Part III

COMBINED FINANCIAL STATEMENTS

The FSs in the succeeding pages pertain to the combined financial data from the statement of
financial position, statement of comprehensive income, statement of changes in equity, and
statement of cash flows of 476 WDs. The combined FSs of WDs were further presented by
region, by province/city and by specific WDs. The details are included in this Volume of the
AFR.

The combined statement of financial position presents the total financial position of the WDs
as at December 31, 2016, while the statement of comprehensive income shows their entire
financial performance for the year ended December 31, 2016. The statement of changes in
equity provides information on all the changes in equity. The statement of cash flows shows
information on the cash flows from operating, investing and financing activities.

The ending balances as at CY 2016 of Cash and Cash Equivalents and Equity accounts in the
statement of financial position vis-à-vis the corresponding year-end balances shown in the
statement of cash flows and statement of changes in equity have discrepancies of P134.71
million and P0.08 million, respectively. The details of said discrepancies are presented in
Annex F for Cash and Cash Equivalents accounts and Annex G for Equity accounts.

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 Republic of the Philippines
Water Districts
Combined Statement of Financial Position
As at December 31, 2016
(in thousand pesos)

Note 2015
2016
(Restated)
ASSETS

Current Assets 17,001,573 14,778,856

Cash and Cash Equivalents 4 9,928,836 8,230,287
Financial Assets 87 87
Other Investments 5 425,049 482,876
Receivables 6 3,918,334 3,598,127
Inventories 7 2,040,026 1,850,990
Other Current Assets 8 689,241 616,488

Non-Current Assets 52,219,739 48,734,794

Financial Assets 9 81,213 66,783
Investments in Joint Venture 10 63,573 13,573
Other Investments 11 1,228,859 1,032,284
Receivables 12 30,800 23,502
Investment Property 13 34,963 35,665
Property, Plant and Equipment 14 46,658,423 43,909,017
Intangible Assets 15 101,246 107,966
Deferred Tax Assets 16 5,320 5,380
Other Non-Current Assets 17 4,015,341 3,540,623

TOTAL ASSETS 69,221,311 63,513,649

LIABILITIES

Current Liabilities 6,591,386 6,250,674

Financial Liabilities 18 3,939,708 3,822,841
Inter-Agency Payables 19 598,228 550,411
Intra-Agency Payables 28,029 20,411
Trust Liabilities 20 939,150 866,180
Deferred Credits/Unearned Income 21 87,360 120,015
Provisions 22 54,024 48,885
Other Payables 944,886 821,931

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 Republic of the Philippines
Water Districts
Combined Statement of Financial Position
As at December 31, 2016
(in thousand pesos)

Note 2015
2016
(Restated)

Non-Current Liabilities 19,190,290 19,395,266

Financial Liabilities 23 17,407,383 18,218,954
Inter-Agency Payables 24 1,385 751
Trust Liabilities 25 137,156 133,891
Deferred Credits/Unearned Income 26 1,146,905 535,596
Provisions 27 35,251 30,082
Deferred Tax Liabilities 28 26,407 10,121
Other Payables 435,803 465,871

TOTAL LIABILITIES 25,781,675 25,645,940

EQUITY 29 43,439,636 37,867,709

TOTAL LIABILITIES AND EQUITY 69,221,311 63,513,649

The notes on pages 23 to 46 form part of these statements.

Difference between totals and sum of components is due to rounding off.

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 Republic of the Philippines
Water Districts
Combined Statement of Comprehensive Income
For the year ended December 31, 2016
(in thousand pesos)

2015
Note 2016 (Restated)

Income
Service and Business Income 30 27,461,802 25,771,940
Shares, Grants and Donations 31 66,831 25,162
Gains 32 4,106 1,042
Other Non-Operating Income 33 288,554 233,136
Total Income 27,821,293 26,031,280

Expenses
Personnel Services 34 8,025,633 7,491,319
Maintenance and Other Operating
Expenses 35 9,602,741 8,998,790
Financial Expenses 36 1,209,589 1,320,042
Direct Costs 37 245,701 152,838
Non-Cash Expenses 38 2,913,948 2,606,731
Total Expenses 21,997,613 20,569,720
Profit/(Loss) Before Tax 5,823,680 5,461,561
Income Tax Expense/(Benefit) 2,196 922
Profit/(Loss) After Tax 5,821,484 5,460,639
Net Assistance/Subsidy/(Financial
Assistance/Subsidy/Contribution) 39 (8,728) (7,511)
Net Income/(Loss) 5,812,756 5,453,128
Other Comprehensive Income/
(Loss) for the Period - -
Comprehensive Income/(Loss) 5,812,756 5,453,128
The notes on pages 23 to 46 form part of these statements.

Difference between totals and sum of components is due to rounding off.

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 Republic of the Philippines
Water Districts
Combined Statement of Changes in Equity
For the year ended December 31, 2016
(in thousand pesos)

2015
2016 (Restated)

Revaluation Surplus
Balance, beginning of period 225,087 225,087
Additions (deductions) (6,731) -
Balance, end of period 218,356 225,087

Retained Earnings/(Deficit)
Balance, beginning of period 30,711,623 25,953,752
Additions (deductions) 5,523,691 4,759,841
Balance, end of period 36,235,314 30,713,593

Government Equity
Balance, beginning of period 5,807,644 5,622,543
Additions (deductions) 98,884 185,069
Balance, end of period 5,906,528 5,807,612

Contributed Capital
Balance, beginning of period 1,121,123 1,137,876
Additions (deductions) (41,808) (16,752)
Balance, end of period 1,079,316 1,121,123

Share Capital
Balance, beginning of period 293 293
Additions (deductions) (249) -
Balance, end of period 44 293

TOTAL EQUITY 43,439,558 37,867,709

Difference between totals and sum of components is due to rounding off.

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 Republic of the Philippines
Water Districts
Combined Statement of Cash Flows
For the year ended December 31, 2016
(in thousand pesos)

2015
2016 (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Inflows 29,153,514 27,046,167
Cash Outflows 21,246,959 20,009,684
Net Cash Provided By/(Used In) Operating Activities 7,906,555 7,036,483

CASH FLOWS FROM INVESTING ACTIVITIES

Cash Inflows 1,081,167 786,660
Cash Outflows 5,377,083 4,705,436
Net Cash Provided By/(Used In) Investing Activities (4,295,916) (3,918,777)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash Inflows 1,676,331 847,601
Cash Outflows 3,542,324 2,765,117
Net Cash Provided By/(Used In) Financing Activities (1,865,993) (1,917,516)

INCREASE/(DECREASE) IN CASH AND CASH

EQUIVALENTS 1,744,646 1,200,191

CASH AND CASH EQUIVALENTS, JANUARY 1 8,049,476 6,831,330

CASH AND CASH EQUIVALENTS, DECEMBER 31 9,794,123 8,031,521

Difference between totals and sum of components is due to rounding off.

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