Annex B

DEPARTMENT OF TRADE AND INDUSTRY

ANALYSIS OF THE EFFECTS OF THE MISSTATEMENTS ON THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2017
In Pesos
A. ACCOUNTING ERRORS

REF. PARTICULARS AMOUNT ACCOUNTS AFFECTED ASSETS

Non-recording of interest income earned from the Barangay Due from GOCCs 88,234,378.81
Micro-Business Development Fund (BMBE) Fund 88,234,378.81
Accumulated Surplus/(Deficit)
Motor Vehicles 9,287,088.00
Unrecorded additions of PPE 9,287,088.00
Accumulated Surplus/(Deficit)
Medical Equipment (339,750.00)
Motor Vehicles (7,770,932.06)
Unrecorded dropping of PPE due to donations/reductions on
8,244,335.09 Information and Communication Technology
account of loss and missing PPE (133,653.03)
Equipment
Accumulated Surplus/(Deficit)
Mobilization Fee charged to Consulting Services instead of Advances to Contractors 2,340,952.95
2,340,952.95
Advances to Contractors account Accumulated Surplus/(Deficit)
Cash on Hand (65,975.12)
Travelling Expenses – Local
Office Supplies Expenses
Other Supplies and Materials Expenses
Water Expenses
Postage and Courier Expenses
Telephone Expenses-Mobile
Legal Services
Unrecorded Disbursements thru Petty Cash Fund 65,975.12 Other Professional Services
Other General Services
Repairs and Maintenance-Machinery &
Equipment
Repairs and Maintenance-Transportation
Equipment
Printing and Publication Expense
 Annex B

REF. PARTICULARS AMOUNT ACCOUNTS AFFECTED ASSETS

Representation Expenses
Fuel, Oil & Lubricants Expense
Cash in Bank-Local Currency 107,580.55
Unrecorded Stale Checks 107,580.55
Accumulated Surplus/(Deficit)
Cash in Bank-Local Currency 57,800.00
Unrecorded retention fee from payment of goods and services 57,800.00 Guaranty/Security Deposits Payable
Due to BIR
Representation Expenses
Erroneous recording of Training and Subsidies expenses as Office Supplies Expenses
6,081,755.99
Representation Expenses and Office Supplies Expenses Training Expenses
Subsidies-Others
Erroneous recording of Other Supplies and Materials Inventory Office Supplies Inventory (196,603.00)
196,603.00
as Office Supplies Inventory Other Supplies and Materials Inventory 196,603.00
Consultancy Services
Erroneous recording of Training and Other Professional
316,471.92 Training Expenses
Services as Consultancy Services
Other Professional Services
Erroneous debiting of Subsody from National Government Subsidy from National Government
8,200,000.00
instead of Accumulated Surplus/(Deficit) Accumulated Surplus/(Deficit)
Due from LGUs (7,900,000.00)
Double recording of fund transfer 7,900,000.00
Accounts Payable
TOTAL ABSOLUTE ERRORS 131,032,941.43 116,631,316.52
NET ERRORS (OVER)/UNDER 83,817,490.10
Total Assets, Liabilities and Accumulated Surplus/
Deficit 4,260,027,015.60
% OF ABSOLUTE ERRORS
% OF NET ERRORS 1.97%
Materiality Level (2% of Total Assets) 85,200,540.31
% Error to Materiality Level 154%

B. ACCOUNTING DEFICIENCIES
 Annex B

REF. PARTICULARS AMOUNT ACCOUNTS AFFECTED ASSETS

REF. PARTICULARS ACCOUNTS AFFECTED
 Annex B

MENTS

ACCUMULATED
LIABILITIES SURPLUS/DEFICIT

88,234,378.81

9,287,088.00

(8,244,335.09)

2,340,952.95

(3,530.65)
(12,400.12)
(4,483.00)
(245.00)
(300.00)
(1,830.00)
(630.00)
(1,600.00)
(4,600.00)

(3,300.00)

(885.00)

(1,549.70)
 Annex B
ACCUMULATED
LIABILITIES SURPLUS/DEFICIT
(11,012.60)
(19,609.05)

107,580.55

34,000.00
23,800.00
(120,631.00)
(5,961,124.99)
120,631.00
5,961,124.99

(316,471.92)
252,980.00
63,491.92
8,200,000.00
(8,200,000.00)

(7,900,000.00)
7,957,800.00 137,476,766.34
(7,842,200.00) 91,659,690.10
 Annex B
ACCUMULATED
LIABILITIES SURPLUS/DEFICIT
AMOUNT
 88,234,378.81
88,234,378.81
9,287,088.00
9,287,088.00
339,750.00
7,770,932.06
133,653.03
8,244,335.09
2,340,952.95
2,340,952.95
65,975.12
3,530.65
12,400.12
4,483.00
245.00
300.00
1,830.00
630.00
1,600.00
4,600.00
3,300.00
885.00
1,549.70
11,012.60
19,609.05
107,580.55
107,580.55
57,800.00

120,631.00
5,961,124.99
120,631.00
5,961,124.99
196,603.00
196,603.00
316,471.92
252,980.00
63,491.92
8,200,000.00
8,200,000.00
7,900,000.00

116,631,316.52 137,476,766.34