Escolar Documentos
Profissional Documentos
Cultura Documentos
BASED ON THE INQUIRIES and EXAMINATION OF DOCUMENTS CONDUCTED THE FOLLOWING WERE NOTED:
1. FAILURE TO BACK-UP THE PERTINENT FILES OF THE BOOKKEEPER.
Cash Receipts Journals, Cash Monitoring, Cash Disbursements and Bank Reconciliations Reports were all corrupted after the bag down of
the Bookkeepers computer.
SUGGESTION:
The Accountant/Bookkeeper should regularly make a back-up of their pertinent files on a daily basis especially on their Quickbooks and
have a printed copy of their Reports for filing and recovery purposes.
2. FAILURE TO OBSERVE THE PROPER SOPS ON RECORDING PERTINENT REPORTS
A. REVENUE JOURNALS
MADE BY OFFICER AND STAFFS:
1ST Semester Revenue Journal was
already
reflected/recorded
in
the
Quickbooks but not yet checked by the
Accountant. Based on my interview with
the Bookkeeper, she informed the
Accountant in recording the Revenue
Journal to the Quickbooks, and the
Accountant authorizes to do so without
actual printing of hard copy for
checking and verification to the
registration forms (Pink form).
SHOULD
BE
(CORRECT
PROCEDURE):
The Bookkeeper summarizes all the
statement charges and Tuition fees of
the students that compose the
Revenue Journals. Print a hard copy of
the Revenue Journal for checking to be
compared with the Registration forms.
Then, to be forwarded to the
Accountant, for double checking and
goes back to the Bookkeeper for
recording to Quickbooks.
RISKS/
DANGERS
OF
ACTION
1. Inconsistency of amounts
entered into Quickbooks
VS Registration forms.
2. Inaccurate recognition of
Revenue Amortization.
3. Prone to incorrect Student
Ledger balances.
4. Incorrect financial reports.
SUGGESTIONS/
SOLUTIONS
PRINT A HARD COPY
OF THE 1ST SEMESTER
REVENUE
JOURNAL
FOR CHECKING AND
RECONCILIATION TO
THE
REGISTRATION
FORMS (PINK FORMS).
3. FAILURE TO RECORD ALL CASH COLLECTION IN THE 1ST SEMESTER 2014-2015 TO THE QUICKBOOKS.
Based on my interview with the Bookkeeper, the collections made in the 1 st Semester 2014-2015 is not yet reflected in the Quickbooks
resulting for Cash Records and Students Subsidiary Records not to be updated.
It was already noted by the internal auditors of CLI Dagupan in the audit during the tenure of Mr. Jefferson Ramos, previous Accountant,
that collections should be properly recorded and reflected to the Quickbooks on the day of collection. As per my inquiry to Mr. Jefferson
Ramos, during his transition period to the incoming accountant, he properly briefs the accountant for the said control procedure.
4. NO REVENUE JOURNALS YET PRODUCED FOR THE 2ND SEMESTER 2014-2015.
It was already January 2015, but up until now there is still no summary of Statement Charges, Tuition Fees and Funds Payables prepared
by the Bookkeeper and no follow up made by the Accountant for the preparation of Revenue Journal. As per my inquiry to the previous
accountant, the average time to prepare the Revenue Journal is 1 month after the closing of the enrolment period.
5. FAILURE TO CHECK, RECORD and MONITOR THE SUBMITTED LIQUIDATION REPORT ON A TIMELY BASIS
RESULTS OF THE FAILURE
Employee Advances accounts were not updated, still floating in the records and appears that employees who requested the funds
are still unclear in the records wherein fact they are already cleared.
Inaccurate information regarding fund balances and expenditures of the Institution.
SAMPLE OF LIQUIDATION REPORTS EXAMINED:
REQUESTING
PERSONNEL
EA-Daisy Rose Recide
AUDIT FINDINGS
SSC Election
AMOUNT: P1,525
CV#7494, MB 7702277
Date Liquidated JULY 2, 2014
Annual Orientation
AMOUNT: P1,950
CV#7481, MB 7702268
Date Liquidated NO DATE
EA-Ricky A. Cera
EA-Maria Fe Abalos
CHED Seminar
AMOUNT: P1,300
CV#7637, MB 8199725
Date Liquidated NO DATE
CHED SEMINAR
AMOUNT: P1,500
CV#7496, MB 7702278
Date Liquidated JULY 7, 2014
REGIONAL EXECUTIVE CONFERENCE
AMOUNT: P1,700
CV#7532, MB 7702292
Date Liquidated AUGUST 2, 2014
PICPA ACCOUNTANCY WEEK
AMOUNT: P1,050
CV#7515, MB 7702282
Date Liquidated JULY 19, 2014
ANNUAL FACULTY MEETING
AMOUNT: P8,300
CV#7519, MB 7702284
Date Liquidated NO DATE
NOTED:
1. Based on the above sample liquidation report examined, many liquidation reports has NO DATE and not all pertinent information were
properly filled up by the officer-in-charge of the cash count.
2. DATE OF LIQUIDATION REPORT and CASH COUNT is not the same with the DATE OF CASH DEPOSIT to the Bank. As a rule, Date of
Liquidation Report and Cash Count should be the same with Date of Cash Deposit to avoid usage of the EXCESS FUND.
6. BOOKS OF ACCOUNTS MAINTAINED FOR BUREAU OF INTERNAL REVENUE PURPOSES ARE NOT UPDATED.
NAME OF BOOKS
CASH RECEIPTS JOURNAL
RESPONSIBLE FOR
RECORD KEEPING
BOOKKEEPER
MONITORING/
CHECKING
ACCOUNTANT
GENERAL LEDGER
BOOKKEEPER
ACCOUNTANT
CHECK REGISTER
GENERAL JOURNAL
BOOKKEEPER
ACCOUNTING CLERK
CHECK
REGISTER
ACCOUNTING CLERK
ACCOUNTANT
BOOKKEEPER
ACCOUNTANT
BOOKKEEPER
ACCOUNTANT
VOUCHER
and
and
COMMENTS/AUDIT
FINDINGS
NO
posting
from
December to January
2015
NO POSTING AT ALL from
June up to present
NO posting for January
NO posting from August
to January 2015
NO posting from October
to January 2015
IMPLICATIONS
NOTE: IN CASE OF WORK OVERLOAD ON THE PART OF THE BOOKKEEPER, THE ACCOUNTANT MUST ASSIST.
7. INEFFECTIVE IMPLEMENTATION OF LIQUIDATION REPORT PROCEDURES AND CV FILING.
PRESENT LIQUIDATION REPORT CONTROL PROCEDURES (FLOWCHART PRESENTATION) (IMPLEMENTED BY THE PRESENT ACCOUNTANT)
REQUESTING PERSONNEL
ACCOUNTANT
CASHIER
BOOKKEEPER
ACCOUNTING
CLERK
8.
Submits the Liquidation Report to
the Accountant (3 days after the
event)
LIQUIDATION
REPORT
(SUMMARY OF ALL
EXCESS CASH
EXPENSES)
Deposit
Slips
Deposited
Deposit
Slip
4
Deposit
Slip
OBSERVATIONS NOTED:
1. The Accountant is the first to check the Liquidation report, it should be noted that the Accountant should be the last personnel to verify
and double check the validity of the expenses incurred before approval of the OIC-College Director and the College President. END
2. This also creates a threat of alteration of records unknown to the Accountant since the last personnel to check is the Bookkeeper.
3. ALL Liquidation Reports and other accounting transactions should be properly APPROVED first before posting to the records
(Quickbooks).
4. Aside from the weaknesses identified in the present control procedures, the Bookkeeper presented a list of Employee Advances still
floating in the records (Quickbooks) where in fact, those advances were already liquidated and Liquidation reports have been properly
submitted to the Accounting Office. Based on the examination, liquidation reports were not properly turnover to the Bookkeeper by the
Accountant, it was found out that it was given directly to the Accounting Clerk which mean, it has already been filed but not yet
recorded.
PROPOSED LIQUIDATION REPORT CONTROL PROCEDURES (FLOWCHART PRESENTATION)
REQUESTING PERSONNEL
BOOKKEEPER
ACCOUNTANT
CLERK
CASHIER
ACCOUNTING
9.
Submits the Liquidation Report to
the Accountant (3 days after the
event)
LIQUIDATION
REPORT
(SUMMARY OF ALL
EXPENSES)
EXCESS CASH
Deposited
Deposit
Slips
Deposit
Slip
5
LIQUIDATION
REPORT
(SUMMARY OF ALL
EXPENSES)
CASH COUNT
SHEET
Deposit
Slip
END
CONCLUSION:
With the revised/proposed Liquidation Report Control Procedures, all weaknesses identified in the present system will be resolved:
1. The College Accountant is the final checker of the Liquidation Report.
2. Prevention of altered/revised Liquidation reports unknown to the College Accountant.
3. Strict and better control on NON-POSTING of TRANSACTIONS NOT DULY APPROVED. All posting/recording of Liquidation reports and
other similar transactions made by the Bookkeeper should be properly approved.
4. There is a smooth and clear flow of duties and responsibilities of every member of the Accounting Office.
OR # 45692-December 2, 2014
CABALLERO, MICHELLE JOY R. BSA II
OR # 45657-December 2, 2014
VESQUIRA, ADRIAN JIM BSA II
OR # 45977-December 5, 2014
GINEZ, DANICA CAREGIVER
I have identified two options on how can we improve the present system.
1. NO DELAYED CHANGE POLICY
The Cashier is no longer allowed to defer the change of the students simply because of unavailability of smaller bills and coins. It
is the responsibility of the cashier to find ways on how to meet the needed change of a student.
In times of numerous transactions, the cashier can asked support/help of the accounting clerk or any student assistant available
to change the bigger bills collected to small bills and coins outside the Institution to serve as a change fund.
ADVANTAGES
1. No fund needed to set aside/up.
2. No monitoring and liquidation of another fund.
3. No risks of additional fund that maybe subject to
employee embezzlement.
DISADVANTAGES
1. Difficulty in meeting the change of students
(especially in times of exam periods).
2. Might create a long waiting line since, before
proceeding to the next customer/student, his/her
change must be given first.
ADVANTAGES
1. Minimizes waiting of students for their change.
2. Strengthen customer satisfaction
DISADVANTAGES
1. Create an avenue/ risk for fund embezzlement of
employees.
2. Additional work for fund monitoring and liquidation.
3. Foregone benefits of interest that should be earned if
not set aside for change fund.
4. Additional accountability of the cashier personnel.
RECOMMENDATIONS:
Based on the presented advantages and disadvantages of the two options, it will be more beneficial and cost effective on the part of the
Institution to implement the NO DELAYED CHANGE POLICY. Since no cash funds involve being set-up, the cashier will be just informed and
properly monitored by the Accountant that all transactions with change should be given at once to the student/customer.
QUESTIONS
1. Who is the responsible and
accountable person for the
Cash Advance of Intramurals
2014?
AUDIT FINDINGS
PAYEES NAME: MARIEL FAYE N. SISON
Position: Accounting Clerk
Check and CV Number: BDO 243239
CV#7622
Amount: P28,500
COMMENTS/OPINIONS
All School-wide activity (e.g., Intramurals) of the
Institution with budget/check preparation should be
named to the Accountant for encashment purposes
and for fund accountability but to be transferred to
the Accounting Clerk for the custody of the fund and
preparation of Liquidation Report.
REASONS WHY IT SHOULD BE NAMED TO THE
ACCOUNTANT
1. The primary reason is the materiality of the
funds needed, in case of losses or shortages,
fortuitous events or faulted actions made by the
Accountant, funds can be easily recovered.
In this case, the fund amounting to P28,500 is
named after the Accounting Clerk, which should
not be the case because of the materiality of the
amount. In time of loss the Institution may not
recover the loss or if recovered not on a timely
basis.
2. For quick and strict monitoring of the
expenses. Since the check was prepared in the
name of the Accountant, monitoring of the
preparation of liquidation report and submission of it
on a timely manner will be properly observed.
3. To prevent misappropriation of excess funds of
the requesting personnel.
3. Why it was
monitored
Accountant?
not
by
closely
the
10
DATE
NATURE OF EXPENSE
SUPPORTING
DOCUMENTS
PCV was used
AMOUNT
DEFICIENCIES/COMMENTS
800.00
1,200.00
10-10-14
10-14-14
Professional
Officers
10-10-14
1,800.00
No Date
Transportation Expense
(To Order Trophies and Medals)
20.00
No Date
Transportation Expense
(To
Canvass
Trophies
Medals)
20.00
PCV
30.00
1,285.00
1,500.00
10-09-14
Fee-Officiating
10-09-14
Transportation Expense
(Deliver Invitations)
MASS
No Date
Sound System
and
11
10-10-14
Foods (Jollibee)
445.00
10-10-14
40.00
10-14-14
Transportation Expense
(NO Purpose)
50.00
No date
150.00
10-14-14
Welding Fee
Official receipts
75.00
10-09-14
100.00
No date
Tarpaulin Posting
(payment for tali (rope))
Purchase of Microphone
449.75
10-10-14
PCV
1,000.00
as a proof of receipt.
No proof of approval because of nonissuance of PCV.
No approval on the PCV.
Not Checked and audited on the PCV.
No PCV was used
No signature of the requesting personnel
as a proof of receipt.
No proof of approval because of nonissuance of PCV.
No PCV was used
No purpose of travel, no destination
identified.
No signature of the requesting personnel
as a proof of receipt.
No proof of approval because of nonissuance of PCV.
No PCV was used
No proof of approval because of nonissuance of PCV.
Not checked and audited.
No PCV was used
No signature of the requesting personnel
as a proof of receipt.
No proof of approval because of nonissuance of PCV.
Not checked and audited on the PCV.
Actual amount was not written in the PCV.
No date and PCV number
No approval on the PCV
Not checked and audited
No approval on the PCV
12
10-10-14
Official receipt
18.00
10-11-14
15.00
10-10-14
PCV
3,500.00
10-10-14
Official receipt
136.00
10-09-14
Official receipt
280.00
10-10-14
738.30
10-14-14
Additional Trophies
Official Receipts
810.00
10-13-14
Trophies
transpo.
7,528.00
and
Medals
and
13
10-09-14
Official receipt
2,540.00
10-10-14
Official receipt
1,500.00
10-10-14
Balloons
360.00
as a proof of receipt.
No proof of approval because of nonissuance of PCV.
No PCV was used
No signature of the requesting personnel
as a proof of receipt.
No proof of approval because of nonissuance of PCV.
No PCV was used
No signature of the requesting personnel
as a proof of receipt.
No proof of approval because of nonissuance of PCV.
No PCV was used
No signature of the requesting personnel
as a proof of receipt.
No proof of approval because of nonissuance of PCV.
14
ACCOUNTANTS RESPONSE
AUDIT FINDINGS
The
summary
and
preapproval form of water bill for
the month of September was
prepared by the Accounting
clerk October 7 and checked
by the Bookkeeper at the
same date, noted by the
Accountant October 8 and
approved by the CD and the
President. Checks and CV
were
prepared
by
the
bookkeeper October 11 and
checked by the Accountant on
the same date and rechecked by the CD on
October 13 then passed it to
the
President
for
check
signing and for transmittal to
Dagupan
for
treasurers
COMMENTS/OPINIONS
15
GENERALIZATION:
Based on the noted deficiencies and non-compliance of existing SOPs of the Accounting Office, these are the following violations committed
by the following Accounting personnel:
16
17
18