NOTES TO FINANCIAL STATEMENTS

I. GENERAL

1. General Profile
The Department of Health (DOH) with its vision as the leader of health for
all Filipinos, is the principal health agency in the Philippines. It is responsible for
ensuring access to basic public health services to all Filipinos through the
provision of quality health care and regulation of providers of health goods and
services.
Its mission or mandate is to guarantee equitable, sustainable and quality
health for all Filipinos, especially the poor, and to lead the quest for excellence in
health. The DOH establishes the performance standards for health human
resources, health facilities and institutions, health products and services that will
produce the best health systems.
Given the mandate, DOH is both a stakeholder in the health sector and a
policy and regulatory body for health. As a major player, DOH is a technical
resource, a catalyzer for health policy and a political sponsor and advocate for
health issues in behalf of the health sector.

The DOH Offices

The DOH is composed of the DOH Central Office (DOH-CO) with 14
offices, 16 Centers for Health Development (CHD) located in various regions, 66
hospitals, two attached bureaus and four attached agencies.
Central Office
The Central Office is composed of the Office of the Secretary and six
major function teams:
1. Office of the Secretary – comprises the staff support services to the Secretary
of Health: (a) Health Emergency Management Staff; (b) Internal Audit Staff;
(c) Medial Relations Group; and (d) Public Assistance Group including three
major Zonal offices of the DOH located in Luzon, Visayas and Mindanao.
These offices are headed by an Undersecretary and supported by an Assistant
Secretary. They are mandated to coordinate and monitor the Implementation
of the Health Sector Reform Agenda, the National Health Objectives and the
Local Government Code with the various Centers for Health Development
(CHDs).

17
2. Sectoral Management and Coordination Team – composed of the Health
Human Resource Development Bureau (HHRDB), Health Policy
Development and Planning Bureau (HPDPB), Bureau of International Health
Cooperation (BHIC), and Bureau of Local Health Development (BLHD).

3. Internal Management Support Team – consists of the Administrative Service

(AS), Information Management Service (IMS), Finance Service (FS) and
Procurement and Logistics Service (PLS).

4. Policy Standards Development and Technical Assistance Team – composed of

the Bureau of Health Facilities and Services (BHFS), Bureau of Food and
Drugs (BFAD), Bureau of Quarantine Office, Bureau of Health Devices and
Technology (BHDT), National Center for Disease Prevention and Control
(NCDPC), National Epidemiology Center (NEC), National Center for Health
Promotion (NCHP), Philippine National Aids Council (PNAC) and National
Center for Health Facilities Development (NCHFD).

5. Field Implementation and Coordination Team focuses on the FOURmula One

for Health implementation and coordination in a geographic system, one for
Luzon and NCR and one for the Visayas and Mindanao.

6. Regional Implementation and Coordination Team (RIC Teams) – composed

of the DOH-CHDs, Philhealth Regional Offices (PROs), Population
Commission (POPCOM) and other related agencies and organization at the
regional level.

7. Local Implementation and Coordination Teams (LIC Teams) – comprises the

Local Chief Executives (LCEs), their Local Health Boards and/or Inter-Local
Health Boards, the local technical health staff, civil society groups and other
private stakeholders.
Center for Health Development
The CHD is responsible for field operations of the Department in its
administrative regions and provides the catchment areas with efficient and
effective medical services. It is also tasked to implement laws, regulations,
policies and programs and to coordinate with regional offices of other
Departments, offices and agencies as well as with the local governments.
DOH Hospitals
The DOH Hospitals provide hospital-based care and specialized or
general services while some conduct research on clinical priorities and serve as
training hospitals for medical specialization.

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 Attached Agencies
The following are the attached agencies to the DOH:
1. Food and Drug Administration
2. Bureau of Quarantine

2. Basis of Financial Statements Presentation

The statements have been prepared in accordance with generally-accepted

state accounting principles and standards.

The Management Letters (MLs) were consolidated to show the financial

transactions and condition of DOH as a whole. However, out of the 86 DOH
agencies, only the following were included in the consolidation due to non-
submission of the 25 MLs as of 15 August 2010: DOH-CO; 18 Medical Centers;
14 Regional Hospitals; 11 CHDs; seven Special Hospitals; four Sanitaria; three
District Hospitals; one Research Center and two attached bureaus.

3. Summary of Significant Accounting Policies

 The accrual basis of accounting is used. All expenses are recognized when
incurred and reported in the financial statements in the period to which
they relate. Income is on accrual basis except for transactions where
accrual basis is impractical or when other methods are required by law.

 Notice of Cash Allocation (NCA) as well as income/receipts which

agencies are authorized to use are recorded in the Regular Agency (RA)
books.

 The Modified Obligation System is used to record allotments and

obligations incurred. Separate registries are maintained to control
allotments and obligations for each class of allotment.

 Income and receipts that agencies are not authorized to use are remitted to
the National Treasury and are recorded in the National Government (NG)
books.

 Petty Cash Fund (PCF) account is maintained under the Imprest System.
All replenishments are directly charged to expense accounts. The PCF is
not used to purchase regular inventory/items for stock.

 Property, Plant and Equipment are carried at cost less accumulated

depreciation.

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 The Straight-line method is used in depreciating the Property, Plant and
Equipment with estimated useful lives ranging from five to ten years. A
residual value computed at ten percent of the cost of the asset is set and
depreciation starts on the second month after purchase.

 For construction of assets, the Construction Period Theory is used for

costing purposes. All related expenses incurred during the construction of
infrastructure projects are capitalized and those incurred after the
construction are recognized as part of operating cost.

 Payable accounts are recognized and recorded in the books of accounts

only upon acceptance of the goods/inventory/other assets and rendition of
services to the agency.

 Retention and use of hospital income pursuant to Special Provision of

DOH appropriations under FY 2003 General Appropriations Act, Republic
Act No. 9206 were implemented starting CY 2003 following the general
guidelines issued under Joint DOH, DBM and DOF Circular No. 2003-1
dated 16 July 2003.

 The DOH-CO, some CHDs, hospitals and attached bureaus adopted the
electronic National Government Accounting System (e-NGAS) starting CY
2004. One of the changes introduced by the system was the valuation of
inventories using the moving average method. The CHDs and other DOH
field offices/hospitals, on the other hand are presently using the First In
First Out Method of inventory valuation. For uniform costing of
inventories, particularly, drugs and medicines. Medical, dental, and
laboratory supplies that are transferred to the CHDs and other field health
offices, the DOH-CO requested from COA-GAFMIS for exemption from
the use of the moving average method to conform with the best practice of
dispensing these particular inventories using the first in first out method.

 Accounts were reclassified to conform to the New Government Chart of

Accounts prescribed under the NGAS that was implemented effective 1
January 2002.

 Fundamental errors of prior years are corrected using the Prior Years
Adjustments account. Errors affecting current year’s operations are
charged to the current year’s accounts.

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II. BALANCE SHEET

4. Cash

Cash-Collecting Officers – P32,880,492.66

The account represents balances from:

DOH Offices Amount

Center for Health Development P 1,812,724.87
Regional Hospitals 4,516,990.89
Medical Centers 18,908,412.00
Special Hospitals 4,638,304.45
District Hospitals 879,704.80
Sanitaria 562,577.92
Research 297,520.89
Others 1,264,256.84
Total P 32,880,492.66

Cash- Disbursing Officers – P3,555,429.50

This account represents the unliquidated cash advances granted to

designated Regular Disbursing Officers and Special Disbursing Officers of the
DOH-CO, CHDs and other retained hospitals intended for the payment of salaries
and wages and other personnel benefits.

Petty Cash Fund – P15,202,148.37

This account refers to the unliquidated cash advances granted to Regular

or Special Disbursing Officers for emergency purchases of drugs, medicines,
office supplies, dietary requirements, disaster preparedness and repairs and
maintenance of hospital buildings and equipment. The P11,554,200.85 or 76% of
the balance of the account pertains to the funds from DOH-CO and Medical
Centers.

Cash in Bank, Local Currency, Current Account – P2,234,526,378.84

This account consists of collections of retained hospitals from the sale of

drugs and medicines treated as Revolving Fund authorized under RA No. 9162
and NBC No. 321; working funds for various local and foreign assisted projects
of the DOH-Central Office; and balances of cash received from DOH-CO for the
different health programs and projects of the Centers for Health Development, as
follows:

DOH Offices Amount

DOH-CO P 78,553,064.92
Center for Health Development 217,016,542.76
Regional Hospitals 380,456,398.21

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 DOH Offices Amount
Medical Centers 842,611,163.82
Special Hospitals 231,824,334.82
District Hospitals 61,599,134.57
Sanitaria 37,642,699.14
Research 78,826,058.08
Others 305,996,982.52
Total P2,234,526,378.84

Cash in Bank, Foreign Currency, Savings Account – P65,491,947.42

This account represents the combo accounts maintained for Foreign-

Assisted Projects of DOH-CO. The Dollar Savings Account is credited while an
equivalent amount is debited to the Peso Current Account every time a check is
presented for payment. There was ample decrease in the balance of the account
from P222,670,713.00 to P65,491,947.42 because the transfer of funds to the
implementing agencies in the regions for the full blast implementation of various
projects/programs.

5. Receivables

Accounts Receivables–Net - P677,129,353.26

This is composed of the following:

DOH Offices Amount
DOH-CO P 88,495.81
Center for Health Development 78,838,102.17
Regional Hospitals 173,897,848.68
Medical Centers 356,816,980.36
Special Hospitals 54,033,356.11
District Hospitals 9,780,872.05
Sanitaria 1,876,856.49
Research 1,796,841.59
Total P 677,129,353.26

Accounts Receivable account is composed mainly of claims from

Philhealth representing hospital charges of medicare patients and bills of patients
with promissory notes that were charged by some hospitals to the account.

The balance of P88,495.81 for DOH-CO recorded in the books of

accounts represents the balance as of CY 2004 which was a forwarded balance in
the e-NGAS.

Also included in the balance was the receivables from Welda Quinto,
former Cashier of Region 1 Medical Center (R1MC) due to alleged shortage of
P9,805,326.27.

Due from Officers and Employees – P27,577,329.66

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 This account pertains to the unliquidated cash advances for meals and
snacks, supplies and materials needed for meetings and trainings and pre-

23
travelling allowances. It also includes amounts due for personal telephone bills.
The bulk of the amount which comprise 39% of the total or P10,797,049.60 were
from the Medical Centers.

Due from National Treasury – P549,844,053.49

This account consists of amount deposited/remitted by DOH with the

National Treasury thru the Authorized Government Depository Bank for
collections which the agencies are authorized to use upon receipt of the NCA.
This includes the amount of P306,196,773.51 representing deposit of collections
from GMA 50 and P100 program and from performance/cash bonds treated as
trust receipts which are later released to the agency through NCA.

Due from NGAs – P554,062,302.06

This account is composed of the following:

DOH Offices Amount

DOH-CO P 404,837,707.52
Center for Health Development 33,587,314.51
Regional Hospitals 1,552,099.40
Medical Centers 82,027,932.29
Special Hospitals 6,057,536.33
District Hospitals 136,703.20
Sanitaria 2,787,570.56
Others 23,075,438.25
Total P 554,062,302.06

The balance for the DOH-CO consists mainly of advance payments made
to the Procurement Service of the DBM for the procurement of various office
equipment and supplies and fund transfers to CHD for ARMM for various
programs/projects of the Department. The balance of the account represents
undelivered supplies from PS-DBM and unliquidated transfers to CHD for
ARMM amounting to P13,337,007.31. The increase in the account was
attributed to the unliquidated fund transfers as of year-end.

Included in the amount for CHDs, was the P11,101,848.06 for CHD for
MM which refers to the unliquidated inter-agency transfer of funds to different
national government agencies, details are as follows:

Agencies Amount
Philippine Information Agency P 19,523.65
East Avenue Medical Center 2,600.05
Jose R. Reyes Memorial Medical Center 5,257,366.10
DPWH-NCR 250,209.98
AFP Medical Center 98.84
Quezon City General Hospital 150,000.00
Taguig-Pateros District Hospital 55,000.00

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 Agencies Amount
UP- Philippine General Hospital 2,386,000.00
Procurement Office 2,981,049.44
Total P11,101,848.06

Due from GOCCs – P308,795,061.63

This account consists of the following:

DOH Offices Amount

DOH-CO P 112,437,562.00
Center for Health Development 402,882.87
Regional Hospitals 42,634,112.50
Medical Centers 142,964,137.57
Special Hospitals 1,852,942.09
District Hospitals 7,934,719.85
Sanitaria 1,032.73
Research 567,672.02
Total P 308,795,061.63

This account with balance of P308,795,061.63 includes subsidy by the

National Government from PDAF recorded in the books of DOH-CO granted to
the various government owned and controlled corporations as assistance to the
indigent patients in the form of SARO released by the DBM. The account
consists of transfers to NKTI, LCP, PITAHC and PCMC for various programs
and including P5.0 million augmentation of operating expenses and for the
electrical system of the radiotherapy building which were not yet
liquidated/accounted for. The bulk of the amount was for the Medical Centers.

Due from LGUs – P671,537,650.48

This account consists of the following:

DOH Offices Amount

DOH-CO P 104,336,740.50
Center for Health Development 562,167,168.62
Regional Hospitals 3,420,050.01
Medical Centers 1,613,419.35
Others 272.00
Total P671,537,650.48

This account includes the amount of P104,336,740.50 balance of the

DOH-CO pertaining to fund transfer in connection with the Health Sector Policy
Program and delivery of drugs and medicines under P100 Program. This account
also includes the balance of P4,535,848.48 representing various grants made by
the CHD for MM to Local Government Units such as the Sustansya Para Sa Masa
(SPM), Local Performance Program (LPP), and the Lingap Para sa Mahirap
Program. While for the CHD for Ilocos Region, it consist of funds transferred to

25
different municipalities and City Treasurers in the Region for the repair and
renovation of Barangay Health Stations, RHUs and Hospitals of F1 Sites.

Due from NGOs/POs – P997,791,271.21

The balance of the account refers to the following:

DOH Offices Amount

DOH-CO P 974,164,565.05
Center for Health Development 18,347,776.19
Medical Centers 5,278,929.97
Total P 997,791,271.21

This account consists of fund releases to non-governmental organizations

for the implementation of the DOH programs/projects. Included also are advance
payments made by DOH-CO to WHO and UNICEF for the purchase of drugs and
medicines necessary to implement DOH public health programs such as
Expanded Program on Immunization, Tuberculosis Control, Micronutrient
Supplementation, Rabies Prevention and Control. For the year 2009, P253.3
million out of the P1.1 billion balance was recorded as liquidation which cause
the decrease in the balance presented in the DOH-CO balance sheet.

Due from Operating Units – P39,498,022.40

This account consists of the following:

DOH Offices Amount

DOH-CO P 37,457,353.04
Center for Health Development 2,040,669.36
Total P 39,498,022.40

This account pertains to transfer and liquidation of funds to retained

hospitals under the GMA 50 and P100 Program of the DOH-CO. The decrease in
the amount was attributed to the liquidation of fund transfers and correction of
erroneous entries in taking-up the fund transfers to National Electronic Injury
Surveillance System (NEISS).

Receivables-Disallowances/Charges – P138,091,453.27

This account consists of the following:

DOH Offices Amount

DOH-CO P 88,284,596.28
Center for Health Development 20,873,440.79
Regional Hospitals 7,702,319.39
Medical Centers 10,610,846.52
Special Hospitals 329,267.05
District Hospitals 2,992,594.69

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 DOH Offices Amount
Sanitaria 61,611.05
Research 823,977.96
Others 6,412,799.54
Total P 138,091,453.27

This account represents amount due from various employees resulting

from audit disallowances which have become final and executory. These consist
payments of additional subsistence allowance and CNA incentive bonus to DOH
regular employees. The bulk of the amount was from DOH-CO.

Advances to Officers and Employees – P17,845,949.75

These refer to the cash advances granted to defray travelling and training
expenses of officers and employees. Long outstanding balances of this account
belong to resigned/retired employees who were not cleared from accountability.
The P6,255,665.39 or 35% of the account balance refers to that of DOH-CO.

Other Receivables – P61,405,174.62

This account consists of amounts due from debtors and entities which
cannot be classified under the specific receivable accounts. The account balance
includes the P1.28 million for DOH-CO which have been dormant for many
years consisting mostly of unliquidated petty cash advances of accountable
officers and employees and travel cash advances given to non-DOH personnel but
who failed to liquidate said cash advances.

6. Inventories

Merchandise Inventory – P269,177,436.10

This account consists of drugs and medicines held for sale by the DOH
Botika/Retail Pharmacy or commercial pharmacy operated by the various
Medical Centers and other retained hospitals.

Office Supplies Inventory – P523,278,731.92

This account includes the unreconciled forwarded balances from prior

years of DOH-CO for Fund 101 in the amount of P173,303,242.77. This also
comprises the various office supplies as well as semi-expendable supplies and IT
equipment procured by CHD for MM in prior years before the NGAS was
introduced and implemented. Reclassification shall be made to correct the
improper recording.

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 Drugs and Medicines Inventory – P2,168,948,188.34

This account includes largely of procurement by DOH-CO of TB Drugs,

Vitamin A and EPI vaccines. For CY 2009, out of the total deliveries of P2.97
billion, issuance of drugs amounted only to P808,373,782.81 resulting in
increased balance of the account.

The breakdown/details of the accounts balances per DOH grouping are as

follows:

DOH Offices Amount

DOH-CO P1,791,881,665.83
Center for Health Development 276,046,407.18
Regional Hospitals 14,613,089.16
Medical Centers 53,944,735.97
Special Hospitals 20,093,704.01
District Hospitals 873,887.11
Sanitaria 7,055,623.79
Research 3,959,428.11
Others 479,647.18
Total P2,168,948,188.34

Medical, Dental & Laboratory Supplies Inventory – P746,528,082.65

This account consists of syringe, drug test kits, newborn screening kits
and binotal vaccine thermometer procured by DOH-CO. The increase in amount
was due to the purchase of P27.5 million worth of Newborn screening kits and
P14.1 million sputum cups in CY 2009.

Other Supplies Inventory – P171,629,385.61

The account refers to the goods which could not be classified in the
specific inventory accounts such procurement by DOH-CO of chemical supplies
for the use of the Infectious Disease Office and mosquito nets for distribution to
the CHDs. This also pertains to the purchased pillows for the use in the
dormitory, mannequin for use in the Basic Life Support Trainings, vests, garage
tent and other supplies used by Engineering, Housekeeping and Linen
Departments of the medical centers and retained hospitals. The amount of
P80,211,269.86 or 47% of the account balance was from the CHDs.
7. Prepayments

Deposit on Letters of Credit – P82,070,736.10

The amount of P82,070,736.10 of the DOH-CO includes marginal

deposits to Land Bank of the Philippines for the opening of various letters of
credit needed in the importation of goods and equipment.

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29
 Advances to Contractors – P140,573,313.78

This account pertains to advance payments authorized by law such as

mobilization fees of contractors for the implementation of various construction
projects. The balance of P54,468,640.67 refers to DOH-CO, the bulk of which
were prior years’ balances of the Child Survival Program and Philippine Health
Development Project funds wherein project documents were not properly turned-
over for taking up in the books of accounts.

Other Prepaid Expenses – P21,840,209.57

This account includes the amount of P8,051,345.19 from DOH-CO which

are dormant unreconciled balances from Integrated Community Health Sector
Program, a completed foreign assisted project of the DOH. The amount could not
be traced because there was no proper turn-over of project documents.

8. Other Current Assets

Guaranty Deposits – P14,412,296.58

The account represents balances from:

DOH Offices Amount

DOH-CO P 4,084,187.39
Center for Health Development 969,728.53
Regional Hospitals 15,852.00
Medical Centers 3,319,162.84
Special Hospitals 2,549,002.18
District Hospitals 626,533.25
Sanitaria 367,690.00
Research 2,340,821.70
Others 139,318.69
Total P 14,412,296.58

This account consists of cash deposits, subject to refund, made to secure

or guaranty compliance with certain requirements in a transaction. In DOH-CO,
CHD for MM, medical centers and other retained hospitals, this account includes
deposits for gasoline, oil and lubricants consumption.

9. Property, Plant and Equipment

Property, Plant and Equipment are carried at cost less accumulated

depreciation. However, some agencies did not provide or compute accumulated
depreciation for some of their PPE because they could not determine the original
costs and dates of acquisition of these assets.

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Land – P180,922,810.48

This account includes the following:

Office Amount Particulars

CHD for Ilocos P32,384,223.79 Lots where the three medical centers
(ITRMC, R1MC & MMMHMC) are
located.
CHD for Bicol 750,000.00 Land occupied by the Camarines Sur
Region Drug and Treatment Rehabilitation
Center at San Fernando, Camarines Sur.
However, this does not include the Land
where the CHD Headquarters Office is
located because the 21,275 sq.m. lot is
not yet titled in favor of CHD for Bicol
Region hence, could not be booked up as
part of its assets.
Bicol Sanitarium. 597,383.00 Land located at San Pedro, Cabusao,
Camarines Sur where the Bicol
Sanitarium Main Office is located. The
office building occupied a total area of
379 hectares, 150 hectares are for
hospital zone and the remaining areas
are covered by the Comprehensive
Agrarian Reform Program for
distribution to qualified residents of
Bicol Sanitarium.
Bureau of Quarantine 2,000,000.00 Lot purchased by the Bureau of
Quarantine (BQ) located in General
Santos City which will be used in the
construction of Quarantine Station office
and Laboratory in 2010.
EAMC 10,259,145.00 Lot occupied by EAMC measuring
41,288.30 square meters which was
transferred from the GSIS on 26 July
1982 at a cost of P10,259,145.00
evidenced by TCT No. 207225.

On the other hand, the cost of the land where the SLRW Hospital is
located was not booked up since it is still under the name of CHD for MM. The
transfer of title of the lot from CHD for MM to the Hospital is now in process. In
DJNRMH, the adjustment in the account was made to take up ownership of only
ten hectares of land from the original one hundred thirty hectares in view of the
implementation of RA No. 7999 and Presidential Proclamation No. 366 by the
National Housing Authority (NHA).

In RITM, although account Land was not recorded in its books,

Management believed that adequate action has been undertaken to establish their
right to occupy the 31,946 square meters of land, as supported by MOA between

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32
DOH and Public Estates Authority (PEA) dated 3 September 1993. However,
RITM could not present title of ownership to the land it occupies as basis for
recording in the books of accounts.
Office Buildings – P1,375,879,968.22

This account includes of the following:

Office Amount Particulars

CHD for P37,132,486.28 Included in the amount are
SOCCSKSARGEN buildings that were already
devolved to Local Government
Units but not yet dropped from the
account
CHD-MM 5,442,341.96 Pertains to the constructed
Barangay Health Centers and
Botica sa Barangay which have
already been turned over to their
respective Barangays but still
remains reflected in the books of
accounts. The transfer of the
buildings was not yet dropped from
the books due to the unavailability
of documents to support such.
CHD for Bicol Region 40,731,683.51 Buildings consisting of CHD
headquarter, supply/warehouse,
regional laboratory/blood bank,
operation center, and WHSMP
(Partnership Comp.) & Utility.
CHD for Ilocos Region 9,117,025.58 Consists of the main and annex
building constructed at Parian, San
Fernando City, La Union in 1978,
1991 and 1996.
DOH-CO 249,345,337.24 The balance of this account
increased due to various major
renovations/repairs of the
Department’s buildings which were
taken up as capital outlays.

On the other hand, the cost of the building of SLRWH was not booked up
due to lack of proper turn-over of the corresponding Tax Declaration showing the
value of the building from the MAKATAO Foundation, the donor. No data on the
cost of the building are available for reference.

33
Hospital and Health Centers – P4,076,451,819.87

This account includes the following:

Office Amount Particulars
DOH-CO P 32,458,828.82 This includes additional cost on the
construction of hospital building at Adela
Serra Ty Medical Center and a Trauma Center
which caused the increase in the account of
DOH-CO.
EAMC 186,268,678.78 This consists of the Main Building, the Out-
Patient Department Building, the new OPD
Building and the Degenerative Diseases
Prevention Building (now NRL), all located
within the perimeter of the East Avenue,
Diliman, Quezon City.
DJNRMH 27,392,847.26 Account balance increased due to the
additional constructions which were
completed in 2009.
Dr. Jose 56,586,272.33 This includes Rehabilitation of
Fabella Pedia/Dormitory building in the amount of
P10,804,006.76. The increase in the account
Memorial was due to rehabilitation of electrical system
Hospital of main building (Feederline) and the
(DJFMH) provision of fire safety equipment and
devices.
ITRMC 33,841,286.88 Includes the hospital building and annex
buildings constructed at Parian, San Fernando
City, La Union and donated assets recorded at
appraised value of P33,841,286.88.

Other Structures – P139,738,980.65

This account includes the cost of deepwell, water tank and concrete
garbage disposal of DOH-CO. In CHD for MM, this account refers to the
constructed Public School Toilets in various Metro Manila Public Schools which
have been already turned over but still remains reflected in the books of accounts.
The transfer of the structures was not yet dropped from the books due to the
unavailability of documents to support such. Also included in the account are the
two units of elevators and other fixtures that were permanently mounted to the
building of TMC.

Office Equipment – P745,140,100.61

This account consists of the following:

DOH Offices Amount
DOH-CO P 159,390,580.47
Center for Health Development 67,146,658.01
Regional Hospitals 55,648,817.16

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 DOH Offices Amount
Medical Centers 305,837,569.56
Special Hospitals 66,160,254.80
District Hospitals 35,136,056.60
Sanitaria 6,573,700.73
Research 17,136,061.53
Others 32,110,401.75
Total P 745,140,100.61

This account generally increased due to various acquisitions during the

year. It includes the procurement of BQ of Heavy Duty Paper Cutter and Digital
Copy Printer which were used in the printing and cutting of IEC Materials for the
A (H1N1) Pandemic.

Furniture and Fixtures – P175,329,055.61

This account is composed of the following:

DOH Offices Amount
DOH-CO P 9,400,930.20
Center for Health Development 41,752,681.06
Regional Hospitals 16,576,066.13
Medical Centers 50,819,691.39
Special Hospitals 25,438,539.55
District Hospitals 4,855,595.78
Sanitaria 713,616.04
Research 10,780,887.14
Others 14,991,048.32
Total P 175,329,055.61

This account consists mainly of office furniture purchased by CHD for

MM as well as donations received from the DOH-Central Office, UHNP and
DOH Management Sciences for Health LEAD for Health Project. Also included
deliveries made by FDA of furniture and fixtures including installation amounting
to P5,968,585.00 at the Davao Satellite Laboratory in December 2009.

IT Equipment and Software – P585,355,323.14

This account consists of the following:

DOH Offices Amount
DOH-CO P 208,888,735.31
Center for Health Development 109,894,705.25
Regional Hospitals 40,105,030.51
Medical Centers 100,590,276.04
Special Hospitals 44,782,162.38
District Hospitals 11,450,949.05
Sanitaria 6,493,242.10
Research 19,125,516.96
Others 44,024,705.54
Total P 585,355,323.14

35
 This account includes mini note personal computers, computer desk tops,
printers and external drive purchased by VMC in 2009. The increase in the
balance of the account was attributed to the purchase of computers by POC and
DJNRMH; servers by EAMC; 50 units of desktop computers and four units of
laptop by FDA, and upgrading of various serviceable computers by CHD-MM.

Medical, Dental & Laboratory Equipment – P2,001,073,760.89

This account includes the following:

Office Particulars
DOH-CO Acquisitions of three units Diagnostic Radiology and two
units Mammography by DOH-CO
RMC Medical rehabilitation equipment, diagnostic set, cautery
machine, paraffin bath and ECG machine charged against
Income Fund and Affiliation Fund
CHD for MM Receipt of donations of Vaccine Chest Freezer, Ice Pack
Freezer and Digital Precision Scale
POC and NCH Acquisitions of additional medical, dental and laboratory
equipment to replace the unserviceable and fully
depreciated ones.

Other Machineries and Equipment – P409,327,253.99

This account consists of items such as air conditioning units, refrigerators

and others in DOH-CO while in POC this account includes heavy duty sewing
machines, band saw, electric scissors, elevators and waste disinfection machines.
Also included are the elevator purchased in prior year and additional two units
acquired this year by RMC. The increase in the account per books of FDA was
due to the purchase of one Generator Set in the amount of P650,849.00 for the use
of Davao Satellite Laboratory.

Motor Vehicles – P371,503,827.26

This account consists of donated one unit Toyota Tamaraw FX, purchased
one unit Toyota Innova in the amount of P408,450.00 and P950,000.00,
respectively, of DJFMH while for BQ, this account consists of 11 units of vehicles
(one unit Honda City, one unit Toyota Grandia and nine units Isuzu Crosswind)
purchased in 2009.

Other Property, Plant and Equipment – P216,646,851.83

This account represents the cost or appraised value of other PPE acquired
which cannot be classified specifically under any other account in the Standard

36
Chart of Accounts such as refrigerators, freezers, conveyors, heaters, industrial
fans, generators, amplifiers, Television sets, washing machines, fire system and
lighting amenities, etc. In FDA, this account consists of waste water treatment
plant and 20-foot fully furnished container vans while in JRRMMC, this account
pertains to the costs of equipment bought from affiliation funds pursuant to
Section 10.2.2 of DOH Administrative Order No. 5-A s. 1996 dated 17 February
1996.

Construction in Progress-Agency Assets – P1,726,505,667.77

This account includes the following:

Office Amount Particulars

POC P 40,331,505.68 New infrastructure projects/construction
which are still under construction of:
Spinal Ward Building and major
renovation of the Children’s Ward of POC
TMC 86,488,718.67 Hospital building and the unliquidated
portion of funds previously transferred to
the DPWH wherein liquidation reports
were not submitted yet to the agency;
ARMMC 160,800,000.00 OPD building and Six-Storey Main
Hospital Building valued at P52 million
and P108.8 million, respectively;
DJFMH 45,000,000.00 OPD Satellite at Lung Center of the
Philippines compound
CHD for Northern 11,471,226.04 On-going hospital building construction at
Mindanao JR Borja Memorial Hospital, Cagayan de
Oro City in the amount of P11,471,226.04
undertaken by CHD for Northern
Mindanao but will be turned-over to the
city of Cagayan de Oro upon completion.
MHASRTTH 9,411,118.12 Construction of the OR/DR Complex
Phase III.
APMC P 65,687,626.96 Various on-going infra projects
CHD for MM 14,250,000.00 Cost of the construction of Taguig
Hospital under the Congressional
Initiative of Cong. Dante Tinga which
cannot be dropped from the books since
there was no proper turn-over for the
transfer of these edifices to CHD-MM due
to unavailability of pertinent/legal
documents.
CHD for Western 15,255,569.86 Obligations under the Health Facility
Visayas Enhancement Project which were bided at
CHD for WV and to be constructed at the
LGU facilities.
Bicol Sanitarium 37,810,727.32 Composed of on-going and completed

37
 Office Amount Particulars
infrastructure projects but not yet accepted
covered by Calamity Assistance and
Rehabilitation Effort (CARE) that includes
repair and renovation of Main Hospital
Building, Perimeter Fence, Service Roads,
Motorpool/Garage and Carpentry, Social
Hall, Power House and other facilities
chargeable against Hospital Upgrading
under PGMA Priority Project.

Construction in Progress - Other Public Infrastructures – P5,466,711.40

This account consists of the on-going constructions at CHD for Ilocos

Region as follows:

1. La Union Drug abuse Treatment – P3,234,914.48

2. Sta. Barbara District Hospital – 1,646,251.41
3. Malasique Municipal Hospital – 585,545.51
Total P5,466,711.40

Accumulated Depreciation – P5,547,095,151.65

The following accounts of DOH-CO were not provided with depreciation

costs because these are still being analyzed:

1. Machineries
2. Construction & Heavy Equipment
3. Military & Police Equipment
4. Watercrafts
5. Other PPE

Depreciation were not provided for the property of the RMC for CYs 2008
and 2009 as the bases of computations have yet to be reviewed and evaluated.
Likewise, no depreciation expenses were provided for buildings and
improvements of QMMC because retrieval from the old files was not yet
undertaken to determine the exact amount of each project recorded in the books of
accounts prior to the implementation of NGAS. On the other hand, Accumulated
Depreciation – Firefighting Equipment and Motor Vehicles of FDA increased due
to the provision of depreciation for CY 2009.

10. Other Assets

Items in Transit – P865,056,111.29

This account consists of procured PPE which were not yet delivered as of
the year end.

38
39
 Other Assets – P130,235,614.61

This account includes the balances forwarded from previous years of

Construction and Accessories, Industrial Equipment, Hand Tools, Furniture,
Fixtures Held in Trust by EAMC which are subject for reclassification to the
appropriate fixed assets and/or supplies accounts. In VMC and DJFMH, this
account represents the 10% salvage value of fully depreciated and unserviceable
equipments awaiting disposal while in TMC the amount of P2,044,914.70
includes fixed assets that are fully depreciated but are still useful. The account
balance of P1.8 million for DOH-CO was the unreconciled balance of Rural
Water Supply and Sanitation Project as of 31 December 2004.

Also included in the account balance are assets of CHD for CAR in the
amount of P6,223,925.27 that are not used in the operations of the agency. These
were procured for the use of LGUs and other NGAs which are awaiting disposal,
acceptance or issuance to intended recipients.

11. Current Liabilities

Accounts Payable – P4,138,332,222.90

This account pertains to the unpaid obligations/indebtedness to

suppliers/contractors and other creditors for purchases of goods and services as
well as payables to contractual employees chargeable against the regular
appropriations. For EAMC, current year payables are charged to the Trust Fund
Regular Income and Revolving Fund. It also includes obligated expenses not yet
paid as of year-end. The unavailability of cash to pay the obligated expenses at the
end of CY 2009 increased the balance of the account. For CHD for MM, the
account represents payables from CYs 2002 to 2007 and 2009. Out of the total
accounts payable of VMC amounting to P23,113,539.69, an increase of
P9,274,518.38 chargeable against Regular Fund represents the amount allocated
for CNA benefits.

Also included is the amount of P226,939,980.00 for CHD for CAR which
pertains to funds due to various LGUs of the CAR for the construction and
installations of health facilities under the Health Facilities Enhancement Program
of the DOH. In previous years, most funds were directly transferred from DOH -
CO to the LGU but in CY 2009, all funds were sub-allotted to CHD for CAR and
then will be transferred to the different LGUs through MOA. This caused the
tremendous increase in the Accounts Payable account for CY 2009.

Due to Officers and Employees – P163,862,563.93

This account refers to the obligated salaries, overtime services, terminal

leave benefits, reimbursement of travelling expenses and other DOH regular

40
employees’ claims which were not yet paid due to unavailability of cash at the end
of CY 2009. It also represents Doctor’s Professional Fees from PHILHEALTH
which are for distribution to hospital personnel.

Due to National Treasury – P9,272,494.10

This account represents the interest earned on the peso and dollar deposits
account of various foreign-assisted projects due for remittance to the National
Treasury. In CHD for MM, this account refers to the refund of CNA Emolument
beginning January 2009.

Due to BIR – P88,477,736.55

This account consists of taxes withheld from officers and employees and
other parties and creditors for remittance to BIR. The bulk of the amount were
from the medical centers.

Due to LGUs – P53,530,400.13

This account includes the prior years’ payable of CHD for MM to the City
of Manila for financial assistance for the improvement of Health Service Delivery
to eligible LGU through the Sentrong Sigla Program. The amount was not yet
settled due to lack of documents to support the details and validity of the account
balance.

Due to Central Office – P36,914,429.54

This account includes cost of P100 and GMA 50 Drugs and medicines for
sale issued to DOH participating hospitals that should be repaid by the said
hospitals to DOH-CO. Included also is the 5% share on the Affiliation Fees
collected by the hospitals for remittance to DOH-National Commission on
Affiliation and Training of Students (NCATS).

Due to Regional Offices/Staff Bureaus – P46,639,449.89

This account includes the amount received by the DOH-CO from the
regional offices/staff bureaus for the purchases and acquisitions being undertaken
by the Central Office for the account of the former. This consists of the P35
million dormant amount of the PHDP Fund. The amount increased due to the
recording of payables to CHD for Central Visayas for the delivery of medical kits
and the P10 million dormant balance of the Child Survival Program which was
not included in the consolidated report in CY 2008.

41
Guaranty Deposits Payable – P164,214,434.89

This account comprises the retention of payment to suppliers of drugs and

medicines awaiting clearance from FDA for testing. It also includes retention
moneys of contractors for the construction, renovation and repair of buildings
pending the conduct/result of inspection of the projects. Included in the account
were deposits paid by POC for the purchase of LPGs being used in the Dietary
Section. The bulk of the amount was from DOH-CO.

Other Payables – P1,082,309,927.28

This account is used to record all other current liabilities not classified in
any specific current liability account including those authorized deductions from
salaries and other liabilities of the government, payment of which are held in
escrow. The breakdown of this account is as follows:

Particulars Amount
Office of the Secretary P 540,778,211.92
Center for Health Development 73,474,283.51
Regional Hospitals 29,295,759.50
Medical Centers 291,653,766.96
Special Hospitals 106,513,006.79
District Hospitals 4,649,333.49
Sanitaria 500,307.75
Reseach 31,954,044.78
Others 3,491,212.60
Total P1,082,309,927.28

The amount of P540,778,211.92 for the DOH-CO includes the funds

received from grantor/donor for the on-going projects that were added to the total
Other Payables for completed projects which should have been closed after the
completion of the project. For the Medical Centers and Special Hospitals, this
account consists mainly of payables arising from the purchase of drugs and
medicines and other supplies and expenses charged against income collections
and other funds other than the regular appropriation such as Revolving Fund for
drugs and medicines. It also includes trust liabilities such as PCSO Endowment
Fund, Philhealth honorarium and Affiliation Funds. Also included in this account
is the cost of consigned drugs and medicines sold for the account of consignors.

Also included in the amount of P73,474,283.51 for CHDs, is the amount

of P21,082,999.94 for CHD for Caraga Region which consists mostly of unused
portion of funds deposited in trust account for special projects/programs on
International Children’s Emergency Fund (UNICEF), Southern Philippines
Irrigation Sector Project (SPISP), National Family Planning (NFP) and Water
Resource Development Project (WRDP), REDCOP, proceeds from sale of waste
materials, share on the student’s affiliation fees from retained hospitals,
honorarium received from GOCCs and proceeds from sale of bid documents.

42
43
12. Long-Term Liabilities – P6,239,907.96

Other Long-Term Liabilities in the amount of P6,237,159.18 refers to the

loans from GOCCs which have been recorded in the books of DOH-CO since
1989. The reason for the non-payment of the balance could not be determined.
The account is due for verification and analysis.

13. Deferred Credits – P145,629,470.73

Other Deferred Credits account consists of the following:

Particulars Amount
Office of the Secretary P 4,290,036.75
Center for Health Development 270,152.20
Regional Hospitals 2,350,170.83
Medical Centers 122,357,512.54
Special Hospitals 16,291,885.50
Reseach 69,712.91
Total P145,629,470.73

The amount of P4,290,036.75 for the DOH-CO is a dormant account in the

books of Early Childhood Development Project. For Medical Centers and
Specialized Hospitals, this account was used to record uncollected income
generated from PHILHEALTH and PCSO guaranteed patients. In NCMH, this
account is credited for billings of affiliation fees, hospital fees and medicines
consumed by patients which are booked up as receivables from patients and
affiliating schools however, this account will no longer be used/credited for
uncollected income instead the appropriate income account will be directly
credited. On the other hand, the nature of this account for RMC could not yet be
determined as these accounts had remained dormant since the NGAS
implementation in CY 2002. This account is for further review and analysis to
ascertain its composition and for proper disposition thereof.

14. Government Equity - P17,863,786,769.73

Since the financial statements consolidated for CY 2009 were incomplete

due to non-inclusion of the accounts of five CHDs and 26 hospitals, the beginning
balance of the Government Equity account amounting to P16,989,994.00 as of
January 1, 2009 differ from the ending balance of P20,423,244.00 as of December
31, 2008.

Prior Year’s Adjustments account refers to the adjustments for the

previous years’ expenses like janitorial, security and hauling services, rental of
photocopying machines, newspaper subscription and print advertisements,
telephone bills, etc. and fund transfers to cover cost of 2008 DOH Counterpart to
EC Grant Health Service Development Program including Policy Support to

44
 various provincial government. Credit to this account includes the cost of
previous year receipt of inventory supplies and remittance of taxes thru TRA.

III.Statement of Income and Expenses

15. Income

Subsidy Income from National Government – P12,465,327,447.55

The Subsidy Income from National Government (SING) under the

General Fund represents the total amount of Notices of Cash Allocations (NCAs)
received in CY 2009. The total of P12,465,327,447.55 NCAs received from DBM
during the year was used for the operational requirement of the OSEC, offices and
hospitals under DOH:

Office/Center/Hospitals Amount
Office of the Secretary P 1,900,990,655.71
Center for Health Development 2,970,772,682.89
Regional Hospitals 1,308,270,146.30
Medical Centers 3,520,697,380.11
Special Hospitals 1,793,168,652.84
District Hospitals 179,184,753.10
Sanitaria 276,065,998.21
Research 202,749,325.00
Others 313,427,853.39
Total P 12,465,327,447.55

There are also subsidies in the total amount of P917,564,899.62 from the
following:

Subsidy from Subsidy from

Subsidy from Subsidy from Regional Operating Subsidy Subsidy from
National Gov't Central Office Office / Staff Units from Other Funds
Offices Bureau LGU's Total
CHD P 40,654,684.97 P658,461,544.12 P 556,295.36 P135,776.00 P413,550.00 P 700,221,850.45
Regional 250,000.00 3,895,152.40 2,588,204.50 3,210,024.95 - - 9,943,381.85
Hospital
Medical - 114,605,634.97 10,898,249.33 56,900.00 975.00 - 125,561,759.30
Centers
Special - 18,847,000.00 - - - 18,847,000.00
Hospitals
District - - - 1,000,000.0 1,000,000.00
Hospitals 0
Sanitaria 1,047,070.00 800,000.00 - 1,847,070.00
Research 54,143,838.02 - - 54,143,838.02
Others 6,000,000.00 - - 6,000,000.00
Total P 40,904,684.97 P857,000,239.51 P14,842,749.19 P3,402,700.95 P975.00 P1,413,550.00 P 917,564,899.62

Under Subsidy from LGUs, two of the recipients were from CHD for
Central Luzon, the Bataan General Hospital (BGH) and Mariveles Mental Ward
(MMW) to support their medical assistance programs.

45
 The Center for Health Development and District Hospitals received
P413,550.00 and P1,000,000.00, respectively, from Subsidy from Other Funds.

Subsidy from Other National Government – P40,904,684.97

Notices of Cash Allocation (NCA’s) pertain to the received by the Center

for Health Development and Regional Hospitals in the amount of P40,654,684.97
and P250,000.00, respectively.

Subsidy from Central Office – P857,000,239.51

The Subsidy from Central Office totaling P857,000,239.51 represents the

funds transferred from Central Office to the Centers, Regions and Hospitals. The
transfer is thru Authorized Government Servicing Banks (AGSBs). The details are
as follows:

Office/ Center/Hospitals Amount

Center for Health Development P 658,461,544.12
Medical Centers 114,605,634.97
Research 54,143,838.02
Special Hospitals 18,847,000.00
Others 6,000,000.00
Regional Hospitals 3,895,152.40
Sanitaria 1,047,070.00
Total P 857,000,239.51

Subsidy from Regional Office/Staff Bureau – P14,842,749.19

Subsidy from Regional Office amounting to P14,842,749.19 pertains to

the subsidy received by the Operating Unit (such as CHD, Medical Centers) from
the Regional Office/Staff Bureau by way of funding check as fund transfers thru
AGSBs.

The total account represents the subsidies from the regional offices and
received by the following:

Office/ Center /Hospitals Amount

Medical Centers P 10,898,249.33
Regional Hospitals 2,588,204.50
Sanitaria 800,000.00
Center for Health Development 556,295.36
Total P 14,842,749.19

Reversion of Unused Notice of Cash Allocation – P195,712,424.94

There was substantial reversion of unused NCAs amounting to

P195,712,424.94 due to the new policy of the DBM that all NCA issued for the

46
month will lapse at the end of the month. The DOH-CO reverted considerable
amount of NCAs that it received in the last quarter of CY 2009.

Other deductions from Subsidy Income from National Government were

the following:

Center for
Office of the Regional
Particulars Health Total
Secretary Hospitals
Development
Subsidy to Regional
Office / Staff Bureau P 382,002,274.33 P 100,000.00 P 382,102,274.33
Subsidy to LGU's 221,379,617.35 885,886,881.44 P 7,125.00 1,107,273,623.79
72,276,159.1 72,276,159.
Subsidy to GOCC's 0 10
35,706,154.7 1,746,392.5 37,452,547.
Subsidy to NGO's / PO's 2 1 23
P1,599,104,604.4
Total P 711,364,205.50 P 887,733,273.95 P 7,125.00 5

Registration Fees – P90,589,130.00

This account pertains to the fees collected by FDA for the issuance of
initial or renewal of Certificate of Product Registration (CPR) for food, drugs
cosmetics and household hazardous substances.

Other Permits and Licenses – P60,539,461.50

This account refers to fees charged by FDA to manufacturers, retailers and

distributors of foods, drugs, cosmetics and household hazardous substances for
the issuance of initial or renewal of License to Operate (LTO) authorized under
RA No. 9502.

Affiliation Fees – P49,476,105.81

This account represents charges to nursing, psychological,

medical/paramedical students affiliating in the hospitals/medical centers.
Medical, Dental & Laboratory Fees – P966,401,048.39

This represents collections from laboratory exam., ECG, X-ray, dental

fees, ultrasound, consultation fees, clinical abstract. These comprise collections
from the operation of the hospitals.

Other Service Income – P190,996,206.37

The account represents sale of bid documents intended for the payment of
honorarium of BAC members. This also includes income earned from minor
operation and fees charged for use of ambulance and payment for OPD card.

47
Hospital Income – P1,431,111,997.21

This account includes collection of hospital bills from patients.

Rent Income – P18,027,444.13

This account represents rental fees of various spaces such as canteen

concessionaire, vendo machines and antennas of telecommunication companies.

Other Business Income – P30,917,555.07

This account represents users’ fees paid by students in using the facilities
of the hospital and other institutional fees collected.

Income from Grants and Donations – P246,178,602.46

The account represents donations received by DOH-CO, CHDs, hospitals,

sanitaria, research and others from institutions such as affiliates, government
agencies, NGOs in cash or in kind.

In Research Institute for Tropical Medicine (RITM), the amount of

P22,581,720.69 received from grants and donations from different funding
agencies for the funding of various research projects for Malaria, National
Institute for Infectious Diseases (NIID), Dengue, Measles, Meningitis, and
Encephalitis.

In San Lazaro Hospital (SLH), there was a significant increase of grants

and donations due to the receipt of various donations in kind, as follows:

Particulars Amount
Drugs and Medicines P 6,629,781.03
Medical, Dental, and Laboratory Equipment 4,624,356.30
Medical, Dental, and Laboratory Supplies 4,021,533.40
Total P 15,275,670.73

Miscellaneous Income – P185,836,509.80

This account consists of proceeds from sale of car stickers, watcher’s pass,
waste materials, used linens and scrap woods. Also included are collections of
electric bills from dormitory occupants and patients for use of electric fans and
payment for lost linens.

Gain/ (Loss) on Foreign Exchange – P(3,255,347.89)

The Gain/Loss on Foreign Exchange (Forex) in DOH-CO amounting to

P(3,255,347.89) represents the losses in the conversion of US dollars to Philippine

48
49
 Peso. Loss on Foreign Exchange was due to the low conversion rate of US dollars
to Philippine Peso during the year due to recession affecting the world’s economy.

Gain/ (Loss) on Sale of Assets – P(4,134,539.24)

The total amount of P(4,134,539.24) represents loss on sales of assets, as

follows:

Particulars Amount
Center for Health Development 3 & Cordillera
Autonomous Region P 3,686,776.46
Research Institute for Tropical Medicine 447,762.78
P
Total 4,134,539.24

Account Loss on Sale of Assets for RITM pertains to the loss of

P447,762.70 in the disposal of unserviceable equipment which was sold for
P70,000.00 although the net book value of this equipment was P517,762.70.

Sales Revenue – P1,105,476,920.33

This account pertains to the income derived from sale of drugs and
medicines from stock and resale of drugs and medicines under the P100 and GMA
50 Project dubbed as Gamot na Mababa- Abot Kaya.

16. Expenses

Salaries and Wages – P3,854,970,863.68

The increase in the account was basically due to the implementation of

Executive Order No.811 dated June 17, 2009 adopting the 1 st tranche of the
modified Salary Schedule for Civilian personnel and the modified Base Pay
Schedule for military and uniformed personnel, both provided under the Senate
and House of Representatives Joint Resolution No. 4 s.2009:

Personnel Economic Relief Assistance (PERA) – P217,318,483.83

This account represents allowances granted to all appointive national

government employees occupying itemized plantilla positions, casual and
contractual employees.

Additional Compensation – P271,158,018.37

This pertains to the payment of additional allowance authorized under

Administrative Order No. 53 dated May 17, 1993 granted to all government

50
personnel whether regular or casual; and those on temporary status or contractual
personnel whose employment is in the nature of a regular employee.

Representation Allowance – P18,911,516.64

This account pertains to representation allowance granted to authorize

officials and employees while in the actual performance of their respective
functions.

Transportation Allowance – P14,670,771.37

This represents allowance granted to authorized officials and employees

for transportation expenses incurred, which shall be paid from appropriation
provided for in their respective offices.

Clothing/Uniform Allowance – P82,392,646.68

This account is used to record allowance granted to government officials

and employees for office uniforms at such amount as may be authorized by
applicable General Appropriations Act, which may be given in kind or in cash.

Productivity Incentive Allowance – P47,896,717.93

This pertains to incentive benefits granted to government employees in

recognition for their satisfactory performance as authorized by law.

Other Bonuses and Allowances – P117,733,741.25

This represents payment of other bonuses and allowances not classified

under the specific accounts as authorized by law.

Honoraria – P 43,658,209.73

This account pertains to the payment for services rendered by government

personnel performing activities or discharging duties in addition to, or over and
above their regular functions, and payment for services of personnel with
expertise or professional standing in recognition of his broad and superior
knowledge in specific fields.

Hazard Pay – P627,402,332.07

This represents hazard pay paid to hospital officials and employees in

accordance with R.A.No.7305, Magna Carta of Public Health Workers.

51
Longevity Pay – P69,739,698.97

This account pertains to payment of longevity pay given to government

officers and employees who have rendered continuous service in the government
for five years.

Overtime and Night Pay – P1,713,451.78

This pertains to payment of services for working in excess of the

minimum total hours set for a given employee.

Cash Gift – P103,178,636.20

This account represents cash gifts granted to government officials and

employees as authorized by law.

Life and Retirement Insurance Contributions – P436,246,516.00

This pertains to the share of the government for the premium contributions
to GSIS life insurance and retirement of government personnel.

PAG-IBIG Contributions – P25,477,199.67

This represents government’s share of premium contributions to the Home

Development Mutual Fund (HDMF).

PHILHEALTH Contributions – P39,732,748.13

This pertains to government’s share in premium contributions to health

insurance funds maintained with the Philippine Health Insurance Corporation
(PHIC).

ECC Contributions – P24,905,476.39

This account represents the government’s share in premium contributions

to the Employees’ Compensation Commission.

Terminal Leave Benefits – P90,589,002.33

This account refers to monetary equivalent of earned terminal leave of

retired and resigned employees in 2009.

Other Personnel Benefits – P477,887,448.66

This account consists of CNA bonus, loyalty pay and other authorized
benefits granted to DOH-CO, CHDs, hospitals and DOH attached agencies
personnel charged against hospital savings. Also includes expenses on cultural

52
and athletic activities and stipend as a form of incentive to personnel who
graduated from masteral scholarship.

Travelling Expenses – Local and Foreign – P149,737,387.27

These pertain to expenses incurred in the travel of officials and employees

in domestic and international to attend seminars and conferences.

Training Expenses – P266,495,727.23

This account includes expenses in relation to attendance to training,

seminars, and workshops.

Scholarship Expenses – P15,883,430.85

The account refers to expenses incurred by personnel who were granted

opportunities to pursue continuing education for both the undergraduate and the
graduate courses.

Office Supplies Expenses – P125,500,701.56

This account represents expenses incurred for the procurement of office

supplies, printed general forms, and janitorial supplies for use of various offices /
patients/end users.

Food Supplies Expenses – P351,762,964.01

This account pertains to the consumed food and dietary expenses

given/served to the patients.

Drugs and Medicines Expenses – P581,215,310.72

This represents the cost of various drugs and medicines as well as health
kits and vaccines given to indigent patients.

Medical, Dental & Laboratory Supplies Expenses – P1,367,531,298.37

The account represents the cost of various medical, dental and laboratory
supplies issued to patients.

Gasoline, Oil & Lubricant Expenses – P40,604,946.27

This pertains to the cost of gasoline, oil & lubricant consumed by

government vehicle and other equipment in connection with government
operations and projects.

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Other Supplies Expenses – P223,726,228.05

This pertains to the cost of housekeeping, linen supplies, and engineering

and includes construction and plumbing materials.

Water Expenses – P163,215,614.82

Represents cost of water consumption in the offices and hospitals.

Electricity Expenses – P404,807,148.08

This pertains to the cost of electric power or illumination, electronic and

electricity-run medical/office equipment in the hospital and offices.

Cooking Gas Expenses – P17,123,042.37

The account refers to gas consumption for cooking the food of hospital
patients.

Advertising Expenses – P71,575,815.20

This account pertains to cost of posting of Invitation to Bid to various

newspapers of general circulation and in the dissemination of health programs.

Rent Expenses – P37,264,164.90

This account refers to rentals of photocopying machines, office spaces,

buses/vehicles in transporting participants of workshops and seminars and
portalets used after Typhoons Ondoy and Pepeng.

Transportation and Delivery Expenses – P25,882,486.75

This account pertains to transportation and delivery services in connection

with procurement activities.

Consultancy Services – P65,087,894.78

This account includes professional fees of consultants/specialists or firms

hired to undertake system development, design and studies, strategic planning and
program management for various foreign assisted project of the DOH-CO.

General Services – P127,821,110.77

This account represents expenses for minor carpentry/plumbing/electrical

works performed by building and grounds hospital personnel for the maintenance
of hospital facilities.

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Other Professional Services – P194,881,260.99

This account refers to salaries and wages of personnel hired on a job order
basis authorized under Joint Circular No. 1-09 dated 23 March 2009. It also
includes wages of contractual personnel particularly Medical Officers and Nurses
who were assigned in the airport terminal due to A (H1N1) pandemic hired by
BQ.

Repairs and Maintenance - Hospital & Health Centers – P104,664,347.94

This account refers to the costs of repairs of hospital buildings and

facilities.

Repairs and Maintenance – Hospital Equipment – P27,172,862.71

This account refers to contract cost of preventive maintenance entered into

for equipment needing regular maintenance.

Donations – P185,214,165.34

This account refers to cost of drugs and medicines issued for the Botika ng
Barangay to the different LGUs. It includes also funds contributed to Sagip Bie
Foundation for the monthly operational requirements of the Central Luzon Drug
Rehabilitation Center and inventory supplies and equipment given to various end-
users.

Taxes, Duties and Licenses – P160,716,201.04

This account pertain to the renewal of the annual registration of vehicles

and to the importation taxes incurred by DOH-CO for the procurement of hospital
equipment and various non-expendable supplies and equipment from the United
Nations Population Fund.

Auditing Services – P4,026,047.56

This represents the various expenses incurred by the Audit Teams assigned
at DOH-CO, Offices, CHD and hospitals.

Other Maintenance & Operating Expenses – P468,045,835.06

This pertains to cost of maintenance services for the air-conditioning units

and pest control services rendered by the private suppliers/contractors.

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17. Status of Funds – Allotment, Obligations and Balances

The DOH received a total allotment of P22,639,524,127.57, incurred

obligations of P17,263,800,764.90, thereby leaving a balance of allotment of
P5,375,723,362.67 broken down as follows.

Obligations Unexpended
Source of Funds Allotment
Incurred Balance
Regular Appropriations:
Current:
Personal Services P 5,413,451,871.82 P5,404,837,521.88 P 8,614,349.94
Maintenance and Other 5,752,307,168.
Operating Expenses 8,213,484,078.26 68 2,461,176,909.58
Capital Outlay 4,305,553,638.41 2,324,368,059.60 1,981,185,578.81
Sub-Total 17,932,489,588.49 13,481,512,750.16 4,450,976,838.33
Other Releases:
Personal Services 979,035,852.46 975,494,476.59 3,541,375.87
Maintenance and Other
440,580,174.42 327,507,734.90 113,072,439.52
Operating Expenses
Capital Outlay 760,231,500.00 2,796,675.00 757,434,825.00
Sub-Total 2,179,847,526.88 1,305,798,886.49 874,048,640.39
Continuing Appropriations:
From Regular Releases:
Maintenance and Other
Operating Expenses 1,182,768,680.74 1,166,098,347.56 16,670,333.18
Capital Outlay 1,214,629,256.99 1,199,950,844.12 14,678,412.87
From Other Releases:
Maintenance and Other
Operating Expenses 63,295,464.47 62,742,890.57 552,573.90
Capital Outlay 66,493,610.00 47,697,046.00 18,796,564.00
Sub-Total 2,527,187,012.20 2,476,489,128.25 50,697,883.95
TOTAL P22,639,524,127.57 P 17,263,800,764.90 P5,375,723,362.67

Breakdown of Obligations Incurred is given below:

Not Yet Due and

Paid Obligations Due and Demandable
Demandable
P 11,659,744,510.00 P 3,682,293,554.00 P 1,921,762,701.00

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