Period

Type of Opinion
Name of the covered by Independent
Nature of Business Operation in the Audit
Auditee the FS under Auditor
Report
Audit
It provides a complete array of industry-
leading products and services including
Lending (corporate and consumer), December
BDO Romualdo V. Unqualified
Deposit-taking, Foreign Exchange, 31, 2015 and
Unibank Inc. Brokering, Trust and Investments, Credit 2014
Murcia III Opinion
Cards, Corporate Cash Management and
Remittances in the Philippines.
Promote and safeguard the
interests of the depositing EDUARDO D.
Philippine
public by providing insurance PADERNAL Qualified
Deposit December
coverage on insured bank State Auditor Opinion
Insurance 31, 2013
deposits to maintain faith and V Supervising -Limitation of scope
Corporation
confidence in the countrys Auditor
banking system.
Provide all citizens of the
Philippines with a mechanism
to gain financial access to
Philippine health services and to Ma. Sylva Z. Qualified
Health prioritize and accelerate the December Isiderio Opinion
Insurance provision of health services to 31, 2012 Supervising -Material
Corporation all Filipinos, especially the Auditor Misstatement
segment of the population
who cannot afford such
services.

A specialized lending
institution for the promotion,
MA. NANCY J.
Local Water financing, and overseeing of
UY Officer in
Utilities the development of water December
Charge Adverse Opinion
Administratio supply systems in provincial 31, 2013
Supervising
n cities and municipalities
Auditor
outside of Metropolitan
Manila.
National Roberto Z.
Irrigation December Rabulan Disclaimer
Administratio 31, 2011 Supervising Opinion
n Auditor
Report of Independent Auditors

The Board of Directors BDO Private Bank, Inc.

2nd Floor, BDO Equitable Tower
8751 Paseo de Roxas, Makati City

We have audited the accompanying financial statements of BDO Private

Bank, Inc., which comprise the statements of financial position as at December 31,
2015 and 2014, and the statements of income, statements of comprehensive
income, statements of changes in equity and statements of cash flows for the years
then ended, and a summary of significant accounting policies and other explanatory
information.

MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of these

financial statements in accordance with Philippine Financial Reporting Standards,
and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement,
whether due to fraud or error.

AUDITORS RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements

based on our audits. We conducted our audits in accordance with Philippine
Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement. An audit
involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entitys
preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entitys internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.

OPINION

In our opinion, the financial statements present fairly, in all material respects,
the financial position of BDO Private Bank, Inc. as at December 31, 2015 and 2014,
and its financial performance and its cash flows for the years then ended in
accordance with Philippine Financial Reporting Standards.
EMPHASIS OF A MATTER

As discussed in Note 23 to the financial statements, the Bank presented the

supplementary information required by the Bureau of Internal Revenue for the year
ended December 31, 2015 in a supplementary schedule filed separately from the
basic financial statements. Such supplementary information is the responsibility of
management. The supplementary information is presented for purposes of
additional analysis and is not a required part of the basic financial statements
prepared in accordance with Philippine Financial Reporting Standards; it is neither a
required disclosure under the Philippine Securities and Exchange Commission rules
and regulations covering the form and content of financial statements under
Securities Regulation Code Rule 68.
Independent Auditors Report

THE BOARD OF DIRECTORS

Philippine Deposit Insurance Corporation
Makati City

We have audited the accompanying financial statements of Philippine Deposit

Insurance Corporation which comprise the statement of financial position as at
December 31, 2013, statement of income, statement of comprehensive income,
statement of changes in deposit insurance fund, and statement of cash flows for the
year then ended, and a summary of significant accounting policies and other
explanatory information.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these -

financial statements in accordance with Philippine Financial Reporting Standards,
and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement,
whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements

based on our audit. We conducted our audit in accordance with International
Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement. An audit
involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entitys
preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entitys internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for
our qualified audit opinion.

Basis for Qualified Opinion

The reliability of the Loans-Non-interest bearing notes amounting to P3.932

billion is doubtful due to the absence of transfer documents to substantiate or
provide proof of existence/ownership of the assets purchased with book value of
P3.841 billion under the Financial Assistance Agreement, contrary to Paragraph 31
of the Framework for the Preparation and Presentation of Financial Statements, and
Section 4 (6) of Presidential Decree No. 1445.

Qualified Opinion

In our opinion, except for the effects of the matters discussed in the Basis for
Qualified Opinion paragraph, the financial statements present fairly, in all material
respects, the financial position of Philippine Deposit Insurance Corporation as at
December 31, 2013, and its financial performance and its cash flows for the year
then ended in accordance with Philippine Financial Reporting Standards.

Other Matter

As discussed in Note 13 to the financial statements, the loans payable to

Bangko Sentral ng Pilipinas (BSP) were revalued at amortized cost from historical
cost in 2012 in accordance with the Corporations early adoption of PFRS 9.
However, the restated amount did not include the accrued interest claimed by BSP
amounting to P1.439 billion since PDIC did not record it in its books of accounts due
to unresolved issue on the interpretation of Section 1.02 of the Loan Agreement
between BSP and PDIC. Under the loan agreement, an interest at the rate of two
percent lower than the interest charges to the government obligations shall be paid
by PDIC at the end of the following month after receipt of payment. PDIC stood fi rm
on its stand that there should be no accrual of interest on said loan considering that
the source of repayment was from collections of the underlying government loan
accounts, hence it was not possible to ascertain beforehand interest that may be
collected therefrom. Nevertheless, both parties agreed to elevate the matter to the
Department of Justice for adjudication and resolution.

Report on the Supplementary Information Required Under Revenue Regulations 15-

2010

Our audit was conducted for the purpose of forming an opinion on the basic -
financial statements taken as a whole. The supplementary information required by
the Bureau of Internal Revenue on taxes, duties and license fees disclosed in Note
21 to the financial statements is presented for purposes of additional analysis and is
not a required part of financial statements prepared in accordance with Philippine
Financial Reporting Standards. Such supplementary information has been subjected
to the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated, in all material respects, in relation to the basic -
financial statements taken as a whole.
INDEPENDENT AUDITORS REPORT

The Board of Directors

Philippine Health Insurance Corporation
City-state Centre
Shaw Boulevard, Pasig City

We have audited the accompanying financial statements of the Philippine

Health Insurance Corporation, which comprise the balance sheet as at December
31, 2012, and the statement of income, statement of changes in equity and cash
flow statement for the year then ended, and a summary of significant accounting
policies and other explanatory information.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these

financial statements in accordance with State accounting principles, and for such
internal control as management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to
fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements

based on our audit. We conducted our audit in accordance with International
Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material misstatement. An audit
involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entitys
preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entitys internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.

Basis for Qualified Opinion

As discussed in Part II A-Comments and Observations of this report, our audit

disclosed the following observations that were considered in forming our opinion: 1)
Collections of the advance payment of premium contributions were recorded as
current years income resulting in the understatement of Deferred Credits by about
P105.90 Million and overstatement of current years income Premium Contribution-
Individual Paying Member (IPM) by P87.69 Million and Premium Contribution-OFW by
P18.22 Million. Said accounting treatment of the advance payment of premium
contributions was not in conformity with the Philippine Accounting Standard (PAS) 1
and COA Circular No. 2001-04 dated October 30, 2001; 2) Unreconciled amounts of
P156.467 Million and P4.108 Million as of December 2012, between the balance per
books and inventory reports for Property and Equipment and Inventories,
respectively, rendered the balances of the accounts unreliable.

Qualified Opinion

In our opinion, except for the effects of the matters described in the Basis for
Qualified Opinion paragraphs, the financial statements present fairly, in all material
respects, the financial position of the Philippine Health Insurance Corporation as at
December 31, 2012 and of its financial performance and its cash flows for the year
then ended in accordance with State accounting principles.
INDEPENDENT AUDITORS REPORT

THE BOARD OF TRUSTEES

Local Water Utilities Administration
Balara, Quezon City

Report on the Financial Statements

We have audited the accompanying financial statements of Local Water

Utilities Administration (LWUA), which comprise the statement of financial position
as at December 31, 2013, and the statement of comprehensive income, statement
of changes in equity and statement of cash flows for the year then ended, and a
summary of significant accounting policies and other explanatory information.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these

financial statements in accordance with state accounting principles generally
accepted in the Philippines, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements

based on our audit. We conducted our audit in accordance with Philippine Standards
on Auditing. Those standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit involves
performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risks
assessments, the auditor considers internal control relevant to the entitys
preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entitys internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by Management, as well as
evaluating the overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for
our adverse audit opinion.

Basis for Adverse Opinion

 1. Of the previous years reported fund releases to 231 water districts
recorded under Receivables from Water Districts (RWD) President Social Fund
(PSF) totaling P2.362 billion under the Non-LWUA Initiated Fund (NLIF) PSF, which
were found irregular and not valid due to non-receipt of the supposed funding from
the PSF, the amount of P2.248 billion remained not properly/fully accounted for and
not supported with financial assistance contracts which are the agreements
between LWUA and WDs covering the loan extended by the former to the latter.
Hence, the validity and propriety of the reported year-end balance of the
Receivables from Water Districts - PSF at P1.508 billion was questionable.
2.) Of the fund releases made by National Government and other government
agencies to LWUA as trust funds, under account, Other Payables - Liability for
Special Funds totaling P1.023 billion, the amount of P55.929 million was withdrawn
and used for other purposes. Also, fund transfers totaling P505.316 million made
from the Collection Accounts of WDs to LWUA Equity Account were questionable as
the said LWUA Equity Account is exclusively for deposit of funds received from
government and other agencies and for withdrawals for the utilization of the
intended beneficiaries for specific purpose.
3.) The carrying amount of Long-Term Investments amounting to P511.659
million was not properly stated due to non-recognition of the accounts at their
recoverable amount as of December 31, 2013, contrary to PAS No. 36.
4.) The year-end balance of account Deferred Income from Feasibility Studies
(FS) and Construction Supervision Cost (CSC) at P148.454 million remained inactive
since 2009, and was not properly stated as no amortization of service income had
been effected.
5.) Long-term Loans ReceivableRWSA in Progress with year-end balance of
P21.648 million were not documented and with inadequate provision of allowance
for doubtful accounts. Hence, the validity and accuracy of the account balance
could not be ascertained 6. The excessive and unauthorized payment of meal
allowances, hospitalization/medical benefits and lack of legal basis for payment of
provident fund employer share amounting to P40.721 million were disallowed,
resulting in the overstatement of operating expenses and understatement of net
income.

Adverse Opinion

In our opinion, because of the significance of the matters discussed in the

Basis for Adverse Opinion paragraph, the financial statements do not present fairly,
in all material respects, the financial position of the LWUA as at December 31, 2013,
and of its financial performance and its cash flows for the year then ended in
accordance with state accounting principles generally accepted in the Philippines.

Report on the Supplementary Information Required Under Revenue Regulations 15-

2010

Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information on taxes,
duties and license fees in Note 29 to the financial statements is presented for
purposes of filing with the Bureau of Internal Revenue and is not a required part of
the basic financial statements. Such information is the responsibility of
management. Because of the significance of the matters described in the Basis for
Adverse Opinion paragraphs, it is inappropriate to and we do not express an opinion
on the information referred to above.

COMMISSION ON AUDIT
MA. NANCY J. UY
Supervising Auditor
INDEPENDENT AUDITORS REPORT

The Board of Directors

National Irrigation Administration
EDSA, Quezon City

We have audited the accompanying financial statements of the National

Irrigation Administration Corporate Fund (F501), which comprise the balance sheet
as of December 31, 2011, and the income statement, statement of changes in
equity and statement of cash flows for the year then ended, and a summary of
significant accounting policies and other explanatory information.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these

financial statements in accordance with State accounting principles, and for such
internal control as management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to
fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements

based on conducting the audit in accordance with Philippine Standards on Auditing.
Because of the matters described in the following paragraph, however, we were not
able to obtain sufficient appropriate audit evidence to provide a basis for an audit
opinion.

Basis for Disclaimer of Opinion

As discussed in Part II.A - Comments and Observations, our audit disclosed

the following which we consider in forming our audit opinion:
1. The existence, valuation and accuracy of Property, Plant and Equipment
(PPE) accounts stated at P36,921.526 million as of December 31, 2011 were not
ascertained due to the non-conduct/non-submission of physical inventory report in
some NIA Regional Offices for PPE totaling P1,230.587 million; non-preparation and
maintenance of subsidiary ledgers and property/construction-in-progress ledger
cards totaling P1,520.216 million; non-reconciliation of property and accounting
records with discrepancy amounting to P2,295.427 million; non-recording of assets
purchased and donated; and non-reclassification of long completed projects costing
P59.103 million to the proper PPE accounts. (Comments and Observations No. 1)
2. The accuracy and validity of Accounts Receivable with year-end
aggregated balance of P16,461.603 million were not established due to the absence
of subsidiary ledgers for accounts of individual farmers and other debtors totaling
P644.345 million and unsupported/undocumented balances of Accounts Receivable
irrigators service fee (ISF) totaling P953.346 million. Also, Receivables in NIA RO
1, 12, 13 and CAR totaling P430.658 million were dormant for 7 to 15 years.
(Comments and Observations No. 2)
3. The existence, validity and accuracy of Cash-in-Bank accounts totaling
P684.284 million could not be substantiated due to non-preparation/updating of
Bank Reconciliation Statements (BRS) for account balances totaling P98.096 million;
non-reconciliation of bank and book balances with discrepancy totaling P16.791
million; non-maintenance/improperly maintained subsidiary ledgers for accounts
with negative balances of P151.457 million; existence of dormant accounts totaling
P54.106 million; and existence of accounts with abnormal balances of P189.615
million. Likewise, fund transfers amounting to P12.019 million were made from the
General Fund to Corporate Fund contrary to Section 37 of PD 1177 and Section 4 of
PD 1445. Further, among the reconciling items for the BRS for December 2011 of
account Philippine National Bank (PNB) Current Account were unrecorded
disbursements prior to 1988 amounting to P151.656 million which remained
undocumented. (Comments and Observations No. 3)
4. The accuracy and validity of the year-end balance of Due to Other NGAs
stated at P13,123.691 million was not correctly stated as its sub-account, Due to BTr
- Casecnan, with a balance of P13,195.785 million showed a huge variance of
P42,179.966 million as compared with the BTrs records at P55,303.657 million, with
the variance pertaining to the advances made by the BTr to California Energy
Casecnan Water and Energy (CECWE) and the same remained unrecorded in NIAs
books as at year-end. Likewise, Inter/Intra-Agency Payables and Other Payables
amounting to P31.836 million were of doubtful validity due to lack of subsidiary
records and were still dormant for several years. (Comments and Observations No.
4)
5. Elimination of reciprocal accounts, namely: Due to Central Office, Due
from Central Office, Due to Regional Offices and Due from Regional Offices in the
consolidation of balance sheet accounts resulted in a discrepancy of P492.679
million in receivable and P60.411 million in payable. These accounts should have
zero balance after elimination, hence, the accuracy and validity of the reciprocal
accounts was doubtful. (Comments and Observations No. 5)

Disclaimer of Opinion

Because of the significance of the matters described in the Basis for

Disclaimer of Opinion paragraph, we have not been able to obtain sufficient
appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we
do not express an opinion on the financial statements.
References:

https://www.bdo.com.ph/sites/default/files/pdf/BDO_PrivateBank_2015.pdf

https://www.bdo.com.ph/about-bdo/business-operation

https://www.pdic.gov.ph/index.php?nid1=1&nid2=2

https://www.pdic.gov.ph/files/TransparencyPage/fs2013.pdf

https://www.philhealth.gov.ph/about_us/annual_report/PhilHealth_2012_COAAudited
FS.pdf

http://www.lwua.gov.ph/transparency_14/2013_files/AAR_2013.pdf

http://www.nia.gov.ph/sites/default/files/pdf_reader/2011_NIACorpFund.pdf