Você está na página 1de 9

Republic of the Philippines

COMMISSION ON AUDIT
National Government Sector
Cluster 5 – Education and Employment
Audit Group A, Team R2-14A, DepEd Division of Isabela
Ilagan City, Isabela

DON MARIANO MARCOS NATIONAL HIGH SCHOOL


SUMMARY OF AUDIT OBSERVATIONS AND RECOMMENDATIONS
For Calendar Year December 31, 2018

MANAGEMENT AUDITOR’S
NO REFERENCE AUDIT OBSERVATION RECOMMENDATION
COMMENT REJOINDER
1 AOM No. Claims for traveling totaling to ₱32,816.00 were paid even We recommended The The Audit
19- with incomplete documents due to weak internal control that Management: Management Team
001(18) system over the disbursement process of the school will direct the required
contrary to Sec. 4(6) of Presidential Decree (PD) 1445 and a. Direct the concerned Management
Date:
COA Circular No. 2012-001 dated June 14, 2012, thus Bookkeeper to employees to to submit
January affecting the legality, propriety and validity of the claim. submit the submit the lacking
16, 2019 lacking lacking documents
Section 4 (6) of Presidential Decree No.1445 provides supporting documents on or before
that: documents of the and will February 15,
claims totaling to ensure that 2019,
“Claims against government funds shall ₱32,816.00 as complete otherwise
be supported with complete required under documentary suspension or
documentation.” COA Circular requirements disallowance
No. 2012-001, be complied will be
Moreover, COA Circular No. 2012-001 dated June 14, otherwise the first before issued.
2012 prescribes the revised documentary requirements for amount claimed paying claims.
common government transactions. Review of the transactions shall be
paid by the School disclosed that several disbursements were suspended or
not adequately supported with the minimum required disallowed in
documents, such as: audit; and

Page 1 of 9
MANAGEMENT AUDITOR’S
NO REFERENCE AUDIT OBSERVATION RECOMMENDATION
COMMENT REJOINDER
1. Traveling Allowance b. Instruct the
a. Office Order/Travel Order approved in Bookkeeper to
accordance with Sec. 3 of EO No. 298 ensure that all
b. Duly approved Itinerary of Travel disbursement
c. Certificate of Appearance vouchers should
d. Certificate of Travel Completed be adequately
e. Reimbursement Expense Receipt and Official supported with
Receipts the required
f. Paper/electronic plane, boat or bus tickets, documents
boarding pass, terminal fee before effecting
g. Payroll duly signed by the payees payments as
required under
Audit of disbursement vouchers covering the period COA Circular
from January to September, 2018 showed that traveling No. 2012-001
expenses totaling to ₱32,816.00 were paid with incomplete dated June 14,
documentary requirements. The details of which are presented 2012.
in the attached Annex A.

Inquiry made disclosed that the Bookkeeper pays the


traveling claims with incomplete supporting documents with
the promise that claimants would submit on a later date the
lacking documents. However, some were still not submitted
as shown on the attached Annex A. The bookkeeper is
reminded that she certifies as to the completeness of
supporting documents and as such she should be aware of her
liability in case of non-submission of the same.

The School’s practice of not complying with the


minimum documentary requirements affects the legality,
propriety and validity of such disbursements and is contrary to
the afore-cited provisions of PD 1445 and COA Circular No.
2012-001 dated June 14, 2012.

Page 2 of 9
MANAGEMENT AUDITOR’S
NO REFERENCE AUDIT OBSERVATION RECOMMENDATION
COMMENT REJOINDER

2 AOM No. Prior year expenses totaling to ₱92,949.29 were paid out We recommended Management
19- of the current year appropriations thereby overstating the that Management: agreed with
002(18) current year’s expenses and depleting the funds that could the
have been used for the current year’s operations in a. Stop the practice recommendati
Date:
contrary to Section 119 of Presidential Decree (PD) 1445 of using the ons and will
January and Section 6(b), Chapter 2 of the Government current year’s see to it that
16, 2019 Accounting Manual Volume I. appropriations to all expenses
pay prior year’s will be paid
Section 119 of PD 1445 provides that: unrecorded for that year.
obligations;
“All lawful expenditures and obligations b. Properly monitor
incurred during the year shall be taken and utilize
up in the accounts of that year.” current year’s
budget in order
Moreover, Section 6(b), Chapter 2 of the GAM for that all
National Government Agencies Volume I states that: obligations for a
“Each entity shall recognize and given year is paid
present its financial transactions and from that year’s
operations conformably…in the accrual appropriated
basis of accounting in accordance with budget; and
the PPSAS.” c. Strictly adhere
with existing
Review of the disbursements during the months of laws, rules and
January to March, 2017 disclosed that expenses incurred in regulations
CY 2017 totaling ₱92,949.29 were paid in CY 2018. The governing the
details are as follows: expenditures of
government
Date DV No. Payee Purpose Amount paid funds.
2018-01- Isagani V. Orpilla Payment of Job Order services (Dec
1/6/2018 003 Sr. 2017) ₱ 9,013.24
2018-01-
1/6/2018 006 Elsa Vilma Malab Training & other expenses (2017 OR's) 4,408.00
2018-01-
1/6/2018 007 Ofelia Uriarte Training & other expenses (2017 claim) 1,650.00

Page 3 of 9
MANAGEMENT AUDITOR’S
NO REFERENCE AUDIT OBSERVATION RECOMMENDATION
COMMENT REJOINDER
2018-01-
1/6/2018 008 Elvira Manuel Traveling expenses (11/3/2017) 950.00
2018-01- Ferdinand
1/6/2018 009 Gonzales Traveling expenses (Sept to Dec 2017) 4,980.00
2/12/201 2018-02- Electricity Expense (Nov and Dec
8 034 ISELCO I 2017) 19,747.37
2/12/201 2018-02- Electricity Expense (Sept and Oct
8 035 ISELCO I 2017) 23,601.44
2018-03- Electricity Expense (Bal. of Oct and
3/3/2018 058 ISELCO I Nov 2017) 22,211.34
2018-04-
4/3/2018 106 ISELCO I Electricity Expense (Bal. of Dec 2017) 6,387.90

TOTAL ₱ 92,949.29

In an interview, the Bookkeeper explained that the


school’s budget for CY 2017 was fully utilized; hence they
were not able to accommodate payments of the above
transactions. The school could have obligated and recorded
the unpaid expenses as Accounts Payable at the end of the
year, and request funding in CY 2018 to be able to pay the
payables instead of using the current year budget. Also,
electric bills were received on later a month, hence, were not
able to pay within the year.

The School must be reminded that the budget given for


a year must be used solely for expenditures during the year in
consonance with the accrual method of accounting. The
practice of paying the prior year’s obligations is contrary to
Section 119 of Presidential Decree (PD) 1445 and Section
6(b), Chapter 2 of the Government Accounting Manual
Volume I, thus overstating current year’s expenses and
depleting the funds to be used in payment for the current
year’s obligations.

3 AOM No. Claims for reimbursement of gasoline expenses totaling to We recommended Management
19- ₱20,490.00 were not supported with the required that Management will comply
003(18) accomplished Driver’s Trip Tickets contrary to Item B(7) require the and will direct

Page 4 of 9
MANAGEMENT AUDITOR’S
NO REFERENCE AUDIT OBSERVATION RECOMMENDATION
COMMENT REJOINDER
Date: of COA Circular No. 77-61 dated September 26, 1977 and preparation and the driver to
January Sec. 4(6) of PD 1445, thus monitoring of fuel submission of duly maintain the
16, 2019 consumption to minimize wasteful, excessive and accomplished trip trip tickets.
unnecessary expenditures for government vehicles could tickets to support the
not be facilitated. payment of fuel, oil
and lubricants and to
Section 4 (6) of Presidential Decree No.1445 provides strictly enforce and
that: adhere to the
provisions of COA
“Claims against government funds shall Circular No. 77-61
be supported with complete and Sec 4(6) of PD
documentation.” 1445.

Moreover, Item B(7) of the Manual on Audit for Fuel


Consumption of Government Motor Vehicles under COA
Circular No. 77-61 provides that:

“…no disbursement voucher for fuel


consumption (gasoline and oil) of
government vehicles shall be allowed in
audit unless duly supported by properly
accomplished and approved serially
numbered driver’s trip tickets…”

During the period January to September, 2018, the


school incurred a total of ₱20,490.00 for fuel consumption
paid on a reimbursement basis without the duly accomplished
driver’s trip tickets as shown below:

Date DV No. Payee Gas claimed


2/12/2018 2018-02-026 Emma Daguro ₱ 300.00
3/23/2018 2018-03-083 Danilo Dela Cruz 500.00

Page 5 of 9
MANAGEMENT AUDITOR’S
NO REFERENCE AUDIT OBSERVATION RECOMMENDATION
COMMENT REJOINDER
3/23/2018 2018-03-086 Merlinda Respicio 540.00
4/18/2018 2018-04-120 Herminia Calata 50.00
4/18/2018 2018-04-122 Dohnardwyn Videz 6,000.00
5/7/2018 2018-05-146 Herminia Calata 500.00
6/1/2018 2018-06-170 Herminia Calata 150.00
6/18/2018 2018-06-180 Herminia Calata 550.00
6/18/2018 2018-06-181 Merlinda Respicio 50.00
6/20/2018 2018-06-190 Ferdinand Gonzales 600.00
7/30/2018 2018-07-236 Herminia Calata 150.00
7/30/2018 2018-07-237 Dohnardwyn Videz 1,000.00
7/30/2018 2018-07-238 Ferdinand Gonzales 500.00
8/7/2018 2018-08-249 Ferdinand Gonzales 8,800.00
8/15/2018 2018-08-250 Herminia Calata 100.00
9/17/2018 2018-09-275 Kathleen Bagalay 600.00
9/17/2018 2018-09-276 Herminia Calata 100.00
TOTAL ₱ 20,490.00

Interview disclosed that the School does not prepare


trip tickets on their travels using their RP Vehicle. They
reasoned that they are not aware that the driver’s trip ticket is
required in claiming reimbursement of their gasoline
expenses.

It must be emphasized that the driver’s trip ticket is


necessary in order to ascertain the reasonableness and
regularity of the gasoline consumption based on the purpose
of the travel, distance and the consumption during the travel.
The signatures of passengers on the trip ticket are likewise
required to determine the actual use of the service vehicle.

The practice of the school in not preparing driver’s trip

Page 6 of 9
MANAGEMENT AUDITOR’S
NO REFERENCE AUDIT OBSERVATION RECOMMENDATION
COMMENT REJOINDER
ticket and non-attachment to their claims for reimbursement of
gasoline is contrary to Item B(7) of COA Circular No. 77-61
and Sec. 4(6) of PD 1445, thus monitoring of fuel
consumption to minimize wasteful, excessive and unnecessary
expenditures for government vehicles could not be facilitated.

4 AOM No. Various purchases of supplies and materials totaling to We recommended The
19- ₱259,493.43 were recorded as outright expense instead of that management: Bookkeeper
004(18) recognizing the appropriate inventory account and will be
accounted as expense upon issuance to end-users contrary a. Instruct the coordinating
Date:
to the perpetual inventory system required under Chapter Bookkeeper to with the
January 8 of the Government Accounting Manual (GAM), Volume observe the Property
16, 2019 I, thus increasing the risk of possible misstatement of the perpetual Custodian/Sup
financial statements and loss of inventory. inventory system ply Officer for
in recording and the
Chapter 8 of GAM for NGAs, Volume I provides the accounting for recognition of
following specific guidelines and procedures on acquisition, supplies and expenses for
recognition and issuance of inventory: materials; the issued
Section 9. “Supplies and materials purchased for b. Require the supplies and
inventory purpose shall be recorded using the Supply Officer to materials.
perpetual inventory system, resulting in a more accomplish the Management
accurate inventory records and a running total for the RIS for all settled to
cost of goods sold in each period. The system requires issuance from comply with
accounting records to show the amount of inventory on stock and prepare the
hand at all times through the maintenance of the RSMI recommendati
Supplies Ledger Cards (SLC) (Appendix 57) by the periodically and ons.
Accounting Division/Unit and Stock Card (SC) submit thereof
(Appendix 58) by the Supply and/or Property together with
Division/Unit for each item in stock. Regular copes of RIS to
purchases shall be coursed through the inventory the Bookkeeper
account and issues thereof shall be recorded as they for proper
take place except for supplies and materials recording

Page 7 of 9
MANAGEMENT AUDITOR’S
NO REFERENCE AUDIT OBSERVATION RECOMMENDATION
COMMENT REJOINDER
purchased out of PCF for immediate use or on Bookkeeper for
emergency cases which shall be charged directly to proper recording.
the appropriate expense accounts.”

Section 16. Procedures in the Requisition and Issue of


Inventory Items, Sequence No. 11 and 12. “Stock Card
Keeper in the Supply Division shall receive signed
RSMI and forwards to the Accounting Division/Unit
the original copy of RSMI together with original RIS
and files Copy 2 of RSMI. The Accounting Division
then receives the original copy of RSMI and original
RIS, checks and verifies the completeness of
information, retrieves SLC from file and fills up the
“To be filled up in the Accounting Division/Unit”
portion of RSMI, records the RSMI in the SLC, signs in
the “Posted by/date” portion and prepares JEV in two
(2) copies based on the RSMI to record the issue of
stock.

Audit, disclosed that the School failed to adopt the


perpetual inventory system in recording supplies and
materials. Examination of the accounts disclosed that
purchases of office supplies, office equipment, drugs and
medicine and other supplies and materials totaling
₱259,493.43 (Annex A) were immediately recorded an
expense instead of recognizing the appropriate inventory
account and accounted as expense upon issuance to end-users
contrary to the perpetual inventory system required under
Chapter 8 of the Government Accounting Manual (GAM),
Volume I.

Inquiry disclosed that it was already the practice of the

Page 8 of 9
MANAGEMENT AUDITOR’S
NO REFERENCE AUDIT OBSERVATION RECOMMENDATION
COMMENT REJOINDER
School to record purchases of supplies and materials as an
outright expense. Moreover, the Supply Officer does not
prepare and submit to the bookkeeper the required RSMI
together with the RIS which would be the basis in recording
the issued supplies as an expense.

In view of the foregoing deficiencies, there is a risk of


possible misstatement of the financial statements due to
inaccuracy, and risk of possible loss of inventory due to weak
internal control.

PREPARED BY: REVIEWED BY:

ROWENA C. CAGURANGAN RITA R. PABLO


OIC-Audit Team Leader OIC-Regional Supervising Auditor

Page 9 of 9

Você também pode gostar