Republic of the Philippines

EULOGIO “AMANG” RODRIGUEZ INSTITUTE

OF SCIENCE & TECHNOLOGY
NOTES TO FINANCIAL STATEMENTS
(ALL FUNDS)
For the year ended December 31, 2021
(Amounts are in Philippine Pesos)

1. General Information/Agency Profile

The financial statements (FSs) of Eulogio “Amang” Rodriguez Institute of Science

and Technology (EARIST) were authorized for issue on March 7, 2022 as shown in
the Statement of Management’s Responsibility for Financial Statements signed by Dr.
Editha V. Pillo, President, and Mr. Roberto M. Liwanag, Director of Financial
Management Services.

The EARIST was founded in 1945 as a vocational high school. By virtue of

Presidential Decree No. 1524, enacted in June 11, 1978, EARIST was converted to a
state college with the Board of Trustees (BOT) as governing body. It is located at
Nagtahan, Sampaloc, Manila.

Vision

The EARIST is envisioned to be a center of excellence in trades, business, arts, science

and technology education.

Mission

Turn out vocationally, technically, technologically, and scientifically trained

graduates who will be economically productive, self-sufficient, effective, responsible
and disciplined citizens of the Philippines.

Goal

To provide professional, scientific, technological, technical, and vocational instruction

and training in trades, business, arts, sciences, and technology and for special purposes
promote research, advanced studies and progressive leadership.

Objectives

 Strive for academic excellence in instruction, research, extension and production

through accreditation.
 Provide appropriate and continuing faculty and staff development programs.
 Provide and maintain appropriate technologies, instructional facilities, materials
and equipment.

10
  Produce quality graduates who are globally competitive to man the needs of
business and industry.
 Attain university status through Unity, Solidarity and Teamwork.

2. Statement of Compliance and Basis of Preparation of Financial Statements

The FSs have been prepared in accordance with and comply with the International
Public Sector Accounting Standards (IPSASs).

The FSs have been prepared on the basis of historical cost. The Statement of Cash
Flows is prepared using the direct method.

Included in the FSs are transactions of EARIST Main and Cavite Campus. The
Institute, however, adopts the centralized accounting system, whereby only one
complete set of books is kept and maintained by the Financial Management Service -
Accounting Department in the Main Campus at Sta. Mesa, Manila.

3. Summary of Significant Accounting Policies

3.1 Basis of Accounting

The FSs were prepared on an accrual basis in accordance with the IPSAS.

3.2 Financial Instruments

a. Financial assets

Initial recognition and measurement

Financial assets within the scope of IPSAS 29 Financial Instruments:

Recognition and Measurement are classified as financial assets at fair value
through surplus or deficit. EARIST determines the classification of its
financial assets at initial recognition.

The EARIST’s financial assets include cash and short-term deposits; and
other receivables.

Subsequent measurement

The subsequent measurement of financial assets depends on their

classification.

11
Receivables

Receivables are non-derivative financial assets with fixed or determinable

payments that are not quoted in an active market. After initial measurement,
losses arising from impairment will be recognized in the surplus or deficit.

The carrying amount of the asset is reduced through the use of an Allowance
account and the amount of the loss is recognized in surplus or deficit. Other
Receivables is composed of disallowances and other reclassifications to
conform to the International Public Sector Accounting Standards (IPSAS).

Derecognition

The EARIST derecognizes a financial asset or, where applicable, a part of a

financial asset when:

 The rights to receive cash flows from the asset have expired or waived.

 The EARIST has transferred its rights to receive cash flows from the asset
or has assumed an obligation to pay the received cash flows in full without
material delay to a third party; and either: (a) EARIST has transferred
substantially all the risks and rewards of the asset; or (b) EARIST has
neither transferred nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.

Impairment of financial assets

The EARIST assesses at each reporting date whether there is objective

evidence that a financial asset or a group of financial assets is impaired. A
financial asset or a group of financial assets is deemed to be impaired if, and
only if, there is objective evidence of impairment as a result of one or more
events that have occurred after the initial recognition of the asset (an incurred
“loss event”) and that loss event 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 the following indicators:

 The debtors or a group of debtors are experiencing significant financial

difficulty

 Default or delinquency in interest or principal payments

 The probability that debtors will enter bankruptcy or other financial

reorganization

 Observable data indicates a measurable decrease in estimated future cash

flows

12
 b. Financial liabilities

Initial recognition and measurement

Financial liabilities within the scope of IPSAS 29 are classified as financial

liabilities at fair value through surplus or deficit or loans and borrowings, as
appropriate. The entity determines the classification of its financial liabilities
at initial recognition.

The EARIST’s financial liabilities include trade and other payables.

Subsequent measurement

The measurement of financial liabilities depends on their classification.

Derecognition

A financial liability is derecognized when the obligation under the liability is

discharged or cancelled or expires.

When 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
derecognition of the original liability and the recognition of a new liability,
and the difference in the respective carrying amounts is recognized in surplus
or deficit.

3.3 Cash and Cash Equivalents

Cash and Cash Equivalents comprise cash on hand and cash at bank, deposits on
call and highly liquid investments with an original maturity of three months or
less, which are readily convertible to known amounts of cash and are subject to
insignificant risk of changes in value. For the purpose of the consolidated
statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits as defined above, net of outstanding bank overdrafts.

3.4 Inventories

Inventory is measured at cost upon initial recognition.

Inventories are recognized as an expense when deployed for utilization or

consumption in the ordinary course of operations of EARIST.

3.5 Property, Plant and Equipment

Recognition

An item is recognized as property, plant, and equipment (PPE) if it meets the

characteristics and recognition criteria as a PPE.

13
The characteristics of PPE are as follows:

 tangible items;
 are held for use in the production or supply of goods or services, for rental to
others, or for administrative purposes; and
 are expected to be used during more than one reporting period.

An item of PPE is recognized as an asset if:

 It is probable that future economic benefits or service potential associated

with the item will flow to the entity; and
 The cost or fair value of the item can be measured reliably.

Measurement at Recognition

An item recognized as PPE is measured at cost.

A PPE acquired through non-exchange transaction is measured at its fair value as

at the date of acquisition.

The cost of the PPE is the cash price equivalent or for PPE acquired through non-
exchange transaction its cost is its fair value as at recognition date.

Cost includes the following:

 Its purchase price, including import duties and non-refundable purchase taxes,
after deducting trade discounts and rebates;
 expenditure that is directly attributable to the acquisition of the items; and
 initial estimate of the costs of dismantling and removing the item and
restoring the site on which it is located, the obligation for which an entity
incurs either when the item is acquired, or as a consequence of having used
the item during a particular period for purposes other than to produce
inventories during that period.

Measurement after Recognition

After recognition, all PPE are stated at cost less accumulated depreciation and
impairment losses, if any.

Depreciation

Each part of an item of PPE with a cost that is significant in relation to the total
cost of the item is depreciated separately. The depreciation charge for each period
is recognized as expense unless it is included in the cost of another asset.

14
 Initial Recognition of Depreciation

Depreciation of an asset begins when it is available for use such as when it is in

the location and condition necessary for it to be capable of operating in the
manner intended by management.

For simplicity and to avoid proportionate computation, the depreciation is 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 is for the
succeeding month.

Depreciation Method

The straight-line method of depreciation shall be adopted.

Estimated Useful Life

The EARIST used the Schedule on the Estimated Useful Life of PPE by
classification prepared by COA. It also uses a residual value equivalent to at least
five percent (5%) of the cost of the PPE.

Impairment

An asset’s carrying amount is written down to its recoverable amount, or

recoverable service amount, if the asset’s carrying amount is greater than its
estimated recoverable service amount.

Derecognition

The EARIST derecognizes items of PPE and/or any significant part of an asset
upon disposal or when no future economic benefits or service potential is
expected from its continuing use. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in the surplus or deficit when the asset
is derecognized.

3.6 Leases

EARIST as a lessee

Operating Lease

Operating leases are leases that do not transfer substantially all the risks and
benefits incidental to ownership of the leased item to the Institute. Operating lease
payments are recognized as an operating expense in surplus or deficit on a
straight-line basis over the lease term.

15
 EARIST as a lessor

Operating Lease

Leases in which the Institute does not transfer substantially all the risk and
benefits of ownership of an asset are classified as operating leases.

Initial direct costs incurred in negotiating an operating lease are added to the
carrying amount of the leased asset and recognized over the lease term.

Rent received from an operating lease is recognized as income on a straight-line

basis over the lease term. Contingent rents are recognized as revenue in which
they are earned.

The depreciation policy for PPE is applied to similar assets leased by the entity.

3.7 Intangible Assets

Recognition and Measurement

Intangible assets are recognized when the items are identifiable non-monetary
assets without physical substance; it is probable that the expected future economic
benefits or service potential that are attributable to the assets will flow to the
entity; and the cost or fair value of the assets can be measured reliably.

Intangible assets acquired separately are initially recognized at cost.

Subsequent Expenditure on an Acquired In-process Research and Development

Project

Subsequent expenditure on an in-process research or development project

acquired separately and recognized as an intangible asset is:

 Recognized as an expense when incurred if it is research expenditure;

 Recognized as an expense when incurred if it is development expenditure that
does not satisfy the criteria for recognition as an intangible asset; and
 Added to the carrying amount of the acquired in-process research or
development project if it is development expenditure that satisfies the
recognition criteria for intangible assets.

Internally Generated Intangible Assets

Internally generated intangible assets, excluding capitalized development costs,

are not capitalized and expenditure is reflected in surplus or deficit in the period
in which the expenditure is incurred.

16
Recognition of an Expense

Expenditure on an intangible item is recognized as an expense when it is incurred

unless it forms part of the cost of an intangible asset that meets the recognition
criteria of an intangible asset.

Subsequent Measurement

The useful life of the intangible assets is assessed as either finite or indefinite.
Intangible assets with a finite life are amortized over their useful life.

The straight-line method is adopted in the amortization of the expected pattern of

consumption of the expected future economic benefits or service potential.

An intangible asset with indefinite useful lives is not amortized. Intangible assets
with an indefinite useful life or an intangible asset not yet available for use were
assessed for impairment whenever there is an indication that the asset may be
impaired.

The EARIST uses 3 to 10 years as the useful life of finite intangible assets. The
useful life for each type of finite intangible asset is established upon purchase of
the asset based on the terms of the contract.

The amortization period and the amortization method, for an intangible asset with
a finite useful life, were reviewed at the end of each reporting period. Changes in
the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset were considered to modify the
amortization period or method, as appropriate, and were treated as changes in
accounting estimates. The amortization expense on an intangible asset with a
finite life is recognized in surplus or deficit as the expense category that is
consistent with the nature of the intangible asset.

Gains or losses arising from derecognition of an intangible asset were measured

as the difference between the net disposal proceeds and the carrying amount of
the asset and were recognized in the surplus or deficit when the asset is
derecognized.

Research and development costs

The EARIST expenses research costs as incurred. Development costs on an

individual project were recognized as intangible assets when the Institute can
demonstrate:

 The technical feasibility of completing the asset so that the asset will be
available for use or sale
 Its intention to complete and its ability to use or sell the asset

17
  How the asset will generate future economic benefits or service potential
 The availability of resources to complete the asset
 The ability to measure reliably the expenditure during development

Following initial recognition, intangible assets were carried at cost less any
accumulated amortization and accumulated impairment losses.

Amortization of the asset begins when development is complete, and the asset is
available for use. It is amortized over the period of expected future benefit.

During the period of development, the asset is tested for impairment annually
with any impairment losses recognized immediately in surplus or deficit.

3.8 Changes in accounting policies and estimates

The EARIST recognizes the effects of changes in accounting policy

retrospectively. The effects of changes in accounting policy are applied
prospectively if retrospective application is impractical.

It recognizes the effects of changes in accounting estimates prospectively by

including in surplus or deficit.

The EARIST corrects material prior period errors retrospectively in the first set
of FSs authorized for issue after their discovery by:

 Restating the comparative amounts for prior period(s) presented in which the
error occurred; or
 If the error occurred before the earliest prior period presented, restating the
opening balances of assets, liabilities and net assets/equity for the earliest
prior period presented.

3.9 Revenue from non-exchange transactions

Recognition and Measurement of Assets from Non-Exchange Transactions

An inflow of resources from a non-exchange transaction, other than services in-

kind, that meets the definition of an asset was recognized as an asset if the
following criteria were met:

 It is probable that the future economic benefits or service potential associated

with the asset will flow to the entity; and
 The fair value of the asset can be measured reliably.

An asset acquired through a non-exchange transaction is initially measured at its

fair value as at the date of acquisition.

18
Recognition of Revenue from Non-Exchange Transactions

An inflow of resources from a non-exchange transaction recognized as an asset

is recognized as revenue, except to the extent that a liability is also recognized in
respect of the same inflow.

As EARIST satisfies a present obligation recognized as a liability in respect of an

inflow of resources from a non-exchange transaction recognized as an asset, it
reduces the carrying amount of the liability recognized and recognize an amount
of revenue equal to that reduction.

Measurement of Revenue from Non-Exchange Transactions

Revenue from non-exchange transactions is measured at the amount of the

increase in net assets recognized by the entity unless a corresponding liability is
recognized.

Measurement of Liabilities on Initial Recognition from Non-Exchange

Transactions

The amount recognized as a liability in a non-exchange transaction is the best

estimate of the amount required to settle the present obligation at the reporting
date.

Gifts and Donations

The EARIST recognizes assets and revenue from gifts and donations when it is
probable that the future economic benefits or service potential will flow to the
entity and the fair value of the assets can be measured reliably.

Goods in-kind were recognized as assets when the goods were received, or there
is a binding arrangement to receive the goods. If goods in-kind were received
without conditions attached, revenue is recognized immediately. If conditions
were attached, a liability is recognized, which is reduced, and revenue recognized
as the conditions were satisfied.

On initial recognition, gifts and donations including goods in-kind were measured
at their fair value as at the date of acquisition, which were ascertained by reference
to an active market, or by appraisal.

Transfers from other government entities

Revenues from non-exchange transactions with other government entities and the
related assets were measured at fair value and recognized on obtaining control of
the asset (cash, goods, services and property) if the transfer is free from conditions

19
 and it is probable that the economic benefits or service potential related to the
asset will flow to the Institute and can be measured reliably.

3.10 Revenue from Exchange transactions

Measurement of Revenue

Revenue shall be measured at the fair value of the consideration received or

receivable.

Rental Income

Rental income generated from canteen stalls is accounted for through monthly
billing and cash method is used in recording income.

3.11 Budget Information

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

A separate Statement of Comparison of Budget and Actual Amounts (SCBAA)

was prepared since the budget and the financial statements were not prepared on
comparable basis. The SCBAA was presented showing the original and final
budget and the actual amounts on comparable basis to the budget.

3.12 Employee Benefits

The employees of EARIST are members of the Government Service Insurance

System (GSIS), which provides life and retirement insurance coverage.

The EARIST recognizes expenses for accumulating compensated absences when

these are paid (commuted or paid as terminal leave benefits). Unused entitlements
that have accumulated at the reporting date are not recognized as expense. Non-
accumulating compensated absences, like special leave privileges, are not
recognized.

3.13 Effects of Retrospective Restatement of Errors

EARIST has determined that transactions amounting to ₱33,072,745.12 represent

material errors and accounting adjustments. In 2020, ₱16,587,031.05 of the
amount was restated to proper accounts. The remaining prior period adjustments
amounting to ₱16,485,714.07 which occurred before 2020 were restated in the
opening balance as January 1, 2020, thus the restated opening balance amounted
to ₱912,273,068.69.

20
 The effects of retrospective statement of material errors in the Statement of
Financial Position and the Statement of Financial Performance are shown below:

Particulars 2020 Effects on 2020 Effects on 2020

Statement of Financial Statement of Financial
Performance Position
Increase in Other Current
Adjustment to Decrease in Expense
1,321,240.66 Assets
prepayments Increase in Net Income
Increase in Net Assets
Increase in Inventories
Increase in Expense
Unclaimed checks (279,160.50) Increase in Liabilities
Decrease in Net Income
Decrease in Net Assets
Remittance of interest Decrease in Revenue Increase in Liabilities
(84,765.21)
income to BTR Decrease in Net Income Decrease in Net Assets
Reversal of accounts Decrease in Expense Decrease in Liabilities
99,187.50
payable Increase in Net Income Increase in Net Assets
Decrease in Other Current
Liquidation of PY Increase in Expense
(9,888.00) Assets
cash advance Decrease in Net Income
Decrease in Net Assets
Refund of personnel Decrease in Expense Decrease in Liabilities
33,700.00
benefits Increase in Net Income Increase in Net Assets
Error in recording of Increase in Intra-Agency
Decrease in Revenue
settlement of cash (4,500.00) Payable
Decrease in Net Income
advance Decrease in Net Assets
Error in Recording Decrease in Expense Increase in Intangible Asset
985,600.00
Computer Software Increase in Net Income Increase in Net Assets
Outright Expense of Decrease in Expense Increase in PPE
14,525,616.60
Capitalized Assets Increase in Net Income Increase in Net Assets
Total 16,587,031.05

Particulars 2019 & Effects on 2019 & Prior Effects on 2019 & Prior
Prior Years Years Statement of Years Statement of
Financial Performance Financial Position
Increase in PPE
Adjustment – Leased Increase in Expense Decrease in Other Non-
(7,077,500.00)
Assets Decrease in Net Income Current Assets
Decrease in Net Assets
Adjustment to Prior Increase in Receivables
1,181,579.43 No effect
Year Disallowances Increase in Net Assets
Inter-Agency Decrease in Expense Increase in Receivables
6,430,659.88
Receivable Increase in Net Income Increase in Net Assets
Remittance of interest Decrease in Revenue Increase in Liabilities
(672,668.76)
income to BTR Decrease in Net Income Decrease in Net Assets
Reversal of accounts Decrease in Expense Decrease in Liabilities
2,692,682.66
payable Increase in Net Income Increase in Net Assets
Increase in Cash and Cash
Cash and Cash
10,000.00 No effect Equivalents
Equivalents
Increase in Liabilities

21
 Particulars 2019 & Effects on 2019 & Prior Effects on 2019 & Prior
Prior Years Years Statement of Years Statement of
Financial Performance Financial Position
Increase in Net Assets
Error in Recording of Decrease in Expenses Decrease in PPE
(569,967.94)
Semi-Expendable Increase in Net Income Decrease in Net Assets
Decrease in PPE
Error in Recording Decrease in Expense
14,490,928.80 Increase in Intangible Asset
Computer Software Increase in Net Income
Increase in Net Assets
Total 16,485,714.07

4. Cash and Cash Equivalents

Accounts 2021 2020 as restated

Petty Cash 225,217.28 225,217.28
Cash in Bank – Local Currency, CA 534,953,884.75 550,891,556.16
Cash in Bank – Local Currency, SA 3,803,566.20 3,803,566.20
Total 538,982,668.23 554,920,339.64

The Petty Cash amounting to ₱225,217.28 represents cash granted to Petty Cash Fund
Custodian for payment of petty or miscellaneous authorized expenditures which
cannot be conveniently paid by check. The Institute has not maintained a schedule of
accountable officers who were issued petty cash.

Cash in Bank-Local Currency, Current Account of ₱534,953,884.75 consists of

collections from tuition, trust receipts, assistance from LGU, other fees and income of
the Institute.

Cash in Bank-Local Currency, Savings Account amounting to ₱3,803,566.20

comprises cash in bank maintained at Land Bank-Malacañang which is used in all
direct payroll transactions from the General Fund.

5. Investments

Accounts 2021 2020

Investment in Stocks 2,800.00 2,800.00
Other Investments 381,720.00 381,720.00
Total 384,520.00 384,520.00

Both investment accounts are dormant for more than 10 years. Due to the absence of
proper turn-over of financial records, the existence of these Investments cannot be
ascertained.

22
6. Receivables

6.1 Inter-Agency Receivables

2020 As
Accounts 2021
Restated
Due from Local Government Units - 17,734.42
Due from National Government Agencies 7,318,947.85 9,392,023.89
Total 7,318,947.85 9,409,758.31

Due from Local Government Units account amounting to ₱17,734.42 was dormant for
more than 10 years. Allowance for Impairment Loss was fully set up to cover the
receivable.

Due from National Government Agencies account amounting to ₱7,318,947.85

represents advance payments made to the Department of Budget and Management
(DBM)-Procurement Service for the purchase of commonly used office supplies and
undelivered supplies/materials as of yearend. ₱6,430,659.88 of the total amount
pertains to 2019 and prior years unreconciled balance with DBM-PS.

6.2 Intra-Agency Receivables

Accounts 2021 2020

Due from Other Funds 9,561,270.85 9,500,175.50

Due from Other Funds account pertains to the receivable of Regular Trust Fund from
Special Trust Fund and vice-versa.

6.3 Other Receivables

Accounts 2021 2020 As Restated

Receivables-Disallowances/Charges 101,791,522.14 41,980,369.60
Due from Officers and Employees 38,240.11 38,220.11
Other Receivables 198,659.00 -
Total 102,028,421.25 42,018,589.71

Receivables-Disallowances/Charges account amounting to ₱101,791,522.14

represents amount due from employees and suppliers/contractors resulting from audit
disallowances which had become final and executory.

Due from Officers and Employees account amounting to ₱38,240.11 consists of under
deposits of the Cashier.

Other Receivables pertains to cash advances previously granted to student leaders

during their attendance in various student summits and seminars.

23
 6.4 Aging/Analysis of Receivables as of December 31, 2021

Not Past Due

Accounts Total Past Less than 90
91-365 days Over 1 year
Due days
Due from National
Government 7,318,947.85 - - 216,553.92 7,102,393.93
Agencies
Due from Other
9,561,270.85 - 23,029.25 38,066.10 9,500,175.50
Funds
Receivables-
Disallowances/ 101,791,522.14 - - 62,351,321.39 39,440,200.75
Charges
Due from Officers
38,240.11 - 20.00 - 38,220.11
and Employees
Other Receivables 198,659.00 - - - 198,659.00
Total 118,908,639.95 - 23,049.25 62,605,941.41 56,279,649.29

7. Inventories

Accounts 2021 2020 As Restated

Inventory Held for Sale
Merchandise Inventory 93,500.00 93,500.00
Inventory Held for Consumption
Office Supplies Inventory 5,024,528.55 5,024,528.55
Accountable Forms, Plates and Stickers Inventory 178,409.60 178,409.60
Medical, Dental and Laboratory Supplies Inventory 65,925.11 65,925.11
Textbooks & Instructional Materials Inventory 591,779.35 591,779.35
Other Supplies and Materials Inventory 3,960,346.89 3,960,346.89
Semi-Expendables
Semi-Expendable Information and Communications
24,232,945.00 37,845.00
Technology Equipment
Semi-Expendable Communication Equipment 7,995.00 7,995.00
Semi-Expendable Office Equipment 848,953.48 799,778.48
Semi-Expendable Disaster, Response & Rescue
1,745,170.00 1,745,170.00
Equipment
Semi-Expendable Medical Equipment 114,200.00 114,200.00
Semi-Expendable Technical and Scientific
283,713.14 268,700.00
Equipment
Semi-Expendable Other Equipment 1,124,463.57 1,107,178.57
Semi-Expendable Furniture and Fixtures 7,745,485.00 7,626,085.00
Semi-Expendable Books 4,525,041.50 3,309,951.50
Total 50,542,456.19 24,931,393.05

Inventories Held for Sale and Inventories Held for Consumption in the total amount
of ₱9,914,489.50 are of doubtful validity due to the non-reconciliation of balances
with the Property Office.

Semi-Expendable Equipment amounting to ₱40,627,966.69 represents the cost/ fair

value of the purchased/acquired equipment costing less than ₱15,000.00.

24
8. Property, Plant and Equipment

Buildings and
Land Infrastructure Other Machinery
Particulars Land Improvements Assets Structures Equipment
Carrying Amount, January
1, 2021 1,119,500.00 5,187,010.56 16,942,914.22 211,065,994.56 126,696,171.25
Additions/Acquisitions 3,186,002.14 46,250,888.88 11,490,732.30 15,921,495.64
Adjustments (33,355.74)
Total 1,119,500.00 8,373,012.70 63,193,803.10 222,523,371.12 142,617,666.89
Disposal/Depreciation (1,630,518.60) (15,530,550.33) (29,193,269.27)
Carrying Amount,
December 31, 2021 1,119,500.00 8,373,012.70 61,563,284.50 206,992,820.79 113,424,397.62
Gross Cost 1,119,500.00 8,373,012.70 67,511,402.02 386,965,632.17 444,186,180.71
Less: Accumulated
Depreciation (5,948,117.52) (179,972,811.38) (330,761,783.09)
Carrying Amount,
December 31, 2021 1,119,500.00 8,373,012.70 61,563,284.50 206,992,820.79 113,424,397.62

Furniture,
Transportation Fixtures and Construction
Particulars Equipment Books Leased Assets in Progress Total
Carrying Amount,
January 1, 2021 10,469,782.58 6,515,436.80 372,500.00 19,557,861.72 397,927,171.69
Additions/Acquisitions 1,552,036.66 78,401,155.62
Adjustments (3.00) (33,358.74)
Total 10,469,782.58 8,067,470.46 372,500.00 19,557,861.72 476,294,968.57
Disposal/Depreciation (1,777,943.32) (1,124,543.20) (49,256,824.72)
Carrying Amount,
December 31, 2021 8,691,839.26 6,942,927.26 372,500.00 19,557,861.72 427,038,143.85
Gross Cost 15,156,760.22 19,052,087.96 7,450,000.00 19,557,861.72 969,372,437.50
Less: Accumulated
Depreciation (6,464,920.96) (12,109,160.70) (7,077,500.00) (542,334,293.65)
Carrying Amount,
December 31, 2021 8,691,839.26 6,942,927.26 372,500.00 19,557,861.72 427,038,143.85

Carrying amount of temporarily idle PPE, fully depreciated PPE still in use, and PPE
for disposal cannot be ascertained as of yearend as reconciliation with the Property
Management Services is not yet completed. Depreciation is presented as Non-cash
Expenses (See Note 20).

9. Biological Assets

The recorded amount pertains to the cost incurred for the Dragon Pearl Fruit Plantation
in EARIST Cavite Campus.

25
10. Intangible Assets

Patents/ Computer
Total
Particulars Copyrights Software
Carrying Amount, January 1,2021 12,210.00 30,307,876.83 30,320,086.83
Additions – Purchased/ Acquired thru
8,579.20 1,674,500.00 1,683,079.20
exchange or non-exchange transactions
Total 20,789.20 31,982,376.83 32,003,166.03
Amortization - (420,453.94) (420,453.94)
Carrying Amount, December 31, 2021 20,789.20 31,561,922.89 31,582,712.09
Gross Cost 20,789.20 33,188,732.09 33,209,521.29
Less: Accumulated Amortization - (1,626,809.20) (1,626,809.20)
Carrying Amount, December 31, 2021) 20,789.20 31,561,922.89 31,582,712.09

Patents/Copyrights pertains to the cost of registration paid to Intellectual Property

Office of the Philippines for various internally generated intangible assets of the
Institute.

Computer Software includes ₱28,836,632.00 assessed to have indefinite life due to

the perpetual license user agreement granted to the Institute. The amount mostly
pertains to systems used by EARIST such as Princetech Integrated School
Management System and Online Web-Based School Management Information
System.

Amortization is presented as Non-cash Expenses (See Note 20).

11. Other Assets

11.1 Current and Non-Current Other Assets

2021 2020 As Restated

Accounts Non- Non-Current
Current Current
Current
Advances for Payroll 11,218,996.25 - 5,207,990.39 -
Advances to Special
1,334,520.70 - 1,075,982.54 -
Disbursing Officer
Advances to Officers
565,113.00 - 1,834,194.35 -
and Employees
Advances to
38,616,354.94 - 31,743,920.02 -
Contractors
Prepaid Insurance - - 634,773.75 -
Prepaid Subscription 2,000,115.83 - 686,466.91 -
Guaranty Deposits - 1,756,370.00 - 1,756,370.00
Other Deposits - 2,600.00 - 2,600.00
Other Assets - 5,147,619.12 - 5,147,619.12
Total 53,735,100.72 6,906,589.12 41,183,327.96 6,906,589.12

26
 Advances for Payroll account amounting to ₱11,218,996.25 represents salaries and
other personnel benefits which are yet to be liquidated by the Disbursing Officer.

Advances to Special Disbursing Officers account amounting to ₱1,334,520.70

consists of cash advances granted to Disbursing Officers for payment of special or
time-bound undertaking which remained outstanding as of yearend.

Advances to Officers and Employees account amounting to ₱565,113.00 consists of

cash advances granted to officers and employees for payment of expenses for official
local and foreign travel purposes which remained unliquidated as of yearend.

Advances to Contractors account amounting to ₱38,616,354.94 consists of

mobilization fund advanced to the different contractors of the Institute.

Prepaid Insurance pertains to unexpired portion of the Group Student & Personnel
Accident Insurance Premium.

Prepaid Subscription consists of unexpired portion of web hosting services, domain

and DNS Hosting, Cloud Server, Fortinet Security Firewall and library e-resources.

Guaranty Deposits account amounting to ₱1,756,370.00 represents amount deposited

to MERALCO in order to guarantee compliance with the terms of agreement.

Other Assets account amounting to ₱5,147,619.12 pertains to the residual value of

unserviceable and/or obsolete PPE of the Institute.

12. Financial Liabilities

12.1 Payables

Accounts 2021 2020 as restated

Accounts Payable 101,064,634.98 85,187,878.42
Due to Officers and Employees 15,012,562.45 9,001,556.59
Total 116,077,197.43 94,189,435.01

Accounts Payable account amounting to ₱101,064,634.98 represents unpaid

obligations to employees and suppliers as of yearend.

Due to Officers and Employees account amounting to ₱15,012,562.45 represents

incurrence of liability to officers and employees for salaries, benefits and other
emoluments.

27
13. Inter-Agency Payables

Accounts 2021 2020

Due to BIR 4,733,940.81 2,438,672.32
Due to GSIS 1,168,890.68 1,207,373.51
Due to Pag-IBIG 73,155.21 65,080.17
Due to PhilHealth 55,065.62 30,500.93
Due to NGAs 56,488.04 -
Due to GOCCs 103,112.49 100,449.35
Due to LGUs 125,000.00 125,000.00
Total 6,315,652.85 3,967,076.28

Due to BIR account amounting to ₱4,733,940.81 represents taxes withheld from

employees and contractors/suppliers as of yearend which are for remittance to the
Bureau of Internal Revenue (BIR) the following month.

Due to GSIS account amounting to ₱1,168,890.68 represents mandatory contributions

deducted from the salaries of official and employees including government share.
₱1,142,956.88 of the total amount pertains to 2019 and prior years unreconciled
balance. The remaining ₱25,933.80 pertains to unremitted balances due to absence of
GSIS number of some employees.

Due to Pag-IBIG account amounting to ₱73,155.21 represents unremitted

contributions to Pag-IBIG as of the end of the year.

Due to PhilHealth account amounting to ₱55,065.62 represents unremitted

contributions to PhilHealth as of the end of the year.

Due to NGAs represents unremitted amounts to the Bureau of the Treasury and
Commission on Audit.

Due to GOCCs account amounting to ₱103,112.49 represents unremitted Landbank

salary loans of EARIST employees as of yearend.

Due to LGUs account amounting to ₱125,000.00 represents the amount deducted from
the contractor’s project cost to be paid to the City of Manila representing occupancy
permit.

14. Intra-Agency Payables

Accounts 2021 2020 As Restated

Due to Other Funds 9,561,270.85 9,500,175.50

Due to Other Funds account amounting to ₱9,561,270.85 represents the transfers from
the other funds and/or payables to other funds.

28
15. Trust Liabilities

Accounts 2021 2020 as restated

Trust Liabilities 120,119,803.91 123,370,317.99
Guaranty/Security Deposits Payable 2,547,943.69 2,233,934.48
Total 122,667,747.60 125,604,252.47

Trust Liabilities pertains to receipts coming from tuition and miscellaneous fees of
graduate school, Commission on Higher Education (CHED) scholarship programs, as
well as salary loan deductions of employees withheld and remitted in behalf of Student
Financial Assistance Program (STUFAP), EARIST Savings and Loans Association
Inc. (ESLAI), EARIST Credit Cooperative, Philamlife and Manila Teachers Savings
and Loans Association (MTSLA).

Guaranty/Security Deposits Payable consists of the deposits from canteen operators

amounting to ₱768,069.54 and retention fees received from contractors to guaranty
the performance of the terms of the contract amounting to ₱1,779,874.15.

16. Other Payables

Other Payables amounting to ₱2,214,149.11 cannot be ascertained, due to the absence

of proper turn-over of financial records.

17. Service and Business Income

Accounts 2021 2020 As Restated

Service Income
Other Service Income 3,270,753.09 1,621,615.18
Business Income
School Fees 130,756,055.68 57,186,269.70
Fines and Penalties-Business Income - 769.25
Other Business Income - 888,100.00
Total 134,026,808.77 59,696,754.13

Other Service Income account amounting to ₱3,270,753.09 consists of income from

services rendered such as fees like admission, defense, administrative and technical,
energy and venue, facilities, etc.

School Fees account amounting to ₱130,756,055.68 represents tuition fee subsidy

from CHED under the Free Tertiary Education Act and tuition and other fees collected
by the Institute.

Fines and Penalties account represents late penalty deductions imposed by the Institute
for late delivery of goods by external suppliers.

29
 Other Business Income represents rentals from canteen, Globe, dormitory and hostels
as well as refund of excess cash advance.

18. Personnel Services – ₱241,938,326.17

18.1 Salaries and Wages

Accounts 2021 2020

Salaries and Wages – Regular 136,842,737.19 135,340,842.32
Salaries and Wages – Casual/ Contractual 719,569.00 790,376.68
Total 137,562,306.19 136,131,219.00

18.2 Other Compensation

Accounts 2021 2020 as restated

Personal Economic Relief Allowance 7,868,211.64 8,567,112.67
Representation Allowance 985,500.00 888,000.00
Transportation Allowance 877,500.00 780,000.00
Clothing/Uniform Allowance 2,222,000.00 2,258,818.18
Subsistence Allowance 21,550.00 17,600.00
Laundry Allowance 5,250.00 4,350.00
Honoraria 28,369,842.67 13,779,590.06
Hazard Pay 1,287,500.00 594,000.00
Longevity Pay 36,706.45 42,975.49
Overtime and Night Pay 986,646.55 855,465.65
Year End Bonus 11,157,820.50 11,209,932.45
Cash Gift 1,751,750.00 1,807,750.00
Mid-Year Bonus 11,271,664.00 11,218,895.00
Other Bonuses and Allowances 10,452,000.00 11,156,666.68
Total 77,293,941.81 63,181,156.18

18.3 Employees Future Benefits

EARIST and its employees contribute to the GSIS in accordance with

Commonwealth Act No. 186, as amended. The GSIS administers the plan,
including payment of pension benefits to employees to whom the Act applies.
GSIS has two insurance programs available: Enhanced Life Policy (ELP) and
Life Endowment Policy (LEP). The GSIS provides life insurance coverage the
very first day the employee entered government service after receipt of payment
of the 1st monthly premium. LEP also provides coverage against death whether
due to natural or accidental causes, permanent total disability and other benefits
upon maturity or separation from the service. Apart from the superior life
insurance packages these programs offer, the policyholders can also avail of
policy loan.

30
 18.4 Personnel Benefit Contributions

Accounts 2021 2020

Retirement and Life Insurance Premiums 15,475,259.41 4,658,252.49
Pag-IBIG Contributions 424,300.00 434,200.00
PhilHealth Contributions 1,965,679.30 1,892,923.41
Employees’ Compensation Insurance
424,268.68 433,900.00
Premiums
Total 18,289,507.39 7,419,275.90

18.5 Other Personnel Benefits

Accounts 2021 2020 As Restated

Terminal Leave Benefits 4,047,899.67 1,967,788.80
Other Personnel Benefits 4,744,671.11 3,313,140.00
Total 8,792,570.78 5,280,928.80

19. Maintenance and Other Operating Expenses – ₱63,882,379.16

19.1 Traveling Expenses

Accounts 2021 2020

Traveling Expenses – Local 4,048.50 16,434.15

19.2 Training and Scholarship Expenses

Accounts 2021 2020

Training Expenses 308,767.32 1,037,073.08
Scholarship Grants/Expenses 275,000.00 655,000.00
Total 583,767.32 1,692,073.08

19.3 Supplies and Materials Expenses

Accounts 2021 2020 as restated

Office Supplies Expenses 2,237,838.68 1,523,056.73
Accountable Forms Expenses 2,400.00 223,360.00
Drugs and Medicines Expenses 284,468.00 594,981.14
Medical, Dental and Laboratory Supplies - 1,809,042.36
Expenses
Fuel, Oil and Lubricants Expenses 229,514.67 210,804.18
Semi-Expendable Machinery and Equipment 278,481.68 13,194.60
Semi-Expendable Furniture and Fixtures
1,763,153.00 313,736.23
Expenses
Other Supplies and Materials Expenses 3,972,572.97 4,601,822.31
Total 8,768,429.00 9,289,997.55

31
19.4 Utility Expenses

Accounts 2021 2020

Water Expenses 10,045,931.39 7,456,738.34
Electricity Expenses 10,114,459.68 9,276,400.31
Total 20,160,391.07 16,733,138.65

19.5 Communication Expenses

Accounts 2021 2020 As Restated

Postage and Courier Services 4,624.00 13,459.00
Telephone Expenses 1,095,093.17 1,096,705.96
Internet Subscription Expenses 1,694,943.78 1,507,287.37
Total 2,794,660.95 2,617,452.33

19.6 Awards/Rewards and Prizes

Accounts 2021 2020

Awards/Rewards Expenses 911,213.00 366,760.00
Prizes 57,000.00 -
Total 968,213.00 366,760.00

19.7 Confidential, Intelligence and Extraordinary Expenses

Account 2021 2020

Extraordinary and Miscellaneous Expense 120,000.00 21,980.00

19.8 Professional Services

Account 2021 2020

Other Professional Services 1,992,387.00 1,509,940.00

19.9 General Services

Accounts 2021 2020

Janitorial Services 5,230,624.41 5,635,255.73
Security Services 8,388,144.19 9,422,337.90
Other General Services 9,966,863.74 7,642,274.80
Total 23,585,632.34 22,699,868.43

19.10 Repairs and Maintenance

Accounts 2021 2020 as restated
Repairs and Maintenance – Building and
802,274.67 2,409,199.87
Other Structure
Repairs and Maintenance – Machinery and
- 2,260.00
Equipment

32
 Accounts 2021 2020 as restated
Repairs and Maintenance – Transportation
6,120.00 -
Equipment
Total 808,394.67 2,411,459.87

19.11 Taxes, Insurance Premiums and Other Fees

Accounts 2021 2020 as restated
Taxes, Duties and Licenses - 3,188.38
Fidelity Bond Premiums 241,916.25 -
Insurance Expenses 697,669.09 215,002.21
Total 939,585.34 218,190.59

19.12 Other Maintenance and Operating Expenses

Accounts 2021 2020 as restated
Labor and Wages 499,373.40 379,279.50
Printing and Publication Expenses 347,744.00 60,000.00
Representation Expenses 732,400.82 455,565.21
Transportation and Delivery Expenses 1,570.00 -
Membership Dues and Contributions to
61,000.00 64,000.00
Organizations
Subscription Expenses 1,514,781.75 95,930.42
Total 3,156,869.97 1,054,775.13

Labor and Wages account consists of payments made to student assistants for services
rendered.

Printing and Publication Expenses account is used to recognize the costs of printing
and binding of documents, forms, manuals, and the like.

Representation Expenses account consists of expenses incurred for official

meetings/conferences and other official functions.

Transportation and Delivery Expenses pertains to cost incurred in shipping various

equipment to EARIST-Cavite Campus.

Membership Dues and Contributions to Organizations account represents membership

fees/dues/contributions to recognized/authorized professional organizations such as
Philippine Association of State Universities and Colleges, Philippine Society of
Information Technology Educators Foundation, Inc. and others.

Subscription Expenses account represents the cost of subscriptions to library and other
reading materials like journals.

33
20. Non-Cash Expenses

20.1 Depreciation

Accounts 2021 2020

Depreciation-Infrastructure Assets 1,630,518.60 1,535,400.72
Depreciation-Buildings and Other Structures 15,530,550.33 8,913,339.77
Depreciation-Machinery and Equipment 29,193,269.27 23,570,607.66
Depreciation-Transportation Equipment 1,777,943.32 1,620,874.51
Depreciation-Furniture, Fixtures and Books 1,124,543.20 783,090.96
Total 49,256,824.72 36,423,313.62

20.2 Amortization

Account 2021 2020

Amortization-Computer Software 420,453.94 638,268.02

20.3 Impairment
Accounts 2021 2020
Impairment Loss - Loans and Receivables 17,734.42 -
Impairment Loss-Other Receivables - 16,924,976.37
Total 17,734.42 16,924,976.37

21. Net Financial Assistance/Subsidy

Particulars 2021 2020
Total NCA Received 222,823,346.00 201,726,099.00
Tax Remittance Advice (TRA) 11,204,434.68 10,710,950.97
Total NCA 234,027,780.68 212,437,049.97
Less: Reversal/Refund/Adjustments (10,160,298.07) (2,799,178.68)
Net Subsidy from National Government 223,867,482.61 209,637,871.29
Assistance from Other NGAs 5,000,000.00 -
Assistance from LGUs 24,024,015.00 25,050,377.00
Total 252,891,497.61 234,688,248.29

The Notice of Cash Allocation amounting to ₱222,823,346.00 was received from the
Department of Budget and Management for the Institute’s operational requirements
and liabilities. This excludes the amount for Tax Remittance Advice (TRA) of
₱11,204,434.68 issued to the BIR. The total amount of NCAs reverted for the year
2020 amounted to ₱10,160,298.07.

Assistance from the Local Government of Manila amounting to ₱24,024,015.00 was

received during the year to cover the salary of City-Paid Employees and to support the
operational expenses of the Institute.

Assistance from the CHED under the Institutional Development and Innovation Grant
(IDIG) amounting to ₱5,000,000.00 was received during the year for the

34
 implementation of the project – Enhancement of EARIST Outcomes Based Education
Laboratory Facility for BSCE and BSME Programs.

22. Other Adjustment recognized directly in net assets/equity

Net Effect on
Particulars Accumulated
Surplus/(Deficit)
Recording of disallowances for current year issued Notice of
(61,162,219.39)
Finality of Decision
Write-off of Cash Advance as approved thru various COA
788,316.42
Decisions
Write-off of dormant fund transfers (2013-2018) of the Institute to
DBM-PS due to the cash sweep by the BTr in the implementation
2,146,110.82
of Social Amelioration Measures supported by a letter from DBM-
PS dated January 28, 2021.
Receipt of Payment of Outstanding Cash Advance from Fund 161
6,081.25
which was deposited to Fund 164 account.
Total (58,221,710.90)

23. Implementation of CHED Tertiary Education Subsidy (TES) Program

During the year, the Institute received ₱5,236,600.00 (TES Benefits including
administrative cost) for the implementation of various student subsidy program of
CHED. The Institute was able to process ₱4,180,000.00 in 2021, ₱168,000.00 of this
amount remained unclaimed by the beneficiaries and was refunded by the Disbursing
Officer. In February 2022, ₱1,035,000.00 was distributed by the Institute. The
remaining balance amounting to ₱189,600.00 consists of ₱9,600.00 administrative
cost and ₱180,000.00 unclaimed benefits.

24. EARIST Officials and Members of BOT

The governance of EARIST is vested upon the BOT, which exercises policy-making
functions to carry out the mission and programs of the Institute by virtue of RA No.
8292 granted by the Commission on Higher Education. The Institute is administered
by an appointed President by virtue of RA No. 8292 and is assisted by an Executive
Vice President and three Vice Presidents, one each for Academic Affairs, Research &
Extension and Administration.

35
24.1 Members of the BOT

The BOT is the governing body of the Institute which is composed of the
Commissioner from CHED as Chairman, the President of the Institute as Vice
Chairman, and members, which include the Chairman of the Senate Committee
on Education, Arts and Culture or his duly authorized representative, Chairperson
of House Committee on Higher and Technical Education or his duly authorized
representative, Director General of the National Economic and Development
Authority, or his duly authorized representative, the Secretary of the Department
of Science and Technology or his duly authorized representative, the President of
the Alumni Association of the Institute, two Prominent Citizens representing the
private sector, President of EARIST Federated Faculty Association and President
of the EARIST Student Government.

Compensation of Institute’s Officials and Members of the BOT

The aggregate remuneration of EARIST officials and members of the governing

body is as follows:

Particulars Amount
Basic Salaries 5,115,899.90
Allowances and Other Benefits 4,504,082.14
Total 9,619,982.04

The Chairman and members of the BOT who have supervision over EARIST are
not remunerated by EARIST except for the President and Alumni Representative.
The members of the BOT serve without compensation other than actual and
necessary expenses incurred either in the attendance to the meetings of the BOT
or on other official business related to their position as Trustee as authorized by
the Board.

36