Proof of Correctness of the Financial Statements for the Current Year (CY 2016):

I. Pre-Closing Trial Balance

a) The account names, account codes and arrangement of accounts are in accordance
with the Revised Chart of Accounts;
b) Non-existence of the following accounts:
1. Cash – MDS, Regular
2. Cash – Tax Remittance Advice (exception NG Books of BIR, BOC and BTr)
3. Subsidy to National Government Agencies (for BTr NG Books only)
4. Provisions for Employee Benefits (PPSAS 25 not yet implemented/adopted)
5. Bail Bonds Payable (exception DOJ-BI, The Judiciary)
c) Existence of the following accounts:
1. Cash – Treasury/Agency Deposit Account, Regular
2. Cash – Treasury/Agency Deposit Account, Special Account
d) Unused NCA already reverted:
1. Cash – MDS, Regular to Subsidy from National Government
2. Cash – MDS, Special Account to Subsidy from National Government or Cash –
Treasury/Agency Deposit, Special Account
3. Cash – MDS, Trust to Cash - Treasury/Agency Deposit, Trust
e) Reconciled intra-agency reciprocal accounts had been eliminated
f) Abnormal balances of accounts (should be verified and nature should be disclosed in the
Notes)

II. Post Closing Trial Balance

a) Non-existence of Nominal Accounts

b) Real accounts and their balances should be the same with the accounts and account
balances per Statement of Financial Position.

FINANCIAL STATEMENTS:

A. Statement of Financial Position

1) Total Balance of Cash and Cash Equivalents in the Statement of Financial Position as of
December 31, 2016 should tally with the Cash and Cash Equivalents as of December 31 in
the Statement of Cash Flows.

Note: Exception is the Bureau of the Treasury NG Books. The SCF Balance of BTr NG
includes the Sinking Fund cash accounts.

2. Net Assets (Total Assets less Total Liabilities) should equal with the amount of Net
Assets/Equity.

3. The balance of Accumulated Surplus/(Deficit) in the Statement of Financial Position as of

December 31, 2016 should tally with the balance at December 31, carried forward in the

1
 Statement of Changes in Net Assets/Equity (SCNA/E), Accumulated Surplus/(Deficit) for the
Year Ended December 31, 2016.

B. Statement of Changes in Net Assets/Equity (SCNA/E), Accumulated Surplus/(Deficit)

Accumulated Surplus/(Deficit)

Balance at December 31, 2015 The amount of Accumulated

Surplus/(Deficit)to be presented in this
caption shall be taken from the Balance at
December 31, 2015which was carried
forward as beginning balance in the Books of
Accounts/General Ledger at January 1, 2016

Changes in Accounting Policy The amount to be reflected in this caption

represents the difference between the net
amount of direct adjustments to
“Accumulated Surplus/(Deficit” account due
to “Changes in Accounting Policy”as
reflected in the SCNA/E, Accumulated
Surplus/(Deficit)forCY 2015 as Restatedand
the amount in the SCNA/E, Accumulated
Surplus/(Deficit) at December 31, 2015

Prior Period Adjustments/Unrecorded The amount to be reflected in this caption

Income and Expenses represents the difference between the
amount of “Surplus/(Deficit) for the Period”
reflected in the Statement of Financial
Performancefor CY 2015 as Restated and
the amount in the Statement of Financial
Performance at December 31, 2015.

Other Adjustments The amount to be reflected in this caption

represents the difference between the net
amount of direct adjustments to
“Accumulated Surplus/(Deficit” account due
to “Other Adjustments”(or adjustments
pertaining to year/s prior to CY 2015) as
reflected in the SCNA/E (Accumulated
Surplus/(Deficit) for CY 2015 as Restated
and the amount in the SCNA/E
(Accumulated Surplus/(Deficit) at December
31, 2015.

Restated Balances The amount to be reflected in this caption

represents the sum of Beginning Balance at
December 31, 2015 and the net adjustments
to Accumulated Surplus/(Deficit) account

2

Changes in Net Assets/Equity for
Calendar Year
Adjustment of Net Revenue recognized
directly in Net Assets/Equity
Surplus/(Deficit) for the Period
Total Recognized Revenue and
Expenses for the Period
Others
Balance at December 31, 2016 Carried
Forward
3
due to:(1) Changes in Accounting Policy, (2)
Prior Period Adjustments/Unrecorded
Income and Expenses, and (3) Other
Adjustments, as shown above. This should
tally with the balance of the Accumulated
Surplus/(Deficit) account in the Statement of
Financial Position and the SCNA/E,
Accumulated Surplus/(Deficit) both for CY
2015, as Restated.
The amount to be reflected in this caption
represents the sum of “Total Recognized
Revenue and Expenses for the Period” and
“Others” as shown below.
The amount to be reflected in this caption
represents the total amount of accounts
“Cash – Treasury Agency Deposit, Regular”
and Cash – Treasury Agency Deposit,
Special Account” closed to the Accumulated
Surplus/(Deficit) account during the year.
The amount to be reflected in this caption
represents Surplus/(Deficit) as presented in
the Statement of Financial Performance for
the Year Ended December 31, 2016.
The amount to be reflected in this caption
represents the sum of “Adjustment of Net
Revenue recognized directly in Net
Assets/Equity” and “Surplus/(Deficit) for the
Period”.
The amount to be reflected in this caption is
the difference between the Restated
Balance of account “Accumulated
Surplus/(Deficit” for CY 2015 and the amount
reflected in the Adjusted Pre-Closing Trial
Balance as of December 31, 2016.
The amount to be reflected in this caption
represents the sum of “Restated Balance”
and “Changes in Net Assets/Equity for
Calendar Year” as shown above. This
should tally with the balance of Accumulated
Surplus/(Deficit) account reflected in the
Statement of Financial Position as of
December 31, 2016.
C. Statement of Financial Performance

1. The amount of “Surplus/(Deficit) for the Period” should tally with the amount of
“Surplus/(Deficit) for the Period” as reflected in the Statement of Changes in Net
Assets/Equity, Accumulated Surplus/(Deficit) for the Year Ended December 31, 2016.

D. Statement of Cash Flows

1.Cash and Cash Equivalents January 1, 2015 reported in the Statement of Cash Flows
should tally with the Total Balance of Cash and Cash Equivalents in the Statement of
Financial Position as of December 31, 2015;

2. Cash and Cash Equivalents as of December 31, 2016 reported in the Statement of Cash
Flows should tally with the Total Balance of Cash and Cash Equivalents in the Statement
of Financial Position as of December 31, 2016.

3. Others:

1. Inclusion of Constructive Receipt of NCA for TRA and Remittance of Taxes thru TRA;

2. Receipt and release of intra agency fund transfers must be reconciled and eliminated;

3. Collection of Income can be traced and reconciled with the Statement of Financial
Performance and FAR No. 5;

4. Remittances of collections (revenues and other receipts) can be traced and reconciled
with the Pre-Closing Trial Balances, SCNA/E and FAR No. 5;

5. Grant of Cash Advances granted during the year should be net of liquidations during
the year;

6. Prepayments during the year should be net of amount utilized/expended during the
year;

7. Restoration of cash for unreleased checks should be for unreleased commercial checks
only;

8. Replenishment of encashed MDS checks is for BTr NG Books only;

E. Statement of Comparison of Budget and Actual Amounts

1. Receipts(Revenues which the NGAs are not authorized to use and are required to be
remitted with the National Treasury; and Borrowings)

a. Original Amount – the amount should tally with the Projected/Estimated

Revenue as reflected in the Budget of Expenditures and Sources of Financing
(BESF) or Estimated Revenue per Approved Budget of the Agency (ERABA) for the
Year 2016;

4
 b. Final Amount – the amount should tally with the Revenue Target (Annual) as reported
in Column 3 of the Quarterly Report of Revenue and Other Receipts/Financial
Accountability Report (FAR) No. 5 under the General Fund and Special Account in the
General Fund (SAGF) and recorded in the Registry of Revenue and Other Receipts
(RROR) for RA and FAP, and SAGF, for the Year 2016.

c. Actual Amount - the amount should tally with the Actual Revenue Collections as
reported in Column 8 of FAR No. 5 under the General Fund and SAGF and recorded
in the RROR (RA and FAP, and SAGF) for the Year 2016.

d. Difference – the amount represents the variance between Final Amount of Revenue
Target and Actual Amount of Revenue Collected as reported in Column 12 (Variance)
of FAR No. 5 under the General Fund and SAGF and recorded in the RROR (RA and
FAP, and SAGF), for the Year 2016. It also represents the under/(over) collections of
the National Government for CY 2016.

2. Payments(Based on RAPAL and RAOD maintained by the NGAs including GOCCs with
allotments from the NG under SAGF)

a. Original Amount – the amounts should tally with the Grand Total of Authorized
Appropriationsfor PS, MOOE, FE and CO, (from Specific Agency Budget, Special
Purpose Funds and Automatic Appropriations), as reported under Column 3 of FAR
No. 1 Current Appropriations for CY 2016, including the Not Yet Due and Demandable
Unpaid Obligations as reported in Column 24 of FAR No. 1 for Current and Continuing
Appropriations for CY 2015.

b. Final Amount – the amounts should tally with the Grand Total of Adjusted Appropriations
for PS, MOOE, FE and CO (Adjusted thru Transfer to/(From) another NGA/s and
Realignment/Augmentation) as reported under Column 5 of FAR No. 1, Current and
Continuing Appropriations for CY 2016.

c. Actual Amount - the amounts should tally with the Grand Total of Total Disbursements
for PS, MOOE, FE and CO as reported under Column 20 of FAR No. 1, Current and
Continuing Appropriations for CY 2016. Total Disbursements for PS, MOOE, FE and
CO as reported under Column 20 of FAR No. 1, Current and Continuing Appropriations
for CY 2016 should tally with the Total Disbursements as reported in Column 6 (Current
Year Budget) and Column 16 (Prior Year’s Budget – Current Year’s Accounts Payable)
of the Monthly Report of Disbursements ( from January to December, 2016).

d. Difference – the amounts represent the variance between Final Budgeted Amount and
Actual Disbursements for PS, MOOE, FE and CO. It also represents the unreleased
appropriations, unobligated allotments and unpaid obligations of the NG for CY 2016.

3. Net Receipts/Payments – the amounts represent the differences between Original, Final
and Actual Amounts for Receipts and Payments.

5
6