Annex A

Republic of the Philippines

COMMISSION ON AUDIT
National Government Sector
Cluster 5 – Education and Employment
OFFICE OF THE AUDITOR
Technical Education and Skills Development Authority
National Capital Region 02
South Superhighway, Taguig City

INVENTORY/TURNOVER REPORT
TRANSFER OF OFFICE OR AUDIT OF ASSIGNMENT

OFFICE: TESDA – NCR AUDIT TEAM 02 – REGIONAL

OFFICE (RO)/MANILA/MUNTIPARLASTAPAT
(MPLTP)/CAMANAVA (CMNV)
NAME OF AUDITOR: GINA D. GARCIA
POSITION/DESIGNATION: STATE AUDITOR III/AUDIT TEAM MEMBER
OFFICE ORDER NO./DATE: COA OFFICE ORDER NO. 2019-658 DATED
AUGUST 7, 2019

I. Inventory of Personnel/Staff/Job Order Personnel from Management

Name Position Assigned Duties Remarks

A. COA Staff
N/A N/A N/A N/A
B. Job Order Personnel
N/A N/A N/A N/A

II. Inventory of Property/Supplies

Articles Description Qty. Property Number

NONE

III. Inventory Report of Stored Financial Reports, Records and Supporting

Documents and Other Documents

Storage Records and Documents in Custody

Prescribed
Financial Archiving Active Inactive
Retention Remarks
Records Protection Place Method Total Period Period
Period
Covered Quantity Covered Quantity
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)

Please see attached Annex A-1

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 Annex A

IV. Status of Implementation of Audit Plan

A. PLANNING

Planning Documents Remarks

1. Planning documents such as:
Understanding the Agency
Agency Risk Model
Agency Risk Identification Matrix
Agency Level Control Matrix
Process Risk Control Matrix
Audit Risk Assessment Planning Tool
Prioritization Matrix-Performance Audit
Planning Design Matrix- Performance Audit
2. Audit Programs
3. Audit Plan/Worksteps
4. General Audit Instructions (GAI)
5. Specific Audit Instructions (SAI)
6. Assessment of SAI Implementation

B. EXECUTION

B.1 Financial Audit

Accounts Audited % of completion or Period Covered

Cash and related expenses January – December 2018
Receivables January – December 2018
Advances to Officers & Employees January – December 2018
Inventories – PPE, Supplies and Mat. – January – December 2018
related Expense
Payable-Due to RO, BIR and related expense January – December 2018
accounts
Income January – December 2018

Latest Trial Balance Received/Verified/Analyzed

Latest Month Latest Month
Trial Balance Received Verified
Tesda manila district March, 2019 December 2018
(Fund 101&Fund 161)

Latest FSs and Notes to FSs Received/Verified

Latest Month Latest Month
Financial Statements Received Verified
Statement of Financial Position
Tesda Manila District March, 2019 December 2018
(Fund 101&Fund
161)
Statement of Financial Performance
Tesda Manila District March, 2019 December 2018
(Fund 101&Fund
161)
Statement of Cash Flows

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 Annex A

Latest FSs and Notes to FSs Received/Verified

Latest Month Latest Month
Financial Statements Received Verified
Tesda Manila District Marc, 2019 December 2018
(Fund 101&Fund
161)
Statement of Changes in Net Assets/Equity
Tesda Manila District March, 2019 December 2018
(Fund 101&Fund
161)
Notes to Financial Statements
Tesda Manila December 2018 December 2018

Status/Latest Cash Examination Conducted:

Name of Accountable Date Date Report Remarks
Officer(s) Examined Transmitted
TESDA Manila August 29, 2019 On-going

Latest Bank Reconciliation Statement Verified

Depository Account No. Nature/ Period Remarks
Bank Purpose Covered
TESDA Manila
LBP – FTI 2812-1019-54 Regular Fund December
2017
2812-1024-54 SSP Fund December
2017
2912-1002-89 SSP Fund December
2017

B.2 Compliance Audit

Contracts/Job Order/Purchase Orders for Contract Review/Inspection

Particulars Quantity Reviewed Transmitted to Remarks
Received TSO
MPLTP
Contracts 29
Job Orders 1 In CY 2017
Purchase Orders 18
Request for Inspection none

Transactions Submitted/Audited:
Transactions Latest Month Latest Month
Submitted Audited
MPLTP
Disbursements, RCI and RD August 2018 March 2018
Collections and Deposits, RCD September 2018 August 2018
Payrolls August 2018 March 2018
Liquidation Reports June 2018 December 2017
Journal Entry Vouchers September 2018 December 2017

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 Annex A

Latest AOM, NS, ND, NC, NSSDC and SASDC Issued (together with original DVs
and supporting documents and other pertinent documents: *
Particulars Quantity
NCR
AOM 1. AOM No. 18 - 001 (101) (2015-2017) ncr dated 7 AOMs
February 9, 2018 re: Disbursements incurred by
TESDA–NCR for the payment of meal expenses totaling
P861,106.00 for the period December 2015 – June 2017
to Arara Restaurant were doubtful since the attached
Invoices supporting the said disbursements were found to
be invalid, and moreover, the supplier’s business
establishment is nowhere to be found and its given
address cannot be located elsewhere.

2. AOM No. 18-002-101 (2017) ncr dated February 15,

2018 re: TESDA – NCR did not spend in accordance
with its identified expenditures under its planned
programs and activities since obligations for some items
of Personnel Services (PS) and Maintenance and Other
Operating Expenses (MOOE) were incurred without an
available allotment. Moreover, no realignments were
made to compensate the deficiencies for these type of
expenditures, thereby resulting in overdrafts in the total
amount of P40,266,236.81 contrary to Item 4.6 of NBC
No. 567 dated January 3, 2017 and Sections 34 and 36 of
Chapter 2 of GAM Volume I.

3. AOM No. 18 – 003 (101) (2017) ncr dated February 23,

2018 re: Due to National Government Agencies (NGAs),
Due to Government-Owned and Controlled Corporations
(GOCCs), Guaranty/Security Deposits Payable and Other
Payables account balances amounting to P139,549.20,
P504,791.25, P4,000.00 and P611,098.18 respectively or
a total of P1,259,438.63 remained dormant/long-
outstanding for 9 to 18 years. Thus, may adversely affect
the reliability of the accounts and fairness in the
presentation of the Financial Statements (FS), contrary to
Section 15, Chapter 2 of Government Accounting
Manual (GAM), Volume 1.

4. AOM No. 18 – 004 (101) (2017) ncr dated February 26,

2018 re: The reliability of the Due to BIR account
balance of P0.00 as of December 31, 2017 cannot be
ascertained due to the following: a) non-observance of
the required procedures as provided under Section 38(d)
of Chapter 5 Government Accounting Manual (GAM)
Volume I; b) unreconciled difference of P(20,282.36)
between amounts reported per Summary of Taxes
Withheld (STW) and recorded withheld taxes per
General Ledger (GL); and 2) variance between amounts
reported per issued Tax Remittance Advices (TRA) with
recorded tax remittance.

5. AOM No. 18-005-101 (2017) ncr dated March 15, 2018

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 Annex A

Latest AOM, NS, ND, NC, NSSDC and SASDC Issued (together with original DVs
and supporting documents and other pertinent documents: *
Particulars Quantity
re: Out of the total allotments received with cash releases
of P345,195,216.26 for the implementation of the
Training for Work Scholarship Program (TWSP) for
Technical Vocational Institutions (TVIs) in CY 2017,
only 45 percent or P156,091,400.00 was expended as of
December 31, 2017 due to delayed implementation of the
program and non-conformity with the TWSP Process
Flow for Tendering System. Accordingly, only 34
percent or 14,725 graduates out of the 44,004 enrollees
were attained then only 26 percent or 9,392 out of 36,015
were assessed for the CY 2017. Thus, the program’s
objectives to support rapid, inclusive and sustained
economic growth, through course offerings, were not
fully realized.

6. AOM No. 18-006-101 (2017) ncr dated March 21, 2018

re: 58 percent or P49,909,175.17 out of the total
allotments received of P90,482,221.32 for
implementation of the Special Training for Employment
Program (STEP) in CY 2017 remained unutilized as of
December 31, 2017. Consequently, only 39 percent or
4,999 out of the 13,026 beneficiaries had graduated due
to delayed implementation of the program. Thus, the
objective of the program to produce employable and
productive beneficiaries in the barangays/communities
was not attained. Likewise, said graduates had not
received their starter toolkits due to delayed
procurement/delivery thereof by the CO, hence, they
were deprived of the immediate use of the toolkits for
their entrepreneurial, self-employment and service-
oriented activities due to non-distribution thereof.

7. The comparative Financial Statements (FS) including the

accompanying Notes to Financial Statements (NFS) for
CY 2017 was erroneously presented due to non-
compliance with Philippine Public Sector Accounting
Standard (PPSAS) No. 3 on retroactive restatement of
equity pertaining to Prior Period Adjustment/Unrecorded
Income and Expenses and Other Adjustments totaling
P(79,558,719.42).

SASDC SASDC for the 1st, 2nd and 3rd quarter of 2018 3 SASDC
MPLTP
AOM 1. AOM No. 18-001 (101) (2016-2017) mpltp dated 5 AOMs
February 9, 2018 re: Sales Invoices supporting the
liquidation of cash advances of Mr. Leonardo E. Pinlac
and Ms. Adoracion A. Manahan totaling P366,507.65 for
the purchase of supplies and materials for the conduct of
Community-Based Outreached Program entitled
“TESDA’s Serbisyong Barangay” and Livelihood Skills
Training Program for the period January 2016 to

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 Annex A

Latest AOM, NS, ND, NC, NSSDC and SASDC Issued (together with original DVs
and supporting documents and other pertinent documents: *
Particulars Quantity
December 2017 were doubtful. Moreover, the
Accountable Officers failed to comply with the
prescribed deadline under COA Circular 97-002 dated
February 10,1997 and Section 89 of Presidential Decree
No. 1445 for the submission of liquidation reports which
were delayed from 44 to 144 days.

2. AOM No. 18-002 (101) (2017) mpltp dated February 19,

2018 re: The MPLTP district failed to attain its target
906 number of graduates of the Special Training for
Employment Program (STEP) due to delayed
implementation of the program, hence, no one out of the
959 beneficiaries for the CY 2017 had graduated, thus
the objective of the program to produce employable and
productive beneficiaries in the barangays/communities
was not attained.

3. AOM No. 2018-003 (2017) mpltp dated February 22,

2018 re: The balance of Cash in Bank – Local Currency,
Current Account (LCCA) of the District Office (DO) is
misstated due to (a) unreconciled difference of
₱1,628,966.27 between the books of the DO and the
depository bank caused by reconciling items like
outstanding checks not yet presented/deposited in the
bank and non-reversion to the National Treasury of prior
and current year’s unexpended cash balance of Personnel
Services (PS), Maintenance and Other Operating
Expenses (MOOE) and Scholarship Program totaling
₱4,319,249.83 as required under Section 10 of the
General Provisions of RA 10924 or GAA of 2017 dated
December 29, 2016.

4. AOM No. 18-AF-004 (2017) mpltp dated March 7, 2018

re: The existence, completeness, accuracy and reliability
of the account balance of PPE totaling P8,202,308.68 as
of December 31, 2017 could not be ascertained due to a)
non-reconciliation of PPE account balance with the
Report of Physical Count of PPE (RPCPPE) by
₱2,857,489.24; b) insufficient recognition of
depreciation; c) inclusion of unserviceable PPE items in
the books under Fund 101 amounting to P270,310.00;
and d) failure to present PPE items by fund cluster in the
RPCPPE.

5. AOM No. 2018-AF-005 (2017) mpltp dated March 8,

2018 re: TESDA NCR - District of MuntiParLasTaPat
failed to submit paid Disbursement Vouchers and
supporting documents of Funds 101 and 161 for CY
2017 totaling ₱13,672,842.85 within the mandatory
periods as required by Section 100 of PD 1445, and
Section 6.05 of COA Circular No. 95-006 dated May 18,

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 Annex A

Latest AOM, NS, ND, NC, NSSDC and SASDC Issued (together with original DVs
and supporting documents and other pertinent documents: *
Particulars Quantity
1995, thus, precluded the timely audit and the required
verification and analysis of financial transactions.
NS 1. NS No. 18-001-101(15-17) mpltp dated February 15, 1 NS
2018 in the amount of P497,021.00 re: Payments made
by MuntiParLasTaPat (MPLTP) District to Arara
Restaurant for the period March 2015 to July 2017.
ND 1. ND No. 18-001-101(16-17) mpltp dated March 21, 2018 1 ND
in the amount of P366,507.65 re: Use of fictitious sales
invoices to support the claims for the conduct of
Community-Based Outreached Program and Livelihood
Skills Training Program of the MuntiParLasTaPat
(MPLTP) District for the period January 2016 to
November 2017.
NC
NSSDC 1. NSSDC No. 2018 – 001 dated May 11, 2018 in the 1 NSSDC
amount of P366,507.65 in settlement of ND No. 18-001-
101(16-17) mpltp.

SASDC SASDC for the 1st, 2nd and 3rd quarter of 2018 3 SASDC
*Note: Details may be shown on a separate sheet to include status and should be in a separate file
and storage

B.3. Fraud Audit

Particulars Quantity
Complaint Assessment Form (CAF)
Evaluation Report

B.4. Value for Money Audit

Area or Period Covered % of Status of Work

Program/Project Completion
TWSP January – December 2018 On-going
STEP January – December 2018 On-going

B.5. Other Issues/Audit Areas Recommended for Audit

Audit Area/Issue Particulars

(Brief discussion of the topic)

C. Monitoring & Follow-Up (Action Plan Monitoring Tool)

Year of Agency Action Date Date % of

Plan & Status of Received Validated Validation
Implementation (AAPSI)

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 Annex A

CY 2017
CY 2016
CY 2015
CY 2014

D. Inventory of Administrative Matter Reports

Remarks
a. Monthly Reports with supporting documents
1. Monthly Report of January 2018 to September 2018 DTR and MRAU
Undertimes and Absences-
DTR
b. Quarterly Reports
Consolidated QAR of TESDA-NCR for the 1st,2nd and
1. QAR 3rd qtr of 2018
Consolidated SASDC of TESDA-NCR and SASDC of
RO, Manila, MPLTP and CMNV for the 1st,2nd and 3rd
2. SASDC qtr of 2018
3. Assessment Report on Assessment Report on Implementation of SAI of TESDA-
Implementation of SAI NCR 02 for the 1st, 2nd and 3rd qtr of 2018
4. Quarterly Report on Requests Quarterly Report on Requests for Write-Off of TESDA-
for Write-Off NCR 02 for the 1st, 2nd and 3rd qtr of 2018
5. Quarterly Report of Quarterly Report of Publicized Government PPAs of
Publicized Government PPAs TESDA-NCR 02 for the 1st, 2nd and 3rd qtr of 2018
Inventory of Documents Received from TESDA-NCR for
the period January 1, 2016 to December 31, 2017

6. Inventory of Documents Inventory of Documents Received from TESDA-NCR for

Received from Auditee the period January to June 2018

7. ROSA N/A
c. Semestral Reports
1. Report and Analysis of RADC of the TESDA – NCR Audit Team 02 for the
Disallowances and Charges semester ending June 30, 2018
(RADC)

2. Report on Enforcement and Report on Enforcement and Monitoring of Final and

Monitoring of Final and Executory Decisions of TESDA – NCR Audit Team 02
Executory Decisions for the first semester ending June 30, 2018

Division/Individual Performance Commitment and

Review (PCR) of TESDA – NCR Audit Team No. 02 for
3. OPCR, DPCR, IPCR the period July 1 to December 31, 2017

Actual MOOE and CO Provided by Audited Agencies for

4. Actual MOOE and CO the semester ending June 30, 2018
Provided by Audited
Agencies

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 Annex A

5. Status/Assessment Reports of
Unliquidated Cash Advances,
Fund Transfers to Non-
Government
Organizations/People's
Organization(NGOs/POs),
Fund Transfers to
NGAs/LGUs/GOCCs, and
Other Receivables
Remarks
Status/Assessment Reports of Unliquidated Cash
Advances, Fund Transfers to Non-Government
Organizations/People's Organization(NGOs/POs), Fund
Transfers to NGAs/LGUs/GOCCs, and Other Receivables
of TESDA-NCR as of June 30, 2018

d. Annual
1. Audit Reports on ODA N/A
Funded Projects
FY 2019 Budget Proposal of TESDA – NCR Audit Team
2. Budget Proposal 02
3. Common and Significant CY 2017 Significant Audit Findings of TESDA – NCR
Audit Findings Audit Team 02
4. Consolidated Report on Audit Consolidated Report on Audit Observations and
Observations and Recommendations on GAD As of December 31, 2017
Recommendations on Gender
and Development (GAD)
Other Administrative Activities
1. Communications received
a) From CD/ACD and Other
Operating Offices
b) From Management
c) From Others
2. Disposal of Records

V. MATTERS PENDING ACTION and CASES/UNRESOLVED ISSUES:

Nature Subject Matter Remarks

(Referral,
contract, others)
Referral
Case files (with
separate file/storage)
Working Papers 1. Payments made by the MPLTP Issued AOM No. 18-007 (101)
District to the Technical Vocational (2018) mpltp dated October 3,
Institution (TVI), E900 Training 2018 on October 23, 2018 re:
Center, for the conduct of trainings Various deficiencies and
under Special Training misrepresentation in the
Employment Program (STEP) for required reports submitted by
the period December 2017 to the TVIs, E900 Training Center,
February 2018. Inc. and Southwestern
Technical Institute of Business
and Arts, Inc., were noted such
as: a) five (5) scholars denied
attendance to the said trainings
and 53 scholars could not be
reached thru their mobile

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 Annex A

Nature Subject Matter Remarks

(Referral,
contract, others)
numbers; b) the supposed
scholars were given leaflets
indicating complete details of
the training and were instructed
to respond in positive when
somebody confirm of their
availment of the training; c)
five (5) scholars could not be
found in their given addresses;
d) the picture of known actress
with screenname “Barbie
Forteza” was used as an ID
Picture attached in the
Scholarship Grant (SG) of a
beneficiary scholar; e) false
declaration of absorptive
capacity; and f) incomplete
documentation on the approved
program registration of the TVI.
These were due to TESDA
District’s failure to enforce
strict compliance of the TESDA
Guidelines in the accreditation
and approval of program
registration of the TVIs, grant
of scholarship and poor
monitoring of the conduct of
STEP trainings. Thus,
attendance and assessment of
the 80 scholars claimed to have
undergone the said training
were doubtful which resulted to
misuse of government funds
and failure in the realization of
the objectives of the STEP.
ND 2. Payments made by MPLTP District AOM No. 2017-009 (2015-
to Arara Restaurant for the period 2017) mpltp dated September
March 2015 to July 2017. 11, 2017 was issued for the
deficiencies noted in payments
made to Arara Restaurant by
TESDA-MPLTP District.
However, the District failed to
comply with the requirements
discussed in the said AOM
issued to prove the legitimacy
of the Arara Restaurant.
Accordingly, the total amount
of ₱497,021.00 was suspended
in audit thru issuance of Notice
of Suspension (NS) No. 18-001-
101(15-17) mpltp dated

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Nature Subject Matter Remarks

(Referral,
contract, others)
February 15, 2018.

Likewise, the District failed to

settle the audit suspension
through compliance with the
requirements. Thus, after
careful evaluation of the
circumstances, the total amount
of ₱497,021.00 was disallowed
in audit.

ND No. 18-002-101(15-17)
mpltp dated September 5, 2018
was prepared and submitted to
SA for review and approval on
October 11, 2018.

I certify to the correctness of the foregoing information.

SITTIE AISAH S. SANGGACALA/SA I

Name/Position (Outgoing Officer)

Date: ___________________________

Received/Conformed by:

EVANGELINE M. DEL ROSARIO/SAE II

Name/Position (Incoming Officer)

Date: ____________________________

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