Project Simulation On Audit of Financial Statements: For Partial Requirement in The Course ACCT 514: Applied Auditing

Republic of the Philippines
BATANGAS STATE UNIVERSITY

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND
INTERNATIONAL HOSPITALITY MANAGEMENT
CITE Building, Pablo Borbon Main I, Rizal Avenue, Batangas City
Project Simulation on
Audit of Financial
Statements
For Partial Requirement in the Course

ACCT 514: Applied Auditing
Dao Ming Group

Gonzales, Jessa B.
Landig, Jessa May L.
Maralit, Ledayl C.
Maron, Ma. Keyceelyn Jean L.
Rosales, Carmela S.
EXECUTIVE SUMMARY
Banapra Development Cooperative is a primary multipurpose cooperative organized by

28 cottage industry producers in the provinces of Batangas with an initial share capital of forty
thousand pesos (Php 40, 000.00). As of today, Banapra Development Cooperative is serving to
more than 2,100 members and has total assets of Php 56 Million more or less.
Dao Ming Group accepted the audit engagement with the Banapra Cooperative after
conducting an evaluation of the auditability of the client’s financial statements. The auditors
obtained preliminary understanding of the cooperative’s business and performed background
investigation of the client. Such procedures include the assessment of the continuance of the
relationship with the client and the specific audit engagement. The auditors also ensured that both
parties understand the terms of the engagement.
The auditors audited the accompanying financial statements of Banapra Development

Cooperative, which comprise the statement of financial condition as at December 31, 2017, and
the statement of operations and the cash flow statement for the year then ended, and the summary
of significant accounting policies and other explanatory information.
Management is responsible for the preparation and fair presentation of these financial
statements and the maintenance of adequate accounting records and internal controls because its
condition would directly affect the reliability of the financial statements. The auditors’
responsibility, on the other hand, is to design the audit in order to obtain reasonable assurance that
the financial statements are free from material statements, whether caused by error or fraud.
The auditors audited the financial statements of Banapra Development Cooperative in the
manner of considerable judgement enhanced with transparency and accountability of the said
client. Audit documentation is prepared in connection with the audit engagement to provide a
clear understanding of the work performed which includes tha nature, timing, extent and the
results of the audit procedures performed. Such documentation also includes the audit evidence
obtained and its source as well as the conclusions reached after the completion of the audit. It also
provided supporting details which serves as a proof that the auditors performed the audit in
accordance with the generally accepted accounting standards and as a basis on the opinion
expressed on the financial information of the client.
Business Profile
Banapra Development Cooperative, herein referred to as the “Cooperative”, is a

cooperative registered with the CDA on March 20, 1985 pursuant to Republic Act 6938. It has
secured its New Certificate of Registration with the Cooperative Development authority on
January 28, 2010 pursuant to Republic act No. 9520, otherwise known as “The Philippine
Cooperative Code of 2008”. BDC is engaged in credit, consumer, and producer marketing. Its
registered address is Brgy. 9 P. Canlapan, Batangas City.
The cooperative is envisioned to be one of the leading cooperatives in Region IV-A while
adhering to transparency and good governance. Its mission focuses on fostering cooperativism
among its members by promoting products patronage and acquiring resources through thrift,
savings, increase of capital build up and extending services and credit for productive and
providential purposes to help uplift their economic and social well-being. It also aims to
encourage growth and development to the community by advancing cooperative’s support on
education, sports, health and environment. The cooperative offers various services such as credit
or loans, savings deposit, time deposit, consumer store and van for hire. The loans include
productive loan, provident loan, educational, appliance and furniture, cell phone, emergency and
salary loan and loan against deposit.
November 23, 2018
Mrs. Yolanda Briones

Banapra Development Cooperative
Batangas City
You have requested that we audit the balance sheet of Banapra Development Cooperative as of
December 31, 2017 and the related statements of income and cash flows for the year then ended.
We are pleased to confirm our acceptance and our understanding of this engagement by means of
this letter. Our audit will be made with the objective of expressing an opinion on the financial
statements.
We will conduct our audit in accordance with Philippine Standards on Auditing. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management
as well as evaluating the overall financial statement presentation. Because of the test nature and
other inherent limitations of an audit together with the inherent limitations of any accounting and
internal control system, there is an unavoidable risk that even some material misstatements may
remain undiscovered.
Our audit team is composed of a senior auditor and four members assigned to different audit task
from the preliminary assessment of internal control until the presentation of audit report. In
addition to our report on the financial statements, we expect to provide you with a separate letter
concerning any material weaknesses in accounting and internal control systems which may come
to our notice.
We remind you that the responsibility for the preparation of financial statements including
adequate disclosure is that of the management of the company. This includes the maintenance of
adequate accounting records and internal controls, the selection and application of accounting
policies, and the safeguarding of the assets of the company. As part of our audit process, we will
request a written confirmation from management concerning representation made to us in
connection with the audit.
We look forward to full cooperation with your staff and we trust that they will make available to
us whatever records and documentation for the completion of the audit in accordance with the
proposed timetable. We will also request the management to inform the auditor of facts that may
affect the financial statements, of which the management may become aware during the period
from the date of the auditor’s report to the date the financial statement are issued. Our fees, which
will be billed as work progresses, are based on the time required by the individuals assigned to
the engagement plus out-of-pocket expenses. Individual hourly rates vary according to the degree
of responsibility involved and the experience and skills required.
This letter will be effective for future years, unless it is terminated, amended or suspended.
Please sign and return this letter to indicate that it is in accordance with your understanding of the
arrangements for our audit of the financial statements.
Approved by: Accepted and agreed to:
____________________________ ____________________________
Jessa May L. Landig Yolanda Briones
Senior Auditor Manager
____________________________
Daniel John F. Falo, CPA, MBA
Engagement Partner
ASSIGNMENT OF THE ENGAGEMENT PARTNER
PSA 220 establishes requirements for the engagement partner that are designed to
facilitate a quality audit, including, among others, requirements for taking responsibility for the
overall quality on each audit engagement to which that engagement partner is assigned. Being
satisfied that appropriate procedures regarding the acceptance and continuance of client
relationships have been followed and determining that conclusions reached in this regard are
appropriate. Taking responsibility for (i) the direction, supervision and performance of the audit
engagement in compliance with professional standards and applicable legal and regulatory
requirements; and (ii) the auditor’s report being appropriate in the circumstances. Taking
responsibility for reviews being performed in accordance with the firm’s review policies and
procedures. Being convinced, through a review of the audit documentation and discussion with
the engagement team, that sufficient appropriate audit evidence has been obtained to support the
conclusions reached and for the auditor’s report to be issued.
On the other hand, PSA 600 explains that the group engagement partner is responsible for
the direction, supervision and performance of the group audit engagement in compliance with
professional standards and applicable legal and regulatory requirements, and whether the
auditor’s report that is issued is appropriate in the circumstances. PSA 600 also notes that,
although component auditors may perform work on the financial information of the components
for the group audit and as such are responsible for their overall findings, conclusions or opinions,
the group engagement partner or the group engagement partner's firm is responsible for the group
audit opinion.
The engagement partner shall be satisfied that those persons who are to perform the
engagement collectively have the appropriate competence and capabilities to perform the
engagement in accordance with relevant standards and applicable legal and regulatory
requirements; and enable an assurance report that is appropriate in the circumstances to be issued.
When the work of a practitioner's expert is to be used, the practitioner shall also evaluate whether
the practitioner's expert has the necessary competence, capabilities and objectivity for the
practitioner's purposes. In the case of a practitioner's external expert, the evaluation of objectivity
shall include inquiry regarding interests and relationships that may create a threat to that expert's
objectivity; throughout the engagement, the engagement partner shall remain alert, through
observation and making inquiries as necessary, for evidence of non-compliance with relevant
ethical requirements by members of the engagement team. If matters come to the engagement
partner’s attention through the firm’s system of quality control or otherwise that indicate that
members of the engagement team have not complied with relevant ethical requirements, the
engagement partner, in consultation with others in the firm, shall determine the appropriate
action. The practitioner shall accept or continue a direct engagement only when: The practitioner
has no reason to believe that relevant ethical requirements, including independence, will not be
satisfied.
Typically, one senior auditor is assigned to each audit engagement. With this, upon
obtaining its clients, the senior auditor of the Dao Ming Group assigned its audit members among
different tasks as reflected in their audit program. To facilitate prompt but excellent quality of
work, she is responsible to observe and supervise the members while conducting their audit tasks.
She is also in charge in communicating the results of the audit to their clients. The audit
members, on the other hand, is expected to perform their assignment with utmost value and to
consult their senior auditor for any conflict before proceeding in their work. In this way, the
group can ensure that they can meet the client’s expectations and can provide them with
satisfaction.
PRELIMINARY ASSESSMENT OF INTERNAL CONTROL
The auditors assessed the internal control of the client by answering an internal control
assessment questionnaires which leads to the computation of the control risk of the audit. They
also incorporate their judgment in determining the audit risk and inherent risk.
INTERNAL CONTROL
Control Environment 100 75 50 25 Weakness
1. The organization demonstrates a commitment to
 25
integrity and ethical values.
2. Management establishes, with broad oversight,
structures, reporting lines, and appropriate
 0
authorities and responsibilities in the pursuit of
objectives.
3. The organization demonstrates a commitment to
attract, develop, and retain competent individuals  25
in alignment with objectives.
4. The organization holds individuals accountable
for their internal control responsibilities in the  0
pursuit of objectives.
5. The management’s philosophy and operating
style sets the tone for high quality performance  50
of internal control.
Risk Assessment 100 75 50 25 Weakness
1. The organization specifies objectives with
sufficient clarity to enable the identification and  25
assessment of risks relating to objectives.
2. The organization identifies risks to the
achievement of its objectives across the entity
 25
and analyzes risks as a basis for determining how
the risks should be managed.
3. In identifying risks, management considers both
internal and external factors and their impact on  25
the achievement of objectives.
4. The organization considers the potential for fraud
in assessing risks to the achievement of  0
objectives.
5. The organization identifies and assesses changes
that could significantly impact the achievement  0
of objectives.
Information and Communication System 100 75 50 25 Weakness
1. The organization obtains or generates and uses
relevant, quality information to support the  25
functioning of internal control.
2. The quality of information is periodically
evaluated to determine its reliability and
 0
timeliness in attaining the objectives of the
organization.
3. The information system encompasses formal
procedures such that the management can  0
determine whether the control objectives are met,
documentation is in place and personnel know

the procedures.
4. The organization internally communicates
information, including objectives and
 25
responsibilities for internal control, necessary to
support the functioning of internal control.
5. The organization communicates with external
parties regarding matters affecting the  25
functioning of internal control.
Control Activities 100 75 50 25 Weakness
1. The organization selects and develops control
activities that contribute to the mitigation of risks
 25
to the achievement of objectives to acceptable
levels.
2. The organization selects and develops general
control activities over technology to support the  25
achievement of objectives.
3. The organization selects and deploys control
activities through policies that establish what is
 0
expected and procedures that put policies into
action.
4. Management perform periodic review of policies
 0
and procedures to ensure their significance.
5. Control activities are designed and implemented
that guarantees physical controls over assets and  50
ensures segregation of duties.
Monitoring 100 75 50 25 Weakness
1. The organization selects, develops, and performs
ongoing and/or separate evaluations to ascertain
 25
whether the components of internal control are
present and functioning.
2. The monitoring activities of the organization
provide feedback on the effective application of  0
controls incorporated in the process.
3. The organization communicates internal control
deficiencies in timely manner to those parties  25
responsible for taking corrective action.
4. The management vary the scope and frequency
of evaluation depending on the significance of
 25
risks being controlled and importance of controls
in minimizing them.
5. The evaluator understands the components being
evaluated and how they relate to the activities  25
supporting the achievement of objectives.
TOTAL 450
The following is the computation for the audit risk:
Control Risk = 450/2500 = 18%

Inherent Risk = 20%
Detection Risk = Audit Risk/(Control Risk * Inherent Risk) = 10%/(18% * 20%) = 2.77%
Audit Risk = 10%
DRAFT OF AUDIT PROGRAM
Audit program is a set of procedures that an auditor believes is necessary to perform to

obtain reasonable assurance that the financial statements are not affected by material
misstatements. The objective of this audit is to assist BANAPRA Development Cooperative in
reviewing their financial statement. The scope of work for this audit will consist of 30 days of
professional services. It will also consist of the components described below.
TEST OF CONTROLS
The following table lists some control procedures that a company might have in place for
cash receipts and cash disbursements, along with the test that the auditor might perform if the
control provided are operating.
Cash Receipt  Select a sample of entries in cash receipts journal and review
evidence that they were matched to specific sales invoice.
 Review of posting from cash receipts journal to the general
ledger.
 Examination of cash receipts for daily deposit.
 Tracing of cash receipts from listing to cash receipts journal
for proper classification.
Cash Disbursement  For a sample of recorded cash disbursements from the cash
disbursements journal, vouch to supporting documentation for
evidence of mathematical accuracy, correct classification,
proper approval, and proper date of entry.
 Determine the numerical sequence of checks issued during
the period and scan the sequence for missing numbers.
 Review bank reconciliations to ensure that they were prepared
on a timely basis.
In evaluating the results, the objective of the auditors is to assess the results of the audit
to determine whether the audit evidence obtained is sufficient and appropriate to support the
opinion to be expressed in the auditor’s report. In the audit of financial statements, the auditor’s
evaluation of audit results include evaluation of misstatements relating to accounting estimates.
We concluded that the amount of an accounting estimate included in the financial statements is
extreme. We treated the difference between the estimate and a reasonable estimate determined in
conformity with the applicable accounting principles as a misstatement.
In addition, we also evaluated the qualitative aspects of the company’s accounting

practices in order to determine whether the financial statements as a whole are free from material
misstatements. When evaluating the results of the audit, we assessed whether the accumulated
results of auditing procedures and other observations affect the assessment of the fraud risks
made throughout the audit and whether the audit procedures need to be modified to respond to
those risk. Lastly, we evaluated whether the financial statements are presented fairly, in all
material respects, in conformity with the applicable financial reporting framework.
FINAL AUDIT PROGRAM
To facilitate the conduct of audit and to produce sufficient evidential matter, the auditors
conformed to the following audit program
ACTIVITY AUDIT TIME (hours)

PROCEDURE BUDGET ACTUAL
Identifying the Business Client 5 4
 Obtain audit knowledge about the
client
I.  Size and complexity of the business
 Result of evaluation of the profile and
the basis for accepting the
engagement
Obtaining the Engagement Letter 10 8
 The objective of the audit
 Management’s responsibility for the
fair presentation of the financial
statements.
 The scope of the audit
II.
 Forms or any reports or other
communication that the auditor
expects to issue
 The unavoidable risk that material
misstatements may remain
undiscovered due to the limitations
of the audit
 Arrangements regarding the planning
and performance of the audit
 Billing arrangements and
composition of the team
 A request for management to
acknowledge receipt of the
engagement letter and to agree to the
terms outlined therein
Assigning of Engagement Letter 4 2.5
III.  Assignment of the different audit
task to the audit members
Preliminary evaluation of Internal 6 4
Control
 Assessment of the control
environment which includes
governance and managements
functions
IV.  Risk assessment
 Systems of information and
communication
 Control activities
 Overseeing the quality of internal
control over time
Audit Program formulation 5 3

 Draft of the audit program based on
the result of preliminary evaluation
V.
 Conduct test of controls
 Reassess the internal control and
formulate the final audit program
Evidence gathering and substantive 24 20
testing
 Copy of the prior year’s audit report
 The annual financial statements
 Vouchers, Cash Disbursements,
Cash Receipts
 Treasurer's book and/or ledger
 Copies of board, executive
commitee, and organiation minutes
VI. that would inlcude an adopted
budget, as well as amendments that
were approved during the year.
 Current by laws and standing rules
 Any other information requested by
the auditor/audit commitee
Checking of information requested by the 5 4
audit team:
 Amounts and other data relating to
recorded transactions and events
have been recorded appropriately

 Details on the order form, invoice,
goods received note and payment
advice matched and the consistency
of quantities, amounts, date and the
name of the supplier
 Transactions and events have been
recorded in the proper accounts
 All transactions and events that
should have been recorded have
been recorded
 Transactions and events have been
recorded in the correct accounting
period
 Transactions or events relating to the
acquisition of goods and services
represent the economical acquisition
 Financial information is
appropriately presented and
disclosures are clearly expressed.
VII. Completing the audit 20 18
 Identify contingencies and
commitments
 Subsequent events that may affect
the financial statements under audit
 Obtain the written management
representation
Providing auditors’ report 5 3
 Appropriate opinion of the auditor
for the results of the audit process
Opinion Section 3 2
 Identify the entity
 State the financial statements that
VIII. have been audited
 Refer to the summary of significant
accounting policies and explanatory
notes
 Specify the date and period covered
Distribution of final report 3 3
 Exit Conference
AUDIT EVIDENCE GATHERING PROCEDURES
The auditors of Dao Ming Group used a variety of procedures to gather evidence. Audit
evidence is proof of the fairness of financial information.It contains significant guidance
explaining what constitutes audit evidence. It deals with our responsibility to design and perform
audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable
conclusions on which to base our opinion. For certain accounts or management assertions, certain
procedures may be more efficient or effective than other procedures. The primary types of audit
procedures that we used include inspectiom, observation, recalculation and inquiry.
We applied inspection as one of our audit procedure which involves examination of

records or documents, whether internal or external, in paper form, electronic form, or other
media, or physical examination of an asset. Inspection of records and documents provides audit
evidence of varying degrees of reliability, depending on their nature and source and, in the case of
internal records and documents, on the effectiveness of the controls over their production.In
addition, we used observation in performing our audit wherein we looked at the process or
procedure being performed by the company. Observation provides audit evidence about the
performance of a process or procedure, but is limited to the point in time at which the observation
takes place, and by the fact that the act of being observed may affect how the process or
procedure is performed. We also check the mathematical accuracy of documents or records which
pertains to the recalculation process. Lastly, we inquired and obtain information from
knowledgeable persons, both financial and non-financial, within the entity or outside the entity.
Inquiry is used extensively throughout the audit in addition to other audit procedures.
AUDIT SAMPLING
Audit sampling is the selection and evaluation of less than 100 percent of the population
of audit relevance such that the auditor expects the items selected (the sample) to be
representative of the population and, thus, likely to provide a reasonable basis for conclusions
about the population. The sampling method used should yield an equal probability that each unit
in the sample could be selected. The intent behind doing so is to evaluate some aspect of the
information. Audit sampling is needed when population sizes are large, since examining the
entire population would be highly inefficient.
The audit sampling used for BANAPRA Development Cooperative was random
sampling method because of its large population of their transactions. Random sampling used a
random number generator to make selections. In this case the audit team used a calculator to
generate number and then check on the vouchers number . This approach is the most theoretically
correct, but can require more time to make selections. In designing an audit sample, the auditor
considered the purpose of the audit procedure and the characteristics of the population from
which the sample will be drawn. The auditor determined a sample size sufficient to reduce
sampling risk to an acceptably low level. The audit team selected items in the vouchers of
BANAPRA Development Cooperative for the sample in such a way that the auditor can
reasonably expect the sample to be representative of the relevant population and likely to provide
the auditor with a reasonable basis for conclusions about the population.
SUBSTANTIVE AUDIT PROGRAM
When auditing the financial statements, the auditors adhere to the following principal
objectives for the substantive test:
A. Cash
Assertion Audit Objectives Audit Procedures

Existence and Completeness All cash on the statement of  Surprise cash count
financial position exist and  Perform cash cut-off test
owned by the entity on the on cash receipts and
given date. disbursements.
Rights and Obligations The entity controls all cash on  Confirm balances of the
the statement of financial company’s accounts with
statement without restriction. bank or financial
institution.
Presentation and Disclosure Cash is properly presented and  Check whether cash is
disclosed in financial valued appropriately.
statements in accordance with
PFRS.
B. Receivables

Existence All receivables are owned by  Confirm receivables by
the entity with respect to the reviewing subsequent cash
amount reflected on statement receipts.
of financial position.
Valuation and Allocation Receivables are properly  Confirm receivables to
stated at their net realizable customers.
value and with corresponding  Analyze the adequacy of
allowances for doubtful allowance for doubtful
accounts and other similar accounts.
items
Presentation and Disclosure Receivables are properly  Investigate any unusual
presented and disclosed in the items in financial
financial statements. statements.
C. Inventories

Existence All ineventories on statement  Observe inventory counts
of financial position have  Perform test counts
really occurred and pertain to
the entity.
Completeness All inventories owned by the  Reconcile amounts held in
entity at the reporting date are inventory summary with
reflected on the statement of the balances in general
financial position. ledger
Valuation and Allocation Inventories are properly stated  Review whether valuation
at lower of cost and net is in accordance with
realizable value (LCNRV). LCNRV
Rights and Obligations The entity has legal right to all  Observe inventory counts
the inventories reported on the  Perform test counts
statement of financial position
Presentation and Disclosure Inventories are properly  Review whether valuation
classified and disclosed in the is in accordance with
financial statements. LCNRV
D. Investments
Audit Objectives Audit Procedures

Assertion
Existence and Occurrence All investments and income  Inspect securities held by
reported on statement of client.
financial position exist and has  Evaluate and test the
accrued to the entity. valuation method applied.
Completeness All investments and its  Review the minutes of
accrued income are included meeting.
on the statement of financial
position.
Valuation and Allocation, Investments and investment  Impairment test
Accuracy income are recorded in proper
amounts on statement of
financial position and
comprehensive income,
respectively.
Presentation and Disclosure Investments and its investment  Review financial
income are properly classified statement of presentation
and disclosed in the financial and disclosure of
statements. investments.
E. Property, Plant and Equipment

Existence All PPE on the statement of  Reconcile amounts in
financial position exist. general ledger with
subledger.
Valuation and Allocation PPE is recorded in accordance  Examine PPE and
with PAS 16 Property, Plant additions physically.
and Equipment and PAS 36

Impairment of Assets.
Presentation and Disclosure PPE and related accounts are  Evaluate financial
properly classified and statements presentation
disclosed in the financial and disclosures for PPE
statements. and related revenue and
expense accounts.
F. Liabilities

Existence All liabilities on the statement  Confirm liabilities to
of financial position are debtors.
authentic debts due to  Review and inspect
creditors of the entity. supporting documents
related to liabilities.
Completeness All liabilities representing the  Search unrecorded
entity’s obligations are liabilities.
included in the statement of
financial position.
Valuation and Allocation Liabilities are reflected on the  Reconcile amounts in
statement of financial position subsidiary ledger with
in their appropriare amounts. balances in the general
ledger.
Rights and Obligations All liabilities on the statement  Confirm liabilities to
of financial position are debtors.
obligations of the entity as of
the reporting date.
Presentation and Disclosure Liabilities and related  Evaluate whether the
accounts are properly entity comply with
classified and disclosed in the appropriate presentation
financial statements. and adequate disclosure.
G. Shareholder’s Equity

Existence All the equity and interest  Verify share transactions
reported in the statement of with the minutes of
financial position exist. shareholders’ meetings.
 Reconcile the number of
outstanding shares with
the recorded amount in the
general ledger.
Completeness All equity are included and  Verify equity
recorded in the statement of reconciliation schedule.
financial position.
Valuation and Allocation All equity are appropriately  Review whether proper
stated in the statement of accounting valuation
financial position. methods are applied in
share-based transactions.
 Verify the balances of
retained earnings.
Presentation and Disclosure Equity accounts are properly  Evaluate financial

classified and disclosed in the statement presentations
financial statements. and disclosures for equity
accounts.
H. Income Statement Accounts

Occurrence All revenue have occurred and  Verify the contents of
all costs and expenses are income and expenses
charges against the entity  Evaluate the procedures
during the period as reported used by the entity in
in the income statement. reporting its revenues.
Completeness All revenues and all expenses  Trace selected income to
related to such revenues are sales invoices.
included in the income  Trace selected expenses to
statement. appropriate invoices and
supporting documents.
Classification All transactions are reported in  Verify the contents of
appropriate accounts. income and expenses.
Accuracy Revenue, costs and expenses  Test the computation of
are appropriately valued in the income and expense
income statement. accounts.
Presentation and Disclosure Revenue, costs and expenses  Evaluate financial
and properly classified and statement presentations
disclosed in the financial and disclosures for income
statements. and expense accounts.
AUDIT WORKING PAPERS
Working papers are the evidence of work done by the auditor. The preparation is
necessary in order to provide evidence that audit was properly performed according to standards.
Working papers assist in the planning and performance of the audit. These records are the audit
evidence from the audit work performed to support the auditor’s opinion.
Audit Working Paper

Balance Sheet
Cash on Hand CIB China CIB CIB CIB

Bank- Current BRBCI- BRBCI- BRBCI-
SD CA TD
JAN 613,168.17 1,325,643.77 329,851.10 1,000.00 522,550.92
FEB 458,649.84 1,328,143.77 402,600.73 1,000.00 523,613.98
MAR 568,683.40 1,330,755.14 448,618.22 1,000.00 524,137.60
APR 405,740.40 1,258,135.14 393,444.22 1,000.00 524,679.21
MAY 333,793.32 1,168,148.14 323,709.99 1,000.00 525,203.89
JUN 404,460.41 1,153,682.78 394,645.08 1,000.00 525,729.09
JUL 477,932.99 1,153,682.78 334,508.99 1,000.00 526,272.35
AUG 418,954.35 1,155,682.78 334,565.78 1,000.00 526,798.62
SEP 612,188.31 1,156,978.00 312,805.94 1,000.00 527,325.42
OCT 896,227.66 1,170,978.00 62,841.93 1,000.00 527,870.32
NOV 857,389.23 1,170,978.00 408,838.94 1,000.00 528,398.19
DEC 82,326.11 1,170,146.90 128,821.93 1,000.00 528,961.81
CIB Security CIB Bank of CIB Bank of CIB Luzon CIB Luzon
Bank Commerce- SA Commerce- Dev’t Bank- Dev’t Bank-
TD SD TD
JAN (68,164.88) 891,399.42 509,297.32 553,244.10 204,486.66
FEB 1,721,688.09 931,470.48 509,478.40 554,514.21 204,486.66
MAR 3,216,344.01 951,550.74 509,670.87 555,182.71 204,486.66
APR 2,538,251.61 951,630.04 509,869.08 555,830.43 204,486.66
MAY 4,257,817.54 951,711.98 510,050.37 556,500.51 204,486.66
JUN 2,569,687.16 951,791.29 510,074.46 557,149.76 204,486.66
JUL 2,653,271.08 981,873.91 510,074.46 557,821.44 204,486.66
AUG 3,353,298.96 981,958.46 510,074.46 558,493.92 204,486.66
SEP 3,701,535.40 1,016,958.46 510,074.46 558,493.92 204,486.66
OCT 3,862,847.75 1,067,042.52 510,231.72 559,819.58 207,803.88
NOV 2,853,547.75 1,067,219.30 511,162.16 560,472.70 207,803.88
DEC 1,208,356.95 1,067,311.20 511,162.16 561,148.38 207,803.88
CIB CIB Maybank- CIB China CIB CIB CARD

Maybank TD Bank- Metro SME Bank
Savings South( TD
JAN 430,698.30 0.00 0.00 1,032,941.63 206,531.37
FEB 442,398.63 0.00 0.00 1,032,941.63 206,531.37
MAR 471,869.51 0.00 0.00 1,032,941.63 206,531.37
APR 483,805.86 0.00 0.00 1,032,941.63 206,531.37
MAY 471,707.11 500,000.00 0.00 1,032,941.63 207,334.55
JUN 475,440.21 500,000.00 0.00 1,041,635.76 207,334.55
JUL 483,684.55 500,000.00 0.00 1,043,163.49 208,148.92
AUG 485,931.59 500,000.00 0.00 1,044,597.84 208,148.92
SEP 505,347.34 500,000.00 0.00 1,046,034.16 208,148.92
OCT 505,873.15 502,530.97 0.00 1,047,520.40 208,148.92
NOV 506,187.49 502,530.97 500,330.00 1,047,520.40 208,148.92
DEC 506,514.23 502,530.97 500,388.89 1,050,595.38 209,189.66
CIB Eastwest CIB CIB China Petty Cash Merch. Inv.

Bank- Metro Bank Bank Bauan- Fund (OG/
TD Bauan- SA TD Consumer)
JAN 501,045.17 100.00 501,066.15 10,000.00 625,768.00
FEB 501,045.17 100.00 501,066.15 10,000.00 618,645.00
MAR 501,045.17 100.00 501,818.13 10,000.00 599,031.80
APR 501,045.17 1,010,184.99 502,069.04 10,000.00 591,844.00
MAY 501,045.17 1,010,184.99 502,069.04 10,000.00 707,645.68
JUN 503,354.39 1,010,184.99 502,069.04 10,000.00 742,371.00
JUL 503,354.39 1,010,184.99 502,839.27 10,000.00 860,259.61
AUG 503,745.89 1,010,184.99 503,099.07 10,000.00 860,259.61
SEP 503,745.89 1,010,184.99 503,350.62 10,000.00 860,259.61
OCT 504,529.79 1,010,184.99 503,610.68 10,000.00 860,259.61
NOV 504,529.79 1,010,184.99 503,862.49 10,000.00 860,259.61
DEC 505,511.28 1,011,591.48 504,122.82 10,000.00 860,259.61
Prepaid Due from Due from Due from E-Load &

Expenses Consumer Bauan Dalig- MPC Auto Load
JAN 33,194.72 997,100.00 1,406,797.80 220,331.15 3,500.00
FEB 28,453.96 997,100.00 1,413,464.80 190,331.15 3,500.00
MAR 306,173.33 997,100.00 1,463,464.80 159,331.15 3,500.00
APR 320,678.55 1,422,180.00 1,470,631.80 228,951.15 3,500.00
MAY 349,541.51 1,422,180.00 1,483,615.80 343,938.15 3,500.00
JUN 303,804.47 1,422,180.00 1,490,096.67 286,714.15 3,500.00
JUL 258,067.43 1,474,704.75 1,499,261.67 192,214.15 3,500.00
AUG 266,443.15 1,474,704.75 767,040.13 147,254.15 3,500.00
SEP 223,852.22 1,474,704.75 771,646.26 147,981.15 3,500.00
OCT 212,025.54 1,474,704.75 771,646.26 147,981.15 3,500.00
NOV 126,788.86 1,474,704.75 771,646.26 147,981.15 3,500.00
DEC 198,772.18 1,552,704.75 771,646.26 239,591.15 3,500.00
Loans Probable Accounts Accounts Unused

Receivable Losses on Receivable Receivable- Office
Loans Organo Supplies-
Gold Credit
JAN 33,386,569.76 (444,315.60) 41,127.80 23,715.00 277,986.75
FEB 32,924,254.68 (457,628.10) 41,127.80 23,527.00 271,986.75
MAR 32,557,318.38 (476,966.27) 41,127.80 22,232.00 263,986.75
APR 33,322,199.88 (493,210.82) 39,477.80 23,146.00 255,986.75
MAY 32,879,081.94 (493,210.82) 38,927.80 17,480.00 247,986.75
JUN 34,390,872.62 (515,767.22) 59,894.80 22,276.00 345,519.75
JUL 34,440,739.69 (515,767.22) 59,294.80 22,716.00 543,254.75
AUG 34,328,740.28 (515,767.22) 37,628.14 22,716.00 738,404.75
SEP 34,251,886.27 (532,750.27) 37,627.80 15,689.00 724,654.75
OCT 33,883,961.82 (532,750.27) 39,627.80 17,754.00 716,654.75
NOV 34,733,562.32 (552,387.32) 37,627.80 16,974.00 706,499.75
DEC 38,516,777.57 (552,387.32) 35,627.80 16,774.00 686,889.75
Unused Miscellaneous Computer. Computer. Investment-

Supplies- Asset Cost Cost-Amort. PFWC
Organo Gold
JAN 68,754.65 0.00 237,532.00 (59,382.90) 2,078.89
FEB 67,692.26 0.00 237,532.00 (65,981.10) 2,078.89
MAR 66,218.85 0.00 237,532.00 (72,579.21) 2,078.89
APR 64,961.06 0.00 237,532.00 (79,177.32) 2,078.89
MAY 65,818.72 0.00 237,532.00 (85,775.43) 2,078.89
JUN 64,793.87 0.00 237,532.00 (92,373.54) 2,078.89
JUL 64,815.68 0.00 237,532.00 (98,971.65) 2,078.89
AUG 63,332.08 0.00 237,532.00 (98,971.65) 2,078.89
SEP 63,332.08 0.00 237,532.00 (105,569.76) 2,078.89

OCT 64,309.17 0.00 237,532.00 (112,167.87) 2,078.89
NOV 64,466.65 0.00 237,532.00 (118,765.98) 2,078.89
DEC 64,386.24 250,000.00 237,532.00 (125,364.09) 2,078.89
Investment- Investment- Investment- Investment- Credit

CCRB CISP Metro South Eternal Surety Fund
Gardens
JAN 591,093.37 44,855.23 74,825.95 472,500.00 0.00
FEB 591,093.37 44,855.23 74,825.95 472,500.00 0.00
MAR 591,093.37 44,855.23 74,825.95 472,500.00 0.00
APR 591,093.37 44,855.23 74,825.95 472,500.00 0.00
MAY 591,093.37 44,855.23 74,825.95 472,500.00 0.00
JUN 591,093.37 44,855.23 74,825.95 472,500.00 0.00
JUL 591,093.37 44,855.23 74,825.95 472,500.00 0.00
AUG 591,093.37 44,855.23 74,825.95 472,500.00 0.00
SEP 591,093.37 44,855.23 74,825.95 472,500.00 0.00
OCT 591,093.37 44,855.23 74,825.95 472,500.00 100,000.00
NOV 591,093.37 44,855.23 74,825.95 472,500.00 100,000.00
DEC 591,093.37 44,855.23 74,825.95 472,500.00 200,000.00
Batangas Land Building A/D- Building

Federation of Bulding Improveme
MPC nts
JAN 0.00 3,000,000.00 4,970,771.60 (620,000.00) 252,263.00
FEB 0.00 3,000,000.00 4,970,771.60 (640,000.00) 252,263.00
MAR 0.00 3,000,000.00 4,970,771.60 (660,000.00) 252,263.00
APR 0.00 3,000,000.00 4,970,771.60 (680,000.00) 252,263.00
MAY 0.00 3,000,000.00 4,970,771.60 (700,000.00) 252,263.00
JUN 0.00 3,000,000.00 4,976,471.60 (720,000.00) 252,263.00
JUL 0.00 3,000,000.00 5,014,824.60 (740,000.000 252,263.00
AUG 0.00 3,000,000.00 6,484,449.20 (760,000.000 252,263.00
SEP 0.00 3,000,000.00 6,484,449.20 (780,000.00) 252,263.00
OCT 0.00 3,000,000.00 6,484,449.20 (800,000.00) 252,263.00
NOV 25,000.00 3,000,000.00 7,272,685.43 (820,000.00) 252,263.00
DEC 25,000.00 3,000,000.00 7,272,685.43 (840,000.00) 252,263.00
A/D- Building Real & other Office A/D( Office Equipment-

Improvement Properties Equipment Equipment Organo
Acquired Gold
JAN (252,263.00) 383,261.67 596,121.00 (410,830.03) 37,070.00
FEB (252,263.00) 383,261.67 596,121.00 (417,479.99) 37,070.00
MAR (252,263.00) 383,261.67 596,121.00 (424,019.83) 37,070.00
APR (252,263.00) 383,261.67 596,121.00 (430,559.67) 37,070.00
MAY (252,263.00) 383,261.67 596,121.00 (437,098.51) 37,070.00
JUN (252,263.00) 383,261.67 596,121.00 (442,940.85) 37,070.00
JUL (252,263.00) 383,261.67 596,121.00 (448,783.19) 37,070.00
AUG (252,263.00) 383,261.67 596,121.00 (448,783.19) 37,070.00
SEP (252,263.00) 383,261.67 596,121.00 (454,625.53) 37,070.00
OCT (252,263.00) 383,261.67 596,121.00 (454,625.53) 37,070.00
NOV (252,263.00) 383,261.67 596,121.00 (460,467.87) 37,070.00
DEC (252,263.00) 383,261.67 596,121.00 (466,310.21) 37,070.00
A/DEquipment Furniture and A/DFurniture Transpo. A/DTranspo

Organo Gold Fixtures and Fixtures Equipment . Equipment
JAN (11,894.33) 247,436.50 (175,897.64) 2,351,606.00 (798,145.92)
FEB (11,894.33) 247,436.50 (178,890.29) 2,356,606.00 (813,232.58)
MAR (11,894.33) 247,436.50 (181,880.96) 2,356,606.00 (828,319.24)
APR (11,894.33) 247,436.50 (184,556.94) 3,492,806.00 (843,405.90)
MAY (11,894.33) 247,436.50 (187,232.92) 3,492,806.00 (864,832.56)

JUN (11,894.33) 247,436.50 (189,908.90) 3,492,806.00 (886,259.22)
JUL (11,894.33) 254,436.50 (192,584.88) 3,492,806.00 (907,685.88)
AUG (11,894.33) 257,426.50 (195,323.92) 3,492,806.00 (907,685.88)
SEP (11,894.33) 257,426.50 (198,832.40) 3,492,806.00 (929,112.54)
OCT (11,894.33) 257,426.50 (199,601.84) 3,492,806.00 (929,112.54)
NOV (11,894.33) 257,426.50 (203,109.32) 3,492,806.00 (950,539.20)
DEC (11,894.33) 257,426.50 (205,678.36) 3,492,806.00 (971,965.86)
Other Savings Building Loan Loan

Investment- Deposit Share Payable- Payable-
Deposit MBTC OCVAS
JAN 5,750.00 6,293,699.25 44,000.00 0.00 700,000.00
FEB 5,750.00 6,246,173.24 44,000.00 0.00 500,000.00
MAR 5,750.00 6,701,401.66 44,000.00 0.00 500,000.00
APR 5,750.00 7,145,637.61 44,000.00 1,000,000.00 500,000.00
MAY 5,750.00 7,171,122.74 44,000.00 1,000,000.00 500,000.00
JUN 5,750.00 7,267,860.05 44,000.00 950,000.00 500,000.00
JUL 26,250.00 7,277,979.42 44,000.00 900,000.00 378,688.10
AUG 26,250.00 7,702,701.23 44,000.00 850,000.00 378,688.10
SEP 26,250.00 7,504,139.63 44,000.00 800,000.00 378,688.10
OCT 26,250.00 7,299,920.93 44,000.00 750,000.00 378,688.10
NOV 26,250.00 7,304,243.43 44,000.00 700,000.00 378,688.10
DEC 26,250.00 9,877,334.20 44,000.00 650,000.00 254,949.97
Accounts Accounts Time Deposits BPF Withholding

Payable Payable- Tax Payable
Organo Gold
JAN 15,720.00 12,391.24 16,612,247.20 574,969.08 5,390.53
FEB 15,720.00 11,506.24 17,309,838.54 589,734.08 7,551.55
MAR 15,720.00 16,861.24 18,360,860.82 608,094.08 7,010.35
APR 15,720.00 17,151.24 18,875,393.05 623,792.08 5,386.93
MAY 15,720.00 3,626.24 20,402,667.10 636,732.08 5,015.73
JUN 15,720.00 2,986.24 19,586,033.60 655,796.08 4,804.53
JUL 15,720.00 926.24 20,029,493.63 671,101.08 4,513.33
AUG 15,720.00 926.24 20,244,692.05 673,734.08 4,137.13
SEP 15,720.00 5,996.24 20,894,631.31 690,957.08 3,765.93
OCT 15,720.00 5,476.24 20,927,575.24 704,312.08 3,559.73
NOV 15,720.00 (873.76) 21,460,292.63 601,600.38 5,065.53
DEC 15,720.00 900.00 20,547,600.87 614,318.38 4,774.33
SSS SSS/Pag-Ibig Phlhealth Pag(Ibig CETF Due

Payable Loan Payable Payable Payable to
Apex/Union
JAN 0.00 9,135.46 0.00 0.00 457,630.09
FEB 0.00 8,651.30 0.00 0.00 446,816.09
MAR 0.00 13,893.18 0.00 0.00 440,316.09
APR 4,680.60 13,551.61 550.00 550.00 428,546.57
MAY 380.95 11,506.88 (87.50) (100.00) 421,446.57
JUN 2,293.15 13,739.75 150.00 150.00 405,860.50
JUL 4,959.30 16,377.02 1,400.00 1,200.00 370,815.13
AUG 3,759.45 16,956.35 1,150.00 950.00 370,815.13
SEP 3,759.45 16,956.35 1,150.00 950.00 287,864.13
OCT 3,959.30 17,478.20 1,200.00 1,000.00 279,904.13
NOV 3,959.30 16,450.91 1,200.00 1,000.00 279,904.13
DEC 3,959.30 15,712.59 1,200.00 1,000.00 279,904.13
Insurance Insurance Insurance Accr.E. Accr.E.

Payable- Payable- Payable- Leave Attorney’s
CISP Prudential MAFRE Credits & Fee
13th mo
JAN 127,338.04 15,060.00 2,917.00 20,000.00 21,500.00
FEB 135,050.04 15,060.00 2,917.00 40,000.00 21,500.00
MAR 108,666.04 15,060.00 2,917.00 60,000.00 21,500.00
APR 119,561.04 15,060.00 2,917.00 80,000.00 21,500.00
MAY 105,541.04 15,060.00 2,917.00 100,000.00 21,500.00
JUN 127,912.04 15,060.00 2,917.00 120,000.00 21,500.00
JUL 109,657.04 15,060.00 2,917.00 127,650.00 21,500.00
AUG 113,292.04 15,060.00 2,917.00 142,424.00 21,500.00
SEP 135,381.78 15,060.00 2,917.00 158,508.00 21,500.00
OCT 121,888.19 15,060.00 2,917.00 178,508.00 21,500.00
NOV 133,308.70 15,060.00 2,917.00 61,117.00 21,500.00
DEC 177,777.03 15,060.00 2,917.00 5,630.00 21,500.00
Retirement Share General Optional Community

Fund Payable Capital Reserve Fund Fund Dev’t Fund
JAN 772,358.74 23,360,645.35 4,011,703.26 2,077,145.07 123,818.02
FEB 782,358.74 23,575,549.22 4,011,703.26 2,077,145.07 121,818.02
MAR 792,358.74 24,021,639.35 4,011,703.26 2,077,145.07 115,818.02
APR 802,358.74 24,013,909.61 4,011,703.26 2,077,145.07 106,755.77
MAY 802,358.74 24,144,635.91 4,011,703.26 2,077,145.07 99,338.48
JUN 812,358.74 24,583,817.28 4,017,392.01 2,077,145.07 97,338.48
JUL 822,358.74 24,686,820.41 4,017,392.01 2,077,145.07 96,138.48
AUG 822,358.74 24,004,720.20 4,017,392.01 2,077,145.07 90,138.48
SEP 832,358.74 24,013,356.88 4,017,392.01 2,077,145.07 90,138.48
OCT 832,358.74 24,110,418.14 4,017,392.01 2,077,145.07 87,138.48
NOV 824,384.74 24,270,472.12 4,017,392.01 2,077,145.07 72,638.48
DEC 834,384.74 24,328,479.65 4,017,392.01 2,077,145.07 52,039.88
Optional Fund Donation and Coop. Educ.

Subsidy Grants & Trng. Fund
JAN (872,263.00) 77,305.00 104,495.84
FEB (892,263.00) 77,305.00 75,444.68
MAR (912,263.00) 77,305.00 64,092.68
APR (932,263.00) 77,305.00 43,592.82
MAY (952,263.00) 77,305.00 43,592.82
JUN (972,263.00) 77,305.00 38,459.32
JUL (992,263.00) 77,305.00 33,831.58
AUG (1,012,263.00) 77,305.00 33,831.58
SEP (1,032,263.00) 77,305.00 32,091.58
OCT (1,052,263.00) 77,305.00 30,971.58
NOV (1,072,263.00) 77,305.00 1,787.65
DEC (1,092,263.00) 77,305.00 6,349.25
AUDIT WORKING PAPER

INCOME STATEMENT
Interest Service Fines, Salaries and Incentives

Income from Fees penalties, Wages and
Loans Surcharge Allowances
JAN 390,512.00 72,835.00 77,677.39 112,391.00 33,000.00
FEB 713,058.00 132,151.00 136,037.07 232,367.60 71,000.00
MAR 1,170,679.00 219,168.00 218,487.91 352,717.20 104,800.00
APR 1,573,693.00 291,487.00 304,608.03 478,348.30 144,300.00
MAY 1,852,008.00 345,370.00 371,631.89 593,172.80 183,260.00
JUN 2,398,317.00 450,175.00 584,402.97 702,055.80 223,180.00
JUL 2,771,098.50 520,703.00 655,283.40 813,317.30 258,160.00
AUG 3,106,711.66 584,220.40 728,027.12 916,610.80 290,100.00
SEP 3,488,002.66 666,734.00 946,976.89 1,025,911.80 334,300.00
OCT 3,816,542.66 727,521.00 1,006,898.45 1,137,081.80 372,260.00
NOV 4,253,969.08 820,997.68 1,082,072.41 1,250,072.80 409,730.00
DEC 4,549,034.10 982,385.38 1,155,671.43 1,359,749.30 446,510.00
Employees’ Members' Supplies Officers, SSS,

Benefits Benefit Expense Honorarium Philhealth &
Expense and Pag Ibig
Allowances Shares
JAN 74,477.50 3,000.00 7,950.00 21,100.00 11,353.30
FEB 111,870.82 3,000.00 16,357.72 47,550.00 22,706.60
MAR 162,242.49 3,000.00 26,440.72 68,800.00 34,059.90
APR 206,854.49 6,000.00 36,109.47 93,750.00 49,267.80
MAY 246,941.99 9,000.00 46,300.47 111,450.00 63,140.70
JUN 296,309.99 9,000.00 55,757.47 131,150.00 77,013.60
JUL 336,511.99 9,000.00 67,277.47 146,850.00 94,907.95
AUG 393,827.24 9,000.00 70,839.22 183,550.00 106,850.65
SEP 435,498.84 9,000.00 78,995.22 207,650.00 118,793.35
OCT 481,898.39 12,000.00 89,896.22 230,550.00 130,736.05
NOV 508,168.34 12,000.00 99,361.22 249,550.00 142,678.75
DEC 516,251.34 12,000.00 109,531.22 295,583.00 154,621.45
Int. Expense Int. Expense Rent Power, Light Travel and

on Deposits - Borrowings Expense & Water Transpo.
JAN 31,006.26 12,527.55 5,000.00 13,064.09 16,568.00
FEB 50,288.04 25,055.10 5,000.00 28,617.60 36,919.00
MAR 73,711.79 37,582.61 8,000.00 41,208.15 39,616.00
APR 104,202.32 40,082.61 8,000.00 59,085.13 66,079.75
MAY 137,145.67 40,082.61 8,000.00 78,916.97 90,286.25
JUN 239,466.41 40,082.61 14,000.00 98,889.67 114,873.25
JUL 294,994.04 55,120.11 18,000.00 114,277.95 135,992.25
AUG 385,820.12 57,522.61 18,000.00 129,845.18 158,495.45
SEP 410,749.88 59,891.64 18,000.00 147,359.41 186,055.51
OCT 458,626.33 61,958.31 18,000.00 163,359.36 208,869.41
NOV 535,517.97 63,960.39 18,000.00 182,499.79 230,089.41
DEC 572,562.55 75,177.63 30,800.00 203,167.46 254,593.41
Gas, Oil and Misc. Insurance Taxes & Meetings and

Lubricants Expense Expense Licenses Conferences
JAN 6,671.78 7,547.00 2,713.21 0.00 1,359.70
FEB 18,470.49 12,737.00 5,426.42 11,730.00 1,751.95
MAR 30,520.27 17,497.00 8,139.63 12,610.00 2,630.30
APR 39,261.04 25,614.11 10,852.87 13,490.00 3,852.75
MAY 48,712.36 29,233.11 15,486.45 14,370.00 4,966.70
JUN 63,334.03 32,373.11 20,120.03 17,146.00 5,818.95
JUL 70,398.86 33,183.11 24,753.61 18,026.00 7,272.40
AUG 78,557.76 36,131.41 30,944.59 18,906.00 12,655.65
SEP 95,484.12 38,914.41 37,135.57 21,386.00 14,632.40
OCT 108,208.33 42,352.41 45,406.55 22,266.00 17,358.90
NOV 116,716.67 43,812.41 51,597.53 23,146.00 17,860.65
DEC 134,670.15 60,938.41 57,788.51 24,026.00 19,386.40
General Communicati Professional General Repairs &

Assembly on Expense Fees Services Maintenance
Expense Expenses
JAN 0.00 10,204.30 2,500.00 9,290.32 5,824.00
FEB 2,450.00 17,801.26 27,222.22 18,038.71 6,514.00
MAR 45,933.23 27,597.88 29,722.22 29,277.28 17,183.92
APR 86,652.19 35,632.55 32,222.22 38,567.60 19,583.38
MAY 86,652.19 43,268.13 34,722.22 46,967.60 24,560.84
JUN 129,204.19 50,919.87 37,222.22 57,032.12 26,592.30
JUL 168,456.19 59,241.01 39,722.22 66,632.12 31,782.35
AUG 168,556.19 66,947.83 42,222.22 75,050.40 44,323.05
SEP 217,496.19 75,067.53 44,722.22 84,176.63 49,867.75
OCT 217,496.19 83,838.69 47,222.22 94,343.63 55,523.45
NOV 290,906.19 90,968.22 49,722.22 103,246.86 60,279.15
DEC 315,376.19 99,339.17 52,222.22 112,446.86 67,357.15
Representation Depreciation Amortization- Provision for Collection

Expenses Expenses Computerizat Probable Expense
ion Losses on
Loans
JAN 15,403.00 23,819.15 6,598.11 16,518.55 19,061.65
FEB 24,903.00 47,637.31 13,196.22 29,831.05 58,476.71
MAR 32,903.00 71,344.41 19,794.33 49,169.22 64,678.81
APR 54,128.00 94,877.45 26,392.44 65,413.77 94,299.34
MAY 72,603.00 124,749.49 32,990.55 65,413.77 105,996.70
JUN 90,130.70 153,925.03 39,588.66 87,970.17 119,986.06
JUL 106,746.20 183,100.57 46,186.77 87,970.17 149,892.12
AUG 122,686.20 185,839.61 46,186.77 87,970.17 162,460.36
SEP 138,981.20 215,847.65 52,784.88 104,953.22 172,311.86
OCT 159,787.65 215,847.65 59,382.99 104,953.22 181,404.82
NOV 177,362.65 245,854.69 65,981.10 124,590.27 197,042.21
DEC 194,850.65 275,692.73 72,579.21 124,590.27 208,211.81
Retirement Litigation Income/Int. Notarial and Membership

Benefit Expenses from Deposits Transfer Fees Fees
Expenses
JAN 10,000.00 4,094.72 1,347.37 12,250.00 1,750.00
FEB 20,000.00 8,189.44 79,313.33 25,150.00 3,000.00
MAR 30,000.00 12,284.16 141,792.87 39,100.00 6,150.00
APR 40,000.00 16,378.88 146,111.34 51,850.00 7,400.00
MAY 40,000.00 16,378.88 148,690.53 62,000.00 10,150.00
JUN 50,000.00 20,473.60 163,435.53 77,600.00 12,150.00
JUL 60,000.00 24,568.32 168,153.67 89,250.00 14,550.00
AUG 60,000.00 28,663.02 171,826.45 97,500.00 15,550.00
SEP 70,000.00 28,663.02 175,437.09 111,150.00 16,550.00
OCT 70,000.00 28,663.02 186,489.16 121,850.00 18,550.00
NOV 80,000.00 28,663.02 189,428.70 135,100.00 23,550.00
DEC 90,000.00 28,663.02 222,176.48 145,600.00 24,050.00
Miscellaneous Miscellaneou Cancellation

Income - s Income - Fees
Rentals Others
JAN 18,200.00 20,480.00 0.00
FEB 55,300.00 20,480.00 0.00
MAR 74,100.00 22,080.00 200.00
APR 102,000.00 22,680.00 1,000.00
MAY 135,500.00 32,880.00 1,400.00
JUN 174,300.00 32,880.00 1,800.00
JUL 185,800.00 33,865.00 2,800.00
AUG 198,700.00 34,117.00 3,000.00
SEP 262,900.00 34,854.62 3,800.00
OCT 291,300.00 34,854.62 4,000.00
NOV 317,500.00 154,384.32 4,200.00
DEC 346,400.00 156,364.32 4,400.00
SUBSTANTIVE PROCEDURES
Substantive procedures are performed to detect material misstatements at the relevant

assertion level, and include tests of details of classes of transactions, account balances, and
disclosures and substantive analytical procedures. The audit team planned and performed
substantive procedures to be responsive to the related assessment of the risk of material
misstatement. Regardless of the assessed risk of material misstatement, the auditor designed and
performed substantive procedures for all relevant assertions related to each material class of
transactions, account balance, and disclosure. This reflects the fact that the auditor's assessment
of risk is judgmental and may not be sufficiently precise to identify all risks of material
misstatement. Further, there are inherent limitations to internal control, including management
override, and even effective internal controls generally reduce, but do not eliminate, the risk of
material misstatement.
Permanent/Nominal Substantive Testing Results of Substantive

Account Testing
Cash The auditors conducted a surprise cash There is no material

account and cash cut-off test on cash receipts misstatements on the
and disbursements. Confirming the balances cash account.
of the company’s accounts with bank or
financial institution was also done.
Accounts Receivable Confirming receivables by reviewing The balances per book

subsequent cash receipts was done as well as conforms with the
the examination of the adequacy of balances per audit thus,
allowance for doubtful accounts. The there's no material
auditors investigated any unusual items in
mistatement that occurs
financial statements.
on the receivsble
account.
Inventories Theauditors observed the inventory count There is no material

and performed test counts. Reconciliation of misstatements in the
amounts held in inventory summary with the record and actual
balances in general ledger was also inventory count.
conducted.
Investments The auditors inspected the securities held by No material

the client and performed tests to evaluatethe misstatement has been
valuation method applied. The minutes of found on the investment
the meetings relevant to the account and the account.
presentation and disclosure of investments
were also reviewed.
Property, Plant and Reconciliation of the amounts in general As a result of our audit,
Equipment ledger with subledger was made. The there is no material
auditors examined PPE and additions misstatement on this
physically. Evaluate financial statements account. Also valuation
presentation and disclosures for PPE and
and depreciation
related revenue and expense accounts.
method was properly
applied.
Liabilities Confirmation of the existence was made as The balances per book
well as the process of reviewing and conforms with the
inspecting the supporting documents related balances per audit thus,
to liabilities. The auditors reconciled the there's no material
amounts in subsidiary ledger with balances
mistatement that occurs
in the general ledger. The process of
on the accounts payable
evaluating whether the entity comply with
appropriate presentation and adequate account.
disclosure was done.
Shareholder’s Equity Verification of share transactions with the As a result of our audit,
minutes of shareholders’ meetings was there was no
conducted. The auditors verified the equity mistatement that
reconciliation schedule and reviewed occured on the
whether proper accounting valuation
shareholders equity
methods are applied in share-based
account.
transactions.Lastly, the process of evaluating
financial statement presentations for this
account was made.
Income Statement The auditors verified the contents of income There is no material
Accounts and expenses. In addition, evaluation of the misstatements on the
procedures used by the entity in reporting its income statement
revenues was done. Tracing was made accounts.
through the selected income to sales invoices
and selected expenses to appropriate
invoices and supporting documents. Lastly
the process of evaluating financial statement
presentations and disclosures for income and
expense accounts was done.
COMMUNICATION OF THE DETECTION OF MISSTATEMENT OR FRAUD
The auditors of Dao Ming Group communicated with the management and those charged
with governance regarding our opinion, and among other matters, the planned scope and timing
of the audit and significant affirmative audit findings, including the immaterial misstatements that
we identify during our audit. We also provided them with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
For the purposes of determining whether the financial statemenrs are free from material
error, we define materiality as the magnitude of omission or misstatement that, individually or in
aggregate, could reasonably be expected to influence the users of financial statement. From the
matters communicated with the management and those charged with governance, we determined
those matters that were of most significance in the audit of the consolidated financial statements
of the current period and are therefore the key audit matters. The exit conference was conducted
to brief on the audit results and request a date for completion of the corrective action plan. There
were some misstatements but when taken as a whole were found to be immaterial to the
presentation of financial statement and could not reasonably influence the users of the financial
statement.
IDENTIFICATION OF CONTINGENCIES AND COMMITMENTS
The audit objectives are to ensure that contingencies and commitments have been
disclosed in the financial statements in accordance with the requirements of applicable financial
reporting framework. Presentation and disclosure are the assertions that in line with this. The
analytical procedures are the review of contingencies and commitments’ appearing in last year’s
accounts and inquired about the status this year.
The audit team Dao Ming Group compared current year disclosures with last year and
obtained explanations for any significant or unusual items. For the test of details, the audit team
inquired of and discussed with management the client’s policies and procedures for identifying,
evaluating, and accounting for contingencies, including those resulting from litigation and claims.
The inquiry considered addressing oral arrangements, such as an oral guarantee for the debt of
others, as well as written arrangements.
We also obtained from management or legal adviser a description and evaluation of the
litigation and claims that existed at the balance sheet date and during the period from the balance
sheet date to the date the information was provided to us. The document, including the
correspondence and invoices from lawyers, in the client’s possession concerning litigation, claims
and unasserted claims was also examined. We also evaluated letters from legal advisors and
inquired of and discussed with management the client’s policies and procedures for identifying,
evaluating, and accounting for commitments. Aside from that, we reviewed the results of audit
procedures performed in other accounts and ead the minutes of corporate meetings held during
the period being examined and through to the date of the auditor’s report. Cost and progress
estimation procedures for long term projects and the possibility of subsequent events, to ensure
that there is no unrecorded contingency were also evaluated. Lastly, the client’s representation
regarding contingencies & commitments as part of the financial statement representation letter
was obtained.
THE AUDITOR'S CONSIDERATION OF AN ENTITY'S ABILITY TO CONTINUE AS

A GOING CONCERN
In forming our opinion, we have considered the adequacy of the disclosures made in the
financial statements concerning the possible outcome of negotiations. The financial statements
have been prepared on a going concern basis. The financial statements do not include any
adjustments that would result from a failure to obtain information about going concern. Details of
the circumstances relating to this fundamental uncertainty are described in note to the financial
statements. We consider that the fundamental uncertainty has been adequately accounted for and
disclosed in the financial statements and our opinion is not qualified in this respect.
The consolidated financial statements of the Banapra Cooperative have been prepared
using the going concern basis of accounting. The use of this basis of accounting is appropriate
unless management either intends to liquidate the cooperative or to cease operations, or has no
realistic alternative but to do so. As part of our audit of the consolidated financial statements, we
have concluded that management's use of the going concern basis of accounting in the
preparation of the Group's consolidated financial statements is appropriate.
Management has not identified a material uncertainty that may cast significant doubt on
the client’s ability to continue as a going concern, and accordingly none is disclosed in the
consolidated financial statements of the cooperative.Based on our audit of the consolidated
financial statements, it provided a true and fair view of the state of the company's affairs as at
December 31, 2017 and of its profits and cash flows for the year then ended and have been
properly prepared in accordance with the cooperative’s ordinance.

Batangas City
STATEMENT OF MANAGEMENT RESPONSIBILITY

FOR FINANCIAL STATEMENT
The management of BANAPRA Development Cooperative is responsible for all

information and representations contained in the financial statements for the year ended
December 31, 2017 and 2016. The financial statements have been prepaired in conformity
with Financial Reporting Standards applicable to Cooperatives in the Philippines and reflect
amounts that are based on the estimates and informed judgement of management with an
appropriate consideration to materiality.
In this regard, management maintains a system of accounting and reporting which provides
for the necessary internal controls to ensure that the transactions are properly authorized and
recorded, assets are safeguarded against unauthorized use or disposition and liabilities are
recognized. Management, likewise, discloses to the cooperative’s external auditor (1) all
significant deficiencies in the design or operation of all internal controls that could
adversely affect its ability to record, process and report financial data; (2) material
weaknesses in the internal control; and (3) any fraud that involves management or other
employees who exercise significant roles in internal controls.
The Board of Directors reviews the financial statements before such statements are
approved and submitted to the members of the cooperative.
Dao Ming Group, the independent auditor and appointed by the board of Directors, has
examined the financial statements of the cooperative in accordance with the Philippines
Standards on Auditing and the Standard Audit System for Cooperatives and has expressed
their opinion on the fairness of presentation upon completion of such examination, in their
report to the members of the cooperative.
LETTER FROM THE AUDITOR
Mrs. Yolanda Briones

Batangas City
Audit of Banapra Development Cooperative for the year ended 31 December 2017.
The purpose of this report is to set out certain matters that came to our attention during the course
of the interim audit of the financial statements of Banapra Development Cooperative for the year
ended 31 December.
Our objective is to use our knowledge of the business gained during our routine audit work to
make useful comments and suggestions for you to consider. However, you will appreciate that
our routine audit work is designed to enable us to form an opinion on the financial statements of
the business and it should not be relied upon to disclose all irregularities that may exist or to
disclose errors that are not material in relation to the financial statements.
Our report is designed to include useful recommendations that may help improve performance
and avoid weaknesses that could lead to material loss or misstatement. It is your obligation to
take the actions needed to remedy those weaknesses and should you fail to do so we shall not be
held responsible if loss or misstatement occurs as a result.
The report is provided on the basis that it is for the information of directors and management of
the business; that it will not be quoted or referred to, in whole or in part, without our prior written
consent; and that we will accept no responsibility to any third party in relation to it.
This report is set out in three sections. The first section addresses our observations from this
year’s audit. These matters have been discussed with management and their response is included
as appropriate. The second section is a summary of the matters previously raised in management
reports that have not yet been implemented/resolved and their current status. The third section is a
summary of matters previously raised in management reports that have been addressed during the
current financial year and has also been discussed with the management.
We have graded our management observations:
- Grade 1 observations are those where there is a risk of a significant financial impact on
the business that must be addressed immediately.
- Grade 2 observations are those where there is a risk of moderate financial impact on the
business, for example a control failure or the absence of a control in an area of moderate risk.
- Grade 3 observations are those that relate to minor control deficiencies or enhancements
in control efficiency.
Please do not hesitate to contact me if you have any questions about this report.
Yours faithfully,
Jessa May L. Landig

Senior Auditor
STANDARDIZED AUDITOR’S REPORT
The General Assembly And Board Of Directors

Brgy. 9, P. Canlapan St. Batangas City
Province Of Batangas
Report on the Audit of the Financial Statement
Opinion
I have audited the financial statements of BANAPRA DEVELOPMENT COOPERATIVE which

comprise the statements of financial condition as at December 31, 2017 and 2016, and the
statements of operations, changes in equity and cash flows for the years then ended, and notes to
the financial statements, including a summary of significant accounting policies.
In my opinion, the accompanying financial statements present fairly, in all material respects, the
financial condition of BANAPRA DEVELOPMENT COOPERATIVE as at December 31, 2017
and 2016, and of its financial performance and its cash flows for the years then ended in
accordance with Philippine Financial Reporting Framework for Cooperatives.
Basis for Opinion
I have conducted my audits in accordance with Philippines Standards on Auditing (PSAs) and the
Standard Audit System for Cooperatives (SASC). My responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of my report. I am independent of BANAPRA DEVELOPMENT COOPERATIVE in
accordance with the Code of Ethics for Professional Accountants in the Philippines and I have
fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the
audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Managements is responsible for the preparation and fair presentation of the financial statements
in accordance with the Philippine Financial Reporting Framework for Cooperatives and for such
internal control as management determines is necessary to enable the presentation of financial
statements that are free from material misstatement, whether due to fraud error.
In preparing the financial statements, management is responsible for assessing the Cooperative’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Cooperative or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Cooperative’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the financial Statements
My objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes my opinion. Reasonable assurance is a high level of assurance, but it is not a
guarantee that an audit conducted in accordance with PSA will always detect a material
misstatement when it exists. Misstatement can rise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decision of users taken on the basis of these financial statements.
As part of an audit in accordance with PSA, I exercise professional judgment and maintain
professional skepticism throughout the audit, I also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for purpose of expressing an opinion
on the effectiveness of the Cooperative’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures by Management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainly exists related to events
or conditions that may cast significant doubt on the Cooperative’s ability to continue as a going
concern. If I conclude that a material uncertainly exists, I am required to draw attention in my
auditors report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to
date of my auditor’s report. However, future events or conditions may cause the Cooperative to
cease to continue as a going concern.
I communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that I identify during audit.
Report on the Supplementary Information Required Under Revenue Regulation 15-2010
My audit was conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplementary information on taxes in Notes to the Financial Statements in
compliance with RR 15-2010 and RR 19-2011 of the Bureau of Internal revenue are presented for
purpose of additional analysis and are not a required part of the basic financial statements. Such
information are the responsibility of the management and have been subjected to the auditing
procedures applied in my audit of the basic financial statements taken as a whole.
AUDITED FINANCIAL STATEMENTS
STATEMENTS OF FINANCIAL CONDITION

As of December 31, 2017 and 2016
(Amounts in Philippine Peso)
ASSETS
Notes 2017 2016
CURRENT ASSETS
Cash 2,4,5 5,088,227.90 2,963,730.29
Loans Receivable, net 2,3,4,6 37,964,390.25 34,792,397.27
Trade and Other Receivables 2,3,4,7 52,401.80 89,089.47
Inventories 2,8 860,259.61 928,707.00
Other Current Assets 2,9 953,548.17 440,620.58
TOTAL CURRENT ASSETS 44,918,827.73 39,214,545.16
NON-CURRENT ASSETS
Investment in Non-Marketable
Equity Securities 2,3,10 1,410,353.44 1,447,853.44
Property and Equipment, net 2,3,11 12,160,260.17 9,697,244.91
Real and Other Properties
Acquired (ROPA) 2,3,11 393,843.00 383,261.67
Other Non-Current Assets 2,12,13 5,564,674.04 5,113,552.06
TOTAL NON-CURRENT ASSETS 19,532,130.65 16,641,912.08
TOTAL ASSETS 64,450,958.38 55,856,457.24
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Deposit Liabilities 2,4,14 30,424,935.07 23,033,958.66
Trade, Non-trade and Other
Payables 2,4,15 590,054.38 462,711.71
Due to Unions/Federations 2,20 538,398.66 637,769.87
Loan Payable - Current 2,4,16 904,949.97 595,740.77
TOTAL CURRENT LIABILITIES 32,458,338.08 24,730,181.01
NON-CURRENT LIABILITIES
Other Non-Current Liabilities 2,4,17 1,148,703.12 1,341,552.82
TOTAL NON-CURRENT LIABILITIES 1,148,703.12 1,341,552.82
TOTAL LIABILITIES 33,907,041.20 26,071,733.83
EQUITY
Share Capital 2,18 25,944,347.63 25,294,841.80
Statutory Funds 2,20 5,137,968.21 5,038,881.61
TOTAL EQUITY 31,082,315.84 30,333,723.41
TOTAL LIABILITIES AND EQUITY 64,450,958.38 55,856,457.24

See accompanying notes to
STATEMENTS OF OPERATIONS
Notes 2017 2016
REVENUES
Gross Income 2,21 6,685,863.29 6,456,748.14
Other Income 2,22 898,990.80 1,141,913.82
TOTAL REVENUES 7,584,854.09 7,598,661.96
EXPENSES 2,23 5,968,686.11 5,615,455.53
NET SURPLUS 1,616,167.98 1,983,206.43
DISTRIBUTED AS FOLLOWS:
Reserve Fund 10.00% 161,616.80 198,320.64
Education and Training Fund - Local 5.00% 80,808.40 99,160.32
Due to CETF (Apex) 5.00% 80,808.40 99,160.32
Optional Fund 7.00% 113,131.76 138,824.45
Community Development Fund 3.00% 48,485.04 59,496.19
Interest on Share Capital 70% (40%) 452,527.03 555,297.80
Patronage Refund Payable 70% (60%) 678,790.55 832,946.71
NET SURPLUS AS
DISTRIBUTED 1,616,167.98 1,983,206.43
See accompanying notes to

STATEMENTS OF CASH FLOWS

Notes 2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Surplus 1,616,167.98 1,983,216.43
Adjustments to reconcile net surplus to net
cash provided by operating activities
Depreciation and amortization 2,23 275,692.73 240,884.78
Probable Losses on Loans 2,23 124,590.27 201,980.00
Operating income before working
capital changes 2,016,450.98 2,426,081.21
Changes in assets and liabilities
Decrease (increase) in:
Loans receivable 2,3,4,6 (5,340,016.30) (4,001,303.12)
Trade and other receivables 2,3,4,7 36,688.02 860,397.67
Inventories 2,8 68,447.39 52,401.80
Other current assets 2,9 (521,927.59) (445,393.88)
Increase (Decrease) in:
Trade, non-trade and other payables 2,4,15 (649,883.25) (805,432.01)

Due to union/federation 2,20 (125,011.37) (98,311.11)
Net cash provided by operating activities (4,515,252.12) (2,011,559.44)
CASH FLOWS FROM INVESTING ACTIVITIES

Investment in non-marketable equity
Securities 2,3,10 937,853.44 1,001,992.56
Net acquisitons of property and
Equipment 2,3,11 (520,265.18) (1,193,228.32)
Net change in other non-current assets 2,13 (1,877,566.13) (2,096,313.76)
Net change in other non-current
Liabilities 2,4,17 107,150.30 123,298.01
Net cash provided by investing activities (1,352,827.57) (1,963,348.40)
CASH FLOWS FROM FINANCING ACTIVITIES

Increase (decrease) in deposit liabilities 2,4,14 7,390,976.41 5,139,533.00
Increase (decrease) in loans payable 2,4,16 357,909.83 547,927.47
Net changes in share capital 2,18 1,078,143.18 1,129,839.12
Net changes in donation and grant 2,19 - -
Utilizations of statutory funds 2,20 (834,452.12) (1,027,745.20)
Payment of interest on share capital and
patronage refund 2,20 - -
Net cash provided by financing activities 7,992,577.30 5,789,554.39
NET INCREASE (DECREASE) IN CASH 2,124,497.61 1,814,646.55

ADD: CASH BLANCE, JANUARY 1 2,963,730.29 1,149,083.74
CASH BALANCE, DECEMBER 31 5,088,227.90 2,963,730.29
See accompanying Notes to Financial Statements.


Notes To The Financial Statements
For The Years Ended December 31, 2017 And 2016
1. General Information
Banapra Development Cooperative, herein referred to as the “Cooperative”, is a cooperative

registered with the CDA on March 20, 1985 pursuant to Republic Act 6938. It has secured its
New Certificate of Registration with the Cooperative Development authority on January 28, 2010
pursuant to Republic act No. 9520, otherwise known as “The Philippine Cooperative Code of
2008”.
BDC is engaged in credit, consumer, and producer marketing. Its registered address is Brgy. 9 P.
Canlapan, Batangas City.
The accompanying financial statements of BDC were approved and authorized for issue by the
Board of Directors on February 20, 2018 for approval in the General Membership meeting on
March 10, 2018.
The cooperative has 2,251 and 1,928 members as December 31, 2017 and 2016 respectively.
2. Summary of Significant Accounting Policies

Basis of Preparation
The financial statements have been prepared in conformity with Financial Reporting Standards
applicable to Cooperatives in the Philippines using historical costs basis.
Statement of Compliance
The accompanying financial statements have been prepared in accordance with Philippine
Financial Reporting Standards for small and Medium-sized Entities (PFRS for SMEs)
The financial statements are presented in Philippine peso which is the functional and presentation
currency of the Cooperative. The value represents absolute amounts and rounded to the nearest
peso.
Accounting Policies Adopted
The following accounting standards that have been published and issued by the International
Accounting Standards Board (IASB) and adopted by the FRSC which became effective for
accounting periods beginning on or after January 1, 2009 were adopted by the Cooperative.
Section 1, “Small and Medium-Sized Entities”, PFRS for SME’s is intended for Non Publicly
Accountable Entities that publish general purpose financial statements for external users.
Section 2, “Concepts and Pervasive Principles”, describes the objective of financial statements of
small and medium-sized entities (SME’s) and the qualities that make the information in the
financial statements of SMEs useful. It also sets out the concepts and basic principles underlying
the financial statements of SMEs.
Section 3, “Financial Statement Presentation”. Provides a framework within which an entity

assesses how to present fairly the effects of transaction and other events. It requires that an entity
shall make an explicit and unreserved statement of compliance with PFRS for SME’s in the notes,
complete sets of financial statements must be presented at least annually and at least one year
comparative statements and note data, and items should be consistently presented and classified
from one period to the next. It also explains fair presentation of financial statements, what
compliance with the PFRS for SME’s requires, and what a complete set of financial statements
for SMEs to ensure comparability both with the entity’s financial statements of previous periods
and with the financial statements of other entities. It sets out overall requirements for the
presentation of financial statements, guide lines for their structure and minimum requirements for
their content.
Section 4, “Statement of Financial Position” provides specific requirements on the presentation

classification and related disclosures of entity’s assets, liabilities and equity as of a specific date.
It also sets out the formation that is to be presented in a statements of financial position and how
to present it. The statement of financial position (sometimes called the balance sheet) presents an
entity’s assets, liabilities and equity as of a specific date-the end of the reporting period and
provides the minimum lines items, heading and subtotals shall be presented if they will be
relevant to an understanding of the entity’s financial position.
Section 5, “Statement of Comprehensive Income and Income Statement”, provides specific

requirements on the presentation, classification and related disclosures of entity’s total
comprehensive income, its financial performance for the period in one or two financial
statements. It sets out the information that is to be presented in those statements and how to
present it.
Section 6, “Statement of Changes in Equity and Statements of Income and retained Earnings”,
sets out requirements for presenting the changes in an entity’s equity for a period, either in a
statement of changes in equity or, if specified conditions are met and an entity chooses, in a
statement of income and retained earnings, the cost of inventories is no longer acceptable.
Section 7, “Statement of Cash Flows”, requires the provision of information about the historical
changes in cash and cash equivalents of an entity by means of a cash flow statement which
classifies cash flows during the period from operating, investing and financing activities.
Section 8, “Notes to Financial Statements”, sets out the principle underlying information that is to
be presented in the notes to financial statements and how to present it. Notes contain information
in additional to that presented in the statement of financial position, statements of comprehensive
income, and retained earnings (if presented), statement of changes in equity and cash flows.
Notes provide narrative descriptions or desegregation of items presented in those statements and
information about items that do not qualify for recognition in those statements. In addition to the
requirements of this section nearly every other section of this PFRS requires disclosures that are
normally presented in then notes.
Section 10, “Accounting Policies, Estimates and Errors”, estimates the concept of fundamental
error and the allowed alternative to retrospective application of voluntary changes in accounting
policies and retrospective restatement to correct prior period errors. The section defines material
omissions and misstatements and describes how to apply the concept of materiality when
applying accounting policies and correcting errors.
Section 11, “Basic Financial Instruments”, deals with recognizing, measuring and disclosing
basic financial instruments and is relevant to all entities. An entity shall recognize a financial
asset or a financial liability only when the entity becomes a party to the contractual provisions of
the instrument. When a financial asset or financial liability is recognized initially, an entity shall
measure it as the transaction price unless the arrangement constitutes, in effect, a financing
transaction.
Section 13, “Inventories”, limits the alternatives for measurement of inventories. Inventories are
measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is
determined using specific identification for large items and FIFO or weighted average for others.
Inventory cost includes cost to purchase, costs of conversion and costs to bring the asset to
present location and location. Impairment writes down to net realizable value.
Section 17, “Property and Equipment”, prescribes the accounting treatment for property
equipment so that users of the financial statements can discern information about an entity’s
investment in its property and equipment and the changes in such investment. It prescribes the
accounting treatment and related disclosures for property and equipment, investment property,
and non-current assets held for sale whose fair value cannot be measured reliably without undue
cost and effort. It provides guidance on initial subsequent recognition as well as measurement
after recognition. It requires depreciation for each significant part of an item of property, plant
and equipment. The standard also provides guidance on the determination of the carrying amount
of the assets, the residual value, depreciation period and de-recognition principles to be observed.
The principal issues in accounting for property and equipment are the recognition of the assets,
the determination of their carrying amounts and the depreciation charges and impairment losses
to be recognized in relation to them. An entity shall measure an item of property and equipment is
the cash price equivalent at the recognition date. If payment is deferred beyond normal credit
terms, the cost is the present value of all future payments.
Section 20, “Leases”, prescribes that lease payments under operating leases shall be recognized as
income/expense on a straight-line basis unless another basis is more representative of the timing
of the benefits obtained by the user of the asset or the payments are structured to increase in line
with expected general inflation. It applies to agreements that transfer the right to use assets even
though substantial services by the lessor may be called for in connection with the operation or
maintenance of such assets. This section does not apply to agreements that are contracts for
services that do not transfer the right to use assets from one contracting party to the other. Its
objective is to prescribe, for lessees and lessors, the appropriate accounting policies and
disclosure to apply in relation to leases.
Section 21, “Provisions and Contingencies”, it outlines the recognition of provisions only when:
(a) the entity has an obligation at the reporting date as result of a past event; (b) it is probable (i.e.
more likely than not) that the entity will be required to transfer economic benefits in settlement;
and (c) the amount of the obligation can be estimated reliably. Its objective is to ensure that
appropriate recognition criteria and measurement basis are applied to provisions, contingent
liabilities and contingent assets and that sufficient information is disclosed in the notes to enable
users to understand their nature, timing and amount.
Section 22, “Liabilities and equity”, establishes principles for classifying financial instruments as
either liabilities or equity and addresses accounting for equity instruments issued to individuals or
other parties acting in their capacity investors in equity instruments (i.e., in their capacity as
owners).
Section 23, “Revenue”, provides additional guidelines as to the timely recognition of revenue,
which is measured at the fair value of the consideration received or receivable. It prescribes the
accounting treatment of revenue arising from creation types of transactions and events. The
primary issues in accounting for revenue is determining when to recognize revenue. Revenue is
recognized when it is probable that future economic benefits will flow to the entity and these
benefits can be measured reliably. This section identifies the circumstances in which these criteria
will be met and, therefore, revenue will be recognized. It also provides practical guidance on the
application of these criteria.
Section 27, “Impairment of Assets”, prescribes the procedures that an entity applies to ensure that
its assets are carried at no more than their recoverable amount if its carrying amount exceeds the
amount to be recovered through the use or sale of asset. If this is the case the asset is described to
be impaired and the standard requires the entity to recognize an impairment loss.
Section 28, “Employee Benefits”, applies to all employee benefits offered by an employer to
employees and their dependents and beneficiaries. This section applies to employee benefits
under; (i) formal plans and agreements between an enterprise and its employees, (ii) national,
local, industry or multi-employer plans; and informal practices giving rise to a constructive
obligation. This section also identifies the following categories of employee benefits such as
short-term employee benefits, post-employment benefits, other long term employee benefits and
termination benefits. It also deals with accounting and reporting by the plan to all participants as a
group. It does not deal with reports to individual participants about their retirement benefit rights.
An entity shall recognize the cost of all employee benefits to which its employees have become
entitled as a result of service rendered to the entity during the reporting period: (a) as a liability
(b) as an expense. This section shall be applied in the financial statements of retirement benefit
plans where such financial statements are prepared.
Section 29, “Income Tax”, covers accounting for income tax. It require an entity to recognize the
current and future tax consequences of transactions and other events that have been recognized in
the financial statements.
Section 32, “Events after the End of the Reporting Period”, define events after the end of the
reporting period and sets out principles for recognizing, measuring and disclosing such events.
Events after the end of the reporting period are those events favorable and unfavorable that occur
between the end of the reporting period and the date when the financial statements are authorized
for issue. Its objective is to prescribe; (a) when an entity should adjust its financial statements for
events after the reporting period; and (b) the disclosures that an entity should give about the date
when the financial statements were authorized for issue and about events after the reporting
period. It also requires that an entity should not prepare its financial statements on a going
concern bases if events after the reporting period indicate that the going concern assumption is
not appropriate.
Section 33, “Related Party Disclosures”, provides additional guidance and clarity in the scope,
definitions and the disclosures for related parties. It requires disclosure for related parties. It
requires disclosure of the compensation of key management personnel.it also requires an entity to
include its financial statements the disclosure necessary to draw attention to the possibility that its
financial position and profit or loss have been affected by the existence of related parties and by
transactions and outstanding balances with such parties.
Financial Assets
Financial assets include cash, cash equivalents (if any) and trade and other receivables.
Cash
Cash are stated at face value. Cash also includes cash in banks and petty cash fund which is being
utilized to fund expenses on a day to day transaction of the company and cash in banks which
consist of current and savings accounts. Cash in bank in savings accounts earn interest at the
respective bank deposit rates and these are deposits held at call with banks. Petty cash are
intended as working funds for a small amount of expenses such as periodicals, reproduction cost,
transportation, etc.
Cash Equivalents
Cash equivalents if any, are short-term, highly liquid debt instruments that are readily convertible
to known amounts of cash with original maturities of three months or less and that are subject to
an insignificant risk of change in value.
Trade Receivables
Loans are carried at cost or amortized cost less impairment in value. Any change in value is
recognized in profit or loss. Impairment loss is provided when there is objective evidence that the
Cooperative will not be able to collect all amounts due in accordance with the original terms of
receivables. The amount of the impairment loss is determined as the difference between the
asset’s carrying amount and the present value of the estimated cash flows.
Other Receivables
Other receivables are stated amortized cost less provision for impairment. Impairment of
receivables is established when there is objective evidence that the Cooperative will not be able to
collect all amounts due according to the original terms of receivables.
Property and Equipment
Property and equipment are stated at cost, excluding the costs of day-to-day servicing,
accumulated depreciation and amortization and any impairment in value.
The initial cost of property and equipment comprises its purchase price and any directly
attributable costs of bringing the asset to its working condition and location for its intended use.
These can include the costs of initial delivery and handling, installation and assembly, and testing
of functionality. Expenditures incurred after the property and equipment have been put into
operations, such as repairs and maintenance and overhaul costs, are normally charged to
operations in the period the costs are incurred. In situations where it can be clearly demonstrated
that the expenditures have resulted in an increase in the future economic benefits expected to be
obtained from the use of an item of property, and equipment beyond its originally assessed
standard or performance, the expenditures are capitalized as additional costs of property and
equipment. Cost also includes any asset retirement obligation and interest on borrowed funds
used. When assets are sold or retired, their costs and accumulated depreciation, amortization and
impairment losses, if any, are eliminated from the accounts and any gain or loss resulting from
their disposal is included in the statement of operations of such period.
The following costs are not costs of an item of property and equipment, and the entity recognized
them as an expense when they are incurred: costs of opening a new facility, costs of introducing a
new product or service (including costs of advertising and promotional activities), costs of
conducting business in a new location or with a new class of customer (including costs of staff
training), administration and other general overhead costs and borrowing costs. For financial
reporting purposes, duties and taxes related to the acquisition of property and equipment are
capitalized. For income tax reporting purposes, such duties and taxes are treated as deductible
expenses in the year these charges are incurred.
For financial reporting purposes, depreciation and amortization are computed using the straight-
line method over the estimated useful lives of the assets.
The useful life if each of the property and equipment is estimated based on the period over which
the asset is expected to be available or use. Such estimation is based on a collective assessment of
industry practice and experience with similar assets.
The assets’ residual values, useful lives and depreciation and amortization method are reviewed,
and adjusted if appropriate, at each financial year-end.
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
de-recognition of the asset (calculated as the difference between the net disposal proceeds and th
carrying amount of the item) is included in the statement of operations in the year the item is
derecognized.
If there is an indication that there has been a significant change since the last annual reporting
date in the pattern by which an entity expects to consume an asset’s future economic benefits, the
entity shall review its present depreciation method and, if current expectations differ, change the
depreciation method to reflect the new pattern. The entity shall account for the change as a
change in an accounting estimate.
Factors such as a change in how an asset is used, significant unexpected wear and tear,
technological advancement, and changes in market prices may indicate that the residual value or
useful life of an asset has changed since the most recent annual reporting date. If such indicators
are present, an entity shall review its previous estimate and, if current expectations differ, amend
the residual value, depreciation method or useful life. The entity shall account for the change in
residual value, depreciation method or useful life as change in an accounting estimate. An item of
property and equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss on de-recognition of an item of property and
equipment is recognized in profit or loss when the item is derecognized (unless Section 20 Leases
requires otherwise on a sale and leaseback) such gain is not recognized as revenue.
For income tax reporting purposes, depreciation is computed using the straight-line method.
Investment Property
Investment property which pertains to parcels of land, building held for rentals and other
properties acquired is measured initially at cost, including transaction costs.
Subsequent to initial recognition, investment property is carried at cost less impairment in value.
Investment property is derecognized either when these have been disposed of or when the
investment property is permanently withdrawn from use and no future economic benefit is
expected from its disposal. Any gains or losses on the retirement of disposal of an investment
property are recognized in the statement of operations in the year of retirement or disposal.
Financial Liabilities
Financial liabilities are recognized initially at fair value.
Financial liabilities are recognized when the Cooperative becomes a party to the contractual
provisions of the instrument.
This category includes trade payables and other payables, and interest-bearing borrowings.
Trade and Other Payables
Trade and other payables are liabilities to pay for goods or services that have been receive or
supplied and have been invoiced or formally agreed with the supplier. Trade payables are not
interest-bearing and are stated at their nominal value.
Accruals are liabilities to pay for goods or services that have been received or supplied but have
not been paid, invoiced or formally agreed with the supplier, including amounts due to
employees.
It is necessary to estimate the amount or timing of accruals, however, the uncertainty is generally
much less than for provision.
Trade and other payables are measured initially at their nominal values and subsequently
recognized at amortize costs less settlement payments.
Trade and other payables are initially recorded at transaction price and subsequently measured at
their cost less settlement payments.
Financial Instruments
Date of Recognition
The Cooperative recognizes a financial asset or a financial liability in the balance sheets when it
becomes a party to the contractual provisions of the instrument.
Initial Recognition of Financial Instruments
All financial assets are initially recognized at fair value.
Determination of Fair Value
For all financial instruments not listed in an active market, the fair value is determined by using
appropriate valuation techniques. Valuation techniques include net present value techniques,
comparison to similar instruments for which market observable prices exist, options pricing
models, and other relevant valuation models.
The fair value for any financial instruments traded in active markets at the balance sheet date is
based on their quoted market price or dealer price quotations (bid price for long positions and ask
price for short positions), without any deduction for transaction costs. When current bid and
asking prices are not available, the price of the most recent transaction provides evidence of the
current fair value as long as there has not been a significant change in economic circumstances
since the time of the transaction.
Impairment of Financial Assets
The Cooperative assesses at each balance sheet date wherever there is objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of a financial
assets is deemed to be impaired if, there is objective evidence of impairment as a result of one or
more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’)
and that loss event (or events) has an impact on the estimated future cash flows of the financial
asset or the group of financial assets that can be reliably estimated. Evidence of impairment may
include indication that the borrower or a group of borrowers is experiencing significant financial
difficulty, default or delinquency in interest or principal payments, the probability that they will
enter bankruptcy or other financial reorganization and where observable date indicate that there is
measurable decrease in the estimated future cash flows, such as changes in arrears or economic
conditions that correlate with defaults.
If there is objective evidence that an impairment loss has been incurred, the amount of loss is
measured as the difference between the assets’ carrying amount and the present value of the
estimated future cash flows (excluding future credit losses that have not been incurred). The
carrying amount of the asset is reduce through the use of an allowance account and the amount of
loss is charged to the statement of income. Interest income continues to be recognized based on
the original effective interest rate of the asset. Loans, together with the associated allowance
accounts, are written off when there is no realistic prospect of future recovery and all collateral
has been realized. If, in a subsequent year, the amount of the estimated impairment loss decrease
because of an event occurring after the impairment was recognized, the previously recognized
impairment loss is reversed.
Any subsequent reversal of an impairment loss is recognized in profit or loss, to the extent that
the carrying value of the asset does not exceed its amortized cost at the reversal date.
For the purpose of the collective evaluation of impairment, financial assets are grouped on the
basis of such credit risk characteristics as industry, past-due status and term.
Future cash flows in a group of financial assets that re collectively evaluated for impairment are
estimated on the basis of historical loss experience for assets with credit risk characteristics
similar to those in the group. Historical loss experience is adjusted on the basis of current
observable data to reflect the effects of current conditions that did not affect the period on which
the historical loss experience is based and to remove the effects of conditions on the historical
period that do not exist currently. The methodology and assumptions used for estimating future
cash flows are reviewed regularly by the Cooperative to reduce any differences between loss
estimates and actual loss experience.
The Cooperative first assesses whether objective evidence of impairment exists individually for
financial assets that are individually significant. If it is determined that no objective evidence of
impairment exists for an individual asset with similar credit risk characteristics and that group of
financial assets is collectively assessed for impairment. Assets that are individually assessed for
impairment and for which an impairment loss is on continues to be recognized are not included in
a collective assessment or impairment.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed. Any subsequent reversal of an impairment loss is
recognized in the statements of income, to the extent that the carrying value of the asset does not
exceed its amortized cost at the reversal date.
De-recognition of Financial Assets and Financial Liabilities
Financial Assets
A financial asset (or, where applicable a part of financial asset or part of a group of similar
financial assets) is derecognized when:
 The rights to receive cash flows from the asset have expired;
 The Cooperative retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third party under a pass-through
arrangement; or
 The Cooperative has transferred its right to receive cash flows from the asset and either
(a) has transferred substantially all the risks and rewards of the asset, or (b) has neither
transferred nor retained substantially all the risk and rewards of the asset, but has
transferred control of the asset.
Financial Liabilities
A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or expired. Where an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a de-recognition of the original liability
and the recognition of a new liability, and the difference in the respective carrying amounts is
recognized in the statement of income.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the balance
sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts
and there is an intention to settle on a net basis, or to realize the asset and settle the liability
simultaneously.
Revenue and Cost Recognition
Revenue is recognized to the extent that is probable to the economic benefits will flow to the
Cooperative and the amount of revenue can be reliably measure. However, when an uncertainty
arises about the collectability of an amount already included in the revenue, the uncollectible
amount, or the amount in respect of which recovery has ceased to be probable, is recognized as an
expense, rather than as an adjustment of the amount of revenue originally recognized.
The following specific criteria must also be met before revenue is recognized:
 Sale of Services – Revenue is recognized upon rendering of services or completion of

services made.
 Interest income is recognized as the interest accrues (taking into account the effective
yield on the asset).
 Sale of Goods – Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer.
Cost, distribution cost and administrative expenses are recognized when the significant are
recognized in the statement of income upon utilization of the service or in the date they are
incurred.
Employee’s Compensation and Other Benefits
Short-term Benefits
The Cooperative recognizes a liability net of amounts already paid and an expense for services
rendered by employees during the accounting period. Short-term benefits given by the
Cooperative to its employees include salaries and wages, social security contributions, short-term
compensated absences, bonuses and other non-monetary benefits, if any.
Retirement Costs
The Cooperative recognizes a liability net of amounts already paid and an expense for services
rendered by employees during the accounting period. Short-term benefits given by the
Cooperative to its employees include salaries and wages, social security contributions, short-term
compensated absences, bonuses and other non-monetary benefits, if any.
Retirement Costs
The Cooperative has defined benefit retirement plan but has not acquired actuarial services for
actual set up of retirement fund.
Value-Added Tax
Revenues, expenses and assets are recognized net of the amount of value-added tax except:
 Where the value-added tax incurred on a purchase of assets or services is not recoverable
from the taxation authority, in which case the value-added tax is recognized as part of the
costs of acquisition of the asset or as part of the expense item as applicable; and
 The net amount of value-added tax recoverable from, or payable to, the taxation authority
is included as part of other current assets or payables in the balance sheets.
Events after the End of the Reporting Period
Post-year-end events up to the date of the auditor’s report that provide additional information
about the Cooperative’s position at the balance sheet date (adjusting events) are reflected in the
financial statements. Post-year-end events that are not adjusting events are disclosed in the notes
to financial statements when material.
Subsequent Events
The Cooperative identifies subsequent events as events that occurred after the balance sheet date
but before the date when the financial statements were authorized for issue. Any subsequent
events that provide information about the Cooperative’s financial position at the balance sheet
date are reflected in the financial statements.
Events that are not adjusting events are disclosed in the notes to the financial statements when
material.
3. Management’s Significant Accounting Judgement and Estimate

The preparation of accompanying financial statements in conformity with Financial Reporting
Framework (in reference to the Philippine Financial Reporting Standards) requires management
to make estimates and assumptions that affect the amounts reported in the financial statements
and accompanying notes. The estimates and assumptions used in the accompanying financial
statements are based upon management’s evaluations of relevant facts and circumstances as of
the date of the financial statements. Actual results could differ from such estimates.
Judgements
The preparation of the Cooperative’s financial statements in conformity with PFRS for SMEs
requires management to make estimates and assumptions that affect the amounts reported in the
Cooperative’s financial statements and accompanying notes. The estimates and assumptions used
in the Cooperative’s financial statements are based upon management’s evaluation of relevant
facts and circumstances as of the date of the Cooperative’s financial statements. Actual results
could differ from such estimates, judgments and estimates are continually evaluated and are based
on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
Determining Functional Currency
Based on economic substance of underlying circumstances relevant to the Cooperative, the

functional currency has been determined to be the Philippine peso. The Philippine peso is the
currency of the primary economic environment in which the Cooperative operates and it is the
currency that mainly influences the prices of the products and services and the cost of providing
such products and services.
Provision and Contingencies
Provisions are recognized when, the Cooperative has a present obligation (legal or constructive)
as a result of past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle an obligation and a reliable estimated can be made of the amount of the
obligation. If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specify to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognized
as an interest expense. Provisions are reviewed at each balance sheet date and adjusted to reflect
the current best estimate. When the effect of the time value of money is material, the amount of a
provision is the present value of the expenditures expected to be required to settle the obligation.
Where the Cooperative expects a provision to be reimbursed, the reimbursement is recognized as
a separate asset but only when the reimbursement is virtually certain.
Contingent assets are not recognized, but when an inflow of economic benefit is probable, the
contingent asset is disclosed. The Cooperative has not recognized any provision in the financial
statements.
Contingent liabilities are not recognized in the financial statements. They are disclosed unless the
possibility of an outflow of resources embodying economic benefits is remote. A contingent asset
is not recognized in the financial statements but disclosed when an inflow of economic benefits is
probable.
Estimates
In the application of the Cooperative’s accounting policies, management is required to make

judgements, estimates and assumptions about the carrying amounts of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based
on historical experience and other factors that are not considered to be relevant. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future periods if the revision affects
both current and future periods.
The following represents a summary of the significant estimates and judgments and related
impact and associated risks in the Cooperative’s financial statements.
Evaluation of Asset impairment
The Cooperative assesses the impairment of assets whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. The factors that the
Cooperative considers important which could trigger an impairment review include significant
changes in asset usage, significant decline in asset’s market value and obsolescence or physical
damage of an asset. If such indications are present and where the carrying amount of the asset
exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.
The recoverable amount is the higher of an asset’s net selling price and value in use. The net
selling price is the amount obtainable form the sale of an asset in an arm’s length transaction
while value in use is the present value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its useful life. Recoverable amounts
are estimated for individual assets or, if it is not possible, for the cash-generating unit to which
the asset belongs.
In determining the present value of estimated future cash flows expected to be generated from the
use of the assets, the Cooperative is required to make estimates and assumptions that may affect
property and equipment.
Estimating useful lives of property and equipment
The Cooperative estimates the useful lives of property and equipment based on the period over
which the property and equipment are expected to be available for use. The estimated useful lives
of the property and equipment are reviewed periodically and are updated if expectations differ
from previous estimates due to physical wear and tear, technical or commercial obsolescence and
legal or other limits on the use of the property and equipment. In addition, the estimation of the
useful lives of property and equipment is based on the collective assessment of industry practice,
internal technical evaluation and experience with similar assets.
It is possible however, that future financial performance could be materially affected by changes
in the estimates brought about by changes in factors mentioned above. The amounts and timing of
recorded expenses for any period would be affected by changes in these factors and
circumstances. A reduction in the estimated useful lives of the property and equipment would
increase the recorded expenses and decrease the non-current assets.
Depreciation is computed on a straight-line method over the estimated useful lives of the assets as
follows:
Equipment costing P2,000.00 and below 1 year

Equipment costing above P2,00.00 5 years
Vehicles 10 years
The foregoing estimated useful lives and depreciation method are reviewed from time to time to
ensure that these are consistent with the expected economic benefits of the property and
equipment.
No impairment loss was recognized by the Cooperative in the year 2007 as the Management
believes that no evidence of impairment exists.
Estimating Uncertainty
The Cooperative made no key assumptions concerning the future and other key sources of
estimation uncertainty at the balance sheet date, that have a significant risk of causing a material
adjustments to the carrying amounts of assets and liabilities within the next financial year.
Financial Assets and Liabilities
The Cooperative carries some of its financial assets and liabilities at fair value, which requires
extensive use of the accounting estimates and judgments. While significant components of fair
value measurement were determined using verifiable objective evidence, i.e., interest rates,
volatility rates, the amount of changes in fair value would differ if the Cooperative utilized
different valuation methodology. Any changes in fair value of these financial assets and liabilities
would affect directly the statements of income and equity, as appropriate.
Impairment of Non-Financial Assets
The Cooperative assesses the value of property and equipment which requires the determination
of future cash flows expected to be generated form the continued use and ultimate disposition of
such assets, and require the Cooperative to make estimates and assumptions that can materially
affect the financial statements. Future events could cause the Cooperative to conclude that
property, plant and equipment and other long-loved assets are impaired. Any resulting
impairment loss could have a material adverse impact on the Cooperative’s financial condition
and results of operations.
The Preparation of the estimated future cash flows involves significant judgement and
estimations. While the Cooperative believes that its assumptions are appropriate and reasonable,
significant changes in these assumptions may materially affect the Cooperative’s assessment of
recoverable values and may lead to future additional impairment charges.
Deferred Tax Assets
The Cooperative reviews the carrying amounts of deferred income tax assets, if any, at each
balance sheet date and reduces deferred tax assets to the extent that it is no longer probable that
sufficient income will be available to allow all or part of the deferred tax assets to be utilized.
However, there is no assurance that the Cooperative will generate sufficient taxable profit to
allow all or part of its deferred tax assets to be utilized.
Revenue Recognition
The Cooperative’s revenue recognition policies require the use of estimate’s and assumption that
may affect the reported amounts revenues and receivables. Differences between the amounts
initially recognized and actual settlements are taken up in the accounts upon reconciliation.
However, there is no assurance that such use of estimates may not result to material adjustments
in future periods.
4. Financial Risk Management Objectives and Policies

Financial Risk Managements Objectives and Policies
The main purpose of the Cooperative’s principal financial instruments is to fund its operational
and capital expenditures. The cooperative’s risk management is coordinated and in close
operation with the Board of Directors, and focuses on actively securing the Cooperative’s short to
medium term cash flows by minimizing the exposure to financial markets.
The company’s activities expose it to a variety of financial risks: credit risk and liquidity risk.
The Company’s overall risk management program seeks to minimize potential adverse effect on
the financial performance of the Cooperative.
The policies for managing specific risks are summarized below.
Governance Framework
The Cooperative has established risk management function with clear terms of reference and with
the responsibility for developing policies on market, credit, liquidity and operational risk. It also
supports the effective implementation of policies.
The policies define the Cooperative’s identification of risk and its interpretation, limit structure to
ensure the appropriate quality and diversification of asset to the corporate goals and specify
reporting requirements.
Regulatory Framework
The operation of the Cooperative is also subject to the regulatory requirements of Cooperative
Development Authority (CDA). Such regulations not only prescribe approval and monitoring of
activities but also impose certain restrictive provisions.
Financial Risk Management
The Cooperative is exposed to a variety of financial risks, which result from both its operating
and investing activities. The Cooperative’s overall risk management program focuses on the
unpredictability of financial markets and seeks to minimize potential adverse effects on the
Cooperative’s financial performance. The BOD reviews and agreed policies for managing each of
these risks which summarized below.
Financial Risk
The Cooperative is also exposed to financial risk through its financial assets and financial
liabilities. The most important components of this financial risk are credit risk, liquidity risk and
market risk.
Credit Risk
The investment of the Cooperative’s cash resources is managed so as to minimize risk while
seeking to enhance yield. The Cooperative’s holding of cash exposes it to credit risk of the
counterparty if the counterparty is unwilling or unable to fulfill its obligations, and the
Cooperative consequently suffers financial loss. Credit risk management involves entering into
financial instruments only with recognized, credit worth counterparties.
The Cooperative’s receivables are not impaired. The credit quality of the financial assets was
determined based on the nature of the counterparty and the Cooperative’s experience with them.
The Cooperative’s credit risk is primarily attributable to its trade receivables. The Cooperative
has adopted stringent procedure in extending credit terms to customers and in monitoring its
credit risk.
Credit risk is the risk that one party to a financial instrument will fail to discharge and obligation
and cause the other party to incur a financial loss.
The Cooperative manages the level of credit risk it accepts through comprehensive credit risk
policy setting out assessment and determination of what constitutes credit risk for the
Cooperative; setting up exposure limits by each counterparty or group of counterparties,
geographical and industry segments; guidelines on obtaining collateral and guarantees; reporting
of credit risk exposures and breaches to the monitoring compliance with credit risk policy and
review of credit risk policy for pertinence and changing environment.
Receivable balances are being monitored on a regular basis to ensure timely execution of
necessary intervention efforts.
As of balance sheet date, there were no significant concentrations of credit risk.

Liquidity Risk
The Cooperative’s objective is to maintain a balance between continuity of funding and flexibility
through the use of generated funds. Liquidity risk is the risk that the Cooperative will be unable to
meet its payment obligations when they fall due. The Cooperative manages this risk through
periodically monitoring of cash flows in consideration of future payments due dates and daily
collection amounts. The Cooperative also ensures that there is sufficient, available and approved
working capital lines that it can draw from anytime.
The Cooperative maintains an adequate amount of cash in the event of unforeseen interruption of
its cash collections. The Cooperative also maintains accounts with several relationship banks to
avoid significant concentration of cash with one institution.
Liquidity of funding risk is the risk that an entity will encounter difficulty in raising funds to meet
commitments associated with financial instruments. Liquidity risk may result from either the
inability to sell financial assets quickly at their fair value, or counterparty failing on repayment of
contractual obligation.
The Cooperative monitors its cash flow position and overall liquidity position in assessing its
exposure to liquidity risk. The cooperative maintains a level of cash deemed sufficient to finance
operations and to mitigate the effects of fluctuations in case flow, and a balance between
continuity of funding and flexibility through the use of short-term debt and advances from related
parties.
Fair Value of Financial Instruments
The Cooperative's financial assets and liabilities and recognized initially at cost which is the fair
value of the consideration given in the case of assets) or received (in the case of liability).
Fair values are determined by reference to market-based evidence, which is the amount for which
the financial assets could be exchanged between knowledgeable willing buyer and a
knowledgeable willing seller in an arm's length transaction on as at the valuation date.
Generally, the maximum credit risk exposure of financial assets is the carrying amount of the
financial assets as shown on the face of the balance sheet (or in the detailed analysis provided in
the notes to the financial statements).
Due to short term nature of the transactions, the fair value of the cash, trade and other receivables,
trade and other payables, are approximate amount of consideration at the time of initial
recognition, thus it is the same in the carrying value.
The Cooperative maintains cash to meet its liquidity requirements for up to 30 day periods and
the Cooperative maintains adequate highly liquid assets in the form of finance and other
receivables to assure necessary liquidity.
In respect of loans and other receivables, the Cooperative is not exposed to any credit risk
exposure. All of the Cooperative's loans and other receivables have been reviewed for indicators
of impairment.
The fair values of loans and other payables have not been individually disclosed as, due to their
short duration, management considers the carrying amounts recognized in the balance sheets to be
reasonable approximation of their values.
The Cooperative manages its liquidity needs by carefully monitoring scheduled debt payments for
financial liabilities as well as cash outflows due in a day-to-day business. Liquidity needs are
being closely monitored, on day to day and week to week basis as well as on the basis of a rolling
30-dayprojection. Long-term liquidity needs for a 6-month and one-year period are identified
monthly.
The Cooperative sets the amount of capital in proportion to its overall financing structure, i.e.,
equity and financial labilities. The Cooperative manages the capital structure and makes
adjustments to it in the light of changes in economic conditions and the risk characteristics of the
underlying assets. In order to maintain or adjust the capital structure, the Cooperative may adjust
the amount of dividends paid to shareholders, or issue new shares.
Market Risk
Market risk is the risk of change in fair value of financial instruments from fluctuation in foreign
exchange rates (currency risks), market interest rates (interest rate risk) and market prices (price
risk).
Fair Value Interest Rate Risk
The fair value interest risk is the risk that the value of financial instrument will fluctuate because
of changes in market interest rates. The company has no fixed rate receivables in particular and
thus, it is not exposed to such risk.
The Cooperative's interest rate exposure management policy centers on reducing the
Cooperative's overall interest expense and exposure to changes in interest rates (if any). Changes
in market interest rates relate primarily to the Cooperative's interest-bearing debt obligations with
floating interest rate.
5. Cash
This account consist of:
2017 2016
Cash on Hand 82,326.11 469,436.21
Petty Cash Fund 10,000.00 10,000.00
Cash in Bank:
Batangas Rural Bank for Cooperatives 129,821.93 348,596.40
CARD SME Bank 209,189.66 205,731.31
China Bank Corporation 1,170,146.90 572,143.77
China Bank- Savings Deposit 500,388.89 -
Luzon Development Bank- Savings
561,148.38 553,244.10
Account
Luzon Development bank- Time Deposit 207,803.88 204,486.66
Maybank- Time Deposit 502,530.97 -
Maybank Checking Account 506,514.23 416,983.46
Security Bank 1,208,356.95 183,108.38
Total Cash in Bank 5,088,227.90 2,963,730.29
Cash in banks consists of deposits to reputable local banks and quasi-banks which earn interest at
the prevailing bank deposit rates. Petty Cash Fund is used to defray pretty expenditures of the
Cooperative subject for replenishment. Management deemed that the carrying amount the
accounts approximates their fair values.
On January 13, 2017, the Countryside Cooperative Rural Bank of Batangas was put under
Receivership by the Philippine Deposit Insurance Corporation or PDIC upon order from Bangko
Sentral ng Pilipinas for the closure of the Bank per BSP Monetary Board Resolution No. 55 dated
January 12, 2017.
On February 2017, the Cooperative was able to recover claim from PDIC the entire amount of
bank deposit after applying thereto its outstanding loan with the Bank as of closure date.
6. Loans Receivables
This account consists of:
2017 2016
Loans Receivable – Current 38,516,777.57
Loans Receivable –Past Due -
Loans Receivable – Restricted -
Loans Receivable – In Litigation -
Total Loans Outstanding 38,516,777.57 33,178,778.27
Allowance for Probable Losses – Loans
Receivable 552,387.32 427,797.05
Total 37,964,390.25 34,792,397.47
The fair values of the above accounts receivables approximate their carrying costs as of
December 31, 2017 and 2016 and no material impairment was determined by the management.
The Board of Directors approves to provide allowance for probable losses at an average of 9% of
Loans Receivable - Past Due.
7. Trade And Other Receivables

2017 2016
Accounts Receivable – Trade 52,401.80 60,426.80
Less: Allowance for Doubtful Accounts - -
Other Current Receivables - 28,663.02
Total 52,401.80 89.089.82
8. Inventory
2017 2016
Merchandise Inventory 860,259.61 772,224.36
Store (Organo) - 156,482.64
Total 860,259.61 928,707.00
9. Other Current Assets

2017 2016
E-load and Auto-Load 3,500.00 3,500.00
Unused Supplies 751,275.99 354,185.10
Prepaid Expenses 198,772.18 82,935.48
Total 953,548.17 440,620.58
10. Investments
10.1 Investment In Non-Marketable Equity Securities

2017 2016
Philippine Federation of Women’s Cooperative 2,078.89 2,078.89
Countryside Cooperative Rural Bank 591,093.37 591,093.37
Cooperative Insurance System of the
Philippines 44,855.23 44,855.23
Batangas Federation of MPC 25,000.00
Credit Surety Fund 200,000.00
Metro South Cooperative Bank 74,825.95 74,825.95
Total 937,853.44 712,853.44
11. Property And Equipment – Net

The lapsing schedule of the property and equipment follows:
Furniture,
Bldg. and Transpo.
2017 Land Fixture, & Total
Improvements Equipment
Equipment
Cost
Balances,
beginning 3,000,000.00 5,223,034.60 880,627.50 2,351,606.00 11,455,268.10
Additions
2,301,913.83 9,990.00 1,141,200.00 3,453,103.83
Retirements/
Disposals -
Balances,
ending 3,000,000.00 7,524,948.43 890,617.50 3,492,806.00 14,908,371.93
Accum.
Depreciation
Balances,
beginning 852,263.00 585,459.60 783,059.26 2,220,781.86
Depreciation
during the
240,000.00 98,423.30 188,906.60 527,329.90
years
Adjustments 1,092,263.00 683,882.90 971,965.86 2,748,111.76
Balances,
ending 3,000,000.00 4,179,324.60 206,734.60 2,520,840.14 12,160,260.17
Depreciation is computed on a straight line method over the estimated life of the assets. No assets
were found impaired. The carrying amount is equivalent to its fair value. Depreciation charged to
operation amounted to… Property and Equipment are initially measured at cost less accumulated
depreciation.
Real and Other Properties Acquired or ROPA refers to real properties foreclosed by the Coop
from delinquent members.
12. Other Funds And Deposit

This account consists of the following:
2017 2016
Bank of Commerce- TD 511,162.16 509,116.30
Batangas Rural Bank for Cooperatives- TD 528,961.81 522,550.92
China Banking Corporation- TD 504,122.82 501,066.15
Eastwest Bank- TD 505,511.28 501,045.17
Metro Bank- Bauan TD 1,011,591.48 502,820.62
Metro South Cooperative Bank- TD 1,050,595.38 1.032.941.63
Bank of Commerce-SA 1,067,311.20 891,322.63
Total 5,179,256.13 3,427,921.79
13. Other Non-Current Assets

2017 2016
Cooperative Development Cost - 71,689.00
Computerization Cost 112,167.91 184,747.12
Other Funds and Deposit 5,179,256.13 3,427,921.79
Miscellaneous Asset 250,000.00 0
Refundable Deposit 26,250.00 5,750.00
Total 5,567,674.04 3,690,107.91
Cooperative Development Cost account refers to pre-operating expenses incurred by the Coop on
its new store located ar Brgy. Dalig, Batangas City. The said store which was previously managed
by Dalig Multipurpose Cooperative was acquired by Banapra Development Cooperative on
December 2016 and started operations on January 2017.
Other Funds and Deposit refers to restricted funds set aside for funding of the Statutory Funds
and Retirement Fund of the Cooperative.
14. Deposit Liablities

2017 2016
Savings Deposit 9,877,334.20 5,844,826.57
Time Deposit 20,547,600.87 17,189,132.09
Total 30,424,935.07 23,033,958.66
Time deposit included placement of funds from various members as internal financing of the
Cooperative for the construction of its store and office building. After a holding period of three
(3) years, the deposit can be withdrawn at the option of the member.
15. Trade, Nontrade And Other Payables

2017 2016
Accounts Payable - Trade 340,524.63 1,064,977.68
SSS/Philhealth/PAGIBIG Contribution Payable 6,159.30 0.00
SSS/PAGIBIG Loan Payable 15,712.09 10,090.27
Withholding Tax Payable 4,774.33 5,270.53
Accrued Expenses 27,130.00 26,406.11
Insurance Payable 195,754.03 133,193.04
Other Payables - 0
Total 590,054.38 1,239,937.63
Obligations to the government are remitted on the following month after being withheld from
various income recipients. Accrued expenses are recorded initially at their nominal values and
subsequently recognized at amortized costs less settlement payments. The management considers
the carrying amounts of accrued expenses recognized in the balance sheet to be a reasonable
approximation of their fair values due to their short duration. Accrued expenses are non-interest
bearing and are settled within a short period of time.
16. Loans Payable

This account consists of loan payable to the following:
2017 2016
CLoan from Cooperative Bank of Batangas
maturing on January 2019 at 6% interest
compounded annually 254,949.97 547,040.14
Loan from Metropolitan Bank and Trust
Corporation 650,000.00
MBTC maturing on April 20, 2018

904,949.97 547,040.14
17. Other Noncurrent Liabilities

2017 2016
Retirement Fund Payable 834,384.74 762,358.74
Members’ Benefit Fund Payable 614,318.38 579,194.08
Total 1,448,703.12 1,341,552.82
The Cooperative authorized share capital is Php 30,000,000.00 consist of 300,000 common shares
at Php 100 par value per share.
The share capital is composed of common shares subscribed and paid up through cash infusion
and stock dividends declared from the cumulative earnings of the cooperative.
Deposit for Share Capital Subscription refers to fractional shares paid up.
18. Share Capital

This account represents amounts received by the Cooperative in various competitions joined in
the City.
19. Donations And Grants

These are financial assistance received by the Coop from different organizations and agencies to
support its activities for the members. There are no unfulfilled conditions and other contingencies
attached to donations and grants.
20. Reserves
The cooperative’s constitution and by-laws explicitly provides that its net surplus at the end of the
calendar year shall be distributed accordingly and balances are as follows.
a. Ten percent (10%) shall be set aside as General Reserve Fund. This general reserve fund
is created to provide for the stability of the Cooperative and to absorb losses, if any in its
business operation.
b. Ten percent (10%) of net surplus be set aside for cooperative education and training fund.
One-half of this amount shall be utilized by the Cooperative on its own education and
training activities while the other half should be credited to the cooperative education an
training fund of the apex of which the cooperative is a member.
c. Seven percent (7%) for optional fund.
d. Three percent (3%) for projects or activities that will benefit the community where the
cooperative operates.
e. The remainder of the net surplus is allocated for interest on share capital and patronage
refund, as determined by the Board of Directors, under certain condition.
21. Gross Income- Credit Operation

2017 2016
Interest Income on Loans 4,549,034.10 4,516,815.92
Service Fees 982,385.38 905,690.00
Fines, Penalties, Surcharges 1,155,671.43 1,034,242.22
Gross Income- Credit 6,687,090.91 6,456,748.14
22. Other Income

2017 2016
Income/Interest from Investment/Deposits 222,176.48 445,024.82
Rental Income 346,400.00 315,280.00
Membership Fees 24,050.00 44,900.00
Miscellaneous Income 156,364.32 158,959.00
Gain on Sale of Property 0
Total 748,990.80 964,163.82
23. Expenses
2017 2016
Financing Costs:
Interest Expense on Deposits 572,562.55 453,946.83
Interest Expense on Borrowings 75,177.63 114,147.98
Selling and Admin Costs:

Salaries Expenses 1,359,749.30 1,284,512.36
Employees' Benefits 516,251.34 661,224.00
SSS, Philhealth & Pag Ibig Shares 154,621.45 105,943.70
Retirement Benefit Expense 90,000.00 100,000.00
Officers' Honorarium and Allowances 295,583.00 263,110.95
Incentives and Allowances 446,510.00 478,063.00
Litigation Expense 28,663.02 20,473.60
Store and Office Supplies Expense 109,531.22 81,950.64
Power, Light, and Water 203,167.46 200,323.03
Travel and Transportation 254,593.41 246,337.58
Insurance Expense 57,788.51 36,042.61
Repairs and Maintenance 67,357.15 87,716.16
Rentals 30,800.00 29,800.00
Taxes, Fees, and Charges 24,026.00 15,199.00
Communication 99,339.17 91,523.83
Gas, Oil, and Lubricants 134,670.15 85,032.20
General Support Services 112,446.86 111,857.69
Representation 194,850.65 157,474.32
Provision for Probable Losses on Loans
Receivable 124,590.27 114,196.36
Depreciation 275,692.73 287,665.59
Amortization 72,579.21 52,784.88
Professional Fees 52,222.22 50,000.00
Collection Expenses 208,211.81 110,757.94
Bank Charges 0 100
Miscellaneous Expense 60,938.41 35,495.03
Meetings and Conferences 19,386.40 20,642.57
General Assembly Meeting Expense 315,376.19 297,623.68
Members' Benefit Expense 12,000.00 21,500.00
Total 5,968,686.11 5,615,445.53

Project Simulation On Audit of Financial Statements: For Partial Requirement in The Course ACCT 514: Applied Auditing

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Project Simulation On Audit of Financial Statements: For Partial Requirement in The Course ACCT 514: Applied Auditing

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Republic of the Philippines

BATANGAS STATE UNIVERSITY

For Partial Requirement in the Course

Dao Ming Group

Banapra Development Cooperative is a primary multipurpose cooperative organized by

The auditors audited the accompanying financial statements of Banapra Development

Banapra Development Cooperative, herein referred to as the “Cooperative”, is a

November 23, 2018

Mrs. Yolanda Briones

Approved by: Accepted and agreed to:

ASSIGNMENT OF THE ENGAGEMENT PARTNER

PRELIMINARY ASSESSMENT OF INTERNAL CONTROL

documentation is in place and personnel know

The following is the computation for the audit risk:

Control Risk = 450/2500 = 18%

DRAFT OF AUDIT PROGRAM

Audit program is a set of procedures that an auditor believes is necessary to perform to

In addition, we also evaluated the qualitative aspects of the company’s accounting

FINAL AUDIT PROGRAM

ACTIVITY AUDIT TIME (hours)

Audit Program formulation 5 3

have been recorded appropriately

AUDIT EVIDENCE GATHERING PROCEDURES

We applied inspection as one of our audit procedure which involves examination of

SUBSTANTIVE AUDIT PROGRAM

Assertion Audit Objectives Audit Procedures

Assertion Audit Objectives Audit Procedures

Assertion Audit Objectives Audit Procedures

Audit Objectives Audit Procedures

E. Property, Plant and Equipment

Assertion Audit Objectives Audit Procedures

and Equipment and PAS 36

Assertion Audit Objectives Audit Procedures

Assertion Audit Objectives Audit Procedures

Presentation and Disclosure Equity accounts are properly  Evaluate financial

H. Income Statement Accounts

Assertion Audit Objectives Audit Procedures

AUDIT WORKING PAPERS

Audit Working Paper

Cash on Hand CIB China CIB CIB CIB

CIB CIB Maybank- CIB China CIB CIB CARD

CIB Eastwest CIB CIB China Petty Cash Merch. Inv.

Prepaid Due from Due from Due from E-Load &

Loans Probable Accounts Accounts Unused

Unused Miscellaneous Computer. Computer. Investment-

SEP 63,332.08 0.00 237,532.00 (105,569.76) 2,078.89

Investment- Investment- Investment- Investment- Credit

Batangas Land Building A/D- Building

A/D- Building Real & other Office A/D( Office Equipment-

A/DEquipment Furniture and A/DFurniture Transpo. A/DTranspo

MAY (11,894.33) 247,436.50 (187,232.92) 3,492,806.00 (864,832.56)

Other Savings Building Loan Loan

Accounts Accounts Time Deposits BPF Withholding

SSS SSS/Pag-Ibig Phlhealth Pag(Ibig CETF Due

Insurance Insurance Insurance Accr.E. Accr.E.

Retirement Share General Optional Community

Optional Fund Donation and Coop. Educ.

AUDIT WORKING PAPER

Interest Service Fines, Salaries and Incentives

Employees’ Members' Supplies Officers, SSS,

Int. Expense Int. Expense Rent Power, Light Travel and

Gas, Oil and Misc. Insurance Taxes & Meetings and

General Communicati Professional General Repairs &