IAS 002 - ITDI - 1st - Ffup - Report

DEPARTMENT OF SCIENCE AND TECHNOLOGY
Internal Audit Service
FOLLOW-UP AND MONITORING REPORT OF INTERNAL AUDIT FINDINGS

Research and Development (R&D) and Technology Transfer Activities of the ✔ 1ST Follow-up 2nd Follow-up 3rd Follow-up
DOST Research and Development Institutes (RDIs) – Industrial Research and
Development Institute (ITDI) June 29, 2020
Areas Audited: Office of the Director, Planning Staff and Management Information
Systems, Chemicals and Energy Division, Environment and Biotechnology Division,
Auditee: Dr. Annabelle V. Briones, Director, ITDI Food Processing Division, Material Science Division, Packaging Technology Division,
Technological Services Division, Financial Management Division and Administrative
Division
Audit Team Leader: USec. Brenda L. Nazareth-Manzano, Regional Operations Date of Audit: October 2018 – January 2019
Asst. Team Leader: Engr. Niñaliza H. Escorial, Chief, ITDD-PCIEERD
Remarks/Status:
Members: Mr. Robert Paulo T. Lumbatan, OIC, DOST-FMS
Atty. Bernard L. Soriano, CAO, DOST IV-A There are 59 audit findings/observations requiring appropriate Management Action.
Engr. Nonilo A. Peña, Chief, PCIEERD
Ms. Russell M. Pili, Chief, PCIEERD Report Submission Date CLOSED
Ms. Roselle L. Martonito, Supervising SRS, PCHRD
Ms. Leizl D. Sueno, Supervising SRS, PCIEERD ITEMS
Deadline Date Received
Ms. Gretchen O. Nas, Senior SRS, PCAARRD
Dr. Engelbert R. Lalican, Senior SRS, PCAARRD Rejoinder March 05, 2020 May 29, 2020 0
Ms. Melissa C. Bulao, SRS II, PCHRD
1st Follow-up July 29, 2020
Overseer: Engr. Maria Teresa B. De Guzman - Director, IAS 2nd Follow-up
Secretariat: Engr. Arnaldo C. Reyes - OIC, Internal Auditor V, IAS
3rd Follow-up
Mr. Edgardo P. Catorce, Jr. - Internal Auditor IV, IAS
Ms. Marian C. Gelera - Internal Auditor III, IAS
Ms. Kristine Joy M. Tablizo - Internal Auditor III, IAS
Ms. Jannin G. Trinidad - Internal Auditor II, IAS
Ms. Rebecca Rose B. Javier - Internal Auditor II, IAS
Ms. Ann Crisiene R. Reducto - Project Assistant I, IAS
Ms. Hersa Jazzica E. Olid - Computer Operator II, IAS
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No Internal Audit IAS Monitoring of

Area of Audit Internal Audit Findings/Observations Management Actions STATUS
. Recommendations CA/Follow-up
Management and Planning
ITDI’s Broad 1 Need to revisit ITDI's mandate, areas

Mandate vs of coverage and the organizational
Low Budget structure in the light of the
upcoming Rightsizing Program of
the government
ITDI as the biggest RDI covers a wide

area from which to conduct applied Revisit mandate May 22, 2020: June 22, 2020: OPEN
R&D and develop technologies and including R&D areas
innovations for transfer to its end-users. especially after the Rat The ITDI agrees with Submit documented
Initially per EO 128 (1987) these areas Plan to determine what the Auditors’ comment evidence/s, such as the
included chemicals, minerals, food defines and makes the regarding the low R&D Approved ITDI
processing, fuels, energy, materials role of ITDI in STI budget visà-vis its Strategic Plan, Creation
science, microbiology, genetics, distinct to ensure its multidisciplinary areas of a Change
electronics, and process control. During continuity especially of R&D. Management Team to
ITDI's Rationalization Program in 2010, with the upcoming look into the
some of these areas were consolidated government Rightsizing organizational structure
to the following: environment, Program; and evaluate functions,
Several strategies have
biotechnology, chemicals, energy, with areas of coverage, etc.,
already been adopted
the introduction of packaging as proof that internal
to address this
technology and retention of food audit recommendations
Look into how the predicament knowing
processing and materials science. are already undertaken.
organizational structure that budget
Considering the limited R&D budget, appropriations are not
can be improved
however, and looking at the list of R&D in the hands of the
/strengthened for ITDI
projects funded, not all of these areas agency and therefore
to quickly respond to
mentioned were provided with sufficient treated as
changing industry
R&D funds to be able to generate uncontrollable. Hence,
needs; and
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relevant and significant ITDI aggressively taps

products/technologies/ services to the GIA funding assistance
industries. Evaluate functions, to augment its R&D
services, areas of budget, which has so
A broad mandate coupled with low research coverage, far contributed
budget provided for R&D and processes, and consistently to more
Technology Transfer have affected products vis-a-vis other than 50% of the total
ITDI’s dynamism and relevance to the organizations with funds received to
industries/stakeholders it serves. similar functions, implement R&D
services, programs, projects. In 2019, for
projects, and activities example, 37 GIA
and see how ITDI can projects were
Case in Point:
“niche” in the presence implemented with total
R&D budget for some projects can go of these other funding assistance of
as low as P40,000 - 60,000 per project interventions/ facilities. about P394.3 Million.
in 2017. In 2014, there was a P20,000 These projects passed

worth of a project. the stringent review of
panelists & other
requirements such as
Likewise, there are many organizations alignment with the
entering the similar industries it is HNRDA, contribution to
serving (e.g., DTI - packaging, SMEs productivity, etc.
assistance, common service facilities;
FNRI - food processing; UPLB -
Biotechnology for Industry, Energy and In terms of rightsizing
Environment Program). vs mandate, it would be
apparent that ITDI will
need more human
resources to achieve its
mandate. In 2018, for
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example, the DBM

asked about any
proposed modifications
in organization, staffing,
systems and
procedures,
management,
refocusing of functions,
reprioritization,
monitoring, etc. The
ITDI submitted its
proposed creation of
additional section/
laboratories with total
plantilla position
requirement of 118 for
continuing operations
of downloaded projects
that soon will be
institutionalized such as
the metrology, modular
multiindustry innovation
center including the
ADMATEL project. ITDI
continues to reiterate
this request and now
with the addition of
more as it continues to
realize more projects
that will have to be
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institutionalized also in
the near future.
It is also noteworthy
citing ITDI’s Packaging
Technology Division
relative to the last
comment. DTI
packaging assistance is
only in the form of
providing equipment &
financial assistance.
Distinct with ITDI-PTD
is its mandate and
capability to conduct
R&D, testing and
packaging design. PTD
is expanding its ‘niche’
in the market, aside
from the only
government unit that
provides testing for
specific packaging
contaminants, it is also
establishing the
simulation packaging
testing lab (SPTL), the
first in the Philippines.
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Vision- 2 ITDI’s vision-mission statements are

Mission broad and need to be clear-cut and
Statement strategic for a sustainable
competitive advantage for the
country
The wide vision of becoming a

recognized industry partner for STI and Soul-search and May 22, 2020: June 22, 2020: OPEN
a common mission to contribute in brainstorm as an
The ITDI has created Awaiting submission of
making local industries globally institute in consultation
an Industry Advisory ITDI’s approved
competitive resulted in broad strategies with the industries it
Committee, which is Strategic Plan with
and programs for ITDI. For instance, serves on how ITDI can
composed of reputable strategic planning
the strategic objectives include: to strategically position
people from industry activities, identified
establish state-of-the-art STI facilities, itself in the more
and other government strategic objectives/
establish centers of excellence in STI, important areas that the
agencies. Its first outcomes that can be
increase STI services, and increase industries need
meeting was held in translated into
local and international assistance on,
July 2019 and performance objectives
collaboration/linkages. The program identifying the specific
thereafter had three with identified
thrusts, on the other hand, under the sectors, fields and
more regular meetings programs/projects/
various divisions are likewise broad in technologies that need
scope: (1) Environment and to be pursued and in September and
activities and
Biotechnology Division - biofuels, developed to become a November 2019 and in
measurable success
bioremediation, enzyme technology, more relevant and January 2020. The
indicators.
industrial fermentation, and waste dynamic partner; improvement of the
treatment technologies; (2) Materials Draft ITDI Strategic
Science Division - nanotechnology, Plan, as to the
surface science engineering, directions of its R&D
Involve the target activities, technology
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polymers/plastics R&D, ceramics R&D, industries in identifying transfer and technical

composites R&D; (3) Chemicals & specific areas that ITDI services, is in progress
Energy Division - renewable energy, need to improve and following the
pharmaceuticals, industrial chemicals, expand on especially in suggestions, inputs,
process development; (4) Food the setting up of bigger and recommendations
Processing - food Engineering, food facilities, STI centers of of the IAC.
safety standards, & processed foods; excellence, and
(5) Packaging Technology Division - services;
Packaging development, label design
for food/non-food products, packaging
testing, transport packaging design & Have an outward focus,
performance evaluation. giving strong
consideration of the
competitive and market
To be able to propel development for environment where
the country by providing relevant ITDI operates; link with
technologies and services to the other government
industry, the goals and objectives of agencies like DTI,
ITDI need to be clear-cut, paved in DOH-FDA, DA, DENR,
roadmaps, and focused on an agreed and LGUs to establish
direction that it will commit to pursue in itself among the other
the next 5-10 years, with strong players supporting
partnership with the industry, industries;
government agencies, and the local
government under the leadership of the
DOST. It was noted that the strategic Determine and develop
objectives are supply driven, more than niches along its core
demand driven. There was no competencies
document shown that there was a especially with its
meeting of minds among stakeholders / diverse industry
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target industries on what state-of-the- concerns;

art facilities/equipment, STI centers of
excellence and services they need ITDI
to establish to be able to play Study the
competitively in the bigger or even competencies and
global arena. capacities of its existing
human resources and
determine the gaps that
There is also a need to need to be developed
understand/determine what risks can with timelines and
affect the attainment of the vision and budget considerations;
the mission of the Institute.
Finalize the Strategic

ITDI has yet to put all of these Plan which must be the
considerations in its Strategic Plan that
basis for drafting the
will be its guide in redirecting the Annual Operations Plan
Institute from functional to strategic.and consult/validate the
Plan with
stakeholders/industries
The Plan should also include a time ITDI serves and the
table by which time these undertakings bigger S&T community
that it is part of;
will be pursued.
Consider/include its risk

factors and the risk
management plan in
the Strategic Plan to
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ensure that the priority

needs and
risks/concerns are
addressed because
risks can potentially
disrupt processes or
can create disparities in
the implementation of
the strategies/goals of
the plan; and
Set in place a
monitoring and
evaluation mechanism
to determine attainment
of strategic objectives,
goals and outcomes
within the set timelines.
ITDI's 3 The in-house technologies

Support to generated are not sufficient/readily
DOST available for use in the DOST major
Programs technology
transfer/commercialization
programs, such as SET-UP, ,
TECHNICOM, and Regional GIA
Program.
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Recent impact assessment of SETUP

showed that most technologies being
funded and rolled-out are outsourced Be a consistent May 22, 2020: June 22, 2020: OPEN
and not coming from DOST-RDIs, ITDI provider of local
technologies required The SET-UP clienteles Submit documented
in particular. Likewise, performance
by the SMES and even are existing (3 years or evidence/s as proof
review of the regional projects indicate
the medium enterprises more). They have their that internal audit
that further development is requested
in the country in line preferred or chosen recommendations are
for some ITDI technologies (e.g.,
with its mission to technology for their already undertaken.
plastic, densifier/bioreactor.
contribute in making business and it is
local industries globallyseldom that they would
competitive; shift to a totally different
Moreover, it is also the RDIs mandate technology when they
to link with other government agencies avail of SETUP
in its conduct of technology transfer assistance. Their need
activities. However, there were no Continue to develop big is more of acquiring
visible dynamic linkages developed with impact projects such as larger or alternative
government agencies as a mechanism the Food Innovation processing equipment.
to drive technology transfer. ITDI Center and follow-
directly introduced to the end-users the through technologies
technologies developed in concerned such as development of
industries and/or the requesting local product prototypes from It is timely that ITDI
the FICs; strengthens its
government unit.
Equipment Design and
Prototyping capability.
This should be
Link with other RDIs differentiated from the
(e.g., MIRDC, PTRI, capability of MIRDC
FNRI) to develop high which is based on
value /more
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sophisticated technolog fabrication.
ies thru
collaboration/converge
nce; and; The ITDI developed
technologies are
alternatives to current
Develop a feedback technologies (e.g.
mechanism from VCO, Muscovado)
adopters, particularly
from the regions
through the Regional
In the case of
Offices, to ensure full
packaging technology,
diffusion and utilization
ITDIPTD still leads and
of ITDI-developed
currently expanding its
technologies as well as
reach through
ensure the maturity of
partnership with the
technologies for roll-
academic institutions.
out; and
To facilitate
Forge an efficient link
dissemination of
and working
information/ transfer of
relationship with the
packaging technology,
DOST Regional Offices
PTD has developed a
and other government
network of packaging
agencies in the regions
coordinators in the
through the Office of
DOST regional offices.
the Undersecretary for
At least 2 packaging
Regional Operations to
coordinators were
be able to secure
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institutional support assigned per region

such as the information (with S.O.)
systems, funding, and
other needed
assistance, especially
in the conduct of
technology transfer
activities.
4 The ITDI 2018 Accomplishment

Report has not yet been submitted.
June 22, 2020:
The Planning Division has yet to IAS reiterates the need

There should be an May 22, 2020: OPEN
publish or submit its 2018 to have a mechanism
Accomplishment Report. This means annual calendar of to ensure the prompt
activities to be followed It is actually the
ITDI was not able to submit to OP or at submission of ITDI’s
and strict imposition of Technological Services
least to DOST its 2018 annual report on Annual Report as
deadlines in preparing Division – Information
or before July 1, 2019. Per the Admin prescribed by law, such
the annual report to Documentation Section
Code, heads of agencies have to as adopting an annual
guide and compel the that is in charge of the
submit accomplishment reports to OP calendar of activities
divisions and other ITDI Annual Report
on or before the first day of July of each which will serve as a
offices to prepare and publication. The PMISD
year. The deadlines for the submission guide in preparing the
finish the prepares the write-up in
of requirements pertinent to the annual report. This will
Accomplishment collaboration with the
preparation of the 2018 annual report help in ensuring the on-
Report on time. The division heads then
was not strictly observed. time preparation and
report should contain endorses the output to
submission of the
the following: (1) TSD for further
Accomplishment
Concise statements of improvement,
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the accomplishment preparation of layout, Report.

and assessment of the picture taking, etc. The
progress attained in delayed publication of
terms of approved the 2018 Annual Report
programs and projects, was an isolated case.
(2) pertinent financial TSD had encountered
statements on problems with the
expenditures incurred, publisher as specs
(3) broad were not followed
recommendations/work hence reprimanded to
plans for the ensuing change. Several other
period, among others. issues with the
as prescribed by publisher ensued
pertinent laws and thereafter.
issuances.
Information Technology Management
IT 5 Unrealized importance of the MIS

Governance Section in achieving the
organization's strategic goals
IT Governance is defined as the

processes that ensure the effective and Management should May 22, 2020: June 22, 2020: OPEN
efficient use of IT in enabling an develop an IT
organization to achieve its goals. It is a The 3-year Information While the ISSP shall
organizational structure
framework that provides a way of Systems Strategic Plan provide funding support
that clearly reflects its
aligning IT strategy with the business (ISSP) of the ITDI was to the agencies for the
role in delivering the
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strategy and ensuring that IT generates Institute’s products and already approved and development and
value in the organization. services and achieving endorsed by the maintenance of
its strategic goals; and Department of information systems
Information and and establishment of IT
Communications infrastructure, the
The Management Information Systems
the Technology to the DBM Management should
(MIS) Section is responsible for the Ensure that
of agency-wide strategic last May 2019. strengthen the role of
development, maintenance
MIS Section in
information systems, management of plan should include IT,
providing valuable IT
computer network infrastructure, and or there is a separate
services. Provide proof
provision of various IT-related support IT strategic plan, that The endorsed ISSP
that MIS Section is
services. addresses the was already approved
recognized as a
technology needs of & downloaded by the
strategic partner of the
the agency, to DBM to ITDI for its
Institute.
effectively and 2020 GAA;
The MIS Section is part of the Planning
and MIS Division (PMISD) under the efficiently meet its implementation started
overall strategic plan. in January 2020 with an
Deputy of Administrative and Technical
Services. As revealed during the Audit approved ICT budget of Regarding the positive
Team’s interview, there was a PhP48,341,000 for development on the
Year 1. status of ISSP of the
perception in the past that MIS Section
Institute, submit a copy
should prioritize its own division
of the approved ISSP
(PMISD) first before other offices in
as endorsed by DICT to
terms of allocating IT resources and During the 2019
DBM and provide
support services. Also, it was generally Strategic Planning
minutes of the meeting
recognized as a unit that only provided activity, the agency IT
during the conduct of
internet services to the Institute. infrastructure plan
2019 Strategic Plan
based on the ISSP
highlighting the
crafted was one of the
discussion on the IT
major areas discussed.
matters.
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The approved ISSP

includes the proposed
of the MIS as a
separate unit/ division
from the existing
Planning & MIS
Division (PMISD). Still,
realization of this
change in
would depend on
appropriation of funds
by DBM and the
corresponding issuance
of an Executive Order.
The MIS shall have

already put in place
after the project
completion in 2022 the
several targeted IT
systems such that
operations including
customer support will
have already achieved
greater efficiency by
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then.
MIS Section 6 Lack of IT staff to effectively perform

Staffing IT Unit functions/services
Pattern
IT governance can be realized with an

appropriate organizational structure. Management should May 22, 2020: June 22, 2020: OPEN
The MIS Section is composed of one establish adequate
human resource We totally agree with With the approved
(1) Supervising SRS, one (1) Senior
complement to provide the Auditors’ ISSP, the Institute is
SRS, and one (1) SRS I. With this
various IT services comments. In fact, this now able to hire
limited number of IT staff, there has
including but not limited specific concern on the additional IT staff. We
been some delays in the
to system analysis and lack of staff was recognize the effort of
implementation, maintenance, and
design, programming, highlighted in the the Management in
documentation of the developed
system documentation, approved ISSP, where establishing an IT
information systems. They perform the need for a change
quality assurance and organizational structure
multiple job roles; hence, there is no
software testing, in organizational especially by
appropriate segregation of incompatible
system and network structure with the designating employees
activities (e.g. system analysis/design
administration, and corresponding from other offices with
function separate from programming
hardware/software appropriations for IT background and its
and database administration function
support. additional IT staff was a aggressive recruitment
separate from application major component of the of OJT.
programming). Case in point: Senior strategic plan.
SRS performs programming task and
also do software testing for the same It should also ensure
system. that there is appropriate To address the
segregation of Further, the findings: (1) Submit the
incompatible activities implementation of the latest MIS Section
assigned to staff, and 3-year ISSP, which organizational structure
prevent one personnel started in January 2020 reflecting the additional
has allowed PMISD to
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from controlling all key hire professional IT staff from other

aspects of computer- services (COS offices, COS personnel,
related operations by personnel) of IT and OJT. Also, provide
proper distribution of experts. the corresponding
tasks among the staff. approved duties and
responsibilities; and
While IT staff (2) Provide a sample
recruitment and email to a school
processing of requesting for IT
documents were trainees for ITDI-
ongoing in 2019, the PMISD.
PMISD Chief
simultaneously
undertook a major
change/ revamp in the
division’s line up of
human resources to
help assist MIS in the
forthcoming ISSP
implementation. One
planning staff who has
a Master’s Degree in IT
was transferred to MIS.
One Metrology staff
who also is an IT
graduate was also
requested and
approved by the
Director for detail at
MIS to help in the
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implementation of the
ISSP.
Aggressive invitation
thru emails were sent
to schools to invite IT
students to have their
On the-Job training at
ITDI-PMISD. Timely
with the school
calendar, we received
several OJTs for MIS.
Information 7 There was no avenue for end-users

Technology to regularly discuss their concerns
Steering with IT Services; hence, there is a
Committee need to connect end-users with the
(ITSC) MIS Section
June 22, 2020:
IT governance is evident if there is a We commend the

platform for end-users and senior In order to perform a May 22, 2020: inclusion of inputs from OPEN
leaders to discuss with the IT Unit their more proactive role in different divisions in
needs and feedback on various IT providing IT services, We totally agree with defining the IT needs of
services. Because of the limited consider creating an the Auditors’ the agency for the ISSP
number of IT staff, the MIS Section is Information Technology comments. In fact, we during the ITDI
unable to make a regular consultation Steering Committee started involving all Strategic Planning and
division heads during
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with other offices regarding IT matters. (ITSC) with defined the ITDI Strategic the inclusion of ‘MIS
objectives and scope, Planning and further Matters’ agenda in the
responsibility, extended the activity ExeCom meeting. To
accountability, reporting during the conduct of close, kindly provide a
The MIS Section only provides IT
structure, and their respective copy of the said
support services as the need arises. In
frequency of meetings. divisional strategic agenda and excerpt of
case an office needs a particular IT
It is recommended that planning workshop the minutes/highlights
service such as a website or
all division heads are where inputs from of the meeting as
information system, it needs to prepare
involved in the everyone as to ICT evidence that there is a
a request letter addressed to the
proposed ITSC to concerns were discussion on IT
PMISD Chief.
formulate, prioritize and gathered. Inputs matters.
recommend to validated those issues
Management various reported in the 3year
programs/projects on ITDI ISSP. This was However, we reiterate
IT. The possible duties also reinforced with the recommendation to
and responsibilities of survey on IT matters create an IT Steering
ITSC are as follows: that was circulated to Committee (ITSC) that
all employees.
● Direct, review, will assist the PMISD in
and approve IT ensuring effective and
strategic plans; efficient IT services and
ITDI thru the PMISD- successful
● Oversee the
MIS also has put in implementation of IT
implementation place the User’s projects. Considering
of IT projects Feedback Form for the busy schedule of
and allocate
every technical the Division Chiefs,
resources; services provided by ITSC may be
the MIS Section and composed of other
● Connect end- the Request for New senior staff from
users with the Information System different offices. The
MIS Section to needed To reinforce all said Committee may
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facilitate IT systems being have a separate

exchanges ofdeveloped as well meeting and will just
users’ needs,protect those being report the results of
priorities, and maintained the ITDI their discussion during
satisfaction thru PMISD had the ExeCom meeting.
levels; and already issued several
ICT Policies, as follows: Likewise, provide a
● Recommend to 1. Policy Guidelines in copy of an
Management Purchasing Information accomplished User’s
policies/standar and Communications Feedback Form for IT
ds on Technology (ICT) service rendered by
issues/matters Hardware and MIS Section.
pertaining to IT. Software; 2. Policy
Guidelines on
Information Technology
Security of the
Industrial Technology
Development Institute;
3. Policy Guidelines on
the Request and
Installation of Software
in all ITDI-owned
Computer and other
Electronic Devices; 4.
Policy Guidelines on
(IT) Technical Support;
5. ICT Policy
Guidelines on “Bring
Your Own Device
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(BYOD)”; 6. ITDI
Website Policy
Guidelines; 7. ITDI
Webmail Policy
Guidelines; and 8. ITDI
Implementation of
Network Attached
Storage (NAS).
With reasonable
expectations, the
creation of an IT
Steering Committee
would be considered in
completion of the ISSP.
In its place at the
moment, the ‘MIS
Matters’ was made a
regular Agenda item in
the ExeCom meetings
of the Institute where
division heads are
updated with the
activities of PMISD-MIS
and issues pertaining to
IT and IT related
matters are raised and
resolved by ExeCom
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members.
Information 8 No appropriate control to ensure

Systems timely development and submission
Strategic of ISSP
Plan (ISSP)
The Information Systems Strategic Plan Management should May 22, 2020: June 22, 2020: OPEN
(ISSP) is mandatory for all government put in place appropriate
controls to ensure the As mentioned earlier, Provide IAS the Annual
agencies to document their strategic
timely development of the 3year ISSP of the Work Plan of PMISD
plan for the development and
ISSP and submission ITDI was already with timelines of the
implementation of information systems,
to the DICT. approved and endorsed deliverables and as
the use of ICT, and establishing by the Department of reported that the ISSP
resource requirements over a period of Information and is part of the MFOs and
3 years. It also serves as the basis for Communications DPCR, a copy of the
the Department of Budget and The development and Technology to the DBM
approved MFOs and
Management (DBM) for the release of monitoring of ISSP last May 2019.
DPCR of PMISD
the Medium-term Information & should be included in
highlighting the
Communications Technology the Annual Work Plan
development and
Harmonization Initiative (MITHI) Fund of PMISD complete
submission of ISSP as
(formerly called Dig-E Fund) for with timelines of The endorsed ISSP
was already approved part of the office
agencies. delivery of small tasks.
& downloaded by the targets.
DBM to ITDI for its
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2020 GAA;
implementation started
From 2005 to present, the Institute was in January 2020 with an
only able to produce three (3) IS approved ICT budget of
Strategic Plans: 2005, 2015-2017, and PhP48,341,000 for
2020-2022. It was mentioned during Year 1.
the Audit Team’s interview that the
ISSP was not prioritized during those
years with no approved ISSP (i.e., CYs
2018-2019). Hence, the Institute was The ISSP
not granted a budget for ICT implementation is part
requirements. of the MFOs and DPCR
of PMISD for
monitoring and control
purposes.
In December 2018, the 2020-2022
ISSP was already forwarded to DICT
for evaluation and endorsement to
DBM.
ISSP Process 9 Prescribed Process Flow for the

Flow Development of ISSP was not
followed
The MIS Section May 22, 2020: June 22, 2020: OPEN
The recommended Process Flow for
the development of ISSP includes should spearhead the
crafting of ISSP and This was done or Provide evidence that
conduct of ISSP workshop, the prescribed ISSP
organization of the ISSP-Technical follow the ISSP complied already.
Process Flow was
Working Group (TWG), assessment of Process Flow required
already adopted and
organizational strategy, formulation of by DICT which should
performed may be
include the following:
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IS development strategy, ● Conduct of through its

conceptualization of ICT projects, ISSP workshop incorporation in PMISD
identification of resource requirements, Procedures Manual or
and approval of the ISSP by the agency ● Organization of in an approved Gantt
management. the ISSP- chart/timeline of
Technical activities.
Working Group
(TWG)
During the audit interview, the 2020-
2022 ISSP and the previous ISSPs ● Assessment of
were only developed by the MIS organizational
Section based on the IT strategy
intervention/support needed by the
Institute’s strategic thrusts (i.e. R&D, ● Formulation of
Technical, and Administrative). IS development
strategy
● Conceptualizati
The preparation of ISSP should have on of ICT
been facilitated as an agency-wide projects
planning process if there was an
organized ISSP-TWG and MIS Section ● Identification of
as part of the Institute’s strategic resource
planning activities. requirements,
and
● Approval of the
It was revealed that MIS was never ISSP by the
involved in any strategic planning agency
activities prior to the development of management
2020-2022 ISSP. It was only recently
that the MIS participated in the planning
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workshop of the Institute. Fortunately,

all the IT needs identified by the
different offices during the workshop
were captured in the developed 2020-
2022 ISSP.
Backup 10 Proper backup procedure is not in

Process place
To ensure that the May 22, 2020: June 22, 2020: OPEN
Backup and recovery controls should Institute creates copies
be in place to provide assurance that of their data / files Data and information Submit a copy of the
the agency shall be able to continue its consistently and system backup and approved MIS Business
operations once there is a loss or regularly, develop recovery are part of the Continuity Plan and
destruction of data, hardware, system, documented backup MIS Business Disaster Recovery Plan
and other data processing facilities. policy /guidelines to Continuity Plan and which takes in
specify the method, Disaster Recovery Plan consideration the audit
data/files to be backed recommendations.
up (e.g., program files,
The MIS Section performs backup of
configuration files, ITDI designates the
data and systems from various servers
databases, STD Server Room at Also, provide an
and staff workstations on a daily and
documentation), STD building as MIS explanation why STD
monthly basis. Backup files are being
frequency/schedule of sub-station building is a suitable
stored in the disk drives of computers
backup process, and location for off-site
(daily backup) and in a separate server
the retention period of backup location and
for another copy of backup files
backup files. evidence that testing of
(monthly backup). While there are Testing of backup files
multiple copies of backed-up data/files backup files is not
will be part of the
being created, this may not be being performed.
regular duty of MIS
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considered as an effective backup The MIS Section Staff .

practice since backup files are placed should establish at
within the same area/building as the least one off-site
original data/files. Also, backup files are location for backup
never tested to see if they are files.
restorable to a different computer or
server.
Inventory of backup
files should be
undertaken regularly to
verify that appropriate
backup files are
created. Regular
testing of backup
should also be
performed to ensure
that backup files are
easily accessible and
restorable.
ITDI may wish to

consider using software
utility (i.e., cron job) to
run automatic backup
periodically at fixed
times, dates, or
intervals.
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ICT Policy 11 ICT Policy Manual of the Institute is

Manual not yet being implemented
ICT Policies and Procedures ensure

that employees use Information and Management should May 22, 2020: June 22, 2020:
Communications Technology (ICT) approve and implement OPEN
facilities and services of the Institute in the ICT Policy Manual; As mentioned earlier, Submit a copy of the
and several ICT policies Office Order on the
an appropriate and secure manner. have been issued issuance of ICT Policy
already that comprised Manual and provide
the ICT Policy Manual: updates on the
MIS Section developed an Information Establish regular
mechanism to monitor
and Communications Technology (ICT) monitoring and
and evaluate the
Policy Manual which contains the evaluation of the ICT
implementation of
following policies and standard Policy Manual 1. Policy Guidelines in
Purchasing Information various IT policies.
procedures: implementation.
and Communications
1. Purchasing of ICT Hardware Technology (ICT)
and Software Policy Hardware and
Software;
2. Information Technology Security
Policy 2. Policy Guidelines on
3. Policy for Getting and Installing Security of the
Software Industrial Technology
Development Institute;
4. Information Technology
Technical Support 3. Policy Guidelines on
the Request and
5. Bring Your Own Device (BYOD) Installation of Software
Policy in all ITDI-owned
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6. ITDI Website Policy Computer and other

Electronic Devices;
4. Policy Guidelines on
Based on the audit interview, these Information Technology
policies are not yet fully implemented. (IT) Technical Support;
While the MIS Section is already
implementing some of the provisions in 5. ICT Policy
the above-mentioned policies, it is not Guidelines on “Bring
yet made official and no monitoring of Your Own Device
their implementation is being done. (BYOD)”;
6. ITDI Website Policy

Guidelines;
7. ITDI Webmail Policy

Guidelines; and
8. ITDI Implementation
of Network Attached
Storage (NAS)
We agree with the

Auditors’ comment. A
mechanism and tool for
monitoring of
compliance including its
effectiveness shall be
put in place.
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Information 12 Information systems are not properly

System documented
Development,
Acquisition
and In order to ensure successful
Maintenance To facilitate May 22, 2020: June 22, 2020: OPEN
development of information or
application systems, one should follow documentation, MISD
should prepare a PMISD-MIS had Submit a copy of the
the System Development Life Cycle
procedures already crafted a approved procedure on
(SDLC), a structured and methodical
manual/work documentation system development.
process, which includes planning,
instructions on the procedure for system
analysis, design, implementation, In relation to IAF No. 6
information system development, starting
testing and integration, and follow-up actions,
development; from Request of
maintenance. The same structure indicate the IT staff who
Information System to
should also be used for information will be responsible for
be Developed followed
systems to be developed by a third- the development of
by the following sub
party software provider. Ensure that appropriate documentation: user requirements list,
documents are design specifications,
available for every 1. Request validation user manuals and other
Based from 2020-2022 ISSP, the information system with and Significance necessary
Institute has a total of 15 information corresponding approval documentations.
systems being from specific 2. System
stakeholders. Each Development Plan
maintained/developed/enhanced.
system should at least 3.User Requirements
have the following Specification
documentation:
MIS Section follows the Waterfall Model 4. Data Gathering
during the development of its ● Project Charter
information systems, which involves 5. Process Flow
gathering of user requirements, ● User
creation of interface designs, Requirements 6. System Flow
Specifications
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programming, system testing, ● Design 7. Database ERD

deployment and maintenance. Specifications
However, there were no standard 8. Technical Manual
deliverables for every project activity. ● User Manuals
9. Users’ Manual
● Integration and
System Test 10.System Testing
Results Documentation
● User 11.User Acceptance

Acceptance Documentation
Test Results
Assign IT staff who will

be responsible for the
development of user
requirements list,
design specifications,
user manuals and other
necessary
documentations; and
Consider using IEEE

Software Requirements
Specification (SRS)
Template when
defining the functional
and nonfunctional
requirements of the
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system and IEEE

Software Design
Specification (SDS)
Template to document
the architecture, user
interface design,
process flow, and
database of the
system.
Implementati 13 Some developed information

on of systems already are not yet being
Information utilized due to lack of
Systems implementation plan
ITDI developed various information June 22, 2020: OPEN

To ensure optimum May 22, 2020:
systems such as R&D Project utilization of information
Monitoring System (RDPMS), Given the approved Submit evidence on the
systems, create project
Equipment Inventory System, budget for ICT this implementation of
management plan for
Document Tracking System, Supplies FY2020, PMISDMIS existing information
every system
Monitoring System, and Document was able to hire 6 COS systems (e.g., RDPMS,
development project
Tracking System. However, the staff. One of them was Equipment Inventory
that integrates
aforementioned systems are not yet assigned to document System, Document
Communication Plan,
being fully utilized. existing information Tracking System),
Risk Management
system while the others including updates on
Plan, Business
were tasked to develop users acceptance
Continuity Plan, and
new information testing and training
It was mentioned during the Audit Transition Plan;
systems following the and a project
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Team’s interview that MIS Section are documentation and management plan for
required by PMISD Chief to come-up development process these systems
with the following documents for every Validate functionalities indicated in Item no. integrating plans for
information system developed to of the systems with 12. communication, risk
ensure its successful implementation: system owners / end management and
users through User business continuity and
● Communication Plan Acceptance Testing transition.
(UAT);
● Risk Management Plan
● BCP
Roll-out the developed
● Transition Plan information systems
according to the project
During the time of audit, the MIS development plan to
Section has not prepared the maximize the benefits
aforementioned documents given the of its systems; and
inadequate number of staff.
Conduct appropriate
users training.
Additional requirements
that would be identified
should be properly
documented and
signed off by end
users.
Implementati 14 There is a need to enhance the R&D

on of
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Information Project Monitoring System (RDPMS)

Systems
During the time of audit, R&D Project Include the following May 22, 2020: June 22, 2020: OPEN
Monitoring System (RDPMS), which features in the RDPMS:
One of the priority Provide updates on the
ITDI adopted from FNRI, was being
● Key targets for FY2020 is development of the
enhanced by the MIS Section, to add
measures/indica the modification or re- said Project Monitoring
the following functionalities:
tors of results of development of Information System
● Provide access to PMISD who R&D projects RDPMS. The new (PMIS) and proof that
will monitor the projects; and (e.g., 6Ps, and system is now known the recommended
other indicators) as Project Monitoring features are now
● Allow project leaders to manage Information System included.
projects even during proposal ● Follow through (PMIS).
stage and update technical and plans, e.g., IP
financial accomplishments of protection, tech
the projects. transfer/commer
cialization plan
and information
dissemination.
Management 15 No assurance of proper preventive

of ICT maintenance for ICT equipment
equipment
and Network
Infrastructure The Institute should ensure that
June 22, 2020: OPEN
computers and its peripherals continue To be able to respond May 22, 2020:
to operate and provide a satisfactory to the various IT needs Auditors’ comments Provide copies of IPCR
level of performance. Physical security of the organization as were considered. of PMISD-MIS and
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over information technology assets big as ITDI, it should Preventive CMP highlighting the
should also be in place. create policy/guidelines Maintenance of ICT Preventive
on the regular conduct equipment is now part Maintenance of ICT
of computer preventive of the targets of equipment as part of
Currently, ITDI has a total of 460 maintenance. PMISD-MIS Staff and their target.
CMP in their IPCRs.
employees stationed in more than 11
buildings within the DOST Bicutan
Compound; hence, providing technical Ensure appropriate Provide a copy of the
support services is quite a challenging trainings are conducted Enhancing IT skills approved L&D Plan for
task. To assist the MIS Section, the for CMP members to capabilities of CMP will CMP members.
Management created a Computer equip them with also be part of HR
Maintenance Pool (CMP). Every adequate skills and development plan by
division has a designated CMP member knowledge on handling providing peer to peer
who is tasked to conduct computer computer maintenance training.
preventive maintenance and provide activities; and
first-level technical support for any
computer-related problem. However, it
was mentioned during the audit Establish lines of
interview that most CMP members are reporting and
not proficient in computer hardware and communication to allow
software troubleshooting. Moreover, regular monitoring of
they are not able to perform their computer preventive
designated roles as CMP members maintenance activities
regularly since their priorities are still in every division.
doing the R&D and other technical
functions.
Server Room 16 Some components to secure the

server room are not available
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The server room of the Institute is

located inside the MIS Section Room
and houses the servers of various For secured server May 22, 2020: June 22, 2020: OPEN
systems and databases. It contains room, ITDI may
two rack cabinets, servers, consider the following Auditors’ suggestions IAS agrees on the
measures: were considered, as recommendation of
uninterruptible power supply (UPS) follows: Engr. Bawagan to
apparatus, and other network ● Install a fire include an air
peripherals. It has three air extinguisher in 1). Purchase of fire conditioning unit with a
conditioning units being operated the server room extinguisher for MIS dehumidification
alternately. The following were Staff Room and Server
(e.g., function to control the
observed during the audit meeting: Room
Halocarbon, moisture in the room.
● No fire suppression units were Halo 1211, and 2). Sophisticated air-
available in case there is a fire CO2); conditioning system -
incident; ● Provide safe one of the priorities for Provide a copy of
distance FY2020 ICT Budget; approved PR for fire
● Air conditioners did not have
between air 3). Manual door lock of extinguisher and air-
automatic timers to switch on/off
conditioning conditioning system
based on the set schedule; and MIS Server room - will
units and be replaced so that and a copy of budget
● Air conditioner systems were servers or install only authorized key schedule for Digital
installed almost above the rack water leak holder has an access. access door.
servers which may result in sensors; Digital access door is
sparking and fire accidents in
case there is a water leakage. ● Invest in new included in the
programmable programmed budget for
air conditioner FY2021.
that has
temperature
control system; It is also highly
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and recommended to
include, aside from the
● Use biometrics temperature control, a
devices to dehumidifier type of air
provide conditioning system as
additional it is more appropriate
access control for the server room (per
for the server Engr. Apollo Bawagan
room. of CED).
ICT 17 Lack of computer equipment and

Requirement software to efficiently perform other
s technology transfer functions
It was mentioned during the audit

interview that some of the TSD staff Management should May 22, 2020: June 22, 2020: OPEN
have no computers being used. This is ensure that every
also evident in the current ISSP which Considered already. Provide current ratio of
employee shall be
showed that the Institute has not yet Purchase of employee to computer
provided with a
achieved 1:1 employee to computer engineering, statistical or percentage of staff
functional computer to
ratio. Moreover, some of the TSD staff and multimedia provided with
effectively and
were using old computers which were software for identified computers and identify
efficiently perform his
not capable of running product design divisions are included obsolete computers;
or her job.
and video editing software. The in FY2020 budget.
software being used for product design Software are bundled
(i.e., SOLIDWORKS) were only a 2015 with appropriate
version since funds were not available The MIS Section required computer Provide a copy of the
should identify obsolete hardware replacement plan with
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to renew licenses. computers (e.g., 3 yrs corresponding source

old and above) and of budget; and
make a corresponding
request for replacement
Furthermore, they expressed the need
through MITHI funding;
to have software for AVPs and Submit a proof that the
and include also in the
technology simulator software which identified software for
ISSP the needed video
they can use to promote and TSD are now included
editing and product
demonstrate their technologies to their in the FY2020 budget
design software of
clients more effectively. (e.g., approved PR,
TSD. PPMP).
Data Privacy 18 The Institute has not fully

implemented its compliance with
DPA, its IRR and issuances of the
National Privacy Commission (NPC)
Republic Act 10173 or the Data Privacy

Act of 2012 is a law that protects and
maintains the right of persons to To be compliant to May 22, 2020: June 22, 2020: OPEN
confidentiality by setting a legal list of
DPA, ITDI should
rules for public and private
ensure full Approval of the ITDI Submit a copy of the
organizations to regulate the collection,
implementation and DPA Manual is in approved Data Privacy
handling, and disposal of all personal adherence to the progress. MIS also Manual and provide
information. requirements of DPA conducted a data evidence that the
which include conduct privacy assessment, identified DPA
Organizations that handle user data are of privacy seminar and workshop. requirements are
required to assign data protection assessments, conduct conducted.
officer (DPO) as they are legally orientation on data
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responsible for keeping their customers’ privacy, and Part of the DPA Manual
data protected from third parties or any preparation of Privacy is the mechanism on
form of misuse, internally or externally. manual; and DPA monitoring and
response during
information breach.
The Institute harmonized their Establish a mechanism
implementation of Data Privacy Act for regular monitoring
(DPA) with Freedom of Information of the Institute’s
(FOI) Program by creating a Data compliance to DPA.
Privacy Act Group delegating decision
makers, data privacy officers and
request receiving officers. Employees
are prohibited to give out data to
external clients and only the designated
officer is allowed to release the
documents based on their prepared
checklist.
The Management already appointed a

DPO-Head and assigned respective
DPOs for R&D, Technical,
Administrative, and Budget and
Finance Services.
Upon validation during the Audit

Team’s interview, the following
activities were not yet being performed:
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● Perform Privacy Impact

Assessments relative to
activities, measures, projects,
programs, or systems;
● Conduct and cultivate

awareness on privacy and data
protection within the
organization; and
● Create a Privacy Manual
Research and Development Divisions
R&D 19 The R&D Roadmaps of the R&D

Roadmaps Divisions need to be fully developed
June 22, 2020:

The R&D Roadmap is a tool used to set
The ITDI should be a
the R&D direction of an organization as May 22, 2020: Awaiting submission of OPEN
pioneer
well as in developing its technological or lead revised R&D roadmaps
innovator in its sectoral The inputs, comments,
capabilities. Said roadmaps should be of CED, EBD and FPD
coverage. The R&D and suggestions from
the basis for planning and implementing incorporating the
divisions should come- the members of the
R&D programs/projects of the division. comments of the Audit
up with more strategic ITDI- IAC shall form
It must be “living” documents that are Team.
and purposive part of the ongoing
monitored and updated regularly to
roadmaps similar to the revision of the ITDI
reflect new data, technology advances,
Packaging Technology Strategic Plan. This
and changing business conditions.
Division which could includes the respective
share how they were roadmaps of the ITDI
able to develop their divisions. The ITDI-
The five (5) R&D roadmaps (Annex E) roadmap with the other IAC provided better
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of the R&D Divisions namely Chemicals divisions. There are insights in formulating
and Energy Division (CED),
also similar published the roadmaps for each
Environment and Biotechnology
R&D and technology division.
Division (EBD), Food Processing roadmaps from other
Division (FPD), Material Science prestigious R&D
Division (MSD) and Packaging
institutions which can
Technology Division (PTD) were be made as a
presented to the Audit Team. However, reference. Examples of
the following were noted in the CED, which are the
EBD and FPD roadmaps: roadmaps prepared by
ITRI which have similar
sectors being covered,
● The roadmaps look more like a hence, these can be
listing of the different R&D used as a benchmark.
projects being implemented by
each division.
The ITDI could also
● There were no separate develop a generic road
roadmaps for Environment and mapping process that
Biotechnology for the EBD and could be used as a
Chemicals and Energy for the guide by the different
CED. divisions.
● The roadmap is more of an S&T
investment portfolio rather than
an S&T direction for technology Each distinct section in
or R&D. the division should
come-up with a
● The incremental innovations are separate R&D
not identified that can add up to roadmap, i.e.
new technologies and products Chemicals and Energy
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in the future. for the CED, and

Environment and
● The roadmap did not highlight Biotechnology for EBD.
the opportunities for
breakthrough innovations to
accelerate the R&D process and
continuous engagement with Engagement of the
various stakeholders. stakeholders during the
roadmap development
process should be a
necessary step and
should be shown.
The roadmaps should

be translated into an
action plan that would
be used as a guide in
the pursuit of research
priorities and
technology
development of each
division.
The functions of the different

Functions of 20 sections of the Environment and
the Division Biotechnology Division (EBD) need
updating to include the latest fields
in research and development
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EBD has four (4) sections, namely:

industrial fermentation, microbial
treatment, waste management and
cleaner production. However, the
current sections of the EBD need Consider revisiting the June 22, 2020: OPEN
updating in terms of the requirements functions of the May 22, 2020:
and emerging trends in industrial Submit documented
different sections of the
biotechnology, i.e., antibiotics, At the moment, EBD is evidence/s as proof
EBD to include other
bioethanol, amino acids, enzymes, addressing actual that internal audit
emerging areas in R&D
vitamins, biobased plastics, needs of industries in recommendations are
of environment and
biolubricants, biosolvents, the field of already undertaken.
biotechnology.
biosurfactants, among others. environmental
management. As for
Based on the list of R&D Projects of biotechnology, the
EBD from CY 2012 - 2018 (Annex F), Re-assess past younger staff are
64% of the total number of projects are accomplishments to encouraged to
research for microbial treatment; 20% determine possible undertake emerging
for waste management and 16% for follow-through activities fields as their thesis.
industrial fermentation. and increase the utility Results of R&D
of R&D results. activities have been
disseminated and
accredited fabricators
are either in place or
under negotiations.
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Table 4: EBD Sections and

Functions
Section Functions
Industrial Develop, isolate and/or

Fermentati screen, and characterize
on microorganisms for
industrial applications;
develop and improve
technologies (physical,
thermal, chemical) using
microorganisms for the
production of chemicals,
alternative and/or
renewable fuels, materials,
food, feeds, additives,
enzymes, biocides,
solvents, etc. for local
industries
Microbial Develop, isolate and/or

Treatment screen and characterize
microorganisms for waste
treatment and other
environmental concerns;
develop and improve
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technologies using
microorganisms for waste
treatment; and develop
laboratory, bench and pilot
scale applications of
developed technologies for
the biological treatment of
industrial wastewater
Waste Develop and improve

Manageme technologies involving the
nt physical, chemical and
thermal processing of
industrial wastes; conduct
laboratory and bench scale
applications of developed
technologies for the non-
biological treatment of
industrial wastes.
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Cleaner Promote the integration of

Production cleaner production
principles in R&D,
manufacturing, and other
industry sectors; Provide
CP related services;
Conduct and/or facilitate
technology verification on
environmental technologies;
Develop CP and
environmental technology
verification (ETV)
databases
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Scientific 21 The number of publications of ITDI in

Paper international and ISI journals is too
Prepared/ low considering that it is the biggest
Published R&D institute with five (5) R&D
Divisions and with diverse industry
concerns
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Based on the report submitted by the

Planning and Management Information June 22, 2020:
ITDI should exert more May 22, 2020: OPEN
System Division (PMISD), the five (5)
R&D Divisions of ITDI effort to increase their Provide proof of
international publication The low output of
prepared/published a total of 78 implementation of the
to be able to establish publication is due to the
scientific papers in CY 2012-2018, an internal audit
their significance and longer publication
average of 11 per year and 2 per R&D recommendation as
expand their reach not process that takes
Division (Annex G). evidence of ITDI’s effort
just locally but globally. around 4-8 months and
some of the research to increase its
To be able to make international
valuable contributions activities undertaken
There were no targets and to scientific knowledge are applied in nature publication.
accomplishments recorded for CED for and create greater that may fall under
CY 2012 and 2017; EBD for CY 2012- impact in industry patents, copyrights and
2014; FPD for 2012, 2016-2017; MSD development, research, industrial design.
for 2012 and 2017 and PTD for 2012- and technology
2014 and 2017-2018 as presented in transfer;
Table 5 and 6 below. During the
PTD and FPD are
interview with the R&D Division’s staff,
already exerting efforts
from CY 2012-2018, they did not
in publishing research
prioritize the preparation of the ITDI should encourage
outputs in ISI journals.
publication after the completion of the researchers to publish
projects. Similarly, per PTD Division research outputs in ISI
Head, they were not able to increase refereed journal, as
the number of publications, patents, part of its commitment Innovative strategies
trademarks because they are business- to deliver 6Ps will be implemented to
oriented. However, due to the changes (publication) and increase publications.
in the performance indicators towards ITDI will create a
the 6Ps, they said that they are trying to publication committee
catch-up to be able to increase the Submit published to plan/support the
number of 6Ps of the PTD. papers to the publication of research
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appropriate Sectoral outputs and the

Council and NAST for provision of incentives.
possible publication There will be a
incentive grant. continual learning
process, knowledge
sharing, and a regular
weekly schedule for
writing research
outputs. Also important
is creating an
Table 5. No. of Scientific Paper infrastructure for online
targeted per year (2012-2018) information and
database subscription
through national library
Divisi Year Total
on networks. ITDI staff
are already encouraged
2012 2013 2014 2015 2016 2017 2018
to publish conference
papers in international
CED 0 2 5 4 4 0 1 16
journals.
EBD 0 0 0 2 1 1 1 5
FPD 0 1 1 10 0 0 1 13
MSD 0 5 5 5 3 0 5 23
PTD 0 0 0 2 1 0 0 3
Total 0 8 11 23 9 1 8 60
Table 6. No of Scientific Paper
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Prepared and Published (CY 2012-

2018)
Divisi Year Total

on
2012 2013 2014 2015 2016 2017 2018
CED 0 3 6 5 5 0 1 20
EBD 0 0 0 3 2 1 1 7
FPD 0 1 1 11 0 0 1 14
MSD 0 5 8 12 3 0 5 33
PTD 0 0 0 3 1 0 0 4
Total 0 9 15 34 11 1 8 78
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Safekeeping 22 Some of the project documents of

of Project the EBD are not kept in a safe
Reports location to protect it against damage
Rule 73 of the IRR of RA 9470 –

National Archives of the Philippines June 22, 2020: OPEN
EBD should adopt May 22, 2020:
(Storage and Protection of Public appropriate actions and
Records) states that the Records The document room of Provide photos of
measures for effective
Officer or any appropriate person EBD is currently up for newly renovated EBD
management and
responsible for maintaining an office or renovation. EBD shall rooms and evidence
safekeeping of records;
offices wherein public records are utilize NAS to ensure that project documents
created or kept shall establish such Consider digitizing safekeeping of were already digitized.
safeguards against damage, removal or project documents for electronic files (aside
loss. easy retrieval and for from regular back-up).
back-up purposes.
At the time of audit and during an Digitizing official

interview with the Document Custodian documents is a good
(DC) of the EBD who is tasked to recommendation and
safeguard and keep the documents of could be implemented
the Division, some of the project immediately.
documents are not available, because
according to her, it was damaged by
the water leaked from the ceiling of
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their room. Because of this incident, the

said room is not a safe place for the
storage of important EBD project
documents.
Monitoring 23 No regular monitoring and

and evaluation (M&E) conducted for the
Evaluation Energy Audit activities of the
Chemicals and Energy Division
(CED)
The CED's energy systems optimization

or the energy audit is defined as a CED should conduct May 22, 2020: June 22, 2020: OPEN
critical examination of an energy- monitoring and
consuming facility and a starting point evaluation of the The monitoring of Provide proof of
for implementation and control of potential energy energy audits implementation of the
energy efficiency and conservation savings of the conducted could be a internal audit
program for MSMEs. From CY 2012- part of a “Regional
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2018, CED has conducted a total of industries/institutions Program on Impact recommendation.

142 energy audits to various MSMEs audited to understand Assessment for
and public institutions / organizations which measures have MSMEs”.
and recorded a total potential savings been implemented to
of Php16M. Of the 273 energy audit carry out if the activities
activities (Annex H) of the CED from were over or
CY 1999-2018, only six (6) industries underestimated.
were monitored by the CED and the
DOST Regional Office (RO) No. III.
Also, CED should
consider targeting
The CED has also recorded a total of companies for the year
Php734,000 actual energy savings per which they wish to
year for the three (3) MSMEs namely; approach for audit to
Global Food Solutions Inc., Honda Cars create significant
Makati, Inc., and Allied Metals Inc. impact to the industries
during their monitoring activity in 2017. it serves.
Moreover, the DOST RO No. III has
identified the total additional potential
savings of Php785,000 for the three (3)
industries they monitored in 2015
namely: Wiggies Ice, Angel Famous
Gourmet Food and Asia Ceramics.
However, it was noted that the M&E of
the energy audit conducted is not a
regular activity of the CED. Also, per
interview with the OIC, Chief of the
CED, they do not conduct monitoring
and evaluation and impact assessment
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due to lack of funds of the division.
Technological Services Division
Technology 24 Need to institutionalize ITDI’s

Readiness technology readiness assessment
Assessment tools
OPEN
ITDI performs various modes of TSD to document the May 22, 2020: June 19, 2020:
technology readiness assessment of its process, results, and
lessons learned from TSD is drafting the Submit a copy, if
R&D output through the following:
different technology Guideline on the available already, of the
readiness assessment Conduct of Technology guidelines on the
activities of the Review and conduct of Guideline on
● The Technology Audit being Institute; and Assessment (TRA) for the Conduct of
conducted with the researchers. ITDI Generated Technology Review
Technologies/IPs that and Assessment (TRA)
● From CY 2016-2018, TSD involves 3 – stage for ITDI Generated
conducted Technology Come up with a process: technology Technologies/IPs; and
Readiness Audit with the framework and audit, market review
Industry and DTI for completed modalities that will and technology
projects by evaluating them in institutionalize all the readiness level (TRL)
terms of maturity level, potential technology readiness Submit also the
review. This guideline
technical or legal issues, assessment strategies documentation of the
intends to
advantages over similar and tools being used by results and lessons
institutionalize the
technology, IP position, market the Institute that can learned from different
framework in the
size, number of adopters, also be shared with technology readiness
conduct of TRA for
resident expert, among others. other RDIs. assessment activities.
proper delineation and
Using a scoring system, those complementation of
with higher scores are promoted functions / tasks among
for technology transfer.
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● They also tried Market project management

Validation (Quicklook) of their group, technology
technology with the prospective generators and
customers to get feedback and technology transfer
identify the gaps/grey areas officers of the institute.
which also reported to the
researchers.
At the time of the audit, TSD mentioned

to the Audit Team that they are still in
the process of testing different
technology assessment strategies and
trying to identify what would fit in with
the Institute considering the cost-
effectiveness or cost-efficiency of every
technology audit process.
There is a great value in

institutionalizing the different
technology readiness assessment tools
being used by the Institute.
Technology 25 Need to involve TSD staff during the

Readiness early stage of R&D project
Assessment
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TSD is expected to start promoting and

transferring technology once an R&D
Management should May 22, 2020: June 19, 2020: OPEN
project is already completed. However,
for a full grasp of the technology to be create a
TSD and PMISD are Submit documented
transferred, they expressed a policy/documented
closely collaborating to evidence/s as proof
willingness to be involved even during procedure that will
innovate the process of that internal audit
the early stages of the R&D project. allow TSD to conduct a
project review through recommendations are
This is to enable them to technology audit at the
TRC to incorporate already undertaken.
experience/learn about the technology, earliest possible time
before R&D project early stage and post
identify potential IPs, and define the
completion date to audits on technologies.
proper value proposition, especially that
most of the R&D outputs are prototypes enable them to identify
that need more clinical testing, market potential IPs and to
testing, and other validation activities. provide support in
This is a challenge for them since terms of setting of the
researchers prefer to have their R&D product cost,
activity audited only at the end of the technology fees, etc.
project. with a fuller knowledge
of the new technologies
to be promoted.
Technology 26 Some R&D projects have no

Readiness identified cooperators
Assessment
During the audit interview, there are

projects with no identified prospective ITDI Management to May 22, 2020: June 19, 2020: OPEN
cooperators. TSD mentioned that it is implement a policy that
It has been a Submit a documented
desirable if R&D projects already have all R&D funded projects requirement of ITDI to
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identified cooperators so that it would should have identified have an identified evidence for the
be easier for them to do cooperators who may cooperator for R&D following:
product/facility/market testing or be interested in sharing funded projects even at
validation and perform a realistic the R&D cost and/or the stage of proposal ● identification of
valuation of technology. For instance, adopt the research writing. This will be cooperators for
through a cooperator for a ceramic output in the future; strictly implemented or R&D funded
water filter, they were able to identify imposed to the R&D projects even at
more realistic spoilage, material, etc. group that implements the proposal
projects on product and writing stage
Establish linkages with and establish
process
cooperators who will linkages with
development/innovation
Some cooperators are willing to co-fund serve as said
. There are also
R&D projects especially if they will be consumers/markets of cooperators
research projects that
provided first “crack” in its utilization. the technologies; and
do not require
Identifying and linking with potential ● Conduct of
cooperators since
cooperators will ensure adoption of FGD/ market
these are implemented
research results and responsible use of Review the technology study/ validation
to create new testing
government resources; hence, it has to transfer process to and
services (e.g. specific
be clear who will adopt the R&D output. strike review/revise
a balance contaminants, technology
between the interests packaging design, etc.) transfer process
of the clients and the and provide scientific to consider both
researchers. data for policy the researchers
measures. TSD may and the clients.
provide support in the
conduct of FGD/
market study/ validation
before and/or during
implementation and
after project
completion. The
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technology transfer
process will be
reviewed as per
recommendation.
Technology 27 There is a need to study why some

Needs Technology Transfer Agreements
Assessment did not prosper
It was mentioned during the audit June 19, 2020:

interview that most of the OPEN
TSD should be able to May 22, 2020: Provide a copy of the
communications sent to the Institute are study what are the result of TRL review
requests to adopt various ITDI Result of TRL review
major causes of failure conducted in 2018 with
technologies. Upon receiving a request and assessment
in technology transfer DTI/ industry.
from the interested party, TSD initiates conducted in 2018 with
to target clients; and
a meeting with the Project Leader to DTI/ industry showed
develop an action plan
gather technical data and evaluate the that most of our
to minimize, if not
client’s request. Ideally, TSD meets technologies As mentioned in the
totally prevent, failed
with the client first to prevent R&D staff technology transfer considered for transfer audit findings, there
from accidentally disclosing confidential negotiations. have a technology were some client
information to the client. After readiness level 3-5. negotiations that did
assessing the needs of their client, TSD These technologies are not lead to technology
prepares an activity report which is merely prototypes that transfer. Provide an
subsequently provided to a concerned require further R&D assessment report on
R&D unit. and series of why such technology
test/validation i.e., field transfer negotiations
testing for market/user failed, and a developed
acceptability, clinical failed negotiation in the
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However, some clients cannot afford test, 24/7 performance future.

the terms and conditions set for test as in the case of
technology transfer, including equipment, among
technology fees. Ironically, the FOB others, with identified Also, submit updates
sometimes asked them to increase their cooperator. on prioritizing
technology fee. continuing R&D
activities to reach the
Researchers through readiness level of
There was a time also that after several PMISD shall consider technologies to TRL 6-
consultations and revisions of the prioritizing continuing 9.
Technology Commercialization Plan R&D activities that will
with a client, the technology transfer help increase the
project did not push through because of readiness level of
other requirements that made the technologies with TRL
clients no longer interested to continue 3-5 to TRL 6-9. This
with the undertaking. may apply to
technologies that
showed commercial
Moreover, there were developed opportunities.
technologies that are dependent on
other equipment that the client needs to
buy somewhere which becomes a
burden to them.
Technology 28 No policy in place on technology

Needs transfer to foreign country
Assessment
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ITDI also received various requests

from other countries to adopt their OPEN
Coordinate with the May 22, 2020: June 19, 2020:
technologies. However, as mentioned
during the audit interview, it was not DOST Management
The recommendation is Provide a copy of the
clear to them whether they are allowed (i.e., ASec for
considered. ITDI will minutes of the TWG
to transact with a foreign owned International
coordinate with ITCU meeting in 2019 on the
company. Cooperation, USec for
and USec. for R&D to revision of IRR of
R&D) to establish
establish RA10055.
policy/guidelines for
technology transfer policies/guidelines for
Nonetheless, they were able to transfer projects with other technology transfer
some technologies (e.g. acetator kit) to countries. projects with other Also, provide updates
other countries. To ensure due countries. on the establishment of
diligence when verifying information policies/ guidelines for
about the prospective adopter, they the technology transfer
course through the communication to projects with other
TSD chief as a member
Philippine embassy and corresponding countries, together with
of the TWG raised the
embassy of the requesting country. ITCU and USec for
inclusion of a policy on
tech transfer to a R&D.
foreign country during
one of the TWG
meetings in 2019 on
the revision of IRR of
RA10055. TAPI acting
as Secretariat to TWG,
in turn, proposed that
RDIs are to develop its
guidelines for this, just
the same as on policy
on the public good.
Currently, ITDI is
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seeking assistance
from TAPI on the
International
Application through
PATENT
COOPERATION
TREATY (PCT). This is
an avenue for the
commercialization of
Salt processing
equipment and gourmet
salts in Asian countries
once the patent is
granted.
Technology 29 Marketing tools and promotional

Packaging materials varied in terms of content
and
Promotion
TSD serves as the marketing arm of the
Institute in terms of promoting the Create a documented May 22, 2020: June 19, 2020: OPEN
technologies and services of RDIs. Its procedure on the
preparation of IEC TSD has a documented Submit a copy of the
primary purpose is to conduct
materials for marketing procedure for documented procedure
technology transfer in various modes.
and promotional tools information processing for production of IEC
Particularly, the Information and
of ITDI technologies. and production for IEC materials for marketing
Documentation Section (IDE) is in materials. For point of and promotional tools
charge of the promotion and social clarification, contents of of ITDI technologies.
marketing activities to ensure public IEC materials highly
awareness of ITDI's technologies and Ensure that
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establish engagement with the promotional materials depend on its purpose

industries. contain not only the or intended use and
product description but audience as to whom Provide a copy of
also the the information is being promotional material
advantages/benefits communicated. that also contains
Because of their externally funded advantages/benefits
projects, TSD is able to come up with and investment profile and investment profile
product portfolio including of the technology. of the technology.
brochures/flyers that provide various IEC materials simply
information about their technologies. produced out of
However, their IEC materials (e.g. TSD should have an meager GAA fund is
flyers) vary in terms of content. Some evaluation system on intended for awareness Reiterating the internal
materials contain product description the effectiveness of its of the general public. audit recommendation
only (e.g. Dual-drum Composter, Cacao promotional materials While content of to come up with the
Roaster), while others contain as a basis for promotional materials evaluation system on
additional information such as product continuous intended for identified the effectiveness of the
capacity (e.g. Water Retort, Freeze improvement. stakeholders/ industries promotional
Dryer, Spray Dryer), as part of marketing materials/activities
advantages/benefits (e.g. Oil Spill and technology transfer being conducted by the
Absorbent Made from Waste), and initiatives are more TSD for Institute's
financial viability (e.g. Nanoclay from comprehensive thus, developed
local bentonite ore). TSD seeks financial technologies.
support thru DOST-GIA
/ PCIEERD funding to
Furthermore, Technology Profile be able to produce
(technology brief, marketing plan, these.
business opportunities) and
Commercialization Plan for developed
technologies also vary in terms of Technology Profile, on
content. the other hand, is a
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document that
summarizes the distinct
features or
characteristics of the
technology. It answers
what problem/issue is
being addressed by the
technology, its intended
user, its competitive
advantages/ value
preposition among
others. This document
is an output of
technology audits being
conducted by TSD and
is internal to the
division and could
serve as reference in
preparing IEC
materials.
As to recommendation
on the evaluation
system on the
effectiveness of
promotional materials
as a basis for
continuous
improvement – IAS
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could help in engaging

STII/ TAPI being the
lead agencies in
communicating and
promoting DOST
technologies to lead
RDIs in terms of best
practices in monitoring
and evaluation of IEC
materials.
Technology 30 There was a need to increase the

Packaging number of experts on financial
and feasibility study/analysis for the
Promotion developed technologies
Currently, there are only three staff in

TSD who were trained to perform
financial feasibility study/analysis for Provide capacity May 22, 2020: June 19, 2020: OPEN
their developed technologies, which building in financial
involves computation of investment feasibility TAPI-funded support Provide activity reports
cost, number of years for payback, net study/analysis program to include regarding the
present value, time value of money, etc. specifically for TSD mentorship and training mentorship and training
Accordingly, they explained that it staff. on valuation and program being provided
requires a business economics or financial analysis is TTOs and researchers
financial management background to continuously being on technology valuation
be able to understand and perform the provided to capacitate and financial analysis.
financial analysis.
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TTOs and researchers.
Also, provide
evidence/s to prove
TSD is also that mentoring of
continuously researchers is being
conducting mentoring conducted by TSD, and
of researchers in this other capacity building
field of expertise to help activities.
the division generate
reliable data/info for the
computation of
technology fee/ product
costing and financial
analysis.
Royalties 31 Royalties are not being received

regularly by the Institute
ITDI provides its researchers with a

TSD to develop a May 22, 2020: June 19, 2020: OPEN
40% share of the royalties received
from their adoptors in accordance with mechanism that will
This has been Submit a copy of the
the conditions set in Administrative ensure regular
addressed through a revised policy/
Order No. 009, S. 2015. Moreover, as collection of royalties
revised policy/ guideline on granting
mentioned by TSD to the Audit Team, from its adoptors.
guideline on granting of incentives to
the 60% share intended for the Institute researchers and
incentives to
is reverted back to the Treasury which provide proof that
researchers which is
could have been used by the Institute to researchers are now
internal to the Institute.
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support R&D and Technology Transfer being provided with

activities. royalties regularly.
However, payment of royalties for every

technology/equipment generated by the
adoptor is sometimes delayed.
Sometimes, the adoptors encountered
problems in terms of payments from
their clients (e.g. LGUs) which is the
reason why their payments for the
royalties are delayed. Hence, instead of
getting the royalty per equipment sold,
the Institute gets the total amount due
only when they renew the contract of
the adoptor.
Intellectual 32 IPs and IPRs are not fully protected

Properties
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Confidential disclosure of IPs and/or Strictly follow the May 22, 2020: June 19, 2020: OPEN
potential IPRs to the head of the provisions in R.A. No.
funding agency within 30 days from the 10055 and its IRR and Noted as this issue has Provide proof that
date of confidential disclosure by the Joint DOST-IPO been given emphasis confidential disclosure
researcher to the Institute is not being Administrative Order by the Technical to IPs and/or potential
observed. No. 02-2010 with Review Committee IPRs to the head of the
regard to confidential (TRC) during funding agency is now
disclosure of IPs and/or scheduled project being undertaken.
potential IPRs to the reviews with concerned
head of funding agency R&D group.
within the specified
timeframe to avoid loss
of rights to IPs.
Monitoring 33 No documented procedure on the

and conduct of M&E and impact
Evaluation assessment
TSD conducts site visits during Management to May 22, 2020: June 19, 2020: OPEN
construction/fabrication of their establish documented
procedures / guidelines Post monitoring and Submit a copy of
technology by the adoptors as a means
on M&E of transferred impact assessment documented procedure/
to monitor and evaluate their
technologies to identify activities on tech guidelines to be used
technology transfer. A case in point is
the responsible transfer undertaking by EBD and TSD on
when their Engineering Services
person/unit for the are being put in place the conduct of M&E
Section checks if the fabricated
conduct of M&E and to start with EBD and and impact assessment
Bioreactor Intensifier equipment is
assessment on the TSD collaboration for of the Bioreactor
according to the plans/specs. the transfer initiatives and other technologies
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following: on Bioreactor commercialized by

technology. the Institute.
However, after the technology has been - improvement
transferred, they do not conduct in
monitoring and evaluation and impact productivity
assessment. This has been confirmed While TSD training Also, provide a copy of
by their response during the audit - increased in group have developed the monitoring/survey
interview and as indicated in the income monitoring/ survey tools tool developed by the
internal control questionnaire (ICQ) of for impact assessment training group for
- generated of various trainings impact assessment of
IAS. Moreover, they are unsure if they employment conducted. various trainings
should be the ones to conduct the M&E
considering that they are the ones who conducted.
- impact in the
facilitate the technology transfer. They community
think that a separate unit should be
responsible for M&E and impact - recommenda
assessment. tions for
improvement
- best
practices
Ensure that impact

assessment about 3 to
5 years after the
completion of terms of
MOA shall be
conducted; and
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We recommend TSD to
benchmark the M&E
process being
implemented by
FPRDI.
Financial and Administrative Management
Submission 34 Late submission of the Report of the

of RPCPPE Physical Count of Property, Plant
and Equipment (RPCPPE)
Chapter 10, Section 38 of Government

Accounting Manual (GAM) Volume 1 Before the conduct of May 22, 2020: June 19, 2020: OPEN
states that the entity shall have a physical count,
periodic physical count of Property, ITDI has already Submit the physical
separate PPE from
Plant and Equipment (PPE), which shall created the Inventory count guidelines
Semi-Expendable
be done annually and presented on the Committee by virtue of together with the
items; then, assign
RPCPPE as of December 31 of each Special Order. The Special Order issued
property tags and
year. This shall be submitted to the members had assisted for the purpose.
stickers only to PPEs
Auditor concerned not later than and report to the PPMS staff in the
January 31 of the following year. RPCPPE while the inventory every year.
Equipment found at station and losses semi-expendables are Also, provide a copy of
discovered during the physical count reflected in RPCSI; the 2020-2021 Training
shall be reported to the Accounting Comply with the Will include in the Program and copy of
Division/Unit for proper RPCPPE format training program for the request letter and
accounting/recording. provided in Appendix the reply of DOST-CO
2020-2021
73 of GAM Volume; on the Institute request
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to adopt the Property

Management System.
To comply with this requirement, they Develop physical count ITDI had requested the
have created an Inventory Committee, guidelines to include Property Management
through ITDI Special Order No. 078, creation of Inventory System to the DOST-
Series of 2019 (Annex I), which is Committee with clear CO, but did not receive
assigned to assist the Institute in functions and positive reply on the
conducting physical count of all PPEs responsibilities, matter.
and Semi-expendable items owned by processes, procedures
ITDI. Schedules on the conduct of and
activities are provided by the Property frequency/schedule of
and Procurement Management Section conducting physical
to the Committee. However, although count, and the
schedules and members of the preparation and
Committee are set, the Section is still submission of reports
challenged in the preparation of such as RPCPPE,
RPCPPE because of its limited RPCI and the book of
personnel and postponement of some accounts;
physical count schedules. Property tags
and stickers are provided not only to
the PPE items as accounted in the
Capacitate the Property
books but also to the Semi-expendable
and Procurement
items that are considered as inventories
Officers by sending
and booked as expense when issued.
them to training on
GAM, particularly on
the forms and formats
During the interview at the Property and required in report
Procurement Section, they mentioned preparation;
that all equipment, including those that
are valued P15,000 and below and
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accounted as semi-expendable items, For monitoring

were provided with property tags or purposes, the Property
stickers which takes time during their Management System
physical count. Although putting developed by the ITD
property tags and stickers for semi- of the DOST-CO may
expendable items creates an easier be used. The said
monitoring mechanism for the Agency, information system can
this does not compensate for the late provide a complete and
conduct of physical count and late reliable information
submission of RPCPPEs to the system of Agency’s
concerned oversight agency. Although PPEs, aid Property
the RPCI format in GAM provided a Officers in managing
column for “Stock Number”, it does not PPE records, make
require that property stickers/tags be available to the general
attached to the semi-expendable items. users their respective
Stock numbers can be accessed accountabilities,
through the monitoring tracker (excel generate required
format) maintained by the Section. reports as needed; and
provide security and
backup storage of PPE
records.
Table 7: Submission of PRCPPEs
Year Date of Submission
2012 April 2, 2013
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2013 March 12, 2014
2014 To be retrieved from

COA
2015 May 17, 2019
2016 March 10, 2017
2017 February 1, 2018
2018 May 23, 2019
As revealed during the interview,

personnel from the Property and
Procurement Section admitted that they
failed to meet the deadline in submitting
the RPCPPE. They only have one (1)
staff, Administrative Officer III, who is
fully assigned for the functions of
Property Management, Inventory and
Disposal, and assisted by the Section
Chief. This is due to the two unfilled
positions of the Property and
Procurement Section. Currently, only
one personnel and the Section Head
are monitoring and conducting activities
concerning property administration and
management.
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Also, Appendix 73 of GAM Volume II

provides the specified format for
PRCPPE. As mentioned in the
instructions of filling-up the form, it shall
be certified correct by the Inventory
Committee Chair and Members,
approved by the Head of Agency/Entity
or his/her Authorized Representative,
and verified by the COA
Representative. Based on the copies of
PRCPPEs provided, these were only
signed by three (3) ITDI personnel:
PPS staff who acted as the preparer,
noted by the Section Chief and
approved by the Deputy Director.
These were not signed by the Inventory
Committee and a representative from
COA.
Physical 35 Property distributed to Regional

Count of offices as part of the OneLab project
PPEs were not physically counted
GAM Volume 1 and PD 1445 require

the periodic conduct of physical count Organize a meeting June 19, 2020: OPEN
of PPEs. Furthermore, to support the May 22, 2020:
with the Regional
agencies budgetary requests for Capital Submit proof that
Directors, in The project leader may
Outlay, particularly the PPEs meetings and
coordination with the
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component, reiterates the need to OUSec for ROs and consider IA’s coordination with DOST
conduct physical count on all PPES discuss the possible recommendation. Regional Offices and
owned and managed by the offices. transfer of the PPEs; the OUSec for ROs are
and conducted.
However, based on the Audit Team’s

interview with the personnel of the For the funding Also, submit copies of
Property and Procurement requirement, develop a copies of LIBs to prove
Management Section, the Inventory -do-
reliable estimate of that traveling expenses
Committee was not able to physically expenses to be of personnel who will
count the PPEs distributed to the DOST incurred in the conduct conduct physical count
Regional Offices for their Food of physical count and are already included.
Innovation Centers (FICs), thus
include it in the
creating doubt as to the integrity of the
project’s LIB.
inventory report. They also mentioned
that this is due to the limited funding of
travelling and other related expenses
entailed in the conduct of the activity
and the schedules of the Inventory
Committee. Although these PPEs were
reported in their RPCPPEs, the
responsibility of conducting physical
counts and supervision was left with the
concerned personnel from the DOST
Regional Offices.
Insurance 36 Inadequate Insurance Coverage for

Coverage ITDI buildings and its components
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Consider to upgrade May 22, 2020: June 19,2020: OPEN

As specified in Section 2 of Republic
Act No. 656, otherwise known as the the insurance coverage Submit a copy of the
Property Insurance Law, the Property to include/add Earthquake coverage is
included already in2019 GSIS Insurance
Insurance Fund was established in earthquake in order to Policy and proof that
order to indemnify or compensate the protect the interest of GSIS insurance in
2019. the insurance coverage
Government for any damage to, or loss the government against for earthquakes are
of, its properties due to fire, earthquake, loss or damage caused already incorporated in
storms and other casualties. by insurable risks and the Budget Proposal,
other perils due to Please, refer to the instead of the prior
earthquakes. Budget Section. years’ action to trade
Furthermore, Section 5 of the same RA the typhoon and floods
mentioned that every government, coverage to
except a municipal government below Instead of trading the earthquake.
first class, is hereby required to insure insurance coverage for
its properties, with the fund against any floods to typhoons,
insurable risk and pay the premiums propose to include in
thereon, which, however, shall not the annual budget the
exceed the premiums charged by amount necessary to
private insurance companies. cover the increase in
premium relative to the
insurance upgrade.
In the same manner, Section 11

expressed that each government shall
include in its annual appropriation the
amount necessary to cover premiums
for the insurance of its properties during
each fiscal period.
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During the audit, the Property and

Procurement Management Section
submitted a copy of the GSIS Insurance
Policy No. FI-GSISHO-0031145
covering the period November 15, 2018
to November 15, 2019. Based on the
report, properties insured includes
buildings and components amounting to
P54,033,931.71 and P33,138,762.
(Annex J)
As revealed by the Head of the

Property and Procurement Section, the
same observation was already raised to
them by the Commission on Audit
(COA). However, applying the principle
of cost and benefit, they have proposed
to replace the insurance coverage for
“floods” to earthquakes as the vicinity of
ITDI buildings are not that prone to
floods and landslides. Based on the
GSIS Insurance Policy availed by the
Institute, this was not considered when
they renewed their insurance premiums
in 2017 and 2018.
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The inadequacy of insurance coverage

of building and other real properties
does not only deprive ITDI of adequate
protection against any damage or loss
but also expose the Agency to risk of
non-indemnification to unnecessary
losses in the event of damage or loss
caused by calamities such as
earthquakes, storms, floods and other
causes beyond the insurance limit.
Personnel 37 Insufficient Staffing of Property and

Requirement Procurement Personnel
National Budget Circular No. 2015-558

Hire immediately to fill May 22, 2020: June 19, 2020: OPEN
dated June 4, 2015 shows the
guidelines in the organization and up the 2 vacant
Filling up of 2 vacant Submit the status of the
staffing of Procurement Units which positions and
positions is still in actions taken on the
requires the strengthening of the capacitate the Finance
process, however one two (2) vacant plantilla
staffing of Procurement Units of and Administrative
(1) contract of service positions of the Section
agencies and provide adequate support Personnel by sending
augments the and copy of the
to the Bids and Awards Committee them to training to be
manpower requirement contract of the newly
(BAC). updated on the laws,
of PPMS. hired COS personnel.
rules and regulations of
various oversight
bodies. Aside from
As prescribed by the said Circular the trainings and Will include in the Also, submit proof/
organizational level of the procurement orientation on RA 9184 training program for documented evidence
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unit shall be as follows: and its IRR and other 2020 – 2021. to prove that training on
related rules on RA 9184 is already
property and incorporated in the 220-
procurement, they 2021 Training Program.
Table 8: Organization Level of the
should also be sent to
Procurement Unit
trainings on
Government
Annual Depart Bureau- GOCC/
Procure ment- level GFI Accounting Manual
ment level Agency (GAM), Laws and
Budget Agency Rules on Government
Expenditures (LARGE),
P5 Service Division Departm Cash Management and
billion ent
Control Systems
and
(CMCS) and other
above
related trainings and
Less Division Section Division capability building
than P5 activities.
billion
In the case of ITDI, Property and

Procurement functions are lodged in
one (1) section known as the Property
and Procurement Management Section
under the Administrative Division.
Currently, as shown in their
organizational Chart, there are seven
(7) plantilla positions assigned to the
Section, two (2) of which are unfilled as
of May 2019 (Annex K). Of the five (5)
filled up positions, three (3) are
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assigned to Procurement Management,

one (1) in Property Management and
one (1) section Chief who supervises
the two sub-sections.
Table 9: Area of Assignment of the

Property and Procurement
Management Personnel
Name Position/S Area of

G Assignmen
t
Rocheel Administrati Section

Lee C. ve Officer Chief
Deluta V/18
Emerilyn A. Administrati Property

Lava ve Officer Manageme
III/14 nt
Jovielyn R. Administrati Procureme

Pareja ve Officer nt
I/10 Manageme
nt
Vacant Administrati Property

ve Assistant Manageme
II/8 nt
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Roda Mae Administrati Procureme

O. ve Aide VI/6 nt
Urmeneta Manageme
nt
Vacant Administrati Property

ve Aide VI/6 Manageme
nt
Lorena R. Administrati Procureme

Cacabelos ve Aide IV/4 nt
Manageme
nt
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Unreconciled Balance of PPE

Account 38 Accounts
Reconciliatio Assign 2 regular staff, 1
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n from each Unit, who will

be responsible for
Philippine Public Sector Accounting May 22, 2020: June 19, 2020: OPEN
reviewing, adjusting
Standards No. 17 prescribes the
and recording for
accounting treatment for property, Assigned personnel: Submit copy of the
reconciling items.
plant, and equipment (PPE) so that Ms. E. Lava - PPMS Special Order
Schedule a regular
users of financial statements can and Ms. V. Natanuan - designating the said
reconciliation (e.g.,
discern information about an entity’s AS personnel to facilitate
once a week).
investment in its PPE and the changes the conduct of
Document the
in such investment. In the same reconciliation of
agreements and
manner, a periodic physical count of Property and
identified items for
PPE shall be done annually and Accounting Records.
reconciliation and
presented in the RPCPPE. Also, provide a copy of
before the start of the
their targets and
succeeding meetings,
timelines on when
check the actions
reconciliation shall be
During the audit, the Audit Team taken.
made and
requested for receiving copies of the
accomplished .
RPCPPE submitted by the Agency from
years 2012-2018. Also, they disclosed
that record’s reconciliation between the
Accounting and Property and
Procurement Sections were scheduled
to address the variances in their
records, However, after comparing the
balances presented against those
recorded in the Financial Statements, it
was noted that there are material
variances in the total amounts as
presented below.
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Table 10: Comparison of PPE

Balances per RPCPPE and
Accounting Books
Year PPE Amounts Varianc

e
Per Per
RPCPP Accoun
E ting
2012 699,546, 720,118, (20,571,

698.58 616.00 917.42)
2013 771,978, 782,767, (10,789,

397.66 607.05 209.39)
2014 To 831,700, n/a

retrieve 138.02
from
COA
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2015 910,313, 912,516, (2,202,8

550.94 42773 76.79)
2016 962,133, 988,912, (26,778,

978.88 436.84 457.96)
2017 1,168,59 1,222,03 (53,446,

0,144.64 6,966.35 821.71)
2018 1,417,29 1,688,68 (271,456

9,885.45 5,932.95 ,047.50)
GAM Formats 39 Late adoption of formats required by
GAM due to Property and
Procurement Unit’s non-involvement
to trainings
Government Accounting Manual (GAM) Capacitate the Finance May 22, 2020: June 19, 2020: OPEN
Volume 2 shows the Accounting Books, and Administrative
Registries, Records, Forms and Personnel through Will include in the Provide proof/
Reports. Appendixes of the Manual that sending them to training program for
are related to the forms used by training to be updated 2020 -2021 documented evidence
Property and Procurement Section on the laws, rules and showing that this is
include the following: regulations from already incorporated in
various oversight the CY 2020-2021
1. Supplies Ledger Card; Training Program.
bodies. Aside from
2. Stock Card; trainings and
orientation on RA 9184
3. Inventory Custodian Slip, and its IRR and other Also, submit evidence
Purchase Request; related rules on that the Property
property and Section is being
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4. Purchase Order; procurement, they strengthened, maybe

should also be sent to through an excerpt of
5. Inspection and Acceptance trainings on minutes of the
Report; Government meetings conducted
Accounting Manual, with the Management
6. Requisition and Issue Slip;
Laws and Rules on discussing the
7. Report of Supplies and Government proposed additional
Materials issued; Expenditures (LARGE), personnel for the
Cash Management and Section.
8. Waste Materials Report; Control Systems
(CMCS) and other
9. Report on the Physical Count of
related trainings and
Inventories;
capability building
10. Report of Accountability for activities.
Accountable Forms;
11. Property Card;

Strengthen the
12. Property, Plant, and Equipment Property Section by
Ledger Card; requesting additional
positions from DBM-
13. Property Acknowledgement OPCCB using the DBM
Receipt; and National Budget
Circular No. 2015-558
14. Report on the Physical Count of
dated June 4, 2015 as
Property, Plant and Equipment
legal basis.
As mentioned during the interview at To be discussed with

Request positions in the Top Management.
the Property and Procurement Unit,
the professional
they only adopted the GAM prescribed
category preferably
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forms and format in March 2018. These with knowledge in

are not compliant with GAM prescribed Information Technology
forms from the implementation of GAM to handle the
from 2015 until February 2018. procurement system
database. The
additional positions will
be useful in
Since the Property and Procurement
undertaking the early
Section has not adopted the new
procurement activities
formats and was not called to
and implementation of
participate in GAM and COA-related
the budget shift from
training, they were not able to
the two-year obligation-
immediately adopt new forms aligned
based appropriations to
with the implementation of GAM.
the annual cash-based
system, from 2019
onwards, as prescribed
FAD personnel are equipped with in the DBM Circular
training administered by COA and other Letter No. 2019-8 dated
oversight agencies. However, July 30, 2018.
personnel from the Property and
Procurement Sections were not
involved during the Government
Accounting Manual (GAM) Training
organized by the DOST-Central Office
in May 2016.
Compliance 40 Report format of Order of Payment

to GAM as specified in GAM is not complied
with
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The Cash Unit should May 22, 2020: June 19, 2020: OPEN
ensure that all
Government Accounting Manual collections are The Cash Unit will Submit sample
Volumes 1 and 2 explained that Order supported by Order of ensure that all national collections, other than
of Payment (OP) should be prepared by Payment, regardless of daily collections of the those arising from
the Accounting Section based on a Bill the nature of collection. institute are supported providing technical
and should be prepared for each payor. The OP should be pre- by an Order of services, with complete
Furthermore, Section 40, Chapter 5 of numbered, monitored Payment (compliant supporting documents.
the Government Accounting Manual and originated from the with Appendix 28 of
(GAM) Volume 1 specifies the areas of Accounting Unit. GAM) through the
responsibility and the detailed Accounting Unit. Also, provide proof
procedures for collections and deposits /documented evidence
made through the Collecting Officer. to prove that this is
The Manual stated that the Capacitate all the
Finance and Will include in the already incorporated in
Cash/Treasury Unit Collecting Officer
Administrative training program and the CY 2020-2021
daily receives cash/check from payor Training Program.
Personnel by sending seminars for 2020
representing collection based on the
them to trainings and -2021.
OP prepared by the Accounting
Division/Unit. For reference, Appendix seminars for them to be
28 of GAM Volume II shows the format knowledgeable and
and instruction in filling-up the OP form. updated on the relevant
laws, rules and
regulations issued by
various oversight
During the interview with the Financial bodies such as the
Management and Administrative Commission on Audit
Divisions, it was explained that the (COA), Department of
preparation of OP is assigned to the Budget and
Accounting Unit. Refunds from cash Management (DBM),
advances are also supported by OPs. Civil Service
However, services and collections from Commission (CSC),
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the OneLab Project are done solely by Bureau of Treasury

the personnel assigned to the project (BTr), Department of
through the use of DOST Unified Science and
Laboratory Information Management Technology (DOST)
System (ULIMS). The said system can and other offices. Also,
generate an Order of Payment that will coordinate with the
be issued to the customers before DOST-CO Financial
making payments to the Cashier Unit. and Management
Service to include
Cash/Treasury Unit's
Personnel in their
At the time of audit, the Cashier Unit
Annual Consultative
provided sample OPs and Technical
Assembly of
Service Request Forms as attached in
Administrative and
Annexes L1 to L4. Upon review of the
Finance Officers
documents submitted, the Auditors
(ADAFO) for them to
noted that the format used is not
share issues and
compliant with Appendix 28 of GAM
concerns encountered
Volume II as attached in Annex M.
in their Units.
Also, it was observed that the services

offered by the technical divisions of the
Institute, including ADMATEL, are
supported by Request for Technical
Services. For the Institutes’ collection
from the services of MSD, EBD, CED,
PTD, FPD and TSD, request and OP
are required by the Cashier unit before
processing payments and issuance of
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official receipts (OR). However, those

collections from STD, NMD and
ADMATEL were not supported by OPs
and considered the request enough in
processing payments and issuance of
OR.
Since collections from other division did

not pass through the Accounting Unit
and were not issued with OPs, they
were not able to monitor those
collections and match with the Report
of Collections and Deposits submitted
by the Cashier Unit. Aligned with the
billing statement or the request for
technical services, the OP should serve
as the Cashier unit’s basis on what is
the nature of the collection, how much
should be collected and will be helpful
in determining the account to where it
will be deposited.
Compliance 41 Report of Collections and Deposits

to GAM (RCD) is not submitted to the Budget
Unit
The Cash Unit should

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Appendix No. 26 of GAM Volume II comply with the number May 22, 2020: June 19, 2020: OPEN
(Summary of Forms and Instructions) of RCDs required by
explains that Collecting Officer/Cashier GAM; ensure that Four (4) copies of the Submit
shall prepare RCD to record the Budget Unit is also Report of Collections proof/documented
collections and deposits to an informed on the and Deposits shall be evidence to prove that
Authorized Government Depository collections of the prepared by the four (4) copies of the
Bank (AGDB) as of a specific date and Institute because these responsible unit and a RCD are already
shall be maintained by fund cluster. are necessary incopy will then be prepared. Submit the
Furthermore, GAM also requires that estimating revenues submitted to and receiving copies duly
this report shall be prepared in four (4) and serves as the received by the Budget received by the
copies daily to be distributed as follows: Unit’s input in the unit for consolidation concerned
preparation of RROR and filing. A separate sections/units. Also,
● Original- Cash Treasury folder shall be provide proof that a
Unit/Collecting Officer’s file, . maintained by the separate folder for
together with the triplicate copy Budget Section for RCDs is already
of the ORs and validated The Cash Unit should ease of monitoring and maintained in the
deposit Slips (DSs) strictly comply with the effective filling. Budget Sections.
procedures illustrated
● Copy 2- COA Auditor through in GAM and start the
the Accounting Division/Unit, practice providing
together with the duplicate copy copies of RCD to The Cash Unit will
of the ORs and validated DSs Budget Unit as basis strictly comply with the
for recording in the number of RCDs and
● Copy 3- Accounting Unit RROR. will distribute said
concerned to be attached to the reports to specified
copy of the Journal Entry receiving units
Voucher (JEV) including the Budget
Unit as required by
● Copy 4- Budget Unit GAM.
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Based on the Audit Teams interview

with the collection Officer, she
disclosed that only three (3) copies of
the report are prepared and were
distributed to the Accounting Unit, COA
which is sent through the Accounting
unit and the copy of the Cashier Unit.
Since then, said the reports were not
provided to the Budget Unit.
Compliance 42 GAM is not fully implemented due to

to GAM non-preparation of Registry of
Revenue and Other Receipts (RROR)
and the disbursement portion of
Registry of Allotment, Obligation and
Disbursements (RAOD)
Section 6, Chapter 3 (Budget

Execution, Monitoring and Reporting) of
GAM Volume 1 requires that the June 19, 2020: OPEN
Registries of Revenue and Other The Collection and May 22, 2020:
Receipts (RROR) shall be maintained Submit the copy of the
Disbursement Unit
by the Budget Division/Unit of NGAs to Registries of Revenue latest RROR and proof
should strictly comply
monitor the revenue and other receipts and Other Receipts will that a different folder
with the procedures
estimated/budgeted, collected and be complied upon the for the said report is
illustrated in GAM and
remitted/deposited. submission of the already maintained by
start the practice
providing copies of required reportorial the Budget Section.
documents such as the Also, submit the
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RCD to Budget Unit as Report of Collections updated copy of the

basis for recording in and Deposits (RDC). RAOD, completely
Furthermore, Section 10 of the same the RROR. The Budget Section will filled-up up to the
Chapter and Manual provides that the maintain a different disbursement portion.
Registries of Allotments, Obligations folder pertaining to said
and Disbursements (RAOD) shall be reports in coordination
maintained by the Budget Division/Unit The Budget Unit, at the with the accounting
of agencies to record allotments, same time, should fully section. Moreover, submit
obligations and disbursement. It shall implement the areas of copies of the RCDs
show the allotments received for the responsibility provided duly receipt by the
year, obligations incurred against the in GAM particularly on concerned
corresponding allotment and the actual maintaining RROR. Regarding the Sections/Units.
disbursements made. Although the Unit is not Registries of Allotment,
responsible in Obligation and
preparing the Financial Disbursements
Accountability Report (RAOD), currently, the
During the Audit Teams interview at the No. 5 or the Quarterly Budget Section is
Budget Unit, it was disclosed that they Report of Revenue and maintaining RAO thru
are using an information system called Other Receipts, RROR “foxpro” system which
“Fox Pro” for report preparation and will serve as helpful is not linked with
generation, particularly those regularly basis in providing eNGAS being the
requested by the oversight bodies such estimated/budgeted reason for not having a
as the Commission on Audit (COA) and revenues as well as system generated
the Department of Budget and internal control in report of RAOD.
Management (DBM).Among the reports checking the amount of However, upon full
that can be generated through the revenues recorded and implementation of the
system are the Financial Accountability reported by the eBudget system of
Reports (FARs), Financial Performance Accounting Unit. COA, which will then be
Reports (FPR), Statement of Allotment, linked with eNGAS,
Obligation and Balances, Financial generation and
Report of Operations, various registries maintenance of RAOD
Budget, Collection and
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and related reports. Disbursement and will be more efficient

Accounting Sections and user-friendly. For
should strictly comply the meantime, while the
with the responsibility operation of eBudget
However, instead of preparing for the
areas presented in system is still on
RAOD as required by GAM, Budget
GAM especially in the process, preparation of
Unit is only preparing and maintaining
preparation of reports RAOD will be
the Registry of Allotment and Obligation
and registries (RROR accomplished by
and let the Accounting Unit monitor the
and RAOD). The manually filling up the
Disbursement portion, considering that
RAOD will serve as a respective boxes in the
they are more knowledgeable on the
check and balance with lower portion of
actual disbursements. Because of
the records maintained Obligation Request and
cutting the process to up to obligations
by the Accounting Unit Status (ORS) report,
only, it defeats the purpose of the
and will be helpful to which pertains to the
registry which is to prevent incurrence
fast track the requirements of RAOD.
of obligations in excess of allotment
reconciliation in case
and overdraft in disbursements against
there are variances on
obligations incurred.
the records.
The Cash Unit will
strictly comply with the
procedures illustrated
Also, the Budget Unit is not maintaining
in GAM and will provide
RROR. Currently, the Financial
copies of RCD to
Accountability Report (FAR) No. 5 or
Budget Unit as basis of
the Quarterly Report of Revenues and
recording in the RROR.
Other Receipts are prepared based on
the RCDs. Since the 4th copy of RCDs
were not provided to the Budget Unit,
they have no reference in recording
revenues and other receipts and
updating the RROR. They have no
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basis on how and what amount to input

which lead them to not prepare the said
registry.
Non- 43 Delays in the implementation of

compliance infrastructure projects due to the
with IRR RA following:
9184
● Delay in the Approval and
Release of the 2019 Budget Compliance with the May 22, 2020: June 20, 2020: OPEN
● Limited number of bidders IRR RA 9184
particularly on the This is noted. Submit most recent
● Low bid proposals following: complete bidding
documents of
● Terminated contracts due to ● Procurement
With regard to the conducted procurement
poor implementation Planning
bidding process, BAC for goods and civil
● Detailed strictly complied RA works.
Engineering 9184
Design, TOR
Submit copy of the
● Preparation of latest Committees on
The ITDI will review the
Plans, Infrastructure (TWG),
roles and composition
Specifications procurement,
of the various
and Estimates. inspection and project
committees on
infrastructure (TWG), implementor (Project
● Procurement
procurement, Management Office)
Process
inspection as well as indicating their duties
(Bidding)
the project and responsibilities.
● Thorough
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evaluation of implementers to avoid

Bids (Balanced delays.
Bids) Submit sample Infra
project, project
● Project accomplishment report.
Implementation
● Project
Monitoring,
evaluations of
VO/CO, Time
Extensions and
● Delay payments
Inventory of 44 Non-submission of inventory of bank

Bank accounts and non-closure of inactive
Accounts accounts
In order to implement public financial

reforms, in compliance with the June 19, 2020: OPEN
Strict compliance with May 22, 2020:
Administration’s thrust to observe the DBM-DOF-COA
transparency and accountability, and to Joint Administrative This is noted. We will Submit
align the direction of the government Order No. 2012-01 on strictly comply with the proof/documented
instrumentalities in collectively pursuing its requirement of provisions of DBM- evidence to prove that
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the right path of governance, DBM- submitting complete list DOF-COA JC No. DBM-DOF-COA JC No.
DOF-COA Joint Administrative Order of existing bank 2012-01 and Sections 2012-01 and Sections
No. 2012-01 dated January 6, 2012 accounts; 10 & 11 of GAA. 10 and 11 of GAA are
requires the submission of a complete complied with.
list of existing bank accounts showing
the following: Upload and post on
1. Cash Account Title the agency’s official
website the necessary
2. Account Name information relating to
public funds deposited,
3. Account Number maintained and
invested for full public
4. Bank/Branch
disclosure and for the
5. Balance per Books purposes of
transparency in
6. Month/Year Account was compliance. Determine
opened the legal basis and
purpose of creating the
7. Purpose of Maintaining the
said bank accounts and
Account
send a request to the
8. Legal Basis for Account Permanent Committee,
Creation chaired by DOF with
DBM and COA, to
9. Remarks maintain the said
accounts. Otherwise,
coordinate with BTr for
At the same time, Section 10 of the the immediate closure
2018 General Appropriations Act of the dormant and
requires the reversion, closure and unauthorized bank
transfer the balances of special
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accounts, fiduciary or trust funds, accounts.

revolving funds and unauthorized
accounts if any of the following
instances is met:
1. When there is no legal basis for

its creation;
2. When their terms have expired;

or
3. When they are no longer

necessary for the attainment of
the purposes for which said
funds were established.
In addition, Section 11 of the 2018 GAA

prescribes all offices to post on their
respective official websites information
relating to public funds deposited,
maintained and invested by them with
any banking or financial institution
which shall include, but not limited to
the following:
1. Name of the baking or financial

institution/s where public funds
are deposited, maintained or
invested;
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2. Specific income or fund

sources;
3. Legal basis for depositing,

maintaining or investing said
income/fund source/s with the
bank/s or financial institution/s;
4. Allowable use/purposes of the

income or fund;
5. Monthly balances of each

account of fund; and
6. Such other pertinent information

as may be reasonably required
to be posted by the agency
concerned on its website.
Moreover, COA Circular No. 97-001

dated February 5, 1997 was issued to
provide Guidelines on the Proper
Disposition/Closure of Dormant Funds
and/or Accounts of National
Government Agencies. Item IV of the
same further provides that failure of the
officials/employees concerned to
comply with the requirements shall be
subjected to administrative disciplinary
action in accordance with Section 122,
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Chapter 3, Title III of P.D. 1445 and

Section 55, Chapter 10, Sub-Title I-B,
Book V of E.O. 292 series of 1987 of
the Revised Administrative Code of the
Philippines.
Currently, the Institute maintains six (6)

Banks Accounts, four (4) of which are
MDS Accounts while the remaining two
(2) are Current Account. Based on the
list of bank accounts submitted during
the audit (Annex N), two (2) of the
MDS Accounts were already inactive,
yet still not requested to be closed.
These are the MDS Account Number
2182-9004-20 which is used for the
release of funds and payment of
accounts payable and the MDS
Account Number 2182-9006-67 or the
ITDI Special Account.
Unfilled 45 Numerous unfilled plantilla positions

Plantilla
Positions
Based on the Rationalization Plan of Look into the hiring May 22, 2020: June 19, 2020: OPEN
ITDI dated February 5, 2010, there are mechanism in terms of
two hundred seventy-five (275) efficiency and Some vacant positions Submit the status of the
were filled-up by
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approved plantilla positions, excluding effectiveness and promotion therefore the unfilled plantilla
the ninety-four (94) positions deployed recommend measures same no. or few were positions as of June 30,
to Standards and Testing Division (50) to ensure the filling-up filled-up. 2020 and prepare
and National Metrology Division (44) of plantilla regular action / hiring plans of
which are not covered in the audit. Of positions before the Institute to
these 275 positions, twenty-eight (28) resorting to hiring non- immediately fill-up the
~ITDI is awaiting for the
are unfilled as of June 30, 2018. permanent personnel. said positions.
validation of
Consider coming-up
appointment by the
with a policy to
CSC so that the vacant
prioritize existing
Table 11: Distribution of Plantilla positions may be Also, submit the status
qualified non-
Positions per Division requested to be filled- of the appointments
permanent personnel in
up. that are still with CSC.
filling up vacant plantilla
positions in
Office/D No. of Plantilla Total consideration of the
ivision Positions DBM-CSC JC No. 1, s. ~On-going process of
2017; and filling up of key
Filled Unfilled positions
Office of 6 1 7
the Come-up with a hiring
Director
plan for the immediate
Finance 15 1 16 processing of the
and unfilled positions
Manage according to urgency
ment and completeness of
Division requirements.
Administ 19 5 24
rative
Division
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Food 35 3 38
Processi
ng
Division
Material 28 1 29
s
Science
Division
Chemic 30 6 36
als and
Energy
Division
Environ 35 5 40
ment
and
Biotech
nology
Division
Technol 48 2 50
ogical
Services
Division
Plannin 14 2 16
g and
Manage
ment
Informat
ion
Systems
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Division
Packagi 17 2 19
ng
Technol
ogy
Division
Total 247 28 275
Upon checking the Personal Services

Itemization and Plantilla of Personnel
(PSIPOP) submitted by the Human
Resource and Management Section as
of June 30, 2019, it was noted that out
of the 25 vacant positions, sixteen (16)
are key positions or those that are SG
18 and above. The details of these
unfilled positions, date these were
vacated and actions taken by the
Institute are shown in Annex O.
During the audit with the personnel

from HRMS, it was also disclosed that
five (5) of these unfilled positions are
still with the Civil Service Commission
(CSC) for validation. Once validated,
these will be requested by end-users
for the posting of Notice of Vacancies”.
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Moreover, the unfilled position in the

Administrative Division are crucial in
performing their functions considering
that the Top 3 positions (Chief
Administrative Officer, Supervising
Administrative Officer and
Administrative Officer V) were vacated
in 2018. Currently, the Administrative
Officer V assigned to the Records
Section and BAC is acting the OIC of
the Division.
However, per checking of the PSIPOP

submitted during the audit, it is noted
that some personnel are occupying the
same positions and are not promoted
for a long period of time. Considering
the list of unfilled plantilla positions,
they should have been considered as
next in rank personnel for those
positions.
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Table 9: ITDI Personnel Occupying

the same Position for a Long Period
of Time
Name Position Division Date of

Last
Promotio
n
Babaylan, AO V AD 07-19-
Lioba F. 1994
Bustamant AO IV FMD 09-12-
e, Aida M. 1995
Balais, Senior CED 02-01-
Wilfredo SRS 1994
A.
Ugat, SR CED 10-17-
Shiela Analyst 1988
Ruby H.
Esperanza SR CED 07-01-
, Ramon Assistant 1989
C.
Unciano, SRS II EBD 10-20-
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Noel M. 1995
Capule, SRS II EBD 03-16-
Mario 1994
Josefino
V.
Navarro, Senior MSD 01-01-
Ma. SRS 1984
Teresa V.
Samson, SRS II MSD 01-01-
Leonora 1984
E.
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EEOP 46 Non-disclosure of Equal

Principle Employment Opportunity Principle
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on MSP and SPMS
CSC Resolution Number 1800692 Sec Process the immediate May 22, 2020: June 19, 2020: OPEN
83 par. 2 states that, “There shall be no update and revision
EEOP has been Submit the updated
discrimination in the selection of current employee
drafted. It will be HR-related documents
employees on account of age, sex, manual and related
discussed among the such as Employee
sexual orientation, and gender identity, forms used in the HR to
members of the Manual and Notice of
include
civil status, disability, religion, ethnicity, the EEOP
Committee of Vacancies showing that
or political affiliation.” statement in
HRMPSB, HRDC, the EEOP is already
compliance with Sec 83
PRAISE and PMT. incorporated.
of the CSC 2017
Omnibus Rules on
During the audit, guidelines in hiring
Appointments and
permanent positions are presented.
Other Human EEOP statement for the Also, submit a copy of
However, upon checking the HR
Resources Actions Announcement of the Special/Office
employment manual and form, it is
(Revised 2018). Vacancy is already Order specifying to
noticed that there is no indication of the
being implemented. consider EEOP
Equal Employment Opportunity
statements.
Principle. Furthermore, it was observed
that the guidelines presented is not yet
updated version (2016), although they Special Order for the
mentioned that it is currently reviewed committees RMS
for revision. At the same time, they includes the function to
have explained that the EEOP is not yet consider EOP
incorporated due to their guidelines are statements.
still undertaking revision and this will be
considered in the revised version. The
Administrative Officer IV stated that the
principle already in effect as these are
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included in the Notice of Vacancies

they published and posted, although it
is not yet included in their manuals and
forms.
Coaching and 47 The Institute has not implemented

Mentoring the Coaching and Mentoring
The Civil Service Commission (CSC)

Organize a training May 22, 2020: June 19,2020: OPEN
introduced the Leadership and
workshop on coaching
Coaching Program (LCP) which aims to There is a form to be Submit a copy of the
mentoring to be able to
maximize employees’ potential through cascaded to the whole enrolled coaching and
get an in-depth
a culture of coaching in the workplace. Institute to document mentoring form to be
understanding on how
Coaching is a process that allows an the coaching and cascaded to the entire
it is done and its
individual to discover their own “best mentoring activity. This Institute as well as the
benefits to the
benefit” and own “best self”. This helps
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in assisting the staff/individuals find the

organization. Initially, form is aligned with the proof that the seven (7)
solutions themselves to perform better, involve the participation CSC. This will also be leadership
improve their craft, meet or even yet of personnel who are enrolled in ISO forms. competencies are
exceed their targets toward the deliveryacting as high as considered in the
of efficient and effective public service.
Section Chiefs who will sessions.
then cascade to their
The integration of the
staff. Document the
seven leadership
coaching and
Based on the interview with the competencies aspired Submit the list
mentoring sessions
personnel of the Human Resource and by CSC shall be personnel holding key
through the forms
Management Section and the other considered in the positions who are
recommended by CSC.
units of both Finance and implementation of designated as
Administrative Divisions, they have coaching and “understudy” for the
mentioned that there is no formal mentoring sessions. coaching and
coaching and mentoring conducted. It Aligned with the mentoring sessions.
was also disclosed that there are times implementation of
wherein employees in FAD share best coaching and
In the organizational
practices and ways on how things are mentoring sessions,
structure of the
done but these are not documented. integrate the seven (7)
divisions, an
Sessions for this purpose was not leadership
“understudy” personnel
considered by the Human Resource competencies aspired
for the key positions
Officer in prior years. by CSC:
and key functions will
1. Thinking be designated. This
Strategically would establish a
mentor-mentee
2. Leading relationship.
Change
3. Building
Commitment
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4. Developing
People
5. Managing
Performance
6. Coaching for
Results
7. Partnering and
networking
HRD Plan 48 No systematic approach to evaluate

the effectiveness of the HRD Plan
The Omnibus Rules Implementing Book

An HRD Plan should May 22, 2020: June 19, 2020: OPEN
V of Executive Order (EO) No. 292,
present how Learning
Rule VIII, Section 7 requires every With the aim for Submit the
and Development
department or agency to establish a PRIME-HRM, a comprehensive and
(L&D) interventions will
continuing program for the development comprehensive HRDP updated HRD Plan
support the
of personnel and to prepare a will be developed, this developed by the
achievement of the
comprehensive annual training and will be one of the Institute. Also, submit
organization’s strategic
development plan. agenda to be discussed the Special Order
goals and objectives. It
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must be continually by the new members of designating the new

reviewed and updated HRDC. member of the HRDC.
CSC Memorandum Circular No. 14 s. to level with the agency
2018 Sec 62 states that Continuous needs and priorities.
learning and development shall be From the list of
espoused by the Civil Service trainings enumerated in
Commission. Agency heads shall the HRD Plan of the
ensure that each employee shall have Institute, monitor the
undergone at least one planned human trainings attended by
resource development intervention each personnel in order
during the year. to track that all
employees have the
opportunity to
During the audit, HRMS provided the participate at least one
Audit Team a copy of their existing training/seminar per
HRD Plan. However, it is noted that year as required by
HRD Plan only includes the seminars CSC.
and training to be conducted for the
year. At the same time, there is no
monitoring of the actual Develop a
seminars/training attended/conducted comprehensive HRD
of the employees. As a result, the Plan based on the
agency has no data that would show periodic assessment of
whether or not all employees have the needs of the staff.
attended at least one seminar every The Plan will address
year. The OIC of the HRMS admitted the gaps and propose
that this particular task was not being interventions and will
monitored because of the limited also reflect the
number of personnel, considering that acquired skills, abilities
they handle almost five hundred (500) and knowledge of an
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ITDI employees, both plantilla and individual employee. It

contract of service personnel. is also necessary to
include the action plans
to ensure that the
learning or competency
As stated in the EO, the training
gained by the staff will
development plan should be based on
be applied in their
the “periodic assessment of the needs
respective workplace.
of the organization and skills/knowledge
This will also help the
inventory of the workforce taking into
management in
consideration the various levels and
creating a sustainable
categories of jobs in the agency and the
organization.
urgency of such skills, knowledge and
work attitudes required to deliver
effective basic services to the public.”
The Institute has no structured process

of identifying, prioritizing and
scheduling the learning and
development/training interventions that
will address the institutional and
performance needs of the agency.
Reassignmen 49 Internal movements of personnel by

t of reassignment created
Personnel inconsistencies with the
Rationalization Plan and PSIPOP;
Undocumented Reassignment of
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Personnel
CSC Memorandum Circular No. 24,

Series of 2017, the “2017 Omnibus
Create a Change May 22, 2020: June 19, 2020: OPEN
Rules on Appointments and Other
Human Resource Actions defines Management Team
Movement of personnel Submit copy of the
reassignment as “the movement of an that will assess the
will be documented in Special Orders issued
employee across the organizational current workforce of the
the form of an SO for the reassigned
structure within the same department or Institute. Also, the
wherein unit where the personnel and the
agency, which does not involve a findings and
personnel will be designation of the
reduction in rank, status or salary.” recommendations from
indicated including the members of the
the CMT will serve as a
duties to be performed Change Management
basis for requesting
of personnel; Creation Committee. Also,
additional permanent
Furthermore, Section 13 of CSC MC. of Change submit targets and
personnel.
No. 24, s. 2017, further states that Management Team timelines of the
“reassignments will not require the (CMT) to help the activities of the CMT.
issuance of appointments shall HRMS assess current
nevertheless require an Office Order At the same time, if the workforce of ITDI and
issued by the appointing officer/ Institute, upon the the status of the
authority.” recommendation of reassigned positions.
CMT, assessed that
reassigned positions
are most appropriately
Furthermore, Section 13 of CSC MC. assigned to their
No. 24, s. 2017, further states that current offices, request
“reassignments will not require the revision/change in the
issuance of appointments shall Rat Plan/PSIPOP to
nevertheless require an Office Order either reflect the current
issued by the appointing officer/ staffing structure or
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authority.” come-up with the most

appropriate structure
that will be effective in
the long run for the
During the Audit Team’s interview and
Institute. Review status
actual audit with the Institute’s Human
of reassigned
Resource and Management Section,
personnel, defining
they have revealed that there were
criteria for the return or
twenty-one (21) plantilla positions
stay of these personnel
transferred to other division because of
e.g. urgent need by the
the arising need. During the discussion,
original office,
it was not claimed as reassignment
willingness of
because when these positions are
incumbent/ supervisors,
filled-up, qualification standards posted
expertise and training
for the positions were based on the
of incumbent, etc.,
requirements set by the new end-user.
create a transition plan
The HMRS also added that most of
for returning personnel.
these personnel were hired to fit in the
functions of the divisions they will be
assigned to and not to the functions of
the division to which the plantilla item The duties and
number is supposed to be. However, responsibilities of
despite the circumstances and the personnel are attached
need, the scenario still falls in the to the position wherein
CSC’s definition of reassignment. they have taken their
Based on the report provided by the oath. Hence, the
HRMS, the following are the list of functions that must be
reassigned personnel as of June 30, performed by the
2019. reassigned personnel,
especially when they
are not consistent with
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those stated in their

respective PDFs, must
be specified in the
Special/Office Order
issued to them.
Table 12: List of Reassigned ITDI Prepare and issue
Personnel Special Order with
specific terms and
duties/ responsibilities
for all reassigned
No. Nam Posi SG Division personnel.
e tion
To Fro
m
1 Hag SRS 16 TSD OD

ad, II
Victo
ria T.
2 Labi SRS 13 TSD OD

ng- I
isa,
Krist
offer
Rem
C.
3 Palo SRS 13 PMI OD

miqu I SD
e,
Kimb
erly
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R.
4 Casi ADA 4 AD OD
nas, IV
Elvir
a G.
5 Card Scie 4 PMI OD

inoz nce SD
a, Aide
Andr
ea L.
6 Cabr Scie 4 PTD OD

al, nce
Julia Aide
A.
7 Bauc Seni 19 CED MSD

a, or
Mari SRS
anne
Ther
ese
A.
8 Aga Seni 19 CED MSD

nda, or
Kim SRS
Chri
stop
her
C.
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9 Jaga Seni 19 EBD MSD

pe, or
Jess SRS
eL
10 Santi SRS 16 FPD MSD

llan, II
Abe
gail
I.
11 Jala SRS 16 FPD MSD

ndoo II
n,
Ang
elen
e A.
12 The, SRS 16 TSD MSD

Jillia II
n
Fran
cesc
a T.
13 Evea SRS 13 TSD MSD

, I
Lloy
drigo
C.
14 Alfec SRA 11 TSD MSD

he,
Lynn
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e
Jeris
a V.
15 Abac SRA 11 EBD MSD

he,
Grec
elle
M.
16 Com SRS 13 EBD STD

ia, I
Julie
Ann
R.
17 Noc Sup 22 NMD PTD

eja, ervis
Grac ing
e D. SRS
18 Bihis Seni 19 CED PTD

, or
Cynt SRS
hia
M.
19 Dizo SRS 16 PMI PTD

n, II SD
Kevn
Jose
ph
R.
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20 Basb SRS 16 NMD PTD

asan II
, Jr.,
Ang
el T.
21 Baac Scie 4 FPD PTD

o, nce
Rick Aide
y B.
In addition to the audit criteria

mentioned above, said EO explained
that reassignment of personnel does
not require the issuance of an
appointment. However, this shall
require an Office Order issued by the
appointing officer/authority. Considering
that the appointment is not station-
specific, the employee concerned may
request for a recall of the reassignment
citing his/her reasons why he/she wants
to go back to his/her original station.
Upon comparing the PSIPOP and the

actual assignments of the ITDI
Personnel, it was observed that all said
reassignments were not documented
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by Special Orders.
Succession 50 There was no formal mechanism,

Plan procedures and guidelines to adopt
and implement a Succession Plan.
The Civil Service Commission issued

Memorandum Circular No. 3 (CSC MC Consider improving the May 22, 2020: June 19, 2020: OPEN
No. 3), series of 2012 on the Program Succession Plan of
to Institutionalize Meritocracy and each R&D Division to With the ongoing Submit documented
Excellence in Human Resource activities aligned with evidence showing that
Page 120 of 160
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Management (PRIME-HRM). The said include additional or PRIMEHRM, this is one the development of a
MC directs all government agencies to specialized of the targets; comprehensive
inculcate meritocracy and excellence in responsibility of the Preliminary activity is Succession
public service, including the staff, competency gaps the conduct of an Development Plan is
establishment of an Agency Succession and analysis of the 11day Competency- already incorporated in
Plan. plan; based HR Training. the PRIME-HRM. Also,
provide sample
documentations/trainin
g modules/course
Furthermore, the CSC PRIME HRM Develop internal
agenda on the plan to
prescribes that a Succession guidelines to be
conduct an 11-day
Development Plan should be prepared adopted in preparing
competency-based HR
by government institutions. This plan the succession
training.
should be a proactive and systematic development plan then
process by which the organization is continue to develop the
able to identify the positions at the core succession plan
of its operation and come up with a initiated according to
strategic plan to fill-up these positions the CSC PRIME HRM
with qualified and capable personnel. guidelines particularly
Identification and development of for its senior leaders;
potential successors for key positions in and
an organization should be done through
a systematic evaluation process and
training. Develop a
comprehensive
Succession Plan
The organization should have a indicating the action
succession planning to be able to plans necessary to
prepare front-line and management prepare the candidates
staff to step into positions left vacant for the next higher
because of retirement or attrition. It also position and shall be
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helps to meet both long term and subject to regular

emergency leadership needs at all review and
levels, ensuring continuity of amendments, as
management. Promoting people from needed.
within is good for morale and essential
to a positive organizational culture.
People will want to join and stay with
the organization because it develops its
own people. And promoting from within
encourages people to take on
responsibility, assume risks, measure
outcomes, and grow through their
achievements.
Succession planning also helps to align

human resources with the strategic
directions of the organization, clarifies
each internal candidate's strengths,
weaknesses, and opportunities for
improvement and access to more and
better data on the person's
performance than you would have with
outside candidates.
At the time of the audit, a copy of the

Succession Plan was requested from
the Human Resource and Management
Section. However, the documents
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provided were not yet signed, although

the Audit Team was informed that it
was already forwarded to the Office of
the Director. Although the R&D
Divisions have initiated their succession
plan for the key positions of the Division
namely, Chief SRS, Supervising SRS,
Senior SRS, and SRS II, it is just a
mere listing of names that are ready
now and those that are assessed as
ready in the next 1-3 years.
The documented plan with the names

of potential leaders needs clearly
present the competencies and qualities
that need to be developed to prepare
them to step up to the role they are
likely to assume in case of retirement of
the personnel occupying key positions.
There is an immediate need to
establish a formal mechanism,
procedures, and guidelines to ensure
succession planning is done with
evaluation and training (e.g., coaching
and mentoring). Samples of the
succession plans submitted are
attached in Annex P.
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Based on their PSIPOP as of June 30,

2019, the following are list of key
positions that are to be vacated in the
next five (5) years due to compulsory
retirement:
Table 13: Key Positions that are to

be Vacated in the next five (5) Years
Positio SG Divisio Age

n n
Adminis 18 AD 63
trative
Officer
V
Supervi 22 FPD 60
sing
SRS
Supervi 22 FPD 62
sing
SRS
Senior 19 FPD 63
SRS
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Chief 24 MSD 63
SRS
Supervi 22 MSD 60
sing
SRS
Senior 19 MSD 60
SRS
Senior 19 MSD 61
SRS
Senior 19 MSD 63
SRS
Senior 19 CED 60
SRS
Senior 19 CED 62
SRS
Chief 24 TSD 61
SRS
Senior 19 TSD 63
SRS
Chief 24 PTD 61
SRS
Supervi 22 PTD 63
sing
SRS
SALN and 51 Filing of SALN and 201 Files are
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201 Files done by the Records Unit
CSC Memorandum Circular No. 8, In order to ensure and May 22, 2020: June 19, 2020: OPEN
series of 2007, discussed the maintain the
management of 201/120 files. Item No. confidentiality of Transfer of 201 files Provide proof that the
I specifies that the Head of Office in information stored in and SALN to HRMS filing of SALN and 201
charge of Human Resource these documents, has already been done. reports are already
transferred to HRMS.
Management, shall be responsible for these should be placed
the establishment, maintenance and along the HR premises.
disposal of 201/120 file of each Since the Human
personnel in their respective agencies Resource Management
which consist of copies of the following Section are the primary
documents: users of SALN and 201
files, these should be
1. Appointments maintained and kept
and stored in their
2. Assumption to Duty
areas. Also, to be able
3. Certification of Leave Balances to create back-up files
in case of lost or
4. Clearance from Property and damage and for easier
Money Accountabilities access, especially
those old files that are
5. Contracts of Services
still being requested by
6. Copies of Certificates of former and current
Eligibilities employees, start the
practice of scanning
7. Copies of Diplomas, documents before filing
Commendations and Awards it in data folders.
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8. Copies of Disciplinary Actions
9. Copy of Marriage Contract
10. Designations
11. Medical Certificate
12. NBI Clearance
13. Notices of Salary

Adjustments/Step Increments
14. Oaths of Office
15. Personal Data Sheet
16. Position Description Forms
Also, the Human Resource Manager

shall keep copies of the Statement of
Assets, Liabilities and Net Worth
(SALN) of retired/separated
employees for a period of ten (10)
years and their Personal Data Sheet
and Clearance from Property and
Monetary Accountabilities for five (5)
years.
During the Audit Team’s interview with

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the Records and Human Resource and

Management Sections, they have
disclosed that 201 and SALN of
employees are currently maintained by
the Records Section and stored in their
area. This is due to the limited number
of personnel assigned to the HRM
Section and the unavailability of space
or storage area. Since this is for HRMS’
primary use, they are allowed to access
the said documents anytime.
Loyalty 52 Non-monetary payments for Loyalty

Award Award was not complied with
CSC Memorandum Circular No. 06,

Aside from the loyalty May 22, 2020: June 19, 2020: OPEN
series of 2002, through CSC Resolution
cash awards of P5,000
No. 02-0295 dated February 26, 2002, This will be included in Submit the updated
or P10,000, depending
issued the Revised Guidelines on the the PRAISE guidelines PRAISE guidelines to
on the year of service,
Grant of Loyalty Award. These policies and policy. prove that non-
provide as well non-
were formulated to recognize the monetary payment of
monetary payments
continuous and satisfactory service loyalty awards is
such as memorabilia
rendered in the government by officials already incorporated.
items or souvenirs, as
and employees for a period of ten (10)
their remembrance they
years. The said MC further provides
the awardees reached
that the awardee shall receive some
another milestone of
loyalty memorabilia/souvenir as follows:
their government
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● 10 and 15 years- bronze service service.

pin;
● 20 and 25 years- silver service

ring;
● 30, 35 and 40 years- gold

service medallion; or
● other memorabilia/souvenir as
may be provided by the agency
PRAISE Committee.
In addition to this, a loyalty cash award

(LCA) of the following amounts are
required by COA Circular 2013-003A.
Table 13: Loyalty Cash Award
Years of Old Rate As Revised

Service
10th year 5,000 10,000
15th year 2,500 5,000
20th year 2,500 5,000
25th year 2,500 5,000
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30th year 2,500 5,000
35th year 2,500 5,000
40th year 2,500 5,000
At the time of audit, it was revealed that

the Institute only provides the loyalty
cash award required by COA but have
not tried providing any non-monetary
awards such as memorabilia/souvenir
as required by the MC, aside from the
certificate given during their anniversary
celebrations.
Duties and 53 Assigning Technical Positions to

Responsibiliti Finance and Management Division
es of (FMD)
Page 130 of 160

IAS Form 002
Rev 1/04-30-2018

Personnel
Currently, the Budget Unit is composed

of three (3) plantilla positions and
Review the list of May 22, 2020: June 19, 2020: OPEN
assisted by two (2) contract of service
personnel who are acting as Project position titles
Currently, the Budget Submit documented
Accountants. Upon checking the prescribed for DOST-
Section has two (2) Job evidence that the
contracts of these two (2) no-regular GIA personnel.
Orders occupying the positions of two (2)
personnel, it was noted that they are Reclassify their current
position of Science contract of service
both occupying a Science Research positions to positions
Research Specialist I personnel assigned to
Specialist (SRS) I position which is that are best aligned
(SRS I) to support the the Budget Section
considered as a technical position. with their their
operational activities of have been retitled.
Their salaries were charged to the functions, expertise and
areas of assignment. the said section such
download Metrology Program entitled as project monitoring,
“Enhancement of the Competence and coordination, and other
Capabilities of the National Metrology activities required for
Laboratory (NML) of the Philippines” the implementation of
Project 1. Copies of the contracts are the LocallyFunded
attached in Annexes Q1 to Q2. Projects of the whole
agency. In view of the
recommendation of the
As mentioned during the interview, Internal Audit Service,
these positions are requested by said Job Orders holding
Budget Unit to the National Metrology the position of SRSI
Division to assist them in financial (SG13) shall then be
related concerns. As specified in their retitled to Project
contracts, they are hired to perform the Assistant IV (SG14)
following functions: instead of Project
Assistant III (SG12)
1. Acts as the Project Accountant given the limited
Page 131 of 160

IAS Form 002
Rev 1/04-30-2018

and will be detailed at FMD; number of personnel

assigned to the Budget
2. Controls and monitors the Section and the nature
project funds of the download and amount of duties
projects; and responsibilities that
these personnel hold.
3. Prepares the monthly Statement
of Allotment, Obligation and
Balances;
4. Prepares the quarterly semi-

annual/terminal financial
reports;
5. Prepares other financial reports

related to the projects;
6. Coordinates regularly with the

project leader; and
7. Does other duties assigned from

time to time.
Cases in Point:
1. Ms. Angeli Grace C. Gatbonton
2. Ms. Rose Therese A. Biglete
Page 132 of 160

IAS Form 002
Rev 1/04-30-2018

Uncollected 54 Material amounts of uncollected

Technical technical services fee
Fees
COA Circular 2016-005 dated

December 19, 2016 prescribes that all Ensure full compliance May 22, 2020: June 19, 2020: OPEN
government entities shall conduct with COA Circular
2016-005 by ADMATEL has Submit the status of the
regular monitoring and analysis of
conducting regular and Improved its monitoring uncollected accounts
receivables to ensure that these are
periodic verifications, system and is now receivables from 2013
collected when these become due and
analysis, and validation guided by the ITDI A.O. to 2018. Also, include
demandable.
of the existence of the No. 002 “Prescribing the actions taken on
receivables. Otherwise, Guidelines on the overdue accounts
those that are overdue Rendering the Services receivables.
Per review of the Institutes 2012-2018 (e.g., more than 10 Provided by the
Financial Statements, it was observed years) may be Advanced Device and
that there is a material amount of requested for write-off; Materials Testing
uncollected receivables in years 2012- and Laboratory ADMATEL”
2018 with a remarkable increased in effective last April
years 2017 and 2018, as shown in the 2019. ADMATEL and
table below: FMD were in close
Continue the collection coordination and
efforts and strategies communication in
started in order to updating and
Table 14: Accounts Receivable increase collection monitoring of the
Balances rates and ensure that Account Receivables
the payment for the for continuous
services offered by the improvement. Status of
government will accrue ADMATEL Account
Year AR Changes Percenta
Balanc /Moveme ge to the public. Receivables from 2013
to 2018 can be
Page 133 of 160
IAS Form 002
Rev 1/04-30-2018

e
furnished if requested.
(Gross)
nts
All Amoun
Funds t
2012 2,933,6 Base

42.00 Year
2013 3,357,5 423,936. 14.45

78.25 25
2014 3,375,7 18,135.9 0.54

14.19 4
2015 4,527,6 1,151,92 34.12

34.46 0.27
2016 3,822,4 (705,150. (15.57)

83.89 57)
2017 9,663,1 5,840,69 152.80

74.89 1.00
2018 7,019,4 (2,643,68 (27.36)

85.79 9.10)
Of the P7,019,485.79 gross amounts of

accounts receivable booked as of
December 31, 2018, P6,979,685.79
were recorded under the General Fund
while P39,800 is for Trust Fund. Based
on the Aging Schedule as of December
Page 134 of 160

IAS Form 002
Rev 1/04-30-2018

31, 2018 which was provided by the

Accounting Unit during the audit, it was
noted that P4,025,335.99 or 57.67% of
the total accounts receivables under
General Fund were from the ADMATEL
Services and P2,204,716.90 or 31.6%
of which were already outstanding and
still uncollected for 3 years and above
as shown in Annex R.
Furthermore, it was observed that these

accounts receivables were obtained
from the billing made by the Institute.
The table below shows the 2018
breakdown of the accounts receivables
under the General Fund.
Table 15: 2018 Breakdown of Past

Due Accounts Receivables
(amounts)
Agin Test R&D AD Oth Tota

g ing Serv MAT ers l
Sch and ices EL
edul Cali
e brati
Page 135 of 160

IAS Form 002
Rev 1/04-30-2018

on
Less 169, 376, 546,

than 640. 600. 240.
30 00 00 00
days
31- 972. 1,09 1,09

60 90 2,00 2,97
days 0.00 2.90
61- 97,8 1,12 1,22

90 78.0 9,14 7,02
days 0 9.99 7.99
91- 352, 975, 34,8 1,36

365 720. 300. 90.0 2,91
days 00 00 0 0.00
Over 220, 266, 486,

1 520. 250. 770.
year 00 00 00
Over 46,2 12,8 59,0

2 00.0 48.0 48.0
year 0 0 0
s
3 22,0 2,00 173, 2,20

year 16.5 9,51 188. 4,71
s 0 2.40 00 6.90
and
abov
e
Page 136 of 160

IAS Form 002
Rev 1/04-30-2018

Tota 909, 2,00 4,02 34,8 6,97

l 947. 9,51 5,33 90.0 9,68
40 2.40 5.99 0 5.79
Table 15: 2018 Breakdown of Past

Due Accounts Receivables (in
percent)
Agin Testi R&D ADM Ot To

g ng Serv ATEL her tal
Sche and ices s
dule Calib
ratio
n
Less 2.43 5.40 7.8

than 3
30
days
31- 0.01 15.65 15.

60 66
days
61- 1.40 16.18 17.

90 58
days
91- 5.05 13.97 0.5 19.

365 0 52
Page 137 of 160

IAS Form 002
Rev 1/04-30-2018

days
Over 3.16 3.81 6.9

1 7
year
Over 0.66 0.18 0.8

2 4
years
3 0.32 28.7 2.48 31.

years 9 59
and
abov
e
Total 13.0 28.7 57.67 0.5 10

3 9 0 0.0
0
Compliance 55 Failure to comply with the DOST-

to DOST-ITDI ITDI Administrative Order No. 002
AO No. 002
ITDI issued Administrative Order No.

Ensure compliance May 22, 2020: June 19, 2020: OPEN
002 (Annex S) as a revision for AO
with the DOST-ITDI
Page 138 of 160
IAS Form 002
Rev 1/04-30-2018

No. 001 series of 2015 entitled Administrative Order ITDI Administrative Submit the status of
“Prescribing/Guidelines on Rendering No. 002, particularly Order #001 series 2015 uncollected accounts
the Services Provided by the on its provision relating was the guidelines receivables as of May
Advanced Device and Materials to the payment used for 2018 since the 31, 2020. Also, provide
Testing Laboratory (ADMATEL)”. scheme. Grace period ITDI Administrative copies of demand
may also be provided, Order #002 which letters sent to debtors
as long as it will not includes the Credit with overdue accounts.
exceed fifteen (15) Limit Scheme and
Item No. 2 of the said AO specifies
days as required; 30days Payment
that credit limit imposed by ADMATEL
scheme with 15 days
to their customers. As stated,
grace period was only
customers are provided with 3 tier
approved last April
credit limit scheme broken down as At the same time,
2019. Credit Limit and
follows: follow the credit limit
Payment scheme
scheme provided by
1. 1st Tier- P800,000 for stipulated in ITDI AO
the Administrative
repeating customers #002 were not yet
Order;
(semiconductor industries) with applicable for 2018
a good credit standing; Account Receivables.
2. 2nd Tier- P200,000 for Strengthen the

repeating customers (medium collection mechanism
enterprises/other industries and through issuance of
academes); and demand letters and
assigning of personnel
3. 3rd Tier- P50,000 for new who will be in-charge
customers of collecting the
receivables; and
However, based on the 2018 aging of

accounts receivables submitted by the Ensure that demand
Page 139 of 160

IAS Form 002
Rev 1/04-30-2018

Accounting Unit, it was noted that two letters are received by

(2) customers exceeded the P800,000 the concerned
credit limit. individuals/companies.
Cases in point:
1. DECA Technologies Inc.
2. Renato Pleno- CREMA
Furthermore, Item 3.3 explained that a

scheme of 30 days’ payment terms
will; be given to the customer upon
receiving the Statement of Account
and 15 days of grace period if
customer exceeds the payment term.
The customers from Government
agencies are given a maximum of
three (3) months payment term.
Per review of the documents

forwarded by the auditee, twenty-four
(24) government agencies and forty-
three (43) private
institutions/individuals have exceeded
the maximum of three (3) months and
thirty (3) days credit term allowed to
Page 140 of 160
IAS Form 002
Rev 1/04-30-2018

them, respectively. As shown in the

tables below, these accounts
receivables from government agencies
and private institutions/individuals
amounted to P739,094.00 and
P5,247,743.89 as of December 31,
2018, respectively.
Table 16: Overdue Accounts

Receivable from Government
Agencies
Gov 91- Ove Ove 3 Tota

ern 365 r1 r2 year l
men day year year s
t s s and
Age abo
ncie ve
s
Cent 94,5 94,5

ral 00.0 00.0
Min 0 0
dan
ao
Univ
ersit
y
Page 141 of 160

IAS Form 002
Rev 1/04-30-2018

Dep 15,8 15,8

artm 40.0 40.0
ent 0 0
of
Agri
cultu
re
RFO
-IVA
DO 20, 20,8
ST- 840. 40.0
NC 00 0
R
DO 6,50 6,50
ST- 0.00 0.00
RO I
DO 8,88 8,88
ST- 0.00 0.00
RO
XI
DO 1,27 1,27
ST- 4.00 4.00
RO
V
DO 67,4 3,18 70,6

ST- 80.0 0.00 60.0
RO 0 0
IX
Page 142 of 160

IAS Form 002
Rev 1/04-30-2018

DO 6,50 6,50
ST- 0.00 0.00
RO
III
FDA 136. 136.

Sate 50 50
llite
Lab
orat
ory
for
Min
dan
ao
Foo 78,2 32,3 110,

d 40.0 40.0 580.
and 0 0 00
Nutri
tion
Res
earc
h
Instit
ute
Foo 47,2 47,2

d 86.0 86.0
and 0 0
Dru
g
Adm
Page 143 of 160

IAS Form 002
Rev 1/04-30-2018

inistr
atio
n
Min 1,20 1,20

es 0.00 0.00
and
Geo
scie
nce
Bure
au
Nati 10,5 10,5

onal 50.0 50.0
Pow 0 0
er
Cor
pora
tion
NFA 44,5 44,5

- 10.0 10.0
Foo 0 0
d
Dev
elop
men
t
Cent
er
PCI 9,20 9,20

EER 0.00 0.00
Page 144 of 160

IAS Form 002
Rev 1/04-30-2018

D-
DO
ST
PHI 32,8 32,8

LME 00.0 00.0
CH 0 0
(CL
SU)
SN 5,00 5,00
MM 0.00 0.00
PP
Brgy
.
Saw
ang
TAP 4,20 4,20

I- 0.00 0.00
DO
ST
UP 180, 180,
Man 000. 000.
ila- 00 00
Coll
ege
of
Phar
mac
y
UPD 29,0 29,0
Page 145 of 160

IAS Form 002
Rev 1/04-30-2018

ICE 00.0 00.0

CoM 0 0
S
LAB
FDA 17,4 17,4

CSL 00.0 00.0
- 0 0
Ceb
u
Test
ing
and
Qual
ity
Ass
uran
ce
Lab
orat
ory
FDA 17,4 17,4

Dav 00.0 00.0
ao 0 0
Test
ing
and
Qual
ity
Ass
uran
ce
Page 146 of 160

IAS Form 002
Rev 1/04-30-2018

Lab
orat
ory
DO 4,50 4,50
ST- 0.00 0.00
OU
SEC
RD
Tota 450, 220, 46,2 22,3 739,

l 020. 520. 00.0 54.0 094.
00 00 0 0 00
Table 17: Overdue Accounts

Receivable from Private
Institutions/Individuals
Private Overdue
Individuals/Instit Accounts
utions Receivables
Al-Pines Furnace 55,309.00

Phils.
Antonio Arevalo- 78,245.00

Garcias
Conrado De 22,800.00
Page 147 of 160

IAS Form 002
Rev 1/04-30-2018

Jesus-COA
Dick Fernando 26,000.00

Cutab-Asia
Envirocon
Edgardo Garcia 2,068.60
Instruchem, Inc. 440.00
Joseph Maamo 4,406.00
Leandro Palma 556,912.00
Lisa Infante 2,800.00
Renato Pleno – 987,013.00

CREMA
Ricardo Yan 24,443.80
Santiago Bontilao- 240,000.00

Lanao del Norte
Speaker Jose De 1,700.00

Venecia
MECO 1,800.50
Enterprises
UPS DELBROS 90.00

INTERNATIONAL
LTD. INC.
ADVANTEK INC. 23,300.00
AMKOR 165,400.00
Page 148 of 160

IAS Form 002
Rev 1/04-30-2018

TECHNOLOGY
PHILS.
AMPLEON 177,000.00
PHILIPPINES
INC.
AMS ASIA INC. 162,450.00
ARCYA GLASS 6,000.00

CORPORATION
BAXTER 6,500.00
HEALTHCARE
PHILIPPINES,
INC.
CEBU 6,000.00
MICROELECTRO
NICS INC.
DAEDUCK 10,000.00
PHILIPPINES
INC.
DECA 1,289,200.00
TECHNOLOGIES
INC.
DYSON 43,500.00
ELECTRONICS
PTE LTD.
EATON 19,000.00
PHILIPPINES
Page 149 of 160

IAS Form 002
Rev 1/04-30-2018

ENOMOTO 18,000.00
PHILIPPINE
MANUFACTURIN
G INC.
FIRST SUMIDEN 20,520.00

CIRCUITS, INC.
FRANKLIN 5,000.00
BAKER
COMPANY OF
THE
PHILIPPINES
II-VI 3,000.00
PERFORMANCE
METALS INC.
INTEGRATED 225,499.99
MICROELECTRO
NICS, INC.
JX NIPPON 152,900.00
MINING &
METALS
PHILIPPINES,
INC.
KINPO 12,000.00
ELECTRONICS
(PHILIPPINES)
INC.
LAGUNA DAI- 24,800.00

ICHI, INC.
Page 150 of 160

IAS Form 002
Rev 1/04-30-2018

NANOFIXIT 36,000.00
VENTURES INC.
NEXPERIA 21,600.00
PHILIPPINES
INC.
SHIMANO 9,500.00
(PHILIPPINES)
INC.
SOLAR 18,000.00
PHILIPPINES
MODULE
MANUFACTURIN
G CORP.
SPI 5,000.00
CORPORATION
STMICROELECT 522,650.00
RONICS, INC.
SUN POWER 47,268.00

PHILS.
MANUFACTURIN
G LTD.
TEAMQUEST 106,900.00
TECHNOLOGY
INC.
TERADYNE 43,900.00
PHILIPPINES
LTD.
Page 151 of 160

IAS Form 002
Rev 1/04-30-2018

TONG HSING 18,348.00

ELECTRONICS
(PHILS.) INC.
TOSHIBA 44,400.00
INFORMATION
EQUIPMENT
PHILS.
Total 5,247,743.89
Account 56 Reconciling Items are not

Reconciliatio immediately recorded in the
n Accounting books
Coordinate with May 22, 2020: June 19, 2020: OPEN

Section 20 of Executive Order No. 128
LANDBANK and
“Reorganizing the National Science and Out of 430,821.00,
Bureau of Customs on Submit the latest Bank
Technology Authority” provides that the P411,994.00 or 95.6%
the details of these Reconciliation
ITDI shall have the following functions: already adjusted in the
reconciling accounts as Statement for the Bank
a support in preparing book and P 18,827.00 Accounts 1822-1028-
1. Undertake applied research and
the adjusting entries. or 4.4% still reconciling 63 and 1822-1028-95.
development to develop
Reconciling items item due to lack of Also, submit the
technologies and technological
discovered during the supporting documents status/actions taken on
innovations in the field of
preparation of bank to support the the 18,827.00
industrial manufacturing,
reconciliation liquidation. reconciling item.
mineral processing and energy;
statements should be
2. Undertake the transfer of adjusted in the
Page 152 of 160
IAS Form 002
Rev 1/04-30-2018

research results directly to end- succeeding months.

users or preferably via linkage
units of other government
agencies;
3. Undertake technical services,

such as but not limited to,
standards, analytical, and
calibration services mandated
by law od as needed by
industry; and
4. Conduct training and provide

technical advisory and
consultancy services to industry
clientele and end-users
Based on the list of bank accounts

submitted during the audit, it was
discussed that the Institute maintains
two (2) current accounts: 1822-1028-63
for the ITDI Training Account and 1822-
1028-95 for their Payroll Account. The
Training Account was created aligned
with the ITDI’s mandate presented
above.
Bank Reconciliation Statements
Page 153 of 160

IAS Form 002
Rev 1/04-30-2018

showed an adjusted balance of

P275,490.31 and P387,019.87 as of
December 31, 2018 (Annex T) and
May 31, 2019 (Annex U), respectively.
However, as of the time of audit, the
items tagged as “Debit Memos” were
still not adjusted in the books of
accounts maintained by the Accounting
Unit. As reported in the bank
reconciliation statement, these debit
memos in favor of the Bureau of
Customs amounted to a total of
P430,821.00 as of May 31, 2019 and
broken down as follows:
Table 16: Reconciling Items for the

ITDI Training Account
Date Amount Remarks
August 2, 10,099.00
2017
March 22, 8,728.00

2018
August 17, 116,058.00 Debit

2018 Memos-
Bureau of
May 15, 12,045.00 Customs
2019
Page 154 of 160

IAS Form 002
Rev 1/04-30-2018

May 15, 270,405.00

2019
May 28, 13,486.00

2019
Total 430,821.00
Grant and 57 Late Liquidation and Grant of

Liquidation of Overlapping Cash Advances
Cash
Advances
COA Circular No. 2012-001 dated June
14, 2012 provides that the general Strictly comply with the May 22, 2020: June 19, 2020: OPEN
guidelines in liquidating cash advances COA Circular and GAM
and effectFully
the implemented Provide proof/
relating to travel allowances is within 30 since January 2019,
immediate liquidation of documented evidence
days after the return of the
and as a compliance
cash advances before that a cash monitoring
official/employee concerned to his
granting new with
cash COA AOM. tracker has been
official station for local travel and within
advance; and Accounting issues established. Also,
60 days after the return of the memo to the concerned submit a copy of the
official/employee concerned to the employees at least memorandum issued
Philippines in the case of foreign travel. three to four weeks and duly received by
Create a Cash prior to the due date of the concerned
Monitoring Tracker to their cash advance. personnel with
The same COA Circular and Section include the dates of outstanding cash
14, Chapter 6 of GAM Volume 1 further grant and liquidation of advances.
specified that “No cash advance shall cash advances. This
be allowed to any official or employee will serve as a tracker
unless the previous cash advance on the issuance of
given to him/her is first written reminders and
settled/liquidated or a proper will lessen delays on
Page 155 of 160
IAS Form 002
Rev 1/04-30-2018

accounting thereof is made.” the liquidation. At the

same time, it will be
able to monitor the
Based on the review of Journal Entry unliquidated balances
Vouchers (JEVs) of the Institute from of SDOs cash
year 2015-2018, it was observed that advances which will
there are delays in liquidating cash prevent the granting of
advances, both local and foreign additional cash
travels. At the same time, there are advances. For reporting
cases in which new requests for cash purposes, this will be
advances are granted despite having helpful in the
preparation of Report
unliquidated balances.
on Aging of Cash
Advances.
During the interview and as verified in

their records, delays in liquidation and
overlapping of cash advances are
caused by frequent travels or ITDI
employees. There are times in which
travels are scheduled every week which
enables them to prepare and submit
liquidation reports. Since each travel
has a different purpose and they need
cash to finance their expenses, there
are new request for cash advances and
these are processed and granted by the
Accounting Unit. Although written
reminders are sent before the end of
the 30 or 60-day period, they still failed
to liquidate on time. Cases in point are
Page 156 of 160
IAS Form 002
Rev 1/04-30-2018

shown attached in Annexes V and W.
Billing 58 Minor Error in the Billing Procedures

Procedure Manual
Manual
During the audit, the Accounting Unit

Review the current PM May 22, 2020: June 19, 2020: OPEN
presented a Procedures Manual on
billing with a document code PM-FMD- for billing and proposed
revisions to provide For review /revision to Submit the updated
05-01 effective November 3, 2011 as
more accurate and include the billing Procedures Manual for
attached in Annex X. Per checking, it the billing process.
updated process in the process.
was noted that after receiving a
conforme letter/Memorandum of billing of ADMATEL.
Agreement or Technical Service Also, check the
Request (TSR), the Accounting Unit will positions of the
prepare a Statement of Account (SOA) personnel responsible
and the same will be approved by the in each of the
Chief Administrative Officer (CAO) of processes.
the Finance and Management Division
(FMD). After approval, they will verify
whether the client/customer has an
outstanding account or unpaid services
in the prior period and if not, they will be
releasing the Order of Payment (OP).
In case the client/customer has an

outstanding balance or unpaid account
Page 157 of 160

IAS Form 002
Rev 1/04-30-2018

a registered collection or demand letter

will be sent. In case the demand letter
was returned to sender, they will still
release an OP while request for write-
off will be made in case demand letter
was received by the client/customer.
There seems to be a conflicting flow of
activities in the process of sending
demand letters and the request for
write-off.
Grant and 59 Granting of Cash advances for

Liquidation of salaries
Cash
Advances Instead of paying the May 22, 2020: June 19, 2020: OPEN
During the Audit Team’s interview with last payroll cutoff
Finance and Administrative personnel, through cash, consider We have already Submit a
they have mentioned that the to establish a more perfected the scheme documentation of the
Disbursing Officer is granted with cash concrete cutoff. For and we only pay the current payroll scheme
advances during the end of the year to example, require salaries of the COS for payment of the
pay for the salaries of the contract of employees to submit through cash advance services rendered by
service personnel. These are not their daily time records for the 2nd cutoff of the the contract of service
processed through payroll because (DTR’s) every 10th and month of December of personnel during the
salaries are paid based on the actual 25th of the month. This every year. Nor have end of the year.
attendance, after deducting lates and will be processed and we received any COA
absences. salaries will be given in AOM on the procedure
the 12th or 27th, the that we have been
next banking day if it doing since 2015. We
falls on a weekend or will look into your
Page 158 of 160

IAS Form 002
Rev 1/04-30-2018

In order for them not to under and over holiday. During the end recommendation,
pay the contract of service personnel, of the year, for review this and make it
cash advances are granted to the example, last working fit to our needs and
Disbursing Officer. The cash advances day is 29th, salaries requirements.
are withdrawn and based on the from the second cutoff
payroll, these are individually (day 15-27) will be
distributed to the personnel after office directly credited to their
hours during the last working day of the bank accounts while
year. Through the help of the the last two (2) days,
personnel from the Human Resource 28th and 29th, may be
and Management Section, these are paid through cash, so
placed in an envelope and personally that actual attendance,
handed to the concerned personnel. as required by COA, is
still ensured. This will
be less risky on the part
of the Disbursing
Considering that there are one hundred
Officer and the Human
thirty-three (133) contract of service
Resource and
personnel which are assigned to thirty-
Management Officer.
two (32) projects, individual payments
may be too risky on the part of the
Disbursing Office, both on the actual
payment and in liquidating the cash
advance. This is also an extra work for
them for they need to extend up to
8:00PM every last working day of the
year just to process and ensure that
their employees get their actual salaries
before New Year’s break.
Page 159 of 160

IAS Form 002
Rev 1/04-30-2018

Page 160 of 160

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IAS 002 - ITDI - 1st - Ffup - Report

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DEPARTMENT OF SCIENCE AND TECHNOLOGY

Internal Audit Service

FOLLOW-UP AND MONITORING REPORT OF INTERNAL AUDIT FINDINGS

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Management and Planning

ITDI’s Broad 1 Need to revisit ITDI's mandate, areas

ITDI as the biggest RDI covers a wide

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relevant and significant ITDI aggressively taps

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example, the DBM

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Vision- 2 ITDI’s vision-mission statements are

The wide vision of becoming a

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polymers/plastics R&D, ceramics R&D, industries in identifying transfer and technical

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target industries on what state-of-the- concerns;

Finalize the Strategic

Consider/include its risk

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ensure that the priority

ITDI's 3 The in-house technologies

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Recent impact assessment of SETUP

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institutional support assigned per region

4 The ITDI 2018 Accomplishment

June 22, 2020:

The Planning Division has yet to IAS reiterates the need

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the accomplishment preparation of layout, Report.

Information Technology Management

IT 5 Unrealized importance of the MIS

IT Governance is defined as the

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The approved ISSP

The MIS shall have

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MIS Section 6 Lack of IT staff to effectively perform

IT governance can be realized with an

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from controlling all key hire professional IT staff from other

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Information 7 There was no avenue for end-users

June 22, 2020:

IT governance is evident if there is a We commend the

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facilitate IT systems being have a separate

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Information 8 No appropriate control to ensure

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ISSP Process 9 Prescribed Process Flow for the