What are your insights regarding the issue?

The main issue presented was about the Commission on Audit showing the deficiency of
the budget allocations of some of the government agencies. Base on the reports of the
commission, some agencies under the executive branch that had been called are DOH with
P67.32 billion worth of deficiencies by the end of 2020, DOTC with P2.16 billion undelivered
license plates to registered car and motorcycle owners since 2014, TESDA and NTF-ELCAC
which is highly questionable to TESDA’s transfer of P160 million to NTF-ELCAC citing lack of
authority, OWWA with P1.269 million worth of hygiene kits purchased from a construction
supplier, DICT with P170.273 million worth of laptops and gadgets purchased from questionable
firm, and also DA with P34.45 billion worth of funds which lacks complete accounting records
and had accounting errors/omissions.
The previously mentioned organizations are a portion of the hailed presidential branch
offices that bring conflicts among COA and the said offices. But COA replied to this issue that
they are just doing their job. As we can see, COA should not conform with the president’s
command to stop flagging agencies, it is because COA is an independent constitutional
commission and not under by the executive branch. It is with the authority of the commission to
check and report for the deficiencies of all the government owned and controlled agencies.

As far as I might be concerned, COA ought not to be fault in announcing the said
inadequacies. It is extremely disturbing knowing a great deal of agenciess have defeats public
interest as well as the rights of the people. Hence, the commission ought not be undermined by
the president since they are simply making the right decision. It is likewise the right individuals
to know what is happening to the tax they are paying, and how the public authority allots it and
use it.

What was your idea of “Corruption by Perception” as mentioned by the President?

For me, a corruption by perception defines a status of the country or a state when in terms
of corruption. It is why the president is alarmed by the COA’s report because it might/will cause
a high corruption rate in our country, which is very evident as we can see.
There is no need to wait for the term to be ended of the current administration for us, the
people, to know the current issues of the government agencies. We should know how cruel our
government while they are on the position. It is for us to ensure that the corrupt practices of the
government should be eradicated as soon as possible.
As an accountancy student, do you agree with the President’s suggestion on not conducting an
audit of on-going works? Why or why not?
No, I do not agree with the president’s suggestion on not conducting an audit of on-going
works. As an accountancy student and a concern citizen of our country, it is our right to know
how the government are using the fund on developing our country. It is our right to know how
corrupt the government is and with that we are able to stop them from doing so. Even if the work
is not done yet, we should know the cash flow of it in order for us to be guided if the allocation is
appropriate or not.
After watching the video, what do you think is the importance of auditing in your own
perspective?
Auditing plays a vital role in checking financial statements if it is in compliance with the
standards or not, which could help a certain person or institution to know the current state of the
financial statements. The video presented made me realize how significant auditing is, audit is
important as it gives validity to a bunch of budget reports and gives the investors certainty that
the records are valid and reasonable. It can also help company to develop and improve their
systems and internal control.

How can auditing affect you or your decisions today or in the future?
As a probable investor and a future accounting professional, auditing can affect my decisions,
but not limited to, in terms of selecting possible corporation to invest with and also to help me
improve internal controls in my company in the future. It could be a great help for me to check
the financial reports if it’s true and reasonable. Furthermore, this subject could help me in
understanding way deeper the concept of auditing.

Section 2 of Presidential Decree 1445 states that “It is the declared policy of the State that all
resources of the government shall be managed, expended or utilized in accordance with law and
regulations, and safeguarded against loss or wastage through illegal or improper disposition, with
a view to ensuring efficiency, economy and effectiveness in the operations of government. The
responsibility to take care that such policy is faithfully adhered to rests directly with the chief or
head of the government agency concerned.”

For this assessment, answer the following

Define Agency Head and the Accountable Officers.
The term "agency head" refers to the government agency's chief executive or chief officer
who supervises the agency. It basically refers to the heads of government departments, bureaus,
agencies, and instrumentalities, such as GOCCs, LGUs, and SUCs.
The Accountable Officer is primarily the head of an agency, unless it has been
determined by the treasurer, that is responsible for the financial management of an agency. is a
term used to describe a person who is responsible for the safeguarding, custody, or usage of
public funds.
Distinguish Accountability, Responsibility and Liability of Agency head and Accountable
officers.
Agency head Accountability, Responsibility and Liability:
Any government agency's head, whether at the national, corporate, or municipal level, is
ultimately responsible and accountable for all government finances and property belonging to his
agency. Without prejudice to each party's duty to the government, those entrusted with the
possession or custody of funds or property under the agency head are immediately accountable to
him.
Failure of the Head of Agency to notify the TOP through the concerned DO/PO renders
them principally accountable for any loss or damage to public funds or properties that their
specific agency, province, city or municipality, barangay, as the case may be, may suffer as a
result of such failure.
Accountable Officer Accountability, Responsibility and Liability:
Any accountable officer of a government agency whose duties allow or require the
possession or custody of government funds or property is responsible for them and their
safekeeping in accordance with the law. Every accountable officer is required by law to be
properly bonded.
Every officer in charge of government property is liable for the money worth of that
property if it is used or misapplied improperly or unauthorized by himself or anyone else for
whose actions he is responsible. He will also be liable for any losses, damages, or degradation
caused by carelessness in the care or use of the property, whether or not it is in his actual custody
at the time.
All losses originating from the unauthorized deposit, use, or application of government
funds, as well as all losses related to negligence in the handling of the funds, are the
responsibility of every officer accountable for the funds.
How shall the Agency Head exercise his authority?
According to section 29 of Book IV/Chapter 6-Powers and Duties of Heads of Bureaus or
Offices, an agency head has overall authority over all matters within the jurisdiction of the
bureau, office, or agency, including those relating to its operations, and is responsible for
enforcing all applicable laws and regulations. It is the State's declared policy that all government
resources be managed, expended, or utilized in accordance with law and regulations, and that
they be protected from loss or wastage through illegal or improper disposition, in order to ensure
efficiency, economy, and effectiveness in government operations. The chief or head of the
government agency concerned is personally responsible for ensuring that such policy is faithfully
followed.