Note 7 – Prepayments and Deferred Charges
This account consists of the following:
2024 2023
Prepayments
Advances to Contractors ₱ 6,546,232.31 ₱ 6,230,395.33
Prepaid Insurance 2,541,272.77 2,746,238.09
Other Prepayments 3,156,248.56 3,375,402.23
Total ₱ 12,243,753.64 ₱ 12,352,035.65
The account Advances to Contractors represents the advance payment made to contractors
which is equivalent to 15% of the contract amount.
The balance of the Prepaid Insurance account represents the unexpired portion of the insurance
premiums of the City vehicles and the newly constructed Mega Market. Expired portion
amounting to ₱4,776,406.27 was charged to Insurance Expense.
Other Prepayments include the ₱5,000,000.00 deposit with Corazon Locsin Memorial Hospital
(CLMH) in CY 2018, based on the Memorandum of Agreement between the City Government
and CLMH. It is intended to pay for the hospital bills of indigent constituents endorsed by the
City Government to CLMH for treatment/confinement. A total of ₱1,843,751.44 in validated
billings from CLMH was debited from the account from CY 2019 to CY 2024. Balance per
books was ₱3,156,248.56 as of December 31, 2024.
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