Republic of the Philippines
JAEN WATER DISTRICT JAEN, NUEVA ECIJA
STATEMENT OF MANAGEMENT RESPONSIBILITY FOR FINANCIAL STATEMENTS
The management of Jaen Water District is responsible for all information and representation contained in the Detailed and Condensed Balance Sheet as of December 31, 2014 and the related Detailed and Condensed Statement of Income and Expenses including the Statement of Cash Flows for the year then ended. The financial statements have been prepared in conformity with applicable laws and regulations and generally accepted NGAS accounting principles applied on a consistent basis and reflect amounts that are based on the best estimates and informed judgment of management with an appropriate consideration for materiality.
In this regard, management maintain a system of accounting 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 are recognized.
The Commission On Audit, in the presence of its mandate under Section 2, Article IX-D of the Philippine Constitution and pertinent provisions of Presidential Decree 1445, has audited the financial statements of the District in accordance with the COA laws and standards, and applicable generally accepted auditing standards and has expressed its opinion on the fairness of presentation upon completion of such examination in its report to the Board of Directors.
JAEN WATER DISTRICT Jaen, Nueva Ecija
STATEMENT OF FINANCIAL POSITION As of December 31, 2014 (With Comparative Figures for 2013) (In Pesos)
Note
2014
2013
Increase (Decrease)
ASSETS Current Assets Cash
2.1 & 3
4,625,988.20
5,080,435.83
(454,447.63)
Receivables (Net)
2.2 & 4
3,896,509.23
2,713,252.80
1,183,256.43
Inventories
2.3 & 5
853,152.33
782,469.39
70,682.94
9,375,649.76
8,576,158.02
799,491.74
46,509,402.58 120,418.33 46,629,820.91 56,005,470.67
41,791,330.16 41,791,330.16 50,367,488.18
4,718,072.42 120,418.33 4,838,490.75 5,637,982.49
Non-Current Assets Property Plant & Equipment (Net) Other Assets
2.4 & 6 2.5 & 7
TOTAL ASSETS
LIABILITIES AND EQUITY Current Liabilities Payable Accounts
2.6 & 8
4,270,482.51
2,659,901.93
1,610,580.58
Inter-Agency Payables
2.6 & 9
289,756.04
201,818.50
87,937.54
Other Liability Accounts
2.6 & 10
239,176.77
257,869.57
(10,092.80)
4,799,415.32
3,119,590.00
1,688,425.32
18,170,165.78 707,885.30 18,878,051.08 23,677,466.40
18,870,672.54 18,870,672.54 21,990,262.54
(700,506.76) 707,885.30 7,378.54 1,695,803.86
6,100,021.79
4,641,479.89
1,458,541.90
Retained Earnings TOTAL EQUITY
26,227,982.48 32,328,004.27
23,735,745.75 28,377,225.64
2,492,236.73 3,950,778.63
TOTAL LIABILITIES AND EQUITY
56,005,470.67
50,367,488.18
5,646,582.49
Non-Current Liabilities Loans Payable - Domestic Other Deferred Credits TOTAL LIABILITIES
2.7 & 11 2.7 & 12
EQUITY Net Income
(See accompanying Notes to Financial Statements)
JAEN WATER DISTRICT Jaen, Nueva Ecija
STATEMENT OF FINANCIAL PERFORMANCE For the Year Ended December 31, 2014 (With Comparative Figures for 2013) (In Pesos)
Note
2014
Increase (Decrease)
2013
INCOME Business Income Other Income
13
Gross Income Less: Operating Expenses Personal Services Salaries and Wages Other Compensation Personnel Benefits Contributions Other Personnel Benefits Total Personal Services Maintenance and Other Operating Services Travelling Expenses Training Expenses Office Supplies Expenses Accountable Forms Expenses Medical, Dental and Laboratory Supplies Expenses Gasoline,Oil,Lubricants and other Fuel Expenses Other Supplies Expense Electricity Expenses Postage & Deliveries Telephone Expenses Cooking Gas Expenses Internet Expenses Membership Dues & Contributions to Organizations Advertising Expenses Representation Expenses Legal Services Auditing Services Other Professional Services Repairs & Maintenance Donations Extraordinary Expenses Miscellaneous Expenses Taxes,Duties and Licenses Fidelity Bond Premiums Insurance Expenses Non Cash Expenses Other Maintenance and Operating Expenses Total Maintenance and Other Operating Expenses 14 Total Operating Expenses Net Operating Income (Loss) Add: Other Income (Expense) Financial Expenses Other Financial Charges Prior Years' Adjustments NET INCOME (LOSS)
14
25,225,930.41 751,172.20 25,977,102.61
21,649,525.52 466,603.20 22,116,128.72
3,576,404.89 284,569.00 3,860,973.89
5,458,306.02 1,646,343.86 540,062.88 300,500.00 7,945,212.76
4,783,272.60 1,163,297.50 534,497.68 493,000.00 6,974,067.78
675,033.42 483,046.36 5,565.20 (192,500.00) 971,144.98
233,806.32 173,194.55 115,604.59 37,260.00 67,200.00 698,094.22 310,402.80 2,586,220.13
127,025.85 212,678.00 74,640.30
106,780.47 (39,483.45) 40,964.29 37,260.00 32,800.00 (182,917.93) (341,697.20) 746,736.36 (190.00) 7,716.76 (930.00) (4,494.95)
153,529.67 5,994.00 39,084.00 185,675.45 150,446.19 25,500.00 254,657.38 824,896.08 6,600.00 7,200.00 1,790.00 348,402.14
2,720,175.67 104,405.09 9,050,138.28 16,995,351.04 8,981,751.57
2,266,314.22 615,415.56 6,100,021.79
(See accompanying Notes to Financial Statements)
34,400.00 881,012.15 652,100.00 1,839,483.77 190.00 145,812.91 930.00 10,488.95 44,458.00 69,994.90 90,130.64 22,500.00 38,939.00 401,040.00 538,605.79 40,153.34 77,116.69 235,148.75 5,812.50 15,382.00 2,474,175.93 95,296.70 8,127,516.17 15,101,583.95 7,014,544.77
2,346,567.19 26,497.69 4,641,479.89
(5,374.00) 115,680.55 60,315.55 3,000.00 215,718.38 (401,040.00) 286,290.29 6,600.00 (32,953.34) (75,326.69) 113,253.39 (5,812.50) (15,382.00) 245,999.74 9,108.39 922,622.11 1,893,767.09 1,967,206.80
(80,252.97) (26,497.69) 615,415.56 1,458,541.90
JAEN WATER DISTRICT Jaen, Nueva Ecija
STATEMENT OF CASH FLOWS For the Year Ended December 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES: Cash Inflows Collection from Concessionaires - Water Sales Collection of Other Receivables Collection - Disallowances/Charges Proceeds from Sale of Materials - new connection Other Business Income Miscellaneous Income Refund of Over Payment of Expenses/PCF Due From Officers and Employees Guaranty Deposits Total Cash Inflows
2014
2013
25,192,872.88 349,778.93 77,400.00 1,163,428.12 147,471.76
21,263,520.24 18,310.34
374,443.50 88,642.06
299,957.82 124,021.52 6,594.06
1,304,214.15 75,481.99
Increase/ (Decrease) 3,929,352.64 331,468.59 77,400.00 (140,786.03) 71,989.77
22,000.00 27,416,037.25
23,092,100.12
74,485.68 (35,379.46) (6,594.06) 22,000.00 4,323,937.13
(5,367,608.64) (4,997,824.38)
(4,728,208.50) (4,678,733.60)
(639,400.14) (319,090.78)
(2,636,400.69)
(2,344,402.71)
(291,997.98)
(6,980,663.61) (483,150.00)
(3,402,203.83) (434,199.00)
(3,578,459.78) (48,951.00)
(232,251.66)
232,251.66 (10,000.00) (2,266,314.24) (8,465.10)
(22,750,426.66)
(15,819,999.30)
(6,930,427.36)
4,665,610.59
7,272,100.82
(2,606,490.23)
(3,259,714.87) (1,169,837.59)
(1,056,598.00)
(3,259,714.87) (113,239.59)
(4,429,552.46)
(1,056,598.00)
(3,372,954.46)
(4,429,552.46)
(1,056,598.00)
(3,372,954.46)
Cash Outflows Loan amortization Total Cash Outflows
(700,505.76)
(2,966,820.00)
2,266,314.24
(700,505.76)
(2,966,820.00)
2,266,314.24
Net Cash Provided (Used in) Financing Activities
(700,505.76)
(2,966,820.00)
2,266,314.24
(464,447.63) 5,090,435.83 4,625,988.20
3,248,682.82 1,841,753.01 5,090,435.83
(3,713,130.45) 3,248,682.82 (464,447.63)
Cash Outflows Payment of Operating Expenses Payment of Payroll Remittance of GSIS,Pag-ibig,Witholding Tax,Philhealth Payment to Suppliers Grant of Cash Advances - Due from Off & Employees Repair & Maintenance Petty Cash Fund Payment of Interest Purchase of Office Supplies Total Cash Outflows Net Cash Provided(Used in) Operating Activities
(10,000.00) (2,266,314.24) (8,465.10)
CASH FLOWS FROM INVESTING ACTIVITIES Cash Inflows Proceeds from matured investment(grants) Total Cash inflows Cash Outflows Construction in Progress Purchase/acquisition of property,plant and equipment Total Cash Outflows Net Cash Provided(Used in) Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Cash and Cash Equivalents Add: Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending
(See accompanying Notes to Financial Statements)
JAEN WATER DISTRICT Jaen, Nueva Ecija
STATEMENT OF CHANGES IN NET ASSETS/EQUITY For the Year Ended December 31, 2014
Note
Balance at January 1, 2014 Changes in Accounting Policy Prior Period Adjustments/Unrecorded Income and Expenses Other Adjustments Restated Balance
Accumulated Surplus/(Deficit)
28,377,225.64 (615,415.56) 27,761,810.08
Changes in Net Assets/Equity for the Calendar Year Adjustment of net revenue recognized directly in net assets/equity Surplus Total recognized revenue and expense for the period
(2,149,243.16) 6,715,437.35 4,566,194.19
Balance at December 31, 2014
32,328,004.27 (See accompanying Notes to Financial Statements)
JAEN WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS
1 AGENCY BACKGROUND
Jaen Water District (JWD) was created by virtue of the Local Sangguniang Bayan Resolution No. 17 dated February 17, 1987. Eventually, it was granted by the Local Water Utilities Administration (LWUA) the 290th Certificate of Conditional Conformance on June 5, 1987. JWD inherited a deep well that was previously maintained by the municipal government which was originally constructed in 1976 by the National Irrigation Administration. The deep well has a production capacity of 40 liters per second. In 1988, LWUA approved a P1.2 million mini loan for the development of the system. The project included the construction of a piped water supply system, which are the transmission and distribution pipelines to enable individual household service connections. Ten years after 1988, a P3.991 million Level III loan was availed by the District to upgrade the water supply system. The project included the construction of a reservoir and installation of a five horsepower electricity-driven submersible pump. Also in 1988, an existing well in Barangay Sapang was commissioned by JWD with the installation and housing of a 1.5 horsepower submersible pump. It has a lower yield of .083 liters per second. A third deep well was developed by the District in 1999 at Barangay San Vicente with a capacity of 3.05 liters per second.
Jaen Water District’s vision states: An institution responsive to the needs of the consuming public and committed to provide the highest degree of service and continuous delivery of potable water to the constituents of the Municipality of Jaen.
Further, the District’s mission states: To deliver adequate supply of potable water of excellent quality and to provide the best service to its consumers with water rates that are affordable and acceptable to the public. It is also committed to preserve the watershed, protect the environment and expand services consistent with the needs of the residents.
As of December 31, 2014, JWD already covers twenty five (25) barangays, serves twenty four (24) barangays and total active service connections of 4,601. JWD is categorized as “C” water district and is presently headed by Engr. Lamberto L. Roxas. It has a total work force of nineteen (19) permanent and twenty (20) job-order employees. The BOD is composed of the following:
Mrs. Soledad J. Galang Mr. Lamberto S. Francisco Mr. Moises G. Eduardo Mrs. Emiliana C. Garcia Mrs. Nenita Carlos
Chairman Vice-Chairman Member Member Member
Professional Education Business Women Civic
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used in the preparation of the financial statements are summarized below: Basis of Preparation
The financial statements were prepared on a historical cost basis and transactions are recorded in accordance with the New Government Accounting System (NGAS) prescribed by the Commission on Audit. The measurement basis is described in the accompanying accounting policies as shown below. 2.1 Cash Cash are defined as cash on hand, cash in banks (local and foreign currency) and short-term, highly liquid investments readily convertible to known amounts of cash and which are subject to insignificant risk of change in value Cash is valued at face value. It includes petty cash/revolving fund. Office collections are deposited the following day.
2.2 Receivables This includes Accounts Receivables, Other Receivables and Receivables – Disallowances/Charges. Accounts Receivables - refers to receivables from customers which includes all amounts due arising from services rendered to customers for water sales and incidental services. Allowance for Bad Debts represents amount of accounts receivables which are likely to become uncollectible. Other Receivables are receivables arising from concessionaires who availed of the one year installment basis for new service connections after paying the downpayment.
2.3 Inventories Inventories are materials and supplies that are kept in stock for future use in operations. These are grouped into office supplies, accountable forms and construction materials. Inventories are stated at cost based on the first-in first-out method and determined on the basis of inventory control records. Tangible assets with serviceable life of more than one year, but small enough to be considered as Property, Plant and Equipment are considered as Inventories upon purchase and expensed once issued.
2.4 Property, Plant and Equipment Property and equipment are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and directly attributable costs of bringing the asset to working condition for its intended use. Expenditures for additions, improvements and renewals are capitalized; expenditures for repairs and maintenance are charged to expense as incurred. When assets are sold, retired or otherwise disposed of, their cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected as income or expense for the period.
Depreciation is computed based on the straight-line basis over the estimated useful lives of the assets and a residual value equivalent to ten percent (10%) of the acquisition cost as prescribed by COA. Fully depreciated assets are retained in the accounts until they are no longer in use and no further charge for depreciation is made in respect of those assets.
2.5 Other Assets Other Assets include unserviceable assets and fully depreciated Property, Plant and Equipment which are no longer in use.
2. 6 Current Liabilities Current Liabilities are obligations that are due within one year from balance sheet date. It includes payable accounts, inter - agency payables and other liability accounts. Other Payables Account refers to franchise taxes to be paid to BIR for the years 2012 to 2013.
2.7 Long Term Liabilities Long Term Liabilities pertains to the loan of the Water District that is not due within one year from the date of the balance sheet.
2.8 Deferred Credits Deferred Credits consists of Fines and Penalties billed to customers in arrears but not yet collected.
3
CASH This account is composed of the following: Account No. Cash – Collecting Officers Cash in Bank – Local Currency, Current Account Landbank
TOTAL CASH
4
002332-1011-48
2014 29,587.46
2013 101,450.43
4,596,400.74
4,978,985.40
P 4,625,988.20
P 5,080,435.83
2014
2013
RECEIVABLES
Accounts Receivable Ending Balance Less: Allowance for Doubtful Accounts
Other Receivables Receivables – Disallowances/ Charges
3,000,424.14
2,662,651.13
(67,890.02)
(67,890.02)
2,932,534.12
2,594,761,11
923,885.95
118,493.01
40,089.16 (1.32)
Due from Officers and Employees TOTAL RECEIVABLES
P 3,896,509.23
P 2,713,252.80
5
INVENTORIES This account is composed of the following:
Office Supplies
2014 21,784.12
2013 21,645.40
Accountable Forms
127,238.00
220,843.00
Construction Materials
704,130.21
539,980.99
P
853,152.33
P
782,469.39
6 PROPERTY, PLANT AND EQUIPMENT This account pertains to all properties of the District which are permanent in character and with expected useful life of more than one year. The gross carrying amounts and the accumulated depreciation of the Property, Plant and Equipment are shown below:
Cost Land Land Improvements Office Building Other Structures Office Equipment Furniture and Fixtures IT Equipment and Software Machinery Communication Equipment Motor Vehicle Other Property, Plant and Equipment Wells Reservoir and Tanks Flow Meter Water Meter Tools Transmission and Distribution Line Hydrant/Flushing Valve Transformer
TOTAL PPE
Accumulated Depreciation
Net Book Value
2,042,280.00 138,184.98 720,617.92 1,571,655.45 94,971.16 111,529.40 318,680.73 6,762,178.16 7162.00 1,747,861.00
45,192.90 333,795.10 362,831.74 80,823.10 70,402.48 242,102.77 3,403,007.23 6445.80 1,219,342.45
2,042.280.00 92,992.08 386,822.82 1,208,823.71 14,148.06 41,126.92 76,577.96 3,359,170.93 716.20 528,518.55
6,043,322.88 6,215,117.38 109,650.00 70,507.92 176,410.00 40,017,314.68 74,196.00 859,782.15 P 67,081,421.81
788,005.76 3,640,708.81 74,223.00 63,457.13 116,215.96 9,882,899.72 31,489.74 211,075.54 P 20,572,019.23
5,255,317.12 2,574,408.57 35,427.00 7,050.79 60,194.05 30,134,414.96 42,706.26 648,706.61 P 46,509,402.58
7 OTHER ASSETS These are the following items:
Unserviceable Assets Office Equipment Furniture and Fixtures IT Equipment and Software Machinery Communication Equipment Water Meter Total Other Assets
Book Value
P
2,134.50 5,585.75 17,535.21 78,092.17 479.00 16,591.70 120,418.33
8 PAYABLE ACCOUNTS This account consists of deliveries of various materials and services rendered, as follows: 2014 4,261,882.51 8,600.00
Accounts Payable Due to Officers and Employees
2013 2,659,901.93 -
9 INTER-AGENCY PAYABLES This account includes those current liabilities held by the District in behalf of other government agencies. Such dues will be remitted in accordance within the prescribed period set by such agencies. This account consists of the following:
Due to BIR Due to GSIS Due to PAG-IBIG Due to PHILHEALTH TOTAL Inter-Agency Payables
P
2014 91,294.20 146,880.43 43,931.41 7,650.00 289,756.04
P
2014 22,000.00 217,176.77 239,176.77
P
2013 15,263.06 129,403.40 51,677.04 5475.00 201,818.50
10 OTHER LIABILITY ACCOUNTS The balances at the end of the year are shown below:
Guaranty Deposits Payable Other Payables TOTAL
2013 257,869.57 257,869.57
P
Guaranty Deposits Payable consists of customers mainline extension deposits. Other Payables includes franchise taxes payable pertaining to previous years 2012 and 2013.
11 LONG TERM LIABILITIES This loan account availed was from Local Water Utilities Administration (LWUA).
12 OTHER DEFERRED CREDITS This account pertains to Fines and Penalties not yet collected as of yearend.
13 OPERATING REVENUES These consist of: 2014 24,344,234.55 881,695.86 147,271.76 603,900.44
Metered Sales to Concessionaires Penalty Charges Application Fee (Other Business Income) Service Fee (Miscellaneous Income) TOTAL Operating Revenues
P
25,977,102.61
2013 20,733,266.14 916,259.38 75,281.99 391,321.21 P
22,116,128.72
14 OPERATING EXPENSES These consist of the following: 2014 7,945,212.76 9,050,138.28 2,266,314.22
Personal Services Maintenance and Other Operating Expenses Financial Expenses TOTAL Operating Expenses
P
19,261,665.26
2013 6,974,067.78 8,127,516.17 2,373,064.88 P
17,474,648.83
