Legislative Executive Development Advisory Council

Notes to Financial Statements

For the year ended December 31, 2023

1. General Information/Agency Profile

The financial statements (FSs) of Legislative Executive Development Advisory

Council (LEDAC) were authorized for issue on January 26, 2024 as shown in the
Statement of Management Responsibility for Financial Statements (FSs) signed by
Supervising Director Danilo D. Barrameda, the LEDAC Secretariat, and
Undersecretary Krystal Lyn T. Uy, the Supervising Undersecretary of LEDAC.

The LEDAC was constituted by the Republic Act (RA) No. 7640 on December 9,
1992. It was envisioned to act as an effective advisory and consultative mechanism to
ensure consistency in coordinating executive development planning and congressional
budgeting. Currently, it provides the mechanism for generating consensus among the
legislative and executive branches on various socio-economic goals/objectives. The
Council also serves as a consultative and advisory body to the President, as Head of
the national economic planning agency, on certain programs and policies essential to
the realization of the goals of national development.

The Agency’s registered office is located at No. 12 Saint Josemaria Escriva Drive,
Ortigas Center, Pasig City.

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

The accompanying FSs have been prepared in accordance with the Government
Accounting Manual for National Government Agencies (NGAs) and the Revised
Chart of Accounts per Commission on Audit (COA) Circular No. 2020-001 dated
January 8, 2020, and complies with the Philippine Public Sector Accounting
Standards (PPSASs) under COA Resolution No. 2014-003 dated January 24, 2014,
renamed as International Public Sector Accounting Standards (IPSASs) under COA
Resolution No. 2020-001 dated January 9, 2020.

The FSs have been prepared based on historical cost, unless stated otherwise. The
Statement of Cash Flows is prepared using the direct method.

3. Summary of Significant Accounting Policies

3.1 Basis of Accounting

The FSs are prepared on an accrual basis in accordance with the IPSASs.

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3.2 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and cash at bank, deposits on
call which are readily convertible to known amounts of cash and are subject to
insignificant risk of changes in value. For the purpose of the statement of cash
flows, cash and cash equivalents consist of cash and short-term deposits as
defined above, net of outstanding bank overdrafts.

3.3 Inventories

Inventory is measured at cost upon initial recognition. To the extent that

inventory was received through non-exchange transactions (for no cost or for a
nominal cost), the cost of the inventory is its fair value at the date of acquisition.

The cost of inventories comprises all costs of purchase, cost of conversion, and
other costs incurred in bringing the inventories to their present location and
condition.

Inventories are recognized as an expense when deployed for utilization or

consumption in the ordinary course of operations of the LEDAC.

3.4 Property, Plant and Equipment

Recognition

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

characteristics and recognition criteria as a PPE.

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

An item recognized as PPE is measured at cost.

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 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 the management.

Depreciation Method

The straight-line method of depreciation is adopted using a residual value of 10

percent of the cost.

3.5 Changes in accounting policies and estimates

The LEDAC recognizes the effects of changes in accounting policy

retrospectively. The effects of changes in accounting policy are applied
prospectively.

The LEDAC correct material prior period error retrospectively in the first set of
financial statements 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.

3.6 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 FSs were not prepared on comparable basis.
The SCBAA is presented showing the original and final budget and the actual
amounts on comparable basis to the budget.

3.7 Employee benefits

The LEDAC recognizes the undiscounted amount of short term employee

benefits, like salaries, wages, bonuses, allowance, etc., as expense unless
capitalized, and as a liability after deducting the amount paid.

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4. Prior Period Adjustments

Prior Year adjustments are adjusted using the Accumulated Surplus/(Deficit), to which
the cumulative results of normal and continuous operations of the agency are recorded.

2023 2022
Particulars
(in P)
To recognize receivable due for settlement per
COA Decision No. 2017-423 dated December 20,
2017 for the payment of Cost Economy Measures
Award Incentive to the LEDAC Secretariat and
(160,200.00)
COA Notice of Finality of Decision No. 2020-383
dated November 25, 2020 per Journal Entry
Voucher (JEV) No. 101-2022-01-0027.

To recognize adjustment due to the remittance of 9,770.74

unutilized prepayment balances of Procurement
Service to the Bureau of Treasury that have
already formed part of the General Fund for the
implementation of the Social Amelioration
Measures to address the effects of the COVID-19
emergency per JEV No. 101-2022-09-0281.

Total Prior Period Adjustments 0.00 (150,429.26)

5. Receivables

2023 2022
Account
(in P)
Due from National Government Agencies 792.43 792.01
Total 792.43 792.01

Due from National Government Agencies pertain to advance payment of various office
supplies to Procurement Service.

The LEDAC Secretariat requested the Procurement Service to close its account and
refund the amount of P792.43 to the Bureau of the Treasury in relation to the letter
from the Department of Budget and Management dated July 5, 2023, confirming the
integration of the LEDAC as a unit under the National Economic and Development
Authority (NEDA).

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6. Property, Plant and Equipment

Motor Vehicles
Particulars 2023 2022
(in P)
Carrying Amount, January 1 0.00 112,500.00
Depreciation 0.00 0.00
Carrying Amount, December 31 0.00 112,500.00
Gross: Cost 0.00 1,125,000.00
Less: Accumulated Depreciation 0.00 1,012,500.00
Carrying Amount, December 31 0.00 112,500.00

The motor vehicle of LEDAC was fully depreciated as of April 30, 2021 and was
transferred to NEDA per JEV No. 101-2023-12-0241 dated December 29, 2023.

7. Other Current Assets

2023 2022
Account
(in P)
Prepaid Insurance 0.00 2,131.12
Total 0.00 2,131.12

Prepaid Insurance pertains to unexpired portion of Government Service Insurance

System Comprehensive and Compulsory Third-Party Liability premium of LEDAC
vehicle. In CY 2023, the remaining amount of insurance of P2,131.12 expires and due
to the integration of LEDAC with NEDA, the renewal of the insurance was recorded
in the books of NEDA.

8. Financial Liabilities

2023 2022
Account
(in P)
Accounts Payable 0.00 41,592.95
Due to Officers and Employees 0.00 10,857.00
Total 0.00 52,449.95

Accounts Payable account has no outstanding balance in CY 2023, since full payment
has been made for goods delivered and other bonuses and allowances of a separated
employee as at December 31, 2023.

Due to Officers and Employees represents amount of claims and other personnel
benefits to employees of CY 2022, but fully paid in CY 2023.

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9. Personnel Services

This account consists of the following:

2023 2022
Account
(in P)
Salaries and Wages
Salaries and Wages – Regular 1,024,454.36 1,901,640.05
Salaries and Wages – Casual/Contractual 236,901.00 387,852.00

Other Compensation
Personnel Economic Relief Allowance (PERA) 42,000.00 77,545.45
Clothing/Uniform Allowance 18,000.00 18,000.00
Year-End Bonus 0.00 174,379.00
Cash Gift 0.00 15,000.00
Mid-Year Bonus 181,165.00 174,379.00
Other Bonuses and Allowances 108,855.13 131,538.00

Personnel Benefit Contributions

Retirement and Life Insurance Premiums 151,372.10 299,489.75
Pag-IBIG Contributions 2,100.00 3,900.00
PhilHealth Contributions 25,233.02 44,551.01
Employees Compensation Insurance Premiums 2,100.00 4,100.00

Other Personnel Benefits

Other Personnel Benefits 0.00 74,000.00
Total 1,792,180.61 3,306,374.26

10. Maintenance and Other Operating Expenses

This account consists of the following:

2023 2022
Account
(in P)
Training and Scholarship Expenses
Training Expenses 0.00 28,844.48

Supplies and Materials Expenses

Office Supplies Expenses 15,458.19 43,565.59
Medical, Dental and Laboratory Supplies Expenses 0.00 20,000.00
Fuel, Oil and Lubricants Expenses 15,793.03 101,939.69
Semi-Expendable Machinery and Equipment 0.00
Expenses 4,534.40
Other Supplies and Materials Expenses 0.00 2,753.09

Professional Services
Other Professional Services 200.00 0.00

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 2023 2022
Account
(in P)
Repairs and Maintenance
Repairs and Maintenance - Transportation
Equipment 19,246.00 9,125.00

Taxes, Insurance Premiums and Other Fees

Taxes, Duties and Licenses 2,010.00 2,685.06
Fidelity Bond Premiums 7,500.00 7,500.00
Insurance Expenses 6,150.51 6,291.86

Other Maintenance and Operating Expenses

Printing and Publication Expenses 0.00 92,549.25
Representation Expenses 108,476.50 60,384.50
Subscription Expenses 0.00 755.66
Total 174,834.23 380,928.58

11. Net Assistance/Subsidy

Assistance/Subsidy from National Government Agencies

2023 2022
Particulars
(in P)
Subsidy from National Government 4,188,538.00
Tax Remittance Advice 136,887.83 342,616.58
Reversal of Unutilized Notice of Cash Allocation (1,279,664.06) (797,531.59)
Assistance to Other National Government Agencies (2,009.68) 0.00
Net Assistance/Subsidy 2,017,334.09 3,733,622.99

Assistance to Other National Government Agencies pertains to the existing GSIS

Comprehensive and Compulsory Third Party Liability premiums valid until April
2024 of the motor vehicle transferred to NEDA.

12. Statement of Comparison of Budget and Actual Amount

The decrease in the payment of personnel services and maintenance and other
operating expenses totaled from P3,521,152.25 to P1,966,893.82 with a difference of
P1,554,258.43 is mainly attributable to the integration of the LEDAC Secretariat as a
unit under NEDA.

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