FILM DEVELOPMENT COUNCIL OF THE PHILIPPINES

Notes to Financial Statements

For the year ended December 31, 2016

1. General Information/Agency Profile

The FDCP was created by virtue of RA No. 9167 on June 7, 2002. The creation of
FDCP is pursuant to the constitutional guarantee of freedom of expression by
which the state, as a policy, recognizes the need to promote and support the
development and growth of the local film industry as a medium for the upliftment
of aesthetic, cultural, and social values for the better understanding and
appreciation of the Filipino identity. The PFESO of FDCP was likewise created
by virtue of EO No. 674 dated October 30, 2007 mandated to maximize the
countrys comparative advantage as a location site for international movie and
television, enhance linkages and collaboration with foreign film producers and
encourage foreign movie and television makers to produce their films in the
country. On June 15, 2009, EO No. 674-A was issued to amend EO No. 674 to
include the DFA as one of the members in addition to the seven previous members
from the Department of Tourism, Department of Trade and Industry, Department
of Interior and Local Government, DND, Bureau of Customs, Bureau of Internal
Revenue (BIR) and Bureau of Immigration of the Philippine Film Export
Services.

Pursuant to RA No. 9167, the FDCP is authorized to collect amusement tax for
graded films from theater proprietors, operators and lessees of theaters or cinemas
within Metro Manila and highly urbanized and independent cities in the
Philippines of which 100 percent will be rebated to producers for films graded
A and 65 percent for films graded B. The remaining 35 percent share for
films may be utilized by the FDCP to augment its operational expenses. Further,
the FDCP can impose reasonable fees and charges for services rendered which it
may also utilize to augment its operational expenses.

By virtue of Permanent Committee Resolution (PCR) No. 01-2006, the FDCP was
granted the authority to establish a Revolving Fund. The Fund is intended to
stimulate economic activity in the film industry and encourage the production of
quality films.

On April 17, 2012, President Benigno S. Aquino III, issued AO No. 26

Prescribing the Rules on the Deposit of Copies of Films and Other Audio-Visuals

1
to the National Film Archive which directed all departments, agencies and
offices of the National Government, including government-owned or-controlled
corporations, to turn-over their existing original copies of films and other
audiovisual negatives, prints, or digital files, including but not limited to movie
films, documentaries and animation to the FDCP- NFAPs care, preservation and
reconstruction.

The Agencys registered office is located in 855 T.M. Kalaw St., Ermita, Manila.

2. Statement of Compliance and Basis of Preparation of Financial

Statements

The financial statements have been prepared in accordance with and comply with
the Philippine Public Sector Accounting Standards prescribed by the Commission
on Audit under COA Resolution No. 2014-003 dated January 24, 2014.

FDCP maintains three fund clusters, which are Regular Agency Fund, Special
Accounts Locally Funded Fund and Revolving Fund Film Fund.

Regular Agency Fund is funded out of the approved budget from

the General Appropriations Act (GAA).
Special Accounts Locally Funded Fund is sourced from
collections and share from amusement taxes to cover the Maintenance and
Other Operating Expenses (MOOE) and Capital Outlay (CO) of FDCP.
Film Fund was established pursuant to Permanent Committee
Resolution (PCR) No. 01-2006 dated November 15, 2006 to provide
financing to Filipino producers in the form of equity investment in film
production.

The Financial Statements of the FDCP were authorized for issue by the
Management on February 14, 2017.

3. Summary of Significant Accounting Policies and Other Information

3.1 Basis of Accounting

The FDCP uses accrual basis of accounting. All expenses are recognized
in the accounting records when incurred and reported in the financial

2
 statements of the period to which they relate. Income is on accrual basis
except for transactions where accrual basis is impractical or some other
methods are required by law.

The accounts were reclassified in conformity with the Revised Chart of

Accounts prescribed under COA Circular No. 2013-002 dated January 30,
2013.

3.2 Adjustments, Restatement and Correction of Fundamental Errors

Adjustments for changes in accounting policies and restatements to correct

fundamental errors in prior years are made retrospectively to the extent
practicable, using the Accumulated Surplus/(Deficit) account. The effects
of changes in accounting estimates and correction of errors affecting the
current years operations are reflected using the current years accounts.

3.3 Cash and cash equivalents

Cash and cash equivalents comprises of cash in bank in Film Fund and
revenue collections remitted to the National Treasury under the Special
Account in the General Fund (SAGF). Collections of amusement taxes
and other income of the agency are immediately remitted to the account of
the National Treasury through AABs/AGDBs.

3.4 Inventories

Inventories are accounted for under the Perpetual Inventory System. They
are initially recognized at cost and subsequently measured using the
Weighted Average Method.

Inventories are recorded as current assets. When they are distributed or

disposed, their carrying amount is recognized as an expense.

3.5 Property, Plant and Equipment (PPE)

PPEs are measured at cost and carried at cost less accumulated

depreciation and accumulated impairment loss, if any.

3
 FDCP adopts the straight line method of depreciation using the Schedule
of Estimated Useful Life of PPE prescribed by COA and applying a
residual value equivalent to at least five percent of the cost of the PPE.

Depreciation begins when the PPE is available for use such as when it is in
the location and condition necessary for it to be capable of operating as
intended. It is computed for one month if the PPE is available for use on
or before the 15th of the month. However, if the PPE is available for use
after the 15th of the month, depreciation starts in the succeeding month.
The depreciation charge for each period is recognized as expense.

3.6 Revenue/Income

Revenue/Income is measured at the fair value of the consideration received

or receivable.

3.7 Budget Information

The annual budget is prepared on a cash basis and is published in the

government website. As a result of the adoption of the cash basis for
budgeting purposes, a separate Statement of Comparison of Budget and
Actual Amounts is presented showing the basis, timing or entity
differences. Explanatory comments are provided in the notes to the annual
financial statements; first, the reasons for overall growth or decline in the
budget are stated, followed by the details of overspending or
underspending on the items.

3.8 Events after the Reporting Date

There are no material non-adjusting events and transactions after the

reporting date that would influence the opinion and decision of users taken
on the basis of the financial statements.

4
3.9 Related Party Transactions

The FDCP is under the supervision and control of the Office of the
President as Other Executive Office.

Key Management Personnel

The key management personnel are the Chairman, Executive Director III
and Executive Director I.

Key Management Personnel Remuneration

The aggregate remunerations of the key management personnel

determined on a fulltime equivalent basis are as follows:

Aggregate Remuneration (P)

Executive
Particulars Executive
Chairman Director
Director I
III
No. of Personnel 1 1 1

1,311,480.0 928,739.9
726,840.00
Salaries and Wages 3 9
171,000.0
117,000.00 171,000.00
Other Compensation 0
310,304.0
494,270.00 248,166.00
Other Personnel Benefits 0
1,922,750.0 1,146,006.0 1,410,043
Total 3 0 .99

5
 Remuneration and Other Benefits Provided to Close Family Members
of Key Management Personnel

During the reporting period, there were no close family members of key
management officials who received remuneration from the agency.

Supporting Information to the Statement of Financial Position

4. Cash and Cash Equivalents

This account pertains to the Cash-In-Bank- Local Currency, Current

Account and Cash-Treasury/Agency Deposit, Regular and Special
Account, as follows:

Amount (P)
Account
2016 2015
Regular Account Fund
Cash Treasury/Agency Deposit, Regular Account - -
Special Account Fund
17,273,495.2
Cash - Treasury/Agency Deposit, Special Account 4,164,153.84
1
Film Fund
Cash in Bank - Local Currency, Current Account 6,992,254.77 6,981,556.62
24,255,051.8
11,156,408.61
Grand Total 3

Cash-In-Bank- Local Currency, Current Account consists of the remaining

available cash in the current account for the Film Fund of P6,992,254.77
from the original revolving fund of P25,000,000.00 established per PCR
No. 01-2006 intended to stimulate economic activity in the Philippines
and encourage production of Filipino films.

Cash - Treasury/Agency Deposit, Special Account of P4,164,153.84

pertains to income collected and remitted to the National Treasury under
the SAGF and is credited when there is receipt of Notice of Cash
Allocation.

6
5. Receivables

This account consist of the following:

Amount (P)
Account
2016 2015
Regular Agency Fund
Due from National Government Agencies 3,156,267.18 2,508,758.36
Due from Officers and Employees 5,384.03 204,448.31
Due from NGOs/POs - 2,250,000.00
Sub-total 3,161,651.21 4,803,944.23
Special Account Fund
Accounts Receivable (net) 132,376,069.88 139,797,403.50
3,091,498,170.
4,791,518.45
Other Receivables 63
3,231,295,574.
137,167,588.33
Sub-total 13
Film Fund
Loans Receivable - others (net) 17,220,800.19 17,190,800.21
Sub-total 17,220,800.19 17,190,800.21
3,253,449,581.
157,550,038.73
Grand Total 01

Due from National Government Agencies with the amount of

P1,754,421.92 represents undelivered goods/supplies from the DBM-
Procurement Service as of year-end and P1,401,845.26 for the
unliquidated fund transfer to the Independent Cinema Association (ICAP)
through the NCCA for the holding of the 10th Cine Manila International
Film Festival.

Due from Officers and Employees amounting to P5,384.03 pertains to

refunds of liquidated cash advances of officers and employees. These are
all paid in 2017.

Accounts Receivable (net) of P132,376,069.88 pertains to unpaid

amusement taxes due to FDCP by theater owners/lessors for films graded
A and B by the Cinema Evaluation Board.

Loans Receivable (net) of P17,220,800.19 pertains to loans granted by

FDCP to different films but the producers of the films were unable to pay
back FDCP for the reason that the films did not make good in the box

7
 office. Some of these films were already turned-over to FDCP in the film
archive and utilized by FDCP in its Sineng Pambansa Program. Among
those films were Faces of Love by National Artist, the late Eddie
Romero, Iliw by Blue Art Design, Donsol by Bicycle Pictures, and
Red Shoes by Unitel Productions.

Other Receivables of P4,791,518.45 represents P3,770,000.00 from

undelivered projects on grants given to various filmmakers for production
of films to be shown in the Sineng Pambansa Film Festivals and
P1,021,518.45 receivables from ticket sales of Sineng Pambansa.

Director Lav Indico Diaz P1,340,000 for the film Hele (CY
2015)
400,000 for the film Dystoria (2016)
Director Gil M. Portes P30,000.00 for the film Hermano Puli
(CY2015)
Director Amable Aguiluz VI P1,300,000 for the film Eman (CY
2013)
Abraham I Dalagan P400,000 for the film Shiekh Makhdum (CY
2012)
Jose Lorenzo Diokno P300,000 for the documentary film Martial
Law Stories (CY 2012)

The Aging/Analysis of Receivables as of December 31, 2016 and 2015 is

as follows:

2016 Past Due

Current >30-60 days >60 days Total
Accounts
(P) (P) (P) (P)
Accounts Receivable 1,776,913.23 39,662,925.53 90,936,231.12 132,376,069.88
Loans Receivable others - - 17,220,800.19 17,220,800.19
Due from National
Government Agencies - - 3,156,267.18 3,156,267.18
Due from Officers and
Employees 5,384.03 - - 5,384.03
Other Receivables - - 4,791,518.45 4,791,518.45
Total 1,782,297.26 39,662,925.53 116,104,816.94 157,550,038.73

2015 Past Due

Total
Current >30-60 days >60 days
Accounts (P)
(P) (P) (P)
8
Accounts Receivable - 24,003,403.49 115,794,000.01 139,797,403.50
Loans Receivable others - - 17,190,800.21 17,190,800.21
Due from National - 2,508,758.36 2,508,758.36
-
Government Agencies
Due from Peoples - 2,250,000.00 2,250,000.00
-
Organization
Due from Officers and - - 204,448.31
204,448.31
Employees
Other Receivables - - 3,091,498,170.63 3,091,498,170.63
Total 204,448.31 24,003,403.493,229,241,729.21 3,253,449,581.01

6. Inventories

This account consists of:

Amount (P)
Account
2016 2015
Office Supplies Inventory 357,779.59 344,483.77
Accountable Forms Inventory 301,800.00 294,000.00
Total 659,579.59 638,483.77

Office Supplies Inventory represents common office supplies like bond

papers, sign pens, staplers, data folders and the like.

Accountable Forms, Plates and Stickers Inventory consists of cost of

checks, official receipts, postage stamps used for mailing correspondence
and other mail matters.

2016
Special
Regular Accounts
Particulars Total
Agency Fund
(P)
Fund (P) (P)
Carrying Amount, January 1 638,483.77 - 33,652.44
Purchases/Acquisition 1,153,907.08 - 1,153,907.08
(1,132,811.2 - (1,132,811.2
Expensed during the year 6) 6)
Carrying Amount, December 31 659,579.59 - 659,579.59

9
 2015
Regular Special
Particulars Agency Accounts Total
Fund (P) Fund (P) (P)
Carrying Amount, January 1 33,652.44 - 33,652.44
Purchases/Acquisition 1,795,464.28 1,795,464.28
(1,190,632.9 - (1,190,632.9
Expensed during the year 5) 5)
Carrying Amount, December 31 638,483.77 638,483.77

7. Other Current Assets

This account consists of:

Amount (P)
Account
2016 2015
Regular Agency Fund
Prepaid Insurance 3,123.85 261,677.06
Other Prepayments 37,935.55 194,166.63
Other Deposits 1,136,651.06 1,243,370.21
Sub-total 1,177,710.46 1,699,213.90
Special Account Fund
Other Deposits 0.00 491,930.66
Sub-total 0.00 491,930.66
Grand Total 1,177,710.46 2,191,144.56

8. Property, Plant and Equipment

This group of accounts consists of:

Additions/
Adjustments/
Carrying Acquisitio Total Depreciation Carrying
Particulars Reclassification
Amount Jan. ns (P) (P) Amount Dec. 31,
(P)
1, 2016 (P) (P) 2016 (P)
Buildings and Other Structures 2,961,734.58 - (17,912.31) 2,943,822.27 (56,722.62) 2,887,099.65
Machinery and Equipment 2,994,795.98 - (922,466.20) 2,072,329.78 (317,943.86) 1,754,385.92
Transportation Equipment 1,834,893.92 - - 1,834,893.92 (405,938.90) 1,428,955.03
Furniture, Fixtures and Books 6,354,136.24 - (6,140,567.66) 213,568.58 (35,961.39) 177,607.19
Leased Assets Improvements 3,092,132.62 827,496.78 - 3,919,629.40 (703,905.83) 3,215,723.57
Other Property, Plant and
Equipment 15,679,377.47 (4,068,006.83) 11,611,370.64 (2,609,932.17) 9,001,438.47
Total 32,917,070.82 827,496.78 (11,148,953.00) 22,595,614.60 (4,130,404.77) 18,465,209.83

10
 Carrying Additions/ Adjustments/ Carrying
Total Depreciation
Particulars Amount Jan. Acquisitions Reclassification Amount Dec. 31,
(P) (P)
1, 2015 (P) (P) (P) 2015 (P)
Buildings and Other Structures 3,170,842.52 113,315.38 - 3,284,157.90 (322,423.32) 2,961,734.58
Machinery and Equipment 2,655,113.08 1,198,216.83 - 3,853,329.91 (858,533.93) 2,994,795.98
Transportation Equipment 2,152,291.92 - - 2,152,291.92 (317,398.00) 1,834,893.92
Furniture, Fixtures and Books 4,363,338.28 2,562,321.26 - 6,925,659.54 (571,523.30) 6,354,136.24
Leased Assets Improvements 4,672,708.25 (95,403.07) 4,577,305.18 (1,485,172.56) 3,092,132.62
Other Property, Plant and
Equipment 6,565,219.69 4,698,254.20 - 11,263,473.89 (2,259,566.14) 9,003,907.75
Total 23,579,513.74 8,572,107.67 (95,403.07) 32,056,218.34 (5,814,617.25) 26,241,601.09

2016
Carrying
Particulars Cost (P) Accumulated Amount, Dec.
Depreciation (P) 31, 2016(P)
Buildings and Other Structures 5,234,961.57 2,347,861.92 2,887,099.65
Machinery and Equipment 4,735,758.03 2,981,372.11 1,754,385.92
Transportation Equipment 3,086,167.36 1,657,212.33 1,428,955.03
Furniture, Fixtures and Books 369,270.40 191,663.21 177,607.19
Leased Assets Improvements 7,056,313.95 3,840,590.38 3,215,723.57
Other Property, Plant and Equipment 19,376,601.16 10,375,162.69 9,001,438.47
Total 35,123,314.44 18,412,490.53 18,465,209.83

2015
Carrying
Particulars Cost (P) Accumulated Amount, Dec.
Depreciation (P) 31, 2015(P)
Buildings and Other Structures 5,234,961.57 2,273,226.90 2,961,734.58
Machinery and Equipment 6,306,813.67 3,312,017.69 2,994,795.98
Transportation Equipment 3,277,168.08 1,442,274.16 1,834,893.92
Furniture, Fixtures and Books 9,859,788.84 3,505,652.60 6,354,136.24
Leased Assets Improvements 6,228,817.17 3,136,684.55 3,092,132.62
Other Property, Plant and Equipment 13,992,034.07 4,988,126.32 9,003,907.75
Total 44,899,583.31 18,657,982.22 26,241,601.09

Fully depreciated motor vehicle, which is a Mistsubishi L300 Van

with a salvage value of P75,000.00 is still in use by the film archive
unit of the FDCP.

9. Financial Liabilities

11
 This account consists of:

Amount (P)
Account
2016 2015
Regular Agency Fund
Accounts Payable 0.00 1,541,958.50
Loans Payable-Domestic 3,056,095.15 3,056,095.15
Total 3,056,095.15 4,598,053.65

Loans Payable of P3,056,095.15 represents the balance of total loan

amount of P4,997,008.20 granted on September 4, 2009 for the production
of the film EMIR. This is being repaid through theatrical receipts,
amusement tax rebates and rental income of the film

Supporting Information to the Statement of Financial Performance

10. Tax Revenue

This pertains to Other Taxes amounting to P109,959,768.30 represents

amusement taxes from box office tickets which, pursuant to RA 9167. Out
of this amount P31,484,005.84 were given to film producers for graded
A films representing 100 percent incentive, while P51,009,242.64
representing 65 percent given to film producers for graded B films. The
remaining 35 percent is retained by FDCP as share to augment its
operational expenses.

11. Service and Business Income

Amount (P)
Account
2016 2015
Registration Fees 930,000.00 760,000.00
Other Business Income 3,287,813.70 1,184,242.99
Total 4,217,813.70 1,944,242.99

Registration Fees of P930,000.00 represents collection from application

fees of films that applied for grading. The application fee is P20,000.00
for mainstream films and P10,000 for independent films.

Other Business Income of P3,287,813.70 in 2016, P2,423,807.19

represents theatrical and other sales of films co-produced by FDCP and the
master directors prize of Lav Diaz in 2016 , amusement tax share of FDCP
12
 from the collections of the Metro Manila Film Festival (MMFF)
amounting to P810,000.00 in 2016 and P54,006.51 represents interest
earned from current account.

12. Personnel Services

This group of account consists of:

Amount (P)
Particulars
2016 2015
8,414,935.6
Salaries and Wages (Note 12.1) 9,371,150.59
6
2,931,799.0
Other Compensation (Note 12.2) 4,775,017.00
0
1,073,146.7
Personnel Benefit Contributions (Note 12.3) 996,096.81
3
1,191,475.6
Other Personnel Benefits (Note 12.4) 153,132.20
2
13,611,357.0
Total 15,295,396.60
1

12.1 Salaries and Wages

Amount (P)
Accounts
2016 2015
7,217,575.6
8,325,342.69
Salaries & Wages Regular 6
1,197,360.0
1,045,807.90
Salaries & Wages - Casual/Contractual 0
8,414,935.6
Total 9,371,150.59
6

12.2 Other Compensation

Amount (P)
Accounts
2016 2015

13
 Personnel Economic Relief Allowance (PERA) 500,000.00 474,000.00
Representation Allowance (RA) 415,750.00 504,000.00
Transportation Allowance (TA) 327,750.00 372,000.00
Clothing/Uniform Allowance 100,000.00 85,000.00
Productivity Incentive Allowance 0.00 34,000.00
Honoraria 1,662,250.00 608,250.00
Year End Bonus 1,399,267.00 728,049.00
Cash Gift 100,000.00 95,000.00
Other Bonuses and Allowances 270,000.00 31,500.00
2,931,799.0
Total 4,775,017.00
0

12.3 Personnel Benefit Contributions

Amount (P)
Accounts
2016 2015
Retirement and Life Insurance Premiums 856,727.36 932,772.13
Pag-IBIG Contributions 21,181.95 38,818.35
PhilHealth Contributions 93,587.50 81,656.25
Employees Compensation Insurance Premiums 24,600.00 19,900.00
1,073,146.7
Total 996,096.81
3

12.4 Other Personnel Benefits

Amount (P)
Accounts
2016 2015
Terminal Leave Benefits - 0.00
1,191,475.6
153,132.20
Other Personnel Benefits 2
1,191,475.6
Total 153,132.20
2

13. Maintenance and Other Operating Expenses (MOOE)

This group of account consists of:

14
 Amount (P)
Account
2016 2015
Traveling Expenses (Note 13.1) 7,909,686.90 6,462,620.12
Training and Scholarship Expenses (Note 13.2) 897,670.18 982,096.06
14,284,636.6
Supplies and Materials Expenses (Note 13.3) 2,879,418.85
0
Utility Expenses (Note 13.4) 3,055,734.06 1,338,694.30
Communication Expenses (Note 13.5) 3,599,212.50 2,624,899.80
89,479,107.9 55,078,626.3
Awards/Rewards and Prizes (Note 13.6)
0 9
Confidential, Intelligence and Extraordinary
313,656.73 266,839.34
Expenses (Note 13.7)
12,181,138.3
Professional Services (Note 13.8) 9,065,157.93
5
General Services (Note 13.9) 3,660,070.54 2,453,218.60
Repairs and Maintenance (Note 13.10) 2,651,274.04 2,090,860.05
Taxes, Insurance Premiums and Other Fees
1,084,514.76 478,131.93
(Note 13.11)
Other Maintenance and Operating Expenses 17,286,628.8 22,191,778.9
(Note 13.12) 3 7
153,287,350. 109,028,322.
Total
97 76

13.1 Traveling Expenses

Amount (P)
Accounts
2016 2015
Traveling Expense Local 659,237.14 561,959.43
Traveling Expense Foreign 7,250,449.66 5,900,660.79
Total 7,909,686.80 6,462,620.12

13.2 Training and Scholarship Expenses

Amount (P)
Account
2016 2015
Training Expenses 897,670.18 982,096.06

13.3 Supplies and Materials Expenses

Accounts Amount (P)

15
 2016 2015
Office Supplies Expenses 1,941,183.22 1,190,632.95
Accountable Forms Expenses 3,000.00 31,175.00
Fuel, Oil & Lubricants Expenses 110,365.16 182,331.48
Semi Expendable Expenses 11,131,040.69 -
Other Supplies and Materials Expenses 1,099,047.53 1,475,279.42
14,284,636.6
Total 2,879,418.85
0

13.4 Utilities Expenses

Amount (P)
Accounts
2016 2015
Water Expenses 245,650.40 99,387.03
Electricity Expenses 2,810,083.66 1,239,307.22
Total 3,055,734.06 1,338,694.30

13.5 Communication Expenses

Amount (P)
Accounts
2016 2015
Postage and Courier Expenses 1,141,402.45 945,958.29
Telephone Expenses 1,204,817.56 730,529.34
Internet Subscription Expenses 1,252,992.49 948,412.17
Total 3,599,212.50 2,624,899.80

13.6 Awards/Rewards and Prizes

This pertains to reward/incentive to producers/filmmakers for films

that were graded A or B. For graded A films, 100 percent tax
rebate is given as reward while for graded B, only 65 percent with a
total of P89,479,107.90.

13.7 Confidential, Intelligence and Extraordinary Expenses

Amount (P)
Account
2016 2015
Extraordinary and Miscellaneous Expenses 313,656.73 266,839.34
Total 313,656.73 266,839.34

16
13.8 Professional Services

Amount (P)
Accounts
2016 2015
Legal Services 497,700.00 333,762.03
Consultancy Services 0.00 604,450.00
11,242,926.3
8,567,457.93
Other Professional Services 2
12,181,138.3
Total 9,065,157.93
5

13.9 General Services

Amount (P)
Accounts
2016 2015
Other General Services 765,403.96 575,831.14
Janitorial Services 695,652.43 0.00
Security Services 2,199,014.15 1,877,387.46
Total 3,660,070.54 2,453,218.60

13.10 Repairs and Maintenance

Amount (P)
Accounts
2016 2015
Repairs and Maintenance Infrastructure Assets 39,900.00 -
Repairs and Maintenance Leased Assets
48,926.25 -
Improvements
Repairs and Maintenance Office Equipment 130,134.90 169,019.64
Repairs and Maintenance Furniture and Fixtures 2,000.00 0.00
Repairs and Maintenance I.C.T. Equipment 135,605.60 0.00
Repairs and Maintenance Motor Vehicle 20,294.71 119,735.00
Repairs and Maintenance Other Property, Plant &
1,200.00 70,500.00
Equipment
Repairs and Maintenance Machinery and Equipment 260,413.00 7,000.00
Restoration and Maintenance Heritage Assets 2,012,799.58 1,724,605.41
Total 2,651,274.04 2,090,860.05

13.11 Taxes, Insurance Premiums and Other Fees

Amount (P)
Accounts
2016 2015
Taxes, Duties and Licenses 175,115.17 45,024.40
Fidelity Bond Premiums 91,216.00 181,875.00

17
 Insurance Expenses 818,183.59 251,232.53
Total 1,084,514.76 478,131.93

13.12 Other Maintenance and Operating Expenses

Amount (P)
Accounts
2016 2015
Advertising Expenses 575,270.75 830,403.44
Printing and Publication Expenses 1,448,801.12 3,483,426.79
Representation Expenses 5,165,322.38 2,941,624.85
Transportation and Delivery Expenses 536,171.58 506,751.47
13,817,015.5
9,493,559.07
Rent/Lease Expenses 4
Membership Dues and Contributions to Organizations 17,171.06 309,465.51
Subscription Expenses 39,964.20 54,591.25
Other Maintenance & Operating Expenses 10,368.67 248,500.12
17,286,628.8 22,191,778.9
Total
3 7

14. Financial Expenses

This pertains to charges issued by bank in the amount of P5,600.00 and

loss on Forex of P5,088.32.

15. Non-Cash Expenses

Amount (P)
Accounts
2016 2015
Depreciation Other Structures 56,722.62 435,738.79
Depreciation Leasehold Improvement 703,905.83 1,389,769.49
Depreciation Office Equipment 83,890.91 118,466.19
Depreciation Furniture, Fixtures and Books 35,961.39 553,610.90
Depreciation I.C.T. Equipment 234,052.95 740,067.74
Depreciation Motor Vehicles 405,938.90 317,398.00
Depreciation Other Property, Plant & Equipment 2,609,932.17 2,259,566.14
Impairment Loss Loans and Receivables 6,106,140.61 -

18
 3,107,321,256
Impairment Loss Other Receivable -
.85
3,117,557,802
Total 5,814,617.25
.23

16. Net Financial Assistance/Subsidy

Amount (P)
Account
2016 2015
Notice of Cash Allocation (NCA) received from the 53,564,827.0 63,104,638.1
Department of Budget and Management (DBM) for 0 8
Regular Agency Fund
Add: Tax Remittance Advice (TRA) issued to BIR 1,774,395.13 1,314,987.11
55,339,222.1 64,419,625.2
Total
3 9
Less: Reversion of Unused NCA 26,977.68 308,566.61
Refund of Cash Advances deposited with 1,108,659.94 198,447.32
National Treasury
54,203,584.5 63,912,611.3
Net Subsidy from National Government 1 6
Less: Financial Assistance to NGOs/POs 7,277,967.29 3,104,788.42
46,925,617.2 60,807,822.9
Net Financial Assistance/Subsidy 2 4

Supporting Information to the Statement of Changes in Net Assets/Equity

17. Other Adjustment

Other adjustment totaling P29,999.98 pertains to prior period overpayment

of Viva Productions, Inc. for the movie "Ikaw Pa Rin, Bongga Ka Boy" in
lieu of the account balance from the movie "Civil Status: Single"

Supporting Information to the Statement of Cash Flows

18. Restricted Cash Balances

The Cash and Cash Equivalents of P11,156,408.61 includes Cash

Treasury/Agency Deposit, Special Account in the amount of P4,164,153.84
19
19. Receipt of Notice of Cash Allocation (NCA)

This consists of:

Particulars Date Amount (P)

Regular Agency Fund
NCA-16-0000359 January 05, 2016 28,869,000.00
NCA-16-0003395 February 22, 2016 493,922.00
NCA-16-0007653 May 11, 2016 297,198.00
NCA-16-0008402 May 19, 2016 270,000.00
NCA-16-0010108 June 10, 2016 3,768,000.00
NCA16-0012637 July 14, 2016 19,633,000.00
NCA-16-0023581 December 12, 2016 233,707.00
Sub-total 53,564,827.00
Special Accounts Fund
NCA-16-0001720 January 27, 2016 13,087,057.00
NCA-16-0002023 February 03, 2016 3,729,700.00
NCA-15-0002524 February 22, 2016 1,583,228.00
NCA-15-0005452 April 05, 2016 7,487,076.00
NCA-15-0005599 April 07, 2016 2,884,372.00
NCA-15-0006709 April 27, 2016 855,000.00
NCA-15-0007238 May 06, 2016 2,834,800.00
NCA-15-0008779 May 25, 2016 5,883,823.00
NCA-15-0008780 May 26, 2016 665,000.00
NCA-15-00010744 June 17, 2016 13,388,291.00
NCA-15-00011001 June 17, 2016 3,063,750.00
NCA-15-0013688 July 22, 2016 8,565,110.00
NCA-15-0013690 July 25, 2016 3,491,250.00
NCA-15-0014293 August 02, 2016 2,565,000.00
NCA-15-0015314 August 15, 2016 1,130,982.00
NCA-15-0016789 September 07, 2016 1,521,177.00
NCA-15-0017714 September 23, 2016 3,338,300.00
NCA-15-0019039 October 14, 2016 11,807,199.00
NCA-15-0020737 November 14, 2016 2,520,350.00
NCA-15-0022266 November 23, 2016 10,879,947.00
NCA-15-0022417 November 25, 2016 2,090,000.00
NCA-15-0023109 December 02, 2016 10,335,720.00
Sub-total 113,707,132.00
Grand total 167,271,959.00

20. Collection of Income/Revenues

Amount (P)
Account
2016 2015

20
 Other Taxes - Amusement 109,959,768.30 83,107,142.93
Registration Fees 930,000.00 760,000.00
Other Business Income 3,287,813.70 1,184,242.99
Total 114,177,582.00 85,051,385.92

21. Other Receipts

Amount (P)
Account
2016 2015
Refund of cash advances 1,108,659.94 198,447.32
Transfer of prior year interest income - 0.00
Total 1,108,659.94 198,447.32

22. Payment of Expenses

Amount (P)
Account
2016 2015
Payment of Personnel Services 15,295,396.60 13,611,357.01
Payment of Maintenance and Other
143,206,431.56 109,028,322.76
Operating Expenses
Total 158,501,828.16 122,639,679.77

23. Purchase of Inventories

Amount (P)
Account
2016 2015
Office Supplies Inventory 357,779.59 1,505,464.28
Accountable Forms Inventory 301,800.00 294,000.00
Total 659,579.59 1,795,464.28

Supporting Information to the Statement of Comparison of Budget and

Actual Amounts

24. Receipts

The revenue target for the year in the amount of P69,860,000.00 was on
cash basis and consistent with the amounts in the Budget of Expenditures
and Sources of Financing submitted to the DBM.

Actual collections amounting P109,959,768.30 exceeded the targets

because more films applied for grading than the target and more
21
 remittance from theater owners were received by the Council in view of
the demand letters sent to them for compliance. Also included were the
income from share in the Metro Manila Film Festival (MMFF) given by
Metro Manila Development Authority (MMDA), income from share of
FDCP in the box office of films given grants by FDCP and share in the
award prize money of the film Mula sa Kung Ano among others.

25. Payments

The total appropriation for the Regular Agency Fund in the amount of
P52,424,000.00 was prepared on cash basis and published as part of RA
No. 10717 or the GAA of FY 2016.

The movement/increase in budget from P52,424,000.00 to P54,681,967.00

was due from the Miscellaneous Personnel Benefits Fund
(MPBF)/special/additional releases:

SARO No. Date Amount(P)

16-0001903 03/04/2016 953,000.00
16-0001904 03/04/2016 105,000.00
16-0013995 05/10/2016 674,698.00
16-0016430 05/19/2016 270,000.00
16-0034862 12/12/2016 255,269.00
2,257,967.0
Total 0

For the Special Account-Locally Funded, the following are the SAROs
released:

SARO No. Date Amount(P)

13,087,057.
16-0000390 1/27/2016 00
3,926,000.0
16-0000595 02/03/2016 0
1,583,228.0
16-0000840 02/16/2016 0
7,487,076.0
16-0008927 04/05/2016 0
2,884,372.0
16-0009455 04/07/2016 0
16-0011761 04/27/2016 900,000.00
16-0012797 05/06/2016 2,984,000.0
22
 0
5,883,823.0
16-0017291 05/25/2016 0
16-0017292 05/25/2016 700,000.00
13,388,291.
16-0018883 06/17/2016 00
3,225,000.0
16-0019067 06/17/2016 0
8,565,110.0
16-0020920 7/12/2016 0
3,675,000.0
16-0020974 7/22/2016 0
2,700,000.0
16-0012147 8/01/2016 0
1,130,982.0
16-0023343 8/15/2016 0
1,521,177.0
16-0025834 9/7/2016 0
3,514,000.0
16-0027065 9/23/2016 0
11,807,190.
16-0028718 10/14/2016 00
2,653,000.0
16-0030975 11/11/2016 0
10,879,947.
16-0033113 11/23/2016 00
2,200,000.0
16-0033263 11/25/2016 0
10,335,720.
16-0034252 12/02/2016 00
115,030,973
Total .00

23