PHILIPPINE NATIONAL POLICE NOTES TO FINANCIAL STATEMENTS

1. AGENCY PROFILE
By virtue of Republic Act (RA) 6975 otherwise known as An Act Establishing the Philippine National Police under a reorganized Department of the Interior and Local Government and Other Purposes, a highly effective and competent police force that is national in scope and civilian in character was established which ended the existence of the Philippine Constabulary and Integrated National Police in 1991. Also, as amended under RA 8551, otherwise known as the Philippine National Police Reform and Reorganization Act of 1998, the PNP was envisioned to be a community and service oriented agency, responsible for the maintenance of peace and order and public safety. For Calendar Year 2009, the operational requirements of the Philippine National Police came from the General Appropriations Act and Collections of Other Service Income. The agency also received inter-agency fund transfer from other government agencies in support of PNP projects.

2. BASIS OF FINANCIAL STATEMENTS PREPARATION

The Financial Statements of the Philippine National Police have been prepared in accordance with the Generally Accepted Accounting Principles and Standards and with the New Government Accounting System (NGAS). Included in the consolidated financial statements are transactions and accounts of the 17 Police Regional Offices and two Field Units with separate books of accounts, as follows: 1. 2. 3 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. National Capital Region Police Office (NCRPO) Police Regional Office Cordillera Autonomous Region (CAR) Police Regional Office 1 Police Regional Office 2 Police Regional Office 3 Police Regional Office 4A (CALABARZON) Police Regional Office 4B (MIMAROPA) Police Regional Office 5 Police Regional Office 6 Police Regional Office 7 Police Regional Office 8 Police Regional Office 9 Police Regional Office 10 Police Regional Office 11 Police Regional Office 12 Police Regional Office 13 13

17. 18. 19.

Police Regional Office - Autonomous Region for Muslim Mindanao (ARMM) Philippine National Training Institute (PNTI) Special Action Force (SAF)

3. SIGNIFICANT ACCOUNTING POLICIES

- Change in Accounting Policies 3.1 The cost of ending inventory of office supplies and materials and other inventory items are computed using the Moving Average Method. 3.2 Property, Plant and Equipment (PPE) are carried at cost less accumulated depreciation and obsolescence. For assets under construction, the Construction Period Theory was applied for costing purposes. Related expenses incurred during the construction of the project were capitalized and those incurred after the construction formed part of the operating cost. 3.3 The Straight line Method of depreciation is used in depreciating all depreciable PPE with estimated useful lives ranging from five to 10 years. A residual value computed at ten percent (10%) of the cost of asset and depreciation starts on the second month after purchase. - Change in Accounting Treatment 3.4 Accounts were reclassified with the current changes made by COA to conform to the New Chart of Accounts prescribed under COA Circular No. 2004008 dated September 20, 2004. 3.5 The agency uses the accrual basis of accounting.

4. CORRECTION OF FUNDAMENTAL ERRORS

Fundamental errors of prior years are corrected by using the Prior Years Adjustments account. Errors affecting current year operation are charged to the current years account. 5. CASH 5.1 Cash Collecting Officers amounting to P7,166,744.41 consists of the following:

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Particulars Undeposited collections and/or remaining accountabilities of eight accountable officers who are either relieved, transferred, retired or inactive Seven Collecting Officers with negative balance (For Reconciliation) Unreconciled balance between the general ledger and subsidiary ledger Undeposited collection of PSInsp Mercita P. Eya with case filed in the Quezon City Regional Trial Court (for adjustments to Due from Officers and Employees account) Total 5.2

Amount 1,876,248.86 ( 122,303.71) 4,396,836.09

1,015,963.17 P 7,166,744.41

Payroll Fund amounting to P14,402,645.48 represents cash advances granted to disbursing officers for the salaries and wages of officers and employees and other personnel benefits, to wit: PNP Units NHQ NCR SAF ARMM CAR PRO 4A PRO 4B PRO 7 PRO 10 PRO 11 TOTAL Amount P 780,143.50 3,954,616.00 527,310.00 89,037.90 583,560.00 224,769.81 3,896,386.00 2,045,977.00 2,000,023.31 300,821.96 P 14,402,645.48

In PRO IVB, portion of outstanding cash advances amounting to P2,299,152.00 pertains to cash advances granted to PCI Bernard B. Madrid and PSI Ludivina DI Ginauli amounting to P1,774,452.00 and P524,700.00 respectively, was reported lost due to robbery/hold-up incident on April 22,2009 resulting to death of the former. Requests for relief from money accountabilities were already filed before the Commission thru COA Region IV on August 17, 2009, but these were returned for some clarification. 5.3 Cash National Treasury, MDS of P190,358,900.46 represents the total checks issued during the last days of December 2009, but not yet claimed or released to claimants, as follows:

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PNP Units NHQ PNTI NCR ARMM CAR PRO 4A PRO 6 PRO 7 PRO 8 PRO 9 PRO 10 PRO 11 TOTAL 5.4

Amount P 158,256,033.16 4,000.00 4,988,623.43 4,386,313.00 737,854.67 103,847.08 2,242,896.25 215,941.07 964,225.56 8,347,195.65 8,815,250.34 1,296,720.25 P 190,358,900.46

Cash in Bank Local Currency, Current Account of P1,296,407,898.48 consists of collections of income from government service operations such as (a) firearms and explosives license fees, security guards and agencies license fees, motor vehicle clearance fees, police clearance fees, hospital and neuropsychiatric (NP) clearance fees; (b) fund transfers from other government agencies in support of PNP projects and fund transfers from Cash-National Treasury, MDS to CFC Account intended for the salaries and allowances of PNP personnel and pensions for the retirees and/or surviving legal beneficiaries. PNP Units NHQ PRO 1 PRO 2 PRO 3 PRO 4A PRO 4B PRO 5 PRO 6 PRO 7 PRO 8 PRO 9 PRO 10 PRO 11 PRO 12 PRO 13 ARMM SAF NCRPO Cordillera TOTAL Amount P1,150,215,566.89 5,354,768.32 7,623,972.25 1,684,618.03 2,015,680.95 1,552,437.30 5,943,372.55 27,606,549.75 10,484,121.63 7,778,778.22 6,459,338.35 12,416,962.87 16,042,584.66 1,663,040.75 4,996,696.65 10,160,091.73 29,104.63 16,785,010.04 7,595,202.91 P1,296,407,898.48

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5.5

Cash in Bank Local Currency, Savings Account in the amount of P386,529.36 represents collection to be remitted/transmitted to PNP-NHQ from neuro-psycho test, licenses/clearance fees, etc. of PROs, broken down as follows: PNP Units PRO 3 PRO 4A PRO 4B PRO 5 PRO 7 PRO 8 PRO 9 TOTAL Amount P 12,480.00 23,723.97 1,487.90 10,025.01 11,222.95 317,513.74 10,075.79 P 386,529.36

6. RECEIVABLES
6.1 The account Due from Officers and Employees consists of the following: Particulars Receivables from Mercita P Eya, former collecting officer with on-going case at the RTC, Quezon City Receivables from one PNP personnel for loss firearms (PRO 5) TOTAL 6.2 Amount P 10,341,808.83 62,000.00 P 10,403,808.83

The account Due from National Treasury in the amount of P62,595,672.38 consist of income collected and remitted to the Bureau of Treasury. This includes income from sale of aircraft in the amount of P3,466,480.35; collections from license and clearance fees of P8,000,000.00; and BCDA share (SF-170) in the amount of P51,129,192.03. The account Due from NGAs consists of the following: Particulars DBM, Procurement Service SAF, DPWH National Computer Center Various Debtors (PC/INP Account) Cashier, DILG COMELEC TOTAL Amount P 76,860,717.14 42,620,000.00 140,275,000.00 12,380,388.57 2,316,000.00 334,035.00 P 273,786,140.71

6.3

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The account represents fund transfers/cash advances granted by the PNP to other government agencies. The amount transferred to DBM, Procurement Service represents the agencys procurement request (APR) for various supplies and equipment. On the other hand, the amount advanced to the National Computer Center (NCC) was intended for the National Crime Information System (NCIS) Project of the PNP, which is yet to be settled. Further, the amounts of P12,380,388.57 (Various Debtors), P2,316,000.00 (Cashier, DILG), and P334,035.00 (COMELEC) pertain to PC/INP transactions forwarded in the books of the PNP with no supporting documents/list of debtors. 6.4 The Receivables-Disallowances/Charges consist of the following: Amount Forwarded balance from PC/INP books with no Listing of Debtors (NHQ) Disallowed Travel Expenses (PRO 7) Disallowances requested for write-off (PRO 12) TOTAL 6.5 P 817,956.58 209,252.50 358,963.10 P 1,386,172.18

The account Advances to Officers and employees consists of cash advances for intelligence expenses, travel and MOOE broken down as follows: PNP Units NHQ PRO 2 PRO 3 PRO 4A PRO 4B PRO 5 RPO 6 PRO 7 PRO 8 PRO 9 PRO 10 PRO 11 PRO 12 PRO 13 SAF NCRPO ARMM Cordillera TOTAL Amount 123,505,687.75 638,000.00 1,049,500.00 297,667.00 273,491.26 149,833.00 1,792,083.00 327,583.00 494,500.00 94,916.00 438,499.00 250,998.00 369,750.00 292,999.00 445,050.00 28,950,916.00 451,748.00 717,500.00 P160,540,721.01

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6.6Other Receivables account consists of the following: Office NHQ Particulars Amount Forwarded accounts of PC/INP P5,868,648.19 With no listing/schedule of debtors PRO 8 Other Receivable 70,681.73 Total P5,939,329.92

7. INVENTORIES
The total Inventories pertains to the following Office/Regions: PNP Units NHQ FAO 17 PRO 1 PRO 4A PRO 4B PRO 5 RPO 6 PRO 8 PRO 9 PRO 10 PRO 11 PRO 12 PRO 13 SAF NCRPO ARMM Cordillera TOTAL Amount P 1,529,915,784.36 776,270.00 31,980.00 9,552,397.33 248,208.33 7,774,996.77 5,995,557.00 9,358,255.09 1,230,459.00 329,915.00 275,602.10 4,297,000.00 2,771,250.00 475,000.00 15,830,692.00 3,335,749.60 147,620.00 P 1,592,346,736.58

The increase in Inventory for CY 2009 was due to the additional acquisition of inventories needed in the conduct of operations against organized crimes, antiinsurgency operations, campaign against kidnapping and illegal drugs and internal security operations (ISO).

8. PREPAYMENTS
8.1 Deposit on Letters of Credit in the amount of P499,132,217.65 represents marginal deposits opened with the Land Bank of the Philippines in favor of foreign suppliers thru their local representatives for the procurement of imported motor vehicles, equipment and ammunition to support the logistical requirements of the PNP nationwide.

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8.2

Advances to Contractors in the NHQ books are the deposits made to Petron Corporation for the procurement and supply of fuel, oil and petroleum products including lubricants and greases for the PNP-nationwide vehicles and the 15 percent mobilization fee, broken down as follows: PNP Units NHQ PRO 2 PRO 5 PRO 8 PRO 9 PRO 10 PRO 13 TOTAL Amount P 134,109,703.09 2,270,322.15 152,646.87 298,960.44 888,500.50 3,297,645.67 454,746.00 P 141,472,524.72

15% mobilization fee

8.3

Other Prepaid Expenses pertains to forwarded balance from PC/INP books of accounts with no listing of debtors

9. GUARANTY DEPOSITS
Guaranty Deposits are unliquidated deposits made to three banks, namely, Philippine Veterans Bank, Philippine National Bank and Pacific Banking Corporation, and other government and private institution for the procurement of foreign and local equipment and ammunitions in the years 1983 and earlier, transactions of which were carried in the PNP-NHQ books when the agency was formerly PC/INP. 10. PROPERTY, PLANT AND EQUIPMENT Property, Plant and Equipment in the total amount of P24,162,170,640.07 pertains to the following Office/Regions: PNP Units NHQ PRO 1 PRO 2 PRO 3 PRO 4A PRO 4B PRO 5 RPO 6 PRO 7 PRO 8 Amount P 13,043,746,371.71 474,239,551.79 422,438,369.68 1,666,569,474.87 796,785,269.93 205,408,810.27 675,468,450.23 544,014,924.80 908,779,346.55 365,203,624.29

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PNP Units PRO 9 PRO 10 PRO 11 PRO 12 PRO 13 SAF NCRPO ARMM Cordillera TOTAL

Amount 421,654,427.36 1,670,631,163.52 420,236,051.18 343,442,000.93 371,912,460.74 100,203,315.00 1,012,396,369.25 249,373,216.49 469,667,441.48 P 24,162,170,640.07

10.1 The increase in the Property, Plant & Equipment was the result of the continuous effort of the agency to book up assets found in station, reconciliation of the property and accounting records and additional acquisition of firearms, patrol vehicles and Civil Disturbance Management (CDM) equipment for the conduct of police operations and other related confidential activities. 10.2 Land represents the value of lots at PNP-NHQ and PROs where the Police Headquarters, operations and support units are located. Comparative figure with CY 2008 is broken down as follows: PNP Units NHQ CAR PRO 1 PRO 2 PRO 3 PRO 4A PRO 4B PRO 5 PRO 6 PRO 7 PRO 8 PRO 9 PRO 10 PRO 11 PRO 12 PRO 13 ARMM TOTAL 2009 P 3,810,733,166.98 31,584,766.80 15,888,698.50 15,553,128.80 968,475,893.00 237,307,902.66 271,000.14 67,959,072.00 14,483,145.00 490,199,187.00 43,573,670.06 7,900,168.00 1,338,472,120.00 134,464,978.40 28,076,909.00 18,981,390.00 13,755,870.00 P 7,237,681,066.34 2008 P 3,810,733,166.98 31,584,766.80 15,888,698.50 13,474,213.00 968,475,893.00 203,369,927.00 197,958.14 67,959,072.00 14,483,145.00 490,199,187.00 43,573,670.06 7,900,168.00 1,337,361,620.00 134,364,978.40 28,076,909.00 18,981,390.00 13,755,870.00 P 7,200,380,632.88

10.3 Cost of regular maintenance, repairs and minor replacements of PPE accounts are charged against Maintenance and Other Operating Expenses (MOOE) at the time of incurrence.

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10.4 Details of Accumulated Depreciation are as follows:

Particulars Land Land Improvement Electrification, Power, Energy Structures Office Buildings School Buildings Hospital and Health Centers Other Structures Office Equipment Furniture & Fixtures IT Equipment & Software Library Books Machineries Airport Equipment Communication Equt Construction & Heavy Equipment Firefighting Equipt Hospital Equipment Med., Dental & Lab Military & Police Equipment Sports Equipment Technical & Scientific Equipment Other Machineries Motor Vehicles Aircraft & Ground Equipment Watercrafts Other Transportation Other Property, Plant & Equipment Parks, Plazas, and Monuments Artesian Wells, Reser & Pumping Station CIP-Agency Assets CIP-Other Public Infra TOTAL Acquisition/ Historical Cost 7,237,681,066.34 60,163,166.58 55,386,013.48 2,717,996,265.91 416,000.00 61,518,888.19 886,364,499.37 273,198,526.85 73,629,509.49 385,027,366.80 4,680,237.80 927,995.21 47,225,020.00 1,587,888,989.49 1,364,000.00 174,663,757.28 49,682,796.20 110,902,125.02 3,514,199,457.25 288,803.50 159,936,648.55 261,932,828.51 5,055,162,353.29 251,001,998.05 245,638,123.66 320,473,530.37 59,329,208.02 21,181,400.00 Accumulated Depreciation -034,046,145.21 34,690,127.04 887,732,205.06 288,080.00 33,708,533.44 309,642,033.36 234,344,066.13 33,076,697.39 280,996,679.17 2,506,989.58 20,185.95 42,502,518.00 897,706,247.51 -0156,845,917.15 36,755,831.73 51,365,225.92 1,083,384,394.43 115,376.65 122,127,488.73 206,486,409.51 2,357,199,492.92 152,239,395.06 205,587,183.59 56,304,387.72 47,235,610.90 -0Book Value 7,237,681,066.34 26,117,021.37 20,695,886.44 1,830,264,060.85 127,920.00 27,810,354.75 576,722,466.01 38,854,460.72 40,552,812.10 104,030,687.63 2,173,248.22 907,809.26 4,722,502.00 690,182,741.98 1,364,000.00 17,817,840.13 12,926,964.47 59,536,899.10 2,430,815,062.82 173,426.85 37,809,159.82 55,446,419.00 2,697,962,860.37 98,762,602.99 40,050,940.07 264,169,142.65 12,093,597.12 21,181,400.00 29,258,500.76 503,448,551.73 11,535,512.37 P16,895,195,917.92

29,326,000.76 67,500.00 503,448,551.73 -011,535,512.37 -0P24,162,170,640.0 P7,266,974,722.1 7 5

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11. CURRENT LIABILITIES

11.1 Accounts Payable pertains to the obligations/liabilities/payables to various suppliers/contractors arising from the purchase of goods and services broken down as follows: PNP Units NHQ PNTI/FSO 17 NCRPO SAF ARMM CAR PRO 1 PRO 2 PRO 3 PRO 4A PRO 4B PRO 5 PRO 6 PRO 7 PRO 8 PRO 9 PRO 10 PRO 11 PRO 12 PRO 13 TOTAL Amount P 1,702,160,435.61 1,226,270.00 5,347,916.58 2,230,147.94 15,446,933.50 6,540,669.72 3,187,429.60 1,793,540.63 1,308,500.00 2,145,152.00 1,198,105.21 2,502,626.30 15,425,353.50 419,043.61 6,459,728.54 1,260,000.00 11,919,223.11 8,735,686.97 7,163,750.00 8,671,554.14 P 1,805,142,066.96

11.2 Due to Officers and Employees represents unpaid salaries, fringe benefits, emoluments and other claims of PNP personnel, broken down as follows: PNP Units NHQ FAO 17 NCRPO SAF ARMM CAR PRO 1 PRO 2 PRO 3 PRO 4A PRO 4B PRO 5 PRO 6 Amount P 1,703,166,774.57 39,856.70 19,173,899.03 669,085.50 6,213,360.23 1,235,171.75 261,150.71 977,542.90 519,087.56 1,526,942.33 4,271,036.05 1,554,923.84 11,453,733.75

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PNP Units PRO 7 PRO 8 PRO 9 PRO 10 PRO 11 PRO 12 PRO 13 TOTAL

Amount 3,136,962.72 2,019,689.04 8,344,606.65 9,574,341.33 1,477,891.03 3,425,735.31 291,386.53 P 1,779,333,177.53

11.3 Due to National Treasury represent the interest earnings from trust receipts which were not yet remitted as at year end. 11.4 Due to BIR, GSIS and PHILHEALTH represents premiums deductions withheld from the pay and allowances of PNP personnel and government share which will be remitted on the ensuing year. These are broken down as follows: PNP Units NHQ NCRPO SAF ARMM CAR PRO 4B PRO 7 PRO 9 PRO 12 TOTAL Due to BIR 42,971,005.91 319,612.01 9,087,003.79 1,012,816.56 354,389.25 6,035.72 4,936.26 55,305.01 P53,811,104.51 Due to GSIS Due to Pag-Ibig 47,449,579.44 27,357,720.80 11,089.63 100.00 Due to Philhealth 49,311,994.38 174.19

25,035.18 P47,485,704.25

69,628.61 900.00 P27,428,349.41

3,427.79 1,236.00 P49,316,832.36

11.5 Due to Other NGAs represents the balances of funds received by PNP from the following other National Government Agencies for the implementation of various projects: NHQ COMELEC NALECC CHED (Study Grant Program, DEPED) DPWH - NCR (PNP Project Oyster Fund) DFA (Asean Ministerial Meeting Fund) DILG (Asean Ministerial Meeting Fund) DILG (Election Fund) Presidential Anti-Graft Commission Sub-total NCRPO (DPWH-NCR) PRO 1 (Commission on Population Region I) P Amount 3,492,547.23 4,790.00 347,005.87 161,646.28 33,607.81 3,335.89 1.00 14,318,000.00 18,360,934.08 28,644,000.00 605,200.00

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PRO 4B (Presidential Management Staff) PRO 5 (Office of the Civil Defense, Regional Center No. V) Total

5,800.00 1,300,000.00 P 48,915,934.08

11.6 The account Due to Other GOCCs consists of the following: PCSO (AIDSOTF Fund) PCSO (Special Fund) PCSO (Financial Assistance Fund) PAGCOR (AIDSOTF Fund) POEA (Anti-Illegal Recruitment Fund) PCSO (PCRG Fund) PCSO (PNP Program Management Committee Fund) PCSO (Sweepstakes Operating Fund) PLDT/SMART Educational Assistance Program Fund Sub-total PRO 7 TOTAL Amount P 16,179,536.09 11,360.00 4,042,532.10 71,665.36 50,307.00 144.00 20,660,478.21 24,232,929.10 500,000.00 65,748,951.86 21,376.10 P 65,770,327.96

11.7 Other Payables consists of trust liabilities for remittance to various lending institutions, trust receipts and retirement gratuity of retired PNP officers and employees, broken down as follows: PNP Units NHQ NCRPO ARMM PRO 1 PRO 5 PRO 6 PRO 7 PRO 9 PRO 12 TOTAL Amount 879,770,843.18 568,977.97 2,012,534.55 2,050.00 2,371.08 2,787.41 163,382.05 453.00 703.52 P

11.8 Other Deferred Credits account consists of the following: NHQ UNDP PMO PSMBFI PNP Educ. Assistance Fund AFPGI Co. Japan Intl Coop. Agency Crime Lab Fund P Amount 228,223.90 7,748,400.96 10,991,788.85 3,014,341.02

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NHQ Council for the Welfare of children & Youth DIDM Fund Committee on Dangerous Drugs PNP AIDSOTF Fund First Gentlemen Foundation Inc. PLDT-Smart Educational Fund Hanns Seidel Foundation Human Rights Affairs Fund AFSLAI & PSSLAI PCRG Fund Sub Total PRO 5 TOTAL 12. PRIOR YEARS ADJUSTMENTS

Amount 85,223.10 950,000.00 31,120.00 100,000.00 534,472.20 2,000,000.00 P 25,683,570.03 62,000.00 P 25,745,570.03

This account represents liquidation of prior years cash advances, stale checks, payments/setting-up of liabilities for unrecorded expenses of prior years, issued supplies and materials in prior years and correction of errors, details of which are as follows: Particulars Adjustment on Accounts Payable Adjustment on Accumulated Depreciation Adjustment on Assets Adjustment on Cash Adjustment on Due to GOCC Adjustment on Due to Officers & Employees Adjustment on Due to Other NGAs Adjustment on Other Deferred Credits Adjustment on Prior Allocation Cancellation of Prior Years MDS Checks Cancellation of PYs Pay & Allow. (CFC/ATM) Cancellation of Prior Years Trust Checks Closing of Dormant Account Liquidation of POL Products Prior Years Bank Charges Prior Years Depreciation Expense Prior Years Disposal of Assets Prior Years Interest Income Prior Years Light Consumption Prior Years Liquidation of Cash Advances Prior Years Repairs & Maintenance Expense Amount P 47,756.92 (5,918,783.62) (71,642,132.29) (59.38) 249,856.00 19,274,443.93 (716,230.00) 330.00 (12,776,746.89) (27,774,787.70) 48,356,569.76 1,396,403.25 (797,063.26) (15,421,105.62) (228.30) 1,571,942.56 (67,882,840.05) 1,879,412.17 (21,864,063.89) (54,792,169.68) (299,950.00)

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Prior Years Supplies Expense Prior Years Telephone Expense Prior Years Traveling Expense Prior Years Trust Receipts Prior Years Water Consumption Provident Fund Reclassification of accounts Refund of Cash Advances Refund of Pay & Allowances Reversion of Accounts Payable Transfer of Assets Unrecorded Assets Sub-Total Adjustment made on Government Equity Transfer of Accounts Payables to PRO Transfer of Assets to PRO Adjustment of Due to Other GOCC Adjustment of Due to Other NGAs Adjustment of Offices Supplies Inventory Reversion of Accounts Payables Reversion of Other Payables Property, Plant & Equipment Provident Fund Overstatement of Assets Reversion of Excess Expenses Sub-Total TOTAL

(368,608,976.82) (3,500,381.38) (1,016,543.72) 42,436,745.57 (8,771,094.47) (305,987,007.92) (289,973.59) (10,000,000.00) 431,585.41 189,360.13 4,800,278.15 158,413,410.97 (P 699,012,043.76)

(P 829,649,329.12) 1,045,072,505.21 625,782.87 4,490,649.49 (6,294,595.30) 37,865,898.63 399,863.11 (214,832,430.01) 293,344,213.96 (2,500.00) 160.69 P 37,676,005.57 (P 661,336,038.19)

13. SUBSIDY INCOME FROM NATIONAL GOVERNMENT This account includes the following: Particulars NCA received from DBM for payment of expenses for Operational requirements Tax Remittance Advice (TRA) issued to BIR Total Less: Reversion of Unused NCA Balance Amount P 75,272,527,152.10 1,204,831,324.41 76,477,358,476.51 712,023,907.45
P

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75,765,334,569.0 6

Total Subsidy Income received from the Department of Budget and Management (DBM) for the payment of expenses intended for agency operational requirements and liabilities for calendar year 2009 amounting to P76,477,358, 476.51 were further broken down as follows: PNP Units NHQ PNTI/FSO 17 NCRPO SAF ARMM CAR PRO 1 PRO 2 PRO 3 PRO 4A PRO 4B PRO 5 PRO 6 PRO 7 PRO 8 PRO 9 PRO 10 PRO 11 PRO 12 PRO 13 TOTAL Amount P 74,654,842,116.89 1,323,000.00 319,459,536.09 26,151,723.06 83,112,128.55 77,334,674.72 87,076,692.41 84,109,163.40 141,680,101.71 100,566,055.58 62,561,225.43 121,720,171.80 115,722,191.99 96,941,624.89 111,614,623.10 74,822,075.54 92,689,077.46 84,110,062.77 72,570,603.61 68,951,627.51 P 76,477,358,476 .51

14. SUBSIDY INCOME FROM OTHER LGUs Subsidy Income from Other LGUs represents fund/support from various municipalities, broken down as follows: Recipient Source PRO 2 Various Municipalities PRO 7 Various Municipalities PRO 10 Various Municipalities PRO 13 Various Municipalities TOTAL Amount 2,251,579.00 2,410,000.00 5,500,000.00 2,500,000.00 P 12,661,579.00

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15. OTHER SERVICE INCOME Other Service Income composed of the following: Particulars Firearms /Explosive License Fees Motor Vehicle Clearances Forensic Services Firearms Amnesty Housing Board Neuro- Psycho Trust-PROs Collections Security Guards and Agencies License Fees PNP-DI Clearances Water-Concessionaires/PNP Qtrs Electricity-Concessionaires/PNP Qtrs Concessionaires Rental Hospital Fees Legal Assistance Fees Special Project Fund Total 16. INCOME FROM GRANTS AND DONATIONS Income from grants and donations composed of the following Office NHQ NCRPO CAR Particulars Japan International Cooperation Agencies PAGCOR Office of the President- PSF Office of the President- PMS AFPSLAI Total Amount 15,197,677.00 2,550,000.00 10,165,000.00 5,000,000.00 381,000.00 Amount 481,068,359.00 232,173,451.00 12,038,268.03 109,605,521.40 8,632,098.87 13,821,523.95 2,558,283.47 135,241,360.11 8,253,280.00 2,175,229.68 12,165,047.92 5,736,812.60 342,898.00 1,971,200.00 874,922.13 P

17. INTEREST INCOME Interest Income represents interest earned from Trust Account deposited with LBP, broken down as follows: PNP Units NHQ PRO 3 PRO 4A Source Trust Account Cash in Bank LCSA Cash in Bank LCSA 29 Amount 1,258,719.23 83.49 254.59

PNP Units PRO 5 PRO 7 TOTAL 18. EXPENSES

Source Cash in Bank LCSA Cash in Bank LCSA

Amount 152.92 24.23 P

The increase in expenses for CY 2009 was due to the additional expenses for the acquisitions/procurement of inventory supplies need in the conduct of operations against organized crimes, anti-insurgency operations, campaign against kidnapping and illegal drugs and internal security operations (ISO). 19. STATEMENT OF ALLOTMENT, OBLIGATIONS AND

BALANCES
Particulars
Current Appropriation Continuing Appropriation Total Less: Obligations Current Continuing Appropriation Total Balance P

PS
P59,082,807,960.00 -059,082,807,960.00 59,082,246,555.49 -059,082,246,555.49 561,404.51

MOOE
P14,981,277,568.00 371,449,431.18 15,352,726,999.18 14,271,645,356.93 369,826,742.36 14,641,472,099.29 P 711,254,899.89

CO
P2,107,129,900.00 1,315,420,716.32 3,422,550,616.32 1,280,481,306.01 1,300,658,487.53 2,581,139,793.54 P 841,410,822.78

TOTAL
P76,171,215,428.00 1,686,870,147.50 77,858,085,575.50 74,634,373,218.43 1,670,485,229.89 76,304,858,448.32 P 1,553,227,127.18

Total Obligations The agencys total obligations amounted to P1,706,103,303.61 as of December 31, 2009 broken down as follows: Amount Due and demandable P1,702,160,435.61 Not yet Due and Demandable 1,528,960.00 Unbook valid prior years obligations ___2,413,908.00 Total P1,706,103,303.61

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