STA. CRUZ WATER DISTRICT
The Sta. Cruz (Zambales) Water District was established pursuant to Resolution
No. 50 adopted and approved by the Sangguniang Bayan of Sta. Cruz, Zambales
on June 22, 1988 in relation to Presidential Decree No. 198, as amended wherein
the ownership of all existing water facilities of the Sta. Cruz Municipal
Waterworks System was transferred to the Sta. Cruz Water District.
On October 7, 1988, the Sta. Cruz Water District was granted by the Local Water
Utilities Administration (LWUA) a Conditional Certificate of Conformance No.
365 which formalized the existence of the Sta. Cruz (Zambales) Water District.
The primary objective of the water district was to provide safe and potable water
at an affordable rate under an efficient and dedicated management under the
guidance of a supportive and responsible Board of Directors.
In 1989, a loan in the amount of P1,584,000.00 was released by LWUA to the
district to finance the immediate improvement of its water system. In March
1991, the Sta. Cruz Water District become operational with the appointment of its
employees. The management of Water District conscious of its responsibility to
provide potable water within the reach of the residents of Sta. Cruz, Zambales
asked assistance from different sources, to wit:
At present, the district has seven (6) permanent employees including the OIC-
General Manager, under the stewardship of General Manager Leonardo S.
As of December 31, 2013, it has 762 active concessionaires.
The policy making body of Sta. Cruz Water District is vested in its Board of
Directors (BOD), and it is composed of the following:
Amelita A. Dorotheo Chairman
Ruben M. Mayor Vice Chairman
Nene F. Faranial Member
Rufino M. Gutierrez, Jr. Member
2. Basis of Financial Statements
The financial statements have been prepared in accordance with the
Generally Accepted State Accounting Principles and Standards.
The Water District started the implementation of the New Government Accounting System prescribed by the Commission on Audit on January 1, 2005.
Purchased of supplies and materials for stock, regardless of whether or not they are consumed within the accounting period, are recorded under the appropriated inventory accounts following the Perpetual Inventory Method.
The inventories on hand are stated at cost, based on the first in-first out method
and determined on the basis on inventory control records.
Tangible assets with serviceable life or more than one year, but small enough to be considered as Property, Plant and Equipment are considered as inventories upon purchased and as expense once issued. The recipient of the item acknowledges receipt in the Inventory Control Sheet (ICS) for monitoring and control purposes.
Property, Plant and Equipment (PPE)
The Straight-line Method of depreciation is used. Depreciation starts on the month following the month of purchase of the PPE, and a residual value equivalent to ten percent (10%) of the purchase cost is set up.
The useful life of the PPE is based on the estimated useful life prescribed by the COA for each group of PPE.
The cost of PPE acquired thru purchase includes the purchase cost plus the incidental cost in bringing the asset to its location, including installation and testing costs, until it becomes fully operational.
Repairs and maintenance of assets, including those fully depreciated ones, shall be charges against the appropriate “Repair and Maintenance Expense” account of the specific PPE.
Income and Expense Recognition
The accrual method of accounting is adopted in the recognition of earnings and expenses.
Fundamental errors of prior years are corrected by using the Prior Year’s Adjustment account while errors affecting current year’s operation are effected to the current year’s accounts.
This account is broken down as follows:
Cash in Vault P 1,427.30
Cash in Bank-Local Currency, C/A 28,172.78
Cash in Bank-Local Currency, S/A 114,414.65
Sinking Fund 18,124.95
Total P 162,139.68
This account includes the following:
Accounts Receivable P 639,084.66
Less: Allow. For Doubtful Accounts 204,319.28
Accounts Receivable, net 434,765.38
Other Receivables 9,139.55
Total P 443,904.93
The accounts Receivable consists of all amounts due on open accounts arising from services rendered to the customers for water sales and incidental services. Other Receivables pertains to the amount collectible from concessionaires other that water sales.
This account includes the following:
Accountable Forms Inventory P 3,893.00
Medical, Dental and Laboratory Inventory 665.60
Spare Parts Inventory 95,315.77
Other Supplies Inventory 5,100.00
Construction Materials Inventory 6,321.23
Total P 111,295.60
This account consists of
Balance Net Addition/ Balance
Dec. 31, 2012 (Reduction) Dec. 31, 2012
Land Improvements P 2,005,000.00 P 2,005,000.00
Electrification,Power & Energy 1,018,820.00 1,018,820.00
Other Structure 3,794,869.15 3,794,869.15
Office Equipment 10,284.50 10,284.50
Furniture and Fistures 34,507.00 34,507.00
IT Equipment and Software 35,845.00 35,845.00
Medical, Dental and 17,000.00 17,000.00
Other Machinery and Equipment 1,126,663.80 1,160,663.80
Other Property,Plant and 6,221,528.04 6,241,928.04
Other Assets 253,706.34 253,706.34
Total Property, Plant and 14,518,223.83 14,572,623.83
Less: Accumulated 6,806,256.93 7,245,519.15
Net Amounts P7,711,966.90 P7,327,104.68
This account consist of trade payables by the district amounting to P86,112.93
Local Govt. Unit – Lupa Public Faucet P 2,650.61
National Government Agency-Lupa Elem. School 7,523.95
South Central Elem. School 9,675.00
Total P 19,849.56
This account includes the following
Due to BIR P 2,706.65
Due to GSIS 217,788.31
Due to Pag-ibig 14,562.22
Due to Officers and Employees 456,412.96
Due to PHIC 5,704.62
Total P 697,174.76
This account represents liability arising from cash deposits made by customers, which are refundable to the customers upon disconnection without unpaid balance. This amount to P966,824.55 as of December 31, 2013.
This account represents various loans from Local Water Utilities Administration used in various project of the District in the amount of P422,649.30
For the previous years, the District incurred losses in its operations. As of December 31, 2012 government equity is P5,871,683.35.
This account includes the following.
Retained Earnings, Beginning P 336,142.05
Net Income/Loss ( 548,010.53)
Total (P 211,868.48)
This account consists of the following:
Salaries and Wages-Regular P 820,124.00
Personnel Economic Relief Allowance 36,000.00
Additional Compensation 106,500.00
Representation Allowance 38,500.00
Transportation Allowance 42,000.00
Clothing Allowance 24,000.00
Cash Gift 30,000.00
Year End Bonus 64,005.00
Life & Retirement Insurance Contribution 99,366.24
PAG-IBIG Contribution 7,200.00
PHIC Contributions 9,900.00
Terminal Leave Benefits 200,000.00
Other Professional Services 2,600.00
ECC Contributions 7,200.00
This account consist of the following:
Traveling Expenses-Local P 8,991.00
Training Expenses 3,000.00
Office Supplies Expenses 8,939.25
Accountable Forms 18,084.00
Medical, Dental & Laboratory Expenses 23,302.40
Gasoline, Oil and Lubricants 50.00
Other Supplies Inventory 840.00
Electricity Expenses 744,342.09
Postage and Deliveries 355.00
Membership Dues & Contribution to Organization 1,100.00
Rent Expenses 58,260.00
Representation Expenses 2,934.50
Transportation & Delivery Expenses 40.00
Repairs and Maintenance-Land Improvement 7,600.00
Repairs and Maintenance-IT Equipment 1,965.00
Repairs and Maintenance-Electricification,Power 11,500.00
Repairs and Maintenance-Other Machineries & Equipment 12,000.00
Repairs & Maintenance-Other PPE 19,526.78
Subsidy to NGAS 19,534.90
Subsidy to LGUs 478.39
Taxes, Duties & Licenses 46,991.64
Fidelity Bond Premiums 5,179.02
Depreciation-Land Improvements 72,180.00
Depreciation-Electric Power & Energy Structures 26,299.68
Depreciation-Other Structures 77,607.24 Depreciation-Medical,Dental & Laboratory Equipt. 1,530.00
Depreciation-Other Machineries & Equipment 70,000.68
Depreciation-Other PPE 191,644.62
This account represents the interest/charges on long term debts amounting to
Grace M. Mendoza
Sr. Accounting Processor B