Notes

to
Financ
ial
Statem
ents

I. General

1. Agency Profile

1.1 The University of the Philippines (UP) was established on June 18, 1908,
by Act No. 1870 of the First Philippine Legislature “to provide advanced
instruction in literature, philosophy, the sciences and arts, and to give
professional and technical training to every qualified student regardless of
age, sex, nationality religious belief, or political affiliation.”

1.2 On November 20, 1972, through Presidential Decree (PD) No. 58,
amendments were made which evolved the University multi-campus
system which allows the decentralization of authority and autonomy of the
component units without losing the institutional unity and academic
integrity of the University.

1.3 UP was declared the National University with the passage of RA No. 9500
known as “The University of the Philippines Charter of 2008”. The
following are the seven constituent campuses whose financial reports are
consolidated at year-end for reporting purposes:

UP Diliman (UPD) was declared a constituent university (CU) on April

23, 1982 and started its operations as CU in April 26 of the same year.

UP Los Baños (UPLB) evolved into a separate CU in 1972.

UP Manila (UPM) was originally established on December 1, 1905, as

the Philippine Medical School and later called as the UP College of
Medicine and Surgery in June 10, 1907. It was renamed UP Manila in
1983.

UP Visayas (UPV) was formally established as a CU in 1979.

UP Mindanao (UPMin) was adopted as the sixth member of the UP

System on March 23, 1995.

26
UP Baguio (UPB) was formally established as the 7th CU on December 2,
2002.

UP Open University (UPOU) creation was approved by the Board of

Regents on February 23, 1995, as the fifth CU.

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 2. Summary of Significant Accounting Policies

2.1 The University System Administration and the autonomous campuses use
the accrual basis of accounting in recording expenses and interest income, where
expenses were recognized when incurred and income when realized, except where
accrual basis is impractical or where the amount of income could not be fairly
established.

2.2 The release of Notice of Cash Allocation (NCA) is centralized with the UP
System and subsequently transferred to the respective campuses and recorded in the
Regular Agency Books as well as those income and receipts which the University is
authorized to use.

2.3 The Modified Obligation System is used to record allotments received and
obligations incurred. Separate registries are maintained to control allotments and
obligations for each class of allotment.

2.4 The outstanding cash advances are required to be liquidated/settled before

the granting of a new one.

2.5 The UPD receivables are recorded in the books based on the reports
submitted by the Office of the University Registrar (OUR), University Food Service
(UFS), Business Concessions Office (BCO), University Health Service (UHS), UP
Housing Office and statements prepared by its Accounting Office such as the Statement
of Contractual Obligations and Tuition Fee Loan derived from the submitted Form 5s of
the students during the enrollment period.

2.6 The Allowance for Doubtful Accounts was provided for based on the
percentage and aging of accounts receivables prescribed for in the New Government
Accounting System (NGAS) Manual. A review of the receivables to identify accounts to
be provided with allowance is made at the end of the year.

2.7 The Accounting Office is adopting the moving average method of

inventory valuation under the perpetual inventory system, except for the Institute of
Human Genetics (IHG), which applies the perpetual inventory method.

2.8 Except for Books, all purchases for non-consumable supplies and
materials below the benchmark set by the UPS Accountants of P2,000.00 are recorded as
expense and charged to the operational budget. All assets purchased below P2,000.00
recorded as expense are supported by Inventory Custodian Slip (ICS) for accountability
purposes.

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2.9 The Property, Plant and Equipment (PPE) are carried at cost less
accumulated depreciation. The Straight Line Method of depreciation is used in
depreciating the PPE with estimated useful lives ranging from five to 50 years. A
residual value computed at ten percent of the cost of the asset is set and depreciation
starts on the following month after purchase of the PPE, irrespective of the date within
the month.

2.10 The costs of the Land account recorded in the University books of
accounts were based on historical value. However, for the UPD, the documents which
should have been the basis for recording were no longer available due to the fire in
September 1984, that destroyed the Quezon Hall building where the UPD Accounting
Office was then housed.

2.11 For assets under construction, all related expenses incurred during the
construction of the project are recorded under the Construction-in-Progress account. The
corresponding asset account is being recorded upon completion and final
acceptance/payment. Those incurred after the construction are charged against the
operational cost depending upon the materiality of the expenses incurred. Major
renovations/repairs which would extend the life of the asset are capitalized to the asset
account. Repair and renovations charged to MOOE fund are recorded to the expense
account.

2.12 All income and expense accounts including depreciation and bad debts
expenses are closed to the Government Equity account. Prior Years’ (PY) excess income
composed of Legal Research Fund (LRF) and excess income of the UPD. Special
Endowment Fund is recorded under the Government Equity account.

2.13 Some obligations are set up towards the end of the year to cover for the
following expenditures:

2.13.1 Payments for scholarships for the second semester, which extend up
to the end of classes in March of the following year.

2.13.2 Accrual of lectures’ fees and overload payments are made as of the
end of calendar year.

2.13.3 Research projects which are based on percentage of completion.

2.13.4 Additional funding requirements of autonomous campuses such as

those related to personnel and other operating expenses.

2.14 Cash in US Dollars is shown in separate trial balance. For the purpose of
consolidation of statements, it is converted into pesos based on BSP exchange rates as of
the end of the accounting period covered by the report.

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 3. Basis of Financial Statement Presentation

3.1 The Consolidated Financial Reports include the results of operations of

Fund 101-General Fund, Fund 164-Revolving Fund and Fund 184-Trust
Fund.

3.2 The financial statements are prepared in accordance with the generally
accepted accounting principles and standards.

3.3 Accounts were classified to conform to the New Chart of Accounts

prescribed under the NGAS.

3.4 The autonomous campuses receive their government subsidy (General

Fund 101) through the UPS sub-allotment notice.

3.5 Financial Statements of the UPD include the transactions of income and
expenses for Extension Program for the UP San Fernando and UP
Olongapo.

3.6 The financial statements of UPM include transactions of the Philippine

General Hospital (PGH).

4. Correction of Fundamental Errors

Fundamental errors of prior years are corrected by using PY’s Adjustment account.
Errors affecting current year’s operations are charged to the current year’s accounts.

5. Subsequent Events

16.1.16.19.5.1.1.1 SARO
No. ABM NCR-09-0003650 and Special Allotment
Release Order No. NCR-09-089, NCR -107 for Capital Outlay, SARO No. G-09-
08401 and SARO No. NCR-09-107 for MOOE received during the year were
treated as continuing appropriations since the validity extends until CY 2010 and
the corresponding Notice of Cash Allocations are still to be released by the DBM.

II. Balance Sheet

6. Cash

6.1 Cash Collecting Officers

6.1.1 Balance of this account pertains to the following units of

the UP:

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 6.1.2 UPLB-The Cash shortage in the amount of P509,743.75
under Revolving Fund for the account of Cash-Collecting Officers
remained undeposited as of balance sheet date.

6.2 Cash In Bank –

This account is broken down as follows:

6.2.1 Local Currency, Current Account

Unit/Campus
P 474,806,569.98
279,495,980.11
162,041,409.66
51,035,884.84
15,563,164.26
10,179,238.65
131,860,198.96
21,202,704.84
P1,146,185,151.30

6.2.2 Local Currency, Savings Account

Unit/Campus
P 18,881,155.53
53,745,827.00
(19,351,632.80)
31,896,156.49
8,170,873.20
870,869.90
48,171.79
2,306,366.86
Total P 96,567,787.97

31
6.2.3 Local Currency, Time Deposits

Unit/Campus
P 3,590,903,714.67
3,236,255,505.26
1,560,856,276.70
1,549,867,628.41
261,900,864.03
115,173,867.64
293,959,950.22
39,859,297.96
Total P 10,648,777,104.89

6.2.3.1 UPM-The Time Deposits include Special Endowment

Fund amounting to P237,696,050.36.

6.2.3.2 UPV-The Time Deposits include a deposit on escrow of

P1,292,480.28 for the account of INTRA STRATA
ASSURANCE CORPORATION.

6.2.4 Foreign Currency, Current Account

This pertains to the account of UP Los Baños amounting to

P4,455,749.47.

6.2.5 Foreign Currency, Savings Account

Unit/Campus
P 201,935.71
8,659,306.51
28,530,731.69
65,826.68
132,316.52
526,317.89
P38,116,435.00

6.2.6 Foreign Currency, Time Deposits

Unit/Campus
P 7,330,471.27
6,340,318.05
5,013,441.75
Total P18,684,231.07

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7. Receivables

7.1 This account consists of the following:

P 157,453,744.78
489,257,583.58
594,538,155.44
776,096,093.95
541,730.20
15,948,658.17
118,392,543.23
7,340,129.55
P 2,159,568,638.90

7.2 UPS - As per COA Accounting Circular No. 2006-01 dated November 9,
2006, the Cash Advance for special purpose/time bound undertaking
recorded as Cash–Disbursing Officers or as Due from Officers and
Employees (Account code 123) are to be reclassified to appropriate
account code 148 as Advances to Officers and Employees.

The receivable accounts include P30,331.838.61 cash advances for local and
foreign travels and other operating expenses.

The Cash advances for foreign travel are mostly due from faculty members
who are pursuing graduate studies abroad (North America, Europe, Asia and
Australia) under the Foreign Fellowship program of the University. The
cash advances are used to support a full study of up to three years. All of
these foreign travels have been duly authorized by the Office of the
President of the Republic of the Philippines.

7.3 UPD - The Accounts Receivables represents receivables from various

government agencies and private entities sponsoring UPD Scholars,
Tuition Loan, receivables from Contractual Obligations and receivables of
auxiliary units and generating income activities of the University.

Also included are the following accounts:

7.3.1 Due from Officers and Employees account represents

shortage in registration collections

7.3.2 Advances to Officers and Employees represents Cash

Advances granted to officers and employees for official travel,
local and foreign and financial assistance for various purposes are
subject to

33
 liquidation. Out of the total P3,519,721.04 outstanding cash
advances in Trust Fund, P1,894,084.30 is still under litigation.

7.3.3 Disallowances/Charges represents amount due from

officers and employees resulting from post audit disallowances that
became final and executory.

7.3.4 Other Accounts Receivables Account represents

receivables from the UP System and other miscellaneous
receivables.

7.4 UPM - The receivable accounts consist of the following:

Accounts Receivables (net of Allowance

for Bad Debts) P105,827,452.36
Loans Receivables – Others 4,298,941.00
Due from NGAs 6,674,619.50
Due from GOCCs 18,560,526.68
Due from NGOs/Pos 9,458.39
Due from Central Office 85,052,116.57
Due from Other Funds 347,429,239.00
Receivables - Disallowances & Charges 61,472.64
Advances to Officers and Employees 13,186,051.34
Other Receivables 13,438,276.96
TOTAL P594,538,155.44

This year, the allowance for doubtful accounts amounts to

P97,125,113.70.

7.5 UPB - Description of the receivable accounts are as follows:

7.5.1 Accounts Receivable includes amounts due from students

for tuition fee loans.

7.5.2 Advances to Officers and Employees represents refunds

from employees for excess of cash advance taken for travel.

7.5.3 Due from NGAs is composed of receivables from CHED

and DOST for the tuition and other fees of their scholars for the
second semester 2009-2010.

7.5.4 Due from LGUs represents tuition fees of SYDP scholars

for the second semester 2009-2010 collectible from the Quezon
City Government.

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 7.5.5 Due from NGOs is composed of receivables from E.R.
Violago, PMAFI, AFPSLAI, UPAA Fonacier and Rexponsable
Scholarships for the tuition and other fees of their scholars for the
second semester 2009-2010.

7.5.6 Due from Central Office account represents funding for

2009 received in January 2010.

7.5.7 Interest Receivable is composed of accrued interest earned

from various RTB, Treasury Bills and Special Savings Deposits.

7.5.8 Other Receivables include contractual obligations of

reneging fellows and loans granted to students under the CHED-
SAFE.

7.5.9 Allowance for doubtful accounts was set from the accounts
receivable due from students at a level adequate to provide for
potential uncollectible of receivables derived from computations
based on percentages and aging of accounts receivables.

7.6 UPLB account consists of the following:

Loans Receivable P 4,418,551.88

Due from Central Office 40,321,360.00
Due from Other Funds 614,486,281.79
Receivables-Disallowances/Charges 2,678,753.53
Advances to Officers and Employees 720,171.54
Other Receivables 87,109,150.51
Total P749,734,269.25

7.6.1 Other Receivable represents bills from students for

matriculation fees and the use of facilities. Other Receivables
decreased by P1.9 million as of last year.

7.6.2 Disallowances/Charges represents amount due to

Disallowances from Officers and Employees as a result of benefits
received in the previous years.

7.6.3 Loan Receivable-Others represents amount collectible from

employees arising from money lent for Computer Loan Program.
This was implemented in March 2004 per 1177TH BOR Meeting
held on November 27, 2003 with a seed capital of P2 million. On
November 23, 2009, the request of the UP Los Baños for authority
to augment the Computer Loan Program Seed Fund to P10 million
charged against the Endowment Fund was approved by the BOR
per 1251st Meeting held at U.P. Diliman, Quezon City.

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7.7 UPV – The receivable accounts consist of the following:

7.7.1 Accounts Receivable includes Student Loans, bills due

from sponsor agencies for tuition and other fees of scholar
students, and bills for light, water and rent.

7.7.2 Due from NGAS represents income remitted to the Bureau

of Treasury (BTR) prior to the implementation of EO 714, The
Fiscal Autonomy of UPS. This was the balance after
reconciliation was made with the BTR. To date they have not
refunded/remitted the amount to the UPV.

7.7.3 Due from Central Office represents the cash releases from
UPS that are still in transit as of year-end.

7.7.4 Disallowances/Charges represents amount due from

officers and employees resulting from post audit disallowances that
became final and executory.

7.7.5 Advances to Officers and Employees consists mainly of the

amount granted as cash advance for local and foreign travel
expenses subject to liquidation and for special purpose or time
bound undertaking like operating expenses in the field for research
and extension services, workshops/trainings and seminars.
Additional liquidations of P430,581.72 were recorded in January
2009. Other outstanding accounts are subject to salary deductions.

7.7.6 Other Receivables consist of loans granted to students for

the purchase of computers, contractual obligations of reneging
fellows, and receivables from other funds due to erroneous
charging and deposit.

7.8 UPMin – The receivable accounts is broken down as follows:

Account Amount
Accounts receivable P 1,241,891.72
Loans Receivable-Students 931,291.50
Interests receivable 596,703.18
Due from Central Office 1,383,737.83
Due from Other Funds 2,556,187.37
Advs. To Officers & Employees 377,805.81
Other receivables 252,512.14
Total P 7,340,129.55

7.8.1 Accounts Receivable consists of tuition fees billed against

institutions/agencies supporting certain scholars in the University.

36
 Some of these agencies are the Civil Service Commission,
Department of Science and Technology, College Assurance Plan,
Antonio Floirendo Scholarship Fund and SM Foundation Inc. It
also consists of space rental income from the UP Open University,
private business concessioners, and receivable from a reneging
fellow amounting to P516,496.11.

7.8.2 Loans Receivable-Students consists mainly of tuition and

school fees of students who availed of the Student Loan Program
of the University. This account was implemented per COA's
recommendation under AOM 07-007.

7.8.3 Interests receivable represents accrued interests from time

deposits, treasury bonds and treasury bills.

7.8.4 Due from Central Office in the amount of P1,383,737.83

consists of FCM # 2010-020 dated January 21, 2010 per Sub-Saro
No. 400-09-031 intended for additional PS of 2009 amounting to
P300,920.13; FCM No. 201-012 dated January 21, 2010 per Sub-
Saro No. UPS-400-09-031 intended fro 2008 and 2009 promotions
amounting to P553,567.00; and FCM No. 2009-366 dated
December 29,2009 per Sub-Saro No. UPS-415-09-033 intended
for the payment of the consultant of the Kanluran Road
Construction Project amounting to P100,000.00. This also
includes the tax remittance advice (TRA) for the month of
December 2009 amounting to P429,250.70.

7.8.5 Due from Other Funds consists of fund transfers made to

other funds.

7.8.6 Advances to Officers and Employees consists mainly of the

amount granted as cash advance for travel and advances for special
purpose/time-bound undertaking.

7.8.7 Other Receivables of P252,512.14 consists mostly of

accounts billed from employees for their guest house accounts,
use of facilities, refund of benefits and payment of leaves without
pay.

8. Inventories

8.1 The details of inventories are as follows:

Office Supplies Inventory P 285,173.00

7,733.00

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Total P 292,906.00

P 5,278,980.04
Other Supplies Inventory 1,102,723.12
Total P 6,381,703.16

P 1,999,071.40
Merchandise Inventory 67,157,771.78
Office Supplies Inventory 3,538,896.91
93,921.25
Food Supplies Inventory 2,760,350.25
Drugs and Medicines Inventory 31,132,415.10
Medical, Dental and Laboratory
Supplies Inventory 25,605,401.17
Gasoline, Oil and Lubricants Inventory 345.00
Military and Police Supplies Inventory 3,557.00
Other Supplies Inventory 32,296,518.08
Construction Materials inventory 357,063.56
Total P164,945,311.50

P 143,727.98
Office Supplies Inventory 3,903,933.38
Food Supplies Inventory 4,500.00

1,840,138.70
Livestock Inventory 24,200.00
Total P 5,916,500.06

P 798,895.81
Textbooks and Instructional Material
Inventory 1,935,978.61
Total P 2,734,874.42

P 43,622.88
Other Supplies Inventory 1,607,492.14
Total P 1,651,115.02

P 1,015,884.89
Other Supplies Inventory 8,070.00
Construction Materials inventory 1,545,869.70
Total P 2,569,824.59

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8.2 UPD – The Office Supplies Inventory account has an ending balance of
P5,278,980.04 which represents Supplies and Materials stocked at the UP
Diliman SPMO Central Storeroom, and accountable forms stocked at the

39
 UPD Cash Office. Out of the said amount, P4,585,529.50 was
recommended for write off due to the fire that gutted the Campus
Maintenance Office (CMO) Building on July 1, 1996 which housed the
UP Diliman SPMO Central Storeroom.

Other Supplies Inventory account represents items for resale at the

University Book Center, which is still subject for reconciliation.

8.3 UPV – Of the account Office Supplies Inventory, P238,326.60 represents

the ending inventory of stocks maintained at the UPV Central Store.

Construction Materials Inventory of P1,545,869.70 represents the ending

inventory supplies of the CDMO Central Store.

9. Investments

The account balance of P1,407,469,418.35 is broken down as follows:

9.1 Investment in T-Bills

UP Unit/Campuses Balance
UPS P 395,072,881.14
13,000,000.00
3,784,074.56
P 411,856,955.70

9.2 UPB – The account represents investments in treasury bills and retail
treasury bonds issued by the Government of the Philippines maturing from
2010 to 2016. The bonds bear interest of 7.125% to 10.625% per annum,
payable quarterly.

9.3 UPMin – This account consists of treasury bills and bonds invested at the
Development Bank of the Philippines and Land Bank of the Philippines
with terms lasting for a maximum of five years.

9.4 Investment in Bonds

UPS P 323,070,659.87
UPB 39,500,000.00
UPMin 21,720,000.00
Total P 384,290,659.87

9.5 Investments in Stocks

UP-PGH/Manila P 1,219,650.00

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 9.6 Other Investment and Marketable Securities
UP-PGH P 349,770.00
UPLB 609,752,382.78
Total P 610,102,152.78

9.7 UPLB – Investments of P609.7 million which accounted for 4.45% of the
total assets posted an increase of P122.98 million or 25.26%. This year’s
balance consists of High-yield deposits account, Special Savings,
Premium Savings Deposits, and Certificate of Time Deposits-Dollar
Accounts. Investments increased due to conversion of short-term
placements to long-term capital-tier notes.

Investments comprise Held-To-Maturity investments, fixed rate government

instruments, government securities, and bank deposits in authorized
government depository banks.

With the initial recognition of an investment, the UPLB Investment and

Income Committee (UPLBIIC) determine its classification, which is
dependent on the purpose for which the investment was acquired, and re-
evaluates that classification at every reporting date.

10. Property, Plant and Equipment

10.1 Breakdown of the amount per campus, net of accumulated depreciation is

as follows:

P 320,247,173.12
4,505,851,693.79
3,474,656,166.63
10,554,001,197.20
78,470,460.96
171,248,905.76
396,453,104.95
204,219,231.08
P 19,705,147,933.49

10.2 UPD – Financial documents as basis for recording the Land Account were
no longer available due to the fire in September 1984, which destroyed the
Quezon Hall building where the UPD Accounting Office was then housed.

The Buildings account is still subject to reconciliation and verification.

The Property, Plant and Equipment accounts are still under reconciliation
with SPMO records.

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 The current acquisitions are being reconciled. The Accounting Office
reconciles the amount per books with the physical inventory report
submitted by the Property and Supply Office/Academic Units. Due to the
pending reconciliation, depreciation for the fixed assets has not been fully
taken up.

The non-productive properties which have been idle beyond their useful
lives are being earmarked for adjustment. Part of the Construction in
Progress-Agency Assets amounting to P8,035,314.35 is still under
evaluation by the Accounting Office for reclassification to its appropriate
fixed asset account.

10.3 UPB – The balance of Construction in Progress-Agency Assets account

represents payments made for the construction of Library Extension. The
account shall be reversed once full payment is made to the contractor in
2010.

10.4 UP Min – The buildings account consists of the Central Administration

Building, the Human Kinetics Building, the College of Sciences and
Mathematics Building and the Elias Lopez Hall (Dormitory). These are
all located in Mintal, Davao City.

11. Accumulated Depreciation

11.1 Breakdown of the account is as follows:

ACCOUNT NAME 2009 2008

Accum Dep. - Land Improvements P 5,090,695.22 P 3,947,610.14
Accum Dep. - Elect, Power & Energy Structures 2,379,604.82 1,031,844.01
Accumulated Dep. - Office Buildings 1,667,405,987.30 1,483,786,394.42
Accumulated Dep. - School Buildings 248,692,778.91 224,629,039.26
Accum Dep.-Hosp & Health Centers 37,129,409.95 4,460,648.78
Accumulated Dep. -Other Structures 5,180,828.97 4,481,127.32
Accumulated Dep. - Office Equipment 819,950,209.39 778,618,751.15
Accum Dep. - Furniture and Fixtures 69,593,962.29 58,248,325.77
Accum Dep.-IT Equipment & Software 578,718,774.93 508,774,416.01
Accumulated Dep. – Books 270,861,293.11 251,263,452.56
Accumulated Dep. –Machineries 3,737,109.79 3,513,099.42
Accum Dep. – Agri., Fishery & Forestry Equipt 1,696,895.35 1,499,461.28
Accumulated Dep. - Com. Equipment 30,728,362.09 24,893,456.36
Accum Dep.-Const. & Heavy Equipt 1,599,278.15 1,589,369.15
Accum Dep. - Firefighting Equipment 1,137,110.35 834,346.07
Accum Dep. - Hospital Equipment 581,419,254.76 391,622,185.91

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 ACCOUNT NAME 2009 2008
Accum Dep. – Med., Dental & Lab Sup Inv. 144,748,098.74 121,591,305.21
Accumulated Dep. - Military and Police Equipt 338,372.38 288,769.19
Accumulated Dep. - Sports Equipment 911,263.77 774,892.25
Accum Dep.-Tech & Scientific Equipt 110,586,192.27 87,961,397.14
Accum Dep. - Other Machineries 85,846,360.27 72,692,018.07
Accum Depreciation- Motor Vehicles 41,181,493.40 33,788,131.84
Accumulated Depreciation- Watercrafts 23,748,719.69 23,717,872.28
Accum Depreciation- Transpo. Equipt. 153,850.01 106,939.15
Accumulated Depreciation-Other PPE. 2,916,085.95 2,596,619.88
P4,735,751,991.8 P4,086,711,472.6
Total Accumulated Depreciation 6 2

12. Other Assets

12.1 UPLB – This year’s aggregate assets grew by P307.28 million or 2.30 %
from P13.37 billion in 2008. Total Current Assets constitutes 17.7% of
the total assets of P13.6 7 billion.

Current Assets of P2.43 billion consist of: Cash-P1.666 billion,

Receivables – P749 million, Inventories –P5.9 million, Prepayments –
P4.6 million, and Other Current Assets – P4.8 million.

12.2 UPOU – This account represents Semi-expandable properties which

were issued to the end-users as covered by the Memorandum Receipts
prior to implementation of NGAS. It consists of items that are still
serviceable and being used by the persons/offices concerned and not
subject to depreciation.

13. Liabilities

13.1 The breakdown of the liabilities accounts is as follows:

P 456,264,961.30
Due to Officers and Employees 1,932,815.01
Due to BIR 579,348.73
467,739,734.69
Due to Other Funds 35,547,562.83
Guaranty Deposits Payable 349,015.22
Other Payables 1,012,252,370.60
Other Deferred Credits 791,305.71
Total P 1,975,457,114.09

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 P 1,747,916,933.38
Due to Officers and Employees 1,944,717.44
Due to BIR 8,640,599.84
676,081.93
63,948.13
42,419.95
Due to Other NGAs 444,435,273.00
Due to GOCCs 921,083.30
221,298,321.34
33,047,653.88

3,845,633.88
Other Payables 1,797,102,916.04
Other Deferred Credits 203,101,037.44
Total P 4,463,036,619.55
16.1.16.19.5.1.1.2 16.1.16.19.5.1.1.3
P 420,907,222.85
Due to Officers and Employees 126,126,227.41
Due to BIR 12,930,801.45
2,356,201.67
1,894,765.59
160,581.57
Due to Other NGAS 6,628,575.20
Due to Other GOCCs 20,122,529.56
729,798.22
1,237,480.34
315,108,431.32
26,366,584.39

42,625,437.87
Tax Refunds Payables 9,229,060.36
Other Payables 1,406,526,128.57
Loans Payable-Domestic 133,012,310.32
Other Deferred Credits 117,959,286.09
Total P 2,643,921,422.78

P 640,007,321.50
Due to BIR 9,691,292.35
15,835,093.89
838,001.49
759,936.72
Due to Central Office 16,370,191.74

44
 491,799,431.30
Performance/Bidders/Bail Bonds
Payable 4,937,937.62
Other Payables 2,179,698,590.85
Other Deferred Credits 62,163,760.38
Total P 3,442,101,557.84

P 26,075,678.69
Due to BIR 1,047,022.33
485,803.15
(20,940.75)
1,405.75
Due to Other GOCCs 736,064.89
80,856,105.10
Total P 109,181,139.16
16.1.16.19.5.1.1.4 16.1.16.19.5.1.1.5
P 4,297,007.26
Due to Officers and Employees 2,027,487.08
Due to BIR 94,584.84
1,526,522.78
1,730.40
1,825.00
Due to Other NGAs 1,811,824.80
597,214.20
816,179.73

1,128,461.80
Tax Refunds Payables 113,685.66
Other Payables 46,623,483.25
Other Deferred Credits 14,302,977.90
Total P 73,342,984.70

P 96,168,293.23
Due to Officers and Employees 296,597.48
Due to BIR 1,768,282.60
3,647,530.42
735,035.02
240,643.87
Due to Other NGAs 30,134,182.35
5,236.89
228,037.92
3,251,067.73
990,155.83

45
 1,782,506.51
Tax Refunds Payables 734,745.92
Other Payables 214,587,862.37
Other Deferred Credits 8,132,539.08
Total P 362,702,717.22

P 21,842,126.81
Due to Officers and Employees 404,444.34
Due to BIR 1,046,475.27
(41,635.11)
20,758.14
(36,558.97)
2,555,487.37

738,824.80
Other Payables 1,246,542.04
Other Long-term Liabilities 47,631,088.02
Total P 75,407,552.71

13.2 UPD – Other Payables represents collections from Trust Accounts

having definite purpose for which it was created including Tuition Fee
Increment and Housing Loan from HDMF and miscellaneous payable of
the UP Diliman.

13.3 UPM – The descriptions of the accounts are as follows:

Other Long Term Liabilities consists of Loans Payable- Long Term,

Domestic of P133,012,306.29.

Other Liabilities - consists of Other Deferred Credits amounting to

P117,959,286.09.

13.4 UPD – Other Payables represents collections from Trust Accounts

having definite purposes, including Tuition Fee Increment and Housing
Loan from HDMF and miscellaneous payable.
This account consists of Other Deferred Credits for income from
patients which are not yet collected and the unearned portion of tuition
fees collected. Balance as of December 31, 2009 had amounted to
P11,256,988.03. The account will be debited upon the actual collection,
and when income collected in advance is already earned.

46
13.5 UPLB – The descriptions of the account is as follows:
Due to Central Office - Payable The amount of P16,370,191.74 was
set up as a result of a Civil Case No. Q-93-14971 dated December
2004 RE: STERN BUILDERS versus UNIVERSITY OF THE
PHILIPPINES SYSTEM. The Court ordered the release of the
garnished amount from defendant’s UP account. The petition of
the UPS was denied in a Resolution dated June 23, 2004 for failure
of petitioners to show that the appellate court had committed a
reversible error. The charge was prompted by a Debit Memo to the
U.P. System account in DBP Commonwealth. Thus, the U.P.
System is requesting payment from UPLB.
Other Payables - Pending the request of U.P. System’s President for
additional account titled, “Restricted Government Equity”, the
COA GAFMIS Sector recommended that for fair presentation of
the university’s financial statements, the related income accounts
in current and prior year’s which were recorded as Long-term
Liabilities be adjusted accordingly. Receipts entrusted by private
entities/organizations for scholarship fund, research, and similar
activities were recorded as “Other Payables”.
Payable accounts are recognized and recorded in the books of
accounts upon establishment of a valid claim from the agency due
to the procurement of goods/ inventory/ other assets and services.
13.6 UPB – Other Payables account consists of student fees and various trust
funds earmarked for specific purposes.
Other Deferred Credits account consists of 60 percent of the tuition fees
collected for the second semester 2009-2010 and set-up of tuition loans,
SAFE loans and receivables from reneging fellows.
13.7 UPV – Other Long-Term Liabilities consists of funds of UPV and UPS
releases as financial assistance for the implementation of a specific
project.

13.8 UPMin – Accounts Payable consist mainly of the obligations charged

against allotment whose creditors are mainly the suppliers of materials
and general services needed in the day to day operation of the
University. This also includes unpaid obligations to some personnel
of the University in the form of reimbursements, research expenses
honoraria and others.

Other Payables - This account consists of scholarship funds, externally

funded research projects, donations from private institutions for specific
purposes and a grant from the City Government of Davao for faculty
development.

47
 The scholarship funds consist of funds provided by Carlos Palanca, Big
Bend Scholarship Fund, Commission on Higher Education, Floirendo
Scholarship Program and SM Foundation Inc. and Vicente Bello
Scholarship Foundation.

This account also include the program conceived by the Commission on

Higher Education(CHED), the Student Assistance Fund for Education for
Loan(SAFELOAN) which aims to provide assistance to the financially
needy 3rd year, 4th year. 5th year or graduating college students in all higher
education institutions nationwide. The amount received from CHED is One
Million Pesos.

The externally funded research funds were mostly from the Australian
Center for International Agricultural Research (ACIAR), Philippine Center
for Population and Development (PCPD), Department of Science and
Technology, Central Mindanao University for Mt. Hamiguitan Project and
Syngenta, Ched Zonal Research Center, Department of Agriculture-Bureau
of Agricultural Research, and the Philippine Council for Aquatic and
Marine Research & Development.

14. Government Equity

14.1 Of the total balance of Government Equity of P23,027,336,847.82, the

amount of P1,604,073,388.23 is restricted for specific purposes or uses
as approved by the UP Board of Regents or as required by law or by
fund donors. This is accounted for as follows:

Particulars Amount
Income from Income Fed Units P 9,599,412.28
Year-end excess of income over expenses for 487,863,236.31
Revolving, Reprogrammed and Realigned
funds as approved by the Board of Regents
(EO714)
Endowment Funds 1,072,814,218.15
Trust Funds 33,796,521.49
Total P 1,604,073,388.23
16.1.16.19.5.1.1.6
16.1.16.19.5.1.1.7
16.1.16.19.5.1.1.8
16.1.16.19.5.1.1.9
16.1.16.19.5.1.1.10
16.1.16.19.5.1.1.11
16.1.16.19.5.1.1.12
16.1.16.19.5.1.1.13
16.1.16.19.5.1.1.14
16.1.16.19.5.1.1.15
16.1.16.19.5.1.1.16

48
14.2 UPM - The Government Equity account is credited for purchases of plant,
property and equipment funded from trust funds, such as student fund,
laboratory fund, etc. It is likewise credited upon acquisition of
inventories out of trust funds, as well as receipt of donated fixed assets.
The new chart of account does not provide for an account to credit such
transaction, hence, the purchase is credited directly to the equity
account.

49
15. Statement of Income and Expenses

Subsidy Income from National Government

This account includes the following:

NCA received from DBM for agency

operational requirements-current year
Payment of Accounts Payable
Tax Remittance Advice (TRA)
Legal Research Fund (Trust Account)
Total

16. Allotments, Obligations and Balances

16.1. Total Allotment available during the year including allotment

carried over from CY 2009 was P8,819,474,094.45 with obligations
incurred in the amount of P7,096,578,311.69 leaving a balance of
P1,722,895,782.76 broken down as follows:

Allotment Unexpended Balance

Obligation (In Peso)
Agency Category
Current (In Peso) Total Extended
(In Peso)
UPS
PS P 349,125,944.73 P 349,125,944.73 - -
MOOE 105,117,625.89 105,117,625.89 - -
CO 18,959,363.32 10,002,363.32 P 8,957,000.00
PDAF 7,000,000.00 7,000,000.00
Total P 480,202,933.94 P 471,245,933.94 P 8,957,000.00
UPD
PS P 1,467,816,052.03 P 1,467,816,052.03 - -
MOOE 173,611,636.35 100,711,636.35 72,900,000.00 -
CO 2,835,486,801.00 1,304,618,004.24 1,530,868,796.76 -
PDAF 3,350,000.00 3,350,000.00
Total P 4,480,264,489.38 P 2,873,145,692.62 1,607,118,796.76 -
UPM
PS P 1,490,444,411.64 P 1,490,444,411.64 -
MOOE 419,811,803.00 486,046,803.00 P (66,235,000.00) -
CO 58,295,257.17 25,840,507.17 32,454,750.00 -
PDAF 98,565,000.00 98,565,000.00
Total P 2,067,116,471.81 P 2,002,331,721.81 P 64,784,750.00 -

50
 Allotment Unexpended Balance
Obligation (In Peso)
Agency Category
Current (In Peso) Total Extended
(In Peso)
UPLB
PS P 1,069,253,420.41 P 1,069,253,420.41 -
MOOE 66,147,370.00 66,147,370.00 -
CO 23,000,000.00 5,000,000.00 P 18,000,000.00 -
PDAF 1,500,000.00 1,500,000.00
Total P 1,159,900,790.41 P 1,141,900,790.41 P 18,000,000.00 -
UPOU
PS P 39,964,961.95 P 39,964,961.95 - -
MOOE 10,813,000.00 10,813,000.00 - -
CO 3,283,225.68 3,283,225.68 - -
PDAF 800,000.00 800,000.00
Total P 54,861,187.63 P 54,861,187.63 - -
UPB
PS P 80,161,488.22 P 80,161,488.22 - -
MOOE 13,136,000.00 13,136,000.00 - -
CO 3,329,266.00 3,329,266.00 - -
PDAF - -
Total P 96,626,754.22 P 96,626,754.22 - -
UPV
PS P 351,959,459.06 P 351,959,459.06 - -
MOOE 29,895,563.76 29,895,563.76 - -
CO 19,017,657.00 4,037,657.02 P 14,980,000.00 -
PDAF 1,000,000.00 1,000,000.00
Total P 401,872,679.82 P 386,892,679.82 P 14,980,000.00 -

UPMIN
PS P 53,064,714.22 P 53,064,714.22 - -
MOOE 12,440,073.00 12,440,073.00 - -
CO 2,924,000.00 2,924,000.00 - -
PDAF 10,200,000.00 1,144,764.00 P 9,055,236.00
Total P 78,628,787.22 P 69,573,551.22 P 9,055,236.00 -
Over-all Total
PS P 4,901,790,452.26 P 4,901,790,452.26 - -
MOOE 830,973,072.00 824,308,072.00 P 6,665,000.00 -
CO 2,964,295,570.19 1,359,035,023.43 1,605,260,546.76 -
PDAF 122,415,000.00 11,444,764.00 110,970,236.00 -
Total P 8,819,474,094.45 P 7,096,578,311.69 P 1,722,895,782.76 -

51
16.2 The total obligations of P7,096,578,311.69 is broken down as
follows:

Agency Total Obligation

UPSA P 471,245,933.94
UPD 3,197,173,432.80
UPM 2,442,074,714.94
UPLB 386,892,679.84
UPOU 18,909,280.00
UPB 96,626,754.22
UPV 386,892,679.84
UP Min 83,287,196.02
Total P 7,096,578,311.69

52