Republic of the Philippines

CITY OF KORONADAL
Province of South Cotabato
Barangay Carpenter Hill

NOTES TO FINANCIAL STATEMENTS

December 31, 2021
(with comparative figures as of December 31, 2019 and 2020)

Note 1. General Information

Barangay Carpenter Hill was created on January 9, 1952 by virtue of RA 2370 in honor of
the late Lieutenant Carpenter. It is 7 kilometers away from the city. It has a total land area of
1,390.57 hectares. Brgy. Carpenter Hill has a total population of 7,738 with 1,769 total
number of households. The barangay exercises the functions and responsibilities necessary
for the efficient and effective provision of the following basic services: agricultural support
services; health and social welfare services; services and facilities related to general hygiene
and sanitation, beautification, and solid waste collection; maintenance of katarungan
pambarangay; maintenance of barangay roads and bridges and water supply systems;
infrastructure facilities; information and reading center; and satellite or public market.

Barangay Carpenter Hill is presently governed by the following officials:

Punong Barangay : Hon. Carl Anthony S. Rubiato

Barangay Kagawad : Hon. Argie D. Pastera.
Hon. Reslie R. Tabacon
Hon. Efren T. Decio
Hon. Ebzar L. Dimalilay
Hon. Emmylou G. Medalla
Hon. Jonathan J. Catedral
SK Chairman : Hon. Justine Marie M. Yago
Barangay Treasurer : Joey T. Sinangote
Barangay Secretary : Darwin F. Natalio

Note 2. Summary of Significant Accounting Policies

2.1 Statement of compliance and basis of preparation

The financial statements have been prepared in accordance with and comply with the
International Public Sector Accounting Standards. The financial statements are
presented in Pesos and the figures are rounded to the nearest pesos.

The financial statements are prepared on the basis of historical cost. The cash flow
statement is prepared using the direct method. The Statement of Comparison of

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Budget and Actual Amounts is presented according to the classification adopted for
budgeting purposes.

2.2 Summary of Significant Accounting Policies

a. Revenue Recognition

Revenues are recorded when received.

Revenue from non-exchange transactions

Taxes, grants and donations are recognized when taxable/event occurs. Transfers
of funds from other government agencies without specific purpose for which the
fund will be utilized are recognized as non-exchange transactions.

Revenue from exchange transactions

Revenues from fees on issuance of certifications and clearances and other services
rendered, sale of goods are recognized as exchange transactions.

b. Expenses

Expenses are recognized and taken up in the accounts when incurred.

c. Inventories

Inventories are initially recognized at cost. The cost comprises all costs of
purchase, costs of conversion and other costs incurred in bringing the inventories
to their present location and condition. The cost of inventories is assigned
following the moving average method and measured at the lower of cost and net
realizable value as at every reporting date. Inventories acquired thru non-
exchange transactions are recognized at its fair value at the time of transfer.

d. Recognition of Liabilities

Liabilities are recognized at the time goods and services are accepted or rendered.

e. Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation.
Major repairs, which extends the life of the asset are capitalized and depreciated
together with the asset.

Depreciation is charged on the depreciable value of assets following the straight-

line method over the useful life of the asset.

PPEs are derecognized upon disposal. Any gain or loss arising from the
derecognition is recognized in the surplus or deficit.

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 f. Public infrastructure

Public infrastructure assets are recorded in the books at cost. Replacement of

parts required at regular intervals is recognized in the carrying amount of the
Public Infrastructure when the costs incurred meet the recognition criteria. The
carrying amount of those parts replaced is derecognized.

Note 3. Cash and Cash Equivalents

Cash and cash equivalents comprise cash in the local treasury, petty cash, cash in bank –
local currency current account and investment in time deposits with term of 3 months or less.
2021 2020 2019
Cash Local Treasury - - 499,860.00
Cash in Bank – LCCA 2,493,996.34 1,754,218.29 1,576,142.53
Total 2,493,996.34 1,754,218.29 2,076,002.53

Note 4. Receivables
2021 2020 2019
Other Receivables - - 79,309.00
Due from Local Government Units 56,500.09 301,990.62 275,466.07
Advances to Officers and Employees 51,236.00 66,111.00 66,111.00
Total 107,736.09 368,101.62 420,886.07

Note 5. Property, Plant and Equipment

2021 2020 2019

Land 75,000.00 75,000.00 75,000.00
Land Improvements 41,382.00 41,382.00 41,382.00
AD – Land Improvements (39,312.90) (39,312.90) (39,312.90)
Road Networks 12,008,032.87 12,008,032.87 68,201.00
AD – Road Networks (697,086.96) (12,958.08) (6,479.04)
Other Infrastructure Assets 904,403.50 143,979.50 143,979.50
AD – Other Infrastructure Assets (126,805.60) (125,380.60) (123,955.60)
Buildings 5,441,082.74 5,441,082.74 471,826.25
AD – Buildings (558,813.84) (222,025.56) (199,956.84)
School Buildings 592,345.00 564,644.00 359,116.00
AD – School Buildings (89,816.79) (37,363.71) (3,908.55)
Hospitals and Health Centers 498,323.23 467,362.23 450,362.23
AD – Hospitals and Health Centers (201,710.70) (181,343.10) (162,382.83)
Other Structures 1,618,112.18 1,289,042.18 915,790.18
AD – Other Structures (383,649.49) (271,614.13) (194,568.01)
Office Equipment 162,500.00 56,000.00 72,930.00
AD – Office Equipment (56,572.50) (53,200.00) (69,283.50)

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 2021 2020 2019
Information and Communication 24,000.00 24,000.00 58,170.00
Technology Equipment
AD – Information and (22,800.00) (22,800.00) (55,261.50)
Communication Technology
Equipment
Communication Equipment 143,390.00 143,390.00 -
AD – Communication Equipment (114,629.28) (108,309.84) -
Construction and Heavy Equipment 745,000.00 745,000.00 139,460.00
AD – Construction and Heavy (143,235.20) (42,128.00) (120,053.02)
Equipment
Sports Equipment 565,469.34 565,469.34 592,469.34
AD – Sports Equipment (477,594.20) (451,853.60) (450,143.00)
Motor Vehicles 575,375.00 575,375.00 575,375.00
AD – Motor Vehicles (546,606.30) (546,606.30) (546,606.30)
Furniture and Fixtures 22,204.00 22,204.00 15,600.00
AD – Furniture and Fixtures (2,285.14) (175.78) (14,820.00)
Other Property, Plant and Equipment - - 6,000.00
AD – Other Property, Plant and - - (5,700.00)
Equipment
Total Property, Plant and 23,416,619.86 22,161,963.86 3,985,661.50
Equipment
Total Accumulated Depreciation (3,460,918.90) (2,115,071.60) (1,992,430.59)
Net Book Value 19,955,700.96 20,046,892.26 1,993,230.41

Note 6. Financial Liabilities

2021 2020 2019

Accounts Payable 0.02 1,880.02 0.02
Due to Officers and Employees 4,050.00 - -
Total 4,050.02 1,880.02 0.02

Note 7. Inter-Agency Payables

2021 2020 2019

Due to BIR 288,905.74 176,347.44 64,388.23
Due to PHILHEALTH 225.00 225.00 229.94
Due to LGUs 390.00 390.00 640,382.69
Total 289,520.74 176,962.44 705,000.86

Note 8. Trust Liabilities

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 2021 2020 2019
Trust Liabilities - Disaster Risk Reduction and 455,389.20 387,029.14 543,483.94
Management Fund (DRRMF)
Total 455,389.20 387,029.14 543,483.94

Note 8.1 Barangay Disaster Risk Reduction and Management Fund (BDRRMF)

The BDRRMF represents the amount set aside by the BLGU to support its disaster
risk management activities pursuant to R.A. No. 10121 otherwise known as the “Philippine
Disaster Risk Reduction and Management Act of 2010”. The details of the amount are as
follows:

Amount
Particulars Balance
Available Utilized
Current Year Appropriation
Quick Response Fund (QRF) 119,296.00 1,970.00 117,326.00
Mitigation Fund (MF)
MOOE 198,358.00 115,740.00 82,618.00
Capital Outlay 80,000.00 40,000.00 40,000.00
TOTAL - CY 2021 397,654.00 157,710.00 239,944.00

Amount
Particulars Balance
Available Utilized
Special Trust Fund
CY 2016 31,292.00 31,292.00 -
CY 2017 51,159.00 51,159.00 -
CY 2018 9,404.00 9,404.00 -
CY 2019 1,217.20 1,217.20 -
CY 2020 219,257.00 3,811.80 215,445.20
CY 2021 239,944.00 - 239,944.00
TOTAL - CY 2021 552,273.20 96,884.00 455,389.20

Note 9. Other Payables

Other Payables amounting to 516,611.68 represents the balance of SK Share pending for
transfer as of December 31, 2021. The total SK Share for CY 2021 amounts to 795,307.00
and the actual amount transferred is 278,695.32, thus the balance of 516,611.68 is due for
transfer in January of CY 2022.

2021 2020 2019

Other Payables 516,611.68 - -

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 2021 2020 2019
Total 516,611.68 - -

Note 10. Government Equity

2021 2020 2019

Beginning Balance 21,603,340.57 3,241,634.19 2,858,069.32
Adjustments - - -
Total 21,603,340.57 3,241,634.19 2,858,069.32
Prior Years Adjustments 62,648.43 17,273,690.23 (81,142.56)
Surplus/(Deficit) for the Period (374,127.25) 1,088,016.15 464,707.43
Total 21,291,861.75 21,603,340.57 3,241,634.19

Note 11. Tax Revenue

2021 2020 2019

Tax Revenue – Others (Community Tax) 79,080.74 99,856.82 92,934.01
Tax Revenue – Property (Real Property Tax) 658,393.59 316,200.04 700,075.74
Other Permits and Licenses 86,680.00 71,920.00 52,190.00
Tax on Sand, Gravel and Other Quarry Products - 2,800.00 5,600.00
Amusement Tax - - 1,600.00
Total 824,154.33 490,776.86 852,399.75

Tax Revenue – Property represents the 30% share of the barangay from the City’s collection
of the basic real property tax and its penalties.

Tax Revenue – Goods and Services represents the taxes levied by the barangay on stores or
retailers with fixed establishments and the share of the barangay from taxes imposed on
quarry resources extracted within the barangay area.

Note 12. Share from Internal Revenue Collections

This represents the share of the barangay from the 40% allocation for the local governments
from the national internal revenue taxes.

2021 2020 2019

Internal Revenue Allotment 6,712,498.00 6,257,955.00 5,547,175.00

Note 13. Service and Business Revenue

2021 2020 2019

Clearance & Certification Fee 99,520.00 71,050.00 55,240.00
Other Service Income - 9,000.00 5,900.00

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 2021 2020 2019
Miscellaneous Income - 120.00 -
Garbage Fees 216,125.00 - -
Total 315,645.00 80,170.00 61,140.00

Note 14. Personnel Services

a. Remuneration of key management personnel

This represents the honoraria, year-end bonus, cash gift, Other Bonuses and
Allowances and Terminal Leave Benefits of the agency’s key management personnel.

2021 2020 2019

Clothing/Uniform Allowance 55,000.00 - 55,000.00
Honoraria 2,439,828.00 2,355,200.00 2,175,672.00
Year End Bonus 110,000.00 99,000.00 122,622.00
Cash Gift 55,000.00 82,400.00 44,000.00
Other Personnel Benefits 505,593.00 552,537.00 225,346.00
PHILHEALTH Contributions 19,128.02 15,883.20 12,492.17
Total 3,184,549.02 3,105,020.20 2,635,132.17

Note 15. Maintenance and Other Operating Expenses

2021 2020 2019

Travelling Expenses 79,850.00 63,500.00 102,170.00
Training and Scholarship Expenses 4,650.00 17,000.00 44,600.00
Office Supplies Expenses 111,679.00 107,256.00 41,800.00
Accountable Forms Expense 5,990.00 6,250.00 6,350.00
Food Supplies Expense 30,000.00 - -
Drugs and Medicines Expense 70,000.00 30,000.00 25,350.00
Gasoline, Oil and Lubricants Expense 174,364.18 11,135.00 1,900.00
Other Supplies Expense 93,742.00 53,245.00 13,090.00
Water Expense 5,178.75 - -
Electricity Expense 88,997.32 114,601.20 80,577.90
Telephone Expenses 16,307.60 15,540.00 22,412.42
General Services 1,180,200.00 990,080.00 930,000.00
Repairs and Maintenance-Infrastructure 357,000.00 313,190.00 655,000.00
Assets
Repairs and Maintenance-Building and 29,874.50 22,581.00 -
Other Structures
Repairs and Maintenance-Machinery and 5,640.00 29,200.00 12,200.00
Equipment
Repairs and Maintenance-Transportation 65,100.00 47,877.00 36,770.00
Equipment
Repairs and Maintenance-Furniture and 5,905.00 20,645.00 -

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 2021 2020 2019
Fixtures
Fidelity Bond Premium 9,375.00 8,925.00 8,565.00
Insurance Expense 2,824.11 - -
Membership Dues and Contributions to - 4,000.00 -
Organizations
Other Maintenance and Operating 604,099.80 243,900.00 207,596.28
Expenses
Total 2,940,777.26 2,098,925.20 2,188,381.60

Note 16. Non-Cash Expenses

2021 2020 2019

Depreciation-Infrastructure Assets 684,128.88 6,479.04 6,479.04
Depreciation-Buildings and Other 521,644.32 151,530.27 91,840.80
Structures
Depreciation-Machinery and Equipment 35,432.54 29,426.94 35,480.12
Depreciation-Motor Vehicles 101,107.20 25,276.80 -
Depreciation-Furniture and Fixtures 2,109.36 175.78 -
Depreciation-Other Infrastructure Assets 1,425.00 1,425.00 1,425.00
Total 1,345,847.30 214,313.83 135,224.96

Note 17. Transfers, Assistance and Subsidy From

2021 2020 2019

Subsidy from Other Local Government 250,000.00 250,000.00 10,000.00
Units
Assistance to COVID-19 30,000.00 - -
Total 280,000.00 250,000.00 10,000.00

Note 18. Transfers, Assistance and Subsidy To

2021 2020 2019

Transfer to TF unutilized current 239,944.00 219,257.00 187,971.00
year allocation for LDRRMF
Transfer of SK allocation to STF 795,307.00 353,369.48 859,297.59
Total 1,035,251.00 572,626.48 1,047,268.59

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