others 1,015,718.51 743,419.65 Accrued Directors' Travelling and Other Expenses 69,258.05 Misc. Non-Oper. Rev.-Others (NV) 11,199,161.93 14,734,918.01 Accrued Fuel, Oil and Lubricants 74,930.22 Misc. Non-Oper. Revenue-Auditorium 252,602.12 368,446.43 Accrued Miscellaneous General and Admin Expenses 470,087.70 679,648.80 Misc. Non-Oper. Revenue-Wtr. Truck Delivery 3,467,498.62 3,781,869.79 Accrued Uniform Expense 944,800.00 2,603,100.00 2,057,500.00 Misc. Non-Oper. Revenue-SMC 727,907.00 780,015.00 Accrued PAD Expenses 30,800.95 28,919.14 309,342.96 Penalties 1,122,344.77 1,858,671.64 Accrued Legal Expenses 23,030.25 52,554.72 34,792.55 Total 19,344,130.06 24,389,885.11 Accrued Procurement Services Expenses 45,169.64 794,953.05 86,080.88
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` 24 MCWD ANNUAL REPORT 2016 27 FINANCIAL STATEMENTS
21. Personnel Services
This account consists of the following:
PERSONNEL SERVICES 2016 2015 Major Events and Conventions Expenses 32,940.00 29,963.05 Salaries and Wages Other Maintenance and Operating Expenses 3,405.00 1,130.00 Salaries and Wages-Regular 155,726,715.91 153,542,849.50 Desludging Expenses 7,129,520.00 Salaries and Wages-Contractual 60,875,639.87 53,373,883.30 Litigation expenses & filing fees 178,137.38 186,814.59 Other Compensation Seedlings and other expenses 625,250.00 352,750.00 Personnel Economic Relief Allowance 4,716,544.53 4,737,490.55 Service Connection Cost 28,390,555.29 34,728,084.18 Representation Allowance 4,239,079.56 4,528,386.45 Grand Total 760,186,261.22 680,405,845.07 Transportation Allowance 4,230,579.56 4,460,386.45 Clothing / Uniform Allowance 4,330,400.00 4,520,400.00 Honoraria 4,612,446.20 4,903,683.31 23. Financial Expenses Longevity 10,984,800.00 11,307,577.57 Overtime and Night Pay 33,389,319.44 33,624,545.28 This account is composed of the following: Other Bonuses and Allowances 144,295,399.63 165,996,824.41 Personnel Benefit Contributions Financial Expenses 2016 2015 Retirement and Life Insurance Premiums 26,745,915.68 25,932,858.99 Interest Expense 36,384,923.87 47,388,213.32 Pag-IBIG Contributions 947,808.90 958,166.61 PhilHealth Contributions 2,448,425.00 2,396,212.50 24. Non-Cash Expenses Provident/Welfare Fund Contributions 30,626,561.20 29,323,199.11 Other Personnel Benefits Retirement Gratuity 7,985,383.12 8,457,004.12 This account consists of the following: Terminal Leave Benefits 9,054,402.76 4,268,713.86 Non Cash Expenses 2016 2015 Other Personnel Benefits 16,360,021.84 17,569,925.59 Depreciation Total 521,569,443.20 529,902,107.60 Depreciation - Investment Property 1,192,079.64 1,192,079.64 Depreciation - Water Plant, Structures and Improvements 2,885,864.77 288,505.61 22. Maintenance and Other Operating Expenses Depreciation - Buildings & Other Structures 7,933,791.91 7,790,524.20 Depreciation - Furniture, Fixtures & Books 683,354.57 618,885.73 Depreciation - Plant-Utility Plant in Service (UPIS) 97,088,117.51 96,081,753.01 This account consists of the following: Depreciation - Machinery & Equipment 21,096,676.73 21,419,894.18 Depreciation - Transportation Equipment 7,089,934.25 9,176,477.12 Maintenance and Other Operating Expenses 2016 2015 Amortization Traveling Expenses 1,920,528.93 2,409,196.85 Amortization - Intangible Assets 1,190,337.88 653,264.68 Training Expenses 4,203,528.51 3,057,973.58 Impairment Loss Supplies and Materials Expenses Impairment Loss - Loans and Receivables 665,178.11 2,651,127.66 Office Supplies Expense 6,453,895.35 4,843,165.94 Impairment Loss-Inventories 64,731.79 Fuel, Oil and Lubricants Expenses 8,041,752.77 6,125,857.97 Losses Semi Expendable Machinery and Equipment Expenses 175,453.13 122,895.00 Loss on Foreign Exchange (FOREX) 1,053,019.31 Semi Expendable Furniture, Fixtures and Books Expenses 96,853.85 24,696.00 Total 140,943,086.47 139,872,511.83 Chemicals and Filtering Supplies Expenses 6,836,154.98 10,316,555.35 Other Supplies and Materials Expenses 59,864,099.35 64,191,942.91 Utility Expenses 25. Supplementary Tax Information under Revenue Regulations No. 15-2010 Water Expenses 1,109,738.40 2,245,361.56 Electricity Expenses 12,623,187.69 12,400,652.07 The Bureau of Internal Revenue (BIR) issued on November 25, 2010 Revenue Communication Expenses Telephone/Postage Expenses 3,192,281.93 2,926,584.00 Regulation 15-2010 regarding the provision of additional disclosures in the notes to Internet Subcription Expenses 1,290,874.49 931,187.57 financial statements on information on taxes, duties, and license fees paid or accrued Cable, Satellite, Telegraph and Radio Expenses 32,241.50 ` 25 during the taxable year. Awards/Rewards, Prizes and Indemnities Awards/Rewards Expenses 2,066,845.22 5,071,599.40 In compliance with the requirements set forth by the aforementioned regulation, Indemnities 66,101.00 Survey, Research, Exploration and Development Expenses the Water District reported the following types of taxes, duties and license fees paid or Survey Expenses 231,775.00 55,400.00 accrued for the year ended December 31, 2016: Research, Exploration and Development Expenses 1,499,851.50 1,499,850.00 ` 27 Demolition/Relocation and Desilting/Drilling/Dredging Expenses Demolition and Relocation Expenses 402,000.00 25.1 Value-Added Tax (VAT) Desilting, Drilling and Dredging Expenses 1,165,900.00 1,811,700.00 Generation, Transmission and Distribution Expenses 527,021,317.90 444,045,099.98 Confidential, Intelligence and Extraordinary Expenses This account consists of the following: Extraordinary and Miscellaneous Expenses 3,915,110.04 6,449,474.98 Value Added Tax 2016 Professional Services Legal Services 210,500.00 142,621.76 Taxable Transactions 10,421,711.25 Consultancy Services 162,500.00 8,000.00 Tax Rate 12% Auditing Services 21,678.50 15,000.00 Output Tax 1,250,605.35 Other Professional Services 357,000.00 421,000.00 Less : Input Tax (19,412.72) General Services Less : Creditable VAT (2,888.85) Environment/ Sanitary Expenses 176,000.00 231,000.00 Total VAT Payment 1,228,303.78 Janitorial Services 2,013,999.57 2,104,780.73 Security Services 39,958,526.74 38,443,734.63 Other General Services 340,418.48 25.2 Withholding Taxes Repairs and Maintenance Repairs and Maintenance-Land Improvements (Reforestation Projects) 24,017.60 15,293.00 Repairs and Maintenance - Building and Other Structures 4,167,331.25 2,980,928.79 This account consists of the following: Repairs and Maintenance - Machinery and Equipment 3,251,853.26 1,790,039.49 Withholding Taxes 2016 Repairs and Maintenance - Transportation Equipment 1,174,415.15 548,209.70 Tax on Compensation ( 1601-C) 34,727,725.62 Repairs and Maintenance - Transportation Equipment 849,085.85 668,076.83 Creditable Income Taxes (1601-E) 17,261,759.44 Repair and Maintenance - Other Property, Plant and Equipment 977,362.90 2,167,350.00 Other Percentage Taxes (1600) 49,935,727.49 Financial Assistance/Subsidy Total Withholding Tax 101,925,212.55 Financial Assistance to Local Government Units 11,743,382.41 12,267,883.98 Financial Assistance/Subsidy-Others 70,000.00 89,965.00 Percentage Tax on Franchises 2016 Taxes, Insurance Premiums and Other Fees Percentage Tax on Franchises (2551-M) 36,096,316.62 Taxes, Duties and Licenses 1,111,858.94 1,232,729.59 Less: Creditable Percentage Tax Withheld (732,421.78) Insurance Expenses 2,057,375.82 2,356,077.12 Income Tax Expenses 1,141,347.00 Net Percentage Tax on Franchises 35,363,894.84 Labor and Wages 125,730.25 Other Maintenance and Operating Expenses 25.3 All Other Taxes Advertising, Promotional and Marketing Expenses 3,386,091.39 3,116,376.83 Printing and Publication Expenses 240,752.88 627,189.83 Transportation and Delivery Expenses 2,251,320.89 2,711,525.49 This account consists of the following: Rent/Lease Expenses 1,297,608.99 1,212,857.86 Taxes, Duties and Licenses 2016 Membership Dues and Contributions to Organizations 646,288.62 633,870.38 BIR Registration / Doc Stamps / Cert fee 1,865.00 Subscription Expenses 52,974.00 104,949.20 Processing & Permit Fees - Legal 90,849.38 Donations 1,959,955.97 368,207.47 Taxes - Real Property Taxes / Donor's Tax 1,019,144.56 Directors and Committee Members' Fees 2,071,658.30 2,096,169.66 Total 1,111,858.94
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MCWD ` 28 28 ANNUAL REPORT 2016 FINANCIAL STATEMENTS
26. Approval of Financial Statements
The financial statements of the Water District for the year ended December 31, 2016 (including the comparatives for 2015 and 2014) were authorized for issue by the Water District’s Board of Directors on February 9, 2017.
27. Reclassification
Certain accounts in the 2015 and 2014 financial statements are reclassified to conform to the 2016 financial statements presentations. —oOo—
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