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pmosur igao@39: SUSTAINING THE COMMITMENT FOR MEANINGFUL DEVELOPMENTS

Noliboy2017

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Contents

Our Cover To mark the PMO’s 39th Anniversary in 2016, the PMO adopted the theme: pmosurigao@39: Sustaining the Commitment for Meaningful Developments. It served as the defining principle in coming up with the cover design of the 2016 PMO Surigao Annual Report. As such, an image of a Helmsman’s wheel figures prominently on the cover’s lower half to emphasize the PMO’s traditional role as the Surigao Port Community’s skipper, tasked to sustain commitments for meaningful developments.

Placed at the dark blue strip footer are three icons/symbols representing: (1) Human Resources (2) Shipping/Cargo Operations and (3) the standard ‘Sustainability’ icon, positioned in between the other two symbols to illustrate ‘sustainable collaboration’ between shipping/maritime trade and people/port community.

On the other hand, to underscore the growing importance of RORO shipping and its impact on the nation’s maritime economy, the image of RORO ships on loading operations serves to highlight the positive impacts of RORO shipping - eliminating handling expenditures, reducing required port stays and bringing down transport cost.

Meaningful developments that make a positive difference. Commitments worthy of sustaining, well and beyond the coming years.

The Port Manager’s Report 05

Shipping and Trade Performance 08

Physical Infrastructure Development and Maintenance 15

Security, Sustainability and People Development 18

Financial Performance 22

Income Statement 24

Notes to Financial Statements 25

Executive Officers 30

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•

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QUALITY POLICY

“It is the policy of the Philippine Ports

Authority to consistently provide and

continually improve the quality of its

port operations and services on the

facilitation of vessel entrance and

clearance processes at the Port of

Surigao that satisfies the needs

and expectations of its interested

parties and comply with national,

international, statutory

and regulatory requirements.”

A

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THE PORT MANAGEMENT OFFICE

OF SURIGAO remained on top of its tar-

gets and goals and made impressive gains

particularly in revenue collection when it

breached the half-billion mark for the first

time in more than three decades. Total in-

come for CY 2016 reached Php505 million,

up by 8% over target.

And despite the many challenges and per-

ceived uncertainties, particularly with the

change of political leadership in 2016, the

Philippine economy proved robust enough

to weather the many tectonic shifts that oc-

curred here and abroad. The country’s Gross

Domestic Product (GDP) recorded an im-

pressive growth rate of 7.1% in the last

quarter of 2016, making the Philippines

the fastest-growing emerging economy in

THE PORT MANAGER’S

REPORT Asia, surpassing China’s 6.7%

growth rate for the same period.

It goes without saying that the sus-

tained upward trend of the Philip-

pine economy mirrored the gener-

ally positive scenario in the coun-

try’s ports. In September alone, the

Philippine Statistics Authority (PSA)

has reported that imports rose to

$7.101 billion while exports regis-

tered $5.211 billion, buoyed no

doubt by the sustained growth in

the local mining industry’s exporta-

tion of mineral products. The PSA

website listed metals and mineral

products as among the top ten

gainers in the export of goods and

commodities for 2016.

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In line with the Authority’s

continuous resolve to provide

clients, stakeholders and the

general public with facilities,

amenities and services that

meet globally benchmarked

standards and best practices

parallel with the pursuit of

ISO compliant processes and

procedures, the implementa-

tion and facilitation of Quality

Management System on Ves-

sel Entrance and Clearance

(QMS-VEC) processes at the

Port of Surigao has been given

due course, along with fifteen

(15) other base ports nation-

wide.

Launched and implemented in

the last quarter of 2016, the

results of an internal audit

conducted in December 2016

yielded positive indications

that significant strides were

made, and that the Port of

Surigao is right on track in

meeting its goal to attain ISO

certification.

To foster quality culture

throughout the organization,

the PMO maintained its com-

mitment to build the capabili-

ties of its management team,

as well as the rank and file

with development interven-

tions and training programs.

In 2016, fourteen (14) PMO

personnel attended various

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local trainings and seminars

such as Meeting/Workshop

re- Implementation of Local

Climate Change Action

Plan, Construction Occupa-

tional Safety and Health

(COSH), Convention of

HRM Practitioners

(HRMPs), Updates on RA

9184, Integrated Planning

Course of Incident Com-

mand System (ICS) , among

others. For In-house train-

ings, PMO Surigao has sent

a total of eighty six (86)

participants (exclusive of in

-house re-echo seminars)

with a total of 928 trainings

hours for various (30) In-

house trainings.

To ensure the safety, secu-

rity and smooth flow of

port users/passengers, ve-

hicles and cargoes at all

ports under our jurisdic-

tion, the PMO enforced

heightened security alert

throughout the year.

With the relentless, untir-

ing and pro-active cam-

paign in the fight against

human trafficking, opera-

tives of the Port Police

Division (PPD) successful-

ly foiled numerous

attempts to transport ille-

gally recruited individuals

to work as domestic help-

ers and sweatshop labor-

ers without Permit from

the Department of Labor

and Employment (DOLE).

Moreover, increased vigi-

lance among security op-

eratives successfully

thwarted various

attempts to transport

prohibited items such as

firearms and bladed

weapons, even exotic

wildlife/endangered spe-

cies protected under the

country’s environment

laws.

As the PMO successfully met its targets

and goals in the year 2016, we shall strive

to sustain its growth momentum and up-

hold its core values – guiding principles

that dictate the PMO’s stance and ac-

tions, and in determining the path to ful-

fill our goals. The motivation to surpass

previous performance and deliver well on

our commitments shall remain para-

mount for time and again, the PMO has

proven its resilience, weathering the

many challenges and constraints for the

past 39 years.

The unyielding strive to continually do

better, along with consistent efforts in

sustaining the commitment for meaning-

ful development in the years to come,

shall continue to define PMO Surigao.

MILDRED J. PADILLA Port Manager

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SHIPPING AND TRADE

With the growing importance of RORO

shipping, more and more RORO vessels

were acquired by shipping lines and de-

ployed at ports under the RORO Termi-

nal System (RRTS). Hence, domestic car-

go throughput for 2016 went down by

14% as cargoes were increasingly

shipped through the RRTS in 2016.

On the other hand, the continued expor-

tation of mineral products at private

mining ports under the PMO’s jurisdic-

tion translated to a modest 3% hike in

foreign cargo throughput. Moreover, last

year saw vessels loading more than the

usual 50,000 metric tons with increased

frequency, resulting to increased foreign

cargo handled at mining ports under the

PMO’s jurisdiction.

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The continued dominance of maritime transport as a preferred mode of travel to get around the Philippine archipelago, along with the government’s sustained campaign to boost the eco-tourism industry in areas un-der the PMO’s jurisdiction, led to rising demand for in-creased capacities that can adequately serve the riding public. As such, shipping companies responded by field-ing additional vessels and/or increased frequency of trips, particularly at ports serving various emerging tour-ist destinations such as those in the island province of Dinagat and/or high-traffic facilities such as the Lipata Ferry Terminal The year 2016 also saw the entry of new players serving various ports under the PMO such as Archipelago Philip-pine Ferries Corporation whose MV Fast Cat 7 started reg-ular service plying the Lipata-Liloan v.v. route in January. Another shipping line, the General Santos City-based Atlan-tis Yohan Express Corporation, fielded its new fast ferry, the MV Yohan Cruiser, and started daily service, con-necting the port of Surigao to the ports of San Jose and Loreto in the island province of Dinagat. just in time for summer in the first week of May, Meanwhile, tourist ports such as the gateway port of Dapa in Siargao Island also saw a rise in the frequency of trips serving the Surigao – Siargao v.v. leg. The improved perfor-mance of PMO Surigao’s domestic ports only serves to vali-date the success of the government’s campaign to boost domestic tourism. On the other hand, foreign shipcalls slightly dropped by 3% in 2016. This can be attributed to the deployment of larger capacity bulk carriers used in transporting nickel ore.

Port of Dapa, Siargao Islands

Port of San Jose, Dinagat Islands

Anchorage Area for Mining Ports at the Claver-Carrascal Mining Corridor

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Passenger traffic improved in

2016 with a 17% increase over

the previous year’s passenger

volume

The sea-travelling public has apparently

responded positively to the govern-

ment’s domestic eco-tourism programs

promoted through social media by en-

couraging leisurely inter-island Ro-Ro

travel to various tourist destinations

such as Siargao Islands and other

emerging eco-tourism sites in the prov-

inces of Surigao del Norte, Surigao del

Sur and the province of Dinagat Islands

through the eastern nautical highway.

Notwithstanding the impact of com

petition posed by airlines offering budg-

et fares, maritime transport remains an

equally preferred mode among Filipino

travelers.

Many travelers realized that sailing the

Philippine waters on board RORO ships

offers a cost-effective way to travel on a

budget. With the renewed interest in

inter-island sea transport, passenger

terminal facilities equipped with stand-

ard amenities were built and operation-

alized at the Port of Del Carmen in Siar-

gao Islands and the Port of San Jose in

Dinagat Islands in 2016 for the comfort,

safety, and convenience of passengers

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Permits and Licenses

A total of 110 Permits to Operate (PTOs) Port Ancillary Services were issued by the PMO in 2016 and processed through the Electronic Permits Management System (e-PMS), a web-based system that facilitates the application, approval, and issuance of permits initially for Port Ancillary Service and Vehicle/Port Us-ers’ Pass developed in-house by the Information and Communi-cations Technology Department.

On the other hand, 17 Permits to Occupy (PTOc) port real es-tate were issued by the PMO in 2016.

PERMITS TO OCCUPY (PTOc) ISSUED

Location/Port Permitee/Company Description of

Leased Property

Validity

Effectivity Expiration

Port of Surigao HLG Cargo Agency Container Yard 01 Jan. 2016 31 Dec. 2016

Escaño Lines Inc. Container Yard 01 Jan. 2016 31 Dec. 2016

Escaño Lines Inc. Ticketing Office 01 Jan. 2016 31 Dec. 2016

Alreo Store Sari-Sari Store 01 Jan. 2016 31 Dec. 2016

Mohammad Dry Goods Store Dry Goods Store 01 Jan. 2016 31 Dec. 2016

Meah’s Souvenir Shop Souvenir Shop 01 Jan. 2016 31 Dec. 2016

Water UPS Multi Purpose Coop. Ticketing Office 01 Jan. 2016 31 Dec. 2016

Montenegro Shipping Lines Inc. Ticketing Office 01 Jan. 2016 31 Dec. 2016

The PMO’s Permits and Licensing staff provides technical assistance on the e-PMS process for first-time PTO applicants

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PERMITS TO OCCUPY (PTOc) ISSUED

Location/Port Permitee/Company Description of

Leased Property

Validity

Effectivity Expiration

PCBSI Dispatcher’s Booth 01 Jan. 2016 31 Dec. 2016 Port of Surigao

PCBSI Motorpool Area 01 Jan. 2016 31 Dec. 2016

JP Shipping Lines Inc. Ticketing Office 01 Jan. 2016 31 Dec. 2016

Atlantis Yohan Express

Corp.

Ticketing Office 01 Jan. 2016 31 Dec. 2016

Land Bank of the Phils. ATM Banking Facility 01 Jan. 2016 31 Dec. 2016

Metropolitan Bank &

Trust Co.

ATM Banking Facility 01 Jan. 2016 31 Dec. 2016

Port of Hayanggabon Winchman Arrastre and Stevedoring Services Inc.

CHO Office 01 Oct. 2016 30 Sept. 2017

Port of San Jose Doming Arrastre and

Stev. Services Inc.

CHO Office 01 Jan. 2016 31 Dec. 2016

Port of Lipata PCBSI Weighbridge/Ticket

Booth

01 Jan. 2016 31 Dec. 2016

Millennium Shipping Co. Ticketing Booth 01 Jan. 2016 31 Dec. 2016

Leased commercial stalls inside the Port of Surigao Passenger Terminal Building

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PHYSICAL INFRASTRUCTURE

Driven by the goal of providing for the needs of our stakeholders and the public, the

PMO implemented a number of projects to adequately meet, if not exceed, operational

requirements.

In 2016, the PMO completed five (5) Capital Expense (CAPEX) projects while one (1) un-

dertaking, namely the Construction of Back-up Area, RORO Ramp, Site development and

Back-up Area at the Port of Dapa in Siargao Islands, Surigao del Norte was substantially

completed with 97.70% actual completion as of 25 December 2016.

On the other hand, four (4) Repair and Maintenance Projects were completed in 2016

namely Repair of Damaged Concrete Pavement, Slope Protection and Drainage System

at the Port of Tandag in Surigao del Sur; Repair of Damaged Concrete Pavement, Repair

of Damaged Back-up Area and Rock Bulkhead at Berth No. 7 and Repair of Fendering

System at Berth Nos. 4, 6 & 7, all in the Base Port of Surigao in Surigao City.

Refurbished rubber fenders at Berth nos. 4, 6 and 7 of the Port of Surigao, Surigao City

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Improvement of Concrete Causeway, Port of Sta. Monica (Phase 2)

Hayanggabon Port Development Project

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Restored/repaired damaged back-up area and rock bulkhead, Port of Surigao

Construction of Cargo Shed, Port of Dapa

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The PMO, through its Port

Police Division (PPD), en-

forced heightened security

alert throughout the year

to ensure the safety, securi-

ty and smooth flow of port

users, vehicles and cargoes

in coordination with other

PMO Divisions and Termi-

nal Management Offices.

With effective and immedi-

ate response mech-

anisms in its cam-

paign against hu-

man trafficking and

illegal recruitment,

numerous attempts

to transport sus-

pected victims of

illegal recruitment

and human traffick-

ing were foiled.

One notable case involved the

successful interception of an

attempt to transport twenty

seven (27) women at the Port

of Lipata who claimed to be

students on an educational

tour led by a 47 year-old man

who presented himself as

their schoolteacher. Alert se-

curity operatives however be-

came suspicious, asked ques-

tions and standard docu-

ments such as school permits

and/or certifications and

school IDs. The alleged

schoolteacher however

failed to present any of

the documents, which led

operatives to treat the 27

women as suspected vic-

tims of human trafficking

Appropriate complaints

were filed against the sus-

pect and his cohorts.

SECURITY, SUSTAINABILITY and

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Transport of Exotic Wildlife Foiled

For attempting to illegally transport

wildlife protected under Philippine

environmental laws, five suspects

were collared by the Lipata Compo-

site Team (PPA, PCG, PNP and DENR)

while trying to ship endangered spe-

cies as rolling cargo loaded on

Mitsubishi Van about to go on-board

as RORO vehicle. Criminal cases were

filed against the suspects before the

City Courts for violation of RA 9147

known as Wildlife Resources Conser-

vation and Protection Act.

OPLAN “Bakal” at the Port

To ensure the prevention of shipment or entry of bladed or prohibited items to/from the port, the PPD in coordina-tion with the different TMOs imple-mented the Oplan “Bakal”. Despite of the non-operational of baggage scan-ning machines at the Ports of Surigao and Lipata, still stringent security in-spections thru manual were conducted at the gates and the Passenger Terminal Buildings (PTBs), except at the Port of Dapa which is still operational resulted to the interceptions and confiscations of several bladed items and filing of one case against a suspect. A total of 150 pieces of various bladed and prohibited items were confiscated at the Ports of Surigao, Lipata, Dapa and San Jose. The confiscated item were placed under the custody of the PPD.

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The Port Management Office of Surigao is ably manned by a total of sixty (60) competent personnel, representing 55% of the 109 GCG–approved plantilla posi-tions. It was in the 2016 2nd tranche of hiring that eight (8) newly hired joined the pool of PMO Surigao’s work force while nine (9) of the fifty two (52) incum-bents in 2015 were promoted.

The Administrative Division has success-fully completed on time the Recruitment and Selection of eighteen (18) positions in the 2nd tranche. A total of forty four (44) applications were received and eval-uated while seventeen (17) positions were filled-up .

For In-house Trainings, PMO Surigao has sent a total of seventy (70) participants (exclusive of in-house re-echo seminars) with a total of 624 trainings hours for various (30) In-house trainings. PMO Manager Mildred J Padilla attended vari-ous training courses/seminars in 2016 which include, among others, the Semi-nar on Logistics on Chain in Port Environ-ment, Port Operations Workshop and the International Maritime Organiza-tion’s (IMO) National Seminar on Facilita-tion of International Maritime Traffic .

SECURITY, SUSTAINABILITY and

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The PMO Surigao Gender and Development (GAD) Focal Point has implemented its GAD Training Programs based on 2016 GAD Plans and Programs. For 2016 PMO Surigao had a total of six (6) trainings with a total of 285 participants: Training/Forum on employees health concerns, Training/Seminar on RA 10361, Domestic Workers Act or Batas Kasambahay, Training/Seminar on Climate Change and Solid Waste Management, Conduct of Training/Seminar on RA 9995 or the Anti-Photo and Video Vo-yeurism Act of 2009 and RA 9775 or Anti-Child Pornography Act of 2009 and Training/Seminar on Continuing Education for Pro-gram Planners and Implementers: Stress Management.

As part of the PPA’s commitment to comply with RA 9485 otherwise known as the Anti-Red Tape Act (ARTA), PMO Surigao has religiously monitored and promptly submitted its monthly report to the Head Office and the Civil Service Commission. This year, the ARTA Champion prepared and submitted Revised Citizen’s Charter to include procedures and commitments included in the QMS-VEC.

The PMO, through its Administrative Division has continu-ally implemented austerity measures as part of its com-mitment to create savings for the PMO.

Despite the increase in budget utilization for 2016 com-pared to 2015 (except in the utilization of fuel and lubri-cants), actual funds utilization fell within (and even below) the budget for all expense items. Such favorable variance was largely due to the cooperation and adherence of PMO employees with the implementation of austerity measures by the Administrative Division.

GENDER and DEVELOPMENT (GAD)

2015 – 2016 COMPARATIVE REPORT ON EXPENSES Office Supplies, Utilities and Fuel

PARTICULARS Actual 2016 Actual 2015 Variance 2016 Utilization 2016 Budget Variance

SUPPLIES &

MATERIALS 1,574,941.51 1,276,838.18 23% 1,574,941.51 1,644,840.00 (4%)

POWER 3,580,040.00 2,798,362.72 28% 3,580,040.00 3,625,835.00 (1%)

WATER 3,939,873.41 3,234,002.19 22% 3,939,873.41 4,203,956.00 (6%)

FUEL 335,399.70 489,618.41 (31%) 335,399.70 999,960.00 (66%)

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FINANCIAL

“Effective Accounts Receivable management and improved

collection efforts pushed PMO Surigao’s income to record levels

as it broke past half a billion pesos for the first time in more

than three decades.”

The sustained efforts of the PMO’s Finance Division in monitoring the financial performance and operational activities of private ports, along with the strict implementation of Cash and Carry Policy, tremendously improved collection efficiency and further enhanced the PMO’s financial position in 2016. In addition, enhanced collection of delinquent receivables and the imposition of fines, penalties and other charges tremendously boosted last year’s income and attained the highest revenue ever.

Meanwhile, the operationalization of Passenger Terminal facilities at the Port of Del Carmen in Siargao Island and the Port of San Jose in Dinagat Islands contributed to the increased in last year’s take with the collection of Passenger Terminal Fees.

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FINANCIAL HIGHLIGHTS

Gross Earnings at PhP505 Million, representing 8% positive variance

against target

Net Income Ratio is at 57% (Net Income/Gross Revenue)

while Collection Efficiency and Liquidation of Cash

Advances are both at 100%

Taxes and Licenses (100%)

Fully Paid

Full (100%) Utilization

of AFMS Applications

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INCOME Statement

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NOTES TO FINANCIAL

Statements

AGENCY BACKGROUND

The Port Management Office of Surigao officially came to exist on August 1, 1977 when the Philippine Ports Authority estab-lished its port management unit in Surigao City and took over the port operations, maintenance and related functions from the Bureau of Customs and from the then Bureau of Public Works. Its baseport, the Port of Surigao, has a long and colorful history that dates back to the arrival of Ferdinand Magellan in 1521. From the Island of Homonhon, sailing through the strait of Surigao along the coast of Dinagat Island; Magellan’s fleet dropped anchor at Surigao for watering before proceeding to Cebu where he was killed at Mactan. Development of the Port of Surigao under the Fourth IBRD package was bidded on March 12, 1987 and awarded to F.T. Sanchez Construction on April 8, 1987. The contract took effect on September 28, 1987. The project was formally inaugurated on July 9, 1990 thus modernizing the port enhancing its role as a gateway to Mindanao. The PMO has jurisdiction over various ports in the provinces of Surigao Del Norte (including Siargao and Bucas Grande Islands), Surigao del Sur and the Province of Dinagat Islands. Passengers and cargoes from Southern Leyte and even Agusan Del Sur and Norte are handled at Surigao thereby making it the premier port in the Caraga region. Under PMO Surigao’s supervision are the four (4) Terminal Management Offices namely TMO Lipata in Surigao del Norte; TMO Siargao in Siargao Islands, Surigao del Norte; TMO Dinagat in the Province of Dinagat Islands and TMO Tandag in Surigao del Sur.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of the Financial Statements

The accompanying financial statements were prepared using the New Government Accounting System (NGAS) accounts pre-scribed under COA Circular No. 2004-2, the financial statements have been prepared using the historical cost convention and accrual basis of accounting.

The books and reports generated thru the Accounting and Financial Management System (AFMS), a sub-system of the PPA Computerized system, were used as basis in the preparation of the financial report for submission to COA. The system uses the NGAS Chart of Account under COA Circular No. 2008-06. With the recall of the said circular, accounts were mapped to those prescribed in COA Circular No. 2004-002 to generate the required COA reports.

Forms and reports as well the schedules of the different accounts generated thru the AFMS, developed using Oracle Software were customized to be compliant with the requirements of the National Government Accounting System (NGAS). The PMO’s consolidated financial statements include the financial transactions of Baseport, TMO Lipata, TMO Siargao, TMO Dinagat and TMO Tandag.

Statement of Compliance

The financial statements were prepared in conformity with applicable provisions of the following Philippine Accounting Stand-ards (PAS) and Philippine Financial Reporting Standards (PFRS) consistent with previous year’s financial reports. PAS 1 Presentation of Financial Statements PAS 2 Inventories PAS 7 Cash flow Statement PAS 10 Events after the Balance Sheet Date PAS 16 Property, Plant and Equipment PAS 18 Revenue PAS 19 Employee Benefits

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There are no transactions or cases in 2016 that would warrant the application of PAS 8, Accounting Policies, Changes in Ac-counting Estimates and Errors and PAS 20, Accounting for Government Grants and Disclosure of Government Assistance. All other accounting standards, financial reporting standards and financial interpretation issued by the Philippine Interpretation committee were deemed not applicable in accounting for the transactions of the Philippine Ports Authority, a government-owned and con-trolled corporation.

Presentation of Financial Statement

Presentation and classification of items in the Balance Sheet, Statement of Income and Expenses, Cash flow Statement and State-ment of Changes in Equity are consistent with prior year’s financial statements and generally conform to the provision of PAS 1, Presentation of Financial Statements. Likewise, comparative information and aggregation of each material class of items, as pre-sented separately, are consistent with prior year’s statement.

The accounts required to be presented in the face of the Balance Sheet and Income Statement conform to the provision of the PFRS 1. The financial statements were prepared using the accrual principle except for the Cash flow Statement. Each Material class of similar items is presented separately in the financial statements while dissimilar items whose amounts are considered immaterial were aggregated with prior year’s presentation.

Cash

Cash are carried in the balance sheet at cost. For the purpose of the Balance sheet presentation, cash consist of Cash on Hand and Cash in Bank, under cash on hand are Cash-collecting Officers, Cash- Disbursing Officers and Petty Cash Fund. Landbank of the Philippines is the depository bank both for current and savings account of the PMO.

Receivables

Accounts Receivables are recognized and carried at original invoice amount less an allowance for doubtful accounts. An estimate for doubtful accounts is being set up base on the following estimates:

Prepayments

This account includes the following:

Advances to Contractors not exceeding 15% of the total contract price are granted pursuant to Republic Act 9184. The advanc-es, which are repaid thru deductions from progress payments to Contractors, are secured with irrevocable letters of credit of equivalent values from commercial banks, bank guarantees or surety bond.

Bank Deposits 2015 2016 LBP Current Account 40,631,408.19 29,138,411.62 LBP Savings Account 8,831,839.59 4,716,665.54 Cash Collecting Officer (OR) 557,217.00 846,592.63 TOTAL 50,020,464.78 34,701,669.79

Age (days) of Account Rate of Allowance 1 – 30 days 5%

31 – 90 days 10%

91 – 180 days 20%

181 – 365 days 40%

Over 365 days 60%

Dormant with Nil Chance 100%

Breakdown of this account are as follows: 2015 2016

Calamity Loan Assistance 4,773,404.38 6,203,948.72

Due from Officer and Employees – Others 29,640.13 18,078.06

Receivables – Disallowances/Charges 184,133.04 78,805.36

Other Miscellaneous Receivables 132,964.30 86,644.

TOTAL 5,120,141.85 6,387,476.90

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Prepaid Taxes consist of the amounts of expanded or creditable withholding taxes deducted by port users from wharfage, vessel charges, rental of real property and other port facilities. Section 76 of the National Internal Reve-nue Code allows cash refund of the amount withheld or the use of covering tax credit certificates against future tax.

Other Prepayments The account includes advance payment made to suppliers for the use/rental of facility.

Other Current Assets

This account includes the following:

Input-Value Added Tax pertains to the carried over balance of VAT paid by the Authority for acquired goods and services that may be applied as tax credit or deducted from the remittance of Output VAT.

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation and impairment in value.

Initially, Property and Equipment is measured at its cost, which comprises its purchase price and any direct attribut-able costs of bringing the asset to working condition.

Depreciation is computed based on the carrying values of the assets using the straight-line method with 10% sal-vage value and based on estimated useful lives provided by Head Office

At Dec.31, 2015 Land Bldg. and Other Structures

Machinery and Other Equipment

Service Vehicle Furniture, Fixtures and Equipment

Total

Cost 329,577,476.04 1,526,347,097.55 22,766,763.77 4,753,060.86 22,072,463.60 1,905,516,861.82

Accumulated Dep’n. 670,857,638.78 16,417,767.42 2,231,035.38 10,905,949.22 700,412,390.80

Net Book Value 329,577,476.04 855,489,458.77 6,348,996.35 2,522,025.48 11,166,514.38 1,205,104,471.02

At Dec.31, 2016 Land Bldg. and Other Structures

Machinery and Other Equipment

Service Vehicle Furniture, Fixtures and Equipment

Total

Cost 401,076,221.96 1,573,638,681.61 22,766,763.77 4,902,168.00 23,639,676.58 2,026,023,511.92

Accumulated Dep’n. 726,765,605.88 18,167,929.44 2,031,567.92 12,920,341.99 759,885,445.23

Net Book Value 401,076,221.96 846,873,075.73 4,598,834.33 2,870,600.08 10,719,334.59 1,266,138,066.69

Year Ended Dec. 31, 2016 Land Bldg. and Other Structures

Machinery and Other Equipment

Service Vehicle Furniture, Fixtures and Equipment

Total

Opening NVB 329,577,476.04 855,489,458.77 6,348,996.35 2,522,025.48 11,166,514.38 1,205,104,471.02

Addition/(Deduction)

71,498,745.92 47,899,127.54 1,360,000.00 1,567,212.98 122,325,086.44

Transferred 1,210,892.86 1,210,892.86

Dep’n. - for the year 56,186,717.32 1,750,162.02 527,068.22 2,013,840.25 60,477,787.81

Dep’n. - prior year 328,793.26 (726,535.68) 552.52 (397,189.90)

Closing NVB 401,076,221.96 846,873,075.73 4,598,834.33 2,870,600.08 10,719,334.59 1,266,138,066.69

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EXECUTIVE

MILDRED J. PADILL A Port Manager

YOLANDA FRANCISCA A. TAN Manager, Administrative Division

FROIL AN U. CATURL A Manager, Port Police Division

ROL ANDO C. BUCTON Manager, Engineering Services Division

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ATT Y. ROLDAN G. CALEJESAN Acting Manager, Port Services Division

ALL AN P. YAP Manager, Terminal Management Office of Lipata

FRANCISCO M. SURIAGA JR. Manager, Terminal Management Office of Siargao

DEBS G. CONSUEGRA Manager, Terminal Management Office of Tandag

JERK E. COMPARATIVO Manager, Terminal Management Office of Dinagat

RAFF Y M. L AFUENTE Manager, Finance Division

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PPA Administration Bldg., Borromeo St., Port Area, Surigao City 8400 PHILIPPINES Tel. Nos. (086) 826-2015 ● 826-5233 ● 231-7742 ● Fax No.: (086)826-5589

email: pmosurigao@ppa.com.ph ● URL: www.ppasurigao.weebly.com

Produced By:

THE MARKETING AND MEDIA PRODUCTION UNIT Office of the Port Manager

PHILIPPINE PORTS AUTHORITY Port Management Office of Surigao