Note 7 – Prepayments and Deferred Charges
This account consists of the following:
2024 2023
Advances to Contractors ₱ 10,098,947.53 ₱ 8,575,729.85
Prepaid Insurance 77,341.95 80,373.36
Discount on Advance Payments 1,882,515.26 1,571,771.80
Total Prepayments and Deferred Charges ₱ 12,058,804.74 ₱ 10,227,875.01
Prepaid Insurance represents the unexpired portion of the insurance premiums for
government vehicles while Deferred Charges represent discounts on advance payments of
Real Property Tax from various taxpayers. Advances to Contractors represent advance
payment to contractors not exceeding 15% to cover the cost of mobilization. The advance
payment shall be repaid by the contractor by deducting fifteen percent (15%) from their
progress payments.
Note 8 – Property, Plant and Equipment (net of depreciation)
This account consists of the following (see attached sheet)
The LGU measures the residual value of all items of property, plant and equipment,
but does not expect a residual value for these assets, because these will be utilized for their
entire economic lives and do not have a significant scrap value. During the current financial
year, the LGU reviewed the estimated useful lives and residual values of property, plant and
equipment, where appropriate.
The following Public Infrastructures totaling ₱6,401,858.18 were transferred to the
Registry of Public Infrastructures:
Road Networks ₱ 3,469,129.05
Water Supply Systems 2,932,729.13
Total ₱ 6,401,858.18
Increase of land and buildings is mostly attributed to the procurement of right-of-way
for the development of the New Dumaguete International Airport.
The LGU has a total of approximately 3.961 kms of roads, more or less, with a total
cost of ₱33,069,606.77. For the year ended, the agency spent a total of ₱7,521,366.90 for
concreting and opening of road. The length of the road networks recorded in the books at a
value of ₱1,257,974.44 is still subject to verification.
The decrease in the PPE is attributed to the reversal of the booking for the properties
acquired due to the development of the New Dumaguete International Airport.
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