STATEMENT FOR The management of the Davao City Water District is responsible for all information and representation contained in the Statement of Financial Position as at December 31,2016 and the related Statement of Comprehensive Income and Statement of Cash Flows for the period then ended. The financial statements have been prepared in conformity with Philippine Financial Reporting Standards and reflect amounts that are based on best estirnates and informed judgment of management with an appropriate consideration of materiality. In this regard, management maintains a systern of accourting and reporting which provides for the necessary internal controls to ensure that ,transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition and liabilities recognized. 8<t L LAI.D Admin Davao City Water District, Davao City Page5 AUDITED FINANCIAL STATEMENTS DAVAO CITY WATER DISTRICT STATEMENT OF FINANCIAL POSITION As at December 3lr 2016 (lYith comparative figures for CY 2015) (Amounts in Philippine Peso) Notes 2016 2015 ASSETS Current Assets Cash and Cash Equivalents 2.4.1 & 5 495,343,462.26 336,459,676.25 Receivables 2.4.2 & 6 155,744,105.72 164,959,021.48 lnventories 2.4.3 &7 157,402,577.96 161,450,580.98 Prepayments 2.4.4 & 8 29,960,400.79 32,189,379.10 Total Current Assets 838i350,546.73 695,058,657.91 Non-Current Assets Investments 2.4.5 &9 24,729,594.15 24,461,370.13 Property, Plant and Equipment 2.4.6 & t0 1,494,455,577.70 1,269,527,026.61 Construction in Progress 2.4.7 & tt 1,480,941,149.13 932,570,519.02 Other Assets 2.4.8 & t2 2,317,139,634.99 2,081,104,549.51 Total Non-Current Assets 5"317,165,945.96 4,306,663,463.27 TOTAL ASSETS 6,155,516,492.59 5,001,722,121.09 LIABILITIES AND NET ASSETS/EQUITY LIABILITIES Current Liabilities Payable Accounts 2.4.9 & t3 45,118,234.66 41,593,699.09 lnter-Agency Payables 2.4.9 & 14 28,122,623.59 25,070,364.25 Other Liability Accounts 2.4.9 & 15 103,072,413,46 76,190,913.44 Total Current Liabilities 176,313,271.71 142,854,965.19 Non-Current Liabilities Long-Term Liabilities t6 839J08,213.39 494,847,906.00 Deferred Credits 17 0.00 757,835.00 Total Non-Current Liabilities 839,308,213.39 495,605,741.00 TOTAL LIABILITIES 1,015,621,485.10 638,460,706.78 Davao City Water District, Davao City Page 6 ATJDITED FINANCIAL STATEMENTS DAVAO CITY WATER DISTRICT STATEMENT OF F'INANCIAL POSITION As at December 3lr 2016 (With comparative figures for CY 2015) (Amounts in Philippine Peso) Notes 20t6 2015 NET ASSETS/EQUITY Equity Govemment Equity l8 5,139,895,007.49 4,363,261,414.30 TOTAL NET ASSETS/EQUITY 5,I39,895,007.49 4,363,261,414.30 TOTAL LIABILITIES AND NET ASSETS/EQUITY 6,155,516,492.59 5,001,722,121.09 See accompanying Notes to Financial Statements. Davao City Water District, Davao City PageT AUDITED F'INANCIAL STATEMENTS DAVAO CITY WATER DISTRICT STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31,2016 (With comparative figures for CY 2015) (Amounts in Philippine Peso) Notes 20r6 2015 Revenue General Income Accounts l9 2,169,721,103.60 2,022,916,537.68 Less: Current Operating Expenses Personnel Services 2t 425,197,659.97 395,101,829.50 Maintenance and Other Operating Expenses 22 924,375,058.94 747,380,623.93 Financial Expenses z3 39,271,662.97 25,967,712.37 Total Current Operating Expenses 1,338,844,381.88 1,168,450,165.80 Surplus(Deficit) from Current Operations 780,876,721.72 854,466,371.88 Gain/Loss Accounts 20 2,806.25 3,102.36 Surplus /(Deficit) for the period 780,879,527.97 854,469,474.24 See accompanying Notes to Financial Stalernen8. Davao City Water District, Davao City Page 8 AUDITED FINANCIAL STATEMENTS DAVAO CITY WATER DISTRICT STATEMENT OF CHANGES IN EQUITY For the Year Ended December 31,2016 (With comparative figures for CY 2015) (Amounts in Philippine Peso) Notes 2016 20ts Government Equity Balance at the beginning of the period l8 4,247,664,985.36 3,528,771,395.92 Additions (deductions) (67,682,552.18) ( 135,575,884.80) Net income (loss) for the period 780,879,527.97 854,469,474.24 Balance at the end ofthe period 4,960,961,961.15 4,247,664,985.36 Donated Capital Balance at the beginning of the period 50,613,211.09 50,613,21 1.09 Additions (deductions) 0.00 0.00 Balance at the end ofthe period 50,613,211.09 50,613,211.09 Restricted Capital Balance at the beginning ofthe period 64,983,217.85 5,643,798.85 Additions (deductions) 63,436,617.40 59,339,419.00 Balance at the end ofthe period 128,419,835.25 64,983,217.85 TOTAL 5,139,895n007.49 4,363,261,414.30 See accompanying Notes to Financial Statements. Davao City Water District, Davao City Page 9 AUDITED FINANCIAL STATEMENTS DAVAO CITY WATER DISTRICT STATEMENTOFCASH FLOWS For the Year Ended December 31,2016 (With comparative figures for CY 2015) (Amounts in Philippine Peso) Notes 2016 20ts Cash Flows from Operating Activities Cash Inflows: Collection of Receivables 2,087,031,256.57 I ,956,506,929.37 Collection of Business Income 29,178,700.00 22,140,540.62 Collection of Other Income 15,286,342.72 6,543,930.33 Payment of Salaries and Wages 182,866.75 98,286.10 Receipt of Performance/Bidders Bond 3,011,042.99 2,543,960.14 Receipt ofFunds for Specific Purpose 3,557,787.3I 2,063,662.35 Refund ofCash Advance 1,234,370.40 I,410,801.14 Receipt of Guaranty Deposits 135,886.00 134,499.80 Collection of Personal Accounts 1,055,200.92 2,166,675.13 Collection of Overpayment of Expenses 947,585.53 1,969,905.75 Cancellation of Lost/Stale Checks During/In 137,058.93 240,509.97 Prior Years Collection of Other Receivables 1,575,024.51 778,412.37 Total Cash Inflows 2,143,333,122.63 1,996,598,1 13.07 Cash Outflows: Payment of Operating Expenses 967,138,034.07 I ,020,259,5 85.06 Payment of Retirement PaylSeparation Pay 14,798,656.29 9,949,011.69 Remittance of Taxes Withheld from Suppliers, 88,620,337.36 68,2s0,448.40 Contractors and Other Creditors Payment for Prepayments 2,291,093.03 6,429,079.48 Refund of Performance, Guarantee and Bidders 3,924,218.27 1,477,326.46 Bond to Contractors Remittance of Authorized Deduction Withheld 99,961,381.20 96,303,651.44 on Employees (Employees Share) Debit Memo to Accounts Receivable - 1,123,399.43 1,984,266.54 Customers Refund of Guaranty Deposit/Retention Fee 17,314,020.94 27,826,023.21 Total Cash Outflows 1,195,171,140.59 1,232,479,392.28 Net Cash Flows Provided by Operating Activities 948,161,982.04 764,118,720.79 Davao City Water District, Davao City Page l0 AUDITED FINANCIAL STATEMENTS DAVAO CITY WATER DISTRICT STATEMENTOFCASH FLOWS For the Year Ended December 31, 2016 (With comparative figures for CY 2015) (Amounts in Philippine Peso) Notes 2016 2015 Cash Flows from Investing Activities Cash Inflows: Receipt of Cash from Terminated Time Deposits 653,422,424.46 5\5,310,371.57 under Restricted Fund and Other Adjustments Refu nd from DPWFVCity Governm ent/ City Engineerins Office 1,041,571.60 657,480.69 Total Cash Inflows 654,463,996.06 515,967,852.26 Cash Outflows: Payment for Progress Billing of Contractor for s91,193,224,77 427 Construction for Agency Assets ,127 ,925.35 Transfer of Funds to Restricted Cash Account 982,395298.56 8 r 9,51 1,571.02 Payment of Items Purchased/Property 120,933,047.59 Chargeable to the Project 197,055,792.50 Payment to DPWH, DPWH-District Engineers Office and City Treasurer's Office Charged to E25,852.22 124,684.77 the Project Purchase of Property, Plant and Equipment 46,280,243.44 58,231,289.05 Payment of Salaries and Wages Charged to the 11,567,139.82 9,657,708.35 Proiect Total Cash Outflows 1,753,194,806.39 l,5l 1,708,971.04 Net Cash Flows Used in Investing Activities (1,098,730,810.33) (995,741,1 18.78) Cash Flows from Financing Activities Cash Inflows: Receipt ofCash Loan Proceeds 379,739,160.55 340,799,7',13.72 Total Cash Inflows 379,739,160.55 340,799,773.72 Cash Outflows: Payment for Amortization of Domestic Loans 70,286,546.25 44,091,966.65 Total Cash Outflows 70,286,546.25 44,091,966.65 Net Cash Provided by financing Activities 309,452,614.30 296,707,807.07 Increase in Cash and Cash Equivalents 158,883,786.01 6s,085,409.08 Cash and Cash Equivalents, January 1,2016 336,459,676.25 271,324,267.17 Cash and Cash Equivalents, December 31r 2016 5 495,343,462.26 336,459,676.25 See accompanying Notes lo Financial Sralements. Davao City Water District, Davao City Page I I NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS (All amounts in Philippine Peso unless otherwise stated) 1. Agency Background Presidential Decree No. 198, otherwise known as the Provincial Water Utilities Act of 1973, as amended by Presidential Decree Nos.